NGS’ NG/LNG SNAPSHOT – June 16-30, 2023

National News Internatonal News


City Gas Distribution & Auto LPG

PNG Line reaches Doon, piped gas supply to begin soon

Dehradun, 17 Jun:  The much delayed Piped Natural Gas (PNG) project for Doon has finally made significant progress as the Gas Pipeline has finally reached Doon. Soon several colonies in the city  are expected to be supplied with piped gas for kitchens while other colonies may take somewhat more time for their gas connections. The major reason for the delay in connecting Doon to the Gas pipeline is stated to be Corona pandemic.


According to Meenaksh Tripathi, Project Head of GAIL Gas Pvt Ltd, the company has connected the gas pipeline to Doon. Now the wards (colonies) will be connected to the main line. After which gas can be delivered to the homes. For this, work has  started to get approval from the administration. The areas in which the PNG line has been laid include ISBT, Kargi, Ajapbur, Dharampur and Nehru Colony. So far Gail has already given 25,000 gas connections though the gas is yet to be supplied. While the PNG line had already come to Haridwar some years ago, the connection of mainline till Doon remained pending due to the Pandemic and due to some technical reasons. River Song was a major hindrance according to the sources in GAIL which delayed the connection. Now this has been resolved. Now, the work of laying PNG line till Doon has been completed by GAIL Gas Limited. With this, a target has been set to provide connections to three lakh homes so far. In the year 2019, the company had given connections to five wards of Doon. But after that the project had remained pending.

After the pandemic, the work to lay the line from Haridwar till Doon was started again but the work was held up when the pipeline reached Doiwala. It took rather a long time of two years for the problem to be resolved about laying the line across River Song. Now the pipeline has finally reached Doon and the work of connecting the line to the houses of Doon has to be done by the company. For this the administration is being contacted and its green signal is awaited. A total of 25 thousand connections have been given in Doon. These connections were given in the year 2019, but gas supply was not received, because of which the connections in the houses have to be rechecked and repaired if necessary before the gas is supplied.

Meanwhile the work of laying the pipeline across the city is underway. The pipeline route will be from Rispana to Rajpur via Aaraghar, Naini Bakery. A gas pipeline has been laid to Nany Bakery from Araghar. This pipeline will be connected to the main line at Rispana. Apart from this, a line will also be laid from ISBT to Ballupur. A route from the main line leads to the Haridwar bypass area. The work on this route is almost complete. It merely needs to be connected in some areas to the mainline. The areas which will have piped gas supply in the first phase in Dehradun include Dharampur, Nehru Colony, Patel Nagar, Banjarawala, Haridwar Bypass (and colonies off the Bypass like Ajabpur, Kargi etc) and Shimla Bypass and the areas adjoining the ISBT.
To begin with 3 lakh houses will get PNG connections in the first phase. New connections will keep getting connected later on. Houses where connections have been laid will also be verified and investigated to make sure that they are okay. The pipes and meters will be checked. This will be done by the company. Only after that the supply will be started. This is necessary in view of safety.

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All Chandigarh Transport Undertaking diesel buses of local routes to run on CNG

Project to cost Rs 35.31 crore, to be carried out in phases To reduce toxic emissions, the UT Transport Department has decided to retrofit the entire fleet of diesel buses of the Chandigarh Transport Undertaking (CTU) running on local routes with compressed natural gas (CNG) kits.


The work of installation of CNG kits would be started in a phased manner, said an official, adding that the project was likely to cost nearly Rs 35.31 crore, including the comprehensive maintenance contract for five years. The tender for hiring a company for the work would be floated soon.

To reduce dependence on fossil fuel, the department has planned to add 100 more electric buses to its existing fleet of 80 such vehicles this year.

The procurement of the buses will give a major boost to the plan of the UT Administration to replace the entire fleet of 258 diesel buses of the CTU, running on local or suburban routes, with electric ones by 2027-28. The diesel buses will run on CNG till these complete their life span.

The administration had approved the proposal of the Transport Department to procure 100 more electric buses and these were likely to hit the road this year, said the official.

As many as 80 electric buses are plying on the tricity roads. More than 70 lakh passengers have travelled in these buses in the past more than 18 months.

The Department of Heavy Industries, under the Ministry of Heavy Industries and Public Enterprises, Government of India, had sanctioned 80 electric buses for the UT under Phase II of the FAME (Faster Adoption and Manufacturing of Electric Vehicles) India Scheme. The first lot of 40 buses has been in use since November 2021.

The second lot of 40 intra-city electric buses was put in operations in November last year after an agreement was signed with M/s Volvo Eicher.

Under the contract, M/s Volvo Eicher has been running the buses at the rate of Rs 44.99 per km, which is Rs 15 per km cheaper that the rate for the 40 buses approved in the first phase. Earlier, the contract to run 40 electric buses was allotted to Ashok Leyland at the rate of Rs 60 per km.

Nearly 20,000 passengers travel in the mini-electric buses in the tricity daily.

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Natural Gas/ Pipelines/ Company News


For the second consecutive auction, IndianOil emerges as the highest bidder for Reliance’s KG gas.

Indian Oil Corporation (IOC), the largest oil firm in India, has secured half of the natural gas offered in the latest auction held by Reliance Industries Ltd and bp UK. IOC received 2.5 million standard cubic meters per day out of the 5mmscmd of gas auctioned last month.


The volumes were bid on behalf of seven fertilizer plants. Companies such as GAIL Gas Ltd, Mahanagar Gas Ltd, Torrent Gas, Indian Oil Adani Gas Ltd, and Haryana City Gas secured a total of 0.5 mmscmd of gas for turning into CNG for sale to automobiles and households for cooking purposes. The e-auction started on May 19 and ended on May 23. At the end of the auction, gas was sold to 16 buyers, indicating a growing demand for cleaner-burning, efficient fuel such as natural gas. Reliance Industries Ltd and bp UK are ramping up gas supplies from their second wave of discoveries in the KG-D6 block lying in the deepsea of the Bay of Bengal. With a cleaner reputation, natural gas is a key gas that will be used to move toward zero-emission fuel, and Reliance Industries Ltd and bp UK are set to cater to an increasingly growing demand for natural gas.

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Appointment. Kamal Kishore Chatiwal takes over as IGL Managing Director

IGL operates City Gas Distribution (CGD) networks across 30 districts in four states including the NCT of Delhi State-run Indraprastha Gas (IGL) on Thursday said that Kamal Kishore Chatiwal has taken over as its Managing Director with effect from June 15.


IGL operates City Gas Distribution (CGD) networks across 30 districts in four states including the NCT of Delhi. IGL is a joint venture of GAIL (India) and Bharat Petroleum Corporation (BPCL) with the government of NCT of Delhi holding a 5 per cent stake.

Chatiwal has taken over the charge from Sanjay Kumar, who took over as Director (Marketing) at GAIL on the same day. He has more than 32 years of experience in the Oil & Gas sector particularly in Project Execution and Commissioning of Mega Petrochemical Projects, Operation & Maintenance of Gas Processing units, Natural Gas Compressor Station and cross-country LPG Pipeline.

Before joining IGL, he was working as Executive Director (O&M-JLPL) & Head of Zonal Marketing at GAIL in Jaipur.

After joining GAIL in 1990, Chatiwal was associated with the Execution and commissioning of GAIL’s first Petrochemical plant at Pata, the first LPG Recovery Plant at Vijaipur, and grass root Petrochemical complex at Lepetkata Assam, as Head of Ethylene Cracker Unit of Brahmaputra Cracker and Polymer, a subsidiary of GAIL.

He has been actively involved in the conceptualisation, approval, and licensor selection process of India’s first Propane Dehydrogenation (PDH) unit and also Polypropylene (PP) plant at GAIL-USAR as well as new initiatives like Green Hydrogen and renewables, Specialty Chemicals etc.

Chatiwal also has experience working in various corporate functions like corporate planning and strategy, Project Development, and corporate training. One of his key achievements in GAIL has been the implementation of a change management programme, Project Parivartan and start of sustainable development initiative as a core team member.

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Sanjay Kumar appointed as Director (Marketing) of GAIL

New Delhi: The Appointments Committee of the Cabinet (ACC) has approved the appointment of Sanjay Kumar for the post of Director (Marketing) of GAIL (India) Limited on Tuesday. According to an order issued form the Department of Personnel & Training (DoPT), Kumar has been appointed to the post with effect from the date of taking over charge of the post till the date of his superannuation i.e. June 30, 2027, or until further orders, whichever is the earlier. Presently, he serves as Executive Director (Marketing) in the same organisation.


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.

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HPCL bags long-term gas contract from OPaL

Hindustan Petroleum Corporation (HPCL) on Monday said it has secured a long-term contract from ONGC Petro additions (OPaL) for supply of natural gas to their mega petrochemical complex at Dahej.


OPaL, a joint venture of ONGCGAIL 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.

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Policy Matters/ Gas Pricing/ Others

Govt slashes VATon PNG to 4%

Panaji In a windfall to consumers of piped natural gas (PNG) in the state, the government has slashed the value added tax (VAT) on PNG to 4% from 12.5%. The reduction in VAT is expected to make PNG supplied by city gas distribution (CGD) companies considerably cheaper to household, industrial as well as commercial consumers.


Acquiescing to a long-standing demand of Goa industry to make natural gas viable for use as fuel, the finance department on Wednesday amended the Goa Value Added Tax Act, 2005, Schedule C for PNG supplied by authorised CGD entities. 

“The notification on reduction in VAT on PNG shall come into force on being published in the official gazette,” said the order signed by the under-secretary, finance, Pranab G. Bhat on June 14.

Presently there are two entities in the state authorised by the Petroleum and Natural Gas Regulatory Board (PNGRB) to supply natural gas through the CGD network.

For North Goa consumers, the company supplying PNG is Goa Natural Gas Company Pvt. Ltd., a joint venture of GAIL and BPCL.  In South Goa, it is supplied by Indian Oil-Adani Gas
Pvt. Ltd. 

The government’s move to decrease the tax on natural gas is likely to provide a major boost to demand for it as a cooking fuel from households as well as large industrial consumers.

Lower tax on natural gas has been a pending demand of the Goa Chamber of Commerce & Industry (GCCI) for more than two years. 

To transition to cleaner fuels and gas-based economy, the state government in June 2021 prohibited the use of fuels such as pet coke and furnace oil.

Consequently all industrial units using pet coke and furnace oil were given a deadline of December 31, 2021 to discontinue consumption of the said fuels.

The Goa State Pollution Control Board notified a list of approved fuels that among others included compressed natural gas or liquefied natural gas.

The GCCI pointed out that the changeover to approved fuels had an adverse financial impact on industrial units as the VAT on PNG stood at 12.5%, which is much higher than 3% in Maharashtra.

More recently on May 24, the GCCI wrote to the state GST commissioner Ruchika Katyal requesting for a reduction in the VAT.

In the request letter the industry body said that since PNG is under the ambit of the state VAT, and because there is no VAT credit available, it is having a “cascading effect on the cost of goods to consumers as well as making local products non-competitive vis-à-vis other states”.

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CNG, other clean fuel taxis may now ply in Delhi for 15 years

Transport Department extends validity under Contract Carriage (Delhi-NCR) Permit In a major boost for taxis running on compressed natural gas (CNG) or other clean fuels, the Delhi government on Tuesday extended the permit validity of such vehicles from eight years to 15.


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.”

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LNG Use / LNG Development and Shipping

Russia’s Yamal LNG to resume LNG supplies to India’s GAIL – Kommersant

Russia’s Yamal LNG plant is set to resume liquefied natural gas (LNG) supplies to India’s GAIL under a long-term contract involving a Gazprom unit, Kommersant daily reported citing Russian government sources.


Novatek, Yamal LNG’s main shareholder, has not replied to a request for comment. Kommersant said that supplies under the deal were suspended in 2022 when Germany seized assets of Russian energy giant Gazprom.

GAIL agreed to a 20-year deal with Gazprom Marketing and Trading Singapore (GMTS) in 2012 for annual purchases of an average of 2.5 million tonnes of LNG on a delivered basis.

At the time, GMTS was a unit of Gazprom Germania, now called SEFE, but the Russian parent gave up ownership of SEFE after Western sanctions.

The initial contract with GMTS was also for supplies from the Yamal project in the Arctic, but the former Russian entity was arranging supplies from elsewhere to cut freight costs as the deal was done on delivered basis, industry sources said earlier this year.

Kommersant said on Wednesday that the issue of LNG supplies to India has been resolved. It said, citing a source, that the deliveries are set to resume in the previous volumes in nearest future.

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GAIL issues swap tender for 12 LNG cargoes

GAIL (India) Ltd has issued a swap tender seeking 12 cargoes of liquefied natural gas (LNG) for loading in the U.S. in exchange for 12 cargoes for delivery into India in 2024. India’s largest gas distributor is offering the cargoes for loading from the Sabine Pass terminal in the US, and seeking the cargoes for delivery into India’s Dhamra terminal.


The tender closes on June 22.GAIL India Ltd., commonly known as GAIL, is the largest state-owned natural gas processing and distribution company in India. Established in 1984, GAIL plays a crucial role in the country’s energy sector by integrating various aspects of the natural gas value chain, including exploration, production, transmission, distribution, and marketing.

GAIL’s primary objective is to ensure a steady and reliable supply of natural gas to various sectors, including power generation, industrial, commercial, and domestic consumers. The company operates an extensive pipeline network spanning thousands of kilometers, facilitating the transportation of natural gas across the country.

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Electric Mobility/ Hydrogen/Bio-Methane

Hybrid car sales are catching up with that of electric vehicles in India — more affordable, resale value

Industry data shows automobile makers sold only about 600 fewer strong hybrid cars — which combine a petrol or diesel engine with electric motor — than electric cars between Oct 2022 and May 2023.


New Delhi: Electric vehicles (EVs) may be the buzzword in the automobile industry, but strong hybrid cars — powered by a petrol or a diesel engine and an electric motor — are also attracting buyers, as seen by the rise in sales Industry sales data shared with ThePrint shows that automobile makers sold 48,424 units of strong hybrid cars in the domestic market between October 2022 and May 2023, just about 600 units fewer than the 48,991 electric cars sold during the same period.

Experts from the industry told ThePrint that the demand for strong hybrids will continue to see an uptick due to factors such as lower acquisition cost compared to electric vehicles, reduced range anxiety and lack of charging infrastructure.

They added that strong hybrids are expected to play a key role in India’s transition from fossil fuel-powered vehicles to electric ones, while also helping build the manufacturing ecosystem for electric vehicles.

“Consumers are seeing hybrids as a better option. The sales of strong hybrid and electric vehicles are almost similar… and this is when there are only 3-4 strong hybrid models in the market today. As more models come in, the consumption will also go up,” Shashank Srivastava, senior executive director (marketing and sales), Maruti Suzuki, told ThePrint.

He added that sales of hybrid models, including Maruti’s Grand Vitara, were restricted because of semiconductor supply-related issues.

“Probably if supplies were better, sales of hybrids would have been more,” he said.

Maruti Suzuki, which is the biggest car maker in the country, currently offers the Grand Vitara in a strong hybrid variant.

According to data shared by Srivastava, the industry sold 14,928 EVs and 15,347 hybrids in October-December, 2022, 19,828 EVs and 22,389 hybrids in January-March, 2023, and 14,835 EVs and 10,688 hybrids in April-May of the current fiscal.

India currently has three automobile manufacturers — Maruti Suzuki, Toyota Kirloskar Motor (TKM) and Honda Cars India — that have launched cars in the hybrid category and are expected to launch more models.

In the electric vehicle segment, there are manufacturers such as Tata Motors, which is the leader in EVs, MG Motor (also known as Morris Garages), Hyundai Motor India and BYD.

Why are hybrids becoming popular?

Explaining the reasons for the popularity of strong hybrids, Srivastava said the main reason is that these vehicles are more affordable than EVs.

“For a gasoline-powered vehicle, an equivalent EV costs 1.5-1.7 times more, while an equivalent hybrid vehicle will cost 1.25-1.27 times more. Hence, the cost of acquiring a vehicle is lower,” he said.

The price difference between hybrid and electric vehicles is despite the fact hybrids attract a Goods and Services Tax (GST) of 28 per cent — same as petrol and diesel counterparts — while for electric vehicles the GST is 5 per cent.

Speaking to ThePrint earlier, Srivastava had said that the government should consider introducing a graded tax structure for passenger vehicles based on carbon emissions, and provide incentives on cleaner alternatives, such as CNG (compressed natural gas) and strong hybrids to promote green mobility in the country.

He also pointed out that while buying new vehicles, Indian consumers generally take into account the resale value of the new vehicle. But given that the EV market is still evolving, and there are very few such vehicles in the used-car market, there is uncertainty around the used-car value of EVs.

Besides that, there are issues related to lack of public charging infrastructure for electric vehicles and a lack of dedicated parking space, which make home charging also a challenge for consumers — leading to ‘range anxiety’, he added.

Vikram Gulati, country head and executive vice-president corporate affairs and governance, Toyota Kirloskar Motor, added that hybrids — which operate in EV mode 60 per cent and have an internal combustion engine (ICE) as back-up — help address issues “for a consumer who otherwise may have a lot of concern around range when evaluating a technology like electric when moving away from traditional ICE.”

Strong hybrids come with regenerative braking systems where the kinetic energy from braking is converted into electrical power that charges the battery in the vehicle.

Reiterating that strong hybrids typically operate in EV mode 60 per cent of the time, Gulati said, “That is phenomenal, given the fact that the battery size of a hybrid is 1/40th or 1/50th of that of an electric vehicle… It has a combination of being cleaner, greener, more powerful and efficient.”

The available hybrid models in India claim to give a fuel efficiency of up to about 28 km/lt.

‘Hybrids not an alternative to EVs’

Despite the growing popularity of hybrid cars, Gulati stressed that they are not an alternative to electric vehicles, but are an important technology to help consumers move away from fossil fuels and reduce fossil fuel consumption.

He told ThePrint that hybrid cars have just entered the high-demand mass segment in India with models like Toyota Hyryder (B-SUV segment) and Hycross (Innova segment).

“So, this has really started to show in terms of numbers. Earlier, the hybrids that were being sold in India were in high-value niche segments with low volumes,” he added.

He pointed out that this trend was also seen in the BEVs (battery electric vehicles) where new cars were initially launched in niche segments. “But now, you have more models in BEV’s coming in and a lot of these are in the mass segments,” he said.

To summarise, the technology is now coming in segments, which have meaningful numbers, and hybrids have just begun their journey in India. And we are seeing very good acceptance, Gulati added.

Way ahead

Highlighting data from across the globe, Gulati said, the situation in India is no different from the world.

“If you look at Europe’s sales last year, of the total vehicles sold, 12 per cent were hybrids, 10 per cent were plug-in hybrids and 14 per cent were battery electric,” he said.

In the US, the mix last year was 6 per cent hybrids, 6 per cent BEVs and 1 per cent plug-in hybrids. In Japan, it was 38 per cent hybrids, 2 per cent battery electric and 1 per cent plug-in hybrids, he added.

Quoting data from a BNEF report, Gulati pointed out that globally, electrified vehicles, including BEVs, strong hybrids and plug-in hybrids, together contributed only 21 per cent of the total car sales in 2022.

“So fossil fuel-powered vehicles still account for about 80 per cent of sales. Of the 21 per cent electrified vehicles, 7 per cent are hybrids and 4 per cent plug-in hybrids,” he said.

“In India, where we have only 1-2 per cent share of all electrified vehicles, we need all technologies to tackle the problem of fossil-fuel consumption. They are complementary to each other,” he added

According to Gulati, hybrids are not only appealing for their “phenomenal” mileage, but also for their cleaner and convenient technology.

For Toyota, two of its models – Hyryder and Hycross — are also seeing high demand for the hybrid variant. While the company did not share the split for demand for ICE and hybrid variants, it said “majority demand is for hybrids”.

Interestingly, Toyota was the first company to introduce a hybrid in India with the Camry in 2013.

Gulati added that the increase in demand for hybrids can also help build the manufacturing ecosystem for electric vehicles and vehicles powered by fuel cell technology.

He explained the components of electric vehicles such as motors, batteries and cells, battery management systems and high voltage wiring are common with hybrids. The only difference is in terms of size.

“The most advanced clean technology today is Fuel Cell Electric Vehicles (FCEVs) powered by hydrogen. In the FCEVS, the parts that go in are exactly the same as that in hybrids. So, in short, to summarise, the parts are common,” Gulati added.

“For India, to be able to localise (EVs) quickly without disruption, hybrids have a big role to play. The parts for hybrids and EVs are common,” he said.

(Edited by Richa Mishra)

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HPGRDC completes indigenisation of Hydrogen Pressure Swing Adsorption

New Delhi: In a significant move towards indigenisation in the energy sector, the HPCL(Hindustan Petroleum Corporation Limited) announced on Tuesday that Hindustan Petroleum Green R&D Centre (HPGRDC) in Bangalore has achieved a substantial milestone by completing the indigenisation of Hydrogen Pressure Swing Adsorption (H2 PSA) Technology.


This accomplishment includes the development of all major technical elements such as the adsorbent system, Programmable Logic Controller (PLC) system and program, and plant design.A significant breakthrough achieved by HPCL is the development of India’s first indigenous H2 PSA Technology, which is widely used for hydrogen purification in refineries. This in-house technology was successfully demonstrated through the establishment of a commercial-scale Greenfield 6-bed H2 PSA unit in the Continuous Catalytic Reformer (CCR) block of HPCL’s Visakh Refinery, with a feed capacity of 36,000 Nm3/hr. The unit has been operating successfully for the past eight years since its commissioning in 2015.

As a result, HPCL is now ready to provide comprehensive technology solutions to the industry. The HP Green R&D Centre in Bangalore has been a leader in cutting-edge research and development, addressing the evolving needs of the petroleum refining and energy industry. Within just seven years of its establishment, HPGRDC has successfully commercialized 55 technologies and products and has been granted 167 patents.Leveraging its advanced adsorption research facilities and expertise, HPCL has also developed efficient adsorbent systems for commercial H2 PSA units. Adsorbent replacements were successfully carried out in a commercial-scale 5-bed H2 PSA unit with a capacity of 33,400 Nm3/hr at the Mumbai refinery, as well as in a 10-bed H2 PSA unit with a capacity of 79,200 Nm3/hr. Both units have demonstrated excellent performance over the past five to seven years.

In addition to the adsorbent systems, HPCL has developed a state-of-the-art Programmable Logic Controller (PLC) system and program, which serves as the core of the H2 PSA technology. Recently, HPCL commissioned its indigenous PLC system and program at one of the existing H2 PSA units in the Visakh Refinery, marking a groundbreaking achievement. Building on this success, HPCL is now in the process of replacing the PLC systems in its other H2 PSA units in refineries, with completion expected by 2023-24.Drawing from its extensive experience and capabilities gained through various indigenisation efforts, HPCL is now well-positioned to offer comprehensive Hydrogen PSA technology solutions. These solutions encompass new PSA unit designs, PLC systems, adsorbents, and technical services. The widespread adoption of this technology across the Indian refining sector will significantly contribute to the Government of India’s Aatmanirbhar Bharat (Self-Reliant India) initiatives.

HPCL remains committed to driving innovation and sustainability in the energy industry while supporting the nation’s vision of self-reliance.

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Natural Gas / Transnational Pipelines/ Others

Peru: MINEM plans to build 18.9 km of natural gas networks in the Province of Chiclayo with the Plan “Con Punche Perú”

Within the framework of the “Con Punche Perú” Plan, the Ministry of Energy and Mines (MINEM) announced that the construction of 18.9 km of natural gas distribution networks in the Province of Chiclayo is planned for 2023 within the framework of the Plan With Punche Peru, which will benefit approximately 1,250 families.


Through the Social Energy Inclusion Fund (FISE) and the natural gas concessionaires, the first 2.61 kilometers of networks have already been built in the Las Flores area located in the Pimentel district; Likewise, soon in this province the Elías Aguirre area located in the Chiclayo district will be reached.

The Government’s commitment, through the Con Punche Peru Plan and the publication of Law No. 31728, is to accelerate massification and contribute to the family economic reactivation, for which it has allocated approximately 780 million soles for 2023.

The budget, assigned to FISE, will make it possible to build more than 1,505 km of distribution networks, connect 10 hospitals and more than 100,000 homes to the public natural gas service; as well as converting 10,000 light vehicles to CNG.

It is important to remember that natural gas can generate monthly savings of more than 40% compared to conventional gas to LPG, and can be used for cooking or heating, with savings of 70% compared to hot tubs or appliances. electrical energy, therefore it constitutes an alternative that will contribute to improve the quality of life of the population and reactivate the basic basket of homes.

In this way, MINEM ratifies its commitment to achieve universal access to energy and make natural gas available to more Peruvians, an economic resource, friendly to health and the environment, which will contribute to the economic transformation of the country as its use is more widespread in Lima and the interior of the country.

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China to lead LNG regasification pipeline capacity additions in Asia by 2027

China is set to dominate the liquefied natural gas (LNG) regasification capacity additions in Asia, contributing around 34% of the region’s capacity additions by 2027, according to GlobalData.


The company’s latest report finds that China is set to add a capacity of 5.7 trillion cubic feet (tcf) from projects that have already received necessary approvals.

Further still, it will add 2.1 tcf from projects that are in the conceptual study stage and are yet to be approved, GlobalData says.

Ever-growing natural gas demand is cited as driving the capacity additions.

This may seem at odds with China’s expected capacity additions in green hydrogen and its anticipated role on the global stage for green hydrogen by 2050, but will be seen as the pragmatic path towards meeting thirsty power needs in the near-term.

Many describe LNG as the ‘cleanest fossil-based fuel’.

Bhargavi Gandham, Oil & Gas Analyst at GlobalData, affirmed, “China is rapidly expanding its LNG regasification capacity due to several factors, such as to meet ever-growing natural gas demand, mitigate environmental pollution, diversify its energy resources, and meet its carbon neutral objectives.”

Where and when?

According to the report, titled LNG Regasification Terminals Capacity and Capital Expenditure (CapEx) Forecast by Region, Key Countries, Companies and Projects (New Build, Expansion, Planned and Announced), 2023-2027, the Tangshan II and Zhoushan II projects lead in terms of the LNG regasification capacity additions in China, with a capacity of 584.4 billion cubic feet (bcf) by 2027 each.

Tangshan II is an onshore regasification terminal planned in Hebei province, China.

Caofeidian Xintian LNG Co Ltd is the proposed operator as well as the majority stakeholder (51%) in the terminal, which is set to begin operations in 2025. China Suntien Green Energy Co Ltd holds the remaining stake in the terminal. The terminal will help meet peak winter demand in Hebei and North China.

Zhoushan II is an announced LNG regasification terminal in Zhejiang province. ENN Energy Holding is the operator of the terminal, and it is expected to commence operations in 2025.

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Turkish company to implement natural gas pipeline project in Romania

Signatures for the natural gas pipeline project between Kalyon Holding and Transgaz were signed on Friday, June 16. The project will transport the gas in Romania’s Black Sea reserves to the connection points in the interior of the country through the pipeline to be built between the Black Sea coast and Podisor.


Kalyon İnşaat Executive Board Member Serdar Över gave information to members of the press about the project they plan to complete in less than 24 months.

“A critical project for Europe’s energy security”

Stating that the project is of critical importance for Europe’s energy security, Över said that this line will connect with the Bulgaria, Romania, Hungary and Austria (BRUA) Corridor.

Över said, “The BRUA Corridor, passing through Bulgaria, Romania, Hungary and Austria, is a very important corridor for Europe’s energy security. Thanks to our pipeline, the gas from the Black Sea will be able to reach Austria.” said.

Pointing out that Romania has a significant potential for Turkish companies in consultancy and contracting, Över said, “Our aim is to deliver the additional natural gas that will emerge in the Black Sea to Romania and EU countries in a healthy, high quality and sustainable manner. As Kalyon Holding, we are exporting our country’s engineering power to neighboring geographies while we carry our knowledge and experience in this field to Europe.”

Över stated that they are proud to increase the commercial business volume between Turkey and Romania and emphasized that they aim to make Kalyon Holding’s signature more visible both in Romania and in other countries in the future.

“With the gas to be transported from the line, approximately 45 percent of the consumption in Romania will be met”

Ion Sterian, the General Manager of Transgaz, the public company responsible for the construction and operation of Romania’s gas transmission lines, stated that the good relations and cooperation between Romania and Turkey date back many years and underlined that there are many companies in Romania that won tenders from Turkey, especially in the field of infrastructure. he drew.

Sterian said that about 45 percent of the consumption in Romania will be met with the gas to be transported through the line, which will have an annual capacity of over 12 billion cubic meters.

The Black Sea Coast-Podişor Natural Gas Pipeline, with a construction cost of approximately 500 million Euros, has a total length of 308 kilometers and pipe diameters of 48 to 40 inches.

The scope of the project also includes the supply of pipes to be used, 20 valve stations, energy supply, cathodic protection and fiber optic manufacturing.

Romanian Deputy Prime Minister Marian Neacşu, Energy Minister Sebastian Burduja, Turkish Ambassador to Bucharest Özgür Kıvanç Altan, Kalyon İnşaat Executive Board Member Serdar Över and Transgaz General Manager Ion Sterian attended the signing ceremony held on 16 June.

Approximately 1,200 people are expected to be employed in the project.

(HAS) is published on the Anadolu Agency website, in summary. ..

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Israel to develop Gaza offshore gas field in coordination with Egypt, PA

Prime Minister Benjamin Netanyahu announces that Israel will work to develop a natural gas field off the coast of the Gaza Strip, a proposal that has been repeatedly floated for more than two decades.


A statement from the Prime Minister’s Office declares that as part of a “framework of existing efforts” between Israel, Egypt and the Palestinian Authority, the government is moving forward with developing the “Gaza Marine gas field off the coast of Gaza.”

The move is seen as a olive branch to the Palestinians and, if carried out, is expected to bring in billions of shekels to the PA. The Prime Minister’s Office says it’s pursuing the plan with an emphasis “on Palestinian economic development and maintaining security stability in the region.”

The statement says that the project is “subject to coordination between the security services and direct dialogue with Egypt, in coordination with the PA.”

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Natural Gas / LNG Utilization

Nigeria: As subsidy removal persist, a quest for gas as alternative increases

Due to the hardship induced by fuel subsidy removal, Nigerians are urged to shift attention to gas as alternative. With the abundance of natural gas reserves, the Compressed Natural Gas (CNG) and Liquefied Natural Gas (LPG) have been proposed as alternative to petrol in Nigeria. NIPCO has already started massive investment to shift the attention of Nigerians to CNG, which enable cars to run on gas. In a latest report, the PwC, on gas said: “


This has several potential advantages, including lower cost, reduced emissions, and improved fuel efficiency. “One of the most significant benefits of CNG is that it is considerably cheaper than petrol, which could result in substantial savings for vehicle owners. “Additionally, the cost of CNG is more stable than the volatile price fluctuations experienced by petrol. Also, the use of CNG could reduce vehicle maintenance cost due to its cleaner burning properties, which produce fewer engine deposits that clog up the engine over time,” it stated.

It further stressed the need for government to initiate good policies and incentives to promote the use of gas. Also commenting on gas as alternative, the President, Nigerian Labour Congress (NLC), Joe Ajaero, noted that the group is discussing with the Federal Government on the need to promote the use of gas as alternative fuel in times of subsidy removal. According to a report, Nigeria has over 200 trillion cubic feet of natural gas reserves, the biggest in Africa. Also the National President, Independent Petroleum Manufacturers Association of Nigeria (IPMAN), Chinedu Okorokwo has endorsed the use of Compressed Natural Gas (CNG) as an alternative energy source to cushion the effect of subsidy removal. “We have also discovered that by bringing an alternative that is cheaper than even firewood which is CNG will not only create relief for the government and its citizens but it is environmentally friendly. “The CNG is abundantly available in Nigeria than anywhere in Africa. In the Niger-Delta region, billions of tonnes of gas being wasted daily, these are huge amounts that should be accruing to our GDP but we are wasting it because there is no market for it. So, we are asking the government to create the market,” he said. He further noted that the introduction of CNG would cushion the effect occasioned by the high price of fuel currently as a litre of CNG would not cost more than N130 and it could be less

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US: NOVA joins hands with Nopetro to develop Renewable Natural Gas (RNG)

NOVA Infrastructure, a New York-based PE firm, partnered with Nopetro Energy to create a renewable natural gas (RNG) focused platform, as the fight for decarbonization using cleaner sources of energy continues to grow.Dubbed Nopetro Renewables, the platform will construct a landfill-gas-to-RNG facility in Vero Beach, Florida.Nopetro is led by Jorge Herrera. In addition to investing in the newly formed Nopetro Renewables’ platform, NOVA also has made an equity investment in Nopetro Energy.


The deal marks the seventh platform investment for NOVA. The firm closed its first infrastructure fund on $565 million in July 2022.

PE Hub spoke with NOVA’s co-founder Allison Kingsley, and senior vice-president Stephen Denis, about what attracted them in this space.

Opportunities to generate renewable natural gas comes from landfills, dairy farms, wastewater treatment plants and municipal waste facilities, Denis said.“One thing that we do like about the space is that there is growing optionality for offtake,” he said, adding, “you can sell the gas into transportation customers that might fuel their vehicles with [compressed natural gas] CNG.

”CNG is a gasoline and diesel fuel alternative that consists primarily of methane. Nopetro owns and operates RNG distribution facilities in Florida and supplies CNG to government counterparties such as the Orlando Lynx bus system, garbage trucks and other industrial partners under long-term contracts in the Florida market.

What could also push demand is the fact that many regulators are pushing for the wide use of RNG in a bid to cut fossil fuel use. This could trigger more demand, Denis said.“There is also a growing trend towards gas utilities being mandated by the states where those utilities operate to purchase a certain portion of their gas supply as RNG,” he said.

The government is also pushing policy and funding that promote clean energy use. The Inflation Reduction Act was widely celebrated as a milestone for energy transition.

But voluntarily, some corporates are gearing up to using more renewable energy, a move that is contributing to the growth of the RNG market. “That’s really driven by ESG goals of large corporates and energy companies where they have made internal decisions to supply a certain portion of their energy usage as renewable fuels,” he said.

Companies like Amazon are building a fleet of trucks that run on CNG.

Other opportunities come from cashing in on tax credits.

In terms of growth, Kingsley said their target will be both on the organic and M&A front, banking on the “strong industrial and commercial relationships” that the firm has developed in the sector to bring new customers onboard and grow the business.“In terms of M&A, this is a fragmented space and I think there are interesting opportunities either for acquiring underlying assets or buying existing companies,” she added.

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UK: National Grid Grain LNG celebrates unprecedented utilisation

Grain LNG hits a new utilisation record, the equivalent of almost 14 per cent of total GB gas demand. National Grid’s Grain LNG, Europe’s largest Liquefied natural gas (LNG) terminal, has hit a new utilisation record, exporting 102,589 GWh of gas over a twelve month period, the equivalent of almost 14 per cent of total GB gas demand.


National Grid’s Grain LNG, Europe’s largest Liquefied natural gas (LNG) terminal, has hit a new utilisation record, exporting 102,589 GWh of gas over a twelve month period, the equivalent of almost 14 per cent of total GB gas demand.

Over the same period ( 1 June 2022 – 31 May 2023) Grain LNG also unloaded 111 ships originating from multiple countries, demonstrating its continued global reach and operational capabilities.

Simon Culkin, Importation Terminal Manager at Grain LNG said: “Given the UK’s energy integration with Europe, the last twelve months have seen high levels of exports via the interconnectors. For our customers, Grain LNG provides the ability to store the gas and send it out when the market conditions are right. With the ability to swing from minimum to maximum flows within a short period of time, it is also an ideal partner to intermittment renewables.

The 102,589 GWh send out was into the national and local transmission systems (NTS/LDZ), resulting in an almost 45% utilisation.

Grain LNG is a critical part of the UK’s energy infrastructure and the terminal offers market participants direct access to the UK’s NBP (National Balancing Point), one of the world’s leading gas trading hubs.

Located on the Isle of Grain in Kent, Grain is currently able to store and deliver enough gas to meet at least 25% of UK gas demand, or all of London and the South East’s gas demand. To continue providing energy security, Grain is currently engaging with potential customers on long-term regasification capacity starting in 2029.

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Norway : Gasum launches bio-LNG station in Norway

Finnish state-owned energy firm and LNG supplier, Gasum, has launched a new bio-LNG fueling station for trucks on the western coast of Norway. .According to a statement by Gasum, the company has joined forces with Posten, the Norwegian postal service, and ARIM, a waste management company, to open the new gas filling station in Alesund municipality.


Besides bio-LNG, the station also offer CNG.. Posten’s and ARIM’s investments in biogas trucks gave Gasum the necessary base load volume to invest in the filling station, it said.

The new station caters to logistics companies operating in the region as well as to long-haul traffic from Alesund through Trondheim or Oslo all the way to Sweden.

It is situated in the Digerneset Næringspark logistics hub and is a crucial component in Gasum’s expanding Nordic gas filling station network, which is already supporting the growth of biogas in the heavy-duty segment, the firm said.

The Alesund station is Gasum’s fourth bio-LNG or LBG filling station in Norway, with several new filling stations to be established in coming years, it said.

Gasum recently also started building a new bio-LNG station in the municipality of Keminmaa in northern Finland.

Biogas already now accounts for almost all the gas sold by Gasum as a transport fuel for all vehicle segments in Finland.

Gasum’s strategic goal is to bring 7 TWh of renewable gas yearly to market by 2027, the firm previously said.

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Global LNG Development

Egypt, Jordan partner to optimize natural gas infrastructure

RIYADH: Egypt and Jordan have entered into a collaboration agreement that allows the North African nation to use the floating storage regasification unit at the Sheikh Sabah port in Aqaba. FSRU terminals are crucial in the liquefied natural gas value chain, forming the interface between LNG carriers and the local gas supply infrastructure. 


As part of the agreement, the Jordanian side will receive LNG from Egypt and pump back some of the natural gas through transborder pipelines to the African country if needed. 

According to Egypt’s Ministry of Petroleum and Mineral Resources, the agreement aims to reduce the operational costs of LNG storage and regasification and secure gas supplies for both countries. 

Moreover, the Egyptian firm EGAS and the Jordanian-Egyptian company Fajr have agreed to collaborate to supply the Jordanian industrial sector with natural gas, utilizing the infrastructure that extends to Jordan. 

The cooperation comes within the framework of reducing operational costs for Jordan’s electricity system and enhancing the security of the energy supply for the two countries. 

The agreement was signed by Saleh Kharabsheh, Jordan’s minister of energy and mineral resources and Tarek El-Molla, Egypt’s minister of petroleum and mineral resources. 

Egypt’s transformation from a gas importer to an exporter occurred in late 2019 following the discovery of numerous wells that radically altered the country’s gas supply. 

Egypt’s total natural gas production currently averages 6.5 billion cubic feet per day to 7 billion. 

The country has set ambitious plans to increase its petroleum exports by 15 percent this year, reaching $21 billion. The government seeks to achieve an annual surplus of $3 billion in oil balance, Asharq reported. 

In 2022, Egypt’s natural gas production surged to 50 million tons, a significant rise of approximately 14 percent from 2021.   

This increase enabled the country to meet local demands while exporting 8 million tons worth $8.4 billion, starkly contrasting the $3.5 billion in 2021.

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Australia: Tamboran secures land for proposed Northern Territory LNG project

A total of 170 hectares have been allocated on a ‘do not deal’ basis for a period of 12 months. New South Wales, Australia-based Tamboran has secured exclusivity for a 170-hectare project on the Middle Arm Sustainable Development Precinct from the Northern Territory Government to develop the proposed Northern Territory LNG (NTLNG) project.


The 170 hectares have been allocated on a ‘do not deal’ basis for a period of 12 months. This allows the company to progress a ‘concept select’ phase for the proposed liquefied natural gas (LNG) development.

Expected to utilise the low reservoir CO₂ gas from the Beetaloo Basin, the NTLNG project is due to start LNG production by 2030.

At the site, Tamboran plans to build an LNG project with an initial capacity of 6.6 million tonnes per annum, with the potential for future expansion.

This will be conditional on completion of the concept select study, successful Beetaloo appraisal and flow testing, and approvals from the government.

Tamboran Resources managing director and CEO Joel Riddle said: “Securing a strategic site at Middle Arm is a significant milestone for Tamboran and the Beetaloo Basin. The enormous scale of the Basin means that the low reservoir CO₂ natural gas has potential to deliver large and scalable volumes over the long term, not only for Australia’s East Coast gas market but also to international markets.

“Providing affordable natural gas to Australia and our regional partners is anticipated to enable a reduced dependency on coal-fired power generation, while delivering a significant reduction in global greenhouse gas emissions.

Tamboran intends to sanction the proposed LNG development by 2026 if it is deemed commercially viable.

Riddle added: “We are excited to be working closely with the Northern Territory Government in realising their vision for the Middle Arm precinct and transformation of the NT’s economy to reach A$40bn ($27.2bn) by 2030.”

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China: TGE awarded contract for Shenzen LNG peak shaving terminal extension

Shenzhen Gas Corporation Ltd has awarded TGE Gas Engineering an EPC contract for the Shenzhen LNG storage and peak shaving II expansion project.


The scope of work is two, 160 000 m3 full containment LNG storage tanks, the process plant, and a new loading/unloading berth for LNG vessels with storage capacities from 3000 – 217 000 m3.

The extended plant will have a 2 million tpy send-out capacity of LNG. TGE will perform this project in a consortium with CIMC Enric Engineering Technology Co., Ltd (CET) and China Construction Second Engineering Bureau Ltd (CSCEC).

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Russia’s Novatek has developed its own LNG-producing technology

MOSCOW (Reuters) – Russian company Novatek said on Tuesday it has developed its own technology to produce large-scale volumes of liquefied natural gas (LNG), a key step in boosting LNG production and raising Russia’s global share in the fuel market.


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.

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Philippines: First Gen targets commercial operations at Batangas offshore LNG terminal early October

Philippines’ First Gen Corp aims to start commercial operations at its inaugural offshore LNG receiving terminal in Batangas in early October and is currently negotiating to finalize medium-term LNG supplies until 2027, company Chief Commercial Officer Jon Russell told S&P Global Commodity Insights in an interview.


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.

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Hong Kong: MOL FSRU receives first LNG for Hong Kong

Mitsui O.S.K. Lines Ltd has announced that the MOL FSRU Challenger, the world’s largest FSRU, owned by its wholly owned subsidiary MOL FSRU Terminal (Hong Kong) Ltd, has received the first LNG for Hong Kong in a commissioning process for an LNG import project. The project will soon begin commercial operation and supply gas to power plants in Hong Kong. The name of the FSRU will be changed to the Bauhinia Spirit.


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.

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Wärtsilä to deliver biogas upgrading and liquefaction solution for Gasum bio-LNG facility

Wärtsilä will deliver the know-how and equipment for a significant Swedish bio-LNG project. The Wärtsilä solution will upgrade the biogas from agricultural waste and then liquefy it into high quality bio-LNG. The installation has been ordered by Gasum AB and it will be located at the company’s facility near Götene, Sweden. The order was booked by Wärtsilä in May 2023.


When operational, the Wärtsilä offering will be capable of producing 25 tpd bio-LNG. Bio-LNG is formed by purifying biogas by removing hydrogen sulfide, carbon dioxide, and water vapour before it is liquefied at -160°C. It has the same calorific value and other properties making it usable as an environmentally sustainable fuel fully compatible with fossil LNG.

Götene biogas plant project is very important to us. It is the first of our five large biogas plant projects in Sweden in the coming years. After thorough and extensive procurement phase we were happy to conclude the deal with Wärtsilä. We have high expectations on the equipment and service, and are confident that Wärtsilä will meet those,” stated Eero Lallukka, Senior Manager, Procurement at Gasum.

“Wärtsilä’s corporate strategy is focused on decarbonising our customers’ operations. Our biogas upgrading and liquefaction capabilities in support of this bioLNG facility are fully in line with this commitment. We look forward to supporting Gasum as they work to expand their operations in promoting green fuel alternatives,” commented Rolf Håkansson, Business Development Manager, Biogas Solutions, Wärtsilä Gas Solutions.

The full Wärtsilä scope of supply includes the delivery, installation, and commissioning of the upgrading and liquefaction equipment. Delivery is planned for August 2024, and the facility is expected to be fully operational at the beginning of 2025.

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LNG as a Marine Fuel/Shipping

South Korea: Samsung Heavy Industries nets $518mln deal for two LNG carriers

South Korean shipbuilding company Samsung Heavy Industries (SHI) has received an order to construct two liquified natural gas (LNG) carriers. The South Korean heavyweight signed the contract with an undisclosed shipowner from North America. The value of the contract is KRW 659.2 billion ($518 million).


The LNG carriers are slated for delivery by February 2028, SHI said in its stock exchange filling. Since the beginning of this year, SHI has won orders worth $3.2 billion, or 34 percent of its 2023 target of $9.5 billion. The orders include the construction of six LNG carriers, two oil tankers and a floating LNG gas facility. Three months ago, the shipbuilder announced it will build two LNG carriers for an unnamed shipper from Asia-Pacific under KRW 674.5 billion ($517 million) contract.

The company kicked off 2023 with the order for a floating LNG facility. The shipbuilder received orders of $12.2 billion and $9.4 billion respectively in 2021 and 2022, exceeding its target.

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China: NTS launches LNG dual-fuel newbuilds for Himalaya Shipping and EPS

China-based New Times Shipbuilding (NTS) has held launching ceremonies for two LNG dual-fuel bulk carriers built for Himalaya Shipping and Eastern Pacific Shipping (EPS).

The launching ceremony for Himalaya Shipping’s 210,000 dwt bulk carrier was held on 9 June. Named Mount Neblina, the vessel is the sixth in a series of twelve ships Himalaya Shipping has on order at Chinese NTS.

All vessels are expected to be delivered by the end of the third quarter of 2024.

As reported recently, the shipowner has chartered out nine of its twelve dual-fuel 210,000 dwt Newcastlemax bulk carriers and is witnessing strong interest for the three remaining ones.

The launching ceremony for the LNG dual-fuel 210,000 dwt bulk carrier, Mount Cook, built for EPS was also held on 9 June. The Chinese shipyard is building a total of eleven dual-fuel bulk carriers for EPS.

Last month, Mount Cook’s sister vessel, Mount Tai, was named and delivered.



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

Japan is investing $107 billion into developing Hydrogen Energy to cut emissions, stabilize supplies

In a bid to combat carbon emissions, the Japanese government has approved a revised plan that focuses on expanding the use of hydrogen as a fuel source. The ambitious goal is to increase the annual supply of hydrogen sixfold by 2040, accompanied by a substantial investment of 15 trillion yen ($107 billion) from public and private sectors.


Japan heavily relies on hydrogen produced from fossil fuels, but the revised plan aims to change that. However, experts have raised concerns that the strategies in place, such as the commercialization of hydrogen and ammonia, primarily benefit major industries deeply entrenched in fossil fuel technologies, which hold significant sway over government policies.

The revised plan outlines nine strategic areas of focus, including the development of water electrolysis equipment, fuel storage batteries, and large-scale tankers for hydrogen transportation.

Chief Cabinet Secretary Hirokazu Matsuno emphasized the potential of the hydrogen industry, stating that it can achieve a triple feat of decarbonization, stable energy supply, and economic growth. Matsuno expressed the government’s intention to promote hydrogen extensively in terms of demand and supply.

Japan envisions transforming into a “hydrogen society,” but the hydrogen industry is still in its early stages. Additional legislation is being drafted to support the construction of necessary infrastructure and supply chains to facilitate the commercial use of pure hydrogen and ammonia.

During a hydrogen council meeting, Prime Minister Fumio Kishida outlined Japan’s aspirations for an “Asian zero-emission community,” where Japanese expertise in hydrogen, ammonia, and other decarbonization technologies can make a valuable contribution. Kishida stressed that setting ambitious goals will enhance predictability and encourage long-term investment in large-scale hydrogen supply and demand.

The Cabinet also addressed the challenges posed by liquefied natural gas (LNG) shortages resulting from economic sanctions against Russia due to the Ukraine conflict. With rising demand for LNG as an alternative to Russian natural gas, Japan aims to develop a long-term strategy to secure stable energy supplies.

However, critics argue that the strategies prioritizing the commercialization of hydrogen and ammonia primarily serve the interests of influential businesses and major industries deeply invested in fossil fuel-based technologies, giving them significant control over government policies.

Despite these challenges and criticism, Japan remains steadfast in its vision of becoming a “hydrogen society” and contributing to an Asian community characterized by zero-emission technologies.

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Oman’s renewable hydrogen potential offers multiple benefits in Net Zero Journey

Oman’s high-quality renewable energy resources and vast tracts of available land make it well placed to produce large quantities of low-emissions hydrogen – a fledgling industry today that can attract investment to diversify and expand the country’s export revenues while reducing its natural gas consumption and emissions, according to a new IEA report released today.


IEA Executive Director Fatih Birol presented the new report, Renewable Hydrogen from Oman: A Producer Economy in Transition, to Oman’s Minister of Energy and Minerals Salim Al Aufi during a roundtable meeting with senior IEA leaders and analysts at the Agency’s headquarters in Paris. It is the first IEA report of its kind that analyses renewable hydrogen potential in a fossil fuel producer country. The analysis builds on the IEA’s ongoing technical cooperation with Oman to support the country’s clean energy transition.

Oman aims to produce at least 1 million tons of renewable hydrogen a year by 2030, up to 3.75 million tonnes by 2040 – and up to 8.5 million tonnes by 2050, which would be greater than total hydrogen demand in Europe today. The 2040 hydrogen target would represent 80% of Oman’s current LNG exports in energy-equivalent terms, while achieving the 2050 target would almost double them.

“Oman is an oil and gas producer country that is taking an enlightened approach to its energy future, with a clear long-term vision and strong net zero ambitions,” said Dr Birol. “Thanks to its huge potential for low-cost solar and wind, renewable hydrogen is set to bring multiple benefits to Oman. The IEA is very pleased to be working with Oman on policy and technical matters as the country moves ahead on its journey to a net zero economy and shows other producer countries what is possible.”

“From an energy perspective, Oman is better known for being an oil and gas developer, however it is also blessed with globally competitive solar and wind energy resources, and the most economically rational action for us is to embark on using this as the most viable and sustainable energy of tomorrow, including decarbonising the power generation, local industry and hydrogen production for export,” said Minister Al Aufi. “We’re pleased to be working with the IEA on key aspects of our transition and are very encouraged by the insights offered by this report.”

Oil and gas today represent around 60% of Oman’s export income, and domestic natural gas accounts for over 95% of the country’s electricity generation. In 2022, Oman announced a target to achieve net zero emissions by 2050 and began reducing fossil fuel use in its domestic energy mix. Based on IEA analysis of the current global project pipeline, Oman is on track to become the sixth largest exporter of hydrogen globally, and the largest in the Middle East, by 2030.

Oman’s hydrogen projects will use electrolysers powered by renewable electricity to extract hydrogen from desalinated sea water. Oman benefits from high-quality solar PV and onshore wind resources, as well as vast amounts of available land for large-scale projects. It is also conveniently situated along important market routes between Europe and Asia, with existing fossil fuel infrastructure that can be used or repurposed for low-emissions fuels. Oman has extensive expertise in handling and exporting both LNG and ammonia that is directly applicable to renewable hydrogen and hydrogen-based fuels.

Oman is implementing concrete measures to achieve its ambitious targets. In 2022, the government established an independent entity, Hydrogen Oman (HYDROM), to lead and manage its hydrogen strategy. So far, 1 500 square kilometres of land has been put aside for development by 2030 – and up to 40 times more land has been identified for potential production in the long term. Six projects have already been allocated land for renewable hydrogen in the country’s first such auction process.

Oman’s renewable hydrogen exports are likely to be transported initially in the form of ammonia, the report says. While Oman already exports around 200 000 tonnes of ammonia a year, its ammonia export capacity would need to be 20 to 30 times higher by 2030 if it wants to become a significant international hydrogen supplier in that timeframe, requiring significant and timely investment, especially for storage tanks and dedicated deepwater jetties.

Meeting Oman’s hydrogen targets will require a massive increase of renewable power, with around 50 terawatt-hours of electricity needed to meet the 2030 target, greater than the current size of the country’s entire electricity system. This is expected to further accelerate cost reductions and benefit the country’s power system as well. Based on recently awarded bid prices in the region, utility solar PV and wind are likely already competitive with electricity generation from natural gas in Oman. The IEA report’s analysis indicates that Oman can cost-effectively achieve its targets of renewables reaching 20% of the country’s electricity mix by 2030 – and 39% by 2040.

Scaling up production of renewable hydrogen in Oman to 1 million tonnes by 2030 would require cumulative investment of around USD 33 billion. An additional USD 4 billion would be required to bring renewables’ share of the national electricity mix to 20%, the report says. Achieving its targets and using one-third of renewable hydrogen for domestic uses would significantly contribute to Oman’s clean energy transition. The benefits would include reducing domestic use of natural gas by 3 billion cubic metres a year and avoiding 7 million tonnes of carbon dioxide emissions.

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Argentina: Delving deep into Argentina’s LNG, hydrogen bills

Argentina is working on the legislative front to help attract investment in LNG production infrastructure and low-emission hydrogen projects.. Regulatory frameworks that incentivize and protect investment are widely deemed a vital piece of the jigsaw puzzle – as are improved macroeconomic stability and offtake contracts.


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.

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UK: How a UK hydrogen car industry could cut fuel costs and carbon emissions

British car company Jaguar Land Rover’s owner, the Indian conglomerate Tata, is expected to finalise a deal soon to build a multi-billion pound electric vehicle (EV) battery plant in the UK.


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.

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