NGS’ NG/LNG SNAPSHOT – February 2021, VOLUME 2

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City Gas Distribution & Auto LPG

All industrial units in Delhi operating on cleaner fuels: DPCC

All operational industrial units in the national capital have switched over to cleaner fuels, the Delhi Pollution Control Committee has told the Centre’s Commission for Air Quality Management.

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The Commission had earlier asked the DPCC to identify the industries using unapproved fuels and take stringent penal action in case of non-compliance. As many as 1,644 industrial units, spread across 50 industrial areas, had been identified to switch over to Piped Natural Gas (PNG). The DPCC, Indraprastha Gas Limited (IGL) and the Delhi government were also asked to work in close coordination with the industrial units to complete infrastructure work to ensure their transition from dirty fuels to PNG by January 31. “There were 1,644 such units. Of this, 13 shut down operations, two are non-operational and two shifted to electricity,” a DPCC official said. Of the remaining industrial units, 1,607 switched over to PNG by January 31, he said. The official said 20 industrial units have been using Liquefied Petroleum Gas (LPG), which is a clean and efficient fuel. “Though we have asked these units to change to PNG, we cannot force them to do it,” the official said.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/all-industrial-units-in-delhi-operating-on-cleaner-fuels-dpcc/80680173

 

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Adani-Total Gas reports record profit on cost optimisation

Adani Total Gas Ltd on Wednesday (Feb3) reported a record net profit of Rs 145 crore in the December quarter on optimising cost both for input gas and operating expenses.

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Net profit of Rs 145 crore in October-December was 27 per cent higher than Rs 114 crore a year back, firm’s chief executive Suresh P Manglani said on a media call. “This increase is mainly because of a significant decrease in operating cost and optimising gas sourcing portfolio that lowered the cost,” he said. The firm, which is a joint venture of infrastructure conglomerate Adani Group and French energy giant Total, sells gas sourced from domestic fields or imported in form of LNG to automobiles as CNG or as piped natural gas to industries and household kitchens. Manglani said the firm sources 48 per cent of its gas from domestic fields and the remaining is imported as liquefied natural gas (LNG). The firm has signed a three-year deal to source LNG from the overseas market, he said without giving details. The combined volume of CNG and PNG sales was 153 MMSCM in the third quarter, slightly lower than 154 MMSCM a year back. “Average volume in Q3 increased to 1.67 MMSCMD as compared to the average volume of 1.43 MMSCMD in Q2. This volume has reached 2 MMSCMD this month,” he said. The company added 17 new CNG stations to take the total to 151 CNG stations in 10 geographical areas (GAs) in the country. PNG home connection increased to 4.57 lakh (10,346 new connections added in Q3). Commercial and industrial connections now increased to 4,737. Revenue from the operation was up marginally at Rs 522 crore. “City gas stations expansion, pipeline work is going on in all the 15 GAs we have. Soon commercial operations in 5 GAs will start,” he said. Also, the company has completed the acquisition of 5 per cent equity stake in India’s first fully automated gas exchange, Indian Gas Exchange Ltd (IGX). Commenting on the financial result of the company, Gautam Adani, Chairman, Adani Group said, “I am witnessing the progress made by the combined synergies of Adani and Total. Our collective strengths will significantly contribute towards the creation of a gas-based economy. We are committed to taking this cleaner fuel across the nation in line with our vision to build a sustainable future.” Manglani said the company has reported the second successive quarter of the highest ever financial performance with robust physical infrastructure growth despite an ongoing pandemic. “We continue to pursue the strategy of expanding CGD Infrastructure on fast track mode. We are consistently encouraging society to convert their vehicles to environmental- friendly CNG and contribute in reducing the carbon footprint,” he added.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/adani-total-gas-reports-record-profit-on-cost-optimisation/80680162

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CNG sales in Gujarat state dipped by 32% in April-Sept

The sales of compressed natural gas (CNG) declined by 32% across Gujarat during the first two quarters of the current fiscal. Consumption, however,

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has recovered in the third quarter, but it is yet to reach pre-Covid levels. The provisional sales of CNG within the state stood at 252 TMT (thousand metric tonnes) in April-September 2020, substantially down in comparison to the sales of 367 TMT for the same period in 2019, shows a report by the Petroleum Planning and Analysis Cell (PPAC) of the Union ministry of petroleum and natural gas (MoPNG The CNG sales are primarily driven by autorickshaws, school vans, public transport, and cabs, including those operated by aggregators. All these modes of transport, according to the industry players, were hit hard due to the lockdown and subsequent restrictions to curb the spread of coronavirus. The reduction in tourism activity coupled with the Covid-19 induced slowdown further dented the CNG sales. “The CNG sales were adversely impacted as a large number of rickshaws remained off-road during April-September period,” said Arvind Thakkar, president, Federation of Gujarat State Petroleum Dealers Associations (FGPDA). Rickshaws account for a significant chunk of CNG consumption. “At least 70% autorickshaws shuttle on select routes ferrying multiple passengers for little cost. People have stopped moving out frequently or at least reduced their preference for autorickshaws. This leaves meagre earnings for autorickshaw drivers in Ahmedabad and the number of rickshaws ferrying on roads has declined,” said Rajvir Upadhyay, president, Jagrut Autorickshaw Drivers’ Union. “Apart from autos, CNG is widely used in vehicles, especially for vans ferrying school students. These have stopped since schools were closed. Tourism activity is also subdued, which has further contributed to the dampened sales of CNG,” he added. The impact on CNG sales was higher in cities such as Ahmedabad, Vadodara, Surat and Rajkot than in smaller towns and rural areas of the state, said industry players. The CNG consumption, however, has now started improving since September. According to Adani Total Gas Limited, one of the leading city gas distribution companies in India, its CNG sales were down by only 9% in the third quarter ended December 2020. The drop was steeper at 21% and 66% in the second and first quarter, respectively. At 709, Gujarat has the highest number of CNG stations in the country. With public movement gradually increasing following the reduction in Covid-19 cases and steady recovery in economy, the CNG sales are expected to get normalized from April, said market experts

https://timesofindia.indiatimes.com/city/ahmedabad/cng-sales-in-state-dipped-by-32-in-april-sept/articleshow/80676759.cms

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City, districts likely to get piped gas by ’22

By 2022, Kolkata and its adjoining districts like Hooghly, Howrah, North 24-Parganas and South 24-Parganas are likely to get piped gas for domestic and

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commercial consumption. The first CNG station in the city would be operational in couple of days as reported in TOI earlier. The Urja Ganga pipeline would reach near Kolkata on way to its final destination in Haldia by 2022. The director marketing of Gail E H Ranganathan disclosed this on Thursday here. Prime Minister Narendra Modi will be dedicating a 347-km-long Dobhi-Durgapur natural gas pipeline on Sunday which will be extended later. This pipeline is a part of the ambitious Pradhan Mantri Urja Ganga project. Dobhi-Durgapur pipeline has been built at a cost of Rs 2,433 crore by GAIL. He said that the Dobhi-Durgapur pipeline project will revive HURL Sindri (Jharkhand) fertiliser plant, supply gas to Matix fertiliser plant at Durgapur and will supply gas to industrial, commercial, automobile sectors and city gas distribution across all major towns in these states.

https://www.energyinfrapost.com/city-districts-likely-to-get-piped-gas-by-22/

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Confidence Petroleum bags contract for setting up CNG-MRU

Confidence Petroleum India has bagged a contract for setting-up CNG MRUs from Aavantika Gas, a joint venture of GAIL (India) and Hindustan Petroleum Corporation,

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the first MRU for doorstep distribution of CNG fuel in the geographical areas of Indore, Gwalior & Ujjain on built & operate basis. CPIL is the only Company that has been awarded the project based on their extensive Techno-Commercial experience and expertise. By implementation of CNG MRU concept, customers can avail CNG fuel at their doorstep without waiting at fueling stations. Confidence Petroleum India affirm setting-up of CNG MRUs in India with the association of Gas Distribution companies & PSU oil companies to make sustainable, clean, cheap & Green fuel available in all states of the country to alleviate pollution, a step towards fulfillment of plans of our Government. Earlier, CPIL was the only company who was awarded the first CNG MRU in the country by Maharashtra Natural Gas (MNGL), Pune.

https://www.business-standard.com/article/news-cm/confidence-petroleum-bags-contract-for-setting-up-cng-mru-121020401134_1.html

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City gas grid to get Rs 5,000 crore in six southern districts of Bengal

GAIL will arrange Rs 1,500 crore equity, while about Rs 500 crore would be brought in by state government entity. Bengal Gas Company Ltd, a joint venture between central PSU GAIL and

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state PSU Greater Calcutta Gas Supply Corporation Ltd, will plough Rs 5,000 crore over the next five years into a city gas distribution network in six southern districts of Bengal, including Calcutta. GAIL, which holds a 74% stake in the JV, will arrange Rs 1,500 crore equity, while about Rs 500 crore would be brought in by the Bengal government entity. “The rest would be financed by debt which has already been tied up. We are farming out contracts to execute the project,” E.S. Ranganathan, director (marketing) of GAIL, said. The main trunk pipeline carrying natural gas has already reached Durgapur and it would be flagged off officially by Prime Minister Narendra Modi on Sunday, along with two other oil industry projects from Haldia. As part of the Urja Ganga project, the main trunk pipeline will come to the north of Calcutta and proceed to Haldia, where it will serve the large industries located at the port town. Ranganathan, who was in Calcutta ahead of the PM’s visit, said the pipeline, being laid by GAIL directly, would reach Calcutta in the next 12 months. BGCL plans to build 130 compressed natural gas (CNG) stations to supply clean fuel to the transport sector in these six districts and at least 30 of them would be ready by the end of the year. It also intends to supply piped natural gas to 12 lakh households, along with small industrial units. The century-old GCGSCL has an underground pipe network in Calcutta that supplied coal gas. to consumers. Bulk of  the investment will go into its upgrade to offer reliable, round-the-clock and safe service. Majority of the investment will go into that. The city gas distribution network, which has the potential to clean up the air quality of the city as it did in Mumbai and Delhi, has been in the works for more than a decade. However, it has gained momentum in the last few years.

https://www.telegraphindia.com/business/city-gas-grid-to-get-rs-5000-crore-in-six-southern-districts-of-bengal/cid/1805731

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From today (Feb 9), pay more for CNG, piped cooking gas – Mumbai

The price of compressed natural gas (CNG) has been increased by Rs 1.50 per kg and that of domestic piped natural gas (PNG) by 95 paise per unit.

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The hike will affect not just 7.5 lakh autos, taxis and buses in Mumbai which depend on the green fuel, but also over seven lakh households which use piped gas for cooking. “The hike has been done in order to partially cover the increase in operational, manpower and fixed costs experienced during the pandemic,” a spokesperson from Mahanagar Gas Ltd said. Accordingly, revised delivered prices inclusive of all taxes of CNG will be Rs 49.40 per kg in Mumbai metropolitan region, while the new rates for cooking gas will be Rs. 29.85/unit (slab 1) and Rs. 35.45/unit (slab 2). Last year, in October, the prices had come down, bringing relief to citizens. While the CNG rate had dipped by a rupee on October 5, PNG price had reduced by 70 paise. But now MGL has increased the rates which will come into effect from Tuesday (Feb 9).

https://timesofindia.indiatimes.com/city/mumbai/from-today-pay-more-for-cng-piped-cooking-gas/articleshow/80756666.cms

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Gujarat Gas m-cap crosses Rs 30k cr

The company’s market cap surged to Rs 31,769 crore with its share price moving up 6% to Rs 461.5 on Tuesday (Feb 9). GGL’s stock has jumped 29% since February 1,

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when its price closed at Rs 359 per share. As against GGL’s total m-cap, the combined market cap of other seven state public sector undertakings (PSUs) is Rs 24,801 crore. The nearest PSU to GGL in terms of m-cap is Gujarat State Petronet Ltd, which has market capitalization of Rs12,523 crore. Stock analysts said that growth in volume and margins coupled with better than expected earnings for the third quarter of the current fiscal and upbeat business outlook have fuelled the company’s share price on the bourses. According to the stock broking firm Motilal Oswal, GGL’s volume growth over the last couple of quarters has been robust, which is led by strong export orders at ceramic units in Morbi. “The company’s gas sales volume and CNG sales have shown a robust recovery after the lockdown,” said Rakesh Lahoti, a city-based stock expert. “Its consolidated profit has doubled. The company’s sales volume in industrial and CNG categories rose by 29% and 2% respectively, when compared with the same quarter last fiscal.” The company’s average gas sales in terms of volume stood at 11.4 MMSCMD in Q3FY 21, which was 23% higher than the volumes recorded in the corresponding quarter of the previous fiscal. The company’s stock has surged on the back of its strong performance in Q3FY21. “While its net profit almost doubled, the revenues from operations increased 13% during the quarter. Also, its finance cost reduced by almost 48% year-on-year,” added Vanesh Panchal, a stock analyst from Ahmedabad.

https://timesofindia.indiatimes.com/city/ahmedabad/gujarat-gas-m-cap-crosses-rs-30k-cr/articleshow/80777040.cms

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Indraprastha Gas Q3 results: Net profit rises 18 per cent to Rs 335 cr

Indraprastha Gas Ltd on Wednesday (Feb 10) reported a 18% rise in December quarter net profit after city gas sales recovered after easing of coronavirus lockdown restrictions.

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Standalone net profit in October-December at Rs 334.87 crore compared with Rs 283.59 crore in the corresponding period of the last fiscal, the company said in a statement. IGL retails compressed natural gas (CNG) to automobiles and piped natural gas (PNG) for cooking purposes for household and as fuel to industries in the national capital and adjoining towns such as Noida, Greater Noida and Ghaziabad. “Both physical and financial performance of the company reflect a strong recovery after the second quarter due to gradual easing of restrictions and beginning of unlock period leading to increased economic activity. Sales have picked up steadily and presently have touched pre-lockdown levels,” it said. “The numbers showed strong resurgence from the impact of lockdown in the first half of the fiscal,” the company added. IGL sold 6.26MMSCMD of gas during the quarter as most of the lockdown restrictions started getting relaxed except reopening of educational institutions. Total gross sales were lower at Rs 1,587.36 crore against Rs 1,831.16 crore during the third quarter of FY’20.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/indraprastha-gas-q3-results-net-profit-rises-18-per-cent-to-rs-335-cr/80822081

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Five ministers to launch CNG tractor today

India’s first-ever converted compressed natural gas (CNG) tractor will be launched on Friday. The road transport ministry said this will help farmers save more than Rs 1 lakh annually on fuel costs.

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The tractor converted to run on CNG from diesel, which has been approved by a government-run vehicle testing facility, will be launched by Union transport minister Nitin Gadkari and four other Union ministers including Narendra Singh Tomar and Dharmendra Pradhan. The transport ministry said the test reports indicate that the retrofitted tractor produces more power or equal in comparison to the diesel-run engines. Moreover, overall emissions are reduced by 70% in such tractors as compared to the ones running on diesel. It will also help farmers to save 40-50% on the fuel cost, the ministry said.

https://timesofindia.indiatimes.com/india/5-ministers-to-launch-cng-tractor-today/articleshow/80871292.cms

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GO TOP

Electric Mobility & Bio- Methane

Tesla to set up electric car manufacturing unit in Karnataka

Billionaire Elon Musk‘s Tesla Inc will set up an electric-car manufacturing unit in the southern Indian state of Karnataka, according to a government document seen by

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Reuters on Saturday (Feb 13). “The U.S. firm Tesla will be opening an electric car manufacturing unit in Karnataka,” the state government said in a brief statement. The statement was part of a broader document outlining the highlights of India’s budget to its people in the local language of Kannada. Last month, the electric carmaker incorporated Tesla Motors India and Energy Private Limited with its registered office in the city of Bengaluru in Karnataka, a hub for global technology companies. State Chief Minister B.S. Yediyurappa had then said in a tweet, which was subsequently deleted, that Tesla would start its operations in India with an R&D unit in Bengaluru. It was not immediately clear if the Saturday statement was referring to the same unit. Tesla and the office of Karnataka state chief minister did not immediately respond to Reuters’ request for comments. Musk has tweeted several times about the company’s impending foray into India. In December, the Tesla CEO confirmed in an exchange on Twitter that Tesla will launch in the country in 2021. India has been keen to reduce its oil dependence and cut down on pollution, but its efforts to promote electric vehicles have been stymied by a lack of investment in manufacturing and infrastructure such as charging stations. To boost investment, India plans to offer $4.6 billion in incentives to companies setting up advanced battery manufacturing facilities, Reuters reported last year.

Source: ET Auto

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FAME-II scheme restructuring entire EV industry, needs another extension, says Ather Energy

FAME-II scheme, the programme meant to promote electric vehicles in India, has helped in attracting investments in the sector in the country and needs to be extended by

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another three to four years, according to a top official of Hero MotoCorp-backed Ather Energy. Presenting an opposite view to that of the Society of Manufacturers of Electric Vehicles (SMEV) which asked Finance Minister Nirmala Sitharaman to either rejig FAME-II scheme or reintroduce FAME-I, Ather Energy Co-founder & CEO Tarun Mehta told that what the “SMEV has said does not look like a considered industry view”. The SMEV had argued that since its implementation from April 1, 2019, FAME-II has been able to achieve less than 10 per cent of its target of supporting 10 lakh electric two-wheelers, five lakh three-wheelers, 55,000 four-wheelers and 7,000 buses by 2022. The EV industry body stated that the preconditions and qualification criteria of FAME-II made the electric two-wheelers unaffordable to the mass market customer despite the subsidy. Opposing the argument, Mehta said, “A policy like FAME-II is not just a demand creation policy. It is actually about creating the right product. It is restructuring and reachitecturing the entire EV industry to build a new kind of product for the consumer. A journey like that takes three to four years. It is going to be fuelled by a lot by a completely new distribution.” He further said, “We are obviously going to see a lot of sales pick up in the next two to three years. I believe FAME-II needs to be a six to seven years policy not a three-year policy. I am certainly looking forward to FAME-II being extended by three to four years.” Citing the examples of Ola‘s planned investment of Rs 2,400 crore on an electric two-wheeler plant and Bajaj Auto’s move to set up new manufacturing unit at Chakan at an investment of Rs 650 crore to produce high-end bikes and electric vehicles, he said it is only after FAME-II came out that legacy players as well as start-ups, including Ather, began doing bulk of investments.
It is “because investors see the confidence. Yes, it is a good policy. This policy will support good competitive electric vehicles that can actually have a shot at replacing petrol vehicles finally,” Mehta asserted. “FAME-II in particular has been the driver of these investments in the last couple of years because it has incentivised local production and has incentivised high quality products,” he added. Stating that FAME-I did not encourage a transition like that, he said, “FAME-I encouraged EVs to be toys, which no customer would want to buy. FAME-II finally changed that completely, which is where investments started pouring in. Ola raised a lot of money in 2018, we raised a lot of money in 2018-19. Why? Because finally our investors see a future of EV because of FAME-II and our results have started bearing fruit only now.”
Completely disagreeing with SMEV’s opinion, he added, “In fact I am deeply disappointed by the view published by the organisation. After almost 14 years of selling EVs in the country it is obvious and apparent to everybody that the time for importing technology, time for importing China-made vehicles is well past its expiry date.” This is not the time to still be talking about selling low-speed electric scooters that do 20-30kmph, he said adding, “that frankly nobody really wants to buy. The industry has not practically grown for over a decade-plus. It used to do 70,000-80,000 units per annum back in 2011-12, even in 2019-20, it is doing roughly the same.”

Source: ET Auto [Edited]

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Uttarakhand launches initiative to generate biofuel from used cooking oil during Kumbh

Urban development minister Madan Kaushik has asked the officials to prepare a detailed action plan

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Dehradun: Green fuel biodiesel will be produced from cooking oil under solid waste management during the Kumbh. This initiative, the first of its kind, will start during the Haridwar Kumbh Mela, the officials said. According to them, the effort to generate biofuel from cooking oil will also reduce the related health hazards.
Urban development minister Madan Kaushik has asked the officials to prepare a detailed action plan. RS Rawat, the designated officer for food safety during the mega fair, will be looking after the process of preparing biofuel. “Biodiesel or green fuel is a revolution towards enhancing health and wellbeing. Using the same cooking oil more than three times can prove to be dangerous for health. In order to avoid this, the biodiesel initiative has been launched,” said Kumbh’s food safety officer. A company authorised by the government, which also has a plant in Haryana’s Bhiwani, is working to collect reused cooking oil from hotels, restaurants and traders in Haridwar. The company will buy the used cooking oil at Rs 25 per kg. The oil will be recycled and used for industrial purposes. It is reported that on an average 8 to 10 litres of biofuel can be prepared from 10 litres of used cooking oil. Along with protecting the environment, the initiative will also prove beneficial for people’s health.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/uttarakhand-launches-initiative-to-generate-biofuel-from-used-cooking-oil-during-kumbh/80609149

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Delhi to have EV charging stations within every 3 km distance: Delhi transport minister

Transport Minister Kailash Gahlot on Thursday (Feb 4) detailed the electric vehicle (EV) policy at a global summit and said the Delhi government has aimed to set up charging stations

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within every 3 kms distance in the city. In a virtual address at the global event organised by World Bank and WRI Ross Center, Gahlot said the Delhi government has set a very ambitious target for the next five years — to have 25 percent electric vehicles in total vehicle registrations in the city. “We want to set up charging stations within every 3 km. We are also giving purchase incentives to any person who wants to set up a private charging station,” Gahlot said.
Under the Delhi Electric Vehicle Policy launched in August 2020, almost 6,000 electric vehicles have been rolled out on Delhi Roads, he said. “We have subsidized and incentivized the purchase of electric vehicles so that more and more people get motivated,” he said. Delhi has a dedicated EV Cell and a State EV Board as a single-window cell to ensure proper implementation and day-to-day operations and to address any issues that might come up, he said.

Source: ET Auto

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Gas/ Pipelines/ Company News

India’s gas production rises above pre-COVID level: DGH

India’s natural gas production has risen above the pre-COVID level following the start of output from a KG-D6 field operated by Reliance Industries Ltd and its partner BP Plc,

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upstream regulator DGH said on Thursday (Feb 11). Natural gas production in the country in February 2020 was 80 MMSCMD and in January this year it reached 82 MMSCMD, said Anand Gupta, Additional Director General (Development), Directorate General of Hydrocarbons (DGH). The rise in output, he said, was a result of Reliance Industries and its partner BP Plc of UK starting production from a field in their KG-D6 block. DGH, the government custodian of upstream oil and gas production in the country, said production levels are likely to be higher in the 2021 calendar year. This will be the first year to see an increase in output since 2019-20. “Outlook for gas production is much better this year,” he said. While state-owned Oil and Natural Gas Corporation (ONGC) and Oil India Ltd (OIL) continue to produce at almost the same levels as of November, the total gas production has risen because of R-Series fields in the KG-D6 block commencing production. “Production from BP-Reliance block has touched 6 MMSCMD and is slated to cross 13 MMSCMD by June,” he said. Peak production from R-Cluster will be 12.9 MMSCMD, according to the operators. Satellite fields in the same KG-D6 block, which are supposed to begin output from the third quarter of the 2021 calendar year, would produce a maximum of 7 MMSCMD. MJ field will start production in the third quarter of 2022 and will have a peak output of 12 MMSCMD. According to the oil ministry’s Petroleum Planning and Analysis Cell (PPAC), India’s gas imports (in LNG form) were almost flat during April-December. Fertilizer plants (33%), power generating units (18%), city gas distribution projects (18%) and refineries (13%) are the biggest consumers of gas. According to DGH, gas makes up for 6.23% of all energy consumed in the country. Achieving a 15% share would mean India’s consumption of gas would have to rise to 500 MMSCMD by 2030 from 150 MMSCMD now, DGH said. The government wants to promote the use of natural gas as it is cheaper, environment friendly and cuts carbon footprint.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/indias-gas-production-rises-above-pre-covid-level-dgh/80842177

 

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ONGC takes leaf out of Reliance’s book, floats subsidiary to buy own gas

Taking a leaf out of Reliance Industries Ltd’s playbook, state-owned Oil and Natural Gas Corporation (ONGC) is forming a new subsidiary for gas business that could be used to bid and buy gas from the firm’s own fields.

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The board of ONGC at its meeting on February 13 approved creation of a new wholly-owned subsidiary company for gas and liquefied natural gas (LNG) business value chain subject to necessary approvals, according to the firm’s third quarter earnings announcement. “The company is being formed with the objective of sourcing, marketing and trading of natural gas, LNG business, Hydrogen enriched CNG (HCNG), gas to power business, bio-energy/ bio-gas/ bio methane/ other biofuels business, etc,” it said. ONGC may use the new subsidiary to buy any new gas that the firm produces from fields such as KG-D5 in the Krishna Godavari basin, people with direct knowledge of the matter said. “ONGC too can look at this option now. The new subsidiary can participate in any auction that ONGC will do for incremental gas from KG-D5 block,” a source said. Besides ensuring competition and fair price discovery, the ONGC subsidiary can then sell the gas so sourced to firms such as Mangalore Refinery and Petrochemicals Ltd (MRPL) at a margin. This would help ONGC earn better margins on the gas produced. “Right now gas is a loss-making business for ONGC. The government controls gas price which is less than cost of production,” the source said. The government has fixed a price of USD 1.79 per MMBtu for ONGC’s fields. This is half of the cost of production. It allows a higher rate of USD 4.06 per MMBtu for difficult fields such as deep sea fields (KG-D6 and KG-D6) but even that is less than the cost of production from highly capital intensive projects. The current regulation means even if Reliance discovered a price equivalent of USD 6-7 per MMBtu for the 7.5 MMSCMD of new gas from KG-D6, it would get only USD 4.06 till March 31. The same would apply for ONGC. It might discover a rate higher for the 15 MMSCMD incremental gas planned from KG-D5 block but it can get only USD 4.06 as per current price. “So, essentially the ONGC’s gas subsidiary can bid and buy KG-D5 gas. It will pay ONGC USD 4.06 per MMBtu but can sell to MRPL or any other customer at a price higher than that, ensuring that the gas business becomes a viable proposition,” the source said. Reliance-BP are developing three deep-water gas projects in block KG-D6 — R Cluster, Satellites Cluster and MJ — which together are expected to meet around 15 per cent of India’s gas demand by 2023. ONGC is developing a set of discoveries in the KG-D5 block which sits next to Reliance’s D6 area. ONGC’s fields, which began production last year at a limited rate of 1 MMSCMD, are estimated to have peak production rates of 16 MMSCMD of natural gas and 80,000 barrels per day of oil.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/ongc-takes-leaf-out-of-reliances-book-floats-subsidiary-to-buy-own-gas/80916279 [Edited]

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PM Modi dedicates slew of infra projects to nation in West Bengal’s Haldia

The government is focusing on expanding pipeline network and reducing natural gas prices to help turn India into a gas-based economy, Prime Minister Narendra Modi said

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after inaugurating a clutch of oil and gas projects in West Bengal on Sunday (Feb 7). “India today needs a gas-based economy,” Modi said, adding that the development of a national gas grid would contribute towards that. Reforms in the petroleum sector in recent years have helped India become one of the biggest gas consumers in Asia, he added. Modi inaugurated the 347-km Dobhi-Durgapur stretch of the Jagdishpur-Haldia natural gas pipeline. The stretch built at a cost of Rs 2,443 crore will help supply gas to industries, homes, and vehicles in several districts in West Bengal and Jharkhand. Modi also inaugurated an LPG import terminal built by Bharat Petroleum in Haldia at a cost of Rs 1100 crore. The terminal will help cater to the growing cooking gas demand from states in the east and north-east part of the country, Modi said. The coverage of cooking gas has risen from 41% in 2014 in West Bengal to above 99% now, resulting in increased demand, he added. Modi also inaugurated a flyway and laid the foundation stone of the second catalytic dewaxing unit at the Haldia Refinery of Indian Oil. “These projects will help Haldia develop into a modern and big import-export centre,” Modi said. It will also help boost both ease of living and ease of doing business in West Bengal and many other states, he added.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/pm-modi-dedicates-slew-of-infra-projects-to-nation-in-west-bengals-haldia/80737458

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GAIL puts West Bengal on India’s gas-map, hurl in greener, cheaper fuel for homes, automobiles

GAIL (India) Ltd, the nation’s biggest gas utility, has put West Bengal on the gas map of India after it completed laying a Rs 2,433-crore pipeline that will bring to the state cooking fuel that is cheaper than LPG and

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CNG that costs less than petrol and diesel, and fuel to produce urea for all its requirement. The 348-kilometer pipeline from Dobhi in Bihar to Durgapur in West Bengal is part of the Pradhan Mantri Urja Ganga project to take environment-friendly natural gas to India’s eastern parts which hereto was left untouched by the benefits of gas-based economy. “The government’s consistent push for a gas-based economy that not just reduces carbon emissions but provides reliable and convenient fuel has opened new paradigms and the Pradhan Mantri Urja Ganga is one of them,” GAIL Chairman and Managing Director Manoj Jain said. The massive project connects the end point of legacy gas pipelines at Jagdishpur in Uttar Pradesh to eastern states of Bihar, West Bengal, Jharkhand and Odisha. While GAIL had previously commissioned a pipeline up to Bihar, “the Prime Minister will on Sunday dedicate to the nation the Dobhi-Durgapur section,” he said. The pipeline will provide gas to Matix fertiliser plant at Durgapur, which can produce “the entire requirement of urea of West Bengal,” he said. Besides supplying gas that is cheaper than alternate liquid fuels to industries, the pipeline would also bring the city gas network in towns along its route. “In the next 3 years, 3-4 lakh piped natural gas connections will be provided to household kitchens and 200 CNG stations will be set up in these places,” he said. CNG, which can replace diesel in buses as well as petrol in cars, is 30-40 per cent cheaper than petrol and diesel, he said adding gas piped to household kitchens will be 20-30 per cheaper than LPG cylinders. Besides being cheaper, piped natural gas is convenient as it ends the hassle of booking a LPG refill every month. The city gas networks, which started in Gujarat, have rapidly spread to towns and cities in western and northern parts of the country. The southern part is now joining and West Bengal too would usher in the same revolution with this pipeline. Jain said the pipeline was completed on time despite the disruption by pandemic. “It will spur small industrial zones in Jharkhand and West Bengal,” he said adding the pipeline is further to be extended to Haldia in West Bengal and to Bokaro in Jharkhand, Dhamra in Odisha and Guwahati in Assam in next one and half years. Prime Minister Narendra Modi will be dedicating to the nation key infrastructure projects in the oil and gas sector and road sector in poll-bound West Bengal at a public function to be held in Haldia on Sunday. Foundation stone of the second catalytic dewaxing unit at the Haldia Refinery of Indian Oil Corporation and inauguration of a LPG import terminal of Bharat Petroleum Corporation Ltd (BPCL) is among these. Jain said the Dobhi-Durgapur natural gas pipeline will revive fertiliser plant at Sindri (Jharkhand), supply gas to Matix fertilizer plant at Durgapur as well as supply gas to industrial, commercial and automobile sectors and city gas distribution across all major towns in these states, including cities of Purulia, Asansol and Durgapur of West Bengal.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/gail-puts-west-bengal-on-indias-gas-map-hurl-in-greener-cheaper-fuel-for-homes-automobiles/80730300

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GAIL Q3 profit rises 19 pc on uptick in petrochem margin

State-owned gas utility GAIL (India) Ltd on Wednesday (Feb 10) reported 19% in December quarter net profit after an uptick in petrochemical margin more than neutralised losses on gas marketing.

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Net profit of Rs 1,487.33 crore, or Rs 3.30 a share, in October-December, was 19% more than Rs 1,250.65 crore, or Rs 2.77 per share, in the same period a year back, the company said in a statement. The firm’s petrochemical business swung into black with a pre-tax profit of Rs 434.08 crore in the third quarter of the current fiscal year as against a loss of Rs 8.51 crore in the same period of the previous year. Natural gas marketing however went into red with a loss of Rs 73.70 crore as against a pre-tax profit of Rs 466.52 crore. Gas transportation, the mainstay business of the company, was almost flat and so was its LPG and liquid hydrocarbons business. GAIL recorded a 13% increase in turnover at Rs 15,386 crore. “Both physical, as well as the financial performance of the company, improved further across all major segments in Q3 as compared to Q2 FY21,” the statement said. Natural gas transmission improved 4% quarter-on-quarter, 8% in gas marketing, 3% in LPG transmission, 3% in petrochemical sales, and 8 per cent in liquid hydrocarbon sales. “GAIL’s petrochemical performance improved further in Q3, and the plant is operating at more than 100 per cent capacity,” the statement said. Petrochem profitability was more than double of Rs 170 crore in Q2 (July-September) 2020-21 fiscal. For the nine months ended December 31, 2020, GAIL recorded a turnover of Rs 41,057 crore as against Rs 54,021 crore. Net profit was lower at Rs 2,983 crore when compared to Rs 3,602 crore during April-December 2019-20. GAIL Chairman and Managing Director Manoj Jain said 450-kilometer Kochi-Mangaluru pipeline and 348-km Dobhi-Durgapur were commissioned this year. “The commissioning of pipelines will not only increase customers but also lead to growth in gas marketing and transmission,” he said. “GAIL is trying to accelerate the progress in its ongoing projects.”

https://energy.economictimes.indiatimes.com/news/oil-and-gas/gail-q3-profit-rises-19-pc-on-uptick-in-petrochem-margin/80788932

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Independent operator for common carrier gas pipelines – Budget

The government is planning to set up an independent operator to manage common carrier capacity for all natural gas pipelines, which would give all gas marketers a level playing field going forward.

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“An independent gas transport system operator will be set up for facilitation and coordination of booking of common carrier capacity in all natural gas pipelines on a non-discriminatory, open-access basis,” finance minister Nirmala Sitharaman said in her budget speech. ET was the first to report on December 28 that the government was planning to set up such an independent operator to meet the longstanding demand from industry to separate content and carriage and therefore remove the advantage that state-run gas marketer GAIL enjoys due to its overwhelming control of the country’s gas pipelines. With the establishment of an independent operator, all gas marketers will have equal and transparent access to the common carrier part of the gas pipelines and will be able to book capacity depending on its availability. Most gas pipelines are mandated to permit a part of their capacity for common usage. The government also plans to monetise three oil and gas pipelines owned by GAIL, Indian Oil, and Hindustan Petroleum, Sitharaman said. She also announced the extension of the Ujjwala scheme to 10 million more households. Eighty million households have already benefited under the scheme, which offers free cooking gas connections to poor women. The government also plans to add 100 additional districts to the city gas distribution network in the next three years. City gas licenses distributed in recent years already cover about 70% of the country’s population. A natural gas pipeline project will also be taken up in the Union territory of Jammu & Kashmir, Sitharaman said.

Source: Indian Oil & Gas/Economic Times

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FM announces revival of gas pipeline in J&K

Union Finance Minister Nirmala Sitharaman Monday announced revival of a pending gas pipeline project in the newly created UT of J&K.

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The union finance minister made the announcement during her budget speech in the parliament today. The FM said a gas pipeline project will be taken up in the Union Territory of Jammu and Kashmir. Lieutenant Governor of Jammu and Kashmir Manoj Sinha lauded the Central Government for announcing the project. Petroleum & Natural Gas Regulatory Board (PNGRB) authorized 725 km long Bhatinda-Jammu-Srinagar Natural Gas Pipeline (BJSPL) to GSPL India Gasnet Limited (GIGL) which is developing the authorized pipeline project. PNGRB has informed that about 102 km long pipeline section from Jalandhar-Amritsar in Punjab as a part of BJSPL has been commissioned. The PNGRB on 7 July 2011 had authorized GSPL, a subsidiary of the Gujarat Government to lay Bhatinda-Jammu-Srinagar gas pipeline to ensure gas supply for industrial, commercial and domestic use in Jammu and Kashmir. Subsequently, the PNGRB transferred the authorization in favour of GSPL India Gasnet Limited, a consortium comprising GSPL, Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited. The gas pipeline was to be laid through the districts of Kathua, Samba, Jammu, Udhampur, Ramban, Anantnag and Srinagar and the scheduled completion date for the project was 6 July 2014. In order to facilitate acquisition of land for the project, the then J&K Governor had even issued an Ordinance in June 2013. Though the land acquisition process was started in Kathua and Samba districts, it has not reached the logical conclusion. However now it is believed that with centre’s push the project will be completed soon.

https://www.greaterkashmir.com/news/todays-paper/front-page/fm-announces-revival-of-gas-pipeline-in-jk/

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NSE to pick up 26% stake in Indian Gas Exchange

According to a source aware of the development, the NSE board has already given clearance to this proposal and has approached markets regulator SEBI in this regard. After Adani Total Gas,

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Torrent Gas, and Gail (India) acquired 5 percent stake each in the Indian Gas Exchange (IGX), an arm of the Indian Energy Exchange (IEX), National Stock Exchange (NSE) is likely to acquire at least 26% stake in IGX. According to a source aware of the development, the NSE board has already given clearance to this proposal and has approached markets regulator SEBI in this regard. In the Adani Total Gas, Torrent Gas, and Gail deals, the value of the transactions was not available for the public. The source added that deal has also got a go-ahead from the Petroleum and Natural Gas Regulatory Board (PNGRB) and is in an advanced stage. “Though the initial plan by NSE was to set up a gas exchange, for which SEBI had already given a nod, it is now looking to pick up 26% in the established IGX,” the source said. An IGX official declined to comment on the development. The exchange is considered to be an alternative to the gas spot markets in India that provides ease of trading, payment security, and greater access to the market for its users. At present, there are around 15 members and 15 members and more than 500 registered clients under IGX. The platform provides a neutral and transparent marketplace to multiple buyers and sellers to trade in spot and forward contracts at designated physical hubs. It currently operates from three physical hubs –Hazira and Dahej in Gujarat and KG Basin in Andhra Pradesh. It was on January 22, 2021, that IEX had announced the strategic investments by Adani Total Gas and Torrent Gas in IGX. Later on February 9, GAIL too joined as a strategic partner.

https://www.cnbctv18.com/energy/nse-to-pick-up-26-stake-in-indian-gas-exchange-8290381.htm

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State-owned GAIL acquires IEX’s 5% stake in Indian Gas Exchange

The Indian Energy Exchange (IEX) on Tuesday (Feb 9) said state-owned GAIL (India) Ltd has acquired five per cent stake of the IEX in its arm Indian Gas Exchange (IGX).

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However, the company did not divulge the details about the value of the transaction. Last month, Adani Total Gas and Torrent Gas had acquired five per cent stake each in the IGX. GAIL is the third strategic investor in IGX. It added that the partnership between the IGX and GAIL is a significant development, which will go a long way and add robust value addition in development of the gas markets in the country. S N Goel, chairman of IEX and director of IGX, said in the statement, “With strong impetus from the government to create a conducive policy and regulatory framework, gas markets are on the cusp of breakthrough growth. Competitive domestic gas markets are crucial to build a gas-based economy.” In line, IGX is pro-actively working in collaboration with the stakeholders to build gas markets ecosystem in the country, he added. “We are delighted to welcome GAIL onboard as our partner and unite our strengths to realize India’s vision of a gas-based economy,” Goel said. Santanu Roy, executive director (business development and corporate affairs) of GAIL, said in the statement, “GAIL is committed towards development of gas-based economy in the country. The partnership between GAIL and IGX will benefit the gas sector as a whole and pave way for further development of the gas market, more trading through gas exchange and increase in capacity utilisation of pipelines.”

https://www.business-standard.com/article/companies/state-owned-gail-acquires-iex-s-5-stake-in-indian-gas-exchange-121020901189_1.html

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Policy Matters/ Gas Pricing/Others

Reliance buys two-thirds of own gas from KG-D6; GAIL, Shell among other buyers

Billionaire Mukesh Ambani”s Reliance Industries has picked up two-thirds of its own new gas from KG-D6 block that was auctioned under new rules with state-owned GAIL and

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Royal Dutch Shell getting smaller volumes, sources said. Reliance and its partner UK”s BP Plc on Friday auctioned 7.5 MMSCMD of incremental gas from the R-series gas field in the KG-D6 block, benchmarking it to a gas marker for the very first time in the country. The auction was held under the liberalised price discovery rules notified by the government that allowed affiliates of the gas producer to bid and buy natural gas. Reliance O2C, an affiliate of Reliance, picked up 4.8 MMSCMD of gas in Friday”s (Feb5) auction that lasted for seven-and-a-half-hours, sources with direct knowledge of the development said. State gas utility GAIL (India) Ltd won 0.85 MMSCMD of supplies while Shell picked up 0.7 MMSCMD. Adani Total Gas Ltd got 0.1 MMSCMD, Hindustan Petroleum Corporation Ltd (HPCL) 0.2 MMSCMD and Torrest Gas 0.02 MMSCMD. Other buyers include IRM Energy (0.1 MMSCMD), PIL (0.35 MMSCMD) and IGS (0.35 MMSCMD), they said. Sources said the gas was bought at a price of USD 0.18 per MMBtu discount to JKM i.e. price of JKM (minus) USD 0.18 with tenures ranging from 3 to 5 years. Reliance did not respond to email sent for comments. Reliance O2C is the new unit that holds the firm”s refinery and petrochemical assets. E-bidding process was conducted through an online web-based electronic bidding platform by CRISIL Risk and Infrastructure Solutions Limited (CRIS), an independent agency empanelled by Directorate General of Hydrocarbons (DGH). CRIS partnered with e-Procurement Technologies Limited (EPTL) and developed e-bidding platform. Sources said the bidding process for sale of gas was launched on December 30, 2020 and it witnessed participation from around 15 bidders from city gas distribution sector, steel, power, refineries, petrochemicals, resellers and other industries. The e-bidding process required bidders to submit their price bids linked to international LNG price benchmark JKM (Japan Korea Marker). The JKM represents price for spot LNG delivered in Asian market and is now being widely used in LNG industry as a marker for in medium/ long term LNG contracts instead of traditional linkage to oil. This was second time Reliance-BP conducted an e-bidding process which ran on a dynamic forward auction basis for sale of KG-D6 gas. Earlier in November 2019, 5 MMSCMD of natural gas was sold at price in range of around 8.6% of Brent crude oil for tenure ranging from 2 to 6 years. Reliance-BP started production of gas on December 18 last year from the R Cluster ultra-deep-water gas field in block KG D6 off the east coast of India. The duo developing three deep-water gas projects in block KG-D6 — R Cluster, Satellites Cluster and MJ — which together are expected to meet around 15 per cent of India”s gas demand by 2023. R Cluster is the first of the three projects to come onstream and is the deepest offshore gas field in Asia. E-bidding auction rules asked bidders to “quote the variable denoted as ”V” in USD per million British thermal unit (MMBtu) terms.” “The gas price (in USD/MMBtu (GCV)) shall be = JKM + V,” the bidding notice said.  ”V” can be a positive, zero or negative number and up to two decimal places but it cannot be less than (-)0.30 USD/MMBtu, it said. This means users will have to quote -0.30 or higher value of ”V”. If JKM averaged USD 6 per MMBtu, the price will be USD 5.82 per MMBtu. But Reliance-BP will only get the government notified cap price for gas from deep-sea fields. The cap for six months to March 31, 2021, is USD 4.06 per MMBtu. Pricing of gas at JKM will be the first time that domestically produced gas is being sold at rates linked to an international gas benchmark, industry sources said. Also, this will be the first discovery of gas price since the October 2020 decision of the government setting out uniform e-bidding norms for finding the market price.
Essar Steel, Adani Group and state-owned GAIL in November 2019 bought the majority of the initial 5 MMSCMD of gas planned to be produced from R-Series in the KG-D6 block by bidding between 8.5 and 8.6 per cent of dated Brent price. In that bidding, Reliance-BP had asked gas users to quote a price (expressed as a percentage of the dated Brent crude oil rate), supply period and the volume of gas required.
R-Cluster will have a peak output of 12.9 MMSCMD while satellites, which are supposed to begin output from the third quarter of the 2021 calendar year, would produce a maximum of 7 MMSCMD. MJ field will start production in the third quarter of 2022 and will have a peak output of 12 MMSCMD. Reliance has so far made 19 gas discoveries in the KG-D6 block. Of these, D-1 and D-3 — the largest among the lot — were brought into production from April 2009 and MA, the only oilfield in the block was put to production in September 2008. While the MA field stopped producing last year, output from D-1 and D-3 ceased in February. Other discoveries have either been surrendered or taken away by the government for not meeting timelines for beginning production. Reliance is the operator of the block with 66.6 per cent interest while BP holds the remaining stake.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/reliance-buys-two-thirds-of-own-gas-from-kg-d6-gail-shell-among-other-buyers/80741543

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To fund its infra, GAIL split plan put on hold

The Centre had earlier indicated that it would split GAIL’s pipeline and marketing businesses to address concerns of other players of having non-discriminatory access to GAIL’s pipeline network.

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The government has put its plan to split GAIL’s natural gas and pipeline operating business on hold, with a view to protect the state-owned utility’s financial stability, as it undertakes major infrastructure projects to augment the country’s natural gas pipeline network, according to a senior government official. The Centre had earlier indicated that it would split GAIL’s pipeline and marketing businesses to address concerns of other players of having non-discriminatory access to GAIL’s pipeline network. GAIL, which owns and operates about 60% of India’s natural gas pipelines, is a key part of the central government’s plan to augment the country’s natural gas pipeline by adding over 16,000 km to the existing network of about 16,400 km of pipelines. Our key consideration is that GAIL should be able to complete its plans to augments its pipeline network,” said a senior government official, noting that the Centre did not want to affect the state-owned company’s ability to raise funds to meet this expenditure. GAIL may also seek to monetise some of its existing pipelines by selling minority stakes through Infrastructure Investment Trusts, according to sources aware of the developments.

https://indianexpress.com/article/business/to-fund-its-infra-gail-split-plan-put-on-hold-7175023/

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LNG Development and Shipping

India is hungry for LNG cargoes after prices crash back to earth

Indian firms are returning to the liquefied natural gas spot market as prices for the fuel recede from record-high levels. Importers including Indian Oil Corp. and Petronet LNG Ltd.

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have issued at least eight tenders seeking supplies for February to March delivery in the last two weeks. So far, four of them have been awarded. Most end-users stopped buying cargoes from late-December, when spot rates began to skyrocket. The country’s LNG buyers can afford to be more opportunistic than rivals because the fuel in India is used mostly in industrial applications rather than power generation, and it competes against fuel oil instead of coal. The purchases follow a spate of panic buying by North Asia consumers who sought to secure supplies amid colder-than-expected weather. India’s LNG importers are seeking spot supplies after prices recede. The resurgence of demand from India and other regional buyers may help support Asian spot prices from falling much further. Pakistan LNG Ltd. saved about $30 million by scrapping a tender seeking March cargoes that closed Jan. 15 due to high prices, and re-issued a new one that closed earlier last week.

Source: LNG Global/Bloomberg

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BPCL seeks two LNG cargoes for March delivery

India’s Bharat Petroleum Corp is seeking two liquefied natural gas (LNG) cargoes for delivery in March, three industry sources said on Monday.

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The refiner is seeking one of the cargoes for delivery into Dahej on March 14 and the other for delivery into Kochi on March 18-19, one of them said. The tender closes on Feb. 2 and remains valid for the same day.

Source: Reuters/Indian Oil & Gas

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New MD-CEO Akshay Kumar Singh takes charge at Petronet LNG 

Akshay Kumar Singh took charge as the Managing Director and Chief Executive Officer (MD & CEO) of the Petronet LNG Limited (PLL) on Monday (Feb 1). ​

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Before joining PLL, Singh was working with the Indian Oil Corporation Limited as Director (Pipelines). He had also served as an Executive Director in the GAIL India Limited in Projects division. “I am delighted to lead PLL and join in the endeavour to make India a gas based economy,” Singh said after assuming the new role. Singh has vast experience in executing challenging, complex and large size Cross Country hydrocarbon pipeline networks of national importance and has made significant contributions in the last 35 years to the Petroleum & Natural gas sector in India. He possesses extensive domain experience in the major business activities like hydrocarbon pipelines project development and execution, O&M of Pipeline Installations, Gas Marketing, CGD Business, Gas processing plant including petrochemicals, LNG Sourcing & logistics and Corporate Risk Management.

https://www.newindianexpress.com/business/2021/feb/03/new-md-ceoakshay-kumar-singh-takes-charge-at-petronet-lng-2258859.html

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GAIL expects to sell all its U.S.-sourced LNG locally from 2023

Gas firm GAIL (India) Ltd expects to end overseas sales of the liquefied natural gas (LNG) it secures from the United States from 2023, as local demand rises with the commissioning of new fertiliser plants,

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a company official said. GAIL buys 5.8 MMTPA of LNG from the U.S.-based projects. It has signed time and destination swap deals for some of these volumes to cut the landed cost for Indian customers and trade the remainder in overseas markets. “As consumption in India increases, sales in international markets will be less so this U.S. RLNG (regassified LNG) will be consumed by fertiliser plants and other industries,” said A.K. Tiwari, head of finance at GAIL. Last year GAIL sold 2.5 MMT of its U.S. supplies in global markets, its executive director Rajeev Singhal told an analyst conference. He said GAIL hopes to trade less than 2 MMT of its U.S. volumes this year, and in 2022 this could shrink to about 1 MMT. “From 2023 we will not be selling our U.S. LNG in foreign markets except for any arbitrage opportunity,” he said, adding crude oil at $60 a barrel had made GAIL’s Henry-Hub linked U.S. LNG affordable for price-sensitive Indian customers. The Ramagundam fertiliser plant in southern India is expected to reach full capacity by March, requiring 0.75 MMTPA of LNG. Fertiliser plants at Durgapur in eastern India and at Gorakhpur in the north, requiring about 1.25 MMTPA and 0.75 MMTPA LNG respectively, will be commissioned later this year. Two more plants at Sindri and Barauni in eastern India will come on line next year, each requiring 0.75 MMTPA of LNG, Singhal said.

Source: LNG Global/Reuters

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India Petronet to expand Dahej LNG terminal’s capacity to 22.5 MTPA

Petronet LNG, India’s top liquefied natural gas (LNG) importer, plans a 29% increase in its Dahej terminal’s capacity to 22.5 MMTPA to meet rising demand,

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its chief executive said on Friday (Feb 12). Indian companies are investing billions of dollars to build infrastructure, including pipelines and a new LNG import terminal, as Prime Minister Narendra Modi wants to raise the share of gas in energy mix to 15% from 6.2% to help curb emissions. Capacity at the 17.5 MMTPA Dahej terminal in western Gujarat state will be increased in two phases, chief executive A. K. Singh told a news conference. It will add 2.5 MMTPA in the first phase within three to four years, followed by another similar expansion. The International Energy Agency in its latest report said India’s LNG imports are expected to quadruple to 124 billion cubic metres, or about 61% of overall gas demand by 2040. Raising the share of gas to 15% would require a four-fold increase in gas consumption from the current 150 MMSCMD, Singh said, adding his company sought to build a new LNG import terminal on the country’s east coast as well as expanding at Dahej. To meet the country’s growing gas demand Petronet is looking for flexible gas import contracts of 10 years or less instead of the standard long-term contract of 25 years, he said. Petronet operates a 5-mtpa terminal at Kochi in Southern India. Singh said the terminal would operate at about 30% by the end of this year compared to the current 20% as more customers are linked to the gas pipeline. He said capacity use at the terminal would rise to over 80% when a pipeline linking Petronet’s project to the national grid is ready.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/india-petronet-to-expand-dahej-lng-terminals-capacity-to-22-5-mtpa/80891422

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INTERNATIONAL NEWS

 

Natural Gas / Transnational Pipelines/ Others

BP profit sinks as epidemic pummels demand

BP‘s fourth-quarter profit sank to $115 million, missing analysts’ forecasts, pummelled by continued weak energy demand due to the coronavirus epidemic and weak trading results.

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On annual basis, BP sunk to a loss of $5.7 billion, its first in a decade after it wrote down the value of oil and gas assets by $6.5 billion as a result of sharply lowering its long-term energy prices. Its fourth-quarter underlying replacement cost profit, the company’s definition of net income, of $115 million fell short of the $360 million seen in a company-provided survey of analysts. That compared with a $86 million profit in the third quarter and a profit of $2.6 billion a year earlier.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/bp-profit-sinks-as-epidemic-pummels-demand/80646724

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France urges Germany to scrap Russia gas pipeline over Navalny

France on Monday (Feb 1) urged Germany to scrap a major gas pipeline project with Russia in protest over the detention in Moscow of opposition leader Alexei Navalny,

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but the plea fell on deaf ears in Berlin. “We have always said we have the greatest doubts on this project in this context,” European Affairs minister Clement Beaune told France Inter radio. Asked specifically if France wanted Berlin to drop the project, Beaune said: “Indeed, we have already said this.” Nord Stream 2 is a 10-billion-euro ($11-billion) pipeline that will run beneath the Baltic Sea and is set to double Russian natural-gas shipments to Germany, Europe’s largest economy. The United States and several European countries such as Poland have criticised the project, saying it will increase German and EU dependence on Russia for critical gas supplies. German Chancellor Angela Merkel has stood by the project, and work resumed on it in December after an almost year-long pause due to American sanctions. Asked about the French objections, Merkel’s spokeswoman on Monday said “the government has not changed its basic position” in support of Nord Stream 2. France’s Beaune said European leaders were weighing new sanctions against Russia over President Vladimir Putin’s crackdown on the opposition led by Navalny, who was arrested in mid-January and faces a trial that could see him detained for years. Thousands defied government warnings to protest across the country on Sunday in a second weekend of mass demonstrations against the arrest of Putin’s most prominent opponent. “Sanctions have already been imposed, we could do that but we have to be clear, they will not be enough,” Beaune said. “The Nord Stream option is one under consideration,” he added, while acknowledging that “it’s a decision for Germany, because the pipeline is in Germany.” Merkel’s spokeswoman condemned the violent crackdown in Russia and called for “the immediate release” of detained protesters as well as Navalny himself.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/france-urges-germany-to-scrap-russia-gas-pipeline-over-navalny/80645401

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Exxon Mobil reports big 2020 loss, unveils low carbon business

Exxon Mobil closed the books on a terrible 2020 on Tuesday (Feb 2), reporting losses in the fourth-quarter and for the full year in the wake of lower oil prices amid the Covid-19 crisis.

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The big US oil company, which has been criticized over the last year for both its financial performance and its response to climate change, suffered a 2020 loss of $22.4 billion, after posting a profit of $14.3 billion in 2019. The energy giant unveiled new cost-cutting efforts, a new low-carbon business unit and a new board member that it said would position it for the future. “The past year presented the most challenging market conditions Exxon Mobil has ever experienced,” said Chief Executive Darren Woods, adding that the company responded “decisively” in ways that will position it for the long term. In the fourth quarter, Exxon Mobil suffered a loss of $20.1 billion following huge write-offs. Revenues fell 30.7 percent to $46.5 billion. The company unveiled plans for additional spending cuts of $3 billion in annual expenses expected by 2023, its latest belt-tightening move amid the industry-wide downturn. Amid criticism it has not invested in renewable energy, Exxon Mobil said its low carbon solutions business would focus on carbon capture and storage technology as a means to counter the emissions that cause global warming. The oil giant also nominated to its board former chief executive of Malaysian national oil company Petronas, Tan Sri Wan Zulkiflee Wan Ariffin. Shares rose 2.0 percent to $45.80 in pre-market trading.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/exxon-mobil-reports-big-2020-loss-unveils-low-carbon-business/80661171

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China’s CNOOC to expand offshore gas, unconventional fuel to cut emissions

China’s CNOOC Ltd said it will accelerate the exploration and development of natural gas, including deepwater reserves in the South China Sea and unconventional resources onshore

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China, to cut carbon emissions. One of the industry’s lowest-cost explorers and producers, CNOOC said net oil and gas output last year grew by 5% to 528 million barrels of oil equivalent (boe) and it aimed to raise 2021 output to 545-555 million boe. It plans capital spending this year of 90-100 billion yuan ($13.93-$15.48 billion), the highest since 2014, as it prioritises domestic drilling and natural gas, which is less carbon intensive than oil. With the aim of making gas 30% of its portfolio by 2025 and half by 2035, CNOOC will expedite large discoveries, such as Lingshui 17-2 in the South China Sea and Bozhong 19-6 in the Bohai Bay off north China. It will also tap unconventional resources, including coal-seam gas, tight gas and shale gas in China. “Bohai Bay has huge natural gas potential and our exploration at the South China Sea is only at early stage,” Chief Executive Officer Xu Keqiang told reporters.

CNOOC will also consider acquiring gas assets outside China, Xu added. Production from offshore China will account for about 68% of the 2021 target and overseas operations 32%, compared with the 64%-36% split seen in the previous two years, the company said. Of 19 projects to commence operation this year, a stand-out is CNOOC’s first major fully-owned deepwater gas field, Lingshui 17-2. CNOOC in January started sailing Shenhai-1, a newly-commissioned deepwater oil and gas production and storage platform, to Lingshui. First output is expected late this year and annual output will reach more than 3 billion cubic metres. The company has said 3%-5% of its total annual spending will be on offshore wind power, following the launch of its first wind power farm in east China last September and expansion planned in several other coastal provinces. Asked about its fluctuating share prices following Washington’s blacklisting, CEO Xu said CNOOC has been communicating with the U.S. government to overcome misunderstandings “so to be removed from the sanction list as soon as possible”. CNOOC’s Hong Kong-listed shared have recovered more than 20% over the last three weeks as European and Asian investors bargain-hunted its shares hit by the U.S. investment ban.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/chinas-cnooc-to-expand-offshore-gas-unconventional-fuel-to-cut-emissions/80698913

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Global LNG Development

Global LNG-Asian prices fall on lower heating demand for the fourth straight week

Asian spot liquefied natural gas (LNG) prices fell for a fourth week on lower heating demand and as markets in China and most of Southeast Asia close for the Lunar New Year.

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The average LNG price for March delivery into Northeast Asia LNG-AS was estimated at around $6.90 per MMBtu, 30 cents lower than last week, with just one cargo changing hands during the week within the S&P Global Platts window. While sellers including Kuwait Petroleum made offers, the only confirmed cargo was sold by Petrochina to Vitol, traders said. The deal closed at a premium of $0.60 over the European reference price, the Title Transfer Facility, or TTF, in the Netherlands. The premium was attributed to low liquidity, one trader said. March TTF futures closed at $6.571 per MMBtu in London on Thursday (Feb11), slight lower than the Asian close a day earlier, the price assessment agency said. Demand for LNG for heating has fallen this week after a harsh winter in Asia that sent prices to record highs in January, with traders now booking cargoes for delivery in warmer months. Temperatures in Tokyo and Shanghai, in two of the world’s top LNG consuming countries, are expected to rise above the historical average in late March, when cargoes currently being booked will be delivered, weather data from Refinitiv Eikon showed.

Source: LNG Global [Edited]

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Global-LNG-Asian prices fall for third straight week on warmer weather

Asian spot LNG prices fell for a third week as a warmer season approaches in the northern hemisphere, reducing the heating demand that sent prices to a historic high last month.

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The average LNG price for March delivery into Northeast Asia LNG-AS was estimated at around $7.20 per MMBtu, traders said. That’s 80 cents lower than the previous week. Cargos for April delivery were estimated at $6.60 per MMBtu, with Spring in the northern hemisphere approaching after a cold spell and supply disruptions. That’s about five times lower than the record high of $32.50/MMBtu on Jan. 13. Temperatures in Tokyo and Shanghai, in two of the world’s top LNG consuming countries, are expected to rise slightly above the historical average over the next two weeks, weather data from Refinitiv Eikon showed. “The weather coming back down to Earth in a lot of half of January has essentially meant that this demand has waned,” said Ben Chu, research director of Gas & LNG for consultancy firm WoodMackenzie. Falling prices in Asia are normalizing the flow of U.S. ships to Europe. Four U.S. vessels have changed their trajectory in the middle of the Atlantic in the last two weeks – diverting from their intended delivery in Asia towards Europe instead, according to Kpler consultancy firm. Congestion delaying LNG shipments via the Panama Canal which has been driving up freight costs in the past months, has also eased. LNG tanker transits of the Panama Canal hit a record in January, with 58 U.S. vessels finding a shorter route to Asia, the canal operator said in a Feb. 3 note. Modifications in the canal’s reservation system on Jan. 4 allowed last minute slots be offered through auctions. From the 25 auctions last month, nine have been awarded to LNG vessels, the canal’s operator said. Karpowership, one of the world’s largest operators of floating power plants, said some unique challenges have now eased. “With prices falling, I expect there to be a flurry of purchases for delivery in March.” Pakistan State Oil (PSO) is seeking an LNG cargo for delivery in April, in its first potential purchase in three years. Thailand’s state-owned company PTT shipped an LNG reload cargo to Japan for the first time.

Source: LNG Global/Reuters

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Shell eyes LNG expansion

Shell aims to expand its LNG portfolio in the coming years, with plans to create additional demand in new markets, as part of its energy transition strategy. The firm aims to create

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3mn t/yr of additional demand from new markets by 2025, the firm said in its energy transition strategy presentation. New target markets include the Philippines, Indonesia, Brazil, Pakistan and the Bahamas. Shell is also looking to expand its LNG portfolio with additional offtake agreements, including its 2 MMTPA deal with Mozambique LNG and a similar contract with US firm Venture Global, the developer of the 10 MMTPA Calcasieu Pass export facility. Additional agreements will add to Shell’s production capacity, which is expected to increase by 7 MMTPA by 2025 once the Canada LNG facility and the seventh liquefaction train at Nigeria’s Bonny liquefaction complex are on line. The firm plans to invest only in competitive LNG assets with a technical cost of less than $5/MMBtu, the firm said. This would be in line with its average existing cost, which has fallen by approximately 40pc to $4.80/MMBtu from about $8/MMBtu in 2015. Shell expects global LNG trade to continue to expand in the coming years and reach roughly 670 MMTPA by 2040. Global LNG deliveries totalled 365 MMT 2020, according to Vortexa. Shell delivered 70 MMT of LNG last year, it said, with its fleet of LNG carriers standing at 60 vessels.

https://www.argusmedia.com/en/news/2186162-shell-eyes-lng-expansion

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Shell LNG Canada’s coronavirus restart plan approved

LNG Canada said the coronavirus restart plan includes additional coronavirus testing for workers Royal Dutch Shell’s LNG Canada export project in British Columbia has won approval from 

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health officials for construction to ramp back up with improved coronavirus protection measures. Work at the site was curtailed last month by an order from the Provincial Health Officer which applied to five major industrial projects in British Columbia, including LNG Canada. “Our approved restart and measured workforce increase at the project site will continue over the coming months,” LNG Canada and JGC I Fluor, the engineering joint venture building the project, said in a statement on Thursday (Feb12). LNG Canada said the coronavirus restart plan includes additional coronavirus testing for workers. All non-local workers will continue to be forbidden from leaving the site except for medical emergency or “critical” appointments that cannot be held virtually or postponed, it added. LNG Canada is the only big LNG export plant under construction in Canada. It is set to cost about C$40 billion ($31.4 billion), and is designed to produce about 14 MMTPA of LNG or 1.8 billion cubic feet per day of natural gas. Before coronavirus delayed the project, it was expected to start producing LNG in 2024. Many analysts however now say they expect the project to enter service in the second half of 2025. Officials at LNG Canada were not immediately available to discuss the cost or timing of the project. LNG Canada is a joint venture between units of Shell, Malaysia’s Petronas, PetroChina Co Ltd, Mitsubishi Corp and Korea Gas Corp, according to the company’s website. JGC I Fluor is a joint venture between JGC Holdings Corp and Fluor Corp. ($1 = 1.2733 Canadian dollars)

https://energy.economictimes.indiatimes.com/news/oil-and-gas/shell-lng-canadas-coronavirus-restart-plan-approved/80894293

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Growing risks for $50bn Mozambique LNG projects

The worsening security situation is raising the risk of further delays but did not prevent the signing a $15bn debt financing agreement.

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French oil and gas company Total is facing increased security concerns at its $20bn Mozambique liquefied natural gas (LNG) project. The company has been removing staff from the project site as a three-year old Islamist militant insurgency in the northern province of Cabo Delgado escalates. Total’s Mozambique LNG plant is one of two projects on the Afungi Peninsula. The other is ExxonMobil’s Rovuma LNG project. Both are intended to involve $50bn of investment — the largest industrial investment in Africa.

The Mozambique LNG project is intended to begin production in 2024. However, a January 2021 Mozambique oil and gas risk commentary by IHS Markit noted that the increasing security concerns, along with Covid-19, have “raised major questions over the timelines for such huge undertakings in one of Mozambique’s least developed areas”. Total’s bad start to the year has flown largely under the radar. News of the group’s further renewable energy investment and its exit from the main US oil and gas lobby group — the American Petroleum Institute (API) — over climate disagreements have attracted more attention. While the final investment decision for Total’s project was made in June 2019, Exxon has delayed a final decision on its $30bn Rovuma LNG project until 2022 (and possibly even later) amid lower oil prices. Eni is Exxon’s project partner for Rovuma LNG. The worsening security situation is raising the risk of further delays. IHS Markit stated that the “ongoing failure by the Mozambican authorities to offer sufficient protection to LNG operators is raising the risks of sustained, long-term postponements of onshore project developments” while scoring Mozambique an “F” for political violence over a five-year outlook. After a local newspaper reported on leaked contracts between LNG developers and the Mozambique government concerning the provision of troops for security, the offices of the newspaper were torched in a suspected arson attack. Further delays to the LNG projects would mean they come online even deeper into the ongoing energy transition, meaning they may face further regulatory hurdles. The EU is working on plans to reduce greenhouse gas (GHG) emissions arising from the extraction of the oil and gas it consumes. Its new emission standards will likely be introduced in the near future and these will send a strong signal to other markets, including Asia. The likelihood of the EU introducing a carbon border tariff mechanism is also a threat to further fossil investments.

Any LNG investment is also exposed to the risk that demand falls below expectations. Major investments, such as those proposed in Mozambique, are clearly dependent on LNG prices, but from this point on in the global energy transition higher gas prices destroy long-term demand by making alternative, renewable energy options even cheaper by comparison. Last week, ratings agency S&P stated that “the energy transition, price volatility and weaker profitability are increasing risks for oil and gas producers”. And an Institute for Energy Economics and Financial Analysis (IEEFA) briefing note highlighted how more than $50bn in Asian LNG import investment is at risk from likely higher price volatility. The recent LNG price spike is not a one-off — the logistics of LNG make it prone to price surges. Potential Asian growth markets for LNG, such as Vietnam, have little chance of implementing LNG-fired power proposals at the rate suggested by many sponsors that have been promoting overambitious targets for their projects’ development milestones. The need for associated, additional infrastructure makes LNG-fired power proposals more challenging to execute than coal-powered projects that already struggle with chronic implementation delays in Vietnam. Meanwhile, renewable energy installations continue to exceed expectations. Vietnam added an astonishing 9GW of rooftop solar capacity in 2020. The growing environmental, social and governance (ESG) concerns of investors also mean there are significant reputational risks for companies investing in LNG in Mozambique. Circumstances in Cabo Delgado province, and across the country, are giving rise to social and governance concerns, in addition to the environmental impact of GHG emissions. Eni, in particular, ought to be aware of reputational risks arising from activities in Africa. The company, along with Shell, stands accused by Italian prosecutors of being fully aware of bribes paid to secure an oilfield off the coast of Nigeria. Issues in Mozambique that could raise responsible investor’s eyebrows are plentiful. After a local newspaper reported on leaked contracts between LNG developers and the Mozambique government concerning the provision of troops for security, the offices of the newspaper were torched in a suspected arson attack. There is no suggestion that any of the LNG developers were involved in this incident. Total has, indeed, signed a security pact with the Mozambique government that will see state troops protect the project site. That the Mozambique government is more focused on defending LNG projects while a humanitarian crisis in northern Mozambique is getting worse may not go unnoticed for long by investors with ESG concerns. Not linked to the LNG projects, there have been reports of major abuses by Mozambique army troops in Cabo Delgado, including executions and torture. The Mozambique government has denied this. Total has stated that “each Mozambican military or police officer assigned to the protection of the facility receives Voluntary Principles on Security and Human Rights training.” There are also questions about the development impact of the LNG proposals for northern Mozambique. Cabo Delgado province is thousands of kilometres from the national capital Maputo, in the more developed south of the country, and has suffered from long-term government neglect. However, the transformational potential of the LNG projects has lessened now that related projects have been cancelled or moved south.

Shell was planning to build a gas-to-liquids (GTL) project in Northern Mozambique supplied by Afungi Peninsula gas. In its 2020 third-quarter results presentation the company revealed that it will no longer develop green field GTL projects anymore, meaning its proposed Mozambique GTL project is now off the table.

Norwegian chemical company Yara International’s proposal to use Cabo Delgado gas for a fertiliser plant and power generation has also been cancelled. Total is reportedly considering setting up a logistics base on the French island of Mayotte in the Indian Ocean rather than in Mozambique. This will likely end the Mozambique government’s hopes of establishing such a base in Cabo Delgado.

With Total also seeking to build an LNG import terminal at Maputo, it seems much of the domestic allocation of gas from the Mozambique LNG project will be heading to the south of the country by ship. Total is reported to have been a bidder for Sasol’s 50% holding of the Rompco gas pipeline between Mozambique and Sasol’s operations in SA. It is possible that much of the LNG regasified in Maputo will, in fact, be heading out of Mozambique given that Sasol’s own Mozambique gas fields are due to taper supply from 2023.

According to IHS Markit, “Some uncertainty remains over domestic supply from the LNG projects, and a key focus for the government over the forecast period will be clarifying a gas master plan to drive industrialisation and power sector growth.” Clearly any concerns about risk did not prevent the Mozambique LNG project signing a $15bn debt financing agreement — Africa’s largest ever and equal to Mozambique’s annual GDP — during a global pandemic. The finance agreement includes direct and covered loans from no less than eight export credit agencies, including $5bn from the Export-Import Bank of the US and $3bn from the Japan Bank for International Co-operation. However, in the wake of Covid-19 and a new US administration, and with gas emission regulations on the horizon, 2021 is likely to be a pivotal year for LNG. The US government is now intending to draw up a plan to end state financing of fossil fuel projects overseas, while Exxon is considering further capital expenditure cuts in addition to those announced in November 2020. Risks are building for LNG projects globally, but, given events on the ground none may be more risky than the $50bn of northern Mozambique projects.

Source: LNG Global

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Kuwait extends bid deadline for gas terminal study

State-owned Kuwait Integrated Petroleum Industries Company (KIPIC) has extended the bid deadline for a contract to conduct a study for its planned $2.9bn liquified natural gas (LNG) import facility in Al-Zour.

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The study is due to look at the terminal’s provision of ship compatibility services. In a statement the company said the new deadline is 9 February. Previously the bid deadline was 26 January. The main contract for the LNG terminal was awarded in 2016 to a consortium of South Korea’s Hyundai Engineering Company, Hyundai Engineering & Construction Company and Korea Gas Corporation for $2.93bn. The LNG import terminal is being built to meet domestic demand for fuel. The scope of the project includes marine works, such as jetties and unloading arms, and construction of an LNG terminal. Construction of the terminal will include installing eight LNG storage tanks. Four of these will be brought online in phase one of the project and four in stage two, according to Al-Awadhi. Each storage tank will have a capacity of 225,500 cubic metres. The scope of the LNG terminal will also include condenser units, LNG pumps, vapourisers and fuel gas systems. The scope of the project also includes construction of offsite infrastructure and buildings.

https://www.meed.com/kuwait-extends-bid-deadline-for-gas-terminal-study

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Petroleum Division backs long-term LNG deal

With the Pakistan Tehreek-e-Insaf (PTI) government set to open the liquefied natural gas (LNG) market for the private sector to reduce financial risk, a Petroleum Division official has

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underlined the need for a long-term LNG deal. The country has already a long-term LNG deal with Qatar. Consumers are forced to consume expensive LNG due to the involvement of government entities in the entire chain. The private sector has been struggling for several years to import LNG but it has been denied the opportunity due to monopoly of state-run companies despite the fact that the consumers had paid a tolling fee to the LNG terminal for idle capacity. Now, the Petroleum Division secretary informed a parliamentary panel on Monday that there should be a long-term LNG contract for smooth supply. Briefing the Senate Standing Committee on Petroleum, he said that Pakistan LNG Limited (PLL) and Pakistan LNG Terminals Limited (PLTL) were being merged. Minister for Energy Omar Ayub said there were no flaws in the LNG deals, adding that the LNG company required 45 to 60 days to finalise LNG contracts due to PPRA rules. He pointed out that the government had to take the merit order into account before importing LNG. In a briefing on the stance of federal and Sindh governments on the laying of a 17km-long pipeline for imported gas, the committee was informed that Sui Southern Gas Company (SSGC) had laid the pipeline in all respects including modification of the CTS Bin Qasim and SMS Pakland Pipeline was commissioned on December 22, 2020.Regarding the actions taken by the Petroleum Division to curb smuggling of oil products, the committee was informed that following the directives issued by the prime minister, a national task force had been constituted with the chief minister and home secretary as conveners.

https://tribune.com.pk/story/2282279/petroleum-division-backs-long-term-lng-deal[Edited]

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Panama Canal sets LNG transit and tonnage record

The Panama Canal set a new monthly record for transits and tonnage of LNG vessels in January, which shows its capacity to respond to the demand of this segment,

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as a result of the recent surge in the energy market. In January, a total of 58 LNG vessels transited through the Neopanamax Locks, totaling 6.74 million Panama Canal tons (PC/UMS). The previous monthly records were set in January 2020 with 54 transits and in November 2020 with 6.23 million PC/UMS. “These achievements reaffirm the Canal’s ability to adapt and guarantee our competitiveness and reliability to capture the opportunities presented by market changes, including the liquefied natural gas segment,” said Panama Canal Administrator, Ricaurte Vásquez Morales. “For more than a century, the Panama Canal has demonstrated its responsiveness to global trade changes, and what the world has experienced in the past year will not be the exception.” The Panama Canal implemented recent adjustments in its processes to provide greater flexibility in its operations and respond more efficiently to the continuous changes in the demands of maritime trade, reflected in the current vessel mix that use the waterway. In January, the Panama Canal announced modifications to the Transit Reservation Booking System, allowing any slot that becomes available for Neopanamax vessels within 96 hours prior to transit to be offered through an auction process. Since the modifications, the Canal has conducted 25 auctions, of which nine have been awarded to LNG vessels. In addition, the Canal was able to transit three northbound LNG vessels in one day, on January 25, and the transit of four LNG ships, two northbound and two southbound, in one day on January 31. This has allowed the Canal to maximize the efficiency and flexibility of the transit service to better handle the current demand. The increase of LNG transits through the Panama Canal is a result of record winter temperatures in Asia, which have caused LNG prices to rise to unprecedented levels.

Source: LNG Global

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Thailand’s PTT ships LNG to Japan for first time amid winter squeeze

Thailand’s state-owned company PTT shipped a liquefied natural gas (LNG) reload cargo to Japan for the first time as a freezing winter and global supply shortages of the fuel

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caused spot prices to spike and sent buyers scrambling to find gas. LNG tanker Symphonic Breeze loaded an LNG cargo from Thailand’s Map Ta Phut regasification terminal on Jan. 27 and discharged the cargo at Tokyo Gas’ Ohgishima terminal on Feb. 3, data from intelligence firm Kpler showed on Friday. This was the first LNG reload cargo from the 11.5 MMTPA Thai terminal, Kpler’s LNG analyst Rebecca Chia said. Japan’s electricity prices had hit a record high last month as colder temperatures drove demand for heating, coinciding with increased demand from China and South Korea and production outages in several plants globally. Spot LNG prices in Asia surged by more than 1,000% as a result, putting a squeeze on buyers who scrambled to find supply. PTT has long-term LNG purchase contracts with Qatargas, oil majors Royal Dutch Shell and BP and Malaysia’s Petronas to import a total of just over 5 mtpa of LNG. It also has a Singapore-based trading unit set up in early 2019. It was likely leveraging on the price difference between term contracts which are oil-linked and spot prices, making a profit from the wide price gap by re-exporting the cargo, two sources told Reuters. The shipment from Thailand follows the first re-export LNG cargo out of Indonesia’s Arun regasification terminal in mid-January.

“Re-export cargoes from South-East Asia seem to have now emerged as a (viable) emergency response to the gas supply shortage in North Asia,” Kpler’s Chia said.

Source: LNG Global/Reuters

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Qatar Petroleum signs deal for mega-LNG expansion

Qatar Petroleum (QP), the world’s top liquefied natural gas (LNG) supplier, signed a contract on Monday for the first phase of its North Field LNG project expansion,

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aiming to boost the country’s LNG output by 40% a year by 2026. The expansion, which will take Qatar’s LNG production capacity to 110 MMTPA from 77 MMTPA, is the largest single LNG project ever to be sanctioned, according to consultancy Wood Mackenzie. QP signed a contract covering major onshore engineering, procurement and construction at the expansion project, known as North Field East, with a joint venture between Chiyoda and Technip. Production from that phase will start by the fourth quarter of 2025 and reach full capacity by late 2026 or early 2027, QP’s CEO Saad al-Kaabi said in a virtual news conference. “The total cost of the project will be $28.7 billion, making it one of the industry’s largest investments in the past few years and largest LNG capacity ever built,” Kaabi said. Kaabi, who is also Qatar’s energy minister, said that while QP is ready to develop the North Field alone, a bidding process for international oil firms to take up to a 30% stake in the project’s first phase will start next week. He said he expects a decision to finalise partnerships with oil companies for the field’s expansion by the end of this year.

ExxonMobil, Royal Dutch Shell, Total and ConocoPhillips are long-standing partners in Qatar’s LNG plants.

A second phase, known as the North Field South project, is expected to lift Qatar’s LNG production capacity further to 126 MMTPA by 2027. Kaabi said QP is currently evaluating a further increase in LNG capacity beyond the 126 MMTPA. “I would say ‘stay tuned’,” he added. The new capacity from North Field East, an LNG export plant being developed in the United States with Exxon Mobil Corp, and expiring long-term LNG contracts from some existing projects mean Qatar’s export volumes are increasing, Wood Mackenzie research director Giles Farrer said on Tuesday (Feb2). “We estimate it will have over 75 MMTPA of uncontracted LNG volume to sell by 2027, around 70% of its LNG portfolio,” he said. At a long-term breakeven price of just over $4 per MMBtu, Qatar’s LNG production is at the bottom of the global LNG cost curve, alongside Arctic Russian projects, Farrer said. “Qatar is pursuing market share. This FID (final investment decision) is likely to put pressure on other pre-FID LNG suppliers, who may find Qatar has secured a foothold in new markets.”

Source: LNG Global/Reuters

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Natural Gas / LNG Utilization

Mallorca’s new transport system will add another 73 CNG buses

The UTE (temporary union of companies) Sagalés – Autocares Caldentey was one of the awardees of the new transport system of the TIB CTM,

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Consorcio de Transportes de Mallorca, which in turn has been the one that has renewed the most buses with Grupo Castrosua. In this renewal of vehicles, CNG propulsion predominates due to its environmentally-friendly benefits, as well as its performance and operating costs on the same level as a diesel, or even improved. This UTE purchased a total of 73 Scania Hispania chassis vehicles from Grupo Castrosua, all of them powered by natural gas. Of the total number of buses, seven are 12-meter urban with New City bodywork, continuous low floor and three doors, while the remaining 66 units are Magnus.E bodies for intercity routes. The Magnus.E vehicles include 36 Low Entry models, of which 26 are 13-meter and 10 are 18-meter long. The remaining 30 buses are high-floor, all with luggage racks, including 14 units of 13 meters and 16 of 15 meters. The new buses feature one of the most avant-garde safety and energy saving packages, integrating up to 15 different systems, such as lane change warning, emergency braking, fatigue detector, traffic signal reader and alcoholock, a device that only allows the bus to start if the driver is under the allowed alcohol limit. The vehicles to be delivered incorporate state-of-the-art technology and improvements, two or three interior user information screens; up to five security cameras with video recording; vandal-proof security screen; perimeter vision system and Stratio remote diagnosis system; 16 USB sockets; and a system for transporting two bicycles inside the bus.

https://www.ngvjournal.com/s1-news/c3-vehicles/mallorcas-new-transport-system-will-add-another-73-cng-buses/

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Nuevo León, Mexico unveils new transport model with CNG buses in Monterrey

As part of the studies carried out within the Comprehensive Sustainable Urban Mobility Program (PIMUS) for the Monterrey metropolitan area,

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the High Specification Routes (RAE) model was presented, which will be the beginning of the restructuring of public transport. There are 16 routes (including three that will feed Metro Line 3), which must be applied in the coming months in Nuevo León, and will be carried out by buses running on natural gas. The tender for companies interested in operating these routes and their respective vehicles will be announced shortly. Manuel Vital Couturier, Secretary for Sustainable Development, said the new buses must be comfortable and spacious, offer technology capable of providing users with real-time information for timely decision-making, guarantee passenger safety and be environmentally-friendly, so they must be equipped with clean fuels. “These vehicles will have to be fueled by compressed natural gas, like the entire system that we currently have (in the Express Route buses). We will begin with the tenders and then we will enter into operation,” he added. Moreover, Noé Chávez Montemayor, Director of the Institute of Mobility and Accessibility of Nuevo León, explained that the RAE are routes that do not need their own infrastructure, but it is considered to maximize the offer in their implementation by optimizing the frequency and the type of vehicles according to demand considering hourly variations. It is estimated that this service network will benefit 2.6 million users, covering a total of 574 kilometers, with 1,045 bus stops and a coverage of 1,442 neighborhoods. As part of the PIMUS plan and at the same event, the State also launched the “Program for the inspection of ostensible emissions from mobile sources,” with units equipped to detect polluting vehicles. Within this project, state-of-the-art equipment was installed in six patrols of the Mobility and Accessibility Institute, which now will be able to measure the pollutants generated by cars, according to the criteria established in the official Mexican standards: hydrocarbons, carbon monoxide, carbon, nitrogen oxides and oxygen for gasoline vehicles, and also opacity for diesel vehicles.

https://www.ngvjournal.com/s1-news/c3-vehicles/nuevo-leon-unveils-a-new-public-transport-model-with-cng-buses-for-monterrey/

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More Argentine logistics companies choose Scania Green Efficiency line

Scania launched its Green Efficiency line in Argentina at the beginning of 2020, with the aim of offering its customers more sustainable vehicles, which use only alternative fuels. Originally from Arroyito in Cordoba,

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Transporte Carbajales has a fleet of 60 trucks, of which 52 are Scania, and now it has chosen to incorporate a brand new CNG-powered truck of this environmentally-friendly line. Dedicated to the transport of aggregates, food and cereals, Carbajales SA mainly delivers products from the Arcor company in different areas of the Northwest and Mesopotamia. The new truck is a R410 6×2, which was equipped with scalable semi-trailers, to carry up to 52.5 tons of total gross combined weight. “The engine makes almost no noise, it’s a dream!” said Orlando Carbajales, head of the company. “It is always necessary to innovate, and when we learned about the fuel savings that these trucks mean, we made the decision,” he added regarding the 50% reduction in operating costs that the use of CNG offers. In addition to transporting general cargo, the Córdoba-based company’s trucks are also used for other important tasks: the firm collaborates in the transport of merchandise and the logistics of various solidarity festivals organized by artists from Chaco Salteño. With decades of experience in the sector, Carbajales SA decided to incorporate a vehicle that is committed to efficient and sustainable transportation. The Green Efficiency line vehicles are designed to run exclusively on alternative fuels, including CNG, LNG and biogas. These options allow, in addition to reducing the client’s operating costs, reducing polluting and noise emissions.

https://www.ngvjournal.com/s1-news/c3-vehicles/a-scania-cng-vehicle-will-transport-food-in-northern-and-central-argentina/

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Spain: IVECO delivers 25 S-WAY NP 460 trucks to Murcia logistics group

CampilloPalmera, a company specialized in transport, parcels and logistics, acquired 25 units of the IVECO S-WAY Natural Power 460 running on natural gas through the official IVECO dealer,

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Ginés Huertas Industriales. The Murcia-based company, which is a regular customer of the brand and had already acquired 15 IVECO Stralis NP 400 trucks in 2018, is committed to protecting the environment and has once again relied on IVECO’s sustainable range of NGVs to renew their fleet. The vehicle, powered by LNG, has a range of up to 1,600 kilometers and 460 HP. With a completely new cab, excellent fuel efficiency and advanced technology and connectivity, the IVECO S-WAY truck is a complete transportation solution that offers comfort to its drivers and competitiveness to its owners. In addition, it is a 100% connected truck that opens a new era in fleet management and on-board life. The IVECO S-WAY NP combines a low Total Cost of Ownership with low emissions. This is achieved with the exclusive HI-SCR aftertreatment system and thanks to the extraordinary fuel efficiency, resulting from modern Hi-Tronix engine and transmission technology, and numerous fuel saving solutions such as Smart EGR. For those haulers who prefer a green fleet, the IVECO S-WAY NP remains the only LNG-fueled truck offering a range of up to 1,600 km for long-haul missions with 460 HP. With this vehicle, operators will benefit from all the advantages of natural gas, the only immediate and low-emission alternative to diesel in the heavy vehicle segment, which emits 90% less NO2, 95% less particulate matter, and 95% less CO2 with the use of biomethane (well to wheel).

https://www.ngvjournal.com/s1-news/c3-vehicles/iveco-delivers-25-s-way-np-460-trucks-to-murcia-logistics-group/

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Rolande helps expand nationwide LNG refueling network in Germany

Rolande has opened a new LNG filling station at gates of the city of Dortmund. This way, Rolande makes a central contribution to reaching the ambitious climate goals in heavy goods vehicle traffic and

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establishing a nationwide LNG refueling network in Germany. The next Rolande LNG station in Lübeck is already in the works. Further locations, among others, in Grasdorf, Zeisar and Hamburg are planned in for this year.

While only four LNG stations operated in Germany overall in 2019, this figure increased to 43 as soon as by December 2020. It is supposed to double once more by the end of 2021 with the help of Rolande. The company operates exclusively public filling stations that can be used by any customer. “Despite the difficult and challenging year, we have maintained our vision to consistently push ahead with the expansion of our network and – thanks to our reliable partners – we have accomplished to open our first two locations in Germany,” said Jolon van der Schuit, CEO of Rolande. “Opening our third filling station is a milestone for our planned blanket-coverage LNG station network in Germany and Europe, and the start of a decisive year for us in building 10 further stations in Germany. The European Commission has set itself the goal of making the economy climate-neutral by 2030. We believe that the heavy goods vehicle traffic can reach this target as of 2025, and we want to help make this come true. It is becoming ever more important to work deliberately on this in light of the Climate Accord, the CO2 tax and the rising environmental awareness of consumers and businesses.”The station in Dortmund is located at an important traffic hub on B236 near Dortmund’s orbital motorway and it is a traditional public 24/7 self-serve petrol station with two LNG pumps and a capacity to guarantee the quick fueling of up to 150 vehicles per day without long waits. Owing to the large entry and exit, the filling station has the ideal dimensions for heavy goods trucks. By December 2023, trucks that run on compressed or liquefied natural gas continue to be exempt from road tolls in Germany. This makes for savings of up to 18.7 cents in road tolls per driven kilometer for the operators. LNG trucks are consequently not only sustainable but also attractive economically.

https://www.ngvjournal.com/s1-news/c4-stations/rolande-helps-expand-nationwide-lng-refueling-network-in-germany/

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Amazon will add over 700 natural gas trucks to U.S. delivery fleet

The coronavirus pandemic caused delivery activity to surge in 2020, with truck volumes exceeding 2019 levels on average while passenger car traffic fell. But that increase in road activity means more pollution,

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as heavier-duty trucks emit higher levels of greenhouse gases than passenger vehicles.

In this regard, Amazon.com has ordered more than 700 class 6 and class 8 trucks powered by CNG as it tests ways to shift its U.S. fleet away from heavier polluting trucks, the company told Reuters. The online retailer’s sales rose 38% in 2020; it plans to run a carbon neutral business by 2040. “Amazon is excited about introducing new sustainable solutions for freight transportation and is working on testing a number of new vehicle types including electric, CNG and others,” the company said in a statement.

For this new clean fuel heavy duty truck fleet that will run from warehouses to distribution centers, Amazon has also ordered more than 1,000 natural gas engines, which will be supplied by a joint venture between Cummins Inc. and Westport Fuel Systems Inc. These engines can operate on both renewable and non-renewable natural gas.

https://www.ngvjournal.com/s1-news/c3-vehicles/amazon-will-add-more-than-700-of-natural-gas-trucks-in-to-its-u-s-delivery-fleet/

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United States: Trillium announces third municipal NGV station in Ohio

Trillium has announced a partnership with METRO Regional Transit Authority in Akron, Ohio. Through this collaboration, Trillium has already begun operating and maintaining METRO’s

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natural gas fueling station. The facility is open 24/7 and features two CNG dispensers with dual hoses for light- and heavy-duty fueling. It will serve NGV fleets operating in and around Akron. “Trillium is excited to help METRO continue providing reliable clean energy fueling for its public transportation with the potential to grow its CNG fleet in the future,” said JP Fjeld-Hansen, vice president of Trillium. This is the third municipal CNG station completed or under construction in Ohio for Trillium. A station for the Greater Cleveland Regional Transit Authority was designed and built by the company, and a second transit authority station in Cleveland should be completed this fall. Trillium will also maintain that facility. Trillium operates over 200 CNG filling stations across the country, offering station design and build expertise, 24/7 operations and maintenance, grant writing and commercial assistance.

https://www.ngvjournal.com/s1-news/c4-stations/united-states-trillium-announced-third-municipal-natural-gas-station-in-ohio/

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LNG as a Marine Fuel/Shipping

SEA-LNG releases its 2021 Outlook for LNG

In SEA-LNG’s 2021 Outlook for LNG, ‘A View from the Bridge’, Peter Keller (SEA-LNG chairman) outlines the fundamental binary choice facing new-builds in 2021,

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as decarbonisation forces a choice between using LNG now, or retrofitting later. The report outlines how LNG as a marine fuel has moved from being a niche option to a mainstream fuel of the future. Instead of avoiding making a decision and waiting for technologies to develop in the future, LNG enables ship owners to reduce emissions now while protecting the future. According to SEA-LNG, bio-LNG is a “prime pathway to carbon neutrality”, and its gradual introduction alongside synthetic LNG will incrementally decarbonise shipping towards the IMO’s 2050 targets. As there is likely to be a basket of future marine fuels, comparison on a level playing field is critical. The report notes the need for lifecycle analysis with current data taking actual operational environments into account, and working with seafarers, ports, and port communities is essential. Specifically, the industry must make decisions on future fuels on a well-to-wake basis, looking at total emissions throughout the lifecycle of a fuel. According to the report, waiting is not an option for getting to zero. Going LNG represents a positive step down the decarbonisation pathway to carbon neutrality in marine fuels.

https://www.lngindustry.com/liquid-natural-gas/04022021/sea-lng-releases-its-2021-outlook-for-lng/

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Sumitomo, Petronas partner on LNG bunkering

Japanese trading house Sumitomo and Malaysia’s state-owned oil firm Petronas have signed an initial deal to jointly market and supply LNG as a bunker fuel in Tokyo bay in Japan and

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Malaysia, paving the way to leverage off each other’s LNG bunkering assets and infrastructure as demand for cleaner marine fuels grows. The collaboration will mean that Sumitomo will provide LNG bunkering and related services to Petronas’ shipping customers that call at the ports located within Tokyo bay, while Petronas will offer the same services to Sumitomo’s customers that call at the ports of Johor and Malacca. The rationale behind the agreement is the desire to expand the firms’ LNG bunkering reach beyond their respective markets without investing in additional bunkering assets or infrastructure. Malaysia’s southern ports and Tokyo bay are strategically important marine hubs for Sumitomo and Petronas as they look to build a comprehensive LNG bunkering network in Asia. The firms aim to supply cost-competitive LNG bunkering services in these targeted regions, with the market for LNG bunker supplies in Asia still in the early phase of development. Sumitomo sees LNG bunker demand, among Japanese shipowners in particular, growing in the coming years as shipowners strive to comply with the International Maritime Organisation’s goal for carbon emissions in the marine sector to reduce by 40pc by 2030 and by at least 50pc by 2050 against 2008 levels. It expects car carriers and bulk carriers that ply inter-regional routes to form the core of its LNG bunkering customer base and use services from a widened LNG bunkering network. Japan’s commitment to reach net-zero carbon emissions by 2050, as well as its transport ministry’s revised fuel efficiency rating system for coastal vessels, could see more shipowners switching to LNG as a marine fuel as part of efforts to reduce carbon dioxide emissions. Japanese shipping firm NYK Line has said it aims to gradually replace its massive fleet of car carriers with more environmentally friendly vessels, with plans to use alternative fuels such as LNG in all its newbuilds.

Sumitomo is targeting to begin ship-to-ship LNG bunkering operations in Tokyo bay from around mid-2021, which is when it expects its Ecobunker Tokyo Bay LNG bunker vessel to be fully commissioned. The Ecobunker Tokyo Bay has a storage of 2,500m³ and 1,500m³ for LNG and low-sulphur fuel oil respectively.Sumitomo will be responsible for sourcing LNG and marketing it to shipowners under the Ecobunker Shipping venture that it formed in 2018 with maritime logistics firm Uyeno Transtech, Yokohama-Kawasaki International port and the Development Bank of Japan.

Petronas completed its first domestic LNG bunkering operation at Pasir Gudang port in November last year, after taking delivery a month earlier of the 7,500m³ Avenir Advantage LNG bunkering vessel. The agreement with Sumitomo is the second agreement relating to LNG bunkering that Petronas has signed this week. It announced an initial agreement with Japan’s Jera on 9 February to work on the development of a green ammonia and hydrogen supply chain, which also covered collaboration on setting up a global LNG bunkering supply network. These agreements tie in with Petronas target to achieve operational net-zero emissions by 2050, with it seeking to employ more low-carbon and renewables-based solutions and advance emissions-reduction technology. Malaysia is a major LNG exporter and Petronas, its sole exporter, has access to LNG supplies from its 30 MMTPA Bintulu LNG and its 1.2 MMTPA Petronas Floating LNG 1 in Malaysia, as well through its 27.5pc stake and equity offtake arrangements with the 7.8 MMTPA Gladstone LNG in Australia. Japan is the world’s largest LNG importer, with imports totalling 74.3 MMT in 2000.

Source: LNG Global

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Technological Development for Cleaner and Greener Environment Hydrogen & Bio-Methane

Swedish hauler delivers components for Toyota Material Handling with bio-LNG truck

The choice of fuel is often determined by the customer’s environmental engagement. For Swedish hauler Skänninge Godstransporter the choice was simple since its primary customer,

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Toyota Material Handling Manufacturing Sweden, has switched to biogas in its production. So it currently operates a Scania R 410 on bio-LNG when delivering components for Toyota’s production of hand trucks and electric warehouse trucks in Mjölby, Sweden. “Operating on biogas was a requirement by them,” said Gunnar Svensson, Managing Director, Skänninge Godstransporter. “That customers stipulate environmental terms is becoming more common in the industry. That fits us well.” Skänninge Godstransporter appreciates Scania’s Otto engine gas solution, which ensures low noise and only having to fill the tank with LNG without adding AdBlue or diesel. “The truck runs nicely and smoothly, altogether very pleasant. We fill up at the liquefied biogas station here in Mjölby. You need safety glasses, gloves and to carry out the procedure in the right order. But then the filling operation is quick,” added Svensson. Scania’s LNG-powered trucks can be ordered with two tanks for a total range of 1,600 km. Skänninge has opted for a single tank since the company only averages 300 km per day.

https://www.ngvjournal.com/s1-news/c3-vehicles/swedish-hauler-delivers-components-for-toyota-material-handling-with-bio-lng-truck/

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First hydrogen station for long-range fuel cell vehicles opens in Spain

The new facility, located inside the San Antonio service station, located on Manoteras Avenue in Madrid, was launched thanks to the collaboration between five leading companies from different sectors:

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Enagás (through Scale Gas, startup born from the Enagás Emprende program), Toyota España, Urbaser, Carburos Metónicos, Sumitomo Corporation Spain and the Spanish Confederation of Service Station Entrepreneurs (CEEES). The filling station allows the supply of hydrogen at 700 bar/MPa, which makes it a pioneer in Spain: it is the first to offer hydrogen at such a high pressure, thus allowing to refuel the tanks of the latest generation fuel cell vehicles. It has a supply capacity of up to 10 kg of hydrogen per day, with a purity greater than 99.98%. In addition, it will supply green hydrogen, generated from renewable energy. A fleet of 12 Toyota Mirai, distributed among the different companies that have collaborated to develop the new Madrid station, will demonstrate the viability of hydrogen as a valid energy source for day to day: the refueling process is equivalent to that of a car powered by a traditional fuel – less than 5 minutes -, offering a maximum power of 155 HP and a range of around 550 km. All the companies that are part of the consortium are committed to hydrogen as the energy not only for the future but also for the present. In this context, Enagás and CEEES have signed a collaboration agreement for the deployment of hydrogen refueling facilities, so that in the coming years a dense refueling network can be established allowing the circulation of fuel cell vehicles such as the Toyota Mirai throughout Spain. “This hydrogen station, the first in Spain at 700 bars, is the result of a pilot project started two years ago by a consortium of companies, all of them committed to the energy transition from different areas. The common commitment to entrepreneurship and innovation, the promotion of industry and employment in Spain, as well as the willingness to collaborate and co-investment have been key factors that have allowed us to open this pioneering facility in our country today,” said Marcelino Oreja, CEO of Enagás. Miguel Carsi, president and CEO of Toyota Spain, commented: “Toyota’s global vision includes hydrogen as a fundamental pillar, on which a very important part of the strategy is based to become a 100% zero emissions mobility provider. The Toyota Environmental Challenge 2050 aims to contribute positively to minimizing the impact of environmental changes and to help build a sustainable society by eliminating CO2 emissions from vehicles, operations and the supply chain. And for this, hydrogen and vehicles like the Toyota Mirai will be essential. With the inauguration of this hydrogen station, the first at 700 bars in Spain, we promote hydrogen as energy not only for the future but also for the present, showing that it can and should be a key energy vector in our country.”

https://www.ngvjournal.com/s1-news/c4-stations/first-hydrogen-station-for-long-range-fuel-cell-vehicles-opens-in-spain/

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Navistar and General Motors plan to develop hydrogen truck ecosystem

In collaboration with General Motors and OneH2, Navistar, Inc. is introducing a complete solution for customer implementation of a zero-emission long-haul system, which will be initially piloted by J.B. Hunt Transport, Inc.

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“Hydrogen fuel cells offer great promise for heavy duty trucks in applications requiring a higher density of energy, fast refueling and additional range,” said Persio Lisboa, Navistar president and CEO. “We are excited to provide customers with added flexibility through a new hydrogen truck ecosystem that combines our vehicles with the hydrogen fuel cell technology of General Motors and the modular, mobile and scalable hydrogen production and fueling capabilities of OneH2. And we are very pleased that our valued customer J.B. Hunt has committed to utilize the solution on dedicated routes and to share key learnings,” added Lisboa. Navistar plans to make its first production model International® RH™ Series fuel cell vehicle commercially available in model year 2024. Test vehicles are expected to begin the pilot phase under the new, complete solution at the end of 2022. The integrated solution will be competitive with other powertrain offerings with a target range of 500+ miles and a hydrogen fueling time of less than 15 minutes. The International® RHTM Series fuel cell vehicle will get its energy from two GM Hydrotec fuel cell power cubes. Each Hydrotec power cube contains 300-plus hydrogen fuel cells along with thermal and power management systems. They are compact and easy to package into many different applications. The combined propulsion system within the International® RHTM Series will feature better power density for short-range travel, better short-burst kW output and a per-mile cost expected to be comparable to diesel in certain market segments. “GM’s vision of a world with zero emissions isn’t limited to passenger vehicles,” said Doug Parks, GM executive vice president of Global Product Development, Purchasing and Supply Chain. “We’re thrilled to work with like-minded companies like Navistar and OneH2 to offer a complete solution for progressive carriers that want to eliminate tailpipe emissions with a power solution that can compete with diesel.”

Under its partnership agreement with Navistar, OneH2 will supply its hydrogen fueling solution, which includes hydrogen production, storage, delivery and safety. In addition, Navistar is taking a minority stake in OneH2. Through its affiliates, OneH2 plans to kickstart substantial hydrogen heavy truck refueling infrastructure by incorporating more than 2,000 International® RH™ Series vehicles into existing truck fleets in the near term. Paul Dawson, OneH2 president and CEO, commented: “We believe strongly that hydrogen fuel is the future of zero- emission renewable energy in the heavy truck market, and are pleased that this agreement will provide additional scope for its application. Under this agreement, we will be able to offer fleets a zero-emission truck with total cost of operation lower than diesel in key segments of the industry.”

https://www.ngvjournal.com/s1-news/c7-lng-h2-blends/navistar-and-general-motors-plan-to-develop-hydrogen-truck-ecosystem/

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U.S. largest bus fleet chooses bioCNG to speed up path to zero emissions

Clean Energy Fuels Corp. announced that the Los Angeles County Metropolitan Transportation Authority (Metro) has signed a new agreement for an estimated 47.5 million gallons of

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its renewable natural gas to fuel the nation’s largest transit bus fleet. This agreement will mark the completion of Metro’s 5-year goal to transition its diesel fleet to cleaner, low-carbon fuel, with 2,400 buses now running on biomethane. The fueling contract resulted from a competitive RFP process, with Metro awarding Clean Energy three fueling depots for a five-year term, with an option to extend up to three additional years. Clean Energy already delivers renewable natural gas to five additional Metro fueling depots under a previously awarded fuel agreement. Over the 5-year period, the transition to biomethane will further reduce Metro’s greenhouse gas (GHG) emissions compared to the use of conventional natural gas, driving down the agency’s Scope 1 emissions. “Metro continues to lead public transportation as one of the cleanest fleets in the US, with nearly 22 million gallons of renewable natural gas delivered since 2017,” said Clean Energy Renewables Senior Vice President, Nate Jensen. “With this additional commitment to fuel with renewable natural gas, Metro is accelerating its path to net zero carbon emissions.”

https://www.ngvjournal.com/s1-news/c4-stations/u-s-largest-transit-bus-fleet-chooses-biomethane-to-speed-up-path-to-zero-emissions/

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Spain: Naturgy plans to build almost 40 hydrogen filling stations by 2025

Naturgy presented to the Ministry of Ecological Transition and Demographic Challenge; to the Ministry of Industry, Commerce and Tourism and to the Ministry of

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Science and Innovation of the Government of Spain a project for the construction of 38 hydrogen stations nationwide that seeks to provide refueling service to the urban and interurban transport and thus promote sustainable mobility in the Iberian Peninsula. In a second phase, the total infrastructure to be developed will reach 120 refueling facilities. The initiative proposes two models of service stations in its first phase: 20 facilities with on-site hydrogen production by means of an electrolyzer or an external plant; and 18 facilities without on-site production. In all of them, hydrogen will be supplied through a pump adapted to the needs of the vehicles. The 38 refueling points will be distributed throughout the national geography, taking advantage of the company’s hydrogen production centers located in La Robla, Meirama, Valencia, Palos and Alcázar de San Juan. The stations will be located in Andalusia, Castilla-la Mancha, Castilla y León, Catalonia, Community of Madrid, Galicia, Valencian Community, Region of Murcia, Aragon, Navarra, Extremadura, Balearic Islands, Asturias, Cantabria and Basque Country. The company estimates that it will have the 38 hydrogen stations in operation before 2025, although 80% of them will be open between 2023 and 2024. The sizing of the stations was carried out based on a potential annual demand of about 75,500 kg of hydrogen, equivalent to the refueling of 13 buses or 100 light vehicles. Subsequently, it will be evaluated that these facilities can supply rail transport in the national network. The deployment of this infrastructure represents an innovation, since it will allow to meet the development needs of sustainable mobility and increase the European hydrogen station network. On the other hand, at an environmental level, the use of the new technologies proposed by this project implies a reduction in emissions compared to conventional technologies. Naturgy estimates a non-renewable primary energy saving of 124 GWh/year and an emission reduction of more than 30,000 tons of CO2 per year.

https://www.ngvjournal.com/s1-news/c4-stations/spain-naturgy-plans-to-build-almost-40-hydrogen-filling-stations-by-2025/

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