NGS’ NG/LNG SNAPSHOT – October 1–15, 2022
City Gas Distribution & Auto LPG
Three Bio-CNG plants to be operationalized by July 2023
The Municipal Corporation of Delhi initiated the work on setting up digesters for an integrated Bio-CNG fuel station spread over a three-acre site located in North Delhi’s Narela region in Ghogha, on Thursday, October 13.
The facility is expected to produce compressed natural gas (Bio-CNG) by treating 200 tons of wet waste and dairy waste a day, which will in turn be utilized as a clean fuel for operating vehicles. The civil work at the site is going on in full swing through the installation of two digester units, the raw material feeding into the digesters will begin in December and we will conduct the trial runs and full commissioning of the plant in March 2023.
A senior MCD official overseeing the project said that the soil Investigation, design works and all statutory approvals have been received for the project and the machinery has been ordered. In the second phase, we have initiated the civil work and the machinery is expected to be delivered by next month. The MoU (memorandum of understanding) for the project was signed by the erstwhile North Delhi Municipal Corporation in January this year.
As per the agreement, the corporation is providing the land for free for this project. Of the total area (12,000 square meters), 11,000sqm will be used for setting up a biogas plant and 1,000sqm for an integrated CBG-CNG fuel station. As per project norms, the MCD will provide segregated biodegradable waste (wet waste) to the plant under the Solid Waste Management Rules 2016 and operate the entire plant.
A senior MCD official explained that the expected production of various components generated after the bio-methanation process of 200 tons per day of municipal solid waste will comprise 8,000kg per day of compressed biogas, 30 tons per day of city compost, 100 KL (kilolitres) per day of wet slurry.
Indore operates one such Bio-CNG plant, which is used to supply fuel to the bus fleet of the city. On February 19 this year, Hon’ble Prime Minister Narendra Modi inaugurated the 550 tons per day capacity plant worth ₹150 crore at the Devguradia trenching ground. It can generate 17,000kg to 18,000kg of Bio-CNG and 10 tons of organic manure. As many as 150 city buses are being run on this Bio-CNG, which is ₹5 cheaper than commercial CNG.
Overall, Delhi’s civic body plans to operationalize three such Bio-CNG/CBG units during the next year at Ghogha with 200 tons per day capacity, a 300 tons per day facility in Okhla and 100 tons per day facility in West Delhi’s Hastsal.
An old 200 tons per day capacity composting plant was running at Okhla, which had become dysfunctional; so it is being upgraded to a 300 tons per day Bio-CNG plant. The construction work is expected to be completed by July 2023. Another official said that the smaller facility in Hastsal is expected to be operationalised by April next year.
LCNG station opens piped gas soon in Tamil Nadu
In a significant development paving the way to offer piped gas supply to domestic households, commercial establishments and industries, Tamil Nadu’s first Liquified Compressed Natural Gas (LCNG) station in Ranipet district was inaugurated by Chief Minister MK Stalin virtually on Monday, October 03.
The LCNG Station near Manthangal village is the first of its kind in TN. It will act as a local storage point to which gas will be brought in liquid form by trucks from the LNG terminal in Ennore operated by Indian Oil Corporation and from Kochi, operated by Petronas LNG.
The liquified gas will be off-loaded in the local storage tank. From there it will be converted to gas and transferred to pipelines catering to Vellore, Ranipet and Tirupattur. The new station will benefit over 30,000 households and 325 industrial and commercial establishments.
AG&P Pratham has already laid 45 km of pipelines surrounding the station. Through these pipelines, the requirements of industries, domestic consumers, commercial entities and retail outlets such as CNG stations will be met. The company will be developing a 300 km-pipeline network in the Vellore-Ranipet area by the end of the 2023 financial year. Piped natural gas will be 30% cheaper than a gas cylinder, the price of which has crossed the `1,000 mark, and will be available 24 hours a day. The consumption of gas will be measured by a meter installed in the industries, commercial establishments and households. CNG used by vehicles will also be cheaper by 30% and will provide more mileage than petrol or diesel, he said.
AG&P Pratham has an investment of Rs 2,700 crore planned for TN over the next eight years. It has a license to supply gas in Kancheepuram, Chengalpattu, Vellore, Ranipet, Tirupattur and Ramnad districts as well as southeast Chennai.
Air quality panel asks CGD companies to develop PNG, CNG infra in Delhi-NCR by next year
The Commission for Air Quality Management in NCR & Adjoining Areas (CAQM) on October 07, directed the 11 city gas distribution (CGD) entities in the region to set up infrastructure for CNG and PNG in the entire region by the winter of next year.
The air quality panel held a meeting on Friday with the Ministry of Petroleum & Natural Gas (MoPNG) and the CGD companies in the national capital region (NCR) to review the status of natural gas infrastructure.
The CGDs have assured the Commission that by September 2023, all the industrial areas in the NCR will be connected by gas infrastructure. Around 1.7 million tonnes (MT) of coal is consumed annually by various industries in the NCR, with about 1.4 MT alone being consumed in the six major industrial districts.
The NCR is divided into 24 geographical areas (GAs) and has been divided among 11 CGD entities, which are responsible for providing gas connectivity to the GA’s allotted to them. The region has a total of 240 industrial areas out of which gas connectivity and infrastructure has been achieved in 74.5% of areas (179 Industrial Areas).
There are a total of 963 compressed natural gas (CNG) stations in the NCR as well as 22,24,055 domestic piped natural gas (PNG) connections. The commercial PNG connections are 5,185, while industrial connections stood at 5,361.
Switching over industries in NCR to approved clean fuels including PNG is a priority for the panel. The Commission has already directed state governments in NCR to phase out coal and completely avoid the use of coal from January 1, 2023 (except for thermal power plants). In effect, the approved fuel list shall be completed in force in the entire NCR from January next year.
The move by CAQM to ban use of coal as fuel will boost the prospects of natural gas in the NCR region. Analysts expect the development to be positive for the city gas distribution (CGD) companies. As per the Petroleum Planning & Analysis Cell, the global per capita natural gas consumption is 496 cubic metres compared to 43 cubic metres for India.
India’s total consumption of natural gas during August this year stood at 4,966 million standard cubic meters on a provisional basis.
City gas discoms fear spike in natgas prices may cut consumption growth, hurt margins, expansion plans
The city gas distributors, which are incurring the maximum heat emanating from these price elevations, now face a dilemma between easing cost pressures and driving volume growth.
The recent surge in natural gas prices announced by the Ministry of Petroleum and Natural Gas may curb India’s city gas consumption volume growth to roughly 10%, as opposed to the earlier growth expectations of nearly 25%. The elevated prices will slash the demand for industrial PNG by almost 12%. Natural gas, in September, saw an increase of over 40% to an all-time high of $8.57/mmbtu. The increase in the second half of the fiscal year comes after a 110% increase witnessed in the first half.
An exponential increase in international gas prices amid the Russia-Ukraine war and the disruption in global supply made it difficult for the CGD network to cap domestic rates. Out of the total city gas volumes, 50% belongs to CNG consumers, 10% belongs to domestic PNG, and the remaining 40% is supplied to industries.
Industrial consumers, amid the elevated gas prices, are switching to alternative fuels such as propane and fuel oil, which is further dragging down the demand, said Sh. Naveen Vaidyanathan, Director, CRISIL. Sh. Vaidyanathan added that the expanding network of CNG stations to new geographic areas and higher sales of factory-fitted CNG cars may boost CNG sales in the country.
The city gas distributors, which are incurring the maximum heat emanating from these price elevations, now face a dilemma between easing cost pressures and driving volume growth.
Policy Matters/ Gas Pricing/ Others
Domestic natural gas price hits a new high of $8.57/mBtu for H2 FY23
Government on Friday, October 07, hiked the domestic natural gas price by 40% to $8.57 per mBtu on gross calorific value for the second half of FY23, beginning October 1, compared to the April -September 2022 period.
The MOPNG’s Petroleum and Analysis Cell also said the gas price ceiling for extracting the key commodity from challenging fields – deep water, ultra-deep water and high pressure-high temperature fields has also been revised upwards by around 25% to $12.46 per million British thermal units (mBtu). Prices have been raised largely in line with the uptick in international prices.
India meets half its natural gas requirement through domestic production, while the other half is imported as liquified natural gas (LNG). This is the highest price for procuring natural gas in the country since the government introduced the New Domestic Gas Pricing Guidelines in November 2014. The previous high in gas price was recorded in the first half of the current fiscal year at $6.10 per mBtu. Before this, the highest price was reported for the November 2014-March 2015 period at $5.05 per mBTU.
Similarly, the highest ceiling price for gas from challenging fields was during H1 FY23 at $9.92 per mBtu. Prior to H1 and H2 FY23, the highest price reported was during the April 2019-September 2019 period at $9.32 per mBtu.
CNG, piped cooking gas prices hiked by Rs 3 in Delhi
The prices of CNG and cooking gas piped to household kitchens in the national capital on Saturday, October 08, hiked by ₹3 each in step with rise in input natural gas prices.
The ₹3 per kg increase in CNG price is the first hike in rates in over four months, while ₹3 per standard cubic metres increase in piped natural gas (PNG) was the first raise in two months.
CNG in the national capital territory of Delhi now costs ₹78.61/kg, up from ₹75.61/kg, according to the information posted on the website of Indraprastha Gas Ltd (IGL) the firm which retails CNG and piped cooking gas in the national capital and adjoining cities. This is the 14th increase in price since March 7. Rates were last increased by ₹2/kg on May 21. In all, the CNG price has risen by ₹22.60/kg during this period. Since April 2021, CNG prices have increased by ₹35.21/kg or 80%.
Simultaneously, the rates of gas piped to household kitchens, called piped natural gas (PNG), was increased to ₹53.59 per standard cubic metre in Delhi from ₹50.59 per scm, according to IGL. It is the 10th increase in PNG rates since August 2021. IGL said rates of CNG and PNG have also been increased in Noida, Greater Noida, Ghaziabad and Gurugram as well as other cities where it operates such as Kanpur in Uttar Pradesh and Ajmer in Rajasthan.
CNG price hiked by Rs 4, domestic piped natural gas to cost more in Pune
The gas distribution firm Maharashtra Natural Gas Ltd (MNGL) has hiked the retail price of Compressed Natural Gas (CNG) for the vehicular segment in Pune, Pimpri-Chinchwad and adjoining areas of Chakan, Talegaon and Hinjewadi with effect Sunday, October 02, midnight.
The gas distribution firm Maharashtra Natural Gas Ltd (MNGL) has hiked the retail price of Compressed Natural Gas (CNG) for the vehicular segment in Pune, Pimpri-Chinchwad and adjoining areas of Chakan, Talegaon and Hinjewadi with effect Sunday midnight.
The CNG price has been increased by ₹4 per kilogram including taxes, taking the overall price from ₹87 per kg to ₹91 per kg. The Domestic Piped Natural Gas (DPNG) price has been hiked by ₹3 per standard cubic meter (SCM). With this rate hike, the domestic PNG price has been revised from ₹49.50 per SCM to ₹52.50 per SCM from Sunday, October 02, midnight.
According to MNGL officials, the above revision in CNG and DPNG has been exercised on account of an increase in the input cost of natural gas.
Electric Mobility/ Hydrogen/ Bio- Methane
India’s hydrogen cell technology will be cheapest in the world: State Minister
India’s hydrogen cell technology will be the cheapest given the low cost of solar power in the country, said Sh. VK Singh, the minister of state for road transport and highways on Friday, October 14.
Speaking at the national conference on electric mobility organised by Assocham, Sh. Singh said the government is supporting the growth in the manufacturing of several alternative sources of energy. Hydrogen can be produced from solar energy water electrolysis using solar generated electricity or direct solar water splitting. The minister also said that in the space of EVs all stakeholders should work together and India has the capability to become the supplier of EVs globally.
The government supports the transition to electric mobility. We need to look at possibilities and in intra-city travel we can concentrate on electric mobility. We need a public transport system that is not only cheaper but is better and attractive enough for people to opt for it. Longer travel on inter-city routes is restrictive right now due to concerns of battery range and availability of charging infrastructure.
Addressing the event, Sh. Tarun Kapoor, advisor to the prime minister said that both India’s energy needs and the transportation will grow. Noting that the transport sector accounts for 30-35% of energy consumption he said that it contributes about 17% to the greenhouse gas emissions.
India towards a sustainable electric vehicle battery ecosystem in country
Battery storage technology is emerging as the key driver for decarbonizing both the transportation and energy sectors. While batteries are fast accelerating the electric mobility transition, deploying energy storage, as a back-up to the grid, can help in managing variability in electricity generation and load.
Currently, the preferred energy storage options are Lithium-Ion Battery (LIB) variants that are widely used in consumer electronics and electric vehicles (EVs). LIB raw materials are geographically concentrated, for example, lithium is mostly found in Australia and graphite is mined largely in China. The distribution of the global EV battery supply chain indicates that while the upstream EV supply chain is diversified, that is not the case as you move midstream and downstream.
India currently lacks a strong domestic manufacturing industry and is dependent on imported lithium cells or LIB packs. In recent years, the global price of both cobalt and nickel has increased by 85% and 55% respectively while battery-grade lithium has seen a price increase of over 700% since early 2021. This surge in battery raw material costs is emerging as a major challenge in battery cost reduction where batteries account for up to 30%-40% of the vehicle’s total cost. Policies and Incentives for a Self-Reliant India EV uptake is set to dramatically increase across many states and UTs in India. This will proportionately lead to heightened demand for EV batteries.
Aim to strengthen domestic battery manufacturing capabilities, via a planned outlay of Rs 18,100 crore (over 5-years) for Advanced Chemistry Cell (ACC) technology. The Draft Battery Swapping Policy is another step in the right direction that decreases the upfront costs of electric vehicles. It proposes a few enabling actions which include a Unique Identification Number (UIN) and the provision to store and share the technical and performance data of an EV battery during its life cycle. The End-of-Life (EOL) recycling of spent EV batteries is a focus area that can greatly minimize the environmental implications of landfill dumping and also help in recovering raw materials to boost domestic production.
The Challenges in the Indian Context More than 90% of the Indian EV sector is dominated by light electric vehicles, such as electric two-wheelers, that require small LIB packs. Several parts of India experience tropical weather and it is well known that extreme temperatures not only reduce battery life and performance but can also result in serious safety challenges.
Natural Gas / Transnational Pipelines/ Others
France begins supplying natural gas directly to Germany via pipelines
France will begin shipping natural gas to Germany, French grid operator GRTGaz said on Thursday, as Berlin tries to diversify its energy supply following a supply disruption from Russia. GRTgaz said the gas pipeline connecting the two countries in the French border village of Obergelbach has started sending 31 gigawatt hours per day.
According to figures from the French Ministry for the Energy Transition, there are plans to increase the amount to 100 gigawatt hours, which represents less than 2% of daily gas consumption in Germany.
Although German gas tanks are 95% full, officials say people will need to be careful about gas consumption next winter. Germany and other European countries are trying to diversify their gas imports as Russia cut supplies, which the continent has relied on for years for its factories, power plants and domestic heating.
French President Mr. Emmanuel Macron announced last month that France and Germany had agreed to an exchange of solidarity. France would help Germany with gas, while Germany would generate more electricity to supply France during peak consumption hours.
The French government has noted the possibility of power outages during the winter, as 25 of the 56 nuclear reactors are closed for routine maintenance work, and in some cases, repairs to corrosion problems. The government said the operating company EDF had promised to have them all up and running by winter.
Iran resumes gas exports to Turkey via pipelines
Head of the National Iranian Gas Company (NIGC) Dispatching Department Mr. Mohammadreza Jolaei said Iran has resumed gas exports to neighboring Turkey following the resolving of some technical issues in the export pipelines. The gas exports are carried out via a 2,577 km (1,601 miles) pipeline running from Tabriz to Ankara.
According to the official, Iran’s gas exports to Turkey had been halted for eight days since Monday, October 2 to carry out periodical repairs by both countries in accordance with a previous agreement.
Gas flow resumed on Monday, October 10 at 10:10 AM Tehran Local Time, after the completion of the repairs. Iran is Turkey’s second-biggest supplier of natural gas after Russia. Tehran sells about 10 billion cubic meters a year of gas under a 25-year supply deal to Turkey which it uses for electricity generation. After the re-imposition of U.S. sanctions in November 2018, Turkish President Recep Tayyip Erdogan made it clear that his country would continue to buy natural gas from the Islamic Republic.
Natural gas exports from Iran to Turkey had also come to a halt on March 31, 2020, after an explosion and fire at a pipeline on the Turkish side of the border; the reasons for the blast were not officially announced. Iran resumed gas exports to Turkey after a three-month hiatus. Earlier this year, Erdogan announced Turkey’s plans for purchasing more oil and gas from Iran amid greater energy needs and developing ties between the two countries.
Israel to allow natural gas extraction off Gaza
Israel has responded to Egyptian efforts to allow the Palestinian Authority to produce natural gas off the coast of Gaza, the Al-Monitor website reported on Sunday, a report confirmed by a PL executive committee member.
Egypt has been holding secret bilateral talks for several months after years of Israeli objections to producing natural gas off the coast of Gaza for security reasons. The field in question, located about 19 miles west of the Gaza coast, was discovered in 2000 by British Gas (now BG Group) and contains more than 1,000 billion cubic feet of natural gas. The cost of its development is estimated at $1.2 billion.
On February 21, 2021, the Palestinian Authority and Egypt signed a memorandum of understanding on offshore gas field development in Gaza.
Under the terms of the agreement, the Egyptian Natural Gas Holdings Company and the Palestinian Authority will have to work together to develop the gas field, transfer gas to the Palestinian areas and eventually sell it to Egypt. The Egyptian official explained that Israel had requested that operations extract the gas from Gaza begin in early 2024.
Argentina knocks on gas producers’ doors for pipeline financing
Argentina is in talks with the country’s natural gas producers over financing for the second phase of a key pipeline to transport the fuel to consumption hubs, Neuquen province’s energy minister. A lack of drilling rigs and transportation from Argentina’s massive Vaca Muerta region, the world’s second largest shale gas reservoir, are creating bottlenecks and stalling the area’s output, which has recently reached historical records.
About $2 billion needed for the second phase of the Nestor Kirchner gasline could be raised by a mix of bank and private financing. The line’s first phase will begin construction later this year using state funds. Negotiators on the second-phase project are exploring financing using early purchases of (transportation) capacity. The federal government is responsible for securing another portion of the line’s financing, he added, possibly through loans or bonds.
The line’s first phase initially will carry 11 million cubic meters per day (mmcmd) starting in 2023, expanding to 22 mmcmd in early 2024. By the time a contract to buy Bolivian gas expires in 2026, Argentina expects to have solved its transportation issues to replace those imports with fuel from Neuquen, which is being produced at half the price Argentina pays for Bolivian gas.
Argentina also wants to expand gas sales to Chile. It will begin exports in October of a fixed seasonal volume of 10 mmcmd through April to that nation, and aims to sign a supply contract with Uruguay to regularize exports of another 200,000-300,000 cmd. Its goal is gaining energy self-sufficiency and overturning a trade deficit that costs Argentina billions of dollars per year, especially in liquefied natural gas (LNG) imports.
YPF and Malaysia’s Petronas signed an early agreement in September over unconventional gas output, transportation and LNG, their second attempt at an alliance. A separate legislation also plans to encourage investment in lithium, hydrogen and other forms of green energy in Argentina.
New Greece-Bulgaria gas pipeline ‘means freedom’, says EU chief Mr. Leyen
The president of the European Union’s executive arm travelled to Bulgaria for the opening of a natural gas link between the country and Greece, emphasising the EU’s determination to stop relying on Russian energy imports.
Speaking at a ceremony in Sofia, European Commission President Ursula von der Leyen hailed the pipeline as an important contribution to limiting opportunities for Russia to use its gas and oil reserves to blackmail or punish the EU.
This pipeline changes the energy security situation for Europe. This project means freedom, von der Leyen told an audience that included heads of state and government from the region. The importance of the Gas Interconnector Greece-Bulgaria pipeline, which was completed in July, has significantly risen after Moscow decided to turn its natural gas deliveries into a political weapon.
A second European pipeline started operating Saturday when fuel flowed through the new Baltic Pipe, which was built to carry gas from Norway’s North Sea deposits, through Denmark and across the Baltic seabed to a compressor station in northwestern Poland. Its full capacity is expected to be reached next year.
Polish, Danish and Norwegian officials opened the pipeline Tuesday in northern Poland, stressing its role for the region’s independence from Russian natural gas. Last month Bulgaria ordered the expulsion of 70 Russian diplomats, triggering an angry response from Moscow. The 182-kilometer conduit runs from the northeastern Greek city of Komotini, where it links to the Trans-Adriatic Pipeline, up to Stara Zagora in central Bulgaria. Plans call for an initial capacity of 3 billion cubic meters of gas a year, and the prospect of future expansion to 5 billion cubic meters.
The entire offshore route is approximately 275 kilometers long. The expansion in Denmark consists of an approximately 210-kilometers pipeline, a new compressor station and an expansion of a receiving terminal.
Global LNG Development
CycleØ and HAM Group to build the first BioLNG plant in Chile
CycleØ and HAM Group will build the first BioLNG plant in Chile. The works will be carried out through HAM Chile and FNX Liquid Natural Gas.
HAM Group and CycleØ have been awarded the contract for the construction and operation of the first BioLNG plant in Chile, which will be located in the Ñuble region, with a capacity to process between 7500 and 16 500 m3/d of biogas. This represents reducing, in the heavy transport industry, more than 19 000 tpy of CO2, 96% of fine particle emissions and 85% of nitrogen oxide and sulfur emissions, compared to other fuels.
This BioLNG plant will be possible thanks to the commitment of Lipigas, a relevant player in the Latin American energy market, for an efficient and 100% renewable energy solution. The biogas comes from an anaerobic co-digestion plant for waste from a MaxAgro pig farm, where HAM Chile Spa will build and manage the processing facilities, which will have upgrading equipment, development by FNX Liquid Natural Gas, which will purify the biogas, which contains 50 – 60% methane, increasing its quality and obtaining a methane purity of over 99%.
This project reinforces the commitment of the companies to biogas, which has led the companies to develop several projects related to BioLNG and BioCNG, such as those in Girona, Spain, where they have opened the first 100% vehicular biomethane plant in the country, or in Faenza, Italy, where they are going to put into service one of the largest European BioLNG plants.
BP, Kosmos ink new deal for Mauritanian gas field
Energy giant BP and its partner Kosmos Energy have signed a new production sharing contract with Mauritania for the BirAllah gas field that could feed an LNG export development. Mauritania’s Ministry of Petroleum, Mines and Energy said in a statement that the agreement, which includes a period of 30 months, was signed on October 11.
According to the statement, the resources in Block C8, which contains the BirAllah and Orca discoveries, are larger than 50 trillion cubic feet of gas, more than the Greater Tortue Ahmeyim (GTA) field, which is under development. Along with operator BP and partner Kosmos, Mauritania’s SMHPM also holds a stake in Block C8. In June this year, the exploration period of offshore Block C8 expired.
BirAllah is located about 60 kilometers north of the GTA development and about 100 kilometers offshore Mauritania. Kosmos previously said the BirAllah has future development potential of around 10 million tons of LNG per year. The partners also plan to develop these resources in phases.
BP and Kosmos are currently working on the first phase of the Greater Tortue Ahmeyim FLNG project located offshore Mauritania and Senegal, but they also plan the second phase as well.
The project includes the conversion of Golar LNG’s Gimi to a floating LNG producer at Singapore’s Keppel shipyard and the construction of the FPSO by Technip Energies at COSCO Shipping’s Qidong yard in China. The 2.5 mtpa Gimi FLNG should start serving BP’s project under a 20-year deal next year.
Vinci, Sener to build another LNG terminal for Germany
French construction group Vinci has won a contract to build Germany’s second liquid natural gas (LNG) regasification terminal at Brunsbüttel on the mouth of the Elbe. The facility will allow imports of LNG to help replace Russian gas. In July, regulators fast-tracked approval for Germany’s first LNG terminal at the North Sea port of Wilhelmshaven.
The work will be carried out as an engineer, procure and construct contract by Vinci subsidiary Cobra IS as part of a consortium that also includes Spanish engineer Sener. When complete in 2026, the terminal will have two 165,000 cubic metre storage tanks and be able to produce some 10 billion cubic metres of natural gas a year.
Hamina LNG starts commercial operations
Hamina LNG’s terminal has been completed and Hamina LNG has started to provide services to terminal users. The cooldown procedure and commissioning tests of the systems and equipment were successful. Hamina LNG provides LNG storage services with a storage capacity of 30 000 m3 and regasification and injection services into the Finnish gas transmission network with a daily capacity of 4800 MWh. Other services include LNG truck loading, vessel unloading and loading, and vessel bunkering.
The Hamina terminal is the first LNG import terminal in Finland connected to the transmission network. With the current regasification and injection capacity, approximately 1.7 TWh of natural gas can be injected from the terminal into the transmission network annually.
Rolande, G&V Energy open fourth LNG fueling station in Belgium
Dutch firm Rolande and Belgian partner G&V Energy have opened their fourth liquefied natural gas fueling station for trucks in Belgium to cater to the growing demand for LNG in the transport sector. Located in Waregem, the new station follows the opening of the first LNG station for the duo in Antwerp in August 2020, in Habay in November 2020, and in Meer in June this year.
The new site features two LNG pumps and is located on the main North-South traffic axis for transit transport through Belgium, according to a joint statement. Rolande recently opened a fueling station in Hamburg, a major port city in northern Germany. This is the company’s sixth LNG fueling station in Germany, adding to its network of stations in the Netherlands and Belgium. European LNG fueling network continued to expand this year despite very high prices of the fuel. According to NGVA Europe, there are now 587 LNG fueling stations in Europe.
EIG’s MidOcean Energy Buys Tokyo Gas’ Interest in 4 Australian LNG Projects
For some energy CEOS, they see liquified natural gas (LNG) as a key enabler of the energy transition away from oil and is increasingly a geopolitically strategic energy source.
MidOcean Energy is an LNG company formed and managed by EIG Global Energy Partners. MidOcean Energy entered into a definitive agreement with Tokyo Gas Co., Ltd to acquire Tokyo Gas’ interests in a portfolio of four Australian integrated LNG projects.
Under the terms of the agreement, MidOcean will acquire Tokyo Gas’ interests in Gorgon LNG, Ichthys LNG, Pluto LNG, and Queensland Curtis LNG for total cash consideration of US$ 2.15 billion. These integrated projects span Australia’s western and eastern seaboard and are major suppliers of LNG to Asia, with a diverse set of long-dated take or pay contracts with investment grade counterparties, and to Australia’s domestic gas markets.
The portfolio is expected to generate approximately 1 million tonnes per annum of LNG net to MidOcean, production that is underpinned by long-life reserves and a globally competitive cost structure. The transaction is expected to close in first half of 2023, subject to customary closing conditions, including Australian regulatory approvals.
EPC contract in place for Brunsbüttel LNG terminal
French concessions and construction company VINCI has signed an engineering, procurement and construction (EPC) contract to build Germany’s first regasification terminal at Brunsbüttel at the mouth of the Elbe on the North Sea.
VINCI signed a contract through its subsidiary Cobra IS and in a consortium with Sener. The terminal will have a production capacity of 10 billion m3 of natural gas per year and will have two 165,000 m3 storage tanks along with auxiliary operating systems, infrastructure and buildings.
The Brunsbüttel terminal will enable Germany to import LNG by sea, to be unloaded there for storage and regasification before being injected into the German grid or transported by lorries or wagons. The installation is to be completed in 2026, with works lasting for 42 months. The LNG terminal is one of Germany’s strategic projects for securing energy independence, including those at Wilhelmshaven, Lubmin and Stade sites.
The cargo delivered by ADNOC will cover 137,000 cubic metres of LNG and will be the first LNG to be supplied to the German gas market via the floating LNG import terminal at Brunsbüttel.
Japan to offer JERA $900 million of loans for LNG
Japan has agreed to offer 130 billion yen ($899 million) in loans to JERA, the country’s biggest power generator, to help to secure liquefied natural gas (LNG) amid a surge in spot prices. The state-owned Japan Bank for International Cooperation (JBIC) on
Thursday said it will extend the loans to JERA, a joint venture between Chubu Electric Power and Tokyo Electric Power, in syndication with private sector financial institutions.
Japan wants to avoid an energy crunch by offering financial support before winter, when heating demand is expected to increase. Spot LNG prices remain at high levels because of the risk of disruption to supply from Russia resulting from its invasion of Ukraine. Japanese utilities buy the bulk of their LNG through long-term contracts, but about 20 per cent comes from the spot market.
Klaipeda LNG terminal resumes regular operations
Klaipeda LNG terminal resumed its regular operations on the morning of 1 October 2022, following the successful completion of scheduled maintenance works and water bottom cleaning works of the LNG terminal’s water area.
The operation of the LNG terminal was temporarily suspended on the morning of 27 September, on the same day the FSRU Independence was relocated and moored at the berth of AB Klaipedos Smelte due to the nature of the planned works. The FSRU returned to its normal mooring place at the jetty of the Klaipeda LNG terminal on the evening of 30 September and LNG regasification and gas supply to the Lithuanian gas transmission system resumed on the morning of 1 October.
During the scheduled maintenance works, the LNG terminal jetty infrastructure – the high-pressure loading arms, the gas pipeline, emergency power generation facilities, mooring system and other equipment was inspected. Scheduled maintenance works at the KN-operated LNG terminal in Klaipeda is carried out annually. Information on the planned maintenance of the LNG terminal is provided on the KN website and in publicly available schedules.
Venture Global and EnBW expand LNG partnership
US liquefied natural gas (LNG) export project developer Venture Global and German energy company EnBW have decided to expand their existing LNG partnership to 2 million tonnes per annum (mtpa).
The companies entered into 20-year sales and purchase agreements in June 2022 for 1.5 mtpa of LNG. Now, EnBW has increased the quantity of its long-term LNG offtake from Venture Global by an additional 0.5 mtpa from Plaquemines and CP2 LNG. Germany entered into charter agreements to secure four floating storage and regasification units (FSRUs), representing one of the first big steps to cut the country’s dependence on Russian gas.
The country is building floating LNG terminals in Brunsbüttel and Wilhelmshaven and at Lubmin and Stade ports. RWE and Uniper will be operating two FSRUs chartered by the federal government at the Brunsbüttel and Wilhelmshaven sites from the end of 2022 or the beginning of 2023. Until the end of March 2024, the volumes of LNG needed to exploit the capacity of the LNG terminals will be procured exclusively by RWE and Uniper and by EnBW and its subsidiary VNG.
Shell, Exxon to win new roles in Qatar’s LNG expansion
Qatar will bring on board Shell SHELL and Exxon Mobil XOM.N as partners in the second phase of the Gulf country’s giant liquefied natural gas (LNG) expansion, three sources familiar with the matter told Reuters.
The North Field South (NFS) expansion is part of Qatar’s ambitious drive to consolidate its position as the world’s top LNG exporter, with demand for the fuel growing as Europe scrambles to substitute the Russian pipeline gas that made up almost 40% of the continent’s imports.
The first North Field East (NFE) phase is expected to add 33 mtpa while the NFS phase will add 16 mtpa. Shell and Exxon are also expected to be named as NFS partners in the coming weeks. Exxon declined to comment. Exxon, Shell, TotalEnergies and their peers are racing to grow their LNG supplies with natural gas expected to play a central role in global efforts to reduce greenhouse emissions. Al-Kaabi said his company would become the world’s largest trader of LNG over the next 5-10 years, moving ahead of Shell and TotalEnergies.
Wärtsilä to supply new Bio-LNG plant in Latvia
Finland-based technology group Wärtsilä will supply its biogas upgrading and liquefaction solutions to Latvian company AS Agrofirma Tervete (AT), a move that will enable AT to turn its agricultural waste into Bio-liquefied natural gas (LNG) at its site in Tervete, Latvia.
To upgrade the biogas the company will harness Wärtsilä’s Puregas CA50LBG technology, enabling the removal of carbon dioxide (CO2) and hydrogen sulphide (H2S) followed by its MR10 (mixed refrigerant) technology for the liquefaction stage. The upgrading process involves the Puregas solution separating CO2 from the biogas through chemical adsorption, turning raw biogas into biomethane, which can be liquefied to produce more than ten tonnes of Bio-LNG per day.
According to Wärtsilä, the new Tervete plant is expected to become fully operational by the end of 2023.
Technological Development for Cleaner and Greener Environment Hydrogen & Bio-Methane
Scottish Hydrogen train project on track to deliver climate targets
An innovative hydrogen train project led by the University of St Andrews has successfully completed its next phase of testing and is on track to help the Scottish Government meet its ambitious Net Zero carbon targets. The project is a partnership between the University of St Andrews, Transport Scotland, Scottish Enterprise, Ballard Motive Solutions, Abbott Risk Consulting, ARUP, Aegis and Angel Trains.
Testing of the hydrogen-powered train took place at the Scottish Rail Preservation Society located in Bo’ness last month, which included a series of workshops to define the future strategy for rail decarbonisation in Scotland and provided demonstration runs of the train with key stakeholders and project partners.
The project entailed the conversion and re-use of a 40-year-old three-car Class 314 train to a hydrogen fuel cell electric powertrain. The ex-Class 314 train has been re-tractioned and reclassified as a Class 614 hydrogen-powered train. Testing on track and the engineering development required to implement the conversion has kickstarted the growth of a critical skills base for hydrogen trains in Scotland.
This innovative project has driven a huge amount of learning from converting existing rail rolling stock and has shown how this can create new supply chain opportunities and skills for the emerging green economy, while reducing emissions from the Scottish rail sector. The Scottish Government has set a target date to decarbonise passenger rail transport by 2035.
The project has demonstrated that Scotland has the capability to modify existing rolling stock into hydrogen-powered trains, playing a critical role in the climate challenge. It has also identified some of the very significant safety and operability challenges associated with implementing hydrogen propulsion on rolling stock that was designed to standards in place 40 years ago.
Hydrogen trains can be the key enabler for the large-scale production of green hydrogen and the distribution of refuelling infrastructure across Scotland, building the Scottish supply chain pivotal to the future green economy.
Hydrogen is a fuel solution for the maritime industry to meet its emissions reduction target
A leading expert with extensive experience in the operation and engineering of ships, has called for wider use of hydrogen as a fuel that will ultimately help the maritime industry meet its emissions reduction target by 2050. The members’ meeting focused on this year’s theme of “New Technologies for Greener Shipping”, where Trakakis elaborated on “EU & IMO Fuel Transformation Regime – Hydrogen as Fuel Solution for meeting IMO 2050”.
His proposal is based on combining LNG with steam in a gas reformer to convert LNG molecules into hydrogen and CO2, and thus enable shipowners to comply with the IMO’s decarbonisation targets set for the shipping industry. IMO 2050 aims for total annual greenhouse gas (GHG) emissions from international shipping to be reduced by at least 50% by 2050 compared to 2008.
Trakakis, who has worked at almost all levels of engineering at leading Greek and international shipping companies and maritime research institutes, has studied extensively the challenges and benefits associated with the application of natural gas as fuel.
RINA is a collaboration of some 4,000 experts around the world who specialise in testing, inspection, certification and engineering solutions across a wide range of markets, including marine. They promote a green approach to the maritime industry with a strong commitment to energy saving, emissions reductions and optimisation of fuel consumption.