NGS’ NG/LNG SNAPSHOT July 1-15, 2025
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NATIONAL NEWS
City Gas Distribution & Auto LPG
Megha Gas commissions CNG station in Amroha, Uttar Pradesh
In a recent development, Megha City Gas Distribution Private Limited has commissioned daughter booster compressed natural gas (CNG) station at Didauli in Amroha geographical area (GA), Uttar Pradesh. With this, Megha Gas has eight CNG stations in Amroha GA. The Petroleum and Natural Gas Regulatory Board (PNGRB) has authorised Megha Gas to lay city gas distribution (CGD) infrastructure in 62 districts across 22 GAs in ten states of Andhra Pradesh, Telangana, Tamil Nadu, Karnataka, Odisha, Maharashtra, Madhya Pradesh, Punjab, Rajasthan and Uttar Pradesh.
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More info: https://cgdindia.net/megha-gas-commissions-cng-station-in-amroha-uttar-pradesh/
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Motihari set to get piped natural gas within a year
Motihari: The foundation for laying a medium-density polyethylene (MDPE) pipeline to supply piped natural gas (PNG) under Bharat Petroleum Corporation Limited’s (BPCL) city gas distribution project was inaugurated in Motihari on Sunday by MP and former Union minister Radha Mohan Singh. The Rs 2,000-crore project will bring clean and affordable fuel to thousands of homes.
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Regional manager (gas) of BPCL said nearly 50,000 households in Motihari would be connected to the PNG network within a year. Unlike liquefied petroleum gas (LPG), which comes in cylinders, PNG is supplied directly through pipelines, offering an uninterrupted supply and enhanced safety due to its lower pressure and quick dissipation in case of leaks.
“Until 2014, only 15,340km of gas pipelines had been laid in the country. In the past 10 years, this has grown to around 25,000km and another 10,000km is under construction,” Singh said. He credited the Narendra Modi-led central govt for this expansion and added that gas pipeline development offers an economical and eco-friendly transport solution.
The petroleum ministry has authorised BPCL to execute city gas distribution in East and West Champaran, Gopalganj, Siwan and Deoria districts in Bihar and Uttar Pradesh. A steel pipeline is being laid from Gorakhpur to Bettiah and Raxaul, via Deoria, Siwan and Gopalganj. Once completed, natural gas will benefit not only households but also hotels, restaurants and small industries, reducing monthly fuel expenses and eliminating the need for cylinder refills.
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Lands allotted to TIDCO for supply of natural gas
CHENNAI: The GCC has allotted places in the city to Tamil Nadu Industrial Corporation Limited (TIDCO) for the establishment of district regulation station (DRS) for natural gas supply. The State government published the TN City Gas Distribution Policy, 2023, aiming to use natural gas in urban areas. After this, many authorised natural gas distributors urged the government to allot dedicated places to establish DRS.
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Bowing to the demand, the GCC allotted 8 places in the city after perusing the feasibility report from zonal ofcers. In another resolution, it also agreed to spend more than Rs 3.50 crore to extend the operation of the micro compost centre to another year.
The centre converts 50 metric tonnes of solid wastes in zone 1-8 on a daily basis. The centres will also produce fertilisers for public use, said the resolution.
https://www.dtnext.in/news/tamilnadu/lands-allotted-to-tidco-for-supply-of-natural-gas-838724
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Delhi CM inaugurates bio CNG plant in Mathura village, visits temple
Delhi CM Rekha Gupta prayed at Shri Banke Bihari Temple for Delhi’s development, inaugurated a bio-CNG plant, and emphasized green energy initiatives. Chief minister Rekha Gupta offered prayers at Shri Banke Bihari Temple in Vrindavan for the development of Delhi on Sunday morning. This was the second day of her visit to Mathura district.
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‘I had an opportunity to offer my prayers at Shri Banke Bihari Temple in Vrindavan today. I prayed for ‘Viksit Delhi’ along with ‘Viksit Bharat’. By God’s grace and blessing, we can do our maximum for Delhi’s development and serve the masses of Delhi with full dedication and commitment,’ said Gupta after visiting the temple.
Rekha Gupta was in Kosi Kalan on Saturday along with Uttar Pradesh cabinet minister and MLA from Chhata (Mathura), Laxmi Narain Chaudhary. She inaugurated a 2.5-tonne-per-day capacity bio-CNG plant in Kamar village near Kosi Kalan on Saturday.
During the inauguration, she criticised past governments for pollution in the Yamuna river. She stressed to focus on establishing cow dung gas plants to curb waste and produce green energy. She announced plans for two such plants to be commissioned by the end of this year to prevent cow dung from entering the Yamuna.
She also visited Govardhan Girraj in Mathura accompanied by Meghshyam Singh, the local BJP MLA from Govardhan on Saturday and offered parikrama (circumambulation) of hillocks. “It gives immense peace to mind and soul when one offers prayers at Goverdhan,” she said. CM was accompanied by Meghshyam Singh, the local BJP MLA from Goverdhan.
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A third of India’s 307 city gas distribution areas without pipe connectivity
Nearly a third of India’s city gas distribution areas lack pipeline connectivity, hindering fuel adoption. Licensees in 91 areas are unconnected, with some relying on tankers. Pipeline operators cite land handover delays, while city gas companies point to skid delivery issues and distant tap-off points. Connectivity for 44 areas is targeted by December.
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Nearly a third of India’s 307 licensed city gas distribution areas are still unconnected to the natural gas pipeline network, hampering faster fuel adoption and causing licensees to miss customer connectivity targets.
A total of 91 licensed areas aren’t connected to the national gas pipeline network, with licensees in 44 of these areas using tankers to serve customers, according to the minutes of a meeting held by the Petroleum and Natural Gas Regulatory Board to review and help resolve the connectivity gaps. Twenty-one licensed areas remain unserved either by pipelines or tankers.
During the meeting, it was decided that connectivity would be provided to 44 licensed areas by December, according to the minutes. Natural gas pipeline operators blamed the “delay in the handing over of land by city gas distribution entities” for the absence of connectivity in many licensed areas, according to the minutes. It takes about six months after the handover of land to set up a city gas distribution skid that is used to measure and regulate the flow and pressure of gas and remove impurities.
City gas companies blamed the absence of connectivity on the “delay in delivering non-standard skids” and, in some cases, on the distant location of natural gas pipeline’s tap-off points from the licensed areas’ boundaries.
Executives at city gas companies say it’s not possible to serve a large base of households using tankers in any licensed area, as homes cannot tolerate a dryout due to any supply chain trouble. They argue that pipeline connectivity is essential, and natural gas pipeline operators should show flexibility in providing more than one tap-off point for a licensed area to make it efficient for city gas distributors. “After deliberations, it was directed that the city gas distribution entities expedite the process of land handover to the natural gas pipeline entities and ensure effective planning for skid installation and commissioning at the site,” according to the minutes.
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Natural Gas/ Pipelines/ Company News
GAIL to invest ₹1067.50 crore in Talcher Fertilizers rights issue
GAIL (India) Ltd announced it will invest ₹1067.50 crore by subscribing to 106.75 crore equity shares of Talcher Fertilizers Limited at ₹10 per share through a rights issue. The investment comes as part of the joint venture’s capital expansion plans.
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Talcher Fertilizers, established in 2015, is a joint venture between GAIL, Coal India Ltd, Rashtriya Chemicals & Fertilizers Ltd, and Fertilizer Corporation of India Ltd.
The company was set up to revive the Talcher unit through a coal gasification-based fertiliser plant in Odisha. GAIL India, Coal India, and Rashtriya Chemicals & Fertilizers each hold 33.333 per cent stakes, while Fertilizer Corporation of India holds 0.0002 per cent.
GAIL reported mixed Q4FY25 results with revenue rising 2.1 per cent year-on-year to ₹35,685 crore, but net profit nearly halved to ₹2,049 crore. However, EBITDA increased 13.3 per cent to ₹3,215 crore with margins expanding 90 basis points quarter-on-quarter to 9 per cent.
Citi expects regulatory catalysts in the gas sector with PNGRB likely to approve new transmission tariff guidelines and GAIL’s final tariff order expected soon. The brokerage identified IGL and GSPL as key beneficiaries alongside GAIL, while Gujarat Gas and MGL could face negative impact.
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OIL, GAIL signs GSPA for natural gas supply
In a notable development, Oil India Limited (OIL) and GAIL (India) Limited have signed gas sale and purchase agreement (GSPA) for supply of up to 900,000 standard cubic meters per day (scmd) natural gas, starting from July 2025.
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As per the agreement, OIL would supply natural gas from its Rajasthan fields to Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL)’s power plants via GAIL’s transmission network for a period of 15 years.
For more information https://cgdindia.net/oil-gail-signs-gspa-for-natural-gas-supply/
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Mahanagar Gas Starts Facility Where Customers Can Text Their Meter Readings And Generate Bills
Domestic customers can now send a photograph of their PNG meter showing the meter reading and meter number against request received from MGL’s official WhatsApp account to ensure timely and accurate billing.
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Mahanagar Gas on Wednesday announced that it has started a facility wherein domestic consumers can send meter reading through instant messaging app WhatsApp for bill generation.
Domestic customers can now send a photograph of their PNG meter showing the meter reading and meter number against request received from MGL’s official WhatsApp account to ensure timely and accurate billing, as per an official statement.
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ONGC inks pact with Japan’s Mitsui OSK for ethane carriers
New Delhi: State-owned Oil and Natural Gas Corporation (ONGC) has signed an agreement with Japan’s Mitsui OSK Lines to enter into a partnership to build two very large ethane carriers that will be used to import petrochemical feedstock for its subsidiary. In a regulatory filing, ONGC said it signed a Heads of Agreement on Thursday with Mitsui “to enter into a partnership to build, own and operate two very large ethane carriers (VLECs).
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It, however, did not give financial details of the partnership, including the equity stake the two firms would hold.
“The VLECs shall be shipping imported ethane to ONGC Petro Additions Limited (OPaL), a subsidiary of ONGC, for captive use as feedstock,” the filing said. “This arrangement is subject to Board approval and further details shall be shared after signing of the partnership agreement.
ONGC plans to import ethane starting in mid-2028 to compensate for the altered composition of liquefied natural gas (LNG) sourced from Qatar, according to a tender that the state-owned firm floated in March this year for selecting a partner for building the VLECs.
India imports 7.5 million tonnes per annum of LNG from Qatar. Under the deal, QatarEnergy supplies 5 million tonnes a year of LNG that contains methane (used to produce electricity, make fertiliser, converted into CNG or used as cooking fuel) as well as ethane and propane — feedstock to make LPG and petrochemicals on a firm basis and the rest on best endeavour basis.
This contract is coming to an end in 2028 and the revised contract signed last year envisages QatarEnergy supplying ‘lean’ gas (one that is stripped of ethane and propane).
ONGC had spent about Rs 1,500 crore in setting up a C2 (ethane) and C3 (propane) extraction plant at Dahej in Gujarat. The C2/C3 so extracted was used as a feedstock in its petrochemical subsidiary, OPaL.
With the changed composition of LNG, the company is now looking at importing ethane.
OPaL “is having a mega grassroot petrochemical complex and having the largest standalone dual feed cracker in Southeast Asia. Plant is having a dual feed cracker i.e. a mix of Naphtha and C2 (Ethane), C3 (Propane) & C4 (Butane) as feedstock,” the tender document had said. “ONGC plans to source and supply 800,000 tonnes per annum of ethane to secure the feedstock for OPaL, from May 2028 onwards.
And to ship this ethane, it has formed a joint venture with Mitsui to build VLECs that could ship the feedstock.
ONGC will be responsible for sourcing ethane. It will hire the VLECs from the joint venture for the shipping of ethane.
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ONGC conducts mock drill at onshore gas terminal in Kakinada
The Oil and Natural Gas Corporation (ONGC) conducted a mock emergency drill at the Onshore Gas Terminal (OGT) at the Mallavaram site in Kakinada district on Tuesday.
The mock drill aims at assess preparedness for any emergency that may arise during the day-to-day operations at the site. Deputy chief inspector of factories G. V. V. Narayana and inspector of factories K. Rambabu reviewed the mock drill.
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“The drill aims to evaluate the effectiveness of the terminal’s emergency response plan, assess the coordination among various teams, and ensure compliance with statutory safety regulations,” said an official release.
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Piped natural gas: Beyond business as usual
The PNG sector faces hurdles on permission delays, transmission access and tax parity. A facilitative policy approach can power the sector’s growth
As India transitions to a cleaner future, natural gas is emerging as a crucial bridge fuel. Recognising its strategic role, the government aims to increase the share of natural gas in the primary energy mix to 15 percent by 2030 from the 2022 level. As a part of this push, expansion of city gas distribution (CGD) networks has come into focus, witnessing the fastest growing gas demand and becoming the second-largest gas consuming sector after fertilisers. Yet the segment seems to be facing various hurdles to its growth, especially on the regulatory and policy fronts.
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The Indian government has awarded 307 geographical areas across 12 bid rounds, spread over around 748 districts by 2024. The CGD companies—public and private—have committed to connect 120 million piped natural gas (PNG) users by 2030.
However, the actual rollout figures tell a different story. Currently, India has over 15 million PNG connections with nearly 1.6 million connections being added annually over the 2020-24 period. To hit the 2030 targets, the rollout of PNG connections would need to accelerate more than ten-fold, which translates to an addition of nearly 18 million connections annually over the next 6-8 years. Achieving this ambitious target requires a deviation from the ‘business as usual’ stance.
The gap between the targets and the actual PNG connections today is more of a performance issue reflecting deeper structural and regulatory challenges.
The PNGRB Act, 2006 mandates every CGD entity to obtain authorisation from the regulator to develop its network. Despite having a licence, a CGD company faces delays due to multiple central and state agency clearances, each with varying timelines and processes. Many clearances fall within a state’s jurisdiction; where varying protocols, timelines and costs across states often hinder pipeline infrastructure expansion and delay new connections. Lack of inter-agency coordination adds significant complexity.
A uniform nationwide framework with a single-window approach is essential to streamline permissions, ensure process uniformity, and enable time-bound CGD infrastructure approvals. Given the massive annual targets, time-bound deemed permissions with robust governance are essential for faster rollout while ensuring the necessary oversight and accountability.
On the positive side, a few states have adopted progressive CGD policies. For instance, Assam’s City Gas Distribution Policy, 2022 mandates issuance of clearance certificates for key infrastructure within 30 days and empowers CGD entities to build and operate networks in allotted areas. Karnataka’s 2023 policy ensured constitution of a special desk in the infrastructure development department and established an apex committee to fast-track clearances and coordinate monthly district reviews.
Most importantly, these policies provide a clear timeline for issuing clearance certificates to lay pipelines. As natural gas is a central subject, a common national framework with harmonised rules is expected to greatly improve overall outcomes.
In addition, effective measures are needed to enhance gas availability and ensure affordable pricing. To ensure nationwide availability, transmission pipelines must reach every district, enabling efficient network expansion. Connectivity delays lead to higher costs, project delays, and declining investor interest.
Apart from supply hurdles, CGD companies struggle with generating viable demand—with switching cost (from LPG to PNG) and the overall cost competitiveness being key barriers to PNG’s household penetration. To illustrate, the alternative household fuel, LPG, enjoys various incentives such as the PM Ujjwala Yojana and other state-specific benefits, which are not available to household PNG. Such consistent policy efforts have resulted in LPG demand to grow significantly, with nearly 330 million active domestic consumers, 20 times that of home PNG connections.
Natural gas also faces an uneven playing field due to taxation disparities. It falls under the VAT regime while alternative fuels fall under GST, making PNG cost-inefficient for both consumers and CGD entities. The Chintan Research Foundation finds that expanding the natural gas sector requires policies that enable demand through price stability and tax structure rationalisation.
To unlock the CGD sector’s full potential, the regulatory hurdles and penalties need to be changed to a conducive policy ecosystem. The regulator is reported to be considering measures for CGD entities that miss their household connection targets. While accountability is vital, such measures without structural reforms—like streamlined permissions, transmission access, tax parity, and fair PNG-LPG competition—will further burden the CGD sector.
It is crucial for policymakers to recognise the genuine hurdles to understand delays and guide a fair policy. Hence, instead of business as usual, a facilitative approach with a focus on the ease of doing business will steer the CGD sector to the levels necessary to ensure a smooth and sustainable energy transition for India.
https://www.newindianexpress.com/business/2025/Jul/06/piped-natural-gas-beyond-business-as-usual
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MGL, IGL, Gujarat Gas: Target prices as PNGRB notifies natural gas pipeline tariff reforms
City gas distributors: The Petroleum and Natural Gas Regulatory Board (PNGRB) has approved a significant amendment to its Natural Gas Pipeline Tariff Regulations, 2025—changes that are expected to realign the cost structure for city gas distributors (CGDs) and pipeline operators alike. According to a fresh note by brokerage Emkay Global, the reforms could bring notable gains for Indraprastha Gas Ltd (IGL), while posing some challenges for Mahanagar Gas Ltd (MGL) and Gujarat Gas.
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For now, the brokerage has a ‘Buy’ rating on MGL with a target price of Rs 1,700. It has ‘Add’ rating on Indraprastha Gas with a target of Rs 230 and ‘Reduce’ rating on Gujarat Gas with a target price of Rs 480.
The second amendment introduces zonal realignment, removes the unified tariff (UFT) for Zone 3, and mandates pipeline players to procure 75 per cent of their system use gas (SUG) through long-term contracts. In a move aimed at boosting affordability, all CNG and domestic PNG customers will now fall under Zone 1 tariffs, regardless of their proximity to the gas source.
Emkay Global suggested that the shift is revenue-neutral for pipeline operators, but the redistribution of volumes—particularly the removal of Zone 3—will effectively raise tariffs in Zones 1 and 2. While this could put pressure on companies operating predominantly in Zone 1, those with a higher exposure to Zone 2 may benefit.
Among listed players, Emkay sees IGL as the standout beneficiary. The brokerage notes that most of IGL’s core operating areas—such as the National Capital Region—fall under the current Zone 2. Moving these to Zone 1 could boost the company’s blended Ebitda per scm by nearly 10 per cent. Based on this, Emkay has revised IGL’s earnings estimate upward by 15–16 per cent, and increased the target price by 9 per cent to Rs 230, factoring in a higher Ebitda assumption of Rs 7/scm (up from Rs 6/scm earlier). The ‘ADD’ rating on IGL is retained.
In contrast, MGL, which already operates mostly in Zone 1, may face a 3–5 per cent dip in Ebitda/scm, Emkay Global warned. Despite this, the domestic brokerage has maintained its earnings forecast, target price, and ‘Buy’ rating on the stock.
Gujarat Gas is also expected to face headwinds. With a dominant portfolio of industrial and commercial PNG, and significant exposure to Zone 1, the reforms could reduce its profitability. Emkay Global retains a ‘Reduce’ rating on the stock, maintaining its earlier estimates pending further clarity.
The brokerage noted that the current UFT across Zones 1, 2 and 3 stands at Rs 42, Rs 80, and Rs 107 per mmBtu, respectively. With Zone 3 eliminated and more volumes brought under Zone 1, Emkay expects Zone 1 tariffs to rise to around Rs 55/mmBtu, and Zone 2 to around Rs 85/mmBtu, assuming Zone 1 remains 66 per cent of Zone 2. At these levels, IGL and MGL—where priority sector volumes make up 81 per cent and 85 per cent, respectively—would see a blended Ebitda impact of +Rs 0.7 and -Rs 0.4 per scm. For Gujarat Gas, the impact could be roughly negative 10 per cent.
Emkay also felt that gas pipeline development reserves—a new provision under the amendment—could be sentimentally positive for Gujarat State Petronet Ltd (GSPL) and GAIL. Under the new rules, 50 per cent of net tax earnings from pipelines operating above 75 per cent utilization will be allocated toward future capital expenditure, while the rest will be passed on to customers through lower tariffs. This is a shift from the current model, where the entire benefit is passed to customers.
While GSPL could qualify for this reserve, Emkay said the impact may not be meaningful given its low capex run-rate. For GAIL, whose HVJ pipeline is nearing 75 per cent utilization, the brokerage expects a positive effect over time. However, quantifying this is difficult due to its participation in a larger integrated network.
Emkay maintained its existing ‘Buy’ rating on GAIL and ‘ADD’ on GSPL, with no changes to earnings or target prices. For GAIL, a broader tariff hike remains the key catalyst being closely watched.
The brokerage concluded that while the overall regulatory reform is structurally positive for gas infrastructure and long-term affordability, further clarity from the PNGRB and management commentary will be crucial in assessing the exact financial impact for each player.
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Petronet LNG signs ₹1,200 crore regasification pact with PCL for 5.5 years
The agreement, signed on July 10, 2025, provides for PLL to receive, store, and regasify around 25.6 trillion British thermal units (TBTUs) of imported liquefied natural gas (LNG) per year at its Dahej terminal in Gujarat. Petronet LNG Ltd (PLL) has signed a long-term regasification agreement with Performance Chemiserve Ltd (PCL), a Deepak Fertilisers and Petrochemicals Corporation Ltd (DFPCL) group company, for approximately ₹1,200 crore over a 5.5-year period.
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The agreement, signed on July 10, 2025, provides for PLL to receive, store, and regasify around 25.6 trillion British thermal units (TBTUs) of imported liquefied natural gas (LNG) per year at its Dahej terminal in Gujarat. The regasification is scheduled to commence between May and July 2026 after an initial ramp-up period and will continue until December 31, 2031.
The deal is expected to generate additional revenue of up to 20 per cent beyond the base amount over the agreement period.
According to PLL, the gas will be utilised by DFPCL group’s manufacturing units at Taloja. PCL is a wholly owned subsidiary of Deepak Mining Solutions Ltd (DMSL), which in turn is a wholly owned subsidiary of DFPCL. The DFPCL group manufactures fertilizers and industrial chemicals using natural gas as feedstock.
“This agreement marks a major milestone in our long-term vision to create a strong, reliable, and efficient supply chain—from natural gas to value-added downstream products,” said Sailesh C. Mehta, Chairman and Managing Director, DFPCL.
Petronet LNG is currently operating two LNG terminals at Dahej and Kochi with a combined regasification capacity of 22.5 million tonnes per annum. It handled around 18 MMTPA LNG during FY2024-25, accounting for about 66 per cent of India’s LNG imports and 43 per cent of the country’s regasification capacity.
Welcoming DFPCL to its list of partners, PLL MD & CEO A. K. Singh said, “Such collaborations not only augment utilisation of our expanded regasification capacity but also contribute meaningfully to the nation’s energy security and industrial growth.”
The agreement follows DFPCL’s earlier LNG supply pact with Norway’s Equinor for long-term gas sourcing.
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Tri-Partite Agreement (TPA) for CBG supply in Mancherial and Asifabad Districts, Telangana executed under CBG-CGD Synchronization Scheme between GAIL, MNGL & Prathmay Projects
A significant step towards promoting clean and sustainable energy was achieved with the signing of a Tripartite Agreement under the CBG-CGD Synchronization Scheme between Maharashtra Natural Gas Limited (MNGL), GAIL (India) Limited, Hyderabad Zonal Office, and M/s Prathmay Projects Private Limited. The agreement pertains to the development and supply of 12 TPD Compressed Biogas (CBG) from a proposed CBG plant to serve the Mancherial and Asifabad districts in Telangana.
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CBG is a clean, renewable fuel produced by processing organic waste. This initiative not only supports sustainable waste management but also contributes to reducing greenhouse gas emissions, providing a cleaner alternative to conventional fossil fuels.
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Policy Matters/ Gas Pricing/ Others
PNGRB simplifies gas tariff structure, unified reduces zones from three to two
Previously, India’s gas grid operated with three tariff zones based on distance from the gas source: Zone 1 (up to 300 km), Zone 2 (300 km to 1,200 km), and Zone 3 (beyond 1,200 km). While a uniform tariff was applied within each zone, successive zones incurred higher tariffs to account for longer transportation distances. This move is part of the recently approved amendments to the Natural Gas Pipeline Tariff Regulations, 2025. Another amendment is the nationwide application of the Unified Zonal Tariff of Zone 1 to Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) domestic segments, regardless of their distance from the gas source. This move is anticipated to make natural gas more affordable for millions of urban households and strengthen transport networks, thereby directly supporting the wider adoption of cleaner energy. As of December 2024, India boasts 7,395 CNG stations and 14 million PNG domestic connections, all poised to benefit significantly from this cost reduction.
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The PNGRB has introduced the PDR model to fund pipeline infrastructure expansion. Pipeline entities exceeding 75% utilization contribute 50% of their net-of-tax earnings to the PDR, which is reinvested into infrastructure development. The remaining 50% is passed on to consumers through tariff adjustments. This performance-linked model creates a win-win situation for pipeline entities and consumers, supporting sustainable infrastructure development and enhancing pipeline network capacity.
“To further stabilise tariffs and enhance supply efficiency, the PNGRB has introduced an efficient fuel procurement mandate. Under this mandate, pipeline operators are now required to procure a minimum of 75% of their annual system-use gas through long-term contracts of at least three years. This measure is designed to mitigate procurement risks, lower transaction costs, and ultimately ensure more predictable and affordable tariffs for both consumers and investors,” said Rajesh Kumar Mediratta, managing director & CEO, Indian Gas Exchange (IGX).
Manas Majumdar, Partner and Leader Oil & Gas – PwC India said that the updated unified pipeline tariff policy is a welcome move by PNGRB. “We expect it to help streamline gas consumption for both marketers and end-users, as the 2-zone tariff will help simplify the transportation tariff process. Further CGD companies will benefit with tariff zone1 being applicable to them nationwide and in general end-users will get more affordable gas access,” said Majumdar.
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City gas firms to pay same pipeline tariff
The PNGRB has amended natural gas pipeline tariff regulations, introducing a uniform tariff for all city gas distribution companies, irrespective of their distance from the gas source. This move aims to lower transportation costs, potentially reducing prices for cooking and transport fuel, especially in remote areas. The initiative promotes equitable access to natural gas and supports broader clean energy adoption.
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New Delhi: All city gas distribution (CGD) companies will now pay the same pipeline tariff regardless of their distance from the gas supply source, a measure that will help reduce transportation costs for licensees and potentially lower cooking and transport fuel prices in far-flung licensed areas.
The Petroleum and Natural Gas Regulatory Board (PNGRB) has amended the Natural Gas Pipeline Tariff Regulations, introducing key reforms to the sector. These include streamlining unified tariff zones, allowing a single pipeline tariff for CGD companies, and creating a dedicated pipeline development reserve.
The regulator has reduced the number of unified tariff zones from three to two. “This initiative ensures a more equitable tariff structure and enhances access to natural gas, especially in underserved regions,” PNGRB said.
The existing three zones (up to 300 kilometres, 300-1,200 km and above 1,200 km) will now be consolidated into two (up to 300 km, and above 300 km). This change will lower the pipeline tariff for users located farther from supply sources while marginally increasing it for nearer users. However, overall tariffs are expected to remain revenue-neutral for pipeline operators.
“The benefit of the unified zonal tariff of zone 1 (up to 300 km) has been extended nationwide to the compressed natural gas (CNG) and piped natural gas (PNG) domestic segments,” the regulator said. “This is poised to make natural gas more affordable for urban households and transport networks, thereby supporting broader clean energy adoption.”
The freight equalisation approach mirrors the pricing mechanism used for liquefied petroleum gas (LPG), where cylinders are priced uniformly across locations, irrespective of distance from refineries or import terminals-though remote areas may bear a small additional freight charge.
However, the lowest uniform tariff benefit for CGD companies will not apply to gas sold for industrial and commercial use.
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Urban gas consumers to benefit from lower pipeline tariffs, CGD stocks rise
PNGRB simplifies gas pipeline tariffs, reducing zones from three to two, lowering costs for CGD firms like IGL and MGL. Consumers to benefit from cheaper CNG/PNG. Reforms aim to boost clean energy use, streamline pricing, and reinvest gains into gas infrastructure for sustainable growth. The Petroleum and Natural Gas Regulatory Board (PNGRB) on Friday simplified the pipeline tariff structure, a move which will reduce transportation costs of city gas distribution (CGD) companies, and potentially improve their margins.
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Following the development, the prices of Indraprastha Gas (IGL) and Mahanagar Gas (MGL) shares rose on Friday. The IGL stock closed at Rs 226.25 apiece on Friday, up 3.22% from its previous close. MGL’s share closed at Rs 1,542.20, up 2.27% from its previous close.
The regulator amended the Natural Gas Pipeline Tariff Regulations 2025, to reduce the number of Unified Tariff Zones from three to two. The amendments seek to simplify tariffs and market structure, promote cleaner fuels, and build an inclusive gas-based economy, the PNGRB said.
The regulator also called it a consumer-centric move, as the benefit of the Unified Zonal Tariff of Zone 1 has been extended nationwide to Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) domestic segments. “This is poised to make natural gas more affordable for urban households and transport networks, thereby supporting broader clean energy adoption,” the regulator said.
“The move will help streamline gas consumption as end-point prices are a combination of landed gas produced and then pipeline transportation, so this unified pipeline tariff will help simplify it,” said Manas Majumdar, Partner and Leader Oil & Gas – PwC India. “Earlier all tariff was by pipelines and then simplified into 3-zone tariff which is now kept to 2-zone, and the tariff increased from zone 1 to zone 2, so with CGD (city gas distribution) companies having postal tariff of zone 1, they get benefit of lower transportation tariff and hence will enhance their profitability,” he said.
The reforms were approved during a recent Board meeting following extensive consultations with stakeholders across the industry in line with the vision of “One Nation, One Grid, One Tariff”.
Furthermore, to stabilize tariffs and ensure efficiency in supply, PNGRB has mandated pipeline operators to procure at least 75% of their annual system-use gas through long-term contracts (minimum three-year tenure).
“This will lower procurement risks, reduce transaction costs, and ultimately result in more predictable and affordable tariffs for consumers and investors alike,” said the regulator.
Majumdar noted that simplification to 2 zones will benefit all end-consumers, especially remote areas like north-east which were in zone 3, and will now be in zone 2, so lower and simpler tariffs will be a key benefit.
To fund future expansion, PNGRB has also introduced a dedicated Pipeline Development Reserve, utilizing earnings from pipeline entities that exceed 75% utilization benchmarks. Notably, 50% of these net-of-tax earnings will be reinvested into infrastructure development, while the remaining 50% will be passed on to consumers through tariff adjustments—creating a performance-linked, self sustaining model for growth, it said.
“These reforms represent a strategic blend of regulatory innovation and stakeholder centric governance, ensuring that both consumers and industry players benefit equitably. By realigning tariff structures, incentivizing long-term planning, and reinvesting in infrastructure, PNGRB is laying a strong foundation for India’s cleaner, greener, and more inclusive energy future,” PNGRB said.
“The streamlined tariff set would mean that consumers would actually benefit, and costs are likely to decrease, and this is aimed at enhancing gas consumption and striving towards the goal of gas in energy mix to reach 15% by 2030,” Majumdar said.
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PNGRB Resumes Hearing of Cases After Nearly Two-Year Hiatus
New Delhi: as per the reports, in a notable development for India’s energy regulatory landscape, the Petroleum and Natural Gas Regulatory Board (PNGRB) has officially resumed hearing cases after a prolonged gap of nearly two years. The regulatory board, which had been rendered inactive due to lack of quorum, is now back in action following the recent appointment of Sudha Rani Relangi as a member.
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The resumption marks the restoration of the Board’s adjudicatory and regulatory functions, critical for resolving disputes and maintaining oversight in India’s rapidly expanding natural gas sector. With this revival, stakeholders—including pipeline operators, city gas distributors, and consumers—can expect pending matters related to tariffs, authorizations, and operational compliance to be taken up for hearing.
The PNGRB had remained functionally dormant in terms of legal proceedings due to a shortage of sitting members, which rendered it unable to form a valid quorum. The appointment of Sudha Rani Relangi, a senior legal expert, has filled this void and enabled the Board to regain its statutory authority to conduct adjudications.
Industry insiders have welcomed the move, calling it a “long-awaited correction” that will help resolve numerous regulatory bottlenecks and bring clarity to several infrastructure-related issues. Legal and policy experts believe that the backlog of cases—some of which pertain to high-stakes tariff disputes and authorization challenges—will now begin to move forward.
This resumption is expected to not only enhance regulatory efficiency but also reinforce investor confidence in the sector, especially as India pursues an ambitious agenda of increasing the share of natural gas in its energy mix.
https://thenewsmanofindia.com/pngrb-resumes-hearing-of-cases-after-nearly-two-year-hiatus/
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Delhi High Court grants interim protection to LNG terminal operators
The Delhi High Court has granted interim protection to Petronet LNG Limited (PLL) and GSPC LNG Limited (GLL) from coercive action under the Petroleum and Natural Gas Regulatory Board’s (PNGRB) Registration Regulations, 2025. Last month, the PNGRB introduced regulations mandating that companies intending to either set up a new LNG terminal or expand existing capacity must register with the regulator. The regulator will issue a registration certificate only after reviewing their detailed feasibility report, business plan, and evacuation strategy, as mandated in the new regulations.
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The regulations, which were challenged by PLL and GLL, were notified on May 8, 2025, and are effective from May 13, 2025. They require the registration of all entities establishing or operating LNG terminals across India, including facilities in Dahej, Mundra (Gujarat), and other locations.
PLL and GLL have also challenged the PNGRB (Eligibility Conditions for Registration of Liquefied Natural Gas Terminal) Rules, 2012. The petitioners argued that the Rules and Regulations unlawfully equate registered LNG terminals to common carrier infrastructure, a classification not envisioned under the parent statute, the PNGRB Act, 2006. The petitioners also argued that the requirement under the new regulations to disclose confidential information goes beyond the scope of the parent Act.
The division bench of the court observed that, for now, the petitioners are not required to seek registration under the challenged regulations and ordered that no coercive steps shall be taken against the petitioners for non-registration or non-submission of information under the 2025 Regulations. The issue of whether ‘confidential’ information can be sought by the PNGRB will be decided later by the court.
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Ministry of Petroleum & Natural Gas drafts new PNG rules, MRSC and PL; invites feedback
In a X (earlier Twitter) post, Puri wrote, “As a part of our focus to accelerate oil & gas exploration under the leadership of PM @narendramodi Ji, a series of pathbreaking policy reforms are being implemented to promote exploration & production. These changes to increase the ease of doing business for our E&P operators are being made after stakeholder consultation at every level.”
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Ministry of Petroleum & Natural Gas has drafted petroleum & natural gas rules, model revenue sharing contract (MRSC) and petroleum lease (PL), Union Minister for Petroleum and Natural Gas Hardeep Singh Puri informed through a social media post today, July 8.
In a X (earlier Twitter) post, Puri wrote, “As a part of our focus to accelerate oil & gas exploration under the leadership of PM @narendramodi Ji, a series of pathbreaking policy reforms are being implemented to promote exploration & production. These changes to increase the ease of doing business for our E&P operators are being made after stakeholder consultation at every level.”
He further said that the Oilfields (Regulation and Development) Act, 1948, was amended in March 2025, and new PNG rules have come within 3 months in the run up to OALP Round X, which is the largest such exploration & production bidding round globally.
The minister also invites feedback and suggestions on draft Petroleum & Natural Gas Rules, Model Revenue Sharing Contract (MRSC) & Petroleum Lease before 17 July 2025 on png-rules@dghindia.gov.in.
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LNG Use / LNG Development and Shipping
Repurpose LNG infra to make ports GH2 export hubs, say ports body
Indian ports would need to take up extensive reforms like repurposing existing Liquefied Natural Gas (LNG) terminals for green hydrogen (GH2) derivatives such as green ammonia, and setting up common user infrastructure frameworks to become export hub for GH2, a report by the Indian Ports Association (IPA) has suggested. IPA is a body of major ports in India under the control of the Ministry of Ports, Shipping and Waterways.
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While developing hydrogen pipelines is essential, high costs — 70-80 per cent from materials, labour, and construction — and challenges like securing rights of way make repurposing underutilised pipelines appealing, the report reviewed by Business Standard said. “India’s LNG import terminals could be retrofitted to handle the export of GH2 derivatives such as ammonia. Clear cost advantage arguments are evident for repurposing LNG import terminals,” the report by US-based energy think tank RMI and the IPA pointed out.
Produced using renewable energy (RE) sources, green ammonia is a sustainable form of ammonia (NH₃), and serves as a versatile energy carrier, fertiliser feedstock, and clean fuel alternative. The National Green Hydrogen Mission is currently targeting production of 5 million tonnes of GH2 by 2030 to provide an alternative to imported crude oil for transportation, industrial uses, and energy storage.
According to the study, constructing greenfield ammonia terminals with a capacity of 5 million tonnes per year is estimated to cost ₹20,401-21,209 crore. In contrast, repurposing LNG terminals — either after or before commissioning — would cost approximately ₹14,766-12,581 crore, assuming a 30-year operational lifespan.
Dedicated frameworks for common user infrastructure such as intra-port pipelines, storage units, electricity transmission and distribution, water and CO2 (carbon dioxide) pipelines have also been suggested.
“This will be fundamental in establishing GH2 facilities, enabling ports to become central hubs. Emerging port hubs could serve both domestic and export markets, leveraging their proximity to industrial clusters such as fertiliser producers and refineries, presence of existing infrastructures like storage and distribution systems, access to international trade, and the captive demand from shipping and logistics operations,” the report said.
The report also suggested ports to act as energy aggregators by partnering with distribution companies and independent power producers to pool demand from existing port industries — the scale would allow them to secure RE at lower prices.
Challenges remain
However, retrofitting comes with its own set of challenges. According to the study, hydrogen’s unique properties, such as lower density and the risk of embrittlement, require significant upgrades to materials, equipment, and safety systems.
“Hydrogen’s higher susceptibility to leaks means that each component of the existing infrastructure must be thoroughly analysed for technical limitations, including pipeline compatibility, leakage risks, and the need for enhanced monitoring systems,” it said.
India currently operates eight LNG terminals run by state-owned companies such as Petronet, NTPC, and Indian Oil, as well as private entities lime Shell, among others. The cost of retrofitting or converting these terminals for ammonia would be around $105 per tonne, the report said.
Existing terminal operators would also need to come on board. “Beyond Petronet’s terminal Dahej, most regasified LNG terminals have struggled with low capacity utilisation due to insufficient pipeline connectivity, a gas market that is still developing, and lack of coordinated planning. But another crucial factor is the limited number of long-term contracts signed between terminals and major offtakers,” an official from a public sector energy major said.
The government wants to position India as an export hub for GH2 and green ammonia. The report suggested that east coast ports like Tuticorin and Paradip are strategically located to serve major Asian demand centres like Japan, Singapore, and South Korea. These countries are expected to require significant green ammonia imports, and 4.4 million tonnes of hydrogen equivalent as part of their decarbonisation goals by 2030. Similarly, west coast ports can service European demand, which has projected a 10-million-tonne hydrogen import by 2030.
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Fossil to future: ONGC charts a bold path; pivots to LNG, renewable
State-run Oil and Natural Gas Corporation (ONGC), which accounts for around 70 per cent of the country’s domestic crude oil and 84 per cent of its natural gas, is taking a calculated shift in its business strategy in an effort to be “future-ready.” While the company has publicly announced its intention to foray into the imported liquefied natural gas (LNG) business, it is also quietly making significant moves into renewable energy, green hydrogen, compressed biogas, battery storage, and even nuclear energy.
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This shift is part of ONGC’s strategy to achieve net-zero targets for scope 1 and scope 2 emissions by 2038. The company has committed an investment of ₹2 trillion by 2038 across multiple decarbonisation initiatives, including energy efficiency, flare reduction, renewables, green hydrogen, green ammonia, compressed biogas, pump storage, and carbon capture units.
Declining crude oil production, ageing oilfields, and the absence of major discoveries in recent decades have posed significant challenges for India’s hydrocarbon sector. Domestic crude oil production dropped from 37.9 million tonnes (mt) in 2010-11 to 28.7 mt in FY25 — a fall of 24 per cent. Natural gas production also fell from 39,753 million standard cubic metres (mscm) to 36,113 mscm in FY25, a drop of 9 per cent.
In recent years, global demand for crude oil has weakened, leading to falling prices (before the recent West Asia crisis). The Paris-based International Energy Agency (IEA) predicts a further decline in crude demand by 2030, driven by sluggish economic growth, global trade tensions, the rise of electric vehicles, and the global shift away from fossil fuels for power generation.
It is in this environment that ONGC is working to reinvent itself, striving to secure its relevance — and India’s energy security — in a rapidly transforming global energy landscape.
“ONGC is purely an exploration and production (E&P) company. E&P is in trouble now as oil prices come down considerably,” Arunangshu Sarkar, ONGC’s director of strategy and corporate affairs, told Business Standard. “There is a glut of oil worldwide — 0.6-0.7 million barrels of oil (per day) is excess now, due to the advent of new energy and low carbon mandates.” The glut, he added, may go up to 10-11 million per day by 2030. “In this scenario, we are thinking of making ONGC a future-ready company. This means we are now going for diversification other than the E&P business.”
ONGC’s LNG import plans are one part of this diversification.
The company aims to source 3 million tonnes per annum (mtpa) of LNG by FY27, exploring long-term, low-priced sourcing deals. It is expected to procure gas from the Henry Hub in the US or from West Asia on spot deals, targeting the city gas distribution (CGD) sector from the fourth quarter of FY26. Henry Hub is a natural gas pipeline hub located in Erath, Louisiana.
This move, the company says, is a strategic intervention to help India achieve its goal of increasing the share of natural gas in its energy mix to 15 per cent by 2030, from around 6.7 per cent now.
“Domestic production satisfies only about 50 per cent of our demand, with the remainder being bridged by imported LNG,” Sarkar said. “Projections indicate that by 2030, natural gas demand may reach approximately 210 billion cubic metre (bcm), requiring LNG imports of nearly 124 mmtpa to meet the shortfall. In this context, we are actively exploring opportunities in the LNG business,” he explained.
Industry experts also see this as the right move, considering natural gas is expected to remain crucial for India’s energy mix until there is a breakthrough in hydrogen technologies.
Greening the globe
ONGC’s push into renewables mirrors a broader global trend among major oil producers.
Companies like BP, Shell, TotalEnergies, and Equinor have all diversified into renewable energy. Even Saudi Aramco, despite its crude oil reserves of 267 billion barrels, is making aggressive moves toward renewables to align with Saudi Arabia’s goal of generating 50 per cent of its electricity from renewable sources by 2030.
“Unfortunately, our exploratory efforts in India have not yielded much in terms of results. It is not just ONGC, all global majors have ventured into renewables,” said R S Sharma, former ONGC chairman and an independent director of Indian Gas Exchange.
ONGC has established a wholly owned subsidiary called “ONGC Green” to accelerate its green energy initiatives. Through its joint venture, ONGC NTPC Green Pvt Ltd, the company recently acquired a 100 per cent stake in Ayana Renewable Power, which holds 4.1 Gw of operational and under-construction renewable energy assets.
“We have a plan to have 10 Gw capacity by 2030. We already have around 4 Gw, the remaining is 6 Gw,” Sarkar said. “Apart from renewable energy, wind, and solar, we are also going for pump storage, green hydrogen, and battery storage.”
The strategy includes plans for a 2 mtpa green ammonia plant by 2030, seen as a crucial element of ONGC’s long-term decarbonisation goals. Additionally, ONGC is exploring the potential of small modular reactors (SMRs) for nuclear power generation, aiming to diversify India’s energy mix further. The company is assessing partnerships with firms specialising in SMR technology, focusing on safety standards and navigating the regulatory landscape. “We will start with a pilot project. It will be a floating vessel that will be carrying that SMR,” Sarkar added.
In the bioenergy segment, ONGC is working on establishing 25 compressed biogas plants, including one within its own production facility in Hazira. In green hydrogen, the company is conducting a pilot project that uses wastewater from its Mehsana asset to produce green hydrogen via microbial electrolysis.
ONGC has also acquired 100 per cent of IL&FS’s shares in Mangalore Special Economic Zone, bringing its combined stake in the venture, along with subsidiary Mangalore Refinery and Petrochemicals, to around 76 per cent. To enhance India’s energy security, ONGC is exploring the development of underground natural gas storage systems in collaboration with the Indian Strategic Petroleum Reserve. These storage solutions are crucial for managing supply fluctuations, ensuring stable natural gas availability, and bolstering national energy security.
While ONGC is diversifying aggressively, efforts are ongoing to ramp up production from existing oil and gas blocks and from new blocks acquired in recent bidding rounds.
Asked whether this diversification might dilute the company’s core business, Sharma said, “As a commercial enterprise, the company has to keep looking for growth opportunities. There is opportunity for every player and much more appetite for gas and renewables in the country.”
With a forward-looking approach, the company intends to keep its operations energised.
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Electric Mobility/ Hydrogen/Bio-Methane
Greenzo Energy dispatches 1 MW electrolyser to Oswal Energies for BOT hydrogen plants
New Delhi: Oswal Energies Ltd has received the first 1 MW hydrogen electrolyser stack from Greenzo Energy India Ltd, marking the start of its ₹320 crore green hydrogen project, the company said in a statement.
The electrolyser delivery is part of a 20 MW Build-Operate-Transfer (BOT) project for clean hydrogen production. The BOT plants will range from 0.5 MW to 5 MW capacity and are scheduled to be commissioned over the next 12 to 18 months. The project is targeted towards supplying green hydrogen to the chemical and fertiliser industries.
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“This electrolyser delivery is more than a shipment—it’s the foundation of a national energy transformation. Our vision blends sustainability with self-reliance, and through this partnership with Greenzo, we’re empowering industries with low-carbon solutions,” said Ratan Bokadia, Managing Director, Oswal Energies.
Greenzo Energy, which designs and manufactures electrolyser systems, currently holds an order book exceeding ₹1,800 crore. The company is engaged in supplying turnkey hydrogen solutions, including Build-Operate-Transfer (BOT) hydrogen plants, to clients across India and the Middle East.
“Our dispatch to Oswal Energies highlights the growing strength of India’s green manufacturing ecosystem. We are proud to support India’s energy goals with cost-effective, locally made hydrogen solutions,” said Sandeep Agarwal, Managing Director, Greenzo Energy.
Oswal Energies, established in 2013 and headquartered in Ahmedabad, provides Engineering, Procurement and Construction (EPC) services in oil and gas, green hydrogen, carbon capture, and compressed biogas. It has executed more than 250 projects in upstream, midstream, and downstream hydrocarbon segments, along with clean energy initiatives.
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Indian Oil draws up green hydrogen fuel retail network plan
New Delhi: Indian Oil Corp. (IOC), the country’s largest oil-marketing company with over 37,500 petrol stations, is working on a new business plan to set up green hydrogen fuel dispensing pumps across the nation, chairman Arvinder Singh Sahney said in an interview. Sahney said that apart from captive consumption at its refineries, where Indian Oil would look at replacing grey hydrogen with green hydrogen, the company aims to eventually cater to the mobility demand in the country, thereby retailing green hydrogen fuel cells.
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He believes that due to critical safety requirements for hydrogen, separate and enhanced safety norms would be necessary for green hydrogen stations. This would require oil marketing companies (OMCs) to establish dedicated infrastructure for retail sales of the fuel.
The playbook is part of Indian Oil’s $30 billion investment plan to achieve net zero by 2046, and involves the refiner to meet its captive demand, followed by catering to mobility requirements and exports. The plan being worked upon by the country’s largest refiner’s strategy group involves setting up these carbon emission-free fuel dispensing stations at new locations, and not at its current network points.
Green hydrogen is used as a clean fuel for vehicles, especially in fuel cell electric vehicles, as a zero-emission alternative to fossil fuels.
Without divulging further detail of its retail plans for green hydrogen, Sahney said: “Everything is on our strategy table.”
The plan involves selling green hydrogen from Indian Oil’s 10,000 tonne per annum green hydrogen generation unit at Panipat refinery to be commissioned by December next year.
Panipat refinery
Referring to the planned green hydrogen plant at its Panipat refinery, Sahney said: “First of all, I am putting up this plant at Panipat, I want to take it to its logical conclusion, that is increased use in mobility. Till the time mobility is there, I can use that in my refineries also. I can replace the grey hydrogen with the green one. Otherwise my ultimate aim will be to use it more and more towards mobility.”
He noted that it would be the largest green hydrogen facility in the country. Recently, Indian Oil discovered the levelized cost of green hydrogen at $4.66 per kg for the proposed green hydrogen plant. This is a key breakthrough as the government has been eyeing green hydrogen prices to come below $5 per kg, with an eventual target of bringing it to $1 per kg. The development assumes significance in the backdrop of India targeting 5 million tonne annual green hydrogen production by 2030.
Noting that technology for use of green hydrogen in automobiles is already available and that the state-run OMC is supplying hydrogen to about 15 fuel cell buses in the national capital, he stressed on the need for having dispensing stations or retail outlets dedicated to supplying new-age fuel to customers.
“We don’t have enough (green hydrogen) dispensing stations in India. I think only three or four dispensing stations are there. Two of them are with us – one in Gujarat and another in Faridabad…But with those four, you can’t run a proper automobile (ecosystem), so it’s a chicken and egg story. If I can develop an ecosystem, if I can develop green hydrogen first and then our number of dispensing stations in a particular area in a particular state in a particular distance, and then encourage people to buy those automobiles there. And then, maybe we can develop an ecosystem there,” he said.
Another state-run major NTPC Ltd runs a green hydrogen refueling station in Leh.
Sahney also said that the company would be open to catering to export opportunities. On being asked if Indian Oil would look at exporting green hydrogen, he said: “Why not? If opportunity comes, why not?” He also said that with the growing energy requirement in India, new energy sources like green hydrogen or renewable energy would only complement the existing fossil fuel sources, rather than competing with the conventional fuels.
Under the National Green Hydrogen Mission, India also aims to become an export hub for the molecule. Other companies which have forayed in this business include Mukesh Ambani-led Reliance Industries, Greenko founders-backed AM Green, Adani Group, Larsen & Toubro, ReNew and Avaada.
In 2023, RIL Chairman Mukesh Ambani announced that it has come up with a roadmap to bring down green hydrogen cost to $1 per kg. Last month, Adani Group commissioned India’s first off-grid 5 megawatt green hydrogen pilot plant in Kutch, Gujarat. AM Green is eyeing the export market and plans to begin production at green ammonia facility in Kakinada, Andhra Pradesh, in the second half of 2026, primarily targeting export markets in Europe.
AM Green has already signed offtake agreements with major buyers including Uniper, Yara, and Keppel, supporting a range of green hydrogen applications.
Last year, Nasdaq-listed ReNew Energy Global plc signed an initial agreement with JERA Co., Inc, Japan’s largest power generation company, to jointly evaluate development of a green ammonia production project in India. In January, Avaada Group announced a partnership with Switzerland’s Casale to build a green ammonia plant in Odisha.
Indian Oil also has a joint venture with L&T and ReNew to develop green hydrogen projects in the country, which they had launched in 2023.
Amid a massive policy push by the government and capex announcements by energy companies both in the public and private sector, cost of green hydrogen has remained a concern for the growth of this emerging space.
In March, Union minister for road transport and highways Nitin Gadkari urged the industry to come up with innovative solution to bring the capital investment required for setting up hydrogen fuel stations.
Noting that currently, the cost of setting up a hydrogen gas station goes to around ₹7 crore, he said: “Indian technology, innovation, and research are crucial for the future and we need to convert knowledge into wealth. To make hydrogen fuel stations widely accessible, the cost of setting up each station must be reduced to a maximum of ₹50 lakh.”
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Hydrocarbon exploration auctions: ONGC may tie up with Petrobras, BP, RIL
India’s largest-ever hydrocarbon exploration bidding round, offering 191,986.21 square kilometres under the Open Acreage Licensing Policy (OALP) Round X, may see renewed interest from global oil and gas majors in the country’s exploration and production (E&P) sector. According to multiple sources close to the development, state-run Oil and Natural Gas Corporation (ONGC) is already in talks with Brazil’s Petrobras and London-headquartered BP Plc, in addition to domestic major Reliance Industries (RIL), to jointly bid for the round.
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The closing date for bid submission is July 31, according to the hydrocarbon regulator Directorate General of Hydrocarbons. Sources indicate that ONGC, which accounts for 70 per cent of India’s domestic crude oil and natural gas production, is expected to show interest in all 25 blocks on offer during the round, while partners may be brought on board for exploration in deep and ultra-deep acreages. Official queries mailed to RIL, ONGC, BP, and Petrobras did not elicit a response.
“ONGC is keen on all 25 blocks on offer under OALP X — some alone and some with partners. Partners are being brought in because these are difficult areas and require a huge amount of money. We are engaging in talks with almost every company, including Petrobras, BP, and RIL,” said a source aware of the development.
In OALP IX, of the 28 hydrocarbon blocks on offer earlier this year, ONGC secured 15 — four in partnership with other players and 11 independently. Of those, GS-OSHP-2022/2 in the Saurashtra Basin was a joint bid by ONGC (40 per cent participating interest), RIL (30 per cent), and BP Plc (30 per cent). That was the only time the three majors collaborated.
ONGC has also had an association with Petróleo Brasileiro SA, or Petrobras, in the past.
Interestingly, although Petrobras had a 15 per cent stake in KG-DWN-98/2 operated by ONGC, the Brazilian major relinquished it in early 2010 to focus on oil and gas finds back home. In April this year, Brazil’s state-run oil firm’s head of E&P, Sylvia Anjos, confirmed that it had already collected data to assess the potential of offshore areas in deep and ultra-deep waters in India for the upcoming round. In February, Petrobras signed a memorandum of understanding with both ONGC and Oil India Corporation for possible collaborations in India — including in upstream, marketing, decarbonisation, and low-carbon solutions.
“The company has teamed up with an international partner and a private sector entity earlier as well. There is no problem with that. We appreciate foreign entities coming into the E&P space in India,” a petroleum ministry official said, referring to state-run national oil and gas company ONGC.
The government has been keen on drawing foreign entities into the E&P space for the past few years. However, a glut in global oil supply, combined with weak industrial demand in key markets, has dampened exploratory spirits, another executive pointed out. “It’s also no secret that foreign companies often opt for a local partner to navigate the Indian market. ONGC’s tieups are just the latest reflection of that,” he said.
In a first-of-its-kind move, BP was appointed by a public sector player to boost production in January, when ONGC brought the oil major on board to help ramp up output at the Mumbai High offshore oil field. The following month, both signed a three-year memorandum of understanding to explore collaboration in oil and gas exploration, production, trading, and new energy vectors, both in India and internationally.
One of the world’s six largest ‘supermajors’, BP already has a major partnership with RIL, operating 1,900 fuel retail stations across India and producing oil and gas from a deepwater block in the Krishna-Godavari Basin.
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Few And Far Between: Nagpur Has Just One Charging Station For Every 515 EVs
Nagpur: Despite aggressive promotion of electric vehicles (EVs) under green energy initiatives, Nagpur district continues to grapple with a critical shortage of charging infrastructure. According to official data, there is just one EV charging station for every 515 electric vehicles in the district.
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The Maharashtra State Electricity Distribution Company Ltd (MSEDCL), which is the sole authority for providing power connections to EV charging points, revealed that 151 charging stations have been set up so far across the district and many of them are private and not available to public. Of these, 58 are in urban areas, while 93 lie within the broader city limits.
Among the total stations, 43 have been installed by various fuel providers, while MSEDCL itself installed six. “The charging stations installed by MSEDCL and fuel providers are all available to the public. Many of the remaining ones are also being used by the public, but they are installed by private people, MahaMetro, Nagpur Municipal Corporation (NMC), and others,” said a senior MSEDCL official.
The officer further said although the pace of installation increased recently, many stations remain privately owned and are not accessible to the public, thereby limiting the usability of the city’s overall EV infrastructure.
At present, there are 77,795 registered electric vehicles in the city, spanning all categories, including battery-operated vehicles (BOVs), pure EVs, and strong hybrids. However, with only 151 charging stations available, public access to charging infrastructure remains severely restricted.
According to RTO-wise data, 46,686 EVs are registered at Nagpur East RTO (MH49), followed by 15,805 in Nagpur Rural RTO (MH40), and 15,304 in Nagpur Urban RTO (MH31).
This imbalance has created challenges for EV users, who often struggle to locate reliable charging options — particularly during peak usage hours or long distance travel. Experts warn that this growing gap between vehicle adoption and infrastructure support could jeopardise the broader goals of sustainable mobility and frustrate EV owners.
One such user, Vaibhav Sahare, shared his experience. “In our apartment, there were four or five e-cars, so we went ahead and installed a charging station, but if someday we need to charge a vehicle outside, then we either have to wait for a long time or it gets harder to find a charging station. In other countries, charging stations are installed at short distances. Such steps should be initiated in our country as well. It will not only promote green energy but also provide us with facilities,” said Sahare.
While the city has seen a steady increase in the number of charging points, officials and users agree that the current infrastructure remains inadequate. Unless this gap is urgently addressed, Nagpur’s ambition of becoming a green and sustainable city may face serious hurdles.
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India seeks offshore tech tie-ups for deep-sea oil, hydrogen collaboration with Norway
New Delhi: India is seeking collaboration on offshore energy technologies with Norwegian firms as it prepares to explore more than 2.5 lakh square kilometres under the Open Acreage Licensing Policy (OALP) Round-10, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri said.
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In a post on X, the minister said the country is looking to develop a full exploration and production (E&P) deepwater technology ecosystem under the leadership of Prime Minister Narendra Modi.
“As India plans to explore over 2.5 lakh sq kms in Open Acreage Licensing Policy Round 10 in one of the largest offshore exploration bidding rounds globally, we are trying to develop a full E&P deepwater technology ecosystem in India, under the visionary leadership of PM Narendra Modi,” Puri said on X.
Puri participated in a roundtable with representatives of the Offshore Energy Cluster in Bergen, Norway, to discuss a range of technologies for deep-sea hydrocarbon exploration. The discussions covered well services, subsea operations, testing, maintenance operations, drilling tools, drilling submersible rigs, well completion services, high pressure high temperature wells, drillships, and monitoring technologies.
“In a roundtable with representatives of Offshore Energy Cluster in Bergen, Norway we held invigorating discussions on technologies including well services, subsea operations, testing, maintenance operations, drilling tools, drilling submersible rigs, well completion services, high pressure high temperature wells, drillships, monitoring technologies covering the entire gamut of hydrocarbons exploration, particularly deep sea exploration by the Norwegian energy professionals,” Puri stated.
The meeting was attended by representatives from TechnipFMC, Reach Subsea, DNV Group, Odfjell Drilling, CCB Subsea, Shearwater, Innovasjon Norge, and NORWEP. A representative from Equinor India was also present.
Jostein Dahl Karlsen represented the Norwegian Ministry of Foreign Affairs and the Norwegian Ministry of Energy at the discussions.
The government has been expanding OALP rounds to boost exploration and enhance domestic production of oil and gas, especially from frontier areas and deep-sea basins.
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India’s hydrogen demand to reach 8.8 MTPA by 2032; few projects hit investment stage: Report
New Delhi: India’s hydrogen demand is projected to rise at a compound annual growth rate (CAGR) of 3 per cent to 8.8 million metric tonnes per annum (MTPA) by 2032, according to a report released by the India Energy Storage Alliance (IESA) at the 11th edition of India Energy Storage Week (IESW) 2025.
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Despite green hydrogen project announcements exceeding 9.2 MTPA, only a few projects have reached the Final Investment Decision (FID) or secured long-term offtake agreements from domestic or international markets. The IESA report notes that under a baseline scenario, if 30 per cent of the announced green hydrogen (GH2) capacity is commissioned within ten years, electrolytic and bio-hydrogen supply can meet approximately 31 per cent of domestic demand in 2032.
The event was inaugurated at IICC Yashobhoomi, New Delhi, in the presence of Dr. Ajay Mathur, Ex-DG, International Solar Alliance and Professor, IIT Delhi; Malini Dutt, Trade and Investment Commissioner – India, NSW Government; Manish Sharma, Chairman, Panasonic; Stephen Fernands, Founder & President, Customized Energy Solutions (CES); Vinayak Walimbe, Managing Director, CES; and Debmalya Sen, President, IESA, along with over 200 global energy leaders.
Addressing the inaugural ceremony, Dr. Ajay Mathur said, “IESW 2025 embodies the collective aspirations of the battery and storage communities, fostering collaboration and knowledge exchange among industry professionals. It serves as a crucial platform where individuals from various sectors, such as battery manufacturing, application, and electricity demand, can come together to learn from one another and advance their understanding of the sector.”
The report stated that for schemes being implemented under the National Green Hydrogen Mission (NGHM), a call for proposals or bids has been issued, winning bidders or proposals announced, or fund disbursement has begun. The largest allocations are for subsidies under the GH2 Tranche 1 and 2, electrolyzer manufacturing (ELY Tranche 1 and 2), and green ammonia (GNH3 aggregation) tenders under the Strategic Initiative for Green Hydrogen Transition (SIGHT).
According to the report, four states account for 82 per cent of the announced GH2 projects — Odisha (38 per cent), Gujarat (26 per cent), Karnataka (12 per cent), and Andhra Pradesh (6 per cent). Around 72 per cent of the announced projects are targeting green hydrogen use for ammonia production, while 20 per cent have not announced end-use applications.
Key cost drivers of the Levelized Cost of Hydrogen (LCOH) produced through water electrolysis include the cost of landed electricity, capital expenditure (CAPEX) for the electrolyzer stack and balance of plant, and capacity utilization of the electrolyzer.
Vinayak Walimbe, Managing Director, CES, said, “Despite various policy interventions and government initiatives to promote the green hydrogen mission, several challenges remain in addressing the urgent issue of decarbonization. The IESA India Hydrogen Report, launched at IESW 2025 today, is crucial in raising awareness among policymakers, industry leaders, and stakeholders in the sector, helping to further accelerate the mission.”
According to the status of India’s green hydrogen transition report, the production cost of hydrogen from fossil fuels in India is nearly twice the cost of $1 per kilogram of hydrogen or even higher. For consumers representing about 6 per cent of the total hydrogen market who obtain hydrogen, the landed cost is even greater due to storage and transportation expenses.
Open-access electricity regulations often restrict the renewable energy offset for commercial and industrial consumers, which can reduce the capacity utilization of electrolysers. The estimated LCOH in the base case is two to four times higher than the production cost of fossil fuel-based hydrogen. In a highly optimistic scenario, the estimate is 1.5 to 2.5 times higher, which is close to the recent first price discovery of green hydrogen in India.
Debmalya Sen, President, IESA, said, “With the support of government initiatives to foster innovation and investment in clean energy technologies, IESW 2025 will bring together industry leaders, government representatives, and global experts to showcase groundbreaking solutions. This gathering will pave the way for India’s transition to a resilient energy system, ensuring we meet our growing energy demands while keeping our target of production capacity of 5 million tonnes per annum (MTPA) of green hydrogen by 2030 in sight.”
IESW 2025 is bringing together ministries, government representatives, and companies from over 20 countries. The three-day event will showcase over 300 product innovations in sectors including electric vehicles, charging infrastructure, solar, green hydrogen, and energy storage. Seven or more new product and factory announcements are expected from Indian manufacturers during the event.
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India’s First CBG Plant with Steel Pipeline Integration Launched
CEID Consultants and Engineering has successfully commissioned India’s first Compressed Biogas (CBG) plant integrated via a steel pipeline into a City Gas Distribution (CGD) network. Located in Batala, Gurdaspur (Punjab), the MEPL Bio-energy facility now directly supplies CBG into Gujarat Gas’ grid, eliminating the need for cylinder-based cascade transport and significantly lowering logistics costs.
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This breakthrough comes after CEID’s earlier deployment of MDPE pipeline offtake at the same plant. The steel pipeline marks a new industry benchmark, enabling continuous, real-time and safer CBG distribution. It also lays the groundwork for standardised guidelines on pipeline design, metering, gas quality control, and safety protocols.
“The transition to steel pipeline injection brings unmatched scalability, efficiency, and compliance to India’s CBG ecosystem,” said Prince Gandhi, Founder & CEO, CEID Consultants. “It opens the door for similar nationwide deployments aligned with the SATAT programme.”
The plant serves PNG consumers and CNG retailers while integrating seamlessly with Gujarat Gas’s existing infrastructure, supporting India’s clean energy and gas-based economy goals.
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Odisha Gears Up For Green Hydrogen And Rooftop Solar Push
Bhubaneswar: In a key step toward advancing India’s clean energy agenda, Santosh Sarangi, Secretary of the Union Ministry of New and Renewable Energy (MNRE), held a high-level meeting with Odisha Chief Secretary Manoj Ahuja and senior officials in Bhubaneswar today. The discussions centred on the National Green Hydrogen Mission and the ‘PM Suryaghar: Muft Bijli Yojana’, two flagship schemes of the Government of India.
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During the meeting, Chief Secretary Ahuja emphasised Odisha’s strategic readiness to lead in the green hydrogen sector, citing its abundant water resources, strong renewable energy integration potential, proactive industrial policies, and a strategic coastal location. These factors, he noted, place Odisha in a unique position to become a global exporter of green hydrogen and its derivatives, including green ammonia and green methanol.
MNRE Secretary Sarangi echoed this view, adding that private sector interest is high in Odisha’s potential for producing green hydrogen-based fuels. Ports such as Paradip and Gopalpur were identified as key enablers for scaling up green hydrogen exports. Special focus was placed on the Gopalpur SEZ, where several developers are exploring investment in large-scale hydrogen and ammonia production projects.
The meeting was attended by representatives from central ministries, state departments, and leading green hydrogen developers, with a focus on resolving infrastructure and regulatory challenges to enable faster deployment and investment.
In parallel, progress under the ‘PM Suryaghar: Muft Bijli Yojana’ — a nationwide rooftop solar initiative — was also reviewed. The MNRE Secretary and Odisha Chief Secretary discussed ways to accelerate rooftop solar adoption across the state, particularly for low-income households.
District Collectors have been instructed to speed up the implementation of rooftop solar installations, while Ahuja stressed the need for regular SLBC meetings, vendor and bank engagement, and swift loan approvals and disbursements. He also called for adopting a Utility-Led Aggregation (ULA) model, especially for residential capacities below 1 kilowatt.
Odisha reaffirmed its commitment to becoming a preferred investment destination for green energy initiatives and to playing a pivotal role in strengthening India’s clean energy ecosystem.
https://ommcomnews.com/odisha-news/odisha-gears-up-for-green-hydrogen-and-rooftop-solar-push/
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INTERNATIONAL NEWS
Natural Gas / Transnational Pipelines/ Others
Romania: OMV Petrom’s New Natural Gas Discovery
OMV Petrom recently made a new natural gas discovery in Spineni, located around 70 km north-east of Craiova. Production potential of 1,300 boe per day proven by well test Around EUR 15 million invested until now during the exploration phase
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The 1 Spineni exploration well, drilled to a depth of approximately 4,800 meters, has confirmed the presence of natural gas and condensate, with results supported by production testing.
Well tests proved a production potential of 180,000 m³ of natural gas and 25 m³ of condensate per day, or a total of 1,300 boe/day from the discovery well.
The prospect was identified using data from the 3D Spineni seismic survey conducted in 2022 in the X Craiova block.
“In 2025, we plan to invest 5.8 billion RON in Exploration and Production, with nearly half allocated to onshore operations — while also advancing offshore Neptun Deep, a strategic project that requires large-scale investment. We continue to invest in order to contain the natural decline in production from mature fields and to pursue new near-field opportunities in proximity to our existing operations,” said Cristian Hubati, Member of the Executive Board responsible for Exploration & Production.
Testing has confirmed that the discovery is commercially viable, the next step is the approval of the development plan.
For this onshore project, OMV Petrom has already invested approximately EUR 15 million during the exploration phase.
We note that OMV Petrom’s 2025 budget, approved by the General Assembly, allocated approximately RON 8.1 billion for investments, marking a 20% increase compared to 2024. A substantial 70% of these investments will be channelled into the Exploration and Production segment. The OMV Petrom General Assembly for 2025 was held on April 24, 2025, and included both an Ordinary General Meeting (OGM) and an Extraordinary General Meeting (EGM).
https://energyindustryreview.com/oil-gas/omv-petroms-new-natural-gas-discovery/
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Mexico: Mexico’s Yucatán Banks on Natural Gas, but Valladolid Plant Still Waiting on Pipeline
Two combined-cycle natural gas plants are expected to add more than 1.5 GW of power to the Yucatán Peninsula, but one plant’s startup would be delayed as it waits on a pipeline’s completion, Mexico officials said.
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Governor Joaquín Díaz Mena during a press conference underscored that the “Yucatán faces a complex energy problem, especially in the summer.” Economic growth had occurred without planning for energy, he noted.
“If we see it as an ailing person, we must treat the urgent conditions first, but also work on preventing future complications. Some conditions are not cured overnight. They require prolonged treatment,” he said, explaining the efforts underway to reinforce the region’s power grid.
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US: 275-Mile Texas-to-Oklahoma Gas Pipeline Enters Open Season
Producers Midstream II, LLC has launched a binding open season to gauge shipper demand for firm transportation on its proposed Palo Duro (PD) Pipeline, a 275-mile (about 443-km) natural-gas line that will link residue markets at Waha in the Permian Basin with Mid-Continent outlets in the Anadarko Basin.
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The project will repurpose existing 16-inch pipe running from Nolan County, Texas, to Wheeler County, Texas, and lease capacity on the company’s gathering header into western Oklahoma. Because no new pipe construction is planned, the company will seek interstate authority from the Federal Energy Regulatory Commission under Section 7(c) of the Natural Gas Act, aiming for a first-quarter 2026 in-service date.
“This Open Season marks a key milestone for the Palo Duro Pipeline and underscores our commitment to delivering scalable, market-responsive infrastructure,” said Matt Flory, Producers Midstream’s chief executive officer. “The pipeline’s unique interconnectivity and strategic positioning creates a much-needed additional outlet for constrained Permian gas, while also supporting the rapid growth of AI-driven power solutions and other emerging sources of demand.”
The north–south line will interconnect with up to seven interstate systems—Northern Natural Gas, Transwestern, NGPL, ANR, Panhandle Eastern, Enable Gas Transmission and Southern Star—giving shippers multiple downstream options. Producers Midstream said the route is designed to ease Permian takeaway bottlenecks while meeting rising industrial, petrochemical, power-generation and behind-the-meter loads.
The open season runs June 30–July 14. Full bidding procedures and technical details are available at Producers Midstream’s website. Interested parties can contact the company’s marketing team at marketing@producersmidstream.com or 214-238-5740.
https://pgjonline.com/news/2025/june/275-mile-texas-to-oklahoma-gas-pipeline-enters-open-season
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Serbia: Serbia plans hydrogen transport through gas pipelines
Serbia’s natural gas transmission system operator, Transportgas Srbija, has invited bids for the preparation of a study on the technical feasibility of transporting hydrogen through the gas network. The study should assess the quantities of hydrogen that can be transported, as well as the impact of blending hydrogen with natural gas on the transmission system and key consumers. The goal is to determine the technical, investment, and regulatory measures necessary for integrating hydrogen into Serbia’s gas infrastructure.
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Transportgas notes that hydrogen, as an alternative fuel, is becoming increasingly important in the context of decarbonization and energy security. It also recalls that the Energy Community has set goals for defining natural gas quality for all transmission system operators in Southeast Europe, with special emphasis on the introduction and application of hydrogen.
Serbia would transport hydrogen by blending it with natural gas. Transportgas recalled that gas pipelines built in recent years or currently under construction in Europe are capable of transporting 100% pure hydrogen.
The study should, among other things, determine the maximum percentage of hydrogen that can be blended with natural gas, as well as the impact on equipment and transmission system losses.
The selected consultant will also be required to determine the chemical composition of the hydrogen-natural gas blend, define the blending procedure, and identify the optimal blending points within the transmission system, as well as suitable sites for hydrogen production and storage in Serbia.
The study should also assess how much hydrogen blended with natural gas can be transported through existing gas pipelines, taking into account the varying qualities of natural gas from different supply routes. The construction of the Balkan Stream gas pipeline and the interconnector with Bulgaria near Dimitrovgrad has enabled Serbia to diversify its gas supplies, Transportgas pointed out.
The study must include an assessment of the impact of the chemical composition and quality of the hydrogen-natural gas blend on major gas consumers in Serbia – steelworks Železara Smederevo, asphalt plants, compressed natural gas (CNG) filling stations, oil refinery Rafinerija nafte Pančevo, cogeneration plants TE-TO Pančevo and TE-TO Novi Sad, petrochemical plant HIP-Petrohemija Pančevo, methanol producer MSK Kikinda, and district heating plants in Belgrade and Zrenjanin.
The consultant will be required to recommend investments needed to introduce hydrogen, such as installing gas analyzers, building new gas pipelines, and upgrading existing infrastructure.
The consultant’s obligation will also be to propose regulatory changes to enable the introduction of hydrogen into the gas infrastructure, the invitation states, noting that the regulations in question include the Law on Energy and the government decree on terms of natural gas delivery and supply.
The deadline to submit bids is July 23, and the selected consultant will have 180 days to complete the work.
https://balkangreenenergynews.com/serbia-plans-hydrogen-transport-through-gas-pipelines/
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US: Land Regulators Approve Montana Gas Pipeline, Nevada Geothermal Projects
The Bureau of Land Management (BLM) has approved a proposed Northwestern Energy pipeline to carry natural gas from Helena to Three Forks, as well as several geothermal expansion and research projects by Ormat Technologies in Nevada. “These projects mark important progress in expanding both traditional and renewable energy infrastructure on public lands”, the Interior Department sub-agency said in an online statement.
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The 74-mile, 16-inch pipeline benefited from emergency permitting procedures introduced by the Interior last April in response to President Donald Trump’s National Energy Emergency declaration in January. The Interior has allowed environmental assessments that normally take up to one year to be completed in about 14 days, it said in a statement April 23.
NorthWestern Energy submitted its proposal June 10 for a 30-year right of way, according to the BLM’s project information page.
“The pipeline route includes approximately nine miles of BLM-managed public lands and will follow an existing utility corridor to minimize new ground disturbance and ecological disruption”, the BLM statement said.
It will be built in phases between spring 2026 and fall 2029. “Preparatory activities, including increased survey traffic and engineering assessments, are expected to begin in 2025”, the BLM said.
In Nevada, the McGinness Hills Geothermal Optimization Project will upgrade and expand three existing Lander County power plants. “Enhancements include new production wells, advanced heat exchangers, upgraded cooling fans, and the addition of a 15-megawatt solar photovoltaic field – aimed at improving overall efficiency and increasing output beyond the current 193 megawatts”, the BLM said.
The Diamond Flat Geothermal Project will drill test wells and conduct geothermal resource confirmation activities on federally leased lands near Fallon. Ormat will undertake up to 33 shallow direct push holes and up to four temperature gradient wells to better outline the extent of the geothermal resource. Based on the results, Ormat would then drill up to 19 exploration wells to confirm whether the site holds economically viable geothermal resources.
Ormat received another approval for exploratory drilling and geothermal resource evaluation near Denio.
“Through strategic permitting, land stewardship, and environmental safeguards, BLM helps ensure a reliable domestic energy supply and reduces dependence on foreign resources”, the BLM said.
It said it had also approved the geothermal projects under an expedited process.
On May 30 the Interior announced expedited review procedures for geothermal projects in Nevada. The Ormat projects are the first approved under the new procedures.
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Saudi Arabia: BlackRock mulls selling stake in Saudi Aramco gas pipelines, Bloomberg News reports
Asset manager BlackRock Inc (BLK.N), opens new tab is in talks with Saudi Aramco (2222.SE), opens new tab to divest its stake in the leasing rights of a natural gas pipeline network back to the state oil major, Bloomberg News reported on Thursday, citing people familiar with the matter.
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The stake, which BlackRock acquired in 2021, is likely to be worth billions of dollars, according to the report.
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Natural Gas / LNG Utilization / Bio-LNG
South Korean partners conduct ‘world’s first’ LNG boil-off gas recycling demo
South Korean conglomerate HD Hyundai and compatriot classification society Korean Register (KR) have revealed the completion of what is claimed to be the world’s first demonstration of a technology that recycles boil-off gas (BOG) from LNG-fueled ships under construction into onshore city gas.
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The demonstration was conducted following the initial concept proposal by HD Korea Shipbuilding & Offshore Engineering (HD KSOE), and the development of the BOG processing system by HD Hyundai Heavy Industries (HD HHI) and DongHwa Entec.
KR and The Liberian Registry (LISCR) carried out verification of the system’s design, manufacturing, and operation.
The demonstration partners expect the once fully developed technology to recover over 50 tons of boil-off gas per LNG-fueled ship under construction, and support compliance with port environmental regulations, including the broader adoption of alternative maritime power (AMP).
As previously reported, HD HHI and partners set out to conduct the demonstration project in April 2025 to recover the boil-off gas from a 7,900 TEU LNG-fueled containership currently under construction and use it as an energy source at its worksites.
Reducing greenhouse gas (GHG) emissions during the construction of LNG-fueled ships was part of a national task of the South Korean Ministry of Trade, Industry and Energy (MOTIE) in 2023.
Due to the lack of relevant laws and standards for the self-consumption of evaporated gas in Korea’s City Gas Business Act, HD HHI applied for a regulatory sandbox demonstration exemption from MOTIE to carry out this project, and received conditional approval on October 23, 2024.
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South Korea pressed to cut methane from LNG and oil imports
A new report from climate policy group Solutions for Our Climate (SFOC) and the consultancy Carbon Limits has called on South Korea to regulate methane emissions from imported liquefied natural gas (LNG) and oil, highlighting that upstream emissions from these imports are 17 times higher than those produced domestically.
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The report estimates that imported oil and gas generated 30 million tonnes of CO2 equivalent (CO2e) in methane emissions in 2023, compared with just 1.7 million tonnes from domestic activity. As one of the world’s top five fossil fuel importers, sourcing 98% of its oil and gas from abroad last year, South Korea’s true methane footprint remains largely unaddressed, according to SFOC.
Methane intensities across South Korea’s key suppliers were found to exceed global benchmarks. Oil imports averaged 27.6 kg CO2e per barrel of oil equivalent (BOE), more than five times the US benchmark of 5.9 kg. LNG imports averaged 22.3 kg CO2e per BOE, nearly four times the US threshold.
South Korea’s oil and gas imports come primarily from Saudi Arabia, the US, Qatar, and Australia. The report found wide variations in methane intensity across these exporters, reflecting differences in upstream practices and regulatory enforcement.
The report recommends that South Korea adopt an import standard modelled on the EU’s methane regulation, which requires reporting of emissions across the fossil fuel supply chain and sets intensity limits for new import contracts.
“Like the EU and Japan, South Korea is one of the world’s largest importers of fossil fuels,” said Jinsun Roh, Head of the Methane and HFC Team at SFOC. “By requiring methane emissions data from exporting countries, Korea can not only improve transparency around greenhouse gas emissions but also lay the groundwork for meaningful action to limit global temperature rise.”
The proposed changes, if adopted, would affect LNG producers, oil exporters and industrial gas suppliers involved in upstream production, liquefaction, shipping and terminal operations. Exporters to South Korea could face increased scrutiny over methane intensity throughout the value chain.
“While South Korea may choose an approach that reflects its national priorities, finding common ground with regulations like those in the EU could enhance the impact on global methane reductions,” said Irina Semykina, Senior Consultant at Carbon Limits and lead author of the report.
The International Energy Agency (IEA) has estimated that the global oil and gas sector emitted around 130 million tonnes of methane in 2023. It believes that up to 75% of these emissions could be cut cost-effectively using existing technologies such as leak detection, improved monitoring and bans on routine flaring and venting.
Rapid methane reductions, according to the IEA, are among the most impactful near-term actions available for limiting global temperature rise. However, critics note that enforcing such rules may raise compliance costs, create trade friction, or limit flexibility in long-term LNG contracts.
South Korea signed the Global Methane Pledge in 2021 and introduced a national methane reduction roadmap in 2023. The report’s authors say that an import standard would be a logical next step to align the country’s global commitments with its energy buying practices.
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US: Golden Pass LNG Eyeing October Train 1 Start
Golden Pass LNG could use imported LNG volumes to jumpstart commissioning activities at the Texas natural gas export project as soon as October. Golden Pass LNG Terminal LLC has asked the U.S. Department of Energy for permission to re-export up to 50 Bcf of previously imported volumes for up to two years. The imported cargoes would be used to cool down equipment, an important part of the plant’s commissioning process as it works toward startup.
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Under the proposal, the company disclosed LNG volumes would be imported and stored at its existing storage tanks and could be either sold outside of the United States as LNG or re-gassified for the domestic market.
https://naturalgasintel.com/news/golden-pass-lng-eyeing-october-train-1-start/
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Japan: Japan to Import Canadian LNG in Bid to Diversify Energy Supply
Mitsubishi, a partner in the Canada project, will begin importing LNG to Japan, leveraging Canada’s proximity for faster, more secure deliveries. Amid rising geopolitical tensions, especially in the Middle East, Japan has received some welcome news on the energy front. Mitsubishi Corporation is preparing to begin importing liquefied natural gas (LNG) from Canada. These shipments will be primarily destined for the Japanese market.
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This will be the first major delivery of Canadian LNG to Japan, which currently depends on Australia and Malaysia for over half of its LNG imports.
With limited domestic energy resources, Japan has been actively working to diversify its LNG supply. Australia, its largest supplier, is projected to face production declines in the coming years. This highlights the need for more stable and reliable sources. Canadian LNG, backed by geographic proximity and political stability, presents a strong alternative. It could play a key role in strengthening Japan’s energy security.
Diversifying Japan’s LNG Supply
LNG is natural gas that has been cooled to a liquid state, reducing its volume to about one-600th and making it much easier to transport by sea.
Japan does produce some natural gas domestically, mainly in areas like Niigata and Chiba, but this supply falls far short of meeting national demand. Like oil, Japan relies almost entirely on imports for its natural gas.
With delays in restarting nuclear power plants, Japan remains heavily dependent on thermal power, which generates around 70% of the country’s electricity. Gas-fired power plants are the largest contributors.
Compared to other fossil fuels, natural gas produces less CO₂, making it a relatively cleaner option. Because of its key role in electricity generation, any disruption in LNG supply could have serious consequences for the economy and daily life. In fiscal 2024, Japan imported 65.87 million tons of LNG, making it the world’s second-largest importer after China.
The LNG Canada Project
The new LNG supply will come from the LNG Canada project in British Columbia, a facility developed with investment from Mitsubishi Corporation, Shell, and other partners. Natural gas is extracted inland and transported via a 670-kilometer pipeline to the coast. There, it is liquefied and shipped overseas by tanker.
The project represents a total investment of about $14 billion USD and has an annual production capacity of 14 million tons. Mitsubishi holds a 15% stake, giving it rights to around 2.1 million tons per year. If all of that were exported to Japan, it would cover roughly a quarter of the country’s projected increase in LNG demand.
Mitsubishi’s LNG Expertise
Mitsubishi was the first major Japanese trading company to enter the LNG business, beginning in the 1960s. Today, it is involved in LNG projects across more than 10 countries. With the addition of Canadian supply, Mitsubishi’s annual LNG production capacity has grown to around 15 million tons, the largest among Japanese companies.
Katsumi Saito, Senior Executive Officer overseeing the fuel business and related operations, commented, “Our strength lies in the knowledge and development capabilities built on more than 50 years of experience.”
One of the key advantages of Canadian LNG is proximity. Shipping LNG from Canada’s west coast to Japan takes about 10 days — much shorter than the roughly 30 days required from the US Gulf Coast via the Panama Canal. That route can take even longer when canal traffic is restricted by drought.
Avoiding Chokepoints and Longer Routes
Other shipping routes, such as around the Cape of Good Hope in South Africa, can take up to 60 days. LNG from the Middle East typically takes about 16 days. In contrast, Canadian LNG avoids major chokepoints like the Strait of Hormuz, offering more stable and reliable delivery.
Canada also has vast natural gas reserves — enough to meet Japan’s current annual LNG demand for about 25 years. Its cold climate makes the liquefaction process more energy-efficient. Canadian LNG has a higher heat content than LNG from the United States. On top of that, there is strong political support in Canada for energy exports, ensuring long-term policy stability.
As of fiscal 2024, Australia supplies 38% of Japan’s LNG. Although shipping times from Australia are similar to those from Canada, slower gas field development — driven by climate change policies — has raised concerns about future supply. To reduce risks, Japan has also prioritized LNG imports from the United States, Qatar, which has massive reserves, and Russia.
The US has significantly increased its LNG exports in recent years. Qatar, however, faces geopolitical risks, especially due to tensions with Iran. Japan continues to import LNG from Russia, but new projects have been put on hold under US sanctions. For instance, Japanese trading firms like Mitsui & Co are currently unable to engage with Russia’s Arctic LNG 2 project.
Growing Electricity Demand
Japan’s electricity demand is expected to grow as the number of data centers increases, driven by the expansion of artificial intelligence technologies. If decarbonization efforts do not progress, the government estimates LNG imports could rise by 12% by 2040, reaching about 74 million tons.
The LNG Canada project marks the first new LNG venture involving Japanese companies in around six years. With global instability highlighting the need for stronger supply chains, Canada’s role as a new supplier is a major win for Japan. Further expansion of production capacity is also eagerly anticipated.
https://japan-forward.com/japan-to-import-canadian-lng-in-bid-to-diversify-energy-supply/
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Global LNG Development
US: Great Lakes awarded Louisiana LNG dredging contract
GLDD has received notice to proceed from Bechtel Energy for dredging work on the Woodside Louisiana LNG project, in the vicinity of Lake Charles, Louisiana, along the Calcasieu River ship channel. The first phase of work, which was awarded in 2Q25, includes construction of a ship berthing basin for use by large LNG carriers, with potential for award of two options to expand the scope for construction of additional ship berths. All dredged materials will be placed into designated beneficial use of dredged material (BUDM) areas for marshlands restoration, providing ecological benefit and storm surge protection for the surrounding area. Dredging operations are expected to commence early 2026.
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Lasse Petterson, President and CEO, commented: “These projects enable Great Lakes to play a vital role in enhancing the resilience and sustainability of the nation’s environment, coastlines, and critical infrastructure. We have also strengthened our presence in the LNG and broader energy sector with our award of Woodside Louisiana LNG. These initiatives are essential to advancing US energy infrastructure, supporting increased export capacity, and aligning with national energy security priorities. These four awards contribute to the growth of our 2025 dredging backlog, further solidifying our revenue visibility for the remainder of the year and into 2026.”
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Norway: DNO sells four years of Norwegian gas output to Engie
OSLO, July 2 (Reuters) – DNO (DNO.OL), opens new tab has sold its entire gas production over a four-year period from the Norwegian continental shelf to French utility Engie (ENGIE.PA), opens new tab for an undisclosed sum, the Norwegian company said on Wednesday. It said the deal had been facilitated by a loan from a U.S. bank as U.S. lenders step up funding to the fossil fuel industry, adding that it was in discussions over a similar offtake agreement and related financing facility for its North Sea oil production.
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The offtake agreement takes effect from October 1 and covers DNO’s increased gas production after its acquisition of assets from Sval Energi in March, DNO said in a statement.
Sval’s acquisition quadrupled DNO’s North Sea production to about 80,000 barrels of oil equivalent per day, about half of it natural gas.
An Engie press officer said that the volume and price of the contract were confidential.
While DNO did not disclose the volume of the four-year contract with Engie, last year DNO and Sval Energi produced 1.82 bcm of gas from the Norwegian continental shelf.
The Engie contract helped DNO secure financing from an unnamed U.S. bank for up to $500 million, which DNO said was based on the value of 270 days of gas sales. It will be used to repay Sval Energi’s debts and for general corporate purposes.
The offtake agreement takes effect from October 1 and covers DNO’s increased gas production after its acquisition of assets from Sval Energi in March, DNO said in a statement.
Sval’s acquisition quadrupled DNO’s North Sea production to about 80,000 barrels of oil equivalent per day, about half of it natural gas.
An Engie press officer said that the volume and price of the contract were confidential.
While DNO did not disclose the volume of the four-year contract with Engie, last year DNO and Sval Energi produced 1.82 bcm of gas from the Norwegian continental shelf.
The Engie contract helped DNO secure financing from an unnamed U.S. bank for up to $500 million, which DNO said was based on the value of 270 days of gas sales. It will be used to repay Sval Energi’s debts and for general corporate purposes.
“We have received strong interest by buyers to prepurchase our enlarged North Sea production,” DNO Executive Chairman Bijan Mossavar-Rahmani said in a statement
https://www.reuters.com/business/energy/dno-sells-four-years-norwegian-gas-output-engie-2025-07-02/
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Germany Gives Go-Ahead for Gas Drilling in Protected Marine Zone
Germany has given the green light for drilling as much as 13 billion cubic meters of natural gas at a protected marine site in the North Sea in a controversial step to bolster energy security. The cabinet approved a bilateral agreement with the Netherlands on hydrocarbon deposits off the island Borkum, according to a statement from economy minister Katherina Reiche. Explorer One-Dyas BV had already received approval from local authorities a year ago, but Reiche’s predecessor Robert Habeck — a Green politician — had been delaying national approval due to environmental considerations.
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The agreement between the two countries — which also clarifies gas volumes and tax payments — was a prerequisite for the activities because the company needs to drill horizontally from a Dutch platform into German territory. The approval “not only strengthens the security of supply of our neighbors, but also the European gas market — and therefore us,” Reiche said in the statement.
Germany was hit hard by the energy crisis that followed Russia’s invasion of Ukraine and had to wean itself off piped gas from Moscow. It now gets most of its supplies from Norway and global liquefied natural gas markets. Earlier this week the government lowered the nation’s gas supply warning level, arguing that the overall supply security has improved.
The coalition of conservative Chancellor Friedrich Merz has pledged to tap domestic gas reserves, even as it vows to stick to its 2045 climate neutrality goal.
As a step to reduce carbon emissions, One-Dyas has pledged to use power from a German offshore wind park, the economy ministry said. The company wants to cease operations as soon as natural gas demand in both countries stops, “so that the project does not contradict the goal of climate neutrality.”
One-Dyas began its operational test phase in March and expects to be able to pump an amount equivalent to about 15% of Germany’s gas consumption last year. The state of Lower Saxony still has to decide on One-Dyas’ business operations, a procedural step as its mining authority already approved drilling in August 2024.
The drilling site is in the Wadden Sea — a North Sea zone that’s designated a Unesco World Heritage Site — and activists fear the project may harm the marine environment.
“Further industrialization would have devastating consequences for biodiversity in the North Sea,” said Sascha Müller-Kraenner, chief executive officer of the NGO Environmental Action Germany.
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GULF: GULF and PTT Tank sign EPCC contract with POSCO E&C
Sarath Ratanavadi, CEO, Gulf Development Public Company Ltd (GULF), and Hee Min Jeong, CEO and President, POSCO E&C, have signed an EPCC contract between Gulf MTP LNG Terminal Co. Ltd (GMTP) and PEC-CAZ consortium. This agreement is for the superstructure development of the Map Ta Phut industrial port phase 3 project. Witnessing the signing were Porntipa Chinvetkitvanit, Deputy CEO, GULF, and Nattawoot Krerpradab, President, PTT Tank Terminal Co. Ltd and executives from the PEC-CAZ consortium.
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The EPCC contract was signed between GMTP, a joint venture between GULF and PTT Tank, with shareholding of 70% and 30%, respectively. PEC-CAZ consortium comprises POSCO Eco & Challenge Co. Ltd (PEC) and CAZ Public Co. Limited Ltd. The Map Ta Phut Project aims to reinforce Thailand’s energy security by supporting LNG transportation, aligning with national economic drivers and the growing gas demand, particularly within the industrial sector.
The PEC-CAZ consortium leverages the combined strengths: PEC, a global leader entity in large scale infrastructure such as Map Ta Phut Phase 1 and Phase 2, as well as environmentally conscious construction, operating as a subsidiary of the South Korean’s, POSCO Group, while CAZ, renowned for its comprehensive construction services across the energy, oil and gas, and petrochemical industries in Thailand. Together, they will carry out the superstructure work of the Map Ta Phut project, which includes the design, construction, and operation of the LNG terminal and regasification facilities on approximately 80 acres of reclaimed land, with an initial capacity of 8 million tpy (for the first phase of the LNG terminal).
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Australia’s Santos signs LNG supply deal with QatarEnergy’s unit
Australian oil and gas producer Santos (STO.AX), opens new tab said on Friday it had signed a mid-term liquefied natural gas supply deal with QatarEnergy Trading, a wholly-owned unit of QatarEnergy, the world’s largest exporter of LNG. Under the deal, Santos said it would supply 0.5 million tonnes of LNG per annum over a period of two years from 2026. The commodity would be supplied from the firm’s wide portfolio of LNG assets, it said in its statement.
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Qatar is the world’s third-biggest liquefied natural gas exporter after the U.S. and Australia.
“We continue to see very strong demand in Asia for high heating value LNG from projects such as Barossa and PNG LNG, as well as for reliable regional supply,” said Kevin Gallagher, Santos CEO and managing director.
In June, Santos, the country’s second-largest independent gas producer, said it had been progressing well towards final commissioning activities at its Barossa LNG project.
The Barossa project, together with the Pikka Phase 1 project in Alaska, is expected to deliver a 30% increase in production for Santos in the next 18 months compared to 2024.
Last month, an international consortium led by Abu Dhabi’s National Oil Company (ADNOC) offered to buy out Santos in an all-cash $18.7 billion takeover bid, which the latter intended to support.
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Malaysia’s Petronas Signs Second LNG Deal With Venture Global
Malaysian energy company Petroliam Nasional Bhd., known as Petronas, has signed a new 20-year deal for liquefied natural gas supply from Venture Global Inc., marking a significant sales and purchase agreement for the US exporter.
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The deal secures LNG from Venture Global’s CP2, the American producer announced on Thursday. The company has raced to finalize the financing required to launch CP2, its third Louisiana export project. The exporter went public earlier this year, scaling back its initial public offering amid investor pushback.
Under the terms of the agreement, Petronas will purchase 1 million metric tons a year of LNG from CP2, adding to its previous dealwith the producer from its second plant, Plaquemines LNG, which first began exporting late last year.
Venture Global faces pending arbitration from its customers related to its first LNG plant, Calcasieu Pass, with initial rulings expected sometime in the second half of the year.
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Ukraine: ORLEN and Naftogaz sign new gas supply contract
Over the next months, ORLEN will supply 140 million m3 of natural gas under a new contract with Ukraine’s Naftogaz. The gas, sourced from the US, will be regasified at the LNG terminal in Swinoujscie before being transported to Ukraine. The contract secures continued gas supply to the Ukrainian market in the coming months and plays a crucial role in bolstering the country’s energy security ahead of the heating season.
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This marks the fourth gas supply contract signed between ORLEN and Naftogaz in 2025. The combined volume of the previous three contracts totalled approximately 300 million m3. In each case, the gas was regasified LNG imported by the Polish company from the US via the Swinoujscie terminal or the Klaipeda terminal in Lithuania.
“Thanks to our continually developed trading expertise, proprietary fleet of LNG transport vessels and reserved regasification capacities, we are well positioned to support Ukraine in diversifying both the sources and supply routes for natural gas. The summer period, which is crucial for replenishing storage facilities, adds to the importance of these deliveries. Our activities align with the EU’s REPowerEU objectives and even surpass them. ORLEN not only ceased all Russian gas imports over three years ago, but today we are also in a position to assist neighbouring countries, such as Slovakia and Ukraine, on their path toward energy independence from Russia. The fourth contract we’ve signed with our Ukrainian partner this year is a testament to that commitment. I’m pleased that Naftogaz has recognised the competitiveness of our offer. It provides a strong foundation for deepening our cooperation, to the benefit of both parties and the broader energy security of the region,” said Robert Soszynski, Vice President of the ORLEN Management Board, Chief Operating Officer.
This latest contract results from a commercial co-operation framework signed between Naftogaz and ORLEN in March 2025, covering natural gas LNG.
“Naftogaz is diversifying its sources and routes of gas supply. This enhances Ukraine’s energy security and resilience amid the ongoing full-scale war with Russia. We are grateful to our Polish partners and highly value this co-operation. Signing an additional contract for the supply of American LNG is an important element of our preparations for the coming winter heating season and a big step toward ensuring reliable gas supply for Ukrainians,” added Sergii Koretskyi, CEO of Naftogaz of Ukraine.
https://www.lngindustry.com/regasification/03072025/orlen-and-naftogaz-sign-new-gas-supply-contract/
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Malaysia: PETRONAS signs 20-year LNG purchase deal with Venture Global
Venture Global on Thursday announced the execution of a new 20-year Sales and Purchase Agreement (SPA) with PETRONAS LNG, a subsidiary of the Malaysian state-owned oil and gas company, PETRONAS. Under the terms of the SPA, PETRONAS will purchase 1 million tonnes per annum (MMtpa) of liquefied natural gas (LNG) from Venture Global’s third facility, CP2 LNG, for 20 years. This builds upon Venture Global’s existing agreement with PETRONAS for 1 MTPA of LNG supply from Plaquemines LNG.
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PETRONAS joins other CP2 LNG customers in Europe, Asia and the rest of the world in a strategically important project to global energy supply and security. To date, approximately 10.75 MMtpa of the 14.4 MMtpa nameplate capacity for CP2 Phase One has been sold.
About Venture Global
Venture Global is a long-term, low-cost provider of U.S. LNG sourced from resource rich North American natural gas basins. Venture Global’s business includes assets across the LNG supply chain including LNG production, natural gas transport, shipping and regasification. Venture Global’s first facility, Calcasieu Pass, commenced producing LNG in January 2022 and achieved commercial operations in April 2025. The company’s second facility, Plaquemines LNG, achieved first production of LNG in December 2024. The company is currently constructing and developing over 100 MTPA of nameplate production capacity to provide clean, affordable energy to the world. Venture Global is developing Carbon Capture and Sequestration projects at each of its LNG facilities.
https://www.worldoil.com/news/2025/7/3/petronas-signs-20-year-lng-purchase-deal-with-venture-global/
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Ukraine: Naftogaz, ORLEN Ink Fourth LNG Contract in 2025
ORLEN SA has agreed to deliver an additional 140 million cubic meters (4.94 billion cubic feet) of liquefied natural gas (LNG) from the United States to Ukraine’s Naftogaz Group via Poland. This is the fourth LNG supply contract signed by the state-owned companies this year, bringing Naftogaz’s total contracted gas volumes from ORLEN to 440 million cubic meters, Naftogaz said in an online statement. The contracts are part of a cooperation pact signed by ORLEN and Naftogaz last March to diversify Ukraine’s gas supply sources, ORLEN said separately.
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After arriving from the U.S., the LNG is planned to be regasified at the Swinoujscie terminal in Poland or the Klaipeda terminal in Lithuania and then transported to Ukraine via Poland.
“Naftogaz is diversifying its sources and routes of gas supply”, said Naftogaz chief executive Sergii Koretskyi. “This enhances Ukraine’s energy security and resilience amid the ongoing full-scale war with Russia”.
“Signing an additional contract for the supply of American LNG is an important element of our preparations for the coming winter heating season and a big step toward ensuring reliable gas supply for Ukrainians”, Koretskyi added.
ORLEN chief operating officer Robert Soszynski said, “Thanks to our continually developed trading expertise, proprietary fleet of LNG transport vessels and reserved regasification capacities, we are well-positioned to support Ukraine in diversifying both the sources and supply routes for natural gas”.
“The summer period, which is crucial for replenishing storage facilities, adds to the importance of these deliveries”, Soszynski added.
“ORLEN not only ceased all Russian gas imports over three years ago, but today we are also in a position to assist neighboring countries, such as Slovakia and Ukraine, on their path toward energy independence from Russia”, Soszynski said.
On Monday ORLEN said it had also eliminated Russian oil from its supply chain when the final contract for deliveries of Russian crude meant for Czechia expired this month.
“I’m pleased that Naftogaz has recognized the competitiveness of our offer”, Soszynski said. “It provides a strong foundation for deepening our cooperation, to the benefit of both parties and the broader energy security of the region”.
In June ORLEN said it had signed another energy collaboration agreement with Naftogaz.
Under the new memorandum of understanding, “the parties will seek to increase natural gas deliveries via Poland to Ukraine and to advance joint projects in oil and gas extraction”, ORLEN said. “These initiatives are expected to strengthen Ukraine’s resource security and flexibility.
“Naftogaz also stands to benefit from ORLEN’s technical expertise in the modernization of the Kremenchuk oil refinery, as well as in the refurbishment of gas infrastructure damaged during the war.
“In addition, both companies intend to pursue joint investment projects across fuel distribution and development of the biofuels segment”.
ORLEN says it also continues to supply Ukraine with fuels from its refineries in Poland and Lithuania, as it has done so since 2007.
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LNG as a Marine Fuel/Shipping
Canada: Canada ships first LNG export cargo from Pacific coast
CALGARY, June 30(Reuters) – Canada’s first-ever LNG export cargo has been shipped from the country’s Pacific Coast en route to Asia, a spokesperson for the Shell-led LNG Canada said on Monday. The cargo was loaded onto the tanker Gaslog Glasgow from LNG Canada’s site in Kitimat, British Columbia, just over a week after the facility confirmed first production and became the first large-scale commercial LNG operation in the country.
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LNG Canada is the first major LNG facility in North America with direct access to the Pacific Coast. It starts at a time when trade tensions with the United States have heightened Canada’s desire to diversify its export markets.
“This is something Canada really needs right now,” LNG Canada CEO Chris Cooper said in an interview, pointing to those trade tensions.
The LNG Canada project, which is a joint venture between Shell Plc , Petronas (PGAS.KL), opens new tab, PetroChina (601857.SS), opens new tab, Mitsubishi Corp (8058.T), opens new tab and Kogas (KVGG.LJ), opens new tab, cost approximately CDN$40 billion (US$29.4 billion) to construct and has been billed as the largest private-sector investment in Canadian history.
When fully ramped up, it will have the capacity to export 14 million metric tonnes of LNG per year.
Shell and its partners are working towards reaching a final investment decision next year for doubling the project’s capacity, the chief of Shell’s gas business Cedric Cremers told Reuters.
Canada is the world’s fifth-largest producer and fourth-largest exporter of natural gas, but until now virtually all of those exports have gone to the United States.
LNG Canada offers the country’s natural gas producers access to energy-hungry Asian markets for the first time.
Its Pacific coast location offers a direct shipping route to Asia without needing to transit the Panama Canal, something project partners hope will give Canadian LNG an advantage against U.S. competitors whose facilities are located on the other side of the continent along the Gulf coast.
LNG Canada also has a supply cost advantage. Prices for Canadian natural gas — which will be shipped to LNG Canada from the shale fields of northeast British Columbia via the Coastal Gaslink pipeline — currently trade at less than half the price of the U.S. Henry Hub benchmark.
“West coast LNG in Canada competes exceptionally well against anything being developed in the United States,” Petronas Canada CEO Mark Fitzgerald said at a conference in Calgary in June.
The startup of LNG Canada — which was first proposed in 2012 — comes almost 10 years after the United States first began exporting LNG from the lower 48 states. The United States has since become the world’s largest LNG exporter, leaving many in Canada’s energy sector to say that their country has been too slow to develop its own industry.
But Canada has additional LNG projects waiting in the wings. Two smaller Pacific coast LNG facilities — the Cedar LNG and Woodfibre LNG projects — are currently under construction, and LNG Canada itself is considering a second-phase expansion of the project, which would double the facility’s capacity.
While Canadian LNG does have certain beneficial cost elements, it also has negatives, said RJ Johnston, incoming director of energy and natural resource policy at the University of Calgary’s School of Public Policy.
Constructing new Canadian LNG facilities and pipelines along British Columbia’s remote northern coast is more challenging and expensive than along the U.S. Gulf, where the infrastructure to serve the LNG sector is already developed, he said.
Ed Kallio, executive advisor for data analytics and forecasting firm Incorrys, said the business case for expanding Canada’s LNG production is weakened by greenhouse gas regulations that U.S. producers don’t face.
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Russia’s sanctioned Arctic LNG 2 ramps up output to record levels
Russia’s sanctioned Arctic LNG 2 project raised production to record levels during the last days of June as the facility appears to have resumed loading cargoes. Natural gas output at the Novatek PJSC-led facility averaged 14 million cubic meters a day on June 28 and June 29, according to a person with knowledge of the matter.
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That’s the highest daily level for the plant, historic data shows. Higher natural gas output doesn’t automatically indicate a hike in LNG production, but historically the plant produced more gas when it was able to load cargoes. In December 2023, when it was launched, Arctic LNG 2 pumped an average of 13.7 million cubic meters of gas a day.
The facility located above the Arctic Circle is key for Russia’s ambition to triple LNG production by 2030. Those plans were squeezed by international restrictions after the invasion of Ukraine, but a liquefied gas tanker appeared to load a cargo several days ago, suggesting Russia may be finding ways around the penalties.
Gas output at Arctic LNG 2 averaged 8.9 million cubic meters a day during most of June, compared with 9.4 million cubic meters a day the month before, the person said, asking not to be identified because the information isn’t public.
Novatek, the largest shareholder of Arctic LNG 2, and the plant’s operator didn’t immediately respond to requests for comments.
The Iris tanker — previously known as North Sky and blacklisted by the U.S., the EU and the UK — left the site Sunday. Its draft level, which the crew inputs manually, has increased, potentially indicating the tanker loaded a cargo there, according to ship-tracking data compiled by Bloomberg.
The tanker is heading toward the Arctic port of Murmansk, where it’s expected to arrive July 2.
Novatek uses waters near Murmansk to transfer LNG cargoes from ice-class vessels to conventional tankers. Novatek’s sanctioned Saam floating LNG storage facility, previously used to store cargoes from Arctic LNG 2, is also located there.
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Bangladesh: Govt to buy two more spot LNG cargoes by mid-Aug
The government intends to buy two more spot LNG cargoes by mid-August to boost natural gas supplies to industries, power plants and other gas-guzzling consumers. State-run Rupantarita Prakritik Gas Company Ltd (RPGCL) floated a tender to purchase two spot LNG cargoes for delivery over August 3-4 and August 14-15, a senior RPGCL official told The Financial Express Thursday.
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The bid winners will deliver the LNG cargoes—each totaling 3.36 million MMBtu (million British thermal unit)– to Moheshkhali Island in the Bay of Bengal, with the option to discharge at either of the country’s two floating storage and regasification units located there.
The bid submission deadline is July 7.
The South Asian country is expected to buy more spot LNG cargoes in August as the interim government has targeted to procure six additional cargoes from late May and by August to boost the supply of re-gasified natural gas for industrial use, said the official.
Bangladesh procured five spot LNG cargoes in July. The country purchased six spot LNG cargoes in May—the highest number in a single month to date.
RPGCL, a wholly owned subsidiary of state-run Petrobangla, oversees LNG trading in Bangladesh.
Bangladesh previously awarded Vitol Asia Pte Ltd, a spot LNG cargo tender for the July 28-29 delivery at $13.52 per MMBtu, said the RPGCL official.
Bangladesh currently imports LNG under long-term contracts from QatarEnergy and OQ Trading International, supplementing these with spot purchases. The two operational FSRUs at Moheshkhali have a combined regasification capacity of 1,100 million cubic feet per day (mmcfd).
The country continues to face an acute energy crisis, worsened by declining domestic natural gas production.
As a result, gas rationing remains in effect across power plants, industrial units and other major consumers to balance mounting demand against limited supply.
The country’s overall natural gas output – local gas and imported LNG combined—was around 2,869 mmcfd including 1,024 mmcfd of re-gasified LNG, against the demand for over 4,000 mmcfd, according to official data as on July 3, 2025.
https://thefinancialexpress.com.bd/trade/govt-to-buy-two-more-spot-lng-cargoes-by-mid-aug
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Technological Development for Cleaner and Greener Environment Hydrogen & Bio-Methane
Morocco secures land rights for major green hydrogen project
Morocco’s Investment Ministry conducted the sixth monitoring committee meeting for the Chbika green hydrogen project, marking significant progress in securing land rights for the ambitious renewable energy initiative with international partners TotalEnergies, Copenhagen Infrastructure Partners, and A.P. Moller Capital.
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Deputy Investment Minister Karim Zidane chaired Monday’s meeting, which brought together all relevant public stakeholders including the Moroccan Agency for Sustainable Energy (MASEN), serving as focal point for Morocco’s green hydrogen initiative. The session validated project deliverables within stipulated deadlines, representing notable advancement in implementation.
Discussions focused on preparing advanced study agreements that will form the technical and legal foundation for future development phases. The meeting reflects Moroccan authorities’ determination to accelerate operational transition in a sector facing intensifying international competition.
Located in the Guelmim-Oued Noun region near the Atlantic coast, Chbika represents one of Morocco’s first major industrial green hydrogen projects. The initiative was launched during French President Emmanuel Macron’s state visit in October 2024, under joint presidency with King Mohammed VI.
https://hydrogeneurope.eu/morocco-secures-land-rights-for-major-green-hydrogen-project/
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Australia’s green hydrogen ambitions in doubt as CQ-H2 plant stalls
SYDNEY — Australia’s largest project to produce green hydrogen with renewable energy is unable to move forward, hampered by a new conservative state government that is unwilling to shoulder the high costs. Multiple people familiar with the CQ-H2 project in Queensland that had been led by state-owned power company Stanwell confirmed it has stalled. Stanwell issued a statement saying it had “discontinued its involvement in the [CQ-H2] project and other hydrogen development activities.”
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Australian Minister for Climate Change and Energy Chris Bowen said this week that green hydrogen faces “investment headwinds” and that project development does not “follow a linear line.”
The derailment of such projects even in Australia, which seeks to rebrand as a clean energy superpower, is another blow to global decarbonization.
CQ-H2 in eastern Australia aimed to produce about 300,000 metric tons of green hydrogen annually starting in 2031 by electrolyzing water using renewable energy. Construction was estimated to cost 14.75 billion Australian dollars ($9.69 billion), according to Australian media, which would make it the country’s largest green hydrogen project.
The facility was part of a vision for a joint Japan-Australia hydrogen supply chain, and multiple Japanese companies were involved with the project. But trading house Marubeni has withdrawn, following Kansai Electric Power and industrial gas company Iwatani.
“It is true that the project has ended. Marubeni will continue to explore low-carbon hydrogen and ammonia business opportunities here and in other regions,” Marubeni said.
Kansai Electric had planned to use the hydrogen, but decided by November to back out. Iwatani, which had planned to build a hydrogen liquefaction plant, closed its office in eastern Australia by March.
The project’s biggest obstacle was high production costs.
Production needs to cost less than AU$2 per kilogram for hydrogen to compete with other fuels and for usage to spread. But the cost of making green hydrogen in Australia is estimated to be about AU$5.50 to AU$13, far above the threshold.
Electricity accounts for 70% of production costs. In 2019, “renewable energy prices were around AU$40 a megawatt hour, and we knew they had to get down to AU$20,” said Fiona Simon, head of the Australian Hydrogen Council. “Now renewable energy prices are even higher.”
Broader use of renewables requires improvements to the power grid and massive upfront investment. It takes time to obtain approval from state governments to build transmission lines and renewable energy facilities, as well as to win over local residents. There is also a shortage of skilled workers like electrical engineers needed to build the grid.
Because of these costs, hydrogen projects rely on state and national subsidies. In December 2023, the Australian government selected CQ-H2 as a candidate to receive up to AU$2 billion in subsidies.
However, the ruling Labor Party was defeated in Queensland’s 2024 state-level election, leading to the first change of government in nine years. The conservative Liberal National Party of Queensland, which took power in October, said green hydrogen projects, a focus of the environmentally minded Labor Party, were unprofitable and should not receive subsidies.
The state government said there would be no additional funding, and there were no prospects of the national government stepping in to save the project.
Australia aims to increase renewables’ share of its energy mix to 82% from the current 40% by 2030 in a bid to become a renewable energy powerhouse. Hydrogen is a key part of that plan.
“Australia is one of the very few countries with the capacity to deliver a green hydrogen industry for export, and we’re not giving up on that,” said Bowen.
But a string of projects has come under question since 2024. Of the six projects named as candidates for national subsidies, three, including CQ-H2, have either frozen or had operations suspended.
Even major Australian companies with deep pockets like Woodside Energy and Fortescue have rethought their hydrogen businesses. With people increasingly focused on rising living costs, the Queensland government’s decision to cut funding to the CQ-H2 project also hints at a backlash against efforts toward rapid decarbonization.
As of November, there were 2,253 hydrogen projects around the world, according to the International Energy Agency, 984 of which had reached the final investment decision stage. China, Europe and the Middle East lead in project development.
However, criticism of decarbonization is growing around the world, with U.S. President Donald Trump among those signaling enthusiasm for fossil fuels.
The massive U.S. budget bill currently under consideration would require hydrogen companies to begin production by Jan. 1, 2026, to receive a tax break of $3 per kilogram, according to Reuters. That deadline had previously been Jan. 1, 2033, raising the prospect that many companies would be unable to meet the new timeline.
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France: French and Spanish operators create venture to develop hydrogen pipeline
French gas grid operator Natran, a unit of utility Engie (ENGIE.PA), opens new tab, has created a joint venture to develop a cross-border hydrogen pipeline with French storage operator Terega and Spain’s Enagas (ENAG.MC), opens new tab, it said on Thursday.
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The Barcelona-to-Marseille underwater pipeline, or Barmar, is part of a larger 2.5 billion euro ($2.93 billion) project called H2Med that will link Portugal, Spain, France and Germany by 2030, as the European Union hopes to displace some natural gas use with hydrogen, which does not emit CO2 when combusted.
H2Med is planned to have a capacity to transport 2 million metric tons of hydrogen made from renewable electricity annually when built – roughly 10% of expected EU hydrogen consumption in 2030.
In the venture to operate Barmar, Enagas, also a grid operator, will hold 50%, Natran will hold 33.3%, and Terega 16.7%, Natran’s statement said.
The European Union last month approved funds covering 50% of the project development costs.
Earlier this year, Enagas CEO Arturo Gonzalo said a final investment decision on H2Med was unlikely before 2028.
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US: Methanol Mega-Project in Sinaloa Seen Boosting U.S. Natural Gas Exports to Mexico’s West Coast
More natural gas demand is set to come from Mexico’s west coast with the announcement of Pacífico Mexinol, a giant methanol facility in Sinaloa state. Houston-based Transition Industries LLC has signed an engineering, procurement, and construction (EPC) contract to develop the plant with an international consortium that includes Samsung E&A Co. Ltd., Grupo Samsung E&A México SA de CV, and Techint Ingeniería y Construcción.
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The Pacífico Mexinol project would be located in Ahome, Sinaloa, and would produce 350,000 tons of green methanol and 1.8 million tons of blue methanol, which is derived from natural gas using carbon capture and storage.
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Opinion: Methane mitigation could be Canada’s next growth industry
Across Canada’s oil and gas sector, a promising young industry is preparing to embrace an economic opportunity: preventing the release of methane, a major climate pollutant that also happens to be the main chemical in natural gas. Methane is an odourless and colourless gas that can be 84 times more potent than carbon dioxide. It’s released from pipes, tanks, and other equipment throughout the oil and gas supply chain. And with every leak, there is less gas that remains for Canadians to sell and use.
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An analysis from Environmental Defense Fund found that, in 2022, Alberta wasted over $670 million in natural gas which resulted in the loss of over $120 million in uncollected royalties and corporate taxes, so preventing waste is both smart for the economy and for the climate.
The U.S.-led trade war has created an imperative for Canada to build new trade relationships. And major energy buyers in Europe and Asia are demonstrating a preference for cleaner energy. Europe is introducing a new import standard that will require gas from Canada, and elsewhere, to be low-emitting by 2030.
Canada’s methane-mitigation sector is rapidly expanding, thanks to international demand for cleaner energy, economic motives, and smart government policies. Canada has set a target to reduce oil and gas methane emissions by 75 per cent by 2030, and future federal regulations could accelerate industry growth. Today, Canadian companies are providing innovative technology to help meet global demand for services that prevent methane pollution and wasted gas.
A recent analysis identified nearly 100 Canadian companies that work to reduce methane emissions from oil and gas operations. These firms manufacture equipment that prevent or minimize leaks, such as specialized valves, renewable powered devices that use solar energy instead of natural gas, and emission capture or destruction devices. Many companies also offer leak-detection services using sensors, drones, and satellites to track emission events.
This new sector includes at least 81 equipment manufacturers and 55 service providers, predominantly based in Alberta, and mostly small- or medium-sized enterprises. The jobs these firms create are skilled, well-paying, and geographically stable, helping to diversify economies traditionally dependent on fossil fuel extraction.
In the United States, the methane-mitigation industry expanded rapidly from 2017 to 2024, with much of this growth taking place in states with stronger regulations. Stringent standards provide investors with confidence that demand will keep rising.
The new federal government can follow this model to support the sector as it delivers economic and environmental benefits. The best way to get started is to send a strong regulatory signal, including finalizing regulations that were promised in 2021 and that were introduced in draft form in late 2023.
Despite extensive consultations, the final regulations were not completed before a snap election was called. Now, the new government has an opportunity to finalize these regulations as one of its first orders of business. After that, the federal government should establish a plan for reaching near-zero emissions by 2035. Near-zero is the goal set by major global oil and gas companies like BP, Shell and Exxon, and the province of B.C. has set 2035 as a target date for reaching it.
With a bold nationwide goal, investors will have every reason to bet on a strong Canadian industry and a strong Canadian future.
Canada’s methane-mitigation industry is off to a great start, and part of broader decarbonization efforts to meet Canada’s climate goals. This is a long and important journey we’re on as a nation to a sustainable future, and every step is necessary. Strong regulation to encourage growth in this industry is a quick, cheap, and effective way to show that Canada is serious about making progress and ready to meet the moment.
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Hydrogen Park Gladstone celebrates over six months of success at official opening
Since November 2024, Hydrogen Park Gladstone, operated by the Australian Gas Infrastructure Group (AGIG) and supported by the Queensland Government, has delivered an up to 10% (by volume) blended renewable gas to an entire city network, made up of approximately 700 local Gladstone homes and businesses.
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This has been achieved by blending the renewable hydrogen produced at the facility with natural gas and distributing to customers via Gladstone’s existing gas distribution network. Since commencing operations, over one tonne of renewable hydrogen has been produced and distributed to Gladstone customers.
For customers on the gas network, this means they can continue enjoying natural gas the same way they have in the past with reduced emissions.
Today in Gladstone, Australian Gas Infrastructure Group Acting CEO Cathryn McArthur hosted Assistant Minister for Regional Development, Resources and Critical Minerals Bryson Head MP, Member for Gladstone, Glenn Butcher MP and Mayor of Gladstone, Matt Burnett at Hydrogen Park Gladstone for a tour of the facility and a community BBQ.
Cathryn McArthur, said:
This project is a real-world demonstration of the potential of renewable gas – it’s here, it’s real, it’s viable and it works and can be a key part of Australia’s renewable energy future,
“We’re proud to launch our second operational renewable hydrogen project in Gladstone, marking a major milestone as Australia’s first whole-of-city gas network carrying a renewable hydrogen blend – it’s another important step toward delivering renewable gas at scale across the country.Our approach focuses on using the existing gas distribution network which is largely hydrogen-ready; utlising the demand from current customers; and continuing to scale up the size and ambition of our projects.”
Assistant Minister for Regional Development, Resources and Critical Minerals, Bryson Head MP, said:
Following the success of our flagship project in South Australia, this project represents an important step forward in the transition to renewable gas.
“We are excited to be working with the Queensland Government and local council to continue delivering innovative energy solutions that support local industry, jobs and contribute to a sustainable energy future.”
Mr Head, said:
We need more energy supply, and market-led proposals for future energy sources are key to delivering that supply,
“As we continue work on the government’s five-year energy roadmap, working towards commerciality of more energy sources is front of mind.We are committed to fostering an environment that encourages more private sector investment to help bolster energy security in Queensland.”
Gladstone Council Mayor, Matt Burnett, said:
AGIG have turned a vision into reality and I’m proud to say our region has played a key role in that.
“There’s no doubt that Gladstone is strategically positioned with a strong industrial foundation, deep-water port, and nationally significant infrastructure – making it a standout destination for investment in future-focused energy and one that allows projects such as Hydrogen Park Gladstone to grow. The region’s diverse and evolving energy mix – including hydrogen, renewables and gas – provides flexibility and resilience for both new and existing industries navigating lower- emissions operations.”
Background
AGIG owns, operates and invests in infrastructure which delivers gas to more than two million homes and businesses. It powers generators, mines, manufacturers and household appliances and the combined network makes AGIG one of the largest gas infrastructure businesses in Australia.
AGIG manages over 35,000km of world-class distribution networks, more than 4,300km of transmission pipelines and 60 petajoules of storage capacity, valued at a combined $10 billion. We employ approximately 500 Australians with more than 1,600 contractors working on our business.
AGIG is leading the Australian renewable hydrogen industry, with the establishment of Hydrogen Park SA, one of the largest electrolysers in Australia, the construction of Hydrogen Park Murray Valley and several other renewable hydrogen and biomethane projects in development.
AGIG has a low carbon vision to deliver 100% renewable gas by no later than 2050, with at least 10% renewable gas blends to homes and businesses by 2030, in line with emissions reduction targets.
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South Aftica: Hive Hydrogen Invites Proposals for $5.8 Billion South Africa Plant
Hive Hydrogen South Africa said it’s seeking proposals from engineering companies to develop the $5.8 billion green hydrogen project it’s planning in the country’s Eastern Cape province. The company, a venture between the UK’s Hive Energy Ltd. and South Africa’s BuiltAfrica Group, has asked 15 companies to participate in the process, it said in a statement on Monday. That number was whittled down from the 48 that had expressed interest earlier this year.
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A final investment decision is expected in the third quarter of 2026, with production at the site at Coega, near the city of Gqeberha, expected to start three years later, the company said. It would make more than 1 million tons of green ammonia a year. The product is a more easily shipped derivative of hydrogen, produced by combining it with nitrogen.
South Africa, with ample solar and wind power potential, is vying with competitors including neighboring Namibia to become a leading producer of the fuel, which is being touted as a way to decarbonize heavy industry and shipping. It’s generated by using renewable energy to split water molecules, yielding hydrogen, which is then synthesized into a clean-energy source.
Still, critics are skeptical about whether production costs can fall sufficiently for green hydrogen to viably compete with conventional, carbon-intensive fuels like diesel.
Hive Hydrogen has said the proposed plant, the biggest and most advanced of major green hydrogen projects in South Africa, is intended to serve export markets such as Japan and South Korea.
It has attracted interest from engineering companies in East Asia, Europe and the UK, Yunus Hoosen, a senior official in South Africa’s trade and industry department, said in the statement.
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