NGS’ NG/LNG SNAPSHOT – October 1-15, 2021

National News Internatonal News

NATIONAL NEWS

City Gas Distribution & Auto LPG

CGD network may cover 70% of India’s population by 2030

Gas demand will continue to grow in India in the medium term buoyed by increasing coverage of the city gas distribution (CGD) network, according to analysts.

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As much as 70% of the population is expected to come under the CGD network by 2030, up from 20-30% at present. Improving gas pipeline connectivity with the doubling of the network compared to the current 50% utilization, an estimated 15% growth over two years in production of domestic gas, which is cheaper than liquefied natural gas (LNG) is expected to incentivize conversion to gas from fossil fuels. “With the completion of expansion of CGD network bid out during round 9 and 10, we expect population coverage to increase to 71% from <20% levels in 2014. From an area perspective as well, coverage will likely go up to 53% from <10% levels in 2014,” HSBC said in a 1 October report. Within the CGD network, expansion in domestic piped natural gas (PNG) connections and increase in gas usage as transportation fuel through compressed natural gas (CNG) looks more promising. Over the last eight years, India’s natural gas demand has largely remained stagnant. However, gas consumed by CGD recorded a compound annual growth rate of 8% over FY11-21 to 25 million metric standard cubic meters per day (mmscmd), boosting its share to 16% of India’s total gas demand from 9% in FY12.

https://www.livemint.com/industry/energy/cgd-network-may-cover-70-of-india-s-population-by2030-11633544031967.html

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Torrent Gas begins gas supply in Gorakhpur, UP

Availability of natural gas is likely to attract more industries in Gorakhpur bringing in new opportunities and development in the region. Jinal Mehta, director of Torrent Gas, said, Torrent Gas with presence in 15 districts across Uttar Pradesh is committed to the overall development of the state and

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has planned an investment of Rs 3,300 crore by FY26. Torrent Gas Ltd said it has commenced supply of natural gas to domestic households and industries in Uttar Pradesh’s Gorakhpur town. The state’s Chief Minister Yogi Adityanath inaugurated Phase 1 of the city gas distribution (CGD) network in Gorakhpur, the firm said in a statement.

Torrent Gas, the CGD utility of the diversified Torrent Group with group revenues of Rs 21,000 crore, has been authorised by the Petroleum and Natural Gas Regulatory Board (PNGRB) to establish and operate the CGD network and provide compressed natural gas (CNG) and PNG in 15 districts across Uttar Pradesh, including Gorakhpur.

https://www.devdiscourse.com/article/headlines/1754191-torrent-gas-begins-gas-supply-in-gorakhpur

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GAIL organizes awareness sessions on CGD and CNG as part of ‘Azadi ka Amrit Mahotsav’

As part of the ‘Azadi ka Amrit Mahotsav’ celebrations, GAIL (India) Limited organized an awareness programme on October 1, to spread information about City Gas Distribution and Compressed Natural Gas.

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The programme was held under the aegis of the Ministry of Petroleum and Natural Gas. It was conducted by GAIL Training Institute through hybrid mode (both physical and online) and was webcasted among GAIL employees, senior Ministry officials, employees of Oil & Gas PSU employees and students of various universities.

https://www.freepressjournal.in/corporate-gallery/gail-organizes-awareness-sessions-on-city-gas-distribution-and-cng-as-part-of-azadi-ka-amrit-mahotsav

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Piped cooking gas, CNG price hike in Delhi, 2nd this month

Indraprastha Gas Ltd (IGL) has announced a hike in prices of compressed natural gas (CNG) and piped natural gas (PNG) in Delhi and neighbouring cities of Noida, Greater Noida, Ghaziabad, Gurugram, and others. The new rates will be come into effect from 6 am on October 13.

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After the price hike, CNG price in Delhi now stands at ₹ 49.76 per kg while PNG will be sold for ₹ 35.11 per Standard Cubic Meter (SCM), the gas distribution company said.

IGL mentioned that the PNG price will now be ₹ 34.86 per SCM in Noida, Greater Noida and Ghaziabad. And, CNG will be sold at ₹ 56.02 per kg.

https://www.ndtv.com/business/cng-piped-natural-gas-prices-hiked-in-delhi-other-cities-check-new-rates-2573643

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Prices of CNG, piped cooking gas hiked for second time in 10 days in Mumbai

The price of CNG will be increased by ₹2.30 per kg and will be priced at ₹57.54 per kg from October 14. The domestic PNG will increase by ₹1.11 standard cubic meter (SCM) and will be available at ₹33.93/SCM in slab 1 and ₹39.53 /SCM in slab 2, respectively.

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Earlier on October 5, the prices of CNG and domestic PNG were hiked and were priced at ₹54.57/kg, while PNG was available at ₹32.67/SCM in slab 1 and ₹36.00 /SCM in slab 2. On October 1, the Centre increased the price for domestically produced natural gas from fields to USD 2.90 per million British thermal unit and for gas produced from difficult fields such as deep sea to USD 6.13 per mmBtu.

https://www.hindustantimes.com/cities/mumbai-news

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Despite getting an extra year, Kochi city gas project far from over

The fate of the Kochi city gas project which was started in 2016 with much hype is in limbo. The renewed tenure of the project expired in September 2021 and the number of piped natural gas (PNG) connections given so far is less than 4,500, the target is 40,000 though.

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A couple of months ago, Indian Oil Adani Gas Private Ltd (IOAGPL), the implementing agency, had given an application for extending the tenure to March 2022. But the Petroleum and Natural Gas Regulatory Board (PNGRB) hasn’t given the nod for extending the deadline so far. The IOAGPL had given similar request just before the tenure of the project expired in October 2020 and the PNGRB gave an extension up to September 2021. But the IOAGPL failed to complete the project even after getting an extension of one year. The project was launched in Kochi by the then chief minister Oommen Chandy in February 2016. The tussle between the IOAGPL and various local bodies is another reason for delay in implementing the project. There had been dispute between IOAGPL and various local bodies over digging up roads for laying the pipeline as part of the PNG distribution network. As the progress of the project continued to be around five percent even after three years of starting the work, the then district collector S Suhas had convened a meeting of IOAGPL and representatives of Thrikkakara municipality in January 2020. As per the decision of the meeting, the IOAGPL should have completed the pipe-laying works in all the 43 wards in Thrikkakara municipality by April 30, 2020.

https://timesofindia.indiatimes.com/city/kochi/despite-getting-an-extra-year-city-gas-project-far-from-over/articleshow/86761547.cms

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Electric Mobility/ Hydrogen/ Bio- Methane

Scientists develop reactor for cost-effective production of hydrogen

A team of scientists has, for the first time, developed a reactor that produces a substantial amount of hydrogen using sustainable sources like sunlight and water, which is a cost-effective and sustainable process, the Department of Science and Technology (DST) said.

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Development of large-scale prototype reactors with photo catalysts (suspended powders) and a successful use of those in large-scale hydrogen production is under process, it said in a statement. The development assumes significance as Prime Minister Narendra Modi, during his Independence Day speech, had announced the launch of a National Hydrogen Mission to accelerate plans to generate the carbon-free fuel from renewables as he set a target of 2047 for the country to achieve self-reliance in energy. India has set a target of 450 GW of renewable energy by 2030. To achieve this, researchers are working towards renewable energy solutions that should be sustainable with a limited carbon footprint. One of the most economical ways to achieve this is to produce hydrogen at a large scale through photocatalytic water splitting. It is the long-term persistent solution for the growing renewable energy needs and a low-cost economic process that will benefit the society in the longer term.

https://www.theweek.in/news/sci-tech/2021/10/01/scientists-develop-reactor-for-cost-effective-production-of-hydr.html

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CNG to HCNG model ‘capital-intensive’; Delhi govt unlikely to scale up pilot project

Almost a year after Delhi started a trial of 50 Hydrogen-enriched CNG buses, the government is likely to abandon plans to scale it up, with officials saying the reduction in nitrogen oxide (NOx) levels is debatable and the return and investment is not commensurate.

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The city government had started a six-month trial of the Hydrogen-enriched Compressed Natural Gas (HCNG) in a fleet of 50 cluster buses with the inauguration of India’s first semi-commercial HCNG plant and dispensing station at the Rajghat depot here. The Delhi transport department had provided Rs 15 crore for the setting up of the plant and conducting a study on the fuel to ascertain its benefits in terms of economy and emissions.

 A presentation was made before officials of the environment and transport departments. There is a divergence of views between the Indian Oil Corporation Limited (IOCL) and Indraprastha Gas Limited (IGL) on the matter, officials claimed. The IOCL, which has developed and patented the technology for the production of the fuel, had earlier estimated that the cost escalation for shifting to HCNG buses will be about 72 paise per kilometre. Delhi has around 6,750 state-run buses. Of this, 3,760 are owned by the Delhi Transport Corporation, while the rest are cluster buses, operated by private entities for the state transport department.

https://auto.economictimes.indiatimes.com/news/commercial-vehicle/mhcv/cng-to-hcng-model-capital-intensive-delhi-govt-unlikely-to-scale-up-pilot-project/86641895

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Coal Ministry asks Coal India to invest in electric vehicles, charging stations

Coal India is the world’s largest coal mining company by production and accounts for over 80% of India’s output of fuel. The Coal Ministry has asked state-run Coal India to diversify its interests to areas such as electric vehicles and charging stations,

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according to an agenda document on the ministry’s website. “Coal India must diversify its business and must explore prospects in sunrise industries electric charging pods, electric vehicles etc,” the coal ministry said in a document titled “Ministry of Coal’s agenda for 2021-22”.

Coal India is the world’s largest coal mining company by production and accounts for over 80% of India’s output of the fuel. India is the second-largest importer, consumer and producer of coal, and has the world’s fourth-largest reserves. It mainly imports from Indonesia, Australia and South Africa.

The federal government-controlled miner has already announced plans to invest in solar wafer manufacturing and power generation, coal gasification, extraction of coal bed methane and setting up aluminum smelters. India has also asked the miner to consider participating in foreign tenders seeking coal after meeting domestic demand.

https://www.financialexpress.com/auto/electric-vehicles/coal-ministry-asks-coal-india-to-invest-in-electric-vehicles-charging-stations/2344030/

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Bio-CNG from waste to fuel Bhopal buses

The Bhopal Municipal Corporation, NTPC and Bhopal RNG Private Limited signed an MoU for setting up of 200 tonnes per day wet waste to bio-CNG plant and a 400 tonnes per day dry waste torrefied charcoal plant.

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The MOU was signed in the presence of chief minister Shivraj Singh Chouhan. At present, about 800 tonnes of garbage is collected from Bhopal city every day. Municipal Corporation Bhopal spends Rs 333 per metric tonne for its disposal. With the establishment of this plant, Bhopal RNG Private Limited will give Rs 83 lakh to Bhopal Municipal Corporation as royalty every year for the next 20 years and bio-CNG will be provided at the rate of Rs 5 less than the market rate. The Bio-CNG generated from the plant will be used in city buses.

The construction of torrefied charcoal plant with 400 tonnes per day dry waste will be based on built on operate model. Establishment and operation-maintenance work of the plant is to be done by NTPC itself for 25 years. It is estimated that Rs80 crore will be spent on its establishment in Adampur Chhavani in an area of15 acres, which will be fully borne by NTPC. The torrefied charcoal produced will be used in power plants of NTPC. There will be a saving of Rs. 4.86 crore every year on solid waste disposal to Municipal Corporation Bhopal from the plant.

https://timesofindia.indiatimes.com/city/bhopal/bio-cng-from-waste-to-fuel-bhopal-buses/articleshow/86981903.cms

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Natural Gas/ Pipelines/ Company News

CNG pipeline leakage in Prayagraj causes panic

The area was cordoned off and traffic was diverted during the repairing of the CNG pipeline which lasted around two hours following which the leakage was contained.

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A leakage in compressed natural gas (CNG) pipeline was reported in Civil Lines area of Sangam city. Locals came out of their houses after smelling the gas. The fire department was immediately informed after some locals experienced difficulty in breathing. Civil Lines police also reached the spot and called the authorities of the private company which own the pipeline. Fire officials said two fire tenders were sent to the spot under a fire safety officer. It was found that the leakage was in the pipeline. A stone had fallen on the pipeline in the chamber causing some damage to it.

https://www.hindustantimes.com/cities/lucknow-news/cng-pipeline-leakage-in-prayagraj-causes-panic-101633027176701.html

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Oil discovers thermogenic gas reserve in Meghalaya’s East Khasi Hills

Oil India Limited (OIL) has found a thermogenic gas reserve with high methane content in Umphniang village, near Dholai, Dangar in Meghalaya’s East Khasi Hills District. Following a visit by a team of OIL to

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Umphniang village to collect representative samples of a reported gas seepage in the area, Mawsynram MLA Himalaya Muktan Shangpliang informed the Meghalaya Assembly about the occurrence of hydrocarbon seepage in certain areas of his constituency.

https://www.news18.com/news/india/oil-discovers-thermogenic-gas-reserve-4316081.html

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Policy Matters/ Gas Pricing/Others

Domestic gas price up 62%, to hit user industries, consumers; ONGC, RIL gain

The domestic gas price is linked to the weighted average price of four global benchmarks (US, UK, Canada and Russia). Spot US LNG prices have risen from around $2.4/mBtu in April to $4.2/mBtu in August.

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Rising prices coincide with gas production being ramped up at the difficult fields of Reliance Industries and BP’s ultra-deep-water KG-D6 Block in the Krishna Godavari basin and ONGC’s U1B deep-water gas located in KG-DWN 98/2 block on the east coast. The Union government has raised the price of domestically produced gas by 62% to $2.90 per million British thermal units (mmBtu) for the period October 2021-March 2022 as lower production amid higher demand increased North American and European gas prices. The ceiling price for gas to be produced from difficult fields — which have higher pricing and marketing freedom — has been raised by 69% to $6.13/mBtu.

The move could have adverse implications for use industries including power and fertilizers, could spike inflation and strain the country’s current account. It may also impact farmers if the government doesn’t hike subsidy on fertilizers to offset the rise in prices of imported urea and DAP. City gas units may pass on the price hike to consumers. The domestic gas price is linked to the weighted average price of four global benchmarks (US, UK, Canada and Russia). Spot US LNG prices have risen from around $2.4/mBtu in April to $4.2/mBtu in August. The new prices will be effective for six months starting October 1.

https://www.financialexpress.com/market/commodities/domestic-gas-price-up-62-to-hit-user-industries-consumers-ongc-ril-gain/2341473/

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Only three bidders for 21 oil, gas blocks

India’s latest bid round for 21 oil and gas blocks attracted just three bidders, two of whom were state-owned explorers Oil and Natural Gas Corp (ONGC) and Oil India Ltd (OIL), according to upstream regulator DGH. As many as 21 blocks or areas were offered for exploration and production of oil and gas in the Open Acreage Licensing Policy (OALP) Bid Round-VI, for which bidding closed on October 6.

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Besides ONGC and OIL, Sun Petrochemicals was the only other company to have bid, according to ‘Summary of Bids Received against Offered Blocks’ posted by the Directorate General of Hydrocarbons (DGH). Of the 21 blocks on offer, 18 got a single bid and the remaining 3 blocks had two bidders. ONGC, India’s largest oil producer, bid for 19 out of the 21 blocks on offer while OIL bid for two. ONGC was the sole bidder in 16 blocks and OIL was the only bidder in the two areas it sought for.

https://www.tribuneindia.com/news/business/only-three-bidders-for-21-oil-gas-blocks-323975

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LNG Development and Shipping

India’s LNG import falls 13.6% in September

India’s import of liquefied natural gas (LNG) recorded a drop of 13.2% year-on-year (y-o-y) to 1.9 million tonnes (MT), or 2,517.5 million standard cubic meter (mscm) in September, according to a recent note published by Credit Suisse. With this,

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LNG import in April-September stood at 11.8 MT, marginally lower than 11.9 MT recorded in the corresponding quarter a year ago. Import volumes fell with global spot LNG prices climbing to record highs amid low stocks, high demand and limited supply of fuel. Domestic natural gas consumption had increased 10.1% y-o-y to 26,660 mscm in the April-August period and demand figures for September are not available yet.

The drop in LNG imports coincides with gas production ramping up at the difficult fields of Reliance Industries and BP’s ultra-deep-water KG-D6 Block in the Krishna Godavari basin and ONGC’s U1B deep-water gas located in the KG-DWN 98/2 block on the east coast. Though the ceiling price for gas to be produced from these difficult fields has been raised by 69% to $6.13/mBtu, it remains much lower than imported LNG rates. Import dependency of natural gas, thanks to rising LNG prices and higher domestic production, has dropped from 54% in April-August, 2020 to 49% in the corresponding quarter this year.

https://www.hellenicshippingnews.com/indias-lng-import-falls-13-6-in-september/

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Pricey LNG may hurt India’s transition to a gas economy

A 15-fold increase in spot liquefied natural gas (LNG) prices over the past year could hurt its imports and consumption, as well as India’s progress towards becoming a gas economy, according to industry players and analysts.

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Asia-delivered spot LNG prices have risen to above $50 per mmBtu (million metric British thermal unit) from under $2 per mmBtu in May 2020. With winters setting in and demand for natural gas on the rise globally, analysts expect spot LNG prices to climb further by December. In comparison, LNG procured through long-term contracts cost around $9-10 per mmBtu. “We see refineries, power companies, MSMEs and steel companies getting impacted with the record high prices. While some may switch to liquid and alternative fuels, our growth and plans of adopting LNG as a clean fuel will get impacted,” the chief executive of a city gas distribution company said on condition of anonymity. Being a net gas importer and with domestic gas prices linked to the Henry Hub and Japan Korea Marker Spot LNG prices, which are widely used as a benchmark in the global spot market, India faces a direct impact from this sharp increase.

https://www.livemint.com/industry/energy/pricey-lng-may-hurt-india-s-transition-to-a-gas-economy-11633885743340.html

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INTERNATIONAL NEWS

Natural Gas / Transnational Pipelines/ Others

France: France to block further natural gas and electricity price rises

France will move to ease the cost of rising prices for consumers by blocking further natural gas price hikes and by preventing a planned increase in electricity tariffs scheduled in February, Prime Minister Jean Castex said.

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Castex said that rise would go through but that the prices from then on would remain at the same level until world prices go down, something which should occur in March or April. Energy prices have been rising sharply around the world over the last few months, adding to inflationary pressures and threatening to dent consumer confidence.

https://energy.economictimes.indiatimes.com/news/power/france-to-block-further-natural-gas-and-electricity-price-rises/86669663

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US: Rising natural gas prices may pose opportunity for industry, financial pain for consumers

Low supplies, higher demand lead to doubling of U.S. prices, skyrocketing increases in other countries. The recovering economy is driving up natural gas prices, which could boost energy companies’ bottom lines but hit consumers in the wallet.

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In Europe and Asia, the prices have soared to more than $20 per million BTU. Analysts chalk up the surges to a number of factors: pent-up demand from earlier in the coronavirus pandemic; a move away from coal to natural gas; and slumping supplies because of less drilling.

In the United States, a net exporter of natural gas, the prices could spur more drilling. Colorado, the country’s No. 6 oil producer and No. 7 natural gas producer, could see a rebound in production. On the flip side, households and businesses could see a jump in heating and electric bills. Xcel Energy-Colorado, the state’s largest electric utility, is seeking regulators’ approval for a rate increase, citing high prices and low supplies.

https://www.denverpost.com/2021/10/01/natural-gas-prices-rising-oil-colorado/

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UK: Natural gas market soars to record heights

European and UK gas prices surged to record peaks, energized by fears of runaway demand in the upcoming northern hemisphere winter. Europe’s reference Dutch TTF gas price hit 162.12 euros per megawatt hour and UK prices leapt to 407.82 pence per therm in morning deals.

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Soaring gas prices coupled with oil which has struck multi-year highs — have fuelled fears over spiking inflation and rocketing domestic energy bills. Gas demand is also heightened in Asia, particularly from China, while key Russian exports are falling. However, Russian President Vladimir Putin declared that Europe was to blame for the current energy crisis, after soaring gas prices spurred accusations that Moscow is withholding supplies to pressure the West.

https://www.brecorder.com/news/40125084/natural-gas-market-soars-to-record-heights

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Egypt: Egypt to supply Lebanon with natural gas ‘within a few weeks’: Minister

Egypt is set to commence with exporting gas to Lebanon soon as part of a previously agreed upon roadmap to ease Lebanon’s power crisis, the two countries’ energy ministers said after two-day talks in Cairo.

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The two-day consultations in Cairo aimed to draw up a plan for supplying Lebanon with Egyptian gas, including all technical, commercial, and contractual aspects, the Egyptian minister explained.

Egypt achieved self-sufficiency in natural gas by the end of September 2018, with the current natural-gas production having reached 7.2 billion cubic feet per day. The boom in the North African country’s gas production has been supported by huge gas discoveries and production, the biggest of which is the giant Zohr field in the Mediterranean, which was discovered in 2015 and is believed to be the largest-ever gas discovery in Egypt and the Mediterranean. Egypt plans to use its location on Europe’s doorstep to become a major supplier of liquefied natural gas (LNG) to the continent, which is transitioning away from other fossil fuels. Egypt has the infrastructure for the transport and handling of natural gas, with the main network of 7,000km of pipelines, as well as a distribution network of 31,000km, and 29 gas-treatment plants in addition to two LNG facilities.

https://english.ahram.org.eg/NewsContent/3/16/426364/Business/Energy/Egypt-to-supply-Lebanon-with-natural-gas-;within-a.aspx

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Russia: Russia’s Nord Stream 2: The Gas Pipeline That Germany Wants But Europe Doesn’t

The pipeline stretching from Russia to Germany has sparked fears of Russia becoming a bully in European geopolitics. Gas prices in Europe have risen by almost 600 percent in the past year due to surging demand that has not been met by a proportionate increase in supply.

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The deputy prime minister of Russia, Alexander Novak, said on 7th October, that the Nord Stream 2 gas pipeline’s approval by Germany could get gas prices back in control, reported The Guardian. This statement comes in the context of European politicians blaming Russia for limiting the supply of gas to European countries. Gazprom, an energy company whose majority shares are owned by the Russian state, is Europe’s largest supplier of gas and fulfils around 35 percent of Europe’s gas demands. European energy firms are complaining that Gazprom is limiting its supply to long-term contractual obligations and is not increasing the supply of gas to meet the rising demand, a policy that could curb gas prices in the continent.

https://www.thequint.com/explainers/russia-nord-stream-2-gas-pipeline-germany-wants-but-europe-does-not

Egypt: Egypt constructs gas pipeline in Western Desert

Egypt has started the construction of a gas pipeline in the Western Desert with an expected capacity of 15 million cubic feet of gas per day, the head of the General Petroleum Company (GPC), Nabil Abdel-Sadek. Abdel-Sadek made his remarks during a tour with Petroleum Minister Tarek El-Molla of the petroleum regions in the Red Sea’s Gulf of Suez and Ras Ghareb.

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The GPC, a state-owned company established in 1957, is engaged in the exploration, production and development of hydrocarbons. It works on 28 oil and gas fields nationwide. Egypt achieved self-sufficiency in natural gas by the end of September 2018, with the current natural gas production reaching 7.2 billion cubic feet per day. The boom in the country’s gas production has been supported by huge gas discoveries and production, the biggest of which is the giant Zohr field in the Mediterranean, which was discovered in 2015 and is believed to be the largest-ever gas discovery in Egypt and the Mediterranean.

https://english.ahram.org.eg/NewsContent/3/16/426631/Business/Energy/Egypt-constructs-gas-pipeline-in-Western-Desert.aspx

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US: Tokyo Gas, Project Canary team up to certify Haynesville natural gas

A natural gas certification pilot is set to begin this month (October) at Tokyo Gas Ltd.’s properties in the Haynesville Shale of Texas and Louisiana as part of an agreement with Project Canary. Project Canary would install continuous emissions monitors

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and carry out its proprietary TrustWell operational certification on several well locations operated by Tokyo Gas subsidiary TG Natural Resources LLC. The companies jointly said the project “aims to demonstrate that markets for U.S. natural gas produced with the highest environmental performance standards are expanding.”

The TrustWell operational analysis program includes 600 unique data points across 24 categories, providing third-party verification of operational responsibility. The news comes as natural gas buyers around the world are pressuring suppliers to lower their carbon footprints. Certification and production of what is sometimes called “responsibly sourced gas” (RSG) has recently emerged as a popular solution. On the liquefied natural gas (LNG) side, Project Canary has said it is in talks to provide certification to U.S. export terminals. Earlier this year, Cheniere Energy Inc. announced its intention to provide emissions certificates for each of its cargoes starting next year.

Tokyo Gas has global operations across the natural gas value chain, including production, LNG procurement, shipping and downstream operations.The company is Japan’s largest provider of city gas, serving more than 11 million customers in Tokyo and the surrounding region. Tokyo Gas operates more than 315,400 net acres in East Texas and North Louisiana with access to the Cotton Valley formation as well as the Haynesville. It also owns 130,000 net acres in the Barnett Shale of North Texas and another 34,000 net acres in the Eagle Ford Shale of South Texas.

https://www.naturalgasintel.com/tokyo-gas-project-canary-team-up-to-certify-haynesville-natural-gas/

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Global LNG Development

Asia is winning the bidding war for natural gas supply

Just as natural gas prices surged to records in Europe and Asia, commodity-hungry China secured a major LNG supply deal with top exporter Qatar. Chinese authorities are reportedly ordering state energy enterprises to secure supply for the winter “at all costs. “

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The gas crisis in Europe is pushing Asian spot LNG prices up, but Asia is winning the bidding war so far. China and Asia are winning the bidding war for natural gas supplies as the northern hemisphere goes into the winter season with woefully low inventories and recovering demand after the pandemic.

Just as natural gas prices surged to records in Europe and Asia, commodity-hungry China secured this week a major long-term liquefied natural gas (LNG) supply deal with top exporter Qatar. China is looking to secure additional volumes of long-term supply of gas while it is also bidding up LNG spot cargoes, together with wider Asia, leaving Europe with fewer spot supply and further exacerbating the European gas crisis.

https://oilprice.com/Energy/Natural-Gas/Asia-Is-Winning-The-Bidding-War-For-Natural-Gas-Supply.html

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Jakarta: PGN, KAI to build virtual pipeline system to develop Indonesia’s gas market

Pertamina’s gas subholding, PT Perusahaan Gas Negara (PGN), has announced its cooperation with railway operator PT Kereta Api Indonesia (KAI) for the transportation of liquefied natural gas (LNG).

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The cooperation between the two state-owned enterprises is aimed at developing the domestic gas market and helping the government reach the targeted 22 per cent share of gas in the national energy mix by 2025.

PGN would conduct trials this year for the use of KAI railway lines, PGN president director Haryo Yunianto said, adding that KAI was currently mapping out the loading and unloading paths and methods. An agreement on the cooperation had been signed on July 14, Haryo said, and a team of representatives from PGN and KAI had been set up on Sept 16 to conduct a study and handle the subsequent implementation.

The collaboration, he explained, was part of state-owned oil and gas company Pertamina’s larger effort to develop physical and virtual infrastructure to push domestic natural gas usage.

Putra Adhiguna, an energy finance analyst with the Institute for Energy Economics and Financial Analysis (IEEFA), said whether the virtual pipelines would help meet gas demand would depend on the price of gas delivered to consumers.

https://www.thestar.com.my/aseanplus/aseanplus-news/2021/10/01/pgn-kai-to-build-virtual-pipeline-system-to-develop-indonesia039s-gas-market

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US: Alaska LNG would cut C02 emissions by 50% over coal, report says

Exporting Alaska’s natural gas to power-generating customers in Asia would roughly halve carbon dioxide emissions versus burning coal, according to a study commissioned by the agency leading the Alaska LNG Project.

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The 16-page report made public at the Alaska Gasline Development Corp.’s Oct. 7 board of directors meeting also concludes exports from the $38 billion Alaska LNG Project would ultimately result in fewer carbon dioxide emissions than Gulf Coast-based LNG projects for several reasons. AGDC leaders previously said they expected a pending review of the mega-LNG project’s lifecycle greenhouse gas emissions by the Department of Energy to show using Alaska’s gas overseas to displace coal-fired power generation would significantly reduce overall carbon emissions over what is largely the status quo.

The Energy Department announced in early July it would conduct the SEIS following a petition by the Sierra Club urging DOE officials to withdraw their approval of the project, which is based on the Federal Energy Regulatory Commission’s 2020 final Alaska LNG environmental impact statement. Representatives from the Sierra Club, the Fairbanks-based Northern Alaska Environmental Center and other environmental groups have been critical of the Alaska LNG Project for the carbon dioxide it would emit; instead insisting coal and other carbon-based fuels should be replaced with renewable energy sources. LNG industry players tout their product, relative to coal and oil, as a cleaner-burning “bridge fuel” that can support a longer energy transition as new renewable technologies and infrastructure are developed.

https://www.alaskajournal.com/2021-10-12/alaska-lng-would-cut-c02-emissions-50-over-coal-report-says

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Brazil: Brazil’s appetite for US LNG grows in third quarter as prices help alter trade flows

When the Asia Vision tanker docked in Brazil in March 2016, it was carrying the first LNG produced in the US from shale gas — a cargo that was described at the time as being sold at a market price.

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Five years later, amid record spot prices for shipments to Asia and Europe, Brazil, even with premiums compared with other fuel sources that it was paying, accounted for more LNG cargo deliveries from the US than any other country during the third quarter that ended Sept. 30, S&P Global Platts Analytics data show. Far behind Brazil were the world’s three biggest LNG importers — all in Asia — as market fundamentals aided a shift, at least temporarily, in trade flows from the US Gulf and East coasts. The latest run-up in prices, which may persist for a few more months, has been sparked by severe tightness in the European gas market coinciding with concerns in the Asia-Pacific region over LNG inventory levels ahead of winter.

https://www.spglobal.com/platts/en/market-insights/latest-news/lng/093021-brazils-appetite-for-us-lng-grows-in-third-quarter-as-prices-help-alter-trade-flows

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Qatar: Qatar orders new vessels for LNG expansion

Qatar’s state-owned QP has ordered four new LNG carriers from China’s Hudong Zhonghua shipyard, the first of several batches planned as part of a massive shipbuilding program to handle its coming gas capacity expansion.

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The order is worth more than 2.8bn Qatari Riyals ($770mn) and is Qatar’s first with a Chinese shipyard for LNG ships, QP said. It is also the first with Hudong “in connection with the agreement to reserve ship construction capacity that was executed in April 2020.”

Last year, QP reserved LNG carrier construction capacity at three South Korean shipyards as well as Hudong Zhonghua through to the end of 2027 to build as many as 100 new LNG carriers, a programme worth more than $19.2bn. QP’s subsidiary Qatargas currently operates a fleet of 45 Q-Flex and Q-Max LNG carriers.

https://www.argusmedia.com/en/news/2260017-qatar-orders-new-vessels-for-lng-expansion?backToResults=true

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Colombia: Colombian gas producers issue Pacific LNG alert

Colombian natural gas stakeholders have reiterated concerns about plans for the country’s second LNG (liquified natural gas) regasification plant, citing uncertainty about demand and costs. The comments follow a report by

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the comptroller’s office that highlighted a raft of alleged inconsistencies related to the project and raised the prospect of a 32% spike in consumer gas prices.

According to Pontón, Ecopetrol is focused on prioritizing local gas production from conventional onshore, offshore, and unconventional hydrocarbon basins. Andrés Sarmiento, president of Colombian natural gas association Naturgas, said industry regulator Creg and energy ministry planning unit UPME had so far failed to clarify key doubts related to the initiative. Earmarked for Colombia’s western port of Buenaventura, the Pacific LNG project is due to be completed in late 2026 at a cost of US$700mn. Under current plans, the plant would vaporize up to 400Mf3/d (million cubic feet per day) while storing up to 170,000m3. A 120km pipeline would connect the facility to a terminal in Yumbo, on the northern outskirts of Cali. A bidding process was relaunched in June, giving potential developers until October 21 to submit technical and economic proposals for the project.

https://www.bnamericas.com/en/news/colombian-gas-producers-issue-pacific-lng-alert

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Canada: LNG Canada construction hits halfway point

Construction on the first phase of the Royal Dutch Shell plc-led liquefied natural gas (LNG) export facility in British Columbia, known as LNG Canada, has hit the halfway point, with activity to accelerate in the coming months. In a notice posted on the LNG Canada website

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Wednesday, management said the project had “just surpassed the 50% completion mark,” adding things were “moving swiftly” toward commissioning and start-up.

Management also noted the project has been able to reach major milestones “safely and on schedule” despite the Covid-19 pandemic. Those milestones include raising the roof on its LNG tank and the arrival of its main cryogenic heat exchanger and two precooler units. Looking Sahead, the first liquefaction module is expected to arrive on-site in the next six-to-12 months, staff said in a video.

The project is expected to ship its first cargo around the middle of the decade. The LNG Canada consortium has recently been involved in a dispute with Canadian pipeline giant TC Energy Corp. over increased costs and delays on the TC-led Coastal GasLink system, which would supply feed gas to the facility.

https://www.naturalgasintel.com/lng-canada-construction-hits-halfway-point/

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Global LNG Market 2021 top industry trend and segments analysis upto 2027

The Global Liquefied Natural Gas (LNG) Market is anticipated to rise from 2021 to 2027, based on recent MRInsights.biz research. The research is based on a thorough examination of market dynamics, market size, barriers, limits, competition analysis,

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and government agencies. The study takes a broader view of several essential aspects that influence the global Liquefied Natural Gas (LNG) market’s growth. To help with the development of growth areas, market segments are divided and geographically examined. It makes it easier for providers to capture market opportunities.

The report covers an analysis of the market advancement in view of the market as well as broad applications, business sector regions, and the dominant organizations. Furthermore, the report contains a global Liquefied Natural Gas (LNG) market structure, business layout, product view, technical advancements, and market designs alongside the variables that can limit the advancement of the market. The geographical segments are defined using production and distribution information. The Liquefied Natural Gas (LNG) market is divided into several geographical regions

https://www.globalbankingandfinance.com/second-generation-biofuels-market-game-changing-trends-to-watch-and-strategical-moves-accordingly-by-key-players-solazyme-inbicon-abengoa-bioenergy-granbio/

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US: US LNG firm enters 13-year supply deal with Asian gas import group

A new liquefied natural gas (LNG) supply deal could point to huge potential market growth for U.S.-produced LNG in Asia. A subsidiary of Houston-based LNG infrastructure firm Cheniere Energy has signed a 13-year supply deal with Singapore’s ENN LNG.

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The agreement calls for ENN to purchase nearly 1 million metric tons of LNG per year from Cheniere beginning July 2022 through 2035. Cheniere owns and operates natural gas transport and pipeline systems culminating on LNG export terminals on the U.S. Gulf Coast. Natural gas is chilled to liquefy it and make it stable for shipping. LNG is shipped around the world and then deliver to re-gasification facilities, where it can be used as power generation, heating or transportation resource.

China is a key potential market for imported LNG as it works to shift its power generation mix from primarily coal to lower carbon emitting resources such as gas, nuclear and renewables. The nation’s vow to cap its emissions growth by 2030 is pushing China’s energy leaders to embrace natural gas, which emits about 50 percent less greenhouse gases than coal. Cheniere Energy has completed numerous LNG export terminals and is close to completing the sixth train at its Sabine Pass Gulf Coast terminal by the first half of 2022.

https://www.power-eng.com/gas/u-s-lng-firm-enters-13-year-supply-deal-with-asian-gas-import-group/#gref

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China: Sinopec’s new LNG terminal wins state nod, steps up winter supplies

China’s Sinopec Corp 0386.HK said it had secured state approval for a third major gas receiving terminal and pledged to boost winter supplies of liquefied natural gas as a power crunch cripples industrial activity in parts of the country.

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The state oil and gas firm also said it planned to import 24.2 billion cubic metres of LNG this winter and operate its existing terminals at full capacity. It did not give a comparitive figure.

Sinopec said its planned 6 million tonne per year LNG terminal to be built in Longkou in eastern China’s Shandong province had recently won state approval.This will add to Sinopec’s two operating terminals, in Qingdao and Tianjin, each capable of receiving 6 million tonnes of LNG a year. The new terminal will include a berth handling vessels of 266,000 cu m and four storage tanks each sized 220,000 cu m.The company is also adding a similar-sized berth of 266,000 cu m at its Tianjin terminal which is slated for completion in November.

https://www.hellenicshippingnews.com/sinopecs-new-lng-terminal-wins-state-nod-steps-up-winter-supplies/

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Vietnam: Stena tests jettyless LNG terminal

Swedish shipbuilder Stena Power & LNG solutions said on October 4 it had completed the successful testing of a jettyless LNG receiving terminal ahead of deployment to Vietnam.

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Stena said scale-model testing of a jettyless floating terminal (JFT) was completed at a Dutch research facility before full construction and deployment off the coast of Vietnam for Delta Offshore Energy’s LNG-to-power facility. Stena said that models of 1:30 scale were used for testing of the JFT, a self-installing regasification platform, a floating storage unit and an LNG carrier. Delta Offshore said the full-scale deployment would be an industry breakthrough.

https://www.naturalgasworld.com/stena-tests-jettyless-lng-terminal-92647

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Malaysia: Malaysia’s First Petronas FLNG vessel hits cargo delivery milestone

Petronas has delivered the 50th LNG cargo from the PFLNG Satu, the company’s first floating LNG vessel. On Sept. 25, 2021, the milestone cargo was loaded onto the MISC Berhad-operated LNG carrier Seri Cemara for shipment to Taiwan.

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The first LNG cargo was produced from the Kanowit gas field offshore Sarawak in 2017. The PFLNG Satu is the world’s first FLNG facility to successfully produce LNG from two remote gas fields, the company said. The vessel transferred from the Kanowit gas field to its current location at the Kebabangan gas field offshore Sabah in 2019. Abang Yusuf Abang Puteh, Petronas vice president of LNG Assets, said the PFLNG Satu has produced and exported nearly 3.18 million metric tons of LNG from the Kebabangan and Kanowit gas fields since 2017. The PFLNG Satu is designed to operate at water depths of up to 200 m (656 ft) with a production capacity of 1.2 million metric tons of LNG per annum.

https://www.offshore-mag.com/production/article/14211660/first-petronas-flng-vessel-hits-cargo-delivery-milestone

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Bangladesh buys two LNG cargoes for Oct at record high prices

Bangladesh bought two liquefied natural gas (LNG) cargoes for delivery in October at record high prices, two industry sources said.

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The country bought one cargo from trader Vitol for delivery in mid-October at $35.89 per million British thermal units (mmBtu) and another from Gunvor for late October delivery at $36.95 per mmBtu, an official from state-run Petrobangla said.

https://www.nasdaq.com/articles/bangladesh-buys-two-lng-cargoes-for-oct-at-record-high-prices-sources-2021-10-08

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Singapore: Singapore LNG Corp scouts for spot cargoes as electricity futures surge

Singapore LNG Corp (SLNG) is making enquiries about buying LNG cargoes from the spot market, a rare move for the operator of the city state’s liquefied natural gas (LNG) terminal.

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The inquiries come on the back of surging prices globally of power generation fuels, such as LNG and coal, amid power shortages from China and India to Europe.

SLNG contributes to Singapore’s energy security and its terminal supplies up to 30 per cent of the city state’s natural gas demand for power generation, its website says. SLNG is looking for LNG in the spot market privately, four sources said, with one of them adding that it is seeking up to two cargoes for delivery into Singapore in November. It was not immediately clear why SLNG was seeking the cargoes or if the request was firm.

The company and Singapore’s Energy Market Authority (EMA) did not immediately reply to a Reuters request for comment. It is unusual for Singapore to seek spot LNG cargoes as the country is typically adequately supplied with LNG through long-term deals and gas imports from Indonesia via a pipeline.

One of the sources said the request from SLNG came after Singapore’s electricity prices jumped.

Singapore’s monthly base load electricity futures have surged by more than double since the start of the month while the quarterly base load electricity energy futures are trading at their highest since the contract was launched in 2015.

https://www.straitstimes.com/business/economy/singapore-lng-scouts-for-spot-cargoes-as-electricity-futures-surge

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Natural Gas / LNG Utilization

Korea: Korea downplays impact of liquefied natural gas on climate change

South Korean public financing institutions have played down the impact of liquefied natural gas on climate change, according to climate activist group Solutions for Our Climate. Greenhouse gases are being emitted throughout the liquefied natural gas

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supply chain from extraction to liquefaction, transportation, regasification and consumption said the climate activists during an event held in Seoul.

This brings to light Korean institutions ‘combined financing of $82 billion in the upstream and midstream process for oil and gas, before the actual end-stage for power consumption, from 2011 to 2020. This is among a total of $137 billion in fossil fuel-related financing — ranging from coal to oil and gas –over the past decade by Korea‘s public finance institutions, such as the Korea Trade Insurance Corp. (K-Sure), the Export-Import Bank of Korea, the Korea Development Bank. Of the total, $10 billion went to coal-related projects, which all declared support for the Task Force on Climate-Related Financial Disclosures.

https://www.hellenicshippingnews.com/korea-downplays-impact-of-liquefied-natural-gas-on-climate-change/

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Turkey: Turkey’s natural gas purchases surge by a third in July

Turkey’s natural gas imports increased by more than a third in July from a year ago, data by the country’s energy watchdog. Purchases surged 30.1% to around 4.05 billion cubic meters (bcm) from approximately 3.1 bcm in the same month of 2020,

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Energy Market Regulatory Authority (EPDK) said in its monthly natural gas market report.Turkey imported 3.48 bcm of natural gas via pipelines, while 568 million cubic meters (mcm) was purchased as liquified natural gas (LNG), EPDK’s data showed. This marked an increase in pipeline gas imports of 33.7% and 11.8 in LNG imports.

Russia was Turkey’s top gas import destination, supplying 2.30 bcm of natural gas while Iran and Algeria followed with 633 mcm and 568 mcm, respectively. Imports from Russia and Algeria grew by 173.5% and 46.6% in July, respectively, while imports from Iran declined by 4.7% compared to the same period of 2020.Turkey’s total gas consumption also increased by 35% from a year ago to approximately 3.83 bcm.

https://www.dailysabah.com/business/energy/turkeys-natural-gas-purchases-surge-by-a-third-in-julySuspect 

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Colombia: Dedicated CNG buses & trucks were presented in the Colombian Caribbean

In alliance with Gases del Caribe, Promigas and Surtigas, the Dongfeng brand presented four new models of dedicated natural gas trucks and buses to cargo and passenger transport companies in Cartagena. The objective is to encourage the acquisition of

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these NGVs not only for the mass transport systems in the main cities of Colombia, but also for the cargo transport segment, which, using other fossil fuels, represents more than 60% of the country’s pollution.

Natural gas vehicles are backed by the factory; proof of this is that there are currently more than 24 recognized manufacturers, such as Dongfeng, that sell NGVs with a factory warranty. Most of these vehicles are designed for public service and cargo transportation, which have high demands on working hours and mileage. Ivan Martínez, Commercial Manager of Surtigas, said that Promigas and Surtigas have been supporting these initiatives with the aim of accelerating the energy transition throughout the country and thus stimulating Colombia’s economy through the implementation of environmentally-friendly fuels in the transport of passengers and heavy cargo.

Guided by the Sustainable Development Goals and good practices, which will guarantee a better world for future generations, Gases del Caribe and its subsidiary Surtigas have been developing initiatives to promote the use of clean fuels in private, public and cargo transportation through the conversion and support in the acquisition of vehicles that run on natural gas.

https://www.ngvjournal.com/s1-news/c3-vehicles/natural-gas-dedicated-buses-and-trucks-were-presented-in-the-colombian-caribbean/

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Canada: Brunner area soon to receive natural gas

Ontario Energy Minister Todd Smith was in Perth East to announce the Natural Gas Expansion Program will allow 44 homes to connect in Brunner.

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Under phase two of the program, Ontario will allocate $814,850 to support new connections to the natural gas distribution system and help make life more affordable in Perth-Wellington.

Perth-Wellington MPP Randy Pettapiece says access to natural gas will help more families and businesses find energy savings, and promote economic development and job creation in the region. Phase 2 of the Natural Gas Expansion Program will allocate more than $234 million to support approximately 8,750 connections in 43 rural, northern and Indigenous communities.
https://blackburnnews.com/midwestern-ontario/midwestern-ontario-news/2021/10/13/brunner-area-soon-receive-natural-gas/

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Ireland: Ireland could become over-reliant on natural gas from UK, watchdog warns

Commission to urge Government to consider LNG as domestic energy sources dwindle. Ireland could become over-reliant on natural gas from the UK for power generation by 2030 due to dwindling domestic sources, the energy watchdog will warn TDs and Senators.

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The Commission for Regulation of Utilities (CRU) will argue it would be “prudent” that a future role for liquefied natural gas (LNG) be examined by the Government. It comes as the Oireachtas Committee on the Environment meets to examine energy security, LNG and power usage by data centers.

LNG is controversial due to the use of the environmentally harmful fracking process used to extract the gas. Green Party leader Eamon Ryan has said it would not be appropriate to permit any LNG plant in Ireland – including one planned by Shannon LNG in Co Kerry – pending the outcome of an energy security review to be completed next year. The new National Development Plan (NDP) commits to increasing the share of renewable electricity up to 80 per cent by 2030.

https://www.irishtimes.com/news/politics/ireland-could-become-over-reliant-on-natural-gas-from-uk-watchdog-warns-1.4691022

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GO TOP

LNG as a Marine Fuel/Shipping

Lack of green maritime fuels makes liquid natural gas a necessity says Commission

Liquid natural gas (LNG) is a necessary transitional fuel to decarbonize EU maritime activities as the available quantities of zero, or low-carbon fuels are currently insufficient, the European Commission has said.

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Environmental groups have criticized the inclusion of LNG in FuelEU Maritime legislation to increase the uptake of green fuels in the maritime sector. They argue it will slow the adoption of truly zero-carbon fuels while locking in reliance on gas, a fossil fuel. But a sudden switch to electro-fuels and advanced biofuels is unrealistic due to supply issues, said Joaquim Nunes de Almeida, director for energy-intensive industries and mobility with the European Commission’s DG GROW.

https://www.hellenicshippingnews.com/lack-of-green-maritime-fuels-makes-liquid-natural-gas-a-necessity-says-commission/

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China: Hapag-Lloyd to assess performance of LNG retrofit

German container liner Hapag-Lloyd will monitor the performances of a vessel it retrofitted to run on LNG, before deciding on any further conversions. The 15,000 twenty-foot equivalent unit Brussels Express was converted to run on LNG earlier this year in Shanghai’s Huarun Dadong shipyard.

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The containership was formerly known as the Sajir. Hapag-Lloyd told Argus that it wants to assess the performance of the ship, which is running on a dual-fuel engine, before committing to further LNG retrofits. The firm has 16 other vessels out of a fleet of 250 containerships that could potentially be retrofitted to run on LNG, but has not yet committed to any modifications beyond the Brussels Express.

LNG prices have climbed in recent weeks, and remain more than double the price of conventional 0.5pc fuel oil. Argus assessed delivered LNG in northwest Europe at $1,309/t on a 0.5pc sulphur fuel oil-equivalent basis, compared with 0.5pc fuel oil’s $541.50/t price, for the week to 30 September. But Hapag-Lloyd said it remains committed to using LNG as a bunker fuel, having recently spent $2bn on 12 new containerships to be delivered in 2023 and 2024. These vessels will be dual-fuelled, able to run on either LNG or conventional bunkers. The firm will refuel its LNG-powered ships in Rotterdam and Singapore and will most likely buy on term contracts.

https://www.argusmedia.com/en/news/2260576-hapaglloyd-to-assess-performance-of-lng-retrofit

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BHP explores LNG, biofuels, collaborates to boost greener shipping

Global resources company BHP is tapping LNG’s and biodiesel’s potential as a marine fuel choice to advance sustainable shipping as the maritime industry explores a gamut of fuel options to meet its emissions cuts targets.

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After thousands of years to evolve from wind to coal, and a hundred years to evolve from coal to oil, the shipping industry faces the most rapid transition it has to make.

“There is no better time to be able to take action, given the decarbonization challenge, the existential challenge that we have ahead of us,” Rashpal Bhatti, vice president maritime and supply chain excellence, BHP said at the 37th Asia Pacific Petroleum Conference, or APPEC 2021, organized by S&P Global Platts from Sept. 27-29. BHP is supporting the Global Maritime Forum’s Call to Action to fully decarbonize all shipping by 2050 and is a founding member of the Maritime Decarbonization Center in Singapore. The center will support trials of new fuels and technologies. It will also include facilities for corporate labs, research facilities and house research offices and space for maritime tech start-ups.

https://www.hellenicshippingnews.com/bhp-explores-lng-biofuels-collaborates-to-boost-greener-shipping/

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Germany: World’s first bunkering trial of carbon-neutral synthetic LNG

In a world-first for the maritime sector, the containership ‘ElbBLUE’ has bunkered some 20 tons of liquefied synthetic natural gas (SNG) or synthetic LNG at the Elbe port in Brunsbüttel, Germany.

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The bunkering is a joint project of MAN Energy Solutions, the shipowner Elbdeich and the charterer Unifeeder, which aims at demonstrating the potential for the use of climate neutral fuels in shipping. LIQUIND Marine was tasked with the organization of logistics from the liquefaction plant to the port and execution of the bunkering of the LNG from the truck to the ship’s tank.

Formerly known as the ‘Wes Amelie’, the 1,036-teu feeder container ship previously made headlines in 2017 when its MAN 8L48/60B main engine was retrofitted to its current, four-stroke MAN 51/60DF unit to enable dual-fuel operation. The first such conversion of its type globally, it showed that existing engines could be converted to LNG operation with a tremendous effect on exhaust emissions and the environment. The ElbBLUE, which sails in the North and Baltic Seas, is set to continue its journey under the supervision of engineers from MAN PrimeServ, MAN Energy Solutions’ after-sales division. As a result, the vessel’s direct CO2 emissions are expected to decline by 56 tons for this coming trip.

https://www.ngvjournal.com/s1-news/c7-lng-h2-blends/germany-worlds-first-bunkering-trial-of-carbon-neutral-synthetic-lng/

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Two LNG-Fueled CO2 Carriers Ordered in China for Norwegian CCS Project

Energy major Shell, Equinor, and TotalEnergies are moving forward with their joint venture project, Northern Lights, to store captured CO2 off the west coast of Norway. The project has ordered two first of their kind vessels,

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specifically designed to transport the CO2 captured in Northern Europe to a terminal in Norway before being piped offshore into reservoirs under the North Sea. As part of the first phase of its CO2 transport and storage infrastructure development, Northern Lights has ordered two dedicated 426-foot-long CO2 carriers, each with a cargo capacity of 7,500 m3. The ships will be built by Dalian Shipbuilding Industry Co. (DSIC) in China and are expected to be delivered by mid-2024.

The vessels are designed to transport liquid CO2 with purpose-built pressurized cargo tanks. The primary fuel for the ships will be LNG. Other innovative technologies, such as a wind-assisted propulsion system and air lubrication, will be installed to reduce carbon intensity by around 34 percent compared to conventional systems. The ships will be registered in Norway, classed by DNV, and operated by Northern Lights. Once in operation, the ships will load captured and liquefied CO2 from European emitters and transport it to the Northern Lights receiving terminal in Øygarden in western Norway. Northern Lights will have the capacity to store up to 1.5 million tons of CO2 per year.

https://www.maritime-executive.com/article/two-lng-fueled-co2-carriers-ordered-in-china-for-norwegian-ccs-project

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

US: Nikola signs deal to build hydrogen fueling stations across North America

EV automaker Nikola has signed a memorandum of understanding with Opal Fuels to build and operate hydrogen fueling stations across North America. Under the preliminary agreement, the two companies will work to co-develop the technology

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necessary to accelerate the adoption of fuel-cell electric vehicles. They also plan to explore the use of renewable natural gas.

The announcement comes just months after federal prosecutors indicted Nikola founder and former executive chairman Trevor Milton of fraud. Among other allegations, the Securities and Exchange Commission (SEC) accused Milton of falsely claiming the company was producing hydrogen at four times less than the market rate.

https://www.engadget.com/nikola-opel-fuels-memorandum-of-understanding-193014935.html

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UK: UK logistics leader uses BioLNG fleet to transport BMW group auto parts

Imperial Logistics has added 18 IVECO Stralis Natural Power trucks to its fleet, powered by sustainably produced bio-LNG. Ordered specifically for a contract with BMW Group, the new vehicles are based out of a satellite transport office that Imperial operates on the Unipart campus at MINI Plant Oxford in Cowley, Oxfordshire.

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The decision to make the switch to natural gas comes as part of BMW Group’s wider efforts to improve sustainability throughout all areas of the company, which includes its supply chain and logistics operations.

The 18 AS440S46TX/P LNG IVECO Stralis NP 460 tractors are expected to cover around 3.3 million kilometers per year collectively which Imperial estimates will remove over 3,000 tons of CO2 from its annual emissions. IVECO NP heavy trucks are unique in the marketplace for being the only factory-built 6×2 tractors to run solely on natural gas. The 12.9-liter CURSOR 13 offers a diesel-equivalent 460hp and 2,000Nm of torque across a wide power band, ensuring that with the 12-speed HI-TRONIX automated gearbox with predictive mapping, there is no compromise to vehicle performance or driver enjoyment. The trucks run exceptionally quietly at 71dB, further minimizing Imperial’s and the manufacturing plant’s environmental impact by halving engine noise pollution.

https://www.ngvjournal.com/s1-news/c3-vehicles/uk-logistics-leader-uses-bio-lng-vehicles-to-transport-bmw-group-auto-parts/

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Europe: AUGA launches world’s first zero-emission hybrid biomethane tractor

AUGA group, Europe’s largest vertically integrated organic food producer, has developed and presented the world’s first hybrid biomethane and electric tractor for professional farm use – AUGA M1.

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This is the company’s first step in offering technological solutions that will eliminate climate pollution throughout the food supply chain, from field to table, and allow food to be produced at no cost to nature.

In addition, the company’s patented design allows the tractor to accommodate larger natural gas cylinders. The AUGA M1 tractor uses a hybrid biomethane-electric fuel system. When the tractor is running, an internal combustion engine powered by biomethane generates energy and transmits it directly to the electric motors that spin the wheels. When operating under normal conditions that do not require high power, the tractor stores the generated energy reserve in the batteries. Such a system does not waste energy in low load conditions, uses a relatively small but efficient motor and is able to extract tremendous power when needed. These solutions allow the tractor to work for up to 12 hours.

https://www.ngvjournal.com/s1-news/c3-vehicles/auga-launches-worlds-first-zero-emission-hybrid-biomethane-tractor/

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Italy: Snam and Eni open new biomethane station in southern Italy

Snam4Mobility, the Snam company active in sustainable mobility, and Eni have opened a new biomethane filling station in Aversa, Caserta. The facility, located in Via Vito di Jasi, corner of Viale Kennedy, strengthens the offer of CNG as an alternative fuel in Campania and

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will also supply biomethane produced at the Snam plant in Albairate (Parco Agricolo Sud di Milano) and then fed into the transport network. The opening of Aversa location is another important milestone in Eni’s commitment to promoting sustainable transport in Italy. Natural gas mobility is one of the technologies available to reduce polluting emissions: and with the gradual development of a biomethane supply chain, which can be injected into existing infrastructure, natural gas mobility is also becoming renewable. Eni has already started distributing a portion of biomethane in its own network of CNG stations in Italy and plans to distribute only biomethane from next year.

The production of biomethane and the sale of low-carbon energy carriers and mobility services at filling stations, together with the development of biorefineries and the recent merger of the renewable and retail businesses, are among the main levers of the decarbonization path of Eni’s strategic plan, which will make it possible to supply a variety of fully decarbonized products, combining environmental and financial sustainability. Snam4Mobility, a wholly-owned subsidiary of Snam, provides integrated services for ‘smart green’ sustainable mobility using natural gas and biomethane, building infrastructure and supplying components for distributors (compressors, dispensers) in which, through Cubogas, it is one of the market leaders. To strengthen the supply network, Snam4Mobility develops CNG and bio-CNG refueling infrastructure for cars and LNG and bio-LNG for heavy transport throughout Italy. Snam’s 2020-2024 strategic plan envisages the construction of 150 new natural gas and biomethane stations and the launch of the first hydrogen stations.

https://www.ngvjournal.com/s1-news/c4-stations/italy-snam-and-eni-put-into-service-biomethane-station-in-the-campania-region/

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Spain: Naturgy & Aquaservice sign Spain’s first bio-CNG supply agreement

Naturgy and Aquaservice reached an agreement for the energy company to supply biomethane to the water distributor’s last-mile delivery fleet. In this way, Aquaservice will become the first company to use this

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renewable energy in its vehicles throughout the Spanish territory. Both companies are also collaborating to promote sustainable electric and green hydrogen mobility in Aquaservice’s last-mile fleet in Spain.

The biomethane will come from the production facilities that Naturgy has at the Elena landfill, in Cerdanyola del Vallès (Barcelona), the first plant to inject renewable gas produced from waste into the Spanish gas network. The contract provides for the supply of a maximum 2GW / year of biomethane. This fuel substitution will contribute to a reduction in emissions of up to 350 t CO2/year, which is equivalent to removing 53,000 vehicles from the circulation of a city for one day.

https://www.ngvjournal.com/s1-news/c1-markets/naturgy-and-aquaservice-sign-spains-first-bio-cng-supply-agreement/

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Spain: €4M allocated to renovate discretionary bus fleet with new NGVs in Mallorca

Autocares Emilio Seco, Moventis’ discretionary services company in Mallorca, seeks to establish itself as a benchmark in sustainable mobility in its sector after making an investment of 4 million euros to incorporate 25 CNG

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vehicles with the ECO label from the Spanish DGT. The aim is to renovate and convert its fleet of coaches to more sustainable models.

It is an operation that has promoted the transformation of its fleet, currently made up of 65% of CNG models with ECO label, and a company action that is part of its commitment to reduce the impact of its activity on the environment, also a priority objective for the Moventis group. In this sense, Moventis has close to 50% of its fleet of buses, coaches, trams, and bicycles, converted into electric, hybrid, natural gas or diesel models that comply with the Euro VI regulations, the most recent and restrictive in relation to the reduction of polluting emissions.

https://www.ngvjournal.com/s1-news/c3-vehicles/mallorca-based-discretionary-services-company-allocates-e4m-in-cng-hybrids/

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Norway: Equinor launches a multibillion-dollar blue hydrogen plan

Equinor ASA, the flagship producer of oil and gas giant Norway, is investing billions of dollars in blue hydrogen on a bet that it can make the fuel more cleanly than anyone else.

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The state-controlled oil firm is among energy companies across Europe stepping up plans for hydrogen as mounting pressure to fight climate change spurs massive shifts in investment. Equinor believes it has the edge in the race to commercialize the industry because it leaks less methane than its rivals.

The company is focusing on blue hydrogen, which is made from natural gas and has been touted as key to cleaning up industries such as steel, cement and aviation. Yet it’s also drawn criticism, since its production releases carbon dioxide that must be captured and stored, while the process of gas extraction and transportation emits methane, an even more potent greenhouse gas.

The company plans around 100 billion kroner ($11.7 billion) of investment in hydrogen — comprising its own spending, partners’ contributions and state funding — by 2035. It can count on an abundant supply of gas, with Norway pumping more than any other country in western Europe, and says its methane leak rate is below 0.03%. That’s far less than targeted by industry group Oil & Gas Climate Initiative — of which Equinor is a member — which seeks to cut the aggregate methane intensity of upstream operations to less than 0.2% by 2025.

https://www.worldoil.com/news/2021/10/8/equinor-launches-a-multibillion-dollar-blue-hydrogen-plan

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Japan: Japan to Build Its First Hybrid Gas and Battery Propulsion Ship

A consortium of Japanese companies is working together to build a new generation hybrid propulsion system, which will be installed on a limestone carrier operating in coastal Japan.

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The Global Environment Bureau of the Japanese Ministry of the Environment and the Maritime Bureau of the Japanese Ministry of Land, Infrastructure, Transport and Tourism are supporting the project to promote the introduction of advanced technologies that will simultaneously achieve social innovation and decarbonization.

The hybrid propulsion for the vessel, which will be owned by NS United Naiko Kaiun Kaisha, will be composed of Japan’s first gas-only engine combined with a 2,847 kWh lithium-ion battery. The propulsion power and the onboard electric power during sailing will be generated by the gas-only engine developed by Kawasaki Heavy Industries. Natural gas will only be used for power during long-distance and long-duration navigation. The propulsion power and the onboard power while entering, leaving, and berthing in port will be provided from the battery to achieve zero-emission operation.

https://www.maritime-executive.com/article/japan-to-build-its-first-hybrid-gas-only-and-battery-propulsion-ship

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