NGS’ NG/LNG SNAPSHOT – Mar-1-15, 2024

National News Internatonal News


City Gas Distribution & Auto LPG

Minister Hardeep S Puri inaugurates 201 CNG stations and India’s first small scale LNG Unit of GAIL

The 201 CNG stations have been set up by 15 City Gas Distribution (CGD) entities of GAIL group in 52 Geographical Areas (Gas) across 17 states.


Hardeep Singh Puri, Minister of Petroleum and Natural Gas and Housing and Urban Affairs inaugurated 201 CNG Stations and India’s first Small Scale LNG Unit of GAIL in Delhi today. Speaking at the event, he reiterated the Government’s vision to increase the share of natural gas in the primary energy basket to 15% by 2030. “Today marks another milestone on the road to becoming a gas-based economy and a step forward towards our pursuit for energy security combined with growth in a sustainable manner,” he said. “Development of National Gas Grid (NGG) and a wide spread CGD network for connecting the consumption centres with the supply points is vital for creation of a gas-based economy.”

The Minister dedicated the stations to the nation through video conferencing in the presence of Union Minister of State, Petroleum and Natural Gas & Labour and Employment Shri Rameshwar Teli, Secretary, Ministry of Petroleum & Natural Gas (MoPNG) Shri Pankaj Jain, Chairman and Managing Director, GAIL (India) Limited, Shri Sandeep Kumar Gupta, Additional Secretary, MoPNG Shri Praveen Mal Khanooja, GAIL Director (Finance) Shri R K Jain, Director (Projects) Shri Deepak Gupta, Director (Marketing) Shri Sanjay Kumar, Director (Business Development) Shri R K Singhal and senior officials of oil and gas sector companies including CGD entities.

The 201 CNG stations have been set up by 15 City Gas Distribution (CGD) entities of GAIL group in 52 Geographical Areas (Gas) across 17 states while India’s first small-scale LNG unit has been set up by GAIL at its Vijaipur LPG plant.

Out of these 15 CGD entities, 53 stations belong to GAIL Gas Limited, 50 to Indraprastha Gas, 43 to GAIL and 20 to Mahanagar Gas. Moreover, four belong to Avantika Gas, two to Bengal Gas Company, three to Central UP Gas, one to Goa Natural Gas, three to Green Gas, one to Haridwar Natural Gas, two to Purba Bharati Gas, one to Rajasthan State Gas, one to Tripura Natural Gas Company and one to Vadodara Gas.

As per the minimum work plan submitted by CGD entities, the Minister noted that the country will have around 17,500 CNG stations and around 120 million PNG (Domestic) connections by 2030.

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Amit Shah inaugurates PNG connections to 41 villages in Delhi

New Delhi: Union Minister for Home Affairs, Amit Shah inaugurated the PNG facility for 41 villages, under the ‘Dilli Gramodaya Abhiyan’ at Yashobhoomi, Dwarka Sector 25, on Monday.


The Dilli Gramodaya Abhiyaan was introduced in 2023 when Rs 960 crores worth of funds had been transferred to the Delhi Development Authority (DDA) to develop necessary infrastructure in the urbanised villages of Delhi.

The fund is supposed to identify and address requirements of civic amenities and implement them, tailored according to the local needs of the villages.

The PNG supply inaugurated on Monday spans across 41 villages through 100 km of pipeline network at an estimated cost of Rs 20 crores by Indraprastha Gas Limited (IGL). The first PNG pipeline was laid in Jaunti village, across a 7-acre land. Additionally, other development work has commenced in 178 villages worth Rs 383 crores.

“The works that are being undertaken under the Dilli Gramodaya Abhiyan are construction and improvement of roads, drains, footpaths, and central verges, along with horticulture work, provisioning of sewage treatment

plants (STPs) and decentralised sewerage treatment plants (DSTPs), sewage pumping stations (SPSS), rainwater harvesting, development and maintenance of ponds and water bodies, development of parks, playground and sports facilities, village library, community halls, and cattle care, among others,” informed the DDA.

The occasion was also attended by Union Minister of Housing and Urban Affairs, Hardeep Puri, and Lieutenant Governor of Delhi, V K Saxena.,Dwarka%20Sector%2025%2C%20on%20Monday.

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India to pump Rs 41,000 Crore into natural gas network for Kashmir, Northeast

India requires a strong gas infrastructure and regulatory reforms for cleaner, more sustainable energy to become gas-based. According to Oil Minister Hardeep Singh Puri, India will invest a sizable amount—Rs 41,000 crore—into the expansion of its natural gas network in the Kashmir and northeastern regions. This significant investment will fuel the rollout of city gas networks, providing retail CNG to automobiles and piped cooking gas to households over the coming years. 


The 12th city gas distribution (CGD) bidding round, encompassing eight geographical areas (GAs), witnessed participation from esteemed entities such as Oil India Ltd (OIL), Bharat Petroleum Corporation Ltd. (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL). 

Minister Puri emphasised the government’s dedication to promoting natural gas as a fuel for transportation, domestic use, and industrial purposes, aligning with the vision to transform India into a gas-based economy. Developing a robust gas infrastructure ecosystem has paved the way for significant investments, fostering cleaner and more sustainable energy solutions. 

Moreover, reforms in gas pricing and regulatory measures by the Petroleum and Natural Gas Regulatory Board (PNGRB) aim to ensure equitable access to natural gas across the nation. The 12th CGD bidding round, spanning six northeastern states and two Union Territories, marks a significant step towards expanding India’s natural gas footprint and achieving greater energy security and sustainability.

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Mahabubnagar gets Megha Gas domestic PNG connection, CNG station 

Megha Gas on Thursday launched the first domestic piped natural gas (PNG) connection in Mahabubnagar and inaugurated a compressed natural gas (CNG) mother station in Polepally Industrial Area of the district.


Petroleum & Natural Gas Regulatory Board (PNGRB) member Anjani Kumar Tiwari inaugurated the facilities, Megha City Gas Distribution said. The first PNG connection has been issued to a household in Bodajanmpet village of Balanagar mandal. The company intends to activate 500 such domestic connections there. The first industrial PNG connection is for South Asian Ceramics unit in the district, it said.

Mr. Tiwari said PNGRB aims to provide PNG connections to 12 crore people across the country. Of these, Megha Gas will be issuing 1.3 crore connections. The company will be setting up 2,200 CNG stations of the more than 17,000 such facilities mandated by the regulator. He complimented the company for completing construction of 120 km pipeline at a quick pace and ensuring domestic PNG connectivity to rural areas first. He said 35,000 km pipeline is being constructed to provide PNG connections in the country, especially villages.

“The launch of the projects heralds commencement of supply of the eco-friendly natural gas fuel to households, vehicles, commercial and industrial units under the Mahabubnagar Geographical Area (GA) licensed to Megha Gas by PNGRB. This is the first domestic PNG connection in Mahabunagar commissioned in the 11th CGD bidding round,” said Megha Gas Director and CEO Venkatesh Palimpati.

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Natural Gas/ Pipelines/ Company News


PM to inaugurated Barauni-Guwahati national gas pipeline

The 718km pipeline which traverses through Bihar, West Bengal and Assam has been built at a cost of Rs 3,992 crore by GAIL, a Maharatna PSU under the Ministry of Petroleum and Natural Gas


Prime Minister Narendra Modi is scheduled to inaugurate the Barauni-Guwahati Natural Gas Pipeline (BGPL), a milestone project linking the North East region to the National Gas Grid, during his visit to Assam on Saturday, a top official of the executing company, GAIL (India) Ltd, said.

This pipeline will provide a dependable source of clean energy, foster economic growth and enhance the overall well-being of the people of the region, GAIL’s executive director (Projects) AK Tripathi told reporters here on Friday.

The 718km pipeline which traverses through Bihar, West Bengal and Assam has been built at a cost of Rs 3,992 crore by GAIL, a Maharatna PSU under the Ministry of Petroleum and Natural Gas, he added.

The pipeline is designed to supply natural gas to nine geographical areas covering 31 districts across these three states through authorised city gas distribution (CGD) entities along its route, Tripathi said.

Tripathi highlighted the unique challenges encountered during the project’s execution, such as uneven terrains, hilly landscapes, and deep waterbodies.

“The BGPL is a unique project in terms of application of technology. The topographical challenges encountered were diverse, such as uneven land, hilly terrains, muddy turf and even deep water,” he said.

GAIL employed innovative techniques including micro tunneling and horizontal directional drilling to overcome these challenges, he added.

Tripathi emphasised that comprehensive measures were taken to minimise environmental impact during the project, including mitigation strategies to preserve water quality and vegetative cover along the pipeline route.

While acknowledging delays in the project’s completion, initially targeted for December 2021, the official claimed that there was no significant cost escalation associated with the delays.

The 24-inch diameter pipeline has the capacity to transport around 2.5 MMSCMD of natural gas and is expected to cater to domestic households, industries, commercial units, and automobile sectors in the North East region.

Through the CGDs, approximately 29 lakh households will receive piped natural gas in the nine geographical areas, with over 614 CNG stations planned in these areas.

Tripathi highlighted the environmental benefits of the project, stating that the transportation of natural gas through the pipeline will contribute to reducing around 7.67 lakh tons per annum of carbon dioxide emissions when operated at full capacity.

Furthermore, during the implementation of BGPL, the project generated direct and indirect employment opportunities, with about 15.8 lakh man-days created during the construction phase and around 70,000 man-days expected during the operation and maintenance phase, he added.

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IGL cuts compressed natural gas prices by Rs 2.5 per kg

State-run Mahanagar Gas (MGL) has reduced the prices of compressed natural gas (CNG) by Rs 2.5 per kg to Rs 73.50 per kg.. Mahanagar Gas, a state-run company, announced a reduction in the price of compressed natural gas (CNG) by Rs 2.5 per kg, bringing it down to Rs 73.50 per kg, effective from the midnight of March 5.


Before the price revision, CNG cost Rs 76 per kg in Mumbai and adjoining areas. This decision, as per a late-night statement from the company, is a result of a decrease in gas input costs.

“MGL has always been a customer-friendly company, consistently and promptly passing reductions in gas costs to its consumers to promote usage of natural gas,” the company statement read. 

The revised CNG price now offers a 53% saving compared to petrol and a 22% saving compared to diesel at the current price point in the financial capital.

The company believes that this price reduction will boost the consumption of natural gas in the transportation sector, thereby contributing to a cleaner and greener India.

The price reduction is due to the lower cost of domestically produced High-Pressure High Temperature. This comes after auto unions demanded fare hikes due to various factors, including the price of CNG. 

MGL had previously reduced the CNG price by Rs 3 per kg on October 23, bringing it down to Rs 76 per kg. The fluctuation in CNG prices played a role in the adjustment of auto and taxi fares in 2022 when it peaked at around Rs 90 per kg. 

In 2023, the CNG price dropped by Rs 14 per kg for the benefit of the public.

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Mahanagar Gas cuts CNG prices by Rs 2.5/kg in Mumbai; offering 53% savings compared to Petrol

The new maximum retail price (MRP) of CNG will be Rs 73.50 per kilogram, effective from the midnight of March 5, 2024, into the morning of March 6, 2024.


New Delhi: Mumbai-based Mahanagar Gas Ltd (MGL) has announced a reduction in the price of Compressed Natural Gas (CNG) by Rs 2.5 per kilogram in Mumbai and surrounding areas, attributing the cut to a decrease in gas input costs.The new maximum retail price (MRP) of CNG will be Rs 73.50 per kilogram, effective from the midnight of March 5, 2024, into the morning of March 6, 2024.According to MGL, the price reduction is part of its ongoing commitment to encourage the use of natural gas by making it more economically viable for consumers.”This reduction in CNG price would help to increase the consumption of natural gas in the transportation segment, which is a step towards making India cleaner and greener,” the company said in a statement.

With the revised prices, MGL claims that CNG will offer significant savings of 53% over petrol and 22% over diesel at the current price levels in Mumbai. This makes CNG not just an economically advantageous option but also one that aligns with consumer demand for convenience, safety, reliability, and environmental sustainability.”The price cut is expected to boost the consumption of natural gas in the transportation segment, aligning with India’s objective of transitioning to a cleaner and greener energy landscape,” said an expert.

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After MGL and IGL, Torrent Gas cuts CNG prices by Rs 2.50 per kg

“This reduction in prices of CNG has been done with an objective of promoting the usage of clean fuel and enhancing the ecosystem of natural gas.”


New Delhi: After city gas retailers in Mumbai and Delhi reduced CNG prices, Torrent Gas on Saturday announced a Rs 2.50 per kg reduction in compressed natural gas (CNG) prices across all its locations. “This makes CNG cheaper by up to 45 per cent vis a vis petrol and up to 37 per cent vis a vis diesel,” the company, which has a city gas license to sell CNG to automobiles and piped cooking gas to households in 34 districts, said in a statement.

“This reduction in prices of CNG has been done with an objective of promoting the usage of clean fuel and enhancing the ecosystem of natural gas.”

Mahanagar Gas Ltd, the city gas operator in Mumbai and its adjoining areas, on March 6, announced a Rs 2.5 per kg reduction in CNG price. Accordingly, the revised CNG price will be Rs 73.50 per kg.

MGL‘s CNG price now offers attractive savings of 53 per cent compared to petrol and 22 per cent compared to diesel at current price levels in Mumbai while delivering unmatched convenience, safety, reliability and environmental friendliness to consumers,” the firm had said in a statement on March 5.

A day later, Indraprastha Gas Ltd announced a similar price reduction in Delhi and the adjoining cities. “The retail consumer price of CNG is being reduced by Rs 2.50 per kg across all geographical areas of IGL from 6 am on Thursday, 7th March 2024. The revised selling price of CNG in Delhi shall be Rs 74.09 per kg, while it shall be Rs 78.70 per kg in Noida, Greater Noida and Ghaziabad.”

The reductions follow a softening in input gas prices.

Torrent Gas said it has 428 CNG stations and more than 1 lakh piped cooking gas customers across its areas of operation.

“This reduction in CNG price, besides leading to greater savings for CNG vehicle owners, is also expected to give an impetus to the sale of new CNG vehicles across various segments, including passenger and commercial,” it said.

CNG, which is already known as clean and green fuel, owing to its environment-friendly nature will become even more attractive for vehicle owners with this downward price revision. It will offer increased savings, along with better mileage and lower maintenance to all CNG vehicle users, it said.

Speaking about the reduction in gas prices, Torrent Gas managing director Manoj Jain said, “Torrent Gas has always been at the forefront in promoting the use of environment-friendly CNG. This reduction in CNG prices is expected to increase the offtake of new CNG vehicles and increase the consumption of natural gas in the transport segment”.

“Torrent Gas has invested deeply into building CGD network infrastructure in its geographical areas and is continuously working towards creating awareness about CNG and piped gas and helping consumers adopt economical and environment-friendly natural gas as fuel.”

Torrent Gas hold city gas licenses for 34 districts across 7 states (Tamil Nadu, Telangana, Uttar Pradesh, Gujarat, Maharashtra, Rajasthan and Punjab) and one Union Territory (Puducherry). Torrent’s authorised areas, across the country have a population of approximately 9 crore, about 7 per cent of the total population of India.

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GAIL and GAIL Gas announce significant reduction in CNG prices

New Delhi, March 9 GAIL (India) Limited and its wholly owned subsidiary GAIL Gas Limited, have announced a substantial reduction in the prices of Compressed Natural Gas (CNG) across several key locations in India where they operate.


The price reduction aims to make CNG more accessible and affordable for consumers, thereby encouraging the widespread adoption of cleaner fuel options and promoting sustainable transportation practices.

The price of CNG at GAIL and GAIL Gas CNG outlets has been decreased by Rs. 2.50 per kg.  

The CNG Price at Varanasi, Patna, Ranchi, Jamshedpur (East Singhbhum), Bhubaneshwar (Kordha), and Cuttack,  stands revised as Rs 81.17, Rs 84.54, Rs 87.15, Rs 87.08, Rs 87.26 and Rs 87.60, per kg respectively.

CNG Prices at GAIL Gas authorised Geographical Areas (GAs) are: Meerut – Rs 79, Sonipat – Rs 80.4, Dewas & Firozabad – Vrindavan – Bharatpur – Rs 89.50, Bengaluru – Rs 81.50, Dehradun & Raisen – Sehore – Shajapur – Rs 88.50, Mirzapur – Chandauli – Sonbhadra – Rs 84.50 ; Puri – Ganjam – Nayagarh & Adityapur – Rs 84.50; Giridih – Dhanbad-  Rs 71.50; Sundergarh- Jharsuguda – Rs 67.50 and Dakshin Kannada – Rs 81.

The decision to lower CNG prices comes at a crucial time when the automotive industry is witnessing a surge in the production and adoption of CNG vehicles by leading manufacturers such as Suzuki Motors, Tata, Hyundai, Mahindra and others.

Speaking on the announcement, Shri Goutom Chakraborty, CEO GAIL Gas & Executive Director (CGD), GAIL, said, “At GAIL, we are committed to promoting the use of clean and affordable energy solutions to benefit both consumers and the environment. The reduction in CNG prices reflects our dedication to making sustainable transportation accessible to all, while also supporting the government’s initiatives towards cleaner air and reduced carbon footprint.”

The reduced prices of CNG will not only result in cost savings for consumers but also contribute to a healthier and more sustainable environment. GAIL encourages individuals, businesses, and transportation fleets to take advantage of this opportunity to switch to CNG and join the movement towards a cleaner and greener future.,Rs%2087.60%2C%20per%20kg%20respectively.

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AG&P Pratham, Think Gas set for $1.1-billion merger

Mumbai:Global infrastructure investor I-Squared Capital-backed city gas distribution companies in India — AG&P Pratham and Think Gas Distribution — are set to merge, according to two industry executives aware of the development. The combined entity will be valued at over $1.1 billion, acquiring the heft that will help it compete with rivals. It will be a stock-for-stock merger — a share of one company for each of the other.


Currently, I-Squared holds 100% stake in Think Gas Distribution and 73% in AG&P Pratham, the India arm of Singapore-based Atlantic Gulf & Pacific (AG&P) City Gas. About 21% is held by AG&P and 6% by Japan’s Osaka Gas-led consortium. Since both companies are in CGD business, promoters have decided to consolidate operations.

This is aimed at optimising resources and improving utilisation of manpower.

CGD refers to the transportation or distribution of natural gas to consumers in domestic, commercial, industrial and transport sectors through a network of pipelines.

The size of the combined entity will help it take on competitors like Mahanagar Gas, Gujarat Gas, Indraprastha Gas, Gail Gas, Adani Total Gas and Torrent Gas among others.

Osaka Gas and Sumitomo Corp will invest $200-250 million of primary capital in the company as growth capital, said one of the persons cited above.

After the merger, I-Squared Capital will hold over 60% stake in the combined entity. AG&P will hold up to 15% and the Osaka Gas and Sumitomo-led consortium will hold 25%.

In January, the companies had applied to the European Commission in Brussels for merger approval. That was granted in February, said the people cited above.

India, the fourth biggest buyer of liquefied natural gas, wants to increase the share of natural gas in the energy mix to 15% by 2030 from 6% now and the CGD network will play a key role in reaching this target. The use of natural gas will also help reduce the carbon footprint and address climate change challenges. The infrastructure to support this growth is also being put in place. By 2030, the country will have 17,500 compressed natural gas stations and 120 million piped natural gas connections, union minister for petroleum and natural gas Hardeep Singh Puri said on March 6.

Under the 12th and latest CGD bidding round, state-run Oil India, Bharat Petroleum and Hindustan Petroleum among others won licences to building gas infrastructure in the Northeast and Jammu & Kashmir. The round covered 103 districts. The government has decided to spend Rs 41,000 crore to build infrastructure in six northeast states and the two union territories of Jammu & Kashmir and Ladakh.

AG&P, Think Gas, I-Squared Capital, Osaka Gas and Sumitomo didn’t respond to queries.

Osaka Gas is Japan’s second-largest gas supplier and the first Japanese company to invest in the city gas sector in India through AG&P City Gas. Sumitomo is a global trading and investment company. AG&P Group has a presence in engineering, procurement, and construction, city gas distribution businesses, and LNG terminals.

In 2021, Osaka Gas, through affiliate Osaka Gas Singapore and Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development (JOIN), invested up to $120 million in Singapore-based AG&P City Gas.

“With the formation of a new entity, there will be a pan-India presence. The management will become one and the AG&P’s managing director will be the managing director of the combined entity,” said one of the persons cited, adding that the companies have agreed to the deal in principle and are awaiting regulatory approvals.

In May 2023, ET had reported that Sumitomo, Mubadala Investments and Tokyo Gas were in the race to acquire a 30% stake in Think Gas. The report had also included talk about a merger proposal.

Think Gas holds seven licences to operate in 13 districts in India across the states of Punjab, Madhya Pradesh, Bihar, Uttar Pradesh and Himachal Pradesh and supplies natural gas to the domestic, commercial, industrial and automotive sectors. The company was established in 2018.

AG&P, or Atlantic Gulf and Pacific Co., is headquartered in Singapore and develops LNG import and regasification facilities as well as CGD networks. In India, its city gas distribution arm AG&P Pratham holds 12 licences to exclusively develop CGD infrastructure in 37 districts covering 8% of India’s land mass and spread across five states — Tamil Nadu, Kerala, Andhra Pradesh, Karnataka and Rajasthan.

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Policy Matters/ Gas Pricing/ Others

Govt raises domestic natural gas prices to $8.17 per mmBtu for March

The domestic natural gas price, however, will continue to remain at $6.5 for the month, as per the formula used for the calculation of prices. The price of domestic natural gas has been increased to $8.17  per million metric British thermal units (mmBtu) for March from $7.85 in the previous month, the oil ministry said in a notification.


The domestic natural gas price, however, will continue to remain at $6.5 for the month, as per the formula used for the calculation of prices.

According to the new gas pricing mechanism, domestic gas prices are now subject to a floor and ceiling of $4 per mmBtu and $6.5 per mmBtu, respectively. The price stood at $6.5 per mmBtu in January and February as well.

The domestic gas price notified by the government applies to the natural gas produced from the legacy and oil fields of Oil and Natural Gas Corporation Ltd (ONGC) and Oil India Limited (OIL)

Under the new pricing regime, domestic gas pricing is linked with imported crude pricing and would be at 10 percent of the Indian crude basket. The prices are revised every month.

The new pricing formula kicked in after a government-appointed panel led by energy expert and former Planning Commission (since renamed NITI Aayog) member Kirit Parikh recommended several changes in gas pricing to insulate domestic players and consumers from the volatility in global markets.

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Govt Aims for Threefold Rise in Natural Gas Usage by 2030

During the event, Shri Hardeep Singh Puri distributed the Letter of Intent to successful bidders of 12th CGD Bidding Round for their respective Geographical Areas.


In a significant stride towards achieving 100% coverage of country’s area for the development of City Gas Distribution (CGD) network, the Petroleum and Natural Gas Regulatory Board (PNGRB) hosted a Concluding Ceremony for the 12th CGD Bidding Round here today. The event was inaugurated by Shri Hardeep Singh Puri, Minister for Petroleum and Natural Gas & Housing and Urban Affairs, in the presence of Shri Tarun Kapoor, Adviser to Prime Minister, Dr Anil Kumar Jain, Chairperson, PNGRB, Board Members and Secretary of PNGRB. There was a large presence of key stakeholders from the oil and gas sector of the country and the successful bidders of 12th CGD Bidding Round.

During the event, Shri Hardeep Singh Puri distributed the Letter of Intent to successful bidders of 12th CGD Bidding Round for their respective Geographical Areas. The Minister acknowledged the efforts of MoPNG, PNGRB and the successful bidders towards building a robust oil and gas infrastructure. Minister highlighted that the Government has set an objective to invest $67 Billion in the natural gas sector in the next six years in order to provide Natural Gas to the end consumer at stable price. He further stated that in the recent years, support has been provided through policy and Regulatory framework for promotion of Natural Gas in the country.

Shri Puri informed that the current measures planned by the Government shall lead to three-fold increase in Natural Gas consumption i.e. 185 MMSCMD to 500 MMSCMD by 2030 and also help in promoting ancillary industries dependent on Natural Gas. Minister appreciated PNGRB for bringing Unified Tariff reform which would especially benefit the customers of far flung areas of the country.

Elaborating on the 12th CGD Bidding Round, the Minister said that in the 12th bidding round a total of 8 Geographical Areas were offered covering 6 North East States- Arunachal Pradesh, Meghalaya, Manipur, Nagaland, Sikkim & Mizoram and 2 Union Territories of Jammu & Kashmir and Ladakh. This round in totality covered 103 Districts. “Subsequent to this round, authorization for development of City Gas Distribution Networks in the entire country (except Islands) shall be awarded.”, he said. He said that the anticipated investment for 12th CGD Bidding Round is Rs. 41,000 Crores generating considerable employment opportunities.

Giving a snapshot of the Natural Gas infrastructure of the country, the Minister said that over 33,753 Kms of natural gas trunk pipelines are authorized in the country out of which around 24,623 Kms of pipeline are currently operational. He noted that there are 300 GAs authorized in the country, covering 98% of the population and 88% of its area for development of CGD Network. “1.21 Crore domestic PNG connections and 6,258 CNG stations have been established in the country till date. All this has been possible due to the robust gas grid of India.”, he said.

Addressing the gathering, Dr. Anil Kumar Jain, the Chairperson, articulated PNGRB’s current focus on creation of a vibrant and sustainable gas infrastructure across the entire country. The initiation of this bidding round specifically tailored for these States/UT reflects a strategic move to provide cleaner fuel within the delicate ecosystems of these regions. Dr. Jain further mentioned that CNG has a lot of potential in these states. In this regard, the development of North Eastern Gas Grid and Gurdaspur – Jammu Natural Gas Pipeline which have been authorized will play vital role for the development of natural gas network.

Shri Tarun Kapoor appreciated the impressive strides made by PNGRB, through the CGD initiatives undertaken in the bidding rounds. He also highlighted that the GAs offered under the 12th CGD Bidding Round are difficult areas which would require higher Capital Investment. Additionally, Shri Tarun Kapoor also stated that the PNG connection and CNG connection numbers needs to take off even more and in order to achieve this he highlighted the need for shifting existing industries to Natural Gas by providing them a stable and competitive price. Shri Tarun Kapoor also shared that combination of Natural Gas with Hydrogen Blending or Compressed Bio-Gas Blending should be explored.

Until 2014, only 57 Geographical Areas were authorized for development of City Gas Distribution Network in the country. Since then, there has been immense growth in the CGD sector and with successful completion of 12th CGD Bidding Round, wherein 7 more GAs are being authorized, with the addition of 250 GAs with in the last 10 years, the entire country has been authorized for development of CGD network. 

This landmark achievement by PNGRB will provide access to cleaner cooking fuel for households, support industrial and commercial facilities, and fuel transportation, marking a giant leap towards achieving a gas-based economy and would greatly help in conserving the natural environment of the country.

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MGL’s monopoly on Mumbai’s city gas network has ended: PNGRB

The downstream regulator has said that Mahanagar Gas Ltd (MGL) no longer has a monopoly over city gas networks in Mumbai. This can set off intense competition among gas marketers for customers in the lucrative metropolitan region and compress profit margins for MGL.


“As on the date, the infrastructure exclusivity period for the laying, building or expansion of the city gas distribution network has expired for” Mumbai & Greater Mumbai, which is operated by MGL, the Petroleum and Natural Gas Regulatory Board (PNGRB) has said on its website. The exclusivity period granted to MGL ended on April 11, 2021, it said. MGL was awarded the distribution license in January 2009.

The regulator also announced that the exclusivity period for Vadodara Gas Ltd (VGL) in Vadodara ended in March 2023. VGL had received the license in October 2016.

PNGRB also made it clear that no infrastructure exclusivity period was granted to Assam Gas Company for Upper Assam and Tripura Natural Gas Company for Agartala when they were awarded city gas distribution licenses in February 2015.

Previous regulatory attempts at ending distributors’ exclusivity have met with stiff resistance from companies, with several cases pending in the court today.

If MGL or VGL don’t legally challenge the PNGRB’s move on ending exclusivity, it could spur market competition and increase affordability for natural gas customers.

On Monday, oil minister Hardeep Singh Puri said the full benefits of gas sector reforms haven’t reached the end user. He also pointed towards the strong profits reported by city gas companies.

City gas companies get cheaper domestic gas and softer tax treatment for supply to households and vehicles. They, however, take advantage of their monopoly status and end up making big profit margins on CNG.

The government also wants them to take piped natural gas to more and more households, where progress has been much slower than the more profitable segment of CNG.

Ending exclusivity would allow competitors to set up marketing and distribution infrastructure in Mumbai and Vadodara, raising the quality of services and lowering the cost of supply for customers.

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Govt sets CBG blending targets for CGD networks to enhance sustainable fuel use

“The operationalization of CGD network across the country, volume of CBG marketed without co-mingling with natural gas by all CGD entities will be considered as blending to fulfil CBG obligation,” stated the memorandum.           


New Delhi: The central government has mandated the blending of compressed biogas (CBG) into the natural gas network starting FY 2024-2025, aiming to stimulate demand in the city gas distribution (CGD) sector and advance the country’s commitments towards achieving ‘Net Zero’.The office memorandum issued by the ministry of petroleum and natural gas details that CGD entities will gradually increase CBG blending obligation, which will be voluntary in the fiscal year 2024-2025, will become mandatory from the fiscal year 2025-2026 onwards, starting at 2.5% and gradually increasing to 5% by the fiscal year 2028-2029.

“The operationalization of CGD network across the country, volume of CBG marketed without co-mingling with natural gas by all CGD entities will be considered as blending to fulfil CBG obligation,” stated the memorandum.

To ensure the renewable nature of CBG, the memorandum outlines that CBG should be promoted as a green fuel, with its renewable origin guaranteed, and monetized through a tradable green certificate system. The Petroleum Planning and Analysis Cell (PPAC) is designated as the Central Repository Body to oversee the implementation guidelines for this blending obligation.The ministry’s directive underscores its commitment to enhancing sustainable energy resources and aligning with environmental goals. This move is also seen as a strategic step to reduce the nation’s dependency on imported fuels, fostering energy self-reliance and supporting the ‘Make in India’ initiative.

The development is poised to have a significant impact on India’s energy landscape, promoting the use of cleaner fuels and supporting the government’s sustainability objectives.

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LNG Use / LNG Development and Shipping

Swan Energy’s LNG arm prepays Rs 2,206 crore debt

To facilitate the pre-payment, the parent company Swan Energy has lent Rs 2,210 crore to Swan LNG.. Swan Energy on Monday said its natural gas business arm Swan LNG Pvt Ltd has prepaid Rs 2,206 crore of loan taken from a consortium of lenders.


Post-prepayment, Swan LNG’s debt has come down to Rs 1,611 crore and the firm will save around Rs 250 crore in interest cost annually, the company said in a statement without disclosing the lenders’ names. Before the repayment, the group’s overall debt stood at Rs 3,817 crore as of December 2023.

To facilitate the pre-payment, the parent company Swan Energy has lent Rs 2,210 crore to Swan LNG. Swan Energy had last week raised Rs 3,000 crore through a qualified institutional placement of equities to SBI Life, LIC, LIC Mutual Fund, Tata Mutual Fund, Infini Mutual Fund, SBI General Insurance, BNP Paribas Mutual Fund, Nomura, Diamond Asia, Bank of India Mutual Fund, ITI Mutual Fund, Goldman Sachs, Future Generali, Anand Rathi, and Quant Mutual Fund, among others.

Meanwhile, public sector fertilizer major IFFCO, which has a joint venture with Swan Energy, has moved the National Company Law Tribunal seeking to restrain the JV firm — Triumph Offshore — from passing any resolution without its approval and issuing any share/security to the lenders against loans. IFFCO owns a 49 per cent stake in Triumph Offshore, a floating storage and regasification unit

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Possibility of setting up LNG plant being explored in Rajasthan

Jaipur, Mar 4 (IANS): Rajasthan State Gas Limited (RSGL) has started exploring the possibilities of setting up a LNG plant in the state, Mines Secretary Anandhi said during a meeting of the board of directors of RSGL held at the Secretariat here on Monday.


With the setting up of the liquified natural gas (LNG) plant, the future fuel demand of LNG vehicles in the state can be met there itself. The fuel requirement of long distance goods vehicles and mining sector vehicles can also be met with this LNG fuel, Anandhi added.

The secretary said that Rajasthan Gas will have to chalk out an action plan to diversify its operations. Along with compressed natural gas (CNG) and Domestic Piped Natural Gas (DPNG) distribution networks, we will have to enter new areas like production and distribution of biogas and LNG. Praising the work of RSGL, she said that a campaign should be launched to connect new families with the gas distribution system through a domestic pipeline in Kota. New units in the industrial and commercial sector should be encouraged to make new connections by giving them information about the benefits and low cost of CNG-PNG, she added.

Managing Director of RSGL, Ranveer Singh said that there is a plan to set up two new CNG stations in the state. Till February, RSGL has provided an average of 47390 standard cubic meters of gas per day in the state, which is a new record. On an average, 45440 SCMD gas was provided daily by RSGL in the last financial year.

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Electric Mobility/ Hydrogen/Bio-Methane

PM Modi launches hydrogen-powered ferry: features, significance

Built by the Cochin Shipyard Limited, the ferry will be deployed for service in Varanasi. Here’s why India developing the environment-friendly vessel is significant.


Prime Minister Narendra Modi Wednesday virtually launched India’s first indigenously developed hydrogen fuel cell ferry. The vessel, manufactured by Cochin Shipyard Limited (CSL), will be deployed for service at Varanasi in Uttar Pradesh.

Built at a cost of Rs 18 crore, the ferry will be handed over to the Inland Waterways Authority of India by the CSL after rigorous trials. The Ministry of Ports, Shipping and Waterways met 75 per cent of the project cost.

What are the special features of the vessel?

The Hydrogen fuel cell vessel is a 24-meter-long catamaran, which can carry 50 people in its air-conditioned passenger area. The accommodation area has been constructed with high-quality fiberglass reinforced plastic, similar to metro train coaches.

Hydrogen fuel cell vessels do not use conventional batteries as the primary storage house of electrical energy. The vessels run on hydrogen fuel, which is stored in cylinders. This boat has five hydrogen cylinders that can carry 40kg of hydrogen and support eight hours of operations. The vessel is also fitted with a 3-kW solar panel.

Also in Explained | PM inaugurates Signature Bridge in Gujarat: All about India’s longest cable-stayed bridge

The hydrogen fuel cell-powered vessel has zero emission, zero noise and is energy-efficient, which makes it more environment-friendly. Since there are no moving parts, the ferry requires less maintenance than combustion vessels.

How do hydrogen fuel cells work?

A hydrogen fuel cell generates electricity by utilising the chemical energy contained in hydrogen. It releases only pure water, not discharging pollutants. Hydrogen is loaded into cells. The energy within the hydrogen is converted into electricity and heat, which is then used to power the vessel’s propulsion mechanism. In the fuel cell, the hydrogen reacts with the oxygen in the air to produce electricity. Unlike batteries, hydrogen fuel cells do not require recharging. Provided uninterrupted supply of fuel and oxygen, these cells would work continuously.

What type of cells have been used in the vessel?

This vessel uses a 50-kW PEM (proton-exchange membrane) fuel cell, with Lithium-Ion Phosphate batteries. The advantage is that the cells can quickly change their output depending upon the power demand. PEM fuel cells are popular in automotive applications because they operate at a lower temperature, and are lighter and more compact.

How was it developed?

India has now indigenously developed hydrogen fuel cells and their related systems.

The vessel has been built completely by the CSL, which also developed the vessel automation system and power management system. The hydrogen fuel cell system was developed by KPIT Technologies, Pune, in collaboration with the Council of Scientific and Industrial Research Labs, under the Union Ministry of Science and Technology.

While hydrogen fuel cell technology has been under development for maritime applications, only a few countries globally have done demonstration projects. This ferry, thus, has given India an early mover advantage to tap the potential of hydrogen as an emerging green fuel in the marine sector.

The ‘Harit Nauka’(green boat) initiative of the Ministry of Ports, Shipping and Waterways envisages a green transition of inland vessels. In line with this, the ferry can be replicated in other parts of the country for urban mobility. It is also a boost to the National Green Hydrogen Mission.

What is the Harit Nauka initiative?

In January 2024, the shipping ministry unveiled the Harit Nauka guidelines for inland vessels. As per the guidelines, all states have to make efforts to use green fuels for 50 per cent of inland waterways-based passenger fleets in the next one decade, and 100 per cent by 2045. This is to reduce greenhouse gas emissions as per the Maritime Amrit Kaal Vision 2047.

Globally, the shipping industry is increasingly transitioning to green fuels due to environmental regulations, sustainability goals, and advancements in green fuel technologies. Hydrogen and its derivatives are gaining attention for promising zero-emission fuels for the industry.,at%20Varanasi%20in%20Uttar%20Pradesh.

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Tambaram corporation to set up 150 tonnes per day bio-CNG plant

Chennai: Tambaram Corporation has called for bids to identify a contractor to build, operate, and maintain a 150-tonne per day capacity plant to treat wet waste and generate bio-CNG in Vengadamangalam in Chengalpet for 44.43 crore. “The bio-CNG plant will be ready next year,” said the corporation’s chief engineer, K Pandurangan.


Tambaram produces around 400 tonnes of total waste daily, and wet waste forms half of it. The latter will be sent to the bio-CNG plant for treatment, he added. “The bio-CNG generated will then be liquefied, bottled, and sold to restaurants and gas stations,” said the engineer.

The five microcomposting centres’ capacity to decompose wet waste is not sufficient. A couple of facilities in East Tambaram and Selaiyur are not working.

At least 65% of wet or organic waste can be converted to bio-CNG, said B Samuel Jacob, a biotechnology professor at the SRM Institute of Science and Technology. Around 130 tonnes of bio-CNG can be produced per day from 200 tonnes of wet waste.

He said that “bio-gas is a useful method to recycle organic waste over composting because the latter can release methane, a greenhouse gas, if done inefficiently. However, bio-CNG involves converting methane into fuel and will not release it into the atmosphere.”

Residents welcome the move but say that door-to-door garbage collection does not happen every day. “It is collected only five days a week, which is not regularly. The plant can be used to its full potential only if wet waste is collected every day,” said Malathy M, a resident of Madambakkam.

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CNG to be cheaper by Rs 2.50 in Mum from todayStarting today, the price of CNG in Mumbai has been reduced by Rs 2.50 per kg, benefiting motorists, taxis, and auto unions. This reduction will increase the consumption of natural gas in the transportation segment, contributing to a cleaner and greener India.108276266

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Madurai city to get bio-CNG plant

Madurai: In a significant stride toward sustainable waste management and renewable energy generation, the Madurai corporation has secured administrative approval from the department of municipal administration to establish a bio-CNG plant near the Vellaikal dumpyard. This ambitious initiative, under the Swachh Bharat Mission (SBM 2.0), is estimated to cost 65 crore and is poised to revolutionize the city’s approach to wet waste disposal while augmenting revenue for the corporation.


A senior corporation official revealed that the plant would leverage advanced technologies to efficiently process wet waste, transforming it into biogas, which will then undergo purification to become compressed natural gas (CNG) bottled for sale. With a capacity to treat 250 metric tonnes of wet waste daily, the plant is expected to generate additional revenue through the sale of bottled CNG. “The plant will follow the design-build-finance-operate-transfer (DBFOT) model, with tenders anticipated to be released within a week,” the official added.

Addressing the selection of Vellaikal as the plant site, the official emphasized safety concerns and the location’s suitability, surrounded by a compound wall to ensure clear boundaries from nearby habitation. The plant will be situated in the area where biomining is completed and land is reclaimed. “Biomining is progressing at a deliberate pace in Madurai; once land reclamation is complete, we will allocate necessary areas for the bio-CNG plant. Currently, the corporation is executing phase 2 of biomining at Vellakal with a budget of 34.95 crore,” added the official.

In Madurai corporation, daily municipal solid waste (MSW) generation ranges from 750 to 800 tonnes, of which 350 tonnes is wet waste. “While 250 tonnes of wet waste are directed to micro-composting centres, the CNG plant is expected to receive 100 tonnes per day initially, with potential for more if residents segregate waste properly,” noted the official.

Civic activists stress the importance of resident sensitization regarding waste separation for the success of the corporation’s ambitious project to establish a bio-CNG plant. “Most of the micro-composting yards in the city are not receiving wet waste properly for many days. Now, how will the corporation mobilize waste to the CNG plant, which will also be costly as all the waste has to be transported to the CNG plant in Vellaikal?” questioned M Raj Kumar, a civic activist.

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Three cos qualify for Bainguinim waste plantThe Goa Waste Management Corporations (GWMC) has qualified three bidders for a solid waste management facility at Bainguinim. The technology will be selected based on presentations and the lowest bidder will handle design, engineering, financing, construction, and installation.108022111

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All polling stns in city to be zero-waste zonesPatna Municipal Corporation will ensure garbage-free polling stations and EVM centres to increase voter participation. Dry and wet waste will be processed on the premises. A public awareness campaign will encourage people to vote. Special workshops will be held for PMC officials and employees.108091374

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IOCL to relaunch tender to set up a green hydrogen production unit

State-run IOCL will relaunch a tender for setting up a green hydrogen production unit, sources said. It also plans to set up units at all of its refineries as part of a Rs 2.4 trillion green transition plan to achieve net zero carbon emission status by 2046.


The company has cancelled its initial tender for the same after it led to bidders approaching the Delhi High Court. Meanwhile, an existing tender by BPCL to set up a green hydrogen production plant in Kochi may become the point of price discovery for green hydrogen in the country.

The cancelled tender had called for a 10 kilo tonnes per annum capacity unit to be set up on a build, own operate, and transfer basis at the state-owned oil marketing company’s Panipat refinery and petrochemicals complex. The company cancelled the tender in a corrigendum issued on February 21.

“A new tender will be relaunched going forward. The company is looking into it. Setting up a sustainable production base for green hydrogen is a national priority,” a senior person said. However, there is no clear timeline as to when the new tender may come in, he added.

Queries mailed to IOCL on the issue remained unanswered.

In the last tender, prospective bidders had flagged a conflict of interest on IOCL’s part. This was owing to GH4India Pvt Ltd, IOCL’s own joint venture with infrastructure and engineering major Larsen & Toubro (L&T).

Renewable energy company ReNew is also bidding for the tender. An industry body of green hydrogen producers, the Independent Green Hydrogen Producers Association had also moved the Delhi HC in November.

Price discovery soon

A similar tender to establish a 1,000 kilowatt (Kw) green hydrogen plant and refueling station at the Cochin International Airport in Kerala by BPCL now looks to be the first instance of green hydrogen prices being decided through bidding in India. The last date for submissions of bids is March 1.

The tender calls for a unit designed to generate 100 normal cubic metres per hour (Nm3/h) of green hydrogen via a 500-Kw electrolyser system, with the potential for expansion up to 200 Nm3/h.

The recently closed other big green H2 tender was by Solar Energy Corporation of India (SECI) under the aegis of the Union Ministry of New and Renewable Energy. SECI had issued a tender for both hydrogen and electrolyser manufacturing. For its maiden green hydrogen manufacturing tender, SECI called for bids against incentive that the Centre has allocated under the strategic interventions for green hydrogen transition (SIGHT) programme aimed to set up green hydrogen and electrolysers.

The list of successful bidders includes Calcutta Electric Supply Corporation (CESC), United Phosphorus Ltd (UPL), Reliance Green Energy, Torrent Power, Welspun Energy, ACME Cleantech, Greenko, JSW, and BPCL. Among these, CESC and UPL have submitted that they do not require any government incentive. The production capacity submitted by these companies is up to 0.4 million tonnes annually. It did not have any cost discovery mechanism. 

The SIGHT programme is one of the four components under the National Green Hydrogen Mission (NGHM) announced earlier this year. The NGHM is a key component of India’s plan to become energy independent by 2047 and achieve net zero by 2070. The mission aims to develop a total green hydrogen production capacity of at least 5 million metric tonne annually and secure investment of Rs 8 trillion by 2030. The Union Cabinet earlier this year had approved an initial outlay of Rs 19,500 crore for the NGHM, which was launched by Prime Minister Narendra Modi in 2021.

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Natural Gas / Transnational Pipelines/ Others

US: Kenworth delivers industry’s first 15-liter natural gas-powered truck to UPS

In a ceremony at Kenworth’s Chillicothe plant on February 20, Kenworth delivered the first T680 day cab with a 15-liter natural gas engine to UPS. Anthony Marshall, UPS’s vice president of maintenance and engineering, and Dennis Elford, its director of maintenance and engineering, received keys to the truck from Kevin Haygood, Kenworth’s assistant general manager for sales and marketing. Also, in attendance were Doug VanZuiden, Kenworth Chillicothe plant manager, Kevin Tobin, Kenworth general sales manager, and Doug Powell, Kenworth director of fleet management.


The Cummins X15N-equipped Kenworth T680 runs on Compressed Natural Gas (CNG) and is the first of several trucks utilizing the new powerplant that Kenworth is delivering to UPS. The engine produces between 400-500 hp with up to 1,850 lb.-ft. of torque. The first UPS truck has an engine rated at 400 hp with 1,650 lb.-ft. of torque. It’s paired with an Eaton Endurant HD Automated Transmission and a 175-diesel gallon equivalent (DGE) fuel delivery system.

“We’re pleased to lead the way with yet another clean engine option for our customers,” said Haygood. “UPS is a long-time customer and a leader when it comes to using alternative fuel vehicles, purchasing their first natural gas trucks from Kenworth 15 years ago. We couldn’t be happier to have Dennis and Anthony here to receive keys to a T680 with the new Cummins X15N engine.”

The Cummins X15N will meet upcoming (2027) stringent EPA emission requirements and CARB 2024 Low NOx standards. Its CO2 and NOx levels are both 90% below current EPA standards, and it features up to a 10% improvement in fuel economy over Cummins’ 12-liter natural gas engine. Kenworth is the first major truck manufacturer to offer an engine that meets CARB’s NOx emission standards. What’s more, it provides diesel-like power and performance, making it appealing for regional and long-haul operations. With high horsepower capability, the engine is much more capable over challenging terrain.

“We’re thrilled to be the first company to acquire the T680 with the X15N 15-liter natural gas engine,” said Marshall. “This new truck enhances our worldwide fleet of over 18,000 alternative fuel and advanced technology vehicles, which are essential for achieving our target of 40% alternative fuel in our ground operations by 2025 and carbon neutrality by 2050.”

Kenworth Truck Company, founded in 1923, specializes in the design and manufacture of The World’s Best® heavy- and medium-duty trucks. As a leader in the development of advanced diesel powertrains, zero emissions vehicles, connected truck technologies and advanced driver assistance systems, Kenworth is creating transportation solutions to drive a better world. Kenworth’s Internet home page is at Kenworth is a PACCAR company.

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Bangladesh: Petrobangla invites offshore bidding for oil, gas exploration 

Petrobangla, the oil, gas and mineral corporation, has floated the offshore bidding, inviting international oil and gas companies to explore in the Bangladesh maritime area in the Bay of Bengal


The tender, named “Oil and Natural Gas Exploration Under Bangladesh Offshore Bidding Round 2024”, was published in local newspapers and websites of concerned government entities including Bangladeshi missions abroad on Sunday giving six months time until September 9, 2024 for submission of the bids.

As per the floated tender, a total of 24 offshore blocks — of which nine are shallow blocks — and 15 deep sea blocks are available for the bidding round. 

The nine shallow sea blocks are SS-01, 02, 03, 05, 06, 07, 08, 10 and 11) and 15 deep sea blocks are DS-08, 09, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21 and 22.

The bidder, singly or in association with other companies, can bid for one or more blocks. 

Contracts will be signed with the successful bidders in line with the Bangladesh Offshore Model Production Sharing Contract 2023, said the tender. The features of the proposed contract include full repatriation of profit, no signature bonus or royalty, uncapped attractive gas price linked with international marker, oil price to be determined on the basis of the fair market value prevailing in South and Southeast Asia.

It entails no duty for equipment and machinery imported for petroleum operations while contractor’s corporate income tax liability will be borne by Petrobangla, and bank guarantee for performance of the minimum exploration program.

There will be provision for assignment of interest and share-transfer and 100 percent cost recovery with a yearly cap of 75 percent. 

The contractor must have a mandatory work program consisting of 2D seismic

survey and mandatory purchase of available

2D multi-client seismic data against bidded blocks to get relief from mandatory work obligations proportionately.

They will have minimum work obligation in each of the exploration periods while biddable work program commitment over and above the mandatory program.

There will be petroleum profit sharing on the basis of R-factor with biddable upper and lower limits and option to sell contractor’s share of natural gas in the domestic market to a third party, at a negotiated price, subject to Petrobangla’s right of first refusal.

The bidder must ensure carried stake of 10 percent for state-owned Bangladesh Petroleum Exploration and Production Company Limited (BAPEX) for both shallow and deep sea blocks. 

The bidders’ qualification criteria include — individual or in case of joint venture at least one member — offshore daily production of at least 15,000 barrel of oil or 150 mmsc of gas. Bidders must have at least one global experience (other than home country) in the oil and gas exploration and production.

The Information Package will be available at a cost of US$ 300 or equivalent Bangladeshi taka to the interested bidders/companies.

To enable companies to assess the geological prospects of the blocks on offer, Promotional and Data Packages are available on payment basis. Promotional Packages contain Bidding Document, sample seismic sections, gravity, magnetic, geological maps. Companies are required to purchase the Promotional Package in order to qualify for bidding, said the tender. 

The purchase price of the Promotional Package is US$ 10,000 or equivalent Bangladeshi taka. Purchase of Data Sales Package is optional. Several Data Sales Packages are available at different prices. 

Companies interested in bidding and purchase of Promotional and Data Sales Packages may contact the Director, Production Sharing Contract, Bangladesh Oil, Gas & Mineral Corporation (Petrobangla) Petrocentre, 3 Karan Bazar, Dhaka-1215, said the bidding tender.

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Bangladesh: Gas supply from Bhola to Dhaka’s industries in CNG form begins

Industries facing low pressure to get this gas to address their problem – Finally, Intraco, a CNG refueling station operator, started supplying natural gas to different industries in Dhaka and adjoining areas from Bhola in CNG (compressed natural gas) form.


Energy and Mineral Resources Secretary Md Nurul Amin inaugurated the launching of the supply at a function at Sonargaon Hotel in the city on Thursday while Petrobangla chairman Janedra Nath Sarker and Intraco Group chairman Hakim Ali also spoke on the occasion.   

“Initially, our gas will go to an industry in the Dhamrai area in Manikganj after bringing from Bhola,” said Mohammed Riyadh Ali, managing director of Intraco Group, while speaking at the inauguration ceremony.

Earlier, Intraco signed a contract on May 21 this year with state-owned Sundarban Gas Company Limited (SGCL) to supply gas to different industries in Dhaka and adjoining areas including Gazipur and Tangail.

Under a 10-year contract, the Intraco Refuelling Station Ltd will bring the gas from southern district Bhola in CNG form by large trailers, each having 5000 cubic meters and sell it to industries at Tk 47.60 per unit (1000 cubic metre).

As per the contract, local firm Intraco Refuelling Station Ltd will initially supply 5 million cubic feet per day (mmcfd) gas and later 20 mmcfd gas to the private industries.

State-owned Bangladesh Petroleum Exploration and Production Company Limited (Bapex) is extracting gas from the Bhola field.

Both the Bapex and SGCL are subsidiaries of state-owned Petrobangla, the principal petroleum corporation, responsible for dealing with both upstream and downstream production and supply.

Officials of Intraco informed that they are purchasing per cubic metre of at Tk 17 from the SGCL and selling it at Tk 47.60 per cubic metre to industries after meeting expenses of compression, transportation and decompression.

“We’re using a large cascade truck trailer to bring the gas from Bhola by road via Padma Bridge to Dhaka,”said Saiful Islam Chowdhury, a top official of Intraco.    

Petrobangla chairman Janedra Nath Sarker said the industries which face low pressure will get this gas to address the problem.

The Intraco Refuelling Station has been selected for the contract under the Speedy Increase of Power and Energy Supply (Special Provisions) Act, 2010.

Currently, about 2576 mmcfd gas is being supplied across the country in which 2076 mmcfd gas is being produced from 22 gas fields in the country, while about 500 mmcfd gas is being imported from abroad to meet the demand of about 4000 mmcfd, leaving a deficit of about 14024 mmcfd.

The two Bhola gas fields have around 200 mmcf production capacity, while the production hovers between 80-85 mmcf.

Therefore, around 120 mmcf surplus capacity remains unused in the eight wells of the Shahbazpur and Bhola gas fields.

Due to the lack of pipeline and transmission facilities, the government was unable to supply the surplus gas from the Bhola field to other energy-hungry industrial zones in Dhaka and elsewhere.

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Vietnam: PV GAS to launch LNG business by truck

Petrovietnam Gas Corp. (PV GAS) has announced the launch of an LNG business by tank truck from 15 March 2024, following the integrated LPG/CNG/LNG business model, bringing customers a variety of product choices and flexible supply sources with competitive quality and prices.


With its ‘Green Energy Journey’, PV GAS, the first and only entity licensed to import and export LNG in Vietnam, successfully put Thi Vai LNG Terminal into operation. This is a gas facility built according to international standards, ensuring safe operation and meeting the need for additional imported sources in the country’s market.

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Natural Gas / LNG Utilization

China: Sinopec starts gas output at new field

Chuanxi gas field in the Sichuan Basin, developed by China Petroleum and Chemical Corp (Sinopec), has completed construction and launched full production, with an annual capacity of 2 billion cubic meters of natural gas and 130,000 metric tons of sulfur, said the company.


Guo Tonglou, executive director and Party chief of Sinopec’s Southwest Petroleum Bureau, said the gas field, with proven natural gas reserves of more than 100 billion cubic meters, is the third large-scale gas field of its type discovered by Sinopec in the basin, after Puguang and Yuanba gas fields.

“Scientific and technological innovation has played a leading role in the development of the gas field. Its full completion and operation have provided a successful experience for the scale-efficient development of ultra-deep oil and gas resources,” Guo said.

The main gas reservoir of the western Sichuan gas field is buried at an average depth of about 6,000 meters, where geological conditions are quite complex, making it extremely difficult to develop in a cost-effective manner, said Lei Wei, director of the bureau’s engineering technology research institute.

Lei said the bureau has independently developed a series of leading technologies and techniques for the drilling and construction of ultra-deep and long-horizontal wells, which have significantly improved the productivity and utilization of reserves for each well.

Pengzhou 5-1D well, the deepest of its kind in the western Sichuan gas field, has a depth of 8,208 meters and a horizontal length of 1,893 meters. Its daily output has reached 600,000 cubic meters, Lei said.

Li Huachang, production and operations management manager of Sinopec Southwest Oil and Gas Co, said the field has 16 wells, with daily output exceeding 6 million cubic meters when operating at full capacity — equivalent to the daily gas demand of about 12 million households.

Cai Suode, chief expert at Sinopec Southwest Oil and Gas Co, said the gas field has achieved a total sulfur recovery rate of over 99.9 percent by integrating advanced gas extraction and desulfurization technologies.

“The gas can meet national first-class standards and there is no wastewater discharge,” Cai said.

The gas field has also established an intelligent operations and maintenance management platform to ensure safe and environmentally friendly processes throughout the entire operation and reduce carbon emissions, he added.

Sinopec has so far discovered proven reserves of nearly 3 trillion cubic meters of natural gas in the Sichuan Basin, with an annual production capacity of 26 billion cubic meters and a cumulative production of more than 200 billion cubic meters, the company said.,of%20sulfur%2C%20said%20the%20company.

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Global LNG Development

US: NFE starts up offshore LNG terminal, FSRU in northern Brazil

New Fortress Energy’s offshore Barcarena LNG terminal, at the entrance to the Amazon River in Pará, Brazil, has started operations.

NEW YORK — New Fortress Energy’s (NFE) offshore Barcarena LNG terminal, at the entrance to the Amazon River in Pará, Brazil, has started operations.


The development includes the Energos Celsius FSRU on site. 

According to the company, the terminal is the sole natural gas supply source in the state of Pará and Brazil’s North region.

The complex will supply 6 MMt/year of LNG to various industrial customers, including Norsk Hydro’s Alunorte refinery, said to be the world’s largest alumina refinery in the world. 

NFE claims it will cut the refinery’s annual CO2 emissions by about 700,000 metric tons annually.

In addition, Barcarena will supply gas to NFE’s 630-MW power plant, currently under construction alongside the terminal. It should be ready for service during third-quarter 2025.

NFE has further plans to use the infrastructure to expand its power complex by 1.6 GW under a New Power Project PPA.

Elsewhere, the company has secured financing commitments of $700 million for a second FLNG project at Altamira, Mexico, and expects to complete construction early in 2026.

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Brazil: New Fortress Energy activates LNG terminal in Brazil

New Fortress Energy Inc. (NASDAQ: NASDAQ:NFE) has announced the commencement of operations at its Barcarena LNG terminal in Pará, Brazil, with the Energos Celsius Floating Storage Regasification Unit (FSRU) now in place. The facility, which marks a significant step in the region’s energy infrastructure development, was inaugurated with officials from the state government of Pará and Brazil’s Ministry of Mines and Energy in attendance.


The Barcarena LNG terminal, uniquely positioned at the Amazon (NASDAQ:AMZN) River’s mouth, is the sole provider of natural gas in Pará and the northern part of Brazil. It is expected to serve multiple industrial clients, including a 15-year agreement to supply Norsk Hydro (OTC:NHYDY)’s Alunorte refinery, the world’s largest alumina refinery. This move is anticipated to cut the refinery’s annual CO2 emissions by approximately 700,000 tonnes, aligning with Norsk Hydro’s goal to reduce greenhouse gas emissions by 30% by 2030.

In addition to supporting local industry, the terminal aims to contribute to the reduction of emissions and pollution in the Amazon region by offering a cleaner energy alternative to oil-based fuels. NFE has begun delivering natural gas to the Alunorte refinery, with an annual supply of around 30 TBtus.

The Barcarena terminal is also set to supply natural gas to NFE’s 630 MW power plant, which is under construction adjacent to the terminal and is expected to be operational in the third quarter of 2025. Furthermore, NFE is planning to expand its power complex by 1.6 GW under the New Power Project PPA, with a completion date no later than July 2026, pending regulatory approvals and the acquisition of the permitted site next to the Barcarena terminal.

Wes Edens, Chairman and CEO of New Fortress Energy, expressed pride in the Barcarena complex, highlighting its alignment with the company’s integrated LNG-to-power business model and its role in fostering Brazil’s decarbonization efforts and regional economic growth.

The information in this article is based on a press release.

InvestingPro Insights

As New Fortress Energy Inc. (NASDAQ: NFE) advances its operations in Brazil with the new Barcarena LNG terminal, it’s important for investors to consider the company’s financial health and market position. According to InvestingPro data, NFE has a market capitalization of approximately $6.49 billion USD, reflecting its significant size in the energy sector. The company’s P/E ratio stands at 16.49, which may attract investors looking for reasonable valuation relative to earnings.

The financial data also shows that NFE has experienced a revenue decline of 10.9% over the last twelve months as of Q3 2023. Despite this, the company maintains a robust gross profit margin of 62.48%, indicating efficient control over its cost of goods sold relative to its sales. Additionally, the EBITDA growth of 14.4% over the same period suggests that the company has been improving its earnings before interest, taxes, depreciation, and amortization, which is a positive sign for operational efficiency.

From an InvestingPro Tips perspective, it’s noted that NFE is trading at a high Price / Book multiple of 4.52, which investors should be mindful of, as it could indicate a premium valuation compared to the company’s book value. Moreover, the company is also seen as quickly burning through cash, which is a critical factor for investors to watch, especially in capital-intensive industries like energy. For those interested in a deeper analysis, there are 11 additional tips available on InvestingPro, which can provide further insights into NFE’s financial and market performance.

Investors considering NFE may want to take advantage of the additional insights provided by InvestingPro. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which includes access to comprehensive financial data and expert analysis to help make informed decisions.

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Brazil: Brazilian LNG Terminal Enters Operation

New Fortress Energy Inc. announced that its Terminal Gas Sul (TGS) liquefied natural gas (LNG) terminal located in Santa Catarina, Brazil, is now operational with the Energos Winter Floating Storage Regasification Unit (FSRU) on-site. The regasification terminal first began construction in November 2021.


TGS is an offshore LNG import terminal with a capacity of approximately 6 MTPA and maximum send out of 500 MMscf/day. The terminal includes the Winter FSRU and a 21-mile (34-km), 20-in. (510-mm) pipeline, which connects the facility to the existing inland Transportadora Brasileira Gasoduto Bolívia-Brasil (TBG) pipeline.

TGS stands out as a prospect for New Fortress Energy, as it presents an opportunity for the company within the Brazilian power and gas markets. The terminal is connected by pipeline to the wider Brazilian gas market and more than 300 TBtu of industrial and residential gas consumers in the south region of Brazil.

Both power and gas demand are set to substantially increase, while the historical main source of gas supply from Bolivia has declined and is expected to further diminish in the near term. The TGS terminal is essential infrastructure and will play a vital role in meeting the region’s power and gas requirements.

“TGS is directly connected to more than 3.5 GW of existing power infrastructure that lacks firm supply agreements, making the terminal a key asset in Brazil’s evolving energy landscape,” said said Wes Edens, chair and chief executive officer of New Fortress Energy. “With numerous new power projects required to balance the grid in Brazil in the near term, New Fortress Energy is poised to meet growing demand by leveraging its vertically integrated portfolio of LNG assets and expertise.”

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US: US weekly LNG exports reach 26 shipments

US liquefaction plants shipped 26 liquefied natural gas (LNG) cargoes in the week ending February 28, while natural gas deliveries to these terminals increased compared to the week before.\


The US EIA said in its weekly natural gas report that 26 LNG carriers departed the US plants between February 22 and February 28, the same as in the week before.

Citing shipping data provided by Bloomberg Finance, the agency said the total capacity of these LNG vessels is 97 Bcf.

Natural gas deliveries to US terminals up 2.2 percent

Average natural gas deliveries to US LNG export terminals increased by 2.2 percent (0.3 Bcf/d) week over week, averaging 13.9 Bcf/d, according to data from S&P Global Commodity Insights.

Natural gas deliveries to terminals in South Louisiana increased by 3.6 percent (0.3 Bcf/d) to 9 Bcf/d, while natural gas deliveries to terminals in South Texas were essentially unchanged at 3.7 Bcf/d.

The agency said that natural gas deliveries to terminals outside the Gulf Coast were flat week over week at 1.2 Bcf/d.

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

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

Also, the Cove Point terminal sent two LNG cargoes and the Elba Island LNG terminal did not ship cargoes during the week under review.

Henry Hub climbs to $1.63/MMBtu

This report week, the Henry Hub spot price rose 3 cents from $1.60 per million British thermal units (MMBtu) last Wednesday to $1.63/MMBtu this Wednesday.

The March 2024 NYMEX contract expired Tuesday at $1.615/MMBtu, down 16 cents from last Wednesday.

Moreover, the April 2024 NYMEX contract price increased to $1.885/MMBtu, up 2 cents from last Wednesday to yesterday.

According to the agency, the price of the 12-month strip averaging April 2024 through March 2025 futures contracts climbed 9 cents to $2.817/MMBtu.

TTF averaged $7.64/MMBtu

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

Bloomberg Finance reported that weekly average front-month futures prices for LNG cargoes in East Asia fell 39 cents to a weekly average of $8.26/MMBtu.

Natural gas futures for delivery at the Dutch TTF fell 11 cents to a weekly average of $7.64/MMBtu.

In the same week last year (week ending March 1, 2023), the prices were $14.76/MMBtu in East Asia and $15.10/MMBtu at TTF, the agency said.

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Philippines: Energy firms to launch 1st integrated LNG facility

Local energy companies Meralco Power Gen Corp. (MGen), Aboitiz Power Corp. and San Miguel Global Power Holdings Corp. (SMGP) are launching the country’s first and most expansive integrated liquefied natural gas (LNG) facility in Batangas.


Under the deal which values the entire enterprise at $3.3 billion, MGen and Aboitiz Power will jointly invest in two of SMGP’s gas-fired power plants including the 1,278 megawatts (MW) Ilijan power plant and a new 1,320 MW combined cycle power facility which is expected to start operations by the end of 2024.

The three companies will  acquire the LNG import and regasification terminal of Linseed Field Corp. that will be used to receive, store and process LNG fuel for the two power plants.

The parties said the move will help boost energy security and steer the country towards a cleaner more sustainable future while also making fuel for power generation competitively priced and affordable to consumers.

UBS AG served as the financial adviser to MGen and Aboitiz Power on this transaction.

“This is a pathbreaking venture… Apart from transforming the energy landscape of the Philippines, this symbolizes a milestone alliance among major players in the energy industry towards a more sustainable future. We are thrilled to have such reliable partners as we lay the foundation for a brighter, greener future,” said Manuel Pangilinan, MGen chairman, in a statement.

The parties said the collaboration will substantially augment the country’s power supply with over 2,500 MW of generation capacity once fully operational which is backed by advanced LNG storage and regasification capabilities

“Both LNG and renewables are needed to achieve a balanced energy mix and well-planned energy transition. Above all, this is a big win for the Philippines and the people. Economic development is impossible without energy security, and this investment is a definitive step forward in that direction,” said Sabin Aboitiz, Aboitiz Power chairman.

Ramon Ang, SMGP chairman and president, said  “for the first time, three leading power companies are working together to secure our country’s energy needs while transitioning towards cleaner power sources” which he also described as “a major leap forward.

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Malaysia: Cheniere Energy Negotiates LNG Supply Deal with Malaysia’s Petronas Amid Expansion Plans

Cheniere Energy and Petronas are negotiating a major LNG supply deal. This partnership could significantly impact the global LNG market and sustainability efforts.


Cheniere Energy Inc., a leading player in the liquefied natural gas (LNG) sector, is currently in talks to strike a significant supply agreement with Malaysian energy titan, Petronas. This development comes as Cheniere seeks to expand its footprint in the global LNG market by enhancing its production capabilities at its U.S. export terminals. Petronas, on the other hand, is exploring this deal to diversify its energy portfolio and bolster its trading operations.

Background and Strategic Implications

Cheniere Energy’s ambition to scale up its LNG production is evidenced by its recent application for a permit to construct the Stage 5 Expansion Project at its Sabine Pass LNG Terminal. This proposed expansion aims to add two additional natural gas liquefaction units, potentially increasing the terminal’s LNG production capacity by nearly 17 million metric tons per year. Such a move is not only significant for Cheniere but also for potential partners like Petronas, looking to secure long-term LNG supplies amidst a volatile global energy market.

Environmental Considerations and Industry Impact

While the expansion promises to bolster Cheniere’s position as a key LNG supplier, it also raises environmental concerns, with projected increases in greenhouse gas emissions surpassing those of an average coal-fired power plant. This aspect underscores the broader challenges faced by the LNG industry as it navigates the delicate balance between meeting global energy demands and adhering to environmental sustainability goals.

Market Dynamics and Future Prospects

The ongoing discussions between Cheniere and Petronas signify a potential shift in global LNG market dynamics, emphasizing the importance of strategic partnerships in securing energy supplies. For Petronas, this deal represents an opportunity to diversify its energy sources, a critical step in enhancing its global trading footprint. As negotiations progress, the outcomes of this potential collaboration will undoubtedly influence future trends in the LNG sector, particularly regarding supply chain resilience and sustainability practices.

The discussions between Cheniere Energy and Petronas mark a pivotal moment in the global LNG market, highlighting the strategic moves by key players to secure their positions amid changing energy landscapes. While the deal promises mutual benefits for both parties, it also presents challenges, especially in terms of environmental impact. As the situation unfolds, the energy sector will closely watch how this partnership develops and its implications for global LNG supply chains and environmental sustainability efforts.

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US remained largest LNG supplier to Europe in 2023

In 2023, the US maintained its position as the largest supplier of LNG to Europe (EU-27 and the UK), supplying nearly half of the total LNG imports, according to data from CEDIGAZ.


In 2023, the US maintained its position as the largest supplier of LNG to Europe (EU-27 and the UK), supplying nearly half of the total LNG imports, according to data from CEDIGAZ. This marks the third consecutive year that the US has led in LNG supply to Europe, accounting for 27% (2.4 bcfd) of total European LNG imports in 2021, 44% (6.5 bcfd) in 2022, and 48% (7.1 bcfd) in 2023.

Following the US, Qatar and Russia remained the second and third largest LNG suppliers to Europe in 2023. Qatar contributed 14% (2.0 bcfd), while Russia contributed 13% (1.8 bcfd). Combined, the US, Qatar, and Russia supplied three-quarters of Europe’s LNG imports in both 2022 and 2023.

Europe’s LNG import capacity (regasification capacity) is projected to expand to 29.3 bcfd in 2024, marking an increase of over one-third compared with 2021. This growth, reported by the International Group of Liquefied Natural Gas Importers (GIIGNL) and trade press, has been accelerated by the full-scale invasion of Ukraine by Russia in February 2022. The invasion prompted European countries to reduce imports of natural gas from Russia via pipeline, leading to the reactivation of previously dormant regasification projects and the initiation of new ones.

Germany is leading the expansion in LNG regasification capacity in Europe, with developers adding 1.8 bcfd in 2023 and plans to add 1.6 bcfd in 2024. Additionally, in 2022 and 2023, the Netherlands, Spain, Italy, Finland, and France collectively increased their regasification capacity by 3.2 bcfd. In 2024, Belgium, Greece, Poland, the Netherlands, and Cyprus are expected to add a combined 1.8 bcfd of new capacity.

Despite an estimated 4.2 bcfd increase in regasification capacity, Europe’s LNG imports averaged 14.7 bcfd in 2023, remaining relatively unchanged from 2022. This stability was influenced by mild winter weather in the Northern Hemisphere during 2022–23, which reduced heating demand and resulted in record-high natural gas storage levels in Europe.

From June 2022 to April 2023, Europe experienced peak LNG imports, reaching 18.1 bcfd. However, imports declined in subsequent months due to full storage inventories, high international LNG prices, and energy conservation measures that significantly reduced natural gas consumption.

In 2023, France, Spain, the Netherlands, and the UK combined accounted for almost two-thirds (9.3 bcfd) of Europe’s total LNG imports. Germany imported its first LNG in January 2023 and ended the year accounting for 4% (0.6 bcfd) of Europe’s total imports. The US supplied more than 80% of Germany’s LNG imports.

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France: TotalEnergies signs long term LNG supply deal with Sembcorp 

This sale and purchase agreement (SPA) builds upon an existing liquefied natural gas (LNG) purchase agreement between the two companies, which will continue until 2029. 


TotalEnergies has entered into a long-term SPA with Sembcorp Fuels for the supply of LNG. 

The agreement, which will commence in 2027, involves the delivery of up to 0.8 million tonnes per annum of LNG to the subsidiary of Singapore-based Sembcorp Industries (Sembcorp) over a period of 16 years. 

TotalEnergies said the LNG will be sourced from its global portfolio.  

This SPA builds upon an existing LNG purchase agreement between the two companies that was signed in 2022, and will continue until 2029.  

Announcing the deal, Sembcorp said: “The SPA diversifies Sembcorp’s existing natural gas supply from piped and liquefied sources globally. As Singapore’s leading natural gas importer, Sembcorp is committed to supporting Singapore with a stable and resilient supply of energy in its transition towards a net-zero future.” 

TotalEnergies claims to have a market share of approximately 12% of the global LNG market, with an LNG portfolio of around 50 million tonnes per year.  

The French oil and gas major aims to expand its LNG production and long-term purchases by 50% by the year 2030.  

In line with this goal, in November 2023, the energy company signed an agreement to extend its partnership with Oman LNG, a joint venture (JV) in which TotalEnergies holds a 5.54% stake.  

At the time, TotalEnergies senior vice-president of Middle East and North Africa, exploration and production, Julien Pouget said: “We are pleased to extend our partnership with Oman LNG. This LNG contributes to our supply of Europe and Asian markets, and strengthens our integrated and flexible global portfolio, in line with TotalEnergies’ ambition to increase its LNG production and long-term purchases by 50% by 2030.” 

In the month prior, TotalEnergies secured LNG supply deals with government-backed QatarEnergy. 

The agreements, spanning 27 years, will see LNG supplied from the JV between TotalEnergies and QatarEnergy, which have interests in the North Field East and North Field South projects in Qatar.

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Singapore: Sembcorp signs 16-year LNG SPA with Total to decarbonise operations

Singapore’s main gas importer and power generator Semborp has agreed to purchase 0.8 million tons of LNG per annum (mpta) for a 16-year tenure, starting in 2027.


The new sales and purchase agreement adds to the companies’ current SPA which runs until 2029, with additional volumes set to help Semcorp fuel its multi-utilities centre on Jurong Island.

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Japan boosts reliance on allies Australia, US for long-term LNG supplies

TOKYO – Resource-scarce Japan is shoring up long-term supplies of liquefied natural gas (LNG) from close allies Australia and the US as key contracts from providers, including Russia, are set to expire by the early 2030s.\


Japan’s biggest power generator Jera in February agreed to buy a 15.1 per cent stake in Woodside Energy’s Scarborough project in Australia. It was the latest in a string of deals as the fallout from Russia’s invasion of Ukraine threatens to disrupt access to gas from its northern neighbour, making it more imperative to find reliable long-term supply sources.

LNG accounts for about a third of Japan’s power generation and the country is the world’s second-largest importer behind China.

It remains a key part of Japan’s energy mix even though imports fell by 8 per cent in 2023 to the lowest since 2009 as the country has increased the use of renewable energy and restarted some nuclear reactors following a complete shutdown after the Fukushima disaster in 2011.

Since 2022, Japanese LNG buyers have struck equity deals in five projects in Australia and the United States, including an exploration block. They have secured 10- to 20-year offtake contracts from those countries for more than five million metric tonnes annually, or 8 per cent of Japan’s 2023 consumption, according to a Reuters calculation, eclipsing transactions elsewhere in the world.

Political issues, including new carbon emission rules Australia introduced in mid-2023 and President Joe Biden’s freeze in January on new US LNG export licence approvals, have not dented Japan’s appetite for long-term supplies from those countries.

Kyushu Electric Power, among the top five Japanese utility companies, has said it is considering buying a stake in Energy Transfer’s Lake Charles LNG project in the US, even though it is now subject to the US licence freeze.

This would be its second direct equity stake in gas production after Australia.

“North America and Australia still have supply stability compared with other projects,” Kyushu Electric executive officer Takashi Mitsuyoshi said.

“There are some concerns about North America due to the recent (LNG) move by Biden but it, along with Australia, is an ally and that means a lot.”

Japan and the US are members of the Group of Seven (G-7) alliance of developed nations and are partners with Australia in another regional security body, the Quadrilateral Security Dialogue, also known as the Quad.

Kyushu Electric has long-term supply contracts with Australia, Indonesia and Russia, some of which are due to expire between 2027 and 2032.

Mr Mitsuyoshi said Indonesia may have limited export capacity in the future due to strong domestic demand, thanks to a growing economy.

Qatar, another Japan supplier, is ramping up production but some buyers chafe at its contracts that limit flexibility to trade cargoes, with Japan’s industry minister in 2023 calling for the elimination of the destination clause.

Since 2022, Japanese LNG buyers have increased their involvement with Oman, but on a smaller scale compared with Australia and the US, while Japanese group Inpex acquired new exploration licences in Malaysia.

Replacing Russia

LNG flows to Japan have changed over the last decade, including large declines from Indonesia, Malaysia, Qatar and Russia, as well as the US and Papua New Guinea becoming major new suppliers, according to Japan customs data.

Throughout that period, Australia has been its top supplier, although other new sources are emerging.

Canada, a G-7 member, is preparing to start its first major export facility, from which Mitsubishi Corp, a shareholder, will receive more than two million tonnes of LNG annually.

LSEG senior analyst for Japan power research Yoko Nobuoka said the importance of cooperation with allies for Japan’s energy security, including LNG, had increased on the back of the energy crisis triggered by Russia’s invasion of Ukraine.

Russia was Japan’s third-biggest LNG supplier in 2023, after Australia and Malaysia, but imports fell 10.7 per cent from 2022.

Much of Japan’s Russian LNG comes from the Sakhalin-2 project, but many of its long-term contracts are set to lapse around 2030, giving added incentive to lock in deals elsewhere.

The vast new Arctic LNG 2 project, in which Mitsui & Co and state-owned Japan Organisation for Metals and Energy Security together own 10 per cent, underscores the perils of Tokyo’s reliance on Russian gas.

Washington in November imposed sanctions on the project, prompting its operator, Novatek, to declare force majeure and leading Mitsui to record an additional provision of 13.6 billion yen (S$123.3 million).

“But G-7 members can’t cut that reliance (on Russian LNG) overnight, so that’s why they need boosted LNG supplies from allies,” said Mr David Boling, a director at consulting firm Eurasia Group, who was deputy assistant US trade representative for Japan from 2015 to 2022. REUTERS

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Vietnam: Petrovietnam Gas Seeks to buy 2 LNG Cargoes, the first to be delivered April 1-20

PetroVietnam Gas is seeking to buy two LNG cargoes, with the first to be delivered April 1-20, three sources said on Thursday. HANOI, Feb 29 (Reuters) – PetroVietnam Gas is seeking to buy two LNG cargoes, with the first to be delivered April 1-20, three sources said on Thursday.


The company has issued a tender inviting firms to submit bids for the cargo, the sources said

The tender closes on Thursday, according to the sources and a copy of the tender reviewed by Reuters. The delivery of the second cargo has yet to be determined.

The LNG would be delivered to PetroVietnam Gas’s newly built terminal in Vietnam’s southern province of Ba Ria Vung Tau.

(Reporting by Khanh Vu and Emily Chow; Editing by Kanupriya Kapoor)

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LNG as a Marine Fuel/Shipping

Japan: MOL inks charter deal with Tokyo Gas for LNG carrierJ

Japanese shipping major Mitsui O.S.K. Lines (MOL) has signed a long-term charter contract for a newbuilding LNG carrier with Tokyo LNG Tanker (TLT), a subsidiary of compatriot gas supplier Tokyo Gas.


As explained, the newbuild vessel will be built at the Geoje Shipyard of Hanwha Ocean. The 174,000-cbm ship will be equipped with the MAN Energy Solutions (MAN ES) engine (ME-GA), to improve fuel consumption efficiency, with specifications that enhance its environment friendliness, compared to conventional LNG carriers.

This is the eighth contract, following a time charter contract for seven LNG carriers that were signed for TLT. The LNG carrier is slated for delivery in 2026.

Through this long-term charter contract, MOL plans to contribute to the realization of a stable supply of LNG in partnership with Tokyo Gas. Recently, MOL held a naming ceremony to serve GAIL (India), the largest natural gas supplier under India’s Ministry of Petroleum and Natural Gas.

Tokyo Gas began importing carbon-neutral LNG in 2019 and became the first company in Japan to supply it to customers as carbon-neutral city gas.

According to Tokyo Gas, this is a type of LNG that offsets greenhouse gases, which are generated in the process, from extraction to the burning of natural gas, and that carries a carbon credit (carbon offsetting). Thus, it is deemed to be carbon neutral on a global scale even when burned.

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South Korea: Hanwha Ocean inks MOU for supply of LNG carriers

Hanwha Ocean Co., one of the biggest shipbuilders in South Korea, is poised to win an order for a fleet of liquefied natural gas (LNG) tankers amid its engagement in Qatar‘s national project to magnify its LNG production.


In its statement on Monday, the Korean shipbuilder said it has recently inked a memorandum of understanding (MOU) with a Middle Eastern company to supply 12 LNG tankers.

Although further information on the partner is yet to be disclosed, industry observers believe the buyer could be QatarEnergy, Qatar’s state-owned petroleum company, given the region where the deal was struck.

Qatar announced its expansion plan for its vast LNG production facilities after drilling and appraisal work at its gas fields earlier and now expects to produce 126 million tonnes a year (mtpa) by 2027.

In a separate development, Hanwha Ocean also accused HD Hyundai Heavy Industries Co. (HHI), another biggest shipbuilder in Koreas, of executive-level involvement in a violation of the Military Secret Protection Act in November 2023 by acquiring documents related to a national shipbuilding project written by Daewoo Shipbuilding and Marine Engineering Co. (DSME), now Hanwha Ocean, between October 2012 and November 2015.

Hanwha Ocean announced on Monday that it filed a complaint with the National Police Agency to urge an investigation into the purported involvement of executives from HD Hyundai Heavy Industries in the data leakage.

“It is hard to believe the years of stealing confidential data from a rival was done without any involvement or instruction by the company’s executives,” the company said.

The complaint came after the Defense Acquisition Program Administration (DAPA) decided to impose a lenient penalty on HD Hyundai Heavy Industries for the violation and allowed the company to bid on future state contracts.

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South Africa: Anglo cements its position as charterer of largest LNG dual-fuelled Capesize + fleet in world

ANGLO American has cemented its position as the charterer of the largest liquefied natural gas LNG dual-fuelled Capesize+ fleet in the world after it yesterday announced delivery of the last of its 10-strong fleet of such bulk carriers, the Ubuntu Liberty.


The Ubuntu Liberty’s maiden voyage from China to Saldanha Bay to collect a cargo of high quality iron ore would mark the on-time delivery of all 10 ships built over the last three years with a zero incident safety record together with Shanghai Waigaoqiao Shipbuilding Co, the mining company said in a statement.

Matt Walker, the CEO of Anglo American’s marketing business, said: “Launching the final vessel of our Ubuntu fleet is a very large manifestation of our commitment to more sustainable shipping. This milestone is testament to our dedication to a sustainable path forward for our controllable ocean freight, ensuring the delivery of essential resources to our customers around the world while minimising our environmental footprint.

“By adopting more sustainable and lower carbon fuel options like LNG, we are actively contributing to a cleaner, greener future for the maritime industry. Our customers have shown keen interest in accessing our Ubuntu freight, demonstrating growing recognition of the value of sustainable shipping as part of a more sustainable supply chain that end consumers increasingly expect.“

Anglo American said the Ubuntu fleet was a key component of its ambition to achieve carbon-neutrality for its controlled ocean freight by 2040, aligning with its Sustainable Mining Plan commitment to carbon neutral operations across its mines by the same year.

“The LNG dual-fuelled vessels offer an estimated 35% reduction in emissions compared to ships fuelled by conventional marine oil fuel and were the most efficient vessels of their type today,” the firm said.

Since the first vessel was loaded in early 2023, the Ubuntu fleet had safely moved 6.4 million tons of iron ore and steelmaking coal across global shipping routes.

“Additionally, the Ubuntu fleet has conducted over 30 refuelling stops for LNG in strategic locations such as Singapore and Malaysia, further demonstrating our commitment to embracing sustainable fuel alternatives,” it said, adding that in 2022, the shipping industry was responsible for nearly 3% of the world’s greenhouse gas emissions.

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Singapore: Hafnia welcomes fourth LNG dual-fuel product tanker

Singapore-based tanker operator Hafnia has taken delivery of its fourth LNG dual-fuel product tanker, Hafnia Lillesand.

Hafnia Lillesand, a 110,000-dwt crude oil and product tanker, is the final vessel in a series of four LNG-powered Aframax LR2 vessels ordered by Hafnia through its Vista Shipping joint venture with CSSC Shipping.


The naming ceremony for the Hafnia Lillesand took place on February 29 at GSI Shipyard in Guangzhou, China. 

The first two tankers delivered during 2023 serve France’s TotalEnergies under long-term charter deals, while Hafnia Larvik (delivered in 2023) and Hafnia Lillesand will serve serve Norway’s Equinor under charter deals.

The company secured financing for its first pair of tankers through $89.6 million sustainability-linked loan.

“We are delighted to take delivery of the Hafnia Lillesand, the fourth and final vessel in our dual-fuel LNG newbuild series. This milestone underlines our commitment to sustainability and innovation in the shipping industry and we especially thank our partners at GSI and CSSC for their collaboration during this project in constructing and delivering these newbuilds,” Mikael Skov, CEO of Hafnia, stated.

Moving ahead, Hafnia plans to continue its collaboration with GSI in constructing four 49,800 dwt dual-fuel methanol chemical IMOII MR tankers, together with joint venture partner Socatra of France. The vessels are set to be delivered in 2025/2026.

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China: Anglo American completes chartered fleet of lower emission LNG dual-fuelled vessels

Anglo American has announced the delivery of the last of its 10-strong chartered fleet of capesize+ LNG dual-fuelled bulk carriers, the Ubuntu Liberty. The Ubuntu Liberty’s maiden voyage from China to Saldanha Bay, South Africa, to collect a cargo of high-quality iron ore will mark the successful on-time delivery of all 10 ships built over the last three years with a zero incident safety record together with Shanghai Waigaoqiao Shipbuilding Co. Ltd.


Matt Walker, CEO of Anglo American’s Marketing business, said: “Launching the final vessel of our Ubuntu fleet is a very large manifestation of our commitment to more sustainable shipping. This milestone is testament to our dedication to a sustainable path forward for our controllable ocean freight, ensuring the delivery of essential resources to our customers around the world while minimising our environmental footprint. It also puts us in a market leading position as the charterer of the largest LNG dual-fuelled capesize+ fleet in the world.

“By adopting more sustainable and lower carbon fuel options like LNG, we are actively contributing to a cleaner, greener future for the maritime industry. Our customers have shown keen interest in accessing our Ubuntu freight, demonstrating growing recognition of the value of sustainable shipping as part of a more sustainable supply chain that end consumers increasingly expect.

“I thank Shanghai Waigaoqiao Shipbuilding Co. Ltd for its collaboration to deliver these vessels on time, on budget and, most importantly, with a stellar zero-safety incident record. Our gratitude also goes to all the other companies and agencies that partnered with us to make the Ubuntu fleet roll out a success.”

The Ubuntu fleet is a key component of Anglo American’s ambition to achieve carbon-neutrality for its controlled ocean freight by 2040, aligning with Anglo American’s Sustainable Mining Plan commitment to carbon neutral operations across our mines by the same year. The LNG dual-fuelled vessels offer an estimated 35% reduction in emissions compared to ships fuelled by conventional marine oil fuel and are the most efficient vessels of their type today.

Since the first vessel was loaded in early 2023, the Ubuntu fleet has successfully and safely moved 6.4 million t of iron ore and steelmaking coal across global shipping routes. Additionally, the Ubuntu fleet has conducted over 30 refuelling stops for LNG in strategic locations such as Singapore and Malaysia, further demonstrating our commitment to embracing sustainable fuel alternatives.

In 2022, the shipping industry was responsible for nearly 3% of the world’s greenhouse gas emissions. This underscores the importance of implementing targets and initiatives that work towards a more sustainable business by adopting cleaner fuel alternatives such as LNG in shipping operations.

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Qatar: Hanwha Ocean Inks MOA on Building 12 LNG Carriers with Middle Eastern Shipping Company

Hanwha Ocean announced on March 4 that it signed a memorandum of agreement (MOA) to build 12 liquefied natural gas (LNG) carriers with a Middle Eastern shipping company.


Hanwha Ocean did not disclose the client but it is believed to be Qatar Energy, the state-run energy company of Qatar.

Qatar Energy signed a memorandum of understanding (MOU) to order LNG carriers with three Korean shipbuilders and held contract discussions with them in 2020.In 2023, HD Hyundai Heavy Industries (HHI) won orders for 17 LNG carriers worth about 5.2511 trillion won (US$3.9435 billion). It was the largest order in the Korean shipbuilding industry’s history for a single contract.

Samsung Heavy Industries also announced in February that it had won an order for 15 LNG carriers from a Middle Eastern company. The contract amounted to 4.5716 trillion won. The company also did not disclose the client, but many experts also think that the client is Qatar Energy.“We are currently reviewing the details of the main contract,” Hanwha Ocean said. “We will make a related public disclosure when the details are finalized.”

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


Albania: World’s largest deposit of natural Hydrogen Gas discovered in Albanian Mine

The largest natural flow of hydrogen gas ever discovered has been detected seeping through a pool of water deep within a chromium mine in Albania. Reporting the find in a new study, researchers say the deposit could pave the way for new, cleaner ways of capturing hydrogen for use as a clean fuel. Hydrogen gas has long been sought after as an alternative to fossil fuels as it can be burnt without releasing any greenhouse gases. However, until now, natural hydrogen flows have been hard to come by, and the resource was typically manufactured from natural gas via a process that consumes energy and emits carbon dioxide.


Furthermore, despite the fact that hydrogen is known to play a key role in supporting life deep within the Earth’s crust, scientists had generally assumed that the gas’s high reactivity prevented it from accumulating in large underground deposits.

All that began to change when a flammable gas was first detected in the Bulqizë mine in Albania in 1992. Large explosions in 2011, 2017, and 2023 fuelled suspicions that the odorless gas was indeed hydrogen, and researchers have now determined that the mine may sit atop a fault that contains between 5,000 and 50,000 tonnes (5,511 to 55,115 tons) of the precious resource.

Analyzing the gas as it bubbled through a pool in the mine, the study authors determined that it was indeed 84 percent hydrogen, along with smaller amounts of methane and nitrogen. Calculating the flow of gas, they concluded that the pool emits around 11 tonnes (12.1 tons) of hydrogen per year, which is equivalent to 34 kilograms (75 pounds) a day.

Combining this with other flows in a borehole and a shaft within the same mine, the researchers calculated that the total amount of hydrogen gas passing through the mine amounts to some 200 tonnes (220 tons) per year.

“Our study unveils a high emission rate of almost pure geologic H2, suggesting the potential for a new extractable primary energy source,” they write.

Intriguingly, the Bulqizë mine is located within a stretch of iron-rich rock known as ophiolite, which is known to generate hydrogen as it reacts with water and has been associated with other hydrogen flows elsewhere around the world. The study authors therefore speculate that further significant natural hydrogen deposits may be lurking beneath other ophiolite outcrops in other locations.

“We reveal that ophiolites, which are mantle rocks from the oceanic crust obducted onto continents, not only constitute effective source rocks, but also have the potential to host high-quality, H2-rich gas reservoirs,” they conclude.

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UK: Kia EV9: An Affordable SUV with Bidirectional Charging

The Kia EV9 has been named the ‘World’s Best Car for 2024’ at the Women’s Worldwide Car of the Year, out of 63 contenders.  – The EV9 offers seven seats and advanced technology in the electric SUV segment, including features such as bidirectional charging and ultra-fast charging capabilities.


The car has won a number of other awards, such as ‘Top Three in the World’ finalist contender for the 2024 World Car Awards, the ‘Family Cars’ category at the Golden Steering Wheel 2023 and ‘German Luxury Car of the Year 2024’.

EV9: Affordable with advanced technology

At the Women’s Worldwide Car of the Year awards, judges praised the EV9 for its affordability and user-friendliness, making it a groundbreaking addition to the electric vehicle market. The EV9’s aerodynamics and advanced technology adds to the allure of the flagship SUV, especially in winter conditions.

“The uber-practical Kia EV9 could be the vehicle that gets more drivers out of their petrol or diesel car than any other model. Seven seats, loaded with technology, premium quality and enough miles from the battery to cure almost every case of range anxiety – plus it’s fantastic to drive, too,” said John Challen, Co-Chairman, UK Car of the Year Awards. “The fact that nearly half of our judging panel chose the Kia as the UK Car of the Year 2024 is a massive vote of confidence in what is a seriously impressive and hugely appealing car.”

“It is a huge honour for Kia UK to be awarded a category win and the overall Car of the Year accolade in this year’s UK Car of the Year Awards,” said Paul Philpott, President and CEO of Kia UK. “We’re delighted that the judges agree just how impressive the EV9 is. The recognition is made all the more significant, having been judged by some of the UK’s most influential and respected journalists from across automotive, business and technology industries.” 

Its predecessor, Kia EV6, has been celebrated as a great choice of SUV, with a serious, fun exterior design. The car featured in ‘Top 10 best-selling electric vehicles in the US’ for 2023.

Kia’s bidirectional charging offers light in the darkness

In the northern parts of Norway, the earth rotates to a point where the sun stays hidden from October to February, creating a magical backdrop for the Northern Lights against the ice. Yet in the summer, the sun does not set from April to August, creating the phenomenon of the midnight sun. These conditions are certainly a challenge for solar farms – but there are also healthcare problems. A lack of sunlight can lower a person’s energy levels, damage their mental health and immune system. Meanwhile, prolonged sunlight can wreck sleep patterns.

To highlight the impact of this, Kia set up a temporary sun, a 5 metre LED disc powered by a Kia EV9, in an experiential design studio called VOID. It was made with the help of creative agency Innocean. 

Bidirectional charging allows energy to flow into and out of a vehicle, which is managed by Kia Smart Charge.

“The EV9 is exciting when moving, but also when stationary, with innovative features such as bidirectional charging,” said David Hilbert, Head of Marketing, Kia Europe. “This technology can extend the role electric vehicles play in our lives, whether it’s for camping, providing a power source for a mobile office, or even being part of the broader electricity grid with the Vehicle-to-Grid (V2G) technology.”

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