NGS’ NG/LNG SNAPSHOT – March 16-31, 2022
National News Internatonal News
NATIONAL NEWS
City Gas Distribution & Auto LPG
Project of supplying piped cooking gas to houses launched in Maharashtra
The project of supplying cooking gas through pipeline has been launched in Latur city of Maharashtra’s Marathwada region by the local civic body. Maharashtra Medical Education Minister Sh. Amit Deshmukh, who is Latur’s guardian minister, on Saturday, March 19,
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inaugurated the project, under which 101 houses in the city are being supplied piped cooking gas on a pilot basis. The project, which has been initiated by the Latur Municipal Corporation, is being rolled out by Ashoka Gas (Unison Enviro Pvt Ltd).
ETEnergyworld together with SAS is organising a roundtable discussion with a purpose to understand the significance of data and analytical tools in getting the optimized decisions for each of the individual business processes. A project of converting waste into energy will be started in the city, and this energy will be used for industrial purposes. Latur mayor Vikrant Gojamgunde, municipal commissioner Aman Mittal, CEO of Ashoka Gas Mukund Chandak were present at the inauguration ceremony.
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700 CNG outlets likely in Nagpur district in 8 years, piped gas for industry, homes
Nagpur is likely to get 700 CNG pumps for vehicles within a span of eight years and supply of natural gas at doorsteps for industrial and domestic purposes in a year or more. Haryana City Gas (KCE) Private Ltd is all set to begin talks with consumers and commence works of laying piped gas networks across the district.
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MSRDC vice-chairman and managing director Radheshyam Mopalwar had said that all districts of Vidarbha including Nagpur will get city gas distribution (CGD) networks after the completion of the pipeline. General Manager (commercial) of Haryana City Gas (KCE) Private Ltd Sh. Varun Chaturvedi said that PNGRB has issued licence to the company for CGB in the Nagpur district. Sh. Chaturvedi further stated that the plan is to develop 700 CNG pumps across the district.
The company will facilitate gas to all industries in the district. GAIL Limited has also planned to lay gas pipeline from Nagpur to Raipur to Jharsuguda in Odisha which will be an extension of the pipeline being laid from Mumbai to Nagpur.
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98% of India’s population will be covered with piped cooking gas – MoPNG
More than 82% of India’s land area and 98% of the population will be covered with piped cooking gas after the latest round of expansion work, the government informed the Rajya Sabha on Monday, March 28. Bids for the expansion work will be opened on May 12 this year.
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Replying to supplementary questions of members during Question Hour, Minister of Petroleum and Natural Gas Sh. Hardeep Singh Puri said once the award of bidding is done, it typically takes a certain number of years for the infrastructure to be laid.
Further, he stated that the only population that will be left will be some areas in the North East and Jammu and Kashmir because they are widely dispersed. Typically, cooking gas that comes through the pipe is cheaper and more consumer friendly than that supplied through cylinders.
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Natural Gas/ Pipelines/ Company News
Gas price to more than double from April 01, 2022
Administered price of natural gas in India will more than double. Effective October, it could be more than four times the current level. ‘Market-determined’ price of gas produced from ‘difficult’ fields such as the KG-D6 block in the KG basin operated by Reliance-BP combine, will also see a similar hike.
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While these are good tidings for India’s gas producers, Reliance Industries and ONGC, as they seek to ramp up production from both the existing and new fields Reliance-BP, for instance, will start production at MJ fields in the KG-D6 block in the last quarter of 2022, which will nearly double the block’s output households and other non-industrial users will bear the brunt. City-gas distribution (CGD) companies like Mahanagar Gas, Indraprastha Gas and Gujarat Gas, being the main buyers of domestic gas, will find their costs going up. But analysts feel since they have been passing on cost increases to the consumers in a calibrated manner over the last few weeks, the impact of costlier gas on their margins would be moderate in the short term.
For gas-based power, a fuel cost above $4.5/mmBtu (net calorific value basis) could be prohibitive. So any delay in a corresponding tariff revision could result in a further drop in their capacity utilisation. The government sets the administered price of gas for normal fields every six months on April 01 and October 01 based on rates prevalent in select global gas markets but with a lag of one quarter. It remains to be seen if the government will intervene in the price-setting mechanism now given the big spike in prices and its potential to stoke inflation.
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Sh. Sanjay Kumar takes over as a new Managing Director of IGL
Gas industry expert Sh. Sanjay Kumar on Friday, March 25, took over as the new managing director of Indraprastha Gas Ltd – India’s largest CNG distribution company. Before joining IGL, he was responsible for overseeing and growing GAIL’s gas marketing and transmission business. In 2011,
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Sh. Kumar was tasked with setting up GAIL’s overseas LNG trading subsidiary GAIL Global (Singapore) Pte Ltd in Singapore.
This was the first such subsidiary created by any Indian oil and gas public sector unit, and over the next five years, Sh. Kumar played an important role in developing this subsidiary into a well-established player in the global LNG market. He has also been GAIL’s nominee director on the boards of Maharashtra Natural Gas Ltd (MNGL) and GAIL Global (Singapore) Pte. Ltd.
Sh. Kumar has taken over the reins of IGL from Sh. A. K. Jana who has been repatriated back to GAIL. Like Sh. Kumar, Sh. Jana’s parent company is GAIL too. IGL, which retails CNG to automobiles and piped cooking gas to households in the national capital and adjoining cities, is an equal joint venture of GAIL and BPCL with the Delhi government holding a 5% equity stake.
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Sh. Rajarshi Gupta to be the new OVL head
Government head hunter Public Enterprise Selection Board (PESB) chose Gupta, who is currently executive director at Oil and Natural Gas Corporation (ONGC), after interviewing six candidates, according to a PESB notification.
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Sh. Rajarshi Gupta was selected to head ONGC Videsh Ltd, the overseas investment arm of India’s top oil and gas producer. Government head hunter Public Enterprise Selection Board (PESB) chose Gupta, who is currently executive director at Oil and Natural Gas Corporation (ONGC), after interviewing six candidates, according to a PESB notification. He will succeed Alok Kumar Gupta, the current Managing Director of ONGC.
Webinars Infographics Ener Oil & Gas ONGC OVL Sh. Rajarshi Gupta people movement ONGC Videsh crude oil Videsh Ltd, who is slated to superannuate on June 30. The PESB recommendation will now be sent to the Appointments Committee of the Cabinet (ACC) headed by the Prime Minister, after obtaining clearance from anti-corruption bodies like CVC and CBI.
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The government set the target to raise share of natural gas in energy mix to 15% in 2030
The Minister of State for Petroleum and Natural Gas, Shri Rameswar Teli in a written reply to a question in the Lok Sabha today informed that the Government has set a target to raise the share of natural gas in the energy mix to 15% in 2030 from about 6.7% now.
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Various steps taken by the Government in this direction include expansion of the National Gas Grid Pipeline, expansion of the City Gas Distribution (CGD) network, setting up of Liquefied Natural Gas (LNG) Terminals, allocation of domestic gas to Compressed Natural Gas (Transport) / Piped Natural Gas (Domestic) CNG(T)/PNG(D) in no cut category, allowing marketing and pricing freedom to gas produced from high pressure/high temperature areas, deep water & ultra-deepwater and from coal seams, Sustainable Alternative Towards Affordable Transportation (SATAT) initiatives to promote Bio-CNG, etc.
As on 31.12.2021, PNGRB has authorized approximately 33,768 km of Natural Gas Pipeline Network across the country. The length of operational pipelines has increased from 16,368 km on 31.03.2019 to 20,334 km on 31.12.2021. With the aim to increase coverage of CGD networks in the country, PNGRB has authorized 268 GAs for the development of CGD networks in the country. Further, Letters of Intent have been issued for 21 GAs. Also, PNGRB has launched an 11A CGD bidding round for the development of CGD networks in 6 GAs (covering 27 districts). After that, the CGD network shall potentially cover 98% population and 88% geographical areas of the country.
The number of CNG stations established by various authorized entities has increased from 1,742 on 31.03.2019 to 3,878 on 31.01.2022. The pipelines being laid by the CGD entities have also increased from 1,61,992 inch km to 3,52,961 inch km on 31.01.2022.
https://www.psuconnect.in/news/govt-set-target-to-raise-share-of-natural-gas-in-energy-mix/31842
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Indian gas output jumps 13% in February
India’s natural gas production during February was 26.02bn m3, up 12.8% year/year, the government declared on March 24. Cumulative natural gas production during the 11 months of the 2021-2022 financial year was 31.13bn m3, up 19.8% yr/yr.
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State-run ONGC was the biggest producer. The company’s output from April-February was 15.82bn m3, down from 16.3bn m3 in the same period last year.
Natural gas production by private companies last month was 801mn m3, up from 489mn m3 in the previous year. Cumulative natural gas production by private entities during April-February was 9.62bn m3, up 161.6% yr/yr.
https://www.naturalgasworld.com/indian-gas-output-jumps-13-in-feb-97146
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Policy Matters/ Gas Pricing/ Others
Discounted LNG from Russia to cut costs of importers & users
The low Russian gas prices will allow Indian companies to ramp up inventories and cut losses caused by high spot prices over the last ten months or so. Higher spot LNG prices have led to a decline in India’s import of the commodity since January compared with
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the year-ago period. However, with the war in Ukraine and economic sanctions on Russia, the price of Russian natural gas has dropped by over $10 per million metric British thermal unit (mmBtu) or about 29%, presenting a big opportunity for LNG importers and firms across sectors which use natural gas as feedstock or fuel. LNG prices are ruling at $39 per mmBtu in Asia. As against this, spot rate at Petronet LNG ‘s Dahej terminal is $35 per mmBtu in India. The cost at Dahej terminal for exchange gas is low because there are various suppliers at different prices, reducing the average price.
As against this, the Russian gas will now cost Indian buyers around $25 per mmBtu. The low Russian gas prices will allow Indian companies to ramp up inventories and cut losses caused by high spot prices over the last ten months or so. LNG terminals in Dahej and Hazira in Gujarat are underutilised after imports declined by 10.6% on year in January 2022, and over 3.2% per year in 10 months since April 2021.
GAIL India, which is the largest importer of natural gas in the country already has a long-term contract with Russia for 2.75 million metric tonnes per annum (mmtpa), which it plans to raise to 3 mmtpa soon. India received its first gas cargo from Russia’s Yamal project in October 2021.
India’s LNG imports had fallen in January due to higher international prices and a rise in domestic production. LNG imports fell 10.8% over a year ago to 2,408 million standard cubic meters in January, according to data released by the Petroleum Planning & Analysis Cell. Excluding the 1,640-mmscm imports in the pandemic-marred April 2020, it’s the lowest in 32 months.
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Vedanta seeks minimum $19 for gas from the Gujarat block to cash in on surge in global energy prices
Billionaire Anil Agarwal’s Vedanta Ltd is seeking a minimum $19 price for natural gas produced from a field off Gujarat as it looks to cash in on the recent surge in global energy prices.
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The firm has called for bids for the sale of 0.25 million standard cubic meters/day of gas produced from CB/OS-2 block located in Suvali, Surat district of Gujarat. Bids have been sought based on the average monthly price of Brent crude oil and Platts’ West India Marker (WIM) for liquefied natural gas (LNG) shipments.
The sale price will be lower than Platts LNG WIM + 1.0 or a premium over 16.67% average Brent crude oil price. At the current trading price of $117.68 per barrel for Brent crude oil, the floor price comes to $19.6 per million British thermal units. To this, buyers will have to bid a premium. Platts WIM closed at $32.275 per mmBtu on March 21 and if this benchmark is considered, the selling price will be $33.275.
The floor price will however be not lower than the government-administered price for gas, which currently is $2.9 per mmBtu. While Vedanta holds 40% interest in the CB-OS/2 block, ONGC has 40%. The balance of 10% is held by Tata Ptrodyne Ltd. Hindustan Oil Exploration Company (HOEC) sold 0.3 mmscmd of gas to Gujarat State Petroleum Corp (GSPC) at a price of around 22% of Brent.
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PNG & CNG prices go up by Rs 1 per unit in Delhi-NCR; CNG too costs more
Indraprastha Gas Limited (IGL) has hiked the price of domestic Piped Natural Gas (PNG) in Delhi and the NCR by Rs 1 per standard cubic meter (SCM) to Rs 36.61 per unit. IGL also raised the price of Compressed Natural Gas (CNG) in Delhi by
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Rs 1 per kg taking the new price to Rs 59.01/Kg. The latest hike in the new CNG & PNG price came into effect from Thursday (March 24, 2022).
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LNG Use / LNG Development and Shipping
Indian LNG imports were down 1% in February
India’s LNG imports in February came in at 2.5bn m3 (about 1.83mn metric tons), down 0.5% year/year, the country’s oil and gas ministry’s Petroleum Planning and Analysis Cell (PPAC) website showed on March 24.
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During the 11 months of FY2021-22, the imports were 29.29bn m3, down 3% yr/yr. Analysts say the country’s LNG imports in FY2021-22 will be down due to high global prices. Rating agency ICRA expects Indian LNG imports to be down by about 5% in FY2021-22 compared with FY2020-21.
Meanwhile, LNG imports in February cost $1bn, up from $800mn in the same month last year. In the April-February period, the import bill was $10.9bn, up from $7bn in the same period last year, the PPAC data showed. In FY2020-21, the import bill was $7.4bn.
https://www.naturalgasworld.com/indian-lng-imports-down-1-in-feb-97126
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India’s Top Gas Importer Sees LNG Price Surge Spurring Long-Term Contracts
Surging liquefied natural gas (LNG) prices are pushing buyers to look at securing long-term contracts possibly with an option for a floor and ceiling price to hedge against extreme volatility. Asia spot LNG prices dropped to a record low of below $2 per million
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British thermal units (mmBtu) in May last year when coronavirus-induced lockdowns depressed gas demand. Earlier this month, they rocketed to a record high above $56 per mmBtu. Prices have pulled back to around $30 per mmBtu since, but remain nearly 500% up from last year.
Lower spot prices had hurt investment in gas production assets, leading to supply constraints when demand rebounded as the global economy recovered after the pandemic. Low prices also encouraged buyers to take advantage of spot prices. Global spot and short-term LNG contracts now account for over 40% of overall volumes, doubling in the last decade, also partly a result of Asian buyers hesitating to make long-term commitments amid energy transition uncertainties and growing supply liquidity.
Lng-term LNG is currently costing it $11-$12/million British thermal units compared to spot prices of around $40/mmBtu. Gas demand in India is set to rise as Prime Minister Narendra Modi has set a target to raise the share of gas in India’s energy mix to 15% by 2030 from 6.2% now.
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Electric Mobility/ Hydrogen/ Bio- Methane
CNG retailer Indraprastha Gas launches EV battery-swapping station ‘Energy Cafe’
CNG retailer Indraprastha Gas (IGL) has partnered with Pune-based electric vehicle manufacturer Kinetic Green to launch a battery-swapping station, called Energy Cafe. The facility will replace discharged batteries of two-and three-wheeler EVs
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with a fully charged one. Under the partnership, both these companies are looking to roll out a deep network of battery swapping stations, starting with the Delhi region.
Battery swapping as a concept is gaining popularity and momentum in India’s transition towards electric mobility. Under the partnership, both these companies are looking to roll out a deep network of battery swapping stations, starting with the Delhi region.
While IGL will provide the infrastructure for setting up of these swapping stations, Kinetic Green will play the role of the technology partner, provide EV Users can install Energy Cafe Mobile App on their phones to locate the nearest battery-swapping stations, book batteries from available charged batteries, pay through a digital payment gateway and swap it with a discharged battery at any of the IGL gas stations. They will have to pay for only the amount of charge they consume.
The technology addresses some of the critical concerns related to range anxiety and EV charging. Using this concept, the cost of the EVs can be almost halved and brought, not just at par, but below the price of internal combustion engine counterparts, the company noted. Further, range anxiety is eliminated as drivers can always swap their discharged battery for a charged one just like they fill fuel in their traditional ICE vehicles easily swapped manually.
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Adani Total Gas enters the electric mobility infrastructure sector
Adani Total Gas Ltd, a joint venture of Adani Group and French energy giant TotalEnergies SE, has forayed into the electric mobility infrastructure sector by launching its first EV charging station in Ahmedabad.
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The charging station is located at ATGL’s CNG station at Maninagar in Ahmedabad. ATGL is India’s largest private CNG and piped cooking gas distributor.
The company aims to expand its network by setting up 1,500 EV charging stations across the country and has kept an expansion plan ready to move beyond 1,500 EVCS, based on the demand generation and momentum building of the EV ecosystem in the country. It has the strategic fit to venture into electric mobility and capture a significant share of the rapidly growing EV market.
ATGL also draws its strength from the Adani Group’s inherent capacity to generate renewable power, and can further leverage group level synergies for sourcing green power. The firm has the authorisation to retail CNG to automobiles and piped natural gas to household kitchens in 19 geographical areas.
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Japan’s Suzuki plans to invest $1.3 in India’s EV sector
Japanese multinational automobile company Suzuki has announced that it plans to invest an estimated 150 billion yen ($1.26 billion) to produce electric vehicles as well as batteries in India, Reuters reported.
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This comes as part of a bigger plan to be announced by Japanese Prime Minister Fumio Kishida to inject a total of 5 trillion yen into India over the coming five years.
https://www.arabnews.com/node/2046191/business-economy
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INTERNATIONAL NEWS
Natural Gas / Transnational Pipelines/ Others
UK: Energy giant ‘actively’ eyes plans to reopen Middlesbrough gas terminal
Energy trading giant Trafigura is actively looking at reopening a gas terminal in the north-east of England as the UK and Europe try to reduce their reliance on Russian energy. The Swiss company has had the option for years to reopen the Teesside site, but was waiting for the right market window.
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After gas prices soared in recent months, the company confirmed to the PA news agency that the plans are being considered at the moment. The site started to bring gas into the UK in 2007, but its previous owner shut it down in 2015, saying it had got to the end of its commercially viable life.
Trafigura bought the rights to the site two years later. The plan could open another route for gas from the Middle East or the US into the UK, and onwards to Europe. At its height the site could bring as much as 600 million cubic feet of gas a day into the country.
This could help reduce the need for Russian natural gas, which currently heats homes and keeps heavy industry running across the continent.
The UK currently has three such sites, a significant proportion of the total across Europe. A fourth active site would help ship more gas into the UK, which could be used here or piped to mainland Europe. Spain has the highest number of LNG terminals in Europe but the country has limited pipeline connections with the rest of Europe, so it is difficult to get the gas that arrives there to Germany, which uses huge quantities of Russian gas.
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Natural gas reserves in Africa, by main countries 2021
As of 2021, Nigeria concentrated most of the natural gas reserves in Africa. The country had more than 200 trillion cubic feet of natural gas reserves. Algeria and Mozambique followed, with 159 trillion cubic feet and 100 trillion cubic feet, respectively.
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In the whole continent, the reserves amounted to over 625 trillion cubic feet.
https://www.statista.com/statistics/1197585/natural-gas-reserves-in-africa-by-main-countries/
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Bangladesh: CNG filling stations to remain closed for 6 hours during Ramadan
CNG filling stations across the country will remain closed from 5pm to 11pm every day during the month of Ramadan, instead of 6 pm to 11 pm.
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According to officials, the current gas crisis forced the authorities concerned to take the decision to keep the filling stations shut for six hours from the first day of Ramadan. The distribution companies will appoint vigilance teams to monitor whether the instruction is followed.
On September 16 last year, the government had directed the CNG filling station owners to keep their pumps shut for 4 hours from 6 pm to 10 pm every day until further order against the nagging gas crisis across the country. Later, the government issued instruction to the CNG filling stations to increase their non-operational time by one hour from March 1. In recent months, the country has been importing LNG at high prices after failing to keep gas supply in households and industries normal due to a huge gap between demand and supply.
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Natural Gas / LNG Utilization
Italy needs at least 3 years to replace Russian gas imports, minister says
Italy will need at least three years to completely replace its gas imports from Russia with other energy sources, stated by Ecological Transition Minister Roberto Cingolani on Wednesday, March 16.
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Rome imports around 30 billion cubic metres (bcm) of gas from Russia every year, some 40% of its total gas imports and is looking to diversify its energy supplies in response to Moscow’s invasion of Ukraine. Cingolani reported the upper house Senate that completely replacing Russian gas was “possible over a minimum time horizon of three years”. But he said 20 bcm per year could be replaced in the “near to medium term” by a raft of measures including raising gas imports from Algeria by 9 bcm and raising coal and oil-fueled power production to replace 3-4 bcm of gas. Other measures included increasing power imports from northern Europe as well as using around 6 bcm more liquefied natural gas (LNG).
Longer-term measures to try and plug the gap included doubling capacity on the TAP pipeline carrying Azeri gas, rolling out 8 gigawatts per year of new renewable power capacity and doubling domestic gas production. Like other EU member states, Italy has been struggling to curb surging energy costs. The government aims to approve a new package to help consumers and firms cope. Cingolani told parliament Rome planned to use increased VAT revenues from higher energy bills to cut excise duties on petrol and diesel.
https://www.metro.us/italy-needs-at-least/
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Japanese LNG imports were down 12% and China 9% in Jan-Feb
Japanese LNG imports in February came in at 7.1mn metric tons, down 11.9% year/year, according to the data published by the country’s finance ministry on March 16. The imports were up 4.7% month/month,
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however. Chinese LNG imports in the first two months of this year came in at 12.68mn metric tons, down 8.7% year/year. Imports in January were down 6.7% yr/yr to 7.81mn mt, while February imports were down 11.8% yr/yr to 4.86mn mt. The pipeline gas imports in January-February were 7.18mn mt, up 6.3% yr/yr.
https://www.naturalgasworld.com/
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Bangladesh to get more LNG supply in summer
The world’s leading LNG (liquefied natural gas) producer Qatargas has agreed to re-schedule its LNG cargo-delivery plan for Bangladesh to boost the fuel supplies during summer by slashing winter deliveries.
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Bangladesh sought to ramp up LNG deliveries from the long-term Qatari supplier during summer season, as the country was struggling to arrange LNG from spot market due to volatility in international energy prices over the Russia-Ukraine war.
The state-run Petrobangla did not find any bid from global LNG suppliers to purchase LNG from spot market for late March delivery due to market volatility, a senior Petrobangla official told the FE on Wednesday. Qatargas’s decision to re-schedule LNG cargo deliveries came as an outcome of the Petrobangla’s recent negotiation with the firm.
It would help ease Bangladesh’s growing dependency on purchase of LNG from spot market during high summer demand. The Middle East’s LNG giant, however, did not agree to the Petrobangla’s proposal to supply Bangladesh an additional 1.0 million tonnes per year (MTPA) of LNG.
https://www.hellenicshippingnews.com/bangladesh-to-get-more-lng-supply-in-summer/
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Jordan’s EMRC plans to utilise compressed natural gas from Risha field
The Energy and Minerals Regulatory Commission (EMRC) intends to utilise compressed natural gas from Risha gas field, according to the director of the Natural Gas Directorate, Abd Al Salam Al Zyoud.
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Zyoud told on Thursday, March 17, that the production capacity of the Risha gas field has increased from 16 million cubic feet to 30 million cubic feet daily since its establishment by the Ministry of Energy and Minerals, noting that development work is underway to increase production and is expected to reach 50 million cubic feet.
Several companies have applied to the EMRC to obtain the necessary licences to use compressed natural gas from the Risha field for industries, to save energy costs on the industrial sector, support investment in Jordan and contribute to increasing job opportunities. The EMRC has prepared the necessary legislation in order to allow and invest in the field of natural gas in all industries, such as iron and steel factories, as well as hotels, restaurants, and in the future reaching homes.
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Germany inks a natural gas deal with Qatar, dealing a blow to Russia
On Sunday, March 20, Germany’s Federal Minister for Economic Affairs and Climate Action, Robert Habeck, held talks with Qatar’s Emir, Sheikh Tamim bin Hamad al-Thani.
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The two countries “would re-engage and progress discussions on long-term LNG supplies,” QatarEnergy said in a statement, according to Reuters. While Qatar did not confirm that an agreement had been reached, a German spokesperson told the news organization that the two countries had reached an agreement.
Germany has taken other steps in recent weeks to reduce its reliance on Russian energy, including the signing of a deal with Qatar.
Lаst month, Germаn Chаncellor Olаf Scholz аnnounced thаt the country would hаlt certificаtion of the Nord Streаm 2 pipeline аfter Russiаn President Vlаdimir Putin аnnounced thаt Moscow would recognize the sovereignty of Ukrаine’s self-proclаimed “people’s republics” of Donetsk аnd Luhаnsk—а move Putin mаde shortly before invаding the country.
The pipeline is estimаted to be worth $2.7 billion to the Russiаn economy аnd $1.8 billion to the Germаn economy per yeаr. Following Scholz’s withdrаwаl from the pipeline project, Germаny’s Federаl Minister for Economic Affаirs аnd Climаte Action, Joаchim Hаbeck, begаn looking into wаys to reduce Germаny’s reliаnce on Russiа.
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Malaysia’s Pegaga field starts feeding gas into Petronas LNG complex
Malaysia’s state energy firm Petronas said on Monday the Pegaga field off the coast of Sarawak, Malaysia, has started feeding gas into the liquefied natural gas (LNG) complex in Bintulu.
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The Pegaga field in Block SK320 has facilities that can produce 550 million standard cubic feet per day of gas evacuated through a new subsea pipeline tied into an existing offshore gas pipeline network.
Block SK320 is operated by Mubadala Development Company Oil and Gas Limited (Mubadala Petroleum) with a 55per cent participating interest, with partners Petronas Carigali Sdn. Bhd. and Sarawak Shell Berhad, holding 25per cent and 20per cent, respectively.
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TAP Transports Its First 10 Bcm of Natural Gas from Azerbaijan to Europe
The Trans Adriatic Pipeline AG on March 17 announced that it had transported a total of 10 billion cubic meters of natural gas from Azerbaijan to Europe through the Kipoi interconnection point located at the Greek-Turkish border.
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It is also the same point where TAP connects to the Trans Anatolian Pipeline (TANAP). Currently, 8.5 out of the 10 bcm have been delivered to Italy.
TAP Head of Commercial, Marija Savova, the company’s delivery of the first 10bcm of natural gas to Europe will reinforce TAP’s role as a reliable transport that can enormously contribute to the security of gas suppliers to Europe enhance the gas market’s liquidity.
https://www.pipeline-journal.net/news/tap-transports-its-first-10-bcm-natural-gas-azerbaijan-europe
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USA: Venture Global inks two more LNG sales deals
US LNG developer Venture Global had executed two new 20-year sales and purchase agreements (SPAs) with New Fortress Energy for 1mn mt/yr from the Plaquemines LNG terminal and 1mn mt/yr from the proposed CP2 LNG project, both in Louisiana on March 16.
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LNG under both SPAs will be supplied on a free-on-board basis, New Fortress said separately. It is the first SPA for the 20mn mt/yr CP2 LNG project, which Venture Global plans to build next to its operating Calcasieu Pass terminal. Applications were filed for the project late last year with the Federal Energy Regulatory Commission, and pending approval, construction could begin in 2023.
https://www.naturalgasworld.com/venture-global-inks-two-more-lng-sales-deals-96930
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Bangladesh govt. to buy LNG at lower price
The government on Wednesday, March 30, decided to purchase 33.60 lakh MMBTU liquefied natural gas for $35 each unit, one dollar less than the previous purchase deal amid volatility in the global energy price following Russia’s invasion of Ukraine.
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The per MMBTU (Metric Million British Thermal Unit) price of the previous deal approved on March 10 was $36, said cabinet division additional secretary Zillur Rahman Chowdhury after a virtual meeting of the cabinet committee on government purchases.
Presided by finance minister AHM Mustafa Kamal, the cabinet committee approved a Petrobangla proposal to buy the current supply of LNG from M/S. Vitol Asia Pte Ltd, Singapore.
https://www.newagebd.net/article/166801/govt-to-buy-lng-at-lower-price
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Global LNG Development
Iran plans to propel LNG exports amid Russian-Ukraine war
Iran is planning to restore schemes to enter the LNG market and propel exports. This comes as Europe is trying to reduce dependency on Russia and could therefore potentially end sanctions on the Middle Eastern country.
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Accordingly, government-owned natural oil and gas producer National Iranian Oil Co. has invited investors to submit proposals for building small LNG units.
Europe’s benchmark gas futures hit a record 345 euros a megawatt hour. The continent is on the search for alternative gas sources.
Iran has the second biggest gas reserves globally; however, entering the LNG market could be somewhat difficult as the country will need multi-billion-dollar facilities that can turn gas into a liquified form for shipment worldwide.
Eight previous Iranian LNG export schemes were hindered due to sanctions or capital constraints. The sanctions on the Islamic Republic are set to ease if the 2015 nuclear deal is restored.
https://www.hellenicshippingnews.com/iran-plans-to-propel-lng-exports-amid-russian-ukraine-war/
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Samsung, Lilama to build $1bn Vietnamese LNG-to-Power project
South Korea’s Samsung and Vietnamese contractor Lilama Corp have been awarded a $1bn engineering procurement and construction (EPC) contract for a 1,500-MW LNG-to-power project in Vietnam, Lilama said March 14.
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Samsung and Lilama will build the Nhon Trach 3 and 4 gas-turbine units in the Dong Nai province, in southeast Vietnam. With each turbine due to offer 750 MW of installed capacity, the developers expect it should take 36 months to deliver the entire project.
General Electric is the main equipment supplier for Nhon Trach 3 and 4. The project is aimed at satisfying “large areas of high load power” to Ho Chi Minh City and other areas of Vietnam’s southern region. It will be Vietnam’s first regasified LNG-to-power plant once it launches, and will play a role in Hanoi’s 2050 net-zero carbon pledge to phase down coal and oil-based electricity.
Vietnam’s government said on October 8 that another 1,500 MW LNG-to-power facility is being built in Vietnam’s northern Quang Tri province. Due to launch in 2026-27, the project will receive imports via a 1.5mn metric tons/year LNG receiving and regasification terminal. Vietnamese industrial conglomerate T&T Group is putting up 40% of investment at Quang Tri, with the remainder sourced from Hanwha Energy Corp., Korea Southern Power Corp. and Korea Gas Corp.
https://www.naturalgasworld.com/vietnamese-lng-to-power-plants-leave-the-starting-block-96900
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HAM puts into operation new LNG station in northwestern Spain
HAM Group has opened an LNG service station in Salamanca, a few minutes from the N-620 and the A-62, also known as the Castilla highway, which runs from Burgos to Fuentes de Oñoro (Salamanca), on the border with Portugal, forming part of the European route E-80.
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The HAM Salamanca station, designed, built and commissioned by HAM Criogénica, has a 60m3 tank, with a submerged pump for LNG and two innovative LNG refueling points for trucks and heavy vehicles. In addition, it will offer CNG refueling soon. Opening hours are 24/7 throughout the year, it is freely accessible and payments can be made easily from the payment terminal, which accepts all types of debit and credit cards and the HAM card for professionals.
The new facility is remotely monitored to guarantee its correct operation and offers the possibility of contacting the 24-hour Technical Assistance Service to resolve any incident. It also has an automatic extinguishing system and video surveillance. With this new opening, HAM’s natural gas refueling network continues to grow, with more than 90 stations, on the main routes in Spain and Europe.
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Australia: ExxonMobil (XOM) to Invest $291M for Gippsland Gas Output Hike
Exxon Mobil Corporation’s XOM Australia-based subsidiary, Esso Australia Pty Ltd., reached a final investment decision to increase natural gas production from the Gippsland Basin Kipper field in southeastern Australia.
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The move is part of ExxonMobil’s attempt to address the potential shortages in the supply of domestic natural gas. The Gippsland Basin Kipper field is operated by the Gippsland Basin Joint Venture (JV). Notably, Esso Australia operates the JV, with a 50% ownership interest.
The Gippsland Basin Kipper field is estimated to produce 30 petajoules (PJ) in 2023. ExxonMobil will invest $291 million to produce an additional 200 PJ of natural gas in the next five years. The company did not provide any details on the type of field development activities that will take place.
The Gippsland Basin has been a major supplier to Australia’s east coast domestic market. However, Australian regulators have cautioned that eastern Australia could see a natural gas shortage from 2026, as the maturing gas fields in the basin are drying up. This is driving the demand for liquefied natural gas (LNG) imports. Additional production from the Gippsland Basin will be developed ahead of five proposed LNG import terminals, looking to serve the same market. One of the terminals has started preliminary construction activities.
ExxonMobil’s investment to increase Gippsland gas production will ensure reliable and affordable gas supply to Australia homes and businesses. The company is proceeding with funding decisions to commence production from the Turrum field offshore Victoria. There is an adequate amount of gas remaining there and ExxonMobil is working to unlock its full value.
https://www.nasdaq.com/articles/exxonmobil-xom-to-invest-%24291m-for-gippsland-gas-output-hike
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Indonesian Tycoon’s Firm to spend $500 Million on Canada LNG
An energy company backed by Indonesian tycoon Sukanto Tanoto plans to spend $500 million this year on a long-planned liquefied natural gas project in Canada, the clearest signal yet that it may move ahead with an LNG export facility on the country’s west coast.
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Woodfibre LNG, backed by Tanoto’s Pacific Energy Corp., has yet to formally announce an investment decision. But Woodfibre President Christine Kennedy gave the spending details to local government officials in Squamish, British Columbia, on Tuesday. The $500 million figure is 31% of the expected $1.6 billion total cost of the project.
Woodfibre’s plan follows Shell Plc’s decision to build the much-larger C$40 billion ($31.8 billion) LNG Canada project in Kitimat, British Columbia, which is 60% complete and scheduled to start operating by the middle of the decade. Woodfibre is licensed to export about 2.1 million metric tons a year of gas chilled to a liquid so it can be shipped to faraway destinations on special tankers.
The decision to boost spending comes as European countries scramble to find alternatives to Russian gas and cut the continent’s dependence on the energy-producing giant following Vladimir Putin’s invasion of Ukraine.
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Estonia considering helping to build an LNG terminal
Feeling the need to ensure Estonian energy independence, the Estonian government has stated to look into the options of building or investing in the construction of a liquefied natural gas (LNG) terminal, Estonian public broadcaster ERR reports.
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At the Estonian electricity and gas grid operator Elering, its CEO Taavi Veskimägi, has said that an LNG terminal can only be built once Estonia has decided to stop importing Russian natural gas, which has not happened.
Recently, the EU decided to set a deadline of 2027 for achieving independence from Russian energy sources. Estonian Minister of Economic Affairs and Infrastructure Taavi Aas has cautioned that Russia may respond by ending the sale of natural gas to Europe. Aas has also submitted a proposal to the Estonian government in mid-March suggesting building a temporary LNG terminal in the northern port town of Paldiski. «This area is already essentially terminal-ready as such,» Aas highlighted, noting that fuel retail chain Alexela had already completed a significant amount of preliminary work in that regard. The firm has announced that it has offered the Estonian government a specific way of fully divesting from Russian gas for the 2022-2023 heating season and additionally allowing Finland to join the boycott, ERR reports.
https://bnn-news.com/estonia-considering-helping-to-build-lng-terminal-233340
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LNG as a Marine Fuel/Shipping
U.S. Gulf of Mexico brimming with LNG tankers as exports rise
A near record number of liquefied natural gas (LNG) tankers on Wednesday, March 16, continued to jam the U.S. Gulf of Mexico while loading or waiting to load, according to data from Refinitiv Eikon.
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LNG export terminals are running near full capacity with U.S. exports in high demand amid Russia’s invasion of Ukraine and Europe’s drive to rebuild shrunken natural gas stocks. Russia calls its actions in Ukraine a “special operation.”
About 27 ships were on the way or near LNG terminals along the U.S. Gulf Coast on Wednesday, according to the data. There were eight LNG tankers near the ports of Freeport and Galveston, Texas, on Wednesday. Among the vessels waiting to load were the Global Sea Spirit and Flex Aurora, which each arrived more than a week ago, data showed.
The number of ships waiting in the Gulf of Mexico in part reflects declining U.S. LNG shipments to Asia. The shorter distance to Europe means the vessels can cross the Atlantic and return quicker for re-loading, said Edward Watson, an LNG shipbroker at Clarksons Plc.
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Thailand: B Grimm to import LNG
Thai power developer B Grimm will use PTT LNG’s terminal to import LNG after a terminal use agreement was signed on March 17, for the receiving and regasification facility in Map Ta Phut, Rayong. The deal marks the first LNG procurement by a private sector company following the liberalisation of the country’s natural gas sector
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B Grimm LNG, a subsidiary of B Grimm, was granted an import licence by Thailand’s Energy Regulatory Commission (ERC) in May 2020. It then negotiated LNG purchase contracts with suppliers and the first commercial shipment is expected to arrive by early 2023. B Grimm is one of the seven LNG importers to the country, a sector previously monopolised by PTT.
https://www.pfie.com/story/3289952/thailand-b-grimm-to-import-lng-zny6zkyjbd
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Armada carrying US LNG heads to Europe
The invasion of Ukraine is pushing a lot more US natural gas toward Europe. Fallout from Russia’s invasion of Ukraine is being felt across all shipping markets, but none more so than liquefied natural gas shipping.
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Consequences to this shipping segment have been immediate, sweeping and possibly permanent. Traditionally, about 30% of U.S. LNG exports has gone to Europe, but the destination mix has dramatically changed. Over the past two months, around 70% of U.S. LNG is going to Europe, according to Evercore ISI analyst Sean Morgan.
Ship-position data from MarineTraffic shows an armada of ships full of U.S. LNG now en route to Europe, with only a small minority of U.S. cargoes destined for Asia. The European plan which assumes continued access to Russian supply during the transition calls for 70% of natural gas imports from Russia to be replaced and for the EU to increase its LNG imports by 4.8 billion cubic feet (Bcf) per day over the next 12 months. Morgan pointed out that this is the equivalent of over a third of America’s total export capacity.
U.S. LNG exports have much more destination flexibility than exports from Qatar and Australia, making America the best source of immediate replacement supply for Europe. Even so, American volumes won’t suffice if Europe loses access to the Russian pipeline supply. U.S. LNG exports are hitting new records each month, with terminals delivering volumes at or beyond their nameplate capacities. Exports reached 353.5 Bcf in January. RBN Energy predicted that exports will post another record this month, given a new export train at Cheniere’s Sabine Pass facility and the startup of the new Calcasieu Pass export plant.
https://www.freightwaves.com/news/armada-carrying-us-lng-heads-to-europe-but-it-wont-be-enough
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Greece: Euroseas orders LNG-ready feeder ship trio
Greek ship owner and operator Euroseas has ordered three 1,800 TEU liquefied natural gas- (LNG) ready feeder containerships in South Korea. On 21 March, Euroseas had signed a contract for the construction of the fuel-efficient vessels with Hyundai Mipo Dockyard (HMD).
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The newbuilds are scheduled to be delivered during the first half of 2024 — one in the first and the remaining two in the second quarter of the year. The total consideration for the construction of the three vessels is approximately $102 million which the company intends to finance with a combination of debt and equity. The latest order comes only a month after Euroseas placed an order for two 2,800 TEU Eco design fuel-efficient boxships at HMD. The units are sisterships of the two container ships ordered by Euroseas in June 2021.
Euroseas currently has a fleet of 16 vessels comprising 10 feeder and 6 intermediate containerships that have a cargo capacity of 50,371 TEU.
https://www.offshore-energy.biz/euroseas-orders-lng-ready-feeder-ship-trio/
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Technological Development for Cleaner and Greener Environment Hydrogen & Bio-Methane
Duque unveils the first car fuelled by green hydrogen produced in Colombia, SA
Six months after the announcement of the Hydrogen Roadmap, Colombia launched the first electrolyzer in the country, located in Ecopetrol’s Cartagena Refinery, and which strengthens the energy transition developed by
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the national government. There, President Iván Duque refuel with this ecological energy and drove a Mirai vehicle, supplied by Toyota. The refueling station was provided by Linde. The country’s first project that injects hydrogen into the natural gas network was also put into operation by Promigas.
Today the first car with green hydrogen produced by Ecopetrol is rolling in the most modern refinery in Latin America. The most convincing fact is that the country ratifies that “on March 18, Ecopetrol has just installed this first electrolyzer.
The president also affirmed that Colombia will be a power in the production and export of green hydrogen. In addition, he commented that the difficult situation in Europe and the world due to Russia’s invasion of Ukraine also motivates the adoption of alternatives. “Europe will not be able to continue to glimpse its future depending on gas from Russia. And they know that they have to diversify and look for reliable, safe sources, but above all green, clean in terms of emissions; and that also allow them to generate the transition,” he concluded.
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Brazil launches measures to produce biomethane to power heavy vehicles
President Jair Bolsonaro attended the launch ceremony of the incentive measures aimed at the production and sustainable use of biomethane. The renewable fuel is obtained by purifying biogas, and may replace natural gas, diesel, and
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gasoline. After an interview in the garden of the Alvorada presidential residence, Bolsonaro drove a New Holland biomethane-powered tractor to the Planato Palace, reported Agencia Brasil.
Brazil’s Environment Minister Joaquim Leite signed a decree creating the National Program for the Reduction of Methane Emissions, also known as Metano Zero (Zero Methane), which should help make progress in the generation and use of biomethane derived from urban and rural waste. Minister of Mines and Energy Bento Albuquerque signed a decree including investments in biomethane under the country’s Special Regime of Incentives for Infrastructure Development (REIDI), and exempting new projects from PIS/Cofins taxes for the acquisition of machinery, construction materials, and equipment.
According to the federal government, the inclusion of biomethane should enable the construction of new plants producing the fuel, increasing supply and the installation of green corridors for heavy vehicles, impacting the reduction of greenhouse gas emissions. The total investment planned is upwards of BRL 7 billion, generating at least 6,500 jobs in the construction and operation of the new units. The goal is to build 25 new plants across six states.
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