NGS’ NG/LNG SNAPSHOT July 16-31, 2026

NGS’ NG/LNG SNAPSHOT July 16-31, 2026

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City Gas Distribution & Auto LPG

GAIL Signs MoU with North Eastern Railway to Provide PNG Connections to 700 Railway Quarters in Varanasi

Varanasi: GAIL (India) Limited has signed a Memorandum of Understanding (MoU) with North Eastern Railway (NER), Varanasi, to supply Domestic Piped Natural Gas (PNG) to railway residential quarters in the city. Under the agreement, around 700 railway residential quarters in Varanasi will be connected to GAIL’s PNG network, providing residents with a clean, safe, uninterrupted and environment-friendly cooking fuel option. Pipeline installation work for the project will begin soon.

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The initiative marks another important step in expanding clean energy infrastructure and promoting sustainable fuel adoption in Varanasi.

GAIL and North Eastern Railway Sign MoU for PNG Supply

The MoU was signed by:

Ashish Jain, Divisional Railway Manager (DRM), North Eastern Railway, Varanasi.

Sushil Kumar, General Manager, GAIL Varanasi.

The signing ceremony was attended by senior officials from both organisations, including:

Chandrakant Tandon from GAIL.

Debasis Sahu from GAIL.

  1. Aakash from GAIL.

Ajay Kumar Singh, ADRM, North Eastern Railway.

Vikas Kumar Singh, Sr. DEN/Co, North Eastern Railway.

The agreement will enable railway employees and residents living in railway colonies to access PNG through GAIL’s City Gas Distribution (CGD) network.

700 Railway Residential Quarters to Get Clean PNG Fuel Connection

As part of the agreement, approximately 700 railway residential quarters in Varanasi will be connected to the PNG supply network.

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The project will provide residents with several benefits:

Continuous and uninterrupted fuel supply.

Safe and convenient household energy solution.

Reduced dependence on LPG cylinder storage and availability.

Environment-friendly alternative for cooking needs.

The pipeline installation work is expected to start shortly, after which residents will gradually receive PNG connections.

PNG Offers Safe and Reliable Alternative to LPG Cylinders

During the event, GAIL Varanasi General Manager Sushil Kumar highlighted the progress of PNG connections in Varanasi and explained the advantages of piped natural gas for households.

He said PNG is:

Safe for domestic use.

Convenient and reliable.

A cleaner fuel option.

Suitable for long-term sustainable energy use.

North Eastern Railway DRM Ashish Jain also shared his positive experience with PNG, describing it as a safe, cost-effective and reliable fuel option.

He encouraged railway officers and employees to promote PNG adoption among more consumers.

Initiative Supports Green Energy and Sustainable Development Goals

The partnership between GAIL and North Eastern Railway is expected to strengthen clean energy adoption in Varanasi.

The initiative will help in:

Expanding natural gas infrastructure.

Promoting cleaner household fuel usage.

Improving consumer convenience.

Supporting sustainable and green development.

The project is part of GAIL Varanasi’s continued efforts under the City Gas Distribution (CGD) network to increase access to natural gas across the region.

https://indianmasterminds.com/news/gail-ner-mou-png-connections-700-railway-quarters-varanasi-219584/

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Govt sets target of 20k new PNG connections by Sept

Jaipur: Additional chief secretary (mines & petroleum) Aparna Arora Tuesday directed city gas distribution (CGD) companies in Rajasthan to release 20,000 new domestic piped natural gas (PNG) connections by the end of Sept.

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She asked firms to focus not only on households but also on industrial and commercial establishments, ensuring wider adoption of clean energy.

According to officials, CGD firms have connected 21,240 households and 240 industrial and commercial units to PNG in the past two months. Overall, 1.75 lakh families and 1,553 establishments across the state are now linked to the network.

Arora urged companies to develop retail models with oil marketing firms and expand infrastructure through decompression units and LNG-based systems. She stressed that households must be made aware of the eventual shift from LPG to PNG, which offers 24×7 availability, freedom from booking hassles, and greater safety.

Principal Secretary (General Administration) Naveen Jain said priority should be given to government quarters in Gandhinagar, Civil Lines, Vidyadhar Nagar, and Malviya Nagar. Land has already been allotted for a CDU station in Gandhinagar, and PNG connections are planned for circuit houses as well.

https://timesofindia.indiatimes.com/city/jaipur/govt-sets-target-of-20k-new-png-connections-by-sept/articleshow/132545574.cms

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‘Over 12L PNG connections in 3 months’

Kolkata: Eastern India is poised to become the next major growth centre for India’s city gas distribution (CGD) sector, industry leaders said at the 14th City Gas Distribution Conference-cum-Exhibition in Kolkata. Addressing the conference, Jayant Narayan Das, member of the Petroleum and Natural Gas Regulatory Board (PNGRB), highlighted the regulator’s efforts to expand the country’s gas distribution network, particularly in West Bengal and the Northeastern states.

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The official said PNGRB’s DPNG Drive 2.0 enabled more than 12 lakh household PNG connections within three months in India. Das said wider adoption of PNG would help reduce dependence on LPG cylinders while supporting the Centre’s vision of developing a gas-based economy. The conference brought together policymakers, city gas distribution companies, gas suppliers, gas traders, equipment manufacturers, and technology providers

https://timesofindia.indiatimes.com/city/kolkata/over-12l-png-connections-in-3-months/articleshow/132486208.cms

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Dholpur gas plant costs Rs 30/unit, Utpadan Nigam runs to meet high demand

Jaipur: Urja Vikas Nigam and IT Services Ltd (RUVITL), the agency responsible for securing power supplies to the state discoms, has turned to Utpadan Nigam’s Dholpur gas power plant to meet surging electricity demand.

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For five consecutive nights since July 15, the plant has been supplying additional power despite the absence of a power purchase agreement with discoms.

This has left Utpadan Nigam unable to claim payment for the electricity delivered. Officials estimate the company has incurred costs of nearly Rs 13 crore during this period, with generation expenses climbing to about Rs 30 per unit due to high natural gas prices.

“We do not have any power purchase agreement with the state discoms but still we are being asked to meet demand during peak hours,” an official said, underscoring the financial strain of the emergency dispatch.

In fact, the plant also does not have any long-term contract for sourcing gas since 2020 for running the plant.

On Monday, the discoms chairman issued a directive to RUVITL, instructing that the Dholpur plant should not be used except in genuine emergencies. The order cited the plant’s high variable cost, which makes its electricity significantly more expensive than alternative sources.

The directive clarified that the plant may only be operated during contingencies, outages of contracted capacity, or when required by the State Load Despatch Centre for grid security. It further stated that the gas-based unit should not be treated as a dependable source for long-term planning, given its prohibitive cost.

https://timesofindia.indiatimes.com/city/jaipur/dholpur-gas-plant-costs-rs-30/unit-utpadan-nigam-runs-to-meet-high-demand/articleshowprint/132545847.cms?val=3728

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West Asia war pushes ONGC to plan India’s first strategic gas reserve

NEW DELHI : State-run Oil and Natural Gas Corp. Ltd, or ONGC, is planning to create India’s first strategic natural gas reserve near its gas-producing assets in western India, according to two people close to the matter.

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The development comes after the Indian government’s plan to store natural gas in underground salt caverns failed to take off because of high capital expenditure and technical complexities.

A strategic natural gas reserve can cushion the impact of crises such as the West Asia war, which has disrupted global energy supplies, exposing India’s vulnerability as the country imports about 55% of its natural gas requirements, valued at around $15 billion annually.

The plan also follows the company’s recent announcement to build a 1.75 million-tonne (mt) strategic crude oil storage facility. New Delhi has strategic petroleum reserves of 5.2 mt.

https://www.livemint.com/companies/news/ongc-strategic-natural-gas-reserve-india-west-asia-war-lng-energy-security-11784718865508.html

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GAIL, RCF ink pact to develop gas-based urea plant in Maharashtra

New Delhi: State-run GAIL (India) Ltd and Rashtriya Chemicals and Fertilizers Ltd (RCF) have signed a memorandum of understanding to jointly develop a gas-based fertiliser plant in Maharashtra through a special purpose vehicle, the companies said on Wednesday.

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The proposed plant, with a capacity of 1.27 million tonnes per annum (MMTPA) of urea, will be located in the Vidarbha region along GAIL’s Mumbai-Nagpur-Jharsuguda natural gas pipeline. Under the agreement, GAIL and RCF will collaborate on taking the project from the conceptual stage through implementation.

“The proposed fertilizer project aligns with GAIL’s strategy of creating long-term value through natural gas utilization and contributing to India’s energy security objectives. We are pleased to partner with RCF, a leading fertilizer company with proven expertise in the sector. This collaboration combines GAIL’s strengths in the natural gas value chain with RCF’s rich experience in fertilizer manufacturing and project execution. Further, this partnership between GAIL & RCF is aligned with Government of India’s recently approved National Investment Policy for Urea-2026 (NIPU-2026) towards Atmanirbhar Bharat,” GAIL Chairman and Managing Director Deepak Gupta said.

RCF Chairman and Managing Director S. Shivakumar said: “RCF is delighted to collaborate with GAIL for the development of this important gas-based fertilizer project in Maharashtra. The proposed project is expected to contribute significantly towards meeting the growing fertilizer demand in the country, reducing import dependence and promoting industrial development in the Vidarbha region of Maharashtra.

“Leveraging RCF’s extensive experience in fertilizer plant operations, project development and marketing, together with GAIL’s robust gas infrastructure and energy expertise, this partnership has the potential to create a world-class fertilizer facility.”

The memorandum of understanding was signed by GAIL Executive Director (Business Development & Start-up) Sanjay Agarwal and RCF Executive Director (Project, Corporate & Coordination) Jyoti Patil in the presence of senior executives from both companies.

https://www.millenniumpost.in/amp/business/gail-rcf-ink-pact-to-develop-gas-based-urea-plant-in-maharashtra-670230

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Indraprastha Gas Limited opens NCR’s first LNG station in Dadri

NEW DELHI: NCR’s first Liquefied Natural Gas (LNG) station was inaugurated at CONCOR multimodal logistics park in Gautam Buddha Nagar district’s Dadri area, on Wednesday.
The project marks a major step towards decarbonising long-haul freight transportation and expanding India’s clean fuel infrastructure.

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Set up by Indraprastha Gas Limited (IGL), the LNG station can refuel 50-60 long-haul vehicles a day and has a maximum dispensing capacity of 20 metric tonnes of LNG per day. LNG for the station will be transported from Dahej in Gujarat. Developed at an investment of Rs 11.8 crore, the project has been set up under the company-owned, company-operated model on an area of around 4,200 square metres.

The station is equipped with a 56.8 KL (around 22 MT) LNG storage tank, a 150 LPM LNG dispenser and a 100 SCMH LP vaporiser, enabling it to serve LNG-powered long-haul trucks operating on major freight corridors.

The station was inaugurated by CONCOR chairman and managing director Sanjay Swaroop in the presence of IGL managing director Kumar Shanker and other senior officials of both companies.

IGL said the commissioning of the station aligns with the Centre’s vision of increasing the share of natural gas in the energy mix, reducing dependence on conventional fuels, lowering vehicular emissions and promoting sustainable mobility.

LNG, with its higher energy density, longer driving range and lower emissions than conventional fuels, offers an economical fuel option for long-haul commercial transportation.

“With the commissioning of this LNG station, IGL has further strengthened its portfolio beyond CNG and PNG by expanding its LNG infrastructure, reaffirming its commitment to delivering cleaner, greener, more economical and sustainable energy solutions for India’s transportation sector,” the company said.

https://timesofindia.indiatimes.com/city/noida/indraprastha-gas-limited-opens-ncrs-first-lng-station-in-dadri/articleshow/132707575.cms

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HPCL expands PNG network in Bengal’s Nadia with Chakdah gas station, new household connections

The expansion of piped natural gas (PNG) infrastructure in West Bengal’s Nadia received a major boost with the commissioning of a District Regulating Station (DRS) at Chakdah and the launch of a new domestic PNG connection, strengthening the City Gas Distribution (CGD) network in the district.

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The District Regulating Station, which regulates gas pressure before supply to consumers, was inaugurated by Jayanta Narayan Das, Member (Technical), Petroleum and Natural Gas Regulatory Board (PNGRB), in the presence of Animesh Kumar Sinha, Head of City Gas Distribution, Hindustan Petroleum Corporation Limited (HPCL), and other senior company officials.

Das also inaugurated a domestic PNG connection in the Chakdah Municipality area, extending piped natural gas services to more households.

HPCL officials said the expansion would encourage consumers to shift from LPG cylinders to PNG by providing an uninterrupted fuel supply, improved safety and greater convenience.

According to the company, PNG supply has already commenced in several parts of the Kalyani subdivision, including Gayeshpur, Kataganj and Shaguna Gram Panchayat, where households are gradually adopting piped natural gas as an alternative to conventional LPG cylinders.

On the same day, Das flagged off domestic PNG infrastructure work at Elita Garden Vista, a residential complex in Kolkata.

Addressing residents, he highlighted the benefits of PNG, including continuous fuel availability, enhanced safety, ease of use and freedom from the inconvenience of handling LPG cylinders.

HPCL said the latest initiatives would further strengthen the City Gas Distribution network across Nadia and North 24 Parganas while supporting the Centre’s vision of building a gas-based economy.

The projects are aligned with the Government of India’s target of increasing the share of natural gas in the country’s energy basket to 15 per cent by 2030.

Company officials said the expansion of PNG infrastructure would promote cleaner, safer and more sustainable energy solutions for urban households across West Bengal.

https://www.thestatesman.com/cities/kolkata/hpcl-expands-png-network-in-bengals-nadia-with-chakdah-gas-station-new-household-connections-1503618447.html/amp

AVG Logistics, Nestlé India and Ashok Leyland launch CNG green corridor

AVG Logistics on Saturday said it has partnered with Nestlé India and Ashok Leyland to deploy a dedicated green logistics corridor using 50 compressed natural gas (CNG) trucks, the company said in a regulatory filing on Friday.

The CNG fleet will serve Nestlé India’s supply chain and is expected to cover about 2.75 lakh kilometres every month. AVG Logistics estimates the move will lead to an annual reduction of around 1.1 lakh kg of carbon dioxide emissions.

Operations and supply chain impact

AVG Logistics said that the initiative seeks to improve fuel efficiency and reduce dependence on conventional transport while supporting lower-emission logistics operations. The company said the deployment aligns operational requirements with emission reduction targets across the supply chain.

The company acknowledged the involvement of Nestlé India’s supply chain and physical logistics teams in implementing the corridor, and said Ashok Leyland supported the project through the supply of CNG vehicles.

AVG Logistics said the partnership is expected to support its financial performance by enabling new supply chain solutions and improving operational processes. The company added that it plans to continue adopting fuel-efficient and technology-led logistics models across its network.

https://infra.economictimes.indiatimes.com/news/logistics/avg-logistics-nestl-india-and-ashok-leyland-launch-cng-green-corridor/126320784#:~:text=using%2050%20compressed-,natural%20gas,-%28CNG%29%20trucks%2C%20the

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PNG Supply Begins in Patna’s Gardanibagh, Natural Gas to Soon

Patna: Residents in Patna’s Gardanibagh area are now receiving piped natural gas (PNG) for the first time, as the state expands its gas infrastructure to meet domestic and industrial needs. The supply has been initiated through District Regulating Systems (DRS) installed at Gardanibagh and Bypass Sipara, with over two dozen homes already connected.

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Approximately 1,000 local households have applied for PNG connections, of which 200 have so far been activated. Officer’s Enclave was the first area in Patna to receive the facility. GAIL India General Manager A.K. Singh said that ten consumers have begun using the gas supply, and connections will soon be extended to the wider area.

Patna’s PNG distribution is supported by five DRS units located at AIIMS, BIT, IGIMS, Gardanibagh, Bypass Sipara, and Fatuha. Each DRS can supply gas to between 30,000 and 35,000 homes. Currently, around 28,000 households are receiving PNG, serving more than 50,000 people across the city.

Industrial Supply in Fatuha to Begin Soon

Plans are also underway to provide PNG to industrial units in Fatuha. Pipelines and technical inspections have been completed, and authorities are awaiting the necessary licence to begin regular supply next month. Factories in the region currently rely on LPG cylinders and diesel, which increase production costs. The introduction of PNG is expected to offer industries a safer, cleaner, and more cost-effective energy source.

Pipeline to Bihta in Progress

GAIL officials also confirmed that a six-inch pipeline is being laid from Naubatpur to Bihta. A new DRS will be installed at IIT Patna, with discussions ongoing with the institute to facilitate industrial connections. Once operational, the pipeline will support gas supply to a range of industrial consumers in the area.

https://patnapress.com/png-supply-patna-gardanibagh-fatuha-industries/

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Natural Gas/ Pipelines/ Company News

GAIL, RCF sign MoU for Rs 10,000 cr fertiliser project at Saoner

The proposed gas-based fertiliser project at Saoner in Nagpur district has received a major boost with the signing of a memorandum of understanding (MoU) between Gas Authority of India Limited (GAIL) and Rashtriya Chemicals and Fertilizers Limited (RCF) on Wednesday. The project, involving an investment of approximately Rs 10,000 crore, is expected to significantly strengthen the region’s industrial and agricultural landscape. The MoU was signed in New Delhi by Sanjay Agarwal, Executive Director, Business Development & Start-up, GAIL; and Jyoti Patil, Executive Director, Projects, Corporate & Coordination, RCF.

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The signing ceremony was attended by Deepak Gupta, Chairman and Managing Director of GAIL, and S Shivakumar, Chairman and Managing Director of RCF. The project will be implemented through a special purpose vehicle (SPV). In the first phase, a state-of-the-art urea manufacturing plant with a capacity of 1.27 million metric tonnes per annum (MMTPA) will be established along GAIL’s Mumbai–Nagpur–Jharsuguda Natural Gas Pipeline (MNJPL). The project is aligned with Prime Minister Narendra Modi’s vision of ‘Atmanirbhar Bharat’ and aims to increase domestic urea and fertiliser production while reducing dependence on imports. The selection of Saoner for this prestigious fertiliser project is the outcome of the long-term planning and sustained efforts of MLA Dr Ashishrao Deshmukh. MLA Dr Ashishrao Deshmukh said that the project is expected to improve the availability of urea and other fertilisers to farmers, help stabilise prices, protect farmers from exploitation, promote regional industrial growth and create large-scale employment opportunities.

Expressing his gratitude, Deshmukh thanked Chief Minister Devendra Fadnavis for his support in bringing the project to fruition. As part of the project’s development, Fadnavis held a meeting with senior GAIL officials on April 10, 2025. This was followed by a preliminary meeting on July 17 2025 and another discussion in Mumbai on August 4, 2025, after which GAIL conveyed a positive response to the Maharashtra Government. On August 12, 2025, GAIL submitted the final proposal to the State Government, which approved the project. Saoner was selected after considering water availability, connectivity to the natural gas pipeline, logistics, industrial growth potential and national food security requirements. Subsequently, on September 1, 2025, the Government of Maharashtra recommended the project to the Government of India for approval under the New Investment Policy (NIP) and assured full cooperation for its timely implementation.

On November 18, 2025, MLA Deshmukh, along with senior officials from GAIL and MIDC, inspected potential project sites at Khursapar, Jatamkhora, Jalalkheda and Sawli Mohatkar and reviewed the proposed project layout.

Notably, Deshmukh has been consistently pursuing the establishment of a fertiliser manufacturing plant in Vidarbha since 2023. He regularly followed up with Chief Minister Fadnavis, senior GAIL officials, Union Agriculture Minister Shivraj Singh Chouhan, Union Minister for Health and Chemicals & Fertilisers J P Nadda and Union Home and Cooperation Minister Amit Shah. He effectively highlighted the availability of essential infrastructure, including the natural gas pipeline at Saoner.

https://www.thehitavada.com/Encyc/2026/7/31/gail-rcf-sign-mou-for-rs-10000-cr-fertiliser-project-at-saoner-.html

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Adani CNG Price Hike: Ahmedabad CNG Price Rises by ₹2, Crosses ₹90 per Kg

Adani Gas hiked Ahmedabad CNG prices by ₹2 to ₹90.02/kg, reflecting global crude and natural gas price surges. This increase impacts daily commuters, auto/taxi drivers, and commercial vehicles, raising monthly fuel bills and potentially increasing transportation costs for goods and services, leading to broader inflation.

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Adani CNG Price Hike

Adani Gas has increased the price of CNG in Ahmedabad by ₹2 per kg. The new retail price now stands at ₹90.02 per kg.

The hike comes amid rising global crude oil and natural gas prices, adding to the fuel cost burden on consumers.

Who Will Feel the Impact?

The price increase is expected to hit daily commuters, auto-rickshaw drivers, taxi operators and commercial vehicle owners who rely on CNG for their livelihood.
For regular motorists, the higher rate could translate into increased monthly fuel expenses.

Could Prices Rise Further?

Higher CNG prices may also increase transportation costs. If operating expenses for goods carriers and public transport go up, the cost of essential commodities and everyday services could also see an impact.

https://english.gujaratsamachar.com/news/ahmedabad/adani-cng-price-hike-ahmedabad-cng-price-rises-by-indian-rupee2-it-indian-rupee9002-per-kg-12136814350

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Gujarat Gas Hikes CNG Price by Rs 2

Surat: Gujarat Gas has increased the price of CNG by ₹2 per kg, with the revised rates coming into effect on Monday.  Following the hike, CNG in Surat will now cost ₹85.01 per kg. The increase is expected to impact thousands of auto-rickshaw drivers, school van operators, and private vehicle owners who rely on CNG as a more affordable alternative to petrol and diesel.

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Auto-rickshaw operators say the higher fuel cost will reduce their daily earnings and may eventually force them to seek a fare revision. School transport operators are also likely to face higher operating costs, which could be passed on to parents.

The latest hike is expected to increase monthly fuel expenses for commuters and small businesses that depend on CNG-powered vehicles. DeshGujarat

https://deshgujarat.com/2026/07/20/gujarat-gas-hikes-cng-price-by-rs-2/#google_vignette

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HPCL invites LNG suppliers for spot and long-term import deals

Hindustan Petroleum Corp has invited LNG suppliers to register for future deliveries. The company seeks both spot purchases and long-term supply agreements.Hindustan Petroleum Corp on Monday invited liquefied natural gas (LNG) suppliers, producers and traders to register to supply LNG on a spot and ‌long-term ⁠basis, according ⁠to a notice on its website.

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HPCL operates an LNG import and regassification facility at Chhara in western India with annual capacity of 5 million metric tons.

Apart from spot ⁠purchases, HPCL ‌is looking to import up to 1 million tons per ⁠year of LNG for 10 to 15 years, sources with knowledge of the matter said. 

HPCL did not respond immediately to an emailed request for comment. India wants to raise the share of ‌gas in its energy mix to 15 per cent from about 6 per cent currently to cut ⁠its carbon footprint.

HPCL also has a 10-year LNG import deal with Abu Dhabi National Oil Co for 500,000 tons of LNG every year from 2028. The company also buys LNG through spot tenders.

https://manufacturing.economictimes.indiatimes.com/news/energy/hpcl-invites-lng-suppliers-for-spot-and-long-term-import-deals/132516508

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Desco Infratech commissions 100-km+ city gas network for Adani Total Gas

Desco Infratech, in a press statement, said the project was executed in line with prescribed technical specifications, quality standards, and predefined timelines. City gas distribution infrastructure provider Desco Infratech Ltd on Wednesday said it completed and commissioned a major city gas distribution project for Adani Total Gas Limited (ATGL) in Faridabad, Haryana.

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The scope of the project involved laying over 100 kilometres of Medium Density Polyethylene (MDPE) pipeline network and installing more than 6,500 domestic Piped Natural Gas (PNG) connections.

Desco Infratech, in a press statement, said the project was executed in line with prescribed technical specifications, quality standards, and predefined timelines. 

The company noted that completing the contract strengthens its portfolio in support of India’s natural gas infrastructure expansion and aligns with the government’s objective to increase natural gas usage in the national energy mix.

The company highlighted that ongoing geopolitical developments across West Asia have created ripples in global supply chains, logistics, and energy markets, underscoring the strategic need for resilient domestic gas networks.

Despite these external market conditions, the project was executed in accordance with quality assurance and safety standards.

“Executing more than 100 kilometres of MDPE pipeline network together with over 6,500 domestic PNG installations demonstrates our technical competence, disciplined execution capabilities, and unwavering commitment to quality and safety,” said Malhar Desai, Whole-time Director of Desco Infratech Limited.

“This achievement becomes even more meaningful in the context of the evolving geopolitical landscape and heightened volatility in global energy markets. As nations increasingly focus on strengthening energy security and building resilient gas infrastructure, we remain committed to delivering world-class engineering solutions that support India’s clean energy transition,” Desai added.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/desco-infratech-commissions-100-km-city-gas-network-for-adani-total-gas/132710121

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GAIL net profit more than doubles with enhanced profitability from natural gas marketing

State-owned distributor Gas Authority of India Ltd. (GAIL)’s net profit in the June-end quarter more than doubled to ₹4,292.33 crore driven primarily by enhanced profitability of their natural gas marketing segment which is the major contributor to the company’s overall revenues.

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Profit before taxes of their natural gas marketing segment soared more than triple to ₹3,481.29 crore.

On a standalone basis, the distributor’s revenues rose about 13% on a year-over-year basis to ₹35,084.37 crore.

Separately, speaking to analysts, the company informed it maintains its gas marketing guidance of ₹4,500 crore profit before tax for FY 2026-27.

https://www.thehindu.com/business/gail-net-profit-more-than-doubles-with-enhanced-profitability-from-natural-gas-marketing/article71291881.ece

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Adani Total Gas cuts CNG, PNG prices after PNGRB tariff reset

New Delhi: Adani Total Gas Ltd (ATGL), the city gas joint venture of Adani Group and French giant TotalEnergies, has cut prices of CNG and natural gas piped to household kitchens for cooking across multiple markets, delivering direct relief to them and motorists.

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CNG and domestic piped natural gas (PNG) prices have been cut by up to Rs 4, the company said. The reduction follows the landmark tariff reform by the Petroleum and Natural Gas Regulatory Board (PNGRB), which has streamlined gas transportation charges and lowered input costs for city gas distributors.

ATGL said the price reduction varies by geography, depending on transportation zones. In Gujarat and adjoining Madhya Pradesh-Maharashtra areas, CNG is now cheaper by Rs 0.50 to Rs 1.90 per kg while domestic PNG is down by up to Rs 1.10 per standard cubic metre.

In Rajasthan, Punjab, Haryana-NCR, northern Madhya Pradesh and bordering Uttar Pradesh, CNG price has been reduced by Rs 1.40 to Rs 2.55 per kg while domestic PNG is cheaper by Rs 1.10 to Rs 4.00 per scm. In Central and Eastern India, CNG prices fall by Rs 1.81 to R 4.05 per kg, and domestic PNG are down by up to Rs 4.00 per scm.

Effective January 1, 2026, PNGRB’s new tariff order has collapsed three gas transportation zones into two, applying a uniform Zone-1 tariff of Rs 54 per million British thermal unit (excluding tax) for domestic PNG and CNG-Transport segments nationwide. The simplified structure removes regional inefficiencies and directly translates into lower consumer prices.

Besides ATGL, GAIL Gas Ltd has also announced a Rs 1 reduction in CNG and PNG prices. Indraprastha Gas Ltd (IGL), India’s largest city gas retailer, has cut prices PNG for cooking in Delhi and NCR towns by Rs 0.70 per standard cubic metre (scm), while Think Gas has reduced CNG prices by Rs 2.50 per kg and that of PNG by up to Rs 5 per scm.

Welcoming the reform, Suresh P Manglani, ED and CEO, ATGL, said the move would make natural gas more affordable and accelerate the adoption of cleaner fuels across homes and transport. ATGL operates in 53 geographical areas, directly and through IOAGPL, serving over 1.2 million households and running nearly 1,100 CNG stations nationwide.

“We welcome PNGRB’s landmark initiative to simplify and rationalise gas transportation charges, a move that directly benefits millions of consumers who rely on CNG for their vehicles and piped natural gas for their homes. “By making natural gas more affordable and accessible, this reform will encourage wider adoption of cleaner fuels across households and the transportation sector,” Manglani said. With natural gas still forming only around 6 per cent of India’s energy mix, such cost-rationalisation measures are seen as critical to achieving the government’s 15 per cent by 2030 target – positioning gas as India’s key transition fuel.

PNGRB had on December 16 announced a rationalised tariff structure for pipelines that move natural gas – the feedstock for generating electricity, producing fertiliser, making CNG and used as fuel in household kitchens. The revised tariffs, which are effective January 1, make natural gas transportation simpler, fairer and more cost-effective for consumers and the city gas distribution sector. Under the revised regime, effective January 1, 2026, the number of distance-based tariff zones has been reduced from three to two – up to 300 km and beyond – with a single lower Zone-1 rate (around Rs 54 per million British thermal unit) now applied nationwide for CNG and domestic PNG customers, regardless of distance from the gas source, according to PNGRB.

https://www.millenniumpost.in/business/adani-total-gas-cuts-cng-png-prices-after-pngrb-tariff-reset-642428#:~:text=PNG%20prices%20after-,PNGRB,-tariff%20reset%20New&text=of%20CNG%20and-,natural%20gas,-…%20The%20reduction&text=the%20Petroleum%20and-,Natural%20Gas,-…%20Besides%20ATGL%2C&text=…%20Besides%20ATGL%2C-,GAIL,-Gas%20Ltd%20has

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Torrent Gas slashes CNG price by up to Rs 3.50/kg, PNG by up to Rs 2 per unit

NEW DELHI, Jan 2 : Torrent Gas on Friday announced a reduction of up to Rs 3.50 per kg in the retail price of CNG and up to Rs 2 per standard cubic metre in domestic PNG in its areas of operation connected to the National Gas Grid across the country.

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“This will make CNG cheaper by up to 43 per cent vis-a-vis petrol,” the company said in a statement.

This reduction in prices of CNG and PNG comes on the back of the implementation of the Unified Tariff order by PNGRB, effective from January 1, 2026.

“This reduction in CNG and PNG prices will bring great relief to households using it as cooking fuel and to CNG vehicle owners by reducing household expenses for the common man. This bold step, along with the nationwide PNGRB Campaign for promoting the usage of Natural Gas, is also expected to give an impetus to the offtake of new PNG connections amongst households and encourage the sale of new CNG vehicles, including passenger and commercial segments,” it said.

Torrent Gas has always been at the forefront of passing on the benefits of lower costs to its customers.

“This reduction in prices has been made possible due to the implementation of Zone-1 Tariffs for City Gas Distribution entities for CNG and PNG segments. This has reduced the gas transportation costs for the CGD entities, making the price reduction possible,” it said.

Torrent Gas currently operates 526 CNG stations and has connected more than 2 lakh households with piped gas connections across 34 districts where it operates, making life easier and convenient for its customers. 9PTI)

https://www.dailyexcelsior.com/torrent-gas-slashes-cng-price-by-up-to-rs-3-50-kg-png-by-up-to-rs-2-per-unit/#:~:text=Tariff%20order%20by-,PNGRB,-

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Policy Matters/ Gas Pricing/ Others

Gas sector overhaul: PNGRB orders legal split of natural gas marketing and pipeline operations

Gas sector overhaul: The regulator has mandated the legal separation of entities engaged in natural gas marketing and laying, building, operating, or expanding gas transportation pipelines PNGRB amends the existing regulations governing the unbundling of natural gas marketing and transportation activities

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The regulator has mandated the legal separation of entities engaged in natural gas marketing and laying, building, operating, or expanding gas transportation pipelines

Such companies will be required to create separate legal entities for natural gas marketing and transportation

The Right of First Use will be available to the affiliate of the separate legal entity

This provision will apply to entities authorized as common carriers or contract carriers on or before March 31, 2017

The new provision is expected to promote the development of a fair and competitive gas transportation market

It is also expected to be a step forward in ensuring fair and accurate determination of transportation tariffs

PNGRB has amended the Affiliate Code of Conduct Regulations, 2008

https://www.etnownews.com/news/gas-sector-overhaul-pngrb-orders-legal-split-of-natural-gas-marketing-and-pipeline-operations-article-155148145/amp

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PNGRB to Open City Gas Networks to Third-Party Capital & Introduce Independent TSO

The Petroleum and Natural Gas Regulatory Board (PNGRB) has unveiled its annual action plan, outlining strategic priorities to accelerate natural gas adoption and foster competition across India’s downstream energy sector. A cornerstone of the roadmap includes opening City Gas Distribution (CGD) networks to external capital investment and third-party access in geographical areas where infrastructure exclusivity has expired.

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To enhance transparency and facilitate open access to natural gas infrastructure, the regulator plans to revise pipeline authorization framework to evaluate capex-based bidding, unbundle gas transmission from marketing, and establish an independent Transmission System Operator (TSO) to ensure non-discriminatory pipeline access.

Additional strategic initiatives under the current year’s action plan include revising CGD authorization rules for inter-network connectivity, enabling compressed biogas (CBG) trading and regasified LNG terminal capacity booking on gas exchanges, and launching an integrated digital consumer portal for streamlined grievance redressal.

Strategic Priorities & Regulatory Action Plan

Third-Party CGD Access: Permitting external capital infusion and infrastructure sharing in CGD regions post-exclusivity expiry.

Pipeline Infrastructure Unbundling: Progressing toward an independent Transmission System Operator (TSO) and reviewing pipeline authorization regulations via capex-based bidding models.

Market Integration: Enabling CBG trading and RLNG terminal capacity booking on gas exchanges to boost market liquidity.

Demand Creation & Policy Support: Partnering with state governments to establish LPG-free zones to accelerate Piped Natural Gas (PNG) adoption, while shifting fuel transport from road/rail to pipelines.

Consumer Governance: Launching an integrated digital PNGRB consumer portal to centralize registration, tracking, and resolution of consumer grievances.

Sector: Downstream Oil & Gas, Energy Infrastructure & Regulatory Affairs

https://www.psuindia.com/amp/government/energy/pngrb-to-open-city-gas-networks-to-third-party-capital-introduce-independent-tso-553672

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Eastern India set for city gas distribution growth, PNGRB highlights expansion efforts

The regulator is actively expanding the gas distribution network across West Bengal and Northeast states. This expansion aims to increase household PNG connections and reduce LPG cylinder reliance. The initiative supports the nation’s vision for a gas-based economy.

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Eastern India is set to become a significant growth hub for the city gas distribution sector. Industry leaders discussed this potential at a recent conference in Kolkata.
Kolkata: Eastern India is poised to become the next major growth centre for India’s city gas distribution (CGD) sector, industry leaders said at the 14th City Gas Distribution Conference-cum-Exhibition in Kolkata.

Addressing the conference, Jayant Narayan Das, member of the Petroleum and Natural Gas Regulatory Board (PNGRB), highlighted the regulator’s efforts to expand the country’s gas distribution network, particularly in West Bengal and the Northeastern states.

The official said PNGRB’s DPNG Drive 2.0 enabled more than 12 lakh household PNG connections within three months in India. Das said wider adoption of PNG would help reduce dependence on LPG cylinders while supporting the Centre’s vision of developing a gas-based economy.

https://energy.economictimes.indiatimes.com/amp/news/oil-and-gas/eastern-india-set-for-city-gas-distribution-growth-pngrb-highlights-expansion-efforts/132494655

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Ethanol Cooking Fuel Policy in India

India’s Ministry of Petroleum and Natural Gas is developing a policy framework to introduce ethanol as a cooking fuel in households. The proposal is linked to India’s surplus ethanol output, LPG import dependence, and ongoing work on ethanol-based stoves and refill systems.

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Ethanol as a Cooking Fuel

Ethanol is a biofuel produced mainly from sugarcane juice, molasses, damaged foodgrains, and other biomass feedstocks. It is an alcohol-based fuel with a high octane rating and has been used in transport fuel blending in several countries. India has already expanded ethanol use in the transport sector through the E20 blending programme, which targets 20% ethanol blending in petrol. The cooking-fuel proposal extends ethanol use beyond mobility into domestic energy applications.

Policy Framework and Household Adoption

The policy framework for household ethanol use is expected to include financial support measures. These may include one-time capital support for ethanol stoves or recurring fiscal incentives for consumers. Oil marketing companies in India are conducting research and development on ethanol-based cooking stoves. They are also examining dispensing systems at fuel stations, including ethanol refill points described as ethanol ATMs.

Energy Security and Fuel Substitution

Liquefied Petroleum Gas is a major household cooking fuel in India, and a large share of domestic demand is met through imports. India’s LPG supply chain depends on international shipping routes, including the Strait of Hormuz, which is a strategic chokepoint for energy transport. India’s annual ethanol production capacity has crossed 20 billion litres. An additional 4 billion litres is expected in the current financial year, and the estimated surplus after meeting E20 blending and industrial demand is about 7 billion litres.

Important Facts for Exams

Ethanol is an alcohol-based biofuel used in transport blending and industrial applications.

E20 refers to petrol blended with 20% ethanol by volume.

Oil marketing companies in India include Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation.

The Strait of Hormuz is a narrow maritime passage linking the Persian Gulf with the Gulf of Oman.

India’s Biofuel Context

The National Policy on Biofuels, 2018, provides the broad policy basis for ethanol expansion in India. Ethanol blending in petrol has been used as a tool for reducing fossil fuel imports and supporting domestic biofuel supply chains. Household ethanol use would place cooking fuel within India’s wider bioenergy and clean-fuel framework.

https://www.gktoday.in/ethanol-cooking-fuel-policy-in-india/

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Cabinet approves offshore exploration scheme

The Union Cabinet on Friday approved the Rs 84,084-crore “Samudra Manthan” National Offshore Exploration Scheme to partly fund the high cost of finding oil and gas in deepwater areas, drilling exploratory wells and building common infrastructure to bring new discoveries into production.

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Under the scheme, the Government will provide support of up to Rs 650 crore for each well drilled in deepsea and ultra-deepsea areas, officials said, as part of efforts to boost domestic oil and gas output and reduce reliance on imports.

More than half of the scheme’s total outlay, or Rs 43,200 crore, will be allocated over five years through 2031 to support deepsea drilling, an activity involving high costs and significant geological risks as not every exploratory well results in a commercial discovery.

Another Rs 10,000 crore has been earmarked to partially fund common infrastructure needed to bring discovered oil and gas reserves into production. The scheme also provides Rs 28,534 crore for offshore data acquisition and Rs 2,000 crore for developing oil and gas manufacturing and services zones.

Drilling in ultra-deepwater areas, where water depths exceed 1,500 metres, can cost between $100 million (about Rs 950 crore) and $250 million (around Rs 2,400 crore) per well, with no certainty that the investment will result in a discovery or contribute to higher domestic production.

The Government expects the scheme to accelerate exploration in offshore basins, attract investment and help unlock India’s offshore hydrocarbon potential, according to an official statement.

India’s reliance on imported crude oil, the key raw material used to produce fuels such as petrol and diesel, has increased over the past decade from 77 per cent to 88 per cent. The country also imports around half of its natural gas requirements, which is used in sectors including fertiliser production, power generation, compressed natural gas (CNG) for vehicles and piped cooking gas supplies to households.

The recent conflict in West Asia, which disrupted energy supplies, highlighted the vulnerability of import-dependent economies and renewed focus on strengthening domestic production capacity. “The Union Cabinet chaired by the Prime Minister Narendra Modi has approved ‘Samudra Manthan’ – the National Offshore Exploration Scheme, a Central Sector Scheme of the Ministry of Petroleum & Natural Gas with an approved outlay of Rs 84,084 crore for implementation up to FY 2030-31,” the statement said.

The scheme aims to step up exploration in deepwater and ultra-deepwater areas through large-scale seismic surveys, exploratory drilling, scientific drilling in frontier basins and the development of common offshore production and evacuation infrastructure.

The programme also provides for the creation of an integrated oil and gas manufacturing and services zone, along with investments in digital programme management, technology adoption, capacity building, stakeholder engagement and international collaboration to support offshore exploration and production, it said.

India’s oil and gas output has been under pressure due to the natural decline of ageing fields, while limited investment in frontier basins with potential for fresh discoveries has constrained production growth. Against this backdrop, the Government has allocated funds for a five-year programme through FY2030-31 to accelerate offshore exploration and develop supporting infrastructure. The scheme is aimed at supporting seismic surveys, deepwater and ultra-deepwater drilling, exploration in frontier basins and the creation of common offshore production and evacuation facilities.

The Government expects the scheme to help discover more than 600 million tonnes of oil equivalent (MMTOE) of hydrocarbon reserves, increase domestic oil and gas production, generate employment, strengthen domestic manufacturing and attract investments across the exploration and production value chain.

The approval builds on a series of upstream sector reforms undertaken over the past decade, including opening almost the entire offshore acreage for exploration, modernising the legislative and contractual framework and strengthening the National Data Repository.

The Government said the scheme would accelerate offshore exploration through strategic public investment, advanced technologies and common infrastructure as India seeks to reduce its reliance on imported oil and gas and improve long-term energy security.

The scheme was first outlined by Prime Minister Narendra Modi during his Independence Day address in 2025, when he called for a modern-day ‘Samudra Manthan’ to unlock India’s offshore energy resources.

India has overhauled its oil and gas exploration policy three times since 1997, moving away from Production Sharing Contracts (PSCs) that let companies recover costs before splitting profits with the Government, toward a system based on revenue sharing and exploration commitments.

The Hydrocarbon Exploration and Licensing Policy (HELP), adopted in 2016, replaced PSCs with Revenue Sharing Contracts (RSCs), under which the Government’s take is based on gross revenue rather than costs, eliminating cost-recovery disputes.  HELP also introduced the Open Acreage Licensing Policy (OALP), letting companies propose blocks year-round instead of waiting for bid rounds, along with a uniform licence, and marketing and pricing freedom.

The Government later introduced a hybrid model to boost exploration in undercommercialised basins: unexplored areas within producing basins are still bid out on a revenue-sharing basis but with greater weight given to companies’ proposed work programmes, while blocks in basins with no commercial production are awarded purely on work commitments, with no revenue share to the Government beyond royalties.

The framework was consolidated under the Oilfields (Regulation and Development) Amendment Act, 2025, which took effect in April, delinking petroleum operations from mining law and introducing a single petroleum lease, graded royalties and legal stability provisions — underpinning the 50 new exploration blocks the Government put up for bidding across OALP, small-field and coal-bed-methane rounds in December 2025.

https://dailypioneer.com/news/cabinet-approves-offshore-exploration-scheme

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LNG Use / LNG Development and Shipping

Final clearance process underway for first LNG-based power plant in Andaman Islands

Kolkata: Plans for the first gas-based power plant on the Andaman and Nicobar (A&N) Islands seem to be moving forward with the Andaman and Nicobar Pollution Control Committee seeking comments from “concerned persons” on the Environment Impact Assessment (EIA) and Environment Management Plans (EMP) reports on the transportation of Liquefied Natural Gas (LNG) to the site.

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Under the project that was all but shelved, Indian Oil Corporation Limited (IOCL) proposes to supply regasified LNG to a 55 MW LNG-based power plant being implemented by NTPC Vidyut Vyapar Nigam Limited (NVVN), a wholly owned subsidiary of NTPC Limited, at Hope Town, Sri Vijaya Puram (formerly Port Blair).

The power plant had already obtained Environmental Clearance (EC) from the Ministry of Environment, Forest and Climate Change (MoEF&CC) in September 2022. The A&N Islands currently rely heavily on diesel-based power generation to meet electricity demand. To ensure a reliable, cost-effective, and environmentally sustainable power supply to the islands, the Government of India initiated the development of an LNG-based power generation project at Hope Town.

The proposed project forms part of the government’s broader strategy to move towards cleaner energy sources and reduce dependence on conventional diesel-based power generation in island territories.

Initially, the plant was to be dual-fuel (diesel and LNG), and the overall responsibility was handed over to NVVN. Subsequently, the project configuration was revised to operate as a single-fuel LNG-based power plant in line with the Centre’s policy to de-dieselise power generation in the islands.

The Ministries of Power and Petroleum and Natural Gas, with concurrence from the Ministry of Home Affairs, subsequently designated IOCL as the implementing agency for the development of the LNG supply infrastructure for the power plant. Small LNG tankers will carry gas to the island and transfer the load to a Floating Storage and Re-gassification Unit (FSRU). The gas from the FSRU will then be piped to the power plant.

As the project falls under Category ‘A’ of the Schedule to EIA Notification, 2006 under Item 6(a) relating to oil and gas transportation pipelines and associated LNG infrastructure, it requires appraisal at the central level by the Expert Appraisal Committee (EAC) of the Union Ministry of Environment, Forest and Climate Change.

IOCL submitted an application to the ministry through the PARIVESH portal to obtain Terms of Reference (ToR) for preparing the EIA/EMP reports for the proposed project.

The ministry has granted ToR for the project, and as part of the environmental appraisal process, baseline environmental studies were previously conducted for the project between March and May 2023. IOCL has engaged Indomer Coastal Hydraulics (P) Ltd, Chennai, an ISO-certified and QCI-NABET-accredited environmental consultancy organisation, to prepare and update the EIA/EMP report based on the earlier available baseline environmental data and present it in a form suitable for regulatory requirements.

In addition, the CRZ mapping and report were revised by the IRS, Anna University, Chennai. The final report presents the details of the revision in EIA and EMP studies by using all the earlier baseline environmental data and recently collected supplementary data.

The EIA report presents the environmental baseline status of the study area, an assessment of potential environmental impacts associated with the proposed project, and the mitigation measures proposed to minimise adverse impacts during the construction and operational phases.

The report also includes the EMP, outlining the measures proposed for environmental protection and sustainable operation of the project.

The proposed FSRU project will be floating in the sea in Hope Town at Ferrargunj Tehsil in South Andaman District, Andaman and Nicobar Islands. The success of the project lies in the installation of a 0.07 MMTPA capacity gas (LNG) supply infrastructure (FSRU), which is mandatory. According to the A&N Administration, this is justified to give the project a green light to reduce dependence on Diesel Generator sets in the A&N Islands. The shift to LNG will not only be a cheaper option but also release 60-90 per cent less smog-producing pollutants and 30- 40 per cent less greenhouse gases.

https://www.thehansindia.com/amp/news/national/final-clearance-process-underway-for-first-lng-based-power-plant-in-andaman-islands-1099011

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GreenLine partners with Dabur India to deploy LNG-powered trucks for greener logistics

GreenLine Mobility Solutions Ltd., an Essar venture, has partnered with FMCG major Dabur India Ltd. to deploy LNG-powered trucks across the company’s logistics network as both firms step up efforts to reduce carbon emissions from road freight.

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The collaboration comes as Indian companies increasingly look to decarbonise their supply chains by adopting lower-emission transportation solutions while maintaining operational efficiency.

Under the partnership announced on Wednesday, GreenLine will provide liquefied natural gas (LNG)-powered heavy commercial vehicles for Dabur India’s long-haul logistics operations. The companies said the move is aimed at lowering emissions from freight transportation without compromising on reliability and delivery performance.

Road freight remains one of the largest contributors to transport-related emissions in India, prompting businesses across sectors to explore cleaner fuel alternatives such as LNG and electric vehicles. While LNG-powered trucks still generate emissions, they produce significantly lower carbon emissions than conventional diesel-powered heavy vehicles and also help reduce particulate matter and nitrogen oxide emissions.

The partnership reflects a broader trend among large consumer goods companies to integrate sustainability goals into supply chain operations as environmental, social and governance (ESG) commitments become increasingly important.

Commenting on the development, Charles Devlin D’Costa, Vice President – Sales, GreenLine Mobility Solutions Ltd., said the collaboration demonstrates growing industry interest in cleaner freight mobility.

“We are pleased to partner with Dabur India, one of India’s most respected consumer goods companies, as it adopts greener road transportation solutions. It is encouraging to see more leading Indian companies making low-emission logistics an integral part of their business strategy,” he said.

D’Costa added that every such partnership strengthens the transition towards cleaner freight transportation and supports the development of a more sustainable logistics ecosystem in India.

Samrat Sehgal, Global Director of Supply Chain at Dabur India, said reducing the environmental footprint of the company’s supply chain is a key part of its sustainability roadmap.

“Our partnership with GreenLine enables us to integrate lower-emission transportation into our logistics operations while maintaining efficiency and reliability. We believe collaborations like these will play a key role in building a more sustainable and future-ready supply chain,” he said.

GreenLine is among the country’s largest operators of LNG- and electric-powered heavy commercial vehicles. According to the company, it currently operates more than 1,000 LNG and EV trucks across major freight corridors serving industries including FMCG, steel, cement, mining and chemicals.

The company said its fleet has collectively travelled over 100 million kilometres, helping customers reduce more than 27,000 tonnes of carbon dioxide emissions.

Besides operating green commercial vehicles, GreenLine is also expanding the supporting infrastructure through its subsidiary, Ultra Gas and Energy Ltd., which is developing a nationwide network of LNG refuelling stations to facilitate wider adoption of LNG-powered freight transportation.

Dabur India, one of the country’s largest fast-moving consumer goods companies, has been incorporating sustainability initiatives across its operations. The company, which has a 141-year legacy, said its products reach eight out of every 10 Indian households and its portfolio includes four brands with annual revenues exceeding ₹1,000 crore.

The GreenLine partnership marks another step in Dabur’s efforts to build a lower-carbon and more sustainable supply chain while supporting India’s broader transition towards cleaner logistics.

https://www.businesstoday.in/latest/corporate/story/greenline-dabur-india-lng-trucks-partnership-road-logistics-decarbonisation-544553-2026-07-22

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India signed 8.4 mtpa of long term LNG contracts in 2025: GIIGNL

India was the “most active” buyer for long term contracts of liquefied natural gas (LNG) in the 2025 calendar year, contracting 8.4 million tonnes per annum (mtpa) capacity, said the International Group of Liquefied Natural Gas Importers (GIIGNL).

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GIIGNL’s 2026 annual report pointed out that the last calendar was an exceptionally active year for LNG contracting, with 83 long-term sale purchase agreements (SPAs) signed, nearly double the 47 recorded in 2024, and disclosed volumes reaching 71.6 mtpa across 76 agreements, a roughly 30 per cent increase over the previous year.

It also noted that demand growth, portfolio management, and strategic procurement shaped the buyer landscape in 2025.

“India was the most active end-user buyer, with 8.4 mtpa disclosed across six entities, including Indian Oil Corporation (4.7 mtpa), GAIL (1 mtpa), Gujarat State Petroleum Corporation (1 mtpa), Torrent Power (0.69 mtpa), Bharat Petroleum Corporation (0.5 mtpa), and Hindustan Petroleum Corporation (undisclosed), reflecting a coordinated expansion of long-term import capacity driven by rising domestic gas demand,” the international group of LNG importers said.

GIIGNL said that short-term SPA activity also rose from 7 to 13, while Heads of Agreement (HOA) activity declined from 21 to 12.

This surge reflects the convergence of two structural forces—sustained demand growth across key importing markets, and an ongoing wave of liquefaction projects seeking offtake commitments to reach final investment decision (FID), it added.

West Asia conflict

The GIIGNL report pointed out that attack on Qatar’s Ras Laffan liquefaction terminal and one of the two trains of Pearl Gas-to-Liquid (GTL) plant can lead to a widen market impact.

“Ras Laffan is the backbone of Qatar’s gas export system, and the confirmed LNG capacity loss is already significant. However, the wider market impact could be greater because Pearl GTL is integrated into the same gas and industrial network,” it added.

The key risk is not just damage at Ras Laffan, but also Qatar LNG’s reliance on the Strait of Hormuz, a route for about 20 per cent of global LNG flows coming from Qatar and the UAE.

“Asia received 82 per cent of those volumes, and exposure is especially high in India (59 per cent of LNG supply came from Qatar and UAE in 2025), China (31 per cent), Taiwan (34 per cent) and South Korea (15 per cent), while Europe’s direct supply exposure is much lower at around 7 per cent,” it said.

In other words, any Ras Laffan outage or shipping restriction through Hormuz may hit Asian balances first, even though some European buyers remain contractually exposed.

“Short-term replacement options remain limited: alternative Atlantic and Pacific basin supply can only partly offset missing Qatar cargoes, and many Asian markets are already highly contracted and operationally exposed. The supply consequences are material in all disruption scenarios,” GIIGNL pointed out.

Future flows

In Asia, the report noted that the growth trajectory is considerably stronger. Contracted volumes rise by around 50 mtpa between 2025 and 2030, with China accounting for roughly 40 mtpa of that increase, confirming Asia as the main center of contracted LNG demand over the coming years.

However, the region is nonetheless exposed to sharper declines further out, with contracted volumes falling by around 36 mtpa in 2036, suggesting that Asia’s next procurement cycle may be both larger and more concentrated in time than Europe’s.

In this regard, Japan is broadly stable at around 70 mtpa until 2032, before declining gradually to 40 mtpa by 2039 and dropping by nearly 20 mtpa between 2039 and 2040. On the other hand, China records a marked decline after 2036, losing around 23 mtpa.

“India and South Korea show smaller but earlier reductions, with India losing 8 mtpa in 2028 and South Korea around 3.5 mtpa. Taken together, these patterns suggest that several Asian markets will need to return to the market over the coming years to maintain adequate supply cover,” the report explained.

https://www.thehindubusinessline.com/markets/commodities/india-signed-84-mtpa-of-long-term-lng-contracts-in-2025-giignl/article71248507.ece

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Electric Mobility/ Hydrogen/Bio-Methane

Policy push for EVs casts shadow over flex-fuel journey

Back-to-back government decisions prioritizing electric mobility have cast a shadow over flex-fuel technology, fuelling concerns among automobile and biofuel makers that policy uncertainty could slow investment and wider adoption of the technology.

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On 3 June, top ministers attended the commercial launch of Hero MotoCorp’s flex-fuel motorcycle in Delhi, boosting sentiment for adoption of flex-fuel vehicles that can run on petrol blended with up to 85% ethanol. A day later, India’s largest carmaker Maruti Suzuki also launched its flex-fuel WagonR.

Within three weeks, the Delhi government mandated it would allow only electric two-wheelers from April 2028, with a likely similar call for four-wheelers in future. Soon after, the Centre rolled out its latest draft of fuel efficiency norms, which reduced the incentives for flex-fuel vehicles.

Under its latest proposals on the Corporate Average Fuel Efficiency (CAFE) regulations, the Centre reduced the ‘super credits’ incentive for flex-fuel vehicles compared to the previous draft.

Automakers get super credits or incentives that give cleaner vehicles more weight when their average fleet fuel efficiency is calculated. Per the new proposal, while one electric vehicle (EV) is counted as 3, a flex-fuel vehicle will be counted as 1.1, down from 1.5 in the CAFE draft of September 2025. In April, the Indian Sugar and Bio-Energy Manufacturers Association (Isma) had urged government to retain the earlier norms, as they had ramped up capacity.

The moves come on top of the government’s decision to price E85 petrol—blended with 85% ethanol—only about 20% below that of E20, well short of the 30% discount sought by the automobile industry to make the technology commercially viable.

Queries sent to the ministries of road transport, heavy industries, petroleum, and power on how the government looks to promote flex-fuel vehicles remained unanswered.

The policy changes on flex-fuel technologies under CAFE norms just nine months ahead of its scheduled enforcement in April 2027 can be a drag on the sector, experts said.

“When signals evolve rapidly, or differ between the Centre and states, companies naturally become more wary, hesitant and measured in committing fresh capital,” said Vinay Piparsania, founder at MillenStrat Advisory and Research. “A new vehicle programme is typically committed four to seven years before launch, with $300–500 million already invested in engineering, tooling, localization, supplier development, and manufacturing. Once those commitments are made, changing course is costly and disruptive.”

Hero MotoCorp, Bajaj Auto, TVS and Honda Motorcycle and Scooter India, Maruti Suzuki, Tata Motors PV, Mahindra & Mahindra, Hyundai Motor India and Toyota did not respond to emailed queries on the impact of such policy moves.

An industry executive aware of discussions between the government and industry said that the West Asia war related push to promote clean fuel was not a factor for the new CAFE rules for flex-fuel or even electric vehicles. “The decision to introduce super credits for flex-fuel vehicles was the government’s own decision, which they brought in the September 2025 draft to perhaps promote the technology, but have reduced it in the July draft,” the executive said. “This reduction is unlikely to have a material impact on the mathematical calculation on average fleet emission.”

“The surrounding infrastructure for flex-fuel vehicles is inadequate presently, with a handful of retail outlets,” said Arun Malhotra, an automobile industry veteran. “At this point, the policy signals through CAFE norms, and even through state government policies indicating that government will only support, or not discourage, electric vehicles. Flex-fuel vehicles are in a very nascent stage, and building that ecosystem is not a short-term plan; it will take time,” he said.

ayaan.kartik@livemint.com

For an extended version of this story, go to livemint.com.

https://www.livemint.com/auto-news/indias-flex-fuel-drive-runs-into-policy-headwinds-11784455879674.html

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Centre tightens hydrogen fuel tests amid clean mobility push

As India prepares to expand hydrogen-based mobility, the Centre is tightening the technical framework for testing the quality of hydrogen used in fuel-cell vehicles, two people aware of the matter said.

The Bureau of Indian Standards (BIS), under the ministry of consumer affairs, has notified an updated Indian Standard laying down laboratory methods to measure impurities in hydrogen supplied to Proton Exchange Membrane (PEM) fuel-cell vehicles.

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The move comes as fuel quality faces public scrutiny, with questions being raised over the performance and impact of newer fuels and fuel blends, including E20 petrol.

While the standard is voluntary unless mandated by a regulator, it provides a common technical framework for laboratories, hydrogen producers, vehicle manufacturers and testing agencies as India builds out its hydrogen ecosystem under the National Green Hydrogen Mission.

“The newly notified norms specify analytical methods for measuring impurities in hydrogen supplied to Proton Exchange Membrane fuel-cell vehicles—a type of hydrogen-powered electric vehicle that generates electricity on board by combining hydrogen with oxygen from the air,” said one of the two people cited above.

Unlike conventional internal combustion engines, fuel-cell systems are highly sensitive to fuel quality. Even trace quantities of contaminants such as carbon monoxide, sulphur compounds, ammonia, halogenated compounds and moisture can reduce fuel-cell efficiency and shorten component life.

“The standard prescribes validated laboratory methods to detect and quantify these impurities before the hydrogen is supplied for use,” said the second person.

The standard is designed to ensure that hydrogen supplied to fuel-cell vehicles meets consistent quality benchmarks, said Mohit Garg, senior scientist, chemical department, BIS.

“As the country advances towards cleaner energy systems, hydrogen mobility, and the development of a robust hydrogen value chain, these harmonized standards provide a consistent technical framework for accurate testing, calibration, quality assurance, interoperability, and greater confidence in testing results while facilitating global compatibility,” Garg said in response to Mint’s queries.

https://www.livemint.com/industry/energy/india-tightens-hydrogen-fuel-testing-rules-clean-mobility-push-11784452598679.html

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India advances green aviation with 104 airports powered by renewable energy

India has reached a major milestone in the development of sustainable aviation, with 104 airports now operating on 100 per cent renewable energy. Union Civil Aviation Minister Shri. Kinjarapu Rammohan Naidu announced the achievement, describing it as an important step in the country’s transition to greener airport operations, as reported by IANS, a partner of TV BRICS.

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“One hundred and four Indian airports are now powered by 100 per cent renewable energy, up from zero in 2014. […] New India is walking the talk on sustainability, advancing towards the Net Zero by 2070 target set by Prime Minister Narendra Modi,” he said.

The airports now meet their operational electricity requirements entirely through renewable energy sources, including electricity generated by on-site solar power installations and renewable power supplied under long-term agreements, such as hydropower. The transition forms part of India’s broader efforts to increase the use of clean energy across key infrastructure.

India has steadily expanded renewable energy adoption in the aviation sector in recent years. The shift is expected to reduce indirect carbon emissions by nearly 200,000 tonnes annually.

Another landmark in the sector was achieved by an airport in Kerala State, which became the world’s first fully solar-powered airport in 2015. Since then, it has continued to expand its solar generation capacity and strengthen its environmental initiatives. The latest announcement reflects continued progress towards the national goal of achieving net-zero emissions across all Indian airports by 2030.

https://tvbrics.com/en/news/india-advances-green-aviation-with-104-airports-powered-by-renewable-energy/

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Coal India commissions 200 MW solar capacity at Khavda, Gujarat

Coal India commissioned 200 MW of its 300 MW solar power project at Khavda, Gujarat, on July 15, 2026, following the receipt of a commissioning certificate from the Gujarat Energy Development Agency (GEDA). The remaining 100 MW of the project is pending commissioning.

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Coal India has commissioned 200 MW of its 300 MW solar power project at Khavda, Gujarat, receiving the commissioning certificate from Gujarat Energy Development Agency (GEDA) on July 15, 2026. This development marks a significant step in the company’s renewable energy strategy, utilizing the Khavda region’s established infrastructure for large-scale power generation.

Project Overview

The Khavda Solar Project represents Coal India’s expansion into green energy. The following table summarises the key details of the project:

Commissioning Milestone

With 200 MW now operational, Coal India has brought a substantial portion of the project online. The remaining 100 MW of the total project capacity is yet to be commissioned. The disclosure was made to the exchanges in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

https://scanx.trade/stock-market-news/companies/coal-india-commissions-200-mw-of-300-mw-khavda-solar-project-in-gujarat/45753032

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IIT Kanpur to set up Centre of Excellence for green hydrogen under UP policy

Kanpur: The Indian Institute of Technology (IIT) Kanpur will establish a Centre of Excellence (CoE) for green hydrogen under the Uttar Pradesh Green Hydrogen Policy 2024 to accelerate  research, innovation and the development of a complete green hydrogen ecosystem.

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The proposal for the Centre of Excellence on Innovative and Integrated Ecosystem for Green Hydrogen (ECOGEN) has been approved by the authorised committee constituted by the Uttar Pradesh government and sanctioned by the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA), The Economic Times reported. The Centre of Excellence will undertake research across the entire green hydrogen value chain, covering production, storage, transportation, utilisation and system integration. The initiative is aimed at supporting Uttar Pradesh’s goal of achieving net-zero emissions through the adoption of green hydrogen technologies.

According to IIT Kanpur, the centre will focus on developing innovative technologies to reduce the

cost of producing green hydrogen while improving its storage and utilisation for industrial, transport and energy applications.

The CoE is also expected to promote collaboration among academia, industry and government agencies to accelerate the commercialisation of green hydrogen technologies and strengthen Uttar Pradesh’s clean energy ecosystem. The project forms part of the state’s Green Hydrogen Policy 2024, which seeks to position Uttar

Pradesh as a major hub for green hydrogen production and related industries while supporting India’s broader clean energy and decarbonisation goals.

https://bioenergytimes.com/iit-kanpur-to-set-up-centre-of-excellence-for-green-hydrogen-under-up-policy/

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PM Surya Ghar 2.0 to link subsidies to generation, battery storage

The government is preparing a major redesign of the PM Surya Ghar: Muft Bijli Yojana, with the next phase likely to link public support more closely to actual electricity generation, battery storage, lifecycle maintenance and service delivery, rather than rooftop solar installation alone.

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The proposed framework may also introduce generation guarantees, virtual metering, AI-based quality checks and differentiated financial assistance based on household income, location, consumer category and the services provided by rooftop solar systems to the electricity grid.

The PM Surya Ghar scheme currently provides central financial assistance for residential rooftop solar installations, with subsidies linked largely to installed capacity rather than actual electricity generation or the asset’s performance over its operational life.

A consolidated policy paper is expected within 10-15 days, followed by focused consultations over the subsequent 20 days on batteries, hybrid inverters, equipment interoperability, DISCOM readiness and regulatory changes, FE has learnt. The discussions follow a meeting chaired by a joint secretary in the Ministry of New and Renewable Energy (MNRE).

“The next phase should not be limited to continuation of the existing subsidy structure,” a senior MNRE official said, calling for a combination of regulation, market mechanisms, technology standards and public support to deepen rooftop solar adoption while gradually creating a self-sustaining market.

A split financial-assistance structure is under consideration. One component could support upfront capital expenditure, while another may be linked to electricity generation, operations and maintenance, battery storage or service delivery over the life of the asset.

According to the ofiicials, consumer adoption is likely to remain strong with a payback period of five to six years, but could weaken once it exceeds seven years. Higher-income households may continue adopting rooftop solar with lower levels of support, while lower-income consumers could require stronger or differently structured financial assistance.

Queries sent to ministry of new and renewable energy were remained unanswered till the press time.

States that provide free or heavily subsidised electricity may also consider converting recurring power subsidies into one-time solarisation support, potentially lowering their long-term subsidy burden.

Battery storage is expected to become central to the redesigned scheme as rising rooftop solar capacity increases daytime power exports and grid management challenges. MNRE will evaluate household, transformer, distribution and utility-scale storage models by comparing capital costs, grid benefits, avoided infrastructure expenditure, consumer value and operational control.

“India’s rooftop solar story is entering a new phase. The question is no longer how many panels we install, but how effectively we use the energy they generate. Storage is the missing link that can align consumer savings with grid requirements and make distributed solar more valuable for the entire electricity system,” said Ashish K Sharma, fellow, TERI.

Inputs presented at the meeting proposed two complementary storage pathways — behind-the-meter batteries installed at consumer premises and battery systems deployed downstream in the distribution network. Such systems could absorb excess daytime power exports, provide household backup, reduce reverse power flow, support peak-demand management and improve utilisation of grid assets.

Consumer-side storage could be prioritised for high-solar or network-constrained feeders, while substation-level battery energy storage systems could be deployed where grid conditions warrant them. The proposed model aims to lower electricity bills and improve power backup for consumers while enhancing DISCOMs’ hosting capacity, voltage support and utilisation of network assets.

Benefit-sharing mechanisms are also under consideration to make household batteries more affordable. Under the proposal, a portion of the savings realised by DISCOMs through power purchase optimisation and avoided network expenditure could be shared with participating consumers.

The scheme may also be expanded to cover apartment residents and households without suitable rooftops through virtual and group net metering, balcony solar, facade-mounted systems and building-integrated photovoltaics. Community solar plants of around 100 kW could also be explored for low-income consumers seeking systems of 1-2 kW.

Quality and long-term performance will receive greater attention. The chair said the programme “should shift from an installation-centric model towards an asset-performance model”. Proposals include generation guarantees, mandatory service periods, insurance against equipment failure and generation shortfall, and a digital solar passport recording output, service history and warranty status.

MNRE also plans a common data protocol covering more than 100 inverter and equipment manufacturers. Daily generation data could support monitoring, DISCOM planning, maintenance alerts and warranty enforcement, while AI may verify installations, identify components and detect defects.

https://www.financialexpress.com/business/industry/pm-surya-ghar-2-0-to-link-subsidies-to-generation-battery-storage/4303189/

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India-Australia Rooftop Solar Training Academy welcomes first cohort in Gandhinagar

The first cohort of technicians has commenced training at the India-Australia Rooftop Solar Training Academy at Pandit Deendayal Energy University (PDEU) in Gandhinagar, marking a key milestone in the India-Australia Renewable Energy Partnership announced by Prime Ministers Narendra Modi and Anthony Albanese in November 2024.

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According to a joint press release issued by the Australian Government and ReNew on Tuesday, the Academy is supported by Australia’s Department of Climate Change, Energy, Environment and Water and ReNew, India’s leading renewable energy company. It aims to build a skilled and inclusive workforce to support India’s rapidly expanding rooftop solar sector. 

Operating through a hub-and-spoke model, the Academy will train 2,000 rooftop solar technicians and helpers during its first two years, with a strong focus on increasing the participation of women and youth in the clean energy workforce.

The initiative draws on Australia’s expertise in rooftop solar deployment and vocational training and is intended to support India’s flagship PM Surya Ghar: Muft Bijli Yojana by strengthening the skilled workforce needed to accelerate rooftop solar adoption across the country.

ReNew will provide industry expertise, curriculum inputs, project management support and workforce to ensure the training remains aligned with industry requirements. The Australian Government is supporting the development of a rooftop solar training curriculum aligned with Australian standards, which will be piloted through the Academy.

The inaugural programme was attended by representatives from the Australian Government, ReNew, Pandit Deendayal Energy University and the Skills Council for Green Jobs, the project’s implementation partner. PDEU will serve as the Academy’s hub institution, delivering training in partnership with the Skills Council for Green Jobs.

Australian High Commissioner to India Philip Green said, “Our Prime Ministers agreed in 2024 that we should jointly deliver a new solar rooftop academy. Today we are fulfilling their decision, and delivering on that promise. I underline Australia’s seriousness in committing to more in the Australia-India corridor, as we did in the context of PM Modi’s recent visit to Australia, and delivering on those commitments. I also take this opportunity to wish the first cohort of trainees well in their studies, and for their futures.” 

Vaishali Nigam Sinha, Co-founder and Chairperson, Sustainability, ReNew, said, “India’s clean energy transition will be driven not only by technology and investment, but also by a skilled workforce. The India-Australia Rooftop Solar Training Academy is an important step towards building that talent pipeline. ReNew is proud to support this initiative, which will equip young people and women with industry-relevant skills for the growing rooftop solar sector while contributing to India’s PM Surya Ghar: Muft Bijli Yojana and the broader India-Australia renewable energy partnership.”

Professor Sundar Manoharan, Director General of Pandit Deendayal Energy University, said, “In advocating the energy transition towards net-zero compliance, PDEU has traversed a remarkable journey–from establishing a 1 MW solar power plant to setting up a 45 MW Solar PV manufacturing line, integrating rooftop solar energy storage solutions, and launching the Rooftop Solar Training Academy. This milestone reflects PDEU’s unwavering commitment to advancing the Hon’ble Prime Minister’s shared vision of accelerating clean energy adoption, building a skilled green workforce, and fostering sustainable development.”

The press release noted that during Prime Minister Narendra Modi’s visit to Australia on July 9, the two leaders welcomed progress under the India-Australia Renewable Energy Partnership, including the establishment and operationalisation of the India-Australia Rooftop Solar Training Academy.

It added that the Academy is a practical demonstration of expanding clean energy cooperation between India and Australia and supports both countries’ commitment to accelerating the energy transition while creating new opportunities for workers and communities.

https://energy.economictimes.indiatimes.com/news/renewable/india-australia-rooftop-solar-training-academy-welcomes-first-cohort-in-gandhinagar/132680993

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Green hydrogen hub in Andhra Pradesh offers mega opportunity: NGEL CEO

The proposed ₹1.85 lakh crore green hydrogen hub at Pudimadaka, near Visakhapatnam in Andhra Pradesh, will create significant opportunities for the industry, Sarit Maheshwari, chief executive officer (CEO) of NTPC Green Energy (NGEL), said at an event.

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The project, being developed jointly by NGEL, the renewable energy arm of NTPC, and the New & Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP), will have nearly 20 gigawatts (GW) of renewable energy capacity and produce green ammonia, green methanol, green urea and sustainable aviation fuel.

 Maheshwari said the next phase of growth would be driven by four interconnected pillars: renewable energy at scale, energy storage and grid flexibility, digital transformation of power systems, and the creation of new demand ecosystems.

Each additional gigawatt of capacity creates opportunities across the electrical manufacturing ecosystem, he said, adding that there will be demand for transformers, switchgear, transmission towers, cables and conductors, protection and automation systems, power electronics, communication systems, supervisory control and data acquisition (SCADA) infrastructure, and grid equipment.

 As renewable energy penetration rises, energy storage will play a critical role in providing grid stability, frequency regulation, peak demand support, ancillary services and improved power quality, he added.

 Speaking at the same event, Central Electricity Authority (CEA) Chairman Ghanshyam Prasad said a committee had been constituted to examine the issue of grid oscillations.

 “The last event that happened in Khavda Renewable Energy Park was alarming as we lost around 9,000 MW at a single location. That region will have 40,000-45,000 MW. If a similar event occurs then, the grid will face a very serious challenge,” he said.

 “Therefore, I request all stakeholders, especially the original equipment manufacturers (OEMs), to actively deliberate within the committee and come up with practical solutions,” he added.

 Prasad also spoke about the need to improve power supply quality and increase the indigenisation of power equipment.

 “In the last one to two years, we saw that lead times kept increasing, which was a matter of concern for developers, and we had to slightly slow the pace of development,” he said.

 “We should be able to reduce lead times substantially because the renewable energy industry needs to commission projects quickly,” he added.

https://www.business-standard.com/industry/news/green-hydrogen-hub-in-andhra-pradesh-offers-mega-opportunity-ngel-ceo-126073001629_1.html

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INTERNATIONAL NEWS

Natural Gas / Transnational Pipelines/ Others

Khalda Petroleum Starts New Egypt Gas Well at 40 mmcf/d in Western Desert

Khalda Petroleum has officially commenced production from its newly discovered Watada deep natural gas exploration well in Egypt’s Western Desert, marking another milestone in the country’s efforts to strengthen domestic energy production. The well has entered production with an initial output of 40 million cubic feet of natural gas per day (mmcf/d), contributing additional supplies to Egypt’s growing natural gas network.

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According to a statement released by the Egyptian Cabinet, natural gas production from the Watada well began on June 21. The company is now completing the final stages of infrastructure integration, with the well expected to be fully connected to Egypt’s national natural gas grid before the end of July. This rapid transition from discovery to production reflects the government’s focus on accelerating the commercialization of new hydrocarbon discoveries.

The Watada exploration well was drilled to a depth of approximately 15,000 feet in the Western Desert. During drilling operations, electrical logging identified promising gas-bearing formations, indicating the presence of commercially viable natural gas reserves. Subsequent production testing confirmed the well’s capability to deliver around 40 mmcf/d, validating the discovery’s economic potential.

To facilitate the swift start of production, Khalda Petroleum invested approximately $2.3 million in constructing a dedicated 10-kilometer production pipeline. The new pipeline connects the Watada well directly to the company’s existing processing and transportation infrastructure, allowing produced gas to be transported efficiently for distribution through the national grid. This infrastructure investment significantly reduced the time required to bring the field into commercial operation.

The successful development of the Watada discovery aligns closely with the Egyptian Ministry of Petroleum and Mineral Resources’ broader strategy of increasing domestic oil and gas production while reducing reliance on imported energy supplies. By accelerating the development of newly discovered reserves, the ministry aims to improve energy security, support industrial growth, and maximize the value of Egypt’s hydrocarbon resources.

Khalda Petroleum, a joint venture between the Egyptian General Petroleum Corporation (EGPC) and the US-based Apache Corporation, continues to play a leading role in hydrocarbon exploration and production across Egypt’s Western Desert. The latest gas discovery follows another operational achievement by the company, which increased crude oil and condensate production in the region by more than 10,000 barrels per day during June 2026. Together, these developments reinforce Khalda Petroleum’s contribution to expanding Egypt’s hydrocarbon output and demonstrate the continued exploration potential of the Western Desert as a strategic energy-producing region.

Impact on Product and ChemAnalyst Commodity Prices

The Watada gas discovery will enhance Egypt’s domestic natural gas availability, improving feedstock reliability for gas-intensive industries such as ammonia, methanol, hydrogen, power generation, and petrochemicals. Increased local gas production may lower supply risks and reduce dependence on LNG imports, supporting stable industrial operations. For chemical commodities tracked by ChemAnalyst, the development is expected to exert mild bearish pressure on natural gas-dependent products within Egypt due to improved feedstock availability. While the impact on global prices will likely remain limited because of the project’s moderate production scale, regional pricing for ammonia, methanol, and selected petrochemical intermediates could become more stable over the medium term.

https://www.chemanalyst.com/NewsAndDeals/NewsDetails/khalda-petroleum-starts-new-egypt-gas-well-at-40-mmcf-43474

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Perenco Plans Domestic Use for Previously Exported Gas in Cameroon

As the Floating Liquefied Natural Gas (FLNG) vessel  Hilli Episeyo officially departs Cameroon for its 20-year charter in Argentina in July 2026, the country’s maritime LNG export operations will temporarily shut down, but  rather than shutting down the offshore wells, Perenco and the state-owned Société Nationale des Hydrocarbures (SNH) are redirecting and repurposing the gas from the Sanaga South and Ebomé fields.

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Unprocessed natural gas will bypass the ocean mooring and be piped entirely to the Bipaga Gas Processing Centre on the mainland.

In the event the processing centre will increase the extraction of Liquefied Petroleum Gas (LPG/butane), heavily targeting the state-subsidized domestic cooking gas market to reduce Cameroon’s reliance on fuel imports.

The Bipaga Gas Processing Centre came on stream in 2024,  supplying natural gas through a dedicated .27-kilometre pipeline to the Keda Cameroon Ceramics Ltd manufacturing plant. The plant consumes up to 6Million standard cubic feet per day  (MMscf/d) under a 20-year gas sales contract signed between Perenco and SNH.

https://africaoilgasreport.com/2026/07/gas-monetization/perenco-plans-domestic-use-for-previously-exported-gas-in-cameroon

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Maryland Seeks Tougher Review of Gas Pipeline Replacement Projects

(P&GJ) — Maryland’s Office of People’s Counsel (OPC) has appealed a Maryland Public Service Commission (PSC) decision allowing Washington Gas to move forward with pipeline replacement projects, arguing the utility should first demonstrate compliance with the state’s 2025 Next Generation Energy Act (NGEA).

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The appeal, filed in the Circuit Court for Baltimore City, challenges the PSC’s approval of Washington Gas’ 2026 Strategic Infrastructure Development and Enhancement (STRIDE) project list and related cost recovery without first determining whether the projects satisfy requirements that took effect June 1, 2025.

The NGEA amended Maryland’s STRIDE law by requiring utilities to demonstrate that pipeline replacement projects provide customer benefits, are cost-effective and consider alternatives before qualifying for expedited cost recovery.

“The NGEA sought to ensure that utilities only get the benefit of expedited cost recovery of ratepayer-backed gas infrastructure spending when they demonstrate it will benefit customers and is cost effective after considering alternatives,” Maryland People’s Counsel David S. Lapp said. “But a year later, Washington Gas is proceeding on a business-as-usual basis, and the PSC has yet to require the utility to modify any of its plans or projects.”

The appeal stems from the PSC’s Feb. 26, 2026, order approving Washington Gas’ 2026 STRIDE projects and associated surcharge while postponing a review of the projects’ compliance with the NGEA until completion of an ongoing rulemaking. OPC sought rehearing of that decision, but the commission denied the request on June 9, prompting the court appeal.

Under Maryland’s STRIDE program, gas utilities can recover infrastructure replacement costs through accelerated surcharges before those expenditures undergo a prudency review. OPC argues that mechanism has contributed to higher customer bills.

According to OPC, Columbia Gas’ distribution rates have increased from about 30 cents per therm before STRIDE to $1.24 per therm, while Baltimore Gas and Electric’s gas rates have roughly tripled since the program was enacted in 2013.

The consumer advocate said lawmakers revised the STRIDE statute in 2025 to require utilities to prioritize replacing the highest-risk infrastructure and evaluate lower-cost alternatives before undertaking pipeline replacement projects.

“In passing STRIDE reform, the General Assembly took an important step to curb gas infrastructure replacement work that is driving up utility rates and contributing to an energy affordability crisis,” Lapp said. “But so far the reforms have had no meaningful impact. The PSC should move expeditiously to enforce compliance with the law.”

OPC also argued that continued investment in gas distribution infrastructure could leave fewer customers responsible for paying system costs over time as natural gas demand declines because of electrification, energy efficiency improvements and state climate policies.

The PSC is continuing a rulemaking to implement the NGEA, a process OPC said is expected to extend through at least the end of 2026. Meanwhile, the appeal asks the court to require the commission to apply the law before approving additional STRIDE projects.

https://pgjonline.com/news/2026/july/maryland-seeks-tougher-review-of-gas-pipeline-replacement-projects

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SEWA completes Dh35 million natural gas project in Dibba Al Hisn

Sharjah: The Sharjah Electricity, Water and Gas Authority (SEWA) has completed a project to connect natural gas services to Dibba Al Hisn at a total cost of Dh35 million. The project was implemented in line with the vision and directives of His Highness Sheikh Dr Sultan bin Mohammed Al Qasimi, Supreme Council Member and Ruler of Sharjah, to develop an integrated natural gas supply project for Dibba Al Hisn in accordance with the highest standards.

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The natural gas connection project in Dibba Al Hisn was divided into three main projects, which were carried out simultaneously. These included the construction of a natural gas pumping station operating through the virtual pipeline system, as well as the development of a 46-kilometre natural gas network covering Al Hay Al Shamali, Al Hay Al Gharbi, Al Hisn Island and Al Doub neighbourhoods.

The project also included completing internal connections for around 200 residential units and installing smart meters to ensure direct access to natural gas services for subscribers while improving consumption management and measurement efficiency.

Engineer Ibrahim Al Balghouni, Director of the Natural Gas Department at SEWA, said the project forms part of the authority’s strategic plan to provide clean and sustainable energy across all cities and areas of the Emirate of Sharjah.

He added that the project contributes to achieving sustainable development in Dibba Al Hisn and was implemented using the latest technologies and specifications, along with advanced control and monitoring systems to ensure the safety and continuous flow of gas around the clock.

Al Balghouni noted that natural gas provides a safe, cost-effective and environmentally friendly alternative to traditional gas cylinders. It also helps reduce carbon emissions and supports environmental sustainability.

https://gulfnews.com/business/energy/sewa-completes-natural-gas-project-in-dibba-al-hisn-1.500612317

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Oman’s natural gas production tops 24.1bn cubic metres

Muscat: The Sultanate of Oman’s production of natural gas – both local production and imports – witnessed an increase of 6.5 percent reaching 24.17 billion cubic metres until the end of May 2026 compared to 22.71 billion cubic metres during the same period in 2025.

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Data released by the National Centre for Statistics and Information (NCSI) showed that associated gas production increased by 3.8 percent reached 5.37 billion cubic metres until the end of May 2026, compared to 5.17 billion cubic metres for the same period of the previous year.

Non-associated gas production (including imports) also recorded growth of 7.2 percent, reaching 18.80 billion cubic metres by the end of May 2026, compared to 17.53 billion cubic metres for the same period in 2025.

Natural gas consumption in industrial projects increased by 8.2 percent to reach 12.39 billion cubic metres by the end of May 2026, compared to 11.45 billion cubic metres for the same period in 2025.

Gas consumption in power generation plants also increased by 13.3 percent until the end of May 2026, reaching 6.58 billion cubic metres, compared to 5.81 billion cubic metres for the same period in 2025.
In contrast, gas consumption in oil fields (including losses, metre differences and shrinkage factor) decreased by 3.9 percent, reaching 5.12 billion cubic metres until the end of May 2026, compared to 5.32 billion cubic metres in the same period of 2025.

Gas consumption in industrial areas (including industrial areas and consumption of the Oman LNG Company) also declined by 30.3 percent to record 79.4 million cubic metres by the end of May 2026, compared to 113.8 million cubic metres for the same period in 2025.

https://timesofoman.com/article/174547-omans-natural-gas-production-tops-241bn-cubic-metres

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3 new Sylhet wells to add 3cr cubic feet of gas daily

State-owned Sylhet Gas Fields Limited (SGFL) has taken an initiative to drill three new gas and oil wells as part of efforts to ease the country’s gas shortage and reduce dependence on costly imports of liquefied natural gas (LNG).

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The wells – Rashidpur-13, Dupitila-1 and Kailashtila-9 – are expected to add 3 crore cubic feet of gas per day to the national grid once drilling is completed, officials said.

At present, SGFL supplies around 14.20 crore cubic feet of gas daily to the national grid from its 17 functioning wells.

SGFL Managing Director Engr Md Faruque Hossain said, “SGFL is currently supplying 14.2 crore cubic feet of gas to the national grid every day. Once drilling of the three wells is completed, an additional 3 crore cubic feet of gas can be added to the grid,” he said.

Energy experts stressed the need to intensify domestic gas and oil exploration rather than relying heavily on LNG imports, which entail substantial foreign currency expenditure each year.

They said Bangladesh has significant untapped hydrocarbon potential both onshore and offshore, and called for expanding exploration activities through faster coordination with local and international companies.

Prof Dr Muhammad Farhad Howladar of the Department of Petroleum and Mining Engineering at Shahjalal University of Science and Technology said accelerating exploration activities is essential to ensuring the country’s long-term energy security.

Established under Petrobangla, SGFL discovered Bangladesh’s first natural gas field in 1955.

Apart from natural gas, the company’s production currently meets around 30-35 per cent of the country’s petrol demand, 12-15 per cent of octane demand, about 9 per cent of diesel demand and nearly 2 per cent of kerosene demand.

Source: UNB

https://www.jagonews24.com/en/national/news/94428

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Nigeria: 13 West African nations join Nigeria-Morocco gas corridor

The Nigeria–Morocco Gas Pipeline has received a major boost after 13 West African nations approved participation in the cross-border energy corridor. The ambitious project aims to strengthen regional energy security, expand natural gas access across West Africa and create a direct export route to Europe through Morocco.

PowerPlay AI Plans 400-MW Data Center Powered by West Texas Gas Infrastructure

(P&GJ) — PowerPlay AI plans to develop a 400-MW behind-the-meter AI data center in the greater Abilene area of West Texas, advancing natural gas service agreements as it works toward a targeted 2028 startup.

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The project will be developed through a joint venture with a Nasdaq-listed neocloud company. According to the company, site feasibility work, infrastructure assessments and land acquisition have been completed, allowing the project to move into the execution phase.

PowerPlay AI said it is negotiating natural gas service agreements and expects to select an independent power producer after completing its request-for-proposal process.

The development will rely on existing natural gas and fiber infrastructure and is located near several AI data center campuses that are operating, under construction or planned in the Abilene region.

The company said the project is designed to deliver 400 MW of behind-the-meter power beginning in 2028.

Luke Velterop of PowerPlay AI said access to reliable power has become one of the industry’s biggest challenges as AI infrastructure expands.

“Demand is accelerating faster than the grid can respond, interconnection queues now stretch into the 2030s, and competition for sites that can deliver scalable power at speed has never been greater.”

Velterop said the project’s location and existing infrastructure are intended to accelerate development.

“PowerPlay AI is advancing a strategically positioned development where pipelines, policy and people converge to drive rapid execution.”

Additional project details, including the identity of the joint venture partner and the selected independent power producer, have not yet been disclosed.

https://pgjonline.com/news/2026/july/powerplay-ai-plans-400-mw-data-center-powered-by-west-texas-gas-infrastructure

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6,900-kilometer gas pipeline takes step forward as West African States seal the deal

Member states of the Economic Community of West African States (ECOWAS) union have signed an intergovernmental agreement (IGA) for a pipeline that would span nearly 6,900 kilometers along the West African Atlantic coast, connecting Nigerian gas fields to Morocco.

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Jointly led by Nigerian National Petroleum Company Limited (NNPC) and Morocco’s Office National des Hydrocarbures et des Mines (ONHYM), the African Atlantic Gas Pipeline Project (AAGP) will traverse thirteen coastal countries, with interconnections serving landlocked Sahel nations.

Linked to the Maghreb-Europe Gas Pipeline, the pipeline will create a new energy corridor with an annual capacity of 30 billion cubic meters (bcm), including up to 15 bcm for supply to Morocco and European markets.

With an estimated investment value of $25 billion, the link will once completed rank among the world’s longest pipelines.

In a separate announcement, Sierra Leone reported that it had signed the agreement during the 69th Ordinary Session of the Authority of ECOWAS Heads of State and Government, hosted in Lungi, under the chairmanship of President Julius Maada Bio.

 “For generations, the Atlantic has carried Africa’s wealth away from our shores. With this Agreement, we turn the tide. This pipeline will carry energy, opportunity and prosperity along our coastline, from West African soil to West African homes and industries. “Sierra Leone is proud that this defining chapter in Africa’s energy future has been written here, on our soil, in a spirit of unity that reflects the very best of what ECOWAS can achieve together,” Bio said.

The agreement is a result of four years of diplomatic engagement, technical cooperation and strategic planning. The Petroleum Directorate of Sierra Leone (PDSL) signed a Memorandum of Understanding (MoU) in 2022 formalizing the country’s commitment to the initiative. Since then, the Petroleum Directorate has represented Sierra Leone throughout successive ministerial and technical meetings, participated in negotiations on the project’s legal and institutional framework, coordinated national technical inputs, representing the country’s interests.

 “This Agreement is about far more than the development of a gas pipeline. It is about regional integration, shared prosperity and energy security. It is also about creating new opportunities for industrialisation, employment and sustainable economic growth across West Africa,” said Director General of the Petroleum Directorate, Foday B.L. Mansaray. “Sierra Leone is proud to have contributed to this process from its inception in 2022 and looks forward to working with our regional partners as implementation progresses.”

According to PDSL, for Sierra Leone, the pipeline offers significant potential benefits, including access to affordable natural gas for power generation and gas-to-power development, support for industrial zones and manufacturing; reduced dependence on imported refined fuels, new employment and skills development opportunities in construction, operations, and associated services, and potential transit-related revenues.

The project is said to align with the government’s agenda to diversify the country’s energy sources, expand access to reliable power and accelerate industrial growth under the Medium-Term National Development Plan 2024–2030. Its implementation will proceed through the necessary technical, financial, legal and regulatory processes, in accordance with the applicable requirements of the participating states.

A subsequent ceremony will complete the intergovernmental framework with signatures by Morocco and Mauritania.

As the project advances, participating states are expected to establish a high authority for the pipeline, bringing together ministerial representatives from each participating country, with a dedicated project company to lead the execution, financing and construction phases.

https://www.offshore-energy.biz/6900-kilometer-gas-pipeline-takes-step-forward-as-west-african-states-seal-the-deal/

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West African leaders sign $25 billion Nigeria-Morocco gas pipeline agreement

Once completed, it will have an annual capacity of 30 billion cubic meters of natural gas, with about half of that designated for export to Europe via an existing connection to Spain. West African leaders signed the Intergovernmental Agreement for the $25 billion Nigeria-Morocco Atlantic Gas Pipeline during the Economic Community of West African States (ECOWAS) summit in Freetown, Sierra Leone, establishing the legal and regulatory framework needed to advance one of Africa’s largest cross-border energy projects.

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The approximately 6,000-kilometer pipeline will run along the Atlantic coast through 13 countries, transporting natural gas from Nigeria to Morocco.

From there, it will connect to the Maghreb-Europe gas pipeline network to supply European markets while also meeting domestic energy needs across the West African subregion.

The project, jointly led by the Nigerian National Petroleum Company and Morocco’s Office National des Hydrocarbures et des Mines, is expected to begin construction in 2028.

Once completed, it will have an annual capacity of 30 billion cubic meters of natural gas, with about half of that designated for export to Europe via an existing connection to Spain.

The initiative will establish a new economic development corridor

The agreement clears the way for the next phase of development, including the creation of the project company, which will be headquartered in Casablanca, Morocco, and oversee the pipeline’s development and operations.

A separate governance body, known as the pipeline higher authority, will be based in Abuja, Nigeria, where it will coordinate the project’s immediate priorities, including attracting international investors and completing the work required before a final investment decision.

Project officials said the initiative is intended to establish a new economic development corridor linking West Africa, the Sahel region, Morocco, and Europe.

It also aims to strengthen regional energy security, expand access to electricity, support industrialization, and deepen the integration of African energy markets by connecting West Africa’s natural gas resources with regional and international commercial hubs.

https://www.jpost.com/business-and-innovation/article-903228

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New Mexico Rejects Natural Gas Pipeline Applications Again

Pipeline Applications Rejected Again: New Mexico regulators have rejected Energy Transfer LP’s natural gas pipeline applications for the second time, citing that the project is not in the state’s best interests, which threatens delays for Oracle’s planned Project Jupiter data center.

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Significant Project Impact: The Jupiter data center is expected to rely on up to 2.5 gigawatts of gas-powered fuel cells, but the rejection of the pipeline could hinder timely progress, increasing costs and affecting investor confidence.

Environmental and Water Resource Concerns: New Mexico’s Commissioner of Public Lands highlighted that the project would consume significant water in an arid region and likely exacerbate climate change, despite benefiting project developers and investors, while generating minimal revenue for the state.

Legislative Developments Raise Concerns: New Mexico lawmakers are considering a statewide moratorium on large-scale data centers, similar to New York’s recent actions, which could further impact Oracle’s project timeline and add uncertainty.

https://intellectia.ai/news/stock/new-mexico-rejects-natural-gas-pipeline-applications-again

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Natural Gas / LNG Utilization / Bio-LNG

Shell takes FID on LNG regasification terminal in the Bahamas

As part of the investment decision, Shell acquired a 40% interest in New Providence Gas Ltd (NPG), a joint venture with Sun Oil Holdings (Sun Oil), a subsidiary of FOCOL Holdings Ltd. NPG will construct, own, and operate a new small scale LNG regasification terminal at Clifton Pier, enabling the supply of natural gas for power generation on New Providence, the most populous island in the Bahamas.

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The investment supports the modernisation of the Bahamas’ energy system and providing a lower emissions alternative to existing fuel oil and diesel-based power generation and seeking to enhance reliability.

Shell will be the LNG supplier for this project and will leverage its US LNG portfolio to provide a secure and reliable fuel supply. Shell’s expertise in small scale LNG operations and LNG bunkering, combined with a growing regional bunkering network, was key to designing a viable LNG solution for the Bahamas.

“This investment marks an important milestone for the Bahamas and its transition to a lower-emissions energy system,” said Tom Summers, Executive Vice President, Shell LNG Marketing & Trading. “It also reinforces Shell’s focus on growing its integrated gas and LNG business by delivering competitive, scalable LNG solutions in emerging markets, in partnership with local stakeholders.”

The project aligns with the government of the Bahamas’ ‘New Energy Era’ policy framework, which is focused on transitioning the country to a more modern, affordable, reliable, and sustainable energy system. The government is advancing a phased approach to energy sector reform, enabling the gradual conversion of existing power generation to natural gas, in line with national demand.

Currently, most of the electricity generation in The Bahamas relies on imported diesel and fuel oil. This development will enable the country to diversify its energy mix and support a more flexible and resilient power system.

https://www.hydrocarbonengineering.com/gas-processing/17072026/shell-takes-fid-on-lng-regasification-terminal-in-the-bahamas/amp/

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Egypt Seeks Multi-Year LNG Supply Deals as Gas Output Declines

(Reuters) — Egypt is in talks with energy majors including Shell, TotalEnergies and BP to buy 15 to 18 cargoes of liquefied natural gas per month for at least three years, three trading and industry sources familiar with the matter told Reuters.

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The talks come as Egypt’s domestic production struggles to keep pace with rising demand and as global LNG markets remain tight during the Iran conflict, which has curtailed shipping through the Strait of Hormuz and increased competition among buyers seeking to secure supplies.

Two of the sources said talks are ongoing with companies including Shell, TotalEnergies, BP and commodities trader Hartree Partners.

There is “a strong will to work with Americans”, a third source said.

The duration of the deals could be three to five years, but they are yet to be finalized, the sources added.

Egypt’s petroleum ministry, Shell, TotalEnergies and BP did not immediately respond to a Reuters request for comment. Hartree Partners declined to comment.

Cost of Egyptian Natural Gas Imports Balloons

While Egypt’s economy has remained broadly stable despite the U.S.-Israeli war with Iran, energy imports have ballooned.

Egypt’s natural gas import bill had nearly tripled, rising from about $560 ​million before the conflict to roughly $1.65 billion for the same volumes in March.

The new import deals could cost the most populous Arab country between $8 billion and $11 billion annually, based on Reuters calculations of recent deals priced at a premium of about $1.5 above TTF, the European gas price benchmark.

This would be an additional challenge for the government, which is already grappling with high debt that eats up the majority of its budget, and a national currency that is barely holding since the regional conflict began.

Every dollar spent on LNG and fuel imports is money no longer available for budget spending, investment or reserves accumulation.

“Egypt’s ongoing negotiations for medium-term LNG supply, alongside the expansion of existing and planned pipeline gas agreements, reflect efforts to reduce exposure to volatile spot market procurement amid continued geopolitical uncertainty,” said Aly Blakeway, head of Atlantic LNG at S&P Global Energy.

That uncertainty includes the Russia-Ukraine conflict and tensions involving the U.S. and Iran, Blakeway added.

Egypt’s Gas Production Declining

Egypt imported a total of 985 billion cubic feet of gas between July 2025 and June 2026, including from Israel and other LNG cargoes.

Its imports are estimated to reach 1,081 billion cubic feet between July 2026 and June 2027, according to official documents seen by Reuters.

The higher imports reflect a continued decline in natural gas production, despite repeated pledges and clearing foreign companies’ arrears.

Monthly production averaged under 4.4 billion cubic feet per day in fiscal year 2025-26, and is expected to dwindle further to 4.2 billion cubic feet per day in the current fiscal year.

https://pgjonline.com/news/2026/july/egypt-seeks-multi-year-lng-supply-deals-as-gas-output-declines

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Why Integrated Modular Design Is the Future of Mid-Scale LNG

In the global energy conversation, the debate often centers on which sources can help meet rising demand. For liquefied natural gas (LNG), however, the question is increasingly tied to execution: how quickly, and with what degree of certainty, can projects be brought online?

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Energy security depends not only on the availability of resources, but also on the ability to translate those resources into operating infrastructure with greater predictability across development, construction and long-term operations.

That pressure is real in a market that continues to expand. According to the IEA, global LNG supply returned to double-digit growth in the second half of 2025 and is expected to accelerate again in 2026, while global natural gas demand is on track to reach a new all-time high[1]. The 2025 World LNG Report adds that global LNG trade grew by 2.4% in 2024, reaching 411.24 million tons[2].

This environment offers an opportunity to take a broader look at how different LNG project models can support market needs. Very large-scale LNG projects remain essential to global supply growth and continue to play a critical role in meeting long-term energy demand. 

Mid-scale projects can complement that landscape by giving developers another path to add capacity in phases, respond to specific market opportunities and manage execution complexity in a more targeted way.

For years, the LNG conversation was dominated by mega developments. These projects continue to be important, particularly where scale, long-term offtake and infrastructure conditions support large investments. Alongside such projects, intermediate-capacity plants may offer additional flexibility in markets where phased development, speed to market and manageable capital exposure are important considerations.

The potential benefit of mid-scale projects can be diluted if they are developed using traditional delivery models, with too many interfaces, disconnected suppliers and decisions that are chained together one after another.

On paper, a project may appear sound. In practice, it can become constrained by a series of complexities that can be difficult to identify early enough. Early design decisions shape construction, commissioning and long-term operation.

Economies of scale are well established — larger capacity projects tend to achieve lower costs per ton, supported by scale efficiencies and mature liquefaction technologies. Faster delivery, labor constraints and appetite for lower site-construction risk are leading to greater use of pre-engineered designs, mid-scale modular designs, or both. In mid-scale projects, a more integrated approach can help balance cost, schedule and operational considerations by reducing complexity and improving execution. 

Modular Design, A Path to Efficiency

The conversation is increasingly expanding from installed capacity to the execution model. When a project depends on many stakeholders, several transfers of responsibility and multiple integration points, the risk is not purely technical. It can also become financial, operational, and reputational.

By contrast, modular and integrated designs can change both the plant layout and the project’s governance model. Interfaces may be reduced, coordination can become simpler, and predictability can improve.

The IEA forecasts a wave of new LNG export capacity of around 300 billion cubic meters (bcm) per year by 2030[3]. In a cycle like this, arriving late can be as costly as designing poorly.

Talking about modules means understanding how manufacturing key units off-site, in controlled environments, can reduce uncertainty in the field, shorten timelines, and standardize processes.

For mid-scale facilities, this approach can be especially valuable because it may help contain costs and keep projects within reasonable time and capital parameters. A replicable design also makes future expansions easier when the market requires them.

However, modularity alone does not solve the entire challenge. A project can be built faster and still carry problems if process technology, automation and operating systems are treated as separate pieces.

This is where integrated design becomes important. Integrating pretreatment, liquefaction, control systems, and software from the beginning can reduce the gaps in responsibility that often emerge when each component depends on a different supplier. In other words, a well-integrated plant is easier to build, operate, maintain and scale.

This is precisely where Honeywell brings a differentiated approach. As the only technology company with differentiated end-to-end process technologies combined with cutting-edge automation and software capabilities, Honeywell can help LNG developers connect process design, automation, and operations from the earliest stages of a project. 

Its modular LNG portfolio is intended to support a more streamlined approach across the value chain, helping reduce project risk, complexity, and capital expense while contributing to stronger energy security. That breadth also allows technology to be adapted to different train sizes, from small-scale LNG and modular mid-scale designs of up to approximately 2 million metric tons per annum (MMTPA) to large single-train designs at 8 MMTPA.

Automation and digitalization systems embedded from the design stage can support more consistent operations, better visibility into plant performance, and more precise maintenance planning.

In the mid-scale segment in particular, discipline is also needed to help preserve a project’s economic viability from beginning to end.

In these types of facilities, there is often less room to absorb schedule deviations, cost overruns, or late-stage redesigns than in larger developments. Speed is important, but the quality of project implementation matters just as much. Arriving earlier creates limited value if the project carries weaknesses that later make operations more expensive or affect reliability.

This point helps explain why developers are looking for greater certainty in schedules, manageable capital exposure, and operational reliability, three variables that are often more connected than they may appear.

When development relies on multiple licensors, different equipment suppliers, and systems integrators operating under separate logic, risk can also shift to project governance. What appears to be a sum of specialized capabilities can become a fragmented network of responsibilities, where each interface adds the possibility of delay, cost pressure or technical friction.

Automation can help standardize operating practices and embed process knowledge into control systems, something especially valuable as experienced operators retire. This issue is rarely discussed, yet it is likely to carry increasing weight.

Energy infrastructure does not compete only for capital and time; it also competes for specialized talent. Designing assets that depend less on dispersed knowledge and more on integrated operational intelligence can make the difference between a plant that scales in an orderly way and one that accumulates vulnerabilities over time.

In this sense, the discussion around LNG should no longer be limited to the molecule or the volume. It can also include the technical and organizational architecture that enables a project to perform well, not merely to start up.

The next stage of LNG may be shaped not only by the size of projects, but also by their ability to combine speed, certainty and performance.

In a market that is adding new supply, multiplying trade routes and demanding greater resilience, the conversation can focus on which projects are best prepared to move from announcement to operation without losing time, value or control along the way. In that context, integrated modular design moves from being an interesting technical option to becoming a strategic advantage for the right projects, under the right conditions, as part of a broader LNG portfolio that continues to include large-scale developments. Regardless of scale, the need for well-planned integration and automation systems that are embedded at the design phase are critical to support the long-term efficiency and profitability of LNG production. 

https://mexicobusiness.news/tech/news/why-integrated-modular-design-future-mid-scale-lng

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Italy Becomes EU’s Top LNG Importer as Purchases Elsewhere Lag

Italy became Europe’s top importer of liquefied natural gas in July as traders made use of government incentives to keep buying cargoes despite soaring prices, while neighboring countries held back on costly purchases and allowed storage levels to lag.

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The divergent strategies amount to opposing bets on how Europe’s gas crunch will evolve befare winter. If Middle East disruptions persist and prices keep climbing, Italy’s expensive stockpiling could prove prescient while countries with thin inventories may face even tighter supply in winter and higher costs. If fuel flows recover and prices fall, Italy risks having filled storage with costly gas at billpayers’ expense.

War and supply disruptions in the Middle East have caused European gas prices to roughly double so far this year, crimping LNG buying across the region even as it’s under pressure to build up inventories for winter. Italy was a rare exception, leapfrogging its peers this month for the first time in ship-tracking data compiled by Bloomberg going back to 2017.

The country’s power sector is the most reliant on gas in Europe, and saw energy needs jump during recent heat waves. But its traders also kept making use of incentives to buy LNG for refilling Italy’s storage sites, giving it a leg up on nations like Germany and France, which are lagging behind. Italy’s storage regulation contains strict refilling targets and fines for not meeting them.

The development is likely to sharpen the question of whether other European governments should. Intervene to support purchases if shipping from the Persian Gulf remains shut. Other major buyers in Asia have also been pulling away cargoes from Europe, potentially fueling a bidding war in the months ahead if the supply situation doesn’t ease.

“It’s likely that gas prices will continue to be in tension over the coming months, starting in the next few weeks,” Agostino Scornajenchi, chief executive officer of Italian gas network operator Snam SpA, said in an interview this week. Germany and other European countries will likely have to accelerate storage injections soon, he said. The company confirmed it’s on track to reach its 90% refilling target.

European gas futures have added more than 30% so far this month with the US launching fresh strikes on Iran in recent days and global markets grappling with continued uncertainty.

Winter gas contracts are trading slightly below those for summer, making stockpiling uneconomical for most traders. Still, many analysts have warned of mounting winter risks, with Goldman Sachs Group Inc. seeing the possibility of prices shooting up to €100 a megawatt-hour in December – 75% above current levels if the market remains tight.

For the time being, Italy’s gas storage sites are 75% full-below a five-year seasonal average, but the highest among Europe’s top markets. Germany’s facilities are at 47%, the lowest share of utilized capacity for this time of year in records going back to 2009. France’s gas inventories are 56% full after it faced some capacity restrictions at LNG terminals this summer.

https://www.bloomberg.com/news/articles/2026-07-31/italy-becomes-eu-s-top-lng-importer-as-purchases-elsewhere-lag

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Storage capacity to increase at Marmaraereglisi LNG terminal

Energy and Natural Resources Minister, Alparslan Bayraktar, stated: “This new investment will strengthen our natural gas infrastructure. The facility’s total LNG storage capacity will increase from 255 000 m3 to 415 000 m3. Investments like this in our natural gas infrastructure will enhance our resilience against crises.”

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The storage of natural gas arriving by ship in liquid form – whether it is regasified when needed or transported by land tankers while remaining in liquid form – provides flexibility for energy supply security while also ensuring source diversification.

Located in Tekirdag, the Marmaraereglisi LNG terminal plays a strategic role, particularly during the winter months when natural gas consumption is high, with a daily regasification capacity of 37 million m3. The terminal accommodates not only conventional ships in the global LNG fleet, but also high-capacity vessels of the Q-Flex and Q-Max classes.

With an average of 65 LNG ships calling at the terminal each year, it single-handedly meets approximately 15% of Türkiye’s annual natural gas demand, making it one of the most critical components of energy supply security.

In addition to storing LNG delivered by ships and regasifying it for injection into the national transmission system, the terminal also conducts onshore tanker loading, fuelling, and reloading operations. It is set to expand its storage capacity. With the construction of a fourth storage tank now underway, storage capacity will increase by 160 000 m3.

Bayraktar stated that the Marmaraereglisi LNG terminal is one of the critical elements of Türkiye’s energy supply security, thanks to its ability to source natural gas from various sources, its high storage capacity, and its robust regasification infrastructure.

Noting that fluctuations in global energy markets have once again highlighted the importance of a robust infrastructure, Minister Bayraktar added: “This new investment will strengthen our natural gas infrastructure. The facility’s total LNG storage capacity will increase from 255 000 m3 to 415 000 m3. Investments like this in our natural gas infrastructure will enhance our resilience against crises.”

Türkiye has a total of five LNG entry points, consisting of two LNG terminals and three FSRUs. In addition to the Marmaraereglisi LNG terminal, the Dörtyol FSRU and the Saros FSRU are operated by BOTAS.

In line with the National Energy and Mining Policy, the LNG regasification capacity – which stood at 34 million m3/d in 2016 – has now increased approximately fivefold to 161 million m3. The Ministry of Energy and Natural Resources aims to increase this capacity to 200 million m3/d with two new FSRUs.

https://www.lngindustry.com/regasification/20072026/storage-capacity-to-increase-at-marmaraerelisi-lng-terminal/

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Global LNG Development

PETRONAS Extends LNG Supply Agreement with Shizuoka Gas Until 2039

PETRONAS LNG Ltd. (PLL), a subsidiary of Petroliam Nasional Berhad (PETRONAS), signed a new liquefied natural gas (LNG) supply agreement with Japanese company Shizuoka Gas Co., Ltd., extending a commercial relationship that spans over three decades and reinforcing energy supply to the Japanese market until 2039.

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The contract includes the approximate supply of 0.84 million metric tons of LNG over seven years starting in 2032, utilizing PETRONAS’s global production and trading portfolio to offer greater flexibility and stability in the face of changing international gas market conditions.

An Alliance Evolving with the LNG Market

The signing of the agreement coincides with the thirtieth anniversary of the first LNG cargo supplied by PETRONAS to Shizuoka Gas, a relationship that has evolved in parallel with the growth of the Japanese market and the transformation of energy supply strategies in Asia.

According to PETRONAS, the new contract will allow for a faster response to the needs of Japanese consumers through a diversified supply portfolio, reducing exposure to logistical disruptions and strengthening the resilience of the liquefied natural gas supply chain.

During the ceremony held in Kuala Lumpur, Datuk Adif Zulkifli, Executive Vice President and CEO of PETRONAS’s Gas & Maritime Business, highlighted that the agreement represents more than a commercial commitment, consolidating a relationship built on decades of trust and technical cooperation between both companies.

Contractual Flexibility Gains Prominence

Beyond the contracted volume, the announcement reflects a trend that is redefining the global LNG market: the growing demand for contracts with greater operational flexibility.

Unlike traditional rigid long-term agreements, buyers are currently seeking mechanisms that allow them to adapt supplies to variations in demand, infrastructure availability, and the volatility of the international energy market. In this context, a diversified global portfolio allows for the redistribution of cargoes, optimization of shipping routes, and improved continuity of supply without relying on a single production source.

This approach has become a strategic element for importing countries like Japan, where liquefied natural gas continues to play a fundamental role in ensuring the stability of the electricity system while advancing the transition towards lower carbon intensity sources.

Cooperation Beyond Gas Supply

PETRONAS and Shizuoka Gas also announced their intention to expand collaboration into decarbonization initiatives across the LNG value chain, exploring opportunities that complement the traditional supplier-buyer relationship.

As one of the world’s leading exporters of liquefied natural gas, PETRONAS will continue to use its international production and marketing network to provide energy solutions that combine reliability, flexibility, and supply security, while simultaneously contributing to a gradual and technically viable energy transition.

https://inspenet.com/en/news/petronas-extends-lng-supply-agreement-with-shizuoka-gas-until-2039/

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Glut of LNG supply pushed back to 2028

Damage to Qatar’s Ras Laffan Industrial Complex and the blocking of the Strait of Hormuz by Iran has delayed the oversupply of LNG to the market. What: An oversupply of LNG had been predicted for 2027, but the LNG glut has now been delayed a year to 2028. Why: Unforeseen attacks on Qatar’s Ras Laffan Industrial Complex damaged two liquefaction trains and Iran’s closing of the Strait of Hormuz essentially blocked 17% of global supply from reaching the market.

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What Next: With the LNG glut delayed, excess supply of the super-chilled fuel is now expected to peak in 2031 to 2032, when several new projects begin operation.

The global LNG market is now expected to reach oversupply in 2028, one year later than initially expected, BloombergNEF reported in its Global Gas and LNG Outlook on July 14.

The oversupply of super-chilled fuel was previously forecast for 2027, but Iran’s attack on Qatar’s Ras Laffan Industrial Complex has disrupted global LNG trade. A drone attack by Iran’s Islamic Revolutionary Guard Corps on March 2 caused significant damaged.

Just two days later, QatarEnergy was forced to declare force majeure on its deliveries to customers amid the significant damage done to the facility which boasts 14 liquefaction trains with a total production capacity of 77 mn tonnes per year (tpy) of LNG. The facility is the largest LNG plant in the world.

About two weeks later on March 18 Iran conducted a two-day ballistic missile attack on the LNG plant damaging liquefaction trains 4 and 6 at the facility as well as a gas-to-liquids processing train.

The damage to the two liquefaction trains removes 12.8 mn tpy of LNG from the market until repairs are completed in three to five years, which is about 17% of Qatar’s production capacity. It is expected to cost the Gulf exporter a loss in revenue of about $20 bn per year, while repair costs are expected to reach as high as $26 bn.

Meanwhile, Iran has closed the Strait of Hormuz to LNG tankers. The strait is a key chokepoint in the global LNG trade with about 20% of global supply transiting through the passage from key suppliers Qatar and the United Arab Emirates.

Getting supply from Qatar, the world’s second biggest LNG exporter in 2025 behind only the US, back on the market remains a complicate procedure without any current timeline.

After the establishment of the ceasefire framework between the US and Iran, Qatar’s Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani said that Qatar would return to normal LNG production within a few weeks.

While QatarEnergy had been planning to ramp-up production to normal levels by mid-July, attacks on vessels have derailed those hopes. An attack in early July by Iran’s Islamic Revolutionary Guard Corps on a Qatari LNG tanker and a Saudi-flagged crude oil tanker have caused Doha to reconsider its LNG strategy. The attack marked the first time a Qatari tanker was targeted by Iran.

For now, QatarEnergy’s operations will be kept at a minimum for the foreseeable future until the security situation in the Strait of Hormuz is stabilized. Previously, Qatar had hoped that it may be able to lift its force majeure by July 16, however, those plans have now been scrapped with force majeure notices provided for August to some customers in Asia.

Passages through the strait have plummeted to almost no vessels. On July 16 only three commodity tankers crossed the strait, according to Reuters. A commander with the Islamic Revolutionary Guard Corps recently stated that shipping through the Strait of Hormuz would be governed solely by rules set by Iran.

Qatar’s expansions plans also now hang in the balance. On March 8, the Gulf country announced it would push back expansion plans for the North Field project to 2027. It had previously hoped to bring online four new liquefaction trains in the project in the second half of the year for the North Field East expansion.

The North Field South expansion, which will see two new liquefaction trains added, was planned for 2027, however, it is also at risk of being pushed back a year.

Despite the setbacks for both Qatar and the United Arab Emirates, the US is expected to see enormous growth in its output. The world’s largest LNG exporter is predicted by BloombergNEF to witness supply growth of the super-chilled fuel of around 146 mn tpy through 2035.

BloombergNEF also forecasts that global oversupply of the super-cooled gas will be over 100 mn tonnes by 20231.

The forecasts of an oversupply come despite predictions of tremendous growth in demand for LNG. In its LNG Outlook 2026, Shell predicted a 65% surge in LNG demand by 2050 to almost 700 mn tpy. The world’s biggest LNG trader also forecasts about 180 mn tpy of new LNG supply to enter the market by 2030.

https://www.intellinews.com/glut-of-lng-supply-pushed-back-to-2028-455408/

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Egypt in talks with energy majors for multi-year LNG supply deal, sources say

LONDON/CAIRO, July 21 (Reuters) – Egypt is in talks with energy majors including ‌Shell (SHEL.L), TotalEnergies (TTEF.PA), and BP (BP.L), to buy 15 to 18 cargoes of liquefied natural gas per month for at least three years, three trading and industry sources familiar with the matter told Reuters.

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The talks come as Egypt’s domestic production struggles to keep pace with rising demand and as global ​LNG markets remain tight during the Iran conflict, which has curtailed shipping through the Strait of Hormuz and increased competition among ​buyers seeking to secure supplies.

Two of the sources said talks are ongoing with companies including Shell, ⁠TotalEnergies, BP and commodities trader Hartree Partners.

There is “a strong will to work with Americans”, a third source said.

The duration of ​the deals could be three to five years, but they are yet to be finalised, the sources added.

Egypt’s petroleum ministry and TotalEnergies ​did not immediately respond to a Reuters request for comment. Shell, BP and Hartree Partners declined to comment.

COST OF EGYPTIAN NATURAL GAS IMPORTS BALLOONS

While Egypt’s economy has remained broadly stable despite the U.S.-Israeli war with Iran, energy imports have ballooned.

Egypt’s natural gas import bill had nearly tripled, rising from about $560 ​million before the conflict to roughly $1.65 billion for the same volumes in March.

The new import deals could cost the most populous Arab ​country between $8 billion and $11 billion annually, based on Reuters calculations of recent deals priced at a premium of about $1.5 above TTF, the European ‌gas price ⁠benchmark.

This would be an additional challenge for the government, which is already grappling with high debt that eats up the majority of its budget, and a national currency that is barely holding since the regional conflict began.

Every dollar spent on LNG and fuel imports is money no longer available for budget spending, investment or reserves accumulation.

“Egypt’s ongoing negotiations for medium-term LNG supply, alongside the ​expansion of existing and planned ​pipeline gas agreements, reflect efforts ⁠to reduce exposure to volatile spot market procurement amid continued geopolitical uncertainty,” said Aly Blakeway, head of Atlantic LNG at S&P Global Energy.

That uncertainty includes the Russia-Ukraine conflict and tensions involving the ​U.S. and Iran, Blakeway added.

EGYPT’S GAS PRODUCTION DECLINING

Egypt imported a total of 985 billion cubic ​feet of gas ⁠between July 2025 and June 2026, including from Israel and other LNG cargoes.

Its imports are estimated to reach 1,081 billion cubic feet between July 2026 and June 2027, according to official documents seen by Reuters.

The higher imports reflect a continued decline in natural gas production, ⁠despite repeated pledges ​and clearing foreign companies’ arrears.

Monthly production averaged under 4.4 billion cubic feet per ​day in fiscal year 2025-26, and is expected to dwindle further to 4.2 billion cubic feet per day in the current fiscal year.

https://www.reuters.com/business/energy/egypt-talks-with-energy-majors-multi-year-lng-supply-deal-sources-say-2026-07-21/

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Adnoc to invest in $6.2bn natural gas schemes as UAE bids for self-sufficiency

Abu Dhabi National Oil Company will invest in a $6.2bn natural gas development as part of its push to massively expand its domestic production to meet both rising local and global demand. Financing has been lined up to develop a layer of natural gas sitting on top of Umm Shaif, its longest operating offshore oil and gasfield, said Adnoc in a statement.

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The state-run firm will invest alongside TotalEnergies, Eni and China National Petroleum Corporation in the project, which will produce more than 600mn cubic feet of natural gas per day, it said. Adnoc is currently able to pump as much as 11.5bn cubic feet per day.

Adnoc is accelerating its gas strategy in response to surging global demand for liquefied natural gas, said chief executive Sultan al-Jaber, adding its strategy was “reinforcing Adnoc’s position as a reliable gas supplier”.

At the same time, Adnoc is racing to keep pace with the UAE’s rapidly rising domestic demand for gas. Around a third of its gas needs are met by pipeline imports from Qatar, but the agreement expires in 2032, and there are political tensions between the two countries.

The UAE wants to become self-sufficient by the end of the decade in order to avoid shortages should Dolphin pipeline flows from Qatar come to an abrupt halt. The Umm Shaif gas cap project will start operating in 2030, according to the statement.

For exports, Adnoc is building a plant that will almost treble its liquefied natural gas capacity by 2028, with the 9.6mn tonne per year plant at Ruwais already under construction.

It is also reportedly considering building another LNG plant in Fujairah, on the other side of the United Arab Emirates, that would be less affected by disruptions to shipping through the Strait of Hormuz than its Gulf facilities.

The company declined to comment on the potential plans.

The Umm Shaif development is the first time Adnoc is investing in one of its so-called gas caps. It also plans to develop the larger 1.5bn cubic feet per day Bab Gas Gap project alongside six oil majors including TotalEnergies and BP, but has yet to reach a deal to finance it.

Most of Adnoc’s gas is produced alongside oil, and is relatively cheap to produce, but as the firm’s ambitions have grown, it has tapped into progressively more expensive sources of gas.

A small amount of oil will be produced from the Umm Shaif gas cap too. Since the UAE left Opec in May, Adnoc no longer has to limit its oil output and can invest in expanding its production without concerns that it might not be allowed to fully utilise its investments.

At the same time, oil companies often avoid tapping gas caps until late in the field’s life as extracting gas can reduce the pressure of the reservoir and ultimately reduce oil production.

“There are things you can do to help mitigate the pressure loss, but [developing a gas cap] is just not something you would typically do early in the life of a field,” said Fraser McKay, head of upstream analysis at Wood Mackenzie.

https://www.ft.com/content/9384bfba-55d3-4280-b8a0-85f7cdbeeb5c?syn-25a6b1a6=1

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QatarEnergy prepares to extend force majeure on LNG into mid-October, Bloomberg News reports

July 22 (Reuters) – QatarEnergy is readying to extend ​force majeure on liquefied ‌natural gas shipments through mid-October, Bloomberg News reported on Wednesday, citing ​people with knowledge of ​the matter. Several buyers in Europe and ⁠Asia said separately they ​are expecting a formal notification, ​the report said.

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Reuters could not immediately verify the report. QatarEnergy did not immediately ​respond to a request for ​comment.

Force majeure is a clause that ‌frees ⁠parties from liability if any failure to meet supply obligations is due to events beyond ​their control.

Qatar ​accounts ⁠for about 20% of global LNG exports, all ​of which transit the ​Strait ⁠of Hormuz, where shipping has ground to a near-halt amid escalating ⁠tensions ​between Tehran and Washington.

Reporting ​by Ruchika Khanna in Bengaluru; Editing by ​Joyjeet Das and Jonathan Ananda

https://www.reuters.com/business/energy/qatarenergy-prepares-extend-force-majeure-lng-into-mid-october-bloomberg-news-2026-07-22/

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Yokogawa named MAC for $13-billion LNG project

Yokogawa Corp. of America reported July 7 that it’s been enlisted as the main automation contractor (MAC) for the Commonwealth LNG project, a $13 billion liquefied natural gas (LNG) export development in Louisiana. The contract was awarded by Technip Energies, engineering, procurement and construction (EPC) contractor for Commonwealth LNG, which is a Caturus company.

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The overall project has secured long-term offtake agreements with international energy companies. Project execution is expected to begin immediately, with system deliveries scheduled during 2027. Phase 1 of the project is scheduled start operating in 2030.

Yokogawa’s scope as MAC includes engineering and design services, delivering an integrated control and safety system (ICSS), system integration and project execution support. It’s also responsible for integrating multiple third-party subsystems and advanced automation applications, enabling a connected, safe and efficient operational environment.

Located on the U.S. Gulf Coast near Cameron, La., Commonwealth LNG is planning a liquefaction capacity of approximately 9.5 million tons per annum (mtpa). The project includes six liquefaction trains, LNG storage infrastructure and export facilities, and is expected to play a critical role in meeting growing global energy demand, while strengthening the U.S. as an LNG exporter.

“We’re honored to be selected as the main automation contractor for this landmark LNG project. Yokogawa brings deep expertise in delivering advanced automation solutions for large-scale, complex energy facilities,” says Kevin McMillen, president and CEO of Yokogawa Corp. of America. “We’re proud to collaborate with Technip Energies and our project partners during the execution phase, while building a long-term relationship with Commonwealth LNG to support safe, efficient and reliable operations across the full lifecycle of the asset.”

https://www.controlglobal.com/industry-news/news/55391672/yokogawa-yokogawa-named-main-automation-contractor-for-13-billion-commonwealth-lng-project-in-louisiana

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EGAS in talks with 3 foreign companies for long-term LNG import contracts

The Egyptian Natural Gas Holding Company (EGAS) is negotiating with three international companies to sign long-term liquefied natural gas (LNG) import contracts, a source familiar with the import portfolio at the Ministry of Petroleum told Al Manassa. The agreements are intended to secure domestic supply amid rising demand and volatility in global energy markets.

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The source, who requested anonymity because they were not authorized to speak to the media, said the negotiations involve two US companies and one European company. Talks are currently focused on reaching an agreement on the final price per million British thermal units (MMBtu) and the volumes to be supplied.

The Ministry of Petroleum aims to contract for the supply of around 18 cargoes per month during the summer to meet domestic demand, particularly from the electricity and industrial sectors, the source said. The volume is expected to fall to 15 cargoes per month during the winter as consumption declines.

The source added that the ministry’s most recent long-term LNG import contract was signed with a US company in November last year.

At the end of last year, Egypt agreed to purchase around 80 LNG cargoes from US company Hartree Partners in a deal worth nearly $4 billion, with deliveries set to begin in 2026, according to Reuters.

LNG prices on global markets currently range between $16–18 per MMBtu, while EGAS is seeking to secure prices below prevailing market levels through the ongoing negotiations, The source said.

The ongoing war in the Middle East has cast a shadow over global energy markets and affected LNG trade flows, particularly cargoes originating from the Gulf region, prompting the ministry to expand its long-term contracts to reduce the risk of supply disruptions. Recent military tensions have contributed to raising global LNG prices as concerns over supply security and shipping through key maritime routes have intensified.

According to the source, the Ministry of Petroleum currently relies on imports to meet around 40% of domestic natural gas demand, including gas imported from Israel. Domestic production currently ranges between 3.8–3.9 billion cubic feet per day, compared with average consumption of around 6.5 billion cubic feet per day.

https://manassa.news/en/news/32973

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LNG as a Marine Fuel/Shipping

TotalEnergies ships first LNG cargo from ECA LNG Phase 1 in Ensenada, Mexico to Asian markets

TotalEnergies announced Thursday that it has shipped the first LNG cargo from the ECA LNG Phase 1 facility in Ensenada, Mexico — a joint venture with Sempra Infrastructure — bound for Asia. The departure marks the inaugural export from what is set to become the first LNG liquefaction facility on Mexico’s Pacific Coast.

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The first cargo departs Ensenada for Asia

TotalEnergies confirmed on Thursday the shipment of the first LNG cargo from ECA LNG Phase 1, located in Ensenada, on Mexico’s Pacific Coast. The cargo is headed to Asia, and it’s a milestone for a project that’s been years in the making.

TotalEnergies holds a 16.6% stake in the facility alongside operator Sempra Infrastructure, a Houston-based subsidiary of utility holding company Sempra. Sempra handled day-to-day operations while the two companies developed the project together.

Sempra highlighted that distinction in its own statement, underscoring the project’s place in the broader history of North American LNG infrastructure.

The facility is still in its commissioning phase, and TotalEnergies is the sole offtaker of LNG during this ramp-up period—meaning it takes all output while the plant works toward full commercial operations.

Sempra Infrastructure CEO Justin Bird put the shipment in broader context. “At a time of increased uncertainty in the global LNG trade,” he said, “we are excited to begin shipping a new and reliable source of natural gas from North America’s Pacific Coast to customers around the globe.”

Why ECA LNG Phase 1 was built on Mexico’s Pacific Coast

The choice of Ensenada wasn’t accidental. ECA LNG Phase 1 processes U.S. natural gas sourced from the Permian Basin in Texas and New Mexico, one of the most prolific regions of production in North America.

Ships departing from Ensenada reach Asian markets via a significantly shorter route than vessels leaving from Gulf Coast terminals, which must transit the Panama Canal or sail around South America entirely. Both options add time and cost. TotalEnergies noted that the facility’s location “enables U.S. natural gas to be exported to Asia and other Pacific Basin markets via the shortest maritime route, reducing transportation times and costs” — and that geographic edge is central to the project’s commercial logic.

Phase 1 received its export authorization from the U.S. Department of Energy back in 2019. That authorization covers exports to countries with which the U.S. has a free trade agreement, plus a separate permit to re-export U.S.-sourced gas — in liquefied form — from the Mexican facility to non-FTA countries.

Offtake agreements and commercial operations timeline

Once ECA LNG Phase 1 enters commercial operations, TotalEnergies will offtake 1.7 million tons per year of LNG for 20 years. Japan’s Mitsui & Co. is also in the picture. Together, the two companies hold a combined offtake of 2.5 million metric tons per annum (MMtpa) for 20 years from Phase 1. The facility has a nameplate capacity of 3.25 MMtpa from a single train, so TotalEnergies and Mitsui account for most of that output.

Substantial completion is expected in summer 2026, with long-term sales agreements kicking in shortly after commercial operations begin. The clock on those 20-year contracts hasn’t started yet.

That distinction matters. Current shipments are happening during commissioning — not under the long-term commercial framework. TotalEnergies is absorbing all output now, with the formal offtake structure taking effect once the facility clears its final milestones.

Background: ECA LNG Phase 2 and broader project context

Sempra Infrastructure announced the start of production last month but was clear that commercial operations were still months away. That gap between “production start” and “commercial operations” is normal for LNG facilities—commissioning involves extensive testing before a plant is declared fully operational.

Once it clears that threshold, ECA LNG Phase 1 will officially become the first LNG liquefaction facility on Mexico’s Pacific Coast. Sempra highlighted that distinction in its own statement, underscoring the project’s place in the broader history of North American LNG infrastructure.

A larger expansion is already under development at the same Ensenada site. Phase 2 would consist of two trains and one LNG storage tank, with approximately 12 MMtpa of export capacity—nearly four times what Phase 1 can handle. It also holds DOE authorization to re-export U.S.-sourced gas to non-FTA countries, a permit Sempra Infrastructure announced in December 2022. TotalEnergies noted the second phase is “under development,” though no completion timeline has been publicly confirmed.

A beneficial Pacific Coast location

Here’s where things stand: TotalEnergies has shipped the first LNG cargo from ECA LNG Phase 1 in Ensenada, Mexico, destined for Asia. The facility remains in commissioning, with TotalEnergies acting as the sole offtaker during the ramp-up.

The project is a joint venture between TotalEnergies (16.6% stake) and operator Sempra Infrastructure, processing Permian Basin gas and benefiting from a Pacific Coast location that offers the shortest maritime route to Asian markets. Substantial completion is targeted for summer 2026.

Once commercial operations begin, long-term offtake agreements with TotalEnergies and Mitsui—totaling 2.5 MMtpa over 20 years—will take effect. Phase 2, carrying roughly 12 MMtpa of capacity, is also in development at the same site.

https://energiesmedia.com/totalenergies-first-lng-cargo-ensenda-asia/

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Reservoir Link obtains 10-year gas shipping, LNG import licences

RESERVOIR Link Energy Bhd has obtained two 10-year licences from the Energy Commission, allowing it to ship natural gas and import liquefied natural gas (LNG) under Malaysia’s third-party access framework.

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The licences, held by its wholly owned subsidiary Reservoir Link Sdn Bhd, comprise a gas shipping licence, which enables the company to arrange the processing and transportation of natural gas through regasification terminals and pipeline networks, and an LNG import licence that permits imports into licensed regasification terminals.

The oilfield services company said the approvals support its strategy to diversify into energy infrastructure and gas-related businesses, while positioning it to tap opportunities arising from growing natural gas demand, particularly from the expanding data centre sector, where gas is expected to play an important role as a transition fuel for power generation.

Its executive deputy chairman Thien Chiet Chai said the licences provide a platform for the group to participate in Malaysia’s liberalised natural gas market and support the country’s energy transition while creating long-term shareholder value. –TMR

https://themalaysianreserve.com/2026/07/20/reservoir-link-obtains-10-year-gas-shipping-lng-import-licences/

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Cambodia Attracts Global LNG Suppliers for First LNG Power Plant

Cambodia is receiving strong interest from leading liquefied natural gas (LNG) exporters, including suppliers from the United States, Canada, Australia, the Middle East, and Southeast Asia, as it prepares to commission its first LNG-fired power plant by next year. The project marks a significant step in the country’s long-term strategy to diversify its energy mix while ensuring reliable electricity supply for its expanding industrial sector.

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Cambodia’s Minister of Mines and Energy, Keo Rottanak, said the government will evaluate both LNG pricing and long-term supply reliability before awarding contracts through a competitive tender. The aim is to ensure a stable and affordable LNG supply to support rising electricity demand while reducing the impact of fluctuations in international energy markets.

The upcoming 900-megawatt LNG power plant forms a key part of Cambodia’s broader energy transition strategy. While the country continues to prioritize renewable energy development, the government views LNG as an essential transition fuel capable of providing dependable baseload power and balancing the intermittent nature of renewable energy sources such as solar and hydropower. According to the minister, Cambodia is “doubling down” on LNG to enhance energy security while maintaining its commitment to cleaner energy.

Currently, renewable energy contributes approximately 63% of Cambodia’s electricity generation, one of the highest shares in the region. This significant reliance on renewables has helped the country reduce its exposure to the recent geopolitical disruptions in the Middle East, which have driven volatility in global energy markets. By 2030, Cambodia expects renewable energy to account for nearly 70% of its power generation, with LNG supplying a substantial portion of the remaining energy demand.

Despite the sharp rise in international energy prices following geopolitical tensions, Cambodia has maintained stable domestic electricity tariffs. The government has absorbed much of the financial burden by reducing taxes and import duties on fuels, preventing higher energy costs from being passed on to households and industries. According to the minister, these subsidy measures currently cost the government up to $60 million per month but are considered necessary to safeguard economic growth and manufacturing activity.

Cambodia remains committed to supporting industries by ensuring uninterrupted power supplies and protecting factories from rising operating costs. Government officials indicated that support measures would continue for as long as required, helping businesses maintain production while shielding consumers from energy price shocks. The country’s balanced approach of expanding renewable energy while integrating LNG is expected to strengthen energy resilience, attract industrial investment, and support sustainable economic development over the coming decade.

Impact on Products and Chemical Commodity Prices :

Cambodia’s increasing LNG imports are expected to strengthen regional demand for liquefied natural gas while supporting higher consumption of natural gas-based products. Demand for LNG, cryogenic storage infrastructure, industrial gases, gas transmission equipment, and power generation materials could gradually increase as the new plant becomes operational. For chemical commodities tracked by ChemAnalyst, the move is expected to have a slightly bullish impact on LNG and natural gas prices in Southeast Asia due to additional import demand. However, downstream chemicals such as methanol, ammonia, urea, and petrochemical feedstocks are unlikely to experience any significant price changes immediately, as Cambodia’s LNG requirements remain relatively modest compared with global market volumes.

https://www.chemanalyst.com/NewsAndDeals/NewsDetails/cambodia-attracts-global-lng-suppliers-for-first-lng-power-4352

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Peru LNG vessels change course, Dutch open arms

Peru’s liquefied natural gas (LNG) exports to Europe have shifted to the Netherlands from Spain, while Asia continues to absorb around 70% of total shipments from the South American country. Numbers from Peru’s hydrocarbons licensing authority Perupetro show that 50 shipments (bills of lading) left Peru LNG’s Pampa Melchorita LNG plant liquefaction complex in the first half of 2026 (1H26), compared to 42 in the same period of 2025 (1H25).

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South Korea is the anchor market in both periods, accounting for the largest single share of deliveries each half with 15 shipments.

Beyond South Korea, the Netherlands emerges as the second-largest destination, displacing Spain, while China holds a steady mid-tier position.

The Netherlands is an important injector of LNG-sourced natural gas into European pipeline networks, and market observers highlight that the region, particularly northwestern Europe, is undergoing a gas refill push ahead of winter.

https://www.bnamericas.com/en/news/peru-lng-vessels-change-course-dutch-open-arms

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Energia Costa Azul, Mexico’s second LNG terminal, shipped first cargo

Energia Costa Azul, the second liquefied natural gas (LNG) export facility in Mexico, shipped its initial cargo from Phase 1 of the terminal on July 8, according to the project developer. The completion of the project adds 0.4 billion cubic feet per day (Bcf/d) of nominal export capacity from a single train, tripling Mexico’s LNG export capacity. The facility is the first terminal in Mexico and the second in North America, following LNG Canada, to be located on the Pacific Coast, boosting North American export capacity there to 2.2 Bcf/d. The Pacific Coast location allows for shorter shipping routes to importers in Asia.

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LNG exports from this project are subject to regulatory approvals by the U.S. Department of Energy (DOE) because the facility is supplied with natural gas sourced from the United States. DOE has authorized 0.50 Bcf/d of LNG exports from Energia Costa Azul Phase 1 to countries that have a Free Trade Agreement (FTA) with the United States and 0.44 Bcf/d of LNG exports to non-FTA countries.

Sempra has proposed a second phase of the project, which if constructed would add 1.6 Bcf/d of nominal export capacity from two large-scale trains.

Principal contributor: Jordan Young

https://www.eia.gov/todayinenergy/detail.php?id=67884

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First US LNG Shipment to China in a Year to Be Re-Exported

The first US liquefied natural gas shipment to China in more than a year will be re-exported, as the local companies involved look to tap higher profits overseas and avoid paying tariffs, according to people with knowledge of the matter.

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The cargo from Venture Global’s Plaquemines facility in Louisiana was offloaded at the Yangpu port in southern China earlier this month, ship-tracking data compiled by Bloomberg shows. The gas was then loaded into bonded storage, where it is currently being prepared for re-export, people with knowledge of the matter said. The LNG was delivered with the intention for resale overseas, where prices are more attractive, the people said.

If the shipment were imported into the local market, then the Chinese buyer would need to pay a 25% tariff on the fuel. A nearly empty tanker recently docked at Yangpu, ship-tracking data shows, and some of the US LNG could be loaded onto the ship.

The move to re-export indicates that China isn’t in a rush to resume imports of US LNG, even as the war in the Middle East chokes deliveries from Qatar and the United Arab Emirates. The Asian nation has replaced US and Qatari flows by boosting deliveries from other suppliers such as Canada and Oman, ship data shows.

China’s imports of US LNG plunged early last year as trade between the world’s largest buyer and the biggest seller of seaborne gas unraveled. Beijing slapped tariffs on US LNG in February 2025 in retaliation for levies on Chinese goods by the Trump administration.

Meanwhile, higher global LNG prices over the past month have prompted Chinese importers to resell some of their long-term supply, as they can get better returns overseas than in the domestic market, according to traders.

https://www.bloomberg.com/news/articles/2026-07-27/first-us-lng-shipment-to-china-in-a-year-to-be-re-exported

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

Repsol to inherit €183m in Spanish hydrogen support after Iberdrola withdraws

Electric utility Iberdrola has withdrawn two green hydrogen projects from Spain’s second national hydrogen auctions, with oil and gas firm Repsol submitting two bids for a combined €183.2m ($209m). Iberdrola was selected to receive a €388.7m ($443.4m) in per kilogramme subsidies over 10 years for its two projects from Spain’s auction-as-a-service round, which allocated funding to projects that missed out on the EU-wide European Hydrogen Bank (EHB) auction.

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Only one other project – a 30MW plant in Albacete by Doña Urraca Energy – was originally selected.

However, Iberdrola’s grant applications for the 80MW and 140MW projects were withdrawn on 15 July. No public reason was given for the withdrawals.

Following the withdrawals, Repsol’s planned 12.27MW Puertollano Hydrogen Network and 50MW Atlas electrolyser plant were moved up from an EHB reserve list.

Both projects aim to replace grey hydrogen used in Repsol’s Puertollano and A Coruña refining platforms. Puertollano could receive €49.8m ($56.8m) with subsidies of €2.25/kg ($2.57), while Atlas is in line for €133.4m ($152.2m) at €2.2/kg ($2.51).

Repsol’s promotion comes as the oil and gas firm agrees to sell a quarter of its oil and gas exploration and production business to US investment firm EIG for $4.8bn, as it looks to invest more heavily in renewables and green hydrogen.

It’s not the first hydrogen roll-back made by Iberdrola. In September, its ScottishPower subsidiary paused plans to develop UK green hydrogen projects, despite securing subsidies.

At the time, ScottishPower cited “challenging conditions” and a “limited route to market” for green hydrogen.

Iberdrola is currently commissioning a 25MW green hydrogen plant with BP at the British oil firm’s Castellón refinery. The Spanish government has also approved thereallocation of €211m ($239.5m) in subsidies to further expand the installation.

Spain remains one of Europe’s most ambitious green hydrogen markets, with aims to capitalise on abundant solar and wind resources, strong government policy, and a revised target of 12GW of electrolyser capacity by 2030.

It is positioning itself as a major domestic producer and future exporter through the cross-border pipeline project, the H2Med corridor.

https://www.gasworld.com/story/repsol-to-inherit-e183m-in-spanish-hydrogen-support-after-iberdrola-withdraws/2254932.article/

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Leapmotor Becomes First Startup Delivering 100,000 Vehicles in a Single Month

Leapmotor delivered 101,267 vehicles globally in July, becoming the first of China’s emerging carmakers to reach 100,000 units in a single month. The figure represents a 102% increase from a year earlier and an 8.5% rise from June’s 93,376 units, marking a fourth consecutive monthly record for the Stellantis-backed automaker. 

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Deliveries for the first seven months of 2026 total 457,754 vehicles, and cumulative global deliveries since launch reach 1,653,857.

A model-level split is not part of the monthly release. The China Passenger Car Association is expected to publish its model-by-model figures next week, which will separate the A, B, C and D series.

The Target Is Moving Away, Not Closer

Leapmotor is targeting one million deliveries in 2026, roughly double the nearly 600,000 vehicles it handed over in 2025.

The July total puts the company at 45.8% of that goal with five months remaining.

Reaching one million would now require an average of 108,449 vehicles a month from August through December, a figure that sits above July’s record and above the 107,253 monthly average the same calculation produced at the half-year mark.

A record month, in other words, left the required pace higher than before, because the run rate demanded by the target rises faster than the company has been able to lift volume.

Senior vice president Xu Jun said in mid-July that Leapmotor had no plans to adjust the one-million figure, acknowledging that the company outperformed the broader market and its own prior results in the first half while still falling short of its own goal, and describing the target as intended to push the company forward.

Most Chinese automakers closed the first half with less than 40% of their annual targets completed, and Leapmotor stood at about 35.6% at that point.

What Carried July

Two models did most of the visible work.

The A10 compact SUV, which opens the range near 65,800 yuan, delivered close to 30,000 units in the month, making it the company’s volume anchor.

The D19, the flagship full-size SUV, cleared 10,000 units and was described by the company as the best-selling full-size SUV priced under 400,000 yuan in China.

Leapmotor now covers the 60,000-to-300,000-yuan band across four series, and the July result is the first month in which all four contributed at scale.

The D99, the company’s first multi-purpose vehicle, launched on June 25 priced from 249,800 to 319,800 yuan and began deliveries on July 20, so July carries only a partial contribution from it.

Refreshed versions of the B01 sedan and B10 SUV went on sale on July 16 after opening for pre-orders on July 8, extending a product offensive that had already refreshed the C10, C11 and C16 onto an 800-volt architecture in June.

The B10 delivered 13,464 units in June, 14.4% of that month’s total.

The Overseas Engine

Exports approached 100,000 units in the first half, already above the full-year 2025 total of roughly 67,000, with Leapmotor International — the 51/49 joint venture with Stellantis — profitable in Europe.

Italy remains the standout market, where Leapmotor holds more than a third of the battery-electric segment and the T03 city car is the best-selling fully electric model.

European registrations reached 56,005 units in the first half, and Leapmotor grew faster in percentage terms than any other Chinese-owned group on the continent, registering 43,037 cars across the first five months on a 552.9% increase from a small base.

In the United Kingdom the brand registered 2,150 cars in June, taking 1% of the new car market and 3% of the electric market, with more than 11,000 registrations since launching there in spring 2025 and over 60% of sales going to private buyers, roughly double the industry average for electric cars.

The five largest Chinese-owned groups together took about 11% of the EU, EFTA and UK market in the first half.

Local Assembly Scaling

Stellantis began assembling the C10 at Gurun in Kedah, Malaysia, after a five-month delay, with the B10 to follow.

Assembly is starting in Zaragoza, Spain, and an Indonesian knock-down plant began production on July 31, with the first locally built B10 and C10 deliveries expected in August.

The move gives Leapmotor two knock-down bases in Southeast Asia, a position few Chinese electric-vehicle brands hold, and the company said it plans to introduce one new model a year in Indonesia and neighbouring markets.

The Lafa 5 hatchback launched in Hong Kong and is rolling out across 28 countries and regions, the B10 launched in Morocco, and B03X orders have opened in Europe.

Competition in the same European price band is tightening. XPeng launched its L03 SUV from €34,990 across eight European markets in July, aimed squarely at the segment Leapmotor has used to build its European base.

Profit Behind the Volume

Leapmotor posted its first full-year profit in 2025, with net income of 540 million yuan on revenue that roughly doubled, and is targeting five billion yuan in net profit for 2026.

The company confirmed on its first-quarter call that a second brand aimed above 300,000 yuan is in development, with first products

expected between late 2026 and early 2027, while FAW Group’s 5% stake supports a jointly developed Hongqi model for overseas markets.

Second-quarter deliveries reached 246,332 units, up 83.7%, and first-half deliveries 356,487, up 60.8%.

Source: https://eletric-vehicles.com/stellantis/leapmotor-becomes-first-startup-delivering-100000-vehicles-in-a-single-month/ https://eletric-vehicles.com/stellantis/leapmotor-becomes-first-startup-delivering-100000-vehicles-in-a-single-month/

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Why Mexico Built an $8,500 Electric Car 

The EV market in Mexico has exploded in the last three years, with the vast majority of cars sold there being manufactured in China—90 percent in 2025. However, Mexico is one of the world’s biggest manufacturers of cars and car parts, and policymakers want to capture a piece of the action.

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That’s why the Mexican government launched Olinia, a federally backed effort to develop a homegrown EV brand with engineers and researchers from the country’s public universities and research institutions. Its first vehicle, the Olinia 1, is designed around the needs of the average Mexican driver. Mass production of the Olinia 1 is expected to begin in early 2027 at an assembly plant slated for construction in the state of Puebla later this year.

Surging EV Demand in Mexico

Demand for EVs in Mexico has been pent up, says Gil Tal, director of the Electric Vehicle Research Center at the University of California, Davis. “The demand was there. What changed was the supply,” he says. “Chinese companies were making tons of affordable cars, but they hit a slowdown in demand in China.” Carmakers like BYD and Geely thus dropped their prices and started marketing aggressively in emerging markets like Mexico.

Olinia was spearheaded by the Mexican government’s Secretariat of Science, Humanities, Technology, and Innovation (SECIHTI). Olinia 1’s name comes from “ollin,” meaning “movement” in the indigenous Náhuatl language. The car was unveiled on 7 June when President Claudia Sheinbaum drove a prototype onto the stage during a launch event near Mexico City. Its price tag is a mere 150,000 pesos, or about US $8,500—which aims to be in line with Mexican consumers’ purchasing power. SECIHTI did not respond to requests for comment.)

The car’s specs show it’s not meant to compete directly with EVs from manufacturers such as Tesla or BYD. Olinia has a 14.7-kilowatt-hour lithium iron phosphate (LFP) battery and a 13.5-kilowatt electric motor, giving it a top speed of about 50 kilometers per hour (31 miles per hour) and a range of 125 kilometers (78 miles) per charge. Additionally, it can be charged from an ordinary household outlet.

These numbers are modest by global EV standards, but they’re also deliberate; many of Olinia’s engineering decisions were driven by cost. The car was built for the realities of Mexican cities, which face chronic congestion, limited parking, and transportation networks that often include motorcycles, minibuses, and informal transit services. The government plans to replace many taxis in urban areas with the EV.

“This is what we call a neighborhood car,” says Tal. “You can’t mix it with fast-driving cars on the freeway.” Though this makes the market for the car more limited, he adds, “it’s a good starting point for the technology. It’s more efficient, cheaper, and safer.”

LFP Battery Technology for Affordable EVs

The car’s battery chemistry also reflects these priorities. LFP batteries store less energy per unit weight than nickel-rich chemistries, but they can withstand a large number of charge-discharge cycles. Their lower cost and higher thermal stability make them practical for taxis or delivery vehicles, where durability and affordability can matter more than maximum range. Unlike nickel-manganese-cobalt batteries, LFP batteries don’t require those critical minerals, which add cost and expose manufacturers to supply-chain volatility. (Although the battery, of course, still requires lithium, another critical mineral.) The battery was intentionally kept small in order to reduce the car’s cost and weight.

Olinia is one of the signature projects of Plan México, the Sheinbaum administration’s strategy to strengthen domestic manufacturing and technological capabilities. The initiative aims to cultivate domestic expertise in batteries, power electronics, vehicle integration, and advanced manufacturing—areas that policymakers view as critical to Mexico’s long-term industrial competitiveness. The administration hopes the plan attracts $100 billion in annual foreign direct investment by 2030.

Yet designing and manufacturing an affordable EV is only half the battle. Getting consumers to buy it will require the kinds of supportive policies that helped spur EV adoption in China.

“China’s experience demonstrates that supporting policy can be instrumental,” says Daniel Sperling, director of the UC Davis Institute for Transportation Studies. For Olinia to be successful, Sperling adds, the Mexican government will “need to create incentives for consumers and the manufacturer, including for insurance, registration, taxes, and parking.” The government is planning to carve out a new regulatory category for the car that would cover vehicles topping out near 80 km/h.

Whether or not Mexico’s vision of a domestic EV industry comes to fruition, says Tal, the initiative is a worthwhile step. “In Mexico, most of the industry is international companies, and most of the decisions are being made outside the country,” he says. “Pushing for more affordable vehicles and more local production is the right direction for Mexico to go.”

Source: https://spectrum.ieee.org/mexico-olinia-car-electric-vehicle

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