NGS’ NG/LNG SNAPSHOT – Nov 1-15, 2023
City Gas Distribution & Auto LPG
Bharat Petroleum begins registration process in Cooch Behar for piped natural gas supply
Authorities of Bharat Petroleum Corporation Limited (BPCL) reached the residence of Rabindranath Ghosh, the chairman of Cooch Behar municipality, and got him to register his name for the facility, which, the authorities said, would be provided by March next year
The registration process for a connection to piped natural gas supply was introduced in Cooch Behar on Wednesday.
Authorities of Bharat Petroleum Corporation Limited (BPCL) reached the residence of Rabindranath Ghosh, the chairman of Cooch Behar municipality, and got him to register his name for the facility, which, the authorities said, would be provided by March next year.
The BPCL is carrying out an awareness campaign across the heritage town on the new facility.
“It is a major development and residents of Cooch Behar town will benefit from it. There are indications that cost will be less if natural gas is supplied through pipelines instead of LPG cylinders…. We want the residents here to avail the benefit…,” said Ghosh.
BPCL officials said that from this week, they would initiate the process of laying pipelines across the town.
“In Cooch Behar, we will provide around 25,000 connections. So far, we have received 7,000 applications and by March next year, we would be in a position to supply gas to 1,000 households,” said B.C. Sikdar, the territory manager (I) of BPCL in Bengal.
GGL opens PNG connections for 3 months
Lucknow: Green Gas Limited (GGL) has opened a window for new Piped Natural Gas (PNG) connections from Wednesday, which will remain open for three months for registration.
Currently, there are around 80,000 PNG connections in the state capital and GGL expects that an additional 50,000 connections will be added. According to the GGL public relations office, the connections are available under three schemes to help every income group to afford it. Under the first scheme, a refundable security deposit of Rs 6,000 has to be paid while applying for the registration form. Under the second scheme, a refundable security deposit of Rs 1,000 is to be paid while applying for registration form and 20 monthly installments of Rs 250 (refundable security deposit) after commencement of gas supply (along with gas consumption bill).
Under the third scheme, only for multi-storey apartments, no fee or deposit is required, but 120 monthly installments of Rs 50 (Refundable security deposit) along with gas consumption bill after commencement of gas supply will be charged.
We also published the following articles recently
GGL opens window for new 50,000 PNG connections in LucknowGreen Gas Limited (GGL) has opened registrations for new Piped Natural Gas (PNG) connections in Lucknow. The company expects to add 50,000 connections to the current 80,000 in the state capital. The cost of PNG is Rs 57.43 per standard cubic meter, which is cheaper than the cost of domestic and commercial gas cylinders. GGL is offering three schemes to make the connections affordable for different income groups. Registration can be done by calling GGL customer care or visiting their office.104891604
Long queues form in front of RBI from 4am to deposit Rs 2,000 notesLong queues formed outside the Reserve Bank of India (RBI) in Kolkata as people rushed to exchange or deposit their Rs 2,000 notes. There were concerns that the scheme would be discontinued, causing a record crowd to gather at the RBI office. Over Rs 2 crore worth of Rs 2,000 notes were exchanged or deposited on Tuesday. However, many people were disappointed as the four-hour window for the service was too short, causing some to miss out. Security guards and police were deployed to manage the crowd.104873237
Double-engine govt connecting all with welfare schemes: YogiChief Minister Yogi Adityanath emphasized that the government is focused on providing benefits of government schemes to all communities, regardless of caste. He announced plans to provide homes to needy individuals from the SC community and highlighted the efforts made to ensure SC and ST welfare schemes are reaching those deserving. Adityanath also mentioned the restoration of Lalapur, associated with Rishi Valmiki, and the development of pilgrimage sites linked to Babasaheb Bhimrao Ambedkar. He distributed certificates and demo cheques to beneficiaries and performed a rice-feeding ceremony for a six-month-old girl.104838347
GAIL Gas launches refuel scheme for CNG vehicles
A CNG gas filling station set up by GAIL near Beggars’ Colony, off Magadi Road.Credit: DH File PhotoIn a bid to encourage the adoption of Compressed Natural Gas (CNG) for vehicles in the city, GAIL Gas launched a promotional scheme to incentivise commercial vehicles on Wednesday.
The scheme, valid till December 31, provides a free CNG refuel system in different slabs for different categories of vehicles.
GAIL Gas has tied up with Paytm to provide CNG vehicle owners gift cards with a fixed pre-loaded amount. People can redeem these gift cards to refuel their vehicles at any of the over 100 CNG stations operated by GAIL Gas in the Bengaluru Urban and Rural districts.New CNG commercial vehicles, including auto-rickshaws, small- and medium-load carriers, buses, and trucks, will be provided with gift cards worth Rs 14,000, Rs 25,000, and Rs 75,000, respectively. New commercial taxis can also avail up to Rs 25,000 to incentivise bulk purchase of CNG vehicles.Older commercial vehicles, including buses, trucks, and small- and medium-load carriers, can apply for retrofitment and register as CNG vehicles. Once registered within the next two months, they will also be eligible for a gift card with the relevant pre-loaded amounts, according to their slab.
Assam: 65,000 consumers to get piped gas in Guwahati from mid-Feb 2024
Guwahati: 65,000 residents of Guwahati city will get piped cooking gas at their doorstep at a more reasonable price from mid-February 2024 as Purba Bharati Gas Pvt Ltd (PBGPL) will commission their first phase of Piped Natural Gas (PNG) project from Geeta Nagar to Six Mile to supply piped gas to domestic, commercial and industrial sectors in the city.
PBGPL, a joint venture company of Assam Gas Company Limited, OIL India Limited, and GAIL Gas Limited, PGPL is authorised by the Petroleum and Natural Gas Regulatory Board (PNGRB) to lay, build, operate and expand city gas distribution project in geographical areas of Silchar, Hailakandi, Kamrup and Kamrup Metropolitan cities.
“We are targeting to supply PNG to 3.21 lakh consumers in Guwahati in the next eight years. We are taking up an Rs. 2,600 crore project for Kamrup, Kamrup (Metro), Silchar, Hailakandi and Karimganj for PNG supply,” PBGPL CEP Maanoj Baruah said addressing a press conference here on Friday.
“Guwahati will be linked with the national Gas Grid after the completion of Barauni-Guwahati Pipeline in February, next year. We can start commission of the first phase of the project after completion of this line in mid-February,” Baruah said.
Under phase I, Geeta Nagar, Narengi, Six Mile, Borbari, Panjabari, Satgaon, Hatigaon, Beltola, Jayanagar, Khanapara, Bonda and Hengerabari will be covered.
Under the second phase, Ganeshguri, Kahilipara, Christianbasti, Ulubari, Bhangagarh, Bamunimaidam, Noonmati and Uzan Bazaar will be covered.
Under the final and third phases, Boko, Mirza, Azara, Ranagia, Sonapur, Rampur and Chhaygaon will be projected.
“The final phase of the project will be completed in 2025-26,” the CEO said.
The PBGPL is also working in three cities of Barak Valley to supply piped natural gas to the city’s consumers.
“We will utilise natural gas from ONGC in Silchar. Around 800 consumers of Silchar city have been purchasing our gas. We will start fresh supply of piped gas to 150 consumers from December 1, this year,” Baruah also said.
“Five CNG stations are also coming up in Barak Valley, one of them will commission very shortly,” Baruah further said.
Notably, the works of the Baihata-Shillong-Silchar pipeline
The company, having a 48 per cent share of Assam government will also provide CNG (Compressed Natural Gas), a clean fuel for 100 city buses under Assam State Transport Corporation (ASTC) in the city.
The PBGPL on Friday signed seven commercial and industrial consumers of the city, including Lokpriya Gopinath Bordoloi International Airport (LGBIA), DS Pal, Greenhood Hotel, Hotel Lily, Radisson Blu Hotel, Hotel Vivanta and Purabi Dairy for the supply of PNG under the first phase.
The Central government’s Hydrocarbon Vision 2030 for the Northeast has opened up several vistas of economic development through natural gas. Assam has so many reserves of natural gas that it can fuel its economy based on this clean and green fuel.
“We have maintained best safety norms in the installation of infrastructure for the supply of gas to consumers to avoid disaster,” PBGPL chief operational officer Partha Pratim Adhyapaaak said.
At the same time, Indradhanush Gas Grid Limited (IGGL) Indradhanush Gas Grid Ltd is laying a 1656 km long natural gas pipeline connecting the capital cities and the demand centres of all eight northeastern states.
The IGGL has achieved cumulative progress of 76.39 per cent, closely aligned with the scheduled progress of 78.37 per cent, with a target of laying a 1656 km North East Gas Grid (NEGG) pipeline at a total project cost of Rs. 9,265 crore.
IGGL, a joint venture of five major petroleum PSUs viz. IOCL, ONGCL, GAIL, OIL& NRL, are implementing the North East Gas Grid Project (NEGG) for ushering in a gas-based economy in the northeastern region of India.
The project is being implemented under the ambitious Pradhan Mantri Urja Ganga Gas Pipeline Project.
To date, IGGL has completed a lowering of 694 km, out of a total 1656 km length of the network.
Policy Matters/ Gas Pricing/ Others
5 big financial changes that are coming into effect from today
Every month, on the first, new financial rules are announced which are to be followed. Hence, on November 1 also there are several guidelines which will come into effect. These guidelines may or may not be new or updated and they are applicable on a common person’s life.
It is important to know these new rules that will come into effect from today i.e., November 1, 2023. Some of the guidelines are as mentioned below:
Gas prices: On the first day of every month, the prices or rates of CNG (Compressed Natural Gas), LPG (liquified petroleum gas) and PNG (piped natural gas) are announced and they stay fixed for the entire month.
Laptop Import: The government enforced immediate limitations on the import of seven products, such as laptops, personal computers (PCs), and tablets categorized under HSN 8741 on August 3. However, the implementation of these restrictions was postponed until October 31, which is today. Until any further policy adjustments are declared, obtaining clearance for these seven items will necessitate a valid ‘License for Restricted Imports.’
Lapsed LIC Policy Reopening: October 31 marks the final day for reopening a lapsed LIC policy.
Transaction Fees: The Bombay Stock Exchange (BSE) is set to increase charges for transactions within the equity derivative segment. This decision was communicated by the BSE on October 20.
Only CNG, EV, BS VI compliant cars allowed in Delhi as air quality worsens
Only those vehicles compliant of the Bharat Stage VI emission norms, along with those plying on compressed natural gas (CNG) and electric batteries, will be allowed to enter Delhi from other states, as per an official order issued on November 5.
The entry of polluting trucks and commercial four-wheelers have been banned in the national capital, the order added.
The norms have come into immediate effect as the government has decided to implement stage-IV measures of the Graded Response Action Plan (GRAP).
The GRAP comprises of a set of measures that are to be adopted in cases of worsening air quality. The measures have been drafted by the Centre’s Commission for Air Quality Management (CAQM).
Delhi has been reeling under ‘poor’ to ‘severe’ AQI since October-end. As of 4:30 pm on November 5, the air quality in the national capital was categorised as ‘severe’ by the Central Pollution Control Board.
Apart from the ban on entry of polluting vehicles, the 8-point action plan under stage IV of GRAP includes a ban on construction and demolition activities in the national capital, including those related to construction of flyovers, bridges and roads.
The norms also mandate work-from-home for 50 percent of staff in government and private offices.
The measures also mandate the governments of Delhi and states with parts of the national capital region (NCR) to decide on discontinuing offline school classes even for students in VI-IX and XI grades. Primary schools for children till fifth grade have already been shut till November 10, in view of the hazardous air quality.
PNGRB firm on common carrier rule, despite protests by CGD firms
The Petroleum and Natural Gas Regulatory Board’s (PNGRB) move to end the dominance of city gas companies like Indraprastha Gas and Mahanagar Gas in their respective markets and make all such entities come under a network of ‘common carrier’ is still facing ‘resistance’ from these companies, a member of the board told FE. However, the board is firm on the common carrier principle (CCP) and plans to work on it for its smooth implementation, he said.
“Currently, there is a resistance from entities but we are coming out with ways and telling them that they have to do this,” the member said. “Whoever has the monopoly does not wish to end it. But we have to see the consumers’ point of view. Ultimately, the end consumer will have the choice and they should be benefited.”
The city gas distribution companies have for long been showing angst against the regulation as it will impact their share in their own respective major markets, forcing them to reserve a part of their pipeline capacity for a third party. When the PNGRB first unveiled CCP in 2003, cross-country pipelines were exempted and some leeway was given to gas producers like Reliance to own and operate pipelines up to a certain distance from the production sites without having to face competition. Trunk pipelines for transportation of gas across the country for long distances are, however, being largely shifted to CCP regime.
However, the regulator is making efforts to ensure that in the distribution segment which is closer to end consumers too, the principle is implemented. Litigation is impending the move.
State-run GAIL India, which owns the largest gas transmission network in the country with nearly 75% share, has laid down the Natural Gas Pipeline Open Access System to apply for booking of its capacity on common carrier/contract basis.
A common carrier system implies that capacity in a natural gas pipeline, over and above the pipeline entity’s own requirement and capacity allocated on a contract carrier basis, will be made available to any other entity on a non-discriminatory “first-come-first served” basis, subject to the latter entering into a contract with the network owner.
On declaration of a CGD network as common carrier, the authorised entity is subjected to provide access on demand to any other entity and recover the transportation rates for CGD from an entity accessing the CGD network, according to the Board’s official notification.
Further, the relevant notification said that the CGD companies should provide access or connectivity of their infrastructure to any other interested third party within 270 days of submission of request for the same at a reasonable cost.
“We have to generate a kind of environment for consumers that they have the option, but the realisation of the same takes time,” the member said. “Currently, it has started happening in Delhi and Mumbai and consumers are being benefitted.”
CGD companies have earlier argued that any infringement on the infrastructure is not appropriate and will harm their interests who have been spending huge amounts on creating it.
Further, talking about the implementation of One Nation One Gas Grid, the member said that people have started using it and so far the Board has not received any complaints. “Initial first year we have given a period where we are seeing if any major problem is there,” the member said. “So, after one year we will see if any tweaking is required to be done.”
PNGRB’s aim with One Nation One Gas Grid was to join several regional grids and create a national grid that will supply natural gas-produced energy to multiple stakeholders including the public and the commercial sector.
IGL’s current PNG (piped natural gas) penetration is around 40% in Delhi and is expected to grow to 60-65% in the next 4-5 years, the member said. MGL’s PNG penetration is at 30-35%.
PNGRB to hire knowledge partner for tariff setting and gas exchange scrutiny
The role of the knowledge partner will be to provide support in executing the PNGRB’s mandates, including setting tariffs for natural gas pipelines and city gas distribution, and overseeing the operations of gas exchanges as directed by the Government of India.
New Delhi: The Petroleum and Natural Gas Regulatory Board (PNGRB) is planning to hire four knowledge partner to assist in the determination of tariff rates, review submissions by gas exchanges, and undertake extensive research and studies in the sector.
The role of the knowledge partner will be to provide support in executing the PNGRB’s mandates, including setting tariffs for natural gas pipelines and city gas distribution, and overseeing the operations of gas exchanges as directed by the Government of India.
“The Knowledge Partner is expected to possess a deep understanding of the oil and gas sector and the wider energy landscape,” a tender document reads. The partner will engage in reviewing and suggesting amendments to existing regulations, aiding in public consultation processes, and developing guidelines and regulations related to tariffs and gas exchanges.
Among the key responsibilities, the knowledge partner will also analyze submissions by gas exchanges, compare international regulatory practices, and provide strategic advice on policy matters. The PNGRB emphasizes the need for comprehensive analysis and learning from global and domestic practices to support its vision of enhancing the natural gas infrastructure in India.
The scope of work includes regulatory reviews, tariff determinations, strategy support, and any other tasks assigned by the PNGRB. The agency seeks a firm that can deploy two full-time resources at its New Delhi office for a period of two years, reflecting the extensive and ongoing nature of the work involved.
As per the PNGRB Act 2006, the regulatory body is tasked with overseeing various segments of the petroleum and natural gas industry to protect consumer interests and promote a fair and consistent supply throughout the country. This excludes the actual production of crude oil and natural gas but includes refining, processing, storage, transportation, distribution, marketing, and sale.
Electric Mobility/ Hydrogen/Bio-Methane
Electric 3-wheeler industry maintains strong double-digit growth in October: 56,818 units, up 58%
The transition to e-mobility in India is happening fastest in the three-wheeler market where every second unit sold is electric. From 34,333 units in January 2023, sales have consistently increased every month and cumulative 10-month retails are up by a robust 72% YoY.
In India’s fast-growing electric vehicle industry, the two- and three-wheeler segments, which are the most affordable compared to their four- and more-wheeled brethren, are setting the pace. While the electric scooter and motorcycle segment leads in terms of sheer volumes, the rate of transition to zero-emission mobility is fastest in the three-wheeler market, where now every second product sold is an electric model. October 2023 numbers as well as cumulative January-October 2023 retail sales are ample proof of that.
This e-three-wheeler sub-segment, which sells passenger-transporting e-rickshaws and cargo-carrying three-wheelers, continues to witness strong double-digit growth thanks to sustained demand for passenger transportation and from last-mile operators for e-commerce applications, food deliveries and other applications.
Compared to fossil fuel or CNG-powered models, the long-term wallet-friendly proposition of electric three-wheelers is drawing both single-user buyers (autorickshaw drivers) as well as fleet operators. As per data available on the government of India’s Vahan website, as of November 2, a total of 56,818 electric three-wheelers were sold last month, up 58% YoY (October 2022: 35,906 units). This segment has maintained a consistent growth trajectory, having opened CY2023 with 34,333 units and crossing the 50,000-unit monthly sales mark for the first time in July with 53,746 units.
EV SHARE OF INDIA’S 3-WHEELER MARKET EXPANDS TO 54%
The level of electric three-wheeler penetration is rising fast. In fact, every second three-wheeler sold in India is now electric. As per Vahan, overall three-wheeler sales in India last month were 104,712 units, with e-wheelers accounting for 54% of them. In January 2023, when 70,929 three-wheelers were sold, the EV share was 48%, which is reflective of the shift.
Cumulative 10-month sales of e-three-wheelers at 471,154 units are up 72% YoY (January-October 2022: 274,245 units) and account for 53% of total three-wheeler industry retails of 881,355 units.
Of the nearly 475 players in the market, we have shortlisted the Top 40 OEMs in terms of sales in October. Mahindra Last Mile Mobility (MLMM), the market leader in FY2023 with over 35,000 units and a 9% share, maintains its leader position status with 5,099 units and January-October retails of 43,958 units. The company, which expanded manufacturing capacity in April with a new line for its Treo e-three-wheelers at the Haridwar plant, currently has six EVs on sale – the Treo, Treo Yaari and e-Alfa Mini for passenger transport and the Zor Grand, Treo Zor and the e-Alfa cargo for goods transport.
YC Electric Vehicles, the firm No. 2 player, has recorded its best monthly sales this year at 4,067 units, and cumulatively 33,143 units in the first 10 months of this year. YC EV has five products – the Yatri Super, Yatri Deluxe and Yatri for passenger duties and the E-Loader and Yatri Cart for cargo operations. Low initial cost, from Rs 125,000 to 170,000 for passenger EVs, and Rs 130,000 to Rs 165,000, is what is driving demand for this OEM.
Third-placed Saera Electric Auto saw sales of 3,133 units in October 2023 and a cumulative 10-month tally of 23,973 units.
Piaggio Vehicles, which is also recording strong market gains, clocked its best monthly retails in the year to date in October: 2,202 units. Janaury-October 10-month sales add up to 16,493 units, the company benefiting from its new models and aggressive network expansion. Last December saw Piaggio launch two new models – the Apé E-City FX Max passenger model (with 145km range) and Apé E-Xtra FX Max cargo carrier (115km range), both fully assembled by an all-women team at its Baramati factory in Maharashtra.
There are eight other OEMs which have sold over 1,000 units each last month. Dilli Electric Auto (2,186 units), Mini Metro (1,355 units), Champion Polyplast (1,259 units), Energy EV (1,120 units), Unique International (1,103 units), Allfine Industries (1,101 units)), SKS Trade India (1,043 units)) and JS Auto (1,016 units).
The Top 12 OEMs, each with four-figure sales, cumulatively sold 24,684 units in October 2023, effectively having a 43% share of the total e-three-wheeler market, leaving the remaining 56% of the market to the other 463 manufacturers to battle it out in the arena. The data table below reveals that the battle down the line is intense, with many OEMs separated by just a few units.
Interestingly, Bajaj Auto, which has recently entered this market, has sold a total of 2,080 units in the past five months, its sales growing smartly month on month from 124 units in June through to 866 in October. The company is currently ranked 13th in the 475-player market.
3-WHEELER SHARE OF INDIA’S EV MARKET RISES TO 40%
In CY2022, a total of 350,238 e-three-wheelers were sold in India. At the current rapid pace of growth, their sales in CY2023 are expected to surpass the 550,000-unit mark and achieve strong 57% YoY growth.
Concurrently, from an overall EV industry perspective, electric three-wheelers are making their presence felt. In October 2023’s total EV sales of 139,232 units, e-three-wheeler share was 40%, up from 30% a year ago (October 2022: 35,906 units out of total 117,498 EVs). Cumulative 10-month retails at 471,154 units make for a 38% share of the total 1.23 million EVs sold in India between January and October this year.
Servotech Power Systems to install 5,000 EV charging stations in India
New Delhi: Servotech Power Systems on Tuesday announced plans to install 5,000 EV-charging stations across the country. In this regard, Servotech Power Systems said it has incorporated a subsidiary, Servotech EV Infra, which will do the business as a Charge Point Operator (CPO) for these EV chargers.
“Servotech Power Systems is foraying into the EV CPO business by establishing its wholly owned subsidiary. It will manufacture and supply EV chargers to Servotech EV Infra which will do business as a CPO for these EV chargers,” the company said.
On the rationale behind the move, the company said the EV charging market is expected to grow rapidly in the coming years as the government is targeting 30 per cent of all vehicles to be electric by 2030.
Natural Gas / Transnational Pipelines/ Others
Canada: Pipeline Installation a Positive Sign for Canadian LNG Exports
TC Energy Corp. has welded the last stretch of the Coastal GasLink pipeline into place, adding to signs that a huge facility to export liquefied natural gas off Canada’s west coast is on track to start up on time, or even early.
All of the pipes along the 670-kilometer (416-mile) route through northern British Columbia have been connected — with the so-called “golden weld” occurring on Oct. 7 — as well as coated, lowered into trenches and hydro tested, Calgary-based TC Energy said Monday. The next stage, called mechanical completion, involves additional documentation and engineering analysis before natural gas is introduced.
The development may add to growing excitement in the Canadian energy industry about the speed of construction at the LNG export project that the pipeline feeds. LNG Canada — backed by Shell Plc, Mitsubishi Corp. and PetroChina Co., among others — has been billed as the single largest private sector investment in Canadian history and a way for the country’s gas producers to ship their output to new markets where they can garner higher prices.
“Based on everything that we’re hearing and seeing, LNG Canada may start taking some test gas volumes by the middle of next year,” RBN Energy managing director Martin King said in an interview before the Coastal GasLink announcement. That would be earlier than the “middle of the decade” timeline LNG Canada has publicly provided, he said.
“There’s a palpable sense in the gas business that we’re going to actually have a real, viable outlet for Canadian gas exports other than the United States,” he said.
The optimism on LNG Canada’s completion contrasts with the lengthy delays faced by other major energy projects, such as the Trans Mountain oil pipeline expansion. Canada doesn’t currently have a major coastal LNG export facility, forcing it to send all of its excess gas south to the US, where prices are a fraction of what producers would garner in Asia. LNG Canada’s first phase is expected to chill and export enough gas to supply 20 million households in Japan for a year.
The LNG Canada group has dropped a number of clues about its progress. One job posting seeks a candidate who will move from the project site in Kitimat, British Columbia, to Calgary “after the LNG facility has achieved steady state operations” at the end of next year to mid-2025.
“Everything we’ve heard is that everything is going smoothly,” said Jamie Heard, head of capital markets at Tourmaline Oil Corp., one of Canada’s largest natural gas producers.
LNG Canada spokesperson Brian Hutchinson said that the project is 85% complete overall and that commissioning and startup activities will begin in 2024, though he said they will take a full year. He reiterated the consortium’s previous forecast of first cargoes shipping by the middle of the decade.
LNG Canada’s investors haven’t made a decision yet on a second phase of the project, which would add two more liquefaction units.
Work on Coastal GasLink “made tremendous progress” through the summer, putting the project on track for mechanical completion prior to the end of the year, TC Energy spokesperson Suzanne Wilton said, adding that reclamation work will continue into 2024.
The project is expected provide welcome relief for Canadian natural gas producers that have been so frustrated by a lack of LNG export infrastructure that they have launched a project of their own and also sent gas all the way to export facilities in Texas.
“It’ll be huge,” said Cameron Gingrich, managing partner at energy consulting firm Incorrys Inc. “There’s a lot of money that will go toward filling that pipeline and project.”
US: Coastal GasLink LNG pipeline 100% constructed
In a significant development for Canada’s energy sector, TC Energy Corp. announced on Monday that it has successfully completed the physical construction of the Coastal GasLink pipeline.
Company officials note that the milestone marks a pivotal moment in a project that has been in the works for over a decade.
The Coastal GasLink pipeline, spanning an impressive 670 kilometers from Dawson Creek, BC, to Kitimat, BC, is poised to play a pivotal role in the country’s energy landscape.
Upon completion, it will deliver natural gas to the LNG Canada project, a joint venture led by Shell. The project’s primary objective is to liquefy and export this natural gas to lucrative Asian markets.
Construction has been a multi-year endeavour involving thousands of workers and contractors. The culmination of these efforts occurred on October 7th near Kitimat, as the final weld was completed.
While the physical construction is now concluded, TC Energy anticipates that mechanical completion of the pipeline, which includes final testing and documentation, will be achieved by the end of this year.
Once operational, the Coastal GasLink pipeline will serve as a crucial transportation corridor for natural gas. The LNG Canada facility is still under construction and anticipated to be completed by the mid-decade.
Despite their potential benefits, both projects have faced substantial opposition from environmental and Indigenous groups.
Liquified natural gas industry leaders gathered at the LNG 2023 conference earlier this year said there is growing momentum for Canada to take a leading role in supplying the world with the essential energy source.
The ongoing gas deficit in Europe, a result of disruptions caused by Russia’s invasion of Ukraine, underscores the increasing long-term demand signaled by Asian and other economies.
According to Petronas CEO Muhammad Taufik, the “high-quality” LNG produced in Canada is in high demand, and Canada is poised to capitalize on this opportunity. However, he emphasizes that the window of opportunity may close should the Canadian government not rise to the occasion.
“A call-out to our Canadian friends: You do have probably one of the most unique opportunities to be part of the global solution,” said Taufik.
“You are just naturally positioned to cater to these markets, and I think it would be a huge opportunity lost if we do not pivot to actually respond to those needs.”
Canada: Northern B.C. pipeline connector recommended for approval
Two parallel, 215-kilometre long natural gas liquids pipelines from B.C. to Alberta proposed by NorthRiver Midstream have been recommended for approval by the Commission of the Canada Energy Regulator.
The commission held oral Indigenous knowledge sessions in Fort St. John in January 2023, allowing affected First Nations to respond to different versions of offset plans to mitigate impacts.
Authorization for construction and operation of the connector project should be subject to 49 conditions, recommended the commission in its October 18 report.
The conditions are related to construction, safety, environmental protection, minimizing greenhouse gas emissions, offsets, employment and monitoring, as well as incorporating Indigenous knowledge and engagement from affected First Nations.
The proposed project would be located 25 km northwest of Wonowon, B.C., connecting to a site in the Gordondale area of Alberta, approximately 19 km east of the B.C. and Alberta border. The project is intended to meet needs for growth volumes of natural gas liquid and condensate from the Montney region in northeast B.C.
Due to the Yahey v British Columbia decision and the project’s location, it requires express negotiation and consultation over resource industry use with First Nations in the region.
As of part of its application, NorthRiver acknowledged there would be adverse cumulative effects in the project area and committed to implementing measures to offset those effects.
The commission concluded that NorthRiver should contribute to the Blueberry River First Nation – B.C. Restoration fund, the Treaty 8 Restoration Fund, and establish an Indigenous-led land fund to help offset impacts.
The Canadian Energy Regulator Act requires that the commission’s recommendation report be submitted to the Minister of Energy and Natural Resources. The minister will then take the recommendation report to the Governor in Council, who will decide whether to direct the commission to issue a certificate.
Global LNG Development
US: Chesapeake pens US LNG supply deal with Vitol
US shale gas producer Chesapeake Energy has signed a heads of agreement with Geneva-based trader Vitol to supply the latter with liquefied natural gas (LNG) from a liquefaction plant in the US.
Under the 15-year deal, Chesapeake Energy Marketing will supply up to 1 million tonnes of LNG per year to Vitol with the purchase price indexed to Japan Korea Marker (JKM).
Following the execution of the deal, Chesapeake and Vitol will jointly select the “most optimal liquefaction facility in the US” to liquefy the gas produced by Chesapeake for delivery to Vitol, according to a statement by Cheseapeake.
The agreement has a targeted start date in 2028.
Nick Dell’Osso, Chesapeake president and CEO, said today’s announcement “marks another important step on our path to ‘Be LNG Ready’, and is further recognition of the premium rock, returns, and runway of our advantaged portfolio and the strength of our financial position.”
“We look forward to entering into additional agreements as export capacity continues to come online,” he said.
In March, Chesapeake signed a similar deal with Geneva-based trader Gunvor.
Under this deal, Chesapeake will supply up to 2 million tonnes of LNG per year to Gunvor with the purchase price indexed to JKM for a period of 15 years.
After that, the two firms signed a non-binding deal with Texas-based Energy Transfer related to long-term LNG offtake from the latter’s proposed Lake Charles LNG export facility in Louisiana.
In addition to these deals, Chesapeake entered last year into a term gas supply agreement with the Golden Pass LNG terminal, owned by QatarEnergy and ExxonMobil.
On the other hand, Vitol’s LNG volumes rose last year as the company’s portfolio responded to increased demand from Europe.
In June, Vitol signed a three-year deal to offtake volumes from Indonesia’s Bontang LNG facility in East Kalimantan, while its 10-year deal with US firm Tellurian, the developer of the Driftwood LNG terminal, was terminated last year.
Japan: Lake Charles LNG in talks with Japan’s Kyushu Electric over long-term supply deal
Japan’s Kyushu Electric Power Company is in talks over a potential long-term LNG contract tied to Energy Transfer’s proposed Lake Charles export project in Louisiana, according to a recent filing at the US Department of Energy.
Kyushu President and CEO Kazuhiro Ikebe disclosed the talks in a letter dated Oct. 24 to the DOE that said the Japanese utility is also considering an equity investment in the project. Ikebe said in the letter that the long-term LNG purchases and the equity investment will have the backing of Japan’s Ministry of Economy, Trade and Industry, or METI, “in the case that the LNG export to Japan is approved and Energy Transfer reaches [a] final investment decision” on Lake Charles.
The letter from the top Kyushu executive was among dozens submitted to the DOE in support of Energy Transfer’s application for a new export license for Lake Charles that had been submitted to the agency and published online as of Oct. 30. Energy Transfer submitted the application in August, after the DOE in April rejected the developer’s request for a three-year extension to bring the 16.5 million mt/year project online.
Ikebe’s letter did not discuss terms of the potential deal, including the volume of LNG being discussed. Energy Transfer, which did not respond to a request for comment Oct. 30, has in recent months touted a non-binding deal with an unnamed Japanese consortium for 1.6 million mt/year of LNG. The talks with Energy Transfer have been ongoing for “about a year,” the Kyushu executive wrote.
“In the process, we have integrated the requests from several small and medium-sized Japanese gas and electric power companies that have been forced to consider additional LNG procurement due to the increase in geopolitical risks, but are unable to procure North American LNG on their own,” Ikebe told the DOE. “We have been in vigorous discussions with ET on their behalf to secure stable LNG procurement for western Japan utilities, and as a result, we are close to reaching an agreement on specific purchase terms and conditions.”
Beyond METI’s support, Kyushu said it planned to receive financing and participation from the Japan Bank for International Cooperation, a Japanese export credit agency, and from the Japan Organization for Metals and Energy Security, a Japanese government agency.
The DOE’s denial of an extension for Lake Charles dealt a significant blow to the project, leaving in place an existing December 2025 deadline to begin LNG exports from the facility that Energy Transfer told the agency it would not be able to meet. Other potential customers of the project, including Shell, EQT and South Korea’s SK Gas, have also urged the DOE to issue the new export license.
In seeking the export license, Energy Transfer emphasized offtake agreements it has secured to support the project that include binding long-term deals covering 7.9 million mt/year and preliminary deals covering some 3.6 million mt/year, including the deal with the unnamed Japanese consortium.
Kyushu, which imports a large amount of LNG from Australia, also pointed to interest in Lake Charles volumes from other buyers in Asia.
“In addition to Japan, companies in South Korea and Thailand have shown strong interest in the project, both in terms of LNG supply and equity participation, making it an important project for energy security in the Asian region,” Ikebe said.
Indonesia: Eni signs agreement to ensure further volumes of LNG from Indonesia
Eni has signed a 0.8 billion m3 LNG sales and purchase agreement with Merakes LNG Sellers, starting from January 2024 for three years, in addition to the contract with Jangkrik LNG Sellers for 1.4 billion m3/y, in place since 2017.
Thanks to these new volumes, Eni can ensure greater flexibility and further diversification of its LNG supplies, while strengthening its presence in growing markets such as South Asia and the Far East.
This contract – together with the long-term contract recently signed with the Marine XII JV in Congo for LNG volumes of approximately 4.5 billion m3, and the contract with QatarEnergy LNG North Field (NFE) for up to 1.5 billion m3 of LNG from the NFE project – contributes to the build-up of Eni’s LNG portfolio by leveraging strong relationships with the countries of operation. Eni’s integrated approach – that builds on the upstream developments to the LNG marketing – is in line with the company’s energy transition strategy, which aims to progressively increase the share of gas in overall upstream production to 60% by 2030, while also increasing the contribution of equity LNG. Eni aims to more than double its contracted LNG volumes to over 18 million tpy by 2026, leveraging integration between upstream and gas marketing activities.
Eni has been operating in Indonesia since 2001 across exploration, development, and production. The recent announcement of the Geng North discovery, along with the acquisition of Chevron’s assets and the envisaged fast-tracking of Indonesia Deep-water Development (IDD), significantly reinforce Eni presence in Indonesia’s Kutei basin, close to the existing Bontang LNG facilities, and confirm the strong relationship with a country that continues to play a strategic role in Eni’s LNG portfolio.
South Korea: S.Korea’s HMM expands bulk carrier fleet
HMM Co., South Korea’s top shipping company, is expanding its fleet, especially bulk carriers, for stable profits amid the sluggish global container shipping industry, according to The Korea Economic Daily.
HMM aims to increase the number of bulkers it operates, merchandise ships specially designed to transport unpackaged cargo to 55 by 2026 from 29 as of end-2022. It has already added six bulk carriers this year and plans to introduce 11 more next year for the target. In August, it ordered four multi-purpose vessels.
Shipping companies often operate bulk carriers based on contracts for longer terms than deals for container ships, so bulkers provide more stable profits even when the global shipping industry slumps.
HMM signed a $954.2 million deal to charter four bulk carriers to an undisclosed customer from 2026 to 2042, according to its filing to a local financial regulator last week.
HMM’s move came as the global container shipping market is expected to stay under pressure from oversupply for the time being.
The supply glut is predicted to last until 2025 as shipbuilders are scheduled to deliver the largest volume of container ships in years to shipping companies next year. HMM also plans to raise its container fleet to 100,000 twenty-foot equivalent units (TEUs) by 2025 from 80,000 TEUs this year.
The Shanghai Containerized Freight Index (SCFI), a barometer of global freight rates, has been sluggish this year staying around 1,000, a break-even point for shipping companies.
Such weakness is expected to put pressure on HMM, although the company is able to make profits through cost cuts even when the SCFI falls to 900, industry sources said.
The bulk carrier business made up about 40% of HMM’s operation in 2010. But the company, formerly known as Hyundai Merchant Marine taken over by the state-run Korea Development Bank (KDB) in 2016 has sold some of its bulkers to shore up liquidity due to the slump in the global shipping industry.
HMM is trying to improve its business structure by increasing the bulker fleet as it enjoyed an operating profit of nearly 10 trillion won ($7.4 billion) last year.
The company, which South Korea put on sale, is focusing on oil tankers among bulk carriers as it pledged not to work on some cargoes such as iron ore, bituminous coal and liquefied natural gas in the coming years when it sold bulkers for them.
HMM in March ordered three pure car, truck carriers (PCTCs) to a Chinese shipbuilder, the first contract to buy car carriers since it sold a fleet for vehicle transportation in 2002.
The company aims to re-enter the business to take advantage of the growing imports and exports of electric vehicles.
Charter rates for a car carrier, which can transport 6,500 vehicles, have recently surged to $110,000 a day from $10,000 in 2020.
China: Cheniere Energy signs LNG sales agreement with Foran
Cheniere Energy has signed a long-term liquefied natural gas (LNG) sales and purchase agreement with Foran Energy Group, a Chinese natural gas distribution company.
Announced today (2nd Nov), the deal will see Foran purchase approximately 0.9 million tonnes per annum of LNG over a 20-year period from Cheniere.
Deliveries will commence upon the start of commercial operations of the second train of the Sabine Pass Liquefaction Expansion Project (SPL Expansion Project) in Louisiana.
Start-up of the train is subject to a positive final investment decision.
Jack Fusco, President and CEO of Cheniere, said, “We are pleased to build upon our existing long-term relationship with Foran, one of the fastest growing natural gas companies in China, with the signing of our second 20-year sales and purchase that secures increased LNG volumes for Foran for the long term.”
The also supports China’s commitment to growing natural gas as a primary energy source.
Cheniere’s SPL Expansion Project is being developed for up to approximately 20 million tonnes per annum of LNG capacity. In May 2023, certain subsidiaries of Cheniere Energy Partners, entered the pre-filing review process for the SPL Expansion Project with the Federal Energy Regulatory Commission.
Oman: TotalEnergies extends partnership with Oman LNG
(WO) – TotalEnergies has signed an amendment to extend its partnership with Oman LNG, an Omani liquefied natural gas (LNG) joint venture in which the company holds a 5.54% stake.
Located on the northeast coast of Oman, the Oman LNG liquefaction complex comprises two liquefaction trains, each with a capacity of 3.8 million metric tons of LNG per year (MMtpa). It is adjacent to the Qalhat LNG project, comprising one 3.8 MMtpa train, and in which Oman LNG holds a stake. This brings the site’s total production to 11.4 MMtpa.
Through this agreement, TotalEnergies is extending beyond 2024 its interest in Oman LNG, by ten years, and in Qalhat LNG, by five years. The parties agreed to finance investments to reduce the plant’s GHG emissions during this extension. In January 2023, TotalEnergies had also signed an agreement with Oman LNG to offtake 0.8 MMtpa of LNG for ten years from 2025, making the Company one of the main offtaker of Oman LNG’s production.
“This LNG contributes to our supply of Europe and Asian markets, and strengthens our integrated and flexible global portfolio, in line with TotalEnergies’ ambition to increase its LNG production and long-term purchases by 50% by 2030,” said Julien Pouget, Senior Vice President Middle East & North Africa, Exploration & Production at TotalEnergies.
TotalEnergies is the world’s third largest LNG player with a market share of around 12% and a global portfolio of about 50 Mt/y thanks to its interests in liquefaction plants in all geographies. The company benefits from an integrated position across the LNG value chain, including production, transportation, access to more than 20 Mt/y of regasification capacity in Europe, trading, and LNG bunkering.
TotalEnergies’ ambition is to increase its LNG production and long-term purchases by 50% by 2030, while continuing to reduce carbon emissions and eliminating the methane emissions associated with the gas value chain. The Company also works with local partners to promote the transition from coal to natural gas.
USA: Dominion plans large liquified natural gas facility in Person County near Rougemont
Mangum’s Store anchors a corner of Moriah and Mt. Harmony Church roads in rural Rougemont, where it sells a little bit of everything: groceries, gasoline, even sleds – which actually get some use in Person County because it lies above the “snow line” in central North Carolina.
Up the road, Sweet T Farm raises pork, poultry and beef on pasture. Just south, the Elderberry Co-housing Community is home, as resident Theresa Ahrens put it, “to 24 old people there who want to live peacefully and in harmony in this beautiful place.”
Now this small community could get a new neighbor: Dominion Energy, the main corporate actor behind the defunct Atlantic Coast Pipeline, plans to build the Moriah Energy Center, two 25-million-gallon liquified natural gas facilities on 485 acres in southeastern Person County, about two miles from the Durham and Granville county lines. The facility itself would require just 50 to 60 acres, but the additional space would serve as a safety buffer – and space for a possible expansion. Dominion spokesperson Persida Montanez told Newsline a second LNG operation could eventually be built onsite. “That’s the reason for the project – market demand.”
That demand – spurred by a 2.8% increase in the number of Dominion customers in the Triangle – does not include Roxboro or Person County. The population in those two areas remained flat or declined slightly between 2010 and 2020, according to census data.
Natural gas is composed mostly of methane, a potent greenhouse gas and major driver of climate change. Globally, 2023 was the hottest year on record because of climate change, which also contributed to catastrophic flooding, droughts and wildfires worldwide.
Gas from fracking operations outside North Carolina would arrive at the Moriah Energy Center via either of two Dominion Energy transmission pipelines, which are fed by the Transco pipeline. (The Transco pipeline ships gas from fracking operations and runs through a dozen states between Texas and Pennsylvania.) Alternately, the LNG would be shipped to the Moriah Energy Center by tanker truck.
The gas would then be chilled to 260 degrees Fahrenheit below zero, and stored in the tank. At peak demand times, usually during the winter, the gas would be vaporized and re-injected into the pipeline system. It’s unknown how often that would occur, although it could be as few as eight days a year.
Even if demand is low, the facility will emit air pollution as part of its operation, as well as fugitive emissions, such as leaks from valves and connection points, and dust from trucks.
Facility-wide, the Moriah Energy Center could emit 65,579 tons of greenhouse gases each year, according to Dominion’s air permit application to the state. In addition, annual potential emissions include 35 tons of nitrogen oxide, 95 tons of carbon monoxide, 52.4 tons of volatile organic compounds, four tons of hazardous air pollutants and another four tons of fine particulate matter.
If the project is approved by county and state officials, construction could begin as early as next spring, with operations beginning in late 2026.
At a community meeting this week, about 50 residents of Rougemont and nearby Timberlake discussed what the LNG facility and the rezoning could mean for their neighborhoods: deforestation, light, noise, the risk of an explosion, air emissions, and the 360,000 gallons of water siphoned from the aquifer that would be stored in a tank onsite in case of a fire.
“The forestland, wetlands, farmland – it will be lost,” a local farmer said. “I hope we can protect our farms.”
The company is making several promises to local residents, including the purported safety of the facility and the economic benefit to the county –$810,000 in annual tax revenue for 25 years. However, it would create just 12 permanent jobs, none of which are guaranteed to go to Person County workers.
The gas would not be exported, and it would serve only Dominion’s North Carolina customers, Montanez said. Nor would the gas be shipped to Duke Energy when that company converts its nearby Roxboro coal-fired plant to natural gas.
But the business terms could change as soon as 2024, even before construction has begun.
Dominion’s stock has plummeted more than 40% over the past year, prompting the company to sell many of its assets, including an LNG export facility in Maryland. In September Enbridge, based in Calgary, Canada, announced it had purchased the Public Service Company of North Carolina, also known as PSNC Energy, from Dominion. The deal, which would include the proposed Moriah Energy facility and Dominion’s existing LNG plant in Cary, is awaiting approval from federal regulators.
Enbridge’s natural gas network transmits about 20% of all gas consumed in the U.S., according to the company’s website. It also supplies natural gas to four LNG export facilities on the Gulf Coast, with three more that are pending. The deal with Dominion would make Enbridge the leading transmitter of natural gas in North America.
Although the Rougemont/Timberlake neighborhood is rural, it’s by no means desolate. Homes line Helena-Moriah Road, some of them shrouded in trees or set back far from the road. There would be homes as close as a quarter mile away from the proposed Moriah Energy Center site.
Many neighbors at the community meeting said they are concerned about the potential for fires or explosions. Vapor clouds are composed not only of methane, but of flammable refrigerants that can ignite.
Since 2011, 30 incidents involving LNG fires have been reported to the federal Pipeline and Hazardous Materials Safety Administration, also known as PHMSA. Of those accidents, one person died in September after a tank explosion in Yakima, Wash. Last year, a methane leak caused an explosion at an LNG facility in Freeport, Texas, the second largest in the U.S. No one was killed or injured, but the plant went offline for several months. Federal investigators attributed the explosion to human error.
Dominion has an option to buy the five parcels for the Moriah Energy Center pending a rezoning decision by the Person County planning board and the county commissioners. The company would also have to receive approval from the N.C. Utilities Commission and an air permit from the state Department of Environmental Quality. LNG plants are regulated by PHMSA.
If the planning board rezones the parcels to allow for industrial uses, then other major polluters could locate there even if the Moriah Energy Center is never built – or when it’s mothballed.
As one resident cautioned, “Anything could go there.”
Technological Development for Cleaner and Greener Environment Hydrogen & Bio-Methane
Denmark : World’s First Green Methanol-Fueled Cargo Ship sets sail, but its tank may not be so easy to fill
Maersk has launched the world’s first green methanol-fueled container ship, but the Danish shipping giant may eventually find the fuel in short supply.
The Laura Maersk, built in South Korea by Hyundai Heavy Industries, is a first step in Maersk’s quest to meet an ambitious target of net zero greenhouse gas emissions by 2040. The logistics company has ordered 24 additional methanol-fueled vessels for delivery between 2024 and 2027.
“Laura Maersk is a historic milestone for shipping across the globe,” said Maersk CEO Vincent Clerc following the vessel’s naming ceremony in September. “This new green vessel is the breakthrough we needed, but we still have a long way to go before we make it all the way to zero.”
The ship began operating in the Baltic Sea this month. It’s relatively small, able to transport 2,136 20 foot containers versus the larger container ships that can carry 10 times as much. And it curbs Maersk’s risk of a shortage of green methanol with a duel-fuel engine, capable of burning the fuel oil that currently moves big ships.
Other shipping companies, including Taiwan’s Evergreen and China’s Cosco, have several methanol-burning ships on order. But it remains to be seen if green methanol production can meet demand, according to a report by BloombergNEF.
The report forecasts annual capacity of 5.5 million metric tons by 2027, but it estimates that green methanol production would have to reach over 540 million metric tons a year to fully replace all marine fuel in 2050.
Maersk contracts for green methanol, including a deal with European Energy, which is building the world’s largest plant producing methanol with renewable electricity, the New York Times reported. It also serves customers willing to pay more to reduce their emissions, including Amazon and Volvo.
Norway: Norwegian project plans for world’s first ammonia-fueled containership
An innovative project in Norway seeks to build what could become the world’s first ammonia-powered containership. The vessel, which they expect to enter service by 2026, will be built in a partnership between Norway’s North Sea Container Line and ammonia-producer Yara International and its subsidiary Yara Clean Energy with the support of the Norwegian Government through its Enova investment fund.
The companies did not provide specific details on the size of the vessel but reported it is being designed for the trade route between Norway and Northern Europe. They said it would be optimized for service between Oslo and Brevik in Norway and Hamburg and Bremerhaven in Germany. It will be operated by NCL Oslo, a new partnership being launched between the companies.
“We are happy to be able to collaborate across sectors and show that decisive emission cuts are possible,” said Svein Tore Holsether, CEO of Yara International announcing the project. “The green journey started with the Yara Birkeland, the world’s first self-driving electric containership, and now we continue it with the Yara Eyde, which will be the world’s first containership on pure ammonia.”
Plans for the vessel call for it to operate on ammonia from its introduction, which would make it one of the first in the world. Several engine manufacturers around the world have achieved initial results in the design of engines and fuel supply systems that will operate on ammonia while several demonstration projects are getting underway for ammonia. The race is on among companies to achieve the first commercial ammonia-fueled ship.
In the application to Enova, the project said the containership would be “powered by ammonia with a battery pack of 250 kWh and the option of shore power.” The companies reported that the operation of the new containership between Brevil and Europe will remove 11,000 tonnes of CO2 emissions per year.
The project has been awarded approximately $3.6 million by Enova as part of a total $63 million program of grants announced at the end of September for projects to decarbonize shipping. Viridis Bulk Carriers is also receiving an Enova grant for two 4,700 ton cargo ships that they are targeting to introduce by the end of 2025 also fueled with ammonia. Azane Fuel Solutions in collaboration with Yara Clean Ammonia is also receiving a grant for the development of ammonia bunkering while other projects funded by Enova focus on hydrogen and battery-powered shipping as well as carbon capture aboard ships.
The plans call for the containership to be named Yara Eyde, in honor of Norwegian industrialist Sam Eyde. Eyde played a crucial role in the industrialization of Norway in the early 20th century through the large-scale development of hydroelectric power plants in Norway and was the founder of several of Norway’s largest corporations, including Yara, Hydro, and Elkem. He was also a partner of Kristian Birkeland for which the companies named their prototype autonomous, electric vessel.
It is the second next-generation shipping project for North Sea Container Line. Last year they announced the order of 1,300 TEU methanol-fueled containerships. They plan to launch the vessels which are building in China on the North Sea in 2024.
Yara reports it will contribute to the development of the ammonia-fueled shipping market through its efforts at funding the development and logistics segment for ammonia as a marine fuel. Yara Clean Ammonia will supply the Yara Eyde with ammonia that is produced fossil-free or almost carbon-free. They are focusing on ammonia produced from renewable energy or natural gas where up to 95 percent of the CO2 emissions are captured and permanently stored.
Yara Clean Ammonia is working with Azane Fuel Solutions, a storage and bunkering network, in the development of ammonia supply in Norwegian and eventually Scandinavian ports. They highlight it will make ammonia available as a marine fuel and can also contribute to achieving Norway’s goal of cutting emissions from the offshore sector.