NGS’ NG/LNG SNAPSHOT Nov1-15, 2024
National News Internatonal News
NATIONAL NEWS
City Gas Distribution & Auto LPG
India’s domestic natural gas demand to double by 2040: Rystad Energy
India’s natural gas consumption is expected to double in the next 15 years to hit 113.7 billion cubic meters (bcm) aided by a rising population and the government’s push to accelerate economic development.
Fuelled by population growth, economic development and a shift towards cleaner energy, India’s gas consumption is expected to nearly double to 113.7 bcm by 2040 from 65 bcm in 2023, according to Rystad Energy’s research.
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Near-term demand is supported by a 51 per cent jump in domestic gas production since 2020 to 36.7 BCM by 2025, but this will not be enough to meet the country’s growing demand for natural gas. The result is that India will continue to rely heavily on imports to satisfy its future energy needs, it added.
The world’s fourth largest liquefied natural gas (LNG) importer meets roughly half of its natural gas demand via imports.
“India’s LNG sector is experiencing significant growth. Looking ahead, a strategic next step could involve continued dealings with the Middle East. The geographical proximity of the two regions, combined with the substantial volume of uncontracted LNG production in the Middle East, presents an excellent opportunity for India to secure favourable terms – it’s an ideal buyer-seller relationship that could help fuel India’s needs,” said Kaushal Ramesh, Vice President of Gas & LNG Research at Rystad Energy.
The nation is well-positioned to attract aggressive targeting from Middle Eastern producers and off-takers, with nearly 100 million tonnes per annum (mtpa) of Middle East LNG remaining uncontracted by 2035, he added.
Gas demand
India’s gas demand will come from several sectors, including the country’s expanding city gas distribution (CGD) network as well as the fertilizer, refining and petrochemicals industries, Rystad Energy said.
Urea production in India heavily depends on natural gas as a key input, with limited alternatives available in the short term. As the government aims for complete food security, it continues to provide substantial subsidies for urea production, resulting in steady demand for gas in this sector, regardless of price fluctuations.
Following the successful restart of four gas-based fertilizer plants in 2021 and 2022, Indian urea production reached 30 mt in 2023. This was still short of that year’s urea demand of 35 mt, suggesting further growth potential in the near term. Meanwhile, rising demand for oil products and petrochemicals could increase India’s refining capacity to around 335 mtpa by 2030, with many expansions expected to occur near LNG terminals.
The CGD sector also supports gas use across transportation, industrial, commercial and domestic applications through the development of compressed natural gas (CNG) stations and piped natural gas (PNG) networks, it added.
India’s CGD network has expanded rapidly in recent years, with the number of CNG stations rising more than fivefold since 2015 to 5,710 by April of last year and the number of PNG connections more than quadrupling to 12 million over the same period. After the latest CGD bidding rounds, nearly 100per cent of India’s geographical area is expected to be covered by the CGD network, reaching a population of over 1.4 billion.
Challenges ahead
While there are positive signs for the Indian gas sector, several challenges could hinder its growth, Rystad said.
“A key issue is Indian buyers’ history of renegotiating or even abandoning near-complete deals, which creates uncertainty for suppliers. This preference for flexibility and cost-effectiveness over long-term commitments highlights India’s focus on securing the best prices for its consumers in a volatile global market – but it could limit LNG growth prospects,” it added.
Additionally, slow infrastructure development has hampered the growth of India’s gas sector. Regasification terminals remain concentrated in the western part of the country, and efforts to expand the gas pipeline network to other regions have been inconsistent. This slow progress is due to regulatory hurdles, challenges in securing investments, difficult terrain, and competing priorities as India channels significant resources into renewable energy development alongside its gas infrastructure.
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IOC to open North India’s first LNG pump at CONCOR’s MMLP in Kathuwas
Mumbai: North India first liquefied natural gas (LNG) pump will be opened in a fortnight by state run oil refiner Indian Oil Corporation Ltd at the multi modal logistics park in Kathuwas run by Container Corporation of India Ltd, helping the state-run rail hauler deploy LNG trucks on the first mile, last mile (FMLM) business, a top official has said.
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first LNG pump in North India will be commissioned in mid-November at MMLP Kathuwas. In North India, we are constrained; we cannot deploy LNG trucks because there are no LNG fuel pumps Sanjay Swarup, Chairman and Managing Director, told analysts during a post second quarter financial results conference call on 30 October.
CONCOR, according to Swarup, has become strong in the first mile, last mile space. “We have 130 LNG trucks for FMLM and 200 more are being procured,” he said.
“In the current financial year, we are targeting 50 percent of the business that we are giving should be on the first mile, last mile. At present, on a pan India basis, we are able to achieve around 27-30 percent in the first half of FY25. We are continuously working to improve and achieve the target of 50 percent. In the next financial year, we will set a target of 80 percent from FMLM,” Swarup stated.
CONCOR said its revenue from FMLM rose by 35 percent in the first six months of the current fiscal.
“We are getting very good margins from this business,” Swarup added.
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Natural Gas/ Pipelines/ Company News
GAIL (India) Share Price History
According to BSE data, GAIL (India)’s stock went down by 16.48 percent and 16.22 percent in the previous one months and three months. The stocks has soared to 20.38 percent in the year to date. In the past 1 year, 2 years, 3 years, 5 years and 10 years shares of the company gained by 70 percent, 119.16 percent, 99.64 percent and 122 percent and 101.67 percent, respectively. GAIL (India) has a market capitalization of Rs 1,31,633.49 crore on the BSE 100.
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ONGC draws a blank on offer of stake in Deen Dayal gas field
State-owned Oil and Natural Gas Corporation‘s (ONGC) third attempt to get a partner to rescue the Deen Dayal gas field in the KG basin in Bay of Bengal has met with the same fate as previous efforts as it got no bids, sources said. The tender offering stake to technical and financial partners in the Deen Dayal field, which ONGC had acquired from a Gujarat government firm for USD 1.2 billion, received no bids, two sources aware of the matter said.
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ONGC on June 12 sought expression of interest from “global oil and gas companies with requisite technical expertise and financial strength to join as partner (with participative interest) for firming up a viable strategy” for the field, according to the tender document. Bids closed on September 12.
The field has produced negligible quantities of gas since ONGC in January 2017 acquired Gujarat State Petroleum Corporation‘s (GSPC) 80 per cent interest in the KG-OSN-2001/3 block off the east coast of India.
The block contains the Deen Dayal West (DDW) gas/condensate field which was discovered by GSPC almost two decades back. The Gujarat government company had showcased the field as a promising prospect when it sold its stake to ONGC in order to cut its debt.
The field, which was initially said to hold up to 20 trillion cubic feet of in place gas reserves – by far the biggest in any deepsea field in the country – but later trimmed to a tenth, has proved to be tougher than anticipated.
“A total of seven development wells are drilled till date,” ONGC had said in the tender document.
A development well is one that helps produce hydrocarbon from below the earth’s surface or seabed.
“However, four wells which were completed did not yield good productivity as anticipated and performance was sub-optimal. Severe technical challenges and complications were encountered in the other three wells during drilling and completion phase and had to be abandoned,” ONGC had said.
The company had wanted a global partner who could help with the development of DDW. This was the third attempt in last five years. The earlier attempts too had not drawn any worthwhile interest, the sources said.
Besides the acquisition cost, ONGC has spent undeclared sum of money in trying to bring the DDW field to production. GSPC holds 10 per cent sake in the field and the remaining is with Jubilant Enpro.
The KG-OSN-2001/3 block, which was awarded to GSPC and its partners in the first bid round of New Exploration Licensing Policy (NELP) brought by the then NDA government under Prime Minister Atal Bihari Vajpayee, comprises five fields – DDW, DDE, DDN, DD-DT and DD-BRU. Of these, DDW, which lies about 10 km off the Andhra Pradesh coast, is spread over 37.5 square kilometers and is under development.
DDW already has a well head platform with 16 well slots, a process platform that has capacity to process 5.66 million standard cubic meters per day of gas, and a subsea pipeline to take the gas to an onshore terminal.
The reservoirs in the field are classified as high pressure high temperature (HP-HT).
“The in place reserves are to the tune of 55 billion cubic meters (1.94 Tcf) of gas,” ONGC had said in the tender.
Sources said the company intends to undertake a revision of the field development plan that was previously submitted to authorities. When ONGC acquired GSPC stake, it had reasoned that it would be able to use facilities such as process platform as well as subsea pipeline to bring to production Cluster-1 discoveries in its neighbouring KG-DWN-98/2 or KG-D5 block.
Also, the KG-OSN-2001/3 block infrastructure was supposed to be a back-up option for Cluster-II discoveries in KG-D5 in case of disruptions. But the company never used the facilities and instead built new ones on KG-D5 block. According to the field development plan that GSPC submitted to the Directorate General of Hydrocarbons in 2009, DDW was to produce 200-300 million cubic feet a day. Output however has been a fraction of that.
https://economictimes.indiatimes.com/industry/energy/oil-gas/ongc-draws-a-blank-on-offer-of-stake-in-deen-dayal-gas-field/articleshow/114904283.cms?from=mdr
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GAIL India Bagged Green Hydrogen Project of the Year India award
New Delhi: GAIL (India) Limited was felicitated with Green Hydrogen Project of the Year-India recognition at the Asian Oil & Gas Awards 2024 for implementing the 4.3 TPD Green Hydrogen pilot project at Vijaipur (Madhya Pradesh). On behalf of the company, Shri Deepak Gupta, Director (Projects), GAIL and Shri Rajeev Kumar Singhal, Director (BD), GAIL along with other GAIL officials received this prestigious award on 22nd October 2024 at an award function in Singapore.
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This pilot project is a cornerstone in the GAIL’s Net Zero journey and aligns with the National Green Hydrogen Mission (NHGM) of Govt. of India. The project is based on a 10 MW Proton Exchange Membrane (PEM) Electrolyser to produce 99.99% pure Hydrogen. This project is a testament towards establishing India as a global hub in this field.
The Asian Oil & Gas Awards are world-renowned and recognises excellent initiatives, transformations in the industry and the companies that have overcome various challenges and remained steadfast towards excellence.
https://www.psuconnect.in/news/this-psu-bags-green-hydrogen-project-of-the-year-india-award/44905
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GAIL and VERBIO India sign MoU to develop agricultural residue-based CBG projects
New Delhi: GAIL (India) Limited and VERBIO India Private Limited today signed a Memorandum of Understanding (MoU) to jointly explore the establishment of Agricultural Residue-based Compressed Biogas (CBG) plants in India. The MoU was signed in the presence of Shri Sandeep Kumar Gupta, CMD, GAIL, functional Directors of GAIL and Shri Claus Sauter, Founder/ CEO, VERBIO Group.
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Shri Sumit Kishore, Executive Director (Business Development and Exploration & Production), GAIL and Shri Ashish Kumar, Managing Director, VERBIO signed the MoU. This collaboration aims to leverage the strengths of both the companies to promote sustainable energy solutions and enhance utilization of agricultural waste.
Under the terms of the MoU, the parties intend to work together to identify suitable locations for setting up of greenfield Agri Residue-based CBG plants in a Joint Venture (JV) mode. The parties envisage to undertake feasibility studies of the identified Projects. Based on the outcome of studies, the parties will secure investment approval from their respective management for investment in the project(s) and forming a JV company. Further, in line with the MoU, GAIL may explore the possibility of acquiring equity in the existing CBG plant of VERBIO in the State of Punjab.
Speaking on the occasion, Shri Sandeep Kumar Gupta, Chairman and Managing Director of GAIL said, “This MoU with VERBIO marks a significant step in our commitment to advancing clean energy in India. By harnessing agricultural residues for CBG production, we aim to contribute to the nation’s energy security and sustainability goals. This initiative will not only provide a renewable energy source but also support local farmers by utilizing agricultural waste, enhancing their income and livelihood.”
Shri Claus Sauter, Founder/ CEO, VERBIO Group, said, “We are pleased to partner with GAIL to jointly deploy bioenergy as one of the most innovative solutions for stubble burning in India. This collaboration aligns with our vision of promoting CBG while supporting the farmers and rural economy in India. With a strong partner as GAIL, VERBIO will be able to replicate the success of CBG proof of concept already implemented in Punjab, across India. Both GAIL and VERBIO are committed to fostering innovation in the biofuel sector, and this collaboration is a testament to that commitment. By leveraging agricultural residues, we will not only generate clean energy but also contribute to reducing GHG emissions and have a positive environmental impact.”
https://www.psuconnect.in/news/gail-and-verbio-india-sign-mou/44900
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Policy Matters/ Gas Pricing/ Others
India won’t rule out buying Russian LNG if price is right: oil minister
HOUSTON, Texas — India is “open for cooperation with all countries in the world” on energy, including Russia, the South Asian nation’s oil and gas minister said here during a recent visit, citing its fast-growing energy demand.
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Investing in energy projects is “a nonideological, nonpolitical situation,” Petroleum and Natural Gas Minister Hardeep Singh Puri told Nikkei in an interview.
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India Cut-down Fossil Fuel Subsidy By 85% In Decade, Says ADB
India has made progress on fossil fuel subsidy reform over the past decade reducing its fiscal subsidy in the oil and gas sector by 85 per cent, from an unsustainable peak of USD 25 billion in 2013 to USD 3.5 billion in 2023. Through remove, target, and shift approach and by carefully balancing the combined effect of three key policy levers—retail prices, tax rates, and subsidies on select petroleum products—India achieved success, according to a report by the Asian Development Bank (ADB).
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By gradually phasing out the subsidy on petrol and diesel (2010–2014) and carrying out incremental tax increases (2010–2017), India increased government support for renewable energy, electric vehicles, and the strengthening of the electricity infrastructure in subsequent years.
Further report said that the additional tax revenues from excise duty increase on petrol and diesel between 2014 and 2017, a period of low international crude oil prices, also helped create the fiscal space to improve access and target subsidies for cleaner cooking alternatives by expanding liquified petroleum gas (LPG) coverage for the rural poor under the Pradhan Mantri Ujjwala Scheme.
The report mentioned that apart from the remove and target approach, with shift instrument between 2010 and 2017 in the form of a cess on coal production and imports. Around 30 per cent of the cess collections were channelled to a National Clean Energy and Environment Fund that supported clean energy projects and research; around half was used to fund clean energy projects.
The report also mentioned two phases of the Faster Adoption and Manufacturing of (hybrid and) Electric Vehicles (FAME) scheme with a budgetary outlay of around USD 1.4 billion to promote the adoption of electric vehicles in the country, which helped in reducing fuel consumption.
ADB report highlighted that over the past decade, India’s clean energy subsidies have more than quadrupled; owing to higher household electrification, electricity subsidies have multiplied by around 2.5.
https://businessworld.in/article/india-cut-down-fossil-fuel-subsidy-by-85-in-decade-says-adb-537938
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Rajasthan, Gujarat need policy interventions to sustain leadership in renewable energy deployment: IEEFA
A new briefing note by the Institute for Energy Economics and Financial Analysis (IEEFA) recommends lower incremental green tariffs, dedicated infrastructure funds, green budgeting, scaling up distributed renewable energy and advancing grid modernisation and energy storage to cement Gujarat and Rajasthan’s leadership in renewable energy deployment.
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While Rajasthan and Gujarat have been at the forefront of renewable energy deployment in the country, more corrective actions in their policies can accelerate the momentum and ensure these states keep playing a central role in India’s energy transition, a new briefing note by the Institute for Energy Economics and Financial Analysis (IEEFA) states.
Notably, among all states and union territories in India, Rajasthan has the highest installed renewable energy capacity of 29,981 MW as of Sept. 30, 2024. Gujarat ranks second with an installed renewable energy capacity of 29,525 MW.
The IEEFA note recommends steps like implementing a green tariff, integrating green budgeting practices, setting up dedicated infrastructure funds, promoting distributed renewable energy, modernising the grid and developing storage solutions to ensure both states continue to lead India’s energy transition.
“India’s energy transition requires states to make a concerted effort to strengthen renewable energy initiatives. While states that are slower in their transition to clean energy need to ramp up efforts, even leaders like Rajasthan and Gujarat must keep taking stock and corrective measures to ensure they do not lose momentum,” says the note’s co-author Vibhuti Garg, Director – South Asia, IEEFA.
“By adopting the right strategies, states like Rajasthan and Gujarat can effectively navigate the transition to a sustainable energy future, achieving their renewable energy goals while fostering economic growth and environmental sustainability,” she adds.
While Rajasthan currently does not have an incremental green tariff, Gujarat has one of the highest. Both states need to course correct, the note finds.
“By enabling consumers to procure renewable power at a premium, Rajasthan can drive demand for renewable energy, encouraging further investments in renewable energy infrastructure without burdening consumers with high upfront costs,” says the note’s co-author Tanya Rana, Energy Analyst, IEEFA.
“Gujarat should focus on refining its regulatory framework to ensure this pricing does not deter potential consumers,” she adds.
The note recommends that both states integrate green budgeting into their fiscal planning. Green budgeting will allow Rajasthan and Gujarat to prioritise investments in renewable energy and green technologies,” says Rana.
The report recommends that Rajasthan and Gujarat prioritise the expansion of distributed renewable energy (DRE), particularly through distributed solar rooftop installations, to enhance their transition to a renewable energy economy. As of Sept. 30, 2024, Rajasthan and Gujarat only had about 7% (2,089 MW) and 15%, respectively, of their total renewable energy capacity (including large hydro) allocated to distributed solar, indicating substantial untapped potential.
“Promoting DRE can reduce pollution by decreasing reliance on centralised power plants, helping both states meet their renewable energy targets while creating jobs and stimulating economic growth,” says Rana.
The note also recommends the two states set up dedicated infrastructure funds designed to finance renewable energy projects. “These funds can provide the necessary capital for large-scale investments, enabling the states to implement ambitious renewable energy targets effectively,” says Garg.
A multifaceted approach is essential to accelerate the renewable energy transition in Gujarat and Rajasthan. This involves implementing strategic measures that enhance financial resources, improve market dynamics, and support effective governance. The note’s recommendations aim to provide a framework for achieving ambitious renewable energy targets.
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FinMin revokes 8-year-old circular: CPSEs no longer need NITI nod for JVs
In a move to delegate more autonomy to key central public sector enterprises (CPSEs), the Ministry of Finance (FinMin) has revoked an eight-year-old circular, which required Maharatna, Navratna, and Miniratna CPSEs to take prior permission of NITI Aayog before forming financial joint ventures (JVs) and wholly owned subsidiaries (WoS).
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The Department of Public Enterprises (DPE) in a notification said it has been done to make the process easier and less time-consuming.
“At present, all proposals… by Maharatna, Navratna, and Miniratna CPSEs for investments in setting up JVs/WoS, etc. require clearance both from Niti Aayog and DIPAM (Department of Investment and Public Asset Management) before exercising their delegated powers. A need has been felt to rationalise and simplify the process for establishing JVs/WoS with a view to making the process easier and less time-consuming,” DPE said in a notification on September 17, 2024.
However, the requirement to refer the proposals to DIPAM for establishing JV/WoS as well as capital restructuring and capital management of CPSEs has been retained.
In the earlier notification issued on August 10, 2016, the DPE, which was then part of the Ministry of Heavy Industries and Public Enterprises, had said that given the proliferation of JVs/WoS, proposals for establishing financial JVs and subsidiary entities will be presented to the Board of the CPSE concerned and the administrative ministry/department concerned will obtain concurrence of NITI Aayog for such proposals.
“It is desirable that such investment in public fund is made after due scrutiny and adequate justification to ensure that the decision for investment to set up such joint ventures or subsidiary entities is in sync with policy considerations and strategic needs of the government and in conformity with the norms of fiscal prudence,” it had maintained.
A government official, requesting anonymity, said the shifting of the DPE to the Finance Ministry starting 2021 has done away with the requirement for Niti Aayog’s intervention. Currently, there are 14 Maharatna, 24 Navratna, and 69 Miniratnas in India. Finance Ministry in its Annual Report for FY24 said the endeavour of the government is to make CPSEs autonomous Board-managed companies. “Under Articles of Association, the Board of Directors of CPSEs enjoys autonomy in respect of recruitment, promotion and other service conditions of below Board-level employees. The Board of Directors of a CPSE exercises delegated powers subject to broad policy guidelines issued by the government from time to time,” it added.
In a report on PSEs for FY19, a parliamentary committee recommended that empowered PSE Boards, comprising independent experts, will enhance the quality of decisions, overall management supervision, and governance while ensuring that nearly all strategic decisions are taken at the Board-level and not passed on to respective ministries, thereby increasing the speed of decision-making.
“For instance, the Board must be sufficiently empowered to take nearly all strategic decisions such as formation or dissolution of partnerships/JVs, mergers/acquisitions, appointment of CEO, creation of below Board-level positions, etc. The Board must also be permitted to appoint new directors to replace retiring directors, as is the case with private organisations,” the report said.
What it means
> Revocation grants more autonomy to Maharatna, Navratna, and Miniratna CPSEs, simplifying the process of establishing JVs and wholly owned subsidiaries
> Aims to streamline and expedite the investment process for CPSEs, removing the need for additional approvals from NITI Aayog
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Biofuel blending on track, saved Rs 91,000 Cr in import bills, says Petroleum Minister Puri
Union Petroleum & Natural Gas Minister Hardeep Singh Puri on Tuesday said India was on track in biofuel blending performance and would exceed the 20% target set for 2030, five years ahead of the schedule. The blending rate has reached 16.9%, the minister said, expressing happiness at the pace of progress on this front.
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The Union government’s biofuel initiative has helped the country save Rs 91,000 crore in oil import bills. This has also given a big boost to the agriculture sector, too, the Minister said, after kicking off the energy technology meet (ETM-2024) in Bengaluru.
India has the capability to process over 250 types of crude oil, with refining capacity anticipated to grow from the current 258 million metric tonnes per annum (MMTPA) to 310 MMTPA, Puri said. India’s refining expansion, coupled with petrochemical integration, positions India well on its way towards flexible, efficient energy transition.
On digital innovation in the energy sector, the minister referred to the BCG report forecasting India’s Artificial Intelligence market to reach $ 70 billion by 2027, and said digitalization had immense potential to drive efficiency in energy operations.
Indian Oil chairman V Satish Kumar said the future of the energy industry hinged on integrating green energy solutions into refining processes. “Through cutting-edge technologies and resource optimization, we can build a resilient and environmentally responsible industry. ETM-2024 opens rich opportunities for our refining and petrochemicals sector that can play a significant role in catalysing the nation’s aspirations.”
About 1300 delegates from India and overseas including domain experts, academia, licensors, R&D scientists and other professionals from the Hydrocarbon sector are participating in the three-day event. ETM 2024 will feature technical sessions on renewable integration, hydrogen production, waste-to-energy innovation, and strategies for carbon neutrality.
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LNG Use / LNG Development and Shipping
INOX India to Build Mini LNG Terminal in The Bahamas
This project, designed to support IPP’s 60 MW power plant supplying shore power to cruise ships at Nassau Cruise Port, includes designing, engineering,and supplying the LNG terminal. This significant deal marks INOXCVA’s largest-ever LNG project and the construction of the world’s largest shop-builtdouble-walled vacuum-insulated cryogenic tanks.Under the contract,
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INOX India will deliver 10 LNG storage tanks, each with a capacity of 1,500 m³, alongside a regasification system, collectively providinga storage capacity of 15,000 m³ of LNG. This installation sets a new record for INOXCVA in terms of tank size and capacity, establishing this Mini LNGterminal as its largest project to date and the first dedicated to shore power for cruise ships in the region. Siddharth Jain, Promoter and Non-Executive Director of INOX India, remarked, “This project reinforces our commitment to advancing LNG adoptionworldwide, from transport fuel to power generation. Partnering with IPP enables us to create a model for LNG distribution and energy supply across TheBahamas.The project is a testament to our ‘Make in India, for the World’ initiative, as we produce major components at our Kandla facility.”The terminal, INOXCVA’s third Mini LNG installation, builds on its success at Antigua, which highlights the expanding role of LNG in remote areas.Scheduled for setup at Arawak Cay, Nassau, this facility will act as a distribution hub for LNG across The Bahamas, accommodating smaller LNG usersthrough LNG ISO container reloading.IPP Director Chris Satterfield expressed pride in partnering with INOXCVA, noting that this modular LNG terminal will serve as a low-carbon fuel hub for TheBahamas and the region. He emphasised that IPP’s new facilities in Nassau, supported by INOXCVA’s expertise, will help The Bahamas meet its carbonreduction goals.
https://www.energetica-india.net/news/inox-india-to-build-mini-lng-terminal-in-the-bahamas
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Toyo Engineering to construction LNG receiving terminal jetty in India
oyo Engineering India Private Ltd, an Indian subsidiary of Toyo Engineering Corp., has received an order from Petronet LNG Ltd (PLL) for a project to construct topside facilities for the third jetty for the LNG receiving terminal in Dahej, Gujarat. Toyo-India received the order for EPC as a single package, with completion scheduled for 2027.
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This is the fifth order Toyo Engineering has received from PLL, and the companies have been able to build a strong relationship . Toyo-India will continue to strengthen its project execution capabilities for LNG-related facilities and contribute to the economic development of India, which has a large population and a huge middle class and will continue to grow in the future.
This project underscores Toyo-India’s commitment to delivering high-quality solutions in the LNG sector and fortifying its relationship with key industry players like PLL.
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Neutral Petronet LNG; target of Rs 385: Motilal Oswal
Petronet LNG (PLNG) 2QFY25 EBITDA came in 9% below our estimates at INR12b. Dahej utilization was down 9pp QoQ at 102%, while Kochi utilization stood at 22% (flat QoQ). Reported PAT at INR8.5b was in line with our estimate. In 2Q, the company booked additional provisions worth INR1.1b related to use-or-pay (UoP) charges.
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The Dahej terminal expansion from 17.5mmt to 22.5mmt is expected to be completed by Mar’25, after which it will be available for use. Management guided for a minimum throughput of 20mmtpa from Dahej terminal in FY26. However, until now, there has not been any material progress on signing anchor customers for the expanded capacity. In 2HFY25, the management expects capacity utilization at Dahej to remain ~95%-100%. Recently, two tanks were commissioned at Dahej (taking total number of tanks to 8), which will be beneficial for storing and processing more cargo.
Outlook
We value PLNG at 12x Dec’26E EPS to arrive at a TP of INR385. We reiterate our Neutral rating on the stock.
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Electric Mobility/ Hydrogen/Bio-Methane
EV charging facility now available at every fifth petrol pump, but only 20% are fast chargers
New Delhi: Every fifth petrol pump across the country now offers an EV charging facility as oil companies quadrupled the number of pumps with chargers in two years despite installation and consumer demand challenges. EV charging facilities are available at about 17,900 pumps, with state-run oil companies accounting for 95% of these, according to the oil ministry data. Two years ago, only 4,100 pumps offered EV charging.
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Indian Oil Corp is the leader with EV facilities available at 10,057 pumps. Hindustan Petroleum operates 3,705 pumps with chargers and Bharat Petroleum 3,146.
Utilization remains extremely low as charging stations haven’t been able to address some fundamental challenges of EV owners, said an oil company executive engaged in setting up charging facilities at pumps.
“Most EVs are getting charged at home with slow chargers. It doesn’t make sense for people to drive to pumps to use slow chargers and return to collect their cars hours later,” he said, adding that the current demand is mostly for top-up charges by fast chargers, which take about 45 minutes to charge 80% of a car battery compared to 6 hours for a slow charger.
Just about a fifth of the chargers at petrol stations are fast chargers, according to the executive. More fast chargers are on the way. In addition, car manufacturers advise drivers to use fast chargers infrequently to prevent battery damage.
Even fast chargers find users only at large filling stations on highways with eating joints or other facilities where car drivers can use their waiting time, executives said. Smaller filling stations in cities find fewer customers.
Another challenge has been petrol pump dealers’ lukewarm approach to EV charging, which emanates mainly from limited returns. On average, a dealer can make ₹50 per hour in commission using a fast charger while he can make the same amount in minutes in his traditional petrol dispensing job, according to executives.
The falling cost of chargers has aided the expansion of charging facilities at pumps. Fast chargers’ cost has dropped by half in just two years, according to executives.
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India, Saudi Arabia exploring clean hydrogen, fintech collaboration
India and Saudi Arabia are exploring collaboration in emerging fields like fintech, new technologies, energy efficiency, clean hydrogen, textiles and mining to boost trade and investment ties, a statement said on Friday. These areas were discussed during the recent visit…
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India and Saudi Arabia are exploring collaboration in emerging fields like fintech, new technologies, energy efficiency, clean hydrogen, textiles and mining to boost trade and investment ties, a statement said on Friday.
These areas were discussed during the recent visit of Commerce and Industry Minister Piyush Goyal to Riyadh. He co-chaired the second meeting of the economy and investment committee under the India-Saudi Strategic Partnership Council (SPC) along with Minister of Energy, Saudi Arabia, Abdulaziz bin Salman Al-Saud, on October 30 in Riyadh.
“Both countries are exploring collaboration in emerging fields like fintech, new technologies, energy efficiency, clean hydrogen, textiles, mining,” the commerce and industry ministry said. During the Future Investment Initiative (FII) event, the minister urged global investors to seize emerging opportunities in India.
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NTPC and ONGC Forge Joint Venture for Renewable Energy Push
NTPC and ONGC, both Maharatna PSUs, have formed a Joint Venture Company (JVC) through their green energy subsidiaries, NTPC Green Energy and ONGC Green Energy. This partnership aims to strengthen NTPC and ONGC’s presence in the renewable energy sector.
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The Joint Venture Agreement was signed on February 7, 2024, during India Energy Week, and has received necessary approvals from DIPAM and NITI Aayog.
NTPC Green Energy Ltd. (NGEL) has applied to the Ministry of Corporate Affairs for permission to establish the JVC in partnership with ONGC Green Energy Ltd. (OGL), with both parties holding equal stakes.
The JVC will focus on various renewable energy sources, including solar and wind (both onshore and offshore), as well as advanced energy storage solutions like pumped storage and battery systems.
Further, it will explore green technology initiatives, including green hydrogen, green ammonia, sustainable aviation fuel, green methanol, e-mobility, and carbon credit projects.
Plans include acquiring renewable energy assets and participating in offshore wind projects, particularly in Tamil Nadu and Gujarat. This collaboration represents a strategic move to boost sustainable energy in India, aligning with the country’s vision for a cleaner and greener future.
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Honda’s new electric vehicle is quietly creeping up on Tesla
Two-thirds of Honda SUV drivers in the US trade in their vehicle for another Honda. It’s an iPhone-like level of loyalty seldom seen in the brutal business of making and selling cars — and it’s enabled the automaker’s first electric vehicle to quickly cut into Tesla’s supremacy.
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Honda sold roughly 13,000 Prologues, its mid-sized electric SUV, in the three months ending Sept. 30. While that’s still below the market share of Tesla’s Model Y — the top-selling electric SUV — the Prologue was the No. 5 result among US EVs, as the rig won over a wave of electric-curious drivers who had been waiting for an affordable alternative to Tesla from their favored car brand.
MeLissa Jones, a 45-year-old software developer in Utah, isn’t overly concerned about air quality or climate change, but she does love a Honda. The Pacific Blue Prologue that she got in June is her 19th.
“It’s not that I really like electric, it’s just that I wanted the new Honda to try it out,” Jones said. “We drove it as soon as (the dealer) got one in.”
So far, her biggest gripe is that her husband keeps stealing it and he won’t let her take Riggs, the couple’s 135-pound American Bully XL, for a ride. “He doesn’t want him licking the windows,” she explained. Harsh but fair.
At Paragon Honda in Queens, the gas-powered CR-V is typically the top-seller, according to finance manager Larry Abreu. In September the dealership moved one Prologue for every three CR-Vs, in part because a stack of incentives made them virtually the same price.
“There’s just so much value, it’s hard to pass up,” Abreu explained
Much of the Prologue’s draw lies in just how unremarkable it is. Its starting price — before incentives or fancier options like all-wheel drive — is $47,400, just $400 less than the average market value of all US cars in September, according to Bloomberg Intelligence. Unlike many EVs, the Prologue’s performance will set no one’s hair on fire, but it does feature thoughtful and elevated details of the kind Honda evangelists have come to love. There’s a huge storage bin under the center console, for example, a massive sunroof, a supersized smartphone charging pad and a rash of buttons and knobs to preclude a flatscreen hunt-and-peck typical of the Tesla driving experience.
Unlike most Hondas, however, the Prologue will skip the gas station and, for the most part, the mechanic. EVs, which don’t need oil changes or air filters, require almost $1,000 less to maintain every year than similar gas-powered models, according to AAA. Honda is already one of the most reliable auto brands, and adding a new vehicle to the lineup that’s even more reliable is a nifty engineering trick.
When asked why they chose a Prologue, Honda buyers cite trust in the brand followed by value, according to company spokeswoman Natalie Kumaratne. What’s more, almost two-thirds of Prologue buyers have owned a Honda before and nearly 80% have never had an EV.
Mike Eppink traded in his 2022 Honda Pilot — a full-size SUV — for the Prologue, in part to save money on gas. His 14-year-old son plays travel baseball, and shuttling to and from practices and games was burning $250 a month.
“I like where the electric cars are going and they’re really not that expensive once you really look into the numbers,” Eppink says. “Our monthly payment went up a bit, but with the gas savings, mentally, we still feel like we’re saving.”
For all the talk of an EV slowdown in the US, third quarter sales suggest there is a large crowd of drivers who were simply waiting for more affordable options or for new battery-powered machines from established brands.
US drivers bought 346,309 battery-powered cars and trucks in July, August and September, a 5% increase from the prior quarter and an 11% jump from the year-earlier period, according to Cox Automotive. EVs comprised 9% of new US car sales in the third quarter, the highest level on record and Cox sees one in 10 vehicles being electric as “well within reach.”
Tesla retained its electric street cred, delivering nearly 167,000 vehicles, including almost 17,000 Cybertrucks. However, its market share continued to swoon below 50% as more affordable machines from Cadillac, Chevrolet, Honda and others picked up EV-curious customers.
Chevrolet, in particular, saw momentum grow with its Equinox and Blazer collectively drawing almost 18,000 buyers in the quarter. While the Prologue is more affordable than the average US car, both of those new Chevys are cheaper still.
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RIL to pump Rs 65,000 cr into Andhra Pradesh for 500 biogas plants, its biggest RE investment outside Gujarat
New Delhi: Reliance Industries Ltd (RIL) will invest Rs 65,000 crore in Andhra Pradesh to set up 500 compressed biogas plants (CBG) over the next five years. This will be the biggest investment by the company outside Gujarat under its clean energy initiative.
The plants, each involving an investment of Rs 130 crore, will be set up on wasteland in the state, said people aware of the matter. They are expected to generate direct and indirect employment for 250,000 people, as per the state government’s estimate. The plan was finalised in Mumbai between Anant Ambani, who heads RIL’s clean energy initiative, and Andhra Pradesh IT minister Nara Lokesh, who also leads the state cabinet’s sub-committee on job creation.
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A memorandum of understanding (MoU) will be signed between RIL and the Andhra Pradesh industries department in the presence of chief minister N Chandrababu Naidu in Vijayawada on Tuesday.
Incentives for Biofuel Projects
The Andhra government has introduced incentives for biofuel projects under the state’s recently notified integrated clean energy policy. These include capital subsidy of 20% on fixed capital investment on CBG plants for five years as well as full reimbursement of state goods and services tax (SGST) and electricity duty for five years. Lokesh confirmed the investment plan to ET. RIL did not respond to a request for comment till press time.
“Job creation is one of our key goals, and we have come out with a slew of incentives in our integrated clean energy policy to attract investors and create jobs,” the minister said. “Reliance already has extensive investments in AP and we have been keen to get them to invest further.”
Lokesh said he had initiated the engagement at the highest level after learning that Reliance wanted to expand its CBG footprint. An action plan was put together to make the investment happen, he said.
“From first outreach to MoU, we converted this in 30 days,” he said. “It’s a great example of our ‘speed of doing business’. I’m delighted this MoU is being signed, and we will provide all necessary support for this Rs 65,000 crore investment from RIL.”
The minister hailed the creation of 250,000 jobs. This he said would be a “game-changer” for the state’s youth. According to sources, RIL will not only rejuvenate government wasteland but also work with farmers and train them in the cultivation of energy crops to increase their income.
“The projections show that farmers would be able to increase their income by Rs 30,000 per acre annually,” said a government official. “At the same time, compressed biogas plants would mean numerous financial and non-financial benefits for the state. The initial estimates have put this at Rs 57,650 crore for 500 plants through SGST collection, electricity duty and taxes due to employment over 25 years.”
https://economictimes.indiatimes.com/industry/renewables/ril-to-pump-rs-65000-cr-into-andhra-pradesh-for-500-biogas-plants-its-biggest-investment-outside-gujarat/articleshow/115191748.cms?from=mdr
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INTERNATIONAL NEWS
Natural Gas / Transnational Pipelines/ Others
US: Over the Hump – Trident Pipeline Would be a Game-Changer for Gulf Coast LNG Terminals
One of the most prevalent stories in the U.S. natural gas market over the past decade has been soaring associated gas production in the Permian Basin and the question of what to do with it. Numerous pipelines have been built over the years connecting Permian gas to demand regions, and more are in the works. The largest source of incremental demand is LNG exports, mostly from the Sabine River area at the Texas/Louisiana border.
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The catch is, getting Permian gas past Houston to the banks of the Sabine presents significant challenges. In today’s RBN blog, we’ll discuss Kinder Morgan’s proposed Trident Pipeline — an attempt to overcome those challenges — and explain why this new outlet would alter gas pricing and flow dynamics in the broader Gulf Coast region.
We at RBN have written about existing and planned gas pipelines out of the Permian many times in the past, recently cataloguing a number of proposed lines in Come Dancing. While that piece primarily covered projects that originate in West Texas, we also snuck in WhiteWater Midstream’s Blackfin Pipeline, which was to be constructed entirely in the eastern half of Texas, bringing gas from Colorado County (near one terminus of the four-year-old Permian Highway Pipeline) north around Houston, ending in the area just north of Beaumont, where other lines would bring gas to LNG terminals in the Sabine River area. Also on the list from that blog was Energy Transfer’s proposed Warrior Pipeline, which would bring gas from the Permian to the area just south of Dallas-Fort Worth. Gas could then move toward the Sabine River through existing intrastate systems (and potentially new ones).
A few months later, Oceanfront Property told the story of the proposed DeLa Pipeline, which would bring “wet” gas all the way from the Permian Basin to gas processing plants in Louisiana. These proposals all identified the need to bridge the gap between the Sabine River region and new gas coming out of the Permian. That need has become more acute than ever now that Matterhorn Express Pipeline started reporting flows on October 1. Matterhorn will ultimately transport 2.5 Bcf/d from the Permian to the area just west of Houston. Now, a new proposal by pipeline giant Kinder Morgan (KM) may be the solution for moving excess Permian gas to the Sabine.
On October 14, KM announced an open season for its Trident Pipeline project: a 48- and 42-inch pipeline that would run from Katy, TX, just west of Houston to the Sabine River, terminating at the Golden Pass LNG export facility in Port Arthur. The next day, Golden Pass Chief Commercial Officer Jeff Hammad announced at the Gulf Coast Energy Forum that Golden Pass had committed to be an anchor shipper on Trident. Golden Pass, a 70/30 joint venture of QatarEnergy (Qatar’s national oil and gas company) and ExxonMobil, is what we would call a very creditworthy counterparty. KM indicated in its open season announcement that it was negotiating with more than one anchor shipper.
The difficulty of getting gas from locations like Katy to the Sabine is that most routes are highly challenging. The most direct path would plow straight through the Houston area, and while the nation’s fourth-most-populous city may be more amenable than most to the pipeline business, negotiating right-of-way agreements across more than a hundred miles of suburban and urban properties would be a Herculean task. (KM does hold significant right of way in Houston for its Texas and Tejas systems.) Instead, the choice has been for Trident to move north around the heavily populated areas before heading over to Port Arthur. This approach has its own challenges, the first being that it’s a long way north to actually avoid those populated areas. Then, the Sam Houston National Forest comes into play. It would make sense that KM would want to avoid having to get federal permits to cross the forest, especially after the ordeal Mountain Valley Pipeline (MVP) went through regarding the Jefferson National Forest in Virginia. The huge advantage enjoyed by the Texas intrastate market is the avoidance of extended delays, so staying away from federal permitting seems immensely wise.
Details about the pipeline route are rough at this point, although KM did sketch out (in the open-season announcement) the counties in which it would have delivery points. Based upon that information and RBN’s own judgment, we have developed a potential pipeline route, as shown in Figure 1 below. (An official KM map has not been released.) As you can see, this route allows the pipeline to avoid a lot of the impediments to cross-regional construction. It could also allow the line to pick up production on intrastate pipelines from the Texas portion of the Haynesville play, where KM has a significant presence. That could be a big advantage as LNG terminals look to secure feedgas with low nitrogen levels to blend with higher-nitrogen Permian gas (see It’s a Gas Gas Gas). As noted earlier, the Trident Pipeline is planned to be 48 or 42 inches in diameter, depending on the location, and able to flow up to 2.8 Bcf/d.
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Argentina: New gas pipeline in Argentina promises more domestic supply
(Reuters) – Argentine officials celebrated the formal kick off of a major natural gas pipeline on Monday, a project that will provide supply from the country’s booming shale development to both homes and businesses as well as eventually allowing for exports.
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The start of operations for the Northern Natural Gas Pipeline, originating in western Neuquen province, will put an end to imports from neighboring Bolivia while moving supply to population centers in northern provinces.
Neuquen is home to the massive Vaca Muerta shale formation, Argentina’s main hope for additional domestic oil and gas production that could end the need for costly foreign supplies.
The newly-inaugurated project cost $710 million, with $540 million financed by the World Bank and the Development Bank of Latin America and the Caribbean.
The government in a statement touted the possibility of future natural gas exports to buyers in Bolivia, Chile and Brazil, marking a reversal in longstanding Argentine energy flows.
The project involved the reversal in the direction of gas moving on the Northern Natural Gas Pipeline, in addition to the construction of the La Carlota-Tio Pujio pipeline.
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Canada: Pembina Pipeline seeing increased interest from potential Cedar LNG suppliers: CEO
CALGARY — Pembina Pipeline Corp. says it has seen an uptick in interest from potential long-term contracted natural gas suppliers since making a firm decision to go ahead with the Cedar LNG project. The Calgary-based pipeline company and its project partner, the Haisla First Nation, green-lit the US$4-billion facility in June.
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Pembina CEO Scott Burrows said the positive final investment decision has given potential suppliers more confidence, and he expects the facility’s remaining uncontracted capacity will demand a “premium.”
The project will involve the construction, expected to start in mid-2025, of a floating liquefied natural gas terminal near Kitimat, B.C.
Cedar LNG will use natural gas from Western Canada to produce liquefied natural gas for export to Asian markets, with a capacity of 3.3 million tonnes per year.
Pembina has already signed a 20-year contract with Calgary-based ARC Resources Ltd., which will supply the natural gas for about half of Cedar LNG’s total production.
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Natural Gas / LNG Utilization
Papua New Guinea: LNG and metals look a strong bet for Papua New Guinea
The outlook is positive for the key commodities exports that will support Papua New Guinea’s resources sector in coming decades, including LNG, gold and copper. Business Advantage PNG speaks with the analysts to find out why. As a significant producer of liquefied natural gas (LNG) and gold, and with plans to expand its substantial copper resources, Papua New Guinea is well placed for the future.
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LNG prices are likely to “remain higher than most people speculate” in the coming years due to a lack of new investments globally, Westpac’s Senior Economist Justin Smirk tells Business Advantage PNG.
In fact, Smirk says, the outlook is “more optimistic” and “less uncertain” than when the PNG LNG project commenced in 2014.
PNG’s proximity to Asia puts it in a particularly strong position. Asia received 261 million tonnes of LNG imports in 2023, 65 per cent of the world’s total, according to the International Group of Liquefied Natural Gas Importers.
While demand is falling in traditional markets that are moving away from carbon-based energy, such as Japan, South Korea and the European Union, independent commodities analyst David Lennox notes it is increasing in China, which requires “huge quantities” of LNG to keep the wheels of its economy operating.
“PNG is closer to the sources of demand that we’re now seeing. It’s a significant player for those suppliers and customers who are looking for a competitive edge in terms of the cost of shipping,” Lennox says.
Gold in an unpredictable world
Meanwhile, the gold price has surged in 2024, breaking out from the roughly US$1,600 to US$2,000 per ounce (oz) that it traded at for most of 2020 to 2023 – already historical highs – to an all-time record of more than US$2,700/oz at time of writing.
Soni Kumari, Commodities Strategist at ANZ, tells Business Advantage PNG that the base price for gold has shifted and prices are unlikely to fall below US$2,000/oz in the foreseeable future.
The geopolitical instability that began with Russia’s invasion of Ukraine triggered “a shift in central bank positions, who want to increase more of their gold reserves,” she says.
United States treasury bills are no longer considered as safe as they once were, Kumari says, adding that “China and the BRICS countries are uniting together, because they see the risk that can be imposed if there is just one reserve currency.”
This fast-changing situation is likely to “support gold demand,” she says.
Kumari and Smirk both note that a rate-cut cycle in the United States (which began on 19 September 2024, when its Federal Reserve cut its target interest rate by half a point), and the likelihood of this weakening the US dollar, would also be supportive of gold.
Copper and tech innovation
Copper is of strong interest to PNG in the long-term, given the plans to develop the Wafi-Golpu and Frieda River projects, which are forecast between them to produce 336,000 tonnes of copper per year by 2036.
Indeed, the potential to increase Newmont Corporation’s exposure to copper was a “fundamental premise” behind its 2023 acquisition of Newcrest Mining, the previous co-owner of Wafi-Golpu. Newmont CEO Tom Palmer believes artificial intelligence and data centres are rapidly emerging as a new demand driver for copper, alongside the green energy transition.
This assessment is supported by figures from the International Energy Agency (IEA), which says that data centres consumed 460 terawatt hours in 2022, representing around 2 per cent of all global electricity usage. This could more than double by 2026, according to the IEA.
Copper prices have also been buffered by supply issues, with Kumari noting that the top three producers – Chile, Peru and the Democratic Republic of Congo, which together produce 46 per cent of the world’s copper – “are not very stable.”
Smirk forecasts that the lack of new investments in copper, overlaid with growth in demand, will see “an underlying upward trend” in the real copper price.
“I would argue that, if you find rich sources of copper to mine within PNG, they become very valuable in long term cycles,” he says. “I’m quite bullish on copper.”
https://www.businessadvantagepng.com/lng-and-metals-look-a-strong-bet-for-papua-new-guinea/
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Columbia: New report warns of economic risks in BC LNG expansion
A new report from Carbon Tracker, an international financial think tank, highlights significant economic risks in the proposed expansion of British Columbia’s liquefied natural gas (LNG) industry. The report, titled Turning Tides: The Economic Risks of B.C.’s LNG Expansion in a Changing Energy Market, was conducted with support from the Pembina Institute and the David Suzuki Foundation. It compares the economics of all proposed LNG projects worldwide without a final investment decision.
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The report cautions that the four LNG terminals in British Columbia awaiting final investment decisions will likely struggle against international competition. Major LNG producers in Qatar, the United States, and Mozambique are expected to deliver substantial volumes of LNG at lower prices, potentially out-competing B.C.’s projects.
According to the report, due to timing, British Columbia’s LNG industry may face additional challenges. The report notes that current development timelines indicate that B.C. projects would begin operations just as global LNG production plateaus, making them late entrants to a market already controlled by established producers who benefit from economies of scale.
Carbon Tracker’s analysis draws on data suggesting that the global LNG market could become oversupplied by the end of this decade. The International Energy Agency has indicated that the current global LNG infrastructure is sufficient to meet demand through 2040, even under a conservative energy transition scenario.
Janetta McKenzie, Oil and Gas Program Manager at the Pembina Institute, said the report is a reminder that these projects carry significant economic risk under a shifting global market for natural gas. “B.C. taxpayer dollars should be leveraged to attract low-carbon investment in clean growth industries as a priority over additional investments in plateauing fossil fuel markets.”
Thomas Green, Senior Climate Policy Adviser at the David Suzuki Foundation, emphasized the risks tied to fossil fuels amid rising renewable energy investments. “With the extraordinary rise of inexpensive renewables, it’s clear that fossil fuels will play a smaller and smaller role in global energy systems. This report highlights the big economic risk facing those in B.C. backing further expansion of the liquefied natural gas industry,” he said.
Maeve O’Connor, an analyst at Carbon Tracker, said the demand for gas is predicted to peak by 2030, and the global LNG market is facing a glut of new supply in the next few years. “Our research shows LNG projects in B.C. will be out-competed on price by other producers and, by the time they come online, will be late entrants to an already crowded LNG market. This report is a warning to investors, policymakers, and communities – returns from new projects are a risky bet.”
https://www.squamishreporter.com/2024/11/05/new-report-warns-of-economic-risks-in-bc-lng-expansion/
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UK: UK finds solace in LNG, but risks remain
LNG is a vital part of the UK’s energy mix, particularly following the recent closure of its last coal-fired plant and amid diminishing domestic gas production. But while early forecasts show the likelihood of a mild start to winter, the country’s heightened reliance on LNG still poses certain challenges, such as competition from global markets, unpredictable weather conditions and limited storage capacity.
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Reporting by: Laurence Walker, Deputy Editor-In-Chief, Montel. Contributors: Robert Songer, LNG Market Analyst, ICIS; and Lucy Cullen, Head of Europe Gas and LNG Markets, Wood Mackenzie.
https://montelnews.com/nordic/videos/101197195/video-slot-1?v=106126576
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Bangladesh: Petrobangla to make fresh short list of LNG suppliers of int’l spot market soon
“The tender is ready for circulation in the media and hopefully the notice will be published in the first half of the next week”, Petrobangla Chairman Zanendra Nath Sarker told UNB. He noted that this time an open tender will be floated to make a fresh list of the LNG suppliers through a transparent process. Bangladesh has been importing liquefied natural gas (LNG) from the international spot market since 2019 to meet its growing gas demands.
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To ensure a smooth supply, as per instruction of the Energy and Mineral Resources Division, the Petrobangla and its LNG handling subsidiary Rupantarita Prakritik Gas Company Limited (RPGCL) invited expressions of interest from the international companies to enlist them with the authorities concerned.
Initially, 17 companies were listed on the basis of the Speedy Increase of Power and Energy Supply Act 2010 and then 5 more companies were added to the list.
From these companies, Petrobangla has been importing the LNG from the international spot market. But every time, it was seen that again and again a number of certain companies are getting contracts and dominating the business.
These companies include Vitol Asia of Singapore, TotalEnergies of Switzerland, Excelerate Energy of USA, and Gunvor Singapore.
Of these, there are allegations; some of the companies had business interests with former ministers and state ministers of the fallen Awami League government and also some local business groups.
After the fall of the Awami League government, when the interim government assumed office, it decided to suspend the Speedy Increase of Power and Energy Supply Act 2010 and instead import the LNG from the spot market under the Public Procurement Rule 2008.
It also decided to scrap the list of the companies soon to bring transparency in the bulk import of LNG as the government has to spend more than a billion dollars to import the LNG.
As part of the decision, finally the Petrobangla moves to prepare a fresh list of the interested companies through an open and transparent process.
“We have decided once the new list of the companies is prepared, we will cancel the previous list of the 23 companies”, said the Petrobangla.
Energy industry insiders said that the new move will encourage more reputed international companies to supply LNG to Bangladesh from the international spot market.
“This will also facilitate to get LNG at a much lower rate which will ultimately reduce the energy cost of the government”, said an energy expert wishing anonymity.
Bangladesh has been experiencing huge gas crisis as it produces 3100 MMCFD Gas per day against a demand of about 4000 MMCFD.
Of the total production of 3100 MMCFD, some 1100 MMCFD gas is being imported from abroad of which 150-200 MMCFD gas is imported from the spot market while remaining is imported from Qatar and Oman under long term contract.
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Global LNG Development
Czech Republic: Sonatrach Signs Historic Agreement to Supply Natural Gas to Czech Republic, Strengthening Energy Ties
Algerian oil and gas giant Sonatrach have signed a historic agreement with Czech energy distributor CEZ Distribuce, marking a significant step in strengthening Algeria’s position in the European energy market, as reported by several media reports. The agreement, which began in mid-October, will see Sonatrach supply natural gas to the Czech Republic, helping the country meet its growing energy diversification goals and reducing its reliance on Russian energy imports.
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Under the terms of the deal, Sonatrach will provide CEZ Distribuce with enough gas to supply approximately 100,000 Czech households annually. While the precise volumes and delivery schedule have not been disclosed, Czech officials have confirmed that the gas will cover about 2% of the country’s annual consumption. This move comes as part of a broader European strategy to reduce dependency on Russian energy, particularly after the geopolitical tensions caused by the war in Ukraine.
For the Czech Republic, the agreement is a crucial part of its long-term energy diversification strategy. As countries across Europe seek to minimize their reliance on Russian energy supplies, Algeria’s gas exports provide a reliable alternative. In addition to tapping into supplies from Germany and Norway, Algeria’s natural gas will help stabilize the Czech energy market and improve energy security. Daniel Beneš, CEO of CEZ, called the deal the culmination of two years of negotiations and a critical step in the country’s efforts to secure energy independence.
For Sonatrach, this agreement represents a significant milestone in its broader European expansion strategy. As one of Europe’s leading liquefied natural gas (LNG) suppliers, Sonatrach is expanding its reach into new markets, helping to meet the region’s growing demand for diversified energy sources. This partnership adds to a string of successes for Sonatrach, which is also increasing its presence in markets such as the U.S., India, and Brazil. Algeria’s government aims to increase its hydrocarbon production by 2.5% next year, targeting a total output of 206 million tons of oil equivalent (TOE) to meet global demand.
The Czech Republic’s new energy partnership with Sonatrach is part of a broader trend in Europe to bolster energy resilience and security. With concerns over supply disruptions and geopolitical risks, diversifying energy sources is seen as a critical strategy for economic stability. For Sonatrach, this agreement could open the door for further partnerships with other EU countries seeking to reduce their dependence on Russian energy supplies, reshaping the European energy landscape in the process.
This deal could also encourage other North African countries to follow Algeria’s example, enhancing the region’s role as a key supplier of natural gas to Europe. As the Czech Republic looks to the future, the Sonatrach agreement is an important step toward ensuring a more secure, diversified, and sustainable energy future.
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Australia: Australia’s next LNG import terminal changes hands
Singapore-based energy company AG&P LNG has announced its agreement to acquire Venice Energy, the developer of a liquefied natural gas (LNG) import terminal in Port Adelaide, South Australia. The acquisition marks AG&P LNG’s entry into the Australian market and aims to address growing gas supply concerns in southeastern Australia. The planned two million tonnes per annum Outer Harbor LNG Import Terminal will feature a converted 145,000 cubic meter LNG carrier transformed into a floating storage and regasification unit (FSRU).
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The facility is expected to achieve a peak send-out capacity of 400 million standard cubic feet per day when it becomes operational in the first quarter of 2027.
The acquisition will be funded by Florida-headquartered Nebula Energy, the majority owner of AG&P LNG.
The project comes at a crucial time as South Australia and Victoria face rapidly declining domestic gas supplies.
“Venice Energy has got the Outer Harbor LNG import terminal project shovel-ready with all key permits in place, offering a key advantage over other LNG import terminal proposals in the region,” AG&P LNG chairman Peter Gibson said.
Venice Energy chairman Kym Winter-Dewhirst said that the company chose AG&P LNG after an eight-month search for a strategic partner, citing the company’s financial backing through Nebula Energy and its track record in LNG operations across Asia.
The terminal is positioned to be among the first to address southeastern Australia’s gas shortage.
Beyond improving energy security, the project is expected to create jobs and attract significant investment to South Australia while supporting the state’s renewable energy sector through enhanced grid stability.
The move represents AG&P LNG’s latest expansion in the Asia-Pacific region, where it already maintains LNG operations and terminal projects across the Philippines, Vietnam, Indonesia, and India.
https://www.pipeliner.com.au/australias-next-lng-import-terminal/
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South Korea: Samsung Heavy Industries secures $390 mln contract for four Suezmax tankers
Samsung Heavy Industries Co. announced on Nov. 1 that it has secured a significant contract to supply four Suezmax tankers to an African shipowner. The deal is valued at 459.3 billion won (approximately $390 million), according to the company’s release. The Suezmax tankers, which represent the largest ships capable of transiting the Suez Canal, are scheduled for delivery by December 2027.
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This latest contract brings SHI’s total orders for the year to 29 vessels, with a cumulative order value of $6 billion. This figure represents 62% of the company’s annual target of $9.7 billion. In addition to the four Suezmax tankers, SHI has secured orders for 22 LNG carriers, two very large ammonia carriers, and one shuttle tanker. The company’s selective order strategy focuses on high-value-added ships such as LNG carriers and floating liquefied natural gas (FLNG) units.
“While maintaining a selective order strategy focused on high-value-added ships such as LNG carriers and FLNG, we will also closely monitor the market for container ships and tankers to respond flexibly,” the SHI representative added.
https://en.portnews.ru/news/369828/
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Singapore: PIL orders five additional LNG dual-fuel container ships
Pacific International Lines (PIL) is accelerating the renewal of its fleet with an order for five 9,000 TEU liquefied natural gas (LNG) dual-fuel container vessels. The vessels will be built by one of China’s leading shipbuilders, Hudong-Zhonghua Shipbuilding (Group) Co.,LTD (Hudong-Zhonghua), with delivery expected in 2027 and 2028. The new 9,000-TEU vessels are designed with highly-optimised cargo stowage features which are aimed at enhancing PIL’s service capabilities.
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According to the company, in addition to being LNG powered, the vessels have the capability to transition to running on bio-methane, one of the lowest emission fuels available to the shipping industry today.
Our aim is to replace up to half our fleet in the next decade with modern new ships and charters. These ships are a significant step towards our green shipping goal of achieving net zero emissions by 2050, while increasing operational and cost efficiencies, improving services to our customers as well as enhancing the welfare of our crew.
Earlier this year in August, PIL had also ordered five LNG dual-fuel container vessels with 13,000 TEU capacity from Hudong-Zhonghua. Similar to the earlier orders, these new vessels will also be equipped with the latest in digital technologies. These include Artificial Intelligence (AI) and Internet of Things (IoT) for real-time monitoring and automation of various tasks.
With this latest order, PIL will have ordered a total of 18 newbuild vessels since 2022. These include four 14,000 TEU, four 8,000 TEU, five 13,000 TEU, and five 9,000 TEU vessels.
https://safety4sea.com/pil-orders-five-additional-lng-dual-fuel-container-ships/
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France: TotalEnergies signs agreement with Sinopec to supply LNG for 15 years
TotalEnergies Gas, Renewables & Power president Stéphane Michel said: “We are delighted to have been chosen by Sinopec to supply two million tonnes of LNG to China, the largest LNG importing country in the world. “This new agreement demonstrates the competitiveness of TotalEnergies’ LNG business and allows us to continue growing our long-term sales in Asia.”
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The partnership, which aligns with TotalEnergies’ strategy to expand its LNG operations, was solidified through a heads of agreement (HOA) and is part of a broader strategic cooperation with Sinopec.
This collaboration was initiated earlier in the year during Chinese President Xi Jinping’s state visit to France.
LNG is increasingly viewed as a critical element in the transition to cleaner energy in China as it provides a solution to the variability of renewable energy sources and offers a cleaner alternative to coal for electricity generation, thereby aiding in the reduction of greenhouse gas emissions
Sinopec Corporation senior vice-president Niu Shuanwen said: “Sinopec and TotalEnergies are strategic partners. This HOA further strengthens the cooperation between the two companies in natural gas.
“Sinopec is committed to building the world’s leading clean energy and chemical company and will continue to promote energy transition and the clean, diversified and secure supply of energy.”
This new commitment also builds on TotalEnergies’ existing relationship with the Chinese energy sector.
In September, the company extended its LNG supply deal with China National Offshore Oil Corporation for an additional five years.
Under the revised terms, TotalEnergies will continue to deliver 1.25mtpa of LNG to China until 2034.
“TotalEnergies signs agreement with Sinopec to supply LNG for 15 years” was originally created and published by Offshore Technology, a GlobalData owned brand.
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China: MSC books 8+4 LNG dual-fuel containerships at Chinese yard
Swiss shipping major MSC Mediterranean Shipping Company has signed a deal with a Chinese shipyard for the construction of up to twelve new liquefied natural gas (LNG) dual-fuel containerships.
MSC’s enormous appetite for newbuildings has continued with an order placed at the reborn shipyard Jiangsu Rongsheng Heavy Industries for eight firm boxships. Moreover, the contract includes the option for four more ships, as reported by Intermodal Shipbrokers.
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The price tag for the 12,000 TEU vessels is believed to be $170 million each, bringing the cumulative value of the deal to more than $2 billion. The delivery dates were not disclosed.
The latest update of the league table published by Alphaliner, the Top 100, shows that MSC reached almost 6.2 million TEUs. The world’s largest container shipping company now controls a total of 866 containerships, out of which it now owns 573 vessels.
The table further shows that the Swiss shipping giant has 131 containerships on order, which represent 1.9 million TEUs of capacity.
Last year, MSC emerged as the first ocean carrier to surpass a staggering 5 million TEUs in fleet capacity, growing its fleet from 4 million TEUs to 5 million TEUs in almost a year.
As part of its fleet expansion strategy, the shipowner recently decided to invest in 18 new containerships, all to be powered by liquefied natural gas. The contracts, signed with two Chinese yards, Shanghai Waigaoqiao Shipbuilding (SWS) and Penglai Jinglu, include 19,000 TEU and 11,500 TEU ships, respectively. The units are slated for delivery between 2027 and 2028.
Recently, the company welcomed the first in a series of eight 16,000 TEU dual-fuel containerships built by China’s Dalian Shipbuilding Industry (DSIC), a subsidiary of China State Shipbuilding Corporation (CSSC). The ship, MSC Maria Cristina, has been fitted with a 13,000 cbm type B liquefied natural gas fuel tank, dubbed the ‘biggest of its kind’ in the world’.
https://www.offshore-energy.biz/msc-books-84-lng-dual-fuel-containerships-at-chinese-yard/
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China: Sinopec’s LNG deal with TotalEnergies a positive
BEIJING: China Petroleum and Chemical Corp (Sinopec) has signed a 15-year deal with TotalEnergies for two million tonnes of liquefied natural gas (LNG) annually from 2028, which is expected to further bolster TotalEnergies’ foothold in China’s energy market and advance the country’s clean energy goals, according to industry experts.
Sinopec signed the LNG sales agreement with TotalEnergies on Monday, under which TotalEnergies will supply approximately two million tonnes of LNG per year to Sinopec for 15 years starting in 2028.
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The agreement with Sinopec, one of the leading LNG players in the country, is part of the company’s strategy to grow its LNG business and strengthen its long-term position in the LNG market in China, said TotalEnergies.
This agreement comes within the strategic cooperation agreement signed earlier this year between the two companies, it said. An analyst said the sales agreement between TotalEnergies and Sinopec will help the latter better cement its presence in China, the world’s largest LNG importer and a key player in global energy transition.
This agreement not only enhances TotalEnergies’ long-term revenue stability in Asia but also positions it as a competitive force in a region with increasing demand for cleaner energy alternatives, said Xiamen University Energy Policy Studies China Institute head Lin Boqiang.
For China, LNG plays a crucial role in balancing renewable energy’s intermittency and replacing coal in power generation, thereby reducing greenhouse gas emissions.
This collaboration with Sinopec underscores TotalEnergies’ strategic pivot toward environmentally sustainable energy solutions, advancing its global energy portfolio while supporting China’s energy transition efforts, he said.
In China, natural gas is a key component of the energy transition as it mitigates the intermittency of rapidly growing renewable energies and helps reduce greenhouse gas emissions when it replaces coal in electricity production.
Sinopec sees TotalEnergies as a crucial partner in the company’s natural gas strategy and this agreement will further strengthen their strategic cooperation in the gas sector, said Sinopec vice-president Niu Shuanwen.
This agreement further strengthens cooperation between the two companies in natural gas.
Natural gas is an important enabler for realising China’s energy transition and dual carbon goals, Niu said. — China Daily/ANN
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Germany: Adnoc signs a historic agreement with SEFE to secure Germany’s LNG supply
The Emirati oil and gas group Adnoc has announced the signing of a liquefied natural gas (LNG) supply contract with the German company Securing Energy for Europe GmbH (SEFE). This 15-year contract provides for an annual delivery of one million tons of LNG starting in 2028. The agreement was signed with the SEFE Marketing and Trading Singapore subsidiary, marking a significant step in securing Germany’s energy needs.
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Germany, increasingly dependent on LNG for its energy needs, views this partnership as a major step towards diversifying its supply sources. Indeed, LNG represents more than a quarter of Germany’s energy supply, underscoring the importance of this new agreement for the country. According to Fatema Al Nuaimi, one of Adnoc’s executives, “natural gas is a pillar of Germany’s energy security, and this agreement reflects our commitment to supporting this security in a sustainable way.”
A low-carbon intensity project
The gas supplied under this agreement will come from the developing site in Ruwais, located 250 kilometers west of Abu Dhabi. This LNG project is presented as one of the most environmentally friendly, with a low carbon intensity compared to other production sites. This feature gives Adnoc an advantage in a market where the energy transition is becoming increasingly crucial.
Once fully operational, the Ruwais plant is expected to produce around 9.6 million tons of LNG per year. To date, more than 7 million tons of this production have already been secured through long-term sales contracts, reinforcing Adnoc’s position as a major LNG supplier for various international markets, including Europe.
SEFE: a pillar of German energy security
Securing Energy for Europe GmbH (SEFE) originates from the former German subsidiary of the Russian gas giant Gazprom. Nationalized in November 2022 following the invasion of Ukraine and the cessation of Russian gas deliveries, SEFE has established itself as an essential player in Germany’s energy security. The company, rescued from bankruptcy by the German government, is tasked with ensuring a stable gas supply for the country and Europe.
SEFE’s CEO, Egbert Laege, highlighted the importance of this partnership with Adnoc, stating that this collaboration “supports efforts to diversify Germany’s energy sources responsibly and to strengthen energy security for all of Europe.” This project thus represents a crucial strategic diversification for SEFE and the German government, which are seeking reliable suppliers beyond Russian borders.
A strategic partnership for Europe
The agreement between Adnoc and SEFE comes in a context of energy tensions in Europe, exacerbated by geopolitical crises. With this agreement, Germany and, by extension, Europe, solidify their energy ties with the United Arab Emirates. The signing of this contract also reflects a willingness for a long-term partnership between Europe and the Middle East to address the challenges of energy transition and supply security.
By expanding its energy cooperation with a major player like Adnoc, Germany hopes to build greater resilience against potential market disruptions. This partnership could also pave the way for similar agreements across Europe, as the continent seeks to stabilize its supplies of energy resources.
https://energynews.pro/en/adnoc-signs-a-historic-agreement-with-sefe-to-secure-germanys-lng-supply/
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Singapore: New deal aims to boost Singapore’s LNG capabilities
The Energy Market Authority (EMA) of Singapore has signed a Memorandum of Understanding (MoU) with PetroChina International Company Limited to enhance Singapore’s expertise in Liquefied Natural Gas (LNG) supply and management.
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Under the MoU, EMA and PetroChina will explore joint efforts to optimize LNG supply chains, share knowledge on market dynamics and LNG fundamentals, and evaluate joint procurement opportunities. Additionally, the partnership will focus on developing Singapore as an Asian LNG hub and promoting sustainable energy solutions, including gas-to-power initiatives.
The MoU was signed in Shanghai on November 7 by Soh Sai Bor, Assistant Chief Executive of EMA, and Wang Haiyan, Vice President of PetroChina.
Soh emphasized that natural gas will remain crucial for Singapore’s energy security as the country works toward its net zero goal, and that the partnership with PetroChina will help improve LNG procurement strategies and contract terms.
https://safety4sea.com/new-deal-aims-to-boost-singapores-lng-capabilities/
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LNG as a Marine Fuel/Shipping
Belgium: Titan completes LNG bunkering operation in Port of Zeebrugge
LNG bunker fuel supplier Titan on Wednesday (6 November) said it has completed a LNG bunkering operation in the Port of Zeebrugge. Titan supplied the newly built Peony Leader Pure Car and Truck Carrier (PCTC) using Optimus – one of its LNG bunkering vessels (LBV).
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“This was the maiden voyage for the Peony Leader, as well as the first time it bunkered LNG while in service. The Optimus’ crew closely supported throughout the process, providing guidance and information to the seafarers onboard the vehicle carrier,” it said in a social media post.
“Our commercial team also visited CSP Zeebrugge to meet the new client, Chimbusco. With a greatly increasing number of PCTC newbuilds being LNG dual-fuelled, we look forward to many more successful LNG bunkering operations with Chimbusco and other shipowners in this segment.”
https://www.manifoldtimes.com/news/titan-completes-lng-bunkering-operation-in-port-of-zeebrugge/
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China: Shanghai going all-out to become green international shipping center
Shanghai, the main hub of the East China region, is taking necessary steps to achieve its ultimate goal of becoming ‘a digital, intelligent and green international shipping center’. According to Xinhua Silk Road—a national-level platform that facilitates the Belt and Road Initiative of China, shipping-related resources are clustering at a fast pace in Shanghai, including related R&D, manufacturing and supplies of financial services, green energy, and smart systems.
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This is said to be in line with Shanghai’s efforts “to craft a new highland for pooling high-end shipping services and improve distribution of shipping resources globally”.
In 2023, Shanghai handled a total of 49.16 million TEU, an increase of 1.7 million TEU or 3.6% compared to 2022 levels, maintaining its position as “the largest and busiest container port in the world for the 14th year in a row”.
This helped Shanghai to be rated third among international shipping centers, according to the 2024 Xinhua-Baltic International Shipping Center Development Index published in August this year. Shanghai, together with Singapore and London, has become one of the most important centers in the world and played a crucial role in ensuring the smooth operation of the global shipping system, according to the report.
Situated at the confluence of the Yangtze, Huangpu, and Qiantang Rivers, Shanghai has deep-water and riverport terminals that manage both international and domestic cargo. Operated by the Shanghai International Port Group (SIPG), it serves as a crucial hub for global trade, connecting over 600 ports across 214 countries. The port’s strategic location, robust infrastructure, and advanced logistics capabilities enable it to handle a wide array of cargo types, including containers, bulk commodities, and liquid cargo.
Container terminals dominate the landscape in Shanghai, equipped with quay cranes capable of handling the world’s largest container ships. The port boasts “a highly skilled” workforce and advanced automation systems, ensuring efficient cargo loading and unloading. These innovations contribute to high efficiency, reduced turnaround times, and lower operational costs.
“Up to now, China’s first shipping futures product, containerized freight index (Europe service) futures, which was officially listed and traded in Shanghai since 2023, has become an important vehicle for the global shipping market to fend off risks,” Xinhua Silk Road said.
“In fostering digital shipping, the city put online the 1.0 version of international container transport online service platform. Last year, the block chain technologies-based electronic release platform for goods at Shanghai Port handled 356,400 bills of lading, up 21 percent on year.”
“In the future, Shanghai will continue to shore up local shipping service capacity.”
In late October, China’s Ministry of Transport inked new memoranda with the Shanghai municipal government to cooperate on improving the Shanghai international shipping center’s influence.
Yu Fulin, Head of Shanghai Municipal Transportation Commission (SMTC), said that Shanghai “has stepped on a road to high-end shipping service branding” and accelerated its pace to build a new generation of smart and green port and cooperate with global partners, and contribute more to global shipping development.
New green shipping corridor
Last month, the Port of Shanghai and Hamburg Port Authority (HPA) signed a memorandum of understanding (MOU) to establish a green shipping corridor.
As informed, the MOU, inked at a forum in Shanghai on October 22, aims to make the shipping industry more environmentally friendly and low-carbon and promote the sustainable development of global maritime transport.
Together with shipping giant COSCO Shipping Lines and SIPG, SMTC and the HPA are working on the implementation of the green shipping corridor. The aim is to accelerate the decarbonization of maritime transport by working with technical equipment suppliers, energy suppliers, cargo owners, terminals and shipping companies.
Similarly, back in 2022, Shanghai and the US ports of Los Angeles and Long Beach decided to create a zero-emission transpacific trade route. The green shipping corridor is said to be in smooth progress. This initiative, supported by some of the world’s largest shipping lines and input from cargo owners, aims to accelerate emissions reductions along one of the busiest container shipping routes.
Port of Shanghai benefitting from hike in China’s export activities
In 2023, the Port of Shanghai continued to benefit from China’s robust export activities. Despite a sluggish global economy, China’s export sector remained strong, supported by a diversified manufacturing base and increasing demand for Chinese goods in international markets, as per the 2024 Xinhua-Baltic International Shipping Center Development Index.
The port’s strategic location and efficient operations made it “a preferred gateway” for these exports.
The port’s integration with advanced digital technologies has also enhanced its operational capabilities. The implementation of AI-driven logistics management systems, blockchain for secure and transparent transactions, and IoT devices for real-time monitoring of cargo movements streamlined port operations, reduced delays, and improved overall service quality. These technological advancements also contributed to the port’s ability to handle a higher volume of e-commerce shipments, reflecting the growing importance of online retail in global trade.
The Port of Shanghai prepares for a sustainable future
The port’s approach to environmental sustainability is said to be remarkable. In 2023, Shanghai made significant strides in reducing its carbon footprint through the adoption of green technologies and practices.
Initiatives such as the use of shore power for vessels at berth, investments in electric and hybrid port equipment, and the implementation of energy-efficient systems helped lower emissions and promote sustainable port operations.
In late August 2024, SIPG and Contemporary Amperex Technology (CATL), one of the “world’s largest” suppliers of batteries for electric vehicles, entered into strategic cooperation. As per the agreement, the two sides will deepen cooperation in the fields of green ports, smart ports, and zero-carbon port construction. Specifically, they intend to jointly promote low-carbon energy transformation and green and sustainable development of the port and shipping industry in terms of energy infrastructure construction, low-carbon transformation of logistics, electrification and unmanned technology of equipment, electrification of ships, digitalization and intelligent upgrading of ports, digital solutions for logistics, and recycling and processing of waste batteries.
In recent years, SIPG has vigorously promoted the construction of energy refueling centers to provide clean energy such as liquefied natural gas (LNG) and green methanol for international ships, supporting the low-carbon transformation and sustainable development of the port and the shipping industry.
“Through continuous investment in infrastructure, technological innovation, and sustainable practices, the port not only maintained its leadership position but also set new benchmarks for efficiency and environmental stewardship in the maritime industry,” the aforementioned report concluded.
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Qatar: QatarEnergy inaugurates four LNG vessels, the first from Korean shipyards in its historic shipbuilding program
The four new vessels, “Id’asah”, “Nuaijah”, “Umm Swayyah”, and “Lebrethah” are part of 128 total vessels ordered from Korean and Chinese shipyards as part of the largest shipbuilding program in the history of the LNG shipping industry.
The naming of the vessels took place in two separate ceremonies in the city of Geoje, the first of which was held at the Samsung Heavy Industries Shipyard for the “Id’asah”, the first to be delivered by Samsung.
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In remarks at this ceremony, His Excellency Mr. Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of QatarEnergy, said: “This very special occasion highlights the growth of QatarEnergy’s strategic partnership with Samsung Heavy Industries and JP Morgan Asset Management’s Global Transportation Group. This event is not only a milestone in our journey, but also a celebration of our partnership and joint commitment to deliver cleaner energy to the world.”
Minister Al-Kaabi thanked the shipowner, a subsidiary of JP Morgan Asset Management’s Global Transportation Group for their commitment and dedication, and Samsung Heavy Industries for their great workmanship and quality.
In the second naming ceremony, which was held at the Hanwha Ocean Shipyard, the first three new LNG vessels to be delivered by Hanwha Ocean as part of this program were named the “Nuaijah”, “Umm Swayyah”, and “Lebrethah”, all of which will shortly join QatarEnergy’s expanding LNG fleet.
In remarks at this ceremony, His Excellency Minister Al-Kaabi said: “This is a historic moment as these three LNG vessels prepare to set sail on their missions across the globe, providing a cleaner and more economic source of energy, and are equipped with state-of-the-art technologies to achieve optimal fuel efficiency and reduce emissions.”
Minister Al-Kaabi thanked the vessels’ owners, the Korean KGL Consortium members: Pan Ocean, H-Line Shipping, and SK Shipping, and also thanked Hanwha Ocean for their dedication and commitment.
The ceremonies were attended by senior executives and representatives from the shipyards, shipowner companies and representatives of the Korean government, in addition to senior executives from QatarEnergy and QatarEnergy LNG.
About QatarEnergy
As a fully integrated energy corporation, QatarEnergy covers the full spectrum of the oil and gas value chain – from exploration to production, from processing and refining to sales and delivery.
As stewards of Qatar’s natural resources and the world’s largest provider of LNG, our strength rests in our ready access to Qatar’s unique reserves to provide energy that fuels social and economic prosperity.
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Technological Development for Cleaner and Greener Environment Hydrogen & Bio-Methane
Fueling greener aviation with hydrogen: Model explores electrification of regional and short-range turboprop aircraft
Despite ongoing efforts to curb CO2 emissions with electric and hybrid vehicles, other forms of transportation remain significant contributors of greenhouse gases. To address this issue, old technologies are being revamped to make them greener, such as the reintroduction of sailing vessels in shipping and new uses for hydrogen in aviation. Now, researchers reporting in ACS Sustainable Chemistry & Engineering have used computer modeling to study the feasibility and challenges of hydrogen-powered aviation.
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“While there is a long way to go for hydrogen aviation to be realized at scale, we hope that our analysis of both onboard system design and enabling infrastructure will be used to prioritize development efforts,” says Dharik Mallapragada, one of the study’s co-authors.
The aviation industry’s energy-related CO2 emissions have grown faster than those of rail, road and shipping in recent decades, according to the International Energy Agency. To reduce the potential climate impacts of this growth, scientists are improving aircraft design and operation, and developing low-emission fuels such as hydrogen, which is used for direct combustion or to power electric fuel cells.
Hydrogen’s appeal as a fuel source is that its use produces no CO2 and provides more energy per pound than jet fuel. To understand the potential impact of switching from traditional jet fuel to hydrogen fuel in aviation, Anna Cybulsky, Mallapragada and colleagues modeled its use in the electrification of regional and short-range turboprop aircraft.
The researchers calculated that the extra bulk of a hydrogen fuel tank and fuel cells retrofitted to an existing plane would need to be offset by weight reductions elsewhere, such as reducing the aircraft’s payload (cargo or passengers). This could mean that more flights would be needed to deliver the same payload.
The team’s model suggested, however, that improvements in fuel cell power and the fuel system’s gravimetric index (the weight of the fuel in relation to the weight of the full fuel tank) could eliminate the need to reduce payload, thus eliminating the environmental impact of additional flights. At the same time, they noted that shifting to hydrogen-powered flight may reduce the aviation industry’s CO2 emissions by up to 90%.
A bigger challenge than switching aviation fuel types may be providing the infrastructure needed to generate and distribute hydrogen in a low-carbon and cost-effective manner. One low-carbon production method uses natural gas reforming (extracting hydrogen from methane gas) coupled with carbon capture, but it requires access to CO2 infrastructure and sequestration sites.
Another green option is electrolysis, which splits water into hydrogen and oxygen, and could be done by using electricity from a nuclear plant or renewable resources. But this would add substantial demand to electrical grids. Cybulsky and colleagues noted that because grid electricity prices can be highly variable across a region, it may be more cost-effective to transport hydrogen from a low-cost production facility to end-users.
For these reasons, the researchers suggest that the rollout of hydrogen-based aviation might start at locations that have favorable conditions for hydrogen production, such as Hamburg, Germany, or Barcelona, Spain. The infrastructure required to support hydrogen use in aviation would also benefit decarbonization efforts in other industries, including road transportation and shipping, by making hydrogen fuel more available.
https://techxplore.com/news/2024-11-fueling-greener-aviation-hydrogen-explores.html
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K Line subsidiary Daito to construct electric tugboat
Daito Corporation, a subsidiary of Japanese shipping company Kawasaki Kisen Kaisha (“K” LINE), has announced lans to build an electric tugboat powered by a large-capacity lithium-ion battery. The initiative aims to enhance environmental sustainability in maritime operations. Daito held a signing ceremony for a collaboration agreement with Kawasaki Heavy Industries (KHI) and Daizo Corporation to construct the electric vessel (EV) tugboat.
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The EV tugboat will feature a high-capacity battery of 3.2MWh, operating on green electricity charged into the battery.
This approach significantly reduces fuel consumption and carbon dioxide emissions compared to conventional tugboats equipped with heavy fuel oil engines.
The innovative hull design and automatic control of onboard power demands optimise energy consumption.
The project is expected to result in around a 60% reduction in carbon dioxide emissions compared to traditional tugboats.
This initiative is part of the Grant Programme for the Promotion of Energy Efficiency and Non-Fossil Energy Transition in the Transportation Sector, a collaboration between the Ministry of Economy, Trade and Industry and the Ministry of Land, Infrastructure, Transport and Tourism.
KHI will offer the control and propulsion systems and their integration for the tugboat.
Completion is scheduled for May 2027, with the tugboat providing towage services at Yokohama Port and Kawasaki Port and driving the development of carbon-neutral ports in both locations.
“K” LINE Group’s long-term environmental policy, “K” LINE Environmental Vision 2050 – Blue Seas for the Future, establishes and operates the DRIVE GREEN NETWORK framework to promote environmental management.
In September 2024, aligning with its sustainable push,“K”LINE took delivery of its liquefied natural gas (LNG)-powered car carrier, NEREUS HIGHWAY, from China Merchants Jinling Shipbuilding (Jiangsu).
https://www.ship-technology.com/news/daito-construct-electric-tugboat/?cf-view
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