NGS’ NG/LNG SNAPSHOT Jan 1-15, 2025
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NATIONAL NEWS
City Gas Distribution & Auto LPG
Confidence Petroleum India commissions five new CNG stations in Bangalore
Confidence Petroleum India Limited (CPIL) has announced the setting up of five CNG stations in Bangalore. CPIL, in collaboration with GAIL, is dedicated to realizing its vision of transforming Bangalore into a green city.With the commissioning of additional five CNG stations,
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CPIL continues to demonstrate its commitment to this cause.Out of the 100 stations that the company plans to set up in the city, having achieved our target of 45 stations within a short timeframe underscores our steadfast dedication to fostering a cleaner and more sustainable future.By setting elevated benchmarks for ourselves and the industry at large, the company played a pivotal role in facilitating Bangalore’s transition to cleaner fuel sources, mirroring the successful models observed in cities such as Delhi and Mumbai.
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Govt boosts gas supplies to CGD companies, stocks rise
Shares of City Gas Distribution (CGD) companies including Indraprastha Gas, Mahanagar Gas and Gujarat Gas rallied up to 6% on Friday, recovering from day’s low levels after the oil ministry has slashed allocation of natural gas used for LPG production and diverted it to city gas retailers to meet a part of their requirement for CNG and piped cooking gas supplies.
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Share prices of Indraprastha Gas rose by as much as 6.19% on Friday to a high of Rs 453.35 on the BSE, while that of Mahanagar Gas gained 2.5%. Shares of Gujarat Gas also rose by nearly 2%. Shares of Indraprastha Gas closed at Rs 441.20 apiece, up 3.35% from its previous close and that of Mahanagar Gas closed at Rs 1,316, up 1.53% from previous close. Shares of Gujarat Gas closed at Rs 514.15, up 1.2% from previous close.
As reported by PTI, the oil ministry has ordered a cut in gas supplied to state-owned GAIL and Oil and Natural Gas Corporation (ONGC) for production of LPG and diverting those volumes to city gas entities.
Out of a total 2.55 million standard cubic meters per day of gas usage for LPG production, 1.27 mmscmd (0.637 mmscmd each for GAIL and ONGC) has been ordered to be diverted for consumption in the CNG/piped cooking gas segment in January-March quarter, according to the report.
The report further stated that GAIL and ONGC will have to use either higher-priced gas produced from new fields or rely on imported liquefied natural gas (LNG) to replace the lost volumes. The ministry also ordered pro-rata allocation of gas from new wells and earmarked ONGC’s Ramnad field for the city gas sector, which will make available about 1.7-2 mmscmd of gas to city gas retailers, according to the order.
The government in October and November last year had cut supplies of domestic gas to city gas retailers by as much as 40% in view of limited output leading city gas retailers to hike CNG prices by Rs 2-3 per kg. The hike in CNG prices made it less attractive than alternate fuels like petrol and diesel.
“To resolve this, the Ministry of Petroleum and Natural Gas in a December 31 order rejigged some allocations of gas produced from below ground and undersea,” the report said.
After reducing the allocation of Administrative Price Mechanism (APM) gas for the CNG segment for two consecutive months, the share of domestic gas allocation for CNG sales has declined from over 85% in the beginning of FY24 to over 72% now, being the biggest single cut in such allocations. The industry believes that there could be further deallocation of APM gas to the CGD entities given its lower availability.
Further reductions in low-cost domestic gas allocation for the CGD sector is also likely to impact their margins in the short term, because passing the complete price hike could impact the vehicle conversion volumes, according to India Ratings.
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Natural Gas/ Pipelines/ Company News
MGL, IGL: Gas stocks mixed after govt hikes domestic gas allocation
Gas stocks were a mixed bag in Friday’s (January 10, 2025) trade after state-owned GAIL (India), the nodal agency for domestic gas allocation, informed the Administered Price Mechanism (APM) price has been revised which will be effective January 16, 2025. The announcement was made in the last hour of trading on Thursday.
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APM gas is natural gas sold at a government-regulated price, significantly lower than market rates. It is allocated to various sectors, including city gas distributors, to ensure affordability for essential services like CNG and piped natural gas (PNG). A reduction in APM gas allocation forces companies to buy more expensive gas on the open market, potentially driving up prices for consumers.
Around 1:31 PM, Mahanagar Gas (MGL) shares were up 2.21 per cent at Rs 1,301.3 per share, Indraprastha Gas (IGL) was down 0.01 per cent at Rs 4,18.65 per share and Adani Total Gas shares were down 0.39 per cent at Rs 679.3 per share on BSE. In comparision, the BSE Sensex was down 0.07 per cent at 77,562.73. In two days, MGl shares have gained over 3 per cent, IGl shares over 2 per cent, while, Adani Total Gas has lost over 4 per cent.
For Mahanagar Gas, Gail made an upward revision in the APM price by 26 per cent which will be effective from January 16, 2025, thus, increasing allocation for compressed natural gas (CNG) from 37 per cent to 51 per cent.
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Gas Pipeline Stock, GAIL increases domestic gas allocation of IRM Energy by 29%
The nodal agency of domestic gas allocation, GAIL (India) Limited has announced a 29% increase in the domestic gas allocation to IRM Energy Limited which will be effective from January 16, 2025, and this revision will raise the share of domestic gas in the CNG segment from 37% to 51%.
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The company stated that the revised allocation will positively impact its profitability. Shares of IRM Energy were trading flat at Rs 340.60, down 0.39%, on the BSE. The company’s stock hit a new 52-week low of Rs 335.50 on January 10, 2025.
IRM Energy, a small-cap entity in the gas transmission and marketing sector, views this revision as a significant step towards enhancing profitability in a challenging market environment.
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Indian Gas Exchange ties up with Europe’s CEGH to enhance natural gas trading
New Delhi: Indian Gas Exchange Ltd (IGX) has signed a memorandum of understanding (MoU) with Central European Gas Hub AG (CEGH), a gas hub operator in Central and Eastern Europe (CEE), to explore collaborative opportunities in trading of natural and renewable gases.
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Renewable gases include green hydrogen, biomethane and e-methane that can be used in place of fossil fuels.
A statement issued by the two entities jointly on Friday said that the partnership aims to strengthen India’s gas market by leveraging CEGH’s European market expertise and IGX’s deep expertise in the Indian gas market.
Key focus areas of the MoU include trading of natural gas and renewable gases like hydrogen, biomethane, and e-methane, commodity-related certificates, market development, training programs and gas-hub operations.
Focusing on
Further, both the companies would also collaborate on best practices for the operation of natural gas trading focusing on enhancing the technical, operational and regulatory capabilities. Insights from the Indian and European gas markets will be utilized and international best practices shared, facilitating the creation of a liquid and transparent gas market, the statement said.
IGX and CEGH also plan to explore the development of trading platforms for emerging green gases like hydrogen, biomethane along with trading of green gas certificates. Both parties will also work together to support gas hub operations in India.
Rajesh Kumar Mediratta, MD & CEO, IGX, said: “By partnering with CEGH, we aim to draw from the experience in Europe to accelerate the development of India’s gas market and expand the role of renewable gases in our energy mix. This partnership will enable us to co-develop innovative solutions for natural gas and renewable gas trading, strengthen market efficiency and enhance energy security.”
Gottfried Steiner, CEO, Central European Gas Hub, said: “We will support with our profound expertise on regulatory frameworks for gas trading and market liberalization, trading facilities, as well as gas hub development and operation.”
Central European Gas Hub is the operator of the virtual trading point (VTP) in Austria and provides a gas nomination platform for international gas companies.
As part of the MoU, the parties will also develop tailored training programs, workshops, and certification courses to upskill market participants, regulators and stakeholders in India. In addition to the provision of training, commercial opportunities for market expansion and innovation-driven products shall also be explored.
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Petronet LNG: Street may await clarity over possible policy changes
A new consultation paper from the Petroleum and Natural Gas Regulatory Board (PNGRB), ‘Optimising LNG supplies from terminals in India’, indicates that Petronet LNG faces regulatory risk, due to the regulator wishing to control regasification tariff. At the moment, these are levied by agreements between the operator and customer. The change would require amendment to the PNGRB Act but may or may not occur.
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If it does, it reduces Petronet’s pricing power. If tariff regulation does occur, it may also inhibit investment into liquefied natural gas (LNG) terminals. There is 95-100 per cent utilisation at Petronet’s Dahej terminal. But other terminals are under-utilised. Some third parties have complained they cannot access the Dahej terminal and there is poor pipeline connectivity for other terminals. PNGRB argues that larger capacity (and high utilisation) should lead to a reduction in regasification tariffs but terminals with lower utilisations are charging similar tariffs to Dahej.
On its part, Petronet LNG claims the Dahej regasification tariff is the lowest in India, and LNG regasification charges are just 5-6 per cent of delivered gas prices to customers. Petronet LNG promoters are also major off-takers for Qatar and Gorgon contracts. Hence, limited volume is left for other terminals. Most LNG volumes are sold to state-owned entities like fertiliser plants (gas cost is pass-through). The report also argues for separation of ownership of terminals and marketing entities. There are seven operating LNG terminals, with a cumulative capacity of 48 million metric tonnes per annum (mmtpa) and a cumulative investment of Rs 37,000 crore.
Given LNG imports of 21.4 mmtpa, overall utilisation was just 50 per cent in FY24. Dahej and Hazira terminals have 98 per cent and 67 per cent capacity utilisation over FY16-FY23. All other terminals have utilisation of 26 per cent. The high utilisation at Dahej is driven by good pipeline connectivity and proximity to Gujarat where gas demand is strong. Even if regasification charges at Dahej terminal are controlled, there may not be utilisation benefits for other terminals until pipeline infrastructure improves and capacity at other terminals scales up. There is LNG regasification capacity of 47.7 mmtpa. Under-construction and planned projects could take it to 87 mmtpa but expected LNG import demand is 56 mmtpa. The new capacity includes 5 mmtpa each at Dahej and Charra, which will be available within a few months. PNGRB says Petronet hikes regasification by around 5 per cent every year. PNGRB proposes it should have regulatory oversight over regasification (and other charges of LNG terminals), to ensure availability to customers at reasonable rates, and increase utilisation of all terminals. Given policy emphasis on gas usage at affordable prices, the recommendation may be seen favourably.
Apart from regasification tariffs, some terminals also charge high gas handling costs and LNG truck loading charges equal to the regasification tariff, and also negotiate destination-specific contracts. Gas traffic from West Coast to East Coast leads to higher compression costs for GAIL, which recovers the tariffs from customers. PNGRB claims customers complain about unreasonable regasification tariff for third parties (which are not Petronet stakeholders), difficulty in getting access to third-party cargoes and lack of real-time information, among others. If acted upon, the report would weaken the pricing power of Petronet. The revised 7.5 mmtpa Qatar contract starting 2028 has destination flexibility and the entire volume may not be delivered at Dahej. Investors may be cautious until policy responses to the report are known.
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Policy Matters/ Gas Pricing/ Others
Govt Hikes IGL’s Domestic Gas Allocation By 31%
The government has increased the allocation of subsidised domestic gas to city gas distributor Indraprastha Gas (IGL) by 31 per cent, a move expected to enhance the company’s profitability, as stated in its regulatory filing.
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In a media release received from GAIL (India), the nodal agency for domestic gas allocation, IGL was informed of the revised allocation, effective from 16 January 2025. “The domestic gas allocations to IGL have been revised upwards by 31 per cent, increasing the share of domestic gas in the compressed natural gas (CNG) segment from 37 per cent to 51 per cent,” the company said.
Additionally, IGL has secured about 1 million metric standard cubic metres per day (MMSCMD) of regasified liquefied natural gas (RLNG) at competitive prices, further stabilising its input costs and boosting its supply capacity.
In recent months, the government had reduced the allocation of cheaper domestic gas to city gas companies, leading to higher input costs and temporary supply disruptions for CNG retailers. The reduced allocations also weighed on the stock prices of companies in the sector.
IGL noted that the increased allocation and the additional RLNG volumes would positively impact its profitability.
Following the announcement, shares of IGL, valued at approximately Rs 29,300 crore, closed 2.7 per cent higher on Thursday, outperforming the benchmark Sensex, which ended 0.7 per cent lower. Despite the gain, IGL shares have declined nearly 25 per cent over the past three months.
https://www.businessworld.in/article/govt-hikes-igls-domestic-gas-allocation-by-31-544494
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Centre raises supply of cheap gas to stave off CNG price hike in Delhi ahead of polls
NEW DELHI: Supply of cheap gas from legacy fields to Indraprastha Gas Ltd (IGL) will rise 31%, a move that will stave off an increase in CNG (compressed natural gas) prices in Delhi and its immediate suburbs in the run-up to the assembly polls.
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Central gas aggregator GAIL will raise supplies from January 16 as additional volumes of legacy gas freed up by the Centre for city gas operators becomes available. This will raise the share of legacy gas from 37% to 51% for IGL’s CNG segment, mitigating the losses resulting from two rounds cuts — 21% in October and 20% in November.
It will have a positive impact on profitability, IGL informed stock exchanges on Thursday. The company’s share closed 3% higher at Rs 418.7 after hitting the day’s high at Rs 419 on the National Stock Exchange.
IGL, Mumbai’s MGL and Adani-Total Gas pressed the government for green signal to raise CNG prices because the reduction in legacy gas volumes began pinching their margins as input costs rose from costlier supplies used for bridging the shortfall.
But as the development came just ahead of the Maharashtra election, MGL did not get the green light. IGL was also in the same boat. It was only after MGL raised CNG prices days after the Maharashtra election that IGL — and others — revised prices in cities other than Delhi, which is going to polls in February.
IGL had been running up losses of Rs 6/7 per Kg after the reductions in legacy volumes as share of costlier gas rose. Gas produced from fields given to public sector oil companies without bidding cost less than imported supplies (LNG) or auctioned fields as the government controls the pricing and distribution.
While PNG (piped natural gas) service is maintained fully with government-controlled gas, the allocation for the CNG segment varies in accordance with variation in production. The shortfall in cheap gas is bridged with costlier LNG, often bought from the spot market, leading to losses in the absence of consumer price revision.
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10.33 Crore Connections Released Under PMUY By Ministry Of Petroleum And Natural Gas
The Ministry of Petroleum & Natural Gas is concerned with exploration and production of Oil & Natural Gas, refining, distribution and marketing, import, export and conservation of petroleum products. Oil and Gas being the important import for our economy, many initiatives have been taken by the Ministry for increasing production and exploitation of all domestic petroleum resources to address the priorities like Energy Access, Energy Efficiency, Energy Sustainability and Energy Security.
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The progress of various schemes undertaken by Ministry in last one year is shares as follows:
PRADHAN MANTRI UJJWALA YOJANA (PMUY)
Ujjwala is today a 10.33 crore strong family
Since the inception of the Scheme about 222 crore LPG refills have been delivered to the PMUY households. Also about 13 lakh refills are being taken daily.
A targeted subsidy of Rs. 300/cylinder is being given to all Ujjwala beneficiaries.
Government’s efforts have led to uptick in LPG consumption by Ujjwala families. Per Capita Consumption, terms of number of 14.2 kg domestic LPG cylinder, has gone up from 3.01 in 2019-20 to 3.95 in 2023-24. In current year, which is still under progress, the PCC (per capita consumption) has reached 4.34 (Pro-rata basis refills till October 2024).
LPG COVERAGE
Since April 2014, the number of LPG connections have gone up from 14.52 crores to 32.83 crores (as on 01.11.2024), a growth of above 100 %.
As on 01.11.2024, approx. 30.43 crore LPG consumers are enrolled under the PAHAL scheme. Till date, more than 1.14 crore customers have given up their LPG subsidy under ‘GiveltUp’ campaign.
Since 2014, LPG Distributors have increased from 13,896 to 25,532 as on 01.11.2024 enhancing LPG access and availability. It is worth mentioning that more than 90 % of new distributors are catering to rural areas.
FACILITIES
Under Promotion of Digital Payment infrastructure at Retail Outlets (ROs), as on 01.12.2024, 1,03,224 e-wallet facilities have been provided at 84,203 ROs across the country. 84,203 ROs have been enabled with BHIM UPI.
Under Swachchh Bharat Mission, toilet facilities are ensured at every retail outlets. As on 01.12.2024, 83618 ROs have toilet facility which includes 66026 ROs having separate toilet facility for male and female.
As on 01.12.2024, Oil Marketing Companies (OMCs) have commissioned total 3,097 Door to Door Delivery (DDD) Bowsers through Dealers and Start-ups.
Electric Vehicle Charging Stations (EVCS) are being provided at Oil Marketing Companies (OMCs) ROs. As on 01.12.2024, OMCs have installed 17,939 EV charging stations and 206 battery swapping Station across India.
NATURAL GAS PIPELINES
The length of operational Natural Gas Pipeline in the country has increased from 15,340 Km in 2014 to 24,945 Kms as on 30.09.2024. Further, development of about 10,805 Kms Natural Gas Pipeline is under execution. With the completion of these pipelines authorized by PNGRB/GoI, the national gas grid would be completed and would connect all major demand and supply centre in India. This would ensure easy availability of natural gas across all regions and also help to achieve uniform economic and social progress.
UNIFIED PIPELINE TARIFF
The Petroleum and Natural Gas Regulatory Board (“PNGRB”) has amended PNGRB (Determination of Natural Gas Pipeline Tariff) Regulations to incorporate the regulations pertaining to Unified Tariff for natural gas pipelines with a mission of “One Nation, One Grid and One tariff”.
PNGRB has notified a levelized Unified Tariff of Rs.80.97/MMBTU w.e.f. 01.07.2024 and created three tariff zones for Unified Tariff, where the first zone is up to a distance of 300 kms from gas source, second zone is 300 – 1200 kms and third zone is beyond 1200 kms.
The national gas grid covers all the interconnected pipeline networks owned and operated by entities viz. Indian Oil Corporation Limited, Oil and Natural Gas Corporation Limited, GAIL (India) Limited, Pipeline Infrastructure Limited, Gujarat State Petronet Limited, Gujarat Gas Limited, Reliance Gas Pipelines Limited, GSPL India Gasnet Limited and GSPL India Transco Limited.
The reform will specially benefit the consumers located in the far-flung areas where currently the additive tariff is applicable and facilitate development of gas markets and vision of government to increase the gas utilisation in the country.
CITY GAS DISTRIBUTION (CGD) COVERAGE
PNGRB has authorized 307 Geographical Areas for development of CGD infrastructure with a potential coverage of about 100% of country’s area and 100 % of the population. As on 30.09.2024, the total number of PNG (D) connections and CNG Stations in the country was 1.36 Cr and 7259, respectively.
SATAT INITIATIVES
SATAT initiative was launched on 1st October 2018, to promote an ecosystem for production and utilization of Compressed Bio Gas (CBG).
· As on 30.11.2024, 80 CBG plants have been commissioned and 72 CBG plants are at various stages of construction.
- The Ministry has issued guidelines for synchronization of CBG with CNG in CGD Network;
- A scheme for the development of pipeline infrastructure (DPI) for injection of CBG into the City Gas Distribution (CGD) network has been launchedto provide financial support for extending pipeline connectivity from CBG plant to the city gas distribution grid.
- Online portal for receiving application under DPI Scheme has been activated w.e.f. 1st September, 2024.
- Ministry has also issued detailed guidelines for procurement of Biomass Aggregation Machinery (BAM) on 2nd February 2024. The Scheme envisages financial support to the CBG producers for procuring Biomass Aggregation Machineries.
- Government has announced phase wise mandatory selling of CBG in CNG (T) and PNG (D) segment of CGD network to promote the production and utilization of CBG.CBG Obligation (CBO) is presently voluntary till FY 2024-2025 and mandatory selling obligation would start from FY 2025-26. CBO shall be kept as 1%, 3% and 4% of total CNG/PNG consumption for FY 2025-26, 2026-27 and 2027-28 respectively. From 2028-29 onwards CBO will be 5%.
REVIEW DOMESTIC GAS ALLOCATION FOR CGD ENTITIES
To cater the growing demand of CGD sector and to protect the common people from price volatility, the Government has released new CGD sector Gas allocation Guidelines wherein the allocation of PNG (Domestic) segment was increased (i.e. 105% of PNGD consumption in the previous quarter) and balance available volume to be supplied to CNG (T) segment on prorate basis.
The revised methodology has been helpful for the CGD entity as the lag between the allocation and reference period has been reduced from average of 6 months to average of 3 months which reflects a more realistic consumption data.
DOMESTIC GAS PRICING
Revised guidelines have been issued in April 2023 for gas produced from nomination fields of ONGC/OIL, New Exploration Licensing Policy (NELP) blocks and pre-NELP blocks, where Production Sharing Contract (PSC) provides for Government’s approval of prices.
The price of such natural gas shall be 10% of the monthly average of Indian Crude Basket and shall be notified on a monthly basis and shall have a floor and a ceiling.
The reduced gas price shall positively impact the domestic, Fertilizer and power consumers.
BIO FUELS AND ETHANOL BLENDING
Under Ethanol Blended Petrol (EBP) Programme, supplies of ethanol has increased from 38 crore litres in Ethanol Supply Year (ESY) 2013-14 to 707.40 crore litres in ESY 2023-24, thereby achieving an average blending of 14.60% ethanol in Petrol. For the ongoing ESY (2024-2025), Ethanol blending have further improved to 16.23% as on 29.12.2024. The Public Sector OMCs have started dispensing E20 petrol (20% ethanol in petrol) at more than 17,400 retail outlets across the country.
In the last ten years, EBP programme has translated into forex impact of over Rs.1,08,600/- crore, net CO2 reduction of 557 Lakh Metric Tonnes (LMT) and expeditious payment to farmers to a tune of over Rs. 92,400/- crores.
During April to November 2024, OMCs have procured 36.68 crore litres of biodiesel for the bio-diesel blending programme as against 29.25 crore litres during April to November 2023.
Green Hydrogen: Oil & Gas PSU have planned for 900 KTPA Green Hydrogen Projects (EPC & BOO mode) by 2030. 42 KTPA tenders have been floated by PSU refineries, which are likely to be awarded by March 2025. Approximately 128 KTPA tenders will be issued by PSU refineries based on the outcome of the ongoing tenders.
The Government has set an indicative target of 1%, 2% and 5% blending of SAF in Aviation Turbine Fuel (ATF) initially for international flights with effect from 2027, 2028 and 2030, respectively.
The PM JI-VAN Yojana has been amended vide notification dated 21.08.2024, incorporating key changes, such as Inclusion of advance biofuels in place of “2G ethanol.”, Eligibility for bolt-on and brownfield projects and Extension of the scheme’s timeline up to FY 2028-29.
REFINING CAPACITY
The country has 22 operating refineries with a total refining capacity of 256.8 Million Metric Tonnes Per Annum (MMTPA).
Eighteen refineries are in public sector, three are in private sector and one as a joint venture. Out of the total refining capacity of 256.8 MMTPA, 157.3 MMTPA is in the public sector, 11.3 MMTPA in joint venture, and the balance 88.2 MMTPA is in the private sector.
Further, refining capacity is likely to increase from 256.80 MMTPA to 309.50 MMTPA by 2028 on account of refinery capacity expansion projects being implemented in 11 PSU refineries as well as setting up of new grassroot refinery.
EXPLORATION AND PRODUCTION
Hydrocarbon Exploration Licensing Policy (HELP): To exploit the huge potential of oil and gas in Indian sedimentary basins, the government launched the Open Acreage Licensing Program (OALP) as a part of the Hydrocarbon Exploration Licensing Policy (HELP) in March 2016. The new exploration policy provides for a paradigm shift from Production Sharing Contract (PSC) regime to Revenue Sharing Contract (RSC) regime. Total 144 blocks covering more than 2,42,056 Sq. Km. area have been allocated to the companies in eight concluded OALP Bid Rounds with committed investment of ~ 3.137 billion USD. Till date, 13 hydrocarbon discoveries have been made in blocks awarded under OALP and one discovery is already producing gas (0.44 MMSCMD) in Gujarat while other discoveries are under appraisal phase. Further in round IX of OALP, area of approximately 1,36,596 Sq. Km. spread over 8 sedimentary basins was offered and the same has received a very good response from the bidders. The bids received are under evaluation and Blocks will be awarded to successful bidders very soon. Thereafter, an area of 1,91,986.21 Sq. Km. have been finalized for International Competitive Bidding in OALP Bid Round-X.
Further, a total of 741 (132 exploratory and 609 development) wells have been drilled in FY 2023-24. The gas production has increased from 34.45 BCM in FY 2022-23 to 36.44 BCM in FY 2023-24. A total of 12 discoveries have been made in nomination and contractual regimes in FY 2023-24. A total of 16645.31 LKM of 2D seismic and 15701.17 SKM of 3D seismic surveys have been conducted during FY 2023-24. Moreover, during FY 2023-24, under Airborne Gravity Gradiometry and Gravity Magnetic Survey (AGG & GM) Survey, a total of 42,944 Flight LKM 2D Seismic Data was also acquired.
Discovered Small Field Policy (DSF) Policy: Government introduced DSF Policy in Year 2015. Three Rounds of DSF Bidding concluded till date and 85 Contracts signed whereas 55 Contracts are currently active. 5 fields are on Production and cumulative production till March 2024 is 520 Mbbl Oil and 138 MMSCM Gas. DSF Rounds has brought 15 New Players.
CBM in India: With 15 Blocks and a production rate of 1.8 MMSCMD, CBM has achieved a cumulative production of ~6.38 BCM, with more than USD 2.46 billion investment received till date. More blocks are being identified for offer in future bid rounds.
No-Go areas opened for E&P: Around 99% of erstwhile ‘No-Go’ area of the Exclusive Economic Zone (EEZ) which were blocked exploration for decades have been opened for E&P. After the release of ‘No-Go’ areas, so far bids/expression of interests for 1,52,325 Sq. Km. area have been received. Two gas discoveries have also been made by ONGC in Mahanadi offshore recently in a block having 94% area in ‘No-Go’ area. Andaman offshore area has also been opened for exploration and production activities after a long-time post removal of restrictions imposed by defense and space agencies.
Government Funded Programs for E&P: The Government is committed to increase exploration in Indian sedimentary basins. An investment of around Rs. 7,500 crore is planned for acquisition of new seismic data, including that of the Exclusive Economic Zone (EEZ), financing stratigraphic wells and acquiring aerial survey data in difficult terrains in the recently launched Mission Anveshan and Extended Continental Shelf Survey Schemes.
Stratigraphic Wells: Four offshore stratigraphic wells in Category-II and Category-III basins, namely Mahanadi, Bengal, Saurashtra and Andamans, with the outlay of Rs 3200 crores will help us understand the sub surface geology better in these basins where prospectivity is yet to be commercially established. [figure Rs.3200 crore is included in the figure of Rs.7500 crore mentioned in the above point]
National Data Repository: In July 2017, Government of India has set up an E&P data bank, National Data Repository (NDR), with state-of-the-art facilities and infrastructure for preservation, upkeep and dissemination of data to enable its systematic use for future exploration and development. Having an NDR for India has helped in enhancing prospects of petroleum exploration and facilitating the Bidding Rounds by improving the availability of quality data. National Data Repository (NDR) is being upgraded to a cloud based NDR, which will enable instant dissemination of seismic, well and production data. The project is expected to be completed by the end of this financial year.
National Seismic Program: Government formulated National Seismic Programme (NSP) in October, 2016 to appraise the unappraised areas in all sedimentary basins of India where no/scanty data was available. Under the programme, Government approved the proposal for conducting 2D seismic survey for data Acquisition, Processing and Interpretation (API) of 48,243 Line Kilo Metres (LKM). A total of 46,960 LKM (~97%) 2D seismic data could be acquired out of the target 48,243 LKM. Processing and interpretation of 46,960 LKM data has been completed and the data has been submitted to National Data Repository (NDR) along with reports.
INTERNATIONAL CO-OPERATION
Diversification of Oil & Gas Sources:
In the financial year 2023-24, the Ministry of Petroleum and Natural Gas undertook robust measures to strengthen India’s energy security. We expanded our crude oil sourcing, reducing dependency on specific geographies.
To transition towards a gas-based economy and diversification, Indian PSUs IOCL and GAIL executed long-term LNG supply agreements with ADNOC, UAE, securing approximately 2.7 MMT of LNG annually.
Global Biofuels Alliance:
The Global Biofuels Alliance (GBA), launched in September 2023 by the Hon’ble Prime Minister during the G20 Summit, has seen remarkable growth, with 28 member countries and 12 international organizations joining the alliance and continues to expand.
Additionally, GBA signed Head Quarters Agreement with Government of India in October 2024 for establishment of the GBA Secretariat in India underscores our commitment to global leadership in clean energy.
Engagement with Neighbouring countries:
India has proactively fostered energy linkages with neighboring countries. For instance, with Nepal, Government of India signed a G2G MoU in May 2023 for development of petroleum infrastructure, followed by a commercial B2B agreement between IOCL and NOC of Nepal in October 2024.
Additionally, Government of India signed a landmark MoU with Bhutan for the supply of petroleum products.
International partnership on clean energy and Hydrocarbon Sector:
India and the United States continued to deepen their partnership through the Strategic Clean Energy Partnership (SCEP), aligning with the India-US Climate & Clean Energy Agenda 2030. The September 2024 Ministerial Meeting marked significant advancements in clean energy collaboration.
In November 2024, during the Hon’ble Prime Minister’s state visit, India and Guyana entered into a landmark agreement to strengthen cooperation in the hydrocarbon sector.
India’s commitment to clean energy extends to 2G/3G biofuels, green hydrogen, and other emerging fuels. Recently in June 2024, India signed a Letter of Intent (LOI) with Italy for collaboration in green hydrogen and sustainable biofuels.
Hon’ble Minister PNG along with Minister of Mines and Energy of Brazil issued a joint statement on Sustainable Aviation Fuel for coordinated position at international forum to promote SAF.
STRATEGIC PETROLEUM RESERVES
Hon’ble Prime Minister in February 2019 dedicated 5.33 MMT of strategic crude oil storage in SPR Phase-I (1.5 MMT SPR facility in Mangalore and 2.5 MMT SPR facility in Padur and 1.3 MMT SPR facility in Vishakhapatnam).
Under Phase II of the petroleum reserve programme, Government has given approval in July 2021 for establishing two additional commercial-cum-strategic facilities with total storage capacity of 6.5 MMT (underground storages at Chandikhol (4 MMT) and Padur (2.5 MMT)) on PPP mode.
Indian Strategic Petroleum Reserve Limited (ISPRL) had completed the Detailed Feasibility Report (DFR) and geotechnical surveys for the project site in Chandikhol, District Jajpur, Odisha. Environmental Impact Assessment (EIA) for the project has also been carried out by National Environmental Engineering Research Institute (NEERI), Nagpur.
In December 2022, Government of Odisha requested ISPRL to explore other sites in Odisha. In view of anticipated delay in pursuing alternate land and need for carrying out feasibility studies once again, Government of Odisha has been requested to allocate the same land at Chandikhol for which ISPRL had earlier submitted application and completed feasibility studies.
HYDROCARBON PROJECTS & INVESTMENTS
Oil and Gas sector is a key driver of economic growth and, therefore, infrastructure projects provide a boost to the national economy and would contribute towards job creation, material movement, etc. As of October 2024, there are 283 projects under implementation of the Oil & Gas CPSEs costing ₹ 5 crore & above with a total anticipated cost of ₹ 5.70 lakh crore. The targeted expenditure on these projects in FY 2024-25 is ₹ 79,264 crore against which Rs.37,138 crore is the actual expenditure as of October, 2024. These projects, inter-alia, include Refinery projects, Bio Refineries, E&P Projects, Marketing infrastructure projects, Pipelines, CGD projects, drilling/survey activities, etc. Out of 283 projects, 89 are major projects costing ₹500 crore & above with an anticipated cost of ₹ 5.51 lakh crore. 50 projects have been completed in the current FY 2024-25 with an anticipated cumulative cost of ₹ 4,519 crore.
Reducing Energy Dependence: Government has adopted a multi-pronged strategy to reduce the import dependency on oil & gas which, inter alia, includes demand substitution by promoting the usage of natural gas as fuel/feedstock across the country towards increasing the share of natural gas in the economy and moving towards gas-based economy, promotion of renewable and alternate fuels like ethanol, second-generation ethanol, compressed biogas and biodiesel, refinery process improvements, promoting energy efficiency and conservation, efforts for increasing production of oil and natural gas through various policies initiatives, etc. The Government has been promoting the blending of ethanol in petrol under the Ethanol Blended Petrol (EBP) Programme. Blending of Petrol has reached approximately 14.6% during Ethanol Supply Year (ESY) 2023-24. During the last ten years, EBP Programme helped in expeditious payment of approx. Rs. 92,409 crore to the farmers as on 30.09.2024. During the same period, EBP programme has also resulted in approximate savings of more than Rs. 1,08,655 crore of foreign exchange, crude oil substitution of 185 lakh metric tonnes and net CO2 reduction of about 557 lakh metric tonnes. It is anticipated that 20% ethanol blending in petrol is likely to result in payment of more than Rs. 35,000 crore annually to the farmers. For promoting the use of Compressed Bio Gas (CBG) as automotive fuel, the ustainable Alternative Towards Affordable Transportation (SATAT) initiative has also been launched.
Financial performance of Oil PSUs
Financial performance of Oil PSUs: Total budgeted Internal and Extra Budgetary Resources (IEBR) for CPSEs’ under the Ministry of Petroleum and Natural Gas in FY 2024-25 is ₹ 1,18,499 crore against which Rs 97,667 crore is the actual expenditure as on 30.11.2024 which is 82.4 % of the budgeted IEBR. During the same period of FY 2023-24, against IEBR of Rs 1,06,401 crore, actual expenditure was Rs.75418 crore which was 70.9% of the budgeted IEBR.
FLAGSHIP PROGRAMMES
StartUp India: The PSUs under the Ministry of Petroleum and Natural Gas have created startup funds aggregating to Rs. 547.35 Crore. At present, a total no. of 303 Startups have been funded by Oil and Gas PSUs with disbursed fund value of approximately Rs. 286.36 Crores.
Skill Development: Skill Development Institutes (SDls) for hydrocarbon sector have been set up at six cities viz Bhubaneswar, Vizag, Kochi, Ahmedabad, Guwahati and Raebareli by IOCL,HPCL, BPCL,ONGC,OIL and GAIL respectively. Till Nov’24, more than 41547 trainees have been trained in these SDIs. Several high priority trades have been identified in consultation with the Industry members for National Occupational Standard (NOS)/ Qualification Pack (QP) development. Till date, 55 QPs have been approved by National Skill Qualification Committee (NSQC).
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OKs 1,000-cr Maharashtra Natural Gas IPO
Bharat Petroleum Corporation (BPCL) informed that its board has given in-principle approval for the initial public offering (IPO) of Maharashtra Natural Gas (MNGL).
MNGL, a joint venture of BPCL, GAIL (India) and Indraprasth Gas (IGL) is preparing to list through an IPO of over Rs 1000 crore, subject to regulatory and other approvals.
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Bharat Petroleum Corporation (BPCL) is the second largest Indian oil marketing company (OMC), engaged in refining of crude oil and marketing of petroleum products, with a significant presence in the upstream and downstream sectors of the oil and gas industry. The company attained the coveted ‘Maharatna’ status, joining the elite club of companies having greater operational & financial autonomy. The Government of India holds 52.98% stake in BPCL as of 30 September 2024.
GAIL (India) is the largest state-owned natural gas processing and distribution company in India. The company has a diversified business portfolio and has interests in the sourcing and trading of natural gas, production of LPG, liquid hydrocarbons, and petrochemicals, transmission of natural gas and LPG through pipelines, etc. GAIL has also participated in interest in India and overseas in oil and gas blocks. The Government of India holds 51.92% in the paid-up equity capital of the company as of 30 September 2024.
Indraprastha Gas is a natural gas distribution company. It supplies natural gas as cooking and vehicular fuel.
Shares of BPCL declined 0.60% to Rs 283 while GAIL (India) rose 1.38% to Rs 187.10 and IGL added 0.87% to Rs 428 on the BSE.
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IGX in advanced stage of receiving regulatory nod for launch of long-term contracts
Indian Gas Exchange (IGX) is in advanced stage of receiving government’s approval for the launch of long-term contracts on its platform, said MD & CEO Rajesh Mediratta on January 10.
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The comments by the gas exchange head comes after a noticeable delay in getting the said approvals as IGX was earlier expecting government’s nod for the launch of long-term contracts by May 2024.
IGX, which is the first gas exchange in India, had applied for Petroleum and Natural Gas Regulatory Board (PNGRB) approval in March 2024 for introduction of three-month, six-month, and 12-month or yearly contracts on the trading platform.
Mediratta, however, informed reporters that IGX is going ahead with three-month and six-month contract for now, before launching yearly contracts, to evaluate market response.
Promoted by the Indian Energy Exchange (IEX) and NSE, IGX allows multiple buyers and sellers to trade in spot and forward contracts at designated delivery points. The gas exchange’s strategic investors include GAIL (India), Indian Oil, ONGC, Adani Gas and Torrent Gas.
Moneycontrol had reported in July 2024 that PNGRB had flagged concerns over the launch of long-term contracts by IGX for not sufficiently addressing risks related to defaults by sellers or buyers. Mediratta said that company has now addressed the concerns and is expecting PNGRB approval soon.
Collaboration for green gas trading
IGX signed a memorandum of understanding (MoU) with Austria’s Central European Gas Hub AG (CEGH) on January 10 to explore collaborative opportunities in natural gas and renewable gases trading.
The company said the partnership is aimed to strengthen India’s gas market by leveraging CEGH’s European market expertise and IGX’s deep-expertise in the domestic gas market. The key focus of the MoU include trading of natural gas and renewable gases like hydrogen, biomethane, and e-methane, commodity-related certificates, market development, training programs and gas-hub operations.
“A key objective of the partnership is to collaborate on best practices for the operations of natural gas trading focusing on enhancing the technical, operational and regulatory capabilities. Insights from the Indian and European gas markets will be utilized and international best practice will be shared, facilitating the creation of a liquid and transparent gas market,” IGX said in a press release.
IGX and CEGH also plan to explore the development of trading platforms for emerging green gases like hydrogen, biomethane and would also work together to support gas hub operations in India.
With rising energy demand in the country, India has set an ambitious target of increasing the share of natural gas in the total energy mix to 15 percent by 2030 from the current six percent.
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MHI backs SIAM proposal for reducing GST on CNG-powered two wheelers
The ministry of heavy industries (MHI) has thrown its weight behind a proposal by Society of Indian Automobile Manufacturers (SIAM), supporting their request for a reduction in GST on CNG-powered two wheelers from the current 28 per cent to 18 per cent and then to 12 per cent in stages.
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The key beneficiary of the move could be Bajaj Auto, which has already launched a CNG-powered motorcycle in the market. However, other companies like TVS are also considering entering the space. The Ministry of Petroleum and Natural Gas (MoPNG) has gone even further and also pushed for a similar reduction in GST for CNG-powered passenger cars, besides endorsing a reduction in CNG two wheelers also in their response to the proposal.
However, MHI is silent on the MoPNG request for reduction of GST on CNG passenger cars in the letter, and SIAM in its communications has made it clear that the submission they have made is only for the two-wheeler segment.
The letter sent on January 1, 2025 to the revenue secretary in the finance ministry has pointed out that the proposal also has the endorsement of other key administrative ministries, which include Ministry of Road Transport and Highways led by Minister Nitin Gadkari, who had initially mooted such a move, and Ministry of Environment, Forest and Climate Change.
The MoPNG also added that it would also request for a decrease of GST on CNG-powered cars. In its communication, it also supported the proposal saying that reduction in GST for CNG two wheelers will help to maximise their penetration across the country, as it would stimulate sales and help in getting India closer to its carbon neutral ambition.
MHI has also pointed out that the proposal on CNG two wheelers also had the endorsement of Automotive Research Association of India, which has opined that “CNG two wheelers should be considered for lower GST”.
SIAM has made a plea to reduce the base duty on two wheelers from 28 per cent to 18 per cent. On internal combustion engine (ICE) flexi fuels and ICE CNG two wheelers, it has submitted that GST be reduced to 18 per cent till that time when two wheelers have a 28 per cent GST. However, once the GST duty is reduced for all two wheelers to 18 per cent, it has been suggested that for ICE flexi fuels and CNG two wheelers, it should be further reduced to 12 per cent. Bajaj Auto’s CNG bike has seen an enthusiastic response. The company has already registered as many as 38,172 CNG-powered bikes since its launch in July last year till December end.
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LNG Use / LNG Development and Shipping
India’s Newest LNG Import Terminal Welcomes Its First Cargo
The latest Indian LNG import terminal, owned by state-owned Hindustan Petroleum Corporation Limited (HPCL), has just received its first cargo of the super-chilled fuel, HPCL officials told Bloomberg on Thursday.
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The terminal is undergoing commissioning activities and the shipment is expected to fully unload by January 16, the officials said.
In October, sources told Reuters that HPCL aims to commission its new LNG import terminal in December and January, and is holding talks with potential suppliers of LNG for the long term.
HPCL was looking for a cargo to commission the new facility in Gujarat State on India’s west coast in December or January, after failing to do so in April 2024, due to bad weather.
India plans to ramp up LNG imports and the use of natural gas as a fuel cleaner than coal and needed in many industrial processes.
For Indian firms, securing LNG supply is crucial as consumption of natural gas in industrial activities is set to soar.
India’s industry expansion and rising oil refining to meet higher fuel demand are set to drive a tripling of the country’s natural gas consumption by 2050, the U.S. Energy Information Administration (EIA) said last year.
Per the EIA forecasts, India’s gas demand – buoyed by oil refining and other industrial production – is expected to grow at an annual rate of 4.4% by 2050, more than twice the 2.0% annual growth rate of gas consumption in China, the next-fastest-growing country.
India, the world’s third-largest crude oil importer, is set to become a major force in the natural gas market, too, as its demand is expected to surge in the coming decades amid industry and population expansion.
As India sees fertilizers as a critical industry for its agricultural sector, and as steelmaking and construction are booming to meet the growing economy and population, natural gas demand will continue to rise. India’s domestic production, although it has increased over the past two decades, will not be enough to meet growth in demand. So the country will have to rely on more LNG imports, considering that it lacks pipeline connections with major gas producers such as Russia or the Gulf petrostates.
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India regulator riles LNG players in push for greater oversight
Moves to increase regulatory oversight of India’s liquefied natural gas market have met with strong opposition from existing market operators, threatening to complicate government ambitions to boost the role of gas to meet the country’s rising energy demand.
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Downstream regulator the Petroleum and Natural Gas Regulatory Board (PNGRB) issued draft proposals in May 2024, which include granting easier third-party access to terminals and increasing transparency of operators’ tariffs, as it seeks to tackle capacity underutilisation at the majority of India’s receiving and regasification facilities.
The moves have triggered a strong response from market participants, who were quick to identify perceived shortcomings in the legislation. An update to the regulatory environment is seen as key to Indian government plans to increase the share of natural gas in the nation’s energy mix to 15% by 2030, up from 6.7% today.
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BPCL, GAIL, IGL To Introduce Rs 1,000 Cr IPO For Joint Venture MNGL
State-run Bharat Petroleum Corporation (BPCL), GAIL India, and Indraprastha Gas or IGL are preparing to list their joint venture, Maharashtra Natural Gas or MNGL, through an initial public offering (IPO) worth over Rs 1,000 crore. The public offering, set to take place in the coming financial year, will include an offer for sale (OFS) and a fresh issue of shares, with IGL, the largest shareholder, planning to offload its stake partly, according to a media report.
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Currently, IGL holds a 50 per cent stake in MNGL, while BPCL and GAIL each own 22.5 per cent. The Maharashtra government, through the Maharashtra Industrial Development Corporation (MIDC), holds the remaining 5 per cent stake. The IPO will mark a significant move for MNGL, which has been expanding its footprint across Maharashtra, Karnataka, and Telangana.
MNGL, which primarily caters to Pune, Pimpri-Chinchwad, and surrounding areas, supplies compressed natural gas (CNG) for the transportation sector and piped natural gas (PNG) for domestic, commercial, and industrial use. As of FY24-end, MNGL had set up 246 CNG stations, 846 industrial and commercial connections, and 858,000 domestic PNG connections.
The company has posted strong financial results, achieving its highest-ever revenue of ₹3,001.88 crore in the last financial year. EBITDA grew by 41 per cent to Rs 961.53 crore, while net profit surged by 45 per cent to Rs 610.12 crore. Earnings per share (EPS) stood at Rs 61.01.
Despite the strong growth, MNGL’s IPO plans come at a time when the city gas distribution (CGD) sector is facing challenges. Due to a 20 per cent reduction in gas supply under the administered price mechanism (APM), CGD companies are increasingly forced to rely on more expensive non-APM gas or imported liquefied natural gas (LNG), leading to a rise in CNG prices by Rs 2-3 per kg.
MNGL is poised to become the sixth pure-play city gas distribution player to go public, joining a market currently led by Adani Total Gas, which has the largest market capitalization among CGD companies at Rs 79,983 crore. Other major players include Gujarat Gas and Indraprastha Gas.
The listing of MNGL is expected to further intensify competition in the growing city gas distribution market while providing the company with access to fresh capital to support its expansion plans in the coming years.
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Electric Mobility/ Hydrogen/Bio-Methane
IOC’s green H2 tender expects better response
Mumbai: State-run Indian Oil Corporation (IOC) is expecting to receive more than half a dozen bids to build a green hydrogen plant at its Panipat refinery in Haryana, according to sources
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IOC is seeking bids for a facility with a capacity of 10,000 tonnes per year of green hydrogen at the Panipat refinery on a build, own operate (BOO) basis. The refiner had to cancel two previous tenders as there was little interest from the industry. The latest tender that was floated on September 11, 2024 had sought bids by November 11, but the deadline was pushed twice to January 6 on the request of the participating companies.
Linde, GH4India, AM Green, Jakson Green, ACME, NTPC Green and US-based Matheson Tri-Gas are expected to have put in bids, said the sources.
These companies and IOC did not respond to ET’s queries.
In the first two attempts, industry players had accused IOC of skewing the tender in favour of GH4India, an equal joint venture among IOC, renewable energy company ReNew and engineering major Larsen & Toubro.
The latest bid saw IOC introduce a new technical qualification criteria wherein, to be eligible, bidders should have won the right to set up electrolyzer manufacturing and/or green hydrogen production capacity under Mode-1 of the Strategic Interventions for Green Hydrogen Transition Programme from the ministry of new and renewable energy.
The bidder should have also executed, on a BOO or BOOT (build, own, operate and transfer) basis, a refinery, petchem or fertiliser facility with a commercial hydrogen production facility in the last 15 years. This facility should have been in continuous commercial operation for at least one year. In the previous scrapped tender, this was 12 years.
This time IOC has also opened the green hydrogen project to players in the SIGHT scheme which could bring in some experienced entities, the sources said.
The lead bidder is also required to meet at least 48% of the financial qualification criteria, and up to three other consortium members should meet at least 15%. One of the consortia members should also be registered in India.
No minimum capacity has been prescribed in the tender for the refinery, petchem or fertiliser facility.
IOC has also tweaked the commercial criteria. “Bidder should have completed a minimum combined capital investment (capex of the plant exclusive of opex cost) or executed purchase orders in the form of EPC of ₹1,277 crore including GST/taxes or $151 million including taxes for new plant(s) in refinery or petrochemical or fertiliser or power sector during last 15 years.” In the previous tender, this value was $129 million in 12 years.
Interested bidders should also have operating and maintenance experience of at least six continuous months during the past 15 years in a processing unit with hydrogen handling facilities.
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India-made hydrogen train engine most powerful: Railway Minister
Bhubaneswar: Railway Minister Ashwini Vaishnaw on Thursday said that the hydrogen fuel-run train engine developed by the Indian Railways is the most powerful one manufactured by any country.
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The Railway Minister made the remarks in a panel discussion during the plenary session on “Green Connections: Diaspora’s Contribution to Sustainable Development” held at the 18th Pravasi Bharatiya Divas here on Thursday.
Ashwini Vaishnaw asserted that the hydrogen fuel-run train engine developed by Indian Railways has the maximum horsepower output than the engine developed by any country in the world.
He further stated that such a remarkable achievement using indigenous technology inspires India to be a leader among major economies using green energy for growth.
“Only four countries in the world have hydrogen-powered trains, and they produce somewhere between 500 to 600 horsepower. The engine produced by us has an output of 1,200 horsepower, the highest so far in this category,” added Vaishnaw.
He informed the gathering during the discussion that the first such train is expected to make a trial run in Haryana soon on the Jind-Sonipat route.
While the engine manufacturing has been completed, system integration of the same is currently underway.
The Union Minister also stated that the made in India hydrogen-powered rail engine has been developed by using indigenous talents.
“When we can build a hydrogen-run train engine on such a scale, consider the potential for adapting this technology to manufacture power trains for trucks, tugboats, and more. Indigenously developed technology provides a unique chance to create derivative technologies for various applications,” he further added.
He noted that though such technological advancement gives us confidence, India has a long way to go in terms of achieving technological self-sufficiency and needs to make parts of the value chain.
Earlier in the day, Prime Minister Narendra Modi, who inaugurated the 18th Pravasi Bharatiya Divas here, has aspired that one day Indians would ride trains made completely in India.
Hambyarajen Narasinghaen, the junior minister of Foreign Affairs of the Government of Mauritius, who also took part in the panel discussion, focused on the challenges of climate change in his country and sought support from India in providing green technology solutions.
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Nayara Energy to invest Rs 68,000 crore in foreign-led ethane cracker project
Nayara Energy plans to invest Rs 68,000 crore to establish a 1.5 MTPA ethane cracker at its 20 MTPA refinery in Vadinar, Gujarat. This becomes the first time that a foreign firm invests in this industry in India, in particular the petrochemical industry.
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Front-end engineering for the petrochemicals project has now been initiated by Nayara. The Vadinar refinery offers significant advantages, including integration opportunities and convenient access to the port. Its strategic location in western India places it at the heart of the country’s largest petrochemical market.
India’s petrochemical industry growth
By 2030, it is anticipated that India’s petrochemical capacity will have increased from 29.62 million tonnes to 46 million tonnes. Several Indian companies, including Gail India, Indian Oil Corporation, and Bharat Petroleum, have recognised the potential in the petrochemical sector. Collectively, they have invested over Rs 1.5 lakh crore in various petrochemical projects.
Ethane crackers convert hydrocarbons like ethane into ethylene, which is the main ingredient in synthetic rubber, adhesives, and plastics. Bharat Petroleum is investing nearly USD six billion to develop a similar ethane cracker project at its Bina refinery. Meanwhile, Gail India has committed Rs 60,000 crore to establish a 1.5 MTPA ethane cracker in Madhya Pradesh.
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Suzuki to acquire 26% stake in NDDB’s bio-gas venture
Suzuki Motor Corporation has decided to acquire 26 per cent stake in NDDB Mirda Ltd, a bio-gas venture of National Dairy Development Board (NDDB), as part of its plans to use Compressed Bio-Gas (CBG) for longevity and performance of vehicles. There is also a provision in the deal whereby Suzuki can gradually increase their equity in the company to 49 per cent.
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“Suzuki got interested in our bio-gas plants, because they want to focus on sustainability of vehicles through CBG and compressed natural gas (CNG). They believe that both CBG and CNG are the best solution for environmentally friendly vehicles. They also conducted some test and found that the compressed bio-gas produced from (cow or cattle) dung is much better than bio gas from other sources for the longevity of the vehicle and the performance of their engine. This is an in-house study that they have conducted,” Meenesh Shah, Chairman, NDDB, told businessline in an exclusive interaction at NDDB headquarters at Anand.
Suzuki R&D Center India Pvt Ltd (SRDI), a wholly-owned subsidiary of Suzuki Motor Corporation, entered into an agreement with NDDB to invest in its bio-gas subsidiary NDDB Mirda Ltd. “As of now, Suzuki will invest to acquire 26 per cent equity in NDDB Mirda Ltd and the remaining 74 per cent will remain with NDDB. This equity transaction will be at par. We have thought of ₹300 crore equity capital. However, we will begin with an initial investment of ₹34 crore, wherein Suzuki will invest ₹8.84 crore, while remaining ₹25.16 crore will be invested. This will be increased gradually as per the requirements,” he said.
Suzuki had earlier sought 49 per cent equity in the NDDB Mirda Ltd, but the Government of India allowed the company to take up 26 per cent. There is also a provision in the deal, whereby Suzuki can gradually increase their equity in the company to 49 per cent. “Initially Suzuki approached NDDB and we involved Banas Dairy and an MoU was signed so that faster work could be done by us together in this domain. Suzuki wanted to tap NDDB’s rural network for setting up multiple CBG production centres in the villages of Gujarat where Maruti Suzuki Eeco vehicles ply in large numbers. Initially, to support the CBG plant developed by Banas Dairy, four new plants were proposed to be built by Suzuki through their CSR initiative. The model was that NDDB will set up the CBG plants, Banas Dairy will operate the plant and Suzuki will provide the entire funding. Going forward, both Banas and Suzuki will share the profits,” Shah said.
Dung-based plants
Per the MoU inked between Banas Dairy, Suzuki and NDDB in September 2023, four dung-based CBG plants were proposed to be set up in Dhanera, Vadgam, Diyodhar, Deesa and Tharad districts of Banaskantha district. Currently work on setting up the four CBG plants in Banaskantha district of Gujarat are in progress. “After Banas Dairy, among milk producers unions in Gujarat, Sabar Dairy, Dudhsagar Dairy and Panchmahal Dairy want to follow suit and set up CBG plants. We have convinced Suzuki to provide CSR funds for the same,” the NDDB chairman said, adding that Suzuki after investing in Mirda will be able to go beyond using CSR funds in developing CBG plants in India.
The NDDB Chairman felt that the “mandatory” blending of CNG, as proposed by the Government of India, will open up the CBG sector in India. “Now a number of private players and Oil Marketing Companies are interested in this space. We started long back and so we will have an early mover advantage,” Shah added.
In order to promote the production and consumption of CBG in the country, the National Biofuels Coordination Committee (NBCC) in November 2023, approved, the introduction of phase wise mandatory blending of CBG in CNG (Transport) & PNG (Domestic) segments of the CGD sector. CBG Blending Obligation (CBO) will be voluntary till FY24-25 and mandatory blending obligation would start from FY 2025-26. CBO shall be kept as 1 per cent, 3 per cent and 4 per cent of total CNG/PNG consumption for FY 2025-26, 2026-27 and 2027-28, respectively. From 2028-29 onwards, CBO will be 5 per cent.
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India is ahead of other countries in green hydrogen sector: Union minister Pralhad Joshi
“A revolution is taking place in the field of solar energy, and India is becoming the world leader in renewable energy.”
Union Minister of New and Renewable Energy Pralhad Joshi on Saturday said India is ahead of other countries in the field of green hydrogen.
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Further, the work of offshore wind power projects is underway and tenders have been invited in Gujarat, the minister told reporters. “When we talk about offshore wind power, it means installing windmills in the sea, which requires development and upgradation of ports and transmission infrastructure. Along with this, work on geothermal (power) is also underway, though it is at the primary stage,” Joshi said.
A revolution is taking place in the field of solar energy, and India is becoming the world leader in renewable energy, he said.
“India is ahead in the field of green hydrogen, compared to other countries. We have floated a tender for green ammonia which is the world’s biggest (project),” he said.
The solar plant in Omkareshwar Dam is one of its kind and produces 278 megawatts of power, the minister noted. “This plant is providing electricity to Delhi Metro. I am thinking about how can we do this in other parts of the country where there is potential. There is potential of 90 gigawatts power generation but very little has been done,” he said.
Officials and leaders from other states and energy experts, especially from regions where there are large dams, should come here and see this project to replicate it elsewhere so that the target of 500 gigawatts (of non-fossil energy) by 2030 and 1800 gigawatt by 2047 could be achieved, the minister said. While India needs electricity, it should come from sustainable sources, Joshi said.
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Green energy: The two dos and the two don’ts
The renewable energy sector will witness three milestone events early in 2025.
First, solar power capacity will cross the 100-GW mark. Second, wind power capacity will exceed 50 GW. Third, total renewable energy capacity in India — counting wind, solar, wind-solar hybrid, biomass and small hydro, but not large hydro and nuclear — will exceed 200 GW.
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So, the task before the country — including policymakers and industry — is to build on this base. For that to happen, India must abandon two things in order to focus adequately on two other vital needs.
Many industry experts and studies have pointed out that green hydrogen is still some distance away. None less than Dr Fatih Birol, Executive Director of the International Energy Agency, has stated this categorically. A recent report by the agency also says pretty much the same. Another report, by the International Institute for Sustainable Development and the Centre for Study of Science, Technology and Policy (CSTEP), after dilating on why unsubsidised green hydrogen will be uncompetitive until around 2050, suggested that the government should adopt a “revised timeline, at a realistic level of ambition”. It also highlighted the burden on water resources from the use of electrolysers.
The subsidy conundrum
If further reason was needed for why green hydrogen is not worth pursuing right now, it came from the meeting between green hydrogen developers and the Ministry of New and Renewable Energy (MNRE) on December 19, 2024. Among the many asks of the developers was “long-term subsidies” — for 15-20 years — to “bridge the gap between grey hydrogen and green hydrogen”, according to one participant.
By all accounts, the Ministry did not find this acceptable. Additionally, the developers highlighted issues with European certification requirements, high port handling charges and the grid-related problems of the power plants that supply electricity to electrolysers.
So far, 10 developers have been awarded contracts for 4,12,000 tonnes of green hydrogen and another eight companies for 1,500 MW of annual electrolyser production. The green hydrogen industry appears unlikely to sustain without subsidies.
Clearly, green hydrogen is fit to be shelved until technology comes up with better solutions — such as solar-powered seawater electrolysers.
More headwinds
The second avoidable activity is offshore wind. The government has announced ₹6,853-crore viability gap funding for 1,000 MW of offshore projects — 500 MW each off the Gujarat and Tamil Nadu coasts. This is in addition to the ₹600 crore grant for upgrading the Thoothukudi and Pipavav ports to handle wind project cargo.
The government company SECI has tendered out seabed leasing rights for 4 GW of offshore projects, and the setting up of 500 MW offshore wind projects; companies have time till February 4 to submit bids. The auction target is 30 GW by 2030.
Industry insiders have often pointed to the difficulty in securing installation services. It is unlikely that any meaningful offshore capacity will come up in the next decade.
There are two contrasting views about offshore wind.
The favourable view is that one cannot ignore offshore wind in a country like India, which has big potential. Besides, for climate action, you need all weapons, including offshore wind. The opposite view is that offshore wind, even after costs have declined considerably, is way too expensive — around ₹7 a kWhr (compared with ₹3.3-₹3.6 for onshore wind-solar hybrid) — and hence can wait, especially in a country like India, which has huge untapped onshore potential.
Further, it is argued that the funds earmarked for offshore subsidies would be better utilised elsewhere — such as in building a transmission link to Sri Lanka.
What works
During the recent visit of Sri Lankan President Anura Dissanayake to India, one of the issues discussed was building a power transmission link between the neighbours.
Sri Lanka is estimated to have onshore wind potential of at least 45 GW (according to a 20-year-old survey). It is far easier and cheaper to build wind power projects in the island nation and wheel it up to India, with attendant geopolitical advantages.
The other imperative for India is to start using thorium, abundantly available in India, in existing and upcoming pressurised heavy water reactors. This is now feasible with the development of a new type of fuel, called ANEEL, by an Indian-owned, US-headquartered company called Clean Core Thorium Energy (CCTE). The company was in the news recently for inking an agreement with public sector power major NTPC for joint work on nuclear plants. Earlier, thorium was thought to be a fuel of the future — one that should wait until sufficient inventories of plutonium are built — but that is no longer true. Thorium is for now.
The year 2025 will march past some key milestones in renewable energy. But for India to achieve its international climate action commitments and its net zero ambition, some course correction is necessary.
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Piyush Goyal calls for co-existence of charging and battery swapping infra for faster EV adoption in India
NEW DELHI : Union Minister of Commerce & Industry Shri Piyush Goyal emphasized the need for battery swapping facilities to coexist with charging infrastructure to accelerate the adoption of EVs (electric vehicles) in India. He said adoption of EVs led by creation of charging infrastructure should be “a people’s movement”.
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The Minister was speaking at the Consultation Meeting on the “Development of Battery Charging and Swapping Infrastructure” co-organized by the Confederation of Indian Industry (CII) and the Department for Promotion of Industry and Internal Trade (DPIIT). It was attended by the leading industry representatives from automobile, battery, battery charging and battery swapping companies.
The interaction was also attended by Union Minister of State for Heavy Industries and Steel, Shri Bhupathi Raju Srinivasa Varma, Amardeep Singh Bhatia, Secretary, DPIIT and Senior officials from the Ministry of Power, Environment, Road Transport and Highways and Heavy Industry. Senior representatives from Amara Raja Advanced Cell Technologies, SUN Mobility, TVS Motor Company, Gorogo, Ather Energy, Mahindra & Mahindra Ltd, Hero MotoCorp and Bajaj Auto among others were present during the meeting.
Industry stakeholders highlighted that the battery swapping sector is projected to grow to USD 20 billion by 2030. It also emphasized the need for a level playing field with fixed-battery EV manufacturers when it comes to subsidies and incentives. It was noted that the industry has made technological advancements, such as using robotics to replace batteries in as little as 135 seconds.
While safety remains a concern, stakeholders emphasized the need for accountability and the establishment of well-defined standards by relevant authorities, such as the Bureau of Indian Standards (BIS).
The Union Minister envisioned that all petrol pumps, CNG stations, and similar facilities should be equipped with battery swapping and charging infrastructure. This, he noted, would not only address the issue of vandalism currently affecting the sector but also ensure widespread availability of facilities without undue concentration in specific areas.
Various ministries, including Heavy Industry, Power, Petroleum & Natural Gas, and Housing & Urban Affairs, along with industry representatives should collaborate closely to ensure the effective implementation of battery swap stations, he said.
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Biogas production from wet waste on cards in Hubballi-Dharwad
Hubballi: When the plant to convert dry waste into torrefied charcoal is yet to start functioning, a plan is underway to establish a facility for producing compressed biogas (CBG) from wet waste being generated in the twin cities.
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The quantity of wet waste being generated in the twin cities at present is around 210 tonnes per day. Under Sustainable Alternative Towards Affordable Transportation (SATAT) initiative of the Union Ministry of Petroleum and Natural Gas, the Bharat Petroleum Corporation Limited (BPCL) has come forward to set up a CBG plant. However, the Hubballi-Dharwad Municipal Corporation (HDMC) has to provide 10 acres of land, and supply 144 tonnes ofwet waste daily for this plant. If materialised, this is considered as a permanent solution for treating wet waste. Moreover, it is also hailed as an eco-friendly move when the demand for fuel is increasing.
The civic body is already converting a portion of wet waste into compost.Feasibility reportThe BPCL’s willingness to set up CBG plant to treat wet waste in Hubballi-Dharwad has come after it conducted a survey and prepared the feasibility report. As per the plan, the plant can generate five tonnes of CBG daily after processing 144 tonnes of wet waste.
HDMC officials have proposed to give 10 acres of land on a free lease for 25 years to the BPCL at Shivalli village where the corporation has 67 acres of land. The HDMC’s general body has to approve to provide land, wet waste and cooperation to the BPCL. If this project gets materialised, the BPCL itself would bear Rs 68 crore for setting up the CBG plant, and Rs 7.53 crore annual maintenance cost, officials explained.“Wet waste except greens and browns (leaves and branches) has to be provided to the CBG plant, while transportation cost will not be much, as waste can be shifted in trucks of 20 tonne-capacity each. Moreover, the HDMC will not have the huge burden of processing, while remaining wet waste can be converted into compost as windrow units for this purpose are already functioning,” said HDMC Executive Engineer (solid waste management) Malikarjun B M. If the CBG plant is set up, more focus could be laid on segregation of waste and creating awareness among the residents.
At Shivalli, the HDMC has already reserved 27 acres of land for sanitary landfill site and leachate treatment plant planned at a cost of Rs 4.39 crore, five acres for construction and demolition debris treatment plant, and 25 acres for green belt. Thus, 10 acres of land is still available at Shivalli.
If the HDMC’s general body gives its nod, formalities will be completed soon and BPCL’s plant is expected to be ready in two years after getting the approval from the state cabinet, officials said.
Torrefied charcoalMeanwhile, NTPC Vidyut Vyapar Nigam (NVVN) is in the process of setting up a plant near Gabbur, to convert combustible (dry) waste into torrefied charcoal, on 12 acres of land provided by the HDMC. The civic body has to supply 200 tonnes of combustible and 25 KL of water daily to the plant.“Civil works of the plant have begun, and it is expected to be functional within one year,” said HDMC Commissioner Ishwar Ullagaddi.
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INTERNATIONAL NEWS
Natural Gas / Transnational Pipelines/ Others
Mauritania and Senegal : BP flows first gas at Greater Tortue Ahmeyim LNG project
BP has begun flowing gas from wells at the GTA Phase 1 LNG project to its floating production storage and offloading (FPSO) vessel for the next stage of commissioning.
GTA, offshore Mauritania and Senegal, is one of the deepest offshore developments in Africa, with gas resources in water depths of up to 2850 m. Once fully commissioned, GTA Phase 1 is expected to produce around 2.3 million tpy of LNG.?In 2021, it was declared ‘a project of strategic national importance’ by both host governments.
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The announcement marks an important milestone towards realising the potential of Mauritania’s and Senegal’s gas resources, with the possibility for the countries to become an important LNG production hub.
“This is a fantastic landmark for this important megaproject.?First gas flow is a material example of supporting the global energy demands of today and reiterates our commitment to help Mauritania and Senegal develop their natural resources,” said Gordon Birrell, EVP production and operations.?
“Africa’s significance in the global energy system is growing, and these nations now have enhanced roles to play.?Congratulations to the project and production teams for delivering this project and for always keeping safe operations at the heart of what they do. Thank you to the entire GTA team, our partners and host governments for this tremendous achievement.”
Gas from GTA Phase 1 is being introduced to the GTA FPSO approximately 40 km offshore, where water, condensate and impurities are removed. From there, it will be transferred via pipeline to a floating LNG vessel located 10 km offshore, where it will be cryogenically cooled, liquefied and stored before being transferred to LNG carriers for export. Some of the gas will be allocated to help meet growing energy demand in the two host countries.?
“With this milestone, Mauritania and Senegal take a major step towards an exciting new chapter as gas-exporting nations. I am proud of the relationships we continue to strengthen in both countries. Without the resilience and dedication of the BP team, as well as our partners, host governments and of course the people of Mauritania and Senegal, none of this would have been possible,” said Dave Campbell, SVP Mauritania and Senegal.
GTA construction activities have generated more than 3000 local jobs, and the project has engaged with around 300 local companies across Mauritania and Senegal. BP and partners have invested in local workforce development – including a four-year apprentice training programme – and started a multi-million-dollar social investment programme that aims to enhance local quality of life and create long-term opportunities for local development.
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Crotia: New Gas Pipelines to Strengthen Croatian Energy Hub Position
January the 5th, 2025 – Four new gas pipelines are set to strengthen the position of the Croatian energy hub. Over half a billion euros of investment are involved. As Poslovni Dnevnik/Jadranka Dozan writes, at the end of 2024, the agreement on the transit of Russian gas through Ukrainian territory to EU Member States came to an end. There’s been plenty of talk about being well prepared for this situation from the European Commission and the governments of individual EU countries.
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This is especially the case for the likes of Slovakia and Austria, for whom the interruption of that route basically complicates the issue of gas supply. The situation has further underlined the importance of the LNG terminal on Krk in the positioning of the Croatian energy hub.
Strengthening the croatian energy hub
We are talking about more than half a billion euros worth of investments in four brand new gas pipelines that take place through Plinacro. They’re based on the project to expand the capacity of the liquefied gas terminal in Omišalj from 2.9 to 6.1 billion cubic metres of gas per year.
The new gas pipelines will enable the transport of this gas to both Slovenia and Hungary, thus strengthening the security of gas supply for the countries of Central and Southeastern Europe. As Prime Minister Andrej Plenković pointed out, these pipelines will also transport hydrogen as the energy source of the new era in the future.
Speaking about the value of this Plinacro investment project, Economy Minister Ante Šušnjar said that it involves 534 million euros in estimated value of tangible and intangible assets (excluding VAT). The project consists of a main gas pipeline system along the Omišalj-Zlobin, Zlobin-Bosiljevo-Sisak-Kozarac and Kozarac-Slobodnica routes, and an interconnection gas pipeline system with neighbouring Slovenia along the Lučko-Zabok-Rogatec route.
Alignment with REPowerEU
Omišalj- Zlobin is connected to the Zlobin-Bosiljevo and Bosiljevo-Sisak-Kozarac gas pipelines and will form the main evacuation gas pipeline connecting the LNG terminal on Krk with the countries of Central and Eastern Europe and Ukraine. In addition, the construction of the Lučko-Zabok gas pipeline will increase the gas flow from the LNG terminal towards Slovenia, the minister added.
“The construction of four gas pipelines spanning a total length of 216 kilometres will position the Croatian energy hub as being a regional one. It will also ensure the region’s energy independence, the continuity and security of natural gas supply to households and businesses in Croatia and other EU nations,” he stressed.
The government decision states that Plinacro’s project meets the conditions prescribed by the Act on Strategic Investment Projects of the Republic of Croatia. In addition, there are no obstacles to its implementation in terms of compliance with spatial plans. It’s fully aligned with the REPowerEU Union plan, and has also been incorporated into the National Recovery and Resilience Plan (as part of strengthening Croatia’s gas infrastructure). Therefore, it will be co-financed from EU funds and programmes.
Deadlines moving forward…
The government decision defines the basic procedures and actions in the implementation of the project, including predictable deadlines for already initiated and upcoming steps. This includes a range of activities, from clearing state and private forests, removing buildings within the protective corridor of the gas pipeline route and archaeological research, to procurement procedures and the contracting of works and equipment, the expert supervision of construction, as well as obtaining amendments to location permits and, finally, usage permits.
By the middle of this year, the hopes are that any property and legal relations on the lands covered by the project will be resolved.
Incidentally, the government embarked on the LNG terminal project on the island of Krk at the time Donald Trump’s first term as US president, and a decision to expand it followed in 2022. The expansion of LNG capacities, as well as the accompanying infrastructure project, are certainly Croatian projects that the new US administration, with Trump at the helm again, will be interested in.
https://total-croatia-news.com/news/croatian-energy-hub/
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UK: UK has enough gas, says network after storage warning
The UK has enough gas to meet winter demand, the network operator has said, after British Gas owner Centrica warned about “concerningly low” storage levels. Centrica, which owns the country’s largest gas storage facility, said the UK had “less than a week of gas demand in store” due to colder-than-usual weather.
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But National Gas, which owns the UK gas network, said the UK gets its gas from “a diverse range of sources” and that storage “remains healthy”.
Energy analysts said even if gas storage did run low, the UK could buy in more from Europe and other countries.
The UK has enough gas to meet winter demand, the network operator has said, after British Gas owner Centrica warned about “concerningly low” storage levels.
Centrica, which owns the country’s largest gas storage facility, said the UK had “less than a week of gas demand in store” due to colder-than-usual weather.
But National Gas, which owns the UK gas network, said the UK gets its gas from “a diverse range of sources” and that storage “remains healthy”.
Energy analysts said even if gas storage did run low, the UK could buy in more from Europe and other countries.
https://www.bbc.com/news/articles/c7vd57qzlqpo
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Natural Gas / LNG Utilization
US: Excelerate Energy Hits Record on Ship-To-Ship LNG Transfers
LNG company Excelerate Energy (EE) reached a milestone of 3,000 ship-to-ship transfers onboard a platform in Bangladesh, the company announced Jan. 6.
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The ships completed the transfer on Dec. 28, as Excelerate’s floating storage and regasification unit Excellence received an LNG cargo from a Maran Gas Maritime LNG tanker at the Moheshkhali floating LNG terminal in Bangladesh.
https://www.hartenergy.com/exclusives/excelerate-energy-hits-record-ship-ship-lng-transfers-211585
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Vietnam: LNG power projects face multiple hurdles
HANOI: Liquefied natural gas (LNG) power projects in Vietnam are currently grappling with many obstacles, ranging from bureaucratic delays to issues with power purchase agreements (PPAs), leading to significant project implementation slowdowns.
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The South-East Asian economy considers the development of LNG power a matter of national energy security.
According to Decision 500/QĐ-TTg, LNG power is expected to account for 14.9% of total power capacity, supplying 83 billion kWh by 2030.
However, the implementation of these projects faces numerous hurdles.
La Hong Ky from the State Steering Committee Office for Energy Projects emphasised that these critical LNG power projects face various challenges that need to be resolved.
Ky highlighted that several provinces, such as Thanh Hoa, Nghe An and Ninh Thuan have yet to select investors, due to delays in investment policy approval and tendering processes.
Additional challenges include land clearance, adjustments to local planning, land handover and leasing for project sites and transmission lines required to synchronise power evacuation.
For approved investors, securing financing remains a major challenge.
Most LNG power projects, except Nhon Trach 3 and 4, rely entirely on PPAs to obtain loans.
However, none of the LNG power projects have successfully negotiated or signed PPAs with Vietnam Electricity (EVN) due to unresolved issues, including concerns over the stability of long-term energy quantity under contract, transferring gas purchase commitments into power purchase agreements and aligning gas pricing mechanisms with electricity pricing.
Foreign investors also demand additional government guarantees, such as foreign currency conversion guarantees, payment guarantees, contract termination assurances with EVN and guarantees against delays in transmission line construction, he said.
According to Ky, synchronisation is vital for the success of LNG project chains.
Yet, these projects are often subject to numerous uncontrollable external factors, prolonged timelines, technological and policy risks, involvement of multiple stakeholders, and a complex legal environment involving multiple laws. These challenges increase costs and project durations and create significant barriers for investors.
To ensure timely project implementation, he said the country must establish mechanisms and policies to address the outlined challenges and identify an appropriate energy structure.
Nguyen Duc Tung from the Institute for Strategic Research and Industrial Policy proposed reviewing and refining the legal and management frameworks for LNG power projects.
This involves amending regulations within Vietnam’s Investment Law, Bidding Law, Construction Law, Environmental Law and Planning Law to streamline project implementation.
He added that clear and practical policies are essential to ensure effective management, build market access and distribution systems and foster international cooperation.
He emphasised the importance of a dual strategy combining domestic gas exploration with imports to maintain a stable and long-term LNG supply.
Prioritising the exploration and development of new gas fields will not only reduce dependence on imports but also unlock domestic resource potential.
Over the longer term, the country should explore the feasibility of establishing LNG production facilities, provided adequate technological, financial, and human resources are available.
Vietnam should also implement mechanisms for LNG imports and strategically position LNG power plants nationwide to minimise transportation costs and enhance fuel absorption efficiency.
Additionally, transferring LNG pricing into electricity pricing within PPAs is fundamental to ensuring the economic viability and attractiveness of LNG power investments.
The country has identified 13 LNG power projects as critical infrastructure and approved by the Prime Minister. — Vietnam News/ANN
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Myanmar: Efforts underway to generate electricity from LNG power plants
The first meeting of the Electric Power and Energy Development Commission in progress yesterday in Nay Pyi Taw, presided over by Commission Chair Admiral Tin Aung San, who is also SAC Member, Deputy Prime Minister and Union Minister at the Prime Minister Office.
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Efforts are being made to allocate available electricity efficiently and smoothly to users by categorizing it into groups based on time usage in the supply of electricity, said Admiral Tin Aung San.
Chairman of the Electric Power and Energy Development Commission State Administration Council Member Deputy Prime Minister and Union Minister at the Prime Minister Office Admiral Tin Aung San delivered a speech at the Electric Power and Energy Development Commission’s meeting 1/2025 at the SAC Office in Nay Pyi Taw yesterday afternoon.
Speaking on the occasion, the Admiral said that electricity and energy are crucial infrastructures for improving the daily lives of the people and attracting increased domestic and foreign direct investment (FDI).
In the electricity sector, he continued, Myanmar primarily relies on hydropower and natural gas to generate electricity. It is also necessary to expand the use of renewable energy sources beyond current levels.
He noted that as the country immediately needs electricity, efforts are being made to generate electricity from power plants using liquefied natural gas (LNG).
The Deputy Prime Minister highlighted that the destruction of national grids and substations by acts of sabotage prevent power plants from generating and supplying electricity, causing a decline in natural gas production, maintenance of natural gas pipelines, and the impacts of natural disasters like flooding have led to significant challenges in fully operating power plants and generating electricity.
He disclosed that efforts are being made to allocate available electricity efficiently and smoothly to users by categorizing it into groups based on time usage in the supply of electricity.
In the implementation of development projects, he added that human resources, technology, and investment are crucial factors. Therefore, it is necessary to invite both domestic and foreign investments and technologies, while creating frameworks that can attract and protect investors. As such, it is important to review and evaluate relevant laws, policies, and procedures.
He urged relevant Union ministers and experts to recommend the generation of electricity from the most appropriate location for building low embankments among four prioritized venues out of 16 in the Ayeyawady Region.
He stressed that all meeting participants have to discuss the potential for the construction of new buildings to generate electricity from solar energy to be fed to the national grid with more steps to release laws and notifications.
All attendees were urged to discuss the energy sector to implement upgrades for onshore and offshore oil fields, enhance existing fields, and improve processes for oil refining operations.
Vice-Chairman 1 Union Minister for Electric Power U Nyan Tun and Vice-Chairman 2 Union Minister for Energy U Ko Ko Lwin reported on measures being taken to generate electric power and energy, risks in the work process and plans.
Members of the commission Union ministers also discussed the participation of relevant ministries in the development of electric power and energy sectors.
Chief ministers from regions and states explained the generation and supply of electricity and energy in their plans and future tasks.
The meeting was also attended by the president of UMFCCI and an official from the Myanmar Engineering Council. — MNA/TTA
https://www.gnlm.com.mm/efforts-underway-to-generate-electricity-from-lng-power-plants/
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US: Cheniere Produces First LNG at Corpus Christi Stage 3 Project
With CCL stage 3 project, Cheniere has become the second new US export plant this year to boost supplies of super-chilled gas, according to Reuters.Train 1, with a production capacity of 1.5 mtpa, is in the commissioning phase, with the completion of the processing unit expected by March 30.
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Notably, the new plant comprises seven midscale trains. On November 30, Cheniere achieved 75.9% completion of Corpus Christi Stage 3 expansion project.
In June 2022, Cheniere announced the Corpus Christi Stage 3 expansion, which will include Bechtel’s EPC execution of seven midscale trains, powered by Chart Technology with motor driven refrigeration compressors. Once operational, the expansion has an expected total production capacity of approximately 10+ mtpa of LNG.
https://egyptoil-gas.com/news/cheniere-produces-first-lng-at-corpus-christi-stage-3-project/
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Philippines: FGen unit obtains permit for Batangas LNG terminal
First Gen Corp. subsidiary FGen LNG Corp. has received from the Department of Energy (DOE) the permit to operate and maintain (POM) its interim offshore liquefied natural gas (LNG) terminal in Batan
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gas.
The company said in a statement yesterday the POM authorizes the operation of the project for its own use and is valid for a period of 25 years.
First Gen said the project consists of a multipurpose jetty and an onshore gas receiving facility, representing the initial phase of the FGEN LNG terminal that was previously declared by the Energy Investment Coordination Council, through the DOE, as an energy project of national significance.
Francis Giles Puno, First Gen president, said the project will support the introduction of more natural gas plant generation that will serve as the bridge fuel and offer flexible power generation to support the introduction of more intermittent renewable energy technology in the country.
LNG supply from the project is being utilized by First Gen’s existing gas-fired power plants with a combined capacity of 2,017 megawatts (MW), also located in Batangas.
First Gen has a combined capacity of 3,668.2 MW with a portfolio utilizing natural gas, geothermal, hydroelectric, wind and solar power technologies.
The company also aims to grow its total capacity to 13,000 MW in the next five years and spend as much as $20 billion until 2030.
https://malaya.com.ph/business/corporate/fgen-unit-obtains-permit-for-batangas-lng-terminal/
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UK: LR – 600 alternative-fueled vessels ordered during 2024
Lloyd’s Register (LR) has provided an overview of the maritime industry’s significant strides toward decarbonisation in 2024, highlighting advancements in alternative fuels, emerging technologies, and the scaling challenges that lie ahead on the path to net-zero emissions.
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According to LR, shipowners continued to invest for a future of lower emissions in 2024, with 600 vessels capable of using alternative fuels ordered (to December 13). The new orders grew the total orderbook by more than 50%, to 1,737 vessels. The in-service alternative-fuelled fleet also grew strongly, up 18% to 1,860 vessels.
Combined with current orders, the fleet will stand at 3,597 – around 4.8% of all vessels in service and on order. But with the IMO’s 2030 target on zero and near-zero emission energy use crossing the five-year horizon, orders will need to accelerate further to meet the required 5-10% of shipping’s energy consumption.
As the maritime transition towards decarbonisation advances, the next steps will require greater alignment between industry ambitions, regulatory measures and, crucially, incentives to rapidly grow global production capacity for the alternative fuels shipping will need,
… said said James Frew, Business Advisory Director at LR.
Progress with methanol, ammonia, and hydrogen fuels
Methanol-fuelled vessels led the way amongst new fuels, with 119 orders adding more than a third to the existing orderbook. Ammonia-fuelled vessel orders more than doubled compared to the previous year, to 22 vessels. In 2025 the first ammonia-fuelled marine engines will be delivered, with a further surge in orders likely as the industry gains experience with the carbon-free fuel.
Hydrogen fuel also consolidated its appeal within relevant vessel segments, with orders for 12 more vessels in 2024.
Liquefied natural gas (LNG) adoption
While vessel orders related to new fuels progressed in 2024, liquefied natural gas (LNG) also strengthened its position as shipping’s most widely adopted alternative fuel. More than 350 vessels (including LNG carriers) were ordered. The industry’s efforts to reduce the impact of methane slip on greenhouse gas emissions also evolved.
Interest grows in liquefied petroleum gas (LPG)
Another established alternative fuel, liquefied petroleum gas (LPG), also drew further orders. Currently, LPG carrier vessels are the only users of the fuel, but there remains potential for other users to take up the fuel. Market factors may make LPG pricing competitive in some regions, infrastructure and technology is mature, and efforts are being taken to scale up the production of renewable variants.
Challenges with future fuel availability
However, amid strong development across the industry, there remains deep uncertainty about when zero- or near-zero emission fuels will be available, and at what cost. The latest Zero Carbon Monitor in October 2024 listed supply and infrastructure as a priority action to improve readiness for future fuels.
The report noted: “A key factor in vessel investment decisions is confidence in future supply of fuel. To reduce uncertainties and accelerate investment decisions at the ‘ship’ stage, stakeholders across the entire value chain must work together to create supply chains for future zero (or near zero) carbon fuel uptake.”
The scaling challenge
The monitor’s ongoing assessment of readiness levels across several fuel candidates notes that significant scaling up of production capabilities and supply infrastructure is needed before these fuels can be considered fully ready. Core production elements for both biomass-derived fuels (e.g., carbon capture) and e-fuels (e.g., electrolysers) are currently only in use at isolated projects.
The monitor also identifies areas where public intervention is needed to facilitate the scaling up of alternative fuel production. In general, potential investors in alternative fuel production and supply need signals that show a stable, attractive market. One specific area is the need to reduce the risks of investing in countries with low credit ratings, because many countries are well suited to provide renewable resources.
Ensuring readiness for early movers
Coordinated action will also be needed to ensure that zero- or near-zero emissions shipping is available for early movers among cargo owners. In 2024, a tender was launched to assess the availability of shipping services using e-fuels. Responses from more than 50 shipowners and fuel suppliers indicated that predicted that commercial e-fuels deployment in the maritime sector would be feasible starting in 2027 and 2028, with limited deployment potentially as early as late 2026.
Wind-assisted propulsion gains momentum
Amid uncertainty around fuel availability, the industry also progressed the development of other emissions reduction options in 2024. Analysis of the market for wind-assisted propulsion systems (WAPS) in August found that uptake is on the verge of a tipping point, expected to pass the 100-installation milestone in the next 2-3 years. Rapidly maturing technology, successful pilot projects and growing regulatory recognition are key drivers, while challenges such as standardising fuel savings verification and scaling up technology production are already being actively addressed.
Coinciding with the retrofitting of WAPS on the world’s biggest bulk carrier in October, a paper was submitted to the Royal Institute of Naval Architects’ Wind Propulsion 2024 conference. The paper outlined experience across three retrofits on bulk carriers, and highlighted the need for early planning of compliance and integration elements to streamline retrofit projects.
Advancing nuclear propulsion
Looking further ahead, the prospect of nuclear propulsion for commercial vessels gained momentum in 2024, driven by increasing shipowner interest in the advance of small modular reactor technology. The technology could have dramatic impact on shipping, including longer ship lives and new ownership models.
Carbon transport and sequestration maturity
2024 was also notable for growing maturity in the carbon transport and sequestration market, which will be essential both for decarbonising hard-to-abate industrial sectors and providing feedstock for carbon-based e-fuels. In the year that the first dedicated liquid CO2 carrier was delivered, multiple approvals for vessel designs were issued and a landmark study was conducted on port capabilities for offloading carbon captured onboard.
Across the year, increasing investment from shipowners set the scene for a crucial year ahead for maritime’s decarbonisation drive. The first four months alone, with the introduction of FuelEU Maritime in January and the anticipated finalisation of IMO mid-term measures in April, will make 2025 a defining year for industry’s voyage towards net-zero emissions, LR concludes.
https://safety4sea.com/lr-600-alternative-fueled-vessels-ordered-during-2024/
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Global LNG Development
Abu Dhabi: Abu Dhabi’s ADNOC Gas awards $2.1 billion in contracts for LNG projects
Having already sold most of its planned additional output of liquefied natural gas (LNG), ADNOC Gas is pressing ahead with construction.
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The company awarded $2.1 billion in contracts for infrastructure to support the Ruwais LNG project, allowing ADNOC Gas to double its LNG production capacity and connect its Habshan site, — which processes 6.1 billion cubic feet of gas daily — directly to an export facility.
ADNOC Gas says the new Ruwais LNG plant will be powered by “clean grid electricity.” The company expects to see output surge in 2028 and has already committed 8 million tons annually in long-term contracts out of Ruwais’ total 9.6 million tons per year. ADNOC Gas is positioning itself to meet Asia’s future demand for low-carbon fuel.
Separately, ADNOC Logistics & Services — which owns ships that transport its parent company’s crude and LNG — secured $2.1 billion in financing to fund acquisitions.
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US: Alaska’s LNG project moves closer to reality after 10 years in the making, with Glenfarne as private investor
On January 6, 2025, AGDC President Frank Richards and Alaskan Governor Mike Dunleavy hosted an energy conference in Anchorage, announcing an exclusive framework agreement to develop Alaska LNG following ten years of design and permitting work.
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“Today, after 10 years of planning, engineering, and permitting, I’m announcing that AGDC has reached an exclusive framework agreement with a qualified energy company to privately lead and fund the development of the Alaska LNG project, including the Arctic Carbon Capture plant on the North Slope. The LNG export facility in Nikiski and the pipeline, which will transect the state and deliver North Slope natural gas to Alaskans,” said Richards.
Richards noted that the terms of the framework agreement have been negotiated and the next step is for both parties to create legally binding development agreements that will move the project forward. He noted that a formal announcement of the definitive agreements is expected within the next few months.
On that same day, outgoing President Biden disclosed plans to protect areas of the United States, including portions of the Northern Bering Sea in Alaska, from future oil and natural gas leasing. President-elect Donald Trump responded by vowing to undo the drilling ban.
“The Alaska LNG project will allow Alaska to deliver natural gas from a proven energy source that markets demand. Alaska LNG uniquely offers superior economics, close proximity to Asian markets driving LNG demand growth, and the ability to eliminate up to 2.3 billion tons of global emissions by replacing dirtier fuel sources with clean burning Alaska natural gas,” added Richards.
While the company’s name was initially not disclosed, on January 10, 2024, Offshore Energy reached out to AGDC, whose spokesperson confirmed that the company in question is Glenfarne.
Furthermore, a Glenfarne spokesperson told Offshore Energy: “Glenfarne confirms it has entered into an exclusive agreement with the Alaska Gasline Development Corporation (“AGDC”) for the development of the Alaska LNG project, including the Alaska Export Facility, Pipeline, and a Carbon Capture facility. As well, Glenfarne and ENSTAR Natural Gas Company have entered into an exclusive agreement to advance an LNG import project utilizing the Alaska LNG export site.”
Glenfarne is developing a 4-mtpa project in Texas’ Port of Brownsville. Kiewit was recently selected to lead the engineering, procurement, and construction (EPC) for the proposed terminal. The two will work on completing the pre-final investment decision (FID) engineering required for the project to proceed to an FID.
London-listed Pantheon Resources, which entered into a gas sales precedent agreement (GSPA) with 8 Star Alaska, a subsidiary of AGDC, welcomed the announcement by the AGDC.
“We are delighted with the progress made by Frank and the AGDC team. This moves the Alaska LNG project a step closer to fruition and, upon execution of definitive agreements, providing long term energy security for the State of Alaska,” said David Hobbs, Executive Chairman of Pantheon Resources.
“As a reminder, Pantheon and AGDC signed a Gas Supply Precedent Agreement in June 2024, under which Pantheon would supply its natural gas into the pipeline pursuant to a definitive gas sales agreement to be negotiated in the coming months. We look forward to project progress as the parties work together to realise Phase 1 of ‘Alaska LNG’ (the gas pipeline) and ultimately the full ‘Alaska LNG’ project.”
Approval of letter of credit by Alaska’s development financing authority
The private investment was made possible by the approval on December 4, 2024, by the Alaska Industrial Development and Export Authority (AIDEA) of a resolution to advance the development of the Alaska Natural Gas Pipeline Phase 1, which involves developing the gas pipeline from the North Slope to Southcentral and Interior Alaska markets.
As reported, AIDEA and AGDC were in discussions with industry participants to update the project’s front end engineering design (FEED) study which is required before a final investment decision (FID) can be made.
“The future for AIDEA involves projects such as the Alyeschem North Slope methanol plant, the Alaska Natural Gas Pipeline Project, and future ANWR oil lease development with potential state revenue of $2 billion a year according to federal estimates,” said Executive Director Randy Ruaro.
On that same day, the AGDC released a statement regarding AIDEA’s decision to support the development of Alaska LNG Phase 1.
“Today’s resolution authorizes AIDEA to negotiate and sign a letter of credit to backstop front-end engineering and design (FEED) for the Alaska LNG pipeline, bringing Alaska a critical step closer toward a privately funded in-state natural gas pipeline. The letter of credit will allow AGDC to unlock up to $50 million in private investment needed to move the Alaska LNG pipeline through FEED, the remaining development stage that must be completed before a final investment decision can be made,” said AGDC.
The firm added that it was “in advanced discussions” with potential project partners to privately fund and complete FEED, noting that updates would be shared as new developments happen. Furthermore, it was stated that the letter of credit for FEED would only be utilized if an FID is not reached, at which time AGDC will own the completed pipeline engineering and design work.
Project overview
Alaska LNG intends to use what the developers say are clean, energy-efficient, and safe production methods to deliver a stable supply of natural gas for commercialization and in-state distribution. The project is expected to deliver an average of about 3.5 billion cubic feet of gas per day, much of it for international markets.
The gas will be sourced from Prudhoe Bay and Point Thomson fields. These fields will produce, on average, about 3.5 billion cubic feet of gas per day with approximately 75% coming from the former and 25% from the latter.
The liquefaction facility, located in Nikiski, southwest of Anchorage, will process, store, and transport up to 20 million tons of LNG per year using the propane precooled mixed refrigerant (C3MR) Process, an technology patented by Air Products.
The facility is set to include three LNG trains, two 240,000 cubic meter storage tanks, terminal facilities and marine services, as well as two loading berths to accommodate LNG carriers up to 217,000 cubic meters (Q-Flex).
The 807-mile, 42-inch diameter mainline pipeline, including an offshore pipeline section crossing Cook Inlet, is described as the backbone of the proposed project. With a daily capacity of 3.3 billion cubic feet, multiple compressor stations along the pipeline will help carry natural gas from the North Slope to Southcentral Alaska.
The pipeline would be underground, with the exception of two planned aerial water crossings, aboveground crossings of active faults, and the offshore pipeline. Multiple interconnection points would be installed along the pipeline to bring in-state gas to Alaskans.
Its average throughput would be 3.1 billion cubic feet per day, with a maximum capacity of 3.3 billion cubic feet per day
A gas treatment plant is envisaged to be located in Prudhoe Bay near existing oil and gas infrastructure. The plant would be comprised of three process trains to remove impurities from the natural gas that could flow from the Point Thomson and Prudhoe Bay reservoirs. Carbon dioxide would be removed, captured, and compressed for reinjection into the Prudhoe Bay reservoirs.
The average daily capacity would be 3.5 billion cubic feet and the maximum capacity 3.9 billion cubic feet per day.
Economic viability assessment
Alaska’s Governor sent a memorandum dated November 12, 2024, to the members of the Alaska State Legislature. Noting the “looming Cook Inlet crisis” as the most critical energy issue facing Alaska policymakers, he provided Wood Mackenzie’s paper called ‘Economic viability assessment and economic value of the Alaska LNG project – Phase 1.’
As AGDC is leading the development of Alaska LNG on behalf of the state, Governor Dunleavy directed the firm to create a phased construction strategy for Alaska LNG. Alaska LNG Phase 1 prioritizes construction of the pipeline to more quickly deliver North Slope natural gas to Interior and Southcentral Alaska and resolve the Cook Inlet energy crisis. while Alaska LNG Phase 2 includes the infrastructure components needed to convert gas to LNG and export it.
The legislature previously asked that an independent third-party review of the project proposal that would commercialize North Slope gas be completed and presented by December 20, 2024. When this was sought, the legislature noted that all parties would work toward FEED for Phase 1 of the project if the analysis showed “a positive economic value to the state.”
Wood Mackenzie was to present the economic case for quickly constructing the Alaska LNG pipeline to legislators at the House Resources Committee hearing on November 19, 2024.
Environmental backlash
The project has faced some opposition from environmental groups, most notably Greenpeace and Center for Biological Diversity. While the federal government’s announcement from January 2024 requiring updates of the underlying economic and environmental analyses for authorizations of exports to non-FTA countries is seen as a step in the right direction, Greenpeace believes stringent integrity and oversight measures still need to be taken to prevent the updated analyses from being mismanaged.
When AGDC received authorization to build and operate the project from the Federal Energy Regulatory Commission (FERC) in April 2023, the Center for Biological Diversity and the Sierra Club (CBD) petitioned the U.S. Court of Appeals for the District of Columbia Circuit for review.
A month later, the court dismissed the petition by saying that some issues the petitioners raised were not exhausted and it lacks jurisdiction to consider them.
Four moths later, the environmental duo sued the federal government for approving exports from the Alaska LNG Project, claiming that it failed to fully assess the project’s environmental harms.
According to the Center for Biological Diversity, the fossil-fuel export project would export 20 million metric tons of gas per year, potentially releasing more than 50 million metric tons of carbon pollution annually from those exports. This comes on top of the at least 297 million metric tons of carbon pollution from operating the extensive project infrastructure over its 30-year lifespan.
“The Biden administration made a mockery of the climate emergency when it approved the Alaska LNG carbon bomb and this lawsuit aims to stop it from being built,” said Jason Rylander, an attorney at the Center for Biological Diversity’s Climate Law Institute. “The science is clear. Development of massive new fossil fuel export projects like Alaska LNG is incompatible with a stable climate. President Biden needs to reverse course and protect our communities, our wildlife and our future.”
As Alaska LNG has been government funded since ExxonMobil, ConocoPhillips, and BP backed out in 2016, citing cost concerns, the Center noted it cost the state of Alaska hundreds of millions of dollars, while still lacking investors, partners or customers.
“There is no demonstrated global market need for these exports and by 2030, the earliest date this project can expect to begin exporting liquified methane gas, interest in gas will have waned,” said Sierra Club Alaska Chapter Director, Andrea Feniger. “DOE has unlawfully ignored the project’s environmental harms and underestimated its climate impacts. If this project moves forward, Alaska will be left to deal with a stranded asset and the ever-worsening impacts from climate change.”
After that, in November 2024, Greenpeace USA claimed that the project’s authorization was granted on the basis of a “deeply flawed” environmental analysis, and consultants who supported the analysis had ties to the gas industry.
The environmental organization said the assessment ordered by the Department of Energy (DOE) in 2021, which concluded that Alaska LNG would not increase greenhouse gas emissions compared to a potential situation where the project does not get built, was based on a scenario that Greenpeace claims is both unlikely and inconsistent with stated climate policies.
Furthermore, the organization claims the analysis was conducted with the help of KeyLogic, a consulting firm with commercial ties to the gas industry. Some KeyLogic staff has worked on DOE projects while simultaneously working for gas companies that the DOE is tasked with regulating, noted Greenpeace.
Additionally, Greenpeace believes the Federal Energy Regulatory Commission’s (FERC) environmental impact statement of Alaska LNG–which was later adopted by the DOE–is flawed. One of the reasons, as pointed out by the Center for Biological Diversity and Earthjustice, was that it did not mention the project’s upstream or downstream emissions, which typically represent the majority of lifecycle emissions associated with LNG exports.
Greenpeace considers this “data-washing,” a practice it says oil and gas companies use to make credible-sounding environmental claims that rely on what it claims are faulty assumptions or incomplete analysis. According to the organization, the Alaska LNG analysis authors assume that if Alaska LNG is not built, the same volume of gas would be produced and exported from the lower 48 states instead.
“There is no evidence provided to support this assertion; and, at a conceptual level, it is basically a license to pollute based on the assumption that ‘if we don’t do it, someone else will.’ As a result, the study maintains that even though Alaska LNG would emit up to 2.7 billion metric tons of greenhouse emissions over its lifetime (ten times the amount of the Willow Project), it would actually save on emissions compared to a scenario where the project doesn’t get built,” concludes Greenpeace.
https://www.offshore-energy.biz/alaskas-lng-project-moves-closer-to-reality-after-10-years-in-the-making-with-glenfarne-as-private-investor/
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US: LNG project development company says it has an agreement to develop $44 billion Alaska project
A New York-based company pursuing LNG export projects in the Lower 48 said this week that it has a deal with the Alaska gasline agency to develop the state’s long-sought $44 billion Alaska LNG project.
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“Glenfarne confirms it has entered into an exclusive agreement with the Alaska Gasline Development Corp. for the development of the Alaska LNG project, including the Alaska export facility, pipeline, and a carbon capture facility,” a spokesperson with Glenfarne Energy Transition said in an email Thursday.
The deal is an important development for the Alaska LNG project, in the works for more than a decade. Board members for the project last year had suggested shutting the project down, if enough progress was not made by now.
The state-owned project is the latest iteration in decades of attempts in Alaska to build a project that would tap into the vast quantities of natural gas contained on the North Slope.
Costs, and the project’s huge facilities, have long stymied efforts to build it. Alaska LNG envisions development of an 800-mile pipeline delivering natural gas from the North Slope. The gas would be liquefied in Nikiski on the Kenai Peninsula and exported to Asian markets in oceangoing tankers.
Glenfarne’s statement follows a statement on Monday from the head of the Alaska Gasline Development Corp. was in secret talks with an unnamed partner to lead and fund development of the project.
Frank Richards, president of the gasline agency, said in the announcement that it had reached an “exclusive framework agreement with a qualified energy company.”
“The next step is for both parties to create legally binding development agreements that will move the project forward,” he said. “The company involved brings extensive US and international natural gas and LNG experience to bear to this project.”
Richards said he expected “a formal announcement of the definitive agreements in the next few months.”
Richards declined to share details of the potential agreement. A spokesperson with the agency, reached Thursday, did not provide additional details.
Top of Form
Glenfarne, founded in 2011, develops, owns and operates energy and infrastructure projects. It sees LNG as a bridge to renewables and other low-carbon energy sources, according to Brendan Duval, the company’s co-founder.
It’s working to develop LNG projects in Texas and Louisiana.
The Texas LNG project and the Magnolia LNG project in Louisiana have not reached the critical stage of a final investment decision, when a company has agreed to fund project costs and move to construction.
A representative with Glenfarne declined to comment on the Alaska agreement on Thursday.
The Alaska LNG project is also far from that pivotal moment that will determine how the massive project would be paid for.
Glenfarne’s statement on Thursday said it is also working on an LNG import project with Enstar Natural Gas, the natural gas utility for Southcentral Alaska.
“As well, Glenfarne and ENSTAR Natural Gas Company have entered into an exclusive agreement to advance an LNG import project utilizing the Alaska LNG export site,” Glenfarne said.
The Alaska Landmine and the Peninsula Clarion earlier this week reported on the Glenfarne statement.
The Alaska LNG project received a $50 million line of credit from another state agency last month that helped it secure the framework agreement, Richards said Monday.
The Alaska Industrial Development and Export Authority in December agreed to commit $50 million as an insurance policy to allow Glenfarne to spend up to $50 million to help develop the project by funding engineering and design studies needed for an initial phase of the project. Gov. Mike Dunleavy has asked the Alaska Legislature to provide the $50 million to AIDEA in support of the Alaska LNG project.
The state development agency would make the $50 million payment if the Alaska LNG project does not move ahead to construction.
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US: Alaska LNG finds private developer for $44 billion project
The Alaska Gasline Development Corporation (AGDC) has struck a preliminary deal with an undisclosed energy company to develop Alaska LNG, a long-gestating liquified natural gas project now estimated to cost about US$44 billion.
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The unnamed firm will “privately lead and fund the development” of Alaska LNG, which will include an 807-mile pipeline from Alaska’s North Slope to an LNG export facility in Nikiski, as well as a carbon capture facility on the North Slope, AGDC President Frank Richards said Monday during a press conference on energy matters hosted by Alaska Governor Mike Dunleavy, a Republican who has supported the LNG plan.
Though the broad terms of the deal have been reached, AGDC will not reveal the name of the company until both sides have signed a legally binding contract, which Richards said could happen “within the next few months”.
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Japan’s Hokkaido Gas eyes new LNG terminal
Hokkaido Gas said on Tuesday it has decided to study the development of a “carbon-neutral” hub at the Tomakomai East Port to promote GX (green transformation) in Hokkaido.
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According to the utility, Hokkaido has the biggest potential for renewable energy in Japan.
In order to further accelerate the promotion of GX in Hokkaido, Hokkaido Gas is considering the construction of a new LNG terminal in the Tomakomai area, with a view to future hydrogen and e-methane introduction, the company said.
Hokkaido Gas said it will study the construction of LNG receiving facilities for ocean-going vessels, LNG tanks, vaporizers, facilities for domestic vessels and lorries, and hydrogen and e-methane utilization facilities.
The study will take place during fiscal 2024 and fiscal 2025.
Hokkaido Gas did not provide further information regarding the planned facility.
The utility operates the Ishikari LNG terminal located on Hokkaido, Japan’s second-largest island.
Launched in 2012, the 4.5 mtpa Ishikari LNG terminal has four LNG storage tanks with a total capacity of 840,000 cbm and reloading and truck loading facilities.
Hokkaido Gas shares the import facility with Hokkaido Electric Power, and the facility also supplies fuel to the nearby Ishikari power station.
Last year, Australian LNG player Santos agreed to deliver up to about 0.4 million tonnes per annum of LNG to Hokkaido Gas for 10 years, starting in 2027
Hokkaido Gas and Santos also intend to collaborate to explore carbon sequestration and e-methane opportunities to reduce carbon emissions across their respective portfolios.
https://crudetruth.substack.com/p/japans-hokkaido-gas-eyes-new-lng?utm_campaign=post&utm_medium=web
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LNG as a Marine Fuel/Shipping
Bangladesh : Fresh tender floated to import two spot LNG cargoes
State-run Rupantarita Prakritik Gas Company Ltd (RPGCL) has floated a fresh tender and re-issued another to purchase two spot LNG cargoes for February 13-14 and February 06-07 delivery windows respectively.
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The RPGCL re-issued the tender for one spot LNG cargo over February 6-7 delivery window after cancelling the previous one as it got higher-than-expected price quotes, nearing around US$16 per million British thermal unit (MMBTu), from the bidders, said an official.
The bid winners will deliver the LNG cargoes at Moheshkhali island in the Bay of Bengal, with options to discharge the cargo at either of the country’s two FSRUs, or floating storage re-gasification units, located on Moheshkhali island.
The RPGCL, a wholly owned subsidiary of state-run Bangladesh Oil, Gas, and Mineral Corporation, or Petrobangla, looks after LNG trades in Bangladesh.
The South Asian country floated these two tenders on January 8 with the bid submission deadline ending on January 13.
The volume of each of the spot LNG cargo will be around 3.36 million MMBtu.
Bangladesh last awarded one spot LNG cargo tender to Excelerate Energy LP of USA for Jan 30-31 delivery window at US$15.69 per MMBTu in the latest, the RPGCL official said.
Apart from spot LNG cargoes, Bangladesh has been importing LNG from its two existing long-term suppliers – Qatargas and OQ Trading International – for regasification in its two operational FSRUs.
https://thefinancialexpress.com.bd/economy/shrinking-rural-banking-weakening-cmsmes
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Oman: Oman LNG delivers first LNG cargo to Shell under new contracts
Muscat – Oman LNG on Tuesday announced the successful loading of its first liquefied natural gas (LNG) cargo to Shell under its new long-term agreements, marking a significant milestone in the company’s strategy to expand its global market reach and reinforce Oman’s position as a leading LNG supplier.
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The ceremonial event took place at Oman LNG’s state-of-the-art facility in Sur, under the auspices of H E Eng Salim al Aufi, Minister of Energy and Minerals, alongside senior officials from Oman LNG and Shell.
This landmark shipment signifies the beginning of a new chapter, aligning with Oman Vision 2040 and Oman LNG’s strategic goals to strengthen partnerships and secure sustainable growth.
H E Aufi, in his remarks, emphasised the importance of this milestone, saying, “Today’s shipment is not merely a delivery but a testament to Oman’s commitment to energy security, global collaboration, and sustainable economic growth. It also reflects the strong partnership between Oman LNG and Shell, built on mutual trust and a shared vision.”
Oman LNG’s CEO, Hamad al Naamany, highlighted the significance of this shipment, saying, “We are embarking on a 10-year concession extension with market leaders in LNG and energy. Our growth is aligned with Oman’s vision and adapted to the evolving global energy market demands. Our partnership with Shell continues to thrive, contributing to Oman’s economic diversification goals.”
Shell, as the largest offtaker under these new agreements, plays a pivotal role in Oman LNG’s strategic plans for sustained growth and market expansion.
The ceremonial loading was further graced by the presence of Shell’s management, underscoring the importance of this partnership and their commitment to the long-term collaboration between the two organisations.
As Oman LNG looks ahead, the company remains dedicated to delivering reliable and sustainable energy solutions to global markets while creating value for Oman and its stakeholders.
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Spain: Spain doubles LNG bunkering loadings compared to 2023
Spain contributed to the rest of Europe’s security of supply by supplying a total of 34.5 TWh of natural gas. According to Enagás, regasification terminals more than doubled LNG their bunkering loadings in 2024 compared to the previous year, contributing to the decarbonisation process of maritime transport.
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Furthermore, Spain contributed to the security of supply of the rest of Europe by supplying a total of 34.5 TWh of natural gas, both through interconnections and liquefied natural gas (LNG) ship loading.
The loading operations complied with the European Union’s 14th package of sanctions against Russia for the invasion of Ukraine, with Spain being the first EU country to define the detailed rules and procedures for the monitoring, control and authorisation of ship loadings carried out in order to ensure that the loaded LNG does not originate from Russia.
Moreover, in 2024, the Spanish Gas System received gas from 14 different origins, contributing to a broad diversification of supply and positioning Spain as an entry point for liquefied natural gas (LNG) from Europe.
Likewise, terminals carried out more than twice as many LNG bunkering loadings in 2024 (3.8 TWh) than in 2023 (1.5 TWh), thus contributing to the decarbonisation of the maritime sector.
https://safety4sea.com/spain-doubles-lng-bunkering-loadings-compared-to-2023/
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US: Seaboard Marine welcomes latest LNG-powered vessel
Seaboard Marine has announced the arrival of the Seaboard Victory, the second vessel in its cutting-edge LNG-powered V-Class fleet. The Seaboard Victory recently made its inaugural calls at the ports of Callao and Pisco, Peru, enhancing Seaboard Marine’s ability to provide sustainable and efficient maritime transportation.
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With a capacity of 3500 TEU, including over 1000 refrigerated container plugs, the Seaboard Victory brings added reliability and increased capacity to key trade routes across the Americas. This state-of-the-art vessel is powered by LNG, significantly reducing emissions while improving operational efficiency and aligning with Seaboard Marine’s ongoing commitment to environmental stewardship.
“The Seaboard Victory marks an exciting milestone as the second ship in our cutting-edge V-Class series of six vessels and the second of eight new LNG-powered ships transforming our fleet,” said Eddie Gonzalez, President and CEO of Seaboard Marine. “Its arrival reflects our dedication to sustainability and delivering exceptional service to our customers.”
The Seaboard Victory has joined a strategic rotation of ports in the Caribbean Basin, Central America, and South America, bolstering Seaboard Marine’s network and ensuring the seamless movement of goods across vital markets. Its advanced features and increased capacity are already positively impacting trade routes, especially for perishable and high-demand cargo.
The Seaboard Victory is one of eight LNG-powered vessels set to be integrated into Seaboard Marine’s fleet by the end of 2025. This underscores the company’s leadership in adopting innovative technologies to support sustainable regional trade.
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South Korea: HD Korea Shipbuilding begins 2025 exports with LNG carrier delivery
HD Korea Shipbuilding & Offshore Engineering Co. started its export activities for 2025 on Monday with the delivery of a liquefied natural gas carrier, according to the company.
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According to HD KSOE, the vessel being delivered is a 174,000-cubic-meter LNG carrier ordered in June 2022 by an undisclosed Asian shipping company.
The carrier was completed over a period of 2 1/2 years at a shipyard owned by affiliate HD Hyundai Samho Heavy Industries Co. in Yeongam, South Jeolla Province.
Other affiliates of HD KSOE — HD Hyundai Heavy Industries Co. and HD Hyundai Mipo Dockyard Co. — also plan to begin the delivery of two vessels, a 16,000 twenty-foot equivalent unit container ship and a 2,800 TEU container ship, respectively, this week, the company said.
Last year, HD KSOE successfully delivered a total of 144 vessels. For 2025, the company plans to deliver 139 vessels.
HD KSOE expects an improvement in profitability this year as many of the ships scheduled to be delivered this year were ordered after 2022, when international ship prices began to rise. (Yonhap)
https://www.koreaherald.com/article/10383436
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Germany: Venture Global ships first cargo from Plaquemines LNG
Venture Global has announced the loading and departure of the first LNG cargo produced from the company’s Plaquemines LNG facility. The inaugural commissioning cargo was loaded onto the Venture Global Bayou – one vessel in Venture Global’s fleet of nine new, state-of-the-art LNG ships – and is being shipped to EnBW in Germany, marking over 60 LNG cargoes sent from Venture Global into Germany since 2022. Plaquemines LNG is one of the two fastest greenfield projects of its size to reach first production and, now, first cargo delivery, along with Venture Global’s first project, Calcasieu Pass.
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“I am extremely proud of our team whose relentless execution has enabled Venture Global to continue to meet milestones at exceptional speed. In just five years, Venture Global has built, produced, and launched exports from two large scale LNG projects which has never been done before in the history of the industry,” said Venture Global CEO, Mike Sabel.
Plaquemines LNG is a 20 million tpy nameplate capacity project that reached a final investment decision on Phase One in May 2022, and on Phase Two in March 2023. Because of Venture Global’s unique configuration and construction approach, Plaquemines will produce and export LNG while construction and commissioning continues for the remainder of the project’s 36 trains and associated facilities. Like Venture Global’s Calcasieu Pass project, Plaquemines has exported its first cargo far in advance of the U.S. Department of Energy’s requirement to commence exports within seven years from issuance of the non-FTA export authorisation.
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Technological Development for Cleaner and Greener Environment Hydrogen & Bio-Methane
Hapag-Lloyd Secures Long-Term Agreement for Green Methanol Supply
In a significant move towards sustainable shipping, Hapag-Lloyd has announced a long-term offtake agreement with Goldwind, a prominent player in the clean energy sector based in Beijing, China. The agreement will see the delivery of 250,000 tonnes of green methanol annually, which will comprise a blend of bio- and e-methanol, reducing greenhouse gas (GHG) emissions by at least 70 per cent and meeting all current sustainability certification standards.
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Rolf Habben Jansen, CEO of Hapag-Lloyd AG, emphasized the company’s commitment to the Paris Agreement’s 1.5-degree target and its dedication to sustainable investments. “This agreement secures a significant portion of our requirements for green fuels, bringing us closer to our goal of achieving net-zero fleet operations by 2045,” Jansen stated. He highlighted Hapag-Lloyd’s ambition to lead in the transformation of the liner shipping industry.
As part of its Strategy 2030, the company aims to reduce absolute GHG emissions from its fleet by approximately one-third compared to 2022 levels. The new supply of green methanol is expected to save up to 400,000 tonnes of CO2 emissions annually when compared to conventional fuels.
Goldwind plans to establish a new green methanol production facility adjacent to its current project in Hinggan League, China, with early production volumes scheduled for delivery in 2026. Wu Gang, Chairman of Goldwind, expressed pride in the partnership, stating, “This collaboration highlights Goldwind’s ability to earn the trust of a leading shipping company, and we are excited to support Hapag-Lloyd in its decarbonization goals.”
Liu Rixin, head of Goldwind Green Methanol, mentioned that the planned factory will leverage shared technologies and facilities to enhance production efficiency, which is pending board approval for financial investment. The facility is expected to be completed by late 2027.
Jan Christensen, Senior Director of Global Fuel Purchasing at Hapag-Lloyd, noted, “Green methanol is a crucial component of our multi-fuel strategy, underscoring our commitment to sustainable shipping solutions. Our partnership with Goldwind is instrumental in making progress toward decarbonization.”
Furthermore, Hapag-Lloyd is converting five 10,100 TEU charter ships to include methanol dual-fuel propulsion systems by 2026. This initiative, along with recent investments in new container ships featuring low-emission dual-fuel liquefied natural gas engines, solidifies Hapag-Lloyd’s position in the multi-fuel future and its efforts to lead in the decarbonization of the liner shipping industry.
https://logistics-manager.com/hapag-lloyd-secures-long-term-agreement-for-green-methanol-supply/
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LG Energy Solution Powers Aptera’s Solar EV Future
LG Energy Solution partners with Aptera Motors to supply 2170 cylindrical batteries, advancing solar EV innovation & sustainable mobility in the US market LG Energy Solution has entered an exclusive partnership to supply cylindrical batteries for Aptera Motors, a solar EV manufacturer. The collaboration unveiled at CES 2025 in Las Vegas aims to accelerate the production and adoption of solar-powered transportation in the US market.
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The agreement
The partnership is anchored by a three-party Memorandum of Understanding (MoU) between LG Energy Solution, Aptera and CTNS, a battery module and pack manufacturer.
UNDER THE AGREEMENT:
Exclusive Supply: LG Energy Solution will exclusively provide 4.4GWh of 2170 cylindrical battery cells from 2025 to 2031.
Battery Integration: CTNS will produce optimised modules and packs using LG Energy Solution’s cutting-edge cells, tailored to Aptera’s proprietary design.
Solar EV Production: Aptera will integrate the components into its solar EV, delivering unmatched efficiency and performance.
Sustainable mobility
Aptera’s solar EV is poised to redefine the industry. With a lightweight carbon fibre structure and innovative design minimising air resistance, the vehicle offers:
Impressive Range: A driving range of 643 km (400 miles) on a single charge.
Solar Efficiency: Integrated solar panels power up to 64 km (40 miles) daily or over 16,093 km (10,000 miles) annually.
Eco-Friendly Design: Recyclable materials and no-welding assembly for cost-effective and sustainable manufacturing.
The combination of features reflects a commitment to environmental sustainability and advanced mobility.
LG Energy Solution’s cylindrical batteries are critical to Aptera’s success. The batteries incorporate advanced features, including:
High-Performance NCMA Cathodes: Enhanced with aluminum for greater safety and efficiency.
SRS Technology: Proprietary Safety Reinforced Separator with a ceramic coating, ensuring robust performance.
“As a global leader in the battery industry, LG Energy Solution is committed to enabling innovation that shapes the future of mobility. The partnership with Aptera is a testament to our mission to empower every possibility, supporting the realisation of solar-powered transportation while delivering advanced battery technology, ensuring practicality and flexibility for drivers.”
https://evmagazine.com/technology/lg-energy-solution-powers-apteras-solar-ev-future
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BT Group Leads UK with Largest Electric Vehicle Fleet
The BT Group has announced a landmark order for approximately 3,500 EVs, marking the UK’s largest-ever commercial EV fleet purchase. The initiative strengthens BT Group’s commitment to sustainability and supports the development of the nation’s broadband and mobile networks.
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With the completion of this latest order by 2026, BT Group will operate nearly 8,000 EVs, establishing itself as the owner of the largest EV fleet in the UK. The move aligns with the company’s target to achieve net-zero emissions by March 2031.
Driving sustainability across operations
BT Group, which includes Openreach, manages over 27,000 vehicles across its operations, making it the UK’s second-largest commercial vehicle fleet.
Currently, the company operates around 4,300 EVs, with the new order forming part of a broader delivery of 6,000 vehicles, more than half of which will be electric.
These vehicles will enable engineers to efficiently build and maintain next-generation mobile and broadband networks, including the UK’s largest full-fibre broadband network. Openreach engineers are already building connectivity to more than 16 million homes and businesses and aim to reach 25 million premises by the end of 2026.
BT engineers are responsible for maintaining more than 19,500 mobile masts for EE’s mobile network and managing 5,600 telephone exchanges across the UK.
Commitment to carbon reduction
Simon Lowth, Group Chief Financial Officer at BT
Simon Lowth, Group Chief Financial Officer at BT highlighted the significance of this EV order: “By integrating yet more electric vehicles into our operations, we are taking another significant step towards reducing our carbon footprint and supporting the UK’s transition to a greener future.
“As we extend our full fibre build from 16 million homes and businesses today to 25 million by the end of 2026, having the most efficient, sustainable EVs will give our engineers the edge as they connect customers at pace to our next-generation networks. Our modern fleet will help us to be more efficient and deliver a better service for our customers.”
Government support for decarbonisation
The initiative has garnered praise from the government.
Lilian Greenwood, the Future of Roads Minister, highlighted the importance of business contributions to the EV transition: “Businesses have a crucial role to play in driving the transition to electric cars and vans.
“That’s why it’s fantastic to see that BT Group have made the most of our plug-in van grant to order 3,500 new EVs – which means they will have the largest electric commercial fleet in the UK.
“We want to help more businesses decarbonise their operations, and we’ve extended our plug-in van grant with £120m funding to help roll out more zero-emission vans on our roads – part of our US$2.83 billion to support industry and consumers switch to EVs and make the transition a success.”
Collaboration with leading manufacturers
Four major manufacturers, Ford, Stellantis, Toyota and Renault, will fulfil the EV order over the next two years.
By design, the vehicles provide engineers with modern, efficient tools to support their work in advancing connectivity and sustainability across the UK.
https://evmagazine.com/fleet-and-commercial/bt-leads-uk-largest-electric-vehicle-fleet
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