Kumar was recommended for the post of Director (Marketing) of GAIL by the PESB panel on March 29. He was selected for the post from a list of 10 candidates who were interviewed by the PESB panel in its selection meeting.

Kumar is a graduate in Mechanical Engineering from IIT-Kharagpur. He also holds a Master of Business Administration (MBA) degree. He joined GAIL in the year 1988 and over the next three decades has worked in various roles across domains including Gas Marketing, LNG Sourcing/Trading/Shipping, Business Development, Gas Transmission, Projects Management & Gas Pipeline Operation & Maintenance. This cross functional and multifarious experience has enabled him to gain deep insight on all aspects of the gas and LNG value chain.

Kumar played important role in developing GAIL’s overseas LNG trading subsidiary GAIL Global (Singapore) Pte. Ltd. into a standalone entity that is now well established in the global LNG business. In GAIL, Kumar was responsible for overseeing GAIL’s Gas Marketing and Transmission business.

Presently, he is the Managing Director of Indraprastha Gas Limited (IGL), the largest CNG distribution company of India.

https://psuwatch.com/national-news/sanjay-kumar-appointed-as-director-marketing-of-gail

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OPaL, a joint venture of ONGC, GAIL and GSPC, requires the gas to operate its own captive power plant (CPP) to support its power and steam requirements.

“HPCL won the contract through competitive bidding against a tender floated by OPaL. HPCL will supply 13.53 Trillion British thermal units (Btu) of natural gas to OPaL during October 23 to May 26,” the CPSU oil marketing company (OMC) said in a regulatory filing on BSE.

HPCL is focused on building a strong foothold in petrochemicals, fertilisers and other sectors, it added.

Vehicle maintenance

HPCL has also entered into an agreement with Automin Car Services, a subsidiary of Petromin Corporation of the Kingdom of Saudi Arabia (KSA), to set up co-branded HP-Petromin Express vehicle service centres across India.

Petromin is a leading mobility solutions player in automotive technology, with more than 700 multi-brand quick-service outlets across the Gulf Cooperation Council (GCC).

The partnership would offer a range of solutions under one roof, including lube change, light repairs, periodic maintenance, battery replacement, tyre service, air-conditioning repairs, and eco-car wash facilities.

The co-branded HP-Petromin Express vehicle service centres will be located in select HPCL retail outlets in metros and other major cities across the country.

https://www.thehindubusinessline.com/companies/hpcl-bags-long-term-gas-contract-from-opal/article66985964.ece

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According to an order issued by Transport Secretary Ashish Kundra, the Contract Carriage (Delhi-NCR) Permit of such taxis “shall remain valid for 15 years subject to the fulfilment of all other prescribed conditions as stipulated in Motor Vehicle Act, 1988, CMVR, 1989, and DMVR, 1993”.

Earlier, vehicles registered under the City Taxi Scheme, 2015, with ‘DL1RT’, had a permit validity of eight years. All other taxis, including black and yellow cabs and other categories, enjoyed a validity of 15 years, corresponding to the vehicle’s age as defined by the MVA, 1988.

Transport Minister Kailash Gahlot said the move will help “thousands of taxi drivers”. “It is an initiative towards providing cleaner and greener modes of transportation while ensuring the welfare and convenience of taxi owners and operators in the city.”

The Transport Department has urged taxi owners and operators to ensure they meet all other conditions specified in the relevant Acts and regulations.

Sanjay Samrat, president of Delhi Taxi Tourist Transport Association, welcomed the decision and said it will positively impact the lives of taxi owners who otherwise would have had to sell their cabs and buy new ones within the eight-year limit, even if the old vehicles were in compliance with environmental laws.

Mr. Samrat noted that amid the push for electric vehicles, the cost of CNG vehicles has increased by more than ₹1 lakh in the past two years, while the price of the fuel has increased from ₹35 to almost ₹74. “This move will not incentivise people to buy and drive CNG vehicles, but it will at least allow them to use their existing vehicles longer and not worry about purchasing new ones, especially after having gone through the pandemic,” he added.

Paranjit Singh, 52, a taxi driver, said, “While I welcome the order, it should have been issued earlier. I would not have traded off my eight-year-old CNG vehicle for a new one.”

https://www.thehindu.com/news/cities/Delhi/cng-other-clean-fuel-taxis-may-now-ply-in-delhi-for-15-years/article66991206.ece

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The company said it obtained a Russian patent for its proprietary technology called “Arctic Mix” for large-scale natural gas liquefaction using mixed refrigerants.

Novatek also said the production process has been developed to implement the company’s large-scale projects on gravity-based structures with a production capacity of more than 6 million tonnes per year for one producing line.

Russia lacks LNG production technologies following withdrawal of Western companies with their know-how last year over Moscow’s actions in Ukraine.

“This innovation is an important step towards the localization of liquefaction process trains in alignment with the Company’s strategic objective to develop LNG technologies in Russia,” Novatek said.

https://finance.yahoo.com/news/russias-novatek-developed-own-lng-140156296.html

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The company is also attracting a “high level of interest” for the invitation bid launched June 1 for its initial commissioning cargo, Russell said.

“The Philippines is a relatively new entrant in the LNG market. I think there has been a lot of interest from potential sellers in finding an opportunity to play a role in this new market,” Russell said. “We are all trying to find our feet.”

The First Gen terminal, the second LNG terminal in the Philippines, is starting operations at a time when production at the country’s indigenous Malampaya gas field is declining rapidly, making the development of LNG infrastructure imperative.

First Gen, the largest user of natural gas in the Philippines, has a contractual obligation to draw gas from Malampaya until early 2024. However, First Gen has indicated that it is open to extending those contracts, Russell said.

“It’s been a difficult period for buyers, and we are pleased to see on behalf of the Philippines that LNG prices have become a little bit more realistic of late… We are also hopeful that from 2026 onwards, prices would be more reasonable and supply more plentiful for buyers like us,” Russell said.

Asian LNG spot prices hit a record-high of $84.762/MMBtu on March 7, 2022, reflecting the impact of the Russia-Ukraine war, but have weakened now. Platts assessed the July JKM at $9.001/MMBtu and August JKM derivatives at $9.46/MMBtu June 8, according to S&P Global data.

When it comes to pricing the company’s medium-term contracts, it has not ruled out traditional oil-linked contracts, Henry Hub or novel featuresif those are on the table, Russell said.

The company’s subsidiary FGEN LNG Corp has already executed a five-year time charter for the FSRU BW Batangas that will be deployed at the First Gen Clean Energy Complex in Batangas City for LNG storage and regasification.

First Gen’s existing liquid fuel jetty, used to bring in condensates to stem any potential outages of Malampaya gas, has now been converted into a multi-purpose jetty, Russell said.

“After the upgrade, the jetty is much bigger and can handle FSRUs and LNG carriers to take regasified LNG onshore to be used directly by our power plants,” Russell said, adding that the jetty is also connected to an existing gas grid, allowing LNG and Malampaya gas to be co-mingled.

BW Batangas, formerly BW Paris, is due to arrive at the complex around June 14, Russell said, adding that the FSRU will be taken to Subic to carry out a ship-to-ship transfer with a single cargo before it returns for commissioning.

First Gen has already invited bids for an LNG cargo of around 154,500 cu m, subject to an operational tolerance of plus/minus 3%, for August-September delivery.
“We want to use the cargo to show that the terminal works and to demonstrate that the gas plants work on a range of fuels because there is a big difference in the calorific value between the fuels,” Russell said.

“First Gen decided to proceed with this development before the normal contracts were in place because we had existing capacity,” he said.

By 2030, the company aims to increase its installed power capacity to 13 GW through gas, hydro, geothermal, wind and solar, Russell said.

“We have big plans to add additional gas plants. 1.2 GW can be realized quickly,” Russell said, adding that “we are also looking to subsequently add another 3-4 GW at additional sites in various parts of the Philippines including Luzon.”

Small-scale LNG

Malampaya was developed with the idea that it would be a growing market for gas. However, historically the use of Malampaya gas has been limited to a few power plants because as a pipeline gas it was relatively expensive, and it was not that easy to develop a gas grid, making it challenging to capture non-power customers, Russell said. Still, power generated using Malampaya gas has always been competitive, he said.

“Except for the recent period following the invasion of Ukraine, the price of LNG has been broadly comparable with the price of Malampaya gas over the long term,” Russell said.

According to Russell, LNG “opens new possibilities and can displace the liquid fuels market throughout the Philippines quite easily.”

In addition to ensuring energy security, LNG will also help Philippines decarbonize by providing an alternative to coal and enable the ramp up of more intermittent renewables such as solar and wind, Russell said. Opportunities to develop small-scale LNG also exist.

“We certainly are looking to develop the small-scale LNG market by making a provision for LNG trucking for supplying onshore,” Russell said, adding that it was drawing interest from potential customers.

“We are also looking at small scale LNG supplied on the vessel side, using special vessels to be able to take LNG in smaller parcels to other parts of the Philippines. So, I think that market will develop too,” he added.

Onshore LNG terminal

The company could also revisit its plans for constructing an onshore terminal, a plan that was envisaged in 2012, with an initial targeted capacity to handle 3.5 -4 GW, or about 3 million-5 million mt/year of LNG, Russell said.

“We went quite a long way down the track in developing that,” with several rounds of FEED and an EPC process but “paused” and pivoted towards a floating solution as it could be realized more quickly and with lower capital expenditures, Russell said.

However, the company’s current site is expandable and can add two 200,000 cu m storage tanks if required, he added.Whether First Gen would build the full initially contemplated terminal or a variation of that would be reevaluated in the future, depending on signs of emerging gas demand and after more clarity emerges in regulatory policies and in the refinement of offtake contracts, he said.

https://www.hellenicshippingnews.com/first-gen-targets-commercial-operations-at-batangas-offshore-lng-terminal-early-october/

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The FSRU will be operated in the southern waters of Hong Kong (east of Soko Archipelago) under a long-term charter to Hong Kong LNG Terminal Ltd, which was jointly established by two local power companies in Hong Kong, namely CLP Power Hong Kong Limited, and The Hongkong Electric Company, Ltd (HK Electric). The FSRU will regasify LNG and supply natural gas via two subsea pipelines to CLP Power’s Black Point Power Station and HK Electric’s Lamma Power Station. MOL FSRU Terminal (Hong Kong) Ltd will provide not only FSRU’s operation, but also jetty operation and maintenance services and port-related services.

Through the project, MOL will contribute to the achievement of the Hong Kong government’s decarbonisation and air quality improvement targets by realising the first LNG import project in Hong Kong and by significantly increasing the proportion of low-carbon power generation. Furthermore, leveraging the knowledge and expertise acquired through the project, MOL aims to become more deeply involved in various value chains from upstream to downstream in the clean energy industry, not limited to transport services.

https://www.lngindustry.com/floating-lng/15062023/mol-fsru-receives-first-lng-for-hong-kong/

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The country holds abundant natural gas and renewable energy resources and, in the case of green hydrogen, swathes of land for deploying clean energy plants.

LNG and hydrogen projects have been announced but are still at the engineering and studies phase.

To find out more about two bills recently submitted to congress – one focused on LNG and the other hydrogen – BNamericas conducted an email interview with Augusto Damiani, audit partner-oil & gas lead at the Argentine office of professional services firm KPMG.

BNamericas: For potential investors, what appear to be some of the key pillars, or most important aspects, of the LNG bill?

Damiani: The bill relating to the establishment of a regime for the promotion of liquefied natural gas, or LNG, aims to establish a legal regime that provides the necessary stability in legal, economic and fiscal terms that investors require to bet on LNG in Argentina.

Argentina has enormous potential with [unconventional hydrocarbons formation] Vaca Muerta, which has already demonstrated world class productivity and is the country with the second largest amount of unconventional gas resources in the world.

From the significant increase in oil and gas production that Vaca Muerta had in the last five years, other problems began to arise, mainly in terms of product distribution. And it is from there that the first ideas regarding LNG emerged in Argentina, because the liquefaction of the gas allows its volume to be reduced by 600 times and, therefore, makes its distribution more viable and less complex and expensive.

Different players from the world of O&G have shown interest in investing in LNG in the country, in a global context of growing energy demand, greater requirements regarding emissions reduction, and significant price increases in hydrocarbons in general. But until now, the main obstacle to making these investments comes from the legal and economic instability that Argentina represents for investors, considering the current context of high inflation and shortage of foreign currency.

It should be noted that LNG-related projects are long-term projects, given that not only does the infrastructure take years to build and complete, but the [lag for] return on investment is even greater. Therefore, any regime that wishes to promote investments of this type must consider these factors when implementing it.

The bill in question aims for Argentina to become an LNG exporter, a scenario that could substantially modify and improve the country’s macroeconomics in the future. For this, it grants the possibility of presenting investment projects during the first five years of the rules entering into force with the requirement of an investment commitment of at least US$1bn and a minimum production capacity of 1Mt of LNG a year. 

Among the main benefits provided by the bill are the following:

It allows exports throughout the year and for 30 years, even in the winter months, which are those when domestic consumption is highest

Fiscal benefits:

non-fixed withholding tax for export rights: establishing different percentages based on the international price of LNG (0% up to US$15/MMBTU, 8% to US$20/MMBTU).

Income tax:

accelerated depreciation of assets for income tax purposes, which permits a smaller payment in the initial years

maximum rate of 30%, compared to 35% for other economic activities in general

deduction of interest and exchange rate differences generated by the financing of the project

compensation for losses in up to 10 years and updatable using the consumer price index if certain conditions are met, among others

Access to foreign currency: The bill grants freedom to access foreign currency for payments of capital, interest and dividends of up to 50% of what is obtained from exports, a measure that attempts to grant predictability on a fundamental aspect that today is hindering investments in the country as consequences of the measures to alleviate the current macroeconomic situation.

Likewise, the bill tries to promote local development, since it requires investments with national content, increasingly as the years go by: 15% the first 10 years, 30% from year 11 to 20, and 50% to 30 years. 

BNamericas: And for the hydrogen bill?

Damiani: In the case of the draft law for the promotion of hydrogen, it responds to two main areas that Argentina must address. On the one hand, the country’s commitment to reduce carbon emissions, which emerged from the Paris Agreement. On the other hand, provide a regulatory framework for a sector that has the potential to develop in the country, even parties interested in investing and developing projects, but little knowledge today of how to carry it out.

The bill promotes the use of hydrogen for power generation, granting benefits that are differentiated based on the origin of the hydrogen, and has a term of 30 years.

It should be noted that hydrogen is one of the elements some countries have decided to bet on to achieve the decarbonization of their energy matrix. Hydrogen is the simplest and most abundant element in the universe. Its combustion does not generate emissions by itself, but it releases water. One of its main advantages is that it is storable and transportable since it can be compressed and stored in tanks.

Considering these factors, it could be used for land transportation, either as a replacement for fuel in the tank and in the internal combustion engine, releasing water, or through conversion in a fuel cell, where hydrogen decomposes, releasing electrons and generating electric current. These potential uses in the automotive industry and transportation in general, in which the industry is already investing and developing, make it attractive when analyzing investment projects in hydrogen.

It can be obtained through different processes and sources, the most relevant being the following types:

Green hydrogen: obtained through a process called electrolysis, which uses electrical energy generated by renewable sources to separate water into its components, hydrogen and oxygen.

Pink hydrogen: obtained using nuclear energy.

Gray hydrogen: obtained from the reformation of natural gas.

Black hydrogen: obtained from the gasification of coal.

Blue hydrogen: obtained from the two previous processes, but applying carbon capture, storage and use techniques, which decreases the emission of equivalent carbon dioxide.

The bill seeks to establish this regulatory framework, giving predictability to investors in this type of project, promoting those with low emissions.

The main benefits of the bill are:

Accelerated amortization of the income tax on goods, whose term varies depending on the type of hydrogen obtained

Accreditation and/or advance return of VAT generated by the purchase or manufacture of capital goods or infrastructure works for the production of hydrogen

Deduction of the financial charge, generated by the financing of the project, from income tax

Compensation of losses in up to 10 years

Exemption from duties and rates on the importation of goods for hydrogen production projects for the first 10 years after the entry into force of the law

Fiscal stability for up to 30 years

Freedom to access foreign currency for up to 50% of what is obtained from exports

Export duties of 0% during the first 10 years, which will increase differentially depending on the type of hydrogen.

Likewise, the bill creates a national hydrogen agency as a decentralized body in charge of advising the relevant authority.

As in the case of the LNG bill, the hydrogen promotion bill establishes requirements for the integration of local content, which varies from 20% to 50%, depending on when the investment project is carried out and of the type of hydrogen that is finally going to be obtained, with the possibility of calculating the surplus against income tax of up to 10%.

BNamericas: It seems to us that, today in Argentina, everything indicates that the investment would reach the LNG sector first. What do you think?

Damiani: Natural gas has been adopted by the world in general as the transition fuel towards cleaner and less polluting energies. We can visualize that investment in LNG may come first considering that it is a fuel that is currently used in the world in large quantities to generate electricity and increasingly replace the use of coal and oil. Likewise, there are already LNG-exporting countries such as Australia, the US, Qatar and Russia, among others, so it is an area that requires less research, development and experimentation compared to hydrogen as an energy source, which is in a more incipient stage. 

We already know the potential of Vaca Muerta, and that is the key for Argentina to develop LNG given the large amounts of resources that the country has – more than 800Tf3 of unconventional gas.

Additionally, there are oil companies interested in developing the infrastructure projects necessary for gas liquefaction. If a regime is established that can give predictability to the main concerns of all parties involved, it is to be expected that investments will arrive first in this sector. Basically what is being expected to invest is that we demonstrate, at the country level, that we can provide legal and economic security in the medium and long term.

In any case, it is important to highlight that predictability is precisely needed given that these are long-term projects, both for infrastructure and for the production and export of LNG. As an example, it is estimated that the construction of the LNG plant may take up to 10 years. For this reason, the bill also establishes benefits of different types for 30 years, in order to establish a reasonable time horizon for the purpose of developing the sector.

BNamericas: The respective regulations are going to be key, it seems. Is it the case that specific details are generally the most difficult to establish?

Damiani: The key for this bill to be a success depends on the regulations and provisions that the enforcement authority must deliver based on what the law permits and requires. For this reason, it is important to discuss these bills as soon as possible and also to establish deadlines for the regulations, in order to give investors confidence and so that the benefits provided by the bills take on even more relevance and are visibly feasible, to spur development of projects. For example, the guidelines for the eligibility of projects will be key, as well as the mechanisms for calculating the national component.

BNamericas: Is there a general consensus in Argentina on the macroeconomic factor – that is, is an improvement considered an important enabling condition for the development of projects?

Damiani: The key to achieving sustainable economic development that permits a changing of the Argentine economic matrix and avoiding the recurring crises lies in achieving investment in long-term projects that allow the generation of genuine foreign exchange and skilled jobs. But to carry out this type of project, it is imperative to have a regulatory framework that grants economic, political and regulatory predictability in general.

For this reason, these long-term bills, which declare a national interest in these key activities such as hydrogen and LNG production and will be executed during different presidential and legislative terms, must grant sufficient confidence and security to investors that the rules of the game are clear and will not be changed once approved. This can give the necessary impetus to investors to believe and trust in the country, thus generating development and growth possibilities that help stabilize Argentine macroeconomics.

https://www.bnamericas.com/en/interviews/delving-deep-into-argentinas-lng-hydrogen-bills

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This is a welcome development that could propel the UK car industry into a new era. But if UK manufacturers could develop hydrogen-fuel vehicles and infrastructure alongside EVs, it could create a hydrogen economy with fuel costs below today’s petrol and diesel prices.

British car makers are trying to pivot to meet changing global demands. More than 300 million electric vehicles will be required by 2030 if the world is to reach net zero emissions by 2050, according to the International Energy Agency.

Assuming an average battery size of 60 kilowatt hours (the current capacity of a standard Tesla Model 3), a total of 18 million megawatt hours will be required to power those EVs by 2050. This would consume nearly 10% of total known global lithium resources.

But the environmental and social impacts of this amount of mining, the current low rate of mineral recycling from EV batteries (5% for lithium at the moment and the demand likely to be placed on electricity grids to power these vehicles all pose serious challenges to the world’s ability to transition to EVs before 2050.

This is why the means to develop hydrogen-powered vehicles should be developed alongside that for EVs in the UK. There are two types: hydrogen engines burn hydrogen, a zero-carbon fuel, in the same way as a gasoline engine burns petrol.

Alternatively, hydrogen fuel cell vehicles (HFCVs) are powered by generating electricity from hydrogen using a device called a fuel cell. They can drive for longer and refuel faster than EVs, making HFCVs a practical option for long-distance travel and especially for heavy goods vehicles such as lorries.

But hydrogen refuelling stations are costly to build and operate. They range from US$1.5 million to US$2.5 million (£1.2 million to £2 million), compared to the cost of an EV fast-charging station at US$75,000 to US$150,000.

Plus, the estimated annual running costs for a renewable electrolysis hydrogen refuelling station are between US$30 and US$35 per kw versus US$2 to US$6 per kW for an EV charging station.

This probably explains why, as of March 2023, there were only 11 public hydrogen refuelling stations open in the UK, compared to more than 57,000 public EV charging points. Indeed, under current conditions, only 0.01% of cars will run on hydrogen by 2050.

But some research suggests hydrogen could be used to decarbonise heavy vehicles for long-distance transport. And from there, a UK hydrogen economy could develop.

Building a hydrogen economy

Our research shows that blue hydrogen – which is produced using natural gas with emissions captured and stored – could presently be sold for £1.90 to £2.80 per kilogram, with nearly complete carbon capture.

And, as renewable energy costs continue to fall and there is further development in the electrolysis and seawater desalination techniques used to produce climate-neutral hydrogen, it could also fall in price by 2050 to below US$1.00/kg in Chile and the Middle East, and US$1.80-US$2.50/kg in Europe. The different costs across countries are due to differences in electricity prices for solar or other clean energy generation.

One kilogram of hydrogen contains roughly the same amount of energy as a US gallon or 3.8 litres of petrol (slightly less than one gallon of diesel fuel). This means the cost of hydrogen could become much cheaper than petrol or diesel fuel, which is priced at roughly £5.40 and £5.80 per 3.8 litres respectively in the UK right now.

To achieve these lower prices, a UK hydrogen economy would require technology innovation, supply chain optimisation and economies of scale to reduce costs. Companies, including BP, are already investing in this vision. Toyota, Hyundai and Honda were also among the 13 founding members of the Hydrogen Council launched in 2017 to explore and invest in hydrogen as a low-carbon technology.

There are currently 1,040 projects representing US$320 billion in direct investment due to complete between now and 2030, according to the Hydrogen Council. But it says this number needs to increase more than 20 times by 2030 to hit current net zero objectives.

Two hydrogen developers, H2 Green and Element 2, want to create a UK-wide network of 800 hydrogen refuelling stations for HGVs by 2027, rising to 2000 by 2030, with car access also available. And, by building on hydrogen infrastructure for HGVs, other industries could piggyback on the infrastructure, including public transportation, shipping, industrial applications and eventually cars.

Research into the hydrogen supply chain also hints at a brighter future for hydrogen-fuelled vehicles as all of these developments help to bring down the cost of this fuel. If this happens, hydrogen could become a major player in global energy markets by 2050.

This would require transportation capabilities. In many parts of the world, retrofitting existing pipelines for export would probably be more viable than building new pipelines. This would reduce investment costs by more than 65%. New technology also helps exporters to better store and transport hydrogen on barges, rail and trucks.

Of course, hydrogen fuel cell technology still requires massive nickel and cobalt mining, just like EV batteries do. So, co-developing EVs and hydrogen-powered vehicles – and the necessary infrastructure – would be sensible. This would put countries like the UK in a stronger position to transition to net zero.

Retrofitting existing pipelines to carry hydrogen will be easier and cheaper than building new new ones. FooTToo/Shutterstock

Regulators and businesses

In the next few decades, the UK government’s hydrogen strategy for transport focuses more on rail, aviation and freight transport (HGVs and trucks) than cars. Hydrogen-powered heavy trucks will rely on a relatively small number of refuelling stations that can be supplied by local production, rather than by public refuelling infrastructure.

The support is there to create a larger hydrogen economy. A 2021 UK government plan for a world-leading hydrogen economy aims to create more than 9,000 UK jobs and unlock £4 billion in hydrogen investment by 2030.

But hydrogen development requires even more supportive policies that encourage investment, stimulate demand, push technological boundaries and enable infrastructure access, while also bringing down costs. By creating a hydrogen economy alongside EV development, the UK can help unlock hydrogen’s full potential.

https://www.econotimes.com/How-a-UK-hydrogen-car-industry-could-cut-fuel-costs-and-carbon-emissions-1657813

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