NGS’ NG/LNG SNAPSHOT June 1-15, 2024

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City Gas Distribution & Auto LPG

CNG vehicles on the rise in Coimbatore, consumption of fuel has gone up by 15%

Low cost and high mileage of Compressed Natural Gas (CNG) fuel has led to increase in CNG vehicles in Coimbatore and consumption of CNG fuel has reportedly gone up by 15% CNG has multiple advantages such as low cost and environment friendly, says Damodaran who owns a CNG outlet in Coimbatore. A kg of CNG fuel price fluctuates between ₹78.50 to ₹84 compared to petrol, diesel fuelled vehicles. A kg of CNG gives approximately 20 km whereas petrol and diesel vehicles give only 14 to 15 km, says K. Prasanna who owns a CNG fuelled car.

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In 2021, on an average, ten CNG cars used to be sold whereas now the car sales has touched around 40. To keep pace with the growth of CNG vehicles, outlets that dispense CNG fuel are also on the rise. Compared to the just seven outlets in 2022, there are about 35 outlets in the city now.

Coimbatore city is expected to have more than 5,000 CNG fuelled vehicles. The CNG fuel consumption has risen by 15% and per day CNG consumption is 23 tonnes and by next year it is expected to go upto 50 tonnes.

CNG fuel comes in liquid form in ships to Kochi and from there it takes the gas form and through pipelines, it lands at Pichanur in Madukkarai. From there, the fuel is supplied in lorries to the outlets.

https://www.thehindu.com/news/cities/Coimbatore/cng-vehicles-on-the-rise-in-coimbatore-consumption-of-fuel-has-gone-up-by-15/article68210977.ece

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CNG crisis puts autorickshaw drivers in a fix in Thiruvananthapuram

THIRUVANANTHAPURAM: The deepening crisis in the supply of compressed natural gas (CNG) has left thousands of autorickshaw operators in Thiruvananthapuram in a precarious situation. With around 4,000 CNG-powered autorickshaws operating in the district, drivers who opted for these environment-friendly vehicles are now facing severe hardships due to fuel shortage.

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On Thursday, hundreds of autorickshaw drivers staged a protest in front of the CNG plant of AG&P Pratham, the company responsible for CNG distribution in the region. Lack of cylinder calibration centres in the district is another major issue faced by the drivers.

AG&P Pratham is struggling to bridge the widening gap between supply and demand. This has resulted in long queues at refuelling stations, with drivers often waiting for hours to fill their tanks.

AG&P Pratham is struggling to bridge the widening gap between supply and demand. This has resulted in long queues at refuelling stations, with drivers often waiting for hours to fill their tanks..

Tiji K Thomas, a CNG autorickshaw driver, said that they have been struggling for several weeks now. There are only five refuelling stations in the district. Tiji alleged that one of the five stations functioning at Vazhayila was shut down.

“The crisis worsened after mid-April and all drivers were forced to come to the Veli plant to fill fuel. Sometimes the queue extends from Kochuveli to All Saints College. We waste hours to get our tanks filled,” said Tiji. He said that even after two years, the company has failed to open more fuel stations in the district to meet the growing demand.

Another major challenge being faced by the drivers is the lack of cylinder calibration centres. “Only one centre is available in the state and we have to calibrate our fuel tanks once in three years. We need to get it certified to run the autorickshaws or get fuel from the stations. Dealers are ready to take our cylinders to Alappuzha if we pay a hefty amount but it will take one week to get back the cylinders. This will affect our livelihood,” he added.

Former mayor and district secretary of Auto Taxi Union, K Sreekumar, said that the company should immediately address the issue.

“We intervened in the matter irrespective of political party affiliation as these drivers are struggling for survival. Also, the fuel stations at Veli Plant are still operating till 9 pm. The service should be made available 24 x 7 just like normal fuel stations,” he said.

Meanwhile, an official release issued by AG&P Pratham said that they are actively working to resolve the issue within the next 10 days. “To address this, we are augmenting additional CNG capacity with immediate plans of opening more CNG stations to meet the increased demand,” stated the release.

More CNG stations

An official release by AG&P Pratham stated that they are actively working to resolve the issue within the next 10 days. It stated that a company-owned CNG filling station has become operational in Chackai and that they are planning to open more stations in Parassala, Varkala, Thonnakkal, Nalanchira, Nanniyod and Peroorkada by the end of 2024

https://www.newindianexpress.com/states/kerala/2024/Jun/01/cng-crisis-puts-autorickshaw-drivers-in-a-fix

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Honda offers CNG kits for Amaze, City, Elevate

With rising cost of petrol and diesel and stricter emission norms, compressed natural gas (CNG) has become a very popular choice of fuel for people who desire for better fuel efficiency at a low cost. Fully electric vehicles are still out of reach for most car buyers in India due to high initial cost of ownership.

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That said, only a handful of OEMs in India offer factory-fitted CNG-powered cars and Honda is not one of them. Unlike its immediate rivals, Honda is now offering an aftermarket CNG kit ‘officially’, which means that this CNG kit is not factory-fitted and is offered at dealer level. A video highlighting the same was recently released on YouTube by automotive vlogger Anubhav Chauhan.

Honda CNG kits

Interested buyers can opt for a CNG kit in the manual variants of the Amaze by paying an additional amount ranging from Rs. 75,000 to Rs. 85,000. Moreover, dealerships are also offering a one-year warranty on the CNG installation. Notably, the CNG kit fitted in the Amaze belongs to the Lovato, a very popular brand in the aftermarket.

Chauhan further mentions in his vlog that this CNG kit can be retrofitted in other Honda models including City, and Elevate. The CNG kit includes a 60-litre CNG kit which is to be kept in the boot, thus compromising the on the boot space to some extent. However, the Japanese carmaker is yet to officially release a statement on the new aftermarket CNG kit.

Honda Amaze specs & price

Honda offers Amaze in two trims—  S and VX in addition to the Elite edition. The compact sedan is priced between Rs 7.93 lakh and Rs 9.86 lakh (ex-showroom). It is powered by a 1.2-litre NA petrol engine that pushes out 89 bhp and 110 Nm of peak torque. This unit is paired with either a 5-speed manual transmission or a CVT.

https://www.financialexpress.com/auto/car-news/honda-offers-cng-kits-for-amaze-city-elevate/3515567/

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Natural Gas/ Pipelines/ Company News

 

Adani Total mulls to build more plants for LNG import

Adani Total, a joint venture between Adani Group and TotalEnergies, is considering building more plants in India to import liquefied natural gas (LNG) to meet the growing demand for the clean fuel.

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The company has a plan to double the capacity of its five-million tpa Dhamra LNG terminal in Eastern India. the terminal is operating at about 52 percent capacity. It is expected that Dhamra LNG plant will operate at full capacity by 2026 or 2027.

Meanwhile, Adani Total Gas is also setting up a green hydrogen and blending pilot project in Ahmedabad, Gujarat, for which work has already commenced.

https://www.projectstoday.com/News/Adani-Total-mulls-to-build-more-plants-for-LNG-import#:~:text=Adani%20Total%2C%20a%20joint%20venture,LNG%20terminal%20in%20Eastern%20India.

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Petronet LNG reports 20% spike in Q4FY24 riding on higher imports of LNG volumes

India’s largest liquefied natural gas importer, Petronet LNG Ltd, reported a 20% spike in the March quarter net profit on the back of importing higher LNG volumes. Further, for the entire Financial Year 2023-24 (FY24), Petronet reported highest-ever net profit of Rs 3,536 crore on the back of a 22% growth in volume throughput

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Company’s overall LNG volume processed in the current financial year was 919 TBTU, as against the LNG volume processed in the previous financial year, which stood at 752 TBTU, it said in a statement.

The company said that during the current fiscal, Dahej terminal processed 865 TBTU of LNG as against 704 TBTU processed during the previous financial year ended 31 st March, 2023.

Petronet LNG Ltd reported PBT of Rs 996 Cr in the current quarter, as against Rs 1,597 Crore in the previous quarter and Rs 818 Cr in the corresponding quarter.

The PAT of the current quarter is reported at Rs 738 Cr as against the PAT of the previous and corresponding quarters of Rs 1,191 Cr and Rs 614 Cr respectively.

The Company has reported highest ever PBT and PAT of Rs 4,757 Cr and 3,536 Cr in the current financial year as against Rs 4,335 Cr and Rs 3,240 Cr respectively in the previous financial year.

Speaking on the results, Petronet MD & CEO Akshay Kumar Singh, said, “The company was able to achieve robust financial results riding on stable LNG prices and achieving efficiency and optimization in its operation.”

Considering the robust performance, the Board of Directors of the Company has approved a final dividend of Rs 3 per share.

https://www.msn.com/en-in/money/markets/petronet-lng-reports-20-spike-in-q4fy24-riding-on-higher-imports-of-lng-volumes/ar-BB1mYISR

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Indian Army Partners with IOCL for Green and Sustainable Transport Solutions

In recent months, the Indian Army has taken big steps toward using environmentally friendly and sustainable transportation in its activities. A relationship with the Indian Oil Corporation Limited (IOCL), which was made official by signing a Memorandum of Understanding (MoU), is a big part of this project.

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Details of the MoU and Partnership

Both the Army Chief, General Manoj Pande, and the Chairman of IOCL, Shrikant Madhav Vaidya, were there when the deal was finally signed. The main goal of this MoU is to encourage new ideas and use clean transportation methods. A real result of this relationship was that the Army got a hydrogen fuel cell bus at a special event. People are calling this partnership a big deal because it’s the start of a “mutually beneficial partnership.”

Previous Steps Towards Green Energy

This green transportation project is not the first time the Indian Army has tried to be more environmentally friendly. The Indian Army set a standard when it signed another MoU with the National Thermal Power Corporation Renewable Energy Ltd. on March 21, the previous year. According to the first deal, green hydrogen-based microgrid power plants will be put up along India’s northern borders. A 200-kilometer green hydrogen microgrid is being built as part of a pilot project at Chushul. This will provide clean energy 24 hours a day to troops stationed in difficult terrain and harsh weather.

Facts about  Indian Oil Corporation Limited (IOCL):

Indian Oil Corporation Limited (IOCL) was founded in 1959 and is India’s largest commercial oil company.

IOCL ranks 151st on the Fortune Global 500 list as of 2020.

The company operates 11 out of India’s 23 refineries.

IOCL has an extensive network of over 47,800 customer touchpoints.

In 2020, IOCL launched India’s first hydrogen-spiked compressed natural gas (HCNG) plant.

IOCL is targeting the integration of 260 MW of renewable energy by 2024.

IOCL introduced India’s first electric vehicle charging station in Nagpur in 2017.

The company sponsors many sports, including cricket, hockey, and adventure sports.

IOCL actively supports the Indian Olympic Association.

https://www.gktoday.in/indian-army-partners-with-iocl-for-green-and-sustainable-transport-solutions/

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Policy Matters/ Gas Pricing/ Others

Govt offers two discovered oil and gas fields in special bidding round

The government has offered two discovered oil and gas fields in Mumbai offshore and a coal bed methane field in West Bengal for bidding in the latest Discovered Small Fields (DSF) bid round, regulator DGH said on Monday.

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In a notice on its website, the Directorate General of Hydrocarbons (DGH) said, notice inviting offer will be launched on May 28 and bids will close on July 15.

“With the objective to augment domestic production of Petroleum and Natural Gas, the Ministry of Petroleum & Natural Gas, Government of India announces the Special DSF Bid Round offering two (02) Discovered Small Field located in Mumbai Offshore (MB/OSDSF/C37/2024 & MB/OSDSF/B15/2024) and one (01) Discovered Coal Bed Methane field located in West Bengal (SR-ONCBM (Raniganj)-2024) through International Competitive Bidding (ICB),” it said.

It however did not give details like reserves. Those may be included in the NIO.

DSF was launched in 2016 and since then three rounds have been held. In the first round, 67 discovered oil and gas fields that were clubbed into 46 contract areas were awarded. These fields had an inplace resource potential of 45 million tonnes of oil and oil equivalent gas.

DSF-II in August 2018 offered 25 contract areas that were made up of 59 fields. These had an inplace resource potential of 190 million tonnes of oil and oil equivalent gas.

In June 2021, DSF-III offered 32 contract areas, comprising 75 fields with inplace resource potential of 232 million tonnes of oil and oil equivalent.

https://www.business-standard.com/industry/news/govt-offers-two-discovered-oil-and-gas-fields-in-special-bidding-round-124052701145_1.html

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PNGRB withdraws notices to declare 54 city gas networks as common carrier

The Petroleum and Natural Gas Regulatory Board (PNGRB) has withdrawn notices to declare city gas networks in 54 licensed areas as common carriers, which would help end a legal tussle between the regulator and the affected city gas distributors.

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In April, the PNGRB had repealed its previous guideline on declaring networks as common carriers, which had formed the basis for notices to 54 city gas licensees in 2021, and replaced it with a new guideline. Since the old guideline was repealed, it decided to withdraw all those notices, the regulator said.

City gas licensees have been fighting the PNGRB in court over those notices. The withdrawal of notices will automatically persuade companies to pull out the cases, people familiar with the matter said. The regulator, however, may again move to declare the networks in the licensed areas that have long exceeded their exclusivity period as common or contract carriers, as it would be necessary to bring in fair competition among suppliers, cut costs for consumers, and enhance gas consumption in the country, the people said. India has set a goal of increasing the share of natural gas in the primary energy mix to 15% by 2030 from the current 6%. Any future attempt by the PNGRB to declare the city gas network as a common carrier too may get challenged in court as giving up monopoly means erosion of profit for licensees, an industry executive said. In March, oil minister Hardeep Puri said the full benefit of the reforms in the natural gas sector had not reached the end customer and that the government would take all measures to ensure compliance by city gas companies. The exclusivity period for both Delhi and Mumbai expired in 2012, according to PNGRB’s 2021 notice. Indraprastha Gas is the licensee for Delhi and Mahanagar Gas for Mumbai. Adani Total Gas‘ exclusivity for Ahmedabad expired in 2016 and Indian Oil-Adani Gas‘s exclusivity for Chandigarh ended in 2018, as per the PNGRB.

Licensees enjoy two kinds of exclusivity, according to the April PNGRB guideline. The first gives them exclusive rights to lay, build and expand supply infrastructure, and the second bars other suppliers from using that infrastructure. The second, also referred to as marketing exclusivity, is available for 6-8 years, after which a licensee’s supply network can be declared a common carrier, opening the doors for other suppliers to that market.

https://economictimes.indiatimes.com/industry/energy/oil-gas/regulator-now-says-city-gas-networks-not-common-carriers/articleshow/110645301.cms?from=mdr

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Bringing natural gas under GST will lead to faster adoption: Oil secy

Taxation on natural gas remains key to increasing the use of natural gas in the economy, and the government is ‘cautiously optimistic’ about bringing the fuel within the fold of the Goods and Services Tax (GST) regime in 2024-25, Petroleum Secretary Pankaj Jain said on Wednesday.

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Speaking at an online seminar on India’s natural gas and LNG sectors by the International Energy Agency (IEA) and the Petroleum Ministry, Jain said bringing natural gas under the ambit of the GST regime would accelerate the shift towards natural gas.

“One big challenge for us continues to be the taxation on gas. Domestic taxes on natural gas are still a work-in-progress. That is affecting the use case for natural gas,” Jain said.

He said the government is optimistic about cracking the GST issue in the current year. “We are a federal country. So, it involves negotiations with states and persuading them, and bringing them on board. It is something we are working on. We are cautiously optimistic that we should be able to come up with some kind of resolution around this in 2024-25. If we are able to do that, you will find that the switch from less clean fuels to natural gas starts to make economic sense, and not just moral sense,” he stressed.

While he didn’t give a timeline, the Secretary said the government is working on it. “It is something which we anticipate. We should be able to make substantial progress during the course of the year,” Jain said.

Natural gas is currently outside the ambit of GST, and existing legacy taxes—central excise duty, state VAT, central sales tax—continue to be applicable on the fuel.

Terming taxation as the final element yet to fall into place, Jain said all the other elements, including infrastructure, distribution, and pipelines, are in place.

India has set a target of raising the share of natural gas in the country’s primary energy basket to 15 per cent by 2030, up from the current 6.7 per cent.

https://www.business-standard.com/economy/news/bringing-natural-gas-under-gst-will-lead-to-faster-adoption-petroleum-secy-124052901585_1.html

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LNG Use / LNG Development and Shipping

LNG terminals get busier as imports balloon

India‘s liquefied natural gas (LNG) import terminals got busier last fiscal as imports rebounded amid easing of global gas market turbulence seen in the previous two years. Capacity utilisation at most import terminals increased during the year, with utilisation rising to 95% from 78% in FY23 at India’s largest import terminal at Dahej, showed oil ministry data. Petronet LNG operates the Dahej terminal in Gujarat. Its other terminal at Kochi operated at 21% capacity in FY24, up from 19%.

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GAIL‘s terminal at Dabhol in Maharashtra recorded 43% utilisation, up from 39%, while Indian Oil‘s terminal at Ennore in Tamil Nadu improved performance to 18% from 13%.

Adani Total‘s terminal at Dhamra in Odisha operated at 27% in its first year of operation in 2023-24. Capacity utilisation, however, fell at import terminals at Hazira and Mundra in Gujarat. Shell‘s Hazira terminal operated at 30%, lower than 37% in the previous year, while GSPC LNG‘s Mundra operated at 15%, falling from 16%.

India’s LNG imports rose 19% to 31 billion cubic meters last fiscal, helping drive capacity utilisation at LNG terminals. Imports had fallen 15% to 26 billion cubic meters in FY23.

Post-pandemic recovery and the Ukraine war had created turmoil in the global gas market in the previous two years, constraining supplies and sending prices skyrocketing. This impacted India’s gas imports in 2022-23. With calm returning to global markets and prices becoming more affordable for Indian buyers, imports have risen.

India has about 40 million tonnes per annum (mtpa) of LNG import capacity, with only one of the seven terminals operating above 50% capacity. Five operate at 30% or below capacity, primarily due to poor evacuation facilities.

However, expectation of higher LNG demand in the future is enticing companies into making new investments in the sector, with import capacity expected to swell to 67 mtpa over the next few years.

Petronet is aiming to add another 5 mtpa capacity to its 17.5 mtpa facility at Dahej by next year. It also aims to build a new terminal of 4-5 mtpa capacity at Gopalpur in Odisha over the next three years, which would compete with Adani-Total’s Dhamra facility.

GAIL is in the process of adding a breakwater facility at its Dabhol terminal, which will help it fully use its 5 mtpa capacity.

https://economictimes.indiatimes.com/industry/energy/oil-gas/lng-terminals-get-busier-as-imports-balloon/articleshow/110474029.cms?from=mdr

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Shell focuses on enabling LNG-based mobility in India, set to foray into CBG

New Delhi: Shell India is seeking to play a major role in attempts to build a green transport ecosystem in the country by displacing diesel – one of the dirtiest fuels — with liquified natural gas, or LNG.

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In addition, alongside its conventional focus on LNG, it may also make a foray into compressed biogas as it looks to expand its footprint in India’s clean energy ecosystem.

In an interview, Nakul Raheja, country head, Shell Energy India said that easing LNG prices over the past several months have led to a greater interest from all stakeholders for increasing the network of LNG suppliers for transport. 

Among vehicles, LNG is mostly used by heavy-duty and long- haul trucks.

“We are very excited by the opportunities emerging in the gas market in the next few years. We were one of the early movers in the gas market by taking up a position in Hazira (Gujarat) and setting up the Hazira LNG terminal nearly 20 years ago now. Three-and-a-half years ago we added a truck loading unit at Hazira which allows us to send out LNG which serves not only industrial customers but feeds into the network which is coming up for LNG as a transport fuel,” Raheja said.

He said there was an “incredible opportunity” in India to displace diesel with LNG in heavy duty vehicles.

“And we see this as a multi-million dollar market over the next 10 years and that requires more import of LNG and the creation of downstream infrastructure to dispense that LNG as well as the availability of trucks that can run on LNG and that entire ecosystem is now working at pace to make that opportunity happen over the next few years.”

He noted that in the past few months there has been increasing interest in the entire ecosystem, including investors, LNG stations, OEMs (original equipment manufacturers) who would manufacture LNG-fueled vehicles, retrofitters who would convert diesel-fueled trucks into LNG-fueled trucks, LNG suppliers and the government.

“A big driver for this is that the LNG prices are now back in the range where they make sense for the customer. There is a lot of energy being put into this space. More and more sites are getting commissioned which can dispense LNG,” he said.

Spot Asian prices of LNG current hover in the range of $10-12 per mmBtu (million metric British thermal units), compared with about $18-19 per mmBtu a year ago. Going ahead, in the next year or two prices may ease further with supplies coming in from LNG capacities coming up in the US and Qatar.

To expand its portfolio of offerings in India’s gas ecosystem, Shell is also looking at entering the compressed biogas (CBG) space.

“We are also tracking developments in the compressed biogas space or renewable natural gas to see how we can add that to our portfolio as well and have our gas customers look to further decarbonize their gas supply chain how could we introduce CBG as part of that. 

A lot of our customers are switching to gas as it makes both economic sense and helps reduce their carbon footprint. As they go forward they make look for solutions which may help in further reduction in their carbon footprint and CBG plays a role in that space,” he said.

He noted that Shell is already a major player in the CBG space after its acquisition of Natured Energy, a CBG producer in Europe in February last year.

“As the needs of the Indian customers evolve we want to be ready with offerings in this space as well for our customers. So, its basically its a strategy that’s driven sure by customer’s needs, and making sure we have got something that’s relevant to them when they need it,” Raheja said.

CBG is produced from agricultural residue, cattle dung, solid waste, sewage treatment and other such waste or biomass. It is similar to compressed natural gas (CNG) and can be used as a green fuel in industries and automobiles. It is also gaining massive interest as the government has mandated its blending with CNG and piped natural gas (PNG) starting FY26.

On the plans for the company to expand capacity of the Hazira LNG terminal, at Hazira port in Gujarat, Raheja said that there are no concrete plans as yet but as the demand grows the company would look at expanding its role in the value chain.

“Hazira is an excellent location for an LNG terminal. Hazira has the scope and the space to expand even beyond 20 million tonnes. As demand grows in the country, we are working on various growth opportunities to see how we can expand that role Hazira plays in that value chain.”

https://www.livemint.com/companies/news/shell-focuses-on-enabling-lng-based-mobility-in-india-set-to-foray-into-cbg-11716897198944.html

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Kochi Port Welcomes First LNG-Powered Container Ship

The Vallarpadom Container Terminal at Kochi made history as it “turned green” with the arrival of a 365-meter-long container carrier, the MSC ROSE. This significant event marks the first time a container ship powered by Liquefied Natural Gas (LNG) has docked at the port, ushering in a new era of eco-friendly maritime operations.

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Captain Bhaskar Kunji, chief pilot of Kochi Port Trust, proudly noted the transition from conventional diesel to LNG, emphasizing its environmental and efficiency benefits. “This is a game changer in the global shipping business,” Kunji said. Unlike diesel, LNG is less polluting and more fuel-efficient, with the added advantage that ships can switch to diesel if LNG supplies are exhausted mid-voyage.

The MSC ROSE, owned by the Aponte family and headquartered in Switzerland, has a cargo capacity of 15,500 TEUs (Twenty-Foot Equivalent Units). Each TEU corresponds to the volume of a standard 20-foot intermodal container. According to Kunji, this vessel is just the beginning, with even larger container carriers expected to arrive in India, reflecting the nation’s growing importance in global trade.”This development is a good reason for all to turn green and go green,” remarked a shipping executive from a foreign company, highlighting the broader implications of this shift towards sustainable fuel in the maritime industry. As India continues to play a major role in global commerce, the adoption of LNG-powered ships at its ports symbolizes a commitment to greener and more efficient trade practices.

https://www.constructionworld.in/transport-infrastructure/ports-and-shipping/kochi-port-welcomes-first-lng-powered-container-ship/55979

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Abu Dhabi’s Adnoc offers India stake in its upcoming LNG liquefaction terminal

If concluded, this would be India’s first equity stake in an overseas LNG terminal, adding heft to its energy-security efforts. In a related development, Indian Oil Corp plans to sign a long-term LNG deal for one million metric tonnes per annum of clean fuel from Adnoc. New Delhi: State-run Abu Dhabi National Oil Company (Adnoc) has offered India a stake in its upcoming LNG liquefaction terminal at Ruwais in Abu Dhabi. In a related development, Indian Oil Corp Ltd (IOC) plans to sign a long-term LNG deal to buy one million metric tonnes per annum (mmtpa) of clean fuel from Adnoc, said two people aware of the development.

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If concluded, this would be India’s first equity stake in an overseas LNG terminal, adding heft to energy-security efforts by the world’s third-largest energy consumer. The development comes amid a growing partnership between India and the UAE, an OPEC member. Prime Minister Narendra Modi has visited the country seven times in the past nine years and UAE President Sheikh Mohamed bin Zayed Al Nahyan has visited India four times. India has also signed a free-trade agreement with the UAE.

“Conversations are on at the government-to-government level,” said one of the two people cited above.

The LNG project at Al Ruwais Industrial City will have two 4.8-mmtpa LNG liquefaction trains with a total capacity of 9.6 mmtpa. This will double Adnoc’s LNG production capacity to around 15 mmtpa. Adnoc has already signed three LNG agreements from the project with Germany’s SEFE Marketing & Trading Singapore Pte Ltd, EnBW Energie Baden-Württemberg AG (EnBW), and China’s ENN Natural Gas.

An Adnoc spokesperson wrote in an emailed response to Mint’s queries, “We don’t comment on market speculation,” adding, “Adnoc’s lower-carbon Ruwais LNG project continues to progress toward the final investment decision, expected this year.”

India imports around 55% of its gas requirement to meet the growing demand from its fertiliser, power, and city gas distribution sectors. According to the Petroleum Planning and Analysis Cell (PPAC), India’s LNG imports increased 17.5% year-on-year by volume in FY24 to 23.5 mmtpa.

LNG deal aimed at bolstering imports

“Indian Oil Corp will also sign a long-term LNG deal to buy 1 mmtpa from Adnoc,” said one of the people cited above. IOC had earlier signed an agreement with Adnoc for the supply of 1.2 mmtpa of LNG from 2026.

The proposed deal is part of India’s efforts to fortify its imports of LNG. IOC previously signed a long-term contract with France’s TotalEnergies for 1 mmtpa of LNG for around 10 years, as Mint reported. Petronet LNG also extended its contract with QatarEnergy LNG in February by signing a long-term deal for 7.5 mmtpa of LNG.

“This is about securing a toe-hold outside the country. It will help Indian state-run firms become world-class companies. Adnoc has been a good partner and has been offering India opportunities. The relationship between the two governments at the highest level has helped,” said one of the people cited above.

With a growing presence in India’s energy security architecture, Adnoc is the only company to commit to India’s strategic crude oil reserve programme to date. In February 2018, an Indian consortium comprising ONGC Videsh, Indian Oil Corp and Bharat PetroResources Ltd was awarded a 10% participating interest in Abu Dhabi’s offshore Lower Zakum Concession – a first for India. 

Additionally, a consortium comprising Bharat Petroleum Corp Ltd (BPCL) and IOC was awarded the exploration rights for the Abu Dhabi Onshore Block 1. Adnoc was also interested in picking up a 25% stake in the ill-fated largest global refinery and petrochemicals complex proposed at Ratnagiri in Maharashtra, which hit the skids because of farmers’ protests.

Queries emailed to spokespersons for India’s ministry of petroleum and natural gas and IOC did not elicit a response.

Also read: India’s crude oil consumption up 4.6% in FY24, output rises marginally at 0.6%, imports steady: PPAC

India has been actively courting the UAE, which has the world’s sixth crude reserves and seventh-largest natural-gas reserves, and supplies 6% of India’s crude-oil imports. At three million barrels per day, Adnoc is the world’s 12th largest producer of crude oil.

The push for long-term contracts has gained momentum since the gas market saw volatility in 2022 due to the Russia-Ukraine war; as Russia’s Gazprom, the world’s largest explorer of natural gas, failed to honour the terms of a deal to supply LNG to GAIL (India) Ltd. A former Gazprom subsidiary, Gazprom Marketing and Trading Singapore, had signed an agreement with GAIL to supply 2.5 million tonnes of LNG per annum for 20 years, starting 2018-19.

https://www.livemint.com/industry/agriculture/foodgrain-output-for-2023-24-estimate-at-329mt-a-tad-lower-than-last-year-11717505868644.html

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Electric Mobility/ Hydrogen/Bio-Methane

ONGC inks MoU with EverEnviro to set up 10 CBG plants

ONGC has inked a Memorandum of Understanding (MoU) with EverEnviro Resource Management on 29 May 2024 to establish 10 Compressed Biogas plants across India to reduce India’s reliance on imported gas and boost domestic renewable energy production.

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The 50:50 joint venture between ONGC and EverEnviro aligns with the Government of India’s initiatives, including the Global Biofuels Alliance, and NetZero carbon emissions by 2070.By harnessing diverse feedstocks such as agricultural waste, agro-industrial waste, energy crops, and municipal solid waste (MSW), the partnership aims to mitigate approximately 7.5 lakh tons of CO2 equivalent annually.

https://www.indianchemicalnews.com/energy/ongc-inks-mou-with-everenviro-to-set-up-10-cbg-plants-21978#:~:text=ONGC%20has%20inked%20a%20Memorandum,boost%20domestic%20renewable%20energy%20production.

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GAIL’s 10 MW Green Hydrogen Plant inaugurated by Secretary, MoPNG

Vijaipur (Madhya Pradesh), May 25, 2024: Marking a major step towards foraying into new and alternate energy and inline with the National Green Hydrogen Mission, GAIL (India) Limited has installed its first Green Hydrogen Plant at GAIL Vijaipur in Madhya Pradesh, which was inaugurated by Secretary, Ministry of Petroleum & Natural Gas, Pankaj Jain, in an event organized today, wherein GAIL Chairman and Managing Director Sandeep Gupta, Director (Projects) Deepak Gupta, Director (Human Resources) Ayush Gupta and other Senior Officials were also present.

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This Green Hydrogen plant is having a capacity of producing 4.3 TPD of Hydrogen, through 10MW PEM (Proton Exchange Membrane) Electrolyzer units, by electrolysis of water using renewable power. The purity of hydrogen from this plant shall be 99.999% (by vol.) and will be produced at a pressure of 30 Kg/cm2.

Initially the hydrogen produced from this unit shall be used as a fuel along with Natural Gas for captive purpose in the various processes and equipment running in the existing plant at Vijaipur. Further, this hydrogen is planned to be dispensed to retail customers in the nearby geographies, transported through high pressure cascades.

Besides sourcing renewable power through open access, GAIL is also setting up around 20 MW Solar power plants at Vijaipur (both Ground Mounted and Floating) to meet the requirement of green power for the 10 MW PEM Electrolyzer.

https://www.sarkaritel.com/gails-10-mw-green-hydrogen-plant-inaugurated-by-secretary-mopng/#:~:text=Vijaipur%20(Madhya%20Pradesh)%2C%20May,inaugurated%20by%20Secretary%2C%20Ministry%20of

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Army to develop hydrogen fuel cell tech for e-mobility

New Delhi: The Indian Army has set its sight on deploying hydrogen fuel cell technology for heavy-duty e-mobility, even as the force on Monday received a state-of-the-art green hydrogen fuel cell bus for use in Delhi from IndianOil, India’s largest state-run refiner and fuel retailer.

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The two sides also signed an MoU for testing and deployment of hydrogen fuel cell technology for heavy-duty e-mobility at the National War Memorial, India Gate, in the presence of army chief, Gen. Manoj Pande, and IndianOil chairman S M Vaidya.

The trial run of the hydrogen fuel cell bus is the latest in a series of sustainability and green initiatives taken by the Army, a large consumer of hydrocarbons, to reduce its carbon footprint. The initiatives range from tapping renewable energy sources to planting trees and moderating energy use through increased efficiency.

Hydrogen fuel cell bus is one of several initiatives IndianOil is carrying out in the new-age mobility solutions, including a joint venture with an Israeli startup Phinergy or aluminium-air batteries.

“The Indian Army is committed to exploring and adopting innovative technologies that enhance our operational capabilities while ensuring environmental sustainability. We will be testing one of the hydrogen buses, and I must thank IndianOil for choosing the Indian Army as their partner,” he said.

Describing the collaboration with the Army as a “landmark step towards a greener and more sustainable future,” Vaidya said IndianOil is currently operating 15 fuel cell buses in the Delhi-NCR region, accumulating a total mileage of 3,00,00 km.

The project will assess the performance of fuel cell electric buses for public transit in the demanding climatic conditions of the Delhi-NCR region, analyzing the impact of local fuel and air quality on the performance of fuel cell systems and vehicles. It will also evaluate the effectiveness, longevity, and operational reliability of fuel cell buses intended for public fleet utilisation.

A company statement said the initiative marks a pivotal step in the journey towards sustainable transportation, setting a precedent for future collaborations aimed at advancing green hydrogen and fuel cell technologies in India.

We also published the following articles recently

Indian Army eyes hydrogen fuel cell tech for heavy-duty mobilityThe Indian Army, with Gen. Manoj Pande as the chief, tested a hydrogen fuel cell bus at the National War Memorial, India Gate, as part of sustainability initiatives.110472442

Why India wants green hydrogen as fuel to reduce fossil-fuel emissions, meet clean energy needsCountries aim for net-zero carbon emissions by 2050, driving adoption of carbon-free fuels like hydrogen. Jules Verne’s 1874 prediction of water as future fuel is coming true.107689476

HOW GREEN IS TNS HYDROGEN?Tamil Nadu, Karnataka, Gujarat, and Odisha are competing in green hydrogen projects. Tamil Nadu has a green hydrogen policy with significant investments in Tuticorin. The state aims to be a major contributor to India’s green hydrogen target by 2030.110444525

https://timesofindia.indiatimes.com/city/delhi/indian-army-to-develop-hydrogen-fuel-cell-technology-for-e-mobility/articleshow/110476995.cms#:~:text=Army%20to%20develop%20hydrogen%20fuel%20cell%20tech%20for%20e%2Dmobility&text=The%20two%20sides%20also%20signed,and%20IndianOil%20chairman%20S%20M%20Vaidya.

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Rules eased for Green H2 producers in SEZs

India Tuesday exempted solar and wind energy plants located in a special economic zone, or export-oriented units for production of green hydrogen and its derivatives that are also in the same zone, from buying modules and turbines from the approved list of models and manufacturers.

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The exemption will apply to the renewable energy plants to be commissioned by December 2030 to produce green hydrogen and its derivatives, according to a notification by the ministry of new and renewable energy on Tuesday.

“Green hydrogen producers will get cheaper equipment with duty benefit. The industry had been demanding this for some time,” a government official said.

The notification was issued with prior approval from the Election Commission of India, Ministry of New and Renewable Energy Secretary Bhupinder Singh Bhalla told ET.

The government reimposed restrictions on import of solar modules from this financial year after a relaxation in the last because of insufficient domestic capacity.

It had earlier exempted solar projects commissioned by March 31, 2024, from the mandatory requirement of procuring solar modules from the approved list of models and manufacturers (ALMM) for 2023-24. The mandate, introduced in 2021, required solar project developers to buy modules from the approved list as a non-tariff barrier to boost domestic manufacturing. Similarly, the revised list of models and manufacturers is the list of type and quality certified wind turbine models eligible for installation in the country.

“The exemption is no different from any other SEZ benefits and was anticipated,” said Sujoy Ghosh, managing director-India, First Solar.

The National Green Hydrogen Mission aims to develop green hydrogen production capacity of at least 5 million tonnes per year with an associated renewable energy capacity addition of about 125 GW in the country.

https://economictimes.indiatimes.com/industry/renewables/rules-eased-for-green-h2-producers-in-sezs/articleshow/110508644.cms?from=mdr

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Electricity trade volumes on IEX jumps nearly 29 pc to 10,633 mn units in May

New Delhi: Indian Energy Exchange’s (IEX) overall trade volume grew nearly 29 per cent to 10,633 million units (MU) in May against 8,251 MU in the year-ago period. The electricity (trade) volumes at 9,568 MU increased 21 per cent year-on-year, an IEX statement said.

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According to the statement, IEX achieved a monthly overall volume of 10,633 MU in May 2024, marking a 28.9 per cent year-on-year increase.The renewable energy certificates (REC) increased 640.3 per cent year-on-year to 1,055 MU.A total of 10.55 lac RECs (equivalent to 1,055 MU) were traded in the trading sessions held on May 8 and May 29 at a clearing price of Rs 185/REC and Rs 165/REC, respectively.

At Rs 165 per certificate, the REC market recorded an all-time low price in the trading session held on May 29, 2024.

Theseprices provide an opportunity for obligated entities (Discoms and captive power producers) to meet their renewable purchase obligations and for voluntary customers to meet their sustainability aspirations.

Proactive measures taken by the government and the regulators, including the sale of surplus un-requisitioned power on power exchanges, increased fuel supply and ensuring higher availability of generating units led to an increased sell liquidity on the exchanges, which kept the prices under control on the trading platforms, it explained.

Therefore, it stated that despite the increase in electricity consumption, the market clearing price in the Day Ahead Market during May 2024 was Rs 5.3/unit, lower by more than 20 per cent compared to prices discovered under bilateral contracts.

Notably, it stated that on May 30, 2024, the country witnessed an all-time high peak demand of 250 GW along with the highest ever single-day energy consumption of 5,466 MU.

The Day-Ahead Market (DAM) volume increased to 4,371 MU in May 2024 from 4,066 MU in May 2023, registering an increase of 7.5 per cent year-on-year.

The Real-Time Electricity Market (RTM) reported the highest-ever monthly traded volume in May 2024.

The RTM volume increased to 3,352 MU in May 2024 from 2,424 MU in May 2023, registering an increase of 38.3 per cent year-on-year.

On average more than 100 MUs were traded daily in the RTM segment in May 2024.

Day Ahead Contingency and Term-Ahead Market (TAM), comprising contingency, daily & weekly and monthly contracts up to 3 months, traded 1,221 MU during May 2024, higher by 15.4 per cent year-on-year.

The IEX Green Market, comprising the Green Day-Ahead and Green Term-Ahead Market segments, achieved 622.2 MU volume during May 2024 compared to 357.7 MU in May 2023, registering an increase of 73.9 per cent year-on-year.

https://economictimes.indiatimes.com/industry/energy/power/electricity-trade-volumes-on-iex-jumps-nearly-29-pc-to-10633-mn-units-in-may/articleshow/110746074.cms?from=mdr

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INTERNATIONAL NEWS

Natural Gas / Transnational Pipelines/ Others

Bangladesh: Gas discovered in Kailashtila

The discovery of new gas reserves is undoubtedly a good news for the nation as it will help boost the country’s industrial and electricity production. State-owned Bangladesh Petroleum Exploration and Production Company Limited (Bapex) has found new gas reserves in well No-8 of Kailashtila Gas Field in the country’s gas-rich Sylhet region.

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With the new discovery, gas has been found in four wells of Sylhet in the last seven months. Since January last year, Bapex started digging well no-8 of Kailashtila Gas Field.

Gas has been found at a depth of 3,440 to 55,000 feet and now 21 million cubic feet of gas is being extracted daily from the field on an experimental basis. Bapex officials hope that they would be able to go into operation in full swing within next three months.

According to officials concerned, the SGFL authorities have been continuing the exploration and drilling of wells in Sylhet since last year. As a part of that, the excavation work in Kailashtila well no-8 started in early 2023 spending about Tk 150 crore. About 100 million cubic feet of gas is now being added to the national grid from production wells of Sylhet Gas Field Limited.

Gas has been found at a depth 

of 3,440 to 55,000 feet

The country has now a stock of some 10 trillion cubic feet of natural gas. The country’s stock of gas reserves will be exhausted in 10 years at the current rate of production, according to energy ministry.

The fresh discovery of gas reserves will play a crucial role in meeting the demand as reserve of natural gas is declining gradually. 

We appreciate the Bapex that is accelerating the oil and gas exploration and production activities in the country. According to the government’s power system master plan, Bangladesh will require 3,150 mmcfd of gas per day for power generation in 2041.

But the country’s overall natural gas output is currently hovering around 2,700 mmcfd including re-gasified imported LNG to the tune of around 450 mmcfd. As per the plan, Bapex took an initiative to dig two wells to explore for gas between 2019 and 2021, 13 wells between 2022 and 2030 and 20 wells between 2031 and 2041. 

The government will have to continue its efforts to turn Bapex into an international standard one in gas exploration, extraction and production. Bapex’s capacity will also have to be strengthened and enhanced in a planned way. The state-run organisation needs to be modernised in gas production, drilling, workover, rig scheduling, exploration (geophysical and geological), organisational structure and manpower recruitment. 

If the Bapex is strengthened, Bangladesh would not have to depend on foreign companies to invite them for oil and gas exploration in the country.

https://bangladeshpost.net/posts/gas-discovered-in-kailashtila-138360

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UK: Shell to Spend Big on Natural Gas

Anglo-Dutch oil supermajor Royal Dutch Shell plc (NYSE: RDS-A) said today that it plans to invest more than $20 billion by 2015 in the company’s Integrated Gas business. The company claims to produce 22 million metric tons annually of liquefied natural gas (LNG) and says it is adding capacity for another 7 million metric tons of annual production in Australia. Shell also claims the company is “maturing” further LNG options totaling another 20 million metric tons annually. One million metric tons of LNG is equivalent to about 8.7 million barrels of oil.

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Shell’s CEO said:

Strong growth in gas markets, especially Integrated Gas, is a major opportunity for Shell and our shareholders. Our Integrated Gas earnings have more than trebled in the last five years, reaching $9 billion over the last year, driven by liquefied natural gas (“LNG”) and gas-to-liquids (“GTL”), and we see growth opportunities to invest over $20 billion here for 2012-15.

This could just be one of those times when Shell has a hammer and everything looks like a nail. But probably not. Demand for natural gas as LNG will grow, though as we noted earlier this week, costs of building the liquefaction plants are rising quickly. Shell estimates that global primary energy demand will grow to the equivalent of 400 million barrels of oil a day by mid-century. Shell expects demand for natural gas to equal 25% of that total, with a good portion of the growth coming in LNG.

The $20 billion investment Shell says it will make in LNG production over the next few years is, to some extent, the tip of the spending that the company will have do if it wants to increase LNG production. Shell reckons that the required global investment by the oil & gas industry could surpass $700 billion to meet mid-century demand. And remember, that’s just for the LNG portion of those 400 million daily equivalent barrels. These are really big numbers, and they are probably conservative.

https://uk.movies.yahoo.com/movies/2012-11-14-shell-to-spend-big-on-natural-gas.html

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Nigeria: Lanre Shittu Motors to roll out CNG buses in a big way, says MD

Managing Director and Chief Executive Officer of Lanre Shittu Motors Ltd, Taiwo Shittu, says the company will next month (June) roll out Compressed Natural Gas-powered buses across the country to ease public transportation. He said the move was fallout of the Presidential CNG initiative (Pi-CNG), as part of palliative intervention of the Bola Tinubu administration to provide succour for the masses following fuel subsidy removal pains.

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The LSM MD who spoke recently from Havard Business School, expressed delight at a number of measures taken by the current government towards rejuvenating the various auto assembly plants in the country with specific attention to CNG buses to boost public transportation.

Following a presidential directive that CNG buses must be a priority and preferred mode of transport by the various ministries, departments and agencies, he said the government had shown its determination to encourage the local auto assembly plants.

Taiwo Shittu said during the telephone interview that by June 2024, Lanre Shittu Motors would be deploying large units of the LSM branded CNG buses in airports across the country and for other mass transportation needs He disclosed that LSM mulled the idea of CNG vehicles and saw it as the future of the local automotive industry many years ago because of the abundance of natural gas in the country as well as the economic benefits of CNG buses to both operators and commuters

Taiwo Shittu assured that there are plans to start assembling LSM-branded CNG buses in Lagos using the best technology like in other parts or the world.

Apart from assembling CNG vehicles from start to finish at the LSM plant, he said the company has enough kits capable of converting petroI-powered automobiles to the CNG vehicles.
He assured prospective customers of quality after-sale maintenance of any stock rolled out from the LSM assembly plant.

For over 40 years., LSM through the visionary founder and chairman, Late Alhaji Lanre Shittu, has carved an enviable niche within the automotive industry through its quality products and services.

Taiwo Shittu said introducing the LSM-branded buses was one of the many ways of immortalising him.

He said, “We have taken proactive steps in the past years to offer quality training to our technicians at various stages, levels and categories of auto assembly and after-sale maintenance services.

“Upon graduation and certification, the technicians are also deployed not only in the various LSM offices nationwide, they are also being sought after by other industry stakeholders within the nation’s automotive value chain.”

The management of Lanre Shittu Motors says that all branches of the company are currently fully equipped with state-of-the-art CNG conversion equipment while orders have been activated and running seamlessly.

Meanwhile, the first set of CNG vehicles will be inaugurated during the present administration’s first anniversary on May 29, 2024.

The Federal Government allocated N100 billion from the N500 billion palliative budget to purchase 5,500 CNG vehicles (buses and tricycles), 100 electric buses, and over 20,000 CNG conversion kits.

This funding also supports the expansion of CNG refilling and electric charging stations.

https://www.vanguardngr.com/2024/05/lanre-shittu-motors-to-roll-out-cng-buses-in-a-big-way-says-md/

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Akwa Ibom stakeholders commend Tinubu on launch of CNG stations 

Stakeholders under the umbrella body of Ibom Community Development Stakeholders Forum has commended President Bola Ahmed Tinubu over recent launching of Compress Natural Gas (CNG) in Delta and Imo states. The chairman of the forum, Captain John Etim, made this known through a statement in Uyo, Akwa Ibom state capital on Sunday.

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Etim expressed optimism that the launching of the CNG will address the high cost of transportation and lower the high standard of living in the country.

He thanked the president for supporting Senator Godswill Akpabio to ascend to the position of the Senate President and equally appointing Obongemem Ekperikpe Ekpo as the Minister for Gas.

“We congratulate President Bola Tinubu for commissioning Gas Infrastructures in Imo and Delta states on Wednesday and we acknowledge the enormous impacts these infrastructures will contribute to the economic development of the country. 

“We wish to express gratitude to His Excellency, President Tinubu for his support in the emergence of Senator Akpabio as the President of the Senate and the appointment of Rt. Hon. Ekperikpe Ekpo as the Minister for Gas in Nigeria,” he said.

https://blueprint.ng/akwa-ibom-stakeholders-commend-tinubu-on-launch-of-cng-stations/

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Nigeria: FG Promises to Purchase Innoson’s CNG-powered Buses

The Minister o State for Petroleum Resources (Gas), Ekperikpe Ekpo, has said the federal government would in future include Innoson Vehicle Manufacturing Company Ltd (IVM) in the award of contracts for the production of CNG-powered buses, as part of the Presidential Compressed Natural Gas (CNG) Initiative.

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The minister stated this after a tour of the IVM factory complex and its multi-billion new plant, in Nnewi. The new plant, which will be opened soon, has an installed capacity to manufacture 30,000 CNG vehicles annually, according to the automaker.

Innoson Vehicles pioneered the manufacture of autogas vehicles, including buses of varied capacities, about two years ago, which was the reason the company wondered why they were not included in purchase of buses by the Presidential Committee.

According to the minister, “Today is a different day. I can assure you that we will make a move towards making amends from what has happened yesterday to make our person (referring to Dr. Innocent Chukwuma, CON), proud of where he comes from, and that he is from Nigeria.”

Ekpo commended the Innoson Group Chairman, Dr. Chukwuma, for investing keenly in the manufacture of CNG vehicles and aligning with President Bola Tinubu’s commitment to using the CNG Initiative to dampen the effect of the removal of fuel subsidy on the masses.

He said the massive production of vehicles that run on CNG by Innoson is giving a boost to the transition from petrol and diesel to gas.

Reacting to the minister’s assurance, Dr Chukwuma echoed his belief that the exclusion from the contract awards for the CNG buses by the Presidential Committee should be regarded as a thing of the past while expecting a fairer process in the future.

According to him, “Anybody can make a mistake, and you cannot kill that person for making a mistake. Maybe, the committee never knew the extent IVM had gone in manufacturing CNG vehicles (since 2022). I am sure that as of today, they are now aware of what we are doing, and they will not do such a thing again.

“But, it is not compulsory that they will use IVM to start the implementation of the CNG Initiative. They can use anybody’s brand to start. But, they will later understand the true position of things as time goes on. We are all working together to move the nation forward.”

The Innoson Chairman also commended the President for the CNG Initiative, following the removal of petrol subsidy, and for directing government ministries and agencies to key in into the momentum for Nigerians to follow suit.

Chukwuma further stated, “We have confidence in President Tinubu because he knows how to handle any situation. He is an expert and he showed it in Lagos State as governor. So, we still believe he will do it with Nigeria.

“All these things we are doing here are part of our efforts to support him, so that the government can be able to make Nigeria great. With all these things we are doing and everybody’s support, the President will surely make Nigeria great. I am building this new CNG factory now and the President is expected to commission it very soon.”

Impressed with what he witnessed at the plant, including CNG buses in various stages of production and the evidence of huge investments at the new plant dedicated to the production of electric and autogas vehicles (CNG and Liquified Natural Gas, LNG), the Minister of State remarked that manufacturing activities at IVM were in line with “the aspirations of Mr. President.”

He said, “I commend the efforts of the Chairman/CEO of IVM, Dr. Chukwuma, for what they are doing. It is in line with the aspiration of Mr President, and I believe that the President will be happy to know that one of his subjects is developing this to catch up with his own focus in the use of CNG.

“Part of Mr. President’s aspiration in the use of CNG is to cut cost in the spending model regarding using petrol in the vehicles and switching to CNG which is clean and easy to maintain like the one I entered (from the Anambra airport to the plant in Nnewi).

“The Chairman took me to observe the exhaust pipe and when I saw it, it was very clean and nothing came out of it, and it was in the condition that we will really appreciate. So, I am really happy to see what I am seeing at Innoson. And I give him kudos for identifying with the President as he did this morning with his comment on moving “from gas to prosperity.”

Ekpo also commented on patronage, recalling that the President had at a recent Federal Executive Council directed all the ministries and their parastatals to take advantage of the transition from fossil fuel to autogas buy only CNG vehicles.

He said, “By the special grace of God, we have a son of Nigeria who is making Nigeria proud in CNG vehicle production. When I return to Abuja, I will brief the President on what I have seen and what I have experienced. It is left for the President to take a decision on the direction to go.

“There is a presidential committee on CNG. I will equally collaborate and sit down with them and talk about the issue, because we are looking at how to cut costs, reduce expenses which will add value to our country, Nigeria. So CNG vehicles should be patronised from all angles and I believe the President will support such aspirations.”

Nigerians, according to him, equally have a patriotic duty to patronise IVM and other locally made vehicles.

“Nigerians should patronise Innoson vehicles, especially in the area of the CNG. That is the way to go, and we are aware that Mr President has declared gas as a transitional fuel for Nigeria, and he is very decisive about that decision. And we are going to follow it to the latter. So Nigerians should embrace gas. It is cheaper, cleaner and in line with climate change initiatives.”

One of the highlights of the Minister’s tour was the demonstration of the fire-fightingchafacyetistucs of IVM fire trucks, and a segment-by-segment display of a wide range of IVM vehicles.

https://www.thisdaylive.com/index.php/2024/05/25/fg-promises-to-purchase-innosons-cng-powered-buses/

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Nigeria: LSM to Deploy CNG Buses Across Nigeria Next Month

The Chief Executive Officer of Lanre Shittu Motors Ltd, Taiwo Shittu, Taiwo Shittu has said that by June 2024, his company will be deploying a large number of the LSM branded CNG buses at the airports across the country and for other mass transportation needs.

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He said LSM mulled the idea of CNG vehicles and saw it as the future of the local automotive industry many years ago because of the abundance of excess natural gas in the economy as well as the economic benefits of using CNG buses by both the operators and the commuters.

Shittu  assured that there are plans to start the assembling of the LSM branded CNG buses in Lagos using the best technology like in other parts of the world. Apart from assembling CNG vehicles from start to finish inside the LSM plant, the company boasts of enough kits capable of converting petroI-powered vehicles to CNG, he said.

He allayed the fears of prospective customers of lack of quality aftersales maintenance of any stock order rolled out from the  assembly plant.

He commended President Bola Tinubu for the  ongoing reforms in Nigeria’s automotive sector and mass transportation initiatives in the country through the CNG buses project.

Shittu expressed delight over a number of measures by the current government towards rejuvenating the various auto assembly plants in the country with specific attention to assembly of CNG buses to boost public transportation and lessen the challenges faced by commuters.

Following the presidential directives that CNG buses must be a priority and preferred mode of transport by the various ministries, departments and agencies, the government has shown its determination to encourage the local auto assembly plants.

For over 40 years, according to Shittu, LSM through the  visionary founder and chairman, Late Alhaji Lanre Shittu has carved an enviable niche within the automotive industry through its quality products and services. Taiwo Shittu says, introducing the LSM branded buses is one of the many ways of immortalising him.

Shittu said, “We have taken proactive steps in the past years to offer quality training to our technicians at various  stages, levels and categories of auto assembly and after sales maintenance services.”

Upon graduation and certification, the technicians are also deployed not only to the various LSM offices nationwide, they are also being sort after by other industry stakeholders within the nation’s automotive value chain.

As at the time of filing this report, the management of Lanre Shittu Motors says that all branches of the company are currently fully equipped with state-of-the-art CNG conversion equipment while orders have been activated and running seamlessly.

Meanwhile, the first set of compressed natural gas (CNG) vehicles will be inaugurated during the present administration’s first anniversary on May 29, 2024.

The federal government allocated N100 billion from the N500 billion palliative budget to purchase 5,500 CNG vehicles (buses and tricycles), 100 electric buses, and over 20,000 CNG conversion kits.

https://www.thisdaylive.com/index.php/2024/05/25/lsm-to-deploy-cng-buses-across-nigeria-next-month/

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Nigeria: Tinubu Commissions 500MMscf/d Gas Plants, 23.3km Pipeline Today

As NMDPRA directs marketers to open CNG points at filling stations. Following his directive on mandatory procurement of compressed-natural-gas (CNG) powered vehicles by all government ministries, departments, and agencies (MDAs), President Bola Tinubu is set to commission three critical gas infrastructure projects in Imo, Rivers and Delta States, today.

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The projects will add additional 500MMscf/d gas production capacity to the country and also increase available gas pipelines network by 23.3kilometres, the Nigerian National Petroleum Company Limited (NNPCL) said yesterday.

This is as the Nigerian Midstream and Downstream Petroleum Regulatory Authority, (NMDPRA), urged oil marketers to open CNG points at their filling stations to increase accessibility for consumers.
According to the NNPCL, President Tinubu will commission the 300MMscf/d  ANOH Gas Processing Plant in Assa North-Ohaji South Field in Imo State; the 23.3km, 36-inch Gas Pipeline from the Assa North-Ohaji South (ANOH) Primary Treatment Facility to the OB3 Custody Transfer Metering Station in Rivers State, as well as the 200MMscf/d AHL Gas Processing Plant 2 in Kwale, Delta State.
Recall that in line with his commitment to ensure energy security, drive utility, and cut high fuel costs,

President Tinubu directed a mandatory procurement of CNG-powered vehicles by all MDAs.

“This nation will not progress forward if we continue to dance on the same spot. We have the will to drive the implementation of CNG adoption across the country, and we must set an example as public officials in leading the way to that prosperous future that we are working to achieve for our people. It starts with us, and in seeing that we are serious, Nigerians will follow our lead,” the President stated.

Meanwhile, the NMDPRA, chief executive, Farouk Ahmed who disclosed this during a meeting with key oil marketing companies in  Abuja yesterday, said new applications for retail licences would no longer be approved without CNG points. He implored the major marketers to explore the availability of CNG in their gas stations as President Bola Tinubu has directed that government vehicles to be purchased henceforth must be CNG-powered.
Ahmed who described the push by the federal government to encourage the use of CNG as an alternative petrol as a revolution, said the government was determined to reduce the burden of petrol on the economy.

“We hope to see very soon CNG add-ons in most of our upcoming and larger petrol stations just like we have PMS, AGO and DPK so that we can have easy access for the consumers. But first, we have to address the supply side and we are working with the producing companies, our sister agency, NUPRC and NNPC Limited as well as  GACN ( Gas Aggregation Company of Nigeria) to ensure that the product is also available at competitive cost to the consumers.

“This will align us with the President’s objective of transforming the country into more CNG for mobility rather than depending heavily on PMS. So, we are appealing to the companies to also invest and ensure that the point of sale for CNG is available to consumers.

“Once we are done with consultations, we will require that CNG add-ons be put in petrol stations and for new applications, one of the requirements will be that you must have CNG add-on in the petrol station”, Ahmed said.

https://leadership.ng/cng-directive-tinubu-commissions-500mmscf-d-gas-plants-23-3km-pipeline-today/

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Natural Gas / LNG Utilization

Morocco: Morocco to launch tender for floating LNG terminal

Morocco’s Ministry of Energy Transition and Sustainable Development is planning to launch a tender this summer for a floating liquefied natural gas (LNG) terminal in the western Mediterranean port of Nador, according to an official announcement reported on Friday by Reuters Abdelghafour El Hadjoui, head of oil and gas at the ministry, revealed in a presentation that financial closing for the project is expected within the next year. Construction, operation, and commercial activities are anticipated to begin in 2026.

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The LNG terminal will connect to an existing pipeline currently used to import 0.5 billion cubic meters of LNG annually from Spanish terminals, sufficient to power two small power plants. Morocco also aims to connect this pipeline to developing gas fields in both eastern and western regions of the country.

Ministry estimates project Morocco’s natural gas needs to rise significantly, reaching eight billion cubic meters by 2027, compared to the current one billion cubic meters.

https://www.msn.com/en-xl/news/other/morocco-to-launch-tender-for-floating-lng-terminal/ar-BB1npl6Y?ocid=finance-verthp-feeds

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UK: UK’s National Grid seeks buyer for Europe’s biggest LNG terminal

KENT : British energy infrastructure operator National Grid (NG.L), opens new tab said on Thursday it is looking to sell its Grain liquefied natural gas (LNG) terminal in Britain, Europe’s largest such facility, in a bid to streamline operations.

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“We are also today further evolving our strategy to focus on networks and will therefore be streamlining our business as we announce our intention to sell Grain LNG,” the company said when when presenting its 2023/24 business year earnings. Located on the Isle of Grain in Kent, the import terminal is currently being expanded and will soon have capacity to store and deliver enough gas to meet its target of about a third of the UK’s gas demand. LNG has become an important source of gas supplies to Europe, helping to replace volumes of Russian pipeline gas lost in the wake of the war in Ukraine and damage to the Nord Stream pipeline in the Baltic Sea.

https://indiashippingnews.com/uks-national-grid-seeks-buyer-for-europes-biggest-lng-terminal/

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Global LNG Development

UAE: ADNOC signs low-carbon ammonia, LNG carrier deals with Korean partners

ADNOC revealed LNG, low-carbon ammonia agreements during the United Arab Emirates (UAE) President’s state visit to the Republic of Korea, Gulf News reports.

According to the report, both the UAE President, Sheikh Mohamed Bin Zayed Al Nahyan, and Korean President, Yoon Suk Yeol, witnessed the signing of the agreements.

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ADNOC’s agreements include the development of low-carbon ammonia value chains and LNG supply with the company’s Korean counterparts.

The report adds the new deals also are part of the strategic partnership between the two countries in priority fields including economy and investment, conventional and clean energy, peaceful nuclear energy, defence and defence technology and cybersecurity, and other areas of mutual interest.

https://www.middleeastmonitor.com/20240531-adnoc-signs-low-carbon-ammonia-lng-carrier-deals-with-korean-partners/

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World’s first land-based LNG terminal to ease Germany’s energy transition

Work has started at the Port of Stade to prepare for the opening of the world’s first land-based LNG terminal, the Hanseatic Energy Hub (HEH), in 2027.

Once operational, the €1.6 billion (US$1.7 billion) project will serve as an import terminal, meeting more than 15% of Germany’s current LNG demand and managing other low-carbon energy sources as the country transitions to green energy. It will have a total annual capacity of 13.3 billion cubic meters of natural gas. And already, three major European energy firms – EnBW, SEFE, and ČEZ – have booked 90% of this volume long-term, with the remaining capacity saved for short-term operations.

The hub’s strategic location means it will play a central role in securing Germany’s immediate energy supply and, on a long-term basis, support the transition away from fossil fuels in Germany and Europe as a whole.

Rising demand

The launch of HEH comes as global demand for LNG is projected to rise considerably over the coming decades. According to Shell’s ‘LNG Outlook for 2024’, the LNG market is expected to reach up to 685 million tonnes in 2040, an increase from the 404 million tonnes in 2023.

But due to an inequity between the available supply and soaring demand, LNG prices remain high, resulting in a scramble for increased access to the transitional fuel. To bolster their energy security and advance their decarbonisation aims, European states are increasingly looking to establish LNG hubs and terminals.

According to the Independent Commodity Intelligence Services January 2024 Energy Outlook, Europe is projected to see an annual increase of 8% in gas demand and 2.9% in power demand in 2024 alone. While this remains below 2022 levels, Western European LNG imports are expected to reach 1,743 TWh this year, rising over 15% from 2023.

Germany is also undergoing a process of increasing regasification (converting LNG back to natural gas). As part of this drive by the federal government, Stade has become the location of one of four Floating Storage and Regasification Units (FSRU), highlighting a multi-pronged approach to relieving pressure on LNG availability issues in Europe taking place at the port.

Support for HEH

GAC has long recognised the importance of Stade as a major location for European energy sector activity.

With direct access to the North Sea, the Port of Stade is the third-largest port in Niedersachsen by cargo handling volume and sits on the River Elbe, between Hamburg and Cuxhaven. It is often the port of choice for dry bulk, barge and general cargo vessels, handling 1,000 port calls and 5.6 million tonnes of cargo in 2022.

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GAC Germany’s newest office opened at the port this January, in direct response to growing demand for LNG. And with that growing demand will come greater call for shipping, marine and offshore services the company offers.

Thies Lennart Holm, Managing Director of GAC Germany, says the addition of the Stade office puts GAC Germany in a prime position to directly support the HEH as well as its existing liquid and dry bulk customers, and cater for future gas carrier clients with a range of expert ship agency and logistics services.

“The LNG business is at the top of our agenda,” says Thies. “It highlights the importance of being active in the locations where our customers are going and being transparent with them, as has been the case in Stade.

“We are poised and ready to support the HEH project at Stade, drawing on GAC’s experience and expertise in Germany and across Europe. We have a history of supporting and will continue to meet the particular demands of the German market to support its energy needs.”

https://www.hellenicshippingnews.com/worlds-first-land-based-lng-terminal-to-ease-germanys-energy-transition/

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Singapore: Japan Mitsubishi Corp to acquire 25 percent stake in Bangladesh LNG terminal

SINGAPORE (Reuters) – Japan’s Mitsubishi Corp on Friday said it has agreed to acquire 25 percent of Bangladesh’s Summit Liquefied Natural Gas (LNG) terminal and plans to help develop an offshore receiving site in the South Asian country.

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The other 75 percent of the Summit LNG terminal will remain with Summit Corp.

Summit LNG’s project plans call for a floating storage and regasification unit (FSRU) to be installed off the coast of Moheshkali, where it will receive and regasify LNG procured by Petrobangla, the country’s national oil and gas company.

Construction of the terminal has already begun, with commercial operation expected to start in March 2019. The planned LNG import volumes are about 3.5 million tonnes per annum, Mitsubishi said.

Mitsubishi did not state the investment cost in the release, but an industry source close to the matter said it is investing about $20 million (£15.7 million) to $25 million (£19.7 million) for the 25 percent equity.

A Mitsubishi spokeswoman said the company declined to comment, and that the information was not public.

Bangladesh’s economic growth rose by 7.28 percent in the financial year through mid-2017, and its population is expected to climb to over 185 million people by 2030, boosting demand for electricity and LNG for power generation.

Summit and Mitsubishi have agreed to jointly pursue other LNG projects in Bangladesh, said the Japanese company, from the supply of the super-chilled fuel to power generation.

In March this year, the two companies signed a memorandum of understanding to jointly pursue an integrated LNG-to-power development consisting of an on-shore LNG receiving terminal, associated LNG supply and construction of 2,400-megawatt gas-powered thermal power plant.

https://uk.movies.yahoo.com/news/japan-mitsubishi-corp-acquire-25-045944539.html

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German: Hapag-Lloyd christens new LNG dual-fuel 23,600 TEU giant

German shipping heavyweight Hapag-Lloyd has held a christening ceremony for its new liquefied natural gas (LNG) dual-fuel 23,600 TEU containership Damietta Express.

As informed, the ceremony took place at Hanwha Ocean’s shipyard in South Korea on May 24, 2024. The 400-meter long vessel is the fifth ship to join the company’s Hamburg Express-class series.

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“With her advanced and efficient dual-fuel engines, her energy-efficient design and her many innovative features, the “Damietta Express” has been carefully crafted to meet today’s demands and to help us on our way forward into a challenging future,” Chief Financial Officer (CFO) of Hapag-Lloyd Mark Frese commented.

The first boxship in this class, Berlin Express, was named in October last year.

The new class of ships will make an important contribution to Hapag-Lloyd’s efforts to operate its entire fleet in a climate-neutral manner by 2045, according to the shipowner. Thanks to their new dual-fuel technology, they will also be able to operate using non-fossil fuels, such as bio-methane and e-methane, and thereby generate hardly any CO2 emissions.

For the time being, liquefied natural gas will be used, which should reduce CO2 emissions by up to 25% and soot emissions by 95%. In addition, advanced components, such as an optimized hull and a highly efficient propeller, will help the vessels to reduce fuel consumption and thereby greenhouse gas emissions.

https://www.offshore-energy.biz/hapag-lloyd-christens-new-lng-dual-fuel-23600-teu-giant/

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US: Cemex US signs renewable natural gas fuel agreement with Clean Energy

Cemex, a leader in the building materials industry, and Clean Energy Fuels Corp., the largest provider of the cleanest fuel for the transportation market, have announced a new fuelling agreement to provide ultra-clean renewable natural gas (RNG) to power 39 of Cemex US’s ready-mix and cement bulk trucks in Southern California.

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Cemex’s collaboration with Clean Energy is the latest addition to its comprehensive alternative fuel matrix and lower-carbon fuels portfolio for its California fleet.

Forecasted to provide approximately 300 000 gallons of RNG annually, the fleet will utilise Clean Energy’s public station network in Southern California to fuel with RNG. RNG is a negative carbon-intensity transportation fuel that substantially lowers greenhouse gas emissions by an average of 300% versus diesel.

Alongside the new fuelling deal, Clean Energy will commission a private fuelling station exclusively for Cemex’s growing RNG fleet. Located in Rialto, CA, the new station will include time-fill dispensers and a dedicated fast-fill dispenser for easy and cost-effective refuelling. The construction project is expected to be completed by the end of this year and Cemex trucks will begin fuelling on-site soon after. Clean Energy will be supplying RNG to the new private station, as well as operating and maintaining the site upon completion.

Through its Future in Action programme, which focuses on achieving sustainable excellence through climate action, circularity, and natural resource management with the primary objective of becoming a net-zero CO2 company by 2050. By transitioning part of its fleet to RNG, the company is projected to reduce fleet emissions by roughly 8822 tpy of CO2e, which is equal to taking 1981 gasoline-powered passenger vehicles off the road for one year or planting 137 648 trees.

“As leaders in the building materials industry, we recognise the pivotal role we play in building a more sustainable future. Embracing renewable fuels isn’t just an option; it’s an imperative”, said Francisco Rivera, Cemex US Regional President – West Region. “What Cemex provides is essential to building communities throughout California and the country. By utilising Clean Energy’s renewable energy resources, we accelerate our aggressive sustainability goals, inspire innovation, foster resilience, and build a legacy of responsible stewardship for generations to come.”

“Cemex is not only a world-class leader in the building material space, but also one of the most advanced in how they are thinking about our sustainable future. This expanded RNG truck fleet will help to decarbonise their overall operations as well as mitigate emissions associated with idling trucks on site. Cemex’s RNG fuel agreement with Clean Energy is a significant move forward”, said Chad Lindholm, senior vice president at Clean Energy.

Clean Energy currently has a network of over 600 fuelling stations around North America and is steadily expanding that number with stations purposely built and strategically located for commercial fleets.

https://www.worldcement.com/the-americas/30052024/cemex-us-signs-renewable-natural-gas-fuel-agreement-with-clean-energy/

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GO TOP

LNG as a Marine Fuel/Shipping

Bangladesh: Another spot LNG cargo for June, tender floated

The government will buy one more LNG (liquefied natural gas) cargo from the international spot market for June delivery, according to a senior Petrobangla official.

The Rupantarita Prakritik Gas Company Ltd (RPGCL) floated a tender on May 28 to purchase the spot LNG cargo for the June 28-29 delivery, he said.

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The bid winner may have an option to discharge the cargo at any of the country’s two floating, storage and regasification units (FSRUs) at Moheshkhali island, added the official.

The RPGCL, a wholly-owned subsidiary of the state-run Bangladesh Oil, Gas and Mineral Corporation, known as Petrobangla, looks after LNG trading in Bangladesh.

The volume of the spot LNG cargo should be 3.36 million British thermal unit (MMBtu).

With the cargo in question, Bangladesh will be importing a total of four spot LNG cargoes for June delivery windows.

The South Asian country previously awarded three spot cargoes to two separate global suppliers at more than $10 per MMBTu for June delivery windows.

Bangladesh awarded both June 07-09 and June 09-11 delivery windows to Gunvor Singapore Pte Ltd to supply lean LNG at the same rate of $10.4622 per MMBTu.

Qatar Energy Trading LLC bagged a contract to supply the remaining one spot cargo for June 19-21 delivery window at the cost of $10.30 per MMBTu.

Separately, Bangladesh is set to import a total of four long-term LNG cargoes in June — three from QatarEnergy, previously known as Qatargas, and one from OQ Trading, previously known as Oman Trading International, a senior Petrobangla official said.

Despite payment delays, said the Petrobangla official said, Bangladesh was continuing LNG imports from both long-term and spot suppliers to meet mounting demand.

https://thefinancialexpress.com.bd/economy/now-govt-seeks-800m-from-japan

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Croatia: SONATRACH Ships Inaugural Liquefied Natural Gas Cargo to Croatia

In line with its gas export diversification strategy, SONATRACH shipped its inaugural LNG cargo to Croatia, arriving at the KRK floating regasification terminal on May 22, 2024.

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Loaded from the GL3Z liquefaction complex in Betihoua (Algeria) and transported by the OUGARTA LNG carrier, which is owned by SONATRACH, this cargo exemplifies the outcome of extensive collaboration with Croatian stakeholders since the terminal’s commissioning in 2021. Such collaboration was aimed at creating the requisite conditions for its fruition.

A portion of the regasified gas will be conveyed to Hungary via the Croatian gas network, facilitating SONATRACH’s inaugural supply of natural gas to both countries.

SONATRACH aims to expand its exports to this region, thereby solidifying its pivotal role in ensuring the security of Europe’s supplies.

Liquefied natural gas (LNG) is primarily composed of methane (CH4), often with a mixture of ethane (C2H6), that has undergone a cooling process to transform it into a liquid state, facilitating safe and convenient storage or transportation without the need for high pressure. At standard temperature and pressure conditions, LNG occupies approximately 1/600th of the volume compared to its gaseous state. It possesses characteristics of being odorless, colorless, non-toxic, and non-corrosive.

Sonatrach, established in 1963, serves as the national state-owned oil company of Algeria. Renowned as the largest enterprise in Africa, it encompasses 154 subsidiaries and is often hailed as the continent’s premier oil “major.” By 2021, Sonatrach had ascended to become the seventh largest gas company globally. Furthermore, it stands as the 12th largest oil consortium worldwide, boasting 154 subsidiaries engaged across the entire oil value chain, from upstream to midstream and downstream operations. Additionally, Sonatrach manages oil condensate and LPG pipeline networks connecting Hassi R’mel and other fields to Arzew. Notably, the company is in the process of expanding the Hassi Messaoud-Azrew pipeline, Algeria’s longest, by introducing a second parallel line that will effectively double the capacity of the existing pipeline. Sonatrach holds concessions in various countries including Libya, Mauritania, Peru, Yemen, and Venezuela. The company has expanded its operations into petrochemistry and seawater desalination. Established on December 31, 1963, Sonatrach initially held a modest 4.5% share of exploration perimeters, with French interests dominating at 67.5%.

Sonatrach holds a 50% stake in Numhyd, a collaboration with Tunisia’s ETAP, and ALEPCO, a joint venture with Libya’s National Oil Corporation. Additionally, in 1998, Sonatrach partnered with Air Algérie (49%) to establish the passenger airline company Tassili Airlines, where Sonatrach retains a 51% ownership.

https://www.chemanalyst.com/NewsAndDeals/NewsDetails/sonatrach-ships-inaugural-liquefied-natural-gas-cargo-to-croatia-28114

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South Korea: Trading giant Vitol extends South Korea deal to supply LNG cargoes to 2028

Trading giant stretches agreement originally signed in 2011. Trading giant Vitol has clinched an extension of an LNG supply deal in South Korea that has already been running for 13 years. The agreement with Korea Middle Power Co (KOMIPO) will see gas shipped in until 2028.

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The original contract was signed in 2011, with deliveries commencing in 2015. Vitol has supplied KOMIPO with more than 4m tonnes of LNG over the last decade. From 2025 to 2028, Vitol will deliver three cargoes per year to the South Korean utility. “The extension confirms the trust and strength of the relationship developed over years of reliable LNG deliveries,” Vitol said.

Young Jo Lee, head of KOMIPO’s planning and administration division, added: “We are pleased to extend the existing LNG sale and purchase agreement with Vitol based on mutual trust and understanding. This signing ceremony will pave the way for both parties to cement the long-term relationship.”

Vitol has traded LNG for over 16 years.

The company says it is expanding its presence globally and last year traded over 17m tonnes of LNG worldwide, up 24%.This was part of 546m tonnes of energy delivered in 2023, a rise from 527m tonnes a year earlier on the back of natural gas, LNG and oil products volumes.

Realignment in Europe

Chief executive Russell Hardy described a realignment of European gas markets as countries pivoted away from Russian gas.

“In gas, 120bn cubic metres per annum of Russian pipeline gas, which used to flow to Europe, has, to date, been replaced by an additional 62 bcm per annum LNG and significant demand destruction,” he said in the 26 March report.

“Flows of LNG to Europe in 2023 were equivalent to half the global LNG market volume as recently as 2010, illustrating the rapid evolution of this market,” the CEO added.(Copyright)

https://www.tradewindsnews.com/gas/trading-giant-vitol-extends-south-korea-deal-to-supply-lng-cargoes-to-2028/2-1-1653338

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Singapore: Fairfield’s dual-fuel LNG tanker Fairchem Pathfinder wraps up first bunkering

Fairchem Pathfinder, one of Fairfield Chemical Carriers’ four 26,000 DWT dual-fuel LNG newbuilds, has completed its inaugural LNG bunkering operation in Singapore. The tanker received a total of 1,390 cubic meters of LNG from the bunker vessel FuelLNG Bellina via a ship-to-ship transfer.

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Fairfield stated: “This achievement marks a significant milestone for Fairfield Chemical Carriers and MOL Chemical Tankers as we advance our commitment to decarbonizing the maritime industry and reducing the harmful effects of greenhouse gases (GHGs) on our atmosphere.”

To note, this 26,222 DWT IMO 2/3 chemical tanker was delivered by Fukuoka Shipbuilding on May 3, 2024.

As already mentioned, the vessel is one of the four dual-fuel LNG-powered stainless steel chemical tankers to join Fairfield’s fleet and is equipped with the same LNG propulsion technology as her sister vessels Fairchem Pioneer and Fairchem Prestige.

Fairfield launched the Fairchem Pioneer back in 2023. At the time, the ClassNK certification society gave it an A rating, evaluating it as “the ship with high decarbonisation, environmentally friendly performance, and innovativeness.”

As for Fairchem Prestige, this tanker was launched In April 2024, and its expected delivery date is November 2024.

According to Fairfield, the vessels in these series boast an LNG propulsion technology that could reduce carbon dioxide emissions by up to 25% compared to traditional marine fuels.

Fairfield Chemical Carriers was recently acquired by MOL Chemical Tankers, a subsidiary of Mitsui O.S.K. Lines (MOL). The acquisition, completed on March 1, 2024, is based on a share transfer agreement signed at the end of September 2023. The company obtained approval from the relevant authorities under competition law. The acquisition price of the shares was about $400 million.

https://www.offshore-energy.biz/fairfields-dual-fuel-lng-tanker-fairchem-pathfinder-wraps-up-first-bunkering/

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Croatia: LNG Croatia receives first cargo from Algeria

The 92nd LNG carrier, berthed with FSRU LNG Croatia, delivered LNG from Algeria for the first time. Thus, Algeria joined the group of 12 countries from which LNG has been deliv-ered to the terminal so far.

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This confirms the fact that by constructing and putting into operation the LNG terminal, Croatia has maximised the security of natural gas supply, considering that now, compared to the position of Croatia before the construction of the terminal, it can supply natural gas from all parts of the world.

https://www.lngindustry.com/liquid-natural-gas/24052024/lng-croatia-receives-first-cargo-from-algeria/

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US: US LNG exports climb to 26 shipments

The agency said in its weekly report that 26 LNG carriers departed the US plants between May 23 and May 29. This is three shipments more compared to the week before. Citing shipping data provided by Bloomberg Finance, the EIA said the total capacity of these LNG vessels is 98 Bcf.

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Natural gas deliveries to US terminals up

Average natural gas deliveries to US LNG export terminals increased 0.2 Bcf/d from last week to 13 Bcf/d, according to data from S&P Global Commodity Insights.

Natural gas deliveries to terminals in South Louisiana were unchanged at 7.5 Bcf/d, while natural gas deliveries to terminals in South Texas increased 5.1 percent (0.2 Bcf/d) to 4.2 Bcf/d.

The agency said that natural gas deliveries to terminals outside the Gulf Coast averaged 1.3 Bcf/d this week.

Cheniere’s Sabine Pass plant shipped eight cargoes and the company’s Corpus Christi facility sent four shipments during the week under review.

The Freeport LNG terminal shipped six cargoes, while Venture Global LNG’s Calcasieu Pass facility and Sempra Infrastructure’s Cameron LNG terminal each shipped three cargoes during the period.

Also, the Cove Point facility sent two cargoes and there were no shipments from the Elba Island facility during the week under review.

Compared to the previous week, Freeport LNG sent one cargo more.

Freeport LNG, the operator of the 15 mtpa liquefaction plant in Texas, told LNG Prime on May 16 it has resumed operations at all of its three liquefaction trains.

The LNG terminal operator said on March 20 that only the third liquefaction train was operating.

Henry Hub drops

This report week, the Henry Hub spot price dropped 30 cents from $2.51 per million British thermal units (MMBtu) last Wednesday to $2.21/MMBtu this Wednesday.

Also, the June 2024 NYMEX contract expired this Wednesday at $2.493/MMBtu, down 35 cents from last Wednesday.

According to the agency, the July 2024 NYMEX contract price decreased to $2.666/MMBtu, down 39 cents from last Wednesday to this Wednesday.

The price of the 12-month strip averaging July 2024 through June 2025 futures contracts declined 24 cents to $3.129/MMBtu.

TTF averaged $10.86/MMBtu

The agency said that international natural gas futures increased this report week.

Bloomberg Finance reported that weekly average front-month futures prices for LNG cargoes in East Asia increased 49 cents to a weekly average of $12/MMBtu.

Natural gas futures for delivery at the Dutch TTF increased 66 cents to a weekly average of $10.86/MMBtu.

In the same week last year (week ending May 31, 2023), the prices were $9.31/MMBtu in East Asia and $7.98/MMBtu at TTF, the agency said.

https://lngprime.com/americas/us-lng-exports-climb-to-26-shipments/113684/

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China: Hudong-Zhonghua delivers Cosco’s LNG carrier

Chinese shipbuilder Hudong-Zhonghua has handed over the 174,000-cbm LNG carrier, Huashan, to compatriot Cosco Shipping Energy Transportation. The LNG carrier was delivered on May 30, seven months ahead of the contract period, according to CSSC’s Hudong-Zhonghua.

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Last month, the 295 meters long LNG carrier completed both its sea and gas trials in four and a half days, setting a record for the shortest trials of a large LNG carrier, the shipbuilder said.

Also, this is the second LNG carrier Hudong-Zhonghua delivered in half a month following the delivery of MOL’s 174,000-cbm, Greenergy Ocean, on May 15, setting a new record for the delivery of large LNG carriers in a single month for the shipbuilder.

Hudong-Zhonghua said this is part of the shipbuilder’s plans to double LNG carrier production capacity.

The shipbuilder previously said it plans to launch 11 ships and to complete 8 ships this year.

Last year, Hudong-Zhonghua delivered record six LNG carriers.

Cosco and PetroChina

This is the fifth LNG carrier Hudong-Zhonghua built for compatriot Cosco Shipping Energy Transportation and PetroChina.

It delivered the first and the second LNG carrier under the PCI project, Shaolin and Wu Dang, in 2022, the third carrier, Kun Lun, in March last year, and the fourth carrier and the first under the second phase of the project, Emei, in December last year.

Hudong-Zhonghua also launched the sixth carrier under the PCI project, and is building the seventh and eighth vessel as part of the third stage of the Cosco Shipping-PetroChina project.

United Liquefied Gas Shipping, a joint venture in which Cosco Shipping has an 81 percent stake and partner PetroChina holds the rest, ordered these last two LNG carriers in July 2023.

All of the eight vessels have WinGD X-DF dual-fuel engines and GTT’s NO96 L03+ containment system, and will serve PetroChina under charter deals.

https://lngprime.com/asia/hudong-zhonghua-delivers-coscos-lng-carrier/113639/

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

 

Geologic hydrogen’s potential impact on shipping analysed

“Maybe this will crash the wifi network, but I would encourage people to pull out their phones and Google geologic hydrogen.” Hamish Norton, speaking at this month’s Geneva Dry conference, gave the five-star Hotel President Wilson’s internet offering a test by delving into a subject that has not been discussed too much at shipping events so far.

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Geologic hydrogen, often known as white, gold, or natural hydrogen, is a gas that originates naturally beneath the Earth’s surface from high-temperature interactions between water and iron-rich minerals.

It is currently poorly understood, but, according to Norwegian energy intelligence firm Rystad, it could be a potentially groundbreaking energy resource if scientific claims of multiple large deposits of possibly hundreds of years’ worth of energy reserves worldwide can be tapped into.

The lead story in the May issue of Splash Extra gives subscribers the full ramifications for shipping on the potential for geologic hydrogen.

Elsewhere there’s regular markets commentary, an overview of the sale and purchase scene, the best analyst reports of the month, while May’s in-depth feature looks at how ships can and cannot secure themselves from encroaching drug cartels in South America.

Published on the last Wednesday of every month and priced for as little as $200 a year, Splash Extra serves as a concise monthly snapshot, ensuring readers are on top of where the shipping markets are headed. For more details on Splash Extra subscriptions, click here.

https://splash247.com/geologic-hydrogens-potential-impact-on-shipping-analysed/

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Volvo to issue world’s first EV battery passport ahead of EU rules

The passport was developed by Volvo, which is owned by China’s Geely, in partnership with U.K. startup Circulor, which uses blockchain technology to map supply chains for companies, and took over five years to develop

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Volvo Cars is launching the world’s first EV battery passport recording the origins of raw materials, components, recycled content and carbon footprint for its flagship EX90 SUV, which is about to start production, the Swedish automaker told Reuters.

The passport was developed by Volvo, which is owned by China’s Geely, in partnership with U.K. startup Circulor, which uses blockchain technology to map supply chains for companies, and took over five years to develop.

Battery passports will be mandatory for electric vehicles (EVs) sold in the European Union from February 2027 showing the composition of batteries, including the origin of key materials, their carbon footprint and recycled content.

Credit: Reuters

Volvo Cars is launching the world’s first EV battery passport recording the origins of raw materials, components, recycled content and carbon footprint for its flagship EX90 SUV, which is about to start production, the Swedish automaker told Reuters.

The passport was developed by Volvo, which is owned by China’s Geely, in partnership with U.K. startup Circulor, which uses blockchain technology to map supply chains for companies, and took over five years to develop.

Battery passports will be mandatory for electric vehicles (EVs) sold in the European Union from February 2027 showing the composition of batteries, including the origin of key materials, their carbon footprint and recycled content.

Volvo’s head of global sustainability Vanessa Butani told Reuters that introducing the passport nearly three years before regulations kick in was aimed at being transparent with car buyers as the automaker targets producing only fully-electric cars by 2030.

“It’s really important for us to be a pioneer and a leader,” Butani said.

The EX90 SUV with a battery passport is due to start production soon at Volvo’s plant in Charleston, South Carolina, and will be delivered to customers in Europe and North America from the second half of the year.

Volvo owners can access a simplified version of the passport using a QR code on the inside of the driver’s door.

Butani said the passport would be gradually rolled out to all of Volvo’s EVs.

A more complete version of the passport will be passed to regulators.

The passport has also required changes in how Volvo traces parts through its manufacturing process to understand the origins of every part in every vehicle.

“Car manufacturing has never been about which rock went into which component and which got connected to which car,” Johnson-Poensgen said. “It’s taken a long time to figure that out.”

While there is no such mandate in the United States, automakers are showing interest there because they may need to prove they qualify for EV subsidies under the U.S. Inflation Reduction Act, Johnson-Poensgen said.

Volvo has invested in Circulor, as has Jaguar Land Rover and BHP, the world’s largest listed miner.

Johnson-Poensgen said there was a rush among automakers to create battery passports, and that even if they started now many may find it hard to meet the EU’s 2027 deadline.

https://www.thehindu.com/business/Industry/volvo-to-issue-worlds-first-ev-battery-passport-ahead-of-eu-rules/article68252731.ece

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Europe prepares for China retaliation after EU imposes EV tariffs

As retaliation for the EU’s tariffs on Chinese electric vehicles, China could potentially slap duties on things like European pork and dairy products, as well as brandy and luxury goods. The European Union (EU) has recently revealed that it has provisionally concluded that it would be applying tariffs to Chinese electric vehicles (EVs) of up to 38.1%. This is in order to curb the flood of much cheaper Chinese electric vehicles that are being imported into the EU, which in turn is posing a competition threat to European-made EVs. 

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The main Chinese automakers which could potentially face increased tariffs are Geely, which could see tariffs of 20%, BYD, at 17.4% and SAIC, at 38.1%. 

Other Chinese EV producers are also likely to see tariffs range between 21% to 38.1%, depending on whether or not they cooperated with EU investigations regarding this matter. 

Apart from China’s local EV manufacturers, a significant proportion of the EVs imported into China also come from companies like BMW and Tesla, which have set up massive factories in China. Their aims is to take advantage of the cheaper production costs and subsidies in order to be able to offer their vehicles at competitive prices. 

These tariffs are pending the conclusion of talks with the Chinese authorities, but are likely to come into effect from 4 July. The duties are expected to be more or less of the same amount as the current government subsidies that China is believed to be offering these automakers. 

One of the main reasons for this move is due to the EU alleging that the Chinese government is providing unfair subsidies to several manufacturers, thus allowing them to sell at considerably cheaper prices in Europe. 

However, this move by the EU has led to increased concerns that China may retaliate by implementing its own tariffs on some European sectors, which could pose a threat to the EU’s economy. If this happens, it could potentially lead to a full-blown EU-China trade war. 

China has already hit back at the EU, calling these tariffs an act of protectionism, and urging it to reconsider. It has also said that it would be doing everything in its power to protect its own interests and car makers, should these increased duties be introduced.

Chinese foreign ministry spokesperson Lin Jian said at a press briefing, as reported by Reuters, “We urge the EU to listen carefully to the objective and rational voices from all walks of life, immediately correct its wrong practices, stop politicising economic and trade issues, and properly handle economic and trade frictions through dialogue and consultation.”

Regarding the possibility of a full-blown trade war with China, Jens Eskelund, the president of the European Chamber of Commerce in China said, as reported by Associated Press, “It’s a little bit like seeing a slow motion traffic accident unfolding. The accident has not happened yet and it is still possible to find an off-ramp. It is getting urgent.” 

Which European sectors could see retaliatory tariffs from China?

Coming to the sectors which are most likely to see retaliatory tariffs from China, should the EU go forward with the EV duties, brandy and other alcoholic beverages could be one of the most impacted. 

This is due to the fact that China has already started an anti-dumping investigation into brandy imported from the EU, back in March, when the EU had dropped hints about potential EV tariffs. The main companies impacted by the brandy investigation have been Pernod Ricard and Remy Cointreau. 

The EU’s food industry is another sector that could potentially be disrupted. China has already known for retaliating with food tariffs, as was seen when China banned seafood imports from Japan a few years back due to a maritime waters disputes and Japan’s strategy of disposing of treated nuclear wastewater into the sea. 

As such, EU food companies such as pork and dairy producers are on edge at the moment, following reports of Chinese domestic food companies asking for probes into some EU food imports. These are likely to be either anti-dumping or anti-subsidy investigations, which even if disproved down the line, could still lead to trade being halted for a long time while the investigation is ongoing. 

However, this could also end up harming China itself, as the EU was the country’s second-biggest import partner in 2023, with China importing about 36% of its dairy imports from the bloc last year. Some of the most frequently imported products were cream, whey powder and fresh milk. 

If a trade war does escalate, New Zealand, which is currently China’s biggest dairy products supplier could potentially be poised to step into the gap. Australia, another significant import partner, could also stand to benefit. 

The EU’s luxury products sector could also be hit, with China being a major market for products such as handbags, perfumes, shoes, clothes and other accessories, from brands such as LVMH, Gucci, Prada and more. European watches and jewellery also have strong demand in China. 

With several luxury goods companies already facing falling demand post-pandemic, due to the cost of living and higher interest rates, this could potentially derail them further. 

Similarly, China is a key component in the critical minerals supply chain globally, and has already shown that it is more than willing to use this sector as a tool in trade wars. This was seen when China stopped the export of rare earth minerals to Japan, due to the two countries disagreeing over the Senkaku Islands. 

If things with the EU heat up, China could also do the same to the EU, which could prove to be disastrous to the continent’s green transition goals. The EU has also recently launched an anti-dumping investigation on Chinese biofuels being imported into the bloc. 

https://www.euronews.com/business/2024/06/13/europe-prepares-for-china-retaliation-after-eu-imposes-ev-tariffs

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