NGS’ NG/LNG SNAPSHOT – Oct 16-31, 2023

National News Internatonal News


City Gas Distribution & Auto LPG

City gas distribution expansion expected to more than double CNG stations to 10,000

The Petroleum and Natural Gas Regulatory Board (PNGRB) has opened the 12th bidding round for city gas distribution (CGD). Under this, the oil sector regulator will offer retailing licenses for compressed natural gas (CNG) and piped natural gas (PNG) for seven geographical areas (GAs) — Arunachal Pradesh, Meghalaya, Manipur, Nagaland, Sikkim, the Union Territory (UT) of Jammu & Kashmir, and Ladakh.


Speaking to CNBC-TV18, Gajendra Singh, a Member of the Petroleum & Natural Gas Regulatory said, the latest round of licensing will cover 92 districts.

At the launch of the bidding on October 12, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri said, as a result of these initiatives, the number of CNG stations is expected to grow from 5,900 to 10,000 as per commitments from companies involved in the expansion efforts.

Currently, there are 300 authorised GAs by PNGRB covering around 88% of the country’s geographical area and 98% of its population.

On successful completion, India’s entire area and population will be covered except Mizoram, Andaman and Nicobar Islands, and Lakshadweep, as per the Report by PIB Delhi.

Singh added, “Mizoram, right now because the election has been announced, we have kept it on hold but we are taking approval from the election commission if it gets through then that will also get included. So as of now, there are seven GAs but if Mizoram gets added then it will be eight GAs.”

Union Minister for Petroleum and Natural Gas Hardeep Singh Puri said 2030 is a “reasonable” timeline to expect gas to start accounting for 15% of India’s energy mix, from the current 6%odd levels.

Singh pointed out that in this new round, PNGRB has removed any geographical restrictions, allowing for a more inclusive approach to the distribution of clean energy. Also, to address the challenges posed by difficult terrains, certain rules have been relaxed for the current bidding round, making it easier for companies to participate.

Singh said, “If you see the in previous round what you mentioned, this 300 GAs, 276 GAs have already started drawing gas and there the commitment what they made up to 11 GAs that they are going to have CNG station which is right now 5900, now it is going to be 10,000 plus they have already committed”

Companies are actively working on the expansion of distribution networks for CNG and PNG, bringing the benefits of clean energy closer to people’s homes and businesses.

Singh stated, “Currently, 37,000 industrial and commercial customers are already connected, but 37,000 commercial customers, meaning the big hotels and the big places where they require the gas for cooking and the other industrial areas, are getting connected. So, that way the progress is good.”

Singh added that for PNG, the progress is slightly slow, which is not appreciable. But, he said, it is regularly being monitored and all efforts will be made to expedite it.

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City gas distribution sales volume to grow 18-20% this fiscal on competitiveness, infra improvement

CRISIL said that the movement in gas prices is a crucial operational parameter for distributors as it impacts their competitiveness compared with alternate fuels. This, in turn, impacts their volume growth.


City gas distribution (CGD) sales volume is surging 18-20 per cent this fiscal compared with a slattosh run last fiscal, said a CRISIL report. This is driven by demand pull from improving price competitiveness of domestic gas compared with substitute fuels because of falling gas prices and supply-side impetus from continued growth in distribution infrastructure. Operating margin, it added, will improve too riding on reduced procurement cost and better absorption of fixed cost due to higher volume, which will support the credit quality of distributors.

CRISIL Ratings assessed nine distributors with ~90 per cent market share for fiscal 2023 to reach the conclusions. It said that the movement in gas prices is a crucial operational parameter for distributors as it impacts their competitiveness compared with alternate fuels. This, in turn, impacts their volume growth.

Last fiscal, administered pricing mechanism (APM)-based and global gas prices surged ~200 per cent and ~26 per cent, respectively on-year because of supply-chain disruptions and high demand in the west following the Russia-Ukraine conflict. APM and international gas prices had peaked to $8.57 per metric million British thermal unit (MMBtu) and ~$40/MMBtu, respectively. “This impacted the volume sold at compressed natural gas (CNG) stations (which use APM gas) and to industries (which primarily use imported natural gas as APM gas is not allowed for industrial consumption),” the report said. 

CNG volume growth fell due to reduced competitiveness versus alternative fuels (~30 per cent last fiscal from 45 per cent in fiscal 2022). The impact was even higher for piped natural gas for industrial consumption (PNG-I), which saw volume fall as industrial LPG and propane turned cheaper. This situation is now expected to reverse.

Ankit Hakhu, Director, CRISIL Ratings, said, “Prices have started softening this fiscal for two reasons. One is the implementation of the Kirit Parikh Committee recommendations, which caps APM prices at $6.5/MMBtu for this fiscal even as global crude prices have risen. Two, average international gas prices are expected to remain low (~$10-15 per MMBtu this fiscal against an average $27 last fiscal) amid warmer winters in Europe and the US, better storage inventories and slowing industrial growth. International prices have already corrected to ~$12.5 this August.”

Lower gas prices, CRISIL report said, will help CNG companies to recoup their price competitiveness against alternative fuels to ~35-40 per cent — or levels seen before last fiscal — and support demand push. CNG vehicle sales have already grown ~35 per cent on-year this fiscal. In addition, continued infrastructure build-out will further improve sustainability of volume growth.

Ankush Tyagi, Associate Director, CRISIL Ratings, said, “The number of CNG stations had grown ~28 per cent on-year at the start of this fiscal. This will provide a leg-up to volume. Domestic and industrial connections are also up more than 20 per cent, which will support growth of domestic and industrial natural gas. Overall, we expect CGD volume to grow by 18-20 per cent this fiscal, with CNG and domestic PNG growing 18-23 per cent and the industrial segment 10-15 per cent.” 

Improving volume and softening input prices will support recovery in operating margin to Rs 8-10 per standard cubic metre (scm) from Rs 6.5-7.0 per scm seen in the past two fiscals. That would improve the cash accrual of distributors, which have lined up ~Rs 90,000 crore capex over the next 4-5 fiscals. So, while debt will increase, debt to cash flow (Ebitda) ratio will remain in check between 1.0-1.3 times for this fiscal (~0.8 time last fiscal), leading to stable credit quality. Geopolitical developments, their impact on energy prices and competitiveness against alternative fuels will bear watching in the road ahead, CRISIL said.

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Natural Gas/ Pipelines/ Company News


Jaikhar plant to produce 15-MT natural gas daily

In an initiative to turn waste into wealth, the Patiala Agriculture and Natural Gas Corporation is set to produce 15 metric tonne (MT) of natural gas daily by processing 100 MT of stubble. Deputy Commissioner Sakshi Sahni inspected the final preparations at the Agriculture and Natural Gas Corporation plant in Jaikhar.


She mentioned that this plant would start operations within the coming months and would be capable of producing clean and green gas from stubble, addressing the issue of stubble burning in the area. The gas produced by this plant will be supplied to companies like Indian Oil, Torrent, and others.

The DC urged the farmers to avoid burning stubble to protect the environment and the health of future generations, as the poisonous smoke may cause serious health issues for many people.

She also mentioned that the district administration has made arrangements for the purchase of straw and that specialised machinery is employed for stubble management. She stated that satellite surveillance would be used for monitoring the fields where field fires are being reported, and action would be taken as per regulations against farmers who violated the rules.

During the visit, Ramesh Sharma, the fuel manager of the Agriculture and Natural Gas Corporation here, and in-charge Jagtar Singh provided information about the plant. Chief Agriculture Officer Gurnam Singh, Agricultural Extension Officer Ravinder Pal Singh Chatha, and other officials were also present at the occasion.

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Yogi govt in UP gearing up to produce CNG from stubble

In order to provide relief to the people residing in Uttar Pradesh from pollution caused by stubble burning, the Yogi Adityanath government is gearing up to produce compressed natural gas (CNG) from stubble in the state. It will provide income as well as employment to a large number of people.


This effort will also lead to the production of pure organic fertiliser, contributing to the promotion of green energy and better health outcomes.

Chief Minister Yogi Adityanath released the Bio-Energy Policy 2022 to promote biofuel in UP and encourage large-scale investment in the sector. Many big investors had signed memorandums of understanding with the state government during the Global Investors’ Summit in this regard, and these MoUs are going to see the light of the day soon. The Yogi government has set a target to establish biogas plants in every tehsil, some of which will soon become operational.

One of the upcoming operational plants is Buland Biogas in Bulandshahr, situated in the Lauhgala tehsil. Buland Biogas had signed a MoU worth Rs 18.75 crore with the state government, the cost of which has now increased to Rs 21 crore. This plant will commence production in December and is projected to yield 3 tons of CNG per day. This production will contribute to reducing the state’s dependence on petrol and diesel. Additionally, this initiative is expected to generate employment opportunities for 80-100 people, including both skilled and unskilled workers.

According to Athar Ahmed, owner of Buland Biogas, the plant uses not only straw but also degradable waste like straw, cow dung, chaff, sugarcane waste, municipal waste or a mixture of all the gases. With the help of this technology, CNG is purified.

The licence for this plant has been obtained from Indian Oil.

He said that the most noteworthy aspect of this project was the bulk production of organic fertiliser.

All the waste generated during the compressed gas production process is 100 per cent organic, consisting of both solid and liquid components.

The liquid organic fertiliser produced by the plant will be distributed free of cost to farmers for a period of three years, with the identification of eligible farmers being the responsibility of the district magistrate or the chief development officer. This initiative aims to assist farmers who may face difficulties in purchasing fertilisers such as DAP and urea.

The advantages of organic and liquid fertilisers are manifold. Traditional fertilisers form a dense layer on the soil, which takes time to reach the roots of trees and plants. In contrast, organic fertilisers can reach the roots within two to three hours, significantly enhancing their effectiveness. This not only benefits farmers but also makes organic products available to people, improving their overall health, Athar Ahmed disclosed.

He further mentioned that the Yogi Adityanath government has propelled this project forward with remarkable speed, chiefly through the introduction of the Bio-Energy Policy 2022.

“This policy encompasses several provisions to facilitate the process. Firstly, it allows those who have obtained a LOI licence to apply for it. Moreover, both the Central and state governments are offering substantial subsidies, ranging from Rs 75 lakh to Rs 20 crore. Additionally, there is a 10-year exemption on surcharges for electricity, stamp duty and land development charges. Apart from this, a discount of 50 plus 30, i.e. a total of 80 per cent, is being given on machinery,” he informed.

Furthermore, arrangements are made for a consistent supply of raw materials, such as degradable waste. Long-term agreements have been established with sugar mills to procure sugarcane residue, and the Animal Husbandry department has been tasked with inking agreements with all government-run cowsheds for the procurement of cow dung. Additionally, for projects with a value of Rs 50 crore or more, the government is extending support by providing a 5-kilometre approach road. To assist the investors, the Yogi government has deployed Udyami Mitra. Every possible effort is being made by Bundalshahr’s Udyami Mitra Rajkumar to commence the plant as soon as possible, Athar Ahmed added.–produce-cng-from-stubble.html

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Major leadership change at AG&P Group; Karthik Sathyamoorthy appointed CEO

At the Group level, effective October 15, 2023, Karthik Sathyamoorthy has been appointed as the Chief Executive Officer for AG&P Group. He will continue to remain the CEO of AG&P LNG Terminals & Logistics (AG&P LNG), Singapore.


New Delhi: AGP international Holdings Pte Ltd, Singapore, a large downstream LNG platform, announced several changes in its leadership team. At the Group level, effective October 15, 2023, Karthik Sathyamoorthy has been appointed as the Chief Executive Officer for AG&P Group. He will continue to remain the CEO of AG&P LNG Terminals & Logistics (AG&P LNG), Singapore.

Also, Faisal Nawaz has been appointed as the Chief Financial Officer for the Group, Anupam Ahuja has been appointed as the President, Corporate Development & Strategy for the Group, and Alex P Gamboa has been appointed as the Chief Executive Officer (CEO) of AG&P Industrial, Manila.

“The ownership of the company and the majority of the Board composition remains unchanged at AG&P Group,” the company said in a statement. Sathyamoorthy has been with AG&P Group since 2017 and has been part of efforts in establishing AG&P as a major player in the downstream Liquefied Natural Gas and Natural Gas industry in South and Southeast Asia.

He has over 20 years of experience in the development of new LNG import terminals, small-scale LNG, LNG ship scheduling, contracting and commercial negotiations across SE Asia, N Asia and Middle East.

“Mr. Sathyammoorthy will be focused on AG&P LNG’s substantial growth pipeline and proprietary technologies in development on energy transition to establish clean energy networks across diverse unserved and underserved markets towards a carbon-neutral future,” the company said.

Nawaz currently serves as the Board member of AG&P Group. In the past, he was the CEO at Asiya Investments Hong Kong Ltd., Asiya Capital Investments Co. and Asiya Investments (Dubai) Ltd. Nawaz has 25 years of experience across multiple industries in operational restructuring, R&D, treasury, and corporate finance. Before Aisya, he was Director of Finance at Agility Logistics.

Anupam Ahuja joined AG&P Group in 2011 and has been responsible for the design and execution of the overall marketing and communications strategy. Ahuja has two decades of international experience in marketing and communications, human resources & change management across energy, oil & gas, pharmaceutical, outsourcing and IT sectors.

As President for Corporate Development and Strategy for the Group, Anupam Ahuja will continue to focus on marketing and sustainable growth strategies to drive value for all AG&P stakeholders.
Gamboa joined AG&P Industrial in 2016 and led the re-entry of the company into the Philippine Industrial construction market. As CEO of AG&P Industrial, he will be focused on growing the global footprint to include Australia and Saudi Arabia.

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Mahanagar Gas Q2 results: Net profit more than doubles to Rs 339 crore

The profit jump us mainly due to fall in the cost of natural gas — Rs 899 crore from Rs 1148 crore a year ago.. Mahanagar Gas Limited (MGL) on October 27 reported a 106 percent year-on-year surge in consolidated net profit in the September quarter of the financial year 2023-24.


Consolidated net profit of the city gas distribution company stood at Rs 339 against Rs Rs 164 crore in the year-ago period.

The profit jump us mainly due to fall in the cost of natural gas — Rs 899 crore from Rs 1148 crore a year ago.

The company’s total income increased to Rs 1,773 crore, up 1.66 percent from Rs 1,744 crore in the same quarter last fiscal.

Ahead of the results announcement, shares of Mahanagar Gas closed marginally higher at Rs 991.05 a piece on NSE.

Sales volume rise

The company said its total gas sales volume for the quarter was 329 mmscmd (million metric standard cubic meter per day), rising 6% from the previous quarter. Of the total volume, industrial volume was 46 million SCM, while CNG was 238 million SCM.

Taking a bullish stance on Mahanagar Gas, Jefferies recently upgraded the stock to ‘buy’ and raised the target price from Rs 1,100 per share to Rs 1,320 per share as it sees a strong 27 percent growth in earnings in FY25.

Lower gas cost, high volume growth prospects and the highest priority in allocation are the key factors that would drive margins of Mahanagar Gas Ltd in the near term, said Jefferies in a recent report.

Recent partnerships with original equipment makers (OEM) entered into by MGL would support volume growth, the international brokerage said.

Mahanagar Gas is an enterprise of GAIL (India) Limited, a Maharatna company of central govenment and Maharashtra government. The company supplies CNG to vehicles and piped natural gas to domestic households. It also has some petrol stations in Maharashtra.

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Policy Matters/ Gas Pricing/ Others

Delhi environment minister recommends 7 steps to curb air pollution to Centre

Delhi Environment Minister Gopal Rai wrote a letter to Union minister Bhupender Yadav asking him to convene an emergency meeting to discuss solutions to curb air pollution in Delhi and also recommended seven steps to check the pollution of Delhi’s air.


Delhi Environment Minister Gopal Rai has penned a letter to Union minister Bhupender Yadav outlining seven key recommendations aimed at mitigating environmental challenges in the National Capital Region (NCR).

Among the suggestions to the Centre, the Delhi minister sought that Yadav convene an emergency meeting to deliberate on solutions to curb air pollution in the city and also demanded an absolute ban on firecrackers and stubble burning ahead of the season.

In the letter, Rai urged the central government to enforce the following measures to check Delhi air pollution:

Mandate CNG or Electric Vehicles for Public Transport: Rai proposed that all public transportation commuting from NCR to Delhi should exclusively operate on Compressed Natural Gas (CNG) or electric power, reducing the carbon footprint significantly.

Ban Stubble Burning in NCR: To curb incidents of stubble burning in the NCR region, strict regulations need to be imposed to prevent this harmful agricultural practice.

Convert Industrial Units to Natural Gas: Industrial units in NCR states still utilizing polluting fuels should be immediately transitioned to piped natural gas, reducing emissions drastically.

Upgrade Brick Kilns: Polluting brick kilns prevalent in NCR states should adopt cleaner technologies to minimize air pollution and environmental damage.

Ensure Reliable Electricity Supply for Housing Societies: To decrease dependence on diesel generators, all housing societies in NCR states should be guaranteed a stable electricity supply, encouraging a shift to cleaner energy sources.

Complete Firecracker Ban Similar to Delhi: Rai suggested that, akin to Delhi, NCR states should enforce a comprehensive ban on firecrackers to mitigate air quality deterioration, especially during festivals.

Regulate Non-Destined Vehicles on Peripheral Expressways: Non-destined vehicles should be directed by respective state governments to use Eastern and Western Peripheral Expressways right from their initial entry points, ensuring reduced traffic congestion and pollution in residential areas.

Writing on the matter, the environment minister mentioned that due to these steps, a 30 per cent reduction in pollution levels has been observed. In his letter to Yadav, Gopal Rai said that to combat the pollution, the administration needs to control the pollutants in the NCR and for that, systematic coordination with the neighbouring states has to be put in place “because 69 per cent of pollution in Delhi originates from the neighbouring states”, Rai held.

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NCR buses will need clean fuel from Nov 1

NEW DELHI: All the bus services between Delhi and other NCR cities in Haryana, Rajasthan and UP must run on cleaner fuel from November 1, the Commission for Air Quality Management (CAQM) ordered on Friday after a meeting with the states.Aiming at reaching efficient and cleaner public transport services within NCR, the commission has directed the state governments of Haryana, Rajasthan and Uttar Pradesh to ensure that inter-city and inter-state bus services are either electric, CNG or BS-VI compliant.


One of the major sources of pollution in the city, according to a source apportionment study carried out by The Energy and Resources Institute and Automotive Research Association of India in 2018, is transport, which contributes 39% to the PM2.5 in Delhi’s air and 13% to NCR’s air. Transport also accounts for 19% to the city’s PM10 and 7% to the region’s.
“The commission has held a series of meetings with the NCR States for developing detailed action plans for shifting to cleaner bus services in NCR, focusing that bus services in the entire NCR to be targeted for EVs in the long-term (within five years), through EVs/CNG buses in the medium-term (within three years) and in the interim through EVs/CNG/BS-VI diesel buses,” said a CAQM statement on Friday.

CAQM said Haryana, Rajasthan and UP had accordingly formulated plans to replace and relocate older BS-III and BS-IV diesel buses and to procure new BS-VI diesel buses in 2023-24. Under this, Haryana will procure 1,313 new BS-VI diesel buses, Rajasthan 590 new buses while outsourcing the services of 440 additional buses and Uttar Pradesh will procure at least 1,650 new BS-VI diesel buses.

“It was also informed that procurement of CNG buses and electric vehicles, as per the respective EV policy of the state, was also under way in NCR. Therefore, with effect from November 1, 2023, the bulk of bus services from any city/town in the states of Haryana, Rajasthan and Uttar Pradesh to Delhi shall be only with EV/CNG/BS-VI diesel buses,” CAQM said.

“The operation of only EV/CNG/BS-VI diesel buses in the entire NCR are also expected to come into effect from July 1, 2024,” it added.

The commission further directed the transport department and traffic police in Delhi and all the NCR states to ensure regular monitoring of this at the field level.

Meanwhile, Delhi environment minister Gopal Rai, who attended the meeting with CAQM, stated that he had appealed to everyone that all public transport arriving in Delhi from NCR should run on CNG or electricity.

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LNG Use / LNG Development and Shipping

India boosts LNG imports in September

India’s liquefied natural gas (LNG) imports rose in September compared to the same month last year, according to the preliminary data from the oil ministry’s Petroleum Planning and Analysis Cell. The country imported 2.27 billion cubic meters, or about 1.7 million tonnes of LNG, in September, a rise of 17.5 percent compared to the same month in 2022, PPAC said.


During April-September, India took 15.11 bcm of LNG, or some 11.1 million tonnes, up by 9.4 percent, PPAC said.

India paid $1.2 billion for September LNG imports, down from $1.4 billion last year, while costs dropped from $9.4 billion in the April-September period last year to $6.6 billion during the same six months this year, it said.

As per India’s natural gas production, it reached 3.02 bcm in September, up by 6.1 percent compared to the corresponding month of the previous year.

During April-September, gas production rose by 4 percent to 17.87 bcm, PPAC said.

At the moment, India imports LNG via seven facilities with a combined capacity of about 47.7 million tonnes.

India’s Adani and France’s TotalEnergies started supplying natural gas in April to the grid from their 5 mtpa Dhamra LNG import facility located in Odisha, on India’s east coast. In August, the partners completed the first truck loading operation at the facility.

During April-September, Petronet LNG’s 17.5 mtpa Dahej terminal operated at 94.3 percent capacity, while Shell’s 5 mtpa Hazira terminal operated at 39.2 percent capacity, PPAC said.

The Dhamra LNG terminal operated at 24 percent capacity, it said.

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LNG import bill down 30% in H1, though volume rises 10%

Thanks to a decline in global prices of liquefied natural gas (LNG) in the initial months of this fiscal, India’s LNG import bill in the first half of the year fell by nearly 30% on year to $6.6 billion. In volume terms, analysts see the country’s LNG imports rising this year given the increased demand and the “reasonable prices” of the commodity in the international market.


During the first half of the financial year 2023-2024, imports of LNG rose by over 10% to 15.11 bcm from the 13.68 bcm in the corresponding period last year.

India’s imports of LNG in September rose by 17.5% to 2.27 billion cubic metres (bcm) from the corresponding month last year due to rising consumption in the country, particularly by the fertilizer units, which uses gas feedstock for urea manufacturing. Imports in September were up 2% from the previous month, according to preliminary data from the Petroleum Planning and Analysis Cell.

“As of September 15, the European Union has 12% higher storage than the normal for this time of the year and a number of other LNG projects are coming up globally,” said Prashant Vasisht, senior vice-president, Corporate Ratings, ICRA. “Prices (of LNG) are thus not expected to go very high. At least for the winter, we do not see any rise in prices,” he said.

“The demand for LNG is increasing due to increased consumption in the fertilizer industry and new plants that have come,” Vasisht said. “We have anticipated around 6% increase in LNG imports this year.”

However, concerns remain whether the current trend in LNG prices will sustain owing to the rising geopolitical tensions. If prices rise in the near future, country’s import volume can be affected.

Prices of spot LNG have risen during the past few days due to the escalating conflict in the Middle East and is currently being traded at a level of $14.5 per mmBtu. “If prices of LNG see a further sudden jump, it can affect India’s volume of import in the second half of the current financial year,” Vasisht said.

Further, the country produced 30.27 bcm of natural gas in September this year, up by 6.1% from the corresponding period last year. During April-September, the production rose by 4% to 178.79 bcm from the corresponding period last year.

Country’s consumption of natural gas for the month of September rose 11% to 52.54 bcm from 46.68 bcm in September 2022. “The cumulative consumption of 326.14 bcm for the current financial year till September 2023 was higher by 6.6% compared with the corresponding period of the previous year,” the report said.

Meanwhile, the total capacity of the country’s existing LNG terminals was at 47.4 million tonne per annum, PPAC said.

According to the report, Adani and TotalEnergies started supplying natural gas to the grid from their Dhamra LNG import facility based in Odisha in April.

The LNG terminal at Dhamra operated at 24% capacity. Petronet LNG terminal at Dahej operated at 94.3% capacity while Shell’s LNG terminal at Hazira operated at just 39.2% capacity during April-September period, according to PPAC.

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Great Eastern Shipping to Petronet LNG: 10 value bets for rich payoffs

India’s equity valuation has seen a tempering in the past three months, mirroring a decline in the broader market. The trailing 12-month price-to-earnings (P/E) multiple of the BSE Sensex has receded from an 18-month high of 24.8x at the end of July to 22.8x on Monday. This downturn has been led by foreign portfolio investors (FPIs), who, after six months of net buying, have turned net sellers of Indian equities over the last two months. The selloff by FPIs could be attributed to a marked escalation in bond yields in the United States, rendering investments in riskier assets like emerging market equity less financially appealing.


While the downward pressure on equity valuation is palpable across the market, growth stocks with rich valuations face the most significant downside risk. Conversely, analysts perceive limited downside risk to value stocks with relatively low valuations, promising growth prospects, and robust balance sheets. However, investors should tread cautiously when investing in stocks with low valuation parameters, such as price-to-earnings multiple and price-to-book value ratio. Stocks with attractive prices can swiftly morph into value traps in the absence of revenue and earnings growth.

That’s why it is crucial to invest only in those “value stocks” whose businesses promise long-term growth potential. Here are 10 non-bank and non-finance stocks from the BSE500 Index universe that offer an optimal blend of low valuation, reasonably robust revenue and earnings growth in recent quarters, a strong balance sheet, and most importantly, positive cash flow from their operations. A majority of these companies also lead their respective industries, providing them with good earnings visibility over the long term. Furthermore, these companies are either debt-free or carry minimal debt on their balance sheet, making their finances relatively resilient to rising borrowing costs. 

Great Eastern Shipping

Great Eastern Shipping, India’s top shipping company, is one of the best value stocks currently, given its low valuation, strong earnings growth, and a debt-free balance sheet

The stock is trading at a trailing price-to-earnings ratio (P/E) of 4.9x and price-to-book value (P/BV) of 1.5x — among the lowest in the midcap space. It offers a reasonably high dividend yield of 2.9 per cent at its current price

The company paid a record high equity dividend of Rs 411 crore in FY23, equivalent to 17.4 per cent of its net profit

In the trailing 12 months ended June 2023, the firm’s net profit was up 151 per cent, and net sales by 37 per cent

Also Read

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India’s natural gas ambitions tripping even though imported LNG prices fall

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Petronet LNG

India’s largest liquified natural gas seller, Petronet LNG, is one of the top value stocks currently with low valuation and a high dividend yield

The stock is trading at a trailing P/E of 10.1x and P/BV of 2.3x, both at a discount to the Sensex’s valuation

Petronet LNG is also among top dividend yielding stocks, with a yield of 5 per cent currently, much higher than the Sensex’s yield of 1.24 per cent  

Analysts expect it to maintain the dividend payout in FY24, thanks to a rise in its earnings and gains from recent softening of global LNG prices from record highs in FY23

Prabhudas Lilladher says that there is limited downside in the stock given its highly liquid balance sheet with cash & equivalents worth Rs 6,500 crore at the end of FY23, equivalent to a fifth of its current market cap

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Electric Mobility/ Hydrogen/Bio-Methane

Tata Motors to develop hydrogen engines: Unveils two new facilities

Tata Motors has set up two research and development facilities in Pune. The two facilities will act as a base for engine tests for the development of a Hydrogen Internal Combustion Engine, while the focus will also be on the essential infrastructure for storing and distributing Hydrogen fuel, catering to both Fuel Cell and H2ICE vehicles.
Girish Wagh, the Executive Director of Tata Motors, highlighted the company’s belief in Hydrogen as the future’s predominant fuel, particularly for commercial vehicles.


Earlier this year, the manufacturer had showcased a range of commercial vehicle concepts at Auto Expo 2023, including the flagship Prima tractor, featuring both a hydrogen internal combustion engine and fuel cell technology. Apart from that, Tata also showcased the next-gen Hydrogen fuel cell bus. Furthermore, the company recently delivered two hydrogen fuel cell-powered buses to the Indian Oil Corporation, as part of a tender it bagged back in 2021. At present, Tata Motors has its presence in a host of solutions for alternate fuel technologies such as battery-electric, hybrid, CNG, LNG, Hydrogen ICE, and Hydrogen Fuel Cell technologies. Not just that, the OEM has also established its dominance in the passenger electric vehicle segment with its offerings such as Nexon EV, Tigor EV, and Tiago EV.
Rajendra Petkar, President & CTO, Tata Motors, expressed, “This is a significant moment for us as we create Hydrogen based internal combustion engine development facility and the associated infrastructure for fuel storage and dispensing at our Engineering Research Centre.

“We have been investing in Hydrogen technology for the last many years and continue to be committed to harnessing its maximum potential through research and product development.” he added.
Stay tuned to TOI Auto for latest updates on the automotive sector and do follow us on our social media handles on Facebook, Instagram, and X.

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GAIL to set up compressed biogas plants in 15 districts

GAIL officials who met Chief Minister Siddaramaiah and Deputy Chief Minister D K Shivakumar are said to have put forth the proposal and sought the government’s approval. Bengaluru : In an effort to improve waste management in districts apart from Bengaluru, the state government is likely to approve a proposal by GAIL Gas Limited (GGL), a central public sector undertaking, to set up Compressed BioGas (CBG) plants in 15 districts across the state. Many of these districts do not have a well-planned waste management system and this could prove to be a problem in the future, government sources said.


GAIL officials who met Chief Minister Siddaramaiah and Deputy Chief Minister D K Shivakumar are said to have put forth the proposal and sought the government’s approval. According to sources, the government is also keen on approving these centres since many districts are slowly developing, and the quantity of waste produced is increasing drastically.”We have seen how waste management has become a herculean task in Bengaluru. We do not want the same situation in other districts. It is important that we put in place measures now. And the CM was particularly keen on implementing it, especially in Mandya, Mysuru and Ramanagara,” a source privy to the meeting said.According to the proposal, GAIL will set up 100 TPD (tonnes per day) plants in 15 districts at an estimated cost of Rs 450 crore and will also bear the operation costs.

“The municipalities or the rural development department will have to provide them land and supply organic wet waste,” a senior official who has studied the proposal said. The gas produced is expected to be used by GAIL.As these districts could have large agricultural areas under them, the plants will also process agricultural waste. “In North India, managing agricultural waste has also become difficult. Such a situation might come up here as well. These plants will help us to be better prepared with respect to waste management,” the official said.The chief minister has now directed the officials to form a task force and identify districts where the plants can be set up. Consequently, the officials are looking at waste generation in districts across the state and are conducting preliminary meetings with district administrations.Given that many waste processing plants are opposed by the residents around them owing to the stench, the government has instructed the GAIL to ensure that all the plants set up by them are odourless, produce no effluents and have zero discharge.

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India’s National Green Hydrogen Mission allots ₹1,906 crore across three Ministries, supported projects 

India’s National Green Hydrogen Mission has so far allocated over ₹1,906 crore – which includes ₹1506 crore across three Ministries and other supported projects; and ₹400 crore for R&D purposes.  The R&D scheme guidelines under the National Green Hydrogen Mission are to be finalised by October, while calls for proposals are likely to be issued by November. A National Centre for Hydrogen Safety has also been proposed. 


Allotments made across Ministries include ₹455 crore to the Ministry of Steel, till 2029-30; around ₹155 crore to the Ministry of Ports, Shipping and Waterways (MoPSW) till 2025-26, and ₹400 crore to the Ministry of Road Transport and Highways (MoRTH) also till 2025-26. For other supported projects, the allotment has been ₹400 crore. 

According to a report of the Empowered Group of the National Green Hydrogen Mission, accessed by businessline, the themes and structure of the pilot projects are awaited from the Ministry of Steel and MoPSW. The second meeting of the Empowered Group was held earlier this month. 

“MoPSW has communicated a fund requirement of ₹2,140 crore for developing common user facilities near three ports, namely Kandla, Paradip, and Tuticorin. (The) MNRE (Ministry of New and Renewable Energy) will formulate the scheme guidelines as per MoPSW’s requirements,” the report mentioned. 

Other actions that are being taken by the MoPSW include upgrading ports for development as hydrogen hubs. 

In the case of MoRTH, the Ministry is conducting discussion on route selection in accordance with availability of hydrogen fuelling stations with IOCL; and these are to be conducted by October-end. “First phase of the pilots are to be rolled out by the end of 2023-24 and guidelines are to be formulated as per MoRTH’s requirements,” the report mentioned. 

Adoption and implementation of international standards and codes related to hydrogen fuelled vehicles to be concluded by end of 2023, it added.

Earlier this year, the Union Cabinet had approved the National Green Hydrogen Mission with an allocation of ₹19,744 crore, aimed at procuring 5 million tonne (mt) of green hydrogen annually by 2030. Of this, the Centre has earmarked an outlay of ₹17,490 crore for the SIGHT (Strategic Interventions for Green Hydrogen Transition) programme. 

SIGHT programme, R&D plans

According to the committee report, bids for 4,50,000 tonnes of green hydrogen capacity have been floated (under SIGHT plans), which include 40,000 tonnes to be produced under the bio-mass route and 4,10,00 tonnes to be produced through tech-agnostic methods. Bidders will be finalised on the least amount of incentives sought and the last date for bid submission is October 31. The finalisation of successful bidders is likely by November. 

On the other hand, under the electrolyser method of hydrogen making, bids for 1.5 GW annual capacity have been floated. Bidders are to be finalised on the basis of local value addition and efficiency of the electrolyser. 

Mode II and Mode III of the SIGHT programmes will focus on the aggregation model for the supply of green ammonia and for the supply of Green Hydrogen to refineries (that include individual bids for specific plants).

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India moots biofuel alliance among 14 members of IPEF

New Delhi: India has proposed collaboration on biofuels within the Indo-Pacific Economic Framework (IPEF) on the lines of the G20 Global Biofuels Alliance to ensure energy security, affordability and accessibility through sustainable biofuels, according to officials.


At the ongoing sixth round talks of the IPEF in Malaysia, India is also likely to push for technology transfer among the group’s 14 members to mitigate greenhouse gas emissions and enhance energy security.

The issues are expected to come up in the negotiations of Pillar 3 of IPEF, which relates to a clean economy, and could conclude this week.

“All countries are suggesting work programmes and India has suggested collaboration on biofuels like the G20 Alliance,” said an official, adding that India is also pushing for technology transfer through joint ventures in the clean energy pillar.

Supported by the G20 countries and 12 global organisations, including World Bank, Asian Development Bank, International Energy Agency and the International Energy Forum, the Global Biofuels Alliance seeks to strengthen global biofuels trade. It was launched at the New Delhi G20 Leaders Summit.

The current round of IPEF talks ends on October 24.

Pillar 3 relates to environmental issues, how to mitigate greenhouse gas emissions in various industries, carbon capture utilisation and storage, collaborative financing facilitate trading and not put many barriers.

Negotiations on Pillar 3 (clean economy) and Pillar 4 (fair economy) are expected to conclude in the ongoing round.

The IPEF was launched jointly by the US and other partner countries of the Indo-Pacific region, including Japan, Australia and seven ASEAN members. It is structured around four pillars-trade, supply chains, clean economy and fair economy (issues such as tax and anti-corruption).

The IPEF Supply Chains (Pillar-II) Agreement was finalised in May and the commerce and industry ministry has floated a cabinet note seeking approval to sign and ratify it.
“Since the IPEF talks are likely to conclude next month, culminating in a ministerial meeting, Cabinet approval for Pillar 2 needs to come before that,” the official added.

Pillar 3 also has labour issues and talks about indigenous people, but India is unlikely to partake in it as the country doesn’t define indigenous people.

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Natural Gas / Transnational Pipelines/ Others

Russia: Putin Readies for China trip seeking progress on lucrative Siberia-2 pipeline

Will Russian President Vladimir Putin finally be able to secure a Chinese commitment on an ambitious natural-gas pipeline project that could transform energy flows across Asia? Putin is expected to push for progress on the China-bound Power of Siberia-2 gas pipeline when he meets Chinese counterpart Xi Jinping in Beijing for talks and to attend the third Belt and Road Forum on October 17-18.


The proposed pipeline would bring gas from the huge Yamal Peninsula reserves in western Siberia to China, the world’s top energy consumer and a leading gas customer.

Russian officials have in recent months met with their counterparts from China and Mongolia — where the pipeline is intended to traverse — with Russian Deputy Prime Minister Aleksandr Novak announcing in September that Power of Siberia-2’s route is to be finalized after the trilateral negotiations.

In another sign that energy talks are advancing, Reuters reported that Putin is also expected to go to Beijing with the heads of Russian energy giants Gazprom and Rosneft, Aleksei Miller and Igor Sechin, respectively.

“It’s striking to see both Miller and Sechin traveling with Putin, as well as the recent meetings with the Mongolians,” Joseph Webster, a senior fellow at the Atlantic Council’s Global Energy Center, told RFE/RL.

Putin’s high-profile trip marks his first visit to China since Russia’s full-scale invasion of Ukraine and comes as Moscow is trying to boost trade with Asia as economic ties with the West decline. China — a crucial political and economic partner for the Kremlin amid the war — is central to that diversification strategy and the Russian economy would get a huge boost from the new gas pipeline.

The catch for Moscow — which needs the Power of Siberia-2 to compensate for at least part of the European Union market it has lost due to fallout from the war in Ukraine — is that Beijing currently has no particular incentive to agree to the new pipeline.

Energy analysts say the proposed venture will need to overcome growing economic, financial, and technical challenges to come to fruition. Moscow’s bargaining power with its more economically powerful neighbor has weakened over the course of the war in Ukraine and questions remain over Gazprom’s ability to underwrite such a complicated infrastructure project.

Revenue from the pipeline is also uncertain because it faces competition from China’s growing shift toward renewable energy.

Despite these mounting concerns, the pipeline could still get the green light, Webster noted, as a sign of Xi looking to prioritize Moscow’s geopolitical importance to Beijing despite the risks stemming from the troubled economic outlook of the pipeline.

“The Russians have been pushing for an agreement for some time despite the economics being highly unfavorable,” Webster said. “The Russia-China relationship is strong and both Xi and Putin appear intent to lay the foundations so it can outlast them as leaders.”

What’s At Stake For Putin’s Trip?

Conceived of more than a decade ago as part of a Russian move to diversify gas sales to Asia, the pipeline has taken on a new dimension since February 2022, when European consumption started falling dramatically and forced the Kremlin to urgently find alternative buyers for its gas.

Discussions over the pipeline were already under way when the project was again discussed on Putin’s visit to China during the Beijing Olympics just weeks before Russia’s full-scale invasion of Ukraine. Since then, Moscow has continued to emphasize its readiness to begin construction on Siberia-2, though China has remained largely silent on the issue.

During a March summit, Xi appeared to skirt around the pipeline proposal, while Putin initially spoke about it as if an agreement had been reached, saying during public remarks that “practically all parameters…have been finalized.”

This was walked back in a Russian statement at the end of the summit to show that it had been discussed but no deal was struck. Russian Prime Minister Mikhail Mishustin traveled to China in May and reportedly held discussions on the pipeline, but ultimately left without a clear commitment from Beijing.

Amid the ongoing talks around Power of Siberia-2, Xi has largely stood by Putin during the war in Ukraine. Chinese-Russian trade has soared since the invasion, and Russia has sold Asian powers — including China — greater volumes of the oil it can no longer sell to the West because of sanctions.

China and Russia already have the Power of Siberia pipeline, which was launched in 2019 and agreed between Putin and Xi in 2014 shortly after Moscow’s forceful annexation of Kyiv’s Crimean Peninsula and the outbreak of fighting in eastern Ukraine by Russian-backed separatists. That pipeline is expected to reach its maximum capacity of 38 billion cubic meters (bcm) per year by 2025 and is reliant on new gas fields in eastern Siberia.

In contrast, Power of Siberia-2 aims to supply China with gas from the Yamal Peninsula, which historically has pipelines bound for the EU market, including Nord Stream, which was a major source of dispute over the years before being sabotaged in 2022. According to Russian estimates, the second Siberian pipeline could carry up to 50 bcm per year.

While Putin may be feeling pressure to find new customers for the gas that flowed to Europe before the invasion of Ukraine, if China bides its time it may allow Beijing to secure a lower price for the gas transiting Power of Siberia-2, Jon Yuan Jiang, an Australian-based analyst of Chinese-Russian relations, told RFE/RL.

China and Russia have yet to agree on the terms of gas delivered via the new route, including pricing. Jiang notes that negotiations are complex and that further complications could arise over uncertainty about China’s natural-gas needs after 2030, when its reliance on renewables is expected to rise and domestic gas consumption could be phased down.

Adding to this, Russia’s ultimate revenue could be marginal compared to other pipeline deals struck by the Kremlin and would not be able to match what has been lost from European sales.

The investment firm BCS Global Markets estimates that Power of Siberia-2 would bring in $12 billion a year for Gazprom and send some $4.6 billion in taxes to the state. That latter amount is less than half of Russia’s average monthly energy revenues in 2023 but very welcome amid the Kremlin’s costly war in Ukraine.

China’s Energy Strategy

Beijing prioritizes its energy security and has been active in securing natural-gas contracts for larger quantities than it actually needs in order to avoid being too dependent on any one exporter.

Russian gas currently makes up a small portion of China’s overall market, with overland pipelines that transit Central Asia from Turkmenistan — as well as long-term contracts with Qatar, the United States, Australia, and other energy players for liquefied natural gas (LNG) making up the rest of its supplies.

Diversification is central to China’s gas deals and Xi also offered support for the construction of the so-called Line D pipeline — which would be the fourth to bring Turkmen gas to China — during a summit with Central Asian leaders in May.

Alicja Bachulska, a China policy expert at the European Council on Foreign Relations, told RFE/RL that China has yet to signal “what its demand for Russian gas will be in the future” and that Beijing is hesitant about over relying “on Russia when it comes to gas imports.”

She added that even if the pipeline were to be approved, “its full completion will take years and many more rounds of hard negotiations regarding pricing and other related issues” that would delay any impact on China’s energy market and Russian state coffers.

The Atlantic Council’s Webster notes that the pipeline’s approval is far from a certainty and Putin’s upcoming trip may see the Russian leader leave Beijing without a clear commitment on Power of Siberia-2. But he said China may still offer other forms of support during the trip to signal their close bilateral ties.

“China might be more willing to offer Russia benefits in other areas that are not natural gas,” Webster said. “Maybe it’s favorable terms in oil or nonlethal assistance in other sectors. China has lots of options to assuage Russia that don’t involve Power of Siberia-2.”

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Brazil: Brazil’s Ocyan to renovate Petrobras Gas Pipeline for $317.5 million, Executive says

RIO DE JANEIRO, Oct 16 (Reuters) – Brazilian oil and gas services provider Ocyan has won a contract with state-run oil firm Petrobras to revitalize a network of gas pipelines in the offshore Campos Basin for 1.6 billion reais ($317.49 million), an executive told Reuters on Monday.


The contract will last an estimated four and a half years and will revamp the pipelines of two decommissioned platforms, Jorge Mitidieri, executive vice-president of Ocyan’s services unit, told Reuters. In June the firm, owned by Grupo Novonor, completed a restructuring in which it spun off its former drilling unit into another company, called Foresea, in which it will have a minority stake.

Ocyan kept the services business, with one of its units focusing on offshore production and subsea construction services and another on new energies.

“This contract is very important for us… we won it after the company split up, so it shows our strength and a very important position in the subsea construction market,” Mitidieri said.

The company, formerly known as Odebrecht Oleo e Gas, will work in partnership with Portugal’s Mota-Engil. ($1 = 5.0395 reais) (Reporting by Marta Nogueira; Writing by Peter Frontini; Editing by Kylie Madry)

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Natural Gas / LNG Utilization

US: Eagle LNG to use Anthony Veder’s small-scale carrier for Caribbean ops

Houston-based Eagle LNG Partners will use Anthony Veder’s 2010-built 10,000-cbm vessel, Coral Favia, for LNG supply and bunkering services in the Caribbean basin as part of a new charter deal revealed on Monday. According to a joint statement, Eagle LNG took delivery of this multigas vessel from the Dutch shipping firm last week and this is the first of a planned fleet from Eagle offering LNG supply and bunker services for the Caribbean basin.


The arrival of the LNG supply vessel marks the beginning of a partnership between two long-time pioneers in the small-scale LNG bunkering and export industry, the statement said.

The partnership between Eagle LNG and Anthony Veder will allow for flexibility in ownership, chartering, and operation of the various LNG assets as the LNG bunker market develops, the two firms said.

A spokeswoman for Eagle told LNG Prime that the company has chartered Coral Favia from Anthony Veder, but she did not provide the duration of the agreement.

“Next logical step”

Anthony Veder’s CEO, Jan Valkier, said Anthony Veder has “watched Eagle LNG’s accomplishments with great interest over the past few years and looks forward to bringing our innovations and LNG shipping knowledge for further growth in the Caribbean and other markets.”

“After nearly a decade of pioneering small-scale LNG solutions including pipe-to-ship LNG bunkering, Eagle LNG is excited for this next logical step in expanding its LNG supply solutions portfolio,” Eagle LNG’s president Sean Lalani said.

“Having multiple new projects coming on-stream in the next several months, Eagle LNG is poised for exponential growth and the addition of this new LNG supply and bunkering capability enhances Eagle LNG’s core value proposition of an assured, secure supply chain bringing cost savings and energy transition solutions to our customers,” Lalani said.

Last year, Eagle LNG, owned by private equity firm Energy & Minerals Group, signed a deal to supply LNG to Royal Caribbean Group’s LNG-powered cruise ships.

As part of the deal with Royal Caribbean, Eagle LNG said it will debut “multiple purpose-built LNG vessels” equipped for marine bunkering and gas delivery throughout the Caribbean.

Eagle LNG said at the time that it will start bunkering the first ship, Icon of the Seas, in 2023.

Finland’s Meyer Turku yard is building this vessel for Royal Caribbean International, a unit of Royal Caribbean, along with two other sister ships.

Besides these vessels, Royal Caribbean International has also LNG-powered Utopia of the Seas under construction at French shipbuilder Chantiers de l’Atlantique.

Coral Favia arrived in Lithuania from Germany

According to Coral Favia’s AIS data provided by VesselsValue, the vessel was on Tuesday located at a yard in Klaipeda, Lithuania.

“The vessel is being specially outfitted for service early next year,” Eagle LNG’s spokeswoman said.

She added that Eagle LNG expects the vessel to depart to the Caribbean basin in December.

Coral Favia arrived in Klaipeda from Germany, where it was employed to serve the FSRU-based LNG import terminal in Lubmin, operated by Deutsche ReGas.

Deutsche ReGas officially launched the FSRU-based LNG import terminal in January.

The German firm chartered three small LNG carriers, including Coral Favia, from Anthony Veder to transport LNG from the project’s FSU to the FSRU due to draft restrictions in Lubmin.

Anthony Veder also became a minority shareholder in the company.

However, Deutsche ReGas will move the 2009-built 145,000-cbm, FSRU Neptune, which it chartered from TotalEnergies, to the German port of Mukran on the island of Rügen.

Neptune will serve the planned Mukran LNG import facility along with the 174,000-cbm FSRU Transgas Power, owned by Dynagas.

Antonhy Veder’s Coral Furcata and Coral Fraseri are still serving the FSRU in Lubmin, their AIS data shows.

We invited Anthony Veder to provide a comment regarding this contract with Deutsche ReGas, but we did not receive a reply by the time this article was published.

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Greece surges purchases of Russian LNG in 2023

(MENAFN) Greece has increased its purchases of Russian liquefied natural gas (LNG) this year, despite the European Union’s commitment to reducing its energy reliance on Moscow, as reported by a Greek news outlet on Thursday.


According to the report, these deliveries have caused the share of Russian gas on the Greek market to rise from 35.7 percent to 45 percent in the first nine months of the year. This level is now comparable to what it was before the conflict in Ukraine and the subsequent Western sanctions on Moscow.

During January to September, Russia emerged as Greece’s second-largest supplier of LNG, with the United States being the top supplier. However, in the most recent month, Russian LNG deliveries constituted a significant 72 percent of Greece’s total gas imports.

Kathimerini suggests that this surge in Russian LNG imports is a consequence of Moscow’s strategy of offering low-cost energy supplies, aimed at attracting more buyers and mitigating revenue losses after Russia had to reduce its pipeline gas deliveries to the EU.

The decreases in pipeline gas deliveries to the EU were the result of a confluence of factors, including the Western sanctions that were imposed in connection with the situation in Ukraine. Furthermore, technical challenges also played a role in the reduction, particularly related to the sabotage of the Nord Stream pipelines that occurred in the preceding year. These factors combined to necessitate a decrease in the flow of pipeline gas from Russia to the European Union.

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US: Marathon Oil signs five-year LNG sales deal with Glencore

Marathon Oil (NYSE:MRO) said Monday it agreed to sell a portion of the liquid natural gas it produces from its Alba Field in Equatorial Guinea to Glencore’s U.K. subsidiary in a five-year deal; financial terms were not disclosed.


Marathon Oil (MRO) said the agreement, which takes effect January 1, will have a pricing structure linked to the benchmark Dutch TTF index, providing significant incremental exposure to the European LNG market

“At recent forward curve pricing, we expect to realize an approximate year-on-year EBITDA increase of over $300M next year across our [Equatorial Guinea] integrated gas business, reflecting our differentiated and increasing exposure to the global LNG market, [which] positions us strongly for the next phase of opportunities to advance the [Equatorial Gas] Gas Mega Hub,” Marathon Oil (MRO) Chairman, President and CEO Lee Tillman said.

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Asia spot LNG prices rise as geopolitical tensions fuel supply woes

Asian spot liquefied natural gas (LNG) prices climbed $1 this week despite muted demand, tracking European gas prices, on concerns over tensions in the Middle East and damage to the Balticconnector gas pipeline linking Estonia and Finland.


The average LNG price for November delivery into north-east Asia LNG rose 7.4% to $14.5 per million British thermal units (mmBtu), industry sources estimated.

The price for December delivery was estimated at $17.5/mmBtu, the sources said.

“Markets are having a strong response based on sentiment, while structurally both basins are well supplied somewhat as we move in to an milder winter season,” said Toby Copson, head of energy, APAC, at commodities broker Marex.

“The market is pricing in potential bottlenecks and flows being hampered by the conflict in the Middle East and recent damage to a euro pipeline,” Copson added.

Northeast Asia’s demand remains limited as the region still enjoys inventories throughout, said Auguste Breteau, deputy head of LNG pricing at commodity pricing agency Argus.

Asian importers have withdrawn their demand since the strikes in Australia ended, and demand has not returned even with strikes potentially being revived from next week, he added.

Negotiations over a pay and conditions deal between Chevron CVX.N and unions at its LNG facilities in Australia made progress again on Friday, but fell short of sealing a deal to end months of labour disputes.

In Europe, a potentially deliberate sabotage to undersea pipes in the Baltic have kick-started a very strong week in European gas, with political instability in the Middle East contributing to continued volatility, as gas markets are reminded how precarious Winter could become, said Dominic Gallagher, head of LNG broking at Tullett Prebon.

Supply fears have been stoked as Israel instructed operator Chevron to halt natural gas exports through a major subsea pipeline between Israel and Egypt and as damage to the Balticconnector gas pipeline raised fears over the security of Europe’s key energy infrastructure sites after the Finnish Prime Minister said it could have been done deliberately.

“EU gas prices are capturing a risk premium over supply uncertainty in Australia, Egypt, and the Baltics. This might not be fully reflecting current fundamentals with EU gas storage at 97% full, higher LNG and Norwegian gas flows to Europe week-on-week, and Cove Point back from maintenance,” said Eleni Papadopoulou, lead natural gas analyst at data and analytics firm Kpler.

S&P Global Commodity Insights assessed its daily northwest Europe LNG Marker (NWM) price benchmark for cargoes delivered in November on an ex-ship (DES) basis at $15.718/mmBtu on Oct. 12, a $0.65/mmBtu discount to the November gas price at the Dutch TTF hub, according to Kenneth Foo, S&P’s associate director for APAC LNG.

Argus assessed the price at $15.775/mmBtu while Spark Commodities assessment was at 15.781/mmBtu.

Spot LNG Freight rates fell for the third straight week, with the Atlantic and Pacific rates both dropping to $135,200/day on Friday, according to Henry Bennett, head of pricing at Spark Commodities.

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Global LNG Development

Iraq: Iraq signs deals with UAE firm to develop three oil, gas fields

The deals would help Iraq produce 400 million standard cubic feet of natural gas per day within 18 months in the blocks. Baghdad: Iraq signed three contracts with the United Arab Emirates’ Crescent Petroleum to develop three oil and gas fields in the eastern and southern regions of the country, the Iraqi Oil Ministry said.


The Ministry said on Sunday in a statement that the deals would help Iraq produce 400 million standard cubic feet of natural gas per day within 18 months in the blocks of Kilabat-Gumar and Khashim al-Hmer-Injana in the eastern province of Diyala province and Khudhr al-Maa in the southern province of Basra.

Iraqi Oil Minister Hayan Abdul Ghani said the government was keen to increase gas investment projects to reduce gas flaring, which refers to the burning of the natural gas associated with oil extraction, and use the gas for power generation, Xinhua news agency reported.

Iraq, a member of the Organisation of the Petroleum Exporting Countries (OPEC), has more than 145 billion barrels of proven oil reserves and 132 trillion cubic feet of proven natural gas reserves. But it still flares much of its gas wealth and relies on Iranian gas imports to feed its power plants

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Malaysia: Bumi Armada well-positioned for gas jobs globally

Bumi Armada Bhd is seen to be in a good position to bid for floating liquefied natural gas (FLNG) jobs globally and this bodes well for its future growth.

This comes after the oil and gas services provider secured the approval from the American Bureau of Shipping for an innovative FLNG infrastructure solution that could bring LNG to the market in a fast, cost-effective, flexible, and reliable manner.


According to Kenanga Research, securing the approval would open doors for Bumi Armada to bid for more FLNG projects in the global market.
“We are positive on the latest development that will open doors for Bumi Armada to FLNG projects,” the brokerage wrote in a report yesterday.

“The group has developed the barge-based liquefaction unit for a standardised LNG design capacity based on a modularised and repeatable compact design. In other words, if executed without flaw, the solution would be cheaper for client as a floating-liquefaction solution would be more flexible compared to the current onshore solution,” the research house added.

Kenanga Research maintained its “outperform” call on Bumi Armada, with an unchanged sum-of-parts target price of 62 sen.

The brokerage said it liked Bumi Armada due to the sustained traction in the group’s efforts to deleverage its balance sheet, which has a current net gearing of 0.8 times; its long-term earnings visibility from its substantial order book in excess of RM20bil; and the position of the company as a leading contender for a US$1bil engineering, procurement, construction, and commissioning contract for floating production storage and offloading (FPSO) vessel Cameia.

Meanwhile, Kenanga Research noted the forced shutdown of FPSO Kraken would likely hit Bumi Armada’s earnings for the third quarter ended Sept 30, 2023. The asset, it said, had been running at full steam since August 2023 as its transformer had been successfully reconditioned and redundancy had been secured in September 2023 with a fourth new transformer installed on the FPSO.

“Our forecasts assume a partial loss of bareboat charter income from Kraken in June-August 2023. This resulted in a benign 9% impact from the shutdown,” Kenanga Research said.

It added that Bumi Armada’s securing a syndicated term-loan facility worth US$105.5mil, with final maturity on Sept 25, 2023, to refinance its existing facility (maturing in May 2024) would reduce concern on its current gearing level.

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Singapore: Singapore’s first floating energy storage system to launch in first quarter of 2024

SINGAPORE – A first-of-its-kind floating power plant with batteries that can refuel liquefied natural gas (LNG) vessels, charge electric harbour craft and even generate electricity for remote islands is set to start operations in the first quarter of 2024. The Floating Living Lab, developed on a floating platform by offshore and marine company Seatrium at its Pioneer Yard, is Singapore’s first energy storage system (ESS) on water, and could provide a future answer to a small island’s needs for energy storage from renewable sources.


The project was awarded to a consortium led by Univers, formerly known as Envision Digital International.

It is part of a $10 million partnership between the Energy Market Authority (EMA) and Seatrium to develop innovative energy solutions in the marine sector, and was announced in April 2020.

The floating lab uses an innovative battery stacking solution that reduces its footprint by 40 per cent, which could in the future be used to overcome Singapore’s land constraints in supporting the power grid.

It has a maximum storage capacity of 7.5 megawatt hours (MWh) and can meet the electricity needs of more than 600 four-room HDB households for a day in a single discharge.

The energy storage system is integrated with a smart energy management system that uses artificial intelligence and machine learning algorithms to enhance its efficiency in operations and energy distribution.

The floating lab shows what is possible, as Singapore moves from a highly centralised energy sector anchored by large power plants to a more dispersed system marked by regional renewable power sources, said a Seatrium spokesman.

Energy storage systems are necessary as the country moves to decarbonise its power sector for renewable sources such as solar power, which is weather-dependent.

Excess power generated during periods of peak production can be stored for use at other times.

Typical energy storage systems are on land. An example of such a system is a Sembcorp facility spanning 2ha of land on Jurong Island that was opened in February.

Other assets on the floating system include LNG bunkering facilities for harbour craft and small vessels, and test infrastructure for charging fully electric vessels.

Seatrium can also use it to work with partners on developing other innovative technology, such as low or no-carbon fuels for ships and electrification of harbour vessels.

On the project, chief executive of EMA Ngiam Shih Chun said: “Given Singapore’s limited land area, we need innovative solutions for our energy infrastructure such as Seatrium’s floating solution for energy storage.”

Chief executive of Seatrium Chris Ong said the company is proud to be developing innovative energy solutions in the offshore, marine and energy industries.

“The deployment of Singapore’s first floating and stacked energy storage system at Seatrium’s floating living lab is testament to our commitment towards leveraging technology and innovation to optimise energy efficiency and reduce our operational footprint,” he said.

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Qatar: QatarEnergy inks 27-year LNG supply deal with Italy’s Eni 

RIYADH: QatarEnergy has signed a sale and purchase agreement with Eni to supply up to 1 million tons of liquefied natural gas annually to Italy.  In a press statement, the state-run petroleum company revealed that it will deliver LNG to the energy major for 27 years beginning in 2026. The gas will be sourced through their joint venture, which holds an interest in Qatar’s North Field East expansion project. 


LNG will be delivered to FSRU Italia, a floating storage and regasification unit located in the port of Piombino in Italy’s Tuscany region. 

“Today, we are taking another important step in strengthening our partnership with Eni that will foster our cooperation for many years to come,” said Saad Sherida Al-Kaabi, Qatar’s minister of state for energy affairs. 

Al-Kaabi, who is also the president and CEO of QatarEnergy, added: “This agreement further builds on Eni’s first entry in the upstream sector in the state of Qatar through our partnership in the historic North Field East expansion project.” 

Qatar has been one of the most prominent suppliers of LNG for Italy. Since 2009, Qatari LNG has been arriving at the Adriatic LNG terminal in the northern Adriatic to meet more than 10 percent of Italy’s natural gas requirements. 

Earlier this month, QatarEnergy inked another deal with French firm TotalEnergies to supply up to 3.5 million tons per annum of LNG to France for 27 years. 

In a press statement, QatarEnergy revealed that LNG volumes to France will be sourced through their two joint ventures between QatarEnergy and TotalEnergies, which hold interests in Qatar’s northeastern oil fields. 

Earlier this month, Japanese trading house Mitsui & Co. said it is considering buying a stake in the North Field LNG expansion project in Qatar to ensure a stable supply of LNG. 

“We have always said that we would consider investing in any quality LNG projects, and the North Field is one of the projects,” a Mitsui spokesperson said without revealing further details, Reuters reported. 

In July, the state-owned petroleum company revealed that it reported a net profit of 154.6 billion Qatari riyals ($42.47 billion) in 2022, a 58 percent rise compared to 2021, primarily driven by an increase in demand for LNG following Russia’s invasion of Ukraine.

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LNG as a Marine Fuel/Shipping

US: Eagle LNG receives first LNG supply vessel, part of fleet to bring LNG to Caribbean

Eagle LNG Partners LLC now received its first liquefied natural gas carrier from Dutch gas shipping Anthony Veder, part of a fleet The Woodlands-based is obtaining. The 10,000-cubic-meter LNG supply vessel is called the Coral Favial. Eagle LNG will use the Coral Favia and the rest of the fleet to supply LNG and bunker services to the Caribbean basin.


LNG bunkering is when liquefied natural gas is provided to a ship for its own consumption in order to power the ship.

The partnership between Eagle LNG and Anthony Veder will allow for flexibility in the ownership, chartering and operation of various LNG assets as the LNG bunker market develops, Eagle LNG said.

“Eagle LNG has the highest regard for Anthony Veder’s success in bringing LNG as an economic and sustainable marine fuel around the globe. Since 2014, our interests in LNG transportation and bunkering have aligned,” said Simon Duncan, vice president marine operations at Eagle LNG.

Eagle LNG is a privately held and operated portfolio company of Houston-based Energy & Minerals Group that operates LNG facilities in Florida.

Earlier this year, the company obtained an $8.2 million permit to expand its Maxville facility in Jacksonville, Florida. The facility has a nameplate capacity of 200,000 gallons of LNG per day and is adding a system with an additional 115,000 gallons per day of capacity.

Eagle LNG also recently began providing LNG to Aruba.

“After nearly a decade of pioneering small-scale LNG solutions, including pipe-to-ship LNG bunkering, Eagle LNG is excited for this next logical step in expanding its LNG supply solutions portfolio,” said Sean Lalani, president of Eagle LNG. “Having multiple new projects coming on-stream in the next several months, Eagle LNG is poised for exponential growth, and the addition of this new LNG supply and bunkering capability enhances Eagle LNG’s core value proposition of an assured, secure supply chain bringing cost savings and energy transition solutions to our customers.”

Eagle LNG was created in 2013 through a consortium of companies, including Clean Energy Fuels Corp., Ferus Natural Gas Fuels, GE Ventures and GE Energy Financial Services, to supply and deliver liquid natural gas.

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China: Hudong-Zhonghua lays keels for two LNG carriers

Chinese shipbuilder Hudong-Zhonghua has held keel-laying ceremonies for two liquefied natural gas (LNG) carriers it is building for MOL and Cosco Shipping Energy Transportation. According to a statement by the CSSC-controlled shipbuilder, it held the ceremonies for the two 174,000-cbm LNG carriers on October 18.


Hudong-Zhonghua said the LNG carrier with a hull number H1792A is the third vessel being built for Japan’s MOL and China’s Cosco Shipping Energy Transportation.

In April last year, state-run LNG giant QatarEnergy signed charter deals for four LNG carriers with MOL, completing the first batch of charter contracts awarded under its massive shipbuilding program.

Hudong-Zhonghua recently launched the first vessel in this batch, while the shipbuilder started building the second vessel in January this year.

The four vessels, part of Hudong-Znoghua’s fifth-generation Changxeng series, are 299 meters long and 46.4 meters wide.

Following the order for the first batch of four vessels, MOL signed a long-term charter contract in November last year for three newbuilding LNG carriers with QatarEnergy, boosting the total to seven LNG carriers that will be built at Hudong-Zhonghua under the shipbuilding program.

PCI LNG carrier

Besides this LNG carrier, Hudong-Zhonghua held the keel-laying ceremony for the LNG carrier with a hull number H1836A, it said.

This is the last of six LNG carriers Hudong-Zhonghua is building for Cosco Shipping Energy Transportation and PetroChina.

Hudong-Zhonghua delivered the first and the second LNG carrier under the PCI project, Shaolin and Wu Dang, last year, and the third carrier, Kun Lun, in March this year.

Earlier this year, the shipbuilder launched the fourth LNG carrier and on October 15 launched the the fifth LNG carrier in this batch along the MOL vessel.

All of the six LNG vessels feature WinGD X-DF dual-fuel engines and GTT’s NO96 L03+ containment system.

The 295 meters long ships will serve PetroChina under charter contracts.

As part of its plans to double LNG carrier production capacity, Hudong-Zhonghua aims to deliver two more LNG vessels by the end of this year for a total of six ships, setting a new record for the number of LNG carriers delivered in a year.

At present, there are 12 LNG vessels under construction at the yard.

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Elenger to deliver LNG cargo to Finland’s Inkoo in late November

Elenger, part of Estonia’s Eesti Gaas, said on Friday it will deliver a cargo of liquefied natural gas (LNG) from the United States to Finland’s Inkoo terminal in the second half of November. It was also ready for additional deliveries during the winter season, Elenger added.


Finland is reliant on LNG shipments this winter after a gas pipeline connecting it with Estonia ruptured on Oct. 8 and will be out of operation until April at least.

“Sufficient gas and tankers are available in America and Europe, and additional cargoes can also be ordered quite quickly,” Paso Nakki, the CEO of Elenger Finland said in the statement.

The market would be able to cope with the Balticconnector situation, and it is possible to cover Finland’s consumption volumes via the Inkoo terminal, he added.

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ORLEN adds two new LNG carriers to its fleet

‘Saint Barbara’ and ‘Ignacy Łukasiewicz’ are the new additions soon to join the ORLEN Group’s fleet of liquefied natural gas (LNG) vessels. The ship naming ceremony took place at the Hyundai Samho Heavy Industries shipyard in Mokpo, South Korea, according to the company’s release.


The new gas carriers have been christened with meaningful names: ‘Saint Barbara’ pays homage to the patron saint of miners, oil and gas workers, while ‘Ignacy Łukasiewicz’ honours the pioneering figure in the world oil industry, an illustrious inventor, industrialist, and advocate for Poland’s independence. Crafted by South Korea’s Hyundai Samho Heavy Industries, the vessels will operate under a long-term charter agreement with shipowner Knutsen OAS Shipping.

Once integrated into the fleet, the gas carriers will serve the dual purpose of accommodating both long-term contracts and spot contracts, based on the Free-On-Board (FOB) delivery terms, whereby the ORLEN Group, as the buyer, will be responsible for collecting and transporting the cargoes.

Ultimately, the total count of vessels in the ORLEN Group’s fleet will be brought to eight. Each vessel will have a capacity of approximately 70,000 tonnes of LNG, which equates to roughly 100 million cubic metres of natural gas in gaseous state. In terms of size, the gas carriers have been designed to navigate virtually any LNG terminal across the globe. Furthermore, all the vessels have been equipped with solutions improving their energy efficiency and mitigating the environmental impact. These include integrated management of electricity consumption and a reliquefaction system to recover LNG that naturally evaporates during transport.

In terms of ongoing operations, two ships of the ORLEN Group’s fleet have already been deployed this year: ‘Lech Kaczyński’ and ‘Grażyna Gęsicka’, which delivered their inaugural LNG shipments to Poland in March and June, respectively. The upcoming shipment – by ‘Grażyna Gęsicka’ – is expected to arrive in late October or early November this year.

LNG represents a crucial element of the ORLEN Group’s strategy, which aims to diversify the directions and sources of natural gas for Poland. The proportion of seaborne deliveries in the Group’s imports has been progressively on the rise. In 2021, they constituted merely 24% of the total, amounting to 3.94 billion cubic metres. In the span of just one year, the share of LNG surged to 43% of the Group’s imports, with volumes soaring to 6.04 billion cubic metres. This remarkable 50% increase unequivocally establishes liquefied natural gas as the predominant foreign energy source for the ORLEN Group.

The primary gateway for LNG procured by ORLEN remains the President Lech Kaczyński Terminal in Świnoujście. To date, it has seen the arrival of 254 deliveries, totalling some 20 million tonnes of LNG. The majority of these cargoes have come from Qatar (127) and the United States (106), with supplementary contributions from Norway (13), Nigeria (3), Trinidad and Tobago (3), Egypt (1), and Equatorial Guinea (1).

The Group has also extended its capacity through the utilisation of the Klaipėda terminal in Lithuania since May 2022. To date, ten shipments, collectively amounting to nearly 655,000 tonnes of liquefied natural gas, have arrived at the Lithuanian port for the ORLEN Group. Following regasification, the gas makes its way into Poland via the Poland-Lithuania pipeline, while a portion of the fuel is destined for the Baltic markets.

In addition to expanding its dedicated fleet, the ORLEN Group is also enhancing its capacity to receive liquefied gas at domestic terminals. An August agreement with GAZ-SYSTEM marked a significant step, securing regasification capacity at the forthcoming Floating Storage Regasification Unit (FSRU), set to be positioned in the Gulf of Gdańsk. The infrastructure development is expected to boost the annual count of liquefied natural gas deliveries received by the ORLEN Group by up to 58.

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Indonesia: bp delivers first cargo from expanded Tangguh LNG facility offshore Indonesia

(WO) – bp, on behalf of the Tangguh production sharing contract partners, announced that the first cargo of liquefied natural gas (LNG) produced by the new third liquefaction train at the Tangguh LNG facility, in Papua Barat, Indonesia, has safely been loaded and sailed, to be delivered to Indonesia’s state-owned power generator PT PLN (Persero). This marks the start of full commercial operation of the expanded Tangguh LNG facility.


The start-up of Tangguh Train 3 will add 3.8 million tonnes per annum (MMtpa) of LNG production capacity to the existing two-train facility, bringing total plant capacity to 11.4 MMtpa. The first cargo of LNG produced by the new train sailed from Tangguh on Oct. 18 to be delivered to PLN’s regasification facility in Arun, Nanggroe Aceh Darussalam province, Indonesia.

Dwi Soetjipto, chairman of SKK Migas, Indonesia’s oil and gas regulatory agency, said, “With its expanded production capacity, the Tangguh facility will play a vital role in helping to meet Indonesia’s growing energy demand, total gas production at Tangguh is expected to account for over a third of national gas production.”

“Tangguh is the largest LNG producer in Indonesia and the production from Tangguh’s three-train operation will significantly contribute to the national gas production target of 12 Bcfgd by 2030.”

In addition to the new train, the Tangguh expansion project included construction of two offshore platforms, 13 new production wells, an LNG loading facility, and supporting infrastructure. At its peak, more than 13,500 workers were involved in the project’s development at the remote site, with a total of more than 155 million workhours spent to complete the project.

Anja-Isabel Dotzenrath, bp’s EVP, gas and low carbon energy said, “Tangguh is important both to bp and to Indonesia. It is expected to account for more than a third of the country’s gas production and make a significant contribution to meeting the country’s growing needs for reliable and affordable energy. For bp, building our gas and LNG business is central to our strategy as we transform to an integrated energy company, investing in today’s hydrocarbon energy system as well as growing new lower carbon businesses.”

The Tangguh expansion is the third major project start-up for bp globally in 2023, following start of production from the Mad Dog II project in the US Gulf of Mexico and from the MJ field off the east coast of India.

Since beginning operations in 2009, Tangguh has worked to create positive social and economic impacts through comprehensive community development programs. Train 3 will further enhance this, with a portion of the gas committed for electrification in Papua Barat, and the project aims to continue to increase the proportion of Papuans in Tangguh’s workforce from 73% today to meet its commitment of 85% by 2029.

Tangguh LNG is located in Teluk Bintuni Regency in the Papua Barat Province of Indonesia. It has been in operation since 2009 and now consists of offshore gas production facilities supplying three 3.8 MMtpa liquefaction trains.

The Tangguh expansion project involved 17,500 tonnes of structural steel (more than the weight of two Eiffel Towers) and used 70,000 m3 of concrete (equivalent to the volume of 28 Olympic-sized swimming pools).

With Train 3 completed and operational, the Tangguh partners are making progress towards next planned phase of development at Tangguh – the UCC project that includes the adoption of carbon capture utilization and storage (CCUS) technology to help reduce CO2 emissions.

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

US: Biden awards $7 billion for clean hydrogen hubs across the country to help replace fossil fuels

His goal is to establish seven regional hydrogen hubs to help replace fossil fuels such as coal and oil with cleaner-burning hydrogen as an energy source for vehicles, manufacturing and generating electricity. Large-scale clean energy projects from Pennsylvania to California have been selected by the Biden administration for a $7 billion program to kickstart development and production of hydrogen fuel, a key component of President Joe Biden’s agenda to slow climate change.


His goal is to establish seven regional hydrogen hubs to help replace fossil fuels such as coal and oil with cleaner-burning hydrogen as an energy source for vehicles, manufacturing and generating electricity

Biden is expected to make the official announcement during an economic-themed visit to Philadelphia on Friday.

The White House calls clean hydrogen “essential to achieving the president’s vision of a strong clean energy economy” and net-zero greenhouse gas emissions in the U.S. by 2050.

“As a clean fuel, hydrogen complements the role played by other clean energy sources, like wind and solar, to help the U.S. reduce emissions in energy-intensive sectors of the economy: steel and cement production, heavy-duty transportation, and shipping,” the White House said in a statement.

The seven hubs, which include projects in 16 states, will spur more than $40 billion in private investment and create tens of thousands of good-paying jobs, the White House said, including many high-paying union jobs.

There were 23 finalists for the hydrogen fuel program. The projects selected are based in California, Washington, Minnesota, Texas, Pennsylvania, West Virginia and Illinois. All but the California and Texas hubs include projects in multiple states. Pennsylvania has projects in two separate hubs.

The infrastructure law Biden signed in 2021 included billions of dollars to develop so-called clean hydrogen, a technology that industry and clean-energy advocates have long pushed as a way to reduce planet-warming greenhouse gas emissions produced by fossil fuels.

Some environmentalists call hydrogen a false solution because it frequently relies on natural gas or other fossil fuels as feedstocks.

Energy companies say fossil fuels can serve as feedstocks if the projects capture the carbon dioxide produced and keep it out of the atmosphere, a technology that has yet to be produced at commercial scale.

States and businesses have been competing for federal dollars in the new Energy Department program, which will create regional networks of hydrogen producers, consumers and infrastructure. The intent is to accelerate the availability and use of the colorless, odorless gas that already powers some vehicles and trains.

Among those selected were the Appalachian Regional Clean Hydrogen Hub, based in West Virginia, and the Philadelphia-based Mid-Atlantic Clean Hydrogen Hub. Pennsylvania, a battleground state of the highest importance to the Democratic president in next year’s election, is in line to benefit from both projects.

Biden has made Philadelphia a regular stop for both official and campaign events, and partners in the proposed Philadelphia-area hub have labor unions that are key Biden supporters. The West Virginia-based hub includes major Pittsburgh-based natural gas companies that are active in the region’s prolific Marcellus Shale reservoir, including the parent company of the operator of the controversial Mountain Valley Pipeline in West Virginia and Virginia.

Sen. Joe Manchin, a West Virginia Democrat who muscled approval of the $6.6 billion pipeline through Congress in an unusual agreement with the White House this year, hailed the Appalachian hub.”This means West Virginia will be the new epicenter of hydrogen in the United States of America,” he said of the hub, which will receive up to $925 million in federal spending. “West Virginia will be on the leading edge of building out the new hydrogen market while bringing good-paying jobs and new economic opportunity to the state.”The Appalachian hub will extend to Ohio and includes a $1.6 billion facility under construction in northern Pennsylvania that is working to produce near-zero emissions hydrogen from natural gas.”This is a big, big deal for … Appalachia in particular, because these facilities are all based in areas where coal was king,” said Perry Babb, president of KeyState, an owner and developer of the Pennsylvania site.

Partners in the Appalachian hub say it could produce hydrogen from methane using heat, steam and pressure while capturing the carbon dioxide it would generate.

The Mid-Atlantic hub, which includes New Jersey and Delaware, will receive $750 million and will make hydrogen through electrolysis – splitting water molecules using renewable energy sources such as wind and solar power, as well as nuclear power.

The two largest projects are in California and Texas and will each receive up to $1.2 billon.

The Alliance for Renewable Clean Hydrogen Energy Systems in California will produce hydrogen from renewable energy and biomass. The project is intended to provide a blueprint for decarbonizing public transportation, heavy duty trucking and port operations – key emissions drivers in the state and major sources of air pollution.

The Gulf Coast Hydrogen Hub will be centered in Houston, long the energy capital of the U.S., and plans large-scale hydrogen production from both natural gas and renewables.

The Minnesota-based Heartland hub, which includes projects in North and South Dakota, will receive $925 million as it seeks to decarbonize fertilizer used in agriculture and advance use of clean hydrogen in electric generation and for cold climate space heating. It also plans to offer equity ownership to tribal communities and local farmers.

The Midwest hub in Illinois, Indiana and Michigan will receive up to $1 billion and will use hydrogen in steel and glass production, power generation, heavy-duty transportation and sustainable aviation fuel. The hub plans to use renewable energy, natural gas and nuclear energy.

The Pacific Northwest hub, based in eastern Washington, will extend to Oregon and Montana and will use hydropower and other renewable resources to produce clean hydrogen.

Sen. Patty Murray, D-Wash., called the $1 billion hub “great news for the Pacific Northwest,” adding that it will create thousands of jobs and “make sure that Washington plays a leading role in growing the green hydrogen economy.

”Nearly every state had joined at least one proposed hub, and many have been working together, hoping to reap the economic development and thousands of jobs they would bring. Big fossil fuel companies, renewable energy developers and researchers in university and government labs are involved, too.Environmental groups are skeptical, arguing that while hydrogen is a clean-burning source of power, it takes a great deal of energy to produce. When it’s made with electricity from coal or natural gas, it has a bigger carbon footprint than simply burning the source fuel.”Hydrogen is another bait-and-switch from an administration that continues to break its promises to aggressively tackle climate change and help communities achieve a just, equitable transition to renewable energy,” said Silas Grant, a campaigner with the environmental group Center for Biological Diversity.

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Australia’s green hydrogen hour has arrived

Green hydrogen could be a fossil fuels replacement in some sectors if Australia takes the immediate steps to embrace it. In a world grappling with the complex problem of reducing carbon emissions to limit global warming, the universe’s most-abundant element has the potential to unlock part of the puzzle.


Hydrogen might provide an effective decarbonisation solution for some industries — but only if it is made in a way that does not release emissions. 

Australia is ideally placed to help make that happen if it is prepared to seize the opportunity.

The United Nations Climate Change Conference (COP28) begins in November — a critical event in the effort to reduce carbon emissions to help limit global warming to the internationally agreed target of 1.5 degrees Celsius.

Zero-emissions hydrogen, produced using renewable energy and known as ‘green’ hydrogen, could replace fossil fuels in sectors where renewable electricity is not a feasible substitute, like heavy industries, shipping and aviation. It could also provide countries with new export opportunities. 

Many countries have begun developing hydrogen strategies, but more work is needed to ensure global hydrogen supply chains are developed at the scale and pace needed. 

With some of the world’s best renewable energy resources and located near large energy users in Asia, Australia is well placed to make the most of green hydrogen trade opportunities. 

At the same time, ensuring the country has enough supply to achieve its own domestic decarbonisation is vital — to achieve emission reduction targets, and to safeguard Australian industries in a decarbonising global economy.  

While hydrogen is already used today in refineries and as a chemical feedstock in industrial processes, almost all of it is ‘‘brown or “grey’’ hydrogen derived from emissions-producing coal or natural gas.

For hydrogen to be effective in decarbonisation, countries need to produce and use zero-emissions hydrogen.

Green hydrogen is made by using renewable electricity to split water molecules into hydrogen and oxygen. The process, known as electrolysis, is currently more expensive than producing brown or grey hydrogen and requires an electrolyser, a source of water and large amounts of renewable electricity.

The price is driven by electrolyser costs and the price of renewable electricity. 

Countries with good renewable energy resources might have a competitive advantage in producing green hydrogen, providing them with a new, green export opportunity.  

Shipping hydrogen is also expensive and inefficient compared with other fuels.  

It first has to be compressed or liquefied by cooling it to minus-253 degrees Celsius. 

Converting the hydrogen to a different fuel, such as ammonia or methanol, could make export easier because ammonia and methanol are easier to store and transport and are already traded globally. 

Green hydrogen can be converted to “green” methanol by reacting it with carbon dioxide captured from biomass sources, while ammonia can be produced in a process using green hydrogen and nitrogen. 

Ammonia can be used directly or can be converted back to hydrogen once it reaches its destination, although with additional energy and processing requirements. 

To develop large-scale green hydrogen production and trade, action is required at a global level to build demand for green hydrogen, preventing locked-in fossil fuel-based hydrogen production. 

This, along with reducing the cost of green hydrogen production and ensuring supply-chain transparency across borders, can unlock growth opportunities.

Countries rich in renewable energy resources, or looking to diversify their energy exports, have focused on developing hydrogen export capabilities.

The International Energy Agency estimates that 16 million tonnes of hydrogen could be exported by 2030, including hydrogen exported as different hydrogen-based fuels. There are 41 countries with national hydrogen strategies. 

In 2020, Japan developed the world’s first liquid-hydrogen import terminal and other countries are following suit.    

Australia is reviewing its National Hydrogen Strategy, aiming to become a global leader in hydrogen by 2030.

The Australian government has announced funding for clean hydrogen development through the Hydrogen Headstart program and is developing the Guarantee of Origin scheme, which could require hydrogen producers to prove the emissions intensity of their operations, ensuring that hydrogen produced is zero-emissions.  

It has also established international partnerships to advance the development of a global clean hydrogen industry. In 2022, Australia exported the world’s first shipment of liquid hydrogen to Japan, using hydrogen produced from coal and biomass, meaning it was not emissions-free.  

Domestic supply is also an important consideration. Analysis by Climateworks Centre and CSIRO as part of the Australian Industry Energy Transitions Initiative shows that Australia could need as much as 2.2 million tonnes of hydrogen each year by 2050 to decarbonise its domestic industries.

Getting there will mean moving from pilot studies to large-scale production. And it will require a lot of renewable energy.

To keep the cost of hydrogen low, the country will need to ensure renewable electricity generation, transmission and storage costs are low. Robust system planning will be needed for an efficient energy system that considers demand for electricity and hydrogen.

It will also need a workforce equipped with the right skills.

By 2050, at least 168,000 workers could require training in skills specific to the renewable energy industry, including hydrogen. Current vocational education training offerings in renewable energy generation and storage are not meeting demand.

These actions need to start now if Australia is to seize the economic opportunities provided by hydrogen, while also playing its part in reducing emissions and limiting global warming. 

Tyra Horngren is a Senior Analyst at Climateworks Centre, where she worked as part of the Australian Industry Energy Transitions Initiative. Tyra holds a PhD in chemistry from the University of Melbourne.  

The Australian Industry Energy Transitions Initiative received funding from the Australian Renewable Energy Agency.


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