NGS’ NG/LNG SNAPSHOT March 16-31, 2025
National News Internatonal News
NATIONAL NEWS
City Gas Distribution & Auto LPG
EAC nod for Vettuvankeni-Nettukuppam natural gas pipeline likely this week
CHENNAI: Piped gas will soon fuel more households in Chennai as the Expert Appraisal Committee (EAC) of the Ministry of Environment, Forest and Climate Change is likely to grant Coastal Regulation Zone (CRZ) clearance for the proposed natural gas pipeline project in Chennai this week. The EAC is scheduled to discuss the proposal submitted by Torrent Gas Chennai Pvt Ltd, the implementing agency, on Thursday.
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The proposal will be taken up by the EAC as the Tamil Nadu State Coastal Zone Management Authority (TNSCZMA) has already approved the project and recommended the proposal to the Ministry. Based on the EAC’s deliberation, the Ministry will issue CRZ clearance.
The underground natural gas pipeline, which will be implemented at a cost of Rs 5,000 crore will connect Vettuvankeni and Nettukuppam through Neelankarai, Kottivakkam, Tiruvanmiyur, Adayar, Chepauk, Parry’s Corner, Royapuram, Tondiarpet, Tiruvottiyur, and Ennore. Of the total 466 km of pipeline, about 260 km falls under the coastal regulation zone.
Once implemented, the pipeline will carry piped natural gas (PNG) to households, villages, industries and commercial establishments.
“Increasing the share of natural gas in the energy mix to 15 per cent is the topmost priority for the Government of India. It will help India become less reliant on crude oil imports by substituting the use of oil products in industrial and residential applications. Led by impetus from the Government of India and the state governments, natural gas is steadily emerging as the fuel of choice,” the proposal said.
The project proponent has informed the government that the pipelines will be laid parallel to existing roads and frequent patrolling will be done to ensure the integrity of the pipelines. Moreover, the CNG station will have a re and gas detection system, CO2 ooding system, and portable re extinguishers to protect the pipeline system and CNG stations.
Granting consent to the project, the TNSCZMA has mandated the project proponent to formulate and implement plans for the conservation and maintenance of the mangroves in the vicinity of the project apart from regularly updating and sharing the pipeline network map with the Highways Department, Water Resources Department, Chennai Metro Rail Ltd, Chennai Metropolitan Water Supply and Sewerage Board, Greater Chennai Corporation and others to facilitate coordination and avoid conicts with other infrastructure projects.
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IRM Energy targets 150 CNG stations by FY26 to strengthen presence
Manoj Kumar Sharma, CEO of IRM Energy expects 10-12% volume growth in FY25 and aims for over 20% growth in FY26 due to better sourcing visibility.IRM Energy Ltd (IRMEL), a prominent city gas distribution (CGD) company, is gearing up for ambitious expansion, aiming to boost its network of CNG stations from 105 to 150 by the end of FY26. Highlighting this growth trajectory, Manoj Kumar Sharma, CEO of IRM Energy, remarked, “We have not only crossed 100; we have reached 105 now. Next year, we are trying to gain a growth of 50% more over whatever we are doing now. We expect that around 150 we will be able to reach next year; that will be good growth as far as CNG stations are coming.”
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On March 26, IRM Energy announced that it has successfully executed a long-term regasified liquefied natural gas (RLNG) purchase agreement with Shell Energy India Pvt. Ltd. for a five-year period.
Edited excerpts:
Q: Take us through the contours of this particular agreement. What kind of expenditure will this entail, and what is the incremental revenue potential arising from it?
This Shell agreement primarily focuses on securing energy supply for the future. The CGD sector has been receiving progressively reduced allocations of APM gases. Therefore, in this context, to ensure sustained growth, our focus is now on RLNG. This agreement reflects the efforts we’ve undertaken by partnering with Shell Energy.
Through this agreement, we will be able to cater effectively to our industrial and commercial customers. Moreover, for our piped natural gas (PNG) and compressed natural gas (CNG) demand, we will continue to monitor governmental moves regarding allocations. Additionally, we plan to forge further arrangements to ensure supply continuity moving forward.
We are at an advanced stage of finalising another long-term, five-year agreement with one of the renowned suppliers. With this agreement in place, up to 2029-30, we will be strategically positioned to secure our sourcing portfolio to a substantial extent.
Q: If you could tell us who you are in conversations with, if you are at liberty to disclose that. Additionally, when do you expect the long-term agreement you just mentioned to be completed? Regarding the Shell agreement, when do you expect supplies to commence?
Supplies from Shell will commence shortly, starting on 1 April 2025. We have planned our demand and supply positions in such a way that, from 1 April 2025 to 31 March 2030, we will be able to sustain supply operations effectively.
Regarding the other supply sourcing, I can assure you that in a couple of days—perhaps by 31 March—you will hear an official announcement from us.
Q: As we approach the end of 2024-25, where do you foresee concluding this fiscal year in terms of volumes for both the PNG and CNG segments? Could you shed light on the impact reduced gas allocation from APM has had on your volumes?
Gas allocation has declined from approximately 80 levels to around 50 levels. Looking ahead, we do not anticipate significant support in terms of domestic gas sourcing. Despite this, we are striving to achieve growth targets for both PNG and CNG. While this year’s reduced allocations will have some impact, it is not expected to be overly detrimental.
Last year, we achieved 19% growth in the CNG segment, and this year we estimate a growth rate of approximately 10–12%. Overall, across PNG, CNG, domestic, and industrial segments, while last year was a negative one in terms of growth, this year we are confident of achieving around 12% growth.
Q: When you say this year, you mean 2025-26 is that accurate?
No, 2024-25 (FY25) estimation I am sharing with you. Next year also, we have an ambitious target. Since the visibility of sourcing is coming up and some domestic sources are also very much visible, we will be targeting around 20% plus growth level year-to-year.
Q: How are things shaping up on the volume front on the ground? In the quarter, you just announced your 100th CNG station as well. What is the expansion pipeline you are considering by the end of 2025-26? Would you aim to double that count?
Not exactly double. As of now, we have not only crossed the milestone of 100 stations but have reached 105. Next year, we aim to achieve growth of at least 50% over our current network. We expect to reach approximately 150 CNG stations by the end of next year, which would mark significant growth in this segment.
Q: Could you provide a range for the guidance on where you will end in terms of EBITDA per SCM for 2024-25, and what is your target for 2025-26? Additionally, for 2025-26, will there be any payment of licence fees to the promoters? The street perceived this as a negative surprise a few quarters ago. Will it persist, or will that overhang be resolved?
Discussions with the promoters regarding this matter are ongoing. While I am not privy to all the details of the licence fee deliberations, I can assure you that, whether with or without the licence fee, we are confident about delivering significantly improved results from 2025-26 onwards. Our focus remains firmly on increasing volumes, enhancing margins, and improving operational efficiency.
IRM Energy’s current market capitalisation is ₹1,140.84 crore. The stock is currently trading at ₹276 as of 3:30 pm on the NSE and has declined 42% over the last year.
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Tata Steel replaces furnace oil with PNG in FAP plant
The steel major had signed a Memorandum of Understanding (MoU) with Bharat Petroleum Corporation Limited (BPCL) for long-term supply of piped natural gas.Jamshedpur: Private steel major Tata Steel has replaced the use of furnace oil with Piped Natural Gas (PNG) at its Ferro Alloys Plant (FAP) in Jajpur district of Odisha, a company statement said here on Thursday. The steel major had signed a Memorandum of Understanding (MoU) with Bharat Petroleum Corporation Limited (BPCL) for long-term supply of piped natural gas.
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As per the MoU, BPCL will supply the agreed quantity of natural gas through its pipeline to the ferro alloys plant. The transition will substantially reduce the plant’s carbon footprint and lower greenhouse gas emissions.
The sustainability initiative will help the company significantly reduce its carbon footprint and contribute to India’s journey towards a greener industrial future.
The plant, operating under the Ferro Alloys and Minerals Division (FAMD) of Tata Steel, has installed a PNG facility and will use the cleaner fuel for preheating the chrome ore that is used for producing chrome ore briquette, the statement stated.
Inaugurating the PNG facility, Pankaj Satija, Executive-In-charge, FAMD, said, “Natural gas burns cleaner than furnace oil, producing significantly less harmful emissions especially in the context of high sulphur content of furnace oil. By replacing furnace oil with PNG, we aim to contribute to the nation’s effort in mitigating the effects of global warming and moving towards options of lower carbon footprint.”
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Odisha CNG vehicles on road up by 463% in 4yrs, CNG stations set to double only by 2031!
Bhubaneswar: With CNG fuelled vehicles slowly outnumbering the petrol 3-wheeler vehicles in the country, the trend in Odisha seems not that enthusiastic.As per Odisha Transport Department data, the State figures along with states like Delhi, Haryana and Gujarat in the country that have witnessed a significant reduction in petrol consumption by the 3-wheelers.In Odisha, though 3 wheelers run by diesel is still more than CNG run three-wheelers, the sale of CNG vehicles in the State have grown by a whopping 463% in last 4 –years.
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According to the data available, the CNG vehicle count in the State was mere 1,270 in year 2021-22, the number stood higher at 7,152 in 2024-25.
2021-22: 1,270
2022-23: 3,148
2023-24: 4,935
2024-25: 7,152
Data of vehicle registration, however, shows with the advent electric vehicles, the rate of growth of four-wheeler electric vehicles have been outstanding in the State vis-a-vis CNG vehicles registered.
According to State Transport Department data, CNG three-wheelers in Odisha accounts for only 11% of total three-wheelers registered in the State over the years.
2025 VEHICLES REGISTRATION IN ODISHA
As per the data with the State Transport department, the first three months of 2025, a total of 1,73,173 vehicles have been registered. The fuel wise data shows petro-fuelled vehicles still leading the chart. This high petrol proportion is due to dominance of petrol-run 2-wheelers (1.38583 lakh).
Petrol fuel vehicles: 1.33647 lakh
Petrol/CNG: 1.287K
Diesel: 17.794K
CNG: 544
Electric Vehicles: 8.79K (this first rise is due to two-wheeler + 4 wheeler)
In the year 2024, the State saw registration of over 8.11 lakh vehicles. CNG vehicles (2.625K) share stood at mere 0.32% as against the share of 2.2% by the Electric Vehicles.
WHY CNG VEHICLE SALE LOW?
Earlier, a few models of CNG vehicles were available that resulted in slower expansions. Manufacturers have not given greater attention on manufacturing CNG fuelled vehicles thank to limited availability of CNG stations in the country, including Odisha.
Also, earlier the CNG prices were high.
And, now, with the advent of EV (electric vehicles) thanks to FAME subsidy, all automobile manufacturers have switched on to the future – the EVs. Manufacturers are now focussing more on EV and less on Petrol/Diesel, and the CNG vehicles took a beating.
PNGRB CONCEDES EV BOOM
A recent report of Petroleum and Natural Gas Regulatory Board has the following findings.
Nationally, CNG 3-wheelers now outnumbered petrol fuelled
But diesel is still the largest 3-wheeler fuel
In CNG vs EV growth rate, the PNGRB finds conspicuous trend.
EV compounded Annual Growth Rate (CAGR) from March 2022 to March 2024: 87% in country
CNG CAGR: 16.25%
Petrol vehicles CAGR: 6.68%
Diesel vehicles CAGR: 5.24%
As per PNGRB, since CNG vehicles CAGR is second highest after EV, though both have a low base effect, it has planned to increase the number of CNG stations in the country, including Odisha.
118 NEW CNG STATIONS SOON
The PNGRB has divided Odisha into 12 zones. In the zones specified, the total CNG filling stations stood at 129 as on today. By 2031, it has targeted to increase the total to 247, by adding 118 new stations.
As per PNGRB data, Bargarh is having the highest of 24 CNG stations in the State.
Interestingly, despite the twin cities of Bhubaneswar and Cuttack, having the largest vehicle density in the State, the CNG stations here stood lower at 17 and 13, respectively.
What seems more intriguing is the PNGRB has not specified any minimum work programmes (MWPs) for the twin cities.
As per a senior transport department official, “The CNG prices in capital Bhubaneswar is lower than diesel. The mileage offered by diesel 3-wheelers (Bajaj, Mahindra etc) stood at around 30kmpl, whereas the mileage by Mahindra CNG vehicles stood to 40-50kmpl. The shortage of CNG stations in the twin city is behind the slower sale of CNG 3-wheelers in the State.”
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Natural Gas/ Pipelines/ Company News
Gujarat State Petronet Limited commissions Chhara Gas Pipeline
A natural gas pipeline connecting Hindustan Petroleum Corporation Ltd’s (HPCL) greenfield 5 million tonnes per annum (MTPA) LNG regasification terminal – at Chhara in the Gir-Somnath district of Gujarat – with the gas grid has been commissioned, an official release stated here, Saturday.
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The pipeline having a capacity of 18 million standard cubic meters per day was developed by Gujarat State Petronet Limited (GSPL) at a cost of approximately ₹650 crore. The pipeline commissioned on March 20 passes from the outskirts of the eco-sensitive zone of the Gir National Park & Wildlife Sanctuary.
The work for engineering, procurement and construction of the pipeline from the HPCL LNG terminal at the Chhara in Gir-Somnath district to Lothpur in Amreli district of Gujarat, including the despatch terminal at Chhara LNG terminal, valve stations and receiving terminal at Lothpur, was entrusted to the Mumbai-based construction company Ace Pipeline Contracts Private Limited (Ace Pipeline) in September 2023, the release added.
The HPCL LNG terminal at Chhara in Gir Somnath has a capacity for regasification of 5 MTPA LNG. This terminal is operated by HPCL LNG Limited, a subsidiary of State-run HPCL.
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GAIL Gets PNGRB Approval to Expand DUPL-DPPL Pipeline Capacity
GAIL (India) Limited on March 26 said that it has received approval from Petroleum and Natural Gas Regulatory Board (PNGRB) for capacity expansion of its Dahej-Uran-Dabhol-Panvel (DUPL-DPPL) Natural Gas Pipeline network. With the approval, GAIL will be able to enhance the capacity of the pipeline from the current 19.9 MMSCMD to 22.5 MMSCMD, for transportation of higher natural gas.
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GAIL’s business growth and operational efficiency will significantly benefit from capacity expansion, which will grow along with the increasing demand for natural gas. PNGRB’s approval will be valid for three years from the date of communication, which should be sufficient time for GAIL to execute the expansion.
As a follow up, the PNGRB has been revising the Natural Gas Pipeline Tariff Regulations, 2008 recently to improve the tariff structure and introduce efficiencies in the industry.
The proposal and order has opened up a public comment period, welcoming industry feedback on the proposed amendments, due April 11. A recommendation from an industry committee on how to align tariff-related regulations in the natural gas sector were recently submitted, providing a market outlook and insights to enhance the smooth going of the market.
The PNGRB’s move to amend the provisions of the regulation of tariff fitted with its objective of ensuring fair pricing, improving transparency and encouraging the sustainable development of the natural gas sector. The move is in line with the aim of expanding the natural gas infrastructure in India and promoting a more competitive and efficient energy market.
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Rudra Gas Enterprise receives order worth Rs 33.21 cr
Rudra Gas Enterprise has received a letter of award from Bharat Petroleum Corporation amounting to Rs 33.21 crore for MDPE Pipeline laying & associated works (Phase-III) along with Last Mile Connectivity (LMC) and Direct Marketing Agency (DMA) activity for City Gas Distribution Projects at Alipurduar & Coochbehar in State of West Bengal.
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Petronet LNG receives affirmation in credit ratings from ICRA
Petronet LNG announced that ICRA has reaffirmed the Company’s existing rating of ICRA AAA/A1+ (Stable) for the Fund-Based and Non-Fund-Based credit limits of Rs. 12,000 crore from the banks and assigned a rating of ICRA AAA/A1+ (Stable) for the enhanced Fund-Based and Non-Fund-Based credit limits from Rs. 12,000 crore to Rs. 15,000 crore.
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BPCL Launches Emerge Cohort under BPCL Ankur Fund to Foster Innovation in Energy Efficiency and City Gas Distribution
Mumbai: Bharat Petroleum Corporation Limited (BPCL), a Fortune Global 500 company, has announced the launch of the ‘Emerge’ cohort under the BPCL Ankur Fund to support startups in Energy Efficiency and City Gas Distribution (CGD). This reinforces BPCL’s contribution towards India’s transition to a greener and more efficient energy future through its commitment to fostering sustainability and innovation in the oil and gas sector.
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Since its inception in 2016, BPCL through its startup initiative ‘Ankur’ has supported 30 startups with grants amounting to approximately ₹28 crores.
With the launch of the ‘Emerge’ cohort, BPCL through its ‘BPCL Ankur Fund’ aims to make investments in startups that have developed a Proof of Concept (PoC)/ prototype/ Minimum Viable Product (MVP), or fully implemented solution in the Oil & Gas sector or any other industry and are now ready to expand into Oil & Gas.
The applications for the Emerge cohort are open for startups across two key themes: Energy Efficiency and CGD. The Energy Efficiency theme focuses on innovative solutions that optimize energy consumption, enhance sustainability, and reduce greenhouse gas emissions within the oil and gas sector which includes advancements such as AI-powered energy management, predictive maintenance of equipment, heat transfer optimization, waste heat recovery solutions etc.
Under the City Gas Distribution theme, applications will focus on cutting- edge technologies that enhance customer experience, operational efficiency, safety, last mile connectivity and project execution.. It includes solutions like smart metering, pipeline monitoring & leak detection, predictive maintenance, AI-driven project execution tools etc. These themes align with BPCL’s commitment to fostering a sustainable and technology-driven energy ecosystem.
BPCL Ankur Fund invites applications from eligible early-stage startups that are working under the specified thematic categories. Selected startups can receive investment of up to ₹5 crores through funding modes such as equity, Compulsory Convertible Preference Shares (CCPS), etc., with a maximum stake of 20%.To know more, please visit: https://startup.bpcl.in/
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Torrent Power, Gama Infraprop win tender to supply gas-based power
NVVN is the nominated nodal agency for facilitating supply from gas-based power plants (GBPs) from March 25 to October 15, a period identified ‘high-demand’ this year. Torrent Power and Gama Infraprop Pvt Ltd have won a tender to supply 1.7 gigawatt (GW) gas-based power during the ‘high-demand’ summer months. The tender was floated by NVVN Ltd, the power-trading arm of state-owned NTPC Ltd. NVVN is the nominated nodal agency for facilitating supply from gas-based power plants (GBPs) from March 25 to October 15, a period identified ‘high-demand’ this year.
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Torrent will supply 1.3GW electricity from its Sugen Combined Cycle Power Plant and DGEN Mega Power Project at a tariff of ₹4.63 per unit. Gama will supply 0.9GW at ₹4.55 per unit, said industry sources. The tariff is lower than last year when it was ₹5-6.5 per unit.
One of the reasons for the reduction in tariff could be the softening of natural gas prices in 2024.
Average monthly spot prices at Henry Hub, the most widely-used benchmark for natural gas in North America, averaged $2.21 per million British thermal units (MMBtu) in 2024, the lowest inflation-adjusted average annual price ever reported. This was 16 per cent lower than the average in 2023, and down almost 68 per cent from the 2022 average.
The monthly average Henry Hub spot natural gas price in 2024 ranged from $3.25/MMBtu in January to an all-time low of $1.51/MMBtu in March. This reflected a narrower $1.74/MMBtu range of monthly prices across the year than the average range of $2.32/MMBtu in the past five years.
Robust US natural gas supply, mild winter temperatures, lower heat demand and relatively full storage levels contributed to these historically-low prices.
NVVN has been calling bids from gas-based power generation units for the past two years to procure power as part of a special Union government scheme. The company sells this power in the open market when demand goes up. Torrent Power won the bid to supply 0.9GW at ₹4.9 per unit in 2023 as well.
Last year, the power ministry directed GBPs to “mandatorily” run during the summer to meet rising power demand. Gas is a peaking power generation source, which means it can be switched on immediately when demand goes up, unlike coal, which needs days to switch on back, or renewable solar and wind which are not stored at a large enough scale for it to be always available.
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Mahanagar Gas Limited Extends ‘Khushiyan Lakhon Ki’ Campaign Till March 2025 After Overwhelming Response
Mahanagar Gas Limited (MGL), one of India’s largest city gas distribution companies, has extended its highly successful “Khushiyan Lakhon Ki” campaign until March 31, 2025, following an overwhelming response. The initiative, which originally ran from November 15 to December 31, 2024, aimed to encourage new household registrations for Piped Natural Gas (PNG) in gasified buildings across Mumbai and its surrounding regions.
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The campaign saw a two-fold increase in new PNG registrations, reflecting a strong demand for cleaner and more sustainable fuel solutions. As part of the promotion, new customers were eligible to enter a computerized lucky draw, with 2,172 winners receiving cash prizes ranging from ₹1,000 to ₹1,00,000.
On January 7, 2025, MGL conducted the lucky draw, announcing the grand prize winners of ₹1 lakh each:
Freddy Patel from Mira Road (East)
Sanjay Parab from Kalyan (East)
Other winners received rewards of ₹25,000, ₹50,000, ₹10,000, ₹5,000, and ₹1,000, with the prize money either credited to their gas bills or handed over via cheques at a felicitation event.
Extension of Campaign
Given the enthusiastic response, MGL has decided to extend “Khushiyan Lakhon Ki” until March 31, 2025, offering even more households a chance to switch to PNG and win exciting prizes.
Leadership Speaks
Speaking on the success of the campaign, Ashu Shinghal, Managing Director, Mahanagar Gas Limited, expressed his delight:
“At the outset, I would like to extend my congratulations to all the winners of the lucky draw. With ‘Khushiyan Lakhon Ki,’ we aimed to spread not just awareness about sustainability but also a sense of hope and happiness. It is fulfilling to see the campaign resonate so deeply with communities and inspire a greener way of living. This success is a collective achievement, and we are grateful for the support from our partners, employees, and the people we serve.”
Growing PNG Adoption in Mumbai and Beyond
The initiative has significantly boosted PNG adoption across Mumbai, Navi Mumbai, Thane, Mira-Bhayander, Kalyan, Dombivli, Ambernath, Badlapur, Bhiwandi, Taloja, Ulwe, and other areas. The growing preference for PNG highlights its benefits as a cost-effective, eco-friendly, and safe alternative to traditional fuels.
As MGL continues its push towards a greener future, the extension of ‘Khushiyan Lakhon Ki’ ensures more households get the opportunity to switch to PNG while enjoying lucrative rewards.
For further details and participation, residents can visit MGL’s official website or contact their customer service helpline.
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IGL, MGL shares jump 3% after Axis Capital sees 4 positive triggers for city gas companies
The shares of city gas distributors Indraprastha Gas (IGL) and Mahanagar Gas (MGL) surged over 3 percent on March 20 after Axis Capital issued bullish calls for the two stocks and suggested target prices with strong upsides. Axis Capital in its latest note said that City Gas Distribution (CGD) sector should benefit from its aggressive expansion. Additionally, CNG business is set to be more favorable when compared to petrol or diesel vehicles. The brokerage said that the new CNG vehicle models are expanding the addressable market to approximately 55 percent of the total PV industry volume. This comes on the back of supportive government policies.
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Axis Capital further said that it prefers companies with higher exposure to CNG as they are set to see the fastest growth in the value chain. The brokerage predicted that the key players in the market are set to focus on profit expansion through value engineering, instead of price hikes.
Axis Capital upgraded the rating of the shares of IGL to ‘Buy’ from its earlier ‘Add’, and kept a target price of Rs 224 per share. This implies an upside potential of nearly 16 percent from the stock’s previous closing price of Rs 193 per share. IGL shares jumped over 3 percent to trade at nearly Rs 200 apiece on March 20.
The brokerage initiated coverage on the shares of MGL with a ‘Buy’ rating, and kept a target price of Rs 1,580 per share for the stock. The latest target price implies an upside potential of nearly 19 percent from its previous closing price of Rs 1,333 per share. The stock surged over 3 percent to trade at Rs 1,378 per share.
Axis Capital however initiated coverage on Gujarat Gas with a ‘Reduce’ call. It kept a target price of Rs 390 per share for the stock. This implies a marginal downside potential from the stock’s previous closing price of Rs 393 per share. Despite the bearish call, Gujarat Gas shares rose nearly 3 percent to trade at Rs 404 apiece on March 20.
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Policy Matters/ Gas Pricing/ Others
PNGRB proposes reforms to attract investment and enhance gas consumption
The regulatory body released a Public Consultation Document on March 21, 2025, inviting stakeholder input on various aspects of natural gas pipeline tariff regulations In a significant move to attract investment and enhance gas consumption, particularly in the CNG and domestic PNG sectors, the Petroleum and Natural Gas Regulatory Board (PNGRB) has proposed amendments to the PNGRB (Determination of Natural Gas Pipeline Tariff) Regulations, 2008.
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The regulatory body released a Public Consultation Document on March 21, 2025, inviting stakeholder input on various aspects of natural gas pipeline tariff regulations. Key proposals include reducing unified tariff zones from three to two, applying the zone one unified tariff to all CNG and PNG-Domestic customers, incentivizing isolated network operators and pipelines, equally distributing the benefits of volumes beyond the normative threshold between consumers and pipeline operators, and creating policies for the long-term procurement of System Use Gas.
In an exclusive interview with ANI, AK Tiwari, Member, PNGRB, highlighted the main aspects of the consultation: “There were three zones; now we are going to have two zones. We have also kept a cap on tariff for PNG and CNG customers that will benefit them directly.”
Tiwari added that the board is working on incentivizing pipeline operators in isolated fields across Gujarat, Tamil Nadu, and Assam, where earnings are currently negative. For operators earning above the normative 75 per cent, he proposed a 50-50 sharing arrangement where “50 per cent would be passed to customers and 50 per cent operators can retain for infrastructure development as a development reserve fund.”
“These reforms are primarily in the interest of customers, but also benefit pipeline operators by incentivizing them and giving impetus for increased investment,” Tiwari explained.
PNGRB has authorised approximately 33,475 km of the natural gas pipeline network nationwide, with around 24,945 km already operational. The remaining pipelines are at various stages of construction.
In the City Gas Distribution (CGD) sector, PNGRB has authorised development across the entire country except for islands. According to the Minimum Work Programme, India aims to have 120 million PNG domestic connections and 17,500 CNG stations by 2030. As of December 2024, the country has approximately 7,395 CNG stations and 14 million PNG domestic connections.
Gas consumption in the CGD sector is expected to grow at a CAGR of approximately 10% by 2030. Supporting this growth, the Government of India has given priority allocation of APM gas to CNG and PNG-Domestic customers.
The PNGRB previously implemented amendments in 2020 and 2022 to boost investment and gas consumption in remote areas, offering incentives including Unified Tariff (under three zones), Integrated Tariff, and various operational adjustments.
The latest amendments are expected to be implemented by the end of May 2025.
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No windfall tax on oil & gas companies after new law kicks in: Hardeep Puri
The new oilfield development bill passed by the Lok Sabha will prevent the imposition of windfall tax on oil and gas producers, stated petroleum minister Hardeep Puri. The bill aims to boost the exploration sector by ensuring policy stability and longer leases. This move follows past issues with retrospective and windfall taxes that deterred investor confidence.
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New Delhi: The government will not be able to impose windfall tax on oil and gas producers after a new law comes into place following the passage of the oilfield development bill by Parliament, petroleum and natural gas minister Hardeep Puri said on Wednesday.
Lok Sabha last week passed the Oilfields (Regulation and Development) Amendment Bill, 2024, aimed at boosting the country’s exploration sector by ensuring policy stability, scope for international arbitration and longer lease for oil and gas companies.
After the bill becomes a law, the petroleum and natural gas ministry will formulate regulations in consultation with the industry, Puri said.
In the past, the retrospective tax and windfall tax on oil and gas producers shook investor confidence. The UK’s Capricorn Energy, previously called Cairn Energy, fought a protracted legal battle to defend itself against the government’s retrospective tax demand. Similarly, companies protested the imposition of windfall tax on oil and gas producers in 2022.
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Gujarat State Petronet receives PNGRB approval for capacity expansion of Gujarat Gas Grid
Gujarat State Petronet Limited (GSPL) recently informed exchanges that the company has received approval from the Petroleum and Natural Gas Regulatory Board (PNGRB) for the expansion of its High-Pressure Gujarat Gas Grid. This expansion will be carried out by laying the Anjar-Palanpur Pipeline, marking a significant step in strengthening the state’s natural gas infrastructure.
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The newly approved Anjar-Palanpur pipeline will extend over a length of 274 kilometers, with a diameter of 30 inches. It will originate from Anjar, Gujarat, connecting to the 36-inch Mundra-Arpar pipeline of GSPL’s High-Pressure Gujarat Gas Grid. The termination point of the pipeline will be at Palanpur in the Banaskantha district, where it will integrate with MBPL. With a projected capacity of 12 million metric standard cubic meters per day (MMSCMD), this expansion will enhance the overall capacity of GSPL’s High-Pressure Gujarat Gas Grid to 44.76 MMSCMD.
The approved capital expenditure for this project stands at ₹2,051.18 crore. However, this investment will not be included in future capital expenditure considerations for tariff calculation. Instead, only the actual expenditure incurred will be accounted for. The completion timeline for this project is set at three years from the date of approval.
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Guj govt earned Rs 40 569 crore from taxes on fuel CNG and PNG in two years
Gandhinagar, Mar 18 (PTI) The Gujarat government earned Rs 40,569 crore from value-added tax (VAT) and cess on fuel, CNG, and PNG in the last two years, the legislative assembly was told on Tuesday. In a written reply, state Finance Minister Kanubhai Desai stated that Rs 19,928 crore in taxes and cess were earned between February 2023 and January 2024, while Rs 20,641 crore was generated between February 2024 and January 2025.
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A query on the state’s earnings through taxes was raised by Congress MLA Kanti Kharadi during Question Hour of the Budget session.
Desai stated the government earned Rs 12,505 crore from VAT and cess on petrol, Rs 27,788 crore on diesel, Rs 59 crore on PNG, and Rs 217 crore on CNG in two years (till January 31, 2025).
The government had imposed 13.7 per cent VAT and 4 per cent cess on petrol, 14.9 per cent VAT and 4 per cent cess on diesel, 15 per cent VAT on PNG (commercial), 5 per cent VAT on PNG (household), 15 per cent VAT on CNG (wholesale), and 5 per cent VAT on CNG (dealer), he said.
https://www.theweek.in/wire-updates/national/2025/03/18/bes16-gj-assembly-vat.html
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LNG Use / LNG Development and Shipping
GAIL India to seek three LNG cargoes per year for three years, says chairman
India’s largest gas distributor GAIL India (GAIL.NS), opens new tab will seek three LNG cargoes annually for three years in a tender closing April 2, chairman Sandeep Kumar Gupta said on Wednesday. “This year, we will have two cargoes for May and June. Next year onwards, (we will seek) 3 cargoes in April to June period,” Gupta told reporters.
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Reporting by Mohi Narayan in New Delhi and Ananta Agarwal in Bengaluru; Editing by Leroy Leo
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HPCL’s Greenfield 5MTPA LNG Terminal commissioned at Chhara district of Gujarat
Developed at a cost of over Rs 650 crore, Gujarat State Petronet Limited (GSPL) built a pipeline with capacity of 18 million standard cubic meters daily. An official release said that a natural gas pipeline linking Hindustan Petroleum Corporation LTD’s (HPCL) greenfield 5 million tonnes annual (MTPA) LNG regasification station – in Chhara in the Gir-Somnath region of Gujarat – with the gas grid has been commissioned.
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Developed at a cost of over Rs 650 crore, Gujarat State Petronet Limited (GSPL) built a pipeline with capacity of 18 million standard cubic meters daily. Comprising the outskirts of the Gir National Park & Wildlife Sanctuary’s eco-sensitive zone, the pipeline commissioned on March 20 traverses.
From the HPCL LNG terminal at the Chhara in Gir-Somnath district to Lothpur in Amreli district, including the despatch terminal at Chhara LNG terminal, the work for engineering, procurement, and construction of the pipeline was assigned to the Mumbai-based construction company Ace Pipeline Contracts Private Limited (Ace Pipeline) in September 2023, the release added.
The 5 MTPA LNG capacity of the HPCL LNG terminal at Chhara in Gir Somnath is regasification capacity. Operating this terminal is HPCL LNG Limited, a division of State-run HPCL.
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LNG’s role in securing India’s energy future in a changing global landscape
India is implementing decisive measures to maintain a reliable and varied LNG supply as energy security becomes more critical. Due to geopolitical tensions and supply chain disturbances, current global energy markets exhibit volatility, which leads to long-term LNG contracts becoming a strategic priority. Through these agreements, India protects itself from price volatility while enhancing its role as a major force in the regional energy sector.
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Strategic LNG agreements
The primary feature of India’s energy strategy puts the spotlight on establishing strategic energy agreements. In order to achieve both energy diversification and stability, India entered into long-term LNG supply agreements with foreign partners. The volatility of global energy markets leads nations to enter into deals that protect their energy supply and reduce geopolitical risk impacts.
However, India’s approach to energy security is not just about imports. A landmark agreement to export LNG to neighbouring countries via cryogenic trucks signals a shift in India’s role from a major energy consumer to an emerging regional supplier. This move not only strengthens economic ties within South Asia but also enhances India’s influence in the regional energy market.
Government’s push for LNG expansion
The Government of India has placed LNG at the forefront of its energy transition with an aim to grow its energy mix percentage from 6.2% to 15% by 2030. The move towards this strategy results from requirements to reduce carbon emissions and maintain both stable and cost-effective energy delivery. Experts from the industry have emphasised that building pipelines and expanding regasification terminals and distribution networks is necessary to support the energy transition.
Beyond infrastructure, affordability remains a key concern. Executives from the energy sector stress that accessibility across remote locations depends on policy changes and increased funding for logistics infrastructure. A secure and extensive network contributes to industrial development while serving as a crucial component in India’s movement toward cleaner energy alternatives to coal and other high-emission fuels.
Sustainable energy initiatives
Sustainability is a key focus of India’s energy strategy, with a strong commitment to achieving a 20% ethanol blending target by October 2025. The country’s abundant biofuel feedstock—estimated at 500 million metric tonnes—presents a significant opportunity to scale up indigenous fuel production. This aligns with India’s broader efforts to reduce reliance on imported fossil fuels and promote rural economic development. Significantly, global collaborations on biofuels reflect a growing international effort to harness cleaner energy sources. Innovations such as cost-effective biofuel conversion kits and flex-fuel vehicle technologies further underline the potential of biofuels in reducing carbon emissions and promoting sustainable energy alternatives.
Collaboration for energy innovation
India’s energy strategy extends beyond domestic concerns, with companies engaging in agreements with international energy firms to explore collaboration in exploration, production, and decarbonization. These partnerships facilitate the exchange of knowledge and cutting-edge technology, ensuring that India remains at the forefront of energy innovation.
Cooperation in oil and gas exploration, alongside joint efforts in carbon capture and alternative energy research, reflects an industry-wide shift towards a balanced and sustainable approach to energy development. With global stakeholders acknowledging India’s growing energy footprint, such collaborations are expected to shape the country’s energy policies and infrastructure investments in the years to come.
Diversified energy future
India’s energy transition is driven by a clear commitment to a diversified and sustainable energy future. By focusing on strategic partnerships, climate-conscious initiatives, and cultivating global collaborations, the country is positioning itself as a key player in the global effort to achieve a low-carbon energy landscape.
As investments in infrastructure, technology, and policy reforms continue, India’s energy security will be further strengthened, ensuring a resilient and adaptive approach to the challenges of the evolving global energy market. The proactive steps being taken today will shape the country’s long-term energy roadmap, ensuring a balance between economic growth, environmental responsibility, and regional energy cooperation.
https://www.manufacturingtodayindia.com/lng-role-securing-energy-future
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India’s LNG imports from the US at record 7.25 BCM in 2024
According to the US Energy Information Administration (EIA), India’s LNG imports from the US rose by more than 55 per cent y-o-y during CY 2024. Compared to 2022, imports more than doubled. India’s imports of liquefied natural gas (LNG) from the US surged to 256.05 billion cubic feet, or roughly 7.25 billion cubic meters (BCM), during 2024 calendar year (CY) — the highest on record. According to the US Energy Information Administration (EIA), India’s LNG imports from the US rose by more than 55 per cent year-on-year (y-o-y) during CY 2024. Compared to 2022, imports more than doubled. More than 15 BCM per year of new sales and purchase agreements were signed in 2024, as per the International Energy Agency (IEA).
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The previous high was registered in 2021 when India imported 5.56 BCM of LNG from the North American country, which overtook the UAE as India’s second largest LNG supplier in 2023 CY, after Qatar. In the same year, the US also became the world’s largest LNG exporter, accounting for 21 per cent of the market, followed by Australia and Qatar.
Imports to inch higher
A top government official said that oil and gas volumes from the US will rise “for sure”. However, the scope is higher for LNG considering that India generally imports light sweet crude oil from the US (WTI), which yields more petrol.
Logistics and crude costs are the key as Middle East crude freight costs are around $1.50 per barrel, roughly one-third of the US costs.
“February’s joint statement emphasises on establishing the US as India’s leading supplier of crude oil, ethane, petroleum products and LNG. India needs more light sweet crude in line with growing personal vehicles and SUVs. Same with gas and ethane as industry base expands,” the official added.
The US is already India’s sixth largest energy trade partner, which hit $13.7 billion in FY24. It is also the fifth largest crude oil supplier and the second largest source for LNG. The US accounted for roughly 3 per cent of crude oil and 13-13.5 per cent of LNG imports in FY24.
“First tranche of the bilateral trade agreement is expected in October-December 2025, which will push energy trade. For instance, crude oil can raise the US share to 5-6 per cent. During Covid in FY22, American crude imports hit a high of around 8 per cent. We do not expect the share will go over that for now,” a top official with a domestic refiner said.
The official too agreed that LNG has more scope considering the growing requirement for natural gas. “America’s share in LNG imports can go up to 17-18 per cent easily. More term contracts can be signed,” he added.
Evolving trade dynamics
A senior executive with a top oil and gas company said that LNG supplies from the US to India will appreciate further in FY26 as the new US administration views LNG as not just a growth driver, but also a geopolitical lever.
“It’s a critical period for global gas market. LNG trade maps will again undergo some change like after the Russia-Ukraine conflict. The US is pushing hard and wants to move deeper into India, Japan, South Korea and Taiwan. Asia is the big game.”
“Besides, the trade war, these countries are either negotiating or are going to negotiate term contracts with Gulf Cooperation Council (GCC) countries. This US push will have a bearing on negotiations as prices (spot and long term) will soften in the next 2-3 years, due to excess capacity,” he explained.
American LNG imports are more efficient as freight cost efficiencies are better than crude oil. Besides, associated gas production has helped it to export the commodity at competitive terms.
Associated natural gas is extracted from wells that predominantly produce oil and comes mainly from five major oil-producing regions in the US—the Permian, Bakken, Eagle Ford, Anadarko, and Niobrara. It contains natural gas plant liquids (NGPLs) such as ethane, butane, and propane.
According to a recent report by Wood Mackenzie, falling production amidst rising demand for LNG is expected to push up imports with India likely to become the world’s third largest importer, after China and Japan, by 2032 with in-bound cargoes accounting for 75 per cent of its gas consumption.
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ONGC Videsh expects headway in Mozambique offshore LNG project rollout
Covering 2.6 million acres, the Mozambique Rovuma Area-1 Offshore project will see integrated gas fields development and has estimated recoverable reserves of 75 trillion cubic feet of natural gas ONGC Videsh Ltd (OVL) is expecting to make headway in its offshore gas exploration project in Mozambique, where people have begun working on the ground, officials said. An investment of ₹1,500 crore has been greenlit by the OVL board earlier this week into the joint venture (JV) there.
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The overseas arm of state-owned exploration and production giant ONGC, OVL holds a 10 per cent stake in the $20 billion “Offshore Area 1” LNG project, which has been under force majeure since April 2021 following attacks by Islamic State terrorists in Northern Mozambique’s Cabo Delgado province. The revocation of the force majeure is expected soon, company officials said.
OVL’s board approved an investment up to ₹1,500 crore in Beas Rovuma Energy Mozambique Limited (BREML), an OVL subsidiary in which it holds a 60 per cent shareholding, with the rest being owned by state-owned upstream player Oil India Limited (OIL).
The board also approved other related-party transactions, including the sponsoring of a senior loan up to $379.30 million by OVL Overseas IFSC Ltd (OOIL) to Moz LNG1 Financing Company Ltd (MozLNG1) for Area 1 Mozambique Project. OOIL is a wholly owned subsidiary of OVL and MozLNG1 is an associate of ONGC Videsh Rovuma Limited (OVRL), another wholly owned subsidiary of OVL. The company will also extend guarantee support to MozLNG1 against the loan, its regulatory filing said.
Covering 2.6 million acres, the Mozambique Rovuma Area-1 Offshore project will see integrated gas fields development and has estimated recoverable reserves of 75 trillion cubic feet of natural gas. It is a major bet for India given the relative ease of transferring LNG back across the Indian Ocean.
OVL holds a 10 per cent participating interest, while another 6 per cent interest is held through its 60 per cent shareholding in BREML. The Offshore Area 1 is located within the Rovuma Basin, approximately 40 km offshore northern Mozambique. Meanwhile, BPRL Ventures Mozambique BV, an overseas subsidiary of Bharat Petro Resources Ltd, a wholly owned subsidiary of BPCL, holds 10 per cent participating interest in the Area 1 concession. OIL holds a 4 per cent interest.
It is being developed by a consortium of French energy major Total SE (26.5 per cent), Mozambique’s national oil company Empresa Nacional de Hidrocarbonetos (ENH) (15 per cent), Mitsui E&P Mozambique Area 1 (20 per cent), and PTTEP Mozambique Area 1 (8.5 per cent), a wholly owned subsidiary of Thailand’s national exploration and production company. From India, OVL, BREML, and BPRL Ventures Mozambique together own 30 per cent of the project.
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Electric Mobility/ Hydrogen/Bio-Methane
India aims to boost Coal Bed Methane production to 5 MMSCMD by 2027-28
With 15 CBM blocks and significant investments, the government supports modernisation efforts, including advanced drilling techniques and policy reforms to facilitate smoother operations and attract further investments. India aims to increase Coal Bed Methane (CBM) production to 5.0 million metric standard cubic meters per day (MMSCMD) by 2027- 28, strengthening domestic energy security and reducing dependence on imported natural gas, according to the Ministry of Petroleum and Natural Gas. With strong policy support, technological advancements, and rising
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India is taking major steps to develop CBM as a key energy source, creating new investment opportunities in the unconventional hydrocarbon sector. The government has been actively working to expand CBM exploration. Through two special bid rounds in 2021 and 2022, seven new CBM blocks were added, bringing the total number to 15 blocks. These new blocks come with a committed investment of $16.64 million for exploration, signaling strong interest from energy companies in India’s CBM reserves. To support CBM development, the government introduced the Policy for Exploration and Exploitation of Unconventional Hydrocarbons.
This policy provides greater operational flexibility to companies and is further strengthened by a Joint Standing Mechanism, which helps resolve any overlaps between coal mining and CBM extraction. These measures aim to ensure smoother operations and faster implementation of CBM projects. In a bid to improve efficiency and output, India is adopting Multi-Lateral Horizontal Well drilling, a cutting-edge technique that is expected to increase CBM production by 30 per cent compared to conventional methods. This innovation will enhance gas extraction efficiency, making CBM production more commercially viable.
At present, India has 15 operational CBM blocks covering 7,009 square kilometres. Among them, five blocks are in the exploration phase, six are in production, two are under development, and two are under Petroleum Exploration License (PEL). The current production rate of CBM stands at 2.2 million metric standard cubic meters per day (MMSCMD), with a total investment of $2.6 billion made up to March 2024. Cumulative CBM production has reached 7.08 billion cubic meters (BCM) as of February 2025.
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RSGL to set up compressed biogas plant, sales centre
Jaipur: Rajasthan State Gas Ltd (RSGL) is diversifying its operations and exploring possibilities to set up a plant for production of compressed biogas (CBG) and a sales centre for providing Liquefied Natural Gas (LNG), said T Ravikant, principal secretary, mines and petroleum, Thursday.
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Ravikant, who is also the chairman of Rajasthan State Gas Ltd, said that CNG and PNG facilities in Kota will be expanded rapidly, which will benefit people, commercial, and industrial establishments there.
Detailing the plans of RSGL at its board meeting, the company’s managing director, Ranveer Singh said that along with 12 CNG stations in Kota, there is a plan to start new CNG stations.
RSGL is a joint venture company between the state govt and Gail Gas Ltd.
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3rd private car must be EV: Delhi govt proposal
Delhi’s new EV policy mandates electric vehicles for third cars, bans fossil fuel three-wheelers from August, and aims for 95% EVs by 2027. The third private car purchased in every Delhi household must be an electric vehicle, no fossil fuel-run three-wheelers will be registered from August this year and no non-electric two-wheeler will be allowed to register from August 2026, the state government is likely to stipulate as part of its ambitious Electric Vehicles Policy 2.0, according to officials aware of the matter.
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Delhi transport minister Pankaj Kumar Singh has approved the policy in principle and it will now be presented to the cabinet, one of the officials said.
“The new policy has some bold targets aimed at ensuring EV transition in every vehicle segment. In some categories, we hope that we will be able to achieve 100% new vehicles being registered are EVs in Delhi. We have also developed strategies around how this will be done,” a senior transport official, not wishing to be named, said.
Registration of petrol, diesel or CNG-run two-wheelers will not be allowed from August 2026, said the policy, a copy of which was accessed by HT.
For the three-wheeler segment, all CNG autorickshaws over 10 years old will be mandatorily replaced or retrofitted with electric autorickshaws during the policy period.
Experts called the move “progressive” and said the move could catalyse the transition to electric vehicles in a city where internal combustion engine (ICE) vehicles are among the biggest domestic sources of pollution.
“According to the proposed policy, no CNG autorickshaw or three-wheeler goods carrier registration will be allowed after August 2025 and no CNG auto permits will be renewed from August 2025. All such permits will be substituted or reissued as only e-auto permits,” a second official familiar with the policy said.
The policy also proposes to mandate all garbage collection vehicles used by the Municipal Corporation of Delhi (MCD), Delhi Jal Board (DJB) and other civic agencies to be transitioned to EVs in a phased manner and achieve 100% electric fleet by 2027.
According to the proposal, over 13,200 charging stations will be set up across the city, ensuring a station every five kilometres.
While the previous policy proposed setting up 48,000 charging points by 2026, only 10% has been achieved.
To be sure, one charging station can have multiple charging points.
Officials said that the policy is chiefly aimed at ensuring that 95% of new vehicles registered in Delhi will be electric by 2027, and 98% by 2030. The previous policy aimed at ensuring 25% new registrations by 2024, but only reached 13-14%.
They said that the old policy was supposed to be revised in 2023 and that they may choose to revise it by 2027, depending on achievements.
Officials said the four key objectives of the policy are to combat air pollution and improve public health, create livelihood opportunities in the EV ecosystem, enhance energy security and grid resilience, and ensure equitable and affordable EV transition.
Transport officials said that the government is steadily increasing the e-bus fleet in Delhi and more buses have been procured that will increase the fleet to around 3,000 by the year-end. Further, it has also been made mandatory for the government to only procure electric vehicles.
According to information shared by the transport department and ministry of road transport and highways, 9.77 two-wheelers have been registered in Delhi in all, with 7,552, 34,581, 37,477 and 31,339 electric two-wheelers registered from 2021 to 2024, respectively.
Experts said a strong policy push was the need of the hour as Delhi has outrun the benefits it could achieve by transitioning to CNG vehicles.
“The Delhi government’s new electric vehicles policy is arguably the most progressive state-level plan for transition. The ban on ICE (internal combustion engine) two-wheeler registrations beyond August 15, 2026, could set a strong precedent for the country. However, a similar phase-out plan for internal combustion engine cars is missing which needs to be considered on a priority,” said Amit Bhatt, managing director (India), International Council of Clean Transport (ICCT).
Bhatt added that in the two-wheeler segment, demand can easily be met—similar to Delhi’s CNG bus transition over two decades ago. At the time, no manufacturers produced CNG buses until court mandates were enforced, but the demand was quickly met by multiple manufacturers. He emphasised that systematic policy implementation can ensure targets are achievable and realistic.
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BPCL, CIAL at the wheel of Kerala’s first hydrogen-fuelled bus
The state’s first green hydrogen plant and fuelling station is already under construction near the airport in Nedumbassery. KOCHI: In a major step towards promoting sustainable transportation solutions, the first hydrogen-fuelled bus will soon be rolled out in the state, thanks to the collaborative initiative of the Bharat Petroleum Corporation Ltd (BPCL) and Cochin International Airport Ltd (CIAL), the world’s first fully solar powered airport.
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A prototype of the bus, which uses green hydrogen—the ‘future fuel’—was displayed at the Global Hydrogen & Renewable Energy Summit held in Kochi on March 12 and 13. The state’s first green hydrogen plant and fuelling station is already under construction near the airport in Nedumbassery.
“CIAL plans to deploy the bus as soon as the plant is commissioned. Currently, 70% of the work is over. A few more pieces of equipment need to be installed. We expect the facility to be ready in a month or two,” a BPCL official told TNIE.
The bus, which uses hydrogen fuel cells developed by Pune-based firm KPIT Ltd, will be either deployed within the airport or used for providing short-distance airport connectivity. Authorities will soon initiate the registration process. The green hydrogen plant is being set up at an estimated Rs 25 crore.
Its initial output will be used to power vehicles within the airport, starting with the hydrogen bus. Under the agreement, BPCL will oversee the establishment of the integrated plant and fuelling stations, providing technology and managing the operation.
This collaborative effort will result in the world’s first green hydrogen plant and fuelling station located close to an airport setting. Green hydrogen, produced from water using renewable energy sources, is recognised as a future fuel and aligns with zero-carbon energy strategies.
Plan to set up jet fuel manufacturing unit on airport premises
CIAL, renowned for its effective deployment of green energy through big solar plants and a hydel station, now has a cumulative installed capacity of 50 MW. Ever since the installation of the first solar plant, with a capacity of 12 MW, the airport has been augmenting its capabilities and now inked an MoU for a strategic collaboration with BPCL for setting up a 1,000 KW pilot project on the airport premises.
There are also plans to set up a jet fuel-manufacturing unit within the CIAL premises, also in partnership with BPCL.
The BPCL official said CIAL has submitted the proposal for building a synthetic aviation fuel unit. Synthetic fuels, or e-fuels, can significantly contribute to decarbonising the aviation sector. The government aims to announce ‘net zero-carbon Kerala’ by 2050, and various campaigns towards the goal have been initiated in various sectors, including agriculture and road transportation.
Central pilot projects
As part of its National Green Hydrogen Mission, the Union government has initiated five pilot projects on hydrogen-fuelled buses, trucks and refuelling stations. A total of 15 hydrogen fuel cell-based vehicles and 22 hydrogen internal combustion engine-based vehicles will be run on 10 routes across the country for trial. Two routes in Kerala have been selected for the trial – Thiruvananthapuram-Kochi and Kochi-Edappally. The projects are likely to be commissioned in the next 18 to 24 months, paving the way for the scaling up of such technologies in the country.
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Delhi speeds up shift from CNG to e-buses
NEW DELHI: The Delhi government will soon start phasing out overage CNG buses as part of its plan to replace them with electric buses in the next few months, officials said on Monday. Transport Minister Pankaj Singh held a high-level meeting with top department officials and asked them to expedite procurement of 1,000 electric buses by March end, they said.
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“As of now, the Delhi Transport Corporation (DTC) fleet has 2,400 CNG buses and 1,700 electric buses. The transport minister held a meeting regarding the old buses, which are about to reach the end of life,” a senior department official said.
The department is working on the induction of 1,000 electric buses by March end, he added.
After taking charge as transport minister last month, Singh had said 50 per cent of the DTC’s fleet of CNG buses had been phased out and the remainder would be out of service in the next few months.
Environment Minister Manjinder Singh Sirsa earlier said that nearly 90 per cent of CNG buses in Delhi would be phased out by December
and replaced by electric buses as part of the government’s push towards a cleaner and more sustainable public transport.
The old fleet of DTC’s low-floor buses were purchased during the 2010 Commonwealth Games. These buses had a life span of 12 years or 7.5 lakh kilometres, whichever was achieved earlier.
Due to slow procurement, Delhi extended bus service life to 15 years in 2021, ending on March 31. Officials estimate the city needs 11,000 buses.
Minister Singh previously stated that Delhi would reach this target within the next one-and-a-half years.
https://www.millenniumpost.in/delhi/delhi-speeds-up-shift-from-cng-to-e-buses-602758
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Kandla Port to start green hydrogen manufacturing in June 2025
Gujarat’s Kandla port will become the first in India to have an operational Green Hydrogen plant using indigenous Electrolysers by mid-2025. The plant will produce around 18 kg of Green Hydrogen per hour, contributing to clean energy through Fuel Cells and future Green Ammonia integration. Gujarat’s Kandla port is set to become the first port in the country to have an operational Green Hydrogen plant, using indigenous Electrolysers, within the Port limits. A Shipping Ministry statement said the port aims to start green hydrogen production in the second half of calendar year 2025.
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An official statement said a 1-Megawatt (MW) electrolyser has been manufactured by L&T for this project which will subsequently be scaled up to 10 MW capacity.
“The Green Hydrogen Plant is targeted to be fully operational by July 2025, with an estimated production capacity of 18 kg of Green Hydrogen per hour, translating to approximately 80-90 tonnes per year,” the statement said while adding that site work is already completed at Kandla and the electrolysers will soon be assembled on-site to kickstart operations.
The Green Hydrogen produced by the facility will be utilized to generate clean energy through Fuel Cells, paving the way for self-sustaining and eco-friendly power solutions at the port.
Deendayal Port Authority (DPA), Kandla also plans to integrate Green Ammonia production by incorporating the necessary modules into the plant.
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Delhi to roll out 900 electric buses as 5,000 CNG buses retire
Delhi government intends to deploy 900 electric buses in the coming months as approximately 5,000 of 7,500 buses are due to be retired this year. Transport minister Dr Pankaj Singh said that govt has placed orders for thousands of new buses to maintain adequate public transport services. ‘I had a meeting with vendors and we were assured that there will not be a shortage. We are upgrading charging infrastructure in depots,’ he said. ‘There will not be a shortage of buses and from April 1 onwards. There will be 900 new electric buses, and every week it will increase depending on the demand,’ Singh added.
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The minister said that approximately 2,000 cluster and 3,000 DTC buses would be phased out this year. Electric buses would take their place on the road. The DTC fleet has 1,231 AC CNG buses, 1,878 non-AC CNG buses, and 1,250 electric low-floor buses. Similarly, under the cluster bus service, there are 750 AC CNG buses, 1,997 non-AC CNG buses, and 379 electric buses.
Among the new buses that would be purchased are both twelve-metre and nine-metre buses. Singh said that the tender process and other formalities were over. ‘You will start seeing the new buses in a week,’ he said. ‘I want to assure you that the people of Delhi will not have any problem,’ he said.
Officials in the transport department said that one of the main reasons behind the breakdown, which increased during summers due to heat, is that most of the CNG buses are overaged. Singh said that no extension would be given to buses when they reach end of life. ‘Only electric buses would be procured now,’ he said.
In 2018, govt told the top court that the required number of buses in the city is 11,000. Since then, the population has only gone up. Sources in the transport department said that it was going to be an uphill task for the govt to ensure that CNG buses are replaced with electric ones as e-buses take time in getting manufactured and then there are various tests these have to go through.
Second, while the companies want to sell buses, they are hesitant when it comes to annual maintenance contracts as they know that govt buses are used in rough conditions and have a higher wear and tear rate, he said. Singh, however, said that he has held meetings with manufacturers and operators and directed that the supply of buses be ensured as soon as possible.
He said that he has listened to the challenges faced by electric bus manufacturers and operators and assured them of all possible govt assistance. stating that the supply of buses should be expedited. The govt has set a target having fully electric buses by 2027, he said.
To reduce traffic jams and improve passenger convenience, DTC will work on route rationalisation, which will increase the availability of buses in high-density areas. The data shows that DTC recorded a daily average ridership of 25.99 lakh in 2023-24, while the cluster buses had a lower daily average ridership of 16.44 lakh in 2023-2024.
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BPCL Partners with KPIT Technologies to Enhance Hydrogen-Based Mobility in Kerala
Bharat Petroleum Corporation Limited (BPCL) has entered into a Memorandum of Understanding (MoU) with KPIT Technologies during the Global Hydrogen and Renewable Energy Summit in Kochi to promote hydrogen-based mobility initiatives in Kerala. This initiative, part of the National Green Hydrogen Mission, involves the establishment of Hydrogen Refuelling Stations (HRS) in Kochi and Trivandrum to support pilot mobility projects between the two cities, paving the way for safe and sustainable hydrogen-powered public transport.
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The MoU was signed by Shri Ranjan Nair, Business Head – Renewable Energy at BPCL, and Shri Ravi Pandit, Chairman of KPIT Technologies, in the presence of notable figures including Shri K R Jyothilal, IAS, Additional Chief Secretary, Department of Energy, Government of Kerala, Shri Bhupinder Singh Bhalla, IAS, Former Secretary, MNRE, Government of India, Dr. Bharat L. Newalkar, CGM (R&D), Shri D. D. Sarkar, Project Head (Renewable Energy), along with senior officials from both the Kerala State Government and the Central Government.
Promoting Indigenous Hydrogen Technology for Clean Mobility
This collaboration supports the Aatmanirbhar Bharat initiative by integrating homegrown technologies for a strong hydrogen ecosystem. BPCL plans to deploy a locally developed alkaline electrolyser for hydrogen production, and KPIT Technologies will contribute an indigenously designed fuel cell-powered bus.
After the MoU was signed, senior government officials were able to experience Kerala’s inaugural hydrogen-powered bus, marking a significant achievement in transitioning to hydrogen as a viable clean fuel for public transport.
Pilot Project to Yield Essential Real-World Insights
The project seeks to gather crucial data on the performance of fuel cell buses in Kerala’s varying climatic conditions, which include high humidity, temperature fluctuations, and heavy rainfall. This information will enhance the reliability of fuel cell technology and support future extensive deployment of hydrogen-powered transportation.
BPCL’s Hydrogen Refuelling Stations will create high-purity (>99.99%) green hydrogen for the buses, ensuring a sustainable energy source. BPCL will also gain practical experience in hydrogen dispensing, which will help develop a robust hydrogen mobility framework in India.
A Move Towards a Cleaner Tomorrow
Commenting on the partnership, Shri G. Krishnakumar, Chairman & Managing Director, BPCL, said,
Hydrogen-powered mobility is the future of sustainable transportation.
“Through this partnership, we are taking significant strides towards building a hydrogen ecosystem in India, providing clean, efficient, and locally developed solutions for public transport.”
This initiative will assess the operational reliability and durability of indigenous fuel cell stacks, evaluate the feasibility of fleet operations with passengers, and facilitate the wider adoption of hydrogen fuel cell vehicles across India.
With this collaboration, BPCL further reaffirms its commitment to green energy solutions, contributing to India’s overarching goal of a cleaner and more sustainable future.
BPCL Partners with KPIT Technologies to Enhance Hydrogen-Based Mobility in Kerala, source
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INTERNATIONAL NEWS
Natural Gas / Transnational Pipelines/ Others
Afghanistan: 10 Km of TAPI Gas Pipeline Completed in Afghanistan
The TAPI gas pipeline in Afghanistan has completed 10 kilometers of construction. Hamayon Afghan, the spokesperson for the Ministry of Mines and Petroleum of the Taliban administration, announced that the practical work on the TAPI gas pipeline project in Afghanistan has made 10 kilometers of progress. On Saturday, March 15, Afghan shared a video clip revealing the acceleration of the TAPI project’s work as the weather warmed up. According to Afghan, the TAPI project is one of the government’s priorities in the energy infrastructure sector, and there are hopes for its swift completion.
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The TAPI pipeline is a major regional project that aims to transport Turkmenistan’s gas through Afghanistan to Pakistan and India.
This project was launched in 2015 in Merv, Turkmenistan, by the leaders of Afghanistan, Pakistan, and Turkmenistan, and was inaugurated in Afghanistan in 2017.
It is worth noting that the implementation of this project was delayed due to insecurity in Afghanistan. The TAPI project is one of the largest regional projects, with a length of 1,821 kilometers and an annual gas transmission capacity of 33 billion cubic meters.
Meanwhile, significant progress has been made on the TAPI project, the challenges posed by security concerns in Afghanistan remain. The successful completion of the project could significantly impact the region’s energy landscape, fostering closer cooperation among neighboring countries. However, continued efforts will be required to ensure its timely and secure completion.
https://www.khaama.com/10-km-of-tapi-gas-pipeline-completed-in-afghanistan/
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US natural gas pipeline completions boosted takeaway capacity, EIA says
The U.S. Energy Information Administration said on Monday that natural gas pipeline projects completed in 2024 increased the country’s liquefied natural gas (LNG) takeaway capacity by 17.8 billion cubic feet per day (bcfd). Takeaway capacity refers to the maximum amount of gas a pipeline can transport away from a production area or storage facility on a daily basis. The U.S. produced a record 103.2 bcfd of gas and consumed a record 90.4 bcfd of the fuel in 2024, according to U.S. EIA data.
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The EIA also noted that total pipeline capacity additions surpassed the previous year’s additions for the second year in a row.
Projects completed in the “U.S. natural gas-producing Appalachia, Haynesville, Permian, and Eagle Ford regions … increased takeaway capacity by approximately 6.5 bcfd (to) deliver natural gas from the producing regions to demand centers in the mid-Atlantic and along the U.S. Gulf Coast,” the agency said in a note.
An additional “five pipeline projects completed last year in Texas and Louisiana increased capacity to deliver natural gas to LNG export terminals by approximately 8.5 bcfd.”
The agency also added that a handful of other relatively small interstate and intrastate pipeline projects added another almost 3.0 bcfd.
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Qatar to Supply Natural Gas to Syria via Arab Pipeline
Almost exactly 12 years ago, we explained that the sequence of events that would define the face of the Middle East, and spark one of the bloodiest conflicts in the region in ages, namely the relentless proxy war seeking control over Syria, was prompted by nothing more than access to commodities in general, and a Qatari gas pipeline passing through Syria and onward to Europe in particular. And so, the war that saw the birth and death (and eventual subsequent rebirth) of ISIS, the emergence of countless CIA-funded Al Qaeda spinoffs, and ultimately the fall of the Assad regime, has gone full circle, because as Reuters reports,
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Qatar – the country whose massive natural gas deposits started it all – is set to provide Syria with gas via Jordan, ostensibly to “improve the nation’s meager electricity supply” and also to boost Syria’s new Al-Qaeda rulers.
The move, which is being spun as “the most significant tangible support for the new administration in Damascus by Qatar, one of the region’s sternest opponents of the now-deposed Bashar al-Assad and strongest backers of the rebels-turned rulers who replaced him”, is really just the first step in gas pipeline access from Qatar to Europe.
What is just as interesting is that according to the report, unnamed U.S. officials were quoted saying “the gas deal had a nod of approval from President Donald Trump’s administration without saying how this was communicated.” This is strange because Trump has been very eager to use US LNG exports to Europe to further balance the US trade deficit with the continent.
Qatar’s state news agency said an agreement had been signed between Qatar’s development fund and Jordan’s energy ministry to provide Damascus with “an approved supply of natural gas” via Jordan to help address Syria’s electricity shortage, without mentioning Syria’s new rulers or Washington. Qatar’s fund will provide Jordan’s energy ministry with a grant to supply Syria with the gas, the fund told Reuters.
Jordanian energy minister Saleh al-Kharabsheh told Jordan’s state news agency the initiative would be fully funded by Qatar’s fund.
The gas will be received at Jordan’s Red Sea port of Aqaba and pumped to Syria via the Arab Gas Pipeline, Jordanian energy minister al-Kharabsheh said. A segment of the pipeline runs from Aquaba north across Jordan to Syria. It is shown in the map below.
This initiative, far from predicated by Qatari concern about the welfare – or electricity needs – of Syria’s new Al-Qaeda leader, Ahmad al-Sharaa who was formerly head of the Hayat Tahrir al-Sham terrorist group, is merely the first step to reincarnating Qatar’s ambitions to provide Europe via a yet to be constructed gas pipeline while using Syria’s puppet regime as a smokescreen….
to allow transit of Qatar’s copious and cheap gas deposits located in the North Field, the largest natural gas field in the world, which for years has been in desperate need of clients.
The gas – in the current iteration – would be transferred from Jordan via a pipeline to the Deir Ali power plant in southern Syria. The move will initially boost the Deir Ali power plant’s output by 400 megawatts per day, an amount that would “gradually increase”, according to the Qatari fund’s statement. Estimates of Syria’s recent power capacity range up to around 4,000 MW.
The U.S. green light and efforts to encourage a deal between Kurdish forces in Syria’s north and Damascus suggest the US remains actively engaged in Syria, despite Washington moving more cautiously than European states to ease sanctions.
Ever since the latest US-backed coup in Syria late last year (not to be confused with the US-backed coup in Ukraine), the country has been suffering from severe power shortages, with state-supplied electricity available just two or three hours a day in most areas. Damage to the electricity grid means that generating or supplying more power is only part of the problem.
Damascus used to receive the bulk of its oil for power generation from Iran, but supplies have been cut off since the terrorist Islamist cell of Hayat Tahrir al-Sham led the ouster of Tehran-allied former president Assad in December, and was installed as the new ruler of Syria with western blessings.
The interim government has pledged to quickly ramp up power supply, partly by importing electricity from Jordan and using floating power barges that have yet to arrive.
Jordan has reportedly received U.S. approval to move forward with the supply of up to 250 MW of electricity during non-peak hours. However, Syria still needs to make fixes to its electricity grid and solve other technical issues before the supply, expected at around 250 megawatts during non-peak hours, can begin, the sources said.
“The internal network in Syria is not yet ready to receive this and needs a significant amount of work. Additionally, some matters are still unclear about financing of the agreement,” said Ibrahim Seif, a former Jordanian minister of energy and mineral resources.
A Western diplomat briefed on the Qatari gas plan said it came as part of an effort by Doha to follow up political backing from Gulf Arab states including Saudi Arabia and Qatar with tangible help to support Syria’s new rulers.
“They are very keen to finally give something, even if it won’t make a huge difference,” the diplomat said, while not saying that Qatar’s leaders are far more interested in taking the project to its next stage, where Northern Field gas will be directly transported by Syria via pipeline, and from there move on to Turkey and onward, to Europe.
Gulf backing has largely not been matched by official, tangible assistance due to U.S. sanctions on Syria, despite a waiver issued in January that allowed for some transactions, including on energy. But the exemption did not remove any sanctions, and states and entities looking to engage with Syria have sought additional guarantees.
Reuters reported last month that Qatar was holding off providing Syria’s new rulers with funds to increase public sector pay due to uncertainty over whether the transfers would breach U.S. sanctions.
https://oilprice.com/Energy/Natural-Gas/Qatar-to-Supply-Natural-Gas-to-Syria-via-Arab-Pipeline.html
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Israel awards natural gas exploration licences to BP, Socar and NewMed
Israel awarded licences to BP (BP.L), opens new tab, Azeri national oil firm Socar and local company NewMed Energy (NWMDp.TA), opens new tab on Monday to explore for natural gas in Israeli waters as the country seeks to boost domestic gas reserves and expand exports. In 2023 the trio jointly placed a bid for two offshore blocks in a fourth licensing round. Israel’s Energy Ministry said that additional licences are expected to be granted and a fifth bidding round is planned for later this year.
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As part of the licences for the so-called Cluster I near the Leviathan field, Socar will act as operator of the exploration consortium while BP will be involved in Israel’s natural gas sector for the first time. NewMed is already the largest stakeholder in Leviathan, the giant offshore field operated by Chevron (CVX.N), opens new tab.
Each company will hold about a third of the rights in each licence.
Cluster I is a 1,700 sq km area located in the Mediterranean at the northern part of Israel’s economic waters. The consortium is expected to conduct seismic and geological surveys in the first phase of exploration, with drilling in a second phase based on survey results.
“Natural gas is a strategic asset that strengthens our economic and diplomatic standing worldwide, particularly in the Middle East,” said Energy Minister Eli Cohen. “That’s why we are working to expand natural gas production for both the domestic market and exports, especially in these times.”
The gas-rich offshore basin straddling Egypt, Israel, Cyprus and Lebanon has drawn some of the world’s top energy companies in recent years, particularly as Europe scrambles to secure supplies to replace Russian gas in the wake of Russia’s invasion of Ukraine.
Israel is positioning itself as a regional energy hub and has committed to supplying natural gas to Europe, which has been diversifying away from Russia.
Exploration for oil and gas resources is a high-risk, high-reward business that includes seismic surveys and the drilling of wells, a process that can take several years.
The ministry reported this month that Israel’s natural gas exports to Egypt and Jordan rose 13.4% in 2024.
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GASCADE to Convert 249 Miles of Natural Gas Pipeline in Germany for Hydrogen Transport in 2025
(P&GJ) — GASCADE Gastransport GmbH has begun the initial hydrogen filling of the first section of its ‘Flow – making hydrogen happen’ program. The project involves converting 249 miles (400 km) of an existing natural gas pipeline to transport hydrogen, with completion expected by the end of 2025. The repurposed pipeline will form part of a north-south hydrogen corridor in Germany.
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As part of Germany’s hydrogen core network, this is the first large-scale hydrogen pipeline conversion of its kind globally. Once fully operational, it will serve as a key north-south hydrogen transport corridor, providing essential infrastructure for future hydrogen distribution and reinforcing GASCADE’s role in the energy transition.
“With this conversion, GASCADE is not only demonstrating its technological expertise and innovative know-how but also sending a strong signal for the hydrogen economy. We are proud to be starting the commissioning of the first large-scale hydrogen pipelines in Germany now. This provides planning certainty for the market ramp-up of the value chain worldwide,” said GASCADE Managing Director Christoph von dem Bussche.
The Flow project focuses on adapting existing infrastructure to support hydrogen transport quickly and cost-effectively, reducing the need for new pipeline construction. “Converting the pipelines creates the basis for a safe and efficient hydrogen supply in Germany,” explained GASCADE Managing Director Ulrich Benterbusch.
By initiating the first hydrogen filling, GASCADE is pioneering hydrogen transport in Germany, aligning with the country’s climate goals. The converted pipeline is expected to reduce CO₂ emissions and promote renewable energy integration.
“Our vision is to create a sustainable and climate-friendly energy future. With Flow – making hydrogen happen, we are setting a new standard in the industry and showing that we are successfully taking the necessary steps. I would like to express my particular gratitude to all colleagues involved for their great commitment,” added Flow program manager Dirk Flandrich.
This milestone underscores Germany’s push toward a hydrogen-based energy economy, with GASCADE leading the way in transforming natural gas infrastructure to support a low-carbon future.
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Natural Gas / LNG Utilization / Bio-LNG
Egypt : Egypt expands LNG infrastructure with new regasification agreements
Egypt’s Minister of Petroleum and Mineral Resources, Karim Badawi, recently held discussions with Steven Kobos, CEO of the U.S.-based LNG solutions company Excelerate Energy, to explore leasing floating storage and regasification units (FSRUs). Their talks focused on strengthening Egypt’s LNG sector through technical collaboration and trade partnerships, according to a ministry statement.
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In addition to this initiative, a government delegation will travel to Germany later this month to finalize a lease agreement for another regasification unit.
Egypt is also preparing to sign an agreement with Cyprus to lease an FSRU that will be stationed in the country to help meet peak energy demand during the summer.
The government is further expanding its regasification capacity in the Red Sea and Ain Sokhna.
Currently, two regasification vessels are docked in the Red Sea, and plans are in place to bring a third unit to Ain Sokhna by June 2025.
Additionally, a fourth unit from Turkey is expected to be operational this summer, reinforcing Egypt’s energy security strategy and boosting its LNG infrastructure.
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Ukraine’s Naftogaz buys 100 million cbm more LNG from Orlen
Ukraine national oil and gas company Naftogaz has signed a contract with Orlen, one of the largest oil industry corporations in Central and Eastern Europe, for the supply of an additional 100 million cubic metres (cbm) of liquefied natural gas (LNG). The fuel will come from a shipment of US LNG in April. After regasification, it will be transported to the Polish–Ukrainian border. This is the second gas supply deal this month under the companies’ Memorandum of Understanding (MoU), following an earlier agreement for the supply of 100 million cubic metres of gas from an LNG cargo.
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Roman Chumak, Acting Chairman of the Board at Naftogaz of Ukraine, said, “Stable gas supplies remain our top priority. Cooperation with Orlen expands Ukraine’s LNG import capacity and enhances energy security. We are diversifying supply sources to ensure a reliable and accessible gas supply, especially amid ongoing Russian attacks on our infrastructure.”
The gas will be transported to Ukraine and used to create strategic gas reserves, which are crucial for building supplies for the country’s next heating season.
Ireneusz Fąfara, CEO and President of the Orlen Management Board, said it would continue to develop its trading expertise and leverage experience in the US market, which enables it to provide attractive commercial terms to partners.
“At the same time, we are proud to contribute to Ukraine’s energy diversification, reinforcing our neighbour’s energy security,” he said.
Yesterday Ebba Busch, who is Swedish Deputy Prime Minister and Minister of Energy, Business, and Industry, and Ukrainian Energy Minister German Galushchenko signed an MoU to strengthen cooperation in energy and green transition efforts in Brussels.
The agreement focuses on expanding collaboration in nuclear energy, energy security, and advancing the industrial green transition. Sweden has extensive experience in integrating renewables into its grid.
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LNG developer secures 600 MW power plant, 120 MW BESS in Ireland
Developer Shannon LNG has obtained permission from the Irish planning authorities for a 600 MW regasification unit and a 120 MW battery energy storage system (BESS) in County Kerry. It is unclear when the plant will be built. Renewable energy advocates and opposition politicians are calling on the state to overturn the permit, citing Shannon LNG’s separate plans to construct a controversial LNG terminal near the gas plant.
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Ireland’s planning body An Bord Pleanála has granted permission to controversial group Shannon LNG to develop a power plant in County Kerry. The planning permit covers the construction of three 30-foot-high turbine structures, each containing a 200 MW combined cycle gas turbine (CCGT), as well as a 120 MW BESS and several ancillary developments.
The proposed power plant will generate electricity for its own needs and as well as for export to the national grid via a 220 kV connection. It will be located in County Kerry, on land that is currently predominantly in agricultural use.
LNG controversy
Shannon LNG is a subsidiary of United States-based New Frontier Energy. Separately, Shannon LNG is planning a liquid natural gas pipeline in Ireland, which is facing strong opposition from climate groups who have expressed concerns about its impact on Ireland’s climate targets and local environment.
It is not clear yet if the proposed plant will be powered by the proposed LNG facility. However, several campaigners have spoken against the decision to greenlight the Kerry power plant, citing concerns over LNG and pollution.
Ciarán Ahern, the climate and energy spokesperson for government opposition party, Labour, said the approval “completely flies in the face” of Ireland’s climate goals.
“The doors are being opened for the further importation of highly polluting fracked gas. This cannot be allowed to proceed,” he said, appealing directly to the government to intervene.
He accused the government of rolling back on previous assurances Ireland would not import fracked gas.
The government has already proposed a floating LNG terminal to be used as an emergency reserve. Ahern said the construction of a permanent plant with no defined lifespan is “10 times worse” than the other proposal.
He called for more focus on developing Ireland’s existing renewable energy capacity instead of working with for-profit US energy firms.
Energy security
Proponents of LNG development and gas power plants argue such projects will create jobs and strengthen Irish energy security.
An Bord Pleanála previously refused planning permission for the power plant project, but the decision was later challenged by Shannon LNG and a review was ordered by the High Court. The judge said the planning authority had not considered that the absence of a major storage facility for natural gas was a risk for security of electricity supply.
Sean Kelly, MEP for Ireland South, welcomed the authority’s decision to grant permission.
“I’ve been working with my friends in Shannon LNG for a good number of years. It has been frustration after frustration, but thankfully today there was good news,” he said, adding the plant would be important meet Ireland’s energy security needs, while the battery storage “will ensure that renewable energy we generate can be stored and utilized.”
In its decision, An Bord Pleanála said the addition of BESS would help mitigate the increase in greenhouse gas emissions caused by the operation of the power plant. It included detailed plans on how to mitigate environmental disruption and conserving the area and natural habitat.
The BESS plan comprises 27 lithium-ion battery containers, approximately 4.5MWh each, and ancillary power conversion system (PCS) skids, as well as a step-up transformer and sound retention wall.
It said the operation use of the proposed development will expire on Dec. 31, 2050, unless a subsequent planning permission to continue operating has been secured.
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Global LNG Development
US: U.S. Reapproves $4.7 Billion Loan for Mozambique LNG Project
Top 10 The U.S. Export-Import Bank has reauthorized a $4.7 billion loan for TotalEnergies’ Mozambique liquefied natural gas (LNG) project, initially approved during the Trump administration but delayed due to security concerns in the Cabo Delgado region. This funding is pivotal for the $20 billion initiative, positioning Mozambique as a significant LNG exporter. The project faced setbacks in 2021 when Islamist insurgencies prompted TotalEnergies to halt operations. With improved security conditions, construction is set to resume, though environmental groups express concerns over potential ecological and social impacts. The reapproval underscores the U.S. commitment to global energy projects and Mozambique’s economic development.
https://www.africa.com/u-s-reapproves-4-7-billion-loan-for-mozambique-lng-project/
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US: African Energy Chamber thanks Trump for supporting Mozambique LNG project
The African Energy Chamber (AEC), presumably the voice of Africa’s energy sector, has expressed its sincere appreciation to the Trump administration for its support in advancing the Mozambique LNG project, an initiative led by TotalEnergies that AEC believes is set to reshape the energy landscape in Mozambique and across Africa.
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The U.S. Export-Import Bank has approved its $4.7 billion loan for the project, a decision the AEC said provides a much-needed boost to one of the continent’s most significant energy investments.
The reauthorisation of the funding, according to the AEC, marks a pivotal moment in the ongoing development of Mozambique’s natural gas resources, which have the potential to transform the nation’s economy and solidify Africa’s position in the global energy market. The approval, initially granted during the Trump administration’s first term, signals a critical shift in US policy – one that recognises the importance of US leadership in fostering energy security and economic development in Africa, added the AEC.
“This project, which has been on hold since 2021 due to security concerns in the Cabo Delgado province, is now positioned to proceed thanks to the renewed backing from the U.S. The Mozambique LNG project represents one of the largest LNG investments in Africa – reaching a landmark $20 billion final investment decision in 2019 – with the potential to not only stimulate the Mozambican economy, but also provide a key source of natural gas to meet the growing energy demands of Asia and other international markets. Targeting approximately 65 trillion cubic feet of recoverable natural gas, the project features a planned capacity of 13 MTPA with expansion capacity of up to 43 MTPA, playing a crucial role in the global transition to more sustainable energy sources.”
The decision to approve the funding will also support American jobs, as U.S. subcontractors are expected to receive up to 30% of the contract value, further strengthening the economic ties between the U.S. and Africa. This partnership, said the AEC, demonstrates the value of American investment in African natural gas and energy development, underscoring the shared commitment to global energy security.
“This development underscores the Trump administration’s recognition of the crucial role energy investments play in fostering economic growth, security and stability in Africa. By backing the Mozambique LNG project, the administration has reinforced its commitment to strengthening US influence in the region while contributing to a more diversified global energy mix.
“This decision also sets a strong precedent for future energy projects in Africa, signaling to international stakeholders that the US remains a reliable partner in driving sustainable development. The Mozambique LNG project is not only key to unlocking economic potential, but also serves as a model for future U.S.-backed initiatives focused on energy infrastructure, job creation and sustainable growth across the continent.”
“The AEC encourages ongoing collaboration between governments, investors and development partners to ensure the successful delivery of the Mozambique LNG project and similar ventures across Africa,” says NJ Ayuk, Executive Chairman, African Energy Chamber, adding: “The support of the U.S. government, along with the efforts of TotalEnergies and other key stakeholders is essential in driving Africa’s transition to a more diversified and sustainable energy future.”
AEC submitted: “Looking ahead, it is crucial for other international partners to reaffirm their commitment to the Mozambique LNG project, helping ensure it stays on track to reach its full potential. The development of Mozambique’s natural gas reserves is not merely an investment in energy – it is an investment in Africa’s future. With continued support from the U.S. and global partners, this vision will become a reality.”
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Iraq discusses possible deal to import gas from Turkey
Baghdad (IraqiNews.com) – The Iraqi Minister of Foreign Affairs, Fuad Hussein, and the Turkish Minister of Energy and Natural Resources, Alparslan Bayraktar, discussed on Sunday a possible deal related to gas imports from Turkey to meet Iraq’s needs for fuel to operate power plants.
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During their meeting in the Iraqi capital, Baghdad, the two sides discussed issues pertaining to oil, natural gas, and electricity as well as ways to expand their current energy sector cooperation in a way that reflects the close ties between Iraq and Turkey and serves their respective needs, according to a statement released by the Iraqi Foreign Ministry.
In addition to Turkey’s electricity supplies to Iraq to help cover the shortfall during times of high demand, the meeting covered strategies to encourage Turkish companies to increase their investments in Iraq’s oil and gas industries. It also covered the significance of finishing the electricity interconnection project by putting the required technical procedures in place as soon as possible.
To help fulfill some of the demands of the Kurdistan region of Iraq and the city of Mosul, the two parties decided to boost the amount of power that Turkey will supply to Iraq.
The two sides also talked about expanding Iraq’s oil export capacity to reach the European market by extending the contract for the Iraq-Turkey oil pipeline, which carries oil from northern Iraq to the Turkish port of Ceyhan.
During a separate meeting with the Iraqi Minister of Electricity, Ziyad Ali Fadel, the Turkish minister stated that the Iraq-Turkey electrical interconnection project would raise electricity supplies to Iraq to 600 megawatts in the upcoming months, according to a statement cited by the Iraqi News Agency (INA).
Bayraktar also expressed his country’s interest in strengthening cooperation with Iraq in several areas, especially the energy sector.
Last July, the Turkish and Iraqi governments successfully established an electrical interconnection line that currently provides Iraq with 300 megawatts of electricity.
The Iraqi government is apparently attempting to expand its electricity imports from neighboring Turkey following statements made by Iraqi officials last week that the United States’ sanctions waiver for the import of Iranian electrical power has been canceled.
Additionally, the spokesperson of the US Department of State, Tammy Bruce, said earlier in March that the US administration is urging the Iraqi government to eliminate its dependence on Iranian sources of energy as soon as possible.
Iraq is primarily dependent on Iranian energy imports, but in addition to diversifying its energy supplies, it has lately made numerous investments to begin utilizing flared gas and renewable energy to produce power.
https://www.iraqinews.com/iraq/iraq-discusses-possible-deal-to-import-gas-from-turkey/
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South Korea: Nakilat marks construction of 6 gas carriers in HSHI in South Korea
Nakilat, a leader in liquefied natural gas (LNG) shipping and maritime transportation, has celebrated a significant milestone with a steel cutting ceremony to commence the construction of six gas carriers at HD Hyundai Samho (HSHI) shipyard in South Korea.This milestone is part of Nakilat’s strategic fleet expansion, reinforcing its commitment to meeting the growing demand for safe and efficient gas transportation.
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The ceremony was attended by senior officials from Nakilat and HD Hyundai Samho, along with distinguished guests, who witnessed the official commencement of construction for two cutting-edge LNG carriers and four modern liquefied petroleum gas (LPG)/ammonia gas carriers.
The LNG carriers, each with a capacity of 174,000 cubic metres; and the LPG carriers, with a capacity of 88,000 cubic metres each, are scheduled for delivery between 2026 and 2027.
“This milestone underscores Nakilat’s dedication to expanding its world-class fleet and supporting Qatar’s leadership in global gas supply. Our investment in these advanced vessels highlights our dedicated focus on operational excellence, sustainability, and the adoption of cutting-edge maritime technologies, enabling us to provide innovative and flexible shipping solutions to meet the evolving needs of the global energy shipping sector,” said Abdullah al-Sulaiti, chief executive officer of Nakilat.
The new vessels will feature state-of-the-art propulsion systems and fuel-efficient technologies, aligning with the company’s commitment to eco-conscious shipping solutions.
By integrating the latest advancements in energy efficiency and environmental sustainability, Nakilat remains committed to playing a pivotal role in LNG and LPG transportation, contributing to the evolving energy landscape while upholding the highest standards of safety, reliability, and environmental responsibility.
Nakilat had last week witnessed steel cutting ceremony for eight of its new LNG carriers at Hanwha Ocean Shipyard in South Korea.
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Ukraine: Orlen to supply more LNG to Ukraine
Orlen and Naftogaz of Ukraine have signed a natural gas supply contract, the second agreement under their cooperation framework established earlier this year. This contract ensures the delivery of approximately 100 million cubic metres (mcm) of natural gas sourced from the US, with shipments beginning in April. Naftogaz Ukraine acting chairman of the board Roman Chumak said: “Stable gas supplies remain our top priority. Cooperation with ORLEN expands Ukraine’s LNG import capacity and enhances energy security. We are diversifying supply sources to ensure a reliable and accessible gas supply, especially amid ongoing Russian attacks on our infrastructure.”
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The liquefied natural gas (LNG) cargo will be delivered to the Świnoujście LNG terminal in Poland, where it will undergo regasification.
Following this process, the natural gas will be transported to the Polish-Ukrainian border, ensuring a steady supply for Ukrainian consumers.
Orlen Management Board president and CEO Ireneusz Fąfara said: “Another contract for the supply of gas to Naftogaz highlights the competitiveness of ORLEN’s offer. We continue to develop our trading expertise and leverage our experience in the US market, enabling us to provide attractive commercial terms to our partners. At the same time, we are proud to contribute to Ukraine’s energy diversification, reinforcing our neighbour’s energy security.”
The first contract between Orlen and Naftogaz, signed earlier this month, involved a similar supply arrangement of approximately 100mcm of gas.
This gas will be sourced from an LNG cargo delivered to the terminal in Klaipėda, Lithuania.
It will then be further transmitted via the GIPL pipeline to the interconnector on the Ukrainian border in Drozdowicze.
The agreements are part of a broader framework to enhance Ukraine’s energy security to diversify the country’s supply sources and routes.
Both transactions are based on a memorandum of understanding signed earlier this year, emphasising cooperation in natural gas supply.
Orlen strengthened its LNG supply chain throughout central and eastern Europe by securing a five-year deal with Lithuania’s KN Energies in October last year.
https://www.offshore-technology.com/news/orlen-supply-lng-ukraine/
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Bermuda: Golar LNG secures $1.2bn refinancing deal with Chinese consortium
Bermudian-based liquefied natural gas specialist Golar LNG has signed finance lease agreements with a group of Chinese leasing companies to refinance $1.2 billion in existing debt tied to its floating LNG unit, Gimi, operating off the West African coast. The deal, structured as a sale and leaseback agreement, is expected to close in the second quarter of 2025, pending final documentation and third-party approvals. It comes with a 12-year term and a 17-year amortisation schedule, with quarterly repayments throughout the lease.
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“Upon closing and repayment of the existing debt facility, Gimi MS Corporation is expected to generate net proceeds of approximately $530 million,” the company said. “Golar will benefit from 70 per cent of these proceeds, equivalent to approximately $371 million.”
The FLNG Gimi is a key asset in BP’s Greater Tortue Ahmeyim Phase 1 project, which lies approximately 40 kilometres offshore. The unit received its first feed gas from BP’s floating production storage and offloading GTA on January 18.
The GTA development, considered the deepest subsea infrastructure in Africa with wells drilled as deep as 2,850 metres, is expected to deliver 2.3 million tonnes of LNG annually for more than two decades.
BP operates the project with a 56 per cent stake, alongside partners Kosmos Energy (27 per cent), Petrosen (10 per cent) and SMH (7 per cent). Despite a recent gas leak, BP has continued gas production uninterrupted, with the development remaining one of its largest undertakings globally.
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Taiwan signs onto $44 billion Alaska LNG project, daring Korea to follow
Taiwan will partner with Alaska Gasline Development Corporation (AGDC) on a $44 billion pipeline in a move likely to secure it a bargaining chip in tariff negotiations with the United States — and further pressure on Korea to follow suit. The Taiwanese state-run energy company CPC Corporation and AGDC signed a letter of intent to buy liquefied natural gas (LNG) and to seek potential investment in the $44 billion project on Thursday, the country’s Ministry of Economic Affairs told the Taipei Times in a report published Friday without detailing CPC’s planned contributions.
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The 1,300-kilometer (807-mile) system will transport gas from North Slope and ship up to 20 million tons of LNG annually starting as early as 2030.
Taiwan’s deal was signed in Taipei as a delegation of representatives from AGDC and Glenfarne Group, the project’s developer, embarked on a trip to Asia scheduled to run from Wednesday to March 30. The team is visiting Korea, Japan and Thailand as well, in a bid to draw in investments from U.S. allies in the region.
Alaska Gov. Mike Dunleavy, who is part of the delegation, will meet with Minister of Trade, Industry and Energy Ahn Duk-geun on Monday as part of a two-day visit to Korea.
U.S. President Donald Trump has been aggressively pitching the project to Asian allies — namely Korea, Japan and Taiwan — urging the countries to expand LNG supplies from the United States to help reduce their trade deficits. “My administration is also working on a gigantic natural gas pipeline in Alaska, among the largest in the world, where Japan, South Korea and other nations want to be our partner, with investments of trillions of dollars each,” Trump said on March 4.
Japan has already expressed its interest in purchasing LNG from Alaska. Following a summit in Washington on Feb. 7, Trump announced that “Japan will soon begin importing historic new shipments of clean American liquefied natural gas in record numbers,” adding the countries are seeking to establish “a joint venture” for Alaskan oil and gas imports.
Seoul has been scrambling to gain ground in its trade negotiations with Washington, especially with the April 2 deadline for new reciprocal tariffs approaching.
Bloomberg reported on Sunday that Trump is set to unveil “widespread reciprocal tariffs” on nations, but in a more targeted than sprawling approach, citing sources familiar with the matter. Some countries could be excluded from the upcoming announcement, and no industry-specific measures will be included. The tariff measures are likely to take immediate effect.
Trump has reportedly cited Korea, along with the European Union, Mexico, Japan, Canada, India and China, as “trade abusers.”
Ahn completed another two-day visit to Washington on Friday, coming quickly on the heels of the minister’s visit three weeks ago.
Ahn met U.S. Commerce Secretary Howard Lutnick to once again request favorable treatment for Korea regarding the upcoming reciprocal tariff, citing the close industrial ties between the two economies.
“High-ranking officials from the Industry Ministry are making a series of back-to-back trips to the United States in order to ease rising uncertainty surrounding a round of announcements from the U.S. government,” Ahn said in a release Saturday.
During a news conference in Washington on Friday, the minister told reporters that the reciprocal tariffs will likely take effect in April.
“It appears most nations won’t be able to avoid tariffs,” he said, but added, “Addressing U.S. tariff policies is not a single-round match.”
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Australia: Woodside signs long-term LNG supply deal with China Resources Gas
March 17 (Reuters) – Australian energy giant Woodside Energy (WDS.AX), opens new tab said on Monday it had signed a long-term sale and purchase agreement with China Resources Gas International for the supply of liquefied natural gas (LNG) to China.
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Under the terms of the agreement, Woodside will supply approximately 0.6 million metric tons of LNG annually over 15 years, with deliveries set to commence in 2027.
The deal is Woodside’s first standalone long-term sales agreement with a Chinese buyer, and it marks the first instance of China Resources committing to a 15-year procurement of LNG, the Australian company said.
The agreement is the fourth such agreement the energy supplier has signed for the LNG-hungry Asian market since early 2024, as the world races towards clean energy.
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LNG as a Marine Fuel/Shipping
Argentina to Tender for LNG Cargoes Next Week to Meet Winter Demand
(Reuters) — Argentina will launch a tender process for five to six liquefied natural gas (LNG) cargoes next week to satisfy gas demand during the upcoming southern hemisphere winter, a government source said on March 13. “Work is underway to launch the bidding process on March 17 for five or six shipments. The plan is to receive bids the week of March 25,” the source said.
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Argentina’s first LNG tender last year resulted in the import of 10 cargoes, out of a total of 30 that year.
Argentina has not requested an additional floating regasification plant for this winter, an executive from Excelerate Energy, which has the only import facility in the South American country, told Reuters on Wednesday on the sidelines of the CERAWeek conference in Houston.
The number of LNG shipments “is going to be less than last year because there will be more natural gas availability, assuming comparable weather,” Daniel Gonzalez, secretary of Energy and Mining Coordination, told reporters at the conference.
Argentina has been boosting production in its Vaca Muerta formation, the world’s second-largest unconventional gas reserve and fourth-largest oil reserve, which is reaching a new monthly record, as the country aims to reduce energy imports.
In 2024, the country recorded its largest energy trade surplus in 18 years, reaching $5.67 billion, after years of trade deficits that strained its finances.
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Bangladesh: BD to import four spot LNG cargoes in Apr
Bangladesh’s state-run Rupantarita Prakritik Gas Company Ltd (RPGCL) has floated one fresh tender and re-issued one to purchase two spot LNG cargoes respectively for April 23-24 and April 14-15 delivery windows. Earlier, it awarded two spot LNG tenders for early April delivery windows. The bid winners will deliver the cargoes at either of the country’s two floating storage re-gasification units (FSRUs), located on Moheshkhali island. The RPGCL reissued a tender for April 14-15 delivery as it did not find a suitable offer, said a senior RPGCL official.
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The RPGCL, a wholly-owned subsidiary of state-run Bangladesh Oil, Gas, and Mineral Corporation, or Petrobangla, looks into LNG trades in Bangladesh.
The volume of the spot LNG cargoes will be around 3.36 million MMBtu each.
Bangladesh bought four spot LNG cargoes for March delivery windows, which is the highest purchase of LNG from the spot market in a month.
Riding on high volume of LNG imports, Bangladesh’s LNG re-gasification reached the highest level ever at 1,022 million cubic feet per day last week, according to official data of Petrobangla.
The previous highest RLNG was recorded on April 20, 2024 when the country re-gasified around 1,005 mmcfd during the heat wave in last summer. The RPGCL might continue buying high volumes of spot LNG cargoes for the next several months to meet the summer demand.
Bangladesh previously awarded its latest spot LNG cargo tender to TotalEnergies Gas and Power Ltd for April 12-13 delivery window at US$14.22 per million British thermal unit (MMBtu).
Apart from spot LNG cargoes Bangladesh has been importing LNG from its two existing long term LNG suppliers – Qatargas and OQ Trading International – for re-gasification in its two operational FSRUs.
https://thefinancialexpress.com.bd/trade/revouge-ujjwala-foundation-stand-by-cancer-patients
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Lithuania: Klaipeda LNG terminal completes 500 LNG transfer operations
The operator of the Klaipeda LNG terminal, KN Energies, has marked a significant milestone in mid-March – since the start of operations, 500 ship-to-ship LNG transfer operations have been completed at the terminal. The 500th cargo arrived at the Klaipeda LNG terminal from the US. LNG shipments from the US have been delivered to Klaipeda since August 2017. Since then, Klaipeda has received a total of 78 American LNG cargoes.
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“The 500th LNG transfer operation is an important achievement not only for the Klaipeda LNG terminal, but also for the energy security of the entire region. This is the result of the joint efforts of all parties involved – the KN Energies team, which has been effectively planning and executing operations for a decade, the technical operator of the FSRU Independence, Hoegh LNG Klaipeda, and our terminal clients, including one of the largest, Ignitis. For 10 years, the terminal has ensured a stable gas supply to the region, with zero safety incidents recorded during this period. I extend my thanks to everyone who has contributed and will continue to contribute to this success story and the adherence to the highest operational standards,” said Mindaugas Navikas, Chief Commercial Officer of KN Energies.
Out of the 500 transfer operations, more than 100 were related to Ignitis activities. Symbolically, Ignitis was the client for both the first LNG cargo, which arrived in October 2014, and the 500th cargo delivered to Klaipeda on 15 March 2025.
“A reliable partnership is especially important for our business, and we have been successfully nurturing it for many years with our strategic partner, KN Energies. This collaboration ensures a stable and efficient supply of LNG, allowing us to promptly respond to market changes and client needs. The terminal is a strategic link to the global market, enabling us to supply natural gas from any country in the world, thus ensuring supply flexibility and competitiveness,” added Arturas Bortkevicius, CEO of Ignitis.
So far in 2025, 24 LNG transfer operations have been carried out in Klaipeda, with a total of 83 in 2024. Since the terminal’s launch in October 2014, approximately 205 TWh of LNG have been transferred. The majority originated from Norway (52%) and the US (37%), but Klaipeda has also received LNG from countries like Nigeria, Trinidad and Tobago, Egypt, Algeria, and others. The terminal serves clients from five countries – Lithuania, Poland, Latvia, Norway, and Estonia.
The Klaipeda LNG terminal, consisting of the FSRU Independence, a jetty, and a connecting gas pipeline, was the first terminal of its kind in the Baltic region and across Northern Europe, and the second in Europe overall. In December 2024, KN Energies assumed ownership of the FSRU Independence, which was registered under the Lithuanian flag in the Register of Seagoing Ships of the Republic of Lithuania. The Law on Liquefied Natural Gas Terminal of the Republic of Lithuania mandates ensuring the terminal operations until 31 December 2044.
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Technological Development for Cleaner and Greener Environment Hydrogen & Bio-Methane
Japan: The Japanese town turning cowpats into hydrogen fuel
In Japan, a smelly waste product is being reimagined as a potential clean fuel of the future that is powering cars and tractors. We’re being eyed suspiciously by dozens of cows. Their breath fogs cartoonishly from their nostrils. It’s a brisk morning in snowy Hokkaido, an island in the north of Japan. The cold air carries the distinct scent of cow manure – a smelly yet familiar side-effect of the region’s thriving dairy industry. Accounting for 20% of the country’s landmass, this island is the second-largest in Japan. It’s also home to over a million cows, which produce over half of the country’s milk and dairy products.
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We are visiting one farm in Hokkaido that wants to transform the source of the pungent aroma in the air into something valuable. They are turning cattle manure into hydrogen.
When it is burned, hydrogen does not emit carbon, making it an attractive alternative to fossil fuels. There are widespread hopes it could be used as a sustainable fuel to heat homes and power cars, trains, aircraft and ships in the future.
But the most common way of producing hydrogen today involves using methane – a fossil fuel piped up from deep underground, meaning it is still associated with significant carbon emissions. Hydrogen can also be produced by splitting water using electricity, but this can be expensive and is only low carbon if renewable sources of electricity are used.
The Shikaoi Hydrogen Farm, however, is using a different source – a waste product that there is no shortage of on Hokkaido. Around 20 million tonnes of cow manure is generated in Hokkaido annually. If not treated correctly, it can be an environmental burden, producing significant methane emissions as well as affecting water quality if allowed to leak into streams and rivers. So can it instead be used as a source of sustainable energy?
“This project to produce hydrogen from livestock manure originated in Japan and is unique to this place,” says Maiko Abe from Air Water, one of several companies involved in the hydrogen farm project. We are visiting the facility in Shikaoi, a town in central Hokkaido, to film an upcoming episode of the BBC’s TechXplore focusing on Japan. “Shikaoi accounts for 30% of Hokkaido’s cow waste and urine, so it has great potential for renewable energy.”
Launched in 2015 by Japan’s Ministry of the Environment, the project aims to convert agricultural by-products into hydrogen to supply the local, rural community in a circular economy. The cow excrement and urine is collected from local dairy farms before being fed into a anaerobic digester at a central facility. Here bacteria break down the organic waste to produce biogas and a liquid fertiliser. The biogas is then purified into methane that is used to manufacture hydrogen.
The plant now has a hydrogen production capacity of 70 cubic metres (18,500 gallons), with an onsite fuelling station that can fill around 28 vehicles fitted with hydrogen fuel cells per day, says Abe. Although the fuel can be used by cars with fuel cells, the plant’s fuelling station has been specially designed to accommodate agricultural vehicles such as tractors and forklift trucks. These farm vehicles are difficult to electrify with batteries due to their size and the type of work they do. The hydrogen-powered vehicles are used around the farms’ sites, reducing the emissions that would otherwise be created by using other fuel sources.
Cattle-made-hydrogen is also stored in canisters that are transported to provide power and heat to other facilities in the area, including a local sturgeon fish farm and the nearby Obihiro Zoo.
Producing and storing hydrogen at scale can require large amounts of energy and infrastructure
But hydrogen isn’t without its problems. It needs to be stored in high-pressure tanks as a gas, and can be prone to leakage due to its low molecular weight. It can also degrade metal storage containers, leaving them embrittled, and is easily ignited and so requires additional safety precautions when handling it.
Hydrogen can also be stored as a liquid by chilling it to cryogenic temperatures of below –253C (-423F), but this can be energy intensive and requires large amounts of additional infrastructure.
Hydrogen has nearly three times the energy content of petrol (gasoline) when taken by mass alone. But its low molecular weight also means that by volume, the energy packed into a litre of liquid hydrogen is a quarter that of petrol. Put simply, as the lightest gas in the Universe, hydrogen takes up more space kilogram for kilogram than petrol. This means a lot more storage space is needed for hydrogen compared to fossil fuels like petrol, diesel and natural gas. It also means producing and storing it at scale can require large amounts of energy and infrastructure.
But as well as these hurdles, the hydrogen farm project in Hokkaido also faces other challenges specific to northern Japan’s climate.
Hokkaido’s subzero winters means new technologies are needed to produce the hydrogen stably without the small amounts of water vapour in the methane freezing.
Using agricultural waste as a methane source to produce hydrogen is relatively uncommon, but it ultimately uses the same process as is used to produce hydrogen from natural gas: steam reforming. Here, steam heated to 800C (1,472F) reacts with the methane to produce hydrogen, along with the byproducts carbon monoxide and carbon dioxide (CO2).
In the case of cow manure, however, says Abe, the project remains sustainable as this carbon originated in the grass the cows grazed on: “Since it was originally in the atmosphere, it is considered carbon neutral.”
In addition, it helps to prevent the methane that would otherwise have been emitted from the manure from getting into the atmosphere, where it is a potent greenhouse gas.
Leftover slurry from the manure after the biogas has been extracted is sprayed as fertiliser onto nearby fields, while formic acid – which is both used in and created by the processes – could be offered as a preservative for cattle feed, says Abe.
Currently, the electricity needed to produce and store the hydrogen comes from the national grid. But Abe says there’s potential to shift to green energy, given Hokkaido’s promising sea, wind and geothermal potential, thus reducing the carbon emissions of this electricity.
Still, other challenges remain. The high cost of the hydrogen compared to fossil fuels and low demand mean expanding the operation is difficult.
“The construction costs of hydrogen stations are very high,” says Abe. “Since hydrogen vehicles are not yet widespread, we’re keeping our filling capacity low to manage initial investment. As adoption increases, we’ll expand supply.”
To encourage hydrogen vehicle adoption in the area, hydrogen prices are subsidised by the plant, matching the cost of petrol. Hydrogen refuelling stations are also being developed in major Hokkaido cities like Sapporo and Muroran.
Japan is the world leader in hydrogen vehicles and has invested considerably in developing the technology. But for now battery-powered electric vehicles remain cheaper than hydrogen powered ones.
Though it’s unlikely that cow manure alone will ever meet Japan’s hydrogen demand, it could contribute significantly, and Shikaoi is creating a model for a circular economy that it hopes will show how costs can fall with the economies of scale.
And there is growing interest in other parts of the world in using waste materials to produce hydrogen, with pig dung, poultry waste and even coconut husks having been explored as potential feedstocks. In Thailand, vehicle manufacturer Toyota is even exploring the use of hydrogen made from chicken waste to fuel its vehicles.
Meanwhile, engineers at the University of Illinois Chicago in the US recently developed another promising method to make hydrogen involving manure. In their case, they used the manure, along with sugarcane waste and corn husks, to make biochar, a carbon-rich substance which vastly reduces the amount of electricity needed to convert water to hydrogen.
“We are the first group to show that you can produce hydrogen utilising biomass at a fraction of a volt,” says Meenesh Singh, a chemical engineer at the University of Illinois Chicago who led the project.
In the southern Japanese city of Fukuoka, on Kyushu, meanwhile, another waste product is being used to produce hydrogen – and here the dung is from humans.
For more than a decade, hydrogen has been created at the city’s sewage treatment plant for use in hydrogen-powered vehicles. Most recently it has been used to fuel a fleet of zero-emission rubbish trucks.
Akira Miyaoka, hydrogen utilisation manager for Fukuoka City, says trucks that transport daily products are the town’s main source of CO2, rather than large factories as in many other cities. “So we are working to reduce CO2 emissions from commercial trucks,” she says.
The initiative started as a collaboration between Kyushu University and Fukuoka City, but now involves several major companies including Toyota.
“Sewage is something that is steadily discharged every day in the daily lives of citizens, so by making effective use of that sewage and extracting hydrogen as energy, we can achieve local production and local consumption of energy,” says Miyaoka.
Generating hydrogen from human waste starts with water from various household sources – including showers, dishwashers and toilets – arriving at the treatment plant. As the water is cleaned, the residual sludge is kept as a source of biogas and converted into hydrogen.
“Sewage and biogas contain various impurities, so the process begins with the process of removing those impurities, which I think is a little different from other hydrogen production processes,” says Miyaoka.
In 2024, Toyota helped the city launch Japan’s first hydrogen-powered service vehicle fleet, including ambulances, delivery vans and bin trucks. Officials at the sewage treatment plant say it is capable of producing 300kg (661lbs) of hydrogen in 12 hours – enough to fuel 30 trucks.
The rubbish trucks head out six nights each week, each collecting 1.7 tonnes (3,700lb) of rubbish, all while running silently and emission-free on the bodily waste of the people they are collecting other waste from.
Fukuoka’s sewage-to-hydrogen fuelling station has been around since 2015, and several other countries around the world are now adopting a similar approach.
Concord Blue has developed waste-to-energy plants in Germany, India, Japan and the US, converting waste and biomass into hydrogen and bioenergy. Several water authorities in the UK are also working on projects to derive hydrogen from sewage.
A prototype race car has also been developed using sewage-derived hydrogen in the UK. The Warwick Manufacturing Group (WMG), in partnership with Severn Trent Water, is harnessing microbes that generate hydrogen fuel from waste. They anticipate the technology could hit the mainstream within five years, despite existing challenges. (Read about how sewage-powered cars could be the future of motorsport.)
On a larger scale, aviation accounts for 2% of global carbon emissions, and researchers in a UK lab have developed jet fuel made entirely from human sewage.
Still, despite the promise, all of these technologies have yet to be delivered at significant scale.
Whether in rural or city landscapes, the Japanese projects we’ve seen during in filming are inspiring because they have the local community at their heart.
While adoption of hydrogen cars has stalled, hydrogen truck adoption is increasing gradually and it is these larger heavier industrial vehicles that contribute most significantly per vehicle to greenhouse gas emissions.
By reimagining waste as a resource, these projects demonstrate that energy can be found in even the most unlikely of places.
https://www.bbc.com/future/article/20250314-how-japan-is-turning-cow-manure-into-hydrogen
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Romania: Romania Launches Ro-HydroHub, a EUR 140 Mln Hydrogen Technology Hub to Boost Green Energy
The Minister of Investments and European Projects, Marcel Boloș, attended today the official launch of the Romanian Hydrogen and New Energy Technologies Hub – Ro-HydroHub, a center of excellence dedicated to research and development of hydrogen-based technologies. The project, financed through the Smart Growth, Digitalization, and Financial Instruments Program 2021-2027 (PoCIDIF), benefits from an investment of nearly EUR 140 million, aiming to modernize the energy sector and accelerate the transition towards green energy.
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“Today we are not merely launching a project; we are laying the foundation for a new economic model for Romania—one rooted in innovation, sustainability, and technological excellence. I am confident that this European funding will mark a turning point in transforming Romania into an economy of the future. I remind you that during my previous mandate, we initiated negotiations with the European Commission to finance this high-potential project, designed to support the development of high-added-value products which can be assimilated by local industry,” stated Marcel Boloș, Minister of Investments and European Projects.
Following negotiations with representatives of the European Commission, Ro-HydroHub was accepted as a predefined project within PoCIDIF and will benefit from the support of the Management Authority throughout its implementation.
Led by the National Institute for Research and Development of Cryogenic and Isotopic Technologies – ICSI Râmnicu Vâlcea in partnership with POLITEHNICA University of Bucharest, the Technical University of Cluj-Napoca, and nine private-sector partners, Ro-HydroHub will become a strategic center for developing and integrating hydrogen-based technological solutions.
Ro-HydroHub will cover a wide spectrum of research, development, and innovation activities, including the following objectives:
- Development of technologies for hydrogen production, supply, and storage;
- Creation of advanced solutions for fuel cells and electrolyzers;
- Implementation of integrated hydrogen systems based on renewable sources;
- Technology transfer to companies and acceleration of industrial adoption of hydrogen-based technologies;
- Training a new generation of specialists through master’s and doctoral programs.
Thus, the Ro-HydroHub project will become a pole of excellence at national and European levels, strengthening Romania’s position in the green energy technology sector. The project anticipates collaboration with academia, the private sector, and European institutions to facilitate rapid adoption of innovative solutions and support the decarbonization objectives of the European Union.
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UK firm turns plastic waste into hydrogen, targets 35 tons daily for clean energy
AUK-based firm, Powerhouse Energy Group, has initiated operation of its Feedstock Testing Unit (FTU), which can convert waste plastics into hydrogen. The company recently showcased the FTU to 50 investors during a private event. The unit, located at the company’s Technology Centre in Bridgend, Wales, is a scaled-down representation of the company’s Distributed Modular Generation (DMG) technology.
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“Powerhouse is aware of the problems that have dogged using pyrolysis and gasification on waste, and hence, to date, we have focused our efforts on research and development, culminating in this FTU,” said Paul Emmitt, CEO of Powerhouse Energy Group.
Replicating core processes in controlled environment
The FTU processes 2.5 tons of waste plastic per day. While this is smaller than the anticipated 35 tons per day capacity of a future commercial unit, the FTU replicates the core processes and parameters in a controlled environment.
“The site has already proved the technology with several days of continuous running with good results, although as a demonstrator the project is not necessarily expected to run flat out all the time,” said a report.
“The unit also allows the company to develop the technology and to increase the efficiency of future commercial units.”
https://interestingengineering.com/energy/hydrogen-made-from-plastic-waste
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Europe’s Largest Green Hydrogen Plant Under Construction
Europe’s largest green hydrogen facility is underway in Germany, with the potential to reduce greenhouse gas emissions by up to 72,000 metric tons annually. The uniquely designed proton exchange membrane (PEM) water electrolyzer can supply the main plant it’s attached to with up to one metric ton of green hydrogen per hour to serve as a chemical feedstock. Once up and running, the 54MW PEM electrolyzer will generate over 8,000 tons of green hydrogen annually.
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The project is a collaboration between chemical sector heavyweight BASF and Siemens Energy. “The robust machine would primarily provide feedstock for chemical products, as demand is increasing for more output and less environmental waste,” reports Interesting Engineering. “Currently, hydrogen is used to produce ammonia, methanol, and vitamins.”
“Green hydrogen” is a label used to describe hydrogen produced using all renewable energies. It is more costly and therefore more rare than gray hydrogen, which is produced using fossil fuels and commonly consumed in the chemicals industry as well as other industrial sectors. Some industry insiders also make a distinction for hydrogen made using natural gas, seen as a bridge fuel between fossil fuels and clean energy, calling it “blue hydrogen.”
Green hydrogen has been touted as a potential cornerstone of the clean energy transition due to its utility in hard-to-abate sectors. In addition to its role as a chemical feedstock, hydrogen can be used as a combustive fuel. It burns at high temperatures like coal, but instead of producing greenhouse gas emissions, the combustion process leaves only water vapor behind. This makes it an attractive alternative for the notoriously emissions-intensive steelmaking, transportation, and shipping industries, among others.
But green hydrogen production has been slow to get off the ground. Despite ambitious global targets and high hopes for the sector’s disruptive potential, less than a tenth of the world’s planned green hydrogen projects had been implemented as of 2023. Tracking 190 projects over 3 years, a recent study identified “a wide 2023 implementation gap with only 7% of global capacity announcements finished on schedule.”
The authors of the study, entitled “The green hydrogen ambition and implementation gap”, identify three main reasons for the gap. The first reason is that green hydrogen is expensive to produce, and costs are continuing to climb. The second reason is insufficient offtake agreements, possibly due to industry anxieties about “the risk of becoming locked into an expensive and potentially scarce energy carrier.” Finally, the last reason is that robust policy measures must be implemented to de-risk investment in green hydrogen.
Germany’s BASF project managed to side-step some of these bottlenecks via significant government support and funding. According to Interesting Engineering, “The State of Rhineland-Palatinate and the German Federal Ministry for Economic Affairs and Climate Action provided up to €124.3 million for the plant’s construction.”
Moreover, BASF seems confident that by replacing gray hydrogen with green, it is offering a value addition that buyers will be excited about. “The commissioning of the electrolyzer makes it possible for us to support our customers in achieving their climate targets by offering them products with a lower carbon footprint,” says Katja Scharpwinkel, member of BASF SE’s Board of Executive Directors and Site Director Ludwigshafen.
While replacing gray hydrogen with green hydrogen is great news for the carbon footprints of individual companies and manufacturing life cycles, there is actually some doubt about whether producing green hydrogen is in fact the best use of renewable energies. In fact, a 2022 report by the International Renewable Energy Agency (IRENA) warned against the “indiscriminate use of hydrogen,” urging that policy-makers weigh their priorities carefully and consider that extensive use of green hydrogen “may not be in line with the requirements of a decarbonised world” and could even slow down the clean energy transition.
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