NGS’ NG/LNG SNAPSHOT – July 16-31, 2021
City Gas Distribution & Auto LPG
MK Stalin unveils Rs 1,700 crore investments by AG&P Pratham
CHENNAI: Chief Minister MK Stalin on Tuesday, july 20, 2021, unveiled city gas distribution (CGD) infrastructure investments worth Rs 1,700 crore for Chennai, Kanchipuram and Chengalpattu districts.
The investments are from AG&P Pratham, the CGD arm of Atlantic Gulf & Pacific (AG&P), Singapore, a leading global downstream gas and LNG logistics company.
The Chief Minister laid the foundation stone for AG&P Pratham’s second city gate and mother station in the State at Vallam-Sriperumbudur, Kancheepuram, and commissioned its first Compressed Natural Gas (CNG) station at Meenambakkam, Chennai. AG&P Pratham’s city gate station will receive natural gas from IOCL’s natural gas pipeline and the mother station will distribute the clean fuel to industrial, commercial and domestic consumers through a Piped Natural Gas (PNG) and CNG distribution network.
Over the next eight years, the company plans to commission 113 CNG stations and instal 11,50,000 domestic PNG connections in Chennai, Kancheepuram and Chengalpattu districts.
33,764 km natural gas pipeline network authorised by petroleum regulator: Govt
NEW DELHI: In a push for cleaner fuel, India’s petroleum regulator has authorised 33,764 km of natural gas pipeline network for the country’s gas grid. According to a petroleum and natural gas ministry’s statement, minister of state RameswarTeli in a written
reply in the Lok Sabha said, “As on 31.03.2021, Petroleum and Natural Gas Regulatory Board (PNGRB) has authorized approximately 33,764 Km Natural Gas Pipeline Network across the country with the aim to create a national gas grid and increase the availability of natural gas across the country.” This comes in the backdrop of India’s push for a gas-based economy. The country consumes around 145 million standard cubic meters a day (mmscmd) of gas.
The PNGRB on its part has authorised 232 geographical areas (GAs) through 10 city gas distribution (CGD) bidding rounds that have covered more than 400 districts spread across 27 states and union territories. This covers around 71% of India’s population and 53% of the country. In addition, PNGRB plans to offer another 44 GAs in the upcoming 11th bid round. Also, a gas exchange has been set up.
Odisha: 75,000 Twin City households to get piped gas by December 2022
BHUBANESWAR : At least 50,000 families in Bhubaneswar and 25,000 in Cuttack will get piped natural gas (PNG) directly supplied to their households by end of next year. GAIL (India) Limited, which has been authorised to operate in
Khurda and Cuttack under the city gas distribution (CGD) project, has set a target to supply PNG to around 75,000 households in the two cities by December 2022 and add 20,000 more connections per year from 2023 onwards.
Started in 2017, infrastructure has been created at an investment of Rs 250 crore to supply piped gas to 20,000 households in the State Capital and 10,000 in Cuttack besides, 16 CNG stations in last four years.
Gas/ Pipelines/ Company News
NGT asks for CNG pipeline plan
Kolkata: A National Green Tribunal (NGT) bench of Justice B Amit Sthalekar (judicial member) and Saibal Dasgupta (expert member) on Monday, july 19, 2021, asked the Greater Calcutta Gas Supply Corporation (GCGSC) to file
affidavit detailing the district-wise action plan for laying gas pipe to bring compressed natural gas (CNG) to Kolkata. The 18 inch-dia gas pipeline and 40 mm HDPE duct to lay optical fibre cable work got affected in Purulia, Bankura, West Burdwan, Hooghly, Howrah, East Midnapore, Nadia and North 24 Parganas, said Subhas Datta, petitioner in the case and a green activist. The bench also asked the government to mention the deadline for permission from the authorities, including Bandel Thermal Power Station (BTPS). The pipeline is supposed to pass through BTPS land to cross the Hooghly.
GAIL issues swap tender to buy and sell LNG over August-December
GAIL (India) Ltd has issued a swap tender offering liquefied natural gas (LNG) cargoes for loading in the United States and seeking cargoes for delivery into India over August to December, two industry sources said on Wednesday, july 22, 2021 .
The state-run natural gas firm has offered to swap a cargo a month over the period in a tender closing on July 26, the sources added. The Indian importer has 20-year deals to buy 5.8 million tonnes a year of US LNG, split between Dominion Energy’s Cove Point plant and Cheniere Energy’s Sabine Pass site in Louisiana.
RIL likely to produce natural gas from MJ field starting Q3FY23
Reliance Industries Ltd (RIL) is likely to produce natural gas from the MJ field of the KG D6 block by the third quarter (October-December) of next fiscal. The company, in an investor presentation, said that the first offshore installation campaign
has been completed and the second offshore installation campaign will commence in November 2021.
Noting that drilling and completion of wells are underway and FPSO and Subsea Production System on track, the presentation said- “First gas expected by 3Q FY23.” Regarding the performance of the oil and gas of the company, the presentation said that significant turnaround in oil & gas business was witnessed with the start-up of a new production system in KG D6. The Q1FY22 domestic production (RIL share) stood at 35.83 BCFE, almost at par with FY20 levels and the revenue was at 10-quarter high.
LNG Development and Shipping
Adani to Cut Fees for LNG-Powered Ships at India’s Mundra Port
NEW DELHI- The Adani Group will offer a 50% discount on charges to liquefied natural gas (LNG)-fuelled ships at Mundra, India’s largest commercial port, according to a notice seen by Reuters, as the country seeks to cut emissions under its green ports plan.
Using LNG to fuel ships allows a significant reduction in CO2 as well as of other forms of pollution compared with conventional shipping fuel. The waiver on port charges would not apply for vessels carrying LNG cargo and using LNG fuel.
AG&P to move natural gas to Sriperumbudur by trucks
AG&P Pratham, which has the rights to supply natural gas to domestic, automotive and industrial consumers of some parts of Chennai, Kancheepuram and Chengalpattu, will move the gas from Indian Oil Corporation’s LNG importation-cum-regassification terminal at Ennore, to its ‘mother station’ at Sriperumbudur, by trucks.
AG&P is the city gas distribution arm of the Singapore-based AG&P group. It has won rights to supply natural gas to 12 ‘geographical areas’ across 35 districts in India, through the December 9, 2018 and February 10, 2019 ‘city gas distribution’ bidding rounds organised by the Petroleum and Natural Gas Regulatory Board.
The company, which has said it would invest ₹10,000 crore in India over the next four years, has begun operations first in Jodhpur, Rajasthan, and Ramanathapuram, Tamil Nadu, by setting up compressed natural gas stations for supply to automobiles. Last week, the Tamil Nadu Chief Minister, M K Stalin, laid the foundation for the mother station at Sriperumbudur.
Natural Gas / Transnational Pipelines/ Others
CANADA: Cheniere (LNG) Inks 15-Year Gas Supply Deal With Tourmaline
Corpus Christi Liquefaction Stage III, LLC, a subsidiary of Cheniere Energy, Inc. LNG, recently signed a long-term gas supply agreement (GSA) with Tourmaline Oil Marketing Corp., a unit of Tourmaline Oil Corp. Canada’s largest natural gas producer.
As per the terms of the agreement, Tourmaline will supply 140,000 MMBtu per day of natural gas to Corpus Christi Stage III for a 15-year period starting early 2023. Cheniere will market the LNG linked with this gas supply, which will be 0.85 million tonnes per annum (mtpa). After deducting fixed LNG transportation expenses and a fixed liquefaction charge, Cheniere will pay Tourmaline an LNG-linked price for its gas, based on the Platts Japan Korea Marker (JKM). On behalf of Tourmaline, Tourmaline Oil Corp. is acting as a GSA guarantor. The Corpus Christi Stage III project is projected to benefit from this Integrated Production Marketing (IPM) deal.
USA, California: CIM Group Invests in Renewable Natural Gas
Los Angeles-based CIM Group has announced a significant investment in an affiliate of MAS CanAm LLC, the holding company for all of the renewable natural gas (RNG) activities undertaken by MAS Energy LLC, a privately
held, Atlanta-based owner, developer and operator of North American RNG production assets and biogas-to-power facilities.
CIM Group and CanAm will look to partner on investments in future RNG projects. MAS Energy has notable experience in the biomethane-to-energy sector, having been involved in 21 projects since 2008. CanAm’s current operating portfolio consists of three facilities, and MAS Energy is developing additional projects that will be added to CanAm’s portfolio, a number of which have advanced to the construction phase.
CIM Group – a community-focused real estate and infrastructure owner, operator, lender and developer – brings experience in waste-to-value industries to MAS Energy. The company is a partner with Bolder Industries, a producer of sustainable plastic and rubber products created from used tires.
Marathon Capital LLC acted as financial advisor to CanAm in the transaction.
FINLAND: HAM completes its first natural gas station in the Nordic region
HAM Group has delivered to Etelä-Savon Energia Oy (ESE) an LNG filling station and satellite plant, which has been designed, built and commissioned by HAM Criogénica. The new facility is located in Mikkeli,
Finland, the most important city in the South Savonia region. The service station has an 80m3 vertical tank and an LNG dispenser that allows the refueling of trucks and heavy vehicles. It should be noted that the plant also acts as a satellite plant offering natural gas to an adjacent factory through forced regasification with a water/glycol and LNG exchanger, and with a double regulation line. The design made by HAM Criogénica allows an easy expansion of the NGV station, with a second LNG dispenser.
The project has been possible thanks to ESE’s commitment to LNG. The Finnish company, which has been providing electricity and heat in the Mikkeli region for more than a century, will offer its customers the possibility of refueling LNG, a clean and environmentally friendly fuel, thanks to the reduction of CO2 emissions, NOx and fine particles. In addition, LNG allows significant savings of 30-50% compared to other less eco-friendly fuels.
USA: Cummins tests hydrogen-fueled internal combustion engine
Cummins Inc. began testing a hydrogen-fueled internal combustion engine. The proof-of-concept test is building on Cummins’ existing technology leadership in gaseous-fuel applications and powertrain leadership to create new power solutions
that help customers meet the energy and environmental needs of the future. Following this trial, the company plans to evaluate the engine in a variety of on- and off-highway applications, supporting their efforts to accelerate the decarbonization of commercial vehicles.
Hydrogen engines offer OEMs and end-users the benefit of adaptability by continuing to use familiar mechanical drivelines with vehicle and equipment integration mirroring that of current powertrains while continuing to provide the power and capability for meeting application needs.
Chevron supports development of hydrogen-powered mobility
Chevron U.S.A. Inc., through its Chevron Products Company division (Chevron), and Cummins Inc. announced a memorandum of understanding (MOU) to explore a strategic alliance to develop commercially viable business opportunities in hydrogen.
The MOU provides the framework for Chevron and Cummins to initially collaborate on four main objectives: advancing public policy that promotes hydrogen as a decarbonizing solution for transportation and industry; building market demand for commercial vehicles and industrial applications powered by hydrogen; developing infrastructure to support the use of hydrogen for industry and fuel cell vehicles; and exploring opportunities to leverage Cummins electrolyzer and fuel cell technologies at one or more of Chevron’s domestic refineries.
Natural Gas / LNG Utilization
USA: Sempra LNG and PGNiG sign MoU
Sempra LNG has announced that it has entered into a memorandum of understanding (MoU) with the Polish Oil & Gas Company (PGNiG) for the potential purchase of approximately 2 million tpy of LNG from Sempra LNG’s portfolio of projects in
North America. As part of the MOU, Sempra LNG and PGNiG are also working toward a framework for the reporting, mitigation and reduction of greenhouse gas (GHG) emissions throughout the LNG value chain.
The MoU is non-binding and was completed in connection with the termination of the parties’ sale and purchase agreement (SPA) signed in 2018 that provided for 2 million tpy of LNG supply to be delivered from the Port Arthur LNG project.
USA: TELLURIAN inks two driftwood LNG deals with SHELL
US natural gas company Tellurian said July 29 it had signed a pair of LNG sales and purchase agreements (SPAs) with Anglo-Dutch major Shell covering 3mn mt/yr from the pending Driftwood LNG project in Louisiana.
Each of the SPAs are for a term of 10 years on a free-on-board basis and are indexed to a combination of both the Japan Korea Marker (JKM) and the Dutch Title Transfer Facility (TTF), netted back for transportation charges. The agreements represent the third deal Tellurian has finalised for Driftwood offtake in the last 10 weeks, committing a total of 9mn mt/yr from the first two 5mn mt/yr trains at the terminal. The integration of Driftwood into Tellurian’s natural gas value chain gives it the ability to accurately measure well loading arm emissions, which fits well with Shell’s commitment to offer CO2-neutral LNG cargos to its customers, Simoes added.
Technological Development for Cleaner and Greener Environment Hydrogen & Bio-Methane
CNG Fuels opens new UK biomethane refuelling station for HGVs
CNG Fuels has opened a new low-carbon heavy-goods vehicle (HGV) refuelling station in Nottinghamshire, UK, allowing vehicles to run on 100% biomethane. The announcement comes as the UK Government sets out plans to
ban the sale of new petrol and diesel HGVs from 2040 under its transport decarbonisation plan. CNG fuels already operates six stations across the UK and plans to open an additional 12-14 stations by the end of 2022.
The new station in Newark is the first to serve the North East region and is capable of refuelling up to 500 vehicles per day, making it one of the biggest stations in the UK, and cutting between 100,000 and 120,000 tonnes of greenhouse gas (GHG) emissions annually, when the station is fully utilised. Most of the UK is already within a 300-mile round-trip of a CNG Fuels renewable biomethane refuelling station and the new site will put the cities of Lincoln and Sheffield within its range, serving local and passing fleets on the A1 north and south.
Singapore LNG Wants to Extract Chemicals from LNG
Singapore LNG Corp, operator of the city-state’s liquefied natural gas (LNG) terminal, is designing a new facility to extract chemicals from the super-chilled fuel, in a project that could help boost the island’s energy security.
The company said on Wednesday, july 28, 2021 it is working with Keppel Infrastructure through its wholly-owned subsidiary Keppel Energy and another industry partner on front-end engineering and design (FEED) for a natural gas liquids extraction facility at the terminal in Jurong Island, located in western Singapore.
The facility will remove heavier hydrocarbons such as ethane or propane from LNG, liquefy them using cold energy from the LNG and deliver the chemicals to plants on Jurong Island as feedstock for petrochemical products, SLNG and Keppel Infrastructure said in the joint statement. If the project went ahead, it would give Singapore more flexibility in the type of LNG it can import, which would, in turn, improve the country’s energy security.