NGS’ NG/LNG SNAPSHOT – Dec-1-15, 2023
National News Internatonal News
NATIONAL NEWS
City Gas Distribution & Auto LPG
CNG stations reopen in Punjab
The Sui Northern Gas Pipelines Friday restored gas supplies to CNG stations across Punjab and invited applications for renovation of stations.
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The CNG Association welcomed gas revival for the CNG sector. The CNG Association Chairman said there are three thousand CNG stations in Punjab.
https://pakobserver.net/cng-stations-reopen-in-punjab/
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PNGRB chairperson meets Himanta Biswa Sarma, highlights importance of City Gas Distribution
Dr. Anil Kumar Jain, Chairperson, Petroleum and Natural Gas Regulatory Board (PNGRB) met Assam chief minister Himanta Biswa Sarma highlighted importance of City Gas Distribution (CGD) issues and sought for assistance of State government in promoting natural gas.
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Chairperson briefed CM about the progress of Oil & Gas Infrastructure in the state of Assam and role that Assam is playing towards realising the Prime Ministers vision for creation of Gas based economy.
He highlighted important City Gas Distribution (CGD) issues and sought for assistance of State government in promoting natural gas.
Chairperson assured all possible efforts by PNGRB for rapid natural gas infrastructure growth in the State of Assam.
He emphasised that rationalisation of Value Added Tax (VAT) on CNG & PNG along with mandates for conversion of public transport to CNG would encourage the use of natural gas in the State. Further, he suggested support from the Government for faster adoption of Domestic PNG connections by providing benefits in line with Pradhan Mantri Ujjwala Yojana.
The Chief Minister assured all possible assistance for development of natural gas infrastructure. He believed that accelerated consumption of natural gas will also lead to increase in gas production from the gas fields in Assam which are presently underutilised.
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Nawgati Signs Mou With Mahanagar Gas To Revolutionize CNG Filling Experience In Mumbai
(MENAFN– ForPressRelease) New Delhi, December 05, 2023: Nawgati, a home-grown innovative Fuel Aggregator startup, has taken a significant stride in the realm of convenient CNG filling services. In a landmark development, Nawgati signed a Memorandum of Understanding (MoU) with Mahanagar Gas Limited (MGL), in Mumbai, to integrate the services provided through its app MGL Tez with Nawgati’s Fuel Discovery app. This strategic collaboration is set to enhance the convenience, accessibility, and efficiency of CNG services for commercial vehicles in the city.
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This collaboration will empower more and more CNG users to bypass the queues, make cashless transactions, preschedule their slots at BEST depots to enjoy zero wait time and experience a tailored service that is exclusive to commercial vehicles and cars.
This service is currently available at Goregaon-Oshiwara and Ghatkopar BEST Depots, with plans for expansion to 13 more depots across Mumbai. This expansion will further improve access and convenience for commercial CNG vehicles across the city.
Commenting on the association, Mr. Vaibhav Kaushik, CEO and Co-founder of Nawgati expressed his enthusiasm, saying, “At Nawgati, our mission has always been to simplify and enhance the fueling experience for our customers. We have already set new benchmarks by focusing on accessibility and providing convenience in fueling to 1M+ users. This association with MGL is a testament to our commitment to innovation and customer satisfaction. By integrating MGL’s CNG services with our app, we aim to offer a seamless and convenient solution for commercial CNG vehicle owners in Mumbai. We believe this collaboration will transform the way people perceive CNG filling services in India.”
Commenting on the collaboration, Mr. Rajesh Wagle, Sr. Vice President (Marketing), Mahanagar Gas Limited, stated, “MGL is dedicated to providing its customers with the best possible CNG filling experience. Our association with Nawgati is a strategic step forward towards enhancing our customer services. Our ‘MGL Tez’ app developed by insourcing will reach more customers, enabling CNG vehicle users to experience a smoother and more efficient experience.”
The collaboration between Nawgati and MGL represents a significant milestone in the Indian fuel industry, reflecting the shared commitment of both companies to provide innovative and customer-centric solutions.
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IOCL, Heavy Water Board inks MoU for natural gas supply in Thoothukudi, TN
The Indian Oil Corporation (IOCL) and Heavy Water Board (HWB) signed a memorandum of understanding (MoU) for supplying natural gas in Thoothukudi, Tamil Nadu, on 04 December, 2023.
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The supply through the city gas distribution (CGD) and agreement with the SPIC Fertilisers for synthesis gas supply, which is a raw material for the heavy water plant would fulfil the requirements within the country and for exports. The plant is integrated with SPIC and commissioning would start from June 2024.
The operation of the heavy water plant was suspended since 2007 due to failure of supply of synthesis gas. However, the plant is now being revamped.
The plant, a constituent unit of Department of Energy, employs the ammonia hydrogen mono-thermal exchange process to produce nuclear grade heavy water. Heavy water supply is a step towards adoption green fuel and reducing pollution.
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CNG filling now easier in Mumbai with MGL app: Pre-booked slots, no queues, digital payment
Mumbai’s state-run CNG distributor Mahanagar Gas Limited (MGL) has signed a Memorandum of Understanding (MoU) with fuel aggregator startup Nawgati in a bid to make CNG services more convenient, accessible and efficient for commercial vehicles in the city. As a part of the collaboration, the services provided through the MGL
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Tez app has now been integrated with Nawgati’s Fuel Discovery app.
The collaboration will help commercial CNG vehicle owners to bypass long queues, preschedule their slots at BEST depots and make digital payments. Do note that this service is currently available at Goregaon-Oshiwara and Ghatkopar BEST Depots, while there are plans in place to add 13 more depots across Mumbai soon.
Commenting on the collaboration, Rajesh Wagle, Sr. Vice President (Marketing), Mahanagar Gas Limited, said, “MGL is dedicated to providing its customers with the best possible CNG filling experience. Our association with Nawgati is a strategic step forward towards enhancing our customer services. Our ‘MGL Tez’ app developed by insourcing will reach more customers, enabling CNG vehicle users to experience a smoother and more efficient experience.”
CNG is not only a more affordable alternative to conventional fuels like petrol and diesel, but is also a much cleaner, eco-friendly alternative to the two. We recently compared running costs and fuel efficiency of a petrol car with that of a CNG car, with the latter emerging as the clear winner as far as reducing fuel costs is concerned. You can check out the full comparison here.
That said, the two major drawbacks of a CNG vehicle are the significant longer refueling period as compared to a petrol/diesel counterpart, and the fact that a CNG cylinder eats up a lot of space in your boot – in the case of private cars, of course. While MGL and Nawgati’s collaboration seems to improve the former situation a bit, Tata Motors is addressing the latter issue with its dual-cylinder technology as seen on Tata Punch CNG, Altroz CNG, and its other CNG cars.
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Natural Gas/ Pipelines/ Company News
Rajeev Kumar Singhal assumes charge as director (Business Development), GAIL
Shri Rajeev Kumar Singhal assumed charge as the Director (Business Development), GAIL (India) Limited on November 28, 2023. Singhal is an Electronics and Communication Engineer from IIT BHU Varanasi with a Diploma in Business and Finance from ICFAI.. He joined GAIL in 1989 as an Assistant Executive Engineer and has spent more than three decades at GAIL in various roles.
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He has gained extensive exposure in the operation and main- tenance of natural gas installations, SCADA/Telecom, LNG sourcing, trading, shipping, marketing, and business development activities covering mergers and acquisi- tions, diversification, renewable/green hydrogen, etc. Some of his notable achievements include marketing US LNG to six fertilizer plants under a long-term contract, rene- gotiating LNG sourcing contracts from Qatar and Russia, spearheading the acquisition of JBF Petrochemical Limited through NCLT, setting up India’s first Small Scale LNG project, and acquiring a 26% stake in Japonica, an LNG vessel company.
Source: Statesman Paper
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Indian Oil Corporation Corners More Than A Third Of D6 Gas In Latest Reliance Auction
State-owned Indian Oil Corporation (IOC) has cornered more than a third of the natural gas that Reliance Industries Ltd and its partner BP of the UK offered in the latest auction of the KG-D6 gas, sources said.
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IOC got 1.45 million standard cubic meters per day out of the 4 mmscmd of gas auctioned last week. The oil refining and marketing company, which was the top bidder even in the previous two auctions of gas from the eastern offshore KG-D6 block of Reliance-bp, bid the volumes as an aggregator on behalf of fertiliser plants.
City gas companies, including Torrent Gas and Gujarat Gas, secured a total of 2.21 mmscmd of gas for turning into CNG for sale to automobiles and piped gas to household kitchens for cooking purposes, two sources with direct knowledge of the matter said.
https://www.khabarindia.in/indian-oil-corporation-corners-third-d6-gas-latest-reliance-auction/
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NECC bags Rs 52 crore order from GAIL
“We have got the Letter of Acceptance from the top central public sector undertaking (India) Limited for transport of polymer under a contract value of Rs 52.48 crores for a of 3 years,” the filing said.
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New Delhi: Logistics company North Eastern Carrying Corporation Limited (NECC) has secured an order worth Rs 52.48 crore from stateowned GAIL (India) Limited for the transportation of polymer. The contract has to be executed over a period of three years, NECC said in a regulatory filing on Thursday.
The company has bagged the order through a bidding process to transport polymer. “We have got the Letter of Acceptance from the top central public sector undertaking GAIL (India) Limited for transport of polymer under a contract value of Rs 52.48 crores for a period of 3 years,” the filing said
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Policy Matters/ Gas Pricing/ Others
Haryana to roll out policy for CNG infrastructure
The Haryana government is set to launch a significant initiative — the ‘Right of Use and Right of Way’ policy — aimed at facilitating the smooth establishment of the CNG and PNG distribution network.. chandigarh: The Haryana government is set to launch a significant initiative — the ‘Right of Use and Right of Way’ policy — aimed at facilitating the smooth establishment of the CNG and PNG distribution network.This policy is poised to play a pivotal role in enhancing infrastructure flexibility and catalyzing progress, said Chief Secretary Sanjeev Kaushal on Monday.He was presiding over a comprehensive review meeting, convened by the Department of Industries and Commerce, Haryana, marking a pivotal stride in expediting the deployment of Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) infrastructure across the state.
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The meeting resonated as a crucial leap towards propelling Haryana’s dedication to fostering clean and sustainable energy solutions.Kaushal directed the officers concerned to inspect the industrial units not using approved fuel and to take strict action against the erring ones.During the meeting, it was reported that currently 632 industries have adopted gas as their fuel choice, out of which 257 are operating within the industrial zone.Additionally, 403 industries in the industrial sector are currently operating using approved alternate fuels.He announced the constitution of a state-level apex monitoring committee to oversee the strategic implementation of CNG and PNG infrastructure projects.
This committee will include representatives from the departments of industries and commerce, urban development, and local bodies.
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PNGRB hosts roadshow for 12th CGD bidding round
The Petroleum and Natural Gas Regulatory Board (PNGRB), on Thursday, hosted its first roadshow for the 12th city gas distribution (CGD) bidding round.
The 12th CGD bidding round aims to achieve 100 per cent coverage of the country by expanding the reach of natural gas by offering eight geographical areas (GAs) covering six North East States and Union Territories (UTs) of Jammu & Kashmir, and Ladakh.
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The event was inaugurated by Oil Secretary Pankaj Jain and PNGRB Chairman Anil Kumar Jain.
On completion of the 12th CGD bidding round, the entire country except the islands, will be covered under the city gas distribution network. It will provide access to cleaner cooking fuel for households, support industrial and commercial facilities and fuel transportation, marking a giant leap towards achieving a gas-based economy.
Oil Secretary highlighted the potential of piped natural gas (PNG) in these States. Moreover, he emphasised the utilisation of emerging technologies to introduce gas in these areas, recognising the tremendous potential for innovation and progress in enhancing gas infrastructure and accessibility.
The initiation of the 12th CGD bidding round, specifically tailored for these States/UTs, reflects a strategic move to provide cleaner fuel within the delicate ecosystems of these regions, said the PNGRB Chairman.
He also highlighted the potential of north eastern India, portraying it as a crucial link between mainland India and Southeast Asia.
Electronic bids have been invited from October 13, with the last date for submission of bids set for January 11, 2024, for 7 GAs under 12th CGD bidding round, and February 23, 2024 for Mizoram GA. PNGRB aims to finalise the award by February-March 2024.
Currently, there are 300 GAs authorised by PNGRB covering around 88 per cent of the country’s geographical area and 98 per cent population. The total consumption by CGD is 35 million cubic meters per day (MSCMD).
PNGRB has also authorised around 32,203 kms of natural gas trunk pipelines, out of which around 22,191 kms of pipelines are currently operational.
As of August 2023, India has a total of 1.16 crore piped natural gas (PNG) connections and 6,000 compressed natural gas (CNG) stations.
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Proposed 5% biogas blending with LNG can cut imports worth $1.17 bn: IBA
The study comes against the backdrop of the government’s recent mandate to blend one per cent biogas with piped natural gas (PNG) supplies in the country from April 1, 2025. The proposed 5 per cent blending of biogas with natural gas supplies in the country can cut LNG imports worth $1.17 billion annually, says a study by the Indian Biogas Association (IBA).
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The study comes against the backdrop of the government’s recent mandate to blend one per cent biogas with piped natural gas (PNG) supplies in the country from April 1, 2025 under the compressed biogas blending obligation (CBO) scheme.
The biogas blending is proposed to be further increased to 5 per cent by fiscal year 2028-29.
According to the study, this blending initiative gels well with the government’s macro-level move to make India a gas-based economy, with a target to increase the current share of gas in the energy mix from 6 per cent currently to 15 per cent by 2030.
The IBA estimates show that 5 per cent blending of biogas with natural gas can reduce LNG imports worth $1.17 billion. This can also bring down per capita CO2 emissions by two per cent, benchmarked to the 2019 figure, which was 1.9 metric tonne of CO2 per person in India.
Additionally, the body says preventing organic waste going to landfills can bring innumerable benefits.
The CBO scheme shall encourage investment of around Rs 37,500 crore and facilitate the establishment of at least 750 compressed bio gas (CBG) projects by 202829, as per government estimates.
This is going to improve India’s energy security, as it is currently heavily reliant on imported natural gas to meet its energy needs.
Blending biogas with PNG and CBG can help reduce this dependence, which is invaluable.
Biogas blending has the potential to demonstrate a positive correlation with agricultural income growth too, which is the case with ethanol as well.
Every additional large-scale plant can ensure that almost 1,000 acre of nearby biogas plant area can be converted into organic agriculture.
Biogas can be produced from various organic waste sources, such as agricultural waste, municipal solid waste, and food waste.
This can create new economic opportunities for farmers, waste management companies, and other stakeholders involved in biogas production.
Blending of biogas with natural gas will streamline the market for biofuels, making it more investor-friendly by reducing capital and operational costs, the body says.
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India bans diversion of sugarcane juice, syrup for ethanol production
The Indian government on Thursday banned sugar mills and distilleries from using sugarcane juice or sugar syrup for the production of ethanol with immediate effect to ensure adequate availability of sugar for domestic consumption.
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However, the Ministry of Consumer Affairs, Food and Public Distribution said in its order that supply of ethanol from B-heavy molasses will continue under existing offers received by oil marketing companies (OMCs) in the ethanol supply year 2023-24 (November 2023 to October 2024). B-heavy molasses is the syrup leftover in the second molasses – the first one is left after sugar is crystallised out.
The government has allowed OMCs to accept ethanol already produced directly from sugarcane juice or syrup.
“By this restriction, about 2.5 million tonnes (mt) of additional sugar will be available in the domestic market, which may flare up the estimated surplus of the season to about 4 mt over and above domestic demand and carry-forward stock,” said an industry official.
The committee of ministers this week decided that top priority should be given to sugar production this year, an official source said. The government does not want to take any chance due to General Elections scheduled in April-May 2024 and any adverse impact of El Nino on sugarcane crop next year, the source said.
Stocks suffer hit
Stock market bears took advantage of the situation by crushing sugar companies stocks soon after the announcement. Among the companies, Uttam Sugar Mills declined by 8.38 per cent to ₹408.35 on the NSE followed by EID Parry (down 6 per cent), Dalmia Bharat Sugar & Industries (5.52 per cent), Balrampur Chini Mills (5.37 per cent), DCM Shriram Industries and Triveni Engineering Industries (4.8 per cent each) . Other such as Magadh Sugar, Avadh Sugar, Ugar Sugar Works, Bajaj Hindusthan, Sakthi Sugars, Dwarikesh Sugar and Dhampur Sugar fell between 3 per cent and 4.5 per cent.
Sources said the Petroleum Ministry has expressed its reservation on the proposal to ban sugarcane juice fearing the 15 per cent ethanol blending with petrol (EBP) target for 2023-24 will be missed. In 2022-23, the government achieved a 12 per cent EBP target for which 540 crore litres of ethanol were supplied by sugar mills and distilleries.
Official sources said there would be no discontinuation of B-heavy molasses as such a step will further reduce the availability of ethanol.
Earlier the government was estimating sugar production this season at 29-30 mt against annual domestic consumption of about 28 mt and last year’s output of nearly 33 mt. The opening stock as on October 1 was 5.7 mt from last year’s production. which needs to be maintained at around 6.5-7 mt to meet any exigency for first two and half months of the crushing season starting October.
Policy tweak vs ban
Many industry officials suggested that the ethanol price policy may be tweaked instead of imposing a blanket restriction, as sugar mills can choose the best profitable means to produce ethanol from sugarcane juice or syrup or B-heavy molasses or C-heavy molasses.
For ESY 2022–23, the OMCs floated a tender for 599.7 crore litres of ethanol against which letters of intent (LoIs) were issued for 564.45 crore litres as of August 2023. According to industry sources, mills were awarded orders to produce about 270 crore litres – 130 crore litres (equivalent of 2.2 mt of sugar) from direct juice or syrup and 135 crore litres (equivalent of 1.1 mt of sugar) from B-heavy molasses. About 290 crore litres from grain-based source (including dual-feed based sugar plants) were also finalised in the first round (cycle 1) of supply tender.
The OMCs are yet to announce ethanol prices for the 2023-24 season and distilleries have agreed to supply on the condition that the difference (from last season’s rates) would be paid.
Price variation
Ethanol price varies according to the raw material used. In the 2022-23 season (December to October), ethanol from direct sugarcane juice/syrup was priced Rs 65.73/litre; it was Rs 60.73/litre for B-heavy molasses and Rs 49.41/litre for C-heavy molasses.
Similarly, the rates were Rs 66.07/litre for maize, Rs 64/litre for damaged rice, Rs 58.50/litre for FCI’s subsidised rice supplied at Rs 20/kg (since discontinued).
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LNG Use / LNG Development and Shipping
NNPC signs LNG agreements with Wison and SDP Services
In its efforts to further boost natural gas utilisation in the country and enhance Nigeria’s gas revenue, NNPC Ltd has signed two major agreements to deliver LNG to the domestic gas market and the international LNG market. During two separate signing ceremonies held on the sidelines of the on-going United Nation’s Climate Change Conference (also known as COP28), NNPC Ltd has signed a memorandum of understanding (MoU) with Wison Heavy Industry Co. Ltd, a Chinese company, for the development of floating LNG (FLNG) project in Nigeria, targeting the international LNG market.
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Also, NNPC Prime LNG Ltd, an arm of NNPC Trading Ltd, has signed a supply, installation, and commissioning agreement with SDP Services, an independent oil and gas company, for a 421 tpd LNG project targeting the domestic LNG market.
The FLNG MoU was signed by the Executive Vice President, Gas, Power & New Energy, Olalekan Ogunleye on behalf of NNPC Ltd, and Kai Xu, Managing Director of Wison Ltd, on behalf of his company. Both parties agreed to work together to chart a roadmap for the project development that will lead to an investment decision.
Similarly, the small scale LNG (SSLNG) project agreement was signed by the Managing Director, NNPC Trading Ltd, Lawal Sade, on behalf of NNPC Prime LNG Ltd, while Abhinav Modi, Managing Director of SDP Services Ltd, signed on behalf of his company.
The SSLNG project, which will be located at Ajaokuta in Kogi State, Central Nigeria, will ensure the efficient supply of LNG to the autogas/compressed natural gas (CNG) and industrial/commercial customers nationwide. The LNG project is expected to be operational by December 2024.
Speaking shortly after the signing ceremony, the EVP Gas, Power & New Energy, Olalekan Ogunleye, said NNPC Ltd is committed to delivering gas to industries nationwide and accelerating the company’s gas commercialisation efforts through the FLNG Project.
“We see both projects as having enormous impact all over the country because they are central to the commercialisation of Nigeria’s abundant gas resources and ensuring that our country earns the much-needed foreign revenue from its abundant gas assets. It is also consistent with NNPC Management’s drive to deliver on Mr. President’s gas and power aspirations across the country,” Ogunleye stated.
Also, in his address after the signing, the MD NNPC Trading Ltd, Lawal Sade, said the SSLNG project will boost the domestication of LNG utilisation by supporting the growth of auto-gas initiatives across the country.
“We are looking at a timeframe of 12 months from execution to the commissioning of the project. The project will deliver about 420 tpd of LNG into the domestic market, which will enhance efficient delivery of gas to the auto-gas/CNG and industrial customers in line with Presidential mandate,” Sade added.
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HPCL to commission Chhara LNG terminal in 2-3 months
New Delhi: Hindustan Petroleum Corporation Ltd (HPCL) plans to start operations at the 5 million tonne a year Chhara LNG import terminal in Gujarat in the next couple of months and has already got offers from 6-7 parties to hire capacity, a senior company official said on Thursday. The terminal was mechanically completed in March but its commissioning was delayed as a 40-km pipeline connecting it to an existing network meant for sales to consumers was not yet ready.
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“We will commission the LNG terminal in the next couple of months,” HPCL Director (Marketing) Amit Garg told reporters here.
HPCL, the oil refining and fuel marketing company, has been a late entrant into the gas business. It built the facility at Chhara in Gir-Somnath district of Gujarat to receive natural gas that has been supercooled to a liquid state in cryogenic ships. At the terminal, the liquid gas will again be turned into gaseous state before being piped to industries for use as feedstock.
Garg said the company has got offers from 6-7 parties for hiring of the import capacity at Chhara. “We are in discussions and a decision will be taken soon.”
He however refused to name the company interested in hiring the facility.
HPCL was initially looking to lease capacity of 3 million tonne per year to other companies for a period of more than 10 years.
The pipeline connecting to the gas grid is expected to be ready soon.
The LNG terminal is part of the gas infrastructure that is being built in the country as part of the vision to increase the share of natural gas in India’s energy mix to 15 per cent by 2030 from about 6 per cent now.
Gas can be used to make fertilizer, generate power, produce chemicals and convert into CNG to run automobiles or piped to household kitchens for cooking.
While HPCL builds its gas business, the company will continue to invest in expanding its traditional fuel retailing business.
Garg said HPCL plans to add 1,000 petrol pumps every year to its network of about 21,500 stations.
“India is a growing market where per capita energy consumption is way below the world average. And as the economy expands, there will be space for all fuels, both conventional fossil fuels and cleaner alternate ones, to grow,” he said adding HPCL would add petrol pumps in unserved areas.
This addition would continue for the next 2-3 years, he said.
Also, the firm will build on the infrastructure for alternate fuels. It plans to double the EV charging stations to 5,000 in the next two years, he said.
HPCL is also setting up stations that can fuel LNG-powered trucks and buses, while its retail network also expands CNG dispensing capacity.
“Future will have all kinds of fuels and we are just building our position,” he added.
https://psuwatch.com/newsupdates/hpcl-to-commission-chhara-lng-terminal-in-2-3-months
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Electric Mobility/ Hydrogen/Bio-Methane
Here’s How Biogas Is Set To Save India $1.17 Bn Annually, Reel In Rs 37,500 Cr
India’s plan to blend 5 per cent biogas with its natural gas supplies could significantly reduce liquefied natural gas (LNG) imports, saving approximately $1.17 billion annually, PTI reported, citing a report by the Indian Biogas Association (IBA). This initiative aligns with the government’s directive to introduce a 1 per cent biogas blend with piped natural gas (PNG) starting April 1, 2025, under the compressed biogas blending obligation (CBO) scheme, aiming to increase to 5 per cent by fiscal 2028-29. Turning India into a gas-based economy has been a crucial national goal for a while now.
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This involves boosting the gas’s current 6 per cent share in the energy mix to 15 per cent by 2030. The projected 5 per cent biogas-natural gas blend is expected to reduce India’s LNG imports significantly, thereby decreasing per capita CO2 emissions by 2 per cent, compared to 2019’s 1.9 metric tons per person, PTI reported.
Moreover, the scheme could foster investments worth Rs 37,500 crore, facilitating the establishment of at least 750 compressed biogas (CBG) projects by 2028-29. This development is crucial for enhancing India’s energy security, given its heavy reliance on imported natural gas.
The integration of biogas into the PNG and CBG supply chains is not only a step towards self-reliance but also promises economic benefits. The move can positively impact agricultural incomes, similar to the influence observed with ethanol. Each large-scale biogas plant can potentially convert around 1,000 acres of land near the plant into organic agriculture.
Biogas production, utilising diverse organic waste sources like agricultural residues, municipal solid waste, and food waste, opens new economic avenues for farmers, waste management entities, and other stakeholders.
Furthermore, the biogas-natural gas blend will streamline the biofuels market, enhancing investor appeal by lowering capital and operational expenses. The IBA emphasises that these developments will facilitate smoother biofuel market transactions and bolster investor confidence in the sector.
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Adani total gas ltd on target to install 75,000 EV charging stations by 2030: Gautam Adani
Taking to social media platform X (formerly Twitter), Adani said that the enterprise is carrying out ‘massive expansions’ with CNG and PNG and through its Greenmosphere initiative, has also planted 2,20,000 trees.
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Ahmadabad: Adani Group Chairman Gautam Adani said on Friday that Adani Total Gas Ltd is on target to install 75,000 electric vehicle (EV) charging stations by 2030.Taking to social media platform X (formerly Twitter), Adani said that the enterprise is carrying out ‘massive expansions’ with CNG and PNG and through its Greenmosphere initiative, has also planted 2,20,000 trees.He further said that all 50 sites of the group are being powered by rooftop solar panels.
The Adani group Chairman added that the group’s operations vehicle fleet has completely switched from diesel to CNG.”Adani Total Gas Ltd is on the move! Our massive expansion continues with CNG and PNG, compressed biogas, and e-mobility. We are on target for installing 75,000 EV charging stations by 2030. All our own 50 sites are now powered by rooftop solar panels. Our operations vehicle fleet, covering 37 million kms yearly, completely switched from diesel to CNG. Plus, through our ATGL Greenmosphere initiative, we have planted 220,000 trees, cutting down 3,000 tons of CO2 annually,” Gautam Adani posted on X.
— gautam_adani (@gautam_adani)Earlier on Thursday, Adani declared Adani Group’s commitment to revolutionize the cement industry through sustainable practices.”Ambuja & ACC are leading a sustainable revolution in the cement industry. Over 90% of our cement production is now blended cements recycling waste fly ash and slag. This significant shift not only enhances the environmental footprint of our cement but also marks a substantial step towards sustainability. Additionally, we are committed to powering 60% of our cement production with renewable energy sources by 2028. This ambitious goal will establish us as a frontrunner in the global arena of sustainable cement production,” he posted on X.
Adani highlighted the pivotal role played by Ambuja and ACC, both under the Adani Group umbrella, in spearheading a sustainable revolution within the cement sector.
He revealed that over 90 per cent of the Adani Group’s cement production now involves blended types of cement, incorporating recycled waste fly ash and slag.
A key aspect of Adani’s vision is the commitment to power 60 per cent of their cement production with renewable energy sources by 2028.
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‘Green Hydrogen Policy to help convert Agri-residue into assets from liability’
Chandigarh: In a bid to make Punjab a front-runner state in green & clean energy production across the country, New and Renewable Energy Sources Minister, Aman Arora on Friday said that Punjab Green Hydrogen Policy drafted by Punjab Energy Development Agency (PEDA), will help to convert the agriculture residues, which is now considered as a liability, into green energy assets.
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Presiding over a half-day Open-House Session on the Draft Green Hydrogen Policy for the State of Punjab organised here at CII, Aman Arora said that the Policy aims to make Punjab a Green Hydrogen/Ammonia producer with a production capacity of 100 Kilo tonnes per annum by the year 2030, besides, developing innovative manufacturing capacities of producing Hydrogen such as biomass gasification, steam methane reforming, electrolysis of waste water, Hydrogen fuel blending etc.
This initiative will pave a way to explore the technologies for producing green hydrogen from biomass. Punjab has been mainly focusing on the production of green hydrogen from biomass, which is an attractive option for transition to a zero-carbon future as 20 million tonnes of paddy straw is being generated annually, he added.
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10,000 fuel stations now offering EV charging facilities across the country
Nearly 10,000 fuel pumps across the country are now offering electric vehicle charging facilities, signalling that traditional energy suppliers are in no mood to be left behind in India’s rapid shift to electric vehicles, The Economic Times reported citing oil ministry data.
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The country’s top fuel retailer, Indian Oil, is leading the race in setting up EV charging facilities at its fuel stations. The company installed EV charging infrastructure at more than 6,300 of its fuel pumps. Hindustan Petroleum, on the other hand, has installed charging facilities at more than 2,350 fuel stations, while Bharat Petroleum has 850 plus fuel stations that offer EV charging facilities, the ET report said, citing data from the oil ministry.
Private fuel retailers are also setting up EV charging facilities. This includes Shell and Nayara Energy who have installed around 200 charging stations at their fuel pumps each. The joint venture of Reliance Industries and BP has also set up EV charging facilities at its 50 fuel stations, the ET report said.
Government push for more charging stations
To encourage the adoption of electric vehicles (EVs), the government has been pushing state-owned oil companies to build a reliable network of charging stations to help EV drivers and quell range anxiety. The government sees EV adoption as a crucial step in decreasing costly fuel imports alongside reducing pollution.
To this end, the government has mandated that all petrol pumps set up after 2019 must have one alternate energy supply besides petrol and diesel. The alternate fuel could be CNG, biogas, or EV charging facility. Indian Oil, HPCL, and BPCL together, are aiming to set up charging facilities at 22,000 pumps and have achieved about 40 per cent of this target. EV charging facilities are being set up in both cities and highways.
Responding to a question about EV infrastructure in the country, BPCL told ET, “BPCL has launched more than 90 EV fast-charging highway corridors in the country, with fast charging stations at roughly every 100 km on both sides of the highways. Corridors cover more than 30,000 km (both ways) across highways. Chennai-Trichy-Madurai, Chennai-Bengaluru, and Bengaluru-Coorg were the first three EV fast-charging corridors set up by BPCL,” the ET report said.
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Tata Motors secures first CMVR approval for its hydrogen FCEV buses
FCEV is a type of electric vehicle that uses hydrogen fuel cells to generate electricity instead of relying solely on batteries. Tata Motors became the country’s first bus manufacturer to receive the Central Motor Vehicles Rules (CMVR) type approval certificate for its Hydrogen Fuel Cell powered (FCEV) buses.The largest commercial vehicle manufacturer in India obtained the approval for its Tata Starbus 4/12 FCEV model along with its variations.
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The testing agency, Automotive Research Association of India (ARA) — an autonomous body affiliated with the Ministry of Heavy Industries — said, “Tata Motors is the first original equipment manufacturer (OEM) in India to receive Type Approval certificate with full compliance for all notified provisions of CMVR.”
FCEV is a type of electric vehicle that uses hydrogen fuel cells to generate electricity instead of relying solely on batteries. This makes it potentially more efficient and environmentally friendly than traditional gasoline or electric vehicles.
Zero tailpipe emissions, long range, fast refuelling, and high efficiency make FCEV a better option for public transportation as against pure electric vehicles (EVs).
Though FCEV technology is still in its early stages of development, it has the potential to play a significant role in the future of transportation. As hydrogen infrastructure expands and the cost of FCEVs comes down, they could become a more viable option for consumers.
Tata Motors has already received orders for these buses. In June 2021, it won a tender from Indian Oil Corporation Limited (IOCL) to provide 15 FCEV buses.
In September, as a part of the Memorandum of Understanding (MoU), Tata Motors delivered two buses to IOCL for research and development. “Approvals were taken from the Ministry of Road Transport and Highways for specific routes for this purpose,” a company spokesperson said.
“We are delighted to have received the first CMVR type approval certificate for the application of Fuel Cell Technology. This certification furthers Tata Motors’ pioneering legacy of innovation and our deep-rooted commitment to nation building, sustainability, and carbon neutrality,” the Tata Motors spokesperson added.
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INTERNATIONAL NEWS
Natural Gas / Transnational Pipelines/ Others
Norway: ConocoPhillips celebrates start-up of new natural gas field offshore Norway
(WO) – On Friday, Dec. 1, the Norwegian Minister of Petroleum and Energy Terje Aasland visited the Ekofisk Complex with partner companies, contractors and authorities, celebrating the start-up of the Tommeliten A natural gas and condensate field in the North Sea.
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All the visitors were given a tour of Ekofisk. Representatives from partner companies, contractors, the Ministry of Petroleum and Energy, the Norwegian Petroleum Directorate, as well as local authorities took part in the celebration.
The Tommeliten A field started production on Oct.13, delivering natural gas to Europe nearly six months earlier than scheduled.
Tommeliten A is a development with two subsea templates in the North Sea tied back to the Ekofisk Complex. The total resource potential is estimated in the range of 120-180 MMboe, mainly comprising of natural gas (approx. 70%) and condensate (approx. 30%).
As operator of the Tommeliten A Unit, ConocoPhillips Skandinavia AS has an ownership interest of 28.1385%, while PGNiG Upstream Norway AS has 42.1978%, TotalEnergies EP Norge AS has 20.1430%, Vår Energi ASA has 9.0907%, ConocoPhillips (U.K.) Holdings Limited has 0.2109%, TotalEnergies E&P UK Limited has 0.1510% and ENI UK Limited has 0.0681%.
Tommeliten A (PL 044) was discovered in 1977. It is a fractured chalk field containing gas condensate and volatile oil. The field consists of an Ekofisk Formation and a Tor Formation, similar to surrounding fields in the Greater Ekofisk Area. The field is a U.K.-Norway trans-boundary field as it extends from Norwegian Block 1/9 into U.K. Block 30/20. The development plan is based on the Norwegian PDO.
“It is great celebrating that the Tommeliten A field is in operation, delivering gas to Europe. Earlier production start-up is the result of good and efficient cooperation with our partners, contractors and the authorities,” said Steinar Våge, ConocoPhillips’ President for Europe, Middle East and North Africa.
The total capital investment for the project was approximately NOK 13 billion, enabling about 5,000 jobs during the project period. Most of the contracts were awarded to Norwegian businesses.
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US: Chevron to develop natural gas field off Cyprus
The Greek Cyprus government and U.S. energy company Chevron have reached a deal on how to develop the Aphrodite gas field, the first to be discovered under the seafloor off Cyprus, an official Friday. The field is estimated to hold 4.2 trillion cubic feet of gas.
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The agreement is “mutually beneficial” for both Cyprus and the company, the Cypriot official told The Associated Press but did not disclose further details.
It was not immediately clear when the deal was reached. The official spoke on condition of anonymity because he was not authorized to discuss the agreement publicly.
The Greek Cypriot energy ministry said in a statement Friday a letter from Chevron affirmed that both sides are in “alignment” regarding the “wider framework of the field’s exploitation.” The ministry added that they would “intensify discussions” in the coming weeks on the agreed-upon development plan “for the mutually beneficial exploitation” of the site.
Chevron wanted to send the gas to Egypt through a pipeline, but Greek Cyprus preferred to process it on a floating production facility because it would be more economically beneficial for the Greek Cypriot government and would lend more flexibility to supplying other markets.
The agreement ends protracted negotiations that stalled development of the field for years and now paves the way for extraction of the hydrocarbon after a dozen years since the deposit was discovered.
https://www.hurriyetdailynews.com/chevron-to-develop-natural-gas-field-off-cyprus-188308
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Mexico: Contracts Awarded for Sierra Madre Pipeline Project
Mexico Pacific Ltd. LLC has awarded the engineering, procurement, and construction (EPC) contracts for the Sierra Madre pipeline project to a joint venture of GDI Sicim Pipelines SA de CV and Bonatti Mexico SA de CV.
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Mexico Pacific said in a media release that the 500-mile pipeline will be utilized as the primary natural gas supply path for the transportation of up to 2.8 billion cubic feet per day of natural gas from the United States border to the first phase of Mexico Pacific’s 15 million tonnes per annum (MTPA) Saguaro Energia liquefied natural gas (LNG) export facility located in Puerto Libertad, Sonora, Mexico.
Under the lump-sum-turnkey EPC contracts, the GDI Sicim Pipelines and Bonatti joint venture will engineer, procure and construct the Sierra Madre pipeline, with Bonatti’s scope extending to the required compressor stations, Mexico Pacific said.
Ivan Van der Walt, chief executive officer of Mexico Pacific, called the contractors “a team of best-in-class international pipeline contractors with proven track records of pipeline execution and delivery in Mexico.“
“Execution of our pipeline EPC contracts represents yet another important inflection point for our project as we prepare to move into construction. We look forward to working with GDI Sicim Pipelines and Bonatti in delivering a project that will bring transformational value to Mexico and critically needed cleaner energy supply to global markets”, Van der Walt said.
Earlier this month, Mexico Pacific signed a strategic collaboration agreement with the government of the state of Chihuahua, attracting key financial investment in Chihuahua and supporting the construction and operation of the pipeline.
As part of the agreement, Mexico Pacific said the Chihuahua government will continue to pave an efficient path for the commencement of construction of this project in the coming months, marking a milestone in the progression of energy infrastructure in the state.
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Peru: Peru steps up natural gas expansion push
Peru’s energy and mines ministry has approved the creation of a committee to conduct bidding to expand natural gas use in Huancavelica department. The planned work falls under the framework of a special infrastructure projects program for the massification of gas in the interior of the country financed by social energy inclusion fund FISE.
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The committee will be comprised of FISE officials and a representative of the ministry’s natural gas management office.
In November, the ministry and Huancavelica regional government signed an agreement to promote gas use.
A gas distribution concession does not exist in Huancavelica and previous attempts to offer a concession for the service fell through due to questionable financial and technical feasibility, which led to a government push to promote gas use through region-specific initiatives.
The ministry also greenlighted the establishment of a committee to manage the bidding process of the BonoGas program for gas installation in hospitals.
In a related development, the ministry, through FISE, signed an agreement with four hospitals in Lima, Callao, and Trujillo for the free installation of natural gas.
“This service will help replace the use of more expensive fuels such as diesel or LPG, representing an approximate annual savings of S/3.4 million [US$910,000],” the ministry said in a statement.
NORTHERN LOBBY
Meanwhile, lawmakers of parliamentary group Alianza para el Progreso introduced a bill to congress to increase residential gas coverage in the northern region of Piura.
The initiative would declare the implementation of gas connections in the provinces of Ayabaca, Huancabamba and Morropón of national interest and public need.
“Progress in the first stage of residential natural gas installation in the provinces of Piura, Sullana, Talara, Paita and Sechura in Piura region has had a profound positive socioeconomic impact,” according to the legislators.
Gas distributor concessionaire Quavii provides existing coverage in the region.
https://www.bnamericas.com/en/news/peru-steps-up-natural-gas-expansion-push
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Mexico: Despite Lofty Rhetoric at COP28, US Approves LNG Pipeline to Mexico
The U.S. State Department, said Public Citizen, “abdicated its authority” when it approved the Saguaro LNG pipeline without securing an emissions review. Days after U.S. Secretary of State Antony Blinken addressed the 28th United Nations Climate Change Conference and warned that food insecurity “is made worse by our warming climate,” government watchdog Public Citizen wrote to the top diplomat Wednesday, demanding to know why—if he is concerned about planetary heating—his agency recently approved the construction of a fracked gas pipeline.
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The group was particularly perplexed by the fact that the State Department approved Oneok’s Saguaro pipeline even though two weeks earlier, the Bureau of Energy Resources had ignored a request for a federally mandated emissions review for the project.
“Today Public Citizen requests that the U.S. Department of State explain why it abdicated its authority to grant a favorable recommendation for a natural gas export pipeline without first obtaining a lifecycle analysis of the project’s impact on greenhouse gas emissions,” wrote Tyson Slocum, director of Public Citizen’s energy program. “We request a meeting with the appropriate representative to discuss.”
Oneok wrote to the Federal Energy Regulatory Commission (FERC) in December 2022, requesting a presidential permit to build and operate the proposed 155-mile pipeline, which would connect the Permian Basin in West Texas to liquefied natural gas (LNG) export terminals in Mexico.
“Why did the government backtrack on a modest demand for a greenhouse gas emissions analysis for a pipeline and instead rubber-stamp a major fossil fuel project?”
FERC is required to obtain a “favorable recommendation” from the State Department before granting a permit for the construction of a pipeline that would cross a U.S. border.
But in an executive action announced in September, President Joe Biden directed agencies to consider the greenhouse gas impacts of new projects, “in environmental reviews conducted pursuant to the National Environmental Policy Act (NEPA).”
As such, Public Citizen noted in its letter, Hagen Maroney, deputy director of the State Department’s Office of Global Change wrote to FERC on November 8 requesting “a greenhouse gas emissions analysis for the Saguaro pipeline project that covers lifecycle upstream and downstream greenhouse gas emissions.”
Both FERC and Oneok refused to cooperate with the request, saying it was “beyond the scope” of the agency’s analysis—but nevertheless, on November 13, the company and the commission were granted a favorable recommendation for the presidential permit.
As Reutersreported in June, U.S. companies were on track to approve three LNG export projects capable of processing 5.1 billion cubic feet per day (bcfd)—a record annual volume for LNG projects.
The U.S. became the largest producer of LNG in 2022, with exports expected to reach 12.1 bcfd this year and 12.7 bcfd in 2024.
“The Biden administration must explain why it is allowing a major fossil fuel export pipeline to be built, at the very moment it is traveling to global climate talks to call for ambitious climate action,” said Slocum. “Why did the government backtrack on a modest demand for a greenhouse gas emissions analysis for a pipeline and instead rubber-stamp a major fossil fuel project?”
“The green light for the Saguaro pipeline project,” he added, “shows yet again that the Biden administration’s support for unfettered fossil fuel exports compromises its position to address the climate crisis.”
https://www.commondreams.org/news/lng-2666465192
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Natural Gas / LNG Utilization
US: Commonwealth to tap Onstream CO2 for CCS at LNG Facility
Commonwealth LNG has entered into a memorandum of understanding with OnStream CO2 LLC, a joint venture between Carbonvert Inc. and Castex Carbon Solutions, LLC, for a carbon capture and storage (CCS) solution at Commonwealth’s liquefied natural gas (LNG) facility under development in Cameron, Louisiana.
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Under the agreement, OnStream CO2 will design, construct, own, and operate carbon dioxide capture equipment near the Commonwealth LNG site. Commonwealth will supply carbon dioxide emitted from the LNG facility for a 20-year term, the Houston-based company said in a news release Tuesday.
The captured carbon dioxide will be permanently sequestered at the Cameron Parish CO2 Hub, which Castex will operate. The Carbonvert-Castex joint venture recently announced an operating agreement with the State of Louisiana to develop a 24,000-acre tract of land offshore Cameron Parish, where it will permanently store carbon dioxide in a hub with capacity for more than 250 million metric tons, according to the release.
“Adding carbon capture technology complements our comprehensive goal of achieving best-in-class environmental standards through measures that also include a focus on responsibly sourced gas and the installation of the highest efficiency gas turbines”, Commonwealth LNG Founder and Executive Chairman Paul Varello said.
“Commonwealth’s commitment to our storage site is a great first step and instills confidence in the Lake Charles industrial corridor to launch CO2 capture initiatives and enhance resilience amidst carbon-related global trade requirements and customers’ increasing demand for low-carbon products”, Carbonvert Founder and CEO Alex Tiller said.
“We are pleased to work with Commonwealth LNG to achieve the shared vision of safely, permanently and economically reducing CO2 emissions”, Castex EVP and CFO Aaron Killian said. “OnStream’s tailored CO2 capture, transportation, and storage solution will allow Commonwealth LNG to achieve key environmental initiatives while focusing on its core LNG business”.
Commonwealth said it expects a final investment decision on its LNG project in the first half of 2024, with first cargo deliveries projected in 2027. Commonwealth is aiming for an accelerated construction schedule by using a modular approach with major components being fabricated offsite. The final terms of the carbon capture arrangement remain subject to negotiation of a definitive agreement between the parties, the company said.
The Cameron Parish CO2 Hub will be “a leading choice for regional emitters seeking efficient and sustainable decarbonization solutions”, Carbonvert and Castex said in an earlier joint news release. Carbonvert and Castex formed a 50-50 joint venture in August 2022 to identify and advance CCS projects in Louisiana.
Commonwealth is developing an LNG export terminal project located on the Calcasieu River at the Gulf of Mexico near Cameron, Louisiana, with a capacity of 9.3 million metric tons per annum (mtpa). The project’s leadership team is committed to building a world-class LNG facility while relentlessly focusing on safety, managing risk and achieving best-in-class environmental standards, the company said.
In September, Commonwealth LNG entered into separate heads of agreements (HOAs) with EQT Corp. and the MET Group for one mtpa of LNG each. The EQT HOA is for a 15-year tolling agreement, while the MET HOA is for 20 years. For both HOA, the final terms remain subject to negotiations for definitive agreements between the companies. The terms anticipated under the non-binding HOAs will begin in 2027 upon the start of the facility’s commercial operations.
In August, Commonwealth signed a strategic agreement with Baker Hughes for work on its LNG facility under development in Cameron Parish. Baker Hughes will work with Commonwealth to maximize the project’s output and minimize emissions through the use of Baker Hughes’ LM9000 aeroderivative gas turbine technology, according to an earlier news release.
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Italy: First LNG and CNG Filling Stations in Petrom Network
OMV Petrom has entered a partnership with Vulcangas Romania for opening liquefied and compressed natural gas filling stations. The first one is expected to be operational in 2025 and will be installed at a Petrom filling station located in Chitila Sat, Ilfov County. This station will supply light and heavy transportation vehicles. Other future filling stations will be installed depending on the evolution of LNG and CNG demand in Romania.
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“Through this partnership, we continue to diversify our mobility offer for medium and long-distance freight transport, by supporting the growth of the LNG and CNG market. Natural gas can be a viable option for the transition to cleaner transportation,” Radu Caprau, member of the OMV Petrom Executive Board, responsible for Refining and Marketing, said.
“We value the collaboration with OMV Petrom in order to bring our expertise and experience in providing LNG/CNG solutions to the Romanian market. Our focus on innovation, sustainable development and quality and safety-based services for all our customers makes us share the same values with our partner OMV Petrom. Having all these tools and shared values at hand we can become, together with our partner, important players on the Romanian LNG/CNG market,” Costantino Amadei, Vulcangas Romania administrator, added.
LNG/CNG freight transportation generates approximately 15% less CO2 emissions, 50% less SOx emissions and almost no heavy particulate emissions. A truck fuelled by LNG/CNG can benefit from an autonomy of up to 1,600 kilometres.
About Vulcangas Romania
Vulcangas Romania is a subsidiary of Società Italiana Gas Liquidi S.P.A., founded in 1978 by Fabbri Family, a top supplier of natural gas and LPG solutions in Italy.
Società Italiana Gas Liquidi S.P.A. ‘Vulcangas’ with headquarters in Rimini is a leading company in the Small Scale LNG distribution sector in Italy and Europe, which has been working constantly, for over 40 years, to offer the best services to its customers.
https://energyindustryreview.com/oil-gas/first-lng-and-cng-filling-stations-in-petrom-network/
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Global LNG Development
US weekly LNG exports reach 24 cargoes
US liquefaction plants shipped 24 liquefied natural gas (LNG) cargoes in the week ending November 29, while natural gas deliveries to these terminals dropped by 0.6 percent compared to the week before. The EIA said in its weekly report, citing shipping data provided by Bloomberg Finance, that the total capacity of these 24 LNG vessels is 91 Bcf.
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The agency did not release its weekly report in the prior week due to to holidays. During the week of November 9-15, US terminals shipped 27 LNG cargoes.
Average natural gas deliveries to US LNG export terminals during the week November 23-29 decreased by 0.1 Bcf/d compared to the prior week, averaging 14.3 Bcf/d, according to data from S&P Global Commodity Insights.
Natural gas deliveries to terminals in South Louisiana decreased by 1.5 percent (0.1 Bcf/d) to 8.7 Bcf/d, while natural gas deliveries to terminals in South Texas increased by 1.7 percent (0.1 Bcf/d)
The agency said that natural gas deliveries to terminals outside the Gulf Coast decreased by 2.2 percent (less than 0.1 Bcf/d).
Cheniere’s Sabine Pass plant shipped nine LNG cargoes and the company’s Corpus Christi facility sent three shipments during the week under review.
The Freeport LNG terminal and Venture Global’s Calcasieu Pass each shipped four cargoes, while Sempra Infrastructure’s Cameron LNG terminal dispatched three LNG cargoes.
Also, the Cove Point plant sent one cargo during the week. The Elba Island LNG terminal did no ship cargoes during the week under review.
Henry Hub slightly down
This report week, the Henry Hub spot price decreased 2 cents from $2.72 per million British thermal units (MMBtu) last Wednesday to $2.70/MMBtu this Wednesday, the agency said.
The December 2023 NYMEX contract expired Tuesday at $2.706/MMBtu, down 19 cents from last Wednesday.
Moreover, the January 2024 NYMEX contract price decreased to $2.804/MMBtu, down 23 cents from last Wednesday to this Wednesday, the EIA said.
According to the agency, the price of the 12-month strip averaging January 2024 through December 2024 futures contracts declined 12 cents to $2.983/MMBtu.
TTF drops
The agency said that international natural gas futures dropped this report week.
Bloomberg Finance reported that weekly average front-month futures prices for LNG cargoes in East Asia decreased 26 cents to a weekly average of $16.57/MMBtu.
Natural gas futures for delivery at the Dutch TTF decreased 45 cents to a weekly average of $13.97/MMBtu.
In the same week last year (week ending November 30, 2022), the prices were $31.01/MMBtu in East Asia and $40.01/MMBtu at TTF, the EIA said.
https://lngprime.com/americas/us-weekly-lng-exports-reach-24-cargoes-4/99062/
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US: Cheniere to Liquefy Gas from ARC Resources under 15-Year Deal
Cheniere Energy Inc. has signed a marketing deal with ARC Resources US Corp. under which a pending Cheniere project in the US Gulf of Mexico liquefies natural gas from the United States arm of Canadian producer ARC Resources Ltd.
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ARC Resources US will supply Sabine Pass Liquefaction (SPL) Stage 5 an average of 140 billion British thermal unit a day for 15 years starting with the opening of the first train of the expansion project in Cameron Paris, Louisiana. Startup is expected in 2025, with the project pending at the Federal Energy Regulatory Commission (FERC).
“SPL Stage 5 will pay ARC Resources an LNG-linked price for its gas, based upon the Dutch Title Transfer Facility (TTF) price, after deductions for a fixed regasification fee, fixed LNG shipping costs and a fixed liquefaction fee”, a recent joint press release said.
SPL Stage 5 adds two trains to six already fully operational units, each with a capacity of about five million tons per annum (MMtpa). Trains 7 and 8 are planned to produce about 20 MMtpa.
The expansion project has been accepted for a 180-day pre-filing review by the FERC, in a decision March 30. Cheniere plans to submit a full regulatory filing after this review.
Along with the agreement with ARC Resources, Cheniere and OMV Gas Marketing and Trading GMBH simultaneously announced an agreement for the delivery of up to 0.85 MMtpa of LNG to the Netherlands.
SPL Stage 5 will from 2029 supply the OMV AG subsidiary with up to 12 LNG cargoes per year at a TTF-linked price. The LNG will be regasified at the Gate LNG Terminal, a project of Koninklijke Vopak NV and Nederlandse Gasunie NV where Austrian majority state-owned OMV holds a regasification capacity. The media release did not disclose the duration of the agreement.
“OMV has made another significant step in diversifying and safeguarding alternative non-Russian gas supply sources for its customers in the long-term”, OMV executive vice-president for energy Berislav Gaso said in a separate news release.
“This agreement will enable Cheniere to deliver increased quantities of Canadian natural gas to Europe, where energy security has never been more important”, Cheniere president and chief executive Jack Fusco said in a statement, noting the agreement for SPL Stage 5 is the second integrated production marketing (IPM) collaboration between the company and ARC Resources.
ARC Resources president and chief executive Terry Anderson said of the IPM agreement, “Through this agreement, we are advancing our LNG strategy and delivering low-cost, low-emission natural gas to consuming regions in Europe – the first long-term arrangement of its kind for a Canadian producer”.
The IPM agreement is subject to certain conditions including a final investment decision (FID) on SPL Stage 5.
Earlier Cheniere announced it has bagged the first offtake commitment for the second train of SPL Stage 5. The agreement signed with Chinese gas distributor Foran Energy Group Co. Ltd. is for the purchase of about 0.9 MMtpa of LNG for 20 years.
The price of the purchase, subject to an FID on the train project and other conditions, is to be indexed on the Henry Hub distribution center in Louisiana.
“We are pleased to build upon our existing long-term relationship with Foran, one of the fastest growing natural gas companies in China, with the signing of our second 20-year SPA [sale and purchase agreement] that secures increased LNG volumes for Foran for the long term”, Fusco said in a joint press release November 2.
“This 20-year SPA further supports China’s commitment to growing natural gas as a primary energy source and provides Foran with a flexible and reliable LNG solution for its operations”.
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Japan: NYK newbuilds to showcase VCR technology in dual-fuel LNG engines
Japanese shipowner Nippon Yusen Kabushiki Kaisha (NYK) Line will be among the first clients to take on the new variable compression ratio (VCR) technology from engine maker WinGD Back in June, WinGD revealed NYK would install WinGD’s variable compression ratio system (VCR system) on a large LNG-fuelled coal carrier under construction at Oshima Shipbuilding. The 95,000-dwt bulk carrier is being built at Oshima Shipbuilding and is scheduled to be delivered by the end of 2025.
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A second NYK ship, a 7,000-CEU pure car and truck carrier (PCTC) under construction at Shin Kurushima Dockyard Co, will also install the VCR system.
WinGD said these will be the first two-stroke-powered vessels that can dynamically optimise combustion depending on the fuel being used – delivering improved emissions, fuel economy and fuel flexibility.
VCR technology was introduced in June after more than a decade of codevelopment with Japan’s Mitsui Engineering & Shipbuilding. VCR can be adjusted for part load operation to achieve larger savings at low speeds. Running in diesel mode, WinGD said this equates to a saving of around 1,555 tonnes of CO2 a year.
The Swiss firm said the simple hydraulic system mounted on the piston crosshead represents “a breakthrough in two-stroke engine design as the first concept enabling the compression ratio to be adjusted,” resulting in what the manufacturer terms “significant greenhouse gas emissions reductions” in both diesel and gas modes (around 6% and 3% respectively).
WinGD general manager application and technical sales, Marcel Ott said, “NYK Line has long been a valued development partner, entrusting WinGD with innovative, sustainability driven projects, including recently our first system integration project. Strong partnerships make sustainable ships, and it is fitting this collaboration has now resulted in the first deployments of VCR, a technology we believe can have a huge impact on performance of our X DF LNG-fuelled engines.”
The Oshima bulker will be powered by a WinGD 6X62DF-2.1 engine while the PCTC is expected in 2026 and will feature a WinGD 7X62DF-S2.0 engine.
The PCTC vessel will mark the first deployment of WinGD’s new 62-bore short-stroke engine and will also be among the first to feature on-engine iCER – a compact version of the X-DF2.0 technology that offers further reductions in fuel consumption and emissions while ensuring Tier III NOx compliance in both gas and diesel modes.
VCR technology is currently available as an option for 62- and 72-bore X-DF engines.
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Australia: Woodside to purchase LNG from Mexico Pacific’s Saguaro Energia project
Australian energy giant Woodside has signed an agreement with Mexico Pacific, a developer of the LNG export project in Puerto Libertad, Sonora, to purchase 1.3 million tonnes per annum (mtpa) of LNG for 20 years.
Under the agreement, Woodside will purchase the LNG from the Saguaro Energia LNG project, located in Puerto Libertad, Sonora, on a free-on-board basis with pricing linked to US gas indices.
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For Woodside, this agreement is consistent with the company’s strategic objective of building global scale and flexibility in its LNG portfolio.
Woodside’s CEO Meg O’Neill said: “As we deliver on our strategy, we aim to complement Woodside’s produced LNG supply with third parties’ volumes, giving us greater scale and portfolio flexibility to serve our customers, while optimising our LNG trading activities.
“This agreement with Mexico Pacific delivers a new source of LNG into our trading portfolio, expands our geographic diversification in the Pacific Basin and builds on our presence in Mexico. Mexico Pacific’s Saguaro Energia LNG Project is located on the Pacific coast of Mexico, providing proximity to key markets in Asia.”
The LNG sale and purchase agreement is subject to Mexico Pacific taking a final investment decision (FID) on the proposed third train at the Saguaro Energia LNG project. The FID is expected in the first half of 2024 and commercial operations are targeted to commence in 2029.
“We are delighted to welcome Woodside, one of the most established global LNG market participants, as a foundation customer of Train 3, further validating the value of west coast Mexican LNG,” said Sarah Bairstow, President of Mexico Pacific. “We look forward to continuing our collaborative relationship with Woodside to bring additional supply online to address critical energy security and energy transition needs.”
The 15 mtpa Saguaro Energia LNG facility is said to be the most advanced LNG development project on the West Coast of North America. According to Mexico Pacific, it has significant cost and logistical advantages, including the lowest landed price of North American LNG into Asia, leveraging low-cost natural gas sourced from the nearby Permian Basin, and a significantly shorter shipping route that avoids Panama Canal transit for Asian markets.
The project also received support from the government of the Mexican state of Sonora. Energy majors such as Zhejiang Energy, Shell, ExxonMobil, and ConocoPhillips already signed sales and purchase agreements with Mexico Pacific to offtake LNG from the facility.
https://www.offshore-energy.biz/woodside-to-purchase-lng-from-mexico-pacifics-saguaro-energia-project/
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UK: PM witnesses sign off on new Atlantic LNG structure
THE AGREEMENT for a new unitised commercial structure of Atlantic LNG (ALNG) was officially signed on Tuesday, an announcement by the Office of the Prime Minister said on Tuesday. The statement said the Prime Minister witnessed the signing of the agreement at a commemorative ceremony in London on Tuesday.
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The agreement, the statement said, will allow the National Gas Company of TT Ltd (NGC) to get a bigger piece of the pie from revenue garnered from ALNG’s sale of natural gas on the global market.
In the new arrangement, NGC will receive a ten per cent shareholding across all four ALNG trains whereas the previous structure saw the company getting ten per cent of train one and 11 per cent of train four with no share of trains two and three.
At Tuesday’s ceremony, Dr Rowley hailed the agreement as a win for the people of TT.
“We in TT, representing the people of TT, feel confident that success will come our way, and that success will be shared more fairly with greater clarity and with greater sustainability.”
At a press conference in London, Rowley thanked stakeholders for their understanding, saying that conversations could have been more difficult without the help of the companies involved. He said their listening ears to the TT Government showed that they “had a heart…
“At every step of the way, the people involved could have said the contract doesn’t have allowed for that and we don’t want to listen to that conversation.
“They could have said, ‘We are not in breach of contract so, therefore, there is nothing to discuss.’
“But TT, represented by myself the energy minister, the permanent secretary and others, I think we made the case to you all.”
“Many of you understood what we were saying in that we don’t just want to be a tax-collecting office, we want to be a partner and shareholder in this business, particularly given what is happening in the world industry. We have to be a partner and we have to be involved.”
https://newsday.co.tt/2023/12/06/pm-witnesses-sign-off-on-new-atlantic-lng-structure/
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Nigeria: NIGERIA’S NNPC SIGNS TWO LNG DEALS FOR LOCAL, FOREIGN MARKETS
ABUJA, Dec 6 (Reuters) – Nigeria’s state oil firm NNPC Ltd said on Wednesday that it has secured two agreements to expand its liquefied natural gas (LNG) portfolio for both the domestic and international markets.
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The deals were agreed on the sidelines of the COP28 climate talks in Dubai, underlining Nigeria’s commitment to utilizing its huge natural gas resources to drive economic growth and enhance energy security, NNPC spokesperson Olufemi Soneye said in a statement
One agreement, a memorandum of understanding (MoU) with Chinese company Wison Heavy Industry Co. Ltd is focused on developing a floating LNG project in Nigeria that will target the international market. The two companies pledged to work to reach an investment decision on the accord.
The second deal is a supply, installation, and commissioning agreement with SDP Services Ltd, an oil independent, for a 421-tonne-per-day LNG project to the domestic market.
“We are looking at a timeframe of 12 months from execution to the commissioning of the project,” said Lawal Sade, head of NNPC’s trading unit.
Nigeria, Africa’s largest oil producer, also holds the continent’s largest natural gas reserves, estimated at more than 200 trillion cubic feet. It is seeking investments to boost its domestic supplies and exports.
NNPC is working with investors to boost Nigeria’s gas processing capacity and make it a key hub in West Africa in four years, CEO Mele Kyari said in October.
In July, NNPC signed an agreement with UTM Offshore to build a 1.5mn tonnes/year floating LNG plant.
(Writing by Elisha Bala-Gbogbo Editing by Alexandra Hudson)
https://www.naturalgasworld.com/nigerias-nnpc-signs-two-lng-deals-for-local-foreign-markets-108662
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LNG as a Marine Fuel/Shipping
Australia: Pilbara Clean Fuels and partners forge path to low-carbon LNG production and marine bunkering in Australia
Pilbara Clean Fuels Pty Ltd is progressing a development concept for a new, mid-scale, low carbon footprint LNG plant to be located at Port Hedland in Western Australia, the world’s largest iron ore export port. The project will provide an Australian LNG fuel supply capability through a new facility for the conversion of pipeline natural gas to LNG, responding to market demand for cleaner marine bunker fuel for dry-bulk iron ore carriers operating ‘round-trip’ voyages between the Pilbara and Asia.
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Market studies show increasing worldwide adoption of LNG as a marine fuel, with supply availability one of the key drivers. The base-case plant capacity is 0.5 million tpy, with market analysis for Port Hedland alone (not counting other major Pilbara ports) indicating potential demand of 1 million tpy by 2030.
A key feature of the project is an electrified plant with outsourced power supplied predominantly from renewable sources. The design intent is to significantly reduce Scope 1 and Scope 2 emissions compared to conventional LNG plants. Thereby providing an ability for round-trip voyages bunkering in Port Hedland to achieve substantially lower overall GHG life-cycle emissions than other options.
The LNG re-fuelling concept is based on ship-to-ship bunkering of vessels while at anchor off Port Hedland.
Oceania Marine Energy Pty Ltd is developing a LNG marine fuel bunkering service capability based on the charter, ship management and operation of purpose-designed LNG bunker vessels. The vessels are to be provided by Norwegian ship-owner Kanfer Shipping.
RINA is developing a concept for a new 200 000 DWT Newcastlemax dry-bulk ship design with an innovative LNG marine fuel system involving pre-combustion carbon removal and hydrogen production, with the objective of meeting and exceeding IMO 2050 emissions reduction marine vessel Carbon Intensity Index (CII) objectives.
The RINA fuel system concept involves the capture, onboard storage and offloading of liquefied carbon dioxide (CO2) or solid carbon at loading or discharge ports for onshore handling, monetisation or disposal. The concept provides a credible line-of-sight pathway to ‘zero emissions’ for the application of LNG as a marine fuel.
By solving the historic criticism of LNG as being only a ‘transition fuel’, rather than having a long-term future as a ‘zero emissions’ fuel, this solution is likely to be welcomed by the marine engineering community due to the extensive maritime operational experience of LNG and its known safe handling characteristics.
The Pilbara to Asia dry-bulk trade route is particularly suited for early adoption of the pre-combustion carbon removal and hydrogen production onboard concept due to proposed availability of low carbon intensity LNG bunkering at Port Hedland, along with an ability for offloading carbon dioxide or solid carbon and a variety of monetisation or disposal options.
Recognising the complementary aspects of their respective project interests and business objectives, PCF, Oceania and RINA have entered into a Memorandum of Understanding (MoU). Under the terms of the MoU, PCF, Oceania and RINA have agreed to collaborate to develop an ‘end-to-end’ low-carbon profile LNG production and marine vessel bunkering capability concept for the port of Port Hedland. Furthermore, RINA’s 209 000 DWT Newcastlemax dry-bulk vessel design and fuel system design concept provides a path to ‘zero emissions’ for the adoption of LNG as a marine fuel on a 2050 timeframe.
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Mexico: Storage vessel for Mexico’s 1st LNG plant departs U.S waters
According to ship monitoring data, a storage vessel for Mexico’s inaugural liquefied natural gas (LNG) plant left the US waters on Monday for Altamira in Mexico, putting the offshore project on schedule to begin exports soon.
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Video Credit: New Fortress Energy/YouTube
They are thrilled to share that they have secured the first gas for the Fast LNG 1 unit, an important accomplishment for the project and the world of LNG, the business said in a social media post.
The next phase in the firm’s plan is to begin exports. The Sur de Texas-Tuxpan pipeline from Texas will supply natural gas to Altamira’s first liquefaction train.
Two more trains are planned to become part of this $1.3 billion endeavour, which includes Mexico’s state-owned electricity utility CFE.
Mexico presently imports LNG and relies on the US for the majority of its natural gas requirements. The NFE project will be Mexico’s first LNG production and export facility.
On the Gulf and Pacific coasts of Mexico, nine onshore as well as floating LNG facilities will be constructed, the majority of which will process US gas.
https://www.marineinsight.com/videos/storage-vessel-for-mexicos-1st-lng-plant-departs-u-s-waters/
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Technological Development for Cleaner and Greener Environment Hydrogen & Bio-Methane
How Cop28 is setting the stage for the global hydrogen trade
The UAE will help other nations in exporting hydrogen, primarily green hydrogen, Energy Minister says A series of hydrogen initiatives were announced at the Cop28 climate conference on Tuesday, aimed at boosting the production and trade of the low-carbon fuel. More than 30 countries, representing about 80 per cent of the future global market in hydrogen, signed a declaration of intent, under which states have agreed to endorse a global certification standard for hydrogen and to recognise existing certification schemes.
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The countries also signed a public-private action statement on hydrogen, which will focus on accelerating permissions for hydrogen projects and creating more demand for the commodity.
“The biggest challenge in decarbonisation is providing [an] alternative fuel that is clean and available at scale at the right price,” Suhail Al Mazrouei, UAE Minister of Energy and Infrastructure, told delegates during a hydrogen roundtable at the summit.
“The consumer is going to be the judge of how good a work we are doing in helping to ensure that it’s affordable. If it’s not affordable, no matter what we do, it’s not going to have the success that we aspire for.”
Hydrogen, which can be produced using both renewable energy and natural gas, is expected to be a critical fuel of the future, particularly in hard-to-abate sectors such as steel manufacturing and shipping.
Its ability to efficiently store energy makes it appealing for renewable energy sources such as wind and solar, both of which are naturally intermittent.
After being produced, a certification system enables end users and governments to determine the source and quality of the hydrogen.
However, current hydrogen certification systems are not suitable for cross-border trade due to gaps in design, standards and labelling, leading to insufficient information about the product as far as potential buyers are concerned.
Hydrogen, and particularly, green hydrogen, is currently more expensive than natural gas due to lack of production and supply constraints.
Most of it is due to a shortage of electrolysers – devices that use electricity to split water into hydrogen and oxygen.
However, there is more than 400 gigawatts of electrolysis capacity that could be operational by 2030, compared with only 1 gigawatt currently, according to an International Energy Agency official.
“There is a reality check here, which is, at the moment, only 3 per cent of those have reached the stage of taking a final investment decision,” said Dan Dorner, head of Strategic Initiatives Office at the agency.
“International co-operations are therefore absolutely of paramount importance to overcome barriers that are preventing a faster adoption of low emissions hydrogen.”
French investment bank Natixis estimates investment in hydrogen will exceed $300 billion by 2030.
International Standards Organisation methodology for the greenhouse gas emissions assessment of hydrogen was also launched on Tuesday.
These guidelines could serve as the initial framework for a series of additional regulations at both national and state levels, shaping the direction of hydrogen production.
“This is a truly international methodology for assessing the GHG footprint of hydrogen from well to consumption gate including every delivery gate on a life-cycle analysis basis,” said Ulrika Francke, president of the ISO.
“It helps us to create a common international language around hydrogen and allows the least carbon-intensive solutions to shine.”
Almost one quarter of global hydrogen demand – about 150 megatonnes per year – will be met through international trade by 2050, while the remaining 75 per cent will be domestically produced and consumed, the International Renewable Energy Agency said in a report last year.
The hydrogen trade scenario will be a significant change from today’s oil market, where the bulk – nearly three quarters – is internationally traded, the Abu Dhabi-based agency said at the time.
Hydrogen deals
Energy companies have announced several hydrogen agreements during the Cop28 summit.
Abu Dhabi’s clean energy company Masdar and Spain’s Iberdrola have signed a €15 billion ($16.25 billion) partnership to evaluate the development of offshore wind and green hydrogen projects in key markets including Germany, the UK and the US.
Masdar also signed a joint development agreement with Jordan to develop a 1-gigawatt wind project with battery storage, and an agreement to explore the feasibility of establishing a green hydrogen plant.
The UAE’s state-owned energy company Adnoc and Azerbaijan signed an agreement to explore opportunities in blue hydrogen, carbon management and geothermal technologies.
The Emirates, the Arab world’s second-largest economy, aims to achieve hydrogen production of 1.4 million tonnes annually by 2031, increasing to 15 million tonnes a year by 2050.
The country is planning to develop at least two hydrogen production hubs, or oases, by 2031.
More than 70 per cent of the country’s hydrogen production will be green, Mr Al Mazrouei said.
“Hydrogen for us in the UAE is definitely one of the solutions … we will help other nations as well in exporting hydrogen, primarily green hydrogen,” he said.
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Head
National Green Hydrogen Mission expected to develop 5 MMT production capacity per annum by 2030
Accordingly, the demineralized water requirement for 5 MMT Green Hydrogen production per annum will be about 50 Million Cubic Meter (MCM) per annum. The Union Minister for New & Renewable Energy and Power has informed that the National Green Hydrogen Mission is expected to lead to development of 5 MMT Green Hydrogen production capacity per annum by 2030. Green Hydrogen has the potential to replace fossil fuels including natural gas, either as a source of energy or as a feedstock, thereby contributing to reduction in dependence on import of fossil fuels.
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The Mission envisages substitution of Grey Hydrogen with Green Hydrogen in industries such as fertilizer production, petroleum refining, steel, shipping, etc., thus reducing carbon footprint and dependence on imported fossil fuels.
The quantum of such reduction in imports is estimated at ₹ 1 lakh crore by 2030.
The specific strategies or initiatives under the Mission in this regard, inter alia, are as follows:
Facilitating demand creation through domestic utilization;
Strategic Interventions for Green Hydrogen Transition (SIGHT) programme, which includes incentives for manufacturing of electrolysers and production of green hydrogen;
Pilot Projects for green steel, mobility, shipping, decentralized energy applications, hydrogen production from biomass, hydrogen storage, etc.;
Development of Green Hydrogen Hubs;Research & Development programme, etc.
For production of 1 kg of green hydrogen via electrolysis, around 10 litres of demineralized water are needed.
Accordingly, the demineralized water requirement for 5 MMT Green Hydrogen production per annum will be about 50 Million Cubic Meter (MCM) per annum.
Majority of the Green Hydrogen production plants are expected to come up near port locations as per the industry feedback. In such cases, desalinized sea water could also be used for Green Hydrogen production.
Since water is a state subject, the project developers will have to comply with the State regulations for securing the water supply.
This information has been given by the Union Minister for New & Renewable Energy and Power Shri R. K. Singh, in a written reply to a question, in Rajya Sabha on December 5, 2023.
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