NGS’ NG/LNG SNAPSHOT – Mar 16-31, 2023

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NATIONAL NEWS

City Gas Distribution & Auto LPG

Somnath temple gets PNG facilities at guesthouses, community kitchen

The trust prepares laddus offered as prasad to devotees in its two kitchens while each of the guesthouse and Somnath Prasad Annakshetra also have one kitchen each.

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Yogendra Desai lights a stove to mark the start of PNG supply in Somnath Prasad Annakshetra in Somnath Monday. Express Photo

Guesthouses and community kitchen run by the Shree Somnath Trust (SST) on the campus of the famous Somnath Temple in Gir Somnath district started getting piped natural gas (PNG) to meet its cooking fuel demand as IRM Energy Limited, a private city gas distribution (CGD) firm, activated gas connections to these facilities on Monday.

At a ceremony, SST secretary Yogendra Desai lit a gas stove in the kitchen of Shree Somnath Prasad Annakshetra, the community kitchen which serves free meals to devotees, in the presence of the IRM chief executive officer Karan Kaushal and SST general manager Vijaysinh.

An official release from the SST said that the PNG supply will bring down the fuel bill of Somnath Prasad Annakshetra by around 30 per cent. “Average 5,000 to 6,000 people have their meals in the nihshulk bhojanalaya (mess serving free meals) two times every day. This requires 90 commercial cylinders (of LPG) of 19 killograms each every month. At the market price of Rs1,800 per cylinder, the kitchen used to require gas worth Rs1.62 lakh every month. The use of PNG is expected to bring this expenditure by 20 to 30 per cent,” the release said.

SST is the religious trust which owns, manages and maintains Somnath temple as well as several other temples in the vicinity. The trust, headed by Prime Minister Narendra Modi, also runs a dormitory in addition to a VIP guesthouse and other guesthouse like seaside Sagar Darshan Atithi Gruh, Lilavati Atithi Gruh and Maheshwari Samaj Atiti Gruh.

The trust prepares laddus offered as prasad to devotees in its two kitchens while each of the guesthouse and Somnath Prasad Annakshetra also have one kitchen each.

“We are given PNG connections to seven kitchens of Somnath temple as part of the corporate social responsibility initiative of our company and has not charged the Somnath Trust any connection fee or pipeline fee,” Kaushal, the CEO of the Ahmedabad-headquartered IRM Energy told The Indian Express.
IRM Energy is a group company of pharmaceutical-giant Cadila Pharmaceuticals Limited.

https://indianexpress.com/article/cities/ahmedabad/somnath-temple-gets-png-facilities-at-guesthouses-community-kitchen-8509018/

 

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Pune: PMPML to install 10 more CNG pumps to avoid inconvenience to passengers

The Pune Mahanagar Parivahan Mahamandal Limited (PMPML) will be installing 10 compressed natural gas (CNG) pumps in addition to the existing five CNG pumps operational at Kothrud, Narveer Tanaji Wadi, Hadapsar, Pimpri and Swargate.

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The PMPML will be submitting a letter to the Mahanagar Gas Nigam Limited (MGNL), requesting it to set up the necessary CNG pump infrastructure at 10 new sites following complete verification of these sites. The move is aimed at increasing revenue and reducing the waiting times of buses at the current five CNG pump locations.

PMPML will be installing 10 compressed natural gas (CNG) pumps in addition to the existing five CNG pumps. (In pic) Katraj PMPML depot. (Ravindra Joshi/HT PHOTO)

PMPML chief engineer Ramesh Chavan said, “The step has been taken to avoid inconvenience to the passengers and save CNG. PMPML chairman Omprakash Bakoria has decided to set up one CNG pump at each PMPML depot. An inspection of the sites has also been carried out for that. It will benefit the PMPML in the immediate and long run.”

The PMPL has around 2,100 buses in its fleet including 200 diesel, 458 electric and 1,500 CNG operated buses. On an average, 1,750 buses are provided daily by the PMPML for public transport. It has been made mandatory to fill CNG in the buses at the official CNG pumps every afternoon and at the end of the night shift by the respective drivers on duty. Due to low pressure however, CNG is often not filled to its full capacity which leads to fuel wastage. At times, PMPML drivers have to deboard passengers in the middle of a journey just to go and fill CNG. It takes a long time for them to return to the spot where the passengers were deboarded, causing inconvenience to the passengers.

The PMPML administration has now decided to set up CNG pumps at each of the public transport utility’s 10 depots to avoid inconvenience to passengers. The PMPML is currently operating five CNG depots, each of which has two dispensers for filling CNG. An additional CNG dispenser will be commissioned at 10 more depots. The PMPML is also considering starting CNG pumps at the five e-depots. All of this is aimed at preventing instances of passengers being deboarded in the middle of a journey for the oft-quoted reason of filling CNG.

According to the MGNL, private vehicles too will be allowed to fill CNG at the PMPML CNG depots. While PMPML buses will get a discount of ₹1.20 per kg of CNG unlike private vehicles, private vehicles will get entry into the depots for filling CNG.

PMPML chairman and managing director Om Prakash Bakoria said, “We have five CNG filling stations with 13 dispensers. We have requested MNGL to set up CNG filling stations at nine depots. We have also requested them to increase the number of existing dispensers.”

https://www.hindustantimes.com/cities/pune-news/pmpml-to-install-10-more-cng-pumps-to-avoid-inconvenience-to-passengers-101679590552148.html

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Natural Gas/ Pipelines/ Company News

 

GAIL’s new integrated natural gas pipeline tariff hiked by 45%

The new tariff of Integrated Natural Gas Pipeline of GAIL (India) Ltd. would be Rs. 58.61/MMBtu, which is 45 percent higher than the current tariff.

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This has been a topic of discussion for some time, with GAIL having asked for a tariff hike of 70 percent. This is in line with the Rs 60.9/MMBtu proposed by the Petroleum and Natural Gas Regulatory Board (PNGRB).

This news is in line with analyst expectations, with CLSA having a “buy” rating on GAIL and setting a target of Rs 125 per share. The indication from the regulator that the tariff may be increased by over 50 percent had raised hopes of a significant tariff hike.

CLSA estimated that a 40 percent hike would be the base case, while a 52 percent hike would boost the next year’s Earnings per Share (EPS) estimate by 7 percent. A higher share of stable utilities earnings would also drive a re-rating of GAIL’s stock. The increase in tariffs would lead to higher revenues for GAIL and improve the company’s profitability.

GAIL is one of the largest natural gas processing and distribution companies in India, with a pipeline network spanning thousands of kilometers across the country.

The company has been struggling in recent years due to the lack of tariff hikes and the rise in costs. The proposed tariff hike comes as a much-needed relief for the company, and it is expected to have a positive impact on its financial performance.

The natural gas industry in India has been growing steadily, with the government’s focus on increasing the share of natural gas in the energy mix. The increase in tariffs is expected to encourage more investments in the sector, and it is likely to boost the growth of the natural gas industry in the country.

The tariff hike is also expected to boost GAIL’s financial performance and drive investments in the sector.

Shares of GAIL are off the day’s low, currently trading little changed at Rs 105.20.

https://www.cnbctv18.com/business/companies/gail-new-integrated-natural-gas-pipeline-tariff-hiked-by-45-percent-in-line-with-pngrb-16234431.htm

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2023 Maruti Suzuki Brezza S-CNG: All you need to know

Maruti Suzuki, India’s largest carmaker, has finally introduced the CNG version of the Brezza. The new 2023 Maruti Suzuki Brezza S-CNG has been launched in India at a starting price of Rs 9.14 lakh, ex-showroom. It is the first and currently the only sub-compact SUV to come equipped with a factory-fitted CNG kit. Here’s all you need to know about it. 

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Maruti Suzuki Brezza S-CNG: Engine and mileage

Powering the new Maruti Suzuki Brezza S-CNG is a 1.5-litre naturally-aspirated bi-fuel petrol engine. This motor develops 86.7 bhp with 121.5 Nm of peak torque in the CNG mode and 99.2 bhp with 136 Nm of torque in the petrol mode. The engine comes mated to a 5-speed manual gearbox only and is claimed to deliver a mileage of 25.51 km per kg.

Maruti Suzuki Brezza S-CNG: Features and safety

Regarding features, the top-spec ZXi variant of the Brezza S-CNG gets an electric sunroof, a 7.0-inch Smartplay Pro touchscreen infotainment system with wireless Android Auto, Apple CarPlay and connected car tech, etc. The safety equipment of this sub-compact SUV includes ABS with EBD, dual front airbags, reverse parking sensors with a rear parking camera, hill hold assist, electronic stability program, etc. 

Maruti Suzuki is offering the Brezza S-CNG in four variants: LXi, VXi, ZXi and ZXi dual-tone. The prices start at Rs 9.14 lakh and they go up to Rs 12.05 lakh. In comparison, the petrol-only variants of the Brezza are priced from Rs 8.19 lakh to Rs 14.04 lakh, all prices ex-showroom. The Brezza S-CNG doesn’t have any direct rivals in the Indian market.

https://www.financialexpress.com/auto/car-news/2023-maruti-suzuki-brezza-s-cng-all-you-need-to-know/3015223/

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‘Kakinada-Vizag-Srikakulam gas pipeline to be completed by 2024’: Rameswar Teli

Previously, works between Kakinada and Visakhapatnam were to be completed by June 30, 2021 and by June 30, 2022, between Vizag and Srikakulam, Teli said. 

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VIJAYAWADA: Kakinada-Vizag-Srikakulam natural gas pipeline will be completed by June 2024, Minister of State for Petroleum and Natural Gas Rameswar Teli informed Rajya Sabha in a written reply to a query raised by YSRC MP V Vijayasai Reddy.

He pointed out that though the deadline was June 30, 2022, it was extended to June 30, 2024, on the request of Andhra Pradesh Gas Distribution Corporation (APGDC).

The minister explained that that the Natural Gas Regulatory Board made Andhra Pradesh Gas Distribution Corporation (APGDC) an authorised organisation for construction and monitoring of Kakinada-Vizag-Srikakulam natural gas pipeline in 2014. 

Previously, works between Kakinada and Visakhapatnam were to be completed by June 30, 2021 and by June 30, 2022, between Vizag and Srikakulam, Teli said. 

However, due to the Covid pandemic, problems faced during rainy season for construction of pipeline, delay in release of funds, the APGDC requested the Board for an extension till June 2024, the minister elaborated. 

https://www.newindianexpress.com/states/andhra-pradesh/2023/mar/21/kakinada-vizag-srikakulam-gas-pipeline-to-be-completed-by-2024-rameswar-teli-2558068.html

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Policy Matters/ Gas Pricing/ Others

Delhi: CNG prices rise 38%

The price of CNG has shot up by nearly 38 per cent while the price of an LPG cylinder increased by about 22 per cent in Delhi during the period of last one year.

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The comparative prices of CNG for Indraprastha Gas Limited (Delhi) were at Rs 57.01 per kg on March 1, 2022 and it increased to Rs 79.56 per kg on March 1 this year.

Similarly, the price of a LPG cylinder (14.4 kg) was at Rs 899.50 on March 1, 2022 and it went up to Rs 1,103 by March 1.

India imports more than 60 per cent of its domestic LPG consumption. The average Saudi Contract Prices (CP) on which the domestic LPG prices are based, increased from $454/MT to $693/MT during 2019-20 to 2021-22.

During 2022-23, the Saudi CP has further risen to 790/MT for February 2023. However, the government continues to modulate the effective price of domestic LPG.

Public sector oil marketing companies (OMCs) have suffered huge losses on sale of domestic LPG. To compensate these losses, the government has recently paid a one-time compensation of Rs 22,000 crore to OMCs, said the Ministry of Petroleum in a written reply in Lok Sabha on Thursday.

The Ministry in its reply said the government has started a targeted subsidy of Rs 200 per 14.2 kg cylinder for Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries for up to 12 refills for year 2022-23.

“The government has taken various initiatives to keep natural gas prices under check. While the gas prices at the international gas indices (JKM) have increased by up to 228 per cent between January 2021 and February 2023, in India, the CNG price rise (Delhi representative market) was restricted to about 83 per cent,” said the reply.

https://www.smetimes.in/smetimes/news/indian-economy-news/2023/Mar/16/delhi-cng91004.html

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New rules on natural gas sales. Reliance Industries to re-auction gas in line with new government rules

Reliance Industries Ltd and its partner bp plc have re-launched an auction for sale of natural gas from their eastern offshore KG-D6 block after incorporating the government’s new marketing rules to give CNG-selling city gas companies first priority over supplies.

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Reliance and its partner BP Exploration (Alpha) Ltd (BPEAL) will sell 6 million standard cubic meters per day of gas in an e-auction planned for April 3, a tender notice said. The price is indexed to the global LNG marker, JKM, but will be subject to the government-notified ceiling price.

The partners had originally planned the auction in January, but days before that the Ministry of Petroleum and Natural Gas, on January 13, published new rules for the sale and resale of gas produced from discoveries in deep sea, ultra-deep water and high-pressure-high temperature areas.

This led to the auction being suspended and is now being re-launched after incorporating changes.

Gas produced from wells drilled below the seabed is used to produce electricity, make fertiliser or turned into CNG for powering automobiles or piped to household kitchens for cooking as well as in industries.

New government rules

The new government rules require bidders to state upfront if they were purchasing the gas through the auction for ‘own use as end-consumers (including for use of their group entities), or as a trader.

While end-consumers are allowed to resale any unconsumed gas, traders participating in the auction are allowed to resell subject to a maximum trading margin of Rs 200 per thousand cubic meters.

“In any situation, which may require proportionate distribution of the gas offered under the bidding process, the contractor (company selling the gas) shall offer gas to bidders belonging to the CNG (transport)/PNG (domestic) sector, fertiliser, LPG and power sector in that order,” the Ministry had said, adding any leftover gas shall be offered to other bidders.

Besides incorporating the changes in their tender, Reliance and bp have increased the duration of supply contract to five years instead of three years, offering the January auction.

Supplies are to start from April 16, the tender said.

Priority for city gas distributors

City gas distributors selling CNG for the transport sector and piped natural gas to households kitchens will get top priority in allocation of gas in case of a tie for any bids, followed by fertiliser, power plants and end-consumers/ traders in that order, it said.

In the January auction, the gas was intended for sale to end-consumers who were not permitted to resale any unconsumed gas. Also, there was no clarity on the participation of traders.

The two partners have now invited bids for the sale of 6 mmscmd (million metric standard cubic meter per day), or a third of the volumes being produced at KG-D6, starting April 16, 2023, according to the tender document.

Users such as city gas operators that convert gas into CNG for sale to automobiles and pipe it to household kitchens for cooking purposes, or power plants that use it to generate electricity, or fertiliser units that use it to make urea, have been asked to quote a premium they are willing to pay over the JKM price.

JKM is the Northeast Asian spot price index for LNG delivered ex-ship to Japan and Korea. The JKM price for May is around $13.5 per million British thermal unit.

Bidders have been asked to quote variable ‘V’ in the gas price formula ‘JKM + V’.

The starting bid for ‘V’ was initially set at $(minus) 0.30 per mmBtu, but later changed to $(minus) 0.42.

Each bidder was required to enter bids that were higher than or equal to the starting bid quote, the tender document said.

The maximum valid bid for ‘V’ was initially put at $5.01 per mmBtu, but later changed to $2.01, beyond which the bid shall not be accepted by the e-bidding portal.

The gas price will be lower from the government-set ceiling price for gas produced from deep-sea fields or the price arrived at the bidding. The ceiling price for six months ending March 31, 2023 is $12.46 per mmBtu and not likely to change much for the next six-month period.

In May last year, Reliance-bp had auctioned 5.5 mmscmd of incremental gas from the newer discoveries in the KG-D6 block, benchmarking it to the same JKM gas marker.

Three-fourths of that volume was picked up by Reliance and its affiliates. The price discovered in that e-auction came at a $0.06 discount to the JKM (Japan-Korea Marker) LNG price.

Prior to that, the duo had sold 7.5 mmscmd of gas at a discount of $0.18 per mmBtu to JKM.

The government sets a cap or ceiling rate at which natural gas from difficult fields like deep sea can be sold. This cap for the period from October 1, 2022 to March 31, 2023 is $12.46 per mmBtu.

Reliance has so far made 19 gas discoveries in the KG-D6 block. Of these, D-1 and D-3 — the largest among the lot — were brought into production in April 2009, and MA, the only oilfield in the block, was put into production in September 2008.

While the MA field stopped producing in September 2018, output from D-1 and D-3 ceased in February 2020.

Since then, Reliance-bp is investing $5 billion in bringing to production three deep water gas projects in block KG-D6 — R-Cluster, Satellites Cluster, and MJ — which together are expected to meet about 15 per cent of India’s gas demand by 2023.

https://www.thehindubusinessline.com/companies/reliance-industries-to-re-auction-gas-in-line-with-new-government-rules/article66638024.ece

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The Petroleum and Natural Gas Ministry accepts all major Kirit Parikh panel recommendations on gas pricing

The Petroleum and Natural Gas Ministry has accepted the main recommendations of the Kirit Parikh committee on natural gas pricing, and will be further recommended by them to the Cabinet soon, several officials said.

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The move is expected to have a significant impact on the energy sector, as the price of natural gas will likely increase. The recommendations of moving to a purely market-determined natural gas pricing system in the next four years, and instituting a ceiling price at $6.5 MMBtu (metric million British thermal unit) and float price at $4 per MMBtu for domestic natural gas prices till then, have been accepted without any change, officials said. The suggestion of a new pricing formula to be linked to 10 per cent of crude prices has also been approved but is pending approval by the Finance Ministry, they added. Back in December, last year, the Committee had called for a completely free, market-determined pricing for natural gas extracted from legacy fields and the removal of all caps by January 1, 2027.Till then, the committee has said a floor price be kept to cover the cost of gas production by Oil India (OIL) and the Oil and Natural Gas Corporation (ONGC). The cap recommended by the panel will be raised by $0.50 every year. No change in the pricing mechanism for gas produced from new and difficult fields was suggested.It had also said the price of gas produced by state-owned firms should be linked to imported crude prices instead of benchmarking them to gas rates in international hubs – Henry Hub (US & Mexico), Alberta (Canada), National Balancing Point (European Union) and the Russian natural gas.If accepted by the government, this could curb the sharp movements in prices witnessed recently due to geopolitical developments as has been seen in the wake of the Ukraine war.

It is in this point that replies from the Finance Ministry are awaited.”All stakeholder discussions have been completed and all relevant ministries and bodies have completed the process of submitting their comments on the issue. Replies to certain recommendations are still expected from the Finance Ministry, which we expect soon,” an official said.Cabinet approval will be needed to implement this new pricing policy because the old pricing policy is applicable till March 31, 2023. Higher production and pricesThe committee was formed to review the existing pricing formula for domestically produced natural gas in the country.At present, the government fixes the prices of gas produced from the old fields of state-run ONGC and OIL which account for about 80 per cent of annual gas output of about 91 billion cubic metres.The new pricing mechanism is expected to benefit domestic producers of natural gas in India, as they will now be able to receive a higher price for their product. This is expected to incentivize domestic production and lead to an increase in domestic supply.The new pricing formula is also expected to make the pricing of natural gas more transparent and efficient, which will benefit consumers. As a result, the government would get a chance to raise the share of gas in India’s energy mix to 15 per cent by 2030 from around 6.4 per cent at present.Almost 50 per cent of the estimated 54.6 billion cubic meters of natural gas used domestically is imported. However, user industries such as fertilizer producers may need to factor in higher costs for natural gas.The committee was set up in September 2022 to review the gas pricing formula to ensure fair prices to consumers after state-set prices of gas from old fields and a ceiling price for output from difficult blocks rose to a record high.The committee was tasked with evaluating the current pricing mechanism and recommending changes that would make the pricing more transparent and efficient.

Proposed RulesRecommendations of the committee

Market-linked natural gas prices by Jan 2027Price range for gas production from legacy and old fields till thenFloor price of $4/mmBtu and cap of $6.50/mmBtu for domestic gasCap price to be raised by $0.50 every yearDomestic gas priced at 10% of crude oil priceNo change in gas produced from new, difficult fields

The Petroleum and Natural Gas Ministry has accepted the main recommendations of the Kirit Parikh committee on natural gas pricing, and will be further recommended by them to the Cabinet soon, several officials said. The move is expected to have a significant impact on the energy sector, as the price of natural gas will likely increase.The recommendations of moving to a purely market-determined natural gas pricing system in the next four years, and instituting a ceiling price at $6.5 MMBtu (metric million British thermal unit) and float price at $4 per MMBtu for domestic natural gas prices till then, have been accepted without any change, officials said.The suggestion of a new pricing formula to be linked to 10 per cent of crude prices has also been approved but is pending approval by the Finance Ministry, they added.Back in December, last year, the Committee had called for a completely free, market-determined pricing for natural gas extracted from legacy fields and the removal of all caps by January 1, 2027.Till then, the committee has said a floor price be kept to cover the cost of gas production by Oil India (OIL) and the Oil and Natural Gas Corporation (ONGC). The cap recommended by the panel will be raised by $0.50 every year. No change in the pricing mechanism for gas produced from new and difficult fields was suggested.It had also said the price of gas produced by state-owned firms should be linked to imported crude prices instead of benchmarking them to gas rates in international hubs – Henry Hub (US & Mexico), Alberta (Canada), National Balancing Point (European Union) and the Russian natural gas.If accepted by the government, this could curb the sharp movements in prices witnessed recently due to geopolitical developments as has been seen in the wake of the Ukraine war.

It is in this point that replies from the Finance Ministry are awaited.”All stakeholder discussions have been completed and all relevant ministries and bodies have completed the process of submitting their comments on the issue. Replies to certain recommendations are still expected from the Finance Ministry, which we expect soon,” an official said.Cabinet approval will be needed to implement this new pricing policy because the old pricing policy is applicable till March 31, 2023.Higher production and pricesThe committee was formed to review the existing pricing formula for domestically produced natural gas in the country.At present, the government fixes the prices of gas produced from the old fields of state-run ONGC and OIL which account for about 80 per cent of annual gas output of about 91 billion cubic metres.The new pricing mechanism is expected to benefit domestic producers of natural gas in India, as they will now be able to receive a higher price for their product. This is expected to incentivize domestic production and lead to an increase in domestic supply.The new pricing formula is also expected to make the pricing of natural gas more transparent and efficient, which will benefit consumers. As a result, the government would get a chance to raise the share of gas in India’s energy mix to 15 per cent by 2030 from around 6.4 per cent at present.Almost 50 per cent of the estimated 54.6 billion cubic meters of natural gas used domestically is imported. However, user industries such as fertilizer producers may need to factor in higher costs for natural gas.The committee was set up in September 2022 to review the gas pricing formula to ensure fair prices to consumers after state-set prices of gas from old fields and a ceiling price for output from difficult blocks rose to a record high.The committee was tasked with evaluating the current pricing mechanism and recommending changes that would make the pricing more transparent and efficient.

Proposed RulesRecommendations of the committee

Market-linked natural gas prices by Jan 2027Price range for gas production from legacy and old fields till thenFloor price of $4/mmBtu and cap of $6.50/mmBtu for domestic gasCap price to be raised by $0.50 every yearDomestic gas priced at 10% of crude oil priceNo change in gas produced from new, difficult fields

https://www.business-standard.com/article/economy-policy/oilmin-accepts-all-major-kirit-parikh-panel-recommendations-on-gas-pricing-123031900507_1.html

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Unified tariff structure for gas pipelines to start from April 1

More than a dozen gas pipelines that form the national gas grid are on track to come under a unified tariff structure from April 1, a top Petroleum and Natural Gas Regulatory Board (PNGRB) official said on Tuesday.

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Based on the principle of ‘one nation, one grid, and one tariff’, the unified tariffs will benefit customers transporting fuel over longer distances and multiple pipelines, PNGRB Board Member A K Tiwari said at the International LNG Conclave organised by the PHD Chamber of Commerce and Industry.

Currently, customers pay additional tariffs for using multiple and inter-connected pipelines. This results in consumers away from the coast paying higher charges as compared to those near it.

To simplify the implementation of unified tariff, the sector regulator introduced entity-level integrated natural gas pipeline tariff.

Under the new regime, buyers will be charged a fixed tariff for the transport of gas over three zones, up from two earlier. This includes transportation of gas within 300 km of a source (gas field or LNG import terminal), 300-1,200 km, and 1,200 km, Tiwari said.

“The existing tariff of the first zone will almost remain the same.

The tariff of the second zone will be less than the additive tariff, and the third will have a tariff which is much less than the additive tariff,” he said.

PNGRB had earlier said the tariff for the first tariff zone will be 40 per cent of the tariff for the second zone.

The government has also incorporated other amendments, such as allowing unaccounted gas, moratorium period, and ramp-up in capacity.

The pipelines that will be part of the unified tariff plan include state-owned gas utility GAIL India-operated Hazira-Vijaipur-Jagdishpur (HVJ) and its supplementary Dahej-Vijaipur line and Dahej (in Gujarat) to Uran-Dabhol-Panvel (in Maharashtra) pipeline.

Reliance Industries’ subsidiary-operated Shahdol-Phulpur line from CBM block in Madhya Pradesh to Uttar Pradesh as well as its formerly owned East-East pipeline from Kakinada in Andhra Pradesh to Baruch in Gujarat would be part of the plan.

Of the 35,000 km of natural gas pipeline that is currently in the works, 23,000 km has been commissioned. As a result, the natural gas mission will go live in the next four-five years.

Kumar, however, stressed that subdued natural gas volumes and under-utilisation of pipelines remain a challenge. “We know the utilisation for any pipeline across the country is around 40 per cent. In some cases, pipelines are utilising around 10 per cent,” Tiwari said. Meanwhile, the capacity utilisation for LNG terminals remains at 50-55 per cent barring few, he added.

https://www.business-standard.com/article/economy-policy/unified-tariff-for-gas-pipelines-to-begin-from-april-1-pngrb-member-123031401105_1.html

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LNG Use / LNG Development and Shipping

GAIL to get LNG shipments from Germany’s Sefe after nearly a year

Indian gas firm GAIL (India) Ltd will get two cargoes of liquefied natural gas (LNG) each in March and April from Germany’s Sefe for the first time since supplies were halted in May, Chairman Sandeep Gupta said on Wednesday. Gupta said Sefe was supplying cargoes from its non-Russian portfolio in Egypt, United Arab Emirates and the United States.

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“Because of force majeure, they cannot supply from Russia, so they are giving us (LNG) from non-Russian portfolio,” Gupta told reporters.

He said the first cargo for March has already arrived at the Dahej terminal in western India. GAIL agreed to a 20-year deal with Gazprom Marketing and Singapore (GMTS) in 2012 for annual purchases of an average of 2.5 million tonnes of LNG.

At the time, GMTS was a unit of Gazprom Germania, now called Sefe, but the Russian parent gave up ownership of Sefe after Western sanctions were imposed on Moscow over its invasion of Ukraine last year. Sefe had stopped supplying LNG to the Indian company in May last year to meet its own demand.

https://economictimes.indiatimes.com/industry/energy/oil-gas/gail-to-get-lng-shipments-from-germanys-sefe-after-nearly-a-year/articleshow/98672306.cms

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India’s IOC seeks 8 LNG cargoes for Dhamra terminal – sources

State-run Indian Oil Corp IOC.NS has issued a tender seeking eight cargoes of liquefied natural gas (LNG) to be delivered to the Dhamra terminal on India’s east coast, three industry sources said.

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The cargoes are to be delivered between June 2023 and May 2024. One of the sources said the tender closes on March 22.

The Dhamra terminal by Adani Total Private Ltd will be India’s first one on the east coast. It is expected to receive its first LNG cargo in April and begin commercial operations 30 to 45 days after receiving the shipment.

Adani Total has a 20-year take-or-pay contract to provide regasification services to Indian Oil Corp for 3 million tonnes of LNG per annum at the Dhamra terminal. Government-run gas distributor GAIL (India) Ltd GAIL.NS has a similar 1.5 million tonnes per annum deal with Adani Total.

Adani Total, in which French energy giant TotalEnergies SE TTEF.PA has a 50% stake, said in February that it expects to receive 2.2 million tonnes of LNG at the Dhamra terminal during the year ending March 2024.

https://www.hellenicshippingnews.com/indias-ioc-seeks-8-lng-cargoes-for-dhamra-terminal-sources/

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Former unit of Russian energy giant Gazprom commits four LNG cargoes to India

Sefe Marketing and Trading Singapore Pte Limted (SMTS), erstwhile Gazprom Marketing and Trading Singapore Pte Limted, will “supply two cargoes in March 2023 and two in April 2023,” Minister of State for Petroleum and Natural Gas Teli said.

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A former unit of Russian energy giant Gazprom will supply four shiploads of LNG to State-owned GAIL (India) Limited for the first time since it halted supplies in May last year, Union Minister Rameswar Teli said on March 23.

Sefe Marketing and Trading Singapore Pte Limted (SMTS), erstwhile Gazprom Marketing and Trading Singapore Pte Limted, will “supply two cargoes in March 2023 and two in April 2023,” Minister of State for Petroleum and Natural Gas Teli said in a written reply to a question in Lok Sabha.

GAIL had in 2012 signed a 20-year deal with Gazprom Marketing and Singapore (GMTS) to buy 2.85 million tonnes per annum of LNG. Supplies started in 2018 and the full volume was to reach in 2023.

GMTS had signed the deal on behalf of Gazprom. GMTS was moved to Gazprom Germania and in early April, Gazprom gave up the ownership of the German unit without giving a reason and placed parts of it under Russian sanctions. This followed West slapping sanctions on Russia for its February 24 invasion of Ukraine. It invoked force majeure and stopping supplies from June 2023.

Sefe, formerly GMTS, “in its Annual Delivery Plan and in their latest communications have maintained their alleged force majeure stance citing various reasons such as Russian sanctions on its LNG source/portfolio and mandate from German authorities (BnetzA) for ensuring energy security for Europe for their inability to deliver LNG cargoes”, Mr. Teli said.

However, “while SMTS maintains its force majeure stance, as on date SMTS has informed that they shall be able to supply two cargoes (shipload) in March 2023 and two in April 2023,” he added. “To mitigate the shortfall in Russian supplies, GAIL imposed supply cuts to users from mid-July 2022 to mid-March 2023,” he said.

“These regulations were within the contract executed by GAIL,” he said. “In order to meet the shortage, GAIL had sourced spot LNG volumes from domestic/international market and also partially/fully stopped its petrochemical complex at PATA plant for fulfilling supply obligations to the customers,” the Minister said.

Under the deal, GMTS was to progressively increase supplies to GAIL. It shipped two million tonnes of LNG in 2021 and was to supply 2.5 million tonnes or a minimum of 36 cargoes in calendar year 2022. The full volume of 2.85 million tonnes is to be reached in 2023. GAIL received one cargo of LNG in June 2023 and nothing after that.

Company officials said Sefe was supplying cargoes from its non-Russian portfolio in Egypt, United Arab Emirates and the United States.

https://www.thehindu.com/news/international/former-unit-of-russian-energy-giant-gazprom-commits-four-lng-cargoes-to-india/article66652526.ece

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Electric Mobility/ Hydrogen/ Bio- Methane

State sees rise in EVs, but charging stations a concern

Ranchi: Despite lack of adequate infrastructure and public charging stations, sale of electronic vehicles (EVs) is seeing a rapid surge in Jharkhand, a state known globally for its coal and other mineral reserves. In the last three years, sale of EVs has registered about seven-fold rise here, figures available from the ministry of road transport and highways indicate.

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In 2019, there were only 1,931 EV vehicles registered in the state. It dipped in 2020 with barely 1,516 registrations, but more than doubled in 2021 with 3,741 vehicle registrations. The trend zoomed in 2022 with 13,683 registrations across the state. In 2023 till March so far, 3,339 EVs have been registered at different regional transport department offices at an average of close to 47 registrations per day.

Pradeep Kumar, state’s joint transport commissioner, said growing concern about climate change and clean fuel is motivating people to shift towards a greener mode of transport.

“The government of India is laying major thrust on reducing dependency on fossil fuel and is pushing for electric vehicles in the country in a major way. State governments, too, are coming up with their own EV policies to promote it. All these are resulting in the rise and acceptance of EV vehicles,” he said.

Kaushik Kumar, a representative of EV vehicles showroom at Harmu Road added that unending rise of conventional fuel prices (petrol and diesel) is another big factor driving the growth in sales.

“Going by the market trend, youths and college-goers are mostly contributing to the sale of EV vehicles at least in urban pockets of Jharkhand due to their limited budget for daily expense for commute. On an average, of 10 vehicles sold per month, more than 50% of our customers comprise youths,” he stated.

The biggest problem, however, for the consumers is lack of enough charging stations across the state forcing buyers to mostly charge the vehicles at home, which is time consuming. For example, Ranchi has barely around half a dozen charging stations.

https://timesofindia.indiatimes.com/city/ranchi/state-sees-rise-in-evs-but-charging-stations-a-concern/articleshow/98646008.cms

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Gujarat closes in on 1 lakh electric vehicles, ranks 8th in country

AHMEDABAD: The number of electric vehicles in the state is nearly one lakh. According to data provided by the Union government in Parliament on Wednesday, Gujarat ranks eighth in the country in terms of total number of electric vehicles (EVs). As of March 6, the number of EVs in Gujarat was 99,236,

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which is, however, only 0.44% of the total vehicles registered in the state.According to the data tabled in the Lok Sabha, Uttar Pradesh has the highest number of EVs (4.65 lakh) of all states and union territories, followed by Maharashtra (2.26 lakh) and Delhi (2.03 lakh). Sikkim, with 21 EVs, has the lowest number in the country. As of March 6, the total number of EVs in the country was 21.70 lakh.

With a total of 2.22 crore vehicles registered in Gujarat, the percentage of electric vehicles compared to total vehicles is about 0.44%, slightly lower than the national average of 0.6%. States such as Rajasthan and Bihar have more EVs than Gujarat.Listing various steps taken to promote the use of EVs, the government said that it has approved the Production Linked Incentive (PLI) scheme for advanced chemistry cells (ACC) to promote their manufacture and the budgetary outlay for the scheme is Rs 18,100 crore. EVs are also incentivized under the PLI scheme for automobiles and auto components, with a budgetary outlay of Rs 25,938 crore for 5 years. The government said GST on EVs has been reduced from 12% to 5% and GST on charging stations has been reduced from 18% to 5%.

https://timesofindia.indiatimes.com/city/ahmedabad/gujarat-closes-in-on-1-lakh-electric-vehicles-ranks-8th-in-country/articleshow/98680730.cms?from=mdr

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Kia reveals new EV9 seven-seat electric SUV with 540km range

Kia’s largest and most advanced electric car yet heralds the beginning of a bold new design era; gets optional swivelling seats.  Kia Corporation has revealed images of the exterior and interior design of the Kia EV9, its first three-row, seven-seat electric flagship SUV. The global premiere of the latest Kia electric vehicle is to take place at the end of March. 

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The new EV9 is the second of Kia’s fast-expanding family of bespoke electric cars, combining compelling performance specs with upmarket design and equipment to enter into direct competition with new SUVs from the likes of BMW and Mercedes-Benz.

Arriving to join the Kia EV6 crossover in dealerships, the EV9 heralds the beginning of a bold new design era for Kia as it progresses with its ambitious ‘Plan S’ strategy to launch another 13 bespoke EVs by 2027.

“The Kia EV9 breaks new ground, aiming to redefine standards for design, connectivity, usability and environmental responsibility,” said Karim Habib, Executive Vice President and Head of Kia Global Design Center. “The Kia EV9 offers customers an exceptionally high-quality proposition and a fresh EV perspective in the family SUV sector. This new vehicle typology provides instinctive experiences and excellent comfort for not just the driver, but all occupants, through innovative use of space, technology and design.”

Though the car has been fully revealed inside and out, Kia remains tight-lipped on performance and technical specifics, though given its targeted maximum range of 337 miles / 540 kilometres – and the fact that it has around 200mm more space between the wheels than the EV6 – it is expected that maximum battery capacity will be in the region of 100kWh from launch.

Because the EV9 shares its 800V-equipped E-GMP platform with the EV6 and its Hyundai Ioniq 5 sibling car, it will be capable of rapid-charging at 350kW to give 100km (62 miles / 100km) of range in just six minutes, and will come as standard with vehicle-to-load reverse-charging functionality.

The EV9 is much more recognisably a dedicated SUV than the rakish, low-slung EV6. “This is an SUV and we wanted that typology to be very clear,” explained Habib, pointing to its chunky black body cladding (available in gloss or matte) and clearly defined, two-box silhouette, while highlighting some of the more non-conventional cues that nod to the EV9’s electric underpinnings.

Ace of space

Built on Kia’s Electric Global Modular Platform (E-GMP), the EV9’s long wheelbase, low beltline, and completely flat electric vehicle architecture have facilitated the creation of generous space for all occupants to connect and relax with lounge-style comfort in all three rows of seats.

Offered in both six- and seven-seat formats, Kia states it “captured feedback from families to evaluate seating configurations and features to ensure the EV9 delivers equality of space, comfort and experience for all occupants without placing all of its focus on the driver.”

Occupants sitting in the first and second-row seats can simultaneously recline their seats to relax and rest when the EV9 is charging. The seats in the second row can be effortlessly swivelled 180 degrees so that occupants can interact with those sitting in the third row. The third-row seats also offer cup holders and charging points for mobile devices.

The open, floating panoramic dashboard extends from the steering wheel to the vehicle’s centre. Two 12.3-inch touch screens integrated with one 5-inch segment display improve the digital experience, offering effortless control of the vehicle’s functions and ensuring physical buttons are kept to a minimum.

The centre console is equipped with ample storage options, including a spacious compartment located at its base. The centre console doors are further designed to add to the overall refinement of the interior space.

The EV9’s extended display high-definition audio visual, navigation and telematics (AVNT) screen creates a rich and immersive experience. It enhances occupants’ ability to engage and interact with the digital world seamlessly. Beneath the AVNT screen, an array of hidden type touch buttons provides a start/stop function along with AVNT and heating, ventilation, and air conditioning (HVAC) control.

https://www.autocarpro.in/news-international/daimler-buses-trains-20000-drivers-over-30-years-114391

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Bengaluru civic body to build large biogas plant on PPP model

The BBMP plans to construct a large-scale biogas plant in collaboration with private players to overcome the setback of failing to run 13 small bio-CNG plants.

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The plant will be located in Kudlu, near HSR Layout, and will re-purpose a section of the existing Karnataka Compost Development Corporation (KCDC) plant.

The plant’s goal is to convert 500 tonnes of organic and biodegradable waste into saleable biogas, and it aims to emulate the success of Asia’s largest bio-CNG plant in Indore, recognised as India’s cleanest city.

The Bengaluru Solid Waste Management Limited (BSWML), the new entity carved out of the BBMP, has estimated the project to be Rs 160 crore, to be borne by the competing company.

“We will guarantee the supply of 500 tonnes of source-segregated organic waste on a daily basis. The private firm will have to invest in setting up the infrastructure and earn revenue by selling biogas,” a senior official said.

Last year, Prime Minister Narendra Modi inaugurated a massive 550-tonne bio-CNG plant in Indore, which has set a benchmark for other cities to follow.DH reported earlier this year that the BBMP has struck an agreement with GAIL Gas Limited (GCL) to set up a compressed biogas plant on an 18-acre land in Mandur in city outskirts. As part of the agreement, GAIL Gas Limited has committed to producing 10.7 tonnes of bio-CNG, approximately 31.39 metric tonnes of high-quality manure, and 180 m3 of fermented liquid organic manure per day.

While boosting the capacity of the bio-CNG plant is expected to reduce the burden on landfills polluting the city’s outskirts, the plants are slammed for emitting foul odour.

Flaws in the tender

The project, however, received a setback as the State Pre-Tender Scrutiny Committee headed by Justice Rathnakala pointed out mistakes in draft tender conditions.

Sources said that the BSWML has been directed to first get the approval of the Infrastructure Development Department (IDD) by placing the proposal before the Single Window Agency headed by Chief Secretary Vandita Sharma.

Besides pointing out loopholes in the financial and technical conditions of the tender, the committee also asked BSWML to get the project approved by the board.

https://www.deccanherald.com/city/bengaluru-infrastructure/bengaluru-civic-body-to-build-large-biogas-plant-on-ppp-model-1200855.html

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GAIL signs agreement with Shell Energy India on ethane sourcing

GAIL (India) Limited has signed a Memorandum of Understanding (MoU) with Shell Energy India Private Limited to explore prospects of importing and handling of ethane and other hydrocarbons.

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It is primarily used as petrochemical feedstock and is separated from the other components of natural gas in most well-developed gas fields. In a bid towards diversification of the feedstock for its petrochemical plant, country’s largest gas firm is looking to import ethane from ethane-surplus countries with matured export terminal infrastructure, GAIL announced on Friday.

It will be transported further through GAIL’s 14,830 km of natural gas pipelines to demand centres.

Reliance Industries has also begun to import ethane from the United States (US) to replace natural gas and naphtha as fuel at its petrochemical plants. Ethane is expected to be produced in large volumes in North America due to the shale gas revolution, which has generated an abundance of liquefied natural gas (LNG) and liquefied petroleum gas (LPG).

Ethane is mainly used to produce ethylene, which is then used by the petrochemical industry to produce a range of intermediate products, most of which, are converted into plastics, packaging films, wire coatings, squeeze bottles and synthetic rubber, among others.

https://www.business-standard.com/article/companies/gail-signs-agreement-with-shell-energy-india-on-ethane-sourcing-123031701092_1.html

 

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Army Plans Green Hydrogen-Based Power Plants Along Border With China

The project is being implemented in forward areas which are not connected by national or state power grids.

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New Delhi:  The Indian Army on Tuesday said it has set in motion a process for installation of a green hydrogen-based micro grid power plant project in the forward areas along the northern borders, a move that comes amid the eastern Ladakh border row with China.

The project is being implemented in forward areas which are not connected by national or state power grids.

The Army said it signed an agreement with the National Thermal Power Corporation Renewable Energy Limited (NTPC REL) on Tuesday for the initiative.

India on January 4 approved the National Green Hydrogen Mission with an outlay of ₹ 19,744 crore to develop a green hydrogen production capacity of five million tonnes a year by 2030.

“In line with the ‘National Green Hydrogen Mission’, the Indian Army has put in motion the process for installation of a green hydrogen based micro grid power plant project in the forward areas along the Northern borders which are not connected by national/ state grids,” the Army said.

It said requisite land on lease is being provided for 25 years with a commitment to purchase generated power through a power purchase agreement.

“The proposed projects will be installed by NTPC on Build, Own and Operate (BOO) models at a jointly identified location in Eastern Ladakh,” it said.

“The project entails setting up a solar power plant for hydrolysis of water to produce hydrogen, which, during non-solar hours will provide power through fuel cells,” it said.

The Army said the initiative will set the stage for similar projects in the future and contribute towards reducing dependence on fossil fuel-based generator sets with concomitant abatement of green-house gas emissions.

“With this MoU, the Indian Army has become the first government organisation to enter into an agreement with National Thermal Power Corporation Renewable Energy Limited with firm plans to roll out similar projects in the future,” the Army said.

https://www.ndtv.com/india-news/army-plans-to-instal-green-hydrogen-based-power-plants-along-border-with-china-3880917

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Maharashtra: Thane civic body plans to have only e-buses in its public transport fleet, says official

The Thane Municipal Corporation in Maharashtra plans to replace its public transport buses with those powered by electricity in a phased manner, an official said on Wednesday.

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The civic body runs a fleet of more than 300 public transport buses in the city, adjoining Mumbai, and has so far introduced 11 e-buses, including a few air-conditioned ones.

Vilas Joshi, chairman of the Thane Municipal Corporation Transport Services, said all their buses running on diesel or compressed natural gas (CNG) will be gradually replaced with eco-friendly electric buses.

The civic body also plans to introduce double-decker e-buses, which can be operated along the Ghodbunder Road that has seen rapid development over the past few years, he said.

Thane Municipal Commissioner Abhijit Bangar said electric buses require less maintenance and it is cheaper to operate such vehicles than the ones running on fossil fuels.

If properly managed, the transport services can be self-sustainable and even generate revenue for the corporation, he said.

We are in the process of improving the earning per km from the civic buses, said the commissioner.

https://www.mid-day.com/amp/mumbai/mumbai-news/article/maharashtra-thane-civic-body-plans-to-have-only-e-buses-in-its-public-transport-fleet-says-official-23276719

 

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BPCL Inaugurates 19 EV Fast-Charging Corridors at 110 Fuel Stations

BPCL has launched 19 EV fast-charging corridors at 110 fuel stations along 15 highways in Karnataka, Kerala and Tamil Nadu. The company has launched three corridors with 19 fuel stations in Kerala, six corridors with 33 fuel stations in Karnataka and ten corridors with 58 fuel stations in Tamil Nadu.

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These corridors will connect important religious and tourists destinations with cities, like Tirupathi in Andhra Pradesh & Bandipur National Park in Karnataka; Ranaganthaswamy Temple, Jambukeswar Temple, famous religious places covered in Kerala are Guruvayoor temple and Kadampuzha temple, Vallarpadam National shrine of Basilica, St Antony’s Church, Koratty and Markaz Knowledge City & Early Sunrise watch at Kanyakumari in Tamil Nadu and Meenakshi Amman Temple in Madurai, and many more.

P S Ravi, Executive Director Incharge (Retail), BPCL, said, “The fast chargers are easy to use. They can be self-operated without any manual assistance though support staff will be available if needed. The company has digitised the entire EV charger locator, charger operations and transaction process through the HelloBPCL app for an online hassle-free and transparent user experience.”

So far, BPCL has converted 21 Highways into electric corridors. By March 2023, 200 highways will be covered with electric vehicle fast chargers across India to support and accelerate EV growth in the country.

https://www.mobilityoutlook.com/news/bpcl-inaugurates-19-ev-fastcharging-corridors-at-110-fuel-stations/#:~:text=BPCL%20has%20launched%2019%20EV,fuel%20stations%20in%20Tamil%20Nadu.

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INTERNATIONAL NEWS

Natural Gas / Transnational Pipelines/ Others

U.S. Natural Gas demand exceeds supply as LNG exports jump

High export demand for LNG and higher domestic natural gas consumption pushed U.S. gas demand to higher levels than supply last year, resulting in the highest average Henry Hub spot price since 2008, the Federal Energy Regulatory Commission (FERC) said in its 2022 State of the Markets report.

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Yet, U.S. natural gas prices have dipped in recent months due to warmer than usual winter weather which required lower volumes of withdrawals from storage. As a result, working natural gas stocks in storage is around 24% more than the five-year average, and 36% more than last year at this time. This puts downward pressure on Henry Hub prices, which saw two consecutive cuts in price forecasts in two months from the U.S. Energy Information Administration (EIA).   Last year, the jump in natural gas prices globally after the Russian invasion of Ukraine and the energy crisis in Europe increased the call on U.S. LNG, whose exports rose by 9% to average 10.6 billion cubic feet per day (Bcf/d), FERC and the EIA said in their 2022 overviews. 

“Tight LNG supplies contributed to increasing international prices, which reached record levels, incentivizing U.S. LNG exports,” FERC said in its report. 

“The approval and expansion of multiple LNG export facilities in 2022 increased LNG liquefaction capacity to serve the growing international LNG demand to higher-priced regions.” 

Unlike in previous years, Europe was the top destination of U.S. LNG exports in 2022, with U.S. shipments soaring by 141%, the EIA said.

Europe accounted for 64% of U.S. LNG exports in 2022. Four countries—France, the UK, Spain, and the Netherlands—accounted for a combined 74% of U.S. LNG exports to Europe.  

The surge in exports to Europe meant that U.S. LNG exports to Asia declined as China and other importers of U.S. LNG scaled down buying due to the Chinese zero-Covid policy last year and the high prices which South Asian importers couldn’t afford. 

The most notable reduction was in U.S. LNG exports to China, which decreased by 78%, the EIA said.

The overall increase in U.S. LNG exports, combined with higher domestic gas demand, sent U.S. benchmark prices to multi-year highs last year.  

The Henry Hub averaged $6.38 per MMBtu in 2022, up from $3.82/MMBtu in 2021. 

“This was the highest average spot price at Henry Hub since 2008, and the largest absolute year-over-year average price increase since 2005,” FERC researchers said in the report. 

“In 2022, natural gas demand was driven by increased domestic natural gas consumption and LNG exports. Although production did not keep pace with demand, it continued the growth trend seen in the last decade,” they added. 

This year, Henry Hub prices have dropped due to milder winter weather in January and February in many parts of the United States. Natural gas inventories rose to above the five-year average, weighing down on prices. 

In its latest Short-Term Energy Outlook, the EIA cut – again – its estimates for natural gas prices for this year and next. The EIA now sees prices averaging $3.02 per MMBtu this year, down by 11.2% from its previous forecast of $3.40 per MMBtu. The EIA has also lowered its forecast for natural gas prices for next year to $3.89 per MMBtu, down from its estimate of $4.04 per MMBtu made in its previous report. 

As a result of the mild winter and low natural gas consumption in the residential and commercial sectors, the EIA expects 2.4% less U.S. natural gas consumption in 2023 than in 2022.  

“Although we reduced our Henry Hub price forecast from last month’s STEO, we still expect natural gas prices to increase in the coming months,” the EIA said. 

The Henry Hub spot price averaged $2.38 per MMBtu in February, the lowest monthly average since September 2020.

According to the EIA, prices are set to go up from the February lows due to rising demand from the Freeport LNG export facility reopening, seasonal increases in demand in the electric power sector, and relatively flat domestic gas production for the rest of 2023 as producers reduce drilling in response to lower prices.    

https://oilprice.com/Energy/Natural-Gas/US-Natural-Gas-Demand-Exceeds-Supply-As-LNG-Exports-Jump.html

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Natural Gas / LNG Utilization

Canada: $3.28-billion indigenous-led LNG project gets B.C. environmental certificate

Haisla Nation chief councillor Crystal Smith addresses a press conference announcing that the Cedar LNG project has been given environmental approval in Vancouver, Tuesday March 14, 2023. THE CANADIAN PRESS/Rich Lam

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Victoria (CP) – The Haisla First Nation on British Columbia’s northern coast has been granted a provincial environmental assessment certificate for a floating liquefied natural gas facility.

The B.C. government said Tuesday the nation, in partnership with Pembina Pipeline Corp., proposes to use electricity to operate the LNG facility and export terminal.

The $3.28-billion terminal will be supplied with natural gas from the Coastal GasLink pipeline, which is still under construction.

A statement from the province said Environment Minister George Heyman and Energy Minister Josie Osborne made their decision after considering a report by the Environmental Assessment Office.

The ministers say in a joint statement that the Haisla majority-owned project takes “all possible measures currently available to reduce greenhouse gas emissions to the lowest feasible level.”

The announcement came on the same day the B.C. government released its new energy action framework to make sure oil and gas sector projects fit with its climate commitments.

Under the new framework, all proposed LNG facilities must pass an emissions test with a credible plan to be net zero by 2030.

Heyman and Osborne said they agreed that the Cedar LNG project supports reconciliation with the Haisla Nation, and that they received letters of support or no opposition from several surrounding First Nations.

Crystal Smith, the chief councillor for the Haisla Nation, said in a statement the approval is a historic step toward their economic self-determination.

“Together with our partner Pembina Pipeline, we are setting a new standard for responsible and sustainable energy development that protects the environment and our traditional way of life.”

The government release said the Cedar LNG project will have an expected export capacity of three million tonnes a year, employing 500 people during construction and 100 people when it’s in operation.

The project will also need a federal impact assessment, and provincial permits and other authorizations before construction can start.

B.C.’s Environmental Assessment Office recommended 65 federal mitigation measures and nine followup programs to address potential impacts from the project in areas of federal jurisdiction, including marine shipping, marine emergency response and greenhouse gas emissions.

Ellis Ross, the Skeena member of the legislature and a former chief councillor for the Haisla, said in a statement the Indigenous-owned project is one of the greatest examples of economic reconciliation in the province.

“A glaring issue in this approval is whether British Columbia has the electrical infrastructure needed for the turbines that are supposed to power this plant,” said Ross, who is a member of the Opposition BC Liberals.

He said the project has many more hurdles to overcome and the current wait for permits is “unacceptable.”

“Cedar LNG will likely be waiting a very long time for further approvals which will further slow down this project, similar to the wait that LNG Canada is facing.”

LNG Canada is building a terminal nearby in Kitimat’s port for the liquefaction, storage and export of LNG.

Environmental group the Wilderness Committee pointed to Premier David Eby’s own statements to ask if climate commitments really matter to the government.

Eby said shortly after becoming leader of the B.C. New Democrats that the province can’t continue to expand fossil fuel infrastructure and reach its climate goals.

The committee’s climate campaigner Peter McCartney said the province can’t claim new fossil fuel projects fit into its plan to reduce emissions.

“All the greenwash around B.C. LNG doesn’t change the fact that every new facility takes us further away from meeting our commitments.”

This report by The Canadian Press was first published March 14, 2023.

https://www.todayville.com/3-28-billion-indigenous-led-lng-project-gets-b-c-environmental-certificate/

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Poland vows to be energy hub of central Europe: PM

WARSAW, March 15 (Xinhua) — Poland aims to become an energy hub and energy security provider for Central Europe, Polish Prime Minister Mateusz Morawiecki said on Wednesday.

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“Our plan is to become an energy hub, a gas hub in particular, for Central Europe,” Morawiecki said at a conference here on Polish-Ukrainian partnership to make the future energy system secure.

According to the Polish Press Agency (PAP), the conference was attended by representatives of governments and leading energy companies from both countries.

Morawiecki said his government’s plan is based on already existing interconnectors and gas pipelines, as well as the country’s future investments in nuclear energy.

He noted that Poland has already invested in a floating terminal for receiving, storing and regasifying liquefied natural gas (LNG) and is expanding the crude oil handling facilities of Naftoport company in Gdansk on the Baltic coast.

“This infrastructure can be used in the future by recipients from Poland, but also our partners from Ukraine, the Czech Republic, Slovakia, and … Hungary,” he said.

Poland and the Czech Republic are planning to return to a joint project of building the Stork II gas interconnector and other cross-border energy bridges between the two countries, he added.

Energy cooperation with Ukraine and neighbouring countries “is also an element of Poland’s national interest,” Morawiecki said, expecting the plan to make Poland a provider of regional energy security, which will thus strengthen its political position in Central Europe. Enditem

https://www.china.org.cn/world/Off_the_Wire/2023-03/16/content_85170941.htm

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Mexico: Énestas joins SEA-LNG coalition

Mexican natural gas company Énestas has joined SEA-LNG, the multi-sector industry coalition established to demonstrate the commercial and environmental benefits of liquified natural gas (LNG) as a marine fuel.

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Énestas, which provides access to LNG for power generation, industry, and transport, has the largest LNG distribution network in Mexico and is expanding gas infrastructure and logistics solutions in the region, including LNG bunkering.

“Énestas is proud to join SEA-LNG as a partner that will help ship owners and operators to move forward towards a cleaner future for shipping, with LNG,” said Miguel González de Cossío Vigil, commercial director at Énestas Mexico.

“SEA-LNG’s high-quality research and networking opportunities will be invaluable to the Énestas team as we continue to enhance gas and fuel accessibility.”

In January 2023, according to Clarksons’ data, LNG was available at 185 ports worldwide with a further fifty facilities planned by 2025.

Énestas has successfully built and implemented innovative logistics projects that are one of a kind in Latin America, such as Fast Track in Coatzacoalcos, Veracruz.

For its role in developing this project, Énestas was formally recognised as an “Exceptional Company” by the Mexican Government for contributing to the UN Sustainable Development Goals.

“We are pleased to be able to support Énestas in its goal of safely and efficiently expanding LNG supply and bunkering infrastructure in Mexico and the USA, creating jobs and economic benefits in a key maritime region,” said SEA-LNG CCO Steve Esau.

The addition of Énestas means that SEA-LNG now has 36 members, including Wärtsilä, Total Enegies, and Shell LNG.

https://www.ship-technology.com/news/enestas-joins-sea-lng-coalition/

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Taiwan looks to replace Nuclear Power with LNG


Taiwan is buying more LNG for delivery over the next year as it closed a nuclear reactor and is set to phase out nuclear power generation by 2025.

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Taiwan’s CPC Corp bought via a tender this week at least 10 cargoes of LNG to be delivered between May this year and March next year, traders familiar with the deals told Bloomberg on Friday.

The LNG purchases are also part of Taiwan’s strategy to procure more gas to offset the decline in nuclear power generation, according to the traders.

This week, Unit 2 of Taiwan’s Kuosheng nuclear power plant was taken offline and will be decommissioned following the expiry of its 40-year operating license. There are now two remaining nuclear reactors operating in Taiwan at the Maanshan nuclear power plant. Those reactors are expected to be shut down in 2024 and 2025.

Taiwan’s Democratic Progressive Party, elected in 2016 and re-elected in 2020, has a policy of phasing out nuclear generation by 2025.

While Taiwan proceeds with a nuclear power phase-out, other countries are rethinking their nuclear generation strategy after the Russian invasion of Ukraine sent oil, natural gas, and coal prices soaring and sparked energy security concerns.

Even Japan is bringing back nuclear power as a key energy source. Japan, which had vowed to reduce nuclear power as a source of electricity in the wake of the Fukushima disaster, is now considering using nuclear power for longer.

At the end of last year, the Japanese government confirmed a new nuclear energy policy, which the country had mostly abandoned since the Fukushima disaster in 2011.

A panel of experts under the Japanese Ministry of Industry decided late last year that Japan would allow the development of new nuclear reactors and allow available reactors to operate after the current limit of 60 years.

https://finance.yahoo.com/news/taiwan-looks-replace-nuclear-power-180000553.html

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Virginia: Virginia Natural Gas receives approval from Virginia State Corporation Commission for renewable natural gas pilot program

VIRGINIA BEACH, Va., March 21, 2023 /PRNewswire/ — A five-year pilot from Virginia Natural Gas (VNG) aims to encourage the development of renewable natural gas (RNG) production facilities within the VNG service territory. Recently approved by the Virginia State Corporation Commission, the RNG Interconnect pilot program also authorizes the company to integrate RNG into its natural gas distribution system.

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The pilot is part of the energy company’s Sustainable Gas Program, which will allow for the production and delivery of RNG into VNG’s pipeline system and support the procurement of both RNG and Next Generation Natural Gas. This is complementary to VNG’s path to reach net-zero direct greenhouse emissions from its operations by 2050.

VNG is the first local distribution company in the state to establish a Commission-approved tariff that allows an interconnection between an RNG production facility and a natural gas utility’s distribution system.

“At Virginia Natural Gas, we are committed to supporting the development of renewable energy sources as we pursue our climate and environmental goals,” said Robert Duvall, president of Virginia Natural Gas. “The approval of this pilot program is a significant step as we move forward to develop sustainable, environmentally responsible solutions while helping our state lead in the progress toward a clean energy future.”

As part of the approval, Virginia Natural Gas will be able to interconnect RNG production facilities with its existing natural gas pipeline distribution system to encourage the production and delivery of a resilient, alternative source of natural gas while providing additional benefits for the distribution system, customers and local economies.

RNG is a low or negative carbon energy solution that is derived from organic waste including farm, municipal, landfill and industrial waste. As these organic waste sources decompose, methane is produced, which is captured and converted to RNG. It is a sustainable and reliable energy source that is compatible with existing infrastructure when blended with natural gas. RNG can be integrated into the VNG distribution system, reducing greenhouse gas emissions, and can be used directly in a manner consistent with traditional natural gas for residential, commercial, industrial and transportation purposes.

Along with VNG’s efforts to support sustainable gas supply opportunities like RNG, other emission reduction efforts at VNG include innovative technologies, such as the use of artificial intelligence to predict third-party damages to critical infrastructure.

Additionally, VNG is reducing emissions through the Steps to Advance Virginia’s Energy (SAVE) program by renewing its natural gas infrastructure, replacing aging pipes with new, more durable materials that reduce methane emissions, continue the safe delivery of natural gas, and are less expensive to maintain. Since the program began in 2012, VNG has replaced more than 500 miles of aging pipeline, reducing greenhouse gas emissions by 31%.

The energy company is also utilizing innovative cross-compression technologies to capture natural gas removed during maintenance activities and reinsert it back into the pipeline system for continued use. This results in less gas or methane entering the atmosphere.

Learn more information about VNG’s sustainable program.

About Virginia Natural Gas  Virginia Natural Gas is one of four natural gas distribution companies of Southern Company Gas, a wholly owned subsidiary of Southern Company (NYSE: SO). Virginia Natural Gas provides clean, safe, reliable and affordable natural gas service to more than 300,000 residential, commercial and industrial customers in southeast Virginia. Consistently ranked in the top quartile for customer satisfaction by J.D. Power and Associates, the company also has been recognized by the Virginia Department of Energy (Virginia Energy) and the Virginia Oil and Gas Association for its safety, innovation, environmental stewardship, community outreach and educational programs, and has been named Local Distribution Company of the Year five times since 2015. The company has been ranked by its business customers as one of the most Trusted Business Partners in the utility industry according to Cogent Reports, and a Top Workplaces in Hampton Roads by Inside Business. For more information, visit virginianaturalgas.com and connect with the company on Facebook, Twitter,  Instagram, LinkedIn and Nextdoor.

About Southern Company Gas  Southern Company Gas is a wholly owned subsidiary of Atlanta-based Southern Company (NYSE:SO), America’s premier energy company. Southern Company Gas serves approximately 4.3 million natural gas utility customers through its regulated distribution companies in four states, as well as approximately 600,000 retail customers through its companies that market natural gas across the country. Other nonutility businesses include investments in interstate pipelines and ownership and operation of a natural gas storage facility. For more information, visit southerncompanygas.com.

https://finance.yahoo.com/news/virginia-natural-gas-receives-approval-150000841.html

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Global LNG Development

Canada: British Columbia announces new energy ‘framework’ on heels of LNG facility approval

VANCOUVER — The British Columbia government says it’s rolling out a new framework for approving oil and gas projects that will ensure the province meets its emissions targets in the coming decades. Premier David Eby said Tuesday the framework will require new liquefied natural gas facilities to have a “credible plan” for net-zero emissions by 2030 and there will be an emissions cap on the industry. 

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Eby said his government will establish a major projects and clean energy office to fast-track proposals that use clean technologies and create jobs. 

The government will also launch a task force within BC Hydro to speed up the electrification of the provincial economy with a focus on renewable energy. 

Environment Minister George Heyman said the new framework ensures industry is under “strong” emissions reduction requirements while allowing it to seize upon opportunities to use emerging clean energy technologies. 

A government statement said the framework “builds off” the environmental assessment certificate granted to the Cedar LNG facility announced Tuesday, which it declared will be one of the lowest-emitting liquefied natural gas facilities in the world.     

“Global markets have rapidly changed over the last couple of years and the urgency over the low-carbon economy we need to build has only grown,” Eby said at a press conference.

“But the scale of the climate crisis and the tremendous opportunities before us mean we must act with more urgency than ever before.”

Eby said the province will bring in an emissions cap to provide “predictability and strong measures to align efforts” to hit B.C.’s greenhouse gas emissions targets.

“Our intention is to leverage our clean electricity to supercharge B.C.’s economy and open new opportunities for business and job growth in the future.” 

Peter McCartney with the Western Canada Wilderness Committee said the announcement was “a poor cover for a brand new fossil fuel infrastructure project when the province is already not on track to meet its climate commitment.”

McCartney said he couldn’t square the approval of the Haisla Nation’s Cedar LNG project in Kitimat with the province’s climate goals.

“I would have liked to hear the premier announce a plan for the transition away from fossil fuels that obviously does not include building brand new liquefied natural gas projects that will be around for decades,” he said. “That’s what bold climate action looks like in the 2020s.” 

McCartney said the B.C. government approving new LNG projects makes it unlikely that the province will meet emissions targets in 2025 and 2030.

“We’ve seen a pattern from this government where they approve new liquefied natural gas facilities that will create more climate pollution and then point to the existence of targets as justification for them,” he said. “But they have no policies that will actually meet those targets.”

Heyman said the new energy project framework was a very significant moment for climate action in British Columbia.

Josie Osborne, minister of energy, mines and low carbon innovation, said the province was on the “front lines of climate change” and seeing its effects in wildfires, heat waves and flooding.

“British Columbians have made it clear that we need to meet our climate targets and move forward as a clean energy leader,” she said in a statement.

This report by The Canadian Press was first published March 14, 2023.

https://www.msn.com/en-ca/money/topstories/province-announces-new-energy-framework-on-heels-of-lng-facility-approval/ar-AA18DhlV?li=AAgh0dA

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US: Matson to convert third containership to LNG fuel

U.S.-based shipping line Matson (NYSE: MATX) will convert the main engine on its container ship, the Kaimana Hila, to a dual-fuel ME-GI engine capable of running on liquefied natural gas (LNG), MAN Energy Solutions has confirmed.

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This follows an option contained in a contract signed with MAN in June 2022 to perform an identical conversion on a sister ship, the Daniel K. Inouye. The retrofit of the Kaimana Hila, an ‘Aloha’ class 3,600 TEU Jones Act-compliant vessel built in 2019, will be performed by MAN PrimeServ, MAN Energy Solutions’ after-sales division. The Kaimana Hila is currently fitted with a MAN B&W S90ME-C10.5 engine.

The retrofit is a part of a growing trend among ship owners to choose dual-fuel retrofits for their existing vessels in service to achieve fleet-transformation goals while simultaneously gaining benefits in terms of upcoming regulations such as Carbon Intensity Indicator (CII) and Energy Efficiency Existing Ship Index (EEXI). Retrofitting a MAN B&W engine to dual-fuel running is straightforward, as the company’s standard, electronically-controlled diesel engines are constructed as ‘dual-fuel ready’ and are therefore readily retrofittable, offering a viable pathway to shipowners who wish to achieve a net-zero carbon footprint by 2050.

Matson’s Senior Vice President, Vessel Operations & Engineering, Capt. Jack Sullivan, said, “This will be the third vessel Matson is retrofitting with dual-fuel LNG capability. Each retrofit is a meaningful step toward achieving our corporate sustainability goals to achieve a 40% reduction in Scope 1 greenhouse gas fleet emissions by 2030 and net-zero Scope 1 GHG emissions by 2050.”

The option to take-up the retrofit comes on the heels of Matson’s recent announcement of the construction of three LNG-powered newbuilds that will also be driven by ME-GI engines. Since the first two-stroke ME-GI (LNG) retrofit in 2015, MAN Energy Solutions has built an impressive list of references and expanded its portfolio of dual-fuel retrofits to also include fuels like LPG and methanol.

https://gcaptain.com/matson-to-convert-third-containership-to-lng-fuel/

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US: MiQ launches world’s 1st LNG cert and registry covering all GHGs

MiQ, a certification authority that monitors for methane (and other) emissions and issues responsible gas certifications, announced today it has launched the world’s first certification to cover

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all GHGs (greenhouse gases) from the LNG supply chain. LNG buyers are now able to compare exporters and choose lower emissions cargoes for the first time–ever. MiQ’s new framework tracks 100% of methane, carbon dioxide, and nitrous oxide emissions from every segment of the LNG supply chain–including production, gathering and boosting, processing, pipeline, liquefaction, shipping, and regasification.

https://marcellusdrilling.com/2023/03/miq-launches-worlds-1st-lng-cert-and-registry-covering-all-ghgs/

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South Korea: DSME bags $521 million order for two LNG ships from Maran Gas

South Korea’s Daewoo Shipbuilding & Marine Engineering Co. won an order to build two liquefied natural gas carriers for 679.4 billion ($521 million) from Maran Gas, a subsidiary of Greece’s largest shipping company, the Angelicoussis Group.

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The vessels will be built at the shipbuilder’s Okpo shipyard in South Gyeongsang Province and are scheduled to be delivered to the owner in the first half of 2027.

Angelicoussis has ordered a total of 121 ships from DSME since 1994, setting the record for the most number of contracts between a single shipping company and a shipbuilder. Since 2021, it has placed orders for 11 LNG carriers with DSME alone.

Last October, DSME received a special donation of $2 million in the name of the late Greek shipping magnate, John Angelicoussis, from the Angelicoussis Group.

“Last year, we won orders for a total of 38 LNG carriers, making us the shipbuilder with the highest number of orders for LNG carriers in the world,” said a DSME spokesperson. “Based on our advanced technological capabilities, we will do our best to secure more orders and improve profitability.”

So far this year, DSME has secured orders for four vessels, including three LNG carriers, worth a total of $800 million, achieving 11.5 percent of this year’s goal of $6.98 billion.

https://www.hellenicshippingnews.com/dsme-bags-521-million-order-for-two-lng-ships-from-maran-gas/

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Germany: Work begins on controversial Baltic Sea LNG terminal, says RWE

BERLIN – Preliminary work has begun for the construction of two liquefied natural gas (LNG) terminals to the east of the German island of Rügen in the Baltic Sea, energy company RWE said on Sunday, despite local political opposition.

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A spokesman for the Essen-based company described the work as “only exploratory” in response to a question from dpa. Permission had been issued by the Baltic Sea Waterways and Shipping Office, he said.

The work is being carried out as part of a contract launched by the Germany government to end the country’s previously heavy dependence on Russian natural gas delivered directly by pipeline along the Baltic Sea floor.

Two vessels were currently carrying out the exploratory work, the spokesman said. “It is usual with offshore projects that a careful inspection of the seafloor and underground is conducted,” he said. This included finding munitions dating back to World War II, he said.

The environmental organization Deutsche Umwelthilfe has criticised the work as causing concern in Rügen’s popular seaside resorts at the construction of tow large terminals just a few kilometres from the beaches.

The state government of Mecklenburg-Vorpommern in which the region lies has also come out against the project. According to state Environment Minister Till Backhaus, the procedure to issue permits is still proceeding.

Construction work is not currently permitted, as the herring spawning season is under way.

State Premier Manuela Schwesig has repeatedly expressed opposition to terminals close to Rügen and called on the federal government to find an alternative

https://starconnectmedia.com/work-begins-on-controversial-baltic-sea-lng-terminal-says-rwe/

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GO TOP

LNG as a Marine Fuel/Shipping

US: Seaboard Marine adds first LNG vessel to its fleet

12 March 2023 marked the first time in PortMiami’s history that a cargo vessel, the M/V Seaboard Blue, was bunkered at PortMiami using LNG as a fuel. Shell, using its Q4000 bunker barge, filled the Seaboard Blue with LNG prior to its inaugural southbound sailing to Honduras and Guatemala.

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The 1000 TEU M/V Seaboard Blue, previously known as the M/V Elbblue, was retrofitted in 2017 with the capability of running on both LNG and diesel fuel. The vessel was the world’s first container ship converted from conventional diesel propulsion to LNG. Calling at PortMiami for the first time, the Seaboard Blue will be part of Seaboard Marine’s North Central America service.

Eddie Gonzalez, President and CEO of Seaboard Marine, said: “The Seaboard Blue is a key new component to Seaboard’s fleet transformation. The recent purchase of this LNG-powered ship not only demonstrates Seaboard Marine’s ongoing commitment to sustainability but also to providing reliable service to our customers. As South Florida’s premier ocean carrier, we are grateful for the level of support we have received from Miami-Dade Mayor Daniella Levine Cava, PortMiami, Shell, the United States Coast Guard, and the Biscayne Bay Pilots.”

Miami-Dade County Mayor, Daniella Levine Cava, stated: “Seaboard Marine’s adoption of greener sources of fuel is exemplary and a significant step towards our goal of keeping Miami-Dade a county on the cutting-edge of sustainability. As PortMiami’s largest shipping line, I am proud of Seaboard Marine’s commitment to improving the environment and their long-time partnership with PortMiami and Miami-Dade County.”

https://www.lngindustry.com/liquid-natural-gas/14032023/seaboard-marine-adds-first-lng-vessel-to-its-fleet/

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Qatar delivers 12 more LNG cargoes in January, February compared to same period in 2022: GECF

Qatar delivered 12 more LNG cargoes in the first two months of 2023 compared to same period in 2022, according to Doha-based Gas Exporting Countries Forum (GECF).

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The number of LNG shipments in the first two months of 2023 reached 1,047, up 4% (or 41 more) than during the same period in 2022, GECF said in its latest monthly report.
In February 2023, the LNG spot charter rate for steam turbine carriers averaged $34,600 per day, which was 36% lower month-on-month (m-o-m), but 111% higher year-on-year (y-o-y).
Spot charter rates usually observe a seasonal increase at the end of the year, as demand for LNG grows for the upcoming winter. In 2022, the same factors were at play, coupled with further tightness in the market due to European buyers purchasing cargoes as floating storage, resulting in extremely elevated charter rates, GECF said.
“As the winter season commenced, these floating cargoes began to be discharged, freeing up carriers and reducing spot charter rates. Additionally, the mild winter conditions helped to ease gas demand somewhat, contributing to fewer inter- basin flows, and thus charter rates softening even further, from January into February,” GECF noted.
The average price of the leading shipping fuels in February 2023 was $610 per tonne, which was unchanged from the previous month, and 14% lower y-o-y.
The impact of decreases in LNG spot charter rates and delivered spot LNG prices, resulted in a net decrease in the LNG shipping cost, by up to $0.53/MMBtu compared with the previous month, it said.
When compared with the same month one year ago, in February 2023 charter rates were greater, but fuel prices and delivered spot LNG prices were lower than in 2022, resulting in LNG shipping costs up to $0.33/MMBtu lower.
In February, 1.47 Mtpa of liquefaction capacity were impacted by planned an unplanned outages, which was down from 2.03 Mtpa of liquefaction capacity that were impacted in February, GECF noted.
At a project level, the Freeport LNG facility in the US was impacted by the unplanned outage in February, while the Skikda LNG facility in Algeria was undergoing planned maintenance activities. Meanwhile, the force majeure on feedgas supply to the liquefaction facility in Nigeria, which was declared in January, remained in effect in February as well, GECF said.

https://www.gulf-times.com/article/658110/business/qatar-delivers-12-more-lng-cargoes-in-january-february-compared-to-same-period-in-2022-gecf

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Germany: Third LNG terminal in Germany now feeding in gas

BRUNSBÜTTEL (dpa-AFX) – Germany now receives liquefied natural gas (LNG) via three floating terminals. After Wilhelmshaven and Lubmin, gas was also fed into the long-distance pipeline network for the first time on Wednesday in Brunsbüttel, Schleswig-Holstein,

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at the mouth of the Elbe River, with the help of a special ship. It had previously been brought there by an LNG tanker. Since Wednesday, the regasified LNG has been flowing into SH Netz’s network, the company announced on Thursday. Initially, a kind of trial operation has begun in Brunsbüttel. “In April, the facility will then go into regular operation,” energy company RWE, the terminal operator, announced.

Among other things, Germany is relying on LNG (liquefied natural gas) to replace Russian gas supplies. It is rapidly building up its own infrastructure for this purpose. Natural gas was injected for the first time at the terminal in Wilhelmshaven in Lower Saxony (operator: Uniper) on December 21, and at Lubmin (operator: Deutsche Regas) in Western Pomerania on January 9.

The feed-in volume through the new three LNG terminals already reached a new high on Wednesday. According to the Federal Network Agency, a total of 217 gigawatt hours of natural gas flowed into the German long-distance pipeline system on that day. This volume corresponds to the gas consumption of around 10,850 sample households (20,000 kilowatt hours) per year. By comparison, 1274 gigawatt hours of pipeline gas flowed into Germany from Norway on Wednesday./moe/DP/stw

https://www.marketscreener.com/quote/stock/RWE-AG-436529/news/Third-LNG-terminal-in-Germany-now-feeding-in-gas-43323391/

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China: U-Ming takes delivery of 4th LNG-powered bulker destined for Anglo-Eastern

Chinese shipbuilder Shanghai Waigaoqiao Shipbuilding (SWS) has delivered the fourth liquefied natural gas (LNG)-powered bulk carrier to Taiwanese bulk carrier company U-Ming Marine.

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As disclosed, the delivery and the naming ceremony took place at the shipbuilders’ yard on 22 March. The vessel was named Ubuntu Loyalty.

The 190,000-dwt dual-fuel dry bulk carrier is a next-generation ship independently designed by SWS. The ship is equipped with MAN B&W 6G70ME-C10.5-GI dual-fuel main engine, which meets the fourth stage of the International Maritime Organisation’s (IMO) regulations.

By delivering the latest vessel, the Chinese shipbuilder completed the entire project which included building four LNG-powered vessels for U-Ming.

To remind, about a month ago, U-Ming took delivery of the third vessel Ubuntu Integrity from SWS. The length of the ship is 299.80 metres, the width is 47.5 metres, the depth is 24.70 metres, the design draft is 18.25 metres, and the vessel can reach a speed of 14 knots. The ship uses LNG fuel and is equipped with two C-type LNG fuel tanks. 

The sister vessels Ubuntu Harmony and Ubuntu Equality were delivered in December 2022 and January 2023, respectively.

All four vessels have been chartered by mining giant Anglo American on long-term deals of 10 years each. 

According to Anglo American, the Ubuntu fleet is a key component of its ambition to achieve carbon neutrality for its controlled ocean freight by 2040 – with an interim target to reduce emissions from these activities by 30% by 2030.

https://www.offshore-energy.biz/u-ming-takes-delivery-of-4th-lng-powered-bulker-destined-for-anglo-eastern/

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Italy: Fratelli Cosulich inaugurates its first LNG bunkering vessel

Italian maritime transportation group Fratelli Cosulich has launched and christened its first LNG bunker tanker vessel named Alice Cosulich.

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The vessel, inaugurated at the CIMC SOE shipyard in China, will sail under the Italian flag and will be operated by both onshore and offshore personnel.

It has a 5,300 DWT, can carry 8,200 m3 of LNG and 500 m3 of MGO, and will be fitted with Wartsila’s Dual Fuel technology, which is used in many marine propulsion and power production systems.

The delivery of the vessel is scheduled for September 2023.

Fratelli Cosulich said the most efficient ‘boil off’ treatment techniques will be offered by the LNG subcooling plant, completely eliminating any potential environmental effects and minimising cargo losses, and the propulsion and manoeuvring system will be of the azimuth type, with a double bow thruster, to allow high manoeuvrability in port areas.

Financially, the project was supported by the collaboration between public entities and private financial institutions and has also been awarded a grant by the European Union (EU) under the Connecting Europe Facility (CEF) programme, with Cassa Depositi e Prestiti acting as ‘implementing partner.’

Giulia Cosulich, ESG Corporate Director at Fratelli Cosulich Group, acting as the godmother of the vessel, thanked everyone who participated in the construction of the unit, and said: “Indeed, this important investment reaffirms the group’s commitment to safeguarding the environment, while decreasing the footprint and operating with absolute safety. The group is today really focused on further growing all LNG-related activities in the next future.”

Cosulich also said the group “has always and deeply believed in relationship and friendship” with China, noting: “This launch is a tangible proof of the mutual trust that exists between our two populations and countries, and I am here not only to represent my family but also to reaffirm our faith in the great country hosting today’s launch.”

To remind, the vessel order was placed back in May 2021, marking the company’s foray into the LNG bunkering business.

https://www.offshore-energy.biz/fratelli-cosulich-inaugurates-its-first-lng-bunkering-vessel/

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

Korea, China fight for methanol-powered ships orders

According to Business Korea News, there is currently a competition between Korean and Chinese shipbuilders about which is taking more shipbuilding orders, as methanol-powered ships are rapidly emerging as next-generation eco-friendly ships.

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Until now, most of the eco-friendly ships have been liquefied natural gas (LNG) ships, which have become the mainstream of the alternative fuel market in the shipping industry. But LNG is also evaluated as a transitional fuel to attain decarbonization goals.

In June 2021, KSOE won an order for a small methanol-powered container ship from Maersk, the world’s largest shipping company. The vessel is scheduled to go into a test run soon ahead of its delivery in the first half of this year. In August 2021, Himsen Engine was installed on the world’s first methanol-powered super-large container ship built by KSOE for Maersk.

On the other hand, China only delivered four methanol-powered petrochemical carriers (PCs) last year. In the case of super-large methanol-powered vessels, Chinese shipbuilders still have only orders for them. They have never delivered them. Most of the orders were placed by Chinese clients.

A big problem facing Korean shipbuilders is that China is preparing an offensive in the high value-added ship market, including methanol-powered ships, by starting a price war. According to the industry, CMA CGM, the world’s third-largest shipping company in France, recently placed an order for six 15,000-TEU methanol propulsion ships with China’s Dalian Shipbuilding, not with a Korean shipbuilder. Korean shipbuilders and Dalian Shipbuilding fiercely competed for this order and China had the upper hand in terms of prices.

CMA-CGM, a French shipping company, is a member of the Ocean Alliance, a shipping alliance with China’s state-run shipping company COSCO. The two are cooperating with each other.

…said an official of the Korean shipbuilding industry.

“If an Ocean Alliance member builds a ship at a Chinese shipyard, the member company can expect favorable financial support from the Chinese government, giving them an advantage in order-taking competition.”

https://safety4sea.com/korea-china-fight-for-methanol-powered-ships-orders/

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Doosan and Kolon to develop hydrogen fuel cell business model using biogas

South Korea-based companies Doosan Fuel Cell and Kolon Global have signed a ‘Basic Agreement for Mid- to Long-term Business and Expansion of Cooperation Areas’ to cooperate step by step to develop an eco-friendly hydrogen fuel cell business model using biogas.

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Under the agreement, Doosan Fuel Cell will be in charge of hydrogen fuel cell supply and long-term maintenance (LTSA), while Kolon Global will be responsible for fuel supply, EPC, and securing piping facilities.

In addition, the two companies agreed to collaborate on various permits and technical exchanges necessary for the business.

According to Doosan, the business model that the companies will be working on is an ‘eco-friendly, high-efficiency energy business’ that removes impurities from biogas generated from sewage treatment plants and mixes it with natural gas to use as a fuel for hydrogen fuel cells.

Doosan said that the electricity generated in the process will be used as a distributed power source, and the heat for heating, cooling, and hot water in the neighbouring area.

In addition, the companies plan to install Trizen, which, according to Doosan, can produce hydrogen, electricity, and heat at the same time, ultimately enabling hydrogen vehicle charging.

Doosan pointed out that the business model is relatively easy to commercialise as Kolon Global owns the right to operate a sewage treatment plant, and it is also a business model in which local governments, companies, and local residents can coexist by using biogas generated in the local community as eco-friendly energy.

The two companies stated they plan to develop the business model this year and start bidding for the domestic Clean Hydrogen Power Generation Compulsory System (CHPS) in earnest from 2024.

CHPS was established to separate the hydrogen power generation sector from the existing Renewable Energy Supply Mandatory System (RPS), establish a support system that meets the characteristics of hydrogen power generation, and promote the use of clean hydrogen in hydrogen power generation, Doosan noted.

Jeong Hyeong-rak, CEO of Doosan Fuel Cell, commented: “We expect high business synergies between Kolon Global, which specialises in eco-friendly energy business development and infrastructure, and Doosan Fuel Cell, a leading hydrogen fuel cell company. We will preoccupy the market and secure mid- to long-term orders.”

In regard to its plans for this year, Doosan said it wants to expand orders this year by securing new ones related to RPS and CHPS, developing overseas markets, and diversifying business models.

https://www.offshore-energy.biz/doosan-and-kolon-to-develop-hydrogen-fuel-cell-business-model-using-biogas/

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Australia’s electric vehicle numbers doubled last year. What’s the impact of charging them on a power grid under strain?

The number of electric vehicles (EVs) in Australia doubled in 2022 and Tesla’s Model 3 emerged as the best-selling mid-size car, the first time an EV has held this title. Despite these headlines, Australia is off to a slow start with electric vehicles. They accounted for only 3.8% of all vehicle sales in 2022, rising to 6.8% of new car sales in February 2023.

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The federal government is working on the first National Electric Vehicle Strategy to make them more accessible to Australians. With tax exemptions, more affordable models and the expansion of a limited charging network, 3.8 million electric vehicles are expected to be on Australian roads by 2030.

As the numbers grow, an increase in electricity demand for charging is inevitable. Careful planning is needed to manage this growth at a time when concerns have been raised about the power grid’s capacity to meet the demand for electricity.

However, early findings from our ongoing research on the use and charging of electric vehicles suggest they will have a more limited impact during peak demand periods than some have feared. Ultimately, they could improve grid stability, with “batteries on wheels” feeding in electricity at times of need.

How much are EVs driven and when?

The impact on the grid depends on the number of electric vehicles and how much and when they are driven and charged. Another factor in the future will be how they transfer energy back into the grid.

To date, information on how these vehicles are being driven and charged in Australia is limited. The UQ Teslascope Project, launched in 2021, aims to fill this knowledge gap. Our new report offers preliminary insights.

We collected and analysed minute-by-minute data on driving and charging from 230 electric cars across Australia. We found the average daily distance driven is 30 kilometres. That’s about the same as for all passenger vehicles in Australia.

On weekdays, most driving happens during morning and evening peak hours. On the weekends, a relatively high proportion of driving is in the daytime.

How much are EVs charged and when?

We estimate each vehicle uses just under 10 kilowatt-hours of electricity per day. That’s about 40% of the daily use of a four-person house in Queensland.

Importantly, only 25% of energy consumption from charging occurs during peak hours (6-8am and 4-8pm) when the grid is under the most strain. This suggests owners are generally charging their cars in a grid-friendly manner.

Around 31% of charging occurs overnight (8pm-6am). This could be a result of people taking advantage of lower electricity costs overnight on time-of-use tariffs and/or charging their vehicles at a convenient time and place.

About 44% of charging happens during non-peak daytime hours (8am-4pm). As more than half the study participants had rooftop solar, this suggests owners are already timing their charging to take advantage of solar energy.

Average daily energy use is higher on weekends than weekdays. As expected, more top-up charges (small volume charges that don’t necessarily fill the battery) occur on weekdays.

What does this mean for the future?

Our research reveals electric car users are, consciously or not, mostly charging them in ways that don’t stress the grid. As the numbers of these vehicles grow, encouraging a higher proportion of charging events outside peak hours will be beneficial.

Proper management of charging could help better integrate renewable electricity sources with the grid, save millions of dollars in grid investment and open up low-cost charging opportunities to electric vehicle users.

In Australia, almost one-third of homes having installed panels, one of the highest rates in the world. By 2050, two-thirds are expected to have rooftop solar. As the number of electric vehicles and the share of renewable energy increases, incentives to encourage users of these vehicles to charge during specific hours of the day are likely to be beneficial.

In the future, these vehicles may help integrate renewables into the grid by acting as batteries on wheels. The vast majority of cars in our study have 50% or higher battery charge at the start of a driving event. That’s much more charge than an average trip requires. This suggests a good amount of spare battery capacity is available.

This spare capacity could help to smooth variable electricity output from renewables. Vehicles could charge at times of high renewable production, then supply energy back to their homes or the grid during peak demand hours or times of low renewable output. In this way, they could help support a grid with high renewable penetration.

How can EV owners help?

We’ve received funding from the Energy Consumers Australia’s Grants Program to continue exploring how shifting EV charging can benefit consumers and the grid. If you have an electric vehicle, you can help with this research by signing up on our website.

https://www.architectureanddesign.com.au/features/features-articles/australia-s-electric-vehicle-numbers-doubled-last

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