NGS’ NG/LNG SNAPSHOT – July 1-15, 2021
National News Internatonal News
City Gas Distribution & Auto LPG
ISGF and NGS jointly launched India City Gas Distribution Forum
The Government of India has set the target of 15% gas-based economy by 2030 and licenses have been issued for City Gas Distribution (CGD) in urban areas in 407 districts spread across 28 States and Union Territories that cover about 70% of the population of the country.
To create a collaboration platform between the CGD companies and electricity distribution companies (DISCOMs), India Smart Grid Forum (ISGF) and Natural Gas Society (NGS) have jointly promoted India CGD Forum. There are many similarities between the work of electricity and gas distribution companies and there is immense scope for sharing of assets – both physical and digital assets. Sharing of GIS maps, common billing and collection systems, common call centers, sharing of last mile connectivity for network automation and smart metering etc. Policy makers and regulators from both the domains can also share their experiences and challenges. This forum promotes the initiatives of the Government of India towards the gas-based economy.
Besides promoting collaboration between CGD companies and DISCOMS, this Forum will come up with customized training programs, workshops and conferences on City Gas Distribution. This Forum will also ensure the Collaboration amongst all stakeholders and will create research reports, technical reports, white paper on latest technologies and practices in the CGD Sector. A web portal for India CGD Forum was launched at this webinar on 15th july 2021.
Electric Mobility & Bio- Methane
Maharashtra announces sops up to Rs 20 lakh for electric vehicles
Electric vehicles in Maharashtra will attract financial incentives ranging from Rs 10,000 to Rs 20 lakh and housing societies will earn rebates in property tax for setting up charging stations as part of the government’s big e-mobility push.
The state government announced its electric vehicle policy on Tuesday, july 13, 2021, offering sops for fresh purchases, scrapping and manufacturing of e-vehicles, components and batteries.
All EVs in the state will be exempt from road tax and registration charges under the scheme. Electric two-wheelers and cars would get a maximum incentive of Rs 10,000 to Rs 1.5 lakh, respectively while buses would be eligible for Rs 20 lakh. The number of vehicles getting incentives will be capped. The government will encourage urban local bodies to give rebates in property tax to housing societies setting up charging stations and promote the manufacturing of vehicle batteries under the PLI scheme of the central government.
Mahindra partners with Magenta to deploy 100 electric three-wheelers Treo Zor
NEW DELHI: Mahindra and Mahindra Ltd on july 6, announced collaboration with Magenta, electric mobility solutions provider, to deploy 100 units of its electric three-wheeler, Treo Zor, in Bengaluru.
GAIL targets 1 GW renewable energy capacity
GAIL India will invest about Rs 5,000 crore to build a portfolio of at least 1 gigawatts of renewable energy and set up compressed biogas as well as ethanol plants.
GAIL will be laying pipeline infrastructure to connect consumption centers to gas sources and spend as much as Rs 4,000 crore on renewable energy.
Converting municipal waste into compressed biogas will supplement the availability of cleaner fuel to automobiles and households. While the renewable energy push would cost Rs 4,000 crore, setting up at least two compressed biogas plants and an ethanol factory would entail an investment of about Rs 800-1,000 crore.
Gas/ Pipelines/ Company News
COAL INDIA to replace diesel with LNG in earth movers
State-owned coal producer Coal India plans to replace diesel with LNG as the fuel for its heavy earth moving machines. Coal India will initiate pilot projects with Gail, India’s biggest gas marketer, in some mine sites before going in
for large-scale use of LNG. Gail will establish LNG storage and dispensing systems, arrange transport of LNG from the terminal to the mine site, and arrange to retrofit.
Indian state-run heavy equipment makers Bharat Earth Movers will provide all technical assistance. One of the pilot projects at Bharatpur opencast mine of Mahanadi Coalfields in the state of Odisha will be completed by the end of this year. Coal India said it will also introduce around 1500 e-vehicles in all its mining areas over the next five years. Around 200 e-vehicle will be put in operation by the end of this year.
Megha Gas opens CNG station in Warangal
Warangal: Megha Gas, the hydrocarbon division of Megha Engineering and Infrastructures Limited (MEIL), opened its compressed natural gas (CNG) station in association with the Indian Oil Corporation Ltd (IOCL)
here on july 12, 2021. IOCL Deputy General Manager (sales) M Dharma Rao along with IOCL Engineer-in-chief VRL Hariprasad, Megha Gas Retail Sales Manager Deva Chandrashekhar and others inaugurated the CNG facility set up on the premises of the Sri Rama Filling Station at Diesel Colony on the Bhupalpally road in the city.
Great Eastern Energy Corporation to invest Rs 15,000 crore for shale gas core well exploration in Bengal
Great Eastern Energy Corporation Limited (GEECL) plans to invest about Rs 15,000 crore for shale gas core well exploration after the Bengal government clears an amendment to the mineral lease agreement.
Policy Matters/ Gas Pricing/Others
Hardeep Singh Puri takes charge of Petroleum Ministry
Hardeep Singh Puri on july 06, took charge of the Ministry of Petroleum and Natural Gas. He has relinquished the portfolio of civil aviation but still holds the Housing and Urban Affairs Ministry.
Oil ministry draft rules give boost to CGD companies
The Ministry of Petroleum and Natural Gas has come out with draft rules, which majorly talks about the extra competition that the city gas distribution (CGD) companies would have faced. According to the
Petroleum and Natural Gas Regulatory Board (PNGRB) rules, more competition had been allowed which would have hurt around 20 percent of volumes for the CGD companies.
In the draft rules, the oil ministry says that none of the companies will be able to sell compressed natural gas (CNG) and piped natural gas (PNG) in the authorised areas unless they have a license, that is without the permission of the central government. That would mean that the competition will only be limited to the commercial and also the industrial segment.
LNG Use/ LNG Development and Shipping
Baidyanath to start country’s first commercial LNG filling station
NAGPUR: Makers of Ayurvedic medicines from the city, Shree Baidyanath, has diversified into liquified natural gas (LNG) sale. The company will be inaugurating the country’s first commercial LNG filling station in the city on july 11, 2021.
Natural Gas / Transnational Pipelines/ Others
SPAIN: Valladolid bus operator awards agreement to acquire 57 new NGVs
AUVASA’s (Autobuses Urbanos de Valladolid) contracting board for the framework agreement for the acquisition of CNG urban buses resolved the award to SOLARIS BUS IBERICA S.L.U.
The agreement with Solaris supposes the incorporation of 35 rigid and 22 articulated buses during the next four years, being IVECO Spain also classified in the scope of this agreement.
The new CNG buses will have engines that meet the Euro VI step E regulations, optimizing energy efficiency levels with lower levels of polluting emissions, reduced noise pollution and a significant improvement in ride and driving comfort. All of them will have three doors, as well as advanced air conditioning systems with HEPA filter and indoor air quality measurement (the latter being of special interest in the context of the COVID-19 pandemic).
SWEDEN: Scania and FlixBus unveil first long-distance coach powered by biogas
Scania, mobility provider FlixBus and Gasum have partnered to launch the first international coach running on biomethane, which will operate the Stockholm-Oslo route.
ITALY: Snam opens 1500th NGV station in Italy, its first with bioCNG self-service
Snam4Mobility, Snam’s subsidiary operating in the sustainable mobility sector, has opened in Verona its first self-service CNG and biomethane refueling station, allowing motorists to refuel in complete autonomy, 24 hours a day.
The facility, managed by Goldengas, will only supply alternative and eco-friendly fuels, including advanced biomethane from the Snam plant in Albairate, in the province of Milan, obtained from organic waste and which will be available at the station in the coming months.
The opening of the facility, which is the 1,500th natural gas station in Italy, was celebrated with an event attended by the Mayor of Verona Federico Sboarina, the President of NGV Italy Mariarosa Baroni. To enable all motorists to refuel in self-service mode in complete safety, following the issuance of the relevant decree, in November 2020 Snam launched the iovadoametano.it website, a reference portal on the sector of sustainable mobility using natural gas and biomethane, with a special video tutorial.
Global LNG Development
First LNG stations in northern Peru will be ready by the end of the year
Quavii, a trademark company of the Gases del Pacífico and part of Promigas, plans to launch the first two LNG service stations in the north of the country.
USA: Chevron, partners go ahead with $4 bln project at Gorgon LNG
Chevron Corp and its partners in the Gorgon LNG project off Western Australia have agreed to go ahead with a $4 billion project to improve gas recovery from offshore wells
and keep the huge liquefied natural gas plant filled for 40 years, as reported by Reuters.
The decision comes as Australia’s LNG exporters tout their role in helping Asian customers switch from using dirtier coal in power generation, while the Australian government faces international pressure to do more to curb carbon emissions. The J-IC project involves building a 27,000-tonne floating field control station, a subsea compression infrastructure and a 135-kilometre (84-mile) underwater power cable to Barrow Island, where the 15.6 million tonnes a year LNG plant is.
PAKISTAN: SSGCL to allocate its own land for two new LNG terminals
Sui Southern Gas Pipeline Limited will provide its own land for the construction of two new LNG terminals as PSM is asking for Rs 35 million per acre for the lease of land,
which is 23 times higher than the Sindh government lease rate of Rs 1.5 million per acre for 99 years, official sources told The Nation.
To further expand the country’s LNG market Ogra had granted Licences to Tabeer and Energas to undertake regulated activity related to the sale of re-gasified liquefied natural gas (RLNG). However, there were some impediments related to the allocation of land for tie-in facilities and allocation of pipeline capacity. Regarding pipeline capacity allocation in the Inter-Ministerial Committee meeting, it was informed that SSGC has offered allocation of pipeline capacity of 44 mmcfd to M/s Energas, and 150 mmcfd to M/s Tabeer till Pakland. SNGPL to allocate 75 to 100 mmcfd to each of terminal developers beyond Pakland.
THAILAND: Egat allocates 20bn for LNG terminal
State-run Electricity Generating Authority of Thailand (Egat) has joined hands with national oil and gas conglomerate PTT to co-invest in a second liquefied natural gas (LNG) receiving terminal project in Rayong as part
of new gas supply management. Egat expects to spend 20 billion baht in capital expense for the investment, said Egat governor BoonyanitWongrukmit.
Egat and PTT recently signed a memorandum of understanding on co-development of the new facility, with a storage capacity of 7.5 million tonnes per year, in Rayong’s Nong Fab. The joint venture is scheduled for completion in the third quarter next year. To achieve that goal, the NEPC allowed Egat and other energy firms to apply for LNG import licences so to access the LNG shipping supply chain.
SRI LANKA: New Fortress Energy and Government of Sri Lanka Sign Agreement for LNG Terminal and Gas Supply to Power Plants
New Fortress Energy Inc. (NASDAQ: NFE) (“New Fortress”) announced on july 08, 2021, that it has signed a Framework Agreement (the “Agreement”) with the Government of Sri Lanka to
construct a new offshore liquefied natural gas (LNG) receiving, storage and regasification terminal (the “Terminal”). The Terminal will be located off the coast of Colombo to supply gas to the country’s power plants, primarily located in the Kerawalapitiya Power Complex. The Kerawalapitiya Power Complex consists of 300 MW in operation today and is ultimately expected to grow to over 1,000 MW by 2025.
As part of the Agreement, New Fortress will supply natural gas to the existing 300 MW Yugadanavi Power Plant and is negotiating the purchase of the Government’s 40% stake in the company that owns the power plant. This power plant is currently under a long-term power purchase agreement (PPA) to provide electricity to the national grid that extends through 2035. The plant consists of General Electric turbines and was configured to run on natural gas in combined cycle.
Natural Gas / LNG Utilization
AUSTRALIA: BEACH JV inks gas deal with mid-west LNG
Beach Energy and Mitsui have signed a five-year gas supply agreement (GSA) with Mid-West LNG, a unit of Perth-based Clean Energy Fuels Australia. Under the GSA, which is expected to come into force next year,
Beach and Mitsui’s Waitsia joint venture will supply a base volume of approximately 2 terajoules/day of gas from the Xyris production facility, with an option to increase the base volume as CEFA’s gas requirements grow in the future.
CEFA is developing small-scale LNG infrastructure assets for remote mining operations and communities within Australia. CEFA, through Mid-West LNG, is in the process of building its first phase of an LNG Hub in Mount Magnet, which will process gas supplied under this GSA into LNG that will be trucked to CEFA’s customers.
QP to supply LNG to Shell in China
Qatar Petroleum has signed a 10-year sales and purchase agreement with Shell to supply 1mn metric tons/year of LNG to China, with deliveries set to commence in January 2022, the company said on june 30.
The deliveries will come from Qatargas 1, QP’s joint venture with TotalEnergies, ExxonMobil and Japanese companies Marubeni and Mitsui that operates 10mn mt/yr of LNG liquefaction capacity in Qatar. QP is set to become the 100% owner of Qatargas 1 at the start of next year, when its joint venture agreement with its partners expires.
Qatari energy minister and QP CEO, Saad Sherida Al-Kaabi, noted the supplies would be delivered to Shell’s end customers in China, “thereby further supplementing Qatar’s contribution to meeting China’s growing energy needs.” With the deal’s conclusion, Qatar will have long-term supply contracts covering 12mn mt/yr of LNG to China.
Japan set to cede LNG import crown to China
China is on track to overtake Japan as the world’s largest buyer of liquefied natural gas, yet another sign of Beijing’s economic ascendance and the relative decline of Tokyo’s standing.
Chinese LNG imports are projected at 75.5 million tons this year, according to analytics firm Rystad Energy, edging out Japan’s 75.1 million tons.
Japan has been the world leader in LNG purchases for the past half century. But the national market has matured and topped out. Over the past few years, Japanese utilities and gas companies have shortened LNG contracts at smaller volumes. For decades, Tokyo has encouraged domestic corporations to acquire resource interests overseas to ensure energy security. The goal is to raise the share of self-developed petroleum and natural gas to 40% or more by 2030.
USA: LNG hopeful for $30B project inks 20 year lease in Lake Charles as it lost a $2.5B customer
The Lake Charles Harbor and Terminal District board of directors approved a 20-year ground lease with Houston-based Tellurian Inc. this week for its proposed $30 billion liquefied natural gas export terminal in Calcasieu Parish.
The lease could be extended up to 50 years.
The 477-acre site in Sulphur was a former operation for Louisiana-founded offshore oil and gas services business Global Industries, a publicly traded business acquired by French engineering giant Technip in 2011. The district acquired the site years ago. Tellurian had signed a short-term agreement back in 2016, which included land in addition to what is described as a throughput.
AUSTRALIA: Aussie east coast LNG exports up 8% in june
LNG exports from the three projects on the Australian east coast came to 1.84mn metric tons in june, up 8.2% year/year, according to the data published by Gladstone Ports Corporation on july 06. Exports were down 1.6% month/month.
China imported 1.16mn mt of LNG last month, down 14.7% yr/yr, the data showed. South Korea imported 287,758 mt, up from 279,006 mt last year while shipments to Malaysia totalled 186,835 mt, up 197% yr/yr. India imported 70,412 mt of LNG last month. The south Asian nation did not import any LNG in june 2020.
The three projects exported 22.36mn mt in 2020, up over 1% yr/yr despite the Covid-19 pandemic. The projects are APLNG; Gladstone LNG and Queensland Curtis LNG.
LNG as a Marine Fuel/Shipping
SOUTH KOREA: Samsung Develops Engineless, Fuel Cell-Powered LNG Carrier
Samsung Heavy Industries announced on 1 july, 2021 that it has secured approval in principle from DNV for the development of the world’s first engineless, fuel cell-powered LNG carrier.
The design features a solid oxide fuel cell (SOFC) power plant produced in cooperation with the U.S.-based manufacturer Bloom Energy.
The fuel cell-powered LNG carrier does not require a marine diesel engine for propulsion, and will derive its motive power solely from an SOFC system. Like existing diesel- and steam-powered LNG carriers, it will run on the vaporized boil-off gas from the vessel’s LNG cargo tanks. It will be less polluting, with no appreciable emissions of SOx, NOx or PM. The design will reduce the vessel’s tank-to-wake greenhouse gas emissions. The fuel cell also has far fewer moving parts than a diesel engine, simplifying maintenance. SHI plans to conduct a demonstration test at its LNG demonstration facility at the Geoje Shipyard, and it plans to launch full-scale marketing for the new vessel design for global shipowners.
PAKISTAN: Qatar LNG supply in limbo as govt drags feet on dry dock
LAHORE: An indecisive Federal Ministry of Energy dragged its feet on carrying out dry docking of the most efficiently run Liquefied Natural Gas (LNG) based Floating Storage and Regasification Unit (FSRU),
missing several low demand periods during mild weather and lockdowns despite repetitive reminders.
As a last resort, Qatar was contacted to allow a filled FSRU in place of outgoing ship with a view to saving shutdown time but that move was too late to be a starter given the documentation required for this purpose. Hence, Qatar, the principal and pioneering exporter of LNG to Pakistan was left with no option but to refuse loaded LNG ship as no time was left to fulfill altered contractual requirements in this regard.
The federal government, while admitting delayed dry docking a matter of serious concern has already constituted a committee under the chairmanship of Railway Minister Azam Swati to investigate the reasons behind the delay in dry docking of Engro’s FSRU and fix the responsibility for the mess.
FRANCE: Totalebergies, partners develop Bio-CNG for shipping
French energy firms TotalEnergies and Engie, Provencale domestic waste treatment plant operator Evere and shipping and logistics firm CMA CGM have joined forces on a possible liquefied biomethane (bio-LNG) production project.
Bio-LNG, combined with the dual-fuel gas engine technology developed by CMA CGM, reduces greenhouse gas emissions (including CO2) by at least 67% relative to well-to-wake very low sulphur fuel-oil, using the complete value chain. On the basis of a tank-to-wake measurement (at vessel level), greenhouse gas emissions are reduced by 88%. Engie subsidiary Elengy’s LNG terminals will be used for the storage and delivery of the bio-LNG and TotalEnergies’ bunker vessel will be at the port from next January.
Technological Development for Cleaner and Greener Environment Hydrogen & Bio-Methane
USA: Caterpillar continues to build decarbonisation portfolio with investment in modular hydrogen production company BayoTech
Following its Memorandum of Understanding with low carbon energy solutions company Certarus in April, a company that delivers (CNG), renewable natural gas (RNG) and hydrogen to industrial customers not connected to a pipeline,
Caterpillar has now made an investment in BayoTech, Inc, a global leader in localised hydrogen production.
BayoTech announced an indirect equity investment from Caterpillar Venture Capital Inc, the venture capital arm of Caterpillar Inc, the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives, through Cottonwood Technology Funds. The proceeds will be used to accelerate BayoTech’s strategic growth through product development, project development and infrastructure expansion.
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