NGS’ NG/LNG SNAPSHOT – July 16-31, 2023
City Gas Distribution & Auto LPG
Piped natural gas soon in IT corridor in Chennai
Chennai: Now apartments in the IT Corridor will get their cooking gas via underground pipelines. Not the usual LPG but piped natural gas. AG&P Pratham, a city gas distribution company, has laid natural gas pipelines between Kelambakkam and Navalur and 1,200 apartments in Alliance’s Urbanrise – Revolution One near Padur have received the connections.
Some 4,500 apartments have been registered with the agency for connections. Work on the pipeline has been on for four months. The gas comes from a station in Vallam to a decompressing system unit in Thaiyur, and then to the apartments. Thaiyur is 5 km to Alliance’s Urbanrise complex. There are 25 km of pipelines along OMR and its interior roads. To get a connection, the registration fee is 354 and security deposit 750. An equipment security deposit of 6,000 can be paid in one go or in instalments.
OMR residents can ask for the connection by calling the agency’s toll-free number. “We will modify cooking stoves with a different nozzle,” said Thirukkumaran N T of AG&P Pratham. Gas usage will be metered to determine the charges.
“People do not need to have any safety concerns with natural gas since it is safer than LPG. Even while laying pipes, we have markers that demarcate the pipes. If other agencies want to dig the roads, they should consult us,” said Thirukumaran. “We are also looking at connecting individual homes. Near Vallam, we have given natural gas connections to 140 individual houses,” said Thirukumaran. AG&P Pratham sources said they can give connections to houses in the vicinity of the IT Corridor within 90 days. It could take more time to connect those farther away.
The piped natural gas network will be expanded to 700 km and include Oragadam, Sriperumpudur, Perumbakkam, Sholinganallur, Semmancherry, Kelambakkam, and Thiruporur.
Piped natural gas to houses in Ramagundam in August in Telangana
Initially, Indian Oil Corporation Limited (IOCL) authorities have decided to supply gas to houses in three localities of the Municipal Corporation of Ramagundam limits by completing all pending works by August.
Peddapalli: For the first time in the State, cooking gas will be supplied to homes soon since the works on supply of piped natural gas to domestic as well as commercial operations in the erstwhile Karimnagar district have reached the final stage.
Initially, Indian Oil Corporation Limited (IOCL) authorities have decided to supply gas to houses in three localities of the Municipal Corporation of Ramagundam limits by completing all pending works by August. Ramagundam Fertilizers and Chemicals Limited (RFCL) township, Gouthaminagar and Shantinagar area of the 39th division of MCR have been selected to supply piped natural gas. Besides laying pipelines, connections have also been given to a few houses in these localities. Registration process has also started with a fee of Rs.618 for each customer.
Speaking to Telangana Today, IOCL senior manager and erstwhile Karimnagar district in-charge, Shyam Sunder informed that they were conducting a survey in the localities to get the opinion of customers since the gas would be supplied only with the consent of customers.
Informing that the registration process has already started, he said that so far, they got 110 registrations. Informing that the works were almost completed, he said they were contemplating to supply piped natural gas to houses in three localities from August by completing pending works.
As part of the union government’s plans to supply natural gas to houses through pipelines across the country, the Petroleum and Natural Gas Regulatory Board (PNGRB) has chosen Ramagundam wherein the gas is available.
Since RFCL is a gas-based urea production unit, gas is being supplied to the plant from the Kakinada (Krishna-Godavari basin) of Andhra Pradesh. So, PNGRB has chosen Ramagundam, officials said.
In order to supply the same gas to Karimnagar, Peddapalli, Jagtial and Rajanna-Sircilla districts through a pipeline, PNGRB invited tenders and IOCL got the tender for erstwhile Karimangar. Besides domestic requirements, piped gas will be supplied for commercial operations too.
Apart from the construction of a gas station at RFCL, laying of pipelines within the town as well as other towns of erstwhile Karimangar district is nearing completion. Shyam Sunder said compared to liquid petroleum gas (LPG), natural gas was safer and available at 40 percent lower price than that of LPG.
ONGC’s natural gas fields to link with NE Gas Grid
The natural gas will be transported from Jorhat, Silchar and Tripura Assets of ONGC to the consumers, an official release said on Thursday.
GUWAHATI: Indradhanush Gas Limited (IGL) and Oil and Natural Gas Corporation Limited (ONGC) have signed three hook-up agreements to connect the latter’s natural gas fields with the North East Gas Grid (NEGG) for transportation of natural gas.
The natural gas will be transported from Jorhat, Silchar and Tripura Assets of ONGC to the consumers, an official release said on Thursday. IGGL is laying a 1,656 km long natural gas pipeline connecting the capital cities and the demand centres of all the eight north eastern states. These hook up agreements will facilitate connection of the natural gas fields of ONGC with the IGGL’s pipeline for evacuation of natural gas, IGGL Director Sanjay Kumar said.
Tiruchi Corporation plans to produce CNG from organic waste
The Tiruchi Corporation has mooted a proposal to produce bio-Compressed Natural Gas (bio-CNG) from organic degradable waste generated from households, hotels, and markets.
Tiruchi Corporation has outsourced the collection, segregation, transportation, and processing of waste generated in all 65 wards in the city to a private agency. On average, nearly 400-450 tonnes of municipal solid waste is collected daily from households in the city, in which more than half is dry waste.
The non-biodegradable dry waste is transported to the Ariyamangalam dump yard and processed in a phased manner. Recently, the Corporation initiated efforts to construct a material recovery facilities centre at Ariyamangalam to segregate the dry waste into recyclable, non-recyclable, inert and refuse-derived fuel.
The segregated wet waste is transported to 36 micro composting centres run by the Corporation in various places to process and produce compost. The Corporation has mooted a proposal to set up a bio-CNG plant to process organic degradable waste.
Corporation Commissioner R. Vaithinathan told The Hindu that the proposal to set up a bio-CNG plant was mooted by the women councillors who visited the Siddipet Municipal Corporation in Telangana State to take stock of various initiatives.
Accordingly, Tiruchi Corporation convened a meeting, a few days ago, with a private player who has expertise in processing the waste to produce bio-CNG. The Corporation will commission a study soon to take the proposal forward, he added.
City Health Officer T. Manivannan said the bio-CNG plant is a part of the Swachch Bharat Mission and is likely to come up with a revenue-sharing model in which the private player operating the plant can sell the CNG in the market and share the revenue with the Corporation.
Considering the population and expansion of the city, the bio-CNG plant is the need of the hour in Tiruchi to cater to its future needs.
Policy Matters/ Gas Pricing/ Others
PNGRB initiates process to develop gas pipeline from Jammu to Srinagar
JAMMU, July 20: After awarding the 175-kilometer Bathinda-Jammu Tawi Gas Pipeline Project to Gas Authority of India Limited (GAIL), the Petroleum and Natural Gas Regulatory Board (PNGRB) has initiated the process to develop a gas pipeline from Jammu to Srinagar.
To begin with, the Board has started the process of public consultation by inviting views and comments from the public, stakeholders, and entities regarding the route, indicative map, terminating point, and minimum capacity for the proposed Jammu-Srinagar gas pipeline project.
A public notice issued in this context on the PNGRB’s website stated, “PNGRB aims to develop a natural gas pipeline from Jammu to Srinagar to meet the natural gas requirements in the Union Territory of Jammu and Kashmir. Therefore, it has been decided to initiate a suo-motu proposal for the development of a natural gas pipeline from Jammu to Srinagar under Regulation 4(2) and Regulation 6 of PNGRB NGPL Authorization Regulations.”
“The Board announces the commencement of the public consultation process as per Regulation 5(1) of PNGRB NGPL Authorization Regulations,” the notice further explained.
Through the notice issued on PNGRB’s website on July 3, 2023, written views and comments from individuals, stakeholders, and entities have been invited within 30 days of the publication of the notice.
In the notice, the PNGRB has clarified that the proposed pipeline would originate from the Gurdaspur-Jammu Natural Gas Pipeline, which is currently undergoing the bidding process, and would serve as its source.
As per the notice, the stakeholders and entities have been invited to provide suggestions regarding the terminating point, route, indicative map, and minimum capacity for the proposed Jammu-Srinagar Natural Gas Pipeline.
According to the PNGRB, the views and comments received from various stakeholders and entities will be hosted on the PNGRB website for public information. Furthermore, an open house discussion will be held on September 9, 2023, with stakeholders and entities who have offered their views and comments.
Earlier in June this year, GAIL, the country’s largest gas distributor, had secured the license to construct a gas pipeline from Gurdaspur in Punjab to Jammu, beating Indian Oil Corporation (IOC), by offering the lowest tariff for gas transportation.
Pertinently, after completing the public consultation process in November 2022, the PNGRB had invited bids in January for the Gurdaspur-Jammu pipeline, and both GAIL and IOC submitted their bids by the May 17 deadline. After evaluating the technical qualifications and opening the financial bids on June 21, GAIL emerged as the successful bidder for the project.
The pipeline, spanning 175 kilometers, will transport environmentally friendly fuel to Jammu and will initially have a capacity to carry at least 2 million standard cubic meters per day.
PNGRB denies licence to Adani Total Gas for development of CGD network in Noida
New Delhi: Passing an order on a matter dating back to 2008, the Petroleum and Natural Gas Regulatory Board (PNGRB) has rejected the application of Adani Total Gas for authorisation for the development of City Gas Distribution (CGD) network in Noida. In an order dated July 14, the watchdog said, “The Board hereby rejects ATGL (Adani Total Gas Ltd) for authorisation for the development of CGD network in Noida GA, application dated 25.06.2008, due to non-fulfilment of the requirements specified under the provisions of Regulations 18(2)(e) and 18(2)(i) of the PNGRB (Authorizing Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks) Regulations, 2008.”
Adani Total Gas sought authorisation for CGD network in Noida in 2008
PNGRB had received an application from Adani Total Gas, then known as Adani Energy Limited, on June 25, 2008 claiming authorisation for the development of CGD network in the Geographical Area (GA) of Noida. “The Board could not process ATGL application, at the time of its submission, as the matter related to authorisation of Noida GA was sub-judice before the Hon’ble Supreme Court of India in ‘M. C. Mehta Vs UoI (WP No. 13029/1985), prior to the establishment of the Board,” said the PNGRB in its order. However, the Supreme Court disposed of the case on September 6, 2022, saying that the matter should be decided by the regulator (PNGRB) or someone else. PNGRB, then, took up the matter on September 15, 2022.
Why was ATGL’s application rejected by PNGRB?
Quoting the CGD Authorisation Regulations, the PNGRB said that an entity claiming authorisation for a geographical area should have land for the purpose of setting up a City Gas Station (CGS) and should have procured the necessary equipment for setting up the station before it is appointed a distributor for that particular area. The CGS is the inlet point of the pipeline from where the natural gas enters into the CGD network. The PNGRB found Adani Total Gas lacking on both these fronts. “… regarding the necessary equipment procurement for CGS, AEL has submitted that ‘As per GAIL’s philosophy of providing connectivity, GAIL shall construct the CGS on the land provided by the CGD entity. Accordingly, GAIL shall be procuring and setting up CGS facilities,’” said the PNGRB referring to Adani’s submission on its failure to procure the equipment for setting up CGS in Noida.
The Board also said that Adani Total Gas had failed to procure Administered Price Mechanism (APM) gas for the development of CGD network in Noida, as required by the rulebook. “In this regard, it is pertinent to mention that APM Gas allocation was done by MoPNG for IGL (Indraprastha Gas Ltd) vide their letter dated 08.04.2004 and AEL was not included in that allocation. Further, the entity has not submitted any documentary proof regarding their claim for APM allocation by MoPNG. In view thereof, the Board is inclined to infer that ATGL not complying to the requirement of this sub-regulation,” said the PNGRB.
“It would not be out of place to mention that there is no data with respect to the entity’s present progress in Noida GA available with PNGRB. From their submission, it is observed that the entity is not operating in Noida at present and the current health status of their pipeline laid in Noida is also uncertain. In addition, it is also observed that although ATGL was allocated land for CNG stations in Noida GA, the entity is not operating any CNG station in Noida,” the PNGRB noted in its order.
IGL and Adani Total Gas
Indraprastha Gas Ltd (IGL), which had been retailing CNG in Delhi since the late 1990s, was given authorisation for the development of CGD network in 2004. It was also allocated APM gas for the CGD network in the area by the Ministry of Petroleum and Natural Gas. Adani sought authorisation for the GA of Noida in 2008.
While two PNGRB Members — AK Tiwari and Gajendra Singh — voted in favour of rejecting Adani Total’s application, Member (Legal) Ajit Kumar Pande opined that it is not prudent for him to pass any order on the matter as it is sub-judice before the appellate tribunal APTEL.
Deadlines for NCR buses for clean fuel
NEW DELHI: The Commission for Air Quality Management in national capital region and adjoining areas (CAQM) has fixed deadlines for NCR states to ensure that buses shift to cleaner fuels to reduce vehicular pollution. From November 1 this year, all buses originating from NCR districts in the respective states and plying to Delhi should be EV or CNG mode or diesel VI vehicle.Track the pollution level in your city
The CAQM’s July 19 order says that governments of Haryana, Rajasthan, and Uttar Pradesh must target to achieve that all buses originating or terminating in NCR to run only on CNG or EV mode by June 30, 2026. The CAQM also directed them to plan for substantial number of buses originating or terminating in NCR in EV mode by June 30, 2028.
According to source apportionment study carried out by The Energy and Resources Institute and Automotive Research Association of India in 2018, the contribution of transport to PM2.5 in Delhi’s air is 39% and NCR’s air is 13%, and 19% to Delhi’s and 7% to NCR’s PM10, respectively.
“Transport sector’s high contribution to the overall air pollution load in the entire NCR… needs no emphasis. Efficient and cleaner inter-city and intra-city public transport within NCR would help to abate air pollution from this sector,” said the CAQM in its order.
For reducing vehicular pollution, the CAQM had conducted meeting with the officials of Delhi and NCR states for developing detailed action plan for shifting to cleaner bus services. Following this, governments of Haryana, Rajasthan and UP have formulated their respective action plans to replace or relocate BS-III and BS-IV diesel operated buses in a phased manner.
“Haryana plans to procure 1313 new BS-VI diesel buses during 2023-24 for replacement of old buses identified for condemnation and as replacement of older BS-III/IV buses, which are planned to be relocated to the non-NCR bus depots. Rajasthan informed about the RSRTC’s plan to procure 590 new BS-VI buses during the year besides outsourcing the services of 440 BS-VI category buses to transform the entire bus fleet running in the NCR to cleaner mobility options,” said the CAQM order.
It added that UP government plans to induct 955 new BS-VI diesel buses in next 3-4 years to replace BS-III/IV diesel buses, prioritising those operating in NCR. Delhi has also informed that procurement of CNG buses and EVs is underway as per its EV Policy, said the order.
Anumita Roychowdhury, executive director, research and advocacy, Centre for Science and Environment, said, “While CNG programme is already underway, it is important to give an enforceable target for rapid electrification of the bus fleet to make urban commuting near zero emission in the region. This needs to be further supported by strategies to increase bus ridership to maximise air quality gains.”
Electric Mobility/ Hydrogen/Bio-Methane
Fortum India is now Glida, to set up 3000 charging points by March 2025
Glida is present across 15 states, 6 highways with over 450 charging points spread across a multitude of charging options including CCS, DC001 and Type 2.
Fortum Charge & Drive India, a leading solution provider in the electric mobility industry, has transformed into a brand identity named ‘Glida’. This was accompanied by renewed vision and a strengthened commitment to sustainable mobility, with new and innovative solutions in the electric vehicle (EV) charging infrastructure.
3000 charging stations by March 2025
Established in 2017, Fortum currently boasts of 450 charging stations in India, with a network expansion overview of 3000 charging stations across the country by March 2023. The company also claims the honour of installing India’s first (EV) charging point in Hyderabad in 2018 in association with Indian Oil Corporation LTD. (IOCL).
Commenting on the latest development, Awadhesh Kumar Jha, Executive Director, Glida, said, “We are excited to unveil our new brand identity Glida, which demonstrates what we stand for – ‘freedom to move without any barriers or hesitation’. our purpose to create a robust runway for the swift take-off of electric mobility into mainstream.”
When asked about self sustainability of charging stations in India from an economic point of view, Jha said that the current ecosystem is self sustainable without much government support. He further added, “We are very clear in our mind that expansion of charging infrastructure should precede growth in EV sales.”
At the start of this year, Fortum introduced the RuPay Prepaid Card, in collaboration with Pine Labs– a flexible prepaid card used for making payment of charging sessions completed at Fortum charging stations anywhere in India. The firm also holds the distinction of installing the first 50kW fast chargers in the country when it joined hands with MG Motor in 2019 shortly after the launch of MG ZS EV.
Other initiatives by Glida
Fortum India, now Glida, is working on establishing dedicated drive-in charging hubs for its consumers at prominent public centres such as malls, parks, etc. The company currently operates six such charging hubs in the country and intends to add 12 more by the end of this year.
Besides EV charging infrastructure, Glida is working on other avenues of sustainable energy solutions. The company has recognised bio-ethanol from bamboo extracts as a viable alternative to conventional fossil fuels in the near future and has set up a new refinery in Assam, slated to be commissioned towards the end of 2023.
Charotar Gas Cooperative plans entry into green hydrogen space
As an energy transformation at India’s grass-root levels, Anand-based gas cooperative Charotar Gas Cooperative Society Ltd is taking a giant leap towards green hydrogen generation and retailing from the soil of dairy cooperative behemoth Amul.
India’s first and only city gas distribution (CGD) player from the cooperative sector – Charotar Gas – is developing a solar energy-based green hydrogen project with support from innovation and incubation agency iCreate under the Government of India’s Hydrogen Valley Project.
Patel claims this will be Gujarat’s first green hydrogen project and will be commissioned in the next 1-1.5 years. “There is a long wait for electrolysers supply,” he said, explaining the long duration required for commissioning. Notably, Charotar Gas was among the stakeholders who participated in the first consultation meeting of the Hydrogen Valley Project held in Ahmedabad in April 2023.
The gas cooperative currently sells over 52,000 standard cubic meter (SCM) of gas daily to its over 45,000 domestic consumers and 12 CNG stations, besides about 50,000 scm gas sales to industrial and commercial users. Set up in 1999 as a cooperative society, Charotar Gas currently has membership of 1,850 and covers 843 square km of geographical area authorised by PNGRB. In aggressive expansion mode, the cooperative has added 14 villages to its PNG network in the past one year with a total reaching 52 villages in Anand district. “We are planning to add a few more villages and four CNG stations in the next 1-1.5 years taking the tally to 16 CNG stations including five Company-owned and Company-operated model and the rest under dealer-operated dealer-owned model,” Patel said adding that his vision is to cover 90 per cent households within the GA under PNG network.
In Vansol village of Umreth taluka in Anand, a farmer Ranchhodbhai Vankar recently shifted to PNG from gas cylinders. “We were hesitant about piped gas. But our village leaders and company officials explained to us the benefits of piped gas. It turns out to be cheaper than a cylinder and much more convenient too,” he told businessline.
Patel said that in order to propagate PNG and CNG adoption, he sells cheapest gas to its consumers. “Our margins are not great. But we are not a private or public limited company. As a cooperative, our objective is to protect the interests of our members and consumers both.” Charotar Gas sources spot gas from GSPC and APM gas from GAIL.
Lower prices helped the cooperative achieve higher volumes, which, in turn, helped it register highest-ever profits for the fiscal ended March 2023 at ₹23.5 crore (profit before taxes), on the turnover of ₹250 crore as against the net loss of ₹3.27 crore on turnover of ₹178 crore.
“We transformed the tendering process, brought transparency and prevented financial leakages. This along with an increase in gas sales volumes have helped us improve our profits,” said Patel.
Natural Gas / Transnational Pipelines/ Others
Norway’s 800km Barents Sea gas pipeline back on agenda
A proposed US $5 billion export route linking gas fields in the Barents Sea in Northern Norway to European markets could help alleviate the continent’s dependence on liquified natural gas (LNG) imports according to a new report by Wood Mackenzie, a global insight business for renewables, energy and natural resources.
The report ‘Can the Norwegian Barents Sea help solve Europe’s gas crisis?’ concludes that after spending years in the doldrums, Russia’s invasion of Ukraine brought a potential Barents Sea gas export route back onto the agenda in Norway. However, the report added there are several hurdles the 800 kilometre, 15 million square metres per day (msm/d) would have to overcome before it was green lit by Oslo.
“The Barents Sea basin has enough existing resources to fill the pipeline, but the costs involved would make developing the gas more expensive than alternative imports from new LNG developments,” Daniel Rogers, Senior Analyst at Wood Mackenzie says. “However, gas from the area offers a cleaner alternative to LNG, and any proposed development would be carried out under strict Norwegian environmental controls.”
Map of proposed export route
The report adds that state-funding of the pipeline, or the introduction of a Carbon Border Adjustment Mechanism(a tool designed by the European Union (EU) to encourage cleaner industrial production in non-EU countries) on gas imports to Europe would increase cost competitiveness.
“The carbon and socioeconomic argument for a pipeline – and further development of the basin – is strong, but it won’t happen without government support,” Rogers says. “However, if long-term European gas demand and prices fall faster than expected, this would put further pressure on the viability of the project.”
Remaining gas resource breakdown and pipeline capacity limits (2030 – 2060)*
The report also states that while Barents Sea gas would help alleviate Norwegian production decline, it won’t be a gamechanger. A bigger pipe would be required to incentivise high-impact exploration and realise the basin’s full potential.
Currently, gas in the Barents Sea is produced from the Snøhvit Area subsea fields and is sent via pipeline to the Hammerfest LNG facility. The facility is expected to be at full capacity until the 2040s. There is currently no direct pipeline route connecting Barents Sea gas resources to the main Norwegian pipeline network.
Cheniere Energy eyes new gas pipeline connecting Louisiana expansion project
Cheniere Energy this week said it’s considering building a new pipeline to link its Louisiana expansion project to other pipelines in major shale-gas producing regions as it seeks to diversify its risk, LNG Industry reports.
Cheniere’s Sabine Pass facility has been expanding since it began production in 2016 but needs additional natural gas beyond current supplies to reach its planned “Stage 5” capacity, top company officials say.
“We will likely build a pipeline to where we can access other pipelines. That will get us Haynesville (shale gas), any additional Marcellus (gas) that will come down, Mid-Continent, Permian, as well as Eagle Ford as it continues to be developed,” says Corey Grindal, Cheniere’s chief operating officer.
Cheniere previously retooled some of its pipeline infrastructure to send gas to its Sabine Pass facility in Louisiana, but those pipelines now shoulder additional demand and are unavailable, Grindal says.
The exporter already spends $800 million a year in pipeline transit fees to transport 7.5 billion cubic feet per day of natural gas from 26 pipelines to its plants in Texas and Louisiana, CEO Jack Fusco told reporters at the LNG2023 conference in Vancouver, British Columbia. He gave no detail about the new pipeline’s cost or size. Read the entire story.
Global LNG Development
Bangladesh to import LNG from Malaysia
Bangladesh is going to import liquefied natural gas (LNG) from Malaysia as the Cabinet Committee on Economic Affairs approved in principle a proposal of the state-owned Petrobangla in this regard.
“Malaysian company Perintis Akal Sdn Bhd will supply the LNG on a long term basis and Petrobangla will buy it under the Speedy Supply of Power and Energy (Special) Act 2010,” said Sayed Mahbub Khan, additional secretary of the Cabinet Division, while briefing on the outcomes of the meeting.
Finance Minister AHM Mustafa Kamal presided over the meeting held virtually, also attended by State Minister for Power, Energy and Mineral Resources Nasrul Hamid.
However, no detail was disclosed about the proposal, placed by the Energy and Mineral Resources Division on behalf of Petrobangla, the oil gas and mineral corporation of Bangladesh.
The proposal will be placed in the meeting of the Cabinet Committee on Government Purchase for a final approval, sources said.
With this new proposal, Bangladesh has chosen Malaysia as the third country to import LNG from on a long term basis.
Bangladesh has been importing LNG from Qatar and Oman since 2018 after setting up of two FSRU (floating storage and re-gasification unit) known as LNG terminals at Moheshkhali in Cox’s Bazar.
In addition, Bangladesh imports LNG from the international spot market as well to meet its growing demands.
Meanwhile, a top official of the Petrobangla said that the Malaysian company will annually supply 1 MTPA (million tonnes per annum) under a 15-year contract.
“But we can disclose the details of the proposal after it receives final approval of the cabinet committee,” the official told UNB on condition of anonymity.
Besides the existing deals, Bangladesh signed a new deal on June 1 with Qatar to get an additional 1.5 million tons per annum (MTPA) of LNG for the next 15 years from 2026, while another agreement was signed with Oman on June 20 to import more LNG from the Middle-Eastern country.
As per the new agreement, the OQT, the Omani state-owned company, will supply LNG 0.25-1.5 million metric ton per annum (MTPA) to Bangladesh over 10 years from 2026.
However, no prices or financial details of the deal were disclosed in the function.
Bangladesh has been desperately looking to increase its import of LNG under a long-term agreement to sustain the volatility due to the frequent price fluctuation in the global energy market.
As part of the move, the Malaysian company has been chosen to supply the LNG.
The country’s total natural gas production is about 3000 million cubic feet per day (MMCFD) against a demand of 4000 MMCFD leaving a shortfall of about 1000 MMCFD. Of the total production, 700 MMCFD is imported while the country locally produces 2300 MMCFD gas.
Spot LNG prices decline
LONDON- Asian spot liquefied natural gas (LNG) prices fell as muted demand in Northeast Asia and high gas inventories in Europe continued to weigh on prices.
The average LNG price for August delivery into north-east Asia fell by 12.5 percent from the previous week to $10.80 per million British thermal units (mmBtu), industry sources estimated.
The average price for September delivery was forecast at $10.70/mmBtu, the sources added.
“North Asian pricing came off rapidly this week, from mid-$12 down to $10, driven by almost no near-term demand for August and September respectively,” said Toby Copson, global head of trading at Trident LNG.
“Looking at some offers, we might have found a floor and see more activity with Sept. bookings showing upside risk,” he added.
Leo Kabouche, LNG market analyst at consultancy Energy Aspects, said that restocking demand has yet to emerge, with spot tenders still largely limited to south-east Asian buyers.
“There might be a brief period of tightness in the Asia-Pacific in September due to planned maintenance at Australian LNG plants, but Asian buyers are unlikely to pull much LNG from the Atlantic basin this winter, suggesting a bearish outlook for prices as Europe will struggle to absorb as much flexible cargoes as last year given high inventories,” he said.
Samuel Good, deputy head of LNG pricing at commodity pricing agency Argus, said the call on the region’s gas-fired units from cooling power demand has been lower than expected due to higher renewables output and other forms of power generation, but many utilities are waiting to see if they will eventually need additional LNG.
Qatar expects record volume of LNG offtake signings this year
Qatar this year will sign record volumes of long-term liquefied natural gas (LNG) offtake contracts, the country’s oil minister said on Tuesday at an energy conference in Vancouver.
About 40% of new global LNG output will come from Qatar by 2029, said Minister of Energy Saad al-Kaabi at the LNG 2023 conference.
Morocco, Shell Sign 12-year Natural Gas Deal
Energy giant Shell will supply Morocco with six billion cubic meters of liquefied natural gas (LNG) over 12 years under a new agreement, Morocco’s energy ministry has said.
Representatives of Morocco’s national electricity authority, ONEE, and the British firm signed a contract on Friday in Rabat, the ministry said in a statement.
According to AFP, the agreement includes the annual delivery of 500 million cubic meters of LNG to Morocco. The value of the 12-year deal has not been disclosed.
In the initial years, the gas will be delivered through Spanish ports and the Maghreb-Europe Gas Pipeline (GME). It will eventually be delivered through planned Moroccan LNG terminals.
According to ONEE chief Abderrahim El Hafidi, the agreement with Shell will “address part of our needs and ensure the supply of natural gas to our power plants”.
Leila Benali, Morocco’s minister of energy transition and sustainable development, was quoted in the statement as saying “this medium-term supply contract will strengthen the kingdom’s energy security and improve its competitiveness by accelerating the Moroccan decarbonisation strategy.”
UK: Shell, BP pursue arbitration claims against Venture Global LNG
LONDON, July 12 (Reuters) – Top LNG traders Shell and BP have separately filed for arbitration against U.S. exporter Venture Global LNG for failing to supply contracted cargoes, even as it sold to non-contract customers as prices soared, four people familiar with the matter said.
A Venture Global LNG spokesperson did not comment on the Shell and BP claims. Last month, the company said it was in full compliance with terms of its long-term contracts and cited a need for extensive commissioning of its modular facility
Shell and BP missed out on billions of dollars in sales that went to Venture Global LNG because they were unable to get their contracted fuel, one of the people familiar with the arbitration filings said. Prices for liquefied natural gas (LNG) soared last year on Russia’s gas-supply cuts to Europe.
The companies filed their cases at the London Court of International Arbitration. A similar case was brought by Italian utility Edison SpA in May. Another Venture Global LNG contract customer, Spanish energy firm Repsol SA, has asked U.S. regulators to release confidential records that would shed light on the plant’s startup.
Shell and BP declined to comment.
Founded by a former energy lawyer and investment banker, Venture Global LNG has emerged as a market force with its ability to obtain financing and rapidly build export plants. It has pledged to produce 70 million tons of LNG per year once the projects are completed.
The contracts were tied to Calcasieu Pass LNG, the first of Venture Global LNG’s three planned facilities. It stitched together 18 liquefaction units to produce up to 12 million tons per year of the supercooled gas.
However, the plant’s on-site power supply facility required extensive repairs that will prevent contract deliveries from the first phase until early 2024, Venture Global LNG has said.
Still, the facility has shipped six pre-commercial LNG cargoes so far this month, and 166 since its exports began in March 2022, Refinitiv vessel tracking data showed.
“The whole point in signing a contract is there is certainty you’re going to have this supply and, in this case, that certainly has not emerged,” said Ira Joseph, an LNG expert and fellow at Columbia University’s Center on Global Energy Policy.
The dispute will cause buyers to strictly define commissioning in future purchase and sales agreements, he said.
The contracted customers believe they lost enormous profits as LNG prices in Europe jumped last August to a peak of $89 per million British thermal units (mmBtu), from about $6 to $10 per mmBtu in 2018. Prices earlier this month were about $11 per mmBtu.
(By Marwa Rashad in London and Curtis Williams in Houston; additional reporting by Scott DiSavino. Editing by Gary McWilliams and David Gregorio)
US: Energy Transfer signs three LNG offtake agreements for Lake Charles project
Energy Transfer (ET) said Friday it entered into three long-term agreements to sell liquefied natural gas from its proposed Lake Charles LNG export project in Louisiana.
The three non-binding heads of agreement combine for 3.6M metric tons/year of LNG to be exported to customers in Asia and the U.S., the company said.
Energy Transfer (ET) said the first HOA is with an unnamed Japanese consortium for the purchase of 1.6M tons/year for a 20-year term.
The second deal would see Chesapeake Energy (CHK) supply Lake Charles LNG with enough volumes of gas to produce 1M tons/year for 15 years; after liquefaction, Swiss commodities trader Gunvor would buy LNG from Chesapeake at a price indexed to the Japan Korea Marker for 15 years
The third HOA is with an unnamed U.S. customer and involves a tolling arrangement for 1M tons/year for 15 years, the company said.
Energy Transfer (ET) announced the agreements even though the U.S. Department of Energy has so far refused to extend Lake Charles’ authorization to sell LNG to non-Free Trade Agreement countries beyond December 2025.
Nigeria: Onne Multipurpose Terminal supports Nigerian LNG’s Bonny expansion
In a significant stride towards enhancing Nigeria’s natural gas processing and export capacity, Onne Multipurpose Terminal (OMT) is playing an important role in supporting Nigerian LNG’s (NLNG) Train 7 expansion project at the latter’s facility in Bonny.
OMT, in collaboration with Horatio Ltd., Chairborne Global Services Limited, Kerry Logistics and IO Materials Services, recently efficiently facilitated the unloading of essential project modules from three vessels on Berth 10 of the Federal Ocean Terminal. The modules were securely stored in OMT’s yard and were later loaded onto barges for transport to Bonny Island.
NLNG, a joint venture between Nigerian National Petroleum Corporation, Total, Shell and ENI commenced operations at its Bonny facility in 1999 and currently operates six processing units – also known as trains. The USD10 billion Train 7 expansion is aimed at increasing Nigeria’s liquified natural gas (LNG) production from 22 million to 30 million tons per annum by 2027.
Following the successful unloading and transport of the project modules, OMT Managing Director Jacob Gulmann expressed his immense satisfaction with the seamless operation. Mr. Gulmann expressed his gratitude to Horatio Ltd., Kerry Logistics and Chairborne Logistics for trusting OMT to handle such a critical cargo.
OMT is steadfast in its commitment to support Nigeria’s oil and gas sector and encourage economic growth by facilitating the safe and efficient movement of project cargo and other commodities at the Onne Port.
OMT is one of International Container Terminal Services, Inc.’s (ICTSI) cargo handling facilities in Africa. ICTSI is set to operate its fifth terminal in the continent after being selected by Transnet as the preferred partner to develop and operate Durban Container Terminal Pier 2.
Australia: Woodside LNG: Australia’s ‘biggest’ contribution to climate crisis a step closer to 50-year extension
One of Australia’s biggest fossil fuel developments is a step closer to having its life extended for nearly 50 years after Western Australian officials dismissed appeals arguing it should be stopped on climate science and cultural grounds.
More than 750 organisations and individuals last year lodged objections to a WA Environment Protection Authority (EPA) recommendation that oil and gas company Woodside be allowed to operate its gas processing facility in the Pilbara until 2070.
Documents seen by Guardian Australia show the EPA has largely dismissed the appeals and repeated its recommendation that the North West Shelf liquified natural gas (LNG) processing facility, on the Burrup peninsula, be given an extended licence.
Scientists and activists said if the extension was allowed it could lead to the opening of new gas fields, including the proposed Scarborough and Browse reservoirs, to provide the gas to keep the processing plant running until late this century.
Peter Newman, a professor of sustainability at Curtin University and author on three major Intergovernmental Panel on Climate Change (IPCC) assessments, said the greenhouse gas emissions released once all LNG processed at the extended facility was shipped overseas and burned would “dwarf everything else” that Australia was doing on the climate crisis.
Woodside’s estimate of the annual emissions from the project suggest about 4bn of carbon dioxide equivalent could be released – equivalent to about 10 years of Australia’s total carbon pollution.
“I’d say that this is not just Australia’s most important climate decision, it’s as important as all the other ones put together,” Newman said.
“The world is going to look at this and say this is the biggest global contribution to climate change in the history of Australia that is about to be approved. Everything else we’re doing fades away in comparison.”
The EPA’s dismissal of the appeals lodged by interested parties does not give the project the green light, but is considered influential advice. The appeals and the EPA response will be considered by the WA appeals convenor, which will make a recommendation to the state climate action minister, Reece Whitby. The project also needs federal approval.
The WA government has been a strong supporter of an expanded LNG industry. The state EPA last year recommended the extension could go ahead, and Woodside must agree to reduce the projected net onsite emissions by two-thirds. The company could do this through direct emissions cuts or through buying carbon credits to offset the pollution.
It also recommended requiring Woodside reduce emissions of nitrogen oxide and volatile organic compounds by at least 40% by 2030 to prevent damage to Indigenous rock art, some of which is believed to date back nearly 50,000 years.
Appellants to the approval argued the EPA had not adequately assessed the project’s full climate impact, including the “scope 3” emissions released after the LNG was sold and burned. They said the EPA allowed Woodside to rely heavily on carbon offsets despite scientific advice that they should be used only as a last resort and had not properly applied the precautionary principle in considering the impact on Murujuga rock art.
In its recent response, which has not been publicly released, the EPA dismissed most grounds of appeal, though some were partly upheld. It recommended new conditions be added to the development, including that Woodside must “consider reasonable means” to reduce future emissions from the gas it sold, and provide a report by 2045 that demonstrated whether the project would “remain consistent with a global low-carbon environment beyond 2050”.
The chief executive of Climate Analytics and climate scientist Bill Hare was critical of the EPA.
He said scientific evidence had shown the world needed to stop burning gas before 2045, but rather than reinforce that the EPA had given the benefit of the doubt to a fossil fuel company. “I don’t see any science behind it,” he said.
The EPA’s chair, Prof Matthew Tonts, defended the recommendations made in June last year, saying they included strict conditions requiring the gas facility to make year-on-year emissions reductions to reach net zero by 2050. He said the EPA decided at the time it was important that emissions were reduced at a faster rate than required by the former Coalition federal government.
He acknowledged there had been “significant policy and regulatory change” since then as the Albanese government had increased and legislated national emissions target and revamped the safeguard mechanism to require reductions in industrial pollution.
Tonts said the EPA’s role was to make a recommendation to the state environment minister, and it was important to note the minister could request the authority look at changing the conditions imposed on a development “at any time”.
The Perth-based head of clean energy transition at Greenpeace Australia Pacific, Jessica Panegyres, said the EPA had only a narrow mandate to consider the development’s impact, and called on the federal environment minister, Tanya Plibersek, to conduct her own assessment given its national importance.
“Australia has made a legal commitment to be net zero emissions by 2050 and this development would see it exporting gas well into the second half of the century,” Panegyres said.
“It’s a climate disaster, and too important to just leave to the state EPA.”
A Woodside spokesperson said the company complied with regulatory requirements and supported the process undertaken by the EPA. “The facts about emissions are contained in the extensive publicly available documentation Woodside has provided to regulators and which form the basis of their consideration,” the spokesperson said.
Technological Development for Cleaner and Greener Environment Hydrogen & Bio-Methane
Norway: Huge phosphate discovery in Norway could fully charge the electric vehicle industry
Phosphate is one of the key materials used in one type of lithium-ion battery, known as LFP. With geologists hunting high and low for battery materials, an enormous new discovery of phosphate rock could have huge implications for the electric vehicle industry. The reserves, discovered in Rogaland, south west Norway by Anglo-Norwegian firm Norge Mining, are equivalent to at least 70 billion tonnes.
This is very close to the 71 billion tonnes of world reserves that we already knew about.
Phosphate is one of the key materials used in one type of lithium ion battery, known as “LFP”, and demand for these batteries – and the underlying phosphate – is growing fast. It is therefore a very big deal that some commentators have suggested this new deposit could meet the world’s phosphate rock needs for the next half a century.
Until this discovery, just five countries controlled 85% of global reserves, with 70% in Morocco alone. For now though it is China that mines the most phosphate rock, producing 85 million tonnes in 2021, with Morocco the next at 38 million tonnes.
This uneven distribution is a particular worry for those countries and regions that have missed out, as phosphate rock is considered a “critical material”. Critical materials are elements that are economically important but are at risk of sudden supply disruptions or generally being in short supply.
The element phosphorus (phosphate is its naturally occurring form) is on the European critical materials list. In the UK, while phosphate rock is not on the critical materials list, it is instead on a “watchlist” of materials of concern.
Food v cars
The new discovery could avoid a looming conflict between farming and electric vehicles over scarce phosphate, perhaps with echoes of the “food vs fuel” dilemma as biofuels compete for agricultural land. Currently, about 90% of phosphate production goes into agricultural fertilisers (phosphorus is the “P” in NPK fertilisers).
The transport industry has to be more picky: only 10% of phosphorus found in sedimentary rock is suitable to make the high purity phosphoric acid used in those LFP car batteries. Perhaps the new Norway reserves will mean both can have as much as they need.
Previously, there had been a greater focus on other ways to manufacture lithium ion batteries, involving nickel and other materials such as cobalt, manganese or aluminium. These batteries store more energy at the same weight. However, they are themselves dependent on other critical elements (cobalt for instance is mostly found in the Democratic Republic of Congo).
In comparison, the materials used to produce LFP batteries are relatively cheap and abundant – some in the industry have jokingly referred to them as “rust and fertiliser” batteries. Elon Musk has said that his company, Tesla, plans to shift more of its vehicle production to LFP batteries, which offer suitable performance for medium range EVs and stationary storage, that over time.
They are also generally regarded as safer, they charge quickly and, unlike their rivals, they can be charged to 100% without losing any lifetime.
While the material used in LFP batteries does not perform quite as well (in terms of storage per weight) as nickel-based batteries, carmakers have tried to circumvent the problem by making the other components of the battery lighter. This could also help make these batteries more recyclable.
But herein lies another challenge for LFP batteries. Because the materials used to make them are that much cheaper, there is less value to recover at the end-of-life for recyclers, which makes the economics of recycling them more of a challenge.
The International Energy Agency has said LFP type batteries are used in 30% of the world’s new electric vehicles, and nearly all of this 30% is made in China. The market for LFP batteries is forecast to grow from US$10 billion (£7.8 billion) to US$50 billion (£39 billion) in the period 2021-2028. In this context, the discovery in Norway is potentially a massive boon for European automakers, as one of the key battery materials might now be located on the doorstep.
That said, it is always a long journey from discovery of a resource to production, finding the resource represents the foot of the mountain. While the discovery is welcome, much must be done to mobilise this resource for the benefit of the battery industry.
If further exploration provides favourable results, Norway plans to fast-track the mine with an estimated opening date of 2028. So maybe some time in the next decade, you might enjoy your first trip in an electric car whose energy storage is enabled by Norwegian phosphate.
Gavin D. J. Harper, Research Fellow, Birmingham Centre for Strategic Elements & Critical Materials, University of Birmingham
Africa: EAIF provides €35m loan for West Africa’s “largest” biomass plant in Côte d’Ivoire
The Emerging Africa Infrastructure Fund (EAIF), a Private Infrastructure Development Group (PIDG) company, has has provided a €35m senior loan facility to develop a 46MW biomass power plant in Côte d’Ivoire, the largest facility of its kind in West Africa.
Biovea Energie, which is owned by EDF International, Meridiam and SIFCA, will own and operate the plant when operational, having been awarded a 25-year power purchase agreement to supply the Ivorian grid.
The capital injection from EAIF, alongside commitments from lead arranger Proparco, a subsidiary of the French Development Agency, will advance the Ivorian energy sector’s net zero pathway and brings a first-of-its-kind project to financial close.
PIDG, through its Technical Assistance programme, said it will support the project’s delivery through an €8m Viability Gap Funding grant, one of the largest it has disbursed.
The €237m venture is expected to reduce CO2 emissions by 4.5 million tonnes over its 25-year lifetime.
The project is further signifies an innovative approach in achieving Côte d’Ivoire’s goal to generate 45% of energy from renewable resources by 2030.
The new plant also reinforces the government’s priority to expand access to electricity by 2025 – improving energy security in rural areas with an electrification rate as low as 38%.
Located in Ayebo, 100km east of the capital, Abidjan – Biovea Energie’s project is expected to benefit 1.7 million people.
Approximately 12,000 will be local out-growers, supplying up to 70% of the palm tree leaves and branches that will fuel the power plant.
Integrating local farmers into the supply chain diversifies their revenue and welcomes greater income security, boosting their earnings by an expected 15%.
While supporting longevity in income generation for out-growers, the project will also deliver economic opportunities during its construction phase.
Development of the plant and accompanying transmission, transport and communications infrastructure will generate 500 jobs.
An additional 1,000 roles will benefit the local economy once Biovea Energie commissions the project.
Approximately 520,000 tonnes of agricultural residue that would otherwise be discarded will be utilised. Once it has been processed to power the plant’s turbines, the residue’s ashes will be provided to farmers as natural fertiliser for crops.
Better energy security in the country also benefits its neighbours, as the country’s evolving energy market serves as an essential exporter of electricity to six of its neighbouring countries.
Once commissioned, the plants will align with PIDG’s commitment to the UN’s Sustainable Development Goal on Access to Clean and Affordable Energy (SDG 7).
Commenting on the transaction, Olivia Carballo from Ninety One, fund manager of the Emerging Africa Infrastructure Fund, said: “As such a crucial energy market to one of the continent’s most important production hubs, impacts of a greener economy extend beyond the borders of Côte d’Ivoire. It is emblematic of the many resources we can leverage to accelerate growth across Africa and do so inclusively while contributing to the sustainability of thousands of livelihoods in the area.”
Biovea Energie’s CFO, Franck Koblavi, commented: “We are delighted to close the deal as it has been highly anticipated and moves us closer to evolving the country’s energy mix and progressing an ambitious but attainable sustainability agenda. Working with best-in-class partners has ensured deep deliberation to other aspects of creating impact and will ensure quality service delivery from investment to energy production.”
Brazil: New Holland partnership to bring “innovative ecosystem” to Brazil’s biomethane sector
CNH Industrial brand New Holland, a world leader in clean energy, has announced a partnership with leading companies in the biomethane sector in Brazil.
This partnership will aid in creating an innovative ecosystem for gas production, generated from the decomposition of organic waste.
The new ecosystem is the first of its kind in the country and promises to revolutionise its biogas market, according to the company.
The launch of this initiative is a result of the collaboration between New Holland, Iveco Group, Sebigás Cótica – a company specialising in the development of biodigestion solutions – and Air Liquide.
Like New Holland’s work with the British company Bennamann, the initiative aims to explore the possibilities of biomethane
production from livestock waste and to simultaneously promote the use of renewable energies for Brazilian agriculture.
The arrival of this technology follows the sale of the first tractor unit powered by biomethane gas in Brazil: a T6.180 Methane Power.
The tractor can use the gas generated from the decomposition of organic waste as fuel, and was sold to SF Agropecuária, a company based in Brasilândia, Mato Grosso do Sul.
Carlo Lambro, brand president of New Holland Agriculture, elaborated on this: “We continue to reinforce our sustainability strategy on the global level, confirming with concrete actions our brand’s leadership position in alternative propulsions but also in researching and developing new winning practices to apply a circular economy model in agriculture.”