“As the partnership between India and the United States deepens, the Adani Group is committed to leveraging its global expertise and invest $10 billion in US energy security and resilient infrastructure projects, aiming to create up to 15,000 jobs,” the X post read.

In the X post, Gautam Adani also tagged US President-elect Donald Trump and congratulated him for the win in the recent presidential race.

On November 6 too, Gautam Adani congratulated Trump on winning the US Presidential polls for a second term and said the US leader embodies tenacity, grit, determination and courage.

“If there is one person on Earth who stands as the embodiment of unbreakable tenacity, unshakeable grit, relentless determination and the courage to stay true to his beliefs, it is Donald Trump,” Adani had said in a post on X.

“Fascinating to see America’s democracy empower its people and uphold the nation’s founding principles. Congratulations to the 47th POTUS-elect Donald Trump,” he added.

This is only the second instance and the first in over 100 years of a leader winning the presidency after losing once. Grover Cleveland served as non-consecutive president in 1884 and 1892.

https://www.thehindubusinessline.com/companies/adani-group-to-invest-10-billion-in-us-energy-and-infrastructure-projects/article68866574.ece

show less

Ayana Renewable Power, owned by NIIF, British International Investment Fund and Green Growth Equity Fund, operates solar and wind plants that produce 1,600 megawatts in India and has another 2,500 megawatts in such projects under construction.

“After due diligence, NTPC Green Energy and ONGC Green Energy have jointly decided to acquire 100% stake of Ayana Renewable Power through a joint venture company,” one of the sources said.NTPC, ONGC, and Ayana Renewable Power did not immediately respond to queries sent by Reuters.

A JSW Group spokesperson declined to comment.

NTPC Green Energy and ONGC Green Energy signed an agreement in February this year to float an equal joint venture, the source said.

Large power producers in India are betting big on renewables and making pledges to expand their green energy capacities. The Indian government has pledged to add 500 gigawatts of clean energy by 2030 to reduce carbon emissions.

NTPC Green Energy, an arm of state-owned power company NTPC , is targeting a valuation of as much as $10.8 billion in an initial offering next week, that is set to be India’s third-largest IPO this year.It will sell all the shares in the IPO – which will be open for bids from Nov. 19-22 – and plans to use the proceeds to repay its unit NTPC Renewable Energy’s debt.

ONGC Green Energy, a unit of state-owned Oil and Natural Corp (ONGC), is expected to list in the current financial year.

https://energy.economictimes.indiatimes.com/news/renewable/jv-of-green-arms-of-indias-ntpc-ongc-is-highest-bidder-for-ayana-renewable-at-650-mln-sources-say/115350402#:~:text=1%20min%20read-,JV%20of%20green%20arms%20of%20India’s%20NTPC%2DONGC%20is%20highest,Infrastructure%20Fund%2C%20the%20people%20said.

show less

The data reveals that CNG adoption has gained traction steadily over the last few years, rising from a meager 10.8 per cent in 2021 to 41.5 per cent in year-to-date (YTD) 2024. Conversely, petrol has lost consumer preference, and its share fell sharply from 82 per cent in 2021 to 55.5 per cent YTD in 2024. Diesel too has lost its share from 6.5 per cent in 2021 to 1.1 per cent YTD 2024.

Ravi Bhatia, president and director, Jato Dynamics, said the share of taxis in sedans is quite high. “Almost 33 per cent of Dzire sales go into the taxi segment. Individuals with dual use (small businesses use CNG) also opt for this fuel type. The taxi use has also rubbed on the image in small ways for these brands,” Bhatia explained.

Maruti has now positioned the fourth-generation Dzire into the personal use segment, while it retains the Dzire Tour as a taxi. The fourth generation Dzire also comes with a CNG powertrain to meet strong consumer preference for this fuel type.

Popular models in the taxi segment such as Hyundai Aura, Tata Tigor, and Maruti Dzire have contributed to the growth of compact sedans. Compact sedans’ share in the overall sedan category grew from 68 per cent in 2021 to 74.6 per cent YTD 2024. In contrast, mid-sedans’ (primarily used as personal cars like Honda City, Maruti Ciaz, and Volkswagen Virtus) share declined from 26.2 per cent in 2021 to 20.2 per cent now, the data showed. 

 Overall, sedans as a category has lost market share in India’s passenger vehicle market as consumers increasingly opt for sports utility vehicles (SUVs). Jato Dynamics data shows the sedan segment’s share fell from 10.05 per cent in 2021 to 8.3 per cent YTD in 2024.

Bhatia noted this represents a nearly 17 per cent decline in sedan market share over three years against SUVs’ share, which grew from 38.17 per cent to 53.56 per cent during the same period.

The data tells a story of a segment in transition. Sedans are increasingly becoming niche products rather than mainstream choices, with success concentrated in specific sub-segments (compact, CNG-powered) while others face significant challenges. Price sensitivity is also increasing, with a concentration in the entry-level segment, Bhatia added.

Some original equipment manufacturers (OEMs) are making efforts to revive the sedan category. Maruti launched the fourth-generation Dzire a week ago, which Partho Banerjee, senior executive officer marketing and sales, Maruti Suzuki India Limited (MSIL), described as a completely new car.

“The Dzire brand is a strong brand, but this car is as good as a new product with high fuel efficiency, plush interiors, and more space,” Banerjee told Business Standard.  Since its debut, the Dzire has sold 2.7 million units and consistently ranked among the top 10 highest-selling vehicles in India. It has been the No. 1 model in the entry-level sedan category for 16 years. Maruti aims to capitalise on this brand strength. Maruti’s Japanese peer Honda is set to launch a facelift of its Amaze sedan in the coming months.

Tarun Garg, chief operating officer, Hyundai Motor India, emphasised the company’s strategy to refresh its sedan portfolio regularly. “We refreshed the Verna and Aura sedans in 2023. We follow the typical model cycle and keep adding features and upgrades like new CNG variants (Aura) and style elements (Verna). We have a double-digit market share in the sedan segment,” Garg said.

While some manufacturers aim for a limited revival, analysts suggest that this may be a prelude to a strategic exit from the segment.

 “Before they exit the product category, OEMs would normally push up the production and bring sales, also by making the product available at a very competitive price. These new models are launched at competitive prices to cater to buyers who buy pre-owned vehicles. Eventually, in a year or two, they would sign off the older facilities but not before recovering residue investment made in it. It is a proper business strategy,” Deven Choksey, Managing Director, DRChoksey FinServ told Business Standard.

Bhatia feels that upgrades in the segment (with more feature-rich variants) may eat away some share from the entry-level SUV segment. “For the customer who wants to upgrade from a hatchback, but is not able to afford an SUV, a feature-rich sedan may be an option to consider,” he said.

https://www.business-standard.com/industry/auto/cng-sedans-gain-popularity-in-india-as-consumers-shift-to-cleaner-fuels-124111700194_1.html

show less

According to analysts from Nuvama Institutional Equities, the recent announcement of an 18-20% reduction in APM gas allocation for CGDs—on top of the 13-14% de-allocation made last month—poses a substantial challenge for the sector’s growth. This drastic cut is expected to impact the operational margins of IGL and MGL significantly, as both companies rely heavily on priority sector volumes.

IGL and MGL’s Exposure: Both companies have over 80% of their volumes sourced from priority sectors, making them particularly vulnerable to these changes.

Gujarat Gas’s Advantage: In contrast, Gujarat Gas has less than 40% of its volumes tied to priority sectors and primarily sources its gas through spot and contracted LNG, potentially mitigating some impacts from the APM shortfall.

Analyst Insights

Oil and gas analysts have expressed concerns regarding the rapid pace of APM allocation cuts:

The government has reduced access to cheaper APM gas priced at $6.5/mmBtu, which is critical for CGD operations.

The cumulative cut of approximately 35% in APM allocation over the past month has led to negative sentiment in the market.

Financial Impact

Analysts estimate that the overall input gas cost for CGDs could rise by $2–6/scm, which may lead to a staggering 43–63% decline in EBITDA for FY26 if price hikes are not implemented.

In light of these developments:

JPMorgan downgraded MGL from ‘Overweight’ to ‘Neutral’, adjusting its target price down to ₹1,300.

IGL was downgraded to ‘Underweight’ with a revised target price of ₹343.

Other firms like Jefferies have also cut target prices for IGL and MGL significantly.

Market Sentiment and Future Outlook

The market is currently grappling with uncertainty regarding future gas pricing and allocation policies. Analysts suggest that without timely price adjustments, both IGL and MGL could face severe margin compression:

Emkay Global estimates a potential hit of 46% on IGL’s EBITDA per SCM against Q2 run-rate figures.

The lack of clarity from government officials regarding excise duty alignment between CNG and other fuels further complicates the outlook.

Conclusion

The significant drop in shares of IGL, MGL, and Gujarat Gas reflects broader concerns about the sustainability of their business models amid ongoing regulatory changes. Investors should remain cautious as they navigate this turbulent landscape, keeping an eye on potential policy shifts that could affect gas pricing and availability.

Disclaimer: This article is intended for informational purposes only and should not be construed as investment advice. Readers are encouraged to conduct their own research or consult with certified financial advisors before making any investment decisions based on market trends or stock performances.

https://indiahood.com/igl-and-mgl-shares-plunge-10-amid-apm-gas-allocation-cuts-gujarat-gas-down-4-tmp/

show less

A Division Bench comprising Justices Vibhu Bakhru and Sachin Datta held that the arbitral tribunal’s decision that Saw Pipes (SPL) was entitled to the agreed consideration for delivery of the goods in question without any reduction in price or imposition of liquidated damages, cannot be interfered with in these proceedings.“We find no grounds to interfere with the tribunal’s finding that GAIL was responsible for the delay in lifting the stocks in a timely manner… Clearly, if GAIL was responsible for the delay, its claim for reduction in the consideration payable to SPL on account of delay in delivery of pipes, would be unsustainable,” the division Bench stated while upholding its single judge’s order in favour of the private firm.“A commercial transaction must be viewed in a reasonable manner and with a perspective that makes commercial sense. The contract provided for SPL to make deliveries as scheduled, it must follow that GAIL also had the obligation to take delivery of the material in a reasonable manner. What is reasonable must be viewed in the overall context of the contract including the production and storage capacity of SPL, which was indisputably known to GAIL prior to issuance of the Purchase Order in question,” according to the judgment.

Saw Pipes had in 1994 bagged the GAIL’s contract in a global competitive bidding for supply of polyethylene coated line pipe for its ‘Gas Rehabilitation & Expansion Project. The supply was to be completed by October 1995.

However, various disputes arose between the parties due to delay in delivery of pipes and GAIL withheld the payments due to Jindal Saw towards damages.

The Jindal Saw’s said it complied with all its obligations as per the contract but the delivery of coated pipes could not be completed within the stipulated period due to delay by GAIL and also on account of force majeure events, including unprecedented rains, floods, onslaught of insects, etc.

GAIL, on the other hand, stated that SPL was unable to meet the production targets due to its own defaults and the PSU had no obligation to lift pipes to match SPL’s production schedule.

In 2002, the arbitral tribunal had awarded $7.2 million along with interest at the rate of 6% per annum with effect from April 1,1997 till the date of the award. Further, the tribunal also awarded interest at the rate of 12% per annum on the amount converted into Indian rupees from the date of award till payment. The tribunal also awarded Rs 1.8 million with interest at the rate of 12% per annum with effect from April 1,1997 in favour of Jindal Saw. GAIL then challenged the arbitral award in the HC. The single judge in 2010 had rejected GAIL’s plea to set aside the arbitral award as it found that the tribunal’s interpretation of the contract was reasonable and its view was plausible one. The single judge also held that GAIL was responsible for delays in lifting pipes, and SPL was entitled to the full contract price without reductions. Accordingly, the HC had imposed cost of Rs 50,000 on the PSU.

While ASG S V Raju and counsel Purnima Maheshwari, appeared for GAIL, Jindal was represented by senior counsel Jayant K Mehta and Vijay K Singh, senior partner, S&A Law Offices.

https://economictimes.indiatimes.com/industry/energy/oil-gas/delhi-hc-upholds-order-directing-gail-to-pay-7-2-mn-to-saw-pipes/articleshow/115305355.cms?from=mdr

show less

The 52nd Gastech Exhibition and Conference kicked off Tuesday with strategic insights from the world’s five leading energy ministers, including India’s, at the George R Brown Convention Center.The event, themed ‘Transforming Energy Through Vision, Innovation, and Action,’ brought into focus a need for global energy stability and rapid decarbonisation.

In his keynote address, Union Minister of Petroleum and Natural Gas, Hardeep Singh Puri underscored India’s increasingly dominant role in the global energy landscape.”If global demand is increasing by one per cent, ours is surging three times faster. Over the next two decades, India will contribute to 25 per cent of the global increase in energy demand,” he said.

He framed India’s challenge as an “energy trilemma,” emphasising the need to balance availability, affordability, and a successful green transition.”We are confident in our ability to manage and succeed in the green transition,” Puri asserted.

The conference’s opening ministerial panel, featuring officials from the US, India, Egypt, Nigeria, and Turkey, deliberated on critical geopolitical and industry challenges.

Geoffrey Pyatt, Assistant Secretary of State for Energy Resources, emphasised the United States’ role in stabilising global energy flows and fostering international cooperation.”With America’s unprecedented energy abundance,” Pyatt stated, “we are positioned to play a central global role, working closely with our international partners.”Egyptian Minister Karim Badawi spoke about his country’s strategic position as a key energy gateway and stressed the necessity of creating an investment-friendly environment.

Nigeria’s Minister of State for Petroleum Resources, Rt Hon Ekperikpe Ekpo, outlined the African nation’s unique natural gas opportunities.Industry leaders, including Chevron CEO Mike Wirth and Cheniere Energy CEO Jack Fusco, discussed the impact of India’s energy policies on global strategies.Wirth called for dialogues on energy futures, while Fusco emphasised the need for adaptable business models to meet evolving energy demands and climate goals.

The discussions also centred on natural gas and LNG, with India’s significant investments shaping the global economic landscape.ConocoPhillips CEO Ryan Lance stressed natural gas’s pivotal role in driving economic growth and technological progress.The Hydrogen conference and the Climate Tech & AI conference showcased India’s growing influence in hydrogen and innovative energy technologies.

https://www.deccanherald.com/india/india-will-contribute-to-25-of-global-energy-demand-in-next-2-decades-hardeep-puri-at-gastech-3195252

show less

This deal supports the Dangote Refinery’s power generation needs and serves as feedstock for operations at its Ibeju-Lekki facility. The deal aligns with President Bola Ahmed Tinubu’s vision to harness Nigeria’s vast gas resources for industrial development.

It will enhance gas monetization and domestic utilization, and also provide consistent fuel supply for power generation and industrial feedstock

Zero-capital expenditure outlay

The move marks a significant advancement in NNPC’s efforts to position gas as a central driver of the nation’s economy. It also represents a zero-capital expenditure (CAPEX) outlay, a pioneering approach in Nigeria’s gas sector.

Dangote refinery is located at Lekki Free Zone in Lagos, Nigeria and covers an area of 250,000 hectares. The Pipeline Infrastructure at the Dangote Petroleum Refinery is the largest in the world, with 1,100 kilometers to handle 3 Billion Standard Cubic Foot of gas per day. The Refinery alone has a 400MW Power Plant that is able to meet the total power requirement of Ibadan DisCo.

 The Dangote refinery has a colossal capacity of 650,000 barrels per day (b/d). It aims to produce a range of refined products, including gasoline, diesel, kerosene, and aviation jet fuel. It aims to produce a range of refined products, including gasoline, diesel, kerosene, and aviation jet fuel.

https://pumps-africa.com/nnpc-dangote-seal-10-year-gas-deal/

show less

Producers in Western Canada this summer endured the worst price slump in five years as a combination of warm weather and high storage volumes oversupplied the market, pushing AECO prices (the Canadian benchmark price for natural gas) below $1 per gigajoule during the shoulder season and spot prices into negative territory in August and September.

Through it all, companies have resolutely maintained production, sometimes to their own detriment, setting new daily production records in October and November even as the added volumes meant prices dropped further.

The blow from dismal natural gas prices has been softened by the steady returns for the byproducts of drilling, including natural gas liquids and condensate, but a feeling is emerging that sweet relief is on the way with the upcoming startup of the LNG Canada export facility in Kitimat, B.C.

LNG Canada will boost exports of natural gas from Western Canada by 20 per cent when it begins commercial operations in mid-2025, BMO Capital Markets analyst Randy Ollenberger recently told a room full of oilfield service contractors at an industry luncheon in Calgary.

“We think the outlook for natural gas in Western Canada is probably the best since 2005,” he said. “Because gas has really sucked since then and we think it’s going to be much better over the next couple of years here. We’ve got a very bullish outlook on that.”

The thesis beginning to grip the sector is that Canadian producers won’t be able to drill fast enough or ship in large enough volumes on existing pipeline routes to meet the combined pull on resources from Shell PLC-led LNG Canada and the demand from the oilsands, where natural gas is increasingly used to power thermal production and mining operations.

For producers, the tantalizing prospect of Canadian natural gas shedding its steep discount to American prices — in a pattern similar to the effect the Trans Mountain Pipeline expansion (TMX) has had on Canadian heavy oil prices — has driven home the importance of pipelines and export infrastructure.

But on the eve of Canada’s first liquefied natural gas (LNG) export facility starting up, the outlook for future LNG development on the West Coast appears more precarious, raising questions about the limits of this country’s potential as an energy exporter.

A trio of approved projects, including the first phase of LNG Canada, are poised to deliver 2.5 billion cubic feet per day (Bcf/d) in natural gas exports by 2028, but industry players and experts say fresh political uncertainty in the form of a tight provincial election in British Columbia and ongoing infrastructure capacity constraints are overshadowing more than four Bcf/d in potential export growth.

And a stall in LNG development could be felt nationwide, according to a recent research paper by former Statistics Canada chief economic analyst Philip Cross.

He modelled the economic returns from a single large LNG project similar to LNG Canada and determined that an LNG project in B.C. that invests about $4.1 billion annually over the decade it takes to construct corresponds to an annual $4.5-billion boost to Canada’s gross domestic product and creates more than 35,000 jobs.

New political uncertainty

Election officials in B.C. last week were working to settle the outcome of a nail-bitingly close race that could have far-reaching consequences for the future of LNG development on the West Coast.

The completion of two judicial recounts confirmed the incumbent B.C. New Democratic Party (NDP) will hold the slimmest possible majority with 47 seats, while the Conservatives have 44 seats and the Greens have two.

It’s an outcome that industry members fear could escalate the political headwinds that have faced LNG projects in B.C. since the defeat of the B.C. Liberals under former premier Christy Clark in 2017.

The razor-thin majority held by the NDP means the party cannot appoint one of its own members as speaker of the house without endangering its vote count in the legislature. All the evidence so far points to Premier David Eby seeking the co-operation of the Greens in some form to ensure a stable government.

One option in play, according to political experts, could have the Greens holding the balance of power in the legislature via support for the governing NDP on a vote-by-vote basis or through a more formal supply-and-confidence agreement. Such a scenario would almost certainly cast a shadow over further LNG development should the Greens elect to capitalize on the opportunity to protest further fossil fuel development.

The NDP has not yet said how it will resolve the matter, though more clarity is expected soon as Eby has promised a short fall sitting of the B.C. legislature to elect a speaker. But a scenario where the Greens hold the balance of power would have a negative impact on energy sector investment, RBC Capital markets analyst Maurice Choy said in a note following the election.

“At first glance, we believe that any material influence that the B.C. Green Party has on energy policy in the province will likely be viewed negatively by investors in our sector, particularly affecting stocks with material natural gas-oriented infrastructure exposure,” he said.

Choy said the Greens have called for a prohibition on new LNG projects, the phase-out of fracked gas production, an end to new pipeline permits and would even direct the B.C. Environmental Assessment Office to let a 2014 environmental certificate for the Prince Rupert Gas Transmission (PRGT) pipeline expire. The PRGT is a key component of one of the more advanced LNG proposals in northern B.C.

The Greens have also called for a B.C. windfall tax on oil and gas companies, which could have an impact on the demand for pipelines, Choy said.

“Of course, there’s the possibility that if the Green Party is kingmaker and they side with the NDP, they will say, ‘Absolutely no LNG development if you want to be government.’ That’s definitely a risk,” Ian Archer, an associate director at S&P Global Commodity Insights and an expert in North American gas markets, said.

“(LNG) could be used as a political playing card in order to win the support of the Greens, but I don’t know if it will be.”

Physical constraints on power and supply

But a more pressing hurdle facing the current slate of proposed LNG projects, Archer said, is the NDP government’s CleanBC regulations.

Brought in last year, the regulations require all new LNG projects to have a plan to reach net zero by 2030 and they place a regulatory cap on greenhouse-gas emissions for the oil and gas sector.

In practice, the policy means that future LNG projects will have to electrify by purchasing electricity and securing transmission from the British Columbia Hydro and Power Authority (BC Hydro) to run the massive, energy-intensive compression and liquefaction process required to produce LNG, a process that is typically accomplished with emissions-intensive gas-fired turbines.

CleanBC doesn’t explicitly prohibit further LNG development, Archer said, but the rules present a significant hurdle for projects other than LNG Canada and the smaller, electric-powered Woodfibre LNG (backed by Enbridge Inc.) already under construction near Squamish B.C.

Even approved projects face an uphill battle, he said.

Investors in the already permitted Cedar LNG project (jointly owned by the Haisla Nation and Pembina Pipeline Corp.) have made a positive final investment decision, but the project still faces a potential eight-year wait for BC Hydro to complete the required power transmission upgrades in northern B.C.

The second phase of LNG Canada (jointly backed by Shell, Petronas Nasional Berhad, PetroChina Co. Ltd., Mitsubishi Corp. and Korea Gas Corp.) has at times appeared to have the blessing of the Eby government, with the premier telling Bloomberg News in July he was optimistic that the export facility could expand without blowing the province’s emissions reduction targets.

“We’ve made some pretty clear commitments around driving down emissions in the province, and we’re at a table with them about how we can try to achieve both of our goals,” he said in reference to the investors behind LNG Canada. “From their perspective, ensuring that reliable, low-carbon energy, and from our perspective, all the emissions not showing up on B.C.’s books as the main producer.”

But beyond the aforementioned projects, all bets are off, Archer said.

The doubling of capacity at LNG Canada’s facility alone would require a massive 400 megawatts in additional power to electrify, raising serious doubts about future LNG development under a provincial regime constrained by BC Hydro’s limited capacity and the competing demand for electrification from other industrial and residential uses.

One sizable project that appears particularly vulnerable is Ksi Lisims LNG.

Proposed for Pearse Island on the northwest coast of B.C., Ksi Lisims is backed by the Nisga’a Nation, Houston-based Western LNG LLC and Rockies LNG Partnership (which represents a consortium of natural gas producers including Canadian Natural Resources Ltd., Tourmaline Oil Corp. and the Canadian arms of Ovintiv Inc. and Murphy Oil Corp.) and is still seeking environmental approvals for its 1.58 Bcf/d liquefaction and export terminal.

The project will be fed by the 800-kilometre gas PRGT pipeline, which is still in the early phases of construction and facing political and activist opposition.

“With future projects … it becomes an open question whether BC Hydro can meet their energy load and can meet it in a timely way and that’s kind of where the rubber hits the road right now,” Archer said. “It’s going to be very challenging for BC Hydro to meet (the demand of) something like a Ksi Lisims project. It can probably do Cedar, but Ksi Lisims might be a bridge too far.”

The gloomy outlook for the Nisga’a-led project is not lost on Karen Ogen, chief executive of the First Nations LNG Alliance, who said before B.C.’s election results were finalized that the next government will determine whether these projects either go ahead or will be stopped.

“We need a government that’s going to support those projects and I think that’s probably worrisome,” she said. “I think it’s critical to the quality of life of Indigenous people in B.C. and especially for those (First) Nations that are at the helm of these LNG projects.”

Preparing for an upswing

Despite the uncertainty, the Canadian oilpatch seems cautiously optimistic as LNG Canada prepares to ship its first cargoes from the B.C. coast.

The thesis Ollenberger recently shared in Calgary that ignited hopes among beleaguered gas producers is the possibility that it could take up to three years for Canadian production to catch up with the demand from the first phase of LNG Canada.

He said it will take that much time since the combined demand pull from LNG Canada and the oilsands could be as much as 2.5 Bcf/d, whereas the basin might only be capable of supplying another 700 to 800 million cubic feet per day in new gas, potentially propelling AECO to trade near parity with U.S. benchmark Henry Hub gas.

“We think that AECO is going to be the best performing gas market within North America over the next three years because this increased capacity from LNG Canada is so material,” he said.

Tourmaline Oil executives are similarly optimistic about the prospects of an AECO rally, with chief executive Michael Rose telling Bloomberg recently that the discount on Alberta natural gas could be cut in half next year.

On a recent conference call with investors, Tourmaline chief executive Michael Rose said the more than 1.8 Bcf/d in natural gas production required for LNG Canada when it starts up is currently being absorbed into North American markets and that the anticipated pull on volumes next year will trigger a rise in Canadian prices.

“We’ve decided to get the pads drilled out so that we can respond,” he said. “We think the AECO strip is understating what the impact of the ultimate startup of LNG Canada will do.”

https://financialpost.com/feature/lng-canada-start-shipping-2025-but-growth-uncertain

show less

Each cargo size under the proposal would be approximately between 3,100,000 and 3,200,000 MMBtu (Million British Thermal Unit, a unit used to measure LNG), with the price quoted at JKM+0.87 USD per MMBtu.

 

JKM stands for Japan Korea Marker, an index that measures the price of LNG delivered to Japan, South Korea, China, and Taiwan, and is accepted as the Asian standard. The JKM as of 20 November, according to S&P Global, is USD 14.65.

In the past, Bangladesh has usually imported LNG cargoes measuring 3,360,000 MMBtu.

The BEST, Brunei’s state-owned company, is primarily engaged in the trading of crude oil, LNG and methanol in the regional energy market while the RPCL is a subsidiary of the state-owned Petrobangla which remains engaged in importing LNG from abroad.

Official sources at Petrobangla said that the idea of importing LNG from the energy-rich Southeast Asian nation is not new, as Bangladesh had received an offer from the country in 2018 as well. That led to the signing of a memorandum of understanding (MoU) between the two ‘brotherly’ nations in August 2018.

But that MoU did not materialise into the proposed energy trade between the two nations which finally resulted in extension of the deal between Dhaka and Bandar Seri Begawan for another five years.

Official sources said the final push came from Brunei in this regard when its Sultan Haji Hassanal Bolkiah paid a three-day state visit to Bangladesh on 15-17 October in 2022.

Initially Bangladesh agreed with the offer, a top level source at Energy and Mineral Resources Division said, speaking on condition of anonymity considering the sensitivity of the subject.

There are widespread allegations that the then-state minister for energy and power Nasrul Hamid was opposing the offer as his business interests were best served by LNG supply from the international spot market.

As a result, Brunei became disappointed with such opposition from Hamid, the source said.

After the fall of the Awami League government in a mass uprising last 5 August, Brunei resumed its courtship, and this time saw a breakthrough.

The Energy and Mineral Resources moved the Petrobangla’s proposal to import LNG from Brunei on a long term basis under a government-to-government (G-to-G) contract.

The Advisory Council Committee on Economic Affairs (ACCEA), in a meeting with Finance Adviser Salehuddin Ahmed in the chair, approved the proposal in principle on 13 November.

Currently, Bangladesh has been importing a total 3.5 million metric tonnes per annum (MTPA) of LNG from Qatar and Oman on a long term basis under G-to-G agreements.

Qatar supplies 2.5 MTPA on a 15-year contract while Oman supplies 1 MTPA on a 10-year contract.

Last year, the then-Awami League government signed two more contracts with the two countries and also with US-based Excelerate Energy and local conglomerate the Summit Group to increase the import by another 5.5 MTPA of LNG.

About Brunei’s proposal, Petrobangla Chairman Zanendra Nath Sarker said the deal is at the stage of “in principle” approval, now the state hydrocarbons agency will start negotiations to finalise the price, and also a contract period.

“Until negotiations end, nothing will be set regarding the price and contract period of the supply,” he told UNB.

https://en.prothomalo.com/business/local/mk9ee3n80m

show less