Qatar is already India’s largest LNG exporter, providing roughly half of the South Asian nation’s total purchases last year. Gail and QatarEnergy didn’t immediately respond to a request for comment.     

https://www.cnbctv18.com/market/qatar-agrees-to-supply-lng-to-gail-in-five-year-deal-19525089.htm

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Energy Development

Emphasising the need for reliable, affordable and timely energy resources for ensuring energy security and meeting the basic needs of the people, both leaders underscored the importance of strengthening cooperation in the energy sector and facilitating towards timely implementation of ongoing energy cooperation projects between India and Sri Lanka. In this regard, the leaders agreed to:

1. Take steps towards the implementation of the solar power project in Sampur and further augment its capacity as per the requirements of Sri Lanka.
2. Continue consideration of the several proposals which are in different stages of discussion including:

(a) supply of LNG from India to Sri Lanka.

(b) establishment of a high-capacity power grid interconnection between India and Sri Lanka.

(c) cooperation amongst India, Sri Lanka and UAE to implement a multi-product pipeline from India to Sri Lanka for supply of affordable and reliable energy.

(d) joint development of offshore wind power potential in Palk Straits, while prioritizing environmental protection including fauna and flora.

Acknowledging the ongoing cooperation in the development of Trincomalee Tank Farms, both leaders decided to support the development of Trincomalee as a regional energy and industrial hub.

Strategic & Defence Cooperation

Recognizing the shared security interests of India and Sri Lanka, both leaders acknowledged the importance of regular dialogue based on mutual trust and transparency and giving primacy to each other’s security concerns. As natural partners, both leaders underscored the common challenges faced by the two countries in the Indian Ocean Region and reaffirmed their commitment to work together in countering traditional and non-traditional threats as well as to ensure a free, open, safe and secure Indian Ocean Region. India is Sri Lanka’s closest maritime neighbour, President Disanayaka reiterated Sri Lanka’s stated position of not permitting its territory to be used in any manner inimical to the security of India as well as towards regional stability.

Expressing satisfaction at the ongoing defence cooperation in training, exchange programs, ship visits, bilateral exercises and assistance to augment defence capabilities, both leaders agreed to advance maritime and security collaboration.

President Disanayaka thanked India for its support through the provision of a Dornier Aircraft for maritime surveillance; and establishment of the Maritime Rescue and Coordination Centre in Sri Lanka amongst other assistance vital for Sri Lanka to enhance its maritime domain awareness. He further appreciated India’s role as a ‘first responder’ for Sri Lanka in the field of Humanitarian Assistance and Disaster Relief. Importantly, the recent success in collaboration efforts of Indian and Sri Lanka Navies in the seizing of vessels trafficking a large quantity of narcotics with suspects was mentioned and President Disanayaka expressed his gratitude to the Indian Navy.

Debt Restructuring

President Disanayaka conveyed his deep appreciation for the unwavering support extended by India to the people of Sri Lanka during and after the unprecedented economic crisis in 2022. Recalling his profound commitment to fulfilling the aspirations of the Sri Lankan people for a prosperous future, greater opportunities, and sustained economic growth, he looked forward to India’s continued support for the achievement of these objectives. Prime Minister Modi assured President Disanayaka of India’s full commitment in this regard, in keeping with the special place Sri Lanka occupies in India’s ‘Neighbourhood First’ policy and ‘SAGAR’ vision.

President Disanayaka thanked Prime Minister Modi for India’s support in stabilizing the Sri Lankan economy through unparalleled and multi-pronged assistance including emergency financing and forex support worth USD 4 billion. He acknowledged India’s crucial assistance in Sri Lanka’s debt restructuring process, including as co-chair of the Official Creditors’ Committee (OCC), as being instrumental in finalising the debt restructuring discussions in a timely manner. He further thanked the Government of India for extending financial assistance of USD 20.66 mn to settle payments due from Sri Lanka for projects completed under existing Lines of Credit thereby significantly reducing the debt burden at a critical time. Underscoring the close and special ties with Sri Lanka, Prime Minister Modi reiterated India’s consistent support to the country in times of need and in its quest for economic recovery and stability, and prosperity for its people. The leaders instructed officials to finalize discussions on the bilateral MoU on Debt Restructuring.

Both leaders agreed that a strategic shift from debt-driven models towards investment-led partnerships across different sectors would ensure a more sustainable path to economic recovery, development and prosperity in Sri Lanka.

https://www.indiatvnews.com/news/world/india-plans-to-supply-lng-to-sri-lanka-link-power-grids-during-anura-kumara-dissanayake-new-delhi-visit-key-highlights-2024-12-16-966496

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 The station has a single dispensing unit connected by insulated pipes to a 56-kilolitre cylindrical, cryogenic LNG storage tank standing on its head. The entire process takes 20 minutes, more than what it would take to refuel a diesel vehicle. One of the dispensing pipes is used to reduce pressure in the truck’s tank and the other releases the liquefied fuel.

  Vehicles in India will now roll on four kinds of fuels — petrol/diesel, pressured natural gas or CNG, biofuels like ethanol derived from grains or waste, and the latest where natural gas is chilled to a liquid at -161 degree centigrade. LNG in transport is a $29 billion market opportunity if it completely displaces diesel, industry officials say.

 It has been 17 months since Indian Oil’s Sriperumbudur outlet began operations but it receives no more than 20 trucks a day, for sales of around 80 tonnes of LNG a month, an industry official says. That is insufficient to cover the expenses for a station that takes several months to build and costs Rs 5-Rs 8.5 crore, excluding land — several-fold pricier than a typical petrol pump.

 Indian Oil saw worse when the outlet started in mid-2023. There were no customers for weeks before two or three retrofits came calling. The action began in December, after Blue Energy Motors, an Essar affiliate, sold 40 trucks to state-run container company Concor, which then awarded a bid to Indian Oil for refueling. 

 Fuel economics

 The economics of the fuel are alluring. At current levels, LNG, at Rs 78.84 a Kg, costs less than half of diesel. “If per kg of LNG is at Rs 84 and it gives 3.2 km per kg, the running cost is Rs 26.25 per km. For diesel, at Rs 92 per kg, the operating expense is Rs 35.38 per km,’’ said Maqsood Shaikh, CEO of Ultra Gas & Energy, an Essar company.

 Of course, that is assuming you run the trucks for more than 20 hours a day to contain boiloffs — a technical limitation of the fuel where gas gradually escapes from LNG lying stored and unutilized in tanks — an industry official says. But, emissions are lower, the cabin is air conditioned, and pilferage of the fuel, common to diesel vehicles, is impossible.

 For long-distance trucking, LNG is cheaper, the mileage is higher, emissions are 30 per cent lower, and it improves energy security through lower oil imports. “The future of LNG is retail LNG,’’ said Yiyong He, founder at LNG Easy, in a Linkedin post. “Go to China to see LNG regas and refueling stations.” The current liquid-to-gas model is something that Europe and Japan did in the past.

 But LNG fuel sales are negligible in India because of the scarcity of trucks running on this fuel. There are only 24 pumps today across the country (compared to 93,115 petrol and diesel pumps and 6,373 CNG outlets) catering to around 650 trucks, concentrated on certain routes. Both state and private players, including Ultra Gas, Indian Oil, Petronet LNG, Hindustan Petroleum, Bharat Petroleum, and Baidyanath LNG plan to add 73 outlets in the next few years, according to an industry document. At least 17 are ready to start once the authorities give the green signal. 

 Indian Oil has seven stations operational across the country, with another 13 likely to start in 2025 once the vehicle fleet improves. In addition, it is developing 50 stations in the golden quadrilateral and north-south highways — one every 300 km, a company official says. Supplies to these retail outlets, in case of Chennai, come from Indian Oil’s Ennore LNG import terminal from, where they are despatched in 14-17.5-tonne cryogenic containers loaded on trucks.

 India imports nearly half of its gas needs in the form of LNG. “The government can support LNG trucking by increasing the number of LNG refuelling stations, providing subsidies and tax breaks,’’ said Darshan Ghodawat, CEO, AVA Global Logistics. “Speedy clearances will encourage use of LNG in heavy vehicles industry.’’  

 Private players complain of 40 levels of approvals in districts, with most states oblivious to Petroleum & Explosives Safety Organisation’s (PESO) regulations governing LNG in transport. The trucks are expensive because they require specialised tanks and technology, which could be a turn-off for fleet operators and refuelling stations are too few to be practical, Ghodawat said.

 LNG ecosystem

 The scarcity of fuel stations is reflected in New Delhi-based think tank Teri’s prognosis that LNG use in transportation in India is a slow burn. Volumes are projected at just 0.4 million tonnes by 2030-31, from virtually nil now, but could rise to 7.4 million tonnes within two decades, around a quarter of today’s total LNG imports. Combining CNG and LNG, India will need around 10 million tonnes of LNG alone for use in transportation in a decade, and more than 50 million tonnes by 2050. India’s overall LNG imports in the current fiscal year, ending March 2025, may be around 27 million tonnes, industry officials say.

Ultra Gas is creating an ecosystem. Blue Energy, an Essar associate company, supplies trucks to Greenline Logistics, also an Essar outfit, which deploys these trucks for customers and refuels them at Ultra outlets. Where there is no Ultra Gas outlet, Shaikh enables refuelling at outlets run by rivals. 

 Greenline, which signed up Flipkart as a customer this month, is deploying 25 LNG-powered trucks, each equipped with 46 feet containers. Captive customers have helped offer predictability to Ultra Gas’s revenue stream.

 Ultra currently operates two outlets but “we are almost ready with around six stations, aiming to close the fiscal with 10, and scale it up to 100 by December 2027,” said Shaikh, who was earlier with Gujarat Gas. An Ultra outlet in Chennai, located near Indian Oil’s outlet, serves 180-200 trucks a month. The fuel costs Rs 84 a kg, higher than Rs 78 a kg that Indian Oil charges at its outlet. Also, private sector outlets cost more than Rs 8 crore to build, much more than what an Indian Oil spends.

 Besides high capital costs, boiloff is one of the key reasons why an LNG retail outlet or a truck must be utilised to the maximum. Unlike other liquid fuels, LNG stored in a tank will escape in gaseous form at 1-3 per cent a day. Fewer the trucks visiting the outlet, the more Indian Oil or Ultra loses in boiloff. If an LNG-fired truck is left standing for lack of business, boiloff will empty the entire tank in a few weeks.

 The refiner uses some of the boiloff to operate a gas-fired generator at its pump, but the cost of this power is more than that of utility-supplied electricity. To minimise losses, outlets must sell at least 7 to 8 tonnes of LNG a day, enabling a refill of their storage every three days.

 “Between seven and 30 days, there is an exponential rise,’’ Shaikh said. “If the boiloff problem is not solved through a regulatory mechanism, it will be very difficult for stations to come up.”

 The simple method is to compress the boiloff (methane gas) and sell it as CNG, eliminating the damage to the environment from methane emissions. But regulation bars selling of the CNG to a third party. PNGRB gave a mandate of licensing through selling of natural gas through pipeline, but people have expanded that to the level that even without a pipeline, nobody can sell gas in their area, an industry source says.

 Big logistics players such as Amazon, Delhivery, and Flipkart must adopt LNG-fired trucks for the sector to grow, says Raunak Modi, ratings agency CareEdge’s logistics analyst.

A pickup may be possible after big logistics and ecommerce players started embracing the fuel. Delhivery has deployed Volvo trucks, which cost twice as much as Indian-made ones and run on both diesel and LNG. Blue Energy, the biggest supplier of LNG trucks with more than 500 units, supplied Concor. Greenline Logistics signed up Flipkart and Tata Motors and has released around 100 trucks in the market, industry officials say. Ashok Leyland is another potential manufacturer. But a key obstacle looms in the lack of cryogenic fuel tanks, largely supplied by INOX India, and a few by Cryogas India.

https://www.business-standard.com/industry/news/high-costs-boiloff-issues-challenge-india-s-lng-trucking-expansion-124121701421_1.html

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Swan Energy will hold a 51% stake in the JV and AG&P LNG the remaining. AG&P LNG will also collaborate on Swan Energy’s LNG regasification terminal and will also have an option to take equity stake, the companies said.

The companies will also form another JV for a floating storage and regasification unit (FSRU) and a floating storage unit to operate Swan Energy’s LNG terminal. AG&P LNG will hold 51% stake in this JV with Swan holding the rest.

FSRU is a vessel that helps in transferring LNG through oceanic channels. The natural gas that is transported through the sea in liquid form needs to be reconverted into the original gaseous state before being pumped out into the storage tanks, and the FSRU helps in this process.

“Deal is subject to due diligence by both the parties, and terms will be finalized later,” Swan Energy said in a regulatory filing.

Swan Energy’s scrip was trading at Rs 761.90, up 0.19% on the BSE, Friday afternoon.

https://economictimes.indiatimes.com/industry/energy/oil-gas/swan-energy-singapores-agp-plan-jv-for-lng-operations/articleshow/116496946.cms?from=mdr

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This vessel, measuring 268 meters in length and 43 meters in beam, is the third in a series of LNG-powered ships with a capacity of 7,000 containers. Operating on the CIMEX2K/AS-1 service, it connects the Indian subcontinent with China, further enhancing global trade routes.

APSEZ said, “The ship’s seamless berthing at Mundra Port underscores Adani Ports’ commitment to innovation, sustainability, and operational excellence.”

Adani’s, Mundra port is India’s largest port and a flagship of APSEZ, and is equipped with state-of-the-art infrastructure to handle vessels of up to 21 meters in depth, supported by robust connectivity through highways, rail corridors, and the Dedicated Freight Corridor (DFC).

The adoption of LNG as a fuel source reflects the shipping industry’s ongoing commitment to reducing carbon emissions. LNG-powered ships offer a cleaner, greener alternative to traditional marine fuels, contributing to the global transition towards sustainable maritime practices.

Mundra Port has previously hosted some of the largest container ships to dock in India, including MSC Anna and APL Raffles, further establishing itself as a leading container hub in South Asia.

The Group added that the historic arrival is a testament to Adani Ports’ pioneering role in advancing sustainable practices and modernizing logistics infrastructure to meet the evolving demands of global trade.

Adani Ports and Special Economic Zone Limited (APSEZ) is the largest commercial ports operator in India accounting for nearly one-fourth of the cargo movement in the country. It has presence across 13 domestic ports in seven maritime states of Gujarat, Maharashtra, Goa, Kerala, Andhra Pradesh, Tamil Nadu and Odisha.

According to APSEZ, the port facilities are equipped with the latest cargo-handling infrastructure which is not only best-in-class, but also capable of handling the largest vessels calling at Indian shores. The ports are equipped to handle diverse cargos, from dry cargo, liquid cargo, crude to containers.

Through its subsidiary Adani Logistics Ltd., APSEZ also operates three logistics parks located at Patli in Haryana, Kila-Raipur in Punjab and Kishangarh in Rajasthan.

https://infra.economictimes.indiatimes.com/amp/news/ports-shipping/adanis-mundra-port-welcomes-its-first-ever-lng-powered-vessel/116678120

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“On the basis of the duly substantiated written application submitted by the domestic industry and having reached satisfaction based on the prima facie evidence submitted by domestic industry about dumping of subject goods, the Authority, hereby, initiates an anti-dumping investigation,” the DGTR said in a notification.

https://www.bizzbuzz.news/industry/energy/india-probing-into-chinese-lng-fuel-tanks-imports-1346844

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TKIL Industries Pvt Ltd is in discussions with oil refining companies and steel manufacturers to set up green hydrogen producing units using solar energy at their premises and help them reduce greenhouse gas emissions.

“We have approached oil marketing companies (OMCs) and steel companies and most of them want to do a pilot first… once there is enough demand, we have kept funds of ₹1,500 crore to ₹2,000 crore for expansion,” Vivek Bhatia, managing director and CEO of TKIL Industries, told Mint. “100 MW is up for taking… and if someone comes with a 200-MW project, we will not say no to them.”

The company, formerly known as thyssenkrupp Industries India Pvt Ltd, is targeting 100 MW of electrolyser capacity by 2025 and plans to scale it up to meet demand. Electrolysers split water into hydrogen and oxygen and are a critical technology for producing low-emission hydrogen from renewable or nuclear electricity. A 10 MW electrolyser can produce 200 kg of hydrogen in an hour if it takes 50 kWh of energy to produce 1 kg of hydrogen.

Bhatia said OMCs can set up the hydrogen-producing units at their existing retail fuel outlets and that will address the issue of availability of hydrogen as the country prepares for wider usage of hydrogen-powered vehicles.

TKIL acquired a minority stake in SoHHytec Ltd, a company based in Lausanne, Switzerland, which has a patent-protected technology to harness solar energy to general renewable fuel and energy. SoHHytec has global orders for green hydrogen projects worth $1.5 billion.

“In the pipeline, we have projects in Spain, France, and parts of Italy,” said Saurabh Tembhurne, CEO and founder of SoHHytec. “Another big chunk of projects is also coming up in the US.”

Hydrogen mission

The global pipeline for the next three years is already quite full, he added. In India, the company is in talks with chemical, fertiliser and power producers for green hydrogen projects. TKIL will be the exclusive partner in India for SoHHytec to manufacture and supply equipment and machinery as well as implement and install green hydrogen projects.

India aims to achieve energy independence by 2047 and net-zero carbon dioxide emissions by 2070. To realise these goals, the country launched the National Green Hydrogen Mission, under which green hydrogen production capacity of at least 5 million metric tonnes per year and 60-100 gigawatts of electrolyser capacity will be established. The government has initiated pilot projects focusing on the use of green hydrogen in shipping, long-haul mobility, and the steel industry.

“Given the government’s National Hydrogen Mission that was announced last year, this particular portion of business is starting to grow in India, where a number of companies are looking to make investments to produce green hydrogen,” said Gaurav Moda, partner and energy sector leader at EY-Parthenon India.

Moda explained that green energy can be used in sectors such as iron and steel, metals, and oil and gas, where it is difficult to reduce emissions directly. These sectors use hydrogen for their own consumption, which can be replaced by green hydrogen.

An additional benefit is that green hydrogen can be converted into other chemicals that can be supplied to the global markets, Moda said.

The Adani group plans to spend $9 billion to build manufacturing and transportation infrastructure for the first phase of its ambitious venture to produce the world’s cheapest green hydrogen. The plan includes a $5 billion investment in manufacturing and operating electrolyzers,Mint reported earlier. Adani’s potential rivals in green hydrogen include Larsen & Toubro Ltd, Indian Oil Corp. Ltd, Acme Group and Oil India Ltd.

https://qrius.com/tkil-in-talks-with-omcs-steel-companies-to-set-up-green-hydrogen-projects-at-their-sites/#:~:text=TKIL%20Industries%20Pvt%20Ltd%20is,them%20reduce%20greenhouse%20gas%20emissions.

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Devdiscourse News Desk | New Delhi | Updated: 22-12-2024 10:34 IST | Created: 22-12-2024 10:34 IST

India and Sweden are poised to enhance their collaboration in green technology, aiming to tackle global climate challenges by leveraging sustainable industrial practices and renewable energy solutions, according to Swedish officials.

The Embassy of Sweden and Business Sweden, in a dialogue with PTI, highlighted the shared potential for innovation and extensive application of sustainable practices.

Christian Kamill, Deputy Head of Mission at the Embassy of Sweden, pointed to promising fields like green hydrogen, carbon capture, and circular economy practices for partnership.

https://www.devdiscourse.com/article/science-environment/3203527-india-and-swedens-green-tech-collaboration-a-sustainable-future

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Green hydrogen has been a buzzword in the country for the past couple of years, but it seems much of it is still on paper. How do you view its progress?

The economics of green hydrogen are quite daunting. Currently, the cost of production, even in the best-case scenario, is not expected to drop below $4 per kg in the near future, making it unviable at that price. This is a fundamental challenge in terms of both the process and economics. Green hydrogen is produced via electrolysis using renewable energy, and when you factor in the cost of the electrolyser, renewable intermittency, and other factors, the price globally ranges from $4 to $7 per kg. This creates a significant gap in the cost of hydrogen production.

What opportunities do you see in India’s industrial decarbonisation space?

CO2 emissions in any country, including India, are not solely from electricity generation. Only 25-30% come from coal, gas, or other sources of power. Around 70% of emissions stem from non-electric sectors, with 35-40% originating from industrial activities like steel, plastics, cement, and fertilisers. Abating this CO2 is crucial, and renewables alone won’t suffice. Carbon capture systems are a key solution, as demonstrated in several countries. This presents a significant opportunity to reduce industrial CO2 emissions in India, especially given the country’s growing manufacturing sector and economy. As industrial emissions rise, carbon capture offers a vital tool for addressing this challenge.

Who have you worked with for industrial decarbonisation?

We work with the government, having collaborated with NITI Aayog to develop the policy framework for carbon capture systems. This framework has laid the foundation for the carbon capture mission, which is now being implemented. We are also working with companies like Indian Oil Corporation and BPCL to explore carbon abatement using carbon capture systems, as well as converting their waste into useful, clean products like hydrogen.

Apart from industrial decarbonisation, what new segments do you anticipate emerging?

Industrial decarbonisation will remain a key focus. We aim to capture CO2 and convert it into valuable products or store it securely. The second growth area is renewable energy integration, where the challenge is ensuring India’s electricity grid incorporates renewables while maintaining affordability and reliability. We are working on solutions to make renewable energy cost-effective and dependable. The third transformative area is the clean utilization of fossil resources, especially coal. Coal gasification is emerging as a significant opportunity, enabling the creation of high-value chemicals like hydrogen and methanol, while using carbon capture systems to mitigate emissions.

The government has set a target of net zero by 2070. How does your business strategy align with India’s larger goal?

India currently emits 2.5 billion tonne of CO2 annually, with projections of 4 billion tonne in the next five to seven years. Of this, 600 million to 1 billion tonne come from industrial emissions. Our strategy aims to address and abate at least 600 million to 1 billion tonne of CO2 through the technologies and solutions we offer to various clients. From this perspective, we see a significant contribution to India’s net-zero goal by helping achieve emissions abatement over time.

Can you quantify the revenues you are targeting for FY25 and the growth you anticipate over the next three years?

A significant portion of our revenues currently comes from the United States. However, we anticipate a 25-30% CAGR growth in India going forward, or potentially more, depending on the situation. Our baseline revenue goal for FY25 is $25-30 million.

https://www.financialexpress.com/business/industry-economics-of-green-hydrogen-is-very-daunting-3700042/

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This initiative aligns with the NRC’s commitment to promoting cleaner, cost-effective, and eco-friendly rail transport solutions.

The Acting Managing Director, Engr. Ben Iloanusi, made this announcement during a visit by the California State Transport Agency delegation, to the Minister of Transportation, Saidu Alkali, in Abuja on Friday, 13th December 2024.

This was detailed in a statement published on the Ministry of Transportation’s official website on Saturday, signed by Olujimi Oyetomi, Director, Press & PR.

The statement noted that NRC’s retrofitting programme has enabled locomotive engines to operate using an LNG-Diesel admixture, reducing diesel consumption by up to 75% while successfully covering a distance of about 200 kilometres between Abuja and Kaduna.

“The Acting Managing Director of Nigeria Railway Corporation (NRC), Engr. Ben Iloanusi, stated that the NRC has achieved the retrofitting of some of its locomotives and test run these on the Abuja-Kaduna rail corridor; the Corporation seeks to introduce this admixture of diesel-Liquefied Natural Gas (LNG) technology across existing rail corridors,” the statement read in part.

Referring to the LNG-Diesel locomotive technology, he said it is not only clean and environmentally friendly but also cost-efficient. The NRC, he added, is open to partnerships and collaboration for the full-fledged deployment of this technology nationwide.

More insight

The statement provided further insight into the visit of the California State Transport Agency delegation to the Ministry of Transportation.

The Minister has committed to setting up a technical committee to explore collaboration with the California State Transport Agency on transportation development, climate change, and best practices.

The delegation, piloted by the Chairperson of the Nigeria Diaspora Commission, Hon. Abike Dabiri, and led by Tokunbo Odusakin, California’s Secretary of Transportation, included Giles F. Giovinazzi, Senior Adviser on Transportation; and Prof. Aditya Ramji, Director of Global South Clean Transportation Centre at the University of California, Davis. Senior officials from the Ministry of Transportation and heads of key agencies also attended.

The visit highlighted opportunities for partnerships to support projects such as the NRC’s retrofitting programme, transitioning from diesel to LNG, and adopting clean energy alternatives like hybrid and CNG buses. Tokunbo Odusakin acknowledged Nigeria’s potential in sustainable transportation and proposed further meetings to plan the California Climate and Trade Delegation Summit in 2025.

Stakeholders also emphasized capacity development. Prof. Umar Adam Katsayal, Vice Chancellor of the Federal University of Transportation, Daura, proposed exchange programmes with the University of California, Davis, to bridge skill gaps in Nigeria’s transport sector.

Dr. Farah Bayero, Director General of the National Institute of Transport Technology (NITT), stressed the need to advance expertise in e-vehicle technology and scale clean energy initiatives nationwide.

What you should know 

In March 2024, the Federal Government unveiled plans to transition the Nigerian Railway Corporation’s (NRC) locomotives to cost-effective LNG-CNG fuel, following a proposal from De-Sadel Consortium. The proposal included retrofitting NRC locomotives with LNG-CNG kits at no cost to the government and a commitment to replace any damaged locomotives.

By September 2024, the Federal Government received a retrofitted NRC locomotive equipped with a dual-fuel system comprising 70% Liquefied Natural Gas (LNG) and 30% diesel, under a Public-Private Partnership with De-Sadel Consortium. This initiative will see all NRC locomotives retrofitted to operate on a dual-fuel system, with LNG as the primary fuel and diesel as a secondary source.

According to the Minister of Transportation, this retrofitting program is part of a broader strategy to unbundle and modernize the Nigerian Railway Corporation.

https://nairametrics.com/2024/12/15/nigeria-railway-corporation-to-expand-lng-diesel-locomotive-technology-beyond-abuja-kaduna-corridor/

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The appointment of Mr. Cooper, who is currently LNG Canada’s senior vice-president for Phase 1 pipeline and expansion, was announced Monday and will take effect on April 1. He joined the joint venture in 2021.

“I’m pleased to continue the journey with all those involved in and around the LNG Canada investment,” Mr. Cooper said in a statement.

LNG Canada began building its $18-billion terminal in 2018 and is aiming to start exporting the fuel on ocean-bound vessels by mid-2025.

The terminal is being constructed on a Kitimat industrial site on the traditional territory of the Haisla Nation.

Mr. Cooper will become the fourth LNG Canada CEO to be appointed with experience at Shell.

Andy Calitz served as the project’s CEO for the first five years, including a period when LNG Canada applied for and obtained approvals from environmental regulators.

Peter Zebedee took over as CEO for nearly three years and Mr. Klein has been in the top job since April, 2022. “It’s an experience I’ll always cherish,” Mr. Klein, who will be returning to Shell in Houston, said in a statement.

London-based Shell is the largest partner in LNG Canada, with a 40-per-cent stake. The other partners are Malaysia’s state-owned Petronas (25 per cent), PetroChina (15 per cent), Japan’s Mitsubishi Corp. (15 per cent) and South Korea’s Kogas (5 per cent).

LNG Canada’s co-owners are considering whether to press ahead with Phase 2 expansion plans that would double export capacity of natural gas in liquid form.

The total cost of building the entire project has been pegged at $48.3-billion, including the $18-billion Kitimat terminal, the $14.5-billion Coastal GasLink pipeline and other infrastructure, as well as annual budgets for drilling in the North Montney region of northeastern B.C.

Other LNG projects that remain active in British Columbia include Woodfibre LNG, Cedar LNG, Ksi Lisims LNG and Tilbury LNG.

Industry analysts say Canada remains far behind the United States in developing LNG export terminals. The first LNG export facility in the lower 48 states began operating in 2016 and another seven U.S. sites have opened since then.

Venture Global LNG Inc.’s Plaquemines LNG, located south of New Orleans, started production last week to become the eighth LNG export terminal in operation in the U.S.

Climate activists say the world needs to focus on renewable energy, not on fossil fuels such as LNG.

“LNG has gained increased attention since the Russian invasion of Ukraine in 2022,” Reclaim Finance, an environmental group that advocates for decarbonization of the financial industry, said in a recent report. “LNG export and import terminals have multiplied.”

https://www.theglobeandmail.com/business/article-lng-canada-names-new-ceo-as-project-nears-completion/

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He specified the FSRU’s first stop will be Singapore.

“It is a positive development that it has departed. This is one of the three legs concerning Vasiliko terminal, there are two others and all the steps are in progress so that it can be completed as soon as possible and can be utilized, for the benefit of the people of Cyprus.”

The FSRU departed from Shanghai, China in the early hours of Saturday morning local time. Energy Minister George Papanastasiou described it as a “crucial and decisive step” for Cyprus’ energy ambitions and goal to offer cheap energy to consumers.

Christodoulides said natural gas is one of the three pillars of Cyprus’ energy strategy and the sooner we can utilize it, the better it will be for the benefit of the Cypriot people.

The first stop of ‘Prometheus’ is Singapore, and “we are in discussions with a specific state, so that it can carry out the relevant checks on the readiness of the ship and whatever else needs to be done.”

He added that then, it can sail to Cyprus and be utilized as soon as the other two steps concerning the land projects are ready. 

“So, right now we see where it will end up, we are close to an agreement, I don’t want to mention the country before we are in the final stage, and from there on to see how it will be utilized until the infrastructure is ready in Cyprus for us to utilize it, where it will be rented.”

Papanastasiou previously said the infrastructure at Vasiliko to utilise the FSRU is expected to be ready at the end of 2025.

https://cyprus-mail.com/2024/12/15/positive-developments-over-lng-unit-prometheus-christodoulides

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Larry has never built a pipeline and offers no other ideas about how Alaskans will stay warm without natural gas, so I offer here “Larry Persily’s Top Five Ways to Stay Warm Without Heat”: 1) Burn your furniture; 2) Shiver; 3) Snuggle with a moose; 4) Put your sweaters on. All of them; 5) Follow the rest of Alaskans South. The last one to leave won’t even need to turn out the lights because those won’t work without natural gas either.

Alaska LNG is expensive because it is a big project, but it works because it is a big project. The large amounts of gas Asian customers purchase to satisfy growing LNG demand will ultimately pay for the pipeline and lower the cost for the relatively small amounts of energy we consume here in Alaska.

— Jim Plaquet

https://www.adn.com/opinions/letters/2024/12/14/letter-alaska-lng-project-is-expensive-because-its-big-and-it-will-work/

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After several months of stocking up on cheaper LNG supply, Chinese natural gas inventories are now estimated to be high enough to allow importers to retreat from spot LNG cargo purchases at the higher prices.

The slowdown in China’s LNG imports in recent weeks could free up more spot supply for Europe, which is depleting its gas inventories at the fastest pace in eight years amid cold snaps, low wind speeds, and concerns about supply security with the imminent expiry of the deal for transiting Russian pipeline gas to Europe via Ukraine.

Over the past month, China’s LNG imports have slowed and have been trending 12% below the 2020-2023 four-year average for this time of year, vessel-tracking data compiled by Bloomberg showed this week.

That’s a marked slowdown from the imports for most of the year, which have been higher than average and higher than in 2023.

Rising spot LNG prices in Asia have been key to the lower imports in China over the past month.

In recent weeks, the average LNG price for January delivery into northeast Asia has hit $15.00 per million British thermal units (MMBtu)—the highest level so far this year.

As China appears to be well-stocked on gas, it hasn’t been too keen to import LNG at these high prices.

China has ramped up its total gas imports so far this year and has built a high level of stockpiled gas as it looked to avoid a supply crunch when global markets tighten this winter.

But in November, China’s total natural gas imports – including pipeline gas and LNG – inched down by 1.4% compared to the same month of 2023, according to official data from the Chinese General Administration of Customs.

Price trends shaped Chinese oil and gas import levels last month. While China’s crude oil imports rebounded in November amid lower prices and a government mandate for additional crude stockpiling, the highest spot LNG prices in Asia for 2024 led to a decline in overall natural gas imports.

Spot LNG prices in Asia have now jumped by about 30% since the beginning of the year.

In a sign that China may be well supplied with LNG for the winter, some Chinese LNG buyers have offered or already resold some cargoes in recent weeks. CNOOC Ltd is offering to sell an LNG cargo from Australia for February, while another Chinese state-owned giant, PetroChina, has sold several shipments over the past month, traders have told Bloomberg.

If Chinese buyers continue to back out from the spot market due to high LNG prices, this would be good news for Europe, which is scrambling for security of supply.

European benchmark natural gas prices hit a one-year high last month amid cold snaps combined with very low wind speeds in most of northwestern Europe.

In recent weeks, Europe has been depleting its natural gas stocks at the fastest pace since 2016 as demand has increased with the colder temperatures.

The European market is anxious ahead of the looming end of Russian pipeline gas supply to Europe via Ukraine after December 31. Recent competition for spot LNG supply with Asia for winter demand has also played a role in spiking European natural gas and power prices.

But China, the biggest LNG buyer in Asia, and in the world, could inadvertently help alleviate concerns in Europe about supply and rising prices, if the high spot Asian prices continue to deter Chinese LNG buyers.

https://oilprice.com/Energy/Natural-Gas/Lower-Chinese-LNG-Imports-Could-Ease-Europes-Energy-Woes.html

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A sharp drop in Rotterdam’s LNG price in the past week has flipped it to a $20/mt discount to B24-VLSFO HBE, after having been at a $76/mt premium a week earlier.

Similarly, LNG’s premium over LSMGO in Rotterdam has narrowed significantly, dropping by $104/mt in a week to just $8/mt.

In Singapore, LNG remains at a $30/mt premium over its B24-VLSFO UCOME blend.

The port recorded a decline in both bio-bunker and LNG sales in November. Bio-blended bunker sales fell by 21% to 115,000 mt, down from the October peak of 145,000 mt. LNG bunker sales have seen an even steeper drop, plunging 46% lower to 28,000 mt.

VLSFO

Rotterdam’s VLSFO price has increased by $15/mt in the past week.

Availability of the grade remains stable in Rotterdam. However, independently held fuel oil stocks in the wider ARA region fell by 2% in November compared to October, according to Insights Global data.

Singapore’s VLSFO price has dropped by $7/mt over the past week, driven by a slight improvement in the grade’s availability at the port. Suppliers now suggest lead times of around seven days, down from 10 days the previous week.

Biofuels

The VLSFO-equivalent price of B24-VLSFO in Rotterdam has gained by $10/mt in the past week.

Dutch rebates for biofuel have dropped sharply in recent weeks. The theoretical rebate for B30-VLSFO HBE blends sold in Dutch ports is now at $120/mt, compared to $143/mt a week ago and a significant decline from the record high of $220/mt noted last month.

Meanwhile, Singapore’s B24-VLSFO UCOME price has remained unchanged in the past week.

Spot biofuel demand continues to be low in Singapore. One supplier can deliver B24-VLSFO with lead times of up to 10 days. Suppliers in Singapore sold about 115,000 mt of bio-blended bunkers in November, down from 145,000 mt sold in October.  

LNG

Rotterdam’s LNG bunker price has plummeted by $85/mt in the past week.

This has tracked a 12% drop in the underlying Dutch TTF Natural Gas contract amid forecasts of milder weather. These forecasts have eased concerns about Europe’s heating season, reducing any near-term demand pressure on LNG.

Singapore’s LNG bunker price has dropped by a smaller $13/mt in the past week, largely tracking a decline in the NYMEX Japan/Korea Marker (JKM) contract.

LNG bunker delivery costs in Singapore are estimated to have gone down by $13/mt on the week, to $104/mt. This seems to have added some downward pressure on the price.

By Konica Bhatt, Nithin Chandran and Debarati Bhattacharjee

https://www.manifoldtimes.com/news/engine-on-fuel-switch-snapshot-lng-premiums-narrow-in-rotterdam/

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The LNG carrier Bilbao Knutsen, built in 2004 for and operated by the Knutsen Group, will play a pivotal role in this project. A turbine engine vessel capable of transporting 138,000 m3 of LNG, the ship will be converted into a floating storage unit (FSU) by HD Hyundai Marine Solution.

Once operational, the FSU will serve as the backbone of LNG storage at a new terminal under construction in Puerto Cortes on Honduras’ Caribbean coast. The project represents a step towards diversifying the nation’s energy mix and reducing its reliance on traditional fossil fuels.

Genesis Energías noted the initiative aims to lower production costs and stimulate industrial growth, with natural gas seen as a bridge fuel in Honduras’ energy transition.

The stored LNG will be transported to the Brassavola Thermal Power Plant, a 240-MW combined-cycle facility that is expected to supply reliable electricity to the national grid while significantly improving efficiency and reducing emissions.

Law firm Watson Farley & Williams advised Genesis Energías on the chartering arrangements for Bilbao Knutsen. The law firm’s London maritime team, led by partner Joe McGladdery, noted the innovative nature of the transaction and its contribution to advancing cleaner energy solutions in the region.

https://www.rivieramm.com/news-content-hub/honduras-turns-to-lng-to-meet-energy-needs-83307

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https://gastopowerjournal.com/markets/item/14974-german-utility-enbw-secures-0-8-bcm-of-lng-from-abu-dhabi

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One hundred LNG cargoes were delivered by Axpo to Europe between January 2020 and September 2024, with the bulk going to terminals in Spain, France, Italy, and Portugal. The total volume of LNG amounted to 76.07 TWh, enough to provide power to the equivalent of around 4.7 million homes in a year.

During the 2023/24 financial year alone, Axpo imported 25 LNG cargoes into Europe, equivalent to 16.2 TWh, representing the annual gas consumption of one million European homes.

Axpo’s Head of Trading & Sales Domenico de Luca, said: “Axpo’s natural gas and LNG activities have continued to thrive over the past years and play an important role in providing a secure energy supply to our customers. Gas is a key bridging fuel, providing the diversification needed during the energy transition as renewable energy technologies gain scale.”

Axpo is active across the midstream and downstream natural gas and LNG sector in Switzerland and abroad. For nearly 20 years, the company has actively traded and transported gas across Europe. For more than a decade, these activities also included LNG. Customers range from small and medium-sized enterprises (SMEs) to large energy-intensive industrial companies.

Axpo’s LNG unit has extensive experience supplying LNG to industrial clients. The company is currently expanding its LNG operations into bunkering, chartering small scale vessels for this purpose. LNG bunkering allows the ship-to-ship and ship-to-truck transfer of LNG and represents an efficient and cost-effective solution for reducing greenhouse gas emissions, especially in the shipping industry. Bunkering is an increasingly important growth area for Axpo as LNG offers a cleaner and more competitive alternative to fuels traditionally used in the maritime sector.

https://www.lngindustry.com/liquid-natural-gas/18122024/axpo-celebrates-100-lng-cargoes-to-europe/

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The supply of the vessel’s cargo handling and fuel gas supply systems, including the boil-off gas management, integrated fuel supply, custody transfer and bunkering transfer systems, has been contracted to Wärtsilä Gas Solutions.

“LNG is today an important marine fuel and is rapidly becoming the preferred choice for owners and operators seeking more sustainable fuel options. The market for LNG bunkering vessels is increasing in line with this trend,” commented Wärtsilä Gas Solutions, China sales manager Richie Zhu.

The maritime industry is increasingly adopting LNG as a transitional fuel in its decarbonisation efforts.

At the LNG Shipping & Terminals Conference in November 2024, delegates were told the shift is driving demand for LNG bunkering infrastructure, with projections indicating that LNG as a marine fuel demand could more than double by 2027, reaching up to 12M tonnes annually.

To meet this growing demand, an estimated eight additional LNG bunkering vessels will be required each year.

Vitol’s investment in LNG bunkering vessels aligns with this industry trend, aiming to provide shipowners with more sustainable fuel options. The company’s commitment to expanding its LNG infrastructure reflects the broader maritime sector’s efforts to reduce emissions and transition towards cleaner energy sources.

Wärtsilä’s role in equipping Vitol’s new vessel underscores its position in the LNG bunkering segment, offering systems that optimise cargo handling efficiency.

This collaboration between Vitol and Wärtsilä exemplifies the industry’s concerted efforts to develop the necessary infrastructure to support the growing adoption of LNG as a marine fuel.

https://www.rivieramm.com/news-content-hub/vitol-chooses-lng-bunkering-vessel-cargo-and-fuel-equipment-supplier-83302

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MOL was selected as a finalist for the World Energy Transition Award 2024 and the World LNG Shipping Award 2024 in two out of three categories and was awarded the World LNG Shipping Award 2024.

MOL was recognized for its long experience in the LNG carrier business with the world’s largest LNG fleet, advanced technology, its commitment toward decarbonization through the promotion of LNG as a marine fuel and the introduction of environmentally friendly systems, including the wind propulsion system “Wind Challenger.”

MOL Executive Officer Suryan Wirya-Simunovic said, “We will contribute to the realization of a low-carbon society by leveraging our experience in LNG transportation, expanding our business not only in transportation but also in gas liquefaction, storage, regasification and power generation, expanding our LNG infrastructure business.”

World LNG Summit

The World LNG Summit, held annually, is one of the most prestigious gatherings in the global energy sector, bringing together key stakeholders from the LNG industry, including policymakers, industry leaders, energy providers, and experts. This summit serves as a vital platform for discussing the latest trends, challenges, and innovations in LNG while focusing on the energy transition, sustainability, and the future of global energy markets.

For the 2024 edition held in Berlin, the event attracted prominent players from across Europe and the world, underscoring its significance in shaping the future of LNG.

The World Energy Transition Award is awarded to a company that, through technological or commercial innovations or change, has significantly contributed to the crucial role of natural gas/LNG in the energy transition and in maintaining energy security.

The World LNG Shipping Award is awarded to a company that, through technological or commercial innovation or change, has made a significant contribution to the crucial role that LNG shipping plays in the value chain, such as employing technological and strategic innovation to reduce shipping emissions and accelerate shipping’s journey to carbon neutrality, providing innovative technological solutions to the LNG shipping industry, developing projects or products that have contributed to the progression of the global LNG shipping industry, contributing to maritime education in the LNG transport sector.
https://www.msn.com/en-ph/news/money/mol-receives-world-lng-shipping-award-2024/ar-AA1w1VE3

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The 2004-built Bilbao Knutsen will be chartered by Genesis Energias following its conversion into an FSU. Genesis will import LNG internationally through the LNG terminal it is currently constructing in Puerto Cortes on Honduras’ Caribbean coast, and Bilbao Knutsen will be used as an FSU for the onward transmission of LNG to the Brassavola Thermal Power Plant.

The project is envisioned to help Honduras switch away from fossil fuels for power generation to cleaner energy, reducing both the country’s production costs and boosting industrial development in the area.

The London Maritime Team of Watson Farley and Williams (WFW) has advised Genesis Energias on the chartering of the vessel. This also included advising on taxation and German law aspects.

https://www.bairdmaritime.com/shipping/gas/knutsen-lng-carrier-to-undergo-fsu-conversion-for-honduras-gas-to-power-project

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And China is set to be the main beneficiary of this market upswing, with its primary competitor South Korea likely to take a more “cautious” approach by focusing on profitable and reliable orders, the economists said in a research note released on Monday.

“Over the past two years, we have seen some previously closed shipyards in China reopen and start picking up orders again,” the analysis said. “The largest fraction of the fleet eligible for replacement consists of bulk carriers, which are predominantly built by Chinese shipyards.

“This could drive a stronger need for investment expansion in China.”

London and Shanghai-based industrial consultancy Hartland Shipping Services has also predicted sustained growth for the entire sector, with the prospects particularly bright for Chinese shipyards.

In October, market demand for new-build container ships reached its highest level since the second quarter of 2021, the peak of the last wave of global shipbuilding, the company said in a report published that month.

The need for new ships is being driven in part by the introduction of the UN International Maritime Organisation’s Energy Efficiency Existing Ship Index and Carbon Intensity Indicator in January 2023, which mandate that all ships calculate their energy efficiency and carbon ratings to cut pollution, according to ING.

Global shipbuilding boomed between 2002 and 2008 due to China’s rapid economic growth and an expansion in global trade, but the industry suffered a downslide following the global financial crisis in 2008.

China also emerged as a dominant player in the shipbuilding industry during that period, with its builders churning out container ships, bulk carriers, oil tankers and liquefied natural gas (LNG) carriers.

According to shipping market analysts Clarkson Research, Chinese shipyards commanded an overwhelming 86 per cent of global orders for new ships as of September, followed by South Korea with a 12 per cent share.

China accounted for 55 per cent of the global order backlog as of the end of September, with South Korea making up a 26 per cent share, Clarkson Research said.

China’s rise as a leading force in the global shipbuilding industry can be attributed to its large-scale production capacity, strong workforce, investment in new technology and government refund guarantees.

Labour in China’s shipbuilding industry costs 50 per cent less than in South Korea or Japan, according to ING, and Chinese companies also benefit from access to cheap steel.

At the same time, the Chinese government provides “sovereign refund guarantees” for certain classes of vessels, easing financial burdens on shipyards, ING said.

Though South Korea’s market share has fallen over the past four years, its shipbuilders “lead in efficiency”, ING said. High-value ships such as LNG carriers are often sourced to Korean builders, it noted.

Shipbuilding accounts for a greater share of total exports in South Korea than in China or Japan, according to ING. In China, most orders are placed domestically.

https://www.scmp.com/economy/global-economy/article/3291320/chinas-dominance-global-shipbuilding-strengthens-amid-surging-global-demand

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The 297.2-meter-long vessel will transport LNG under the ship management of France’s Gazocean, a joint venture between NYK and Geogas LNG.

Elisa Ardea boasts a cargo tank capacity of approximately 174,000 cubic meters built by GTT. The ship is powered by dual-fuel slow-speed diesel engines manufactured by WinGD and has a Turbo-Brayton refrigeration system developed by Air Liquide, which utilizes surplus boil-off gas.

The vessel was built by South Korea’s Hyundai Samho Heavy Industries. Another Korean shipbuilder, Samsung Heavy Industries, built an LNG carrier and delivered it to NYK earlier this month. The ship – Quest Kirishima – will be chartered to Q United Energy Supply & Trading (QUEST) under a contract signed in 2022.

https://www.offshore-energy.biz/edf-takes-delivery-of-lng-carrier-from-nyk-line/

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Elisa Ardea is propelled by, dual-fuel slow-speed diesel engines manufactured by WinGD and features an advanced Turbo-Brayton refrigeration system developed by Air Liquide, which efficiently utilizes surplus boil-off gas.

The 174,000 cubic meter capacity membrane-type tank, designed by GTT, is constructed using high-performance insulating materials that reduce the vaporization rate.

The approximately 297.2-meter-long, 46.4-meter-wide Elisa Ardea, built by Hyundai Samho Heavy Industries and registered in France, is an LNG carrier with a membrane-type cargo tank capacity of approximately 174,000 cubic meters and powered by an X-DF diesel engine.

https://en.portnews.ru/news/print/371689/

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Elisa Ardea will be chartered to the EDF Group long-term (up to 20 years, including extension options) and will be engaged in LNG transportation under the ship management of Gazocean, a French ship-management company.

Elisa Ardea is propelled by, dual-fuel slow-speed diesel engines4 manufactured by WinGD and features an advanced Turbo-Brayton refrigeration system developed by Air Liquide, which efficiently utilizes surplus boil-off gas. The 174,000 cu. m. capacity membrane-type tank, designed by GTT, is constructed using high-performance insulating materials that reduce the vaporization rate.

https://www.marinelink.com/news/lng-vessel-elisa-ardea-delivered-edf-520457

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