NGS’ NG/LNG SNAPSHOT – February 16-28, 2022
City Gas Distribution & Auto LPG
PM Modi to inaugurate Bio-CNG plant in Indore
Hon’ble Prime Minister Narendra Modi will inaugurate the “Gobar-Dhan (Bio-CNG) Plant” in Indore on Saturday at 1 pm through video conferencing. According to the Prime Minister’s Office (PMO),
PM Modi recently launched the Swachh Bharat Mission Urban 2.0, with the overall vision of creating “Garbage Free Cities”. The Mission is being implemented under the overarching principles of “waste to wealth” and “circular economy” for maximizing resource recovery – both of which are exemplified in the Indore Bio-CNG plant. The plant has the capacity to treat 550 tonnes per day of segregated wet organic waste. It is expected to produce around 17,000 kg per day of CNG and 100 tonnes per day of organic compost, the PMO informed.
The plant is based on zero-landfill models, whereby no rejects would be generated. Additionally, the project is expected to yield multiple environmental benefits- reduction in greenhouse gas emissions, providing green energy along with organic compost as fertilizer.
Indore Clean Energy Pvt Ltd, a Special Purpose Vehicle created to implement the project, was set up by Indore Municipal Corporation (IMC) and Indo Enviro Integrated Solutions Ltd. (IEISL) under a Public-Private Partnership model, with a 100% capital investment of Rs 150 crores by IEISL, stated an official release. Indore Municipal Corporation will purchase a minimum of 50% of CNG produced by the plant and in a first-of-its-kind initiative, run 400 city buses on the CNG. The balance quantity of CNG will be sold in the open market. The organic compost will help replace chemical fertilizers for agricultural and horticultural purposes.
Policy Matters/ Gas Pricing/ Others
Green tribunal seeks Bengal’s reply on CNG project delay
Clean fuel remains a distant dream for the city’s public transport with an ambitious CNG project caught in alleged land hurdles in six districts. The ministry of petroleum and natural gas, in an affidavit submitted to the National Green
Tribunal (NGT) bench of Justice B Amit Sthalekar (judicial member) and Saibal Gupta (expert member) on Monday, Feb 22, expressed its helplessness in taking the project forward in Bengal, stating that it had been unable to lay pipelines in East Burdwan, Hooghly, Howrah, East Midnapore, Nadia and North 24 Parganas owing to land issues. The bench sought the state’s reply.
The state transport department under Minister Firhad Hakim has been banking on the project to affect a green transition through a mix of CNG and battery-powered buses. This is crucial to cleaning up the city’s ambient air, which is currently “heavily polluted” because of emissions from diesel and petrol vehicles.
The project has been dragging its feet since 2011, when an MoU was signed between the Gas Authority of India (GAIL) and the city’s Greater Calcutta Gas Supply Corporation for a joint venture, Bengal Gas Company, to distribute CNG in the city. The petroleum ministry’s under-secretary said no proposal was pending with them for publishing notification under section 3(1) of the PMP Act, 1962, with reference to laying pipelines in the six Bengal districts.
Financial aid for farmers to fit CNG kits on tractors
Kagal’s Chhatrapati Shahu Sahakari Sakhar Karkhana, one of the country’s leading cooperative sugar factories, has decided to provide financial and technical support to the farmers to fit the CNG kits on their tractors.
The Shahu Group on Tuesday, Feb 22 held demonstrations of the various agricultural operations using the CNG tractors. Last year, union minister Nitin Gadkari had launched the country’s first CNG tractor.
As per the factory authorities, farmers spend over Rs 1 lakh on fuel for agriculture operations. During the crushing season, the tractors are assigned to sugar factories for cane transportation. As per the policy, the cutting and transportation charges are deducted from the farmers’ bills. The use of CNG tractors would help reduce fuel costs by 30% to 35% and ultimately help save the farmers’ money deducted from the bills.
Nitin Gadkari, in his tweet on Wednesday, Feb 23, praised Shahu Factory’s efforts. He wrote, “Congratulations for taking forward this very important initiative of CNG tractor. The CNG tractor will empower farmers to be Atmanirbhar and help farmers save over Rs 1 Lakh per annum towards fuel costs.”
Electric Mobility/ Hydrogen/ Bio- Methane
Government unveils first part of National Hydrogen Policy
The government on Thursday, Feb 17 allowed free inter-state wheeling of renewable energy used in the production of green hydrogen and ammonia as it seeks to boost usage of the carbon-free fuel and make India an export hub.
This hydrogen currently is generated using fossil fuels such as natural gas or naphtha. While hydrogen per se is carbon-free, the use of fossil fuels results in carbon emissions. The government is taking various measures to facilitate the transition from fossil fuel/fossil fuel-based feedstocks to green hydrogen/ green ammonia. In the second phase of the policy, the government would mandate the usage of green hydrogen and green ammonia by plants in a phased manner.
Under the policy, companies will have the liberty to set up the capacity to generate electricity from renewable sources anywhere in the country by themselves or through a developer. They could also buy such power from the exchange. This electricity will be allowed to be wheeled, free of cost through open access of the transmission grid, to the plant where hydrogen is to be produced. The government will also allow the green hydrogen/ammonia manufacturer to bank unconsumed renewable power, for up to 30 days, with the distribution company and take it back when required.
The fuels can be a game-changer for the energy security of India, which imports 85% of its oil and 53% of gas requirements. The policy will aid in India’s energy transition and achieve the target of becoming carbon neutral by 2070. The government wants to bring down the cost of green hydrogen to $1 (Rs 75) per kg from the current $3 to $6.5.
BPCL launches south India’s first EV fast-charging corridors
Bharat Petroleum Corporation Limited (BPCL) has launched EV Fast-Charging Corridors on Chennai – Trichy – Madurai highway, with the rollout of CCS-2 DC Fast chargers at 10 of its conveniently
located fuel stations along the 900 Km route on both sides of the highway. The Company is accelerating its focus on new business segments for sustainable growth and converting 7,000 conventional Retail Outlets into Energy Stations providing multiple fuelling options, which will also include an EV charging facility, in the medium to long term.
BPCL has planned to provide CCS-2 Electric Vehicle charging stations (EVCS) at its fuel stations at periodic intervals on all major national highways connecting major cities, The first phase launch on Chennai – Trichy – Madurai highway will be followed up by key routes which have high existing motorist traffic and a propensity for transition to travel by electric vehicles.
BPCL fuel Stations on highways offer a wide range of conveniences and amenities and we look forward to welcoming and serving our EV customers the Pure for Sure experience in this exciting new and sustainable world of Electric mobility.
The Bharat Petroleum fuel stations offer the consumers with the added convenience of clean and hygienic washrooms for ladies and gentlemen, safe and secure parking while charging, a free digital air facility, 24-hour operations, all of which are critical amenities that motorists look for on highways.
Indian Oil installs more than 1,000 electric vehicle charging stations
IndianOil is gearing up to provide EV charging facilities at 10,000 fuel stations in the next three years, said Director, Marketing V. Satish Kumar. Diversified energy major IndianOil on Friday said it has installed more than 1,000 electric vehicle charging stations (EVCS) across the country.
IndianOil had installed its first EV charger for public use in 2017, at Nagpur. Now, the company’s charging points are present in more than 500 towns and cities including multiple state and national highways. Besides, the corporation is planning to have a base of 3,000 plus charging stations to convert highways into e-highways across the country, over the next three years.
As per the ‘National Mission for Transformative Mobility and Battery Storage’, IndianOil is setting up EV charging infrastructure in Mumbai, Delhi, Bengaluru, Hyderabad, Ahmedabad, Chennai, Kolkata, Surat, and Pune, followed by state capitals, smart cities, major highways, and expressways.
Natural Gas / Transnational Pipelines/ Others
Qatar: Natural gas is fuel for sustainable development: GECF secretary-general
As the global population edges towards the 10bn-mark by 2050 and world GDP more than doubles, natural gas will continue to play a crucial role in alleviating energy poverty, fuelling economic growth, expanding prosperity, and
contributing to the protection of the environment, according to Mohamed Hamel, secretary-general of the Gas Exporting Countries Forum (GECF). More than 3bn people still lack access to clean fuels for cooking. Energy transition in Europe cannot be the same as in India, or in Africa.
Hamel expressed confidence that COP27 in Egypt – a developing country, and in Africa – will mobilise financial resources, transfer of technology, and capacity building to help developing countries mitigate and adapt to climate change. Not investing in natural gas today is a recipe for much higher prices tomorrow. This penalises the poorest and the developing world.
It risks creating a backlash against the very policies that stifled investment, and jeopardising the attainment of the UN Sustainable Development Goals, and, thus, the very battle on climate change.
U.S. Gain supply biogas to produce hydrogen for California transport
U.S. Gain® announced its renewable natural gas supply will be used as a feedstock into hydrogen production, enabling a greener fueling solution for the California transportation market.
Hydrogen producers are quickly learning the importance of feedstock selection in the production process, especially when the hydrogen is distributed in regions with established clean fuel programs.
Leveraging biomethane in the hydrogen production process can dramatically impact the hydrogen’s carbon intensity (CI) score. A lower CI score translates to improved environmental benefits and additional economic value. For hydrogen producers, the best low-carbon scenario comes from dairy-based biomethane, which results in a CI score as low as -300.
Though hydrogen is emerging in terms of technology readiness and infrastructure availability within the commercial transportation market, demand is certainly increasing thanks to government funding and policy, along with technology advancements that give hydrogen diesel-like performance characteristics.
UK: Biomethane produced in Europe today is 30% cheaper than natural gas
Today, the natural gas price stands at €80 per MWh compared to €18 a year ago. Prices next winter are expected to remain at a similarly high level, according to current estimations. While governments are struggling to reduce the impact of soaring energy prices on citizens’ energy bills.
The price of biomethane can be 30% lower than the current natural gas pricing. Biomethane can be produced starting from €55 per MWh, whereas natural gas costs around €80/MWh, without considering CO2 prices. This renewable gas will likely remain cheaper than natural gas in the short- and long term. While other renewable gases, such as green hydrogen, need time to scale up and are still two-to-four times more expensive, biomethane is available and scalable within the coming eight years. The rapid scale-up of biomethane across Europe could provide at least 34 billion cubic meters of renewable gas by 2030 if underpinned by a supportive legislative framework. This represents around 10% of total EU gas demand by 2050. This potential is reflected in many reports from different sources, including the European Commission. The EBA believes, if the growth trend continues, the biomethane industry could cover 30-40% of the EU gas demand by 2050.
The deployment of biomethane made in Europe can also help stabilise the current gas price increase related to disruptions of supply from third parties. There is an urgent need to reduce reliance on external gas suppliers, as the EU produces today less than 15% of its gas demand. The current conflict between Russia, Europe’s biggest gas supplier, and Ukraine could exacerbate the crisis due to a shortage of gas supplies.
Global LNG Development
Thailand PTT-EGAT co-invest in LNG depot
State-run Electricity Generating Authority of Thailand (EGAT) has signed a joint venture agreement with PTT Plc to co-invest in the second liquefied natural gas (LNG) receiving terminal project
in Rayong as part of the government plan to develop a regional LNG trade hub. The new facility, called LMPT2, is expected to require EGAT and PTT to spend almost 20 billion baht. PTT initiated and built LMPT2, worth 38.5 billion baht, in Nong Fab starting in 2019. It expects to start operation this year.
The second receiving terminal is designed to have a carrying capacity of 7.5 million tonnes a year. When combined with the first receiving terminal, operated by PTT in Map Ta Phut in Rayong, the total capacity increases to 19 million tonnes. The co-development of LMPT2 followed the decision by the National Energy Policy Council (NEPC) to have EGAT and PTT serve as key agencies to drive the government’s regional LNG hub plan, said EGAT governor Boonyanit Wongrukmit.
EGAT along with six other firms were granted LNG shipping licenses to support the state policy to deregulate the LNG market. The NEPC wants EGAT to make a 50% investment in LMPT2 instead of building a floating storage regasification unit (FSRU) in the upper part of the Gulf of Thailand. The FSRU was meant to supply gas to projects at Bang Pakong Power Plant and South Bangkok Power Plant.
However, the NEPC decided to scrap the FSRU project because it is less commercially viable than an FSRU project in the lower part of the Gulf of Thailand, meant to feed gas to a new EGAT-run power plant in Surat Thani’s Phunphin district, according to an energy official who requested anonymity. The PTT-EGAT co-investment in LMPT2 paves the way for the government to achieve its goal of becoming the regional LNG trade hub, said Energy Minister Supattanapong Punmeechaow.
China approves new LNG receiving terminal in Fujian province
China’s state economic planner has approved natural gas company Hanas Group’s plan to build a receiving terminal for liquefied natural gas (LNG) in the southeastern province of Fujian.
The terminal, estimated to cost 5.26 billion yuan ($829.8 million), will have an annual receiving capacity of 5.65 million tonnes of the super-chilled fuel, the National Development and Reform Commission (NDRC) said on Wednesday, Feb 16.
The terminal, to be built in the Meizhouwan port of Fujian province, will have one berth and two storage tanks each sized 200,000 cubic meters. Based in the city of Yinchuan in the northern region of Ningxia, Hanas Group is engaged in piped-gas distribution, natural gas liquefaction and power generation.
USA: Bechtel set for April construction start on $25B Louisiana LNG
Bechtel will begin full construction in April on the estimated $25-billion Driftwood liquefied natural gas complex in Louisiana under a $15.5-billion fixed-price contract. Charif Souki, the developer’s executive chairman,
said in a podcast earlier this month that work will start without an official final investment decision while the firm completes finance negotiations. The project, if built to full scope, would include five liquefaction trains, three LNG storage tanks, a marine terminal and a 96-mile pipeline, with about 6,500 construction workers at peak. The spokeswoman said LNG shipment is set to start in 2026. Tellurian noted 10-year agreements with three LNG users for about 9 million metric tons per year. It has completed work on the sixth LNG-processing train at the Sabine Pass facility, also in Louisiana, with the project for Cheniere Energy finished ahead of schedule and within budget. Work began in June 2019. The facility now has total production capacity of about 30 million tons per year. Owner Cheniere Energy said it could make a final investment decision this year on a proposed expansion of its Corpus Christi, Texas LNG facility.
North Macedonia to reserve capacities at Greece’s Alexandroupolis LNG terminal
The government of North Macedonia stated, it has started a process to reserve capacities of liquefied natural gas (LNG) at the floating LNG terminal in Greece’s Alexandroupolis, which is currently under construction. In 2021,
North Macedonia’s state-owned company National Energy Resources (NER) and electricity generation utility ESM signed a memorandum of cooperation to invest in the project for the construction of the LNG terminal and a gas-fired power plant in Alexandroupolis. North Macedonia plans to invest over 380 million euros ($432.2 million) in a 25% stake in the planned 800 MW power plant and 370 million euros in a 10% stake in the LNG terminal, former prime minister Zoran Zaev said last year.
The investment will lead to the opening of a second route for LNG supplies to the country, the government said in a statement on Tuesday, Feb 15. Currently, North Macedonia gets gas from Russia through the TurkStream gas pipeline through Bulgaria.
The governments of North Macedonia and Greece in July also signed an agreement for the construction of a cross-border natural gas interconnector worth 100 million euros.
The LNG terminal in Alexandroupolis, which is expected to become operational in early 2023, is planned to comprise an LNG floating storage and regasification unit, which will be a new, independent energy gateway for the markets of Southeastern and Central Europe. The station will have an LNG storage capacity of 170,000 cubic meters and a natural gas supply capacity that will exceed 5.5 billion cubic meters per year.
CHINA: CNOOC begins construction of 6 largest LNG storage tanks in the world
China National Offshore Oil Corp (CNOOC) has started to construct the world’s largest liquefied natural gas or LNG storage tanks in Yancheng Binhai Port Industrial Park in East China’s Jiangsu province.
The project includes six new ultra-large tanks, which will have a total storage volume of 270,000 cubic meters and reach a height of 60 meters, equivalent to the height of the National Stadium or the Bird’s Nest, and can hold three Boeing 747s at the same time.
The Jiangsu LNG Binhai Receiving Station, which will house CNOOC’s six LNG storage tanks, is the largest LNG reserve base currently under construction in China. Upon completion at the end of 2023, the project will include 10 tanks, including six new ultra-large tanks that will have an annual LNG processing capacity of six million metric tons and will become the largest LNG storage base in China.
The Jiangsu LNG Binhai Receiving Station will play a key role in optimizing the country’s energy structure, protecting the natural environment, accelerating the industrial transformation of the Yangtze River Economic Belt and helping China help the country keep its pledge to reach peak carbon emissions by 2030 and achieve carbon neutrality by 2060. Six million tons of liquefied natural gas represents sufficient supply for the entire population of Jiangsu Province for about 28 months, and reduce 28.5 million tons of carbon dioxide and 232,500 tons of sulphur dioxide, equivalent to planting 60 million trees.
Technological Development for Cleaner and Greener Environment Hydrogen & Bio-Methane
Spanish project will allow to produce of biogas and renewable H2 at a low cost
The ECLOSION project will develop new materials, technologies and processes for the generation, storage, transport and use in different applications, including vehicle fuel, of renewable hydrogen and biomethane, obtained from bio-waste (urban, agri-food, wastewater and sewage sludge).
The consortium, coordinated by Aqualia, has the collaboration of 10 prestigious research organizations, including research and technology centers and universities, as well as seven leading companies in the development and implementation of the hydrogen and biomethane value chain. The project will validate disruptive thermochemical, electrochemical and bioelectrochemical systems powered by photovoltaic and wind energy for the energy use of biowaste and wastewater, transforming them into hydrogen and biomethane at low cost. The resulting gas mixtures will be purified using new membranes and an advanced process based on green solvents.
The optimization and combination of these technologies will allow a very significant reduction in the cost of obtaining hydrogen and biomethane. Also, the separated CO2 waste streams will be processed by innovative bioelectrochemical systems to obtain biomethane thanks to the co-production of hydrogen in situ. ECLOSION includes innovative solutions that take advantage of existing infrastructures for the distribution and transport of hydrogen and biomethane.
Scania Brazil sells trucks 100% powered by LNG
In partnership with Scania Brazil, the company Morada Logística announced the acquisition of the first trucks 100% powered by LNG in Brazil. The first vehicle has already been delivered and
its initial route will be on a dedicated route in the interior of São Paulo, starting this month. The model chosen to make up the company’s new fleet of 30 units is the Scania R 410 6×2, with a trailer with three separate axles.
It is the first time that alternative fuel trucks are sold in Brazil. All vehicles will be delivered throughout 2022. In addition to these five units, Morada Logística acquired another 25 Scania trucks that will operate with CNG or bio-CNG.
USA: SoCalGas plans to build largest green hydrogen hub to help decarbonize LA
Southern California Gas Co. (SoCalGas) announced its proposal to develop what would be the nation’s largest green hydrogen energy infrastructure system (the “Angeles Link”) to deliver clean, reliable renewable energy to the Los Angeles region.
As proposed, the Angeles Link would support the integration of more renewable electricity resources like solar and wind and would significantly reduce greenhouse gas emissions from electric generation, industrial processes, heavy-duty trucks, and other hard-to-electrify sectors of the Southern California economy. It would also significantly decrease demand for diesel and other fossil fuels in the LA Basin, helping accelerate the region’s climate and clean air goals.
As the nation’s largest manufacturing hub, the Los Angeles Basin is home to many potential green hydrogen users. As proposed, Angeles Link’s green hydrogen could: displace up to 3 million gallons of diesel fuel per day by replacing diesel-powered heavy-duty trucks with hydrogen fuel cell trucks, eliminate up to nearly 25,000 tons of smog-forming NOx per year, and provide the clean fuel to convert up to four natural gas power plants to green hydrogen.
Russian researchers develop new material to make CNG more economic
Russian scientists of the National University of Science and Technology (NUST) have created a new nanoporous material for natural gas storage. The new material allows increased gas absorption at low pressure and room temperature,
thus eliminating the need for heavy, thick-walled cylinders. A lightweight cylinder with such a nanofiller will not explode and can be used in passenger cars. The study was published in Chemical Engineering Journal.
The use of natural gas as a vehicle fuel is associated with a number of technological challenges. Methane requires either high-pressure compression or low-temperature liquefaction, which are expensive. A promising alternative to compression is adsorption. The adsorbed natural gas (ANG) storage systems operate at lower pressures, use cheaper equipment and appear to be the safest way to store the methane and, consequently, create alternative opportunities for making natural gas vehicles competitive with other fuels. The adsorbent is a key link in the ANG technology. Depending on its characteristics, the adsorption capacity and working capacity be different.