NGS’ NG/LNG SNAPSHOT – Nov 1–15, 2022

National News Internatonal News


City Gas Distribution & Auto LPG

Union Minister Sh. Nitin Gadkari said bio-CNG and LNG will be manufactured

Union Road, Transport and Highways Minister Sh. Nitin Gadkari has talked about making bio-CNG and LNG from stubble. He has said that we have made Bio-CNG and LNG from stubble, which can run tractors and buses. He said that Indian Oil has made a big project in Panipat. There, 1 lakh litres of ethanol and 150 tonnes of bio-bitumen are being produced daily from stubble. We will use this bitumen for road construction.

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On tackling the problem of pollution in Delhi, Gadkari said that it is a bit difficult to find a solution, but it is not impossible. He said that if the Central Government, State Government, Municipal Corporation and farmers make efforts together, then this problem can be solved. He said that we should forget politics and work together to tackle the problem of pollution.

The Union Minister said that roads are being built around Delhi at a cost of Rs 60,000 crore. Due to which Delhi will become traffic free. Along with this, he also talked about bringing electric vehicles and green hydrogen, which can control air as well as noise pollution. He said, ‘I promote it by travelling in a car of green hydrogen. We can reduce fares by 20-30% by shifting people to electric AC buses.

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Domestic natural gas distribution begins at Unnikulam in Kozhikode

Indian Oil Adani Gas Private Limited (IOAGPL) has started domestic distribution of natural gas to 52 households in Unnikulam grama panchayat in Kozhikode. Work is in progress to ensure distribution to 81 more houses. The group expects to connect more than 25,000 households in the district to the network by June 2023.

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The company also plans to provide natural gas to the Kerala State Industrial Development Corporation’s industrial park at Kinaloor soon. A pipeline network of 21 km consisting of medium pressure and low pressure pipes has been commissioned for the purpose.

In the first phase of the project in Kozhikode district, 23.9 km of steel pipeline that carries gas in 26 bars has been commissioned from CGS at Unnikulam to Kunnamangalam to distribute natural gas in Kozhikode city.

In the second phase, laying of 42 km of pipeline is in progress. Hydro testing and the setting up of isolation valves are in progress along 14 km from Pavangad to Nallalam where the  pipeline has already been laid. IOAGPL has already requested the Kozhikode Corporation for plots on lease to set up DRS at six centres in the city so as to begin distribution within the Corporation limits.

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Digital interventions in City Gas development

The Ministry of Petroleum and Natural Gas (MoPNG) has set an ambitious target of making gas 15 percent of India’s primary energy basket by 2030 from the current levels of around 7 per cent. To increase gas availability across the country,

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Petroleum and Natural Gas Regulatory Board (PNGRB) authorised 228 Geographical Areas (GA’s) for gas distribution covering 53 per cent of India’s area and 70 per cent of India’s population by conducting 11 bidding rounds. Disparate groups of players composed of established oil marketing companies,global players, industrial houses, and companies with private equity funding have won these geographical areas.

However, the City Gas Distribution (CGD) players are facing several headwinds which were not envisaged at the time of bidding. On the commodity front, stressed domestic gas supplies and steep increase in LNG prices has impacted price competitiveness of natural gas. The adoption of new generation fuels such as EV, Hydrogen is on the rise leading to further impact on conversions. The increase in steel prices, laying cost, delays on Right of Way, delay in connectivity to trunk pipelines have resulted in detrimental impact to the project financials. Further there is very little room to hold back investments, as PNGRB is closely monitoring progress on city gas stations, steel pipe length and number of domestic PNG connections.

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AG & P to develop city gas projects in India’s Karnataka State

AG&P Pratham, a unit of Singapore’s AG&P, has signed a memorandum of understanding with the government of the Indian state of Karnataka to develop a city gas distribution (CGD) network in 15 districts of the state, the company said on November 3.

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Under the MoU, AG&P Pratham will invest 80bn Indian rupees ($970mn) over the next eight years to build CGD networks in districts of Kolar, Mysuru, Mandya, Chamrajnagar, Hassan, Chikkamagaluru, Kodagu, Bagalkot, Koppal, Raichur, Kalaburagi, Vijayapura, Shivamogga, Uttara Kannada and Haveri.

The area being developed by AG&P accounts for more than 55% of the state’s geographical area and 42% of its population. Over the next eight years, AG&P plans to supply gas to 5mn households and several industries and commercial establishments. It also plans to set up about 600 compressed natural gas (CNG) stations and LNG stations to service the transport sector.

To date, AG&P Pratham has launched 60 CNG and LNG stations in the state, while several such stations are at various stages of development.

AG&P City Gas is developing 12 CGD networks in India under the brand name AG&P Pratham. In its 12 concessions, AG&P is responsible for developing and operating CNG stations for vehicles, PNG to homes, and the distribution of LNG to industrial and commercial customers. City gas projects in India benefit from marketing exclusivity in their designated areas for eight to ten years and construction exclusivity of related infrastructure for 25 years.

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Natural Gas/ Pipelines/ Company News


India’s GAIL declines Sefe compensation for cancelled LNG cargoes

GAIL (India) Ltd (GAIL.NS) has turned down a compensation offer for undelivered liquefied natural gas (LNG) from a former unit of Russia’s Gazprom (GAZP.MM) as it wants to retain the right to the missed cargoes, four sources familiar with the matter said.

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GAIL agreed a 20-year deal with Gazprom Marketing and Singapore (GMTS) in 2012 for annual purchases of an average 2.5 million tonnes of LNG. GMTS was a unit of Gazprom Germania, now called Sefe, but the parent gave up ownership after Western sanctions were imposed on Moscow for its invasion of Ukraine.

Sefe is offering compensation equivalent to 20% of the LNG cost, equivalent to 14% of the Brent prices, in line with the original GMTS contract terms with GAIL, the sources said.

“We are not accepting the penalty as this would give them (Sefe) an exit route from the contractual obligation. We don’t want to lose our right to buy the cargoes again,” one of the sources said on Thursday.

This source said the compensation which Sefe has offered GAIL is low compared to current spot LNG prices of $24-$25 per million British thermal units (mmBtu), adding that the Indian company would be “taking a hit” by accepting it.

GAIL did not respond to an email and call seeking comment, while Sefe said both companies “are addressing this issue together as part of their contractual arrangements”.

“As a result of the Russian sanctions against Sefe and its subsidiaries, including Sefe Marketing & Trading and Sefe Marketing & Trading Singapore, both the Sefe Group and GAIL have been affected by the subsequent suspension of supplies,” a spokesperson for Sefe in Germany said.

GAIL finance head Sh. Rakesh Kumar Jain said in a post earnings analyst call last week that Sefe has not delivered 17 LNG cargoes up to the end of September.,familiar%20with%20the%20matter%20said.

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PM Modi opens onshore facilities of ONGC’s U-field in KG block

Prime Minister Sh. Narendra Modi on Saturday dedicated the nation’s Oil and Natural Gas Corporation Limited’s U-field onshore facilities at Odalarevu in B R Ambedkar Konaseema district of Andhra Pradesh.

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The project was dedicated to the nation along with the inauguration/foundation-stone laying of various other development projects worth over Rs 10,700 crore in Visakhapatnam, Andhra Pradesh, a company statement said.

U-field is situated in Krishna Godavari basin block KG-DWN-98/2 in Bay of Bengal. Natural gas from the field will be brought to the onshore facility through undersea pipelines before being dispatched to users

ONGC, however, did not say when production from this field will start.

The U-field is part of ONGC’s flagship deep-water KG-DWN-98/2 Cluster-II development project in the prolific Krishna Godavari Basin. U-field is the deepest gas discovery of the project, with gas production potential of about 3 million standard cubic metres of gas per day.

“The first well of the U field – U-3-B is one of the fastest deep-water well monetized globally in a record time of 11 months,” the statement said. “The gas from these wells is evacuated through the subsea facilities connected to an Onshore Terminal at Odalarevu.”

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Policy Matters/ Gas Pricing/ Others

CNG, PNG to cost more in Mumbai as MGL hikes prices

Mumbai gas distributor, Mahanagar Gas Ltd (MGL), said on Friday, November 4, it is increasing the retail price of compressed natural gas (CNG) by Rs 3.5 per kilogram to Rs 89.50 and of piped natural gas (PNG) by Rs 1.5 per unit to Rs 54 from midnight of November 5, 2022.

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This is the second revision since October when the Centre had increased the price of domestically produced gas, supplied with an administered price mechanism (APM), by 40 percent for the second half of the fiscal, which came atop a 110 percent spike in April for the first half.

On shortage in the supply of APM gas, MGL said the supply has been cut by 10 percent, forcing it to source the fuels from outside at a substantially higher cost as the demand for gas has not come down yet.

MGL claimed that even at the revised level CNG is about 42 percent cheaper than petrol in the megapolis, while PNG is cheaper by around 8 percent compared to current LPG.

MGL distributes gas to 1.98 million households and over 4,067 small commercial and 360 industrial establishments in and around Mumbai.

The company also supplies CNG to vehicles in Mumbai, Thane, Mira-Bhayander, Navi Mumbai and beyond. It has 296 CNG filling stations in Mumbai, Greater Mumbai, Thane, Navi Mumbai and Panvel. Natural gas, which is extracted from below the Earth's surface, is converted to CNG for running automobiles and piped to household kitchens for cooking. It is also used to generate electricity and manufacture fertilisers. Prices vary from city to city depending on the incidence of local taxes such as VAT.

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Parekh committee may opt for differential gas price plan

The Kirit Parekh committee, which has been asked to suggest a fair price for natural gas supplies to end consumers, is expected to break away from the existing formulaic pricing methodology as it seeks to balance the interests of gas producers and consumers.

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Natural gas prices have been going through the roof, sparking dismay at homes that rely on piped cooking gas, pumps dispensing CNG for vehicles and a wide swathe of user industries.The committee, which is expected to submit its report later this month, could take a radical stand by suggesting a differential pricing mechanism — one set for fertiliser and power industries and a completely different one for piped natural gas for homes and CNG for vehicles.

PNG prices in Delhi have risen 52 per cent in just over a year to Rs 53.59 per standard cubic metres (SCM) in October 2022 from Rs 35.11 per standard cubic metres (SCM) in September 2021. CNG prices have shot up 57.9 per cent during this period to Rs 78.61 per kg from Rs 49.76, according to data available in PPAC.

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LNG Use / LNG Development and Shipping

India, Germany In Diplomatic tussle over LNG supply

Disagreements over a cut in supplies of liquefied natural gas to India by a German-state-backed company has turned into a diplomatic tussle between New Delhi and Berlin, news agency Bloomberg reported citing people aware of the development.

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The report stated that diplomats had been called to resolve disagreements, and India is also in touch with Russia for a solution to fill the supply gap.

There have been disruptions since May in gas supplies from Securing Energy for Europe GmbH, a Berlin-based company, to GAIL India. Post-Russia’s sanctions, it became impossible for the company to source cargoes from Moscow.

The report stated that India suggests the company source alternative supplies from its portfolio to meet contractual obligations.

SEFE’s Singapore unit in September said that it cannot fulfil its long-term LNG contract with GAIL.

The report cited a SEFE spokesperson who said that due to Russian sanctions against SEFE and its subsidiaries, the SEFE group and GAIL are affected by supply disruptions.

India is also looking towards Russia to fill the gap. Last week, India’s external affairs minister Sh. S. Jaishankar was in Moscow, and media reports stated that the issue of gas disruptions could be on the minister’s agenda.

Since the outbreak of war in Eastern Europe in February, natural gas prices have surged worldwide. The soaring prices have hit emerging countries like India hard as it is paying record amounts to replace cancelled supplies.

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Electric Mobility/ Hydrogen/ Bio- Methane

Building an electric mobility ecosystem in India

Urbanisation is an important force driving the economic growth of India. Six cities make up 15% of India’s economy. We have two Indian cities in the top ten most congested cities across the world – Mumbai ranks fifth and

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Bengaluru ranks tenth. Bengaluru has been growing at a significantly faster pace than the other cities over the last three years at double digits. Bengaluru’s population has grown by 70% in the last two decades, while the country’s overall population has grown by about 28%. Transport data company INRIX studied traffic congestion in 200 cities in 38 countries and showed the impact of traffic congestion by looking at how much time and money it wastes. In the US, it found the total cost of lost productivity caused by congestion to be $87 billion. Hence, it is important to enable clean, safe and convenient mobility to sustain India’s economic growth.

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IOC targets green hydrogen meeting 10% of requirements by 2030

Indian Oil Corporation (IOC) is targeting to replace at least a tenth of its current fossil-fuel-based hydrogen at its refineries with carbon-free green hydrogen as part of a decarbonization drive. To start with, the nation’s largest oil firm is setting up green hydrogen plants at its Panipat and Mathura refineries, IOC said in its latest annual report.

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“The company is venturing into green hydrogen production and is targeting 5 percent of hydrogen produced by it as green hydrogen by 2027-28 and 10 per cent by 2029-30,” it said.

Hydrogen is the cleanest known energy source but it barely exists in a pure form on Earth. It either is bound with oxygen in water or with carbon to form hydrocarbons like fossil fuels.

“At present, the refineries are the major consumption centres for hydrogen, used for desulfurization. The current dominant hydrogen production process is highly carbon-intensive being based on the Steam Methane Reforming process.

“On the other hand, green hydrogen i.e. hydrogen produced from electrolysis of water, using renewable energy, has a zero-carbon profile, making it the preferred form of hydrogen in the context of a carbon neutral future,” IOC said.

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Natural Gas / Transnational Pipelines/ Others

Natural Gas /Transnational Pipelines/Others

U.S.A : Compressed Natural Gas (CNG) vehicles market share, trends and forecast to 2030

The Compressed Natural Gas (CNG) Vehicles Market report is latest report published by Fusion Market Research which provides comprehensive information, overview of the demands and describe

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At the beginning of a recently published report on the global Compressed Natural Gas (CNG) Vehicles Market, extensive analysis of the industry has been done with an insightful explanation. The overview has explained the potential of the market and the role of key players that have been portrayed in the information that revealed the applications and manufacturing technology required for the growth of the global Compressed Natural Gas (CNG) Vehicles Market.

The report offers detailed coverage of Compressed Natural Gas (CNG) Vehicles industry and main market trends with impact of coronavirus. The market research includes historical and forecast market data, demand, application details, price trends, and company shares of the leading Compressed Natural Gas (CNG) Vehicles by geography. The report splits the market size, by volume and value, on the basis of application type and geography.

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Qatar : Qatar Energy and Mitsui O.S.K. Lines (MOL) expand partnership with three new LNG carrier deals

State-owned oil and gas company Qatar Energy has signed another long-term charter contract with a subsidiary of Japanese shipping company Mitsui O.S.K. Lines (MOL) for three newbuild liquefied natural gas (LNG) carriers.

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The contract includes three LNG carriers to be built at Hudong-Zhonghua Shipbuilding in China. The vessels are scheduled for delivery in 2027.

With the latest deal, MOL and Qatar Energy expand their existing relationship, building on the long-term charter contract signed in April this year.

Qatar Energy is undertaking the North Field Expansion Project to increase its LNG production capacity to 126 million tons per annum by 2027.

Most recently, the company awarded long-term charter contracts to Malaysian energy logistics group MISC Berhad and its consortium partners for five newbuild LNG carriers, in addition to previously awarded seven long-term deals.

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Australia : State Gas Limited GAS & MES sign MOU for CNG virtual pipeline infrastructure

State Gas Limited (ASX:GAS) (OTCMKTS:STGSF) has entered into a Memorandum of Understanding with Mine Energy Solutions Pty Ltd (MES) securing access to compressed natural gas (CNG) Virtual Pipeline infrastructure.

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As previously announced, State Gas is planning to truck compressed natural gas to the market to commercialise its proven gas resource at Reid's Dome (PL 231), as soon as possible. The transport of compressed gas by truck, creating a ‘virtual pipeline’, is a globally recognised and safe process for the movement of gas. State Gas will be utilising this process to transport the gas to the pipeline infrastructure network approximately 60km away.

The gas, once produced, will be compressed and dehydrated at site to pipeline standard and loaded into new generation high pressure carbon fibre cylinders typically employed in the aerospace industry and which are compatible with hydrogen for transport by truck to the pipeline.

MES is a Queensland based technology developer which has successfully demonstrated the conversion of mobile mining equipment to operate on domestically produced gas, thereby displacing up to 80% of imported diesel in this equipment providing an immediate decarbonisation benefit. As part of the conversion, carbon fibre cylinders are installed on the equipment in a unique configuration allowing the equipment to operate safely and efficiently in all open pit mine site operations. MES and State Gas are collaborating to develop the ”Virtual Pipeline” solution for State Gas. “I am delighted to enter into this alignment with MES” said State Gas Executive Chairman Mr Richard Cottee. “MES is a locally based company finding innovative ways to do things better, just like State Gas”. ”The demand for gas has never been greater and attention is moving to ensuring every possible molecule is used. I see a big future for CNG as a means of capturing gas that is otherwise too far from the market or pipeline infrastructure”, Mr Cottee added. MES Chief Executive Mr Adrian Abbott agreed: “Our Board is committed to assist the resource industry to decarbonise, and collaborating with State Gas will assist some of our clients to achieve their carbon reduction commitments through the use of domestically produced gas”.

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Natural Gas / LNG Utilization

Tokyo : Tokyo gas engineering wins contract for Thai LNG terminal

Tokyo Gas Engineering Solutions (TGES), a unit of Japan’s Tokyo Gas, has been awarded a contract to carry out updates of front end engineering design (FEED) and engineering, procurement, construction, and commissioning (EPCC) tender management services for a proposed LNG receiving terminal in Thailand, Tokyo Gas said on November 9.

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The terminal will be built by Gulf MTP LNG Terminal Company (GMTP), which is a joint venture between Gulf Energy Development Public Company and PTT Tank Terminal Company, a unit of Thai state-owned PTT. GMTP is owned 70% by Gulf Energy and 30 % by PTT Tank.

This is the second time for TGES to work for GMTP’s LNG terminal project, after having been awarded to conduct the original FEED in August 2020. Under the new contract, TGES will perform the tender management services for the upcoming EPCC tender planned by GMTP, in addition to the FEED updates.

TGES has participated in several Thailand LNG projects, namely the Map Ta Phut LNG receiving terminal Phase 2 and Nong Fab LNG receiving terminal.

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Iran : Iran inks deals with Russia’s Gazprom to develop gas and LNG projects

Iranian Petroleum Minister Mr. Javad Owji said in Tehran that his Ministry has signed with Russian energy giant Gazprom cooperation agreements worth nearly $40 billion.

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Tthe Iranian side would follow up on the progress of the agreements, which include the construction of LNG complexes in Iran as well as the development of Iran’s gas fields and gas export transmission lines, a state media outlet quoted Owji as saying on Wednesday. Iran has started the swap of oil and petroleum products with Russia and is discussing the possibility of a gas swap with Russia, Mr. Owji said, adding he hoped such a deal could be made possible this winter, Xinhua news agency reported.

Iran’s Deputy Foreign Minister for Economic Diplomacy, Mehdi Safari said in October that Iran’s plan was to import Russia’s gas while exporting Iranian gas to foreign markets, noting such a move would benefit his country by reducing the costs of transferring Iranian gas from the country’s southern regions to the north.

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Global LNG Development

U.S : Nat gas drops 6% on less cold weather, focus on Freeport LNG

U.S. natural gas futures dropped about 6% on Friday in what has already been an extremely volatile week on forecasts for less cold and heating demand next week than previously expected.

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Traders also noted the market remained focused on unproven rumours that the Freeport liquefied natural gas (LNG) export plant in Texas may not return until December. But with gas prices in Europe TRNLTTFMc1 down about 13%, traders noted rumours about Freeport were not necessarily the cause of the latest U.S. price drop since a delayed Freeport startup should cause global gas prices to spike higher.

Front-month gas futures NGc1 fell 36.0 cents, or 5.8%, to settle at $5.879 per million British thermal units (mmBtu). That put the contract down about 8% for the week after gaining about 15% and 13% during the prior two weeks.

Rapid price changes over the past couple of weeks – futures gained or lost more than 5% on eight of the past 10 days – boosted the contract’s 30-day implied volatility index NGATMIV to  its highest level since hitting a record in October 2021 for a third day in a row. The market uses implied volatility to estimate likely price changes in the future.

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South Korea : Samsung heavy industries bags $446 million order for LNG carrier pair

South Korean shipbuilder Samsung Heavy Industries (SHI) has received an order for the construction of two liquefied natural gas (LNG) carriers.

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The company behind the order is an undisclosed shipowner based in Africa, according to a stock exchange filing. The value of the contract is 589.7 billion won ($446 million). The two LNG carriers are slated for delivery by March 2026.

Other details of the contract were not revealed.

With this deal, SHI has managed to fulfil 89% of its annual $8.8 billion target of $8.8 billion. So far, the shipbuilder increased its cumulative order receipts to 41 ships which are worth around $7.8 billion.

Only in June this year, SHI succeeded in signing a $3 billion order worth of orders for 14 LNG carriers. The contracts were inked with undisclosed shipowners from Bermuda and Africa.

Last month, the South Korean company delivered a newbuild liquefied natural gas (LNG) carrier to Greek shipping company Minerva. The vessel Minerva Amorgos is a 174,000 m3 LNG carrier which features WinGD XDF propulsion, Mark III Flex+ containment system and Airliquide subcooler system.

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Netherlands : Nordsol, Attero and Titan team up to produce bio-LNG for maritime sector

Nordsol, Attero and Titan have collaborated on the FirstBio2Shipping project for the production of bio-liquefied natural gas (bio-LNG) to support sustainable maritime transport.

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To attain decentralised production of the fuel, the partners have reached a final investment decision to build a plant at the facility of waste processor Attero in Wilp, the Netherlands.

With the first delivery of bio-LNG expected in early 2024, the plant will generate about 2,400tpa of bio-LNG or liquefied biomethane.

Attero will be involved in the processing of domestic bio waste into six million normal cubic metres of biogas on a yearly basis.

Using its patented iLNG technology, Nordsol will work with Attero to generate 2,400t of high-purity bio-LNG and 5,000t of liquid bio-CO₂ from the biogas annually.

As the exclusive long-term off-taker, clean fuel supplier Titan will deliver this bio-LNG to customers in the maritime sector.

Compared to conventional maritime fuel, the bio-LNG produced by the companies is anticipated to lower greenhouse gas (GHG) emissions by 92%.

Nordson commercial director Léon van Bossum said: “Nordsol is committed to making bio-LNG mainstream together with various partners.

“In 2021, we built the first Dutch bio-LNG installation to make road transport more sustainable. As a frontrunner, we are proud to also contribute to the decarbonisation of the maritime sector, together with Titan and Attero.

“The FirstBio2Shipping project is intended to start a snowball effect, resulting in more and larger installations that help make shipping more sustainable.”

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Qatar : Qatar will expand liquified natural gas storage facility in South Wales

The Gulf state of Qatar is to invest millions of dollars in expanding a liquified natural gas, or LNG, terminal at Milford Haven in South Wales to cope with increasing demand amid the global fuel crisis.

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The two most significant global players in the LNG industry are Qatar and the United States, and at the same time as a new $10 billion Golden Pass terminal is being developed in Texas, state energy company QatarEnergy and its US partner ExxonMobil are increasing the capacity of the Welsh facility which was completed in 2009.

It is hoped the Milford Haven expansion will allow for its LNG capacity to increase by around 25 percent, as countries around the world continue to look for alternative energy supply sources amid the ongoing conflict in Ukraine.

The Doha News website reports that even before the conflict began, in 2021 around 17 percent of the United Kingdom’s gas came from Qatar, the world’s biggest LNG exporter, and despite government statements criticising fossil fuel production, that demand has grown in recent years.

The Milford Haven site, known as South Hook, is one of Europe’s largest LNG terminals. It currently has an annual capacity of 15.6 million tons of LNG, and The Daily Telegraph newspaper reports that the aim is to get capacity up to closer to 20 million tons by the middle of 2025.

At the start of the Ukraine conflict, the Guardian newspaper reported that Qatar had existing long-term contracts for most of its exports to be sold to Asian markets, but there was believed to be “some flexibility” about these arrangements.

In addition to its own requirements, Britain has become a so-called gas bridge to Europe, only serving to heighten the importance of the Milford Haven facility.

Germany, which is Europe’s biggest gas market, has no LNG import terminals whatsoever, and although imports to Europe could be stepped up significantly, it is thought that challenges including the lack of infrastructure could take up to a decade to overcome.

Brexit has also placed further obstacles in the way but earlier this week the German government expressed a willingness to cooperate with the UK over energy supplies.

Unseasonably mild weather recently has shielded the continent from the full impact of reduced fuel supplies, but there has been much discussion about contingency plans for possible power problems

in the new year, and there are longer-term challenges as supplies from Russia remain shrouded in Uncertainty. “I think everyone’s now thinking about what’s going to happen next year,”  Graham Freedman, principal analyst for European gas at global consultancy Wood Mackenzie, told the Telegraph  “It’s a question of will there be enough to meet demand and fill up storage.”

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LNG as a Marine Fuel/Shipping

Sakura : JAX LNG completes first STS LNG bunkering of NYK Line vessel

Sakura Leader offloaded cargo at the Jacksonville Port Authority’s (JAXPORT) Talleyrand Marine Terminal where JAX LNG completed its bunkering.

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JAX LNG is a small-scale LNG facility specialising in both on-road and marine-loading LNG solutions near the St. Johns River.

Crews loaded approximately 800 metric tons of LNG from North America’s largest LNG bunker barge, the Clean Canaveral, owned by Polaris New Energy.

The occasion marks the first time NYK Line deployed Sakura Leader to the US East Coast from Japan and was the first time the vessel received LNG bunkering in the United States.

JAX LNG is the only supplier in North America with access to two Jones Act LNG bunker barges, the Clean Canaveral and the Clean Jacksonville.

In preparation for this bunkering, JAX LNG worked with Polaris New Energy to charter the Clean Canaveral, as well as with TOTE Maritime Puerto Rico for the possible use of the Clean Jacksonville.

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China : MOL, QatarEnergy sign charter deal for three newbuild LNG carriers

MOL announced that, through a subsidiary, it signed a long-term charter contract for three newbuilding liquefied natural gas (LNG) carriers with QatarEnergy.

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The vessels will be built at Hudong-Zhonghua Shipbuilding in China, and are scheduled for delivery in 2027.

MOL signed a long-term charter contract with QatarEnergy in April 2022 for four newbuilding LNG carriers, and the relationship between QatarEnergy and MOL will be further expanded by three LNG carriers through the latest contract.

QatarEnergy is undertaking the North Field Expansion Project to increase its LNG production capacity to 126 million tons per annum by 2027. MOL, through its further participation in LNG projects in Qatar, will contribute to stable global LNG supply and enhance the maritime transport of the next-generation, environment-friendly energy resources.

Addressing environmental issues in line with the “MOL Group Environmental Vision 2.1”, the group implements comprehensive, ongoing efforts to achieve sustainable net zero GHG emission and contribute to the realisation of a low- and decarbonized society.

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Europe : Ships carrying $2 billion in natural gas are waiting off Europe’s coast

More than 30 tankers carrying liquefied natural gas are idling off Europe’s coast as traders hold out for higher market prices, the Financial Times reported. The ships, which combined are carrying LNG worth $2 billion, are at sea around north-west Europe and the Iberian peninsula, the FT reported Friday,

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citing Vortexa data: “LNG vessels have been queued up outside European LNG receiving terminals, chasing what they expected to be the premium market for this LNG,” Vortexa’s Felix Booth told the FT. Booth said it will likely take another month for the tankers to find a terminal to offload their cargo, as access has become more restricted as storage sites have filled up: “For now, these vessels have incentive to hold positions,” he said, as the expectation is that colder weather will ultimately drive up demand for energy and in turn drive up prices.

Dutch TTF natural gas futures, the benchmark European price, were down 3.42% at 121.145 euros per megawatt hour at last check Friday on the ICE exchange. That marks a 60% drop since their summer peak. Russia’s state-energy giant has also threatened it will completely slash natural-gas flows to Europe if it imposes a gas price cap on Moscow’s energy, another potential driver of higher prices.

Another 30 vessels are expected to join those offshore ahead of the winter months, per the FT. A backup of LNG tankers similarly occurred in Spain in mid-October, given the country’s storage sites fill up fast as European countries scramble to replace Russian gas before winter.

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

Netherlands : Ignitis to import biomethane into Lithuania

SG dujos will be the first company in the country to use the biomethane to replace natural gas. Biomethane is a sustainable alternative to fossil fuels, which meets the natural gas standard completely because it has an equivalent chemical formula (CH4). According to Saulius Bilys, Head of Strategic Development at SG Dujos, with the launch of biomethane imports, vehicle fleets that use natural gas (methane) can already fully replace them with zero emissions fuel.

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Ignitis is hoping that in 2023 it will also be able to offer biogas produced in Lithuania itself.

“We will import biomethane from the Netherlands” said Haroldas Nausėda, Head of B2B Clients and Expansion at Ignitis. “Even though biomethane can be purchased globally, according to the highest standards, the importing and exporting parties must be connected via a common gas network. This means that the biomethane molecule entering the gas network must be able to travel to Lithuania and the customer’s gas consumption points. In this case, we ensure uninterrupted supply chain between the Netherlands and Lithuania. The gas will travel through the pipelines of the Netherlands, Germany, Poland and Lithuania – this requires managing quite complex processes.”

The leading country in Europe in biogas and biomethane production is currently Germany. According to International Energy Agency data, in 2010–2018 Germany had the largest share of installed biogas production capacities, and biogas is produced using biomethane.

Both Ignitis and SG Dujos have received ISCC certification (International Sustainability and Carbon Certification) while developing biomethane trading practices, which is necessary to conduct biomethane trading.

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Oregon : NW Natural scraps plans for blended hydrogen and natural gas project

Oregon’s first green hydrogen production project has been shelved after public pushback over potential environmental and health impacts.

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NW Natural, the state’s largest natural gas provider, had proposed to the Oregon Public Utilities Commission in August a plan to create green hydrogen to blend into its natural gas. The company would have pumped the blended gas to 2,500 customers in west Eugene by early 2024.

It pitched the project as an experimental way to reduce its greenhouse gas emissions and to hone production of green hydrogen, which is made when electricity powered from renewable sources is run through water to separate oxygen and hydrogen. The hydrogen is trapped and blended into the natural gas, which is primarily methane, a potent greenhouse gas.

Environmental and social justice groups pushed back, saying the project had little emissions- reduction benefit. They also said NW Natural hadn’t undertaken an analysis of health and safety risks to customers who would burn the fuel in their homes, that the $10 million price tag was too costly and the company’s current customers across the state would be left holding the bill.

Among the six groups that intervened in the approvals process are the NAACP of Eugene-Springfield, Oregon Physicians for Social Responsibility and the Sierra Club.

NW Natural withdrew its proposal on Nov. 1. In the filing to withdraw, NW Natural explained why it chose to scrap the proposal altogether rather than just suspend the approvals process for a few months while it solicited more community input.

“NW Natural is seeking to convey that it is willing to engage in stakeholder outreach without a predefined time limit that would have been included as part of a motion to suspend the procedural schedule, and that it is willing to consider changes to the project in light of such outreach,” NW Natural attorney Ryan Sigurdson wrote. The company had held two meetings with community members prior to August. The company could still file an application for the same project or a revised version of the project in the future, according to the filing.

Critics of the project were particularly concerned with where the blended natural gas would end up.

About 66 percent of the residents in one west Eugene neighbourhood that would be receiving it are considered low-income, and its home to a larger share of people of colour compared to the rest of Eugene, according to the coalition of environmental and social justice groups. Residents are already in an area that deals with high levels of air pollution from nearby factories and with higher rates of childhood asthma compared with the rest of the city, according to an analysis from the Eugene- based nonprofit Beyond Toxics.

When hydrogen is used in a fuel cell, such as for a car, it gives off no emissions, but when it is combusted for heat or for cooking, it generates nitrogen oxide, which can cause respiratory issues, according to the Centers for Disease Control and Prevention.

“Eugene residents will not be forced to be guinea pigs for experimental and dangerous technology that perpetrates fossil fuel infrastructure, environmental injustices and more air toxics,” Lisa Arkin, executive director of Beyond Toxics, said in a statement.

“This project was absolutely unacceptable, and its withdrawal is a testament to the power of community opposition.”

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