NGS’ NG/LNG SNAPSHOT – June1-16, 2023
City Gas Distribution & Auto LPG
THINK Gas launches its CNG Station at Bairagarh, Bhopal
Delhi NCR / Bhopal, 2 June 2023: THINK Gas launched its compressed natural gas (CNG) station in Bairagarh, Bhopal. This strategic addition strengthens THINK Gas’s network in Bhopal to an impressive 26 CNG stations, further solidifying its commitment to providing eco-friendly and efficient fueling options to the region.
Conveniently situated on the Bhopal-Indore State Highway 28, the newly launched station holds a prime location near Sant Hirdaram Nagar and the Commercial Bus Depot in Bhopal. This ideal placement ensures easy access for residents and businesses in the area, catering to the high traffic demands of the institutional hub, including Sant Hirdaram Cooperative Society Colleges, Schools, Chirayu Medical College & Hospital, and various engineering colleges and schools nearby.
THINK Gas Bairagarh station is a one-stop solution for Autos, SCVs, LCVs, Commercial and School buses, enabling them to meet their CNG fueling requirements efficiently and conveniently. Offering a reliable and cost-effective alternative to traditional fuels, THINK Gas is dedicated to promoting cleaner and greener transportation solutions. Moreover, the location of this station at the entrance of Bhopal brings an added advantage to customers traveling from the Indore-Ujjain-Dewas regions. Those commuting through these regions can now experience a welcome change with THINK Gas Bairagarh station, ensuring their journey is not only smoother but also environmentally conscious.
SBSTC to set up three CNG fuelling stations in Asansol, Durgapur and Arambagh
The state-owned South Bengal State Transport Corporation (SBSTC) plans to set up three CNG fuelling stations of its own in Asansol, Durgapur and Arambagh in the coming months.
Today at a function in Asansol bus stand, law, judiciary and labour minister Moloy Ghatak has flagged off three new CNG buses of SBSTC which will operate in three different routes. Chairman of Asansol Municipal Corporation, Amarnath Chatterjee and Deputy Mayor, Abhijeet Ghatak were also present on the occasion.
“These three buses will operate on the Asansol-Nabadwip, Asansol-Purulia and Asansol-Katwa routes,”minister Moloy Ghatak said. From Asansol and Durgapur thirteen new buses have rolled out today. Chairman of South Bengal State Transport Corporation (SBSTC) , Subhas Dutta said that the state owned corporation has been eyeing expansion and at the same time will also reduce its carbon footprint and has been focussing on Green buses with CNG and electric buses.
SBSTC in fact is planning to introduce 100 CNG buses this year and has registered a record earning of Rs.15 crores from ticket sales in this January. It is now eyeing to earn Rs.17 crores from ticket sales every month with the introduction of its new CNG buses.
The turnaround is particularly significant as the company has suffered huge financial losses between 2020 to 2022, due to Covid-19 global pandemic outbreak.
With its headquarters in Durgapur, SBSTC was established in the year 1963. It mainly covers the districts of Burdwan, Bankura, Purulia, Midnapur, North-24 Parganas, Howrah, Hooghly and Kolkata.
SBSTC operates throughout the entire state of West Bengal and covers almost all historical places and tourist points like Digha, Garbeta forest, Bishnupur, Mukutmanipur, Susunia Hill, Kangsabati project, Ajodhya hill, Santiniketan, Murshidabad Hazarduari (Nawab Palace), Tarapith temple, Massanjore Dam, Farakka Barrage, Gour, Nabadwip, Mayapur, Siliguri and Darjeeling, Tarakeswar, Thakurnagar etc. There are 23 CNG and PNG filling stations at present which will be added to in the next one year.
Mahindra launches the new Supro CNG Duo – its first Dual-Fuel small commercial vehicle
Ahmedabad, June 9: Mahindra & Mahindra Ltd. (M&M), the market leader of Small Commercial Vehicles (SCVs) in India, today announced the launch of the Supro CNG Duo, its first Dual-Fuel vehicle in the Small Commercial Vehicle Segment. The Supro CNG Duo provides best-in-class payload and class leading mileage and builds on our promise of offering customers superior performance with maximum profits.
With a starting price of ₹6.32 lakh (ex-showroom Gujrat), the Supro CNG Duo offers a winning combination of features. It can run on both CNG and petrol, giving operators class leading fuel economy along with Mahindra’s legendary reliability and quality. The new Supro CNG Duo is loaded with industry-first features such as a direct-in-CNG start that allows the vehicle to be turned on while in CNG mode, promising customer’s superior savings. What’s more, the Supro CNG Duo offers intelligent CNG leak detection for added safety and seamless switching between CNG and petrol options.
Baneswar Banerjee, VP & National Sales Head –Auto Division, M&M, unveiled the Supro CNG Duo before the media at Ahmedabad. He explained in detail about the ‘Double ki taaqat’ vehicle as he said “the introduction of the Supro CNG Duo is a clear reflection of Mahindra’s deep-rooted philosophy Rise for Good which drives positive change in the lives of individuals and communities as well as businesses.”
Velusamy, President, Automotive Technology and Product Development, M&M, in his message conveyed, “The new Supro CNG Duo has been engineered as a smart and easy-to-operate dual-fuel small commercial vehicle that will not just offer reduced emissions but lower operating costs as well, leading to substantial savings. We have integrated several industry-first features in the new Supro CNG Duo – these include direct-start CNG, Intelligent CNG leak detection for maximum safety and the best-in-class payload capacity of 750 kg. What’s more, in combination with the largest CNG tank capacity of 75 litres and superior mileage, the new Supro CNG Duo has made range anxiety irrelevant. Owing to all these innovations and more, we are sure the latest small commercial vehicle from Mahindra will once again prove to be a tremendous asset for its customers and operators.”
The Supro CNG Duo stands out for several other reasons including a best-in-class payload capacity of 750 kg, superior range of 325km with a large CNG tank capacity of 75 litres in its class and freedom from range anxiety resulting in more business opportunities and greater earnings.”
The new SCV is equipped with a powerful 20.01 kW (27BHP) BS6 RDE complaint engine, providing 60 Nm torque and best-in-class mileage of 23.35 km/kg. The vehicle features 145 R12, 8PR tyres and boasts 158 mm of ground clearance, ensuring higher performance and pickup even with a full load.
Customers can book the new Supro CNG Duo with a low down payment and avail of attractive financing schemes for a hassle-free purchase and ownership experience.
Built at Mahindra’s state-of-the-art plant in Chakan, Maharashtra, the Supro platform has undergone rigorous and full-test cycle runs, and has also been validated on all performance, safety and reliability parameters. It also comes with a class-leading warranty of 3 years/80000 km (whichever comes earlier). It will be available in two attractive colours: Diamond White and Deep Warm Blue. The vehicle is supported by Mahindra’s extensive service network, which is one of the largest in the country.
The Supro CNG Duo is equipped with a powerful 20.01 kW (27BHP) BS6 engine, providing 60 Nm torque and superior mileage of 23.35 km/kg which will deliver great value to the customer. Furthermore, the Supro CNG Duo offers the best-in-class payload capacity of 750 kg and the largest CNG tank capacity of 75 litres in its class. Additionally, for peace of mind, the Supro CNG Duo comes with an exceptional warranty of 3 years/80000 kms, whichever is earlier.
The Supro CNG Duo has been designed to enhance efficiency and performance through an advanced ECU that effortlessly transitions between petrol and CNG, ensuring optimal fuel efficiency and increased mileage. Through this technology drivers can enjoy the benefits of CNG without compromising on power or convenience. The built-in venting valve and moisture prevention features make this CNG kit ECU the top choice for superior vehicle performance.
Class Leading Comfort & Convenience
The Supro CNG Duo is equipped with user-friendly components, such as a pressure regulator designed for ease of maintenance, which results in reduced costs. The inclusion of a selectable piano switch for seamless petrol operation and an intuitive analogue CNG level indicator guarantees a user-friendly interface that feels familiar and effortless to use.
The Supro CNG Duo features a meticulously developed and rigorously tested CNG and petrol kit, ensuring reliable performance for drivers. The Supro CNG Duo boasts of an intelligent CNG leakage detection to ensure maximum safety for customers. Additionally, the kit includes a conveniently positioned fire extinguisher for quick response in case of any emergencies.
Policy Matters/ Gas Pricing/ Others
New gas stove for domestic PNG
The Minister of Petroleum and Natural Gas informed Rajya Sabha that a novel fuel efficient domestic cooking stove for Piped Natural Gas (PNG) has been developed by Petroleum Conservation Research Association (PCRA) in collaboration with CSIR-Indian Institute of Petroleum (IIP) Dehradun.
This is the first product of its kind in the Country. Entire combustion system including burner, mixing tube, venture etc. has been customized in this new stove to handle PNG.
The stove has been optimized to have the highest thermal efficiency. The newly developed PNG stove has a thermal efficiency of around 55% in comparison to the maximum efficiency of 40% for the modified LPG stoves presently being used on PNG by the domestic households.
PCRA has been promoting this newly developed PNG stove which has a cost almost similar to normal LPG stove.
PCRA has signed a Memorandum of Understanding (MoU) with the Energy Efficiency Services Limited (EESL) under Ministry of Power for developing and implementing a model for marketing this new PNG stove by EESL for PNG customers on pan India basis.
Adani Total Gas Challenges PNGRB Orders, Appeals to APTEL
Adani Total Gas has lodged an appeal with the Appellate Tribunal for Electricity (APTEL) against the ‘challenged’ orders issued by the Petroleum and Natural Gas Regulatory Board (PNGRB) on 25th April and 26th April, as stated in a regulatory filing.
According to the company’s regulatory filing, these orders concern the authorization for the Noida, Faridabad, and Gurugram Geographical Areas (GAs). On 26th April, PNGRB granted IGL permission to supply gas to a portion of the area, while Adani Total was designated as the supplier for the remaining region.The company has contested PNGRB’s decision to award or grant authorization for the ‘Faridabad-1’ area within the Faridabad District GA.
However, it has accepted the authorization for the Faridabad 2 GA, without any prejudgment.”With respect to this matter, we would like to notify that the Company has filed an Appeal against the Challenged Orders dated 25th April 2023 and 26th April 2023 of PNGRB before the Honourable Appellate Tribunal for Electricity (APTEL), insofar as they pertain to the PNGRB’s decision(s) of awarding/granting authorization for the ‘Faridabad-1’ area of the Faridabad District GA. The Company has accepted the authorization of Faridabad 2, without prejudice,” stated the company.
Hardeep Puri spoke about ‘Global Alliance on Biofuels’ with USA and Brazil
New Delhi: “Indian hydrocarbon industry is gravitating towards a new arena of development. Further, a 7.2% economic growth in FY 2022-23, indicates resilience in India’s economy despite multiple global headwinds during the year arising from economic and geo-political uncertainties”, said Union Minister of Petroleum & Natural Gas and Housing & Urban Affairs Shri Hardeep Singh Puri, addressing the august gathering of leaders, innovators media personnels’ and pioneers in the Oil and Gas Industry, at FIPI’s Oil & Gas Awards-2022 ceremony, last evening. Shri Rameswar Teli, Minister of State for Petroleum and Natural Gas & Labour and Employment; Shri Pankaj Jain, Secretary, MoP&NG were also present on the occasion.
Shri Hardeep Puri also spoke about the ‘Global Alliance on Biofuels’ with the USA and Brazil during India’s Presidency of G20. ”The energy transition, with its requirement of combining disruption and scale, will only be truly successful when all stakeholders, big and small, collaborate to complement each other’s strengths through the creation of symbiotic relationships and strong ecosystems. It is crucial to acknowledge that our energy transition journey is ongoing, and we face challenges that require collective efforts. However, with the determination and resilience of our nation, I am confident that we will continue to make significant progress towards a sustainable and prosperous energy future”.
Complimenting FIPI for felicitating the new clean energy initiatives taken up by Indian oil and gas companies, Shri Puri said, “This is my second FIPI award function and I am happy that this year more than 20 award categories including recognition to Phd. thesis from FIPI student chapters in new energy areas is also featuring in the coveted list of awards. The sanctity of the awards is clearly evident from the grandness of the evaluation committee comprising of a former Secretary along with ex-CMDs of Oil PSUs and eminent Scientists”, added the Petroleum Minister.
Talking further about the prestigious awards Shri Puri said that the FIPI Oil and Gas Awards have been created to provide an encouraging and motivating platform for all the participants to strive for excellence in their respective fields. Over the last few years, FIPI Oil & Gas Awards have emerged as the most prestigious awards for the Indian Oil & Gas Industry. The Award categories ranges from Individual appreciation awards for Best Innovator, Best Women Executive, Young Achiever of the Year Award to Outstanding Performance in areas of Exploration and Production, Refining, Marketing, Digitalization & Sustainability, all of which envelope important aspects that lead to the symbiotic growth of the industry.
Addressing the gathering, Shri Puri said, that “India is undertaking an ambitious journey of energy transition culminating in India achieving ‘Net Zero Carbon’ by 2070. However, for the transition to be enduring and stable, it is imperative that the accessibility and affordability aspects of energy remain intact. While we are only one of the G20 countries on course to achieve its Paris ambitions, we are also aware that in the coming decades, India’s energy base load will be met by hydrocarbons. In this context, Government of India has undertaken landmark reforms in the upstream, midstream, and downstream sectors of Hydrocarbon industry in India”, said Shri Puri.
Shri Puri further said that reforms in the energy sector in general and the oil & gas sector in particular demonstrate our commitment to energy security, ease of doing business and energy transition. “With cabinet approving a series of critical gas pricing reforms which would not only lay foundation of a sustainable, affordable, and secure energy future for Indian citizens, but will also incentivize investment in India’s E&P sector by ensuring that gas production from new wells of nomination fields will receive 20% higher prices. These reforms will not impact private operators of NELP/ HP-HT fields or new gas production from field development plans submitted after February 2019”, added the Petroleum Minister.
Highlighting the importance of gas pricing reform decision, Shri Puri said that in absence of these the gas prices would have been uncompetitive to alternative fuels and hindered the expansion of the gas-based economy. “The prices of gas for priority consumers would have increased by about 10% in the next half-year and continued to rise in the subsequent periods”, added Shri Puri.
“The Administered Pricing Mechanism (APM) will be determined monthly at 10% of the average Indian Crude Basket Prices, with a ceiling (US $6.5/MMBTU) and floor (US $4/MMBTU). The ceiling will remain the same for the first two years and then increase by US $0.25/MMBTU every year, to adjust for any cost inflation”, said the Petroleum Minister.
Throwing light on the foresightedness of the government, Shri Puri explained the benefits of correct decisions taken at the correct time, “General public has already started reaping the benefits of planned pricing. We have already seen that the average cost of PNG has been reduced by about 10%, and CNG has seen a 6-7% reduction in prices. As a developing nation we are importing 85% of our oil demand and close to 50% of our demand for natural gas, therefore we are acutely aware of the need for a just and stable energy transition, stated Shri Puri.
Laying emphasis on Government’s plans on clean and green energy, Shri Puri said that the Government plan has 4 planks: – (i) Diversification of supplies (ii) Increase of alternate energy sources like Biofuels, Ethanol, CBG and Surya Nutan (iii) Increasing E&P footprint (iv) Energy targets through EVs & Hydrogen. “India has one of the largest synchronous grids in the world, capable of handling intermittent renewable energy and we have achieved ‘One Nation-One Grid-One Frequency’. “We have enacted Green Hydrogen Policy with a production target of 5 million tonnes by 2030 and related development of renewable energy capacity”, added the Petroleum Minister.
Addressing the gathering, Shri Rameshwar Teli said, “In line with our Clean and Green energy vision under the Green Hydrogen Policy of the Government of India, the target of production of same is 5 Million Tonne by 2030. The OMCs are working relentlessly to achieve it”.
Mr. Arun Kumar Singh, Chairman, FIPI in his welcome address said that FIPI is all set to play a role, more crucial than ever, to handhold our members to negotiate through the challenges of energy transition.
Electric Mobility/ Hydrogen/Bio-Methane
MC starts work on establishing bio-CNG plant at Bhagtanwala
After getting the nod from the government for the installation of a bio-CNG plant at Bhagtanwala, the Amritsar Municipal Corporation has started making the required arrangements such as land and segregation of garbage to implement the project.
The Central Government approved the proposal of a bio-Compressed Natural Gas (bio-CNG) plant in Amritsar recently. On the call of the civic body, the private solid waste management firm, working in the city, will set up a plant to make bio-CNG from wet waste.
According to information, around 450-500 tonnes of wet waste is generated daily in the city, out of which 60 per cent tonnes of waste is collected and the remaining 40 per cent waste is being dumped here and there.
The MC may face several challenges in setting up the plant in Amritsar. Even though the MC has issued instructions for the solid waste management company to do door-to-door collection of segregated garbage. But segregation is not being conducted at the household level. The company is also not equipped to get segregation of garbage done during collection.
In 2016, the Amritsar Municipal Corporation had given a contract to a private firm to process the garbage to remove the heaps of garbage from Bhagtanwala. Over eight lakh tonnes of garbage is lying there. The solid waste management company does not have the sufficient land to set up the waste-to-energy plants.
A senior MC official said as per the proposal, the solid waste management company will set up a plant to make gas from wet waste in the city. A Japanese company will provide machinery for the purpose of setting up the plant. With this, residents of the city will get rid of the garbage. After getting the detailed project report (DPR) from the company, it will be sent to the government.
HPCL launches pilot study on E27 and ethanol-blended diesel
New Delhi: Hindustan Petroleum Corporation Limited launched a pilot study on vehicles using E27 fuel and ethanol-blended diesel.E27 fuel is a blend of 27 per cent ethanol and fossil-based fuel.
The oil marketing company became the first in India to initiate such a research program, in line with the “Roadmap for Ethanol Blending in India by 2025”, which aims to promote the adoption of ethanol blending in gasoline.
India has already rolled out 20 per cent blended fuel, though, in a phased manner, in April 2023 and widespread availability is expected in two years.E20 blending in petrol was introduced in the country by the Centre with the aim of reducing the country’s oil import cost, energy security, lower carbon emission, and better air quality, among others.
Notably, the government had advanced the target of E20 fuel from 2030 to 2025.”Looking ahead, India’s next milestone in the Ethanol blending program is achieving 27% Ethanol blending beyond E20 fuel. With the success of the ongoing trials and the achievement of E27 fuel, India will proudly stand alongside Brazil on the global platform in the Ethanol blending program,” the Ministry of Petroleum and Natural Gas said in a release.
The release it is projected that by 2025, the use of E20 fuel will contribute to the reduction of more than 200 lakh tonne of greenhouse gas emissions.
India to become major exporter of green hydrogen by 2040: Puri
In terms of energy innovation, the minister stated that India has already significantly reduced the cost per unit of solar power, however, further success will come from the use of green hydrogen or the fuel of the future.
New Delhi: Union minister for petroleum and natural gas Hardeep Singh Puri on Wednesday said that India will turn into as a major green hydrogen hub and exporter by 2040, catering to both domestic and global demand.
Speaking at the CII Annual Session 2023, the minister said that the energy demand in the country would continue to grow at a rapid pace for the next 20 years, and energy demand in India would account for 25% of the global demand growth during the period.
He also said that along with the growth in cleaner fuels, the exploration and production of oil and gas in the country also would go up “exponentially”.
Citing the recent decision of OPEC and its allies, commonly known as OPEC+, to go ahead with additional production cuts, the minister said that although there were concerns that the move would cause a surge in global crude prices, it did not happen as several member countries of OPEC did not go ahead with the committed production cuts to avoid revenue losses.
“India’s energy sector is today witnessing a trilemma in terms of lack of availability, affordability and sustainability, and it is imperative to find out solutions to address these issues,” he said.
He was of the view that due to India’s size and complexity, India cannot afford even a marginal disruption in supply availability. Further, it is essential to prioritize affordability as there is no point in having accessibility without affordability, he added. The third essential focus area is sustainability,, Puri said.
Elaborating on the need for availability and affordability of energy supply, Puri said: “In India you can’t afford to suddenly raise prices.” He added that although India is following market principles with regards to setting the price, it continues to need some form of administered price mechanism.
The minister said it is essential to prioritize affordability as there is no point in having accessibility without affordability.
Further, in terms of energy innovation, the minister stated that India has already significantly reduced the cost per unit of solar power, however, further success will come from the use of green hydrogen or the fuel of the future.
He said that through the national green hydrogen mission, the government has already established an ecosystem for green hydrogen that is conducive to success.
India to push green hydrogen, digital agenda at G20
India’s G20 Sherpa Amitabh Kant on Friday said while there would be a consensus on the various issues that are being discussed at the forum during New Delhi’s presidency, the country will be putting forth a developmental agenda, including digital public initiative and the drive for green hydrogen.
Speaking at the Confederation of India’s (CII) southern regional conference in Chennai, he said the country has been advocating inclusive resilient growth when one-third of the world is facing recession, while developed countries wanted to discuss war-related issues, like food, fuel, and fertilisers. “We will do everything possible… despite the challenges and the global tension, we played a key role in Bali and will continue to do a key role for bringing all countries together. We are ambitious about the developmental issues and has been inclusive all along,” he said.
Asked about whether there are still any issues that have to be ironed out, Kant said only 50% of work has been done and the remaining half will be completed in another three month. In September, the stakeholders are converging in Delhi. “Many of the issues are being discussed in the third and fourth round. We are happy with the progress achieved so far on all the issues in the agenda,”he said.
Highlighting the importance of green hydrogen, Kant said India currently imports $200 billion of fossil fuel. The country can reduce this import bill by investing in green hydrogen and also be the biggest producer and exporter of green hydrogen in the coming years.
He said that while relative shares of the economies of the developed world to the global output were dwindling , countries like India, China and African countries have been on a path to growth because of the young demographies. To take advantage of the situation, he called on the industries to propel the manufacturing market which will make products of international standards at affordable rates which will in turn benefit the country’s economy.
According to him, for higher growth to be achieved, every state should be champions. “We need 10 to 12 states to grow at 10% plus to enable other states to also grow. The southern states have to play a key and critical role as they are the best in competition,” Kant said.
Mahanagar Gas To Set Up Rs 500 Crore Biogas Plant In Mumbai
City gas distributor Mahanagar Gas on Friday signed a memorandum of understanding with the Brihanmumbai Municipal Corporation to set up 1,000 tonnes per day compressed biogas plant in the megapolis at an investment of around Rs 500 crore.The proposed plant will process up to 1,000 TPD of deep segregated food and vegetable waste that will be supplied by the civic body, the utility company, which is a subsidiary of gas major Gail, a statement said.
The waste, also known as CBG feedstock, will be collected from hotels, restaurants, banquet halls, and large vegetable markets/mandis in the city. The feedstock supply will be managed by BMC and will include collection, segregation and delivery.The plant on completion will provide a three-in-one solution, functioning as a biomass waste treatment plant, an organic fertiliser production plant and a green fuel production unit. The compressed biogas produced by the plant will be consumed within the city, it said without disclosing how much will be the energy generation.
This is just the first step towards moving to cleaner energy sources and will be critical for improving the quality of life through greener methods. Involving school students is the best way ahead, by instilling in them the value of sustainability from an early age, said Deepak Kesarkar, guardian minister of Mumbai.Joining him, Mangal Prabhat Lodha, the guardian minister of Mumbai suburban district said this plant benefits both BMC and MGL since it not only reduces waste and helps enhance people’s quality of life, but also serves as a clean source of energy generation.The municipal commissioner and BMC administrator Iqbal Singh Chahal said the project is part of the BMC’s mandate to regulate not only legacy waste but also daily waste.
MGL chairman Mahesh Iyer said the signing of the MoU for the plant is the result of nearly six months of effort. The plant that will be built in Mumbai and get us closer to attaining the petroleum ministry’s objective of establishing 5,000 CBG plants in the country while also managing cities’ daily waste.It can also help us become less reliant on imported gas, which forms almost half of the country’s gas consumption, he added.Ashu Shinghal, the managing director of Mahanagar Gas, said the company is looking at achieving nine of the sustainable development goals through the plant –generating clean energy, mitigating the effects of climate change, reducing poverty and increasing employment.
Natural Gas / Transnational Pipelines/ Others
US: FERC approves TC energy’s US-Mexico North Baja natgas pipe expansion
May 30 (Reuters) – Canadian energy company TC Energy Corp’s North Baja Pipeline LLC unit has received permission from U.S. energy regulators to put the North Baja natural gas pipeline expansion in Arizona and California into service.
In a filing on Tuesday, the U.S. Federal Energy Regulatory Commission (FERC) clarified that its May 25 order included approval for all remaining facilities of the North Baja expansion. The 0.495-billion cubic feet per day (bcfd) North Baja expansion will supply more U.S. natural gas to Mexico, including to U.S. energy company Sempra Energy’s Costa Azul liquefied natural gas (LNG) export plant in Mexico, which is under construction.
The roughly $2 billion Costa Azul project on Mexico’s Pacific Coast will be able to turn about 0.43 bcfd of gas into LNG once it enters service around mid 2025.
One billion cubic feet of gas can supply about 5 million U.S. homes for a day.
The North Baja expansion cost an estimated $127 million, according to U.S. energy data.
FERC approved construction of the North Baja expansion in April 2022.
North Baja said it completed work on some facilities earlier this year.
North Baja is a bidirectional pipeline that entered service in 2002. It can move gas from Arizona to California and Mexico and from Mexico to California and Arizona.
Before the 2023 upgrade, North Baja could move about 0.5 bcfd of gas south from Arizona to California and Mexico, and about 0.614 bcfd north from Mexico to California and up to 0.695 bcfd north from California to Arizona, according to federal energy data. (Reporting by Scott DiSavino Editing by Marguerita Choy)
China prioritising Turkmenistan over Russia in next big pipeline project
China is accelerating the building of a long-delayed Central Asian pipeline to source gas from Turkmenistan even as Russia pushes its own new Siberian connection, as Beijing juggles its energy security needs with diplomatic priorities.
Beijing is keen to bolster Central Asia ties under its Belt & Road Initiative, but nearly a decade after construction began, the “Line D” project has been hobbled by complex price talks and the technical hurdles of laying a pipeline crossing another three central Asian nations, Chinese state oil officials said.
But Moscow’s recent push to land its second Siberia pipeline connection with China, the Power of Siberia 2, to make up for shrunken sales in Europe due to the Ukraine crisis, provides Beijing a lever to advance the central Asian project, according to Chinese oil officials and industry consultants.
“Central Asian pipelines are considered a cornerstone investment in China’s energy and geopolitical space. It’s a supply channel with strategic value that supersedes commercial concerns,” a state-oil official familiar with China National Petroleum Corp’s (CNPC) global strategy told Reuters.
China may eventually seal both deals to feed its massive long-term gas needs, but is prioritising Turkmenistan, industry officials said, as Beijing has long seen Central Asia as a frontier to expand trade, secure energy and maintain stability in its once-restive western Xinjiang region.
Combined, multi-year contracts worth tens of billions of dollars to bring gas via both pipelines would meet 20% of China’s current demand. The pipelines are key to Beijing’s goal of using gas as a bridge fuel towards its carbon neutrality targets and also helping to shield it from the volatile tanker-carried liquefied natural gas (LNG) market.
Estimated in 2014 to cost $6.7 billion, Line D would carry 30 billion cubic meters of gas a year.
Speaking last week at the first in-person summit of central Asian leaders in the ancient Silk Road city of Xian, President Xi Jinping urged parties to accelerate laying Line D, which would be China’s fourth gas pipeline to the region, almost a decade after the start of construction in Tajikistan.
In 2022, China imported 35 bcm gas or worth $10.3 billion via three pipelines from Turkmenistan, compared with 16 bcm via a single pipeline from Russia at about $4 billion.
Reflecting renewed urgency, CNPC last week launched the feasibility study for a 200-kilometer connection from Xinjiang’s border with Kyrgyzstan to the Chinese town of Wuqia as the first receiving point, said a senior source involved in appraising the project.
“This means D Line is getting ready,” the person told Reuters, adding that construction on the domestic trunkline in Xinjiang could begin next year.
Separately, a CNPC official told Reuters last week that the company’s commercial teams are “standing by” awaiting a mandate to advance the project, without elaborating.
Without a final gas supply contract, CNPC has only built part of the first tunnel in the mountainous Tajikistan capital Dushanbe where Line D begins, the official said.
China’s state planner the National Development and Reform Commission did not immediately respond to a request for comment.
Russia: Novatek mulls 1,300 km pipeline to LNG plant in Murmansk
The natural gas company intends to build a major natural gas plant in the Kola Peninsula that will be connected with a pipeline to Gazprom’s national grid.
Regional authorities in Murmansk have lobbied a northbound pipeline connection to the Kola Peninsula for decades, a practically every Post-Soviet governor has had the project on the agenda.
In the end, nobody seemed to take the plans seriously any longer.
But the war with Ukraine and Russia’s subsequent detachment from the European energy market might now restore faith in the project. Not only among the regional establishment in Murmansk, but also among federal authorities and energy companies in Moscow.
Russia today has a significant surplus of natural gas that need to find a new purpose. Gazprom plans to use parts of the energy in a string of petrochemical investments in Yamal. But there is room for more, and Novatek now proposes to build a LNG plant in the Kola Peninsula.
The Murmansk LNG is to have a capacity of 20,4 million tons per year and the first two of three projected trains are to be ready in 2027. The three trains will be floating gravity-based structures built at Novatek’s Kola Yard in Belokamenka. When ready, they are likely to be stationed somewhere in the Kola Bay.
The project includes a pipeline connection to Volkhov, the gas distribution hub located near St.Petersburg, and it will take advantage of cheap electric power from the Kola Nuclear Power Station, Kommersant reports.
Novatek seems confirms its intention to forge ahead with the plans. A news channel associated with the company itself shares information about the project.
The building of the pipeline, that is believed to have the capacity to transport up to 30 billion cubic meters per year, will require a close cooperation between Novatek and Gazprom. The former is also likely to depend on the latter for supplies of the needed gas volumes.
The development of the Murmansk LNG will be a major triumph for Andrei Chibis, the Murmansk Governor that over the past years has been a frequent visitor to key federal decision makers. Over the last 14 months, Chibis has met with Aleksandr Novak, Russia’s Deputy Prime Minister responsible for the energy sector, as much as four times.
The projected pipeline might not only facilitate the building of the Murmansk LNG, but also the gasification key parts of the Kola Peninsula. Today, the far northern region is among the country’s regions with the least level of gasification, and regional heating systems depend on expensive and polluting fuel oil (mazut).
Philippines: 1,200-MW Ilijan gas plant set to reopen
San Miguel Corp. is set to reintegrate the 1,200-megawatt Ilijan natural gas plant in Ilijan, Batangas to the national grid on June 2 this year, bringing much-needed additional capacity to the grid, sources said.
Department of Energy officials are set to visit the facility on Monday for the reopening, which was initially targeted on May 26.
SMC president Ramon Ang confirmed the reopening of the plant, which is expected to help provide stability in the power supply amid the projected high demand in the dry months and in the coming years.
SMC through power arm SMC Global Power Holdings Corp. in April took delivery of the country’s first-ever liquefied natural gas cargo that would fuel the Ilijan power plant.
Ang expressed confidence on meeting the target date following the significant progress made in the construction of the country’s first LNG import terminal by Atlantic, Gulf and Pacific International Holdings.
“With the reintegration of the Ilijan power plant into the power grid system, the country will be better assured of energy supply security these coming summer months and beyond. Hopefully, with all available power facilities operating–with no plants breaking down or going on unscheduled shutdown–we will have more than enough capacity for the rest of the year, and consumers will not have to experience brownouts or supply rotations,” said Ang.
The Ilijan plant has been on extended outage since June 2022 after its gas sale and purchase agreement with the Malampaya consortium expired.
Located in Batangas Bay, the new AG&P LNG terminal is flanked by the 1,200-MW Ilijan plant and the new 1,313-MW Batangas Combined Cycle Gas Plant also owned by SMGP.
The DOE expressed hope the reopening of the Ilijan plant would end the yellow alert status in the Luzon grid this year.
Global LNG Development
Bangladesh: QatarEnergy and PetroBangla sign 15-year LNG supply deal
QatarEnergy has signed a 15-year supply deal for liquefied natural gas (LNG) with Bangladesh’s state-owned PetroBangla for 1.8 million tonnes a year starting in 2026, CEO Saad al-Kaabi said on Thursday.
The latest contract with an Asian customer by the world’s top LNG exporter comes when Western countries, including Germany, push to win a chunk of the Qatari gas as competition ramped up following the Ukraine war.
It is also QatarEnergy’s second to Asia since it started selling the gas expected to come on stream from the North Field expansion project.
“The majority (of LNG exports) will be going to Asia and the other will be going to Europe and we’ll be more than sold out as far as volumes of NFE and NFS,” Kaabi told a news conference in Doha, referring to the two-phase North Field expansion plan.
The expansion will raise Qatar’s liquefaction capacity to 126 million tonnes per year by 2027, from 77 million currently.
Nasrul Hamid, Bangladesh’s Minister of State for Power, Energy and Mineral Resources, attended the signing of the PetroBangla deal in the Qatari capital.
Kaabi said QatarEnergy would sign LNG supply deals, which are close to be finalised, with European customers likely after the summer break, adding that the duration of contracts was not an issue during the negotiations.
But Europe’s climate goals – the EU aims to cut net emissions at least 55% by 2030, and to reach net zero by 2050 – mean its LNG buyers struggle to commit to long-term agreements.
“If a European is actually negotiating with me and has an issue, he will tell me ‘I have an issue with duration,’ I’ve not heard that,” Kaabi said.
Energy-hungry Europe still needs vast amounts to help replace the Russian gas that used to make up almost 40% of the continent’s imports before the Russian invasion of Ukraine.
But Asia, with an appetite for long-term sales and purchase agreements, has been ahead so far in securing gas from Qatar’s massive production expansion project.
South Korea: Cheniere And KOSPO Sign Long-Term LNG Sale And Purchase Agreement
Cheniere Energy, Inc. (Cheniere) announced that Cheniere’s subsidiary, Cheniere Marketing International LLP (Cheniere Marketing), has entered a long-term liquefied natural gas (LNG) sale and purchase agreement (SPA) with Korea Southern Power Co. Ltd (KOSPO).
Under the SPA, KOSPO has agreed to purchase approximately 0.4 MTPA of LNG from Cheniere Marketing on a delivered ex-ship (DES) basis from 2027 through 2046, with a smaller annual quantity to be delivered starting in 2024. The purchase price for LNG to be delivered under the SPA prior to 2027 will be a market-based price, after which the purchase price will be indexed to the Henry Hub price, plus a fee. The volumes associated with the SPA from 2028 through 2046 are subject to a positive final investment decision with respect to the first train of the Sabine Pass Liquefaction Expansion (SPL Expansion) project.
“We are pleased to enter into this long-term LNG contract with KOSPO in support of its growing natural gas-fired power generation capacity,” said Jack Fusco, Cheniere’s president and chief executive officer. “This SPA is expected to support the SPL Expansion, and we are excited to build commercial momentum as the project’s development progresses. This SPA further highlights Cheniere’s ability to provide a flexible, cleaner burning energy supply to meet both the energy security needs and environmental goals of our customers in the short and long term.”
The SPL Expansion is being developed to include up to three natural gas liquefaction trains with an expected total production capacity of approximately 20 MTPA of LNG. In February 2023, certain subsidiaries of Cheniere Energy Partners LP initiated the pre-filing review process with respect to the SPL Expansion with the Federal Energy Regulatory Commission under the National Environmental Policy Act.
Philippines : Cargo sought for flagship Philippines LNG project
First Gen has issued an invitation to bid for the maiden cargo for its grassroots floating storage and regasification unit-based liquefied natural gas import project in the Philippines that now is set to be operational within months.
FGEN is seeking a single cargo from “experienced LNG suppliers” to be supplied on a delivered ex-ship (DES) basis at Subic Bay Freeport in Zambales province. The cargo will be loaded on to the FSRU BW Batangas after facilitating its gassing up and cooling down.
The required delivery window for this spot cargo of 154,000 cubic metres —subject plus or minus 3% operational tolerance – is 1 August to 30 September.
The award is expected to be made on 6 July, according to the ITB notice.
“Besides providing LNG storage and regasification services, BW Paris (now renamed BW Batangas) will support the country’s ambition to be an LNG hub through additional services such as the reloading of LNG into trucks and small-scale LNG vessels,” said BW LNG on its website.
“Our solution will increase LNG access to nearby industrial areas as well as the rest of the Philippine archipelago.”
The FSRU was converted from a 2009-built tanker by Singapore’s Keppel Shipyard — part of Keppel Offshore & Marine that was recently acquired by compatriot Sembcorp Marine. The vessel is understood to have recently undergone some modification work at Malaysia Marine and Heavy Engineering’s Johor yard in Malaysia, prior to this week departing back to Singapore and then on to the Philippines.
BW Batangas has a regasification capacity of 550 million cubic feet per day of gas and can store up to 162,400 cubic metres of LNG.
Initial regasified volumes from the FSRU will be utilised by FGEN’s existing gas-fired power plant in the First Gen Clean Energy Complex in Batangas. The Philippines company has four such gas-fired power plants with combined capacity of 2.017 gigawatts – 1.92 GW baseload and 97 megawatts peak shaving – that for many years have received feed gas from the Malampaya offshore giant gas field where production is now in decline.
LNG is required to replace that gas supply to secure the energy security of the country and FGEN intends to source a mixture of term supplies, short-term strips and spot LNG cargoes to meet that requirement.
Wholly owned subsidiary FGEN LNG has a firm five-year time charter party deal for the FSRU BW Batangas — a project intended to accelerate the introduction of LNG to the Philippines, to meet the natural gas demand of existing and future gas-fired power plants of FGEN’s affiliates and third parties.
Philippines : Two LNG Terminals Completed in Philippines
Two liquefied natural gas (LNG) projects have wrapped up construction in the Philippines, opening up importation to meet growing energy demand in Southeast Asia’s second most populous country.
The facility by AG&P International Pte. Ltd. and Linseed Field Power Corp. in Batangas Bay has already started supplying a power plant in Batangas province while the other terminal owned by FGEN LNG Corp. is set to receive its first LNG cargo later this year, according to a press release by the Department of Energy (DOE) Friday.
The LNG fed to the Ilijan combined cycle plant enabled the power station to resume supply to the electricity grid Thursday, the department said. The 1,200-megawatt mill, owned by a Philippine subsidiary of Korea Electric Power Corp. and operated by Filipino conglomerate San Miguel Corp., ceased operation June 2022 after the fuel supply stopped from the depleting Malampaya gas field.
“All these developments are positive signals reflecting the continuous interest of the private sector in investing in critical infrastructures that will allow the country to import and utilize imported LNG and complement the available gas from the Malampaya reservoir to meet the country’s growing energy demand”, Friday’s announcement noted.
In April the country received its first-ever LNG supply from abroad, as announced by AG&P. The Singapore-based AG&P signed last year a 15-year deal with the Abu Dhabi National Oil Co. to supply the former with LNG, as announced by AG&P February 23, 2022.
The entry of LNG diversifies the Philippines’ energy mix, providing “flexibility” in meeting energy needs, the DOE said.
The department added, “This flexibility also enables our push to further develop intermittent renewable energy technologies such as solar and wind”.
The DOE has projected an annual growth rate in peak power demand of around seven percent from 2020 to 2040. To meet this, the nation of over 113 million people must raise installed capacity by more than five times from 22,317 MW in 2019 to 114,601 MW in 2040, according to the agency’s “Power Development Plan 2020-2040”.
Coal has historically been the Philippines’ biggest power source, accounting for 62,052 gigawatt hours (GWh) of the national gross power generation of 106,115 GWh in 2021, based on the department’s latest available data, released June 20, 2022. Contribution from natural gas that year at 18,675 GWh was ahead of oil at 1,616 GWh but behind renewables at 23,771 GWh.
However the department has imposed a moratorium effective October 2020 on the issuance of licenses for coal-fired plants in support of the transition to clean energy. The government in 2021 also joined the COP26 global pledge to phase out coal power by the 2040s.
Moreover, output from the Malampaya field, the only active of just two commercial natural gas discoveries on the islands, has consistently fallen since 2019 from 155.49 billion standard cubic feet (Bscf) that year to 113.61 Bscf in 2022, according to a DOE update published February 15. Shell PLC late last year completed the sale of its entire 45 percent operating stake in the field to local company Prime Infrastructure Capital Inc.
To support supply, the DOE has approved the development of seven LNG terminals, including the two now completed, to bring in LNG from overseas.
Technological Development for Cleaner and Greener Environment Hydrogen & Bio-Methane
Storing hydrogen in coal may help power clean energy economy: Study
Hydrogen is a clean burning fuel and shows promise for use in the most energy intensive sectors of the economy-transportation, electricity generation and manufacturing, the researchers said.
Coal may provide a potential new way to store hydrogen gas, much like batteries store energy for future use, addressing a major hurdle in developing a clean energy supply chain, according to a study. Hydrogen is a clean burning fuel and shows promise for use in the most energy intensive sectors of the economy-transportation, electricity generation and manufacturing, the researchers said.However, much work remains to build a hydrogen infrastructure and make it an affordable and reliable energy source, they said. This includes developing a way to store hydrogen, which is currently expensive and inefficient.
“We found that coal can be this geological hydrogen battery,” said Shimin Liu, associate professor of energy and mineral engineering at Penn State, US.”You could inject and store the hydrogen energy and have it there when you need to use it,” Liu said.Geologic formations are an intriguing option, the scientists said, because they can store large amounts of hydrogen to meet the peaks and valleys as energy demand changes daily or seasonally.”Coal is well-studied, and we have been commercially producing gas from coal for almost a half century. We understand it. We have the infrastructure. I think coal would be the logical place to do geological hydrogen storage,” Liu said.
The study, published in the journal Applied Energy, analysed eight types of coals from coalfields across the US to better understand their sorption and diffusion potential, or how much hydrogen they can hold.
Sorption is a phenomenon of capture of a gas or a vapour (sorbate) by a substance in condensed state (solid or liquid) called sorbent.All eight coals showed considerable sorption properties, with low-volatile bituminous coal from eastern Virgina and anthracite coal from eastern Pennsylvania performing the best in tests, the researchers said.”I think it’s highly possible that coal could be the very top selection for geological storage from a scientific perspective,” said Liu.
“We find that coal outperforms other formations because it can hold more, it has existing infrastructure and is widely available,” he added.
Depleted coalbed methane reservoirs may be the best candidates. These contain unconventional natural gas like methane and have become an important source of fossil fuel energy over the last several decades, the researchers said. The methane sticks to the surface of the coal, in a process called adsorption, they said.
Finland’s Gasgrid, Sweden’s Nordion plan 1,000 Km Hydrogen Network
HELSINKI, May 25 (Reuters) – Finland’s Gasgrid aims to establish a hydrogen pipeline network around the Bothnian Bay measuring 1,000 km (620 miles) by 2030, the company’s CEO Olli Sipila said in a speech on Thursday.
Gasgrid will partner in the project with Sweden’s Nordion Energi, Sipila added. (Reporting by Anne Kauranen; Editing by Terje Solsvik and Jan Harvey)
World’s first zero slip methane generator
New environmental performance data demonstrate that Qnergy’s PowerGen system is the first generator to enable 100% methane destruction. This Free Piston Stirling Engine (FPSE) demonstrates superior environmental performance, exceeding Environmental Protection Agency (EPA) guidelines by orders of magnitude, according to independent third-party testing.
The results show that, for the first time, environmentally-friendly, utility-grade electrical power can be sourced from methane generation at the site, using a generator with zero methane slip. The proven system is already in use on more than 1000 sites across the Americas, where it has delivered more than 15 million hours of reliable power, with a maintenance-free engine.
Qnergy’s PowerGen technology is based on an external combustion engine, with a clean-burning external combustor designed to work with any gaseous fuel. It uses power electronics and software to control for variable raw source fuel feedstocks. Third-party researchers tested the performance of the PowerGen, finding that combustion resulted in >99.998% (~100%) methane destruction efficiency, with particulate matter, carbon monoxide, and nitrogen oxide emissions levels at 0.11, 0.30, and 1.1 g/kWh, respectively, that meet and exceed EPA emission criteria.
Methane is a potent greenhouse gas, with 84 times the global warming potential of carbon dioxide over its first 20 years when allowed to escape into the atmosphere. The productive use of methane waste is a global challenge, given the many distributed sources, from upstream well pads in the energy industry to farms and organic waste sites. These diverse methane sources all require power to capture, store, and/or convert methane into useful energy.
Historically, facilities that emit methane have been unable to use raw gas methane as a fuel, due to the challenges of corrosive contaminants, fluctuations in flow, and purity. Conventional generators based on internal combustion engines perform poorly, requiring regular maintenance and suffering ongoing corrosion and high operating costs. In addition, these conventional engines do not fully combust methane, leading to methane slip, or discharge to the atmosphere.
“Addressing and mitigating distributed methane sources is a key pillar in curbing climate change,” said Ory Zik, CEO of Qnergy. “The difficulty is that methane production is distributed across so many sites and that the ability to capture and prevent emissions at these sites requires power. Using the raw gas itself to generate utility-grade electricity for local use is an ideal solution, but only if the generator can be assured to emit near zero methane missions.
“This research demonstrates how the capture and conversion of methane can be a perfect negative emissions source – turning a harmful greenhouse gas into ultra-low emission energy.” added Zik.
These results corroborate earlier third-party testing conducted by the Canadian Emissions Reduction Innovation Center (CanERIC), which also certified the PowerGen as the only generator tested to achieve 100% methane destruction.