NGS’ NG/LNG SNAPSHOT – Oct 1-15, 2023
National News Internatonal News
NATIONAL NEWS
City Gas Distribution & Auto LPG
GAIL Gas commences supply of PNG to many industrial and commercial establishments and some households in Mangaluru
GAIL Gas Limited (GGL) that is entrusted with the city gas distribution (CGD) in Dakshina Kannada district to supply piped natural gas to industrial and commercial establishments and households has already commenced PNG to a diverse array of customers in Mangaluru.
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The PNG supply under the CGD project encompasses a geographical expanse spanning 4,861 square kilometers and includes the towns of Bantwal, Belthangady, Mangaluru, Puttur, and Sullia, said an official release here on Friday.
The region has 18 operational CNG stations in Dakshina Kannada for automobile vehicles.
A diverse segment of customers in Baikampady Industrial Area are being supplied PNG by GAIL Gas, 13 industrial and 13 commercial. Currently, 72 households in NMPA Colony and KIADB Colony in Baikampady and Panambur are availing the benefits of PNG.
GAIL Gas has forged gas sale agreements for PNG supply to additional 40 industrial units and 124 commercial establishments, including hotels and restaurants.
The community response has been overwhelmingly positive, with over 1.10 lakh registrations received for domestic PNG connections (DPNG) from households, flats, and individual residences.
The release said GAIL Gas is steadfast in its commitment to enhancing the CGD Network in next 8 years, with plans to establish 100 CNG stations across the district. Soon, the convenience of CNG will extend to areas like Puttur, Sullia, and Nellyadi.
On the PNG front, 3.5 lakh households will benefit from the safe and accessible PNG fuel in longer span of time. The initial phase will witness PNG connectivity in areas such as Surathkal, Mukka, Mulki, Kulai and Bondel, with plans for expansion into other residential regions.
Registration for domestic PNG connections may be completed through the PNG Mitra App, with round-the-clock customer support available at 1800-102-9282 to address queries.
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BP Launches Renewable Natural Gas Plant in Indiana
The Medora plant captures the gas from a landfill owned by Rumpke Waste and Recycling and converts it to electricity, heat, or renewable natural gas, which “leads to cleaner air, less odor, and more sustainable energy when compared with traditional fossil fuel energy”, BP said in a news release. The plant is the first to come online since BP’s acquisition of Archaea in December 2022.
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BP said the Medora plant can process 3,200 cubic feet of landfill gas per minute into RNG, which is enough gas to heat around 13,026 homes annually, according to the U.S. Environmental Protection Agency’s Landfill Gas Energy Benefits Calculator.
According to BP, RNG plants have been custom-built traditionally, but AMD allows plants to be built on skids with interchangeable components. Using a standardized modular design leads to faster builds than previous industry standards, the company added.
“What we are doing at the Medora plant is phenomenal and it’s just the beginning of what’s to come at Archaea”, Archaea CEO Starlee Sykes said, “This is a powerful step forward in our net zero journey to capture landfill emissions and provide customers with lower emission, lower carbon fuel. Our goal is to safely bring several AMD plants online this year. I’m in awe of our team who designed, engineered, and built this facility and we can’t wait to bring more online across the US”.
“Our family company is constantly looking for technologies to lessen our overall impact and further our efforts to protect and preserve the environment”, Rumpke Waste & Recycling Area President Jeff Rumpke said. “The addition of Archaea Energy’s RNG plant at our site will help further reduce emissions and give residents and businesses assurance that their waste is not only being properly disposed of – but also being put to good use”.
BP said it became the largest producer of RNG in the USA with the acquisition of Archaea. Bioenergy is one of five strategic transition growth engines that the company intends to grow rapidly through this decade, expecting to deliver around $2 billion EBITDA in 2025 and aiming to deliver more than $4 billion in 2030. In addition to bioenergy, BP’s transition growth engines include convenience, electric vehicle charging, renewables & power, and hydrogen. The company expects to invest up to $8 billion more in its transition growth businesses this decade to reach more than 40 percent of its total annual capital expenditure by 2025, aiming to grow this to around 50 percent by 2030, according to the release.
In September, BP started construction on its 187 megawatts defined conditions (MWdc) Peacock Solar project, located 10 miles north of Corpus Christi in San Patricio County, Texas. Peacock will sell all of the electricity it generates under a long-term power purchase agreement to Gulf Coast Growth Ventures (GCGV), a joint venture between ExxonMobil Corp and Saudi Basic Industries Corporation (SABIC), which produces materials used to manufacture clothes, food containers, packaging, agricultural film, and construction materials, BP said in an earlier news release.
Meanwhile, hydrogen technology company Advanced Ionics closed a $12.5 million Series A financing led by BP ventures, with additional investors including Clean Energy Ventures, Mitsubishi Heavy Industries, and GVP Climate, according to a separate BP news release.
Advanced Ionics is a developer of a new category of hydrogen electrolyzers useful for expanding green hydrogen production. The new capital will help catalyze Advanced Ionics’ growth and facilitate the initial deployment of its Symbion water vapor electrolyzer technology for heavy industry. Water vapor electrolyzers address two of the biggest obstacles to expanding green hydrogen production: cost and electricity requirements, according to the release. The company’s water vapor electrolyzer helps reduce the cost and electricity requirements for green hydrogen production by symbiotically integrating with standard industrial processes to harness available heat.
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Mahanagar Gas Partners with Vehicle Manufacturers to Drive Growth in Compressed Natural Gas Adoption
Mahanagar Gas, a leading natural gas distribution company in India, is making efforts to boost the adoption of compressed natural gas (CNG) among light-commercial vehicle operators. In order to achieve this, the company has recently entered into partnerships with passenger vehicle manufacturers.
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According to a report by Jefferies, these strategic partnerships include attractive incentives for car buyers such as free-fuel cards worth Rs 20,000, aimed at encouraging the use of CNG. Additionally, for small, medium, and large commercial vehicle buyers, Mahanagar Gas is offering fuel worth Rs 2 lakh, Rs 3.5 lakh, and Rs 5 lakh respectively.
To further support the growth of CNG adoption, the Maharashtra State Road Transport Corporation is retrofitting 500 diesel buses with CNG kits in Mahanagar Gas’s service areas. These combined efforts are expected to result in a significant boost in volume growth, with Jefferies forecasting a 7-8% acceleration.
Highlighting the positive impact of these measures, Jefferies has revised their volume estimates for fiscal years 2025-26 to 6%, an upgrade from the previous estimate of 4%. This indicates a growing optimism in the potential of CNG as a cleaner and more sustainable fuel option for the transportation sector.
Overall, Mahanagar Gas’s partnerships with vehicle manufacturers and the retrofitting of diesel buses with CNG kits are strategic steps towards increasing the adoption of CNG among light-commercial vehicle operators. Through these efforts, the company aims to drive growth in this sector and contribute to a greener and more environmentally friendly future.
Definitions:
– Compressed Natural Gas (CNG): A cleaner and more environmentally friendly alternative to traditional fuels such as gasoline or diesel, CNG is primarily composed of methane gas compressed to high pressures for use in vehicles.
– Mahanagar Gas: A leading natural gas distribution company based in India, responsible for supplying natural gas to various sectors including transportation.
Sources:
– Jefferies report
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Exxon Mobil nears $60 bn acquisition of shale driller Pioneer Natural
Exxon Mobil is in advanced talks to acquire Pioneer Natural Resources in a deal that could value the Permian shale basin producer at about $60 billion, people familiar with the matter said on Thursday The acquisition would be Exxon’s biggest since its $81 billion deal for Mobil in 1998 and would expand its footprint in one of the most lucrative regions of the US oil patch.
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Pioneer’s shares rose nearly 12 per cent to $240.47 in pre-market trading on Friday while Exxon slipped 1.7 per cent. Pioneer, which had a market value as of Thursday of $50 billion, is the largest producer of oil in the Permian basin after Chevron and
ConocoPhillips. The basin, which stretches across parts of Texas and New Mexico, is the US energy industry’s most coveted because of its relatively low cost to extract oil and gas. If the negotiations conclude successfully, an agreement between Exxon and Pioneer could be reached in the coming days, the three sources said, asking not to be identified because the matter is confidential.
Spokespeople for Exxon and Pioneer declined to comment. The Wall Street Journal first reported on Thursday that a deal between the two companies was approaching.
Exxon is the largest US oil producer with an average 3.8 million barrels of oil equivalent per day (boed) from its global operations. Last year it earned $55.7 billion due to high oil and gas prices and ended the year with $29.6 billion in cash. Some of those profits have tapered off this year as energy prices have fallen over concerns about a global economic slowdown weighing on fuel demand.
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Natural Gas/ Pipelines/ Company News
Prime Minister Modi Inaugurates GAIL’s Ambitious Nagpur-Jabalpur Pipeline Project
India’s PM Narendra Modi laid a stone to mark the start of GAIL’s 317 km Nagpur-Jabalpur pipeline. This landmark event, reported by The Hitavada on Thursday, marked a pivotal moment in the nation’s energy infrastructure development.
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Addressing the press during a conference on Wednesday, Sandeep Kumar Gupta, the Chairman and Managing Director of Gas Authority of India Limited (GAIL), expressed enthusiasm about realizing Prime Minister Modi’s vision for the National Gas Grid’s expansion.
The foundation stone ceremony took place in Jabalpur, where Prime Minister Modi also inaugurated the Vijaipur-Auraiya Natural Gas Pipeline Project.
The Nagpur-Jabalpur Natural Gas Pipeline, with an estimated investment of Rs 1,103 crore ($133,000), is set to span 317 kilometers, starting from Nagpur in Maharashtra and traversing through the districts of Chhindwara, Seoni, and Jabalpur in Madhya Pradesh. In Madhya Pradesh alone, the pipeline will stretch 256 kilometers, serving 144 villages in these three districts.
The project is an integral part of the 1,755-kilometer-long Mumbai-Nagpur-Jharsuguda Pipeline (MNJPL) Project, categorized as a high-impact initiative under the PM Gati Shakti Master Plan.
Upon completion, this pipeline will provide natural gas to four designated geographical areas authorized by PNGRB along its route in Madhya Pradesh. These areas include Betul, Chhindwara, Seoni, Balaghat, Damoh, Jabalpur, Katni, Mandla, Umaria, Dindori, Hoshangabad, Narsinghpur, Sagar, Vidisha, and Anuppur.
The new development will grant access to natural gas for 15 districts in Madhya Pradesh, resulting in approximately 26 lakh PNG connections and the establishment of over 550 CNG stations by city gas distribution companies in the near future.
The Nagpur-Jabalpur Natural Gas Pipeline Project is slated for completion by October 2024 and is expected to generate employment opportunities totaling around five lakh man-days during the construction phase.
Furthermore, another noteworthy initiative, the 352-kilometer-long Vijaipur-Auraiya Natural Gas Pipeline, comprising 193 kilometers in Madhya Pradesh and 159 kilometers in Uttar Pradesh, has been constructed with an investment of Rs 1,765 crore( $212,000).
The pipeline will provide eco-friendly and affordable fuel to industries, households, and the transport sector in Madhya Pradesh and Uttar Pradesh.
With increasing concerns regarding environmental degradation and pollution, the utilization of natural gas is seen as a pivotal step toward a cleaner and more environmentally sustainable energy source.
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MGL slashes CNG prices in Mumbai, check new rates here
Mahanagar Gas Limited (MGL) on October 1 announced reduction in the retail price of compressed natural gas (CNG) by Rs 3 per kg and domestic PNG (piped natural gas) by Rs 2 per SCM in and around Mumbai.
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“MGL is pleased to announce reduction in CNG price by Rs 3/Kg and Domestic PNG (DPNG) by Rs 2/ SCM in and around Mumbai. The revised MRP of CNG will be Rs 76.00/Kg and Domestic PNG Rs 47.00/SCM effective from midnight of 1st October 2023/ morning of 2nd October 2023,” a statement from the gas distributor read.
“MGL welcomes the reduction in price of domestically produced High Pressure High Temperature (HPHT) Natural Gas by GOI. This reduction will further promote usage of Natural Gas in general and will contribute to increase in consumption of natural gas in domestic and transportation segment in particular,” Mahanagar Gas Limited also stated in its press release.
“MGL has always been a customer friendly company, consistently and promptly passing reduction in gas costs to its consumers to promote usage of Natural Gas,” MGL further said.
The revised retail price of CNG will be Rs 76/kg and that of domestic PNG Rs 47/SCM effective from midnight of October 1.
In April this year, MGL reduced its CNG price by Rs 8/kg and domestic PNG by Rs 5/SCM.
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GL achieves record numbers in FY23
Despite a year of high input gas cost, Indraprastha Gas Limited (IGL), the largest CNG distribution company of the country was able to achieve record top line and bottom line numbers in Financial Year 2022-23. In line with the massive push by the government to expand CNG and PNG infrastructure across the country, IGL was able to provide 3.1 lakh new PNG connections in 2022-23 in its areas of operation overcoming various hurdles.
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In addition to the above, 81 new CNG stations had been set up during this period, thereby taking the total number of CNG stations set up by IGL to 792.
This was announced by R K Jain, Chairman, IGL, while addressing the shareholders at the 24th Annual General Meeting of the company in New Delhi today through virtual mode.
Addressing the shareholders, Jain informed that during the fiscal, IGL achieved gross turnover of Rs. 15,543 crores and PAT was Rs. 1,445 crore. The consolidated PAT of IGL after considering the contribution of the Associate Companies namely, Central UP Gas Limited (CUGL) and Maharashtra Natural Gas Limited (MNGL) was Rs. 1,640 crore. The net worth of the Company was over Rs 7,086 crore as on March 31, 2023. He added that IGL is confident to better its own performance in the ongoing financial year and the first quarter results bear testimony to that fact.
Jain also gave an overview of future plans of the organization involving consolidation of its presence in existing areas as well as expansion in new geographical areas. Referring to the diversification plans for future growth, he informed that IGL has set up a new joint venture company, IGL Genesis Technologies Ltd., to manufacture meters as a step towards backward integration.
Highlighting IGL’s commitment to providing sustainable clean energy solutions, Mr. Jain informed that IGL is actively participating under SATAT and GOBAR-DHAN government schemes to facilitate waste management and to promote use of Compressed Bio Gas.
He also disclosed that IGL is exploring opportunities to set up Solar Power and Green Hydrogen generation plants. He added that IGL is already in the process of setting up EV charging and battery swapping facilities.
https://www.millenniumpost.in/business/sensex-rebounds-173-pts-534549?infinitescroll=1
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India’s BPCL offers first gasoil cargo in over a year – sources
SINGAPORE (Reuters) -India’s Bharat Petroleum Corp has offered its first spot gasoil cargo, via a sales tender, in more than a year, three industry sources familiar with the matter said on Monday.
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BPCL is seeking to sell at least 40,000 metric tons of 10ppm sulphur gasoil loading Oct. 26-27 from Kochi, according to a document seen by Reuters.
The tender closes on Oct. 3, with same-day validity.
The refiner had previously offered contractual 10ppm sulphur gasoil cargoes in April 2022, for delivery between July 2022 and January this year, Reuters records showed. [MDIS/TENDA]
This sudden offer could be due to strong profits overseas, amid a drop in export levies last Friday. Recent October-loading deals for India-origin gasoil are at premiums of around $6 a barrel to free-on-board Arab Gulf quotes – a rise from $4 for September loaders, one of the three sources said.
The state-owned refiner previously sought to buy gasoil cargoes for end-June to early July delivery to its Mumbai refinery, likely due to planned maintenance for some diesel-producing units in its Kochi refinery, a second source said.
BPCL did not immediately respond to a request for comment.
https://theprint.in/economy/indias-bpcl-offers-first-gasoil-cargo-in-over-a-year-sources-2/1792410/
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Tata Steel embraces gas to cut emissions, coal still in play
Tata Steel is in talks with state-owned GAIL Ltd to tie up liquified natural gas (LNG) supplies to replace a significant portion of diesel that the company uses at its mines as a part of its strategy to reduce overall carbon emission.
Tata Steel Ltd is turning to gas to reduce its carbon emissions even as it explores other cleaner options for energy in the long term. But the share of coal in its energy mix may remain the same, despite the company’s ambitious plan to double its manufacturing capacity.
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As Tata Steel aims to double its production capacity in India to 40 million tonne per annum by 2030, it is faced with the dual challenge of reducing its carbon emission while keeping its costs under check. While the company is exploring alternate sources of energy for use across its supply chain, it comes with a price and could potentially hurt its earnings before interest, taxes, depreciation, and amortisation (EBITDA).
“Currently, coal is our primary fuel to produce quality steel in India. However, we are working on various energy mix to diversify the energy basket,” Uttam Singh, vice president, iron making, Tata Steel, told Moneycontrol.
Tata Steel aims to achieve emission intensity of less than 2 tCO2/tcs by 2025 and reach ‘net zero’ by 2045. As of the financial year 2022-23, Tata Steel’s consolidated emission intensity was at 2.21 tCO2/tcs, while on a standalone basis, it stood at 2.38 tCO2/tcs.
Amidst the global push for environmental responsibility, steel companies are compelled to pursue decarbonisation as they grapple with the potential impact of cross-border carbon taxes on their industry.
Tata Steel is working on a long-term plan for decarbonisation, which primarily entails reducing emissions, carbon capture and utilisation (CCU), hydrogen-based steelmaking, increased share of renewable energy generation, and higher use of scrap to manufacture steel. But even as the company, like other steel makers, works on making the technology and cost viable, it looks at gas to fill the gap in the short term.
Rajiv Mangal, vice president of safety, health and sustainability, said, “In the furnace we use coke, and until hydrogen is available we are looking to use natural gas. Natural gas is today not available in Jamshedpur but it has reached east of India. We are in discussion with GAIL to see when they can bring natural gas to the doorsteps of Tata Steel.”
Sourcing Gas
The Tata Group steel manufacturer is talking to state-run GAIL for sourcing liquified natural gas (LNG) to replace 25-30 percent of diesel used by its Heavy Earth Moving Machinery (HEMM) at its mines. Typically, LNG produces 20-30 percent less carbon dioxide (CO2) than diesel.
A query sent to GAIL remained unanswered.
“We have done experiments in Noamundi and West Bokaro. We had replaced diesel with LNG for two dump trucks; it requires a dual fuel kit in the trucks. Our experiment shows that we can run on 30 percent LNG and 70 percent diesel. Now we are sourcing dual kits for our entire fleet,” said DB Sundara Ramam, vice president, of raw materials.
The company has also signed a memorandum of understanding (MoU) with Indian Oil Corporation Ltd to replace furnace oil and high-speed diesel with liquified petroleum gas (LPG) to reduce carbon footprint at its ferroalloy plants. It is currently not using LPG, and to begin with, it plans to start using it at its plants at Athagarh and Gopalpur in Odisha.
Hydrogen play in the works
Energy-intensive industries like steel are exploring hydrogen as a promising fuel to reduce emissions, yet they face significant challenges in terms of infrastructure and cost-effectiveness.
“We are exploring multiple ideas on this front. We are working with different hydrogen suppliers and technical partners to understand the best way of making hydrogen. We are contemplating on both the aspects – making or buying hydrogen,” Singh said.
In a report titled ‘Steel decarbonisation in India’ in September, Institute for Energy Economics and Financial Analysis (IEEFA) and JMK Research estimated that the steel industry will replace around 25-30 percent of its grey hydrogen requirements with green hydrogen in the early part of the 2030-2050 period. This will increase to 80 percent by 2050. The report highlighted that the cost of green hydrogen needs to be reduced and there is a need for a price penalty on carbon emissions for Indian steelmakers to switch to hydrogen-based steelmaking.
In April this year, Tata Steel undertook the trial injection of hydrogen gas using 40 percent of the injection systems in ‘E’ Blast Furnace at its Jamshedpur Works. The success of the trial has given the company insights into operating blast furnaces with greener fuel injectors to reduce fossil fuel consumption and cut down on CO2 emissions from the blast furnace.
“We are also working with a number of startups to understand the hydrogen play. Given we have been historically coal users, our focus is to increase our knowledge and expertise in the hydrogen space. We are engaging with the government to solicit support and make it viable for the larger ecosystem,” Singh said.
While the company engages with the Indian government for support, it met success in its UK operations on this front as the government there agreed to give a grant of £500 million to help the company decarbonise its Port Talbot project in Wales, after months of negotiations. Tata Steel will add £700 million of its own as it invests in cutting emissions.
The Challenge
Energy-intensive industries like steel are exploring hydrogen as a promising fuel to reduce emissions, yet they face significant challenges in terms of infrastructure and cost-effectiveness.
“Decarbonisation will be a costly affair for them (Tata Steel) – both in India and in the UK – given the current prices of alternative fuels. It’s not easy but there is societal pressure that will make them take small steps in that direction. They may have to change the pace of decarbonisation depending on trends in the cost of fuel versus that in the realisation of steel. In a good steel cycle, they may accelerate decarbonisation but in a low phase they may slow it down,” Deepak Jasani, head of retail research at HDFC Securities.
There is added pressure to improve performance on account of Environmental, Social and Governance (ESG). To add to that, the European Union will start collecting carbon emission charges at its borders from the beginning of 2026; Carbon Border Adjustment Mechanism (CBAM) initial phase was kickstarted on October 1. Steelmakers will have to move fast and Tata Steel knows that.
“Switching fuel may also need changes in operating assets/ technology. All this may take time. They are responsible corporate citizens but they are also responsible to the stakeholders so they will have to keep doing cost-benefit analysis at different stages,” Jasani said.
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Anuj Jain appointed director (finance) at Indian Oil
New Delhi: The government has appointed Anuj Jain as director (finance) at Indian Oil Corp. Jain, 52, assumed the new role on Monday, the company said in a statement. The position had been vacant for about a year since Sandeep Gupta, Jain’s predecessor, left Indian Oil to join GAIL as chairman last year.
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Jain is a chartered accountant and has spent over 27 years at Indian Oil, working in diverse areas such as corporate finance, treasury and fund management, supply chain optimization, pricing, shipping, and taxation. Before taking over the finance chief’s role, he was working as chief general manager (finance) at the company’s refineries headquarters in Delhi. He has previously worked as the CFO of Indian Oil’s Sri Lanka subsidiary.
Indian Oil is the country’s largest refiner and fossil fuel retailer.
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ONGC Videsh keen on Sri Lankan oil and gas blocks
The company was awaiting an announcement of the oil and gas ‘roadmap’ of the island nation, Rajarshi Gupta, managing director of ONGC Videsh, told reporters at an industry event.
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Oil and Natural Gas Corp is interested in the exploration of oil and gas blocks in Sri Lanka, a company executive said on Wednesday.
The company was awaiting an announcement of the oil and gas ‘roadmap’ of the island nation, Rajarshi Gupta, managing director of ONGC Videsh, told reporters at an industry event.
ONGC Videsh is an overseas investment arm of state-run ONGC.ONGC Videsh is open to having deals through government-to-government negotiations as well as through competitive bidding depending on Sri Lanka’s yet-to-be-announced exploration policy, Gupta said.
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Policy Matters/ Gas Pricing/ Others
Government opens 12th city gas bid round
India on Thursday offered CNG retailing licenses in seven areas mostly in the North East and J&K for bidding in the latest round, as the government looks to expand the reach of natural gas in the country.
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Petroleum and Natural Gas Regulatory Board (PNGRB) offered eight geographical areas (GAs) under the 12th city gas distribution (CGD) bidding round for retailing of CNG to automobiles and piping the fuel to household kitchens and industries.The GAs put out for bidding include Arunachal Pradesh, Meghalaya, Manipur, Nagaland, Sikkim, Jammu & Kashmir and Ladakh.
Launching the bid round, Oil Minister Hardeep Singh Puri said after this round, gas will be taken to islands which are the only uncovered areas.
Currently, there are 300 authorised GAs by PNGRB covering 88 per cent of the country’s geographical area and 98 per cent of its
https://www.dailypioneer.com/2023/business/government-opens-12th-city-gas-bid-round.html
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Panel to finalise gas distribution policy set up
The state government has constituted a state-level apex committee, under the chairmanship of Chief Secretary Sanjeev Kaushal, to finalise the City Gas Distribution Policy, 2023.
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The objective is to streamline the approval process, including infrastructure development and end-user connections. Additional Chief Secretaries of the departments of Home, Agriculture and Farmers’ Welfare, Public Works, Industry and Commerce, Environment, Forest, and Wildlife; Development and Panchayat; and Town and Country Planning; besides secretaries of the Irrigation and Water Resources Department and Urban Local Bodies Department will be the committee members.
https://www.tribuneindia.com/news/haryana/panel-to-finalise-gas-distribution-policy-set-up-548385
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India’s natural gas demand may grow 4%: International Energy Agency
India’s natural gas demand is set to increase by 4% in 2023 and is projected to grow by an average annual rate of 8% until 2026, driven primarily by the power, petrochemical, and fertilizer sectors, according to the International Energy Agency. This growth contrasts with the global trend, where gas demand is expected to slow to 1.6% annually between 2022 and 2026, compared to a 2.5% annual increase from 2017 to 2021.
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NEW DELHI: India’s natural gas demand is expected to rise by 4% in 2023 calendar year and will continue to increase at an average annual rate of about 8% till 2026, the International Energy Agency said.
The growth in demand will be primarily supported by the power, petrochemical and fertiliser sectors, the agency’s medium-term gas market forecast said. It quoted Petroleum Planning and Analysis Cell, the oil ministry’s market tracker, to note India’s primary gas supply rising by 2% in the first eight months of 2023. The expected uptick in gas consumption in India is in contrast to the projection of a slowing pace of global gas demand growth at 1.6% annually between 2022 and 2026 against average 2.5% annual increase in the period between 2017 and 2021.
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GAIL India issues swap tender for Jan delivered LNG cargo – sources
SINGAPORE (Reuters) – GAIL (India) Ltd has issued a swap tender offering one liquefied natural gas (LNG) cargo for loading in the United States in exchange for one LNG cargo for delivery to India in January, said two industry sources.
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India’s largest gas distributor is offering a cargo for loading from Cove Point on a free-on-board (FOB) basis on Jan. 14.
It is seeking one cargo for delivery to the Dabhol terminal on Jan. 1-7 on a delivered ex-ship (DES) basis.
The tender closes on Oct. 12.
(Reporting by Emily Chow; Editing by Christian Schmollinger)
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India increases domestic natural gas price for October
The Ministry of Petroleum and Natural Gas has raised the price of domestic natural gas for October, affecting consumers and potentially leading to higher CNG and PNG prices The price has risen from $8.60/mmBtu (Metric Million British Thermal Unit) to $9.20/mmBtu for the month of October.
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The Ministry of Petroleum and Natural Gas announced an increase in the price of domestic natural gas for the month of October, marking the second consecutive monthly price hike. The price has been increased to $9.20/mmBtu (Metric Million British Thermal Unit) from $8.60/mmBtu in September.
This price adjustment, part of a new formula, now links the domestic natural gas price to the Indian crude basket’s current price, rather than the previous method, which was based on the prices of four major global gas trading hubs – Henry Hub, Albany, National Balancing Point (UK), and Russian gas.
Under this new formula, the price of domestic natural gas is recalibrated every month, offering more frequent adjustments compared to the previous system, where prices changed every six months.
The transition to this new pricing mechanism comes following the recommendations of a committee formed by the government in October 2022. The change reflects an effort to align natural gas prices more closely with current market dynamics, ensuring fair and competitive pricing.
However, this increase in domestic natural gas prices is likely to have downstream effects on consumers, as gas distribution companies may pass on the higher costs, resulting in potential price hikes for Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) for end-users.
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India’s start-up ecosystem and energy sector reshaping nation’s economy: Puri
India’s Minister of Petroleum and Natural Gas, Hardeep Singh Puri, recently highlighted the transformative power of India’s dynamic entrepreneurial spirit and thriving start-up ecosystem while addressing at the 14th edition of KPMG’s Innovation and Energy Conclave. Puri shared remarkable statistics, underscoring India’s ascent in the global start-up landscape and the nation’s commitment to innovation and sustainable energy practices.
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In his address, the minister announced that India now stands as the third-largest global hub for unicorns, with over 100 collectively valued at approximately $347 billion USD. This achievement is a testament to the rapid growth of India’s start-up ecosystem, which has been nurtured under the “Start-up India” initiative launched by Prime Minister Narendra Modi.
A noteworthy facet of this initiative has been the minister’s directive to Oil and Gas Public Sector Undertakings (PSUs) to foster innovation and support start-ups in fields such as the Internet of Things (IoT), digitalization, green fuels, alternative energy, and more. The Oil and Gas PSUs have responded with remarkable commitment, creating startup funds totalling Rs. 405 crores, enabling funding for 232 start-ups, with a disbursed value of Rs. 208 crores.
Puri further showcased success stories that have emerged from this collaboration, including Bandicoot, a robotic scavenger developed by Gen Robotic Innovations, and Vasitars Private Limited, a technology-driven company funded by Indian Oil Corporation (IOCL). Vasitars specialises in in-situ composite repair solutions for transmission pipelines, using innovative Nano Filler Reinforced Polymer Composite Wrap, which promises to revolutionise pipeline repair in India.
Moreover, the minister emphasised India’s surging energy demand, highlighting its role as a driving force for future economic growth. India currently ranks as the third-largest consumer of oil, LPG, and LNG globally, and it stands as the fourth-largest refiner and automobile market worldwide. It is estimated that India will contribute 25 per cent of global energy demand growth over the next two decades.
Recognizing the importance of sustainable energy practices, the energy industry in India is now committed to decarbonization. Oil and gas PSUs have pledged to achieve net-zero emissions (scope 1 and 2) within specific timeframes: IOCL by 2046, ONGC by 2038, GAIL, BPCL, HPCL, and OIL by 2040, and EIL by 2035.
Biofuels have also seen significant progress in India, with the nation becoming the third-largest producer and user of ethanol. Ethanol blending in petrol has surged from 1.5 per cent in 2014 to nearly 11.70 per cent. India has even advanced its 20 per cent ethanol blending target to 2025-26, with approximately 5,000 fuel stations dispensing E20 fuel.
India is also leading the way in the adoption of flex-fuel vehicles. The government has unveiled the prototype of the world’s first BS-6 Stage-II Electrified Flex Fuel vehicle, emphasising the drive to encourage biofuel adoption on a large scale, moving toward an E20 blend ecosystem.
Puri highlighted the Global Biofuel Alliance (GBA), a collaborative platform formed by India, the USA, and Brazil, which aims to transform the global biofuel landscape, representing a potential $500 billion opportunity. Additionally, green hydrogen, part of India’s Green Hydrogen Mission, is a promising area for sustainable fuel growth. India aims to produce 5 million metric tons per annum (MMTPA) of green hydrogen by 2030.
The minister also encouraged stakeholders to explore investment opportunities in India’s energy industry and prioritise sustainable business practices, emphasising that these are the keys to thriving and surviving in the future. The focus on innovation and sustainability in India’s start-up ecosystem and energy sector signifies a promising future for the nation’s economic growth and transformation.
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Haryana cabinet approves paddy stubble management policy
Chandigarh: The Haryana Cabinet on Wednesday approved a paddy stubble management policy, aimed to harness the straw for sustainable energy and eliminate crop residue burning by 2027. The “Haryana Ex-Situ Management of Paddy Straw Policy 2023” is aimed to harness paddy straw for sustainable energy and eliminate crop residue burning by 2027, said an official statement after a meeting of the cabinet, which was held under the chairmanship of Chief Minister Manohar Lal Khattar.After the cabinet meeting, Khattar said that this policy marks a significant stride in promoting efficient paddy straw utilization while discouraging harmful residue burning.
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Aligned with the government’s commitment to harness energy from paddy straw and reduce its environmental impact, this comprehensive policy establishes an end-to-end ecosystem for paddy straw use, he said.On the paddy straw generated annually, it has the potential to generate electricity, biogas, bio-CNG, bio-manure, biofuels, and ethanol. Ensuring a consistent and affordable paddy straw supply is essential for project sustainability, he said.Notably, during the current season too as paddy harvesting is at its peak in Haryana, many cases of farm fires have been reported from some districts.Recently, Chief Secretary Sanjeev Kaushal issued a series of stringent directives to prevent stubble burning incidents.
Kaushal had emphasized that there would be no leniency in dealing with farm fires, urging district authorities to impose fines and take decisive action against those responsible, including penalizing officers for laxity.Meanwhile, the policy provides a framework for attracting private investment in paddy straw-based projects, encouraging farmers to engage in responsible practices, and establishing a robust linkage between farmers and industries, he added.The policy also offers a variety of incentives to promote the utilization of paddy straw in various applications including projects using paddy straw as a primary feed material qualify for incentives under the Haryana Bio-energy Policy, 2018, and its amendments.
This includes biomass-based power projects, compressed biogas plants, ethanol production, and other bio-fuel initiatives that utilize 100 per cent paddy straw as a major feed material.Farmers and relevant organizations are eligible for subsidies on agriculture implements and machinery used for the cutting, collection, baling, storage, and transportation of paddy straw to straw-based industries and plants, said the statement.Industries using paddy straw as a feed material will receive interest subsidies on term loans, akin to subsidies available for renewable energy projects, it said.An online linkage between farmers, industries, gaushalas, dairies, and end-users will be established, enabling efficient management of paddy crop residue demand and supply. District-wise mapping of paddy straw demand will be coordinated with the New and Renewable Energy Department, Haryana.
The Department of Micro, Small, and Medium Enterprises will provide financial incentives to MSMEs for adopting biofuels, benefiting businesses like brick kilns, paper industries, cardboards, and others using paddy straw, it said.Khattar said the implementation of this policy is expected to have a significant positive impact on the environment and the economy of Haryana. By reducing crop residue burning, the policy will help to improve air quality and soil health. Additionally, the policy will create new jobs and opportunities in the paddy straw sector, he said.
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LNG Use / LNG Development and Shipping
Hindustan Zinc signs deal to deploy GreenLine’s LNG-powered trucks
Hindustan Zinc Ltd has signed a deal to deploy GreenLine Mobility Solution Ltd’s LNG-powered fleet in its supply chain and transportation operations, India’s first and the only LNG-fuelled heavy trucking logistics company said on Wednesday. In a statement, GreenLine said it will invest Rs 200 crore for deploying LNG-powered trucks for Hindustan Zinc’s road logistics.
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“Hindustan Zinc, India’s largest and only integrated producer of zinc, lead and silver, has chosen GreenLine Mobility Solutions Ltd (GreenLine), a part of Essar Group and a pioneer in green mobility solutions, as its sustainable logistics partner and is set to deploy GreenLine’s LNG-powered fleet in its supply chain and transportation operations,” it said. LNG-powered vehicles significantly reduce emissions compared to diesel and align perfectly with the sustainability goals of both organizations. This initiative will not only reduce the carbon footprint associated with transportation but also set new industry standards for green logistics.
Speaking on the occasion, Arun Misra, CEO, Hindustan Zinc, said, “Sustainability is an integral part of our company’s identity and represents the core commitment of our management and employees. Deployment of LNG vehicle aligns with our approved SBTi targets to reduce 50 per cent of absolute Scope 1 and 2 GHG emissions and further reduction of 25 per cent of absolute Scope 3 GHG emissions by FY2030 from the base year FY2020.” By introducing LNG vehicles, the company is not just showcasing its commitment towards decarbonising Indian mining but also paving the way for a transport revolution, he said.
“This is yet another step towards our vision of net zero by 2050 or sooner, and we look forward to scaling this up in the coming months.” By introducing LNG vehicles, the company is not just showcasing its commitment towards decarbonising Indian mining but also paving the way for a transport revolution, he said. Anand Mimani, CEO, GreenLine, said, “Indian corporate leadership is committed to reducing their carbon footprint, and we are enabling their mission with our green logistics solutions. Clean, green mobility solutions will play a very important role in helping industries achieve their sustainability goals.” Hindustan Zinc is committed to achieving net zero emissions by 2050.
GreenLine’s LNG-powered trucks, manufactured by Blue Energy Motors, reduce toxic emissions significantly compared to diesel CO2 by up to 30 per cent, SOx by up to 100 per cent, NOx by up to 59 per cent, particulate matter by up to 91 per cent and CO by up to 70 per cent. GreenLine has collaborated with multiple organizations to create India’s first and only integrated green logistics ecosystems to make LNG trucking a reality in India, paving the way for widespread adoption of LNG fuelled long haul trucks by showcasing its immense advantages for corporates, the statement added.
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Indian Oil Corp seeks three LNG cargoes for Oct-Nov delivery – sources
Indian Oil Corp (IOC) IOC.NS has issued a tender seeking three cargoes of liquefied natural gas (LNG) to be delivered between October and November, said two industry sources.
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IOC is seeking one cargo each to be delivered to the Ennore Port, Dhamra port and Dahej port, added the sources.
The tender closes on Oct 6.
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Electric Mobility/ Hydrogen/Bio-Methane
India will soon see momentum for hydrogenpowered vehicles in transportation
NEW DELHI : There will be a stronger focus on hydrogen-powered vehicles in India soon, though pure electric technology is in great focus now in alternative fuel space, according to Dr R K Malhotra, President, Hydrogen Association of India. There are two competitive technologies for zero tailpipe emission – pure electric battery vehicles and hydrogen fuel cell vehicles. Hydrogen fuel cell vehicles, where electricity is generated from hydrogen in a device known as a fuel cell that powers the electric motor, are more energy efficient and up to twice that of internal combustion (IC) engine vehicles and have zero emissions like electric vehicles (EVs). “While EVs are in great focus currently, there will be a momentum for hydrogen fuel cell vehicles with a variety of sources for hydrogen production, quick refueling time, longer range, fast reducing the overall cost of fuel cells and lower GHG emissions in heavy-duty vehicles,” said Malhotra.
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Viability The EV route is viable for two- and three-wheelers. But in cars/taxis and city buses, both pure electric battery vehicles and HFCVs will compete. However, for long-distance inter-State buses and trucks, hydrogen IC engines and/or HFCVs will be the preferred choice. Leading commercial vehicle makers such as Tata Motors and Ashok Leyland are working on both hydrogen IC vehicles as well HFCVs. Last week, Tata Motors delivered its first hydrogen fuel cellpowered 12-metre bus to Indian Oil Corporation as part of a contract to provide 15 fuel cell electric buses. Ashok Leyland has also developed a 9-metre hydrogen fuel cell bus for NTPC and it has also developed a heavy truck powered by hydrogen IC engine technology in collaboration with Reliance Industries.
Malhotra stated that burning hydrogen in IC engine tends to be most efficient under high load. “While heavy-duty trucks that tend to spend most of their time hauling the biggest load they can pull, IC engines are usually the ideal and efficient choice,” he added. Fuel cell EVs, in contrast, are most efficient at lower loads like cars, taxis, and city buses, and vehicles that operate frequently without any load – tow trucks and concrete mixer trucks. However, fuel cell vehicles are zero-emission vehicles, while hydrogen IC engines will have Nox emissions that need exhaust treatment,” he said. Key challenges There are three major challenges associated with HFCVs now – the cost of hydrogen production from various sources, fuel cell cost and durability and cost of fuelling infrastructure including hydrogen transportation and dispensing, safety regulations, etc. are the issues that need to be addressed, said Malhotra.
It is gathered that hydrogen transportation is associated with some risks. But Malhotra said there are various options available for hydrogen distribution. “Pipeline transportation is the most cost-effective way, but existing natural gas pipelines are not suitable due to material embrittlement issues. Separation of hydrogen near the place of use is possible, but would require membrane technology in place. Dedicated pipelines for hydrogen or modifications of existing natural gas pipelines may be needed in the future. Also, the new NG lines should also be designed to be suitable for hydrogen,” he said. He also said India’s proposed plan of producing 5 MT of green hydrogen is too small a target and it should be higher. Now, the production cost for green hydrogen is estimated at ₹240-280 per kg, which is higher than grey hydrogen and blue hydrogen. “A subsidy of ₹40-50 kg for some will bring the cost closer to blue hydrogen and carbon credits may bring the cost closer to grey hydrogen,” pointed out Malhotra.
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Oil India plans green hydrogen hubs in energy-transition bid
State-run exploration and production company Oil India Ltd (OIL) is exploring the setting up of green hydrogen valleys, or hubs, as a part of its energy-transition initiative. OIL is also looking to invest in bioethanol and traditional renewable energy projects, the firm’s chairman and managing director, Ranjit Rath, said in an interview. In line with its energy-transition goals, the company aims to replace diesel use with natural gas across its group companies, like Numaligarh Refinery Ltd. Furthermore, it is exploring the potential for geothermal energy in the Himalayan region of Himachal Pradesh.
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Geothermal energy in India is in its early stages and is yet to gain traction despite the potential to add 10 gigawatts (GW) capacity. “We have committed that OIL and Numaligarh Refinery will achieve net zero by 2040. We have earmarked a budget provision of around ₹25,000 crore for the initiative, including our efforts in terms of bioethanol, that is, 2G ethanol, our efforts to reduce gas flaring by creating infrastructure for the evacuation of natural gas, and feeding it to the North-East gas grid and the national gas grid.”
Rath said the company will participate in plans to establish hydrogen valleys in India. In May, department of science and technology issued guidelines to set up hydrogen valley innovation clusters.
The department of science and technology defines a hydrogen valley as a defined geographical region where hydrogen will be serving multiple sectors and applications, including mobility, industry and energy, typically encompassing all essential aspects of a hydrogen value chain, including production to storage and transport and distribution to various end-users.
“So we have collaborated or agreed to partner with IIT Guwahati for a hydrogen valley concept in the North-East, and we have also partnered with IIT Bhubaneswar for a possible hydrogen valley. The concept is that a research organization will front-end it, and they need collaborations with industry partners. We evinced our interest for collaborations as the industry partner,” Rath said.
Numaligarh Refinery has also issued a letter of award for about 2.4 kilotonnes per annum (ktpa). In September, the company unveiled its plans to invest ₹25,000 crore in its energy-transition initiatives, with the goal of establishing a green hydrogen production capacity of approximately 20 ktpa.
The company is also present in the solar and wind energy space, having a portfolio of 14 megawatts (MW) solar power capacity and 174.1MW of wind capacity.
Going ahead, the company will add solar capacity of 640MW in Assam and 150MW in Himachal Pradesh.
Rather than opting for inorganic growth, acquiring assets in the renewable energy space, OIL prefers joint ventures with state government entities, Rath said.
“In Assam, there is a local joint venture with a state government entity. In Himachal Pradesh, it’s the same model. We strongly believe that a local entity collaboration helps us to get traction in a state, and the power purchase agreement (PPA) becomes easier. So, we would do anything always in collaboration,” he added.
India’s green energy sector, comprising solar and wind, to emerging sectors like green hydrogen, have seen greater interest over the past few years from both state-owned entities and private sector companies amid ambitious climate goals and net-zero targets.
Conventional energy firms, both in the oil and gas segment and power, are looking to diversify operations in the renewable space. Numaligarh Refinery is in the process of constructing a 2G ethanol facility using bamboo as feedstock, with the mechanical completion likely to be in place in December or by March 2024, Rath added.
In September, Rath said OIL was looking to invest around ₹8,000 crore in the 2G (second generation) ethanol segment.
Over the past few years, OIL has diversified into the alternative or renewable energy domain, especially in the wind and solar segments. The company’s entry into the wind energy domain comprises a 13.6MW wind energy power project commissioned at Ludurva, Jaisalmer, Rajasthan, in March 2012; 54MW power project at Dangri, Jaisalmer; and a 38MW project commissioned in Chandgarh, Madhya Pradesh, among others.
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INTERNATIONAL NEWS
Natural Gas / Transnational Pipelines/ Others
Qatar: Energy Transition: Qatar seeks investment in gas
Minister of State for Energy Affairs and the president and CEO of QatarEnergy, Mr. Saad Sherida Al-Kaabi, has highlighted the importance of harmonising energy security, affordability and sustainability in the quest for an equitable and realistic energy transition.
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In remarks at the ministerial Plenary Meeting, as part of Tokyo’s Green Transformation Week, Al-Kaabi expressed firm belief that, “a balanced energy transition demands the incorporation of natural gas in our present and future energy,” and that “natural gas will be indispensable, especially given its reliability as a base-load source for many nations and for many years post-2050.”
Al-Kaabi added that, “while the pivot towards renewables is commendable, they cannot be the sole solution, particularly considering their intermittent nature. That’s where natural gas, as a cleaner, cost-effective, and ready-to-use component of energy transition, becomes vital. We in the State of Qatar, recognize the gravity of climate change and consistently take actions rather than making pledges.”
In concluding his remarks, the minister stressed the importance of exploring cleaner solutions to combat climate change, stating that, “Our duty is two-fold: advancing renewable capacity while sustaining a robust baseload capability. I urge this esteemed assembly to prioritise key factors vital for a sustainable transition: bolstering energy security, bridging the energy poverty gap that impacts billions of lives, ensuring equitable energy access, amplifying investments, and decisively moving away from coal.”
https://leadership.ng/energy-transition-qatar-seeks-investment-in-gas/
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UAE : Thai oil firm PTTEP may seek extension for Myanmar gas fields
ABU DHABI, Oct 2 (Reuters) – Thai oil and gas giant PTT Exploration and Production (PTTEP) may extend its contracts for two gas fields in neighbouring Myanmar when one ends in 2028 and the other in about 20 years, its chief executive said on Monday.
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PTTEP also bid for two of three blocks on offer in Thailand and expects to produce gas from them in two years, Montri Rawanchaikul told Reuters on the sidelines of Abu Dhabi’s flagship energy industry conference ADIPEC.
Thailand is facing dwindling gas production at its Erawan field, which PTTEP took over from Chevron after the American oil major operated it for 40 years.
The field, which in 2019 produced 1,200 million standard cubic feet per day (mmscfd) of gas, at handover produced between 250-300 mmscfd following delays to the transfer. It reached about 400 mmscfd in mid-2023, and PTTEP aims for it to reach 800 mmscfd in output by April next year.
“And then we put a lot of exploration effort in Malaysia as well because we believe that we still have gas in Malaysia, and Malaysia can actually turn the gas into LNG to export” using liquefaction terminals, Rawanchaikul said.
In Myanmar, PTTEP wants to extend its contracts for its two fields to maintain energy security, as its operations there produce the equivalent of about 50% of Myanmar’s electricity consumption and 20% of Thailand’s.
“We are not looking for expansion, we’re just looking for securing the gas in need for Thailand and Myanmar,” Rawanchaikul said.
Thailand currently needs to import liquefied natural gas (LNG) for roughly 40% of its consumption, which is about 4,000 mmscfd, he said.
PTTEP’s ongoing exploration is not “enough because we still need to import LNG, so we have to continue exploring for new areas,” Rawanchaikul added. (Reporting by Yousef Saba Editing by Mark Potter)
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US: Major Trucking Fleet Finding Success with Cummins Natural Gas Engine
Knight Transportation Inc., the industry’s largest full truckload company, says it has been successfully testing Cummins’ new X15N natural gas engine in Southern California. The truck is fueled exclusively with Clean Energy Fuels Corp. ultra-low-carbon renewable natural gas (RNG) from Clean Energy’s station in Carson, Calif.
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“We value our collaboration with Cummins and are encouraged by what we have seen so far with the 15L renewable natural gas technology,” says Knight-Swift’s Dave Williams. “We will continue to work together to make sure that the capabilities and economics associated with this technology allow us to meet the wide-ranging needs of our fleet.”
Williams notes that Knight Swift’s goal is to reduce CO2 emissions generated from the KNX fleet by 50% by 2035.
“The suite of integrated Cummins technologies used on these trucks – from engine, aftertreatment and fuel storage to transmission, axles and the digital features that pull them all together in their most optimized form – demonstrates the value of our next generation of products,” says Cummins’ José Samperio.
The field testing with Knight-Swift will continue through full production of the X15N powertrain in 2024.
https://ngtnews.com/major-trucking-fleet-finding-success-with-cummins-natural-gas-engine
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Indonesia: ENI makes massive natural gas discovery offshore Indonesia
(WO) – Eni announced a significant natural gas discovery from the Geng North-1 exploration well drilled in North Ganal PSC, about 85 km offshore East Kalimantan in Indonesia. Preliminary estimates indicate a total structure discovered volume of 5 trillion cubic feet (Tcf) of natural gas in place with a content of condensate estimated up to 400 MMbbl. The acquired data will allow the company to study the options for a fast-track development.
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Geng North-1 was drilled to a depth of 5,025 m in 1,947 m water depth, and encountered a gas column about 50 m thick in a Miocene sandstone reservoir with excellent petrophysical properties that has been subject of an extensive data acquisition campaign. A well production test (DST) has been successfully performed for a full assessment of the natural gas discovery, and although limited by the test facilities, it has allowed to estimate a well capacity of up to 80-100 MMcfd and about 5-6 Mbpd of condensate.
The natural gas discovery confirms the effectiveness of Eni’s strategy aimed at creating value through its deep knowledge of geological plays and the application of advanced geophysical technologies. The ongoing exploration campaign, along with the recent acquisitions, is in line with Eni’s energy transition strategy to progressively shift its portfolio mix towards gas and LNG, targeting 60% in 2030, and to increase its LNG equity portfolio. Indonesia, and South-East Asia in general, play a relevant role in this strategy.
Thanks to its location and significant size, the natural gas discovery has the potential to contribute substantially to the creation of a new production hub, in the Northern part of the Kutei basin, to be connected to the Bontang LNG facilities on the coast of East Kalimantan, further exploiting its available ullage capacity. It is estimated that, in addition to Geng North, more than 5 Tcf of natural gas in place are present in undeveloped discoveries within the area of interest, while a significant multi-Tcf exploration potential is under maturation through the ongoing studies.
The Geng North natural gas discovery is adjacent to the Indonesia Deepwater Development (IDD) area that includes several stranded discoveries located within the Rapak and Ganal PSC blocks, for which Eni recently announced the acquisition of Chevron interests, increasing its participating interest and acquiring the operatorship.
Significant synergies between the two areas are envisaged in terms of gas development options. The acquisition also provides the opportunity to fast track the development of the Gendalo and Gandang gas project (around 2 Tcf of gas reserves) through Eni’s operated Jangkrik facilities.
The Geng North natural gas discovery comes shortly after the announcement of Eni’s agreement to acquire Neptune Energy, whose completion will allow to further strengthen Eni’s position in the North Ganal Block.
https://www.worldoil.com/news/2023/10/2/eni-makes-massive-natural-gas-discovery-offshore-indonesia/
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US: Natural gas pipeline blows near Jessieville
HOT SPRINGS — Residents in the Jessieville area were evacuated early Wednesday evening after a natural gas transmission line ruptured, forcing the closure of Arkansas 298 and sending a plume of flame 200 to 300 feet in the air.
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Garland County Department of Emergency Management Director Bo Robertson said the break was off West Main Haul Road, near Arkansas 298. No injuries had been reported at press time. Robertson said the evacuation area extends up to 1 mile from the site of the rupture.
“We went knocking on houses, telling people to leave,” Robertson said from the scene. “It’s bad enough that common sense took over, and a lot of them left on their accord.”
According to the National Pipeline Mapping System, Enable Gas Transmission LLC operates the line.
According to Garland County sheriff Sgt. John Schroeder, around 4:45 p.m., the Garland county communication center received a call of a pipeline explosion in about the 1400 block of Arkansas 298.
“Currently, there are no injuries to report and evacuations have taken place from approximately the thousand block of Highway 298 to Harding Road on Highway 298,” he said.
Evacuees were being directed to go to the Jessieville High School safe room for a place to stay until the fire was contained.
Arkansas 298 was shut down to through travel, as there was an active plume of fire, 200 to 300 feet high, contained to the gas pipeline. No structures are involved although one is close to the explosion area, but is currently being protected by Jessieville Fire Department.
Schroeder noted Enable Gas personnel were on scene working to shut the line down and as of shortly after 6:30 p.m. had the south end closed and “are trying to get the north end closed.”
Agencies who responded to the incident included the Jessieville, Fountain Lake, Piney and Buckville fire departments, the Garland County sheriff’s office, both patrol and investigators, Arkansas State Police, Garland County Office of Emergency Management, LifeNet, Arkansas State Parks, the Arkansas Forestry Commission and a Mountain Pine School Resource Officer.
https://www.nwaonline.com/news/2023/oct/05/natural-gas-pipeline-blows-near-jessieville/
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Natural Gas / LNG Utilization
Measuring the LNG process with confidence
LNG is a highly valuable and widely traded commodity, making measurement and control throughout the LNG supply chain critical to the success of the industry. At every stage of the LNG process – from pretreatment to transportation – accurate and reliable measurements are essential for optimising production, maintaining safety, and ensuring profitability.
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The first step in the liquefaction process chain, the pretreatment and dehydration stage, is critical for removing water and other contaminants from the feed gas. Excess moisture can cause ice formation and blockages in the cryogenic section of the plant. Moisture sensors are used to monitor the water content of the feed gas at the outlet of the desiccant beds and at the outlet header, informing operators that dryers are working properly. Sensors that can operate at these process pressures and that provide process dew points are ideal at this stage of the LNG process. Flow meters are also critical at this stage for measuring feed gas before and after the dryer processes.
The liquefaction stage is where the dehydrated feed gas is converted into LNG. This is done by cooling the gas to 111 Kelvin. The energy-intensive process requires accurate and reliable flow measurement to ensure that the LNG produced is fully liquefied and of the highest quality. Flow meters are used to monitor the flow rate of the feed gas and the LNG, so they must be able to operate in cryogenic conditions and compensate for thermal retraction. A critical factor at this stage is the monitoring of the boil-off gas (BOG) generated during the liquefaction process.
Fortunately, sensors using advanced technology enable operators to optimise the process and minimize safety and environmental risks.
During loading and offloading, it is necessary to transfer the LNG between storage tanks and transport vessels, often through pipelines. Accurate and reliable flow measurement is crucial to ensure proper custody transfer, optimise the transfer process, and minimise the risk of accidents and spills.
To make sure the LNG transfer is done safely and efficiently, operators have some essential considerations:
Accurately accounting for every cubic metre of LNG and gas to ensure reliable energy balance and data reconciliation for custody transfer purposes.
Managing changes in flow rates and conditions, which can make accurate flow measurement challenging.
Optimising the transfer process to minimise the risk of accidents and spills.
Ensuring accurate and reliable measurement to maintain safe transfer of the LNG from one location to another.
Adhering to safety and environmental regulations to protect workers, vessels, and the environment.
Accounting for the energy being transferred to accurately bill for LNG, including monitoring the gas density, calorific value, and deducting the energy returned through the BOG.
Liquefying natural gas is a convenient way to transport it over long distances since it represents 600 times less volume than gas. However, once the LNG arrives at its destination, it needs to be converted back into a gaseous form, making it suitable for distribution and consumption.
The complex process involves heating LNG above its boiling point of 111 Kelvin at atmospheric pressure. During this process, it is imperative to maintain strict control over temperature and pressure to ensure efficiency and safety in handling the volatile substance. Technologies, including flow meters and process analyzers, are employed to monitor and optimise the regasification procedure closely, further enhancing its reliability and effectiveness in meeting energy demands.
https://www.lngindustry.com/special-reports/02102023/measuring-the-lng-process-with-confidence/
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Germany: Uniper CEO Says German Companies May Still Source LNG from Russia, Despite Policy Shift
Michael Lewis, the chief executive officer of the German energy company Uniper, has not ruled out the potential that Germany may continue to get liquefied natural gas (LNG) from Russia despite the announced policy of not purchasing it from Russia. This is because Michael Lewis has not ruled out the chance that Germany may continue to receive LNG from other countries.
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Lewis noted in an interview with the Rheinische Post newspaper that Russia is still selling LNG on the global market and that players in wholesale trading, including Uniper, do not always know the origin of the gas they purchase. After the end of August 2022, Uniper could no longer purchase gas from Russia. As a direct consequence, the organisation declared a loss of €19.1 billion by the international rules for financial reporting for the year 2022.
Given that Germany’s underground gas storage facilities (UGS) are currently at a fill rate of 95%, the head of the conglomerate believes that the country is better prepared for gas delivery this winter than last year. Nevertheless, he issued a caution about the current dangers. He observed that this winter would be challenging if it gets particularly cold and/or if there are problems with LNG purchases. According to Lewis’s analysis, if China’s economy continues to grow and its need for LNG increases, there may be a scarcity in Europe, or it may become very costly. The gas market remains volatile, and even modest disruptions can lead to price spikes, he pointed out, adding that he does not anticipate price hikes similar to those that were witnessed in the 2022/2023 season. “The gas market remains volatile,” Earlier, the German Ministry of Economy voiced opposition to Germany purchasing gas from Russia, including in the form of LNG. However, the department recognised that it is nearly impossible to determine whether or not it enters the European gas system because individual enterprises rather than the state make purchases.
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Pakistan: CCP Allows UAE-Based Company to Acquire Two Local LNG Firms
The Competition Commission of Pakistan (CCP) has granted approval to a UAE-based company for the acquisition of two entities engaged in the establishment and operation of an LNG terminal, as well as the import, storage, and distribution of Liquefied Natural Gas (LNG) and Re-gasified Liquefied Natural Gas (RLNG) in Pakistan.
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The approval will pave the way for Foreign Direct Investment (FDI) and the potential mitigation of Pakistan’s gas shortage.
CCP has processed the two mergers, approving the 100 percent acquisition of Tabeer Energy (Private) Limited and Tabeer Energy Marketing (Private) Limited (TEMPL) by the UAE-based Bison Energy FZCO.
As a result of the merger transactions, Bison Energy FZCO has acquired 100% shareholding of Tabeer Energy (Private) Limited and Tabeer Energy Marketing (Private) Limited from Diamond Gas International Japan Co. Limited.
The transaction will result in foreign direct investment in Pakistan and help alleviate the gas shortage.
It is noteworthy to mention here that CCP completed the Phase-1 competition assessments, conducted in accordance with Section 11 of the Competition Act, 2010. As the proposed transactions did not raise any competition concerns, the mergers were approved.
https://propakistani.pk/2023/10/01/ccp-allows-uae-based-company-to-acquire-two-local-lng-firms/
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Bermuda : Golar LNG: Pioneering Innovation in Africa’s LNG Sector
Golar LNG, a prominent marine LNG operator, is making significant strides in Africa’s burgeoning LNG industry. With over 620 trillion cubic feet of natural gas resources in Africa, the potential for economic growth through Liquefied Natural Gas (LNG) is immense. Golar LNG’s participation as a Bronze Sponsor in the upcoming African Energy Week (AEW) 2023 conference and exhibition reflects its commitment to collaboration and its ambition to eradicate energy poverty by leveraging sustainable energy solutions.
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In recent decades, Africa has witnessed remarkable growth in its LNG industry, driven by the continent’s abundant natural gas resources. Many African nations recognize the importance of investing in LNG exploration, production, and export as a fundamental component of their energy strategies. Golar LNG has been at the forefront of innovation in the LNG sector, particularly in the development and operation of Floating LNG (FLNG) facilities.
Golar LNG’s contribution to Africa’s LNG journey is significant. The company currently owns and operates the Hilli FLNG facility in Cameroon, which has played a crucial role in liquefying natural gas for export. Additionally, Golar LNG is in the final stages of converting the Gimi FLNG facility in Singapore, with a capacity of 2.5 million metric tons per annum (mtpa). This vessel will soon serve bp’s Greater Tortue Ahmeyim project offshore Mauritania and Senegal under a long-term charter agreement, strengthening Golar’s presence in the region.
Furthermore, Golar LNG has expanded its reach through strategic collaborations. The company has signed a deal with the Nigerian National Petroleum Corporation for the joint development of gas fields using FLNG producers, building on its existing agreement with the company. This partnership has the potential to make full use of the existing FLNG Hilli after its current contract concludes in mid-2026 or introduce a new MKII FLNG with an annual capacity of 3.5 mtpa, offering flexible and innovative solutions to gas development challenges.
Golar LNG is also actively pursuing the acquisition and conversion of the Fuji LNG carrier, a vessel with a capacity of 148,000 cubic meters, into a FLNG producer. This transformative step will expand Golar’s LNG production capabilities, with an estimated cost of approximately $2 billion, underscoring the company’s commitment to innovation and sustainable LNG production.
Additionally, Golar LNG places great emphasis on sustainability and considers LNG as a companion fuel to renewables. The company prioritizes flexible marinized infrastructure for leveraging smaller gas resources and promoting carbon-free fuels like hydrogen and ammonia. Golar LNG’s sustainability approach is outlined in its 2020 Environmental, Social, and Governance (ESG) report, which sets ambitious yet attainable goals for 2030. The company is dedicated to transparent ESG reporting and provides annual updates on key ESG issues as part of its commitment to responsible corporate practices.
NJ Ayuk, Executive Chairman of the African Energy Chamber (AEC), praises Golar LNG’s pioneering efforts in advancing Africa’s LNG industry through innovation and bold solutions. These initiatives have unlocked Africa’s vast natural gas resources, promoting transformative change and driving progress and prosperity across the continent.
Golar LNG’s sponsorship at AEW 2023 highlights the company’s dedication to advancing Africa’s energy sector. With its extensive experience in the LNG industry, Golar LNG aims to be a catalyst for change and growth, ensuring that LNG remains a cornerstone of Africa’s evolving energy mix.
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Mexico: NFE expects to launch Altamira FLNG project by early November
Wes Edens-led NFE sent its liquefaction rig, Pioneer II, on September 26 to Mexico’s Altamira to start serving the company’s first FLNG project. The jackup rig set sail under tow from the Kiewit Offshore Services shipyard in Ingleside, near Corpus Christi, Texas, and was expected to arrive off Altamira during the weekend.
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“This rig will soon join the other two FLNG 1 rigs in Altamira for final installation and commissioning, with target COD in late October or early November,” NFE said in a statement issued on Friday.
NFE did not provide any additional information.
Prior to this, NFE’s utilities and accommodation rig, Pioneer III, arrived off Altamira last month.
The $1.3 billion FLNG project consists of three rigs, including the liquefaction platform and also the gas treatment platform, and they are named Pioneer I, II, and III.
Altamira LNG plans
Chris Guinta, NFE’s finance chief said during the company’s second-quarter earnings call last month that the company had expected to introduce first gas in September and sell the first LNG cargo in October.
Guinta said at the time that NFE had planned to install Pioneer I around August 23 and Pioneer II around August 28.
He also said that the 160,000-cbm Penguin FSU, which will serve the project as a floating storage unit, was on its way to Altamira.
Penguin’s AIS data showed early on Monday that the vessel was anchored at Jamaica’s Portland Bight, not far from the 170,000-cbm Hoegh Gallant FSRU which serves NFE’s offshore Old Harbour facility.
In early June, the US LNG firm received an export permit for its Altamira Fast LNG facility from Mexico’s Ministry of Energy (SENER).
Under the permit, NFE is authorized to export up to 7.8 million metric tons through April, 2028, providing ample capacity to support the operations of the 1.4 million tons per annum Fast LNG facility through the permitted period, it said.
Last year, NFE signed separate deals with CFE and Pemex aimed at installing LNG production units off Mexico.
Under the deal with CFE, the firm agreed to create a new FLNG hub off the coast of Altamira, Tamaulipas.
Earlier this year, NFE also signed a letter of intent with CFE to install units 2 and 3 onshore at the existing Altamira terminal.
The LNG import terminal built in 2006 is currently underutilized and transforming it into an export facility follows the legacy of Sabine Pass nearly 10 years ago, the firm said.
Puerto Rico power plant
NFE also announced on Friday that it has placed into service its second US government sponsored power plant in Puerto Rico on Wednesday, September 27th.
This facility in San Juan has a capacity of 200+ MW of power generation and operates under a 2-year contract, similar to the 150 MW facility in Palo Seco that entered service in June under the same program.
Both power installations operate under multi-year contracts with the US government, which pays for fuel, logistics, and all power infrastructure, it said.
“NFE is at an inflection point as our core infrastructure projects enter service. COD of San Juan power marks a key milestone,” Edens said in the statement.
“The combination of the San Juan plant and the Palo Seco plant contribute significantly to downstream volumes and terminal earnings beginning in size in the fourth quarter of 2023,” he said.
“Our projects are entering service after years of buildout, and we now look forward to cash generation, deleveraging, and organic growth opportunities,” Edens added.
https://lngprime.com/americas/nfe-expects-to-launch-altamira-flng-project-by-early-november/93492/
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El Salvador: Feat of Engineering Provides Floating Power Solution
An energy project in El Salvador has been called transformative for the Central American country, which has long relied on hydro and geothermal resources to support its power generation. Government officials are pushing for the country to diversify its energy mix and recognizing that foreign investment is needed to support new electricity-producing projects, both renewable and thermal. It’s against that backdrop that Invenergy, a global energy project developer, joined with Wärtsilä and others to design and build a power generation project unlike any other in the region.
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Energía del Pacífico, or EDP—located in the port of Acajutla—is a 380-MW power plant fueled by natural gas, with the fuel supplied via pipeline from an LNG floating storage and regasification unit (FSRU) on El Salvador’s Pacific Coast. The project includes a 44-kilometer (27-mile) 230-kV double-circuit transmission line and associated substations, running from the Acajutla facility to Ahuachapán, a city of more than 110,000 people in western El Salvador. The transmission line also connects the power plant to the Central American Electrical Interconnection System (SIEPAC), an interconnection of the power grids of six Central American countries.
“One of the biggest known challenges at the outset of the project was the fact that there had never before been a gas-fired power plant served by LNG imports in El Salvador, so we needed to create the means of importing and storing LNG,” said Jose Sarmiento, vice president and country manager for Invenergy, EDP’s primary developer, in El Salvador. “Given the complexity and sheer size and scope of this project, we experienced many challenges including permitting hurdles to get the natural gas transported to the power plant.” That included, as Sarmiento noted, “a permanently moored floating storage and regasification unit to regasify imported LNG,” along with “a pipeline bored through volcanic rock.”
The EDP project represents an investment of about $1.15 billion, which is the single largest foreign direct investment in the country’s history. Construction began in early 2020, and the power plant entered commercial operation in May 2022. Sarmiento said, “EDP’s electric generation represents the largest and most efficient thermal plant in the country, providing baseload balance to support the addition of intermittent renewable power resources.”
Construction and Permitting Challenges
Sarmiento told POWER, “A significant permitting challenge was the absence of laws to govern the FSRU installation and the shipments via pipeline to bring the gas to the power plant.” Sarmiento said Invenergy worked with the government of El Salvador “to create and implement the region’s first regulations for offshore gas storage and natural gas transportation to shore. Establishing this critical regulatory framework lays the foundation for future developments that will improve environmental stewardship.”
1. Permanently moored at El Salvador’s Port of Acajutla, the BW Tatiana is the first floating storage and regasification unit (FSRU) on the Pacific Coast of the Americas. Liquefied natural gas (LNG) delivered to the FSRU is converted to natural gas that is transported via a 1.8-kilometer subsea pipeline to the onshore power plant. Courtesy: Invenergy
Sarmiento said another obstacle “was securing a safe and environmentally responsible pipeline route to the power plant. Connecting the FSRU [Figure 1] to shore posed a challenge because El Salvador’s Pacific cliffs are environmentally protected. The location of the onshore power plant could have entailed the pipeline delivering gas from the FSRU to the power station running over a cliff where the line meets the shore. Because of the negative visual impact this route would have introduced, the decision was made to bore through the volcanic rock of the cliff. Traditional methods posed risks, so the team repurposed a micro-tunneling technique from the mining sector and adapted it to drill through solid volcanic rock to connect the FSRU to the power station.”
Sarmiento said, “The offshore LNG terminal is an ongoing energy transition enabler for the country, providing the opportunity to develop additional infrastructure to supply gas to other regional consumers.”
Wärtsilä Engines
The EDP combined cycle power plant features 19 Wärtsilä 18V50SG natural gas–powered reciprocating engines, each rated at 18.9 MW, and one 28-MW steam turbine generator powered by steam produced from the heat recovered from each engine. It is at present the largest, and considered the most efficient, thermal power plant in El Salvador.
The electricity produced at EDP has displaced power generation from burning heavy fuel oil, which is important to the country’s environmental goals. Invenergy officials said the use of LNG at the power plant has reduced emissions of carbon dioxide by 600,000 tons annually compared to burning fuel oil.
The power plant also has reduced El Salvador’s dependency on energy imports from neighboring countries. Officials said the country’s electricity imports from the Regional Electricity Market—which includes El Salvador, Guatemala, Honduras, Nicaragua, Costa Rica, and Panama—have dropped by 70%.
EDP’s 380-MW generation capacity represents about 15% of El Salvador’s total installed capacity of 2,479 MW. Invenergy officials said the plant can cover up to 38% of El Salvador’s peak electricity demand. The plant supplied electricity to cover 20% of the country’s energy demand from May to December of last year.
“The biggest challenge the project faced was unanticipated: COVID-19,” said Sarmiento. “Our ability to complete the project despite myriad roadblocks due to the worst global pandemic in modern history is a testament to Invenergy’s experience and ingenuity in global power project development and the assistance of our local partners.” Sarmiento said factors associated with COVID-19 included supply chain disruptions, as well as “a complete country closure for a period of time and other travel restrictions, as well as global markets’ volatility and economic uncertainty driven by the Russian invasion of Ukraine.”
The contractors and suppliers at EDP include Wärtsilä, which supported design and construction of the power plant. Other companies involved include Elecnor (construction of transmission and substations); Boskalis (construction of marine infrastructure, including pipeline, tunnel, mooring, and riser system installation); BWO (design, supply of mooring and riser system); BW LNG (co-owner with Invenergy of the FSRU, the first to be installed in El Salvador); SAAM Towage (provided tugboats for LNG tankers); and Shell (LNG supplier). Local El Salvador-based partners crucial to the success of the project included Grupo Calleja, VC Energy de Centroamerica, and Quantum Energy.
Community Benefits
The plant is committed to doing more than just supplying electricity for the country and the region, with a 20-year contract to develop infrastructure works and invest in social projects in the surrounding area. Sarmiento said those critical infrastructure projects include:
■ The construction of two local roadways and paving/lighting of several others in Acajutla.
■ Construction of a new sewage system and wastewater treatment plant in Cantón Metalío.
■ Electrification of three local villages: Caserío Los Abetos, canton El Suncita; Caserío Miramar, Metalío canton; and Caserío El Porvenir.
Local schools also have benefited, through remodeling and renovation projects. EDP supported area businesses, in part through building an online platform called “Pa’Servirle,” or “To Serve You,” to help local businesses impacted by the pandemic sell goods and services online. EDP also collaborated with five Acajutla fishing cooperatives, aiding 150 members with boats, equipment, and infrastructure enhancements. The program also trained the groups in cooperativism—or how to work together toward economic and social goals—along with marine product handling, and administrative procedures.
The project also supported construction of Casa Comunal IVU, a new community center and sports complex in Colonia IVU. Sarmiento said that by the end of 2023, the ongoing funding of social projects is expected to reach $3.8 million.
EDP made a commitment to biodiversity in the region, supporting creation of 150 artificial reefs, and two turtle incubation nurseries. It supported a community education campaign on habitat protection of black-eyed frogs, a once-endangered species native to the region.
“This novel project with extensive scope, also required a wide-ranging local outreach,” said Sarmiento. “We conducted comprehensive community engagement through multiple channels to keep our neighbors up to speed with aspects of the project, including town halls with mayors and other local government officials and additional information sessions with communities, with fishing cooperatives and schools. EDP’s continued success in community relations relies on maintaining open, broad and inclusive dialogues within these communities.”
Said Sarmiento: “This is a complex, LNG-to-power project that is truly transformative for El Salvador and exemplifies our global leadership in modern power development. All in all, EDP is an engineering feat and a model for public-private partnership. The creative project represents a blueprint for developing nations struggling to develop their economies and meet energy-transition goals at the same time.”
https://www.powermag.com/feat-of-engineering-provides-floating-power-solution/
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UAE: Adnoc Gas awards $615 million contract for Habshan CCUS project
Adnoc’s gas and LNG unit, Adnoc Gas, has awarded a $615 million contract to Petrofac Emirates for the Habshan carbon capture, utilization, and storage (CCUS) project.
Under the engineering, procurement and construction (EPC) contract, Petrofac Emirates will build carbon capture units, pipeline infrastructure, and a network of wells for carbon dioxide (CO2) injection at the Habshan gas processing plant, as part of Adnoc’s accelerated decarbonization plan, according to a statement by Adnoc Gas.
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UAE’s Adnoc Gas said the Habshan CCUS project is one of the largest carbon capture projects in the Middle East and North Africa (MENA) region. The project will have the capacity to capture and permanently store 1.5 million tons per annum (mtpa) of CO2 within geological structures deep underground. Moreover, CO2 will be injected and placed for permanent storage in Adnoc Onshore’s Bab Far North Field, located southwest of Abu Dhabi. Adnoc Gas will be responsible for building, operating, and maintaining the project on behalf of its parent Adnoc.
Boosting carbon capture capacity
Building on Adnoc’s landmark carbon capture facility, Al Reyadah, which has the capacity to capture up to 800,000 tons of CO2 per year, the Habshan CCUS project could support enhanced oil recovery of low carbon-intensity barrels and the production of low-carbon feedstocks such as hydrogen, to help customers decarbonize their operations, the firm said.
The Habshan CCUS project will triple Adnoc’s carbon capture capacity to 2.3 mtpa, equivalent to removing over 500,000 gasoline-powered cars from the road per year, Adnoc Gas said.
The firm expects to launch the Habshan CCUS project in 2026.
Adnoc launched Adnoc Gas on January 1 as it looks to further expand its international presence.
This year, Adnoc Gas signed LNG supply deals with France’s TotalEnergies, India’s top state oil refiner Indian Oil, Japan Petroleum Exploration (Japex), and the most recent deal with PetroChina.
Adnoc owns a 70 percent stake in Adnoc LNG, that currently produces about 6 mtpa of LNG from its facilities on Das Island.
Besides this terminal, Adnoc is also working on the second LNG export plant in Al Ruwais.
According to Adnoc, the LNG terminal would have two 4.8 mtpa LNG trains, boosting the company’s LNG production capacity by 9.6 Mtpa, as it looks to respond to the growing global demand for natural gas.
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Global LNG Development
Canada: Seaspan and AES Sign MoU to Collaborate on LNG Bunkering Business Development
October 7, 2023 [Marine Insight]- In a significant advance for the regional Liquefied Natural Gas (LNG) industry, Seaspan and AES, sign a Memorandum of Understanding (MoU) that contributes to the development of sustainable energy solutions for the maritime industry.
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In the framework of the 3rd International LNG Global Forum, held in Cartagena, Colombia, Seaspan has signed a Memorandum of Understanding (MoU) with global energy company, AES.
This collaboration is mainly aimed at providing Liquefied Natural Gas (LNG) bunkering services to shipping vessels crossing the Panama Canal, as well as exploring options to provide this and similar services in regional markets within the area of influence of the Costa Norte LNG terminal, owned by AES, located in Colón, Panama.
Currently, AES is developing a project to expand the aforementioned terminal that contemplates a new LNG refueling infrastructure in methane tankers (Ship Loading Facility) that together with the arrival of a small-scale methane tanker to Panama, provided by Seaspan ULC, destined for final deliveries of LNG, will allow the commercialization of LNG as marine fuel from the second half of 2024, and eventually the delivery of this type of hydrocarbon, more environmentally friendly, in other alternative regional markets.
The Ship Loading Facility is scheduled to begin operations in November of this year as an integral part of the services of the Costa Norte LNG terminal in the province of Colon, Panama. This infrastructure promises to change the landscape of the regional energy sector, enabling the terminal to offer services for the LNG industry.
Cool down: cooling service for LNG carriers reloading or resuming marine operation after a period of maintenance downtime.
Temporary storage and reloading: with the capacity of the Costa Norte storage tank (180,000 m³), different market operators will be able to store their LNG temporarily and withdraw it on demand.
Refueling for bunkering and regional distribution: with a model that replicates the operation of the world’s main terminals, the Costa Norte terminal will enable the delivery of stored LNG to be used both for LNG supply, as marine fuel for the growing fleet transiting the Panama Canal, and for emerging markets in neighboring countries.
“Seaspan is proud to collaborate with AES to provide LNG bunkering in the Panama region and lead the way in providing energy transformation opportunities in the global marine sector. Together we will provide low-carbon solutions for ship owners who want to decarbonize their operations and transition to cleaner marine fuels,” said Ian McIver, president of Seaspan Energy.
“We are on the doorstep of a new era in sustainable energy. The collaboration with our shipowner partner and the innovations at our Costa Norte Terminal position us as leaders in driving sustainable, efficient and affordable solutions to meet the growing demands of the market,” said Miguel Bolinaga, president of AES in Panama.
These achievements mark the beginning of a revolutionary transformation in the sustainable energy landscape that benefits both Panama and the region.
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China: Beihai’s first 210,000-ton LNG dual-fuel bulk carrier completes sea trial
A 210,000-ton LNG dual-fuel bulk carrier built by Beihai Shipbuilding, a subsidiary of China State Shipbuilding Corporation (CSSC), has completed sea testing. CSSC said that during the trial, the shipowner, ship inspector, shipyard and service providers worked together, made arrangements, coordinated the organization and completed a number of gas test tests, including main engine oil and gas conversion, main engine gas cutoff and gas mode.
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The ship, the first of a series of three vessels built by Beihai for South Korea’s H-Line, is equipped with two 3000 m3 LNG tanks, dual-fuel main engines, generators and high- and low-pressure dual-fuel systems.
The ship’s main indicators and its performance meet the specification requirements, the company said.
To note, the fuel trial and LNG gas filling were completed on October 8, three months after the carrier was launched, and on the same day, the company’s second 210,000-ton bulk carrier built for CITIC Financial Leasing and Xiehai Group went for testing.
In regard to Beihai’s other endeavours, at the beginning of September 2023, the shipbuilder, in collaboration with China State Shipbuilding Trading signed a contract for the construction of two 325,000 dwt ore carriers with Singapore-based Winning International Group, and in August 2023, the company emerged as the shipbuilder of Euronav’s very large crude carrier (VLCC) newbuild.
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Qatar: HD Hyundai Effectively Lands 5-trillion-won Order for 17 LNG Carriers from Qatar
HD Hyundai Heavy Industries (HHI) is expected to be the first company to win a second batch of liquefied natural gas (LNG) carrier orders for its LNG project from Qatar Energy, the state-run energy company of Qatar, beating out Chinese shipbuilders. The contract alone is worth US$3.9 billion for 17 ships. .Qatar Energy announced that it had signed a memorandum of agreement (MOA) with HD HHI to build 17 LNG carriers. Now, inking a formal contract is the only step left. “The contract with HD HHI for 17 vessels is the start of the second batch of our order,” Qatar Energy said.
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With around 40 LNG carriers worth 12 trillion won (US$8.8 billion) expected to be ordered, the second Qatar project is one of the most sought-after orders in the world shipbuilding industry in the second half of 2023. This is because LNG carriers have been setting new records for highest ship price, with the price of a 174,000-cubic-meter ship recently rising to around 340 billion won.
When the first batch of the orders was placed, Korean shipbuilders Hanwha Ocean (19 ships), Samsung Heavy Industries (18 ships), and HD Korea Shipbuilding & Marine Engineering (17 ships) landed orders for 54 out of a total of 65 ships. The three Korean shipbuilders plan to take a big chunk of the second batch with their technological prowess. However, some experts point out that China’s recent signing of a long-term LNG purchase agreement with Qatar may be a variable factor.
Meanwhile, as international oil prices continue to fly high due to the extension of oil production cuts by Saudi Arabia and Russia, offshore plants that drill for oil and gas buried in the seabed and crude carriers that transport them are drawing much attraction from the market.
The total amount of the world’s investment in offshore plants linked to oil and gas and offshore wind power generation totaled US$89.5 billion through August this year, according to Clarkson Research, a U.K.-based shipbuilding and shipping market analysis organization on Oct. 3. Including this, final investment decisions (FIDs) expected by the end of this year total US$107.5 billion, the largest amount of investment in offshore projects in the past decade.
In addition to offshore plant investment, orders for crude oil carriers are also expected to hit a 10-year high.
Orders for Suezmax crude carriers stood at 44 units (1.34 million standardized gross tons (CGT)) in 2014 but fell to 18 units (550,000 CGT) in 2018 during a shipbuilding market downturn, and hit 13 units (390,000 CGT) and 11 units (330,000 CGT) in 2021 and 2022, respectively.
This year, however, orders for 41 vessels (1.24 million CGT) have been placed through the end of August. If the trend holds, this year is expected to see the highest number of crude carrier contracts signed in a decade.
The crude carrier ordering boom is being fueled by ship owners in shipping powerhouse Greece, with the bulk of the volume concentrated on select shipyards in China and Japan. While the Korean shipbuilding industry has focused on high-value-added vessels such as LNG carriers, its rivals in China and Japan are seemingly expanding their presence in the niche market of crude carriers.
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Columbia: Nisga’a Nation Seeks Economic Reconciliation through Indigenous-led LNG Project
Following National Truth and Reconciliation Day, the Nisga’a Nation in British Columbia is striving to achieve ‘economic reconciliation’ through the development of an Indigenous-led liquified natural gas (LNG) project. The Nisga’a people are optimistic that this initiative will pave the way for future economic opportunities.
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Economic reconciliation aims to address historical injustices and socioeconomic disparities faced by Indigenous communities. It seeks to promote sustainable economic development that respects and incorporates Indigenous rights, culture, and self-determination.
The Nisga’a Nation’s proposed LNG project aligns with their vision for economic empowerment. By venturing into the energy sector, they aim to secure financial independence and generate employment opportunities for their community members. Additionally, the project would contribute to the larger provincial and national economies.
The Nisga’a Nation’s pursuit of economic reconciliation through the LNG project reflects a broader movement across Canada to promote Indigenous self-sufficiency and economic development. Many Indigenous communities are pursuing various industries, such as renewable energy, tourism, and natural resource projects, to create self-reliance and overcome historical disadvantages.
By taking ownership and control of such projects, Indigenous communities like the Nisga’a Nation can assert their rights and regain control over their economic destiny. This serves as a powerful step towards reconciliation, as it enables economic independence and self-governance while preserving Indigenous culture and traditions.
It is important to highlight that the Nisga’a Nation’s plans for the LNG project involve thorough environmental assessments and consultation with relevant stakeholders to ensure the project’s sustainability and adherence to Indigenous values and environmental stewardship.
Overall, the Nisga’a Nation’s efforts to achieve economic reconciliation through their Indigenous-led LNG project exemplify their commitment to long-term economic prosperity and self-determination, while simultaneously contributing to the broader goals of reconciliation in Canada.
Sources:
– National Truth and Reconciliation Day
– Definition of economic reconciliation and Indigenous-led liquefied natural gas project (LNG)
– Neetu Garcha’s report on indigenous-led LNG project
– Indigenous self-sufficiency and economic development trends in Canada
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Jamaica: Shell puts large LNG bunkering newbuild to work in Caribbean
LNG giant Shell has completed the first liquefied natural gas bunkering operation in the Caribbean with the 18,000-cbm bunkering vessel, New Frontier 2. In July, Shell and South Korea’s Pan Ocean named this LNG bunkering vessel. South Korea’s Hyundai Mipo built the ship. Shell’s unit Shell NA LNG previously entered into a six-year charter deal worth about $55 million for the newbuild and Shell said it will deploy the ship in the Americas.
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According to a social media post on Monday by Shell’s head of downstream LNG, Tahir Faruqui, the firm has put New Frontier 2 to work in the Caribbean with the completion of its first operation in Jamaica.
The vessel bunkered the oil and chemical tanker Solar Catie during the operation.
Shell joined forces with the Maritime Authority of Jamaica and the Port Authority of Jamaica for this bunkering operation.
Faruqui said this operation also “signified an important milestone for us in Jamaica where we conducted our first ship-to-ship LNG bunkering in Portland Bight.”
Eerlier this year, Shell and Israel’s shipping firm Zim completed the first LNG bunkering operation in Jamaica as part of their 10-year bunkering deal.
This LNG bunkering vessel is Shell’s third ship deployed in the Americas and “is part of our expansive lineup of 12 bunker vessels,” Faruqui added.
Shell has been lately quite busy with its LNG bunkering business.
Last month, the firm started delivering LNG to Hapag-Lloyd’s giant LNG-powered containerships in the Dutch port of Rotterdam under a deal signed earlier this year.
In addition, Shell and its partners recently completed what they say is the first-ever cruise ship LNG bunkering in the port of Gibraltar.
Shell recently also added two more LNG bunkering locations in Europe, Flushing, and Antwerp.
With this, the company expanded its network to 19 locations across 12 countries.
https://lngprime.com/americas/shell-puts-large-lng-bunkering-newbuild-to-work-in-caribbean/93620/
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Vietnam: Vietnam Emerges as a Major Player in Global LNG Landscape
In my opinion, Vietnam is on the cusp of becoming a major player in the global Liquefied Natural Gas (LNG) market, with significant ramifications for natural gas prices across short, mid, and long-term horizons. This belief stems from Vietnam’s recently approved eighth Power Development Plan (PDP8), which sets ambitious targets for bolstering wind and gas energy capacities.
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According to Khanh Vu of the Thomas Reuters Foundation and Francesco Guarascio, an EU Affairs Reporter at Reuters, the plan will require a monumental $134.7 billion in funding, a portion of which is expected from foreign investments, including a $15.5 billion pledge from the G7 nations.
This strategic shift towards cleaner energy, backed by substantial financial commitments, underscores Vietnam’s emerging role as a new LNG importer.
Short-Term Impact
In the immediate term, Vietnam’s nascent focus on LNG suggests a notable increase in global demand. The country currently has no LNG imports but has produced about 9 GW of natural gas domestically. PDP8 anticipates that by 2030, LNG will form a significant portion of Vietnam’s energy matrix, a move that could push LNG prices upwards.
Mid-Term Outlook
By 2030, renewables like wind and solar are slated to cover nearly 31% of Vietnam’s energy needs. However, LNG will still make up a significant 24.8% of the total energy production. This persistent demand for LNG, coupled with hefty investments, is likely to sustain global LNG prices at elevated levels over the medium term.
Long-Term Projections
Looking further down the road towards 2050, Vietnam aims for carbon neutrality. Achieving this lofty goal will necessitate up to $658 billion, according to government estimates. Even as Vietnam heavily invests in renewables like wind power, LNG is expected to serve as a reliable, cleaner alternative to coal, thereby maintaining its critical role in global energy dynamics and keeping prices robust.
Conclusion
Vietnam’s ambitious energy plans, endorsed by substantial financial commitments from foreign investors, paint a compelling picture of its emerging importance in the global LNG market.
As Vietnam gears up to become a significant LNG importer, its growing demand is poised to be a key price driver, reinforcing the commodity’s pricing structure across various time frames.
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Qatar: QatarEnergy officially starts work on giant LNG expansion project
State-owned LNG giant QatarEnergy has officially started building its North Field expansion project, which will raise Qatar’s LNG production capacity to 126 Mtpa by 2026. The project’s ground breaking took place during a special ceremony on Tuesday at Ras Laffan attended by Qatar’s energy minister and chief executive of QatarEnergy, Saad Sherida Al-Kaabi, and the CEOs and senior executives of QatarEnergy’s partners in the expansion project.
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QatarEnergy’s partners in the project are Shell, ConocoPhillips, ExxonMobil, Eni, Sinopec, and CNPC.
The project includes six mega trains, each with a production capacity of eight Mtpa of LNG, four of which are part of the North Field East expansion project, and two are part of the North Field South expansion project.
In addition to 48 Mtpa of LNG, the project will produce 6,500 tons per day of ethane gas, which will be used as a feedstock in the local petrochemical industries.
The project will also produce about 200,000 barrels per day of liquefied petroleum gas (propane and butane), and about 450,000 barrels per day of condensates, in addition to large quantities of helium and pure sulfur.
Technip and Chiyoda won the EPC award for the North Field East project, while QatarEnergy awarded the contract for the North Field South project to a joint venture of Technip Energies and Consolidated Contractors Company.
QatarEnergy LNG, previously known as Qatargas, currently operates 14 LNG production trains with a capacity of about 77 Mtpa in Ras Laffan.
“Quantum leap”
Speaking at the ground breaking ceremony, Al-Kaabi said that this “pioneering expansion project is a quantum leap in our country’s leadership in the field of energy.”
“This major expansion comes at a crucial time, as natural gas occupies a pivotal position in the energy mix in a world facing geopolitical turbulences and is in dire need of clean energy sources that are in line with the global environmental goals,” he said.
Last week, QatarEnergy also signed a shipbuilding deal worth about $3.9 billion with South Korea’s HD Hyundai Heavy Industries for the construction of 17 174,000-cbm LNG carriers.
The contract marked the start of the second phase of QatarEnergy’s giant LNG ship acquisition program.
Under the first phase, QatarEnergy contracted 60 LNG carriers at South Korea’s three shipbuilders HHI, SHI, and Hanwha Ocean, and China’s Hudong-Zhonghua.
The new deal brings the total number of confirmed new LNG vessels to be delivered to QatarEnergy and its affiliates to 77, with more to follow, QatarEnergy said.
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LNG as a Marine Fuel/Shipping
Japan: Mitsubishi Shipbuilding Delivers LNG Fuel Gas Supply System (FGSS) for LNG-fueled Car Carriers Built by Shin Kurushima Dockyard Co., Ltd.
Tokyo, October 2, 2023 – Mitsubishi Shipbuilding Co., Ltd., a Mitsubishi Heavy Industries (MHI) Group company based in Yokohama, delivered Fuel Gas Supply System (FGSS) (Note), a liquefied natural gas (LNG) fuel gas supply system for high-pressure dual-fuel marine engine to Shin Kurushima Dockyard Co., Ltd at the end of August 2023.
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The FGSS ordered by Shin Kurushima Dockyard feature an optimized cargo space layout utilizing a modular design for exceptional space-saving and maintenance access, a shortened construction schedule at shipyards, and a proprietary control system that can be customized according to customer needs, contributing to both excellent operability and safety. Mitsubishi Shipbuilding previously received and filled orders for FGSS units for two LNG-fueled car carriers built by Shin Kurushima Dockyard between 2020 and 2022. Including those deliveries, a total number of FGSS ordered from Japanese client reaches twenty-six units and the delivery of seven units have been completed.
Mitsubishi Shipbuilding, as part of MHI Group’s strategic initiatives for energy transition, will provide FGSS units to a broad range of customers involved in the construction of LNG-fueled vessels, enhancing the added value and competitiveness of ships. Further, by helping to reduce greenhouse gas (GHG) emissions through the widespread adoption of LNG-fueled vessels, Mitsubishi Shipbuilding, as a maritime system integrator, aims to further the decarbonization of the marine industry, support the realization of a carbon neutral world, and reduce environmental impacts on a global scale.
https://www.mhi.com/news/23100202.html
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China: Hutchison Ports Yantian’s first green shipment for ZTE
Th terminal has made its first green marine shipment for ZTE Corporation. The cargo, transported via rail from Changsha, Hunan province, has now been loaded onto Hapag-Lloyd’s Berlin Express en route to the Port of Rotterdam in the Netherlands.
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Berlin Express, like its sister vessel Manila Express, is a 24,000-teu LNG dual-fuel container vessel, that has the potential to reduce CO2 emissions by 15%-25% during voyages and minimise sulphur oxides, nitrogen oxides, smoke, and waste oil water emissions. Berlin Express, which is on its maiden voyage, was launched in June this year.
The vessel is part of a series of twelve dual-fuel LNG 23,500+ teu-vessels Hapag-Lloyd ordered in late 2020 and mid-2021. The total investment value of the twelve vessels stands at around $2 billion. The 400-metre-long and 61-metre-wide newbuilds are among the largest ships in the world.
Yantian, as ZTE’s primary export hub, has frequent deliveries to Europe, which serves as a crucial high-end market for ZTE’s green shipping initiative.
The port has implemented a range of eco-conscious measures to reduce carbon emissions, including the establishment of rail-sea intermodal routes, widespread shore power infrastructure, adoption of liquefied natural gas (LNG) refuelling, and the conversion of gantry cranes from diesel to electric power. It now ranks second in the country in port container throughput according to the China Ports Association.
https://www.seatrade-maritime.com/ports/hutchison-ports-yantians-first-green-shipment-zte
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Liberia: World’s largest cruise ship completes 1st LNG bunkering operation
Icon of the Seas, Royal Caribbean International’s first LNG-powered cruise ship built at Meyer Turku shipyard, has completed the first bunkering of liquefied natural gas (LNG). The 365-meter-long and almost 50-meter-wide vessel, dubbed the world’s largest cruise ship, has received LNG from Gasum’s LNG bunker vessel Kairos. Kairos reurned to Gasum’s fleet in August ths year, after being subleased outside the company since October 2022.
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The ship has been designed to supply LNG to various types and sizes of vessels at all possible bunkering locations in Northwest Europe. The vessel can supply LNG with a transfer rate from 60 cbm per hour up to 1,250 cbm per hour.
Volume growth in the maritime LNG bunkering segment has been gathering speed steadily during 2023 and is expected to further pick up pace towards the end of the year, according to Gasum.
Switching to LNG from traditional maritime fuels means complete removal of SOx and particles, and a reduction of NOx emissions of up to 85 percent. LNG reduces CO2 emissions by approximately 20 percent. LNG is interchangeable with renewable liquefied biogas (bio-LNG or LBG), which means that the two gases can be mixed at any ratio.
As part of its decarbonization efforts, Royal Caribbean Group has decided to power its cruise ship fleet with LNG. Icon of the Seas was launched in December last year. Meanwhile, the cruise ship finished the first round of sea trials, and is now ready to begin with the second round.
The vessel will also feature fuel cell technology, shore power connections, and waste heat recovery systems with the aim of reducing its greenhouse gas emissions as well as air lubrication of underwater hull. The construction of the ship is expected to take two years, ending in 2025.
https://www.offshore-energy.biz/worlds-largest-cruise-ship-completes-1st-lng-bunkering-operation/
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Technological Development for Cleaner and Greener Environment Hydrogen & Bio-Methane
China: Chinese chemists take ‘Holy Grail’ leap to make low-carbon methanol
Scientists use catalyst to convert methane to methanol at room temperature with ‘remarkable’ conversion rate, fewer by-products Process could boost the quest for green energy from natural gas, help decarbonise fuel, plastic and medicine production, experts say
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China have found a new way to make methanol at room temperature with fewer by-products, a discovery that could revolutionise the way a key source of green energy is produced, according to a published study.
The scientists, from the Dalian Institute of Chemical Physics at the Chinese Academy of Sciences, developed a novel catalyst that enables the direct conversion of methane to methanol at room temperature with fewer by-products than previous methods, opening a promising path toward energy efficient and environmentally sustainable methanol production.
Methanol – also known as wood alcohol – is widely used in the production of fuels, plastics, and medicines. But converting methane – a stable molecule – into higher-value chemicals such as methanol has long been regarded as the “Holy Grail” in the field of chemistry, according to a report on the academy’s website.
Traditional methods for breaking the carbon-hydrogen bonds of methane molecules have required extreme conditions, including temperatures over 600 degrees Celsius (1,112 Fahrenheit), and strong oxidising agents such as fuming sulphuric acid, or external fields like plasma. Those conditions have often led to over-conversion of the target product, generating undesirable by-products such as carbon dioxide.
But the new, Chinese-developed method is a “dream reaction” for the scientific community, according to the academy’s report. “It leverages low-cost, eco-friendly oxygen to facilitate the direct conversion of methane at room temperature,” it said.
Led by Professor Deng Dehui and Yu Liang at the State Key Laboratory of Catalysis at the Dalian institute, the team set out to find catalytic reactions that convert methane, carbon monoxide, methanol and carbon dioxide into higher-value chemicals at relatively mild temperatures.
The researchers constructed active reaction sites on the surface of MoS2, a two-dimensional material.
The modified Mo atoms could then break down oxygen molecules at room temperature to form highly reactive molybdenum-oxygen clusters, which in turn react directly with methane.
“In contrast to previous multi-step reactions with conversion rates lower than 1 per cent, this innovative catalytic system achieves direct oxidation with a remarkable conversion rate of 4.2 per cent at room temperature. Furthermore, the reaction generates few by-products, and product selectivity exceeds 99 per cent,” the academy’s report said.
Product selectivity refers to the ratio of the amount of a desired product obtained and the amount of a key reactant converted.
The research was published in the peer-reviewed journal Nature Catalysis on September 21.
As an important chemical intermediate, methanol is used to produce formaldehyde, dimethyl ether and acetic acid. As a cleaner source of energy, methanol is also gaining attention as a marine fuel for the shipping industry.
According to reports from the 2023 China Methanol Industry Conference, China’s total methanol production capacity has surpassed 100 million tonnes, with about 10 per cent of that produced from natural gas, which is primarily composed of methane. In Western and Middle Eastern countries, 95 per cent of methanol production comes from natural gas, according to a report from Great Wall Securities.
The findings by Deng’s team offer fresh perspectives for the development of low-energy, low-carbon methanol production from natural gas. Once applied in industrial settings, industry experts said the advancement could significantly lower energy consumption and reduce equipment maintenance demands.
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Bolivia: YPFB Andina increases the production of liquid hydrocarbons by 16% during the first half of 2023
La Paz, October 1, 2023 (AN-YPFB). – During the first semester of this management, YPFB Andina SA, a subsidiary of YPFB Corporación, increased the production of liquid hydrocarbons by 16% in the Boquerón Norte field, located in the Ichilo province of the department of Santa Cruz.
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“This excellent news is the result of the dedicated work in drilling and developing new wells. During the first half of the year we went from a total production of 2,925 to 3,397 barrels of oil per day (bbl/d),” said Armin Dorgathen, president of YPFB.
The authority added that in addition to increasing the production of liquid hydrocarbons, productive levels of natural gas have also been maintained through drilling and well intervention campaigns, planned in a timely manner, which translates into energy security for the country.
“The tangible result is a greater production of liquid hydrocarbons, which go to our refineries and diesel and gasoline are obtained, which reduces the import requirements for these fuels to supply the domestic market. This also brings benefits to the country’s economy, avoiding the outflow of foreign currency and generating savings for the State,” said the authority.
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Japan: Japan’s Osaka Gas and Taiwan’s CPC ink e-methane pact
Japan’s city gas supplier and LNG importer Osaka Gas has entered into a deal with Taiwan’s state-owned LNG terminal operator CPC to work on introducing e-methane to the energy market in Taiwan.
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Besides studying e-methane, the two firms will explore other new energy options, including hydrogen, ammonia, and biogas, according to a statement by Osaka Gas.
E-methane is a synthetic gas produced from renewable hydrogen and carbon dioxide and can be transported via the existing gas infrastructure, including the LNG supply chain.
Introducing e-methane to energy markets saves the social cost of replacing or modifying the existing gas infrastructure, as required in the case of other options, such as hydrogen, through the continued utilization of those facilities, Osaka Gas said.
E-methane production
Osaka Gas said it is proceeding with several feasibility studies to produce e-methane in strategic locations, such as North America, South America, Australia, the Middle East, and Southeast Asia.
The company and Tokyo Gas, Osaka Gas, Toho Gas, and Mitsubishi revealed plans last year to produce e-methane in Texas or Louisiana, liquefy it at Sempra’s Cameron LNG facility, and transport it to Japan. Sempra recently joined the consortium as well.
Marubeni, Osaka Gas, and Peru LNG, the operator of the 4.45 mtpa liquefaction plant at Pampa Melchorita, are also moving forward with their plans to produce synthetic methane in Peru.
Cooperation on LNG import terminals
Osaka Gas and CPC have been working together in LNG procurement, and Osaka Gas has been providing engineering services to CPC for the commissioning of the Yung-An LNG terminal and the construction and operations of other terminals.
Earlier this year, Daigas Gas and Power Solution, a unit of Osaka Gas, secured a contract for CPC’s fourth LNG receiving terminal in Taiwan.
DGPS will provide front-end engineering and design (FEED) and technical consulting service for the construction project of Zhouji LNG receiving terminal owned and operated by CPC.
Last year, DGPS also secured FEED and technical consulting service for the Phase 4 expansion project of the Taichung LNG receiving facility.
https://lngprime.com/asia/japans-osaka-gas-and-taiwans-cpc-ink-e-methane-pact/93507/
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Germany: MAN to Investigate Engine Concepts for Maritime Hydrogen Applications
MAN Energy Solutions has announced a partnership with industry leaders and research institutes that will develop engine concepts for hydrogen-fuelled, medium-speed engines in the maritime sector. Dubbed ‘HydroPoLEn’, the project is supported and funded by the German Federal Ministry for Economic Affairs and Climate Action. It aims to transform propulsion systems within shipping and develop key technologies such as injection, ignition and advanced tribological systems, while part of its remit is also to develop a concept for the integration of power unit and fuel storage as a single system.
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Besides challenges related to the combustion process, the project will also address engine efficiency, safety issues and the main steps concerning the integration of the technology in ships. Such integration is intended to enhance the efficiency, performance, and durability of a hydrogen-fuelled engine, paving the way for sustainable propulsion in the maritime sector.
Alexander Knafl, Head of Four-Stroke R&D, MAN Energy Solutions, said: “Hydrogen plays a key role in MAN Energy Solutions’ strategy and is the base for carbon-free fuels such as hydrogen itself and ammonia, as well as synthetic carbon-neutral fuels like methane and methanol. Along with this, our product portfolio comprises electrolysers – through our subsidiary, H-TEC SYSTEMS – for the production of hydrogen based on green energy. We already have several products and key technologies for Carbon Capture Storage, for example for blue-hydrogen production and for the production of methanol, synthetic methane and ammonia. Furthermore, in our engine portfolio, hydrogen plays a major role. After the release of our 25% hydrogen engines in 2021, a pure-hydrogen engine is the next logical step for us.”
Christian Kunkel, Head of Combustion Development, Four-Stroke R&D, MAN Energy Solutions, said: “Hydrogen and ammonia are by far the two most promising carbon-free fuels with the advantage that their combustion produces absolutely no CO2-emissions. Hydrogen can be produced off a base of green energy and electrolysis – green hydrogen – or based off natural gas and Carbon Capture Storage, known as blue hydrogen; both production methods are climate-neutral. In the long run, we are convinced that green hydrogen will be the cheapest way to produce hydrogen. In the meantime, when the infrastructure and production capacity for green hydrogen are established, we will need a mix of green and blue hydrogen to decarbonise industry. As such, I am very happy to see the HydroPoLEn project started; the results I have seen so far and the collaboration with the partners look very promising.”
Project members and aims
HydroPoLEn brings together the collective expertise and resources of industry leaders from the cruise sector (Carnival Maritime GmbH) and marine propulsion (MAN Energy Solutions SE), along with renowned research institutes specialising in pioneering green energy solutions (WTZ Roßlau gGmbH, NMA TUM) and a key-component supplier (Tenneco Inc.). The partnership intends to foster innovation, knowledge exchange, and multidisciplinary research ensuring the development of a robust concept fulfilling the key buying criteria.
The hydrogen-fuelled, medium-speed engine concept developed through this collaboration will significantly reduce greenhouse gas emissions and contribute to the maritime sector’s defossilisation efforts. By promoting a sustainable future for shipping, the project aligns with global goals for carbon reduction and clean-energy adoption.
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