NGS’ NG/LNG SNAPSHOT – March 1-15, 2022
City Gas Distribution & Auto LPG
Bharat Petroleum to invest Rs. 4000 cr for development of City Gas Distribution network in Aurangabad, Ahmednagar
Union Minister Dr. Bhagwat Karad on Tuesday said Bharat Petroleum Corporation Limited (BPCL) has launched a gas distribution network in Aurangabad and Ahmednagar districts of Maharashtra and will invest Rs 4,000(approx.) crore for the completion of the project.
The minister of state for finance was addressing a press conference with the BPCL officials here.
BPCL won the Geographical Area (GA) of Aurangabad and Ahmednagar during the 9th round of bidding of PNGRB, through a wholly-owned subsidiary Bharat Gas Resources Ltd (BGRL). During the first five years, approximately 3 lakh PNG connections, 100 CNG filling stations and laying of 350 km of steel pipeline network is planned in an area of 27,178 sq. km. in the GA.
Expanding the PNG and CNG penetration across geographical areas is a part of our strategy that will enable us towards a sustainable planet. Being at a forefront of leading the change in a sustainable way, all our initiatives are aimed at providing Energy solutions to consumers that are environment-friendly by leveraging talent, innovation and technology.
Despite the pandemic during the last two years, the Company has already started laying steel pipelines for the development of PNG and CNG in the two districts. BPCL has developed 21 CNG stations (15 in Ahmednagar and 6 in Aurangabad) and work is in process for 40 more CNG stations to be set up in both districts. For the industrial consumers, the connectivity in areas of Walunj and Shendre in Aurangabad and Supa in Ahmednagar is expected to be completed by September 2022.
Indraprastha Gas receives LoI from PNGRB
Indraprastha Gas on Thursday announced that it received a letter of intent(LoI) from the Petroleum and Natural Gas Regulatory Board (PNGRB). The letter of intent is for grant of authorization to the company for the development of CGD network in the geographical area of Banda, Chitrakoot and Mahoba in the state of Uttar Pradesh.
Under the PNGRB Act 2006, PNGRB grants the authorization to the entities for developing a City Gas Distribution (CGD) network (including PNG network) in a specified Geographical Area (GA) of the country. Accordingly, IGL is requested to submit the performance bank guarantee for an amount of Rs 33 crore. Indraprastha Gas is a natural gas distribution company. It supplies natural gas as cooking and vehicular fuel.
Policy Matters/ Gas Pricing/ Others
Maharashtra announces massive cut in VAT on CNG; tax to be reduced by over 10%
Maharashtra Finance Minister Ajit Pawar announced on Friday, March 11, a drastic cut in value-added tax (VAT) on natural gas from 13.5% to 3%. The move could make compressed natural gas (CNG) cheaper in the state of Maharashtra.
On Friday, Pawar presented his third Budget of the Maharashtra Vikas Aghadi (MVA) government.
The substantial cut in VAT will bring relief for consumers of domestic piped CNG as well as vehicle owners. Compressed natural gas (CNG) is not only an affordable fuel but also a clean form of energy. While cutting the VAT rates, CNG fuel will see cheaper rates in the state. This will also promote clean energy and reduce the dependency on petrol and diesel.
According to Ajit Pawar, the reduction in VAT rates will cost the state Rs 800 crore in revenue each year. He said, natural gas is environment-friendly and is used for domestic piped gas supply and also for CNG-powered motor vehicles, auto-rickshaws, taxis, and private vehicles.
Currently, the CNG rate in Mumbai is Rs. 66 per kg after the prices were revised upwards at the beginning of the year. In Delhi, the CNG rates are incredibly cheaper than Mumbai at Rs. 43/kg.
While tabling the Maharashtra Vikas Aghadi (MVA) government’s third state Budget, state Finance Minister Pawar said that the state of Maharashtra is headed towards being the first state in the country to become a $1 trillion economy. The state’s economy is positioned to grow by 12.1%, which is higher than the 8.9% growth rate that the Indian economy is expected to reach.
NMPML to deploy 15 new city buses
The Nashik Mahanagar Parivahan Mahamandal Ltd (NMPML) the transport wing of the Nashik Municipal Corporation (NMC) deployed 15 more compressed natural gas (CNG)buses. NMPML officials said they will be getting an additional supply of
CNG from Maharashtra Natural Gas Ltd (MNGL) for the buses. NMPML started one new route from Nashik to Dindori, while it will increase frequencies of the buses on the existing three routes from Nashik city to Pimpalgaon, Pathardi and Amrut Nagar.
UP braces for CNG shortage, price rise in wake of Russia-Ukraine conflict
Uttar Pradesh is bracing for a shortage of CNG as the Russia-Ukraine war has started making an impact on natural gas supplies to the local market, which may also lead to a hike in prices of natural gas and crude oil, said officials.
The Gas Authority of India Ltd (GAIL) has already cut down 20% of CNG supply to 34 CNG pumps in Lucknow, 30 pumps in Agra, four in Ayodhya and three in Unnao. Filling stations in these cities are maintained by Green Gas Limited (GGL), while supply in Kanpur is maintained by Central UP Gas Limited (CUGL). GAIL officials didn’t rule out a rise in prices of CNG and crude oil.
Russia controls around 12% of the global crude oil production and 17% of natural gas production. If the war doesn’t stop soon, the gas shortage will get worse, impacting almost all industries/vehicles that are run on CNG and fertiliser companies fuelled by natural gas, said officials.
At ₹120 per kg, CNG costs more than petrol and diesel in Nagpur
At a time when city MP and Union transport minister Nitin Gadkari is advocating use of eco-friendly vehicles, the price of compressed natural gas (CNG) in his hometown is far more than both petrol and diesel cost.
As on March 7, CNG cost ₹120 per kg in Nagpur, while diesel ₹92.51/litre and petrol ₹109.75/litre. At ₹120 per kg, the present rate of CNG once touted to be an economical fuel substitute for conventional automobile fuel is perhaps the highest in the country. There is also a shortage of CNG at two stations of Rawmatt Industries the only agency which runs CNG stations in the city (Yashodhara Nagar and Wadi).
An official from Rawmatt attributed the hike in CNG prices to an increase in the price of LNG in international market. Rawmatt denied CNG refilling to three Aapli Bus operators, which resulted in the Nagpur Municipal Corporation (NMC) curtailing operations of 70 CNG-run buses in the city, causing inconvenience to commuters.
IGL raises CNG price by 50p/kg in Delhi, NCR
Indraprastha Gas Ltd on Tuesday, March 08, raised CNG prices in the national capital and adjoining cities by 50 paisa per kg but left PNG prices unchanged as higher use of imported gas to meet rising demand increased operational costs.
In Delhi, CNG will cost Rs 57.51 per kg, up from Rs 56.51 per kg, as prices of imported gas has firmed up. In Noida, Greater Noida, and Ghaziabad, CNG will cost Rs 59.58 per kg due to the impact of higher state tax. IGL has been forced to raise the share of imported gas in sales as the allocation of domestic gas has proven inadequate in meeting rising demand.
CNG price up by ₹2 per kg
Adani Total Gas Limited (ATGL) on Thursday announced an increase in price of compressed natural gas (CNG) in Ahmedabad by Rs 2 per kg. With this, Adani CNG price has surged to Rs 73.09 from Rs 71.09 per kg.
The price of CNG went up several times since last October, after the Centre increased price of domestically produced gas by 62%. The Adani Group company revised CNG prices at regular intervals, and has increased CNG price in the city by Rs 20.73 per kg since January 2021, when CNG price stood at Rs 52.36 per kg. CNG prices shot up recently after remaining unchanged for about four months i.e. since Diwali 2021. State-run Gujarat Gas Limited is yet to announce any surge in fuel prices.
Electric Mobility/ Hydrogen/ Bio- Methane
India can become a global hub of green hydrogen: PM Narendra Modi
India can become a global hub of green hydrogen as an ample availability of renewable energy gives the country an inherent advantage, Prime Minister Sh. Narendra Modi said on Friday, March 04.
The Prime Minister also said that the country’s clear vision is that sustainable growth is possible only with sustainable energy resources.
Addressing a post-budget webinar on ‘Energy for Sustainable Growth’, PM Modi said, “Ample availability of renewable energy power gives India an inherent advantage, it can be a global hub of green hydrogen.” Noting that the hydrogen ecosystem is interconnected with fertilisers, refineries and the transport sector, he called for innovation by the private sector in the field.
Maintaining that sustainable growth is only possible with sustainable energy, he said, “Energy and sustainable growth are inspired from the country’s traditional practices and are a path for our future needs and aspirations.” PM Modi said he had encouraged sustainable lifestyle at the COP 26 summit in Glasgow last year along with the promise to become a net zero country by 2070.
Green fuel push: No registration fee, road tax for electric, CNG vehicles
The Bengal Budget on Friday, March 11, gave a fillip to a seamless transition to cleaner fuel in the transport sector by encouraging people to buy vehicles powered by electricity and CNG. As an incentive,
the state budget has proposed exemptions on registration fees and road tax for both electric and CNG vehicles for the next two years from 2022-23 financial year.
This is the biggest budgetary push for electric vehicles ever since the EV Policy was announced last year, which also promised sops for shifting to cleaner fuel. Both electric and CNG vehicles are considered the most viable alternative to vehicles run on fossil fuel—petrol and diesel. The transport sector is the biggest contributor to the city’s worsening air pollution, which in turn, has increased the burden of diseases. Bengal’s EV Policy targets to promote inter-city electric mobility between Kolkata and Asansol and Digha.
Rapid chargers will be installed every 25 km, catering to electric buses and heavy-duty vehicles. The transport department has also declared its plan to run all its public transport vehicles either on electric or CNG by 2030. However, seamless supply of CNG from Haldia is still a challenge as the authorities face hurdles over land required to lay the pipelines.
National Green Hydrogen mission: Green Hydrogen Policy fuelling green-hydrogen dream
The green hydrogen policy announced by the Centre marks an important step towards realising the Panchamrit goals outlined by India at the COP26 summit, but it will need much facilitation to hit home. Setting up an enabling ecosystem for green hydrogen,
under what may be just the first phase of the policy, is thus a logical step to support India’s decarbonisation journey.
The policy focuses on providing easy access to and reducing the cost of renewable energy (RE), which currently accounts for about 60% of green hydrogen production costs. As per CRISIL analysis, waiver of ISTS charge is estimated to reduce costs by 5-7% assuming RE is sourced through third-party open access. Additionally, such waiver will support the setting up of RE capacity in resource-rich regions, further reducing costs.
The policy also provides a stimulus to RE developers looking at scaling up their portfolios, as the plan to produce 5 MT of green hydrogen annually by 2030 could require ~250 BUs of green power, translating into RE capacity of 140-150 GW. The policy also provides a diversification opportunity to players across the energy value chain. For green hydrogen to take off, however, the unit economics will need to be addressed.
How ride-hailing startups with EV-only fleets are ushering in change for climate
Two months ago, the AAP government issued a draft policy making Delhi the first state in the country to adopt a policy to regulate vehicular emissions from app-based cab aggregators.
The draft policy mandated that aggregators would need to ensure that 10% of all newly onboarded two-wheelers and 5% of four-wheelers were electric within three months of implementation, while 50% of all two-wheelers and 25% of all four-wheelers would have to be electric by March 2023.
The plan of action, which was drafted in accordance with regulations of Delhi Electric Vehicle (EV) Policy 2020, is currently in the public domain for receiving feedback from the public. However, while the policy aims at faster adoption of EVs, Delhi already has a small but growing number of ride-hailing companies, which have only EVs in their fleet.
With around 1,000 electric four-wheelers, BluSmart is currently the largest ride-hailing company with an all-EV fleet not only in Delhi-NCR, but the entire country. A major deciding factor of the area of operation is the availability of charging stations, but even their numbers are growing.
Natural Gas / Transnational Pipelines/ Others
Saudi Arabia discovers new natural gas fields
Saudi Arabian Oil Company Aramco has discovered a number of natural gas fields in the Empty Quarter, near its northern border and in the eastern region, Energy Minister Prince Abdulaziz Bin Salman Bin Abdulaziz declared.
The Shadun natural gas field was discovered in the Central Region, 180 kilometers southeast of Riyadh, after gas flowed from Shadun-1 well at a rate of 27 million standard cubic feet per day, with 3,300 barrels of condensate. The Shehab natural gas field was also discovered in the Empty Quarter, 70 kilometers southwest of the Shaybah field after gas flowed from the Shehab-1 well at a rate of 31 million standard cubic feet per day.
USA: New pipelines carrying natural gas plant liquids increase natural gas processing
In 2020 and 2021, more than 2,000 miles of new liquids pipelines were brought into service, according to our Liquids Pipeline Projects database. Several of these recent infrastructure projects were dedicated to transporting a mix of natural gas plant liquids (NGPLs),
which are produced at natural gas processing plants from raw natural gas streams. Natural gas plant liquids must be extracted from raw natural gas streams so the processed natural gas can be sold into the natural gas market. After these NGPLs a mixture of ethane, propane, butanes and natural gasoline is known as the Y-grade mix is separated from raw natural gas (primarily methane), they are shipped by pipeline for further processing.
The expanded Y-grade pipeline capacity has allowed natural gas processing plants to process more natural gas and to ship the extracted Y-grade mix at relatively low cost to fractionation plants. At the fractionation plants, the Y-grade mix is further processed into its components, which can then be marketed individually.
USA: EDL opens biogas production site in Michigan, a part will be used for NGVs
Global sustainable energy producer EDL and key project stakeholders bp, Consumers Energy and Granger Waste Services welcomed the start of operations at the Wood Road Renewable Natural Gas Facility.
The new plant is the first of its kind in Lansing, Michigan. The biomethane produced will be added to Consumers Energy’s existing pipeline network for delivery to end users. A portion will be taken by bp to supply natural gas-powered vehicles across the United States.
Granger Waste Services CEO Keith Granger also commented, Granger has been committed to using waste as a resource since 1985 when we became the first company in Michigan to create sustainable renewable energy using landfill gas. We’re excited to be a part of this project that takes energy production from landfill gas to the next level.
Consumers Energy Vice President of Gas Engineering and Supply Greg Salisbury added, Consumers Energy is proud to support development of renewable natural gas in Michigan. Like many across the country and our industry, we’re exploring how technologies like renewable natural gas can help create a cleaner energy future while continuing to safely deliver the energy we need in a cold-weather Midwestern state.
USA: Audubon Engineering lands LNG pipeline contract in Louisiana
Audubon Engineering Co., with offices in Lafayette, announced last week that it has been awarded a contract to provide engineering and construction management services for a greenfield liquefied natural gas interconnect pipeline on the Louisiana coast.
Regulated by the Federal Energy Regulatory Commission, the pipeline project will move between 1.5 and 2.0 billion cubic feet per day of gas to serve as the main supply for an undisclosed LNG export facility.
Audubon successfully completed the front-end engineering for the project in 2021. Backed by its integrated offshore and pipeline teams, Audubon is leading the project from its Louisiana and Texas offices in collaboration with FERC, a major LNG export company and a major interstate gas transmission company.
UK: Ohio waste-to-energy site to produce bio-CNG for OPAL Fuels stations
OPAL Fuels LLC, a vertically integrated producer and distributor of renewable natural gas, has commenced commercial operation of a new facility to extract and capture waste methane from Rumpke Waste & Recycling’s Noble Road Landfill, transform
it into biomethane and transport it through Chesapeake Utilities Corporation’s wholly-owned subsidiary Aspire Energy of Ohio. An affiliate of NextEra Energy Resources, LLC is a joint owner of the project.
The new, state-of-the-art facility, located in Shiloh, Ohio, utilizes advanced, patented technology to treat landfill gas by removing CO2 and other components to purify the biogas and produce pipeline-quality renewable natural gas. Aspire Energy constructed a 33.1-mile pipeline, which will transport the gas to the company’s pipeline system. The fuel will be dispensed at OPAL Fuels fueling stations, and Rumpke trucks will also be fueled using this bio-CNG, displacing diesel fuel.
The Noble Road project is anticipated to produce approximately 6.9 million gasoline gallon equivalents (GGE) per year of biomethane. It is also expected to reduce the landfill’s methane emissions by approximately 20,000 tons per year.
FG seeks US funding to support the development of Nigeria’s natural gas
The Minister of State Petroleum Resources Chief Timipre Sylva has called on the United States (US) Government to provide funding support for Nigeria to develop its natural gas resources to serve as an alternative source of energy for Europe.
The call by Sylva is coming on the heels of the Russian war with Ukraine, which threatens the disruption of gas supplies from Russia to the entire European continent.
The minister said the crisis between Russia and Ukraine was a wake-up call to have alternative sources of gas to Europe stressing that in situations like this, it is always good to have alternatives. It is time to say let’s look forward. In an earlier meeting with the US Assistant Secretary of State Harry Karman, Sylva expressed Nigeria’s willingness to develop different sources of renewable energy such as wind, solar and hydrogen.
Global LNG Development
Philippines: San Miguel allotting Php41.5B for Leyte LNG plant
SMC Global Power Holdings (SMCGP), the power arm of San Miguel Corporation (SMC), is investing Php41.5 billion to develop its 600-megawatt (MW) liquefied natural gas (LNG) combined-cycle power plant in Tabango, Leyte.
Based on a document it submitted to the Department of Environment and Natural Resources (DENR), the LNG plant will be housed in a 26-hectare property inside East Genesis Landholdings, Inc.’s 56.8-hectare complex located close to the island’s northwestern shore. Prestige Power Resources, Inc. (PRRI) – the plant’s developer – as well as East Genesis are SMCGP subsidiaries.
Construction is seen to begin in the third quarter, while commercial operations is expected to commence in the first quarter of 2025. Based on data from the Department of Energy (DOE), the Tabango plant will host eight 75MW generators. The DOE had endorsed the project to the National Grid Corporation of the Philippines for system impact study. PRRI said that the power plant would help the country meet the growing demand for electricity, which is seen to reach 49,287MW by 2040, according to the DOE’s Power Development Plan.
Qatar: Giant LNG ambitions in the Middle East
Qatar dominates natural gas news from the Middle East as it develops the North Field East expansion, which is the world’s single largest LNG project. Natural gas news from the Middle East over the past year has been dominated by developments in Qatar.
The country is already one of the world’s leading LNG exporters, though it has recently been edged out by Australia and also stands to be overtaken by the US as more liquefaction capacity comes online there in 2022. However, Qatar is taking steps to regain and extend its LNG dominance as it expands production from its North Field, its portion of the world’s largest non-associated natural gas field, which it shares with Iran.
In February 2021, state-owned Qatar Petroleum which has since been renamed to QatarEnergy announced a final investment decision (FID) on North Field East (NFE), the first phase of its North Field Expansion project. NFE is set to increase Qatar’s liquefaction capacity from 77mn tonnes per year (tpy) to 110mn tpy. The second phase of expansion, North Field South (NFS), is then set to further increase capacity to 126mn tpy at an estimated total cost of $28.75bn.
Among other advantages, QatarEnergy benefits from having extremely deep pockets, to the point that it has delayed choosing equity partners for the project and took FID on NFE by itself. It is in the process of evaluating offers for participation in the project from international companies, but has previously indicated that it is not afraid to go it alone if necessary. Another advantage the company enjoys is its low cost of supply, with rising natural gas prices and demand putting it in an even stronger position.
The mega-trains that will be built by Chiyoda and Technip will each have a capacity of 8mn tpy and will receive around 6 bcf/d (1.7 × 108 m3/d) of feed gas from NFE. The contract also includes a “large” carbon capture and storage (CCS) facility. According to the two companies’ statement from February 2021, the CCS facility is expected to result in roughly 25% lower greenhouse gas (GHG) emissions compared with similar LNG projects – though it does not specify on what basis a project would be considered similar.
Germany will start construction of the country’s first two LNG import terminals
In a bid to reduce energy dependence on Russia and diversify supply sources, the German government announced on Monday, Feb 28, that it will accelerate the construction of what would be the country’s first two liquefied natural gas (LNG) import terminals.
Germany currently has no LNG receiving and regasification capacity. Scholtz said that the new terminals will be eventually transformed to handle climate-friendly gases. Hit by delays in approvals and policy uncertainty, Germany has not progressed on its plan to build an 8 Bcm (billion cubic metres) of natural gas per annum facility at Brunsbuttel and a 12 Bcm per annum terminal at Stade. The planned terminal in Brunsbüttel on the North Sea coast in the state of Schleswig-Holstein is yet to receive a construction permit.
German LNG Terminal (GLT), a consortium comprising of Vopak, gas grid operator Gasunie and Oiltanking (a subsidiary of the Hamburg-based Marquard & Bahls AG) that will build the terminal in Brunsbüttel, has promised to help Germany decrease its reliance on Russian gas, as LNG can be delivered by ship from countries including the U.S and Qatar.
The German government is reportedly requesting energy company Uniper to revive its shelved plans for an LNG port in Wilhelmshaven. The company had dropped plans to construct the terminal last year due to lack of interest in the LNG sector in terms of booking large, long-term capacities for LNG regasification in Germany.
Oman in talks with Shell and TotalEnergies to develop key gas block
Middle East nation is planning to award at least three exploration blocks this year. Oman is in talks with supermajors Shell and TotalEnergies to develop onshore Block 11, which lies in proximity to its prolific gas-rich Block 10.
Salim al Aufi, under-secretary of Oman’s Ministry of Energy & Minerals, told local media this week that the nation is in talks with the two companies to sign a commercial agreement to develop Block 11.
Shell and its partners Omani state-owned energy company OQ and Marsa LNG — a joint venture between French giant TotalEnergies and OQ — signed a Block 10 concession agreement with Oman’s Ministry of Energy & Minerals in December to develop and produce natural gas.
According to the concession’s agreement, Shell will hold a 53.45% operating stake, with OQ and Marsa LNG holding 13.36% and 33.19%, respectively. Block 10 is said to be strategic for Oman and is expected to bridge the gap between the nation’s gas supply and future consumption needs.
The Marsa LNG joint venture, in which TotalEnergies holds an 80% stake, was created recently as a liquefied natural gas export company. The LNG export facility plans to sell gas from Block 10’s Saih Rawl field to the government for 18 years or until the start-up of the planned LNG plant. TotalEnergies is understood to be separately carrying out a tender process for the LNG export facility destined for Marsa LNG, but is yet to formally announce the winner.
Belgian-backed TES plans LNG terminal in German port town
Hydrogen company Tree Energy Solutions (TES), backed by Belgian investor group AtlasInvest, said on Wednesday, March 03 it would build an LNG terminal in the German North Sea port town of Wilhelmshaven.
The terminal is down to receive investments of 25 billion euros by 2045 and scheduled to go into operation in three years, Handelsblatt added, and could bring up to 30 billion cubic meters of natural gas to Germany in the first few years.
In 2021, Germany consumed about 100 billion cubic meters of natural gas and 38% of that came from Russia.
Italy: Venice Energy accelerates LNG import terminal construction
Australian company, Venice Energy, is accelerating its construction schedule for its government approved AUS$250 million LNG import terminal in South Australia. The company said negotiations with a range of off-take customers had advanced,
and it will additionally undertake a major investor roadshow in east coast capitals, with the support of leading advisors, Sequoia Capital.
Venice Energy Managing Director, Kym Winter-Dewhirst, said, as one of only two approved LNG import projects in Australia, there is strong interest from the investment community both locally and overseas, to support the project. Known as the Outer Harbour Project, Venice Energy received its project approvals from the South Australian government in December 2021, with the project receiving both Crown Sponsorship and designated as “essential infrastructure” by the state.
The company expects to begin construction of the terminal and associated facilities in 2H22 and has flagged first gas into the state network by 2024 or earlier, should off-taker demand require.
It is currently finalising a joint feasibility study with the owners of the 680 km SEA gas pipeline between the two states that will make the pipeline infrastructure bi-directional. This would allow delivery from the Outer Harbour Project to key customer locations in South Australia and Victoria, and would ensure Victoria is able to meet its winter gas peak demand in 2024 and beyond.
Taiwan’s CPC gets environmental okay for the new re-gas project
Taiwanese gas supplier CPC Corp. has received the Environmental Protection Agency’s approval to build a new LNG import terminal near an algal reef off the coast of Datan.
CPC had announced the plan to develop the terminal in 2019 but faced resistance from the environmental groups who argued that the project would harm the algal reef. Environmentalists had proposed relocating the terminal to the port of Taipei.
A referendum on whether to relocate the terminal was rejected in December last year after not enough voters took part to validate the result. State-owned CPC is the biggest LNG importer in the country and operates three receiving terminals.
New Australian LNG project advances
Australia’s Venice Energy is moving to accelerate the construction schedule for its delayed Outer Harbor liquefied natural gas import project near Adelaide, South Australia and now hopes to take the final investment decision in the coming months.
Venice last week held investor roadshows in Australia’s east coast capitals, supported by its leading advisor Sequoia Capital. Against this backdrop, Venice has been advancing negotiations with potential off-takers of the regasified volumes. Venice now expects to start construction of the terminal and related facilities in the second half of this year with first gas entering the state network by 2024 – or earlier depending on off-taker demand.
GasLog last year signed a Heads of Agreement to negotiate a charter deal for the supply of the Outer Harbor floating storage and regasification unit. GasLog will also provide a technical support crew to operate the 146,600-cubic metre capacity FSRU facility.
The LNG import project will also involve two new wharfs, loading arms, cryogenic piping and shore-based infrastructure with the ability to supply up to 140 Petajoules of gas per annum into the South Australian and Victorian markets. Venice is currently finalising a joint feasibility study with the owners of the 680-km SEA Gas pipeline between the two Australian states that will make the pipeline infrastructure bidirectional.
Italy’s Sorgenia, Iren ready to build a large LNG terminal
Italian energy groups Sorgenia and Iren are ready to work on a project to build a liquefied natural gas terminal in southern Italy that would be big enough to cover almost half of gas imports from Russia.
The terminal, which would be built in the southern Italian port of Gioia Tauro, is designed to process 12 billion cubic metres (bcm) of LNG per year. Italy imported 29 bcm of gas from Russia last year.
Since Russia invaded Ukraine, Italy has ramped up efforts to secure alternative gas sources, with LNG-rich Qatar a particular focus of attention. The project, jointly controlled by Sorgenia and Iren, completed the permitting process several years ago before being put on standby.
Italy’s complex permitting process has virtually stopped the development of LNG facilities beyond the three plants currently operative and which now account for around 20% of daily imports. The project would form part of Italy’s efforts to wean itself off Russian gas. Earlier on Tuesday top utility Enel said it was ready to dust off plans to build an LNG terminal. Italy aims to become independent of Russian gas imports within 24 to 30 months, Energy Transition Minister Roberto Cingolani said on Tuesday, March 08.
Vietnam: PetroVietnam Gas to test country’s first LNG terminal
HANOI: PetroVietnam Gas GAS.HM will trial the country’s first liquefied natural gas (LNG) terminal in the fourth quarter of this year, the company said on Tuesday, as part of plans to make the fuel a major energy source for the country.
The Thi Vai LNG Terminal in the southern province of Ba Ria Vung Tau is scheduled to start commercial operations from 2023. It will supply two gas-fired power plants, Nhon Trach 3 and 4, which are being built in neighbouring Dong Nai province, the company said in a statement.
Vietnam, a manufacturing powerhouse that currently generates most of its electricity from coal, is drafting a new national power development plan that includes 22 LNG-fired power plants. These will have a huge combined potential capacity of up to 108.5 gigawatts. PetroVietnam Gas said it has so far signed eight master sale and purchase agreements with LNG suppliers, adding that talks are also underway with others. The terminal has an initial capacity of one million metric tonnes per year, which could be tripled afterward, according to the statement.
However, PetroVietnam Gas also warned that the LNG market is evolving in an “unfavourable manner for buyers” with prices forecast to keep rising strongly in the coming years.
Technological Development for Cleaner and Greener Environment Hydrogen & Bio-Methane
DOE taps Germany’s MAN for LNG study in VisMin
The Department of Energy (DOE) has signed a memorandum of understanding (MOU) with Germany-based MAN Energy Solutions SE (MAN ES) as part of the government’s efforts to develop the country’s downstream natural gas industry.
Through the memorandum, a feasibility study will be conducted on the development of small-to-medium scale liquefied natural gas (LNG) importation and regasification to power projects in Visayas and Mindanao. MAN ES will also determine the necessary infrastructure and transportation facilities, as well as the required mixed modes of land and sea transport that will provide natural gas supply in an economical manner.
The DOE says the feasibility study will be available for public consumption, especially for investors who are interested in developing LNG facilities in the VisMin area.
The DOE has been approving LNG import terminal projects, mostly located close to the Philippines’ five existing natural gas power plants in Batangas City, as the Malampaya gas field’s resources continue to dwindle. Malampaya, the country’s only major source of indigenous fuel, supplies a third of Luzon’s power demand.
Oman LNG commissions pre-feasibility study to assess energy transition clusters
Oman LNG has inked an agreement with Sultan Qaboos University’s Sustainable Energy Research Centre to commence the first techno-economic pre-feasibility study to assess hydrogen and energy transition clusters in the Sur Industrial Estate.
Oman LNG announced that the agreement supports the Hy-Fly National Hydrogen Alliance in its aim to establish hydrogen clusters across Oman.
The study intends to develop a roadmap for clean hydrogen and energy transition clusters in Oman, explore decarbonisation opportunities for Oman LNG and beyond, and investigate low carbon business opportunities and strategic partnerships.
Australia’s first public hydrogen service station will open in Geelong
The city of Geelong will be home to a next-generation hydrogen service station announced by Viva Energy. The New Energies Service Station will be built at the site of Viva’s existing petroleum refinery and feature a 2MW electrolyzer
as well as hydrogen compression, storage and dispensing infrastructure. The $43.3 million project is supported by the Australian Government with $22.8 million through ARENA (Australian Renewable Energy Agency).
The first public hydrogen refueling facility in Australia, the project aims to support the uptake of hydrogen fuel cell technology in heavy and long distance vehicle fleets in the Geelong region. Renewable hydrogen will be produced on site using recycled water from Barwon Water’s Northern Water Plant. Construction will begin next year and the new filling station is expected to commence operations by early 2024.
The development of the New Energies Service Station is part of Viva’s recently announced plans to achieve carbon neutrality by 2050, with aims to upgrade and replicate the project across Australia. The company hopes the new facility will be the first of a network of hydrogen refueling outlets located on key transport routes up Australia’s east coast, connecting Melbourne, Sydney and Brisbane.