NGS’ NG/LNG SNAPSHOT – May 1-15, 2021
National News Internatonal News
NATIONAL NEWS
City Gas Distribution & Auto LPG
AG P Pratham Opens the First Two CNG Stations in Alappuzha Kerala
AG&P, the global downstream LNG and gas logistics company on May 6, announced the launch of its first two Compressed Natural Gas (CNG) stations in Alappuzha (Kerala), under its brand AG&P Pratham.
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The stations are co-located with Bharat Petroleum Corporation Limited’s (BPCL) St. Augustine Pump at Aroor, and Hindustan Petroleum Corporation Limited’s (HPCL) VAVA Fuels in Eramalloor. Aligned with the Government’s vision of facilitating the adoption of greener and smarter fuels, AG&P Pratham stations will provide almost any vehicle, including cars, auto-rickshaws, and heavy-duty transit vehicles such as buses and trucks, access to CNG.
AG&P holds 12 CGD licenses awarded by the Petroleum & Natural Gas Regulatory Board (PNGRB) to exclusively provide natural gas for everyday use in 31 districts in Tamil Nadu, Andhra Pradesh, Karnataka, Kerala, and Rajasthan. These exclusive rights cover the supply of PNG to households, industrial, commercial, non-commercial, and non-domestic exempt commercial (NDEC) establishments, and CNG for use in vehicles. Under the brand name AG&P Pratham, when fully operational the CGD networks will cover 278,000 square kilometers, 17,000 inch-km of pipeline, and over 1,500 new CNG stations.
https://www.theweek.in/wire-updates/business/2021/05/05/pwr15-agandp-pratham.html
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Rajasthan State Gas to participate in PNGRB bids for 9 districts
Jaipur: Rajasthan State Gas Limited (RSGL) will participate in the bidding for piped gas distribution lines in nine districts of the state. Additional Chief Secretary and RSGL Chairman of RSGL
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Subodh Agarwal said that the Petroleum and Natural Gas Regulatory Board (PNGRB) is soon going to open bidding process for domestic gas distribution through pipelines to many cities of the country, including Rajasthan.
He informed that the domestic gas distribution from the pipeline is cheap, 24 hours of gas availability and booking will get rid of the hassle. Agarwal said that the gas delivered from the pipe line is 42 per cent cheaper than the domestic gas cylinder. He said that the work of domestic gas distribution from pipeline in Kota is going on at fast pace.
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GAIL seen gaining from spot LNG surge, CGDs insulated
As FE reported earlier, experts pointed that the price surge may reduce natural gas imports as price-sensitive consumers in the power and fertiliser sectors are likely to refrain from using the commodity and switch to alternate fuels and feedstocks.
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Asian spot LNG price is up 72% from low of $5.6/ million British thermal unit (mBtu) in early March to the current level of $9.65/mbtu as severe winter depleted gas inventories in North Asia and Europe leading to competition for LNG supplies. From the lows of $2/mBtu recorded in May 2020, spot LNG prices increased to $10.7/mBtu on an average in December, spiraling to $18.5/mBtu in January as severe winter in Northeast Asia raised demand.
Analysts at ICICI Securities pointed that steeper rise in spot LNG prices compared with the price of gas imported from US (Henry Hub) has meant GAIL can sell its US LNG at higher rates. GAIL usually sells about 10-12% of its US LNG cargoes at spot LNG price in the second half of every financial year. The agency estimates GAIL’s FY22 gas marketing earnings before interest, taxes, depreciation and amortisation at `4,940 crore if ten cargoes are assumed to be sold at spot LNG prices.
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Electric Mobility & Bio- Methane
Investment in hydrogen fuel falls 20% in 2020; fuel cell vehicle demand to be fragile
Fuel cell electric vehicles (FCEVs) run on hydrogen and are considered more efficient than conventional internal combustion engine vehicles and produce zero tailpipe emissions and only emit water vapor and air.
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Fuel cells are electrochemical devices to convert chemical energy into electrical energy. They offer over 40% higher electrical efficiency than the conventional ones. The development of hydrogen as an automotive fuel has gained momentum worldwide. Hydrogen-fuelled cars and buses are already in use in the US, Japan, South Korea, China, and Germany.
India has been toying with the idea of hydrogen fuel for more than two decades, but not much has progressed. A hydrogen fuel cell bus has been launched in India by Tata Motors in collaboration with the Indian Space Research Organization (ISRO) and Indian Oil (IOCL). Further, Hyundai also seeks to launch its first fuel cell SUV in India and plans to build the required infrastructure for it in and around Delhi-NCR area.
Recently, the Ministry of Road Transport and Highways has notified amendments to the Central Motor Vehicles Rules, 2020, wherein it has issued standards for safety evaluation of the vehicles propelled by hydrogen fuel cells. The Ministry of New and Renewable Energy has been supporting various hydrogen projects in academic institutions, research organisations and the industry for its research and development.
Cost, infrastructure, and safety are some of the most important barriers for the growth in FCEV sales. Companies across the value chain and governments are working closely towards reducing the cost of the vehicle, hydrogen production and retail pricing, increasing the number of refueling stations and improving safety, and we can expect FCEVs to have price parity with traditional internal combustion engine (ICE) vehicles by 2030.
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Electric Mobility Takes Centre Stage In India’s Logistics Business: Analysis
Electric vehicles (EV) are getting a major push in India. While there is still some time before we see any noticeable growth in the personal mobility space, when it comes to the last-mile cargo segment, EVs have
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already made a huge mark for themselves. According to data provided by the Society Of Manufacturers Of Electric Vehicles (SMEV) 2,36,802, electric vehicles were sold in FY2020-21, out of which 88,378 units were electric three-wheelers. Mind you this data doesn’t include those low-speed E3Ws that are not registered with the transport authority, which are passenger carriers majorly used in tier 2 and tier 3 markets. However, in the cargo space, brands like Mahindra Logistics, DHL, Amazon, and Flipkart, among others, have already made substantial investments to convert their cargo fleet to electric in the coming years.
At the same time, rival Flipkart has also expressed similar goals. The company aims to convert its entire fleet to 100 per cent electric by 2030 and deploy over 25,000 EVs by the end of this decade. The ongoing second wave of coronavirus and the resultant curfews and lockdown has certainly not made things easy for any segment. However, as expressed by all these different players, with people staying home, e-commerce platforms are seeing increased demand, which is therefore helping the last-mile cargo vehicle segment grow. The fact that in the current conditions EVs have become a more cost-effective solution for these logistics companies is a win-win situation for both the businesses as well as the environment.
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PLI scheme to help India develop as manufacturing hub for EV cells
India on Wednesday, May 12, approved a production linked incentive (PLI) scheme with an outlay of ₹18,000 crore to promote manufacturing, export and storage of lithium-ion cells, essential for developing electric vehicles.
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Mint explains the potential benefits. Through this scheme the Union government aims to install a manufacturing capacity of 50 gigawatt hour (GWh) of Advanced Chemistry Cells (ACC) and 5GWh capacity of “Niche” ACC. ACCs are essentially lithium-ion cells. Manufacturers would have to commit to set up a manufacturing facility of minimum capacity of 5GWh and ensure a minimum 60% domestic value addition within five years.
The government is eyeing direct investment of around ₹45,000 crore from leading manufacturers Panasonic Corp., Toshiba Corp. and others. None of these global manufacturers have announced any such project in India till now. Home-grown Tata Chemicals Ltd has announced a lithium-ion cell manufacturing project in Gujarat. The government hopes to save ₹2-2.5 trillion on account of reduction in oil imports during the period of this programme, due to increased adoption of electric vehicles. The scheme is expected to accelerate adoption of zero-emission vehicles.
The government’s efforts to urge manufacturers to launch more electric vehicles in India have not resulted in substantial increase in sales of such vehicles. Sales of electric vehicles in the domestic market decreased by 19.9% to 236,802 units in FY21 as a result of the covid-19 induced economic slowdown. Sales of electric two-wheelers, stood at a paltry 143,837 units while the same for electric cars was just 4,588 units. Most manufacturers import critical parts of electric vehicles, like lithium-ion cells and electric motors from China in the absence of a proper ecosystem for developing such components. Auto industry experts and the government expect a substantial jump in volumes of electric three-wheelers and two-wheelers in the next five years due to narrowing price gap with combustion engine vehicles. Localization of cells and batteries will further bring down the cost of electric vehicles.
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Gas/ Pipelines/ Company News
Adani Total Gas Q4 results: Net profit rises 19 per cent to Rs 145 cr
NEW DELHI: Adani Total Gas Ltd, the city gas joint venture of Adani Group and French energy giant Total, on Tuesday, May 4 reported a 19 per cent rise in its March quarter net profit as the firm expanded operations
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in newer geographies, resulting in higher sales volumes. Net profit in the January-March quarter of FY21 was Rs 145 crore compared to Rs 122 crore in the same period of the previous fiscal, company CEO Suresh P Manglani said on a media call.
The company sold 14 per cent more gas at 166 million standard cubic meters of gas (75 mmscm CNG and 91 mmscm piped natural gas) in the January-March quarter. For the full year (April 2020 to March 2021), which was hit by the COVID-19 pandemic and ensuing lockdown pummelling economic activity, sales volume was down 12 per cent at 515 mmscm. The firm has started operations in 14 out of the 15 geographical areas (GAs) it had won in recent licensing rounds. It added 102 CNG stations in the year taking the total number to 217 while piped cooking gas connections increased by nearly 41,000 to 4.78 lakh.
https://energy.economictimes.indiatimes.com/news/oil-and-gas/adani-total-gas-q4-results-net-profit-rises-19-per-cent-to-rs-145-cr/82392233
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IOC renews medical insurance for petrol pump attendants, LPG delivery boys
New Delhi: State-owned Indian Oil Corporation (IOC) has renewed insurance cover for petrol pump attendants and LPG delivery boys as it looked to secure its frontline workers against health emergencies.
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In a statement, IOC said besides renewing medical insurance for frontline workers, the company will continue to provide ex-gratia assistance to the family of the deceased. On accidental death of an insured, the family will be eligible for compensation of Rs 2 lakh.
IOC said the Karma Yogi Swasthya Bima Yojana was launched in March 2020 to provide a safety net to the field force, who were braving the pandemic to cater to the fuel needs of the country. Additionally, IOC will continue to provide an ex-gratia COVID-19 insurance cover of Rs 5 lakhs, in case of death due to COVID-19. The amount is payable to the next of kin of the deceased.
These include contract labour working on-premises for whom IOC is the principal employer and personnel engaged by business partners comprising, pump attendants, delivery boys, packed and bulk drivers, TT crew, patrolling guards of pipelines, loaders/ unloaders and other associated/support personnel.
https://energy.economictimes.indiatimes.com/news/oil-and-gas/ioc-renews-medical-insurance-for-petrol-pump-attendants-lpg-delivery-boys/82445804
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IOCL plans to open 15 CNG retail sites
The Indian oil company is expanding its CNG supply with the opening of stations in Coimbatore. The Indian Oil Corporation Limited (IOCL) plans to open 15 retail outlets supplying compressed natural gas (CNG) in Coimbatore district in this financial year.
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IOCL said that the two retail outlets were opened at Gandhi Managar and Sulur on April 19 to supply CNG for automobiles. These CNG retail outlets will refill fuel for those vehicles powered by CNG as well as the vehicles that run on petrol which are retrofitted with a CNG kit, according to The Hindu.
According to a press release, the IOCL is developing CGD networks in Coimbatore and Salem districts and will be providing over 12 lakh PNG connections to domestic households and 431 CNG stations for vehicle refilling in the two districts over a period of eight years.
https://www.petrolplaza.com/news/27234
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Reliance, affiliates buy 3/4 of KG-D6 gas volumes
NEW DELHI: Billionaire Mukesh Ambani’s Reliance Industries Ltd and its affiliates have picked up more than three-fourths of the new gas volumes from the firm’s eastern offshore KG-D6 block
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which at current government dictated price will cost it less than half of the imported rate, sources said.
Reliance and its partner UK’s BP Plc last week auctioned 5.5 million standard cubic meters per day of incremental gas from the newer discoveries in the KG-D6 block, benchmarking it to a gas marker. The remaining volume was picked by Adani Gas (0.15 mmscmd), IRM Energy (0.10 mmscmd), GAIL (30,000 cubic meters per day) and Torrent Gas (20,000 cubic meters per day).
In that auction too, RIL picked up two-thirds of the 7.5 mmscmd gas sold. Reliance O2C picked up 4.8 mmscmd of gas while state gas utility GAIL (India) won 0.85 mmscmd of supplies and Shell 0.7 mmscmd. Adani Total Gas got 0.1 mmscmd, Hindustan Petroleum Corporation Ltd (HPCL) 0.2 mmscmd and Torrent Gas 0.02 mmscmd. Other buyers include IRM Energy (0.1 mmscmd), PIL (0.35 mmscmd) and IGS (0.35 mmscmd).
Other discoveries have either been surrendered or taken away by the government for not meeting timelines for beginning production. Reliance is the operator of the block with 66.6 percent interest while BP holds the remaining stake.
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Policy Matters/ Gas Pricing/Others
Gujarat: Covid-hit Morbi gets 30 MT oxygen refilling plant
AN OXYGEN refilling plant, set up by the Morbi Ceramics Association (MCA), became operational Sunday, providing a much-needed boost to the supply of the life-saving gas in Morbi, among the worst Covid-19
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affected districts in Saurashtra. The plant, which has been set up by repurposing a cryogenic tank meant for storing liquefied natural gas (LNG), has come up within a week. It has a capacity to handle 30 metric tonnes (MT) of oxygen every day and meet the needs of the entire Morbi district.
The MP adding Union Railways Minister Piyush Goyal helped get necessary clearances Petroleum and Explosives Safety Organisation (PESO) and the Food and Drug Control Authority of Gujarat.
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Petroleum Minister flags off first supply of used cooking oil-based biodiesel
New Delhi: Minister of Petroleum and Natural Gas and Steel Dharmendra Pradhan on Tuesday, May 4 remotely flagged off the first supply of Used Cooking Oil (UCO) based biodiesel blended diesel under
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the Expressions of Interest (EoIs) Scheme from Indian Oil’s Tikrikalan Terminal. Speaking on the occasion, Dharmendra Pradhan complimented the Oil industry on the stellar role they have played to keep the fuel lines running despite the stiff challenges of the pandemic. He also lauded the OMCs for going beyond the usual business imperatives by extending support for medical oxygen supply to the nation in this crisis. Pradhan also appreciated IndianOil‘s leadership role in smoothening the Liquid oxygen logistics in the country through various initiatives.
In the first phase, 11 EoIs were floated between August 10, 2019 to November 9, 2020 for 200 locations. Publication of EoIs has been extended for one more year up to December 31, 2021, for 300 locations across the country. Biodiesel is an alternative fuel similar to conventional or ‘fossil’ diesel. It can be produced from vegetable oil, animal fats, tallow and waste cooking oil. A significant advantage of Biodiesel is its carbon-neutrality, i.e. the oilseed absorbs the same amount of CO2 as is released when the fuel is combusted in a vehicle. Also, Biodiesel is rapidly biodegradable and completely non-toxic, stated an official release.
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Indian Oil Corporation converts LNG tankers to carry medical oxygen
Indian Oil Corporation (IOC) is converting 14 liquefied natural gas (LNG) tankers into medical grade oxygen carriers as the it steps in to augment oxygen-carrying capacity in the country. IOC said it had previously
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diverted high-purity oxygen used in its Mono Ethylene Glycol unit to produce medical liquid oxygen at its Panipat refinery. In the face of a massive surge in demand for medical oxygen, the oil major is supplying 270 tonnes of liquid medical oxygen per day to the hospitals in Delhi, Haryana and Punjab. — PTI
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Mumbai: State govt releases Biodiesel policy 2021
The Maharashtra Government on Tuesday released Bio-diesel (manufacturing, storage, supply, selling) policy 2021. As per the policy, the direct sale of bio diesel B for mixing it with diesel in vehicles is banned
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as it is allowed only after registration of B 100 with the competent authority. The registration will be applicable for two years and its renewal be done 45 days before the expiry.
In Mumbai and Thane, the Controller Rationing and Director of Civil Supply will be the competent authority for the registration for manufacture, storage, supply and sale of biodiesel. The registration will be granted after completion of due procedure and payment of Rs 1,000 as registration fee.
The government has said the competent authority has powers to cancel the registration in the wake of violation of norms and procedures. It will be mandatory to display the registration at the sites of manufacturing, storage, supply and sale. Besides, they will have to put up a board on the percentage of biodiesel to be mixed with the high speed diesel. They will also have to put up in writing that the mixing of bio diesel in excess of the stipulated norms may damage the vehicle engine.
Further, the auto fuel pumps owned or run by dealers will also have to display in bold norms with regard to mixing of bio diesel in the high speed diesel and adverse impact in the wake of excess mixing. The Controller of Rationing, Director of Civil Supply and the government recognised officers will be delegated with powers to enter into the outlet, inspect, collect samples and seize the outlet in the wake of adulteration or malpractices.
https://www.freepressjournal.in/mumbai/mumbai-state-govt-releases-biodiesel-policy-2021
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LNG Development and Shipping
India pandemic weighs on natural gas demand amid souring GDP outlook
India’s deadly COVID-19 outbreak and widening localized lockdowns have soured the country’s economic growth outlook, stifled its natural gas demand and resulted in more LNG carriers being diverted by gas companies,
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an analysis by S&P Global Platts showed. On May 8, the southern Indian state of Tamil Nadu, one of the country’s most industrialized and among its largest by GDP- imposed a two-week lockdown amid growing infections, joining several other states that have taken similar measures.
Tamil Nadu is home to Petronet LNG’s Kochi terminal with a capacity of around 5 million mt/year, and market participants expect the lockdown to hurt industrial and city gas demand similar to other gas consuming states like Gujarat and Maharashtra. An Indian gas aggregator estimated that city gas demand had dropped by 40-50%, and demand from the industrial sector could drop by 20-25%.
LNG vessel diversions
Meanwhile, more LNG carriers have been diverted from India. The 160,400 cu m vessel Cubal that was headed to Dahej LNG in western India was diverted to Fujian where it arrived on May 10, according to Platts’ trade-flow software, cFlow. The cargo originated from Angola LNG and was sold to state-run CNOOC. The 266,000 cu m LNG carrier Shagra, which loaded at Qatar’s Ras Laffan terminal, was diverted from western India to South Korea’s Incheon terminal where it is expected to arrive May 16, according to cFlow.
This is in addition to four LNG carriers that were previously diverted, according to Kpler. Three were diverted to Europe — Qatargas-chartered Ejnan and Lusail and Angola LNG’s Sonangol Etosha, and the GAIL-chartered Gail Bhuwan that loaded at Cove Point in the US was diverted to the Middle East.
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Natural Gas / Transnational Pipelines/ Others
New CNG intercity minibuses enter service in Nouvelle-Aquitaine-FRANCE
The Citram Aquitaine company, part of the Transdev group, unveiled five Wing minibuses built on a chassis with a natural gas engine. These are the first Wing models with a CNG engine to leave Indcar’s factories in 2021.
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This NGV is available in two versions of the well-known Wing minibus, one measuring 7.7 meters with a PRM platform and the other one of 8 meters with a large trunk capacity.
The new minibuses, which will serve the Gironde and Lot-en-Garone areas, are the shorter version. Equipped with a platform and having a capacity for 24 passengers all seated or 20 passengers and a wheelchair, these vehicles are designed for intercity and school services. France has a network of 136 CNG stations spread throughout the country, a figure that continues to grow year after year.
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Gas producer EQT Corp to buy private driller Alta Resources for $3 bln-USA
EQT Corp, the largest U.S. natural gas producer, said on May 6, it will buy Blackstone-backed Appalachian basin rival Alta Resources for $2.93 billion in cash and stock, making an entry in the Northeast
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Marcellus shale play. Dealmaking in the oil and gas space has been heating up as crude prices have jumped on a vaccine-led recovery in travel demand. Natural gas, in particular, hit record highs earlier in February when a winter storm swept parts of the United States.
The deal, which adds around one billion cubic feet equivalent gas production to EQT‘s portfolio, is expected to be accretive to free cash flow and net asset value per share, the company said. EQT said it will pay $1 billion to Alta in cash and the rest in stock. It expects to fund the cash portion partly by drawing on its credit facilities and new debt.
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Global LNG Development
Naturgy puts into operation public natural gas station in Catalonia-SPAIN
Naturgy has opened a new public CNG and LNG station in Manresa, allowing fast refueling of both light and heavy vehicles. The new facility has a 60m3 LNG tank and is designed to allow its expansion with another 80m3 tank.
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With this opening, the company is consolidated in the peninsula with the largest natural gas refueling infrastructure network. The Manresa station is located on the C-55, Ctra. Manresa – Solsona, 4 minutes from the exit of the C-25, the Transversal Axis that connects Lleida and Girona, as it passes through Manresa, in the Catalonia Central area. It is also close to the C-16 motorway, which connects Barcelona with Andorra. The area is considered strategic due to the large volume of traffic that circulates, as well as because it is an area that currently lacks NGV infrastructure.
Naturgy plans to carry out new openings of this type of facilities throughout this year. With this deployment, the company has managed to reinforce the existing infrastructure, increase the network of service stations strategically distributed throughout the national territory and cover strategic points in the road transport network. Likewise, with this new Naturgy station consolidates its firm commitment to sustainable mobility in both heavy and light transportation through the use and development of biomethane, green hydrogen, electricity and natural gas, in which Naturgy has been working for several years.
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Galileo Patagonia: smart LCNG fueling solution for heavy transport
Galileo Technologies continues to expand its presence in international markets with the introduction of the Galileo Patagonia™ Smart Fueling Station, targeted at logistics centers and service stations, to guarantee LCNG fast filling.
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The latest version of the Galileo Patagonia™ Smart Station for LNG and CNG is an innovative solution that accelerates the expansion of ‘Alternative Fuels Corridors’ dedicated to all kinds of natural gas vehicles. Its plug-and-play configuration and reduced physical footprint enable fueling stations to be installed quickly and easily with the simple addition of a concrete pad. The Patagonia is a cost-effective and profitable solution for fleets, logistics centers, multi-fuel convenience stores and travel plazas, among other locations.
The Patagonia greatly simplifies fueling with a prepaid terminal that eliminates the need for the driver to pay cash, use a credit card or to rely on cellphones’ connectivity for payment apps. For fleet owners, the station provides online, real-time reports on fuel availability and dispensed quantities of LCNG to ensure a firm and continuous supply of fuel delivered over the road via Galileo’s Virtual Pipeline.
It can be thought of as a smart LCNG vending machine. It provides a comprehensive solution, including fueling equipment, installation, maintenance, storage systems, and LNG supply.
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PETRONAS INKS FIRST CANADIAN-INDEXED LNG DEAL
Malaysian state Petronas LNG (PLL) said May 7 it had introduced a new LNG pricing index based on the AECO gas trading hub in Canada. It had just sold a spot LNG cargo to an Asian buyer for delivery in August.
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Petronas said the sale of the spot cargo based on AECO pricing is a significant step towards establishing a transparent price index in the LNG market to not only complement Petronas’ pricing diversification for cargoes but also for the supply of LNG from the Anglo-Dutch Shell-led LNG Canada project. It said it is due to start commercial deliveries in 2024.
Petronas is one of five partners in the LNG Canada project; its estimate that commercial deliveries from the 14mn mt/yr first phase are expected in 2024 is a more precise operational date than the mid-decade estimate previously provided by the consortium.
AECO is the leading gas trading hub in western Canada, and like the Henry Hub in the US it is traded in real time, with high liquidity backed by large gas reserves.
https://www.naturalgasworld.com/petronas-inks-first-canadian-indexed-lng-deal-88041
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New LNG station for trucks opens in the Spanish province of Albacete
HAM Group has opened a new LNG station in Caudete, Albacete, located in Los Villares industrial estate, very close to the A-31, also known as the Alicante highway, which connects Alicante with Albacete, central Spain and Madrid.
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This highway, in its section from Caudete to Alicante, forms together with the A-35, the A-7 and the A-33, an alternative route to the AP-7 between Valencia and Alicante.
The mobile unit in Caudete is an innovative refueling station that allows the supply of LNG to heavy vehicles and trucks. Customers can freely access the service station, which is open 24/7. HAM’s mobile stations allow access to LNG and CNG in those points where NGV drivers still cannot enjoy these alternative, sustainable and environmentally friendly fuels.
HAM Group makes available to its customers a network made up of more than 80 service stations, fixed and mobile, which allow to refuel CNG and/or LNG, distributed in the main national and European routes.
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Samsung shipyard opens test facility to develop and verify technologies for LNG value chain-SOUTH KOREA
SEOUL — As the world’s top builder of eco-friendly vessels powered by natural gas, Samsung Heavy Industries has opened a test facility to develop and verify key technologies for a liquefied natural gas value
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chain from production to transportation, storage and supply. Samsung Heavy Industries (SHI) opened the LNG pilot test facility at its shipyard in Geoje on May 12 in a ceremony attended by foreign guests from international classification societies and shipping companies.
SHI CEO Jung Jin-taek hailed the demonstration facility as the “cradle” of LNG technology innovation. South Korean shipbuilders work hard to develop smart ships and secure a competitive edge in LNG-powered vessels. SHI has led the construction of LNG-powered ships thanks to growing demands for eco-friendly ships.
S-REGAS (CGR) is SHI’s new eco-friendly regasification system that links power generation utilizing liquefied natural gas cold energy. LNG needs to be gasified before supplied to users. The process releases a considerable amount of cold energy. A regasification system is a key element of the floating storage regasification unit (FSRU), a ship-type facility that can supply LNG directly to consumers on land after vaporizing it at sea.
SHI’s re-liquefaction system for low-pressure dual-fuel engines offers increased efficiency and reliability by allowing boil-off gas from the cargo tank to be re-liquefied. New systems have been converged with SHI’s smart ship technology.
https://www.ajudaily.com/view/20210513103218595
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Natural Gas / LNG Utilization
Natural Gas Prices in Europe Spike to January Levels Amid Fall in Stockpiles
At the same time, EU countries are struggling to agree on their policy towards Nord Stream 2 – a joint project between Russian Gazprom and European energy giants, designed to deliver 55 billion cubic metres of natural gas
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from Russia per year. The pipeline has been facing sanctions pressure from the US, which wants the project to be shut down.
Gas prices continue to spike in the EU, with a thousand cubic metres of low-emission fuel having a price tag of $295 on the spot market at Dutch TTF on May 2. Two days ago, the price already crossed the landmark of $286 – a level previously seen in January 2021 amid a notably cold winter in Europe.The surprising growth in gas prices amid the coming of spring was facilitated by two factors – a general decline in gas stockpiles in the EU due to a cold winter and a reduction of liquefied natural gas (LNG) shipments. European gas storages are currently around 30% full, which is lower than the average level of 41% seen in the last five years. Also this year’s April was the first time that the EU’s gas stockpiles have diminished instead of expanded. The bloc is currently restoring its gas reserves by 0.1% per day.
Last week’s 8% reduction in LNG supplies has only worsened the situation, contributing to the spiking price for a fuel that is in high demand in Europe, who are using it as a temporary source of energy as they transition to meet their 100% green energy goal. The overall reduction of LNG supplies to Europe in 2021 compared to last year is around 4.8%.
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Peruvian consortium grants US$39M to help acquire CNG trucks & buses-SOUTH AMERICA
Over the next three years, the Camisea Consortium will allocate a fund of approximately US$39 million to promote the use of natural gas in vehicles of the passenger and cargo transportation segment in
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the department of Lima and the constitutional province of Callao. The NGV Promotion program of the consortium led by Pluspetrol plans to incorporate more than 3,000 new NGVs in the next three years.
The Camisea Consortium is made up of Pluspetrol (operator), Hunt Oil, Repsol, Sonatrach, SK Innovation and Tecpetrol. Camisea is located in the Peruvian Amazon within the lower basin of the Urubamba River, in the Cusco region. The project consists of the exploration and production of natural gas and liquids from the San Martín, Cashiriari and Pagoreni fields (lots 56 and 88), which make up one of the most important gas reserves in Latin America.
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Over 130,000 public transport vehicles to become dual-fuel
TEHRAN – The Director of the National Iranian Oil Refining and Distribution Company (NIORDC)’s compressed natural gas (CNG) programs Mohammad-Hossein Baqeri has said that 132,000 public transport vehicles are
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going to become dual-fueled across the country. The mentioned vehicles are going to become dual-fuel under the framework of a program launched back in May 2020, for the promotion of CNG consumption instead of gasoline. The program is aimed at converting over 1.46 million public vehicles into dual-fuel ones.
According to Baqeri, so far over 306,000 vehicles have registered in this program of which only 132,000 have met the required criteria to become dual-fuel. ince the implementation of a program for rationing subsidized gasoline and increasing fuel prices in November 2019, CNG consumption has been rising in the country.
Iran’s CNG consumption which stood at 19 million cubic meters (mcm) per day before the implementation of the fuel rationing scheme, has now reached 21 mcm. There are currently 2,400 CNG stations across Iran that supply 22 percent of the country’s fuel basket.
Iranian Oil Ministry considers CNG as the national fuel, therefore, to increase the share of this fuel in the country’s energy basket, it was planned to turn public vehicles into dual-fuel cars, which can increase CNG consumption by 10 mcm per day.
https://www.tehrantimes.com/news/460734/Over-130-000-public-transport-vehicles-to-become-dual-fuel
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Mexico: more than 50% of Querétaro urban transit system runs on CNG
The Querétaro Transport Institute reported that six out of ten buses of Móvil Qrobús, the company responsible for the operation of the integrated public transport system in the metropolitan area of Querétaro,
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run on natural gas, allowing to improve air quality and reduce environmental pollution in the region. Qrobús has renewed 50% of its vehicle fleet in the last three years and has chosen to be responsible with the environment. The company reaffirms its commitment to follow the path of sustainable mobility, acting in co-responsibility for the health of society and continually exposing the benefits in reducing carbon emissions from the operation.
According to figures from the National Commission for the Efficient Use of Energy, the use of natural gas helps reduce up to 90% of NOx emissions, 65% of CO and 30% of CO2, compared to gasoline or diesel. In addition, noise pollution is cut in half by having a quieter operation.
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LNG as a Marine Fuel/Shipping
Clean Energy Inks Bundle of Renewable Natural Gas Supply Contracts
Clean Energy Fuels Corp., a provider of clean fuels for the transportation market, has secured multiple renewable natural gas (RNG) supply contracts.
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Pac Anchor, a port drayage company that serves the ports of Long Beach and Los Angeles, has added 23 new trucks to its fleet for an estimated 2.5 million gallons of RNG. Cal Portland signed an RNG supply agreement to support its fleet of 150 ready-mix and bulk hauler natural gas trucks for an estimated 1 million gallons. Biagi Bros., a nationwide carrier whose customers include Anheuser-Busch and PepsiCo, will deploy 12 new trucks through the Zero Now program for an approximate 900,000 gallons of RNG.
Ecology Auto Parts is adding 35 new vehicles to its Southern California fleet through Clean Energy’s Zero Now program that will fuel with an anticipated 420,000 gallons of RNG. Valley Metro RPTA, in Mesa, Ariz., awarded Clean Energy a contract for full operations and maintenance service of their fueling equipment for a fleet of 115 buses, which use an expected 1.2 million gallons annually. In addition, Valley Metro contracted Clean Energy to upgrade its station, which was recently completed in March.
TransDev, a transit agency in Long Island, N.Y., and long-time Clean Energy customer, has extended its fueling contract for an anticipated 2 million gallons.
Clean Energy says RNG reduces climate-harming greenhouse gas emissions by at least 70% – and even up to 300% depending on the source of the RNG – making it a negative carbon fuel.
https://ngtnews.com/clean-energy-inks-bundle-of-renewable-natural-gas-supply-contracts
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Fue LNG achieves vessel first in Singapore
FueLNG, together with the Maritime and Port Authority of Singapore (MPA), on May 7, completed Singapore’s first bunkering of an LNG-fuelled oil tanker. Shell’s Aframax tanker Pacific Emerald is the first oil tanker to be
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LNG-bunkered in the city state, with the operation performed by FueLNG Bellina, Singapore’s first liquefied natural gas vessel. Gain valuable insight into the global oil and gas industry’s energy transition from ACCELERATE, the free weekly newsletter from Upstream and Recharge. Sign up here today.
LNG is an immediately available fuel solution that can reduce the environmental impact of maritime transport. The use of LNG as a marine fuel reduces greenhouse gas emissions by up to 23% on a well-to-wake basis, compared to current oil-based marine fuels, according to the second Lifecycle GHG Emission Study on the use of LNG as a Marine Fuel from Sephera, formerly thinkstep.
Pacific Emerald is the first of 10 newbuild Aframax tankers chartered by Shell Tankers Singapore from Sinokor Petrochemical Company.
https://www.upstreamonline.com/lng/fuelng-achieves-vessel-first-in-singapore/2-1-1007232
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France’s first ship-to-containership LNG bunkering operation completed
Total has performed the first ship-to-containership LNG bunkering operation in France. The world’s largest LNG bunker vessel in operation, Total’s Gas Agility¸ has completed at the Port of Dunkirk
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the refueling of the world’s largest containership powered by LNG, the CMA CGM JACQUES SAADE, with around 16,400 m3 of LNG. This inaugural operation also marks Dunkerque LNG terminal’s first loading of a small-scale LNG vessel and the Terminal des Flandres’ first LNG bunkering operation with simultaneous cargo operations.
Importantly, it underscores the close cooperation across all partners of the ‘Green Loop’ project consortium, which comprises Total, the Dunkerque LNG terminal, Mitsui O.S.K. Lines (MOL) and CMA CGM. Co-financed by the European Union under the Connecting Europe Facility (CEF) – Transport Sector, the overall project objective is to promote the decarbonization of maritime transport by deploying a scale-up LNG bunkering solution in North Europe.
Since commencing operations in November 2020, the Gas Agility has delivered more than 160,000 m3 of LNG bunker in Rotterdam where she is based. She is designed to serve a broad range of vessels from various segments, including CMA CGM’s 23,000 TEUs LNG-fueled container ships.
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VNS Launches Service Sourcing Tech for LNG Vessels
VNS International, a leader in solutions for the hospitality and maritime industry, is launching a new service to provide a single source for the explosion-proof technology needed to safely manage
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LNG-powered vessels. VNS International will simplify the challenges businesses faces to manage the increasingly complex technologies of LNG vessels. The service will offer best-of-breed explosion-proof equipment from hardware partners such as APC, Eaton, Pelco, Motorola Solutions, Zenitel, and Zyntel.
VNS will find the equipment and services that fit the ship’s needs. Certified technicians will install and set up the hardware and ensure that it performs as expected. Engineering, installation, support, and training are also available. The company has partnered with some of the largest names in its industries, including APC, Crouse Hinds, Hernis Scan Systems, MTL, Eaton, Pelco, Motorola Solutions, Zenitel, and Zyntel to name just a few.
https://maritime-executive.com/corporate/vns-launches-service-sourcing-tech-for-lng-vessels
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Technological Development for Cleaner and Greener Environment Hydrogen & Bio-Methane
Cargill steps up push to cut carbon emissions from shipping fleet-UK
LONDON: Cargill, one of the world’s biggest charterers of ships, has cut nearly 1.5 million tonnes of gross carbon emissions from its fleet since 2017, a top company executive said, as it steps up efforts to go green.
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With about 90% of world trade transported by sea, global shipping accounts for nearly 3% of the world’s CO2 emissions.
The United Nations aims to reduce the industry’s greenhouse gas emissions by 50% from 2008 levels by 2050. This target will require the swift development of zero or low emission fuels and new designs for ships. Cargill achieved an overall reduction of 5% in CO2 emissions per cargo tonne-mile by 2020 against a 2016 baseline, the U.S. agribusiness giant said. Cargill’s gross CO2 emissions fell to 7.102 million tonnes in 2020 from 7.371 million tonnes in 2019, 7.382 million tonnes in 2018 and 7.732 million tonnes in 2017.
Cargill charters between 600 to 700 vessels, of which 90% are for dry bulk and the rest are for tankers. Cargill is also working with technology partners to fit sails on selected vessels, which will cut carbon emissions by up to 30% through harnessing wind power.
https://energy.economictimes.indiatimes.com/news/oil-and-gas/cargill-steps-up-push-to-cut-carbon-emissions-from-shipping-fleet/82343715
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More U.S. trucking fleets speed up transition to low-carbon biomethane
Clean Energy Fuels Corp. announced new renewable natural gas contracts as fleets across North America increasingly continue to adopt the clean, low-carbon fuel to power heavy- and medium-duty trucks.
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Pac Anchor, a port drayage company that serves the ports of Long Beach and Los Angeles, has added 23 new trucks to its fleet for an estimated 2.5 million gallons of biomethane. In addition, Cal Portland signed a renewable natural gas supply agreement to support its fleet of 150 ready mix and bulk hauler natural gas trucks for an estimated one million gallons.
Biagi Bros., a large nationwide carrier whose customers include Anheuser-Busch and PepsiCo, will deploy 12 new trucks through Clean Energy’s Zero Now program for an approximate 900,000 gallons of biomethane. Ecology Auto Parts is adding 35 new vehicles to its Southern California fleet, also through the Zero Now program, that will fuel with an anticipated 420,000 gallons of renewable natural gas.
Finally, Matheson Trucking Company has added 16 new tractors which are fueling at Clean Energy stations in California, Nevada, and Idaho with an anticipated 200,000 gallons of renewable natural gas.
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Adopt-a-Port: Chevron further bets on alliance to help fleets shift to biogas-USA
Chevron Corporation announced that its wholly-owned subsidiary Chevron U.S.A. Inc. (Chevron) is investing an additional $20 million in the Adopt-a-Port initiative with Clean Energy Fuels.
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Chevron has now invested a total of $28 million in the initiative, which provides truck fleet operators and owners serving the ports of Los Angeles and Long Beach with cleaner, carbon-negative renewable natural gas to reduce emissions.
In addition to providing funding for Adopt-a-Port, Chevron supplies renewable natural gas to Clean Energy stations near the ports. Chevron’s funding will allow truck operators to subsidize the cost of buying new or converting to biomethane trucks. Clean Energy, meanwhile, will manage the program, including offering fueling services for qualified truck operators.
Truck operators participating in the program, which supports the ports’ Clean Trucks Program and Clean Air Action Plan, agree to fuel up at the Clean Energy stations supplied with Chevron renewable gas. Truck operators and their import and export customers are expected to reduce greenhouse gas emissions under California’s Low Carbon Fuel Standard program while also reducing smog-forming NOx emissions by up to 98% compared to diesel trucks, helping local communities.
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World first: hydrogen truck supplies McDonald’s locations in Switzerland
In a world first, logistics company HAVI transported ingredients for Big Macs and other products to a McDonald’s restaurant in a hydrogen-fueled truck. Due to its long range of 400 kilometers,
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the zero-emission truck transported the consignment from the HAVI logistics center in Oensingen (SO) to Crissier (VD), where McDonald’s head office has a restaurant, without refueling once and with water vapor as the only emission.
Going forward, this truck will be supplying McDonald’s restaurants in the Aargau, Basel, Bern and Zurich regions. This finds the long-standing partners an effective step closer to achieving one of their climate goals: transporting 70% of McDonald’s Switzerland’s goods to its restaurants in a CO2-neutral manner by 2025; that figure stands at 64% today.
Reducing CO2 emissions is a focus at McDonald’s and HAVI, which is why climate protection takes place on a variety of levels: Procurement from suppliers in Switzerland results in short transport distances and correspondingly low CO2 emissions.
Since the early 2000s, biodiesel has been produced from waste frying oil, while biogas has been produced from organic kitchen waste. HAVI’s trucks, which are used for the last-mile distribution of goods to the restaurants, run on a variable proportion of biodiesel or biogas. This closes the circle of another pioneering achievement in Switzerland.
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