NGS’ NG/LNG SNAPSHOT – OCTOBER 2020, VOLUME 1

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City Gas Distribution & Auto LPG

Record 2.72 lakh new PNG connections provided in FY20: Indraprastha Gas Ltd

Indraprastha Gas Ltd, the gas retailer in the national capital and cities around it, on Monday (Sep 28) said it gave out record 2.72 lakh new connections for piped cooking gas to household kitchens

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during the financial year 2019-20. Also, the firm set up 55 new CNG stations during April 2019 and March 2020, taking the total number of CNG stations set to 557. This was announced by IGL Chairman P K Gupta while addressing the shareholders at the 21st annual general meeting (AGM) of the company. Addressing the shareholders, Gupta said that driven by higher volumes, the net profit of IGL rose 44% in 2019-20 to Rs 1,137 crores. During 2019-20, total sales volume grew 9% over the previous year with CNG recording 8.4% growth in volumes and PNG recording volume growth of 12%. The consolidated profit after tax (PAT) of IGL after considering the contribution of the associate companies, namely Central UP Gas Ltd (CUGL) and Maharashtra Natural Gas Ltd (MNGL), was Rs 1,249 crores in 2019-20. Giving an overview of future plans, he said the firm will consolidate its presence in existing areas as well as expand in new geographical areas. IGL, he said, has been aligning its strategy to seize the emerging opportunities in the city gas distribution (CGD) sector and to meet the future challenges. IGL, he said, has drawn up plans to set up new CNG stations and create pipeline infrastructure in its current areas of operations as well as newly acquired areas. The price differential of CNG versus alternate fuel, the spread of CNG infrastructure in new geographical areas and building of green corridors will continue to drive the conversion of petrol-driven private vehicles to CNG mode, he said. Gupta said IGL is aiming to improve upon its record in domestic PNG connections with stiff targets.IGL is also working on plans to set up LNG/L-CNG stations, provide consultancy services in setting up CGD projects, manufacturing of gas meters, promote uses of natural gas in home appliances and also explore new business avenues, he said. The shareholders approved a dividend of 140% at the AGM.IGL has a city gas license to sell CNG to automobiles and PNG to households in Delhi, Noida, Greater Noida, Ghaziabad (in Uttar Pradesh), Rewari, Gurugram, Karnal, Kaithal, Fatehpur and Muzaffarnagar. It sells CNG to over 11.5 lakh vehicles in NCR through a network of 557 CNG stations. It also supplies PNG to nearly 14 lakh households in these cities. The pipeline network is being further expanded by IGL to cover Ajmer, Pali and Rajsamand in Rajasthan, Shamli, parts of Meerut, Hamirpur and parts of Kanpur in Uttar Pradesh.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/record-2-72-lakh-new-png-connections-provided-in-fy20-indraprastha-gas-ltd/78375865

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Business environment for City Gas Distribution at its best: D K Sarraf, PNGRB

The Virtual Summit on City Gas Distribution: Developing the Infrastructure for a Gas-based Economy is a digital initiative of ETEnergyworld with GAIL, ABB, LocusView,

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Bynry and Federation of Indian Petroleum Industry (FIPI) as partners. The business environment for City Gas Distribution (CGD) companies in India is at its best currently with the government and the regulator pushing for creation of supporting infrastructure and market reforms, D K Sarraf, Chairperson of downstream Oil & Gas regulator Petroleum & Natural Gas Regulatory Board (PNGRB) has said. Delivering his address as Chief Guest at the event, Sarraf pointed out that CGD companies are in a unique business as natural gas is available at subsidized prices for domestic Piped Natural Gas (PNG) and Compressed Natural Gas (CNG) and there is marketing exclusivity, no competition for some years. Courts are also passing orders directing industries using polluting fuel to switch to natural gas, that is, support of the judiciary and the green tribunals. The number of authorized Geographical Areas (GAs) for CGD has grown from 34 in 2014 to 230 now, with 71 per cent of the population covered under the CGD net currently as compared to 9 per cent six years back. In the same period, domestic PNG connections have grown from 24 lakh to 66 lakh while the number of CNG stations has grown from 810 to 2,300. Sarraf said this growth is expected to continue as PNG connections would increase from the current 66 lakh to 5 crore in the next six years. “And the number of CNG stations would increase from the current 2,300 to more than 10,000 in the same period, thanks to the commitment of the CGD entrepreneurs during the ninth and the tenth CGD bidding rounds,” he said. The later half of the event included two presentations by ABB India and Nomura Research Institute covering the technology aspects of the CGD projects, a fireside chat with Shahar Levi, Co-founder and CEO of LocusView and a panel discussion titled “Leveraging Technology to Ramp up Regional CGD market Expansion”.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/business-environment-for-city-gas-distribution-at-its-best-d-k-sarraf-pngrb/78367308

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New entrants unlikely to impact gas distribution players till FY23

The draft regulations require the CGD players to provide third-party access at regulated tariffs. Draft regulations by the Petroleum and Natural Gas Regulatory Board (PNGRB),

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for third parties, has once again put the spotlight on competition. These norms, drafted by the oil and gas regulator, pertain to transportation tariffs for third parties that use the city gas and compressed natural gas (CNG) distribution network of existing players. Legacy city gas distribution (CGD) players Indraprastha Gas (IGL), Mahanagar Gas (MGL), and Gujarat Gas have exclusivity in their area of operations. After expiry of the exclusivity period, pipeline infrastructure of these firms can be shared by new entrants. These norms apply only to legacy distribution areas, and not to distribution areas awarded under auction rounds. Share prices of incumbent players took a hit on Thursday. Analysts, however, don’t see an impact till 2022-23 (FY23) and say the hit may not be as hard as feared even after that point. PNGRB’s draft regulations require CGD players to provide third-party access at regulated tariffs, which will be computed separately for CGD and CNG to yield a post-tax return on capital employed (RoCE) of 12% (on net fixed assets). The regulator has differentiated between compressed gas which involves higher compression charges compared to piped natural gas (PNG) and industrial gas. Analysts at Nomura say an assured 12% post-tax RoCE would be attractive for legacy CGDs. The fact that tariffs will be based on the cost of services calculated by CGDs themselves is another key positive. However, some impact of competition, and the resulting hit on volumes and earnings of CGD players is expected. This is despite any impact being a few years away. Yogesh Patil, analyst at Reliance Securities, says there could be a 16-17% impact on earnings of IGL, MGL, and Gujarat Gas, but only after FY23. Gujarat Gas remains Patil’s top pick, given its high exposure to industrial gas. Notably, not all analysts anticipate such a deep impact, referring to the projection of 20 per cent fall in volumes for incumbents. Many analysts say such steep impact will not be felt, citing the international arena in which the impact on volumes has been 10% after 5-7 years of the entry of new players.

Further, in India, the timeline for setting up a CNG station or other infrastructure after securing all approvals is much longer than overseas. What’s important is that the domestic market remains under-penetrated, and there are many opportunities prevailing outside the key regions of Delhi, Mumbai, and Gujarat, where legacy firms operate. As a result, competition has multiple geographies to choose from, rather than compete with established players in their bastions. In addition, the legacy firms are expanding to other regions and winning new bids, which will drive volumes and offset the impact of potential competition. Public sector oil-marketing companies (OMCs) like Bharat Petroleum, Hindustan Petroleum, and Indian Oil may consider entering CNG distribution, even though they are already getting a share of the profit by partnering CGDs. OMCs also hold stakes in many of the legacy CGDs. Further, the CNG business is much smaller for OMCs, who earn significant profits from oil refining and marketing, says Probal Sen of Centrum Broking. Therefore, Sen does not expect CGDs to feel extreme heat as anticipated by some, and says that factoring in the competition CGDs are already trading at 17-20x their forward earnings. He expects IGL and Gujarat Gas to gradually rerate to a one-year forward P/E of 20-25x. Motilal Oswal Securities affirms Gujarat Gas as its top pick, which could receive a huge volume boost from pollution-curbing initiatives. IGL, MGL, and Gujarat Gas, which have been subdued in recent weeks, corrected 0.8-3.7% on Thursday, while the Sensex was down 2.92%.

https://www.business-standard.com/article/companies/new-competition-unlikely-to-impact-city-gas-distribution-players-till-fy23-120092401491_1.html

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CGD sector to record volume growth of 10 per cent CAGR through 2030

The report covers the growth registered by three main players Indraprastha Gas (IGL), Mahanagar Gas (MGL) and Gujarat Gas. IGL incorporated a strong 22% addition taking

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the total number of consumers to 1.4 million during FY20. The City Gas Distribution (CGD) sector in India is set to register Compounded Annual Growth Rate (CAGR) of 10% over the next decade through 2030 thanks to the government’s efforts to improve the share of natural gas in India’s primary energy mix to 15% from 6% currently. The report covers the growth registered by three main players — Indraprastha Gas (IGL), Mahanagar Gas (MGL) and Gujarat Gas. IGL incorporated a strong 22% addition taking the total number of consumers to 1.4 million during FY20. In comparison, Mahanagar Gas added 100,000 consumers taking the total to 1.26 million households. Gujarat Gas also added 93,000 households taking the total to 1.4 million. The report said Gujarat Gas has set up 52 net new CNG stations, near IGL’s number of 55, while Mahanagar Gas added just 20 CNG stations in FY20. In terms of pipeline infrastructure, Gujarat Gas remains ahead of the other two with a total network of 24,300 kilometer, while IGL has a total network of 14,605 kilometer and Mahanagar Gas’ 5,630 Kilometer. Gujarat Gas was awarded six geographical areas (GAs) in the tenth round and the company is looking forward to the 11th round of CGD bidding which may include GAs adjoining to its operating areas.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/cgd-sector-to-record-volume-growth-of-10-per-cent-cagr-through-2030/78269149

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Delhi Pollution Control Committee seals 16 units for violating norms

The Delhi Pollution Control Committee (DPCC) has sealed 16 units in Mandoli industrial areas for using non-PNG fuel and operating without consent since

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August 1, officials told a Supreme Court-mandated pollution control body on Tuesday (Sep 22). The Delhi Pollution Control Committee (DPCC) has sealed 16 units in Mandoli industrial areas for using non-PNG fuel and operating without consent since August 1, officials told a Supreme Court-mandated pollution control body on Tuesday. The DPCC conducted an intensive inspection in the Mandoli industrial area “even during the night and early morning” to detect units violating the norms, officials informed the Environment Pollution (Prevention and Control) Authority. “Sixteen units operating without consent and not using piped natural gas (PNG) have been sealed. Of these, 11 have been closed permanently for using coal as fuel,” said the EPCA, which reviewed the progress made by various agencies in curbing polluting activities in pollution hotspots. Notices for levying environmental compensation have been issued to all these units. One of these units has already deposited Rs 5 lakh, the DPCC said. Its teams also detected units using coal as fuel in border areas in Uttar Pradesh. Accordingly, details have been shared with the state’s authorities to take appropriate action. EPCA chairperson Bhure Lal brought to the attention of the DPCC that there were underground coal-fired furnaces operating illegally in the periphery of Mandoli. The DPCC said certain furnaces had been identified and sealed, but more action would be taken.

https://www.republicworld.com/india-news/city-news/delhi-pollution-control-committee-seals-16-units-for-violating-norms.html

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Gujarat Gas stock may rise by 10% by November

Gujarat Gas Limited is India’s largest City Gas Distribution player with presence across 23 districts in Gujarat, Union Territory of Dadra & Nagar Haveli and

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Thane Geographical Area, which includes Palghar district of Maharashtra. In the tenth bidding round announced by PNGRB, the company has won six geographical areas comprising of 17 cities in the state of Punjab, Haryana, Madhya Pradesh and Rajasthan, making Gujarat Gas a pan India company. The company has India’s largest customer base in residential, commercial and industrial segments. The company wants to reach out to every possible natural gas user in its expanded geographical area and achieve efficiencies and effectively manage the transformational changes in the sector. This major gain in productivity would benefit all the key stakeholders i.e. customers and shareholders. The company has more than 24,000 km of gas pipeline network. It has more than 400 CNG stations and distributes close to 10 MMSCMD(as on 31/03/2020) of natural gas to over 14,50,000 households, approximately 2 lakh CNG vehicles (fueled per day) and to more than 3700 industrial customers. The Q1FY21 financial performance was affected due to Covid-related disruptions as there was substantial demand destruction with volumes dipping drastically in both the industrial and CNG segment. The company reported a steep decline in revenue, profit and margins overall. There has been a small recovery since May after business and commerce started to open following the lockdown. The June quarter of 2020 financial results were disappointing with net sales at Rs 1,082 crore, down 58%, net profit at Rs 58 crore, down 75% and EBIDA at Rs 200, down 59% year-on-year respectively. Gujarat Gas is expected to post relatively higher volume sales in Q2 as majority of its revenue comprises of industrial demand which is a segment that is expected to recover earlier than CNG. Analysts tracking the sector are seeing a sharp recovery in many industrial units of Gujarat such as ceramic units, pharmaceutical companies and chemical and fertilisers players during the month of August and September. There has been a blanket ban on polluting fuels such as coal gasifiers which will benefit volume uptick for Gujarat Gas in the coming months. In case of CNG where volumes will be lower and slower during these pandemic times, any downward revision of gas prices and high retail prices of petrol and diesel makes the economics of CNG favourable and should negate the impact of lower demand to a certain extent. Moreover, Gujarat Gas has passed only a small portion of this revision in gas prices to its end consumers. The Gujarat Gas stock is quoting at Rs 295 and analysts and brokers are expecting it to jump by 10% in the next three months’ time frame by November this year.

https://www.sundayguardianlive.com/business/gujarat-gas-stock-may-rise-10-november

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New deadline for covering Chandigarh by underground piped natural gas: FY 21-22

The work in majority of the sectors of the city was scheduled to get completed by March 2019, but only 22 sectors have been covered till now.

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The work of covering the city by laying underground piped natural gas (PNG) pipelines will now be completed by financial year 2021-22. This is the new deadline set as the work progressed slowly due to COVID lockdown and unavailability of labour for some time. When asked as to what has led to the slowing down of the work in the city, Sanjay Tarat, asset head of the Indian Oil Adani Gas Pvt Limited, said, “We were executing work in a planned and phased manner as we can’t dig up whole of the city at the same time. Plus, we were having some trouble due to the COVID and return of migrant labourers back to their hometowns.” There were certain clearances required from the Municipal Corporation as some stretches had to be dug up. So far, as many as 26,436 customers have registered for PNG supply in Chandigarh. PNG installation has been completed for 19,039 of households and 14,568 of customers are using PNG supply for their daily cooking needs. When reminded that there was a deadline of covering the entire city by March 2019, the official said, “Regarding project completion by March 19, I think there is some miscommunication on this. PNG supply availability has expanded in a phased manner starting from southern sectors of UT Chandigarh and gradually expanding towards northern sectors. As of date, PNG supply is available in a total of 22 sectors in Chandigarh and there is a plan to complete PNG connectivity in entire Chandigarh by financial year 2021-22.” he official said that people are shifting from the traditional LPG. For piped natural gas, there has to be a complete shift in the infrastructure as well. Gradually, people are coming forward. In sectors where gas pipeline is working, people had their gas stove appliances designed according to LPG and the company had changed the appliance and infrastructure according to the needs of PNG main pipeline.

https://indianexpress.com/article/cities/chandigarh/new-deadline-for-covering-chandigarh-by-underground-piped-natural-gas-fy-21-22-6616262/

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GO TOP

Electric Mobility & Bio- Methane

Road transport ministry notifies H-CNG as automotive fuel

The Road Transport and Highways Ministry has notified regulations for various alternative fuels to further promote sustainable transportation,

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Union Minister Nitin Gadkari said on Sunday (Sep 27). “After testing use of H-CNG (18 per cent mix of hydrogen) as compared to neat CNG for emission reduction, the Bureau of Indian Standards has developed specifications of hydrogen-enriched compressed natural gas (H-CNG) for automotive purposes as a fuel,” the Road Transport, Highways and MSME Minister said in a tweet. The notification for amendments to the Central Motor Vehicles Rules 1989, for inclusion of H-CNG as an automotive fuel has been published, the minister tweeted. It is a step toward an alternative clean fuel for transportation, he added.

https://www.livemint.com/news/india/road-transport-ministry-notifies-h-cng-as-automotive-fuel-11601258021590.html

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Green transport: E-autos to replace diesel ones under Smart City Mission

To improve the city’s public transport and reduce pollution, the Amritsar Smart City project envisions replacement of the old diesel autos plying in the city with e-autos under the Smart City Mission.

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The project is being funded by Amritsar Smart City Limited and the French Development Agency (AFD) under the supervision of the Ministry of Housing and Urban Affairs (MoHUA). Giving more information about it, Amritsar Smart City Ltd CEO Komal Mittal said, “Amritsar will be the first city in the country where e-autos will be made part of the public transport system on such a large scale. Significant subsidy will be provided to auto drivers along with easy access to loans at favourable terms.” In the first phase, it is proposed for replacement of approximately 7,000 diesel autos. The replaced autorickshaws will be scrapped to prevent it from getting resold or reused. She said e-autos were more sustainable and futuristic in terms of technology in comparison to the CNG autos. E-autos will help in reducing the level of noise and air pollution in the city, at a significantly lower vehicle operation cost. According to officials, the operational cost of diesel and CNG autos is Rs 2.68 and Rs 1.48 per km whereas it is 0.68 paise in case of e-autos. The annual maintenance cost of diesel and CNG autos is Rs 16,000 and 12,000, respectively. For e-auto, it is only Rs 5,000. The Punjab government has also exempted permit fee, motor vehicle tax and vehicle passing fee for e-autos, whereas no such discount is provided to diesel and CNG auto owners. According to Mittal, 20 to 25 locations in the city have been identified for setting up charging stations for which expression of interest has already been floated. Electronic autos are also superior to the currently available e-rickshaws in terms of speed, engine power, battery life, passenger safety and comfort.

https://www.tribuneindia.com/news/amritsar/green-transport-e-autos-to-replace-diesel-ones-under-smart-city-mission-146810

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Govt notifies new standards for hydrogen fuel cell vehicles

The road transport and highways ministry on Thursday (Sep 24) notified new standards for safety evaluation of environment friendly hydrogen fuel cell-based vehicles.

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“The ministry of road transport and highways has notified the standards for safety evaluation of vehicles being propelled by hydrogen fuel cells through an amendment to central motor vehicles rules, 1989,” an official statement said, adding that these standards are at par with international standards. Prospective manufacturer and suppliers of such vehicles have the standards available for the testing of such vehicles. “This would facilitate the promotion of Hydrogen Fuel Cell based vehicles in the country which are futuristic, energy efficient and environment friendly, while being compliant to international standards,” Union road transport and highways minister Nitin Gadkari said in a tweet. The government has been trying to push adoption of electric mobility as well as clean, alternative fuels, including ethanol, methanol, bio diesel, as one of its ways to reduce pollution and cut massive fuel import bill.

Last month, the transport ministry had issued a draft notification to include hydrogen-enriched compressed natural gas (CNG) as an automobile fuel, in its attempt to promote green fuel for automobiles in the country.

https://www.livemint.com/auto-news/govt-notifies-new-standards-for-hydrogen-fuel-cell-vehicles-11600960206293.html

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Govt working to reduce e-vehicle tax: Niti Aayog CEO

Niti Aayog CEO Amitabh Kant said the government was pushing for electric mobility with FAME and FAME 2 schemes, bringing down the rate of taxes on electric vehicles at 5%,

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as compared to 28% for other vehicles and 43% for hybrid vehicles. “We also give tax exemption, up to Rs 1 lakh, to people who are buying electric vehicles. As a consequence of all this, the focus on electrification will be huge and if India has to emerge as a leader in clean, connected and shared mobility, there are two important things to keep in mind — one is that India is a major user of two- and three-wheelers and 80% of people travel in these vehicles. Second, battery will be an important component. Battery manufacturing and storage will be a key component and storage will have to be linked to renewable energy integration with the grid,” he said in an interactive session for students of the first batch of MS (Research) in e-mobility programme, organised by IIT-Guwahati on Saturday (Sep 19).
Kant congratulated the IIT-Guwahati fraternity for starting the unique course on e-mobility at the premier technology institute. “This is a path-breaking initiative because India is in the middle of a mist of technological disruption and revolution. This disruption will lead to a huge and massive shift from combustion vehicles to electric vehicles and we are heading towards a shared and connected zero-emission world,” he said. Anil Srivastava, mission director of Niti Aayog, said it was looking forward to making more energy-efficient and less-costing batteries. “The e-vehicles are not required to give much tax. India is a great user of two and three-wheelers and e-vehicles will make a great opportunity in it,” said Srivastava. Speaking during the session, Prof TG Sitharam, director of IIT-Guwahati, said, “From this year, we have introduced a policy such that every academic department should have at least three successful industry advisors who are successful in research and development in industry, so that the curriculum can be inclusive of industry relevant problems over a period of time. If we look at the government’s policy, India wants to achieve 30 percent of e-mobility by 2030”.

Source: ET Auto

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Tamil Nadu submits road map for electric vehicles to NGT

Moving a step closer to creating the infrastructure for electric vehicles in the state, the Tamil Nadu government has submitted an action plan to the National Green Tribunal (NGT),

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detailing the measures it plans to take up for a smooth transition to electric-powered vehicles. This comes almost a year after the state unveiled its Electric Vehicle Policy-2019 which focuses on creating charging infrastructure and attracting start-ups. As per the plan which was submitted to the NGT by Principal Secretary and Transport Commissioner TS Jawahar, the government plans to give 100 per cent tax exemption and waive off permit fees for all electric vehicles (EV) attached to educational institutions till December 2022. Jawahar said the government was making efforts to set up grid-charging stations at six major cities — Chennai, Coimbatore, Tiruchy, Madurai, Salem and Tirunelveli. “The charging stations will be set up at every 25 km along both national and state highways. Also, EV-related industries will be provided 100 per cent exemption from electricity tax till December 31, 2025, and stamp duty exemption during purchase of land,” the official said. The transport authorities said the state is planning to attract Rs 50,000-crore investment under the EV Policy – 2019 and in the next decade all autos and taxis in six major cities will be converted to EVs. Meanwhile, transport authorities said the state is planning to attract Rs 50,000-crore investment under the favourable EV Policy – 2019 and in the next decade all autos, taxis and app-based transport aggregators in the six major cities will be converted to EVs. Besides, around 1,000 EV buses will be introduced every year and private operators will be encouraged to shift to electric-powered buses.

Scrapping of old vehicles
The Central government is actively considering a scraping policy throughout the country. Once the guidelines are received, the state government will follow, said transport commissioner TS Jawahar before the NGT. As per the available statistics from 1961 to 2019, the vehicular population of the state, both transport and non-transport, is around 2.90 crore, of which 23 per cent vehicles were registered between 1961 to 2004. Only 10.4 per cent of these vehicles ply on road. The remaining 77 per cent of vehicles have been registered since 2004.

https://www.newindianexpress.com/states/tamil-nadu/2020/sep/21/tamil-nadu-submits-road-map-for-electric-vehicles-to-ngt-2199632.html

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Indian Oil plans for a clean future with 50 hydrogen-CNG buses in Delhi

Indian Oil Corp., one of the biggest refiners in Asia, is taking the bus to reach what it considers the future of energy: hydrogen.

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The company that sells almost half the oil products in India will deploy 50 buses around the capital powered by a blend of hydrogen and compressed natural gas, Chairman Shrikant Madhav Vaidya said. The fleet will serve the public and could start rolling as soon as this year, potentially creating a new market for a producer trying to rebound from its first annual loss in at least 20 years. Hydrogen, long touted as the fuel of the future, had a bit of a coming-out party at this week’s S&P Global Platts Asia Pacific Petroleum Conference, as some of the world’s biggest refiners, drillers and traders extolled it as key to fighting climate change. The efforts are emblematic of an oil industry trying to reposition itself after the pandemic wiped out demand and as shareholders call for reduced greenhouse gas emissions. “Hydrogen seems to be the most disruptive and has the potential to grow 10 times between now and 2050,” said Giovanni Serio, global head of research at Vitol Group, the world’s biggest independent oil trader. “It could be the one to solve the problem of storing energy and also addressing later the demand from the transportation sector.” Nearly $11 trillion of investment in production, storage and transport infrastructure is needed for hydrogen to meet about a quarter of the world’s energy needs by 2050, according to Bloomberg NEF. The fuel’s unique advantages include high energy density, flexibility of production sources and a wide range of applications, Vaidya said. It also emits no greenhouse gases when produced with renewable energy, although most current production is done via polluting methods. “With India and Asia set to lead the global energy demand in the future, hydrogen does present a potential panacea,” Vaidya said. Not everyone is gung ho about the gas playing a role in the near future. Costs still haven’t come down enough, said Ed Morse, global head of commodities research at Citigroup. There also are safety concerns after hydrogen tanks in South Korea and Norway exploded last year. Morse sees carbon capture as a more realistic near-term energy transition prospect. “I am looking at hydrogen as an end-of-the-decade phenomenon,” he said. Indian Oil, which has also developed a hydrogen-spiked compressed natural gas fuel and plans to build fuel cells, isn’t alone in extolling the virtues of hydrogen:

https://theprint.in/economy/indian-oil-plans-for-a-clean-future-with-50-hydrogen-cng-buses-in-delhi/504050/

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Gas/ Pipelines/ Company News

GAIL wins leader award at Frost & Sullivan, TERI’s Sustainability 4.0 Awards

GAIL India Ltd has won the leader award in mega large business process sector category in 11th edition of Frost & Sullivan and The Energy and Resources Institute (TERI) Sustainability 4.0 Awards 2020.

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The award recognises corporates in sustainable development practices that provide a measurable and verifiable framework for sustainability. “The award is essentially a result of eco-conscious development GAIL has been pursuing for the past 36 years,” said GAIL Chairman and Managing Director Manoj Jain. Frost & Sullivan and TERI Award Assessment is an in-depth and comprehensive assessment based on a well-defined framework covering all critical areas of sustainability. GAIL is India’s leading natural gas company with diversified interests across the natural gas value chain of trading, transmission, LPG production and transmission, LNG re-gasification, petrochemicals and city gas. It owns and operates a network of around 12,500 km of high-pressure trunk pipelines.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/gail-wins-leader-award-at-frost-sullivan-teris-sustainability-4-0-awards/78276493

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ONGC puts out fire at Hazira gas plant, supply to resume soon

State-run ONGC has succeeded in putting out a fire that broke out following a leak at its Hazira gas processing plant near Surat in Gujarat in the early hours and

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efforts were on to resume supply at the earliest, the company said in a statement on Thursday (Sep 24). There were no casualty or injury in the fire, which broke out at 3 a.m and emergency shutdown measures were put into motion immediately the company said. Gas supply to the country’s main trunk pipeline was affected after the processing plant was shut down but CNG and PNG services in cities fed by the Hazira-Vijaipur-Jagdishpur pipeline remained unaffected. A statement from state-run pipeline operator GAIL said it is maintaining uninterrupted gas supply to CNG and PNG operators even after losing 40% of daily allocations after the ONGC gas processing plant was shut down. Gas processing plants remove moisture and various non-methane hydrocarbons and fluids from raw natural gas to produce what is known as ‘pipeline quality’ dry gas.

https://timesofindia.indiatimes.com/business/india-business/ongc-puts-out-fire-at-hazira-gas-plant-supply-to-resume-soon/articleshow/78301029.cms

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GAIL cuts gas supplies to clients after fire at ONGC plant

GAIL supplies about 60 million standard cubic meters of gas through its northwestern pipeline grid to customers in the states of Gujarat, Uttar Pradesh, Madhya Pradesh,

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Rajasthan and Goa. Indian gas transporter GAIL (India) Ltd has cut supplies by about 40% to customers, mainly power and fertiliser companies, after a pipeline rupture led to a fire in an Oil and Natural Gas Corp plant, a company source said. There was no immediate comment from GAIL.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/gail-cuts-gas-supplies-to-clients-after-fire-at-ongc-plant/78294592

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Oil Ministry yet to recover $510 mn from contractors under PSC: CAG

The Comptroller and Auditor General (CAG) has said that the Ministry of Petroleum and Natural Gas has not recovered $510 million as cost of unfinished minimum work programme (CoUMWP)

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from contractors in respect of 45 blocks. The CAG report on Union Government (Economic & Service Ministries-Civil) – Compliance Audit Observations, which includes important audit findings, was presented in the Parliament on Wednesday.

It noted that the government awarded 254 blocks during the New Exploration and Licensing Policy’s (NELP) I to IX rounds for exploration of oil and gas. As per the terms and conditions of Production Sharing Contracts (PSC), contractors are required to pay the cost of unfinished minimum work programme, if the block is relinquished or terminated by government. However, contractors of 54 relinquished blocks failed to pay the CoUMWP as specified in the PSCs. “An amount of $510.79 million (Rs 3,652.64 crore), which was 77 per cent of the Ministry of Petroleum and Natural Gas’s (MoPNG) approved amount of $664.67 million (Rs 4,753.03 crore) on account of CoUMWP in respect of 45 blocks still remained unrecovered (September 2019),” the report said. It added that the CoUMWP for nine blocks is yet to be worked out by Directorate General of Hydrocarbons (DGH) or yet to be approved by the ministry.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/oil-ministry-yet-to-recover-510-mn-from-contractors-under-psc-cag/78287066

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India’s natural gas production down 13% year-on-year in April-August

India’s natural gas production fell 13.2% during April-August compared to a 1% fall registered in the corresponding period last fiscal, said Care Ratings in a note.

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The cumulative fall in production was primarily a result of restricted or negligible offtake by consumers due to the pandemic and ensuing lockdowns. While domestic production from onshore fields was around 34%, coal-bed methane (CBM) fields contributed around 2% to total natural gas production during April-August. “Major part of the output however was from the offshore gas fields which constituted around 64% of the total domestic natural gas production. NOCs* have contributed around 88% of the total domestic output whereas PSC* fields have contributed the remaining around 12%,” Care Ratings said. Consumption of natural gas fell 9.5% year-on-year during the period under review. Except in the case of urea production and demand from piped natural gas (PNG) consumers, there has been a fall in power generation, drop in the demand for CNG refueling, fall in refineries throughput and fall in petrochemical production during the aforementioned time period. However, imports of liquefied natural gas fell 5.5% compared with an increase of 9.1% during April-August of last fiscal. LNG catered to 53.3% of natural gas consumption during April-August. India imports LNG from Qatar, Nigeria, UAE and Nigeria. India’s FY21 gross natural gas output, however, estimated to decline 10.6% as exploration and production prospects look bleak with refraining from increase output in the current low-price regime. Domestic gas price is expected to fall further in the second half of this fiscal in line with the trend in global energy markets. Consumption for the full year is expected to fall 3.2% on account of subdued sales of compressed natural gas, weaker demand from gas-based power plants on account of fall in electricity demand and a cut in refinery throughput by oil refiners.

Demand, however, would be supported by an increase in production of urea.

https://www.livemint.com/industry/energy/india-s-natural-gas-production-down-13-year-on-year-in-april-august-11600777865117.html

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World’s first CNG terminal to come up in Gujarat’s Bhavnagar

The Gujarat Chief Minister Vijay Rupani on Tuesday (Sep 15) said Bhavnagar will become the first Compressed Natural Gas (CNG) terminal in the world, as the government has given its sanction

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to the Rs 1,900 crore brownfield project. The terminal will have a capacity of 15 lakh tons annually. He said the state government has given the sanction and the Rs 1,900 crore project and will be developed by a Consortium of developers, including the Padmanabh Mafatlal Group and one from the Netherlands. According to the information given by the government, Rs 1,300 will be invested in the first phase of the brownfield port project. The project is a part of an ambitious mega project of developing Bhavnagar, where a liquid cargo terminal having a capacity of 45 lakh Container and White cargo terminal and RO RO ferry services terminal, would be developed. To develop this terminal, dredging and construction of two lock gates will be carried out in the channel and port basin. Infrastructural facilities will be set up on the shore for CNG transportation. Due to the project, Bhavnagar port’s annual cargo capacity will be raised to nine million metric tons (MMT). The Chief Minister informed that Gujarat will be the only state in the country, which will have terminals for both CNG and LNG (with LNG terminals at Dahej and Hazira). According to the state government, the project will create vast employment opportunities for Bhavnagar and adjoining area youth in logistics, transportation and warehousing.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/worlds-first-cng-terminal-to-come-up-in-gujarats-bhavnagar/78122711india/78181984

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Despite crude on rebound, sharp cuts in fuel prices in India

Petrol and prices in the country have fallen sharply again even though global oil prices rebounded and rose over $43 a barrel marking its fifth consecutive day of rise.

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On Friday (Sep 18), the pump prices of petrol and diesel fell by 26 and 35 paisa per litre, respectively in the national capital making it one of the sharpest daily fall in last five months. Accordingly, petrol is now at Rs 81.14 a litre and diesel Rs 72.02 a litre in Delhi. In the last two days of price cuts, petrol has become cheaper by 41 paisa per litre while diesel 54 paisa per litre. This is fourth fall in petrol prices and eighth reduction in diesel prices this month. Prior to this month while petrol prices had risen, diesel prices remained steady or fell on few days. According to Indian Oil Corporation website, petrol prices have now reduced to Rs 81.14, Rs 82.67, Rs 87.82 and Rs 84.21 a litre in Delhi, Kolkata, Mumbai and Chennai, respectively. Similarly the price of diesel in these metros in the same order stands at Rs 72.02, Rs 75.52, Rs 78.48 and Rs 77.40 per litre, respectively. Friday’s price cuts has been in the range of 23-26 paisa in the case of petrol and 33-37 paisa in the case of diesel. The latest changes in retail prices of auto fuel is in line with global price movement of the product in preceding weeks when prices had softened. But crude prices have risen in the last five days with benchmark Brent crude hovering over $43 a barrel for November delivery on Inter Continental Exchange. Even US crude WTI has shot over $41 barrel mark.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/despite-crude-on-rebound-sharp-cuts-in-fuel-prices-in-

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Policy Matters/ Gas Pricing/Others

India mulls gas price floor pegged to Asia LNG to help ONGC

India is considering a floor price for natural gas produced from local fields to shield explorers like state-run Oil & Natural Gas Corp. as tariff slumps, people with knowledge of the matter said. Shares of explorers gained.

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The proposal being considered by the oil ministry pegs the price to the popular benchmark Japan-Korea Marker that is used for LNG tariff in North Asia with a discount, the people said, asking not to be identified as the discussions were private. India’s oil ministry has formed a panel to study the plan and explore other options to make gas production remunerative, they said. Price of natural gas produced from domestic fields that were handed over to ONGC and Oil India Ltd. have fallen to the lowest in a decade and are below the imported price of the fuel. Prices are linked to some international gas markets such as the U.S., Canada, Russia and the U.K. A global glut that led to a price crash is threatening to undermine investments and turn gas businesses of ONGC and Oil India unviable. ONGC’s average cost of gas production is about $3.7/MMBtu, the company said on June 30 while the current regulated price of natural gas is $2.39 per MMBtu, which is estimated to further decline to about $1.9/MMBtu for the next six months beginning Oct. 1, the people said. An oil ministry spokesman declined to comment. India’s biggest explorer produces more than 60 million standard cubic meters of gas daily from such fields where government regulates the price. “Domestically, the extremely low gas prices are a cause of anxiety for gas producers,” ONGC said in its latest annual report, adding most gas projects are running cash-negative at current tariffs. “Without the necessary policy support and fiscal incentives the prospect of a gas-based economy looks difficult.” The implementation of a floor price could lead to an increase in the price, even after factoring in a discount of $1/MMBtu to the Japan-Korea Marker price, the people said. The current Japan-Korea Marker price is close to $5 per MMBtu. The oil ministry’s panel, comprising officials from the Petroleum Planning and Analysis Cell, ONGC, Oil India Ltd. and GAIL India Ltd., is also looking at options to minimize the impact on end consumers from setting of a floor price, the people said. India will phase out price controls in natural gas and make it market-linked, Oil Minister Dharmendra Pradhan said at the BloombergNEF Summit in June.

Source: LNG Global/Bloomberg

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Domestic gas prices to be cut 18% to $1.97/MMBtu: Care Ratings

The agency had earlier noted that gross production of domestic natural gas will fall by 10.6% during FY21 as “no company would aggressively want to increase production or get into high risk projects with such a low gas price”.

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Owing to the fall in global gas prices due to higher production and coronavirus-induced low demand, experts feel that the Union government will cut the price of domestic gas by a sharp 17.7% to $1.97 per MMBtu. The new price will be effective for six months starting October 1. If the prices are reduced, it would be the third straight cut after the government, in September 2019, lowered domestic natural gas prices by 12.5% to $3.23/MMBtu. Domestic gas price is linked to the weighted average price of four global benchmarks (US, UK, Canada and Russia). Spot US LNG prices have fallen more than 21% in the last six months to $1.5/MMBtu. Fall in natural gas prices will be positive for the fertiliser and the city gas distribution companies, while it will a negative for oil producers as lower revenue will squeeze their profitability amid high production costs, analysts at Care Ratings said on Thursday in a webinar on gas prices. The agency had earlier noted that gross production of domestic natural gas will fall by 10.6% during FY21 as “no company would aggressively want to increase production or get into high risk projects with such a low gas price”. The current price of $2.39/MMBtu for gas produced from local fields is even below the breakeven point for most fields. The average output cost of state-run Oil and Natural Gas Corporation (ONGC) which produces about 65% of domestic crude oil is around $3.7/MMBtu. The company is also grappling with under-recoveries stemming from low crude prices. Indigenous natural gas production caters to about only 51% of the country’s requirements. Demand for natural gas in the domestic market is largely dependent on the fertiliser (28%), power (23%), city gas distribution entities (16%), refineries (12%) and petrochemicals (8%) industries. The country aims to increase the share of natural gas in its energy mix to 15% by 2030 from the current level of about 6%.

https://www.financialexpress.com/industry/domestic-gas-prices-to-be-cut-18-to-1-97-mmbtu-care-ratings/2091100/

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Dharmendra Pradhan invites US companies to engage in developing gas infrastructure in India

Union Minister of Petroleum and Natural Gas and Minister of Steel Dharmendra Pradhan on Thursday (Sep24) discussed ‘Strategic Energy Partnership’

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during video conferencing with Kenneth Juster, the US Ambassador to India, and invited the US companies to engage more intensely in developing the gas infrastructure in India. Informing about the same in series of tweets, the Ministry of Petroleum and Natural Gas said that, the Minister also reviewed the strategic petroleum reserves’ cooperation initiated in June this year. “Minister of Petroleum & Natural Gas and Minister of Steel Dharmendra Pradhan had a discussion through VC with Kenneth Juster, the US Ambassador to India on India-US Strategic Energy Partnership. The US Ambassador to India recognized that the energy component is emerging as a key constituent of the India-US strategic partnership,” tweeted the Ministry. “Minister Dharmendra Pradhan invited US companies to engage more intensely in developing the gas infrastructure in the country and reviewed the strategic petroleum reserves’ cooperation initiated in June this year,” it said in another tweet.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/dharmendra-pradhan-invites-us-companies-to-engage-in-developing-gas-infrastructure-in-india/78307080

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Govt mulls eco-friendly CNG/LPG-run boats at tourist places

The Government is mulling to substitute petrol, diesel and kerosene in boats operating at tourists’ spots across the country with environment-friendly CNG/LPG fuel.

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This was stated by Union Petroleum Minister Dharmendra Pradhan at a virtual event held here on the occasion of World Tourism Day marked on Sunday (Sep 27). In fact, in Varanasi an initiative has already been undertaken in this regard with the local administration after consultation with the locals are planning to replace the pollution causing petrol driven boats at over 84 ghats of the Ganga river with the green fuel CNG. Pradhan also emphasised upon using battery operated vehicles in and around tourist spots. With Covid-19 playing spoilsports with the international travel, Union Tourism Minister Prahlad Singh Patel urged every citizen to visit at least 15 destinations in the country by 2022 to promote domestic tourism. He said that the Ministry has launched the Dekho Apna Desh (DAD) initiative early this year with the objective of creating awareness among the citizens about the rich heritage and culture of the country, encouraging citizens to travel widely within the country and enhancing tourist footfalls leading to development of local economy and creation of jobs at the local level. To create mass awareness, the Ministry has also launched an online DAD pledge and Quiz on the MyGov.in platform. The online pledge and Quiz are open to all for participation. This year United Nations World Tourism Organisation (UNWTO) has designated 2020 as the Year of Tourism and Rural Development. “This Year is an opportunity to promote the potential of tourism to create jobs and opportunities. It can also advance inclusion and highlight the unique role tourism can play in preserving and promoting natural and cultural heritage and curbing urban migration,” said a senior official from the Ministry.

https://www.dailypioneer.com/2020/india/govt-mulls-eco-friendly-cng-lpg-run-boats-at-tourist-places.html

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PNGRB caps shareholding in Gas Exchange at 25% for first 5 years

A gas exchange shareholder will have to cut stake to 25% or less within five years of its launch, a just-released regulation by the Petroleum and Natural Gas Regulatory Board (PNGRB) prescribed.

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There is currently no ceiling for the shareholding in the first five years. The regulatory framework will pave the way for setting up natural gas exchanges to give a fillip to physical contracts trade, a key step in developing the gas market in India. The regulation empowers PNGRB to issue and cancel licences to operate an exchange, and investigate. It lays down rules for membership and shareholding, contract settlement and appointment of directors. While most of the provisions in the draft unveiled for consultation in July have been retained in the final regulation, a key provision regarding shareholding limit by a non-member has been changed. The draft provided for a maximum 15% shareholding by a nonmember shareholder at any time; it has been raised to 25%. A member-shareholder can own a maximum of 5% in the exchange and the aggregate ownership of all members can’t rise above 49%, as per regulation. No clearing corporation can hold any right, stake or interest in any gas exchange. But at least 51% of the stake in a clearing corporation shall always be held by one or more gas exchanges. “No member of any gas exchange or clearing corporation or their associates or agents, irrespective of the gas exchange or clearing corporation of which they are members, shall be on the board of directors of any gas exchange or clearing corporation,” as per the regulation. The number of independent directors cannot be less than the number of other directors on the board of the gas exchange and the clearing corporation.

https://economictimes.indiatimes.com/markets/stocks/news/new-pngrb-regulations-cap-non-members-shareholding-for-gas-exchanges-at-25/articleshow/78386147.cms

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LNG Development and Shipping

BPCL signs 15 yr term contracts for 1 MMTPA LNG from Mozambique gas project

Bharat Petroleum Corporation (BPCL) has tied up a 15-year long term contract for 1 MMTPA LNG from its much awaited Mozambique project.

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BPCL owns 10% in the 12.88 MMTPA project offshore the Mozambique basin where OVL and Oil India are the other consortium partners, while French energy giant Total is the operator. N Vijayagopal, director finance of BPCL, told media in a post AGM conference call that the production from one of the largest gas resources in Africa is expected to start from the second half of calendar year 2024, while the full production is expected by 2025. We have a total requirement of 1 plus MMTPA of gas as of now and we plan to grow it to 2 MMTPA this year. The 1 MMTPA gas we will get from Mozambique will be very beneficial for us. Also, since our contract with Qatar will get over in 2027 it will help to compensate for that. Logistics wise also, it is closer to other locations as it is just across the Indian Ocean.” Other consortium partners have also tied up long term contracts with customers for close to 11.5 MMTPA of LNG, however, the names cannot be disclosed due to non-disclosure agreements, he said. The consortium partners have also completed the financial closure for the project and raised around $15 billion of the debt for a project of $24 billion size. US Exim Bank has contributed close to $4 billion, Vijayagopal said.

https://www.financialexpress.com/industry/bpcl-signs-15-yr-term-contract-for-1-mtpa-lng-from-mozambique-gas-project/2093722/

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India’s Petronet buys LNG cargo for delivery in November: Report

India’s Petronet LNG bought a liquefied natural gas (LNG) cargo for delivery in November, two industry sources said on Monday (Sep 21). It bought the cargo which is for delivery

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to either Dahej or Kochi LNG terminal over Nov. 17-22 at about $4.80 per million British thermal units (mmBtu), they said. The cargo was purchased on a delivered ex-ship (DES) basis, one of the sources said.

https://www.business-standard.com/article/companies/india-s-petronet-buys-lng-cargo-for-delivery-in-november-report-120092100526_1.html

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BPCL seeks two LNG cargoes for delivery in November

September 25, 2020: Bharat Petroleum Corp Ltd is seeking two liquefied natural gas (LNG) cargoes for delivery in November, two industry sources said on Wednesday.

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One cargo is sought for the delivery to the Kochi LNG terminal on Nov. 20-24 and another to the Dahej LNG terminal on Nov. 26, one of the sources said. The tender closes on Wednesday, the sources said.

Source: Indian Oil & Gas

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LNG overtakes domestic gas as pricing controls weigh on local producers

LNG imports have shot past domestic supplies for the first time in India, creating ground for decontrolling the market even as local producers feel hamstrung by below-cost prices dictated by government formula.

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Domestic gas met 47% of demand in 2019-20, while a spurt in import of cheap cargos pushed up the share of LNG to 53% from 31% in 2017. Market is projected to be equally divided between between LNG and domestic gas in the next two years. “Natural gas is truly becoming a global commodity. For the first time, LNG has ‘outcompeted’ piped supplies in Europe. Gas-on-gas competition is building up globally. Even in India, LNG’s share is more than 50%. Prices are also down. Time is right for decontrol to boost domestic production and promote domestic gas business as upstream is bleeding due to unremunerative prices,” ONGC director (finance) Subhash Kumar said. Kumar should know, since he has to balance the books as the pricing formula renders ONGC’s multibillion-dollar projects unviable. RIL-BP and OIL too face the same issue. The dwindling economics of existing players is bound to hit efforts to attract upstream investments, industry watchers say. Yet, Kumar is not giving up on gas. “Consumption in India will rise at a logarithmic scale on pipeline capacity expansion. It is the future fuel and provides a vital bridge to ‘net-zero’ scenario. The market just needs reforms,” he said. Gas occupies 6% of India’s energy mix and the government wants to raise it to 15% by 2030. Domestic gas price has been falling for a year and is expected to slip below $2 per unit in the latest six-monthly review on October 1 against $4.5 for spot LNG projected by a Reuters report. LNG entails additional costs on regasification and transportation. Over 80% of domestic gas comes from fields that do not have pricing or marketing freedom undeer the 2014 gas pricing policy. Gas from technologically/geologically difficult fields have pricing freedom but with a ceiling. A majority of new discoveries, including from CBM blocks, however, get both marketing and pricing freedom. Thus, a majority of domestic production fetches an unremunerative price, over 50% of supply is imported at a higher cost.

https://timesofindia.indiatimes.com/business/india-business/lng-overtakes-domestic-gas-as-pricing-controls-weigh-on-local-producers/articleshow/78241226.cms

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INTERNATIONAL NEWS

 

Natural Gas / Transnational Pipelines/ Others

Mideast energy forum takes shape to promote gas exports

Seven energy ministers will sign the charter of a new Middle East energy forum that will promote natural gas exports from the eastern Mediterranean to Europe and other markets, Israeli energy officials said on Monday (Sep 21).

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“The East Mediterranean Gas Forum, which until now has been a stage for discussions only, is in fact becoming a real international organization,” said Energy Minister Yuval Steinitz. Ministers from Egypt, Israel, Greece, Cyprus, Jordan, the Palestinian Authority and Italy will finalize the group’s charter on Tuesday in a virtual ceremony and work to create a “joint vision” for the region, according to a senior Israeli energy ministry official. “The forum will help bring a welcome normalization of regional relations, one that will help promote and develop the gas sector in Israel, and of course natural gas exports from Israel to its neighbors, to Europe and other regions,” said the official. Other countries, including France and the United States, may join the forum as well. Large gas deposits have been discovered in Israeli, Egyptian and Cypriot waters in recent years. Israel has already begun exporting to Jordan and Egypt, which hopes to become a regional energy hub. gypt has two liquefied natural gas (LNG) plants that have been idled or running at less than their potential capacity and can be used for exports.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/mideast-energy-forum-takes-shape-to-promote-gas-exports/78246512

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Russian gas meets only a fraction of Germany’s needs: Germany’s Scholz

Gas contributes only a fraction of Germany’s energy consumption, and Russian gas only a fraction of that, so it is wrong to say that the Nord Stream 2 pipeline will make Germany dependent on Russian energy, Finance Minister Olaf Scholz said.

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Asked about the flagship Kremlin project, which has been heavily criticised by the United States and some European countries, Scholz on Monday restated the German government’s position that the pipeline was a private investment and should not be the target of U.S. sanctions. The poisoning of Kremlin critic Alexei Navalny, blamed by most Western governments on Russian state actors, has led to renewed calls for the nearly complete pipeline, built by state-owned Gazprom, to be cancelled. Critics of the pipeline say it increases Germany’s reliance on Russian energy and deprives transit countries Poland and Ukraine of crucial leverage over the giant country to their east.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/russian-gas-meets-only-a-fraction-of-germanys-needs-germanys-scholz/78232235

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France: EU sanctions on Turkey an option over gas standoff

EU leaders are set to hold a summit in a few days to discuss how to respond to Turkey prospecting in areas of the sea that Greece and Cyprus insist are only theirs to explore.

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NICOSIA, Cyprus: France on Friday backed Cyprus’ calls for the European Union to consider imposing tougher sanctions on Turkey if the Turkish government won’t suspend its search for energy reserves in eastern Mediterranean waters where Cyprus and Greece claim exclusive economic rights.

French Minister for European Affairs Clement Beaune said sanctions should be among the options the 27-member bloc considers employing if Turkey continues to “endanger the security and sovereignty of a member state.” “But we consider that the Union should also be ready to use all the instruments at its disposal, among them the one of sanctions, if the situation didn’t not evolve positively,” Beaune said after talks with Cypriot Foreign Minister Nikos Christodoulides in Nicosia.
EU leaders are set to hold a summit in a few days to discuss how to respond to Turkey prospecting in areas of the sea that Greece and Cyprus insist are only theirs to explore. Turkey triggered a naval standoff with NATO ally Greece after dispatching a warship-escorted research vessel in a part of the eastern Mediterranean that Greece says is over its continental shelf. Greece deployed its own warship and naval patrols in response. Greek and Turkish military officers are also holding talks at NATO headquarters to work out ways of ensuring that any standoff at sea doesn’t descend into open conflict. The tensions appeared to ease in the last week, with Greek and Turkish officials having contact after Turkey temporarily pulled back the research vessel. But Ankara extended until mid-October the stay of another drill ship, Yavuz, in an area southeast of Cyprus that lies inside the island nation’s exclusive economic zone. Ship tracking website Marine Traffic showed a second Turkish research vessel, Barbaros, currently operating south of Cyprus. Turkish President Recep Tayyip Erdogan said Turkey withdrew the surveying vessel, Oruc Reis, from Greece-claimed waters for maintenance to give diplomacy a chance. But he warned that the ship wasn’t done working and would be back. “As soon as the repairs and maintenance process is over, Oruc Reis will again return to its duties,” Erdogan said. The Turkish president also said he’s ready to meet with Greek Prime Minister Kyriakos Mitsotakis to end the military buildup and standoff at sea, but he warned Greece against actions that could poison the negotiating climate. “We have no problem on the issue of meeting Mitsotakis. But what will we discuss, under which framework will the discussion take place, that is important,” Erdogan said. Greek Foreign Minister Nikos Dendias said Turkey’s withdrawal of its survey ship and warship escorts was a positive step, but that Greece needs to make sure Ankara is sincere. He said a list of sanctions will be put before EU leaders at next week’s summit and whether they’ll be implemented will depend on Turkey’s actions. “I’m hoping that it won’t become necessary to reach that point,” Dendias said. Turkey doesn’t recognize ethnically divided Cyprus as a state and insists it has every right to search for oil and gas in the eastern Mediterranean. It has vowed to defend its rightful claims to the region’s energy reserves, as well as those of breakaway Turkish Cypriots. Cypriot officials insist the EU shouldn’t set a “double standard” by imposing sanctions against Belarus for alleged voter fraud and police brutality while avoiding doing so when Turkey carries on its exploration at the expense of EU members.
Beaune said the EU cannot accept Turkish actions and that France has “committed” to resolving the issue while making its military presence felt in the eastern Mediterranean in support of its EU partners.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/france-eu-sanctions-on-turkey-an-option-over-gas-standoff/78203968

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Pandemic to trim China’s 2020 gas demand growth to 4.2 per cent

China’s natural gas consumption is expected to grow at 4.2% in 2020, the slowest pace in five years, a government research report said, after the coronavirus pandemic slowed economic activity and dented demand for energy.

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Demand for natural gas grew just 1.5% in the first half, the report by the oil and gas department at the National Energy Administration said, forecasting total 2020 consumption of 320 billion cubic metres (bcm). The report forecast China’s natural gas output this year at 189 bcm, up 9 per cent from 2019, while natural gas imports in 2020 were expected at 140 bcm — 50 bcm from pipeline gas and 90 bcm from liquefied natural gas (LNG) shipments. “The coronavirus outbreak has had a major impact on China’s economic, societal and energy development. Consequently, the growth rate of the demand for natural gas has been suppressed significantly,” the report said. Natural gas demand was mainly supported by consumption from city gas sector, which took less of a hit from the pandemic and posted more than 10% cent growth year-on-year during the first half, the report said. Several regions in northern China, including the capital Beijing, had extended the winter heating season in March as part of efforts to contain the coronavirus. Industrial gas consumption had recovered to the same levels as last year by end-June, following cuts in gas prices aimed at helping industrial users recover from the pandemic. The report also forecast adequate gas supplies in both domestic and international markets, and said low prices would make the fuel more competitive against other energy sources.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/pandemic-to-trim-chinas-2020-gas-demand-growth-to-4-2-per-cent/78186314

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OPEC+ may hold extraordinary October meeting if oil market worsens: source

OPEC+ could hold an extraordinary meeting in October if oil markets weaken further, Saudi Energy Minister Prince Abdulaziz bin Salman said on Thursday (Sep 17), according to an OPEC+ source. Brent oil prices extended their gains to trade up 3% on the news, above $43 per barrel.

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Prince Abdulaziz was speaking at a closed-door meeting of OPEC and its allies, led by Russia, which pressed for better compliance with oil output cuts against the backdrop of falling crude prices as uncertainty reigns over the global economic outlook. The group, known as OPEC+, warned that rising COVID-19 cases in some countries could curb energy demand despite initial indications of a decline in oil stocks, according to a draft press release and internal document seen by Reuters on Thursday. The panel of major producers, including Saudi Arabia and Russia, did not recommend any changes to their current output reduction target of 7.7 million barrels per day (bpd), or around 8% of global demand, according to a draft press release and an internal report. OPEC+ has been reducing production since January 2017 to help to support prices and reduce global oil stockpiles. They increased their cuts to a record 9.7 million bpd from May to July after demand plunged due to the coronavirus crisis. The panel, however, pressed laggards such as Iraq, Nigeria and the United Arab Emirates to cut more barrels to compensate for overproduction in May-July while extending the compensation period from September to the end of December, according to three OPEC+ sources. “Full compliance is not an act of charity. It is an integral part of our collective effort to maximize the interest and gains of every individual member of this group,” Prince Abdulaziz said as he opened a key OPEC+ panel, known as the joint ministerial monitoring committee (JMMC), sitting beside the UAE Energy Minister Suhail bin Mohammed al-Mazroui. The ministerial panel said it was concerned about the rise in the cumulative overproduction, which has reached 2.38 million bpd from May until August, according to the report.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/opec-may-hold-extraordinary-october-meeting-if-oil-market-worsens-source/78178948

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Global LNG Development

Global LNG-Asian LNG prices rise on winter demand expectations

Asian spot liquefied natural gas (LNG) prices edged up this week amid spot buying in the region and a possibility of higher consumption in winter due to cold weather.

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The average LNG price for November delivery into northeast Asia LNG-AS was estimated at $4.90 per MMBtu, $0.10 MMBtu above last week’s level.

There was demand from Indian, Taiwanese and South Korean buyers this week, among others, traders said.

Rising demand and prices in Asia are expected to help more cargoes to be exported from the United States in the coming months. Sources said this week that no more than five cargoes for November loading were likely to be cancelled, after dozens were rejected this summer. China’s LNG imports are expected to rise 10% to new highs in 2020 as companies take advantage of this year’s low prices to cover increasing industrial use and robust residential demand. In tenders, Indian Oil Corp has bought a cargo for delivery in November at about $4.75 per MMBtu from Royal Dutch Shell. It has also re-issued a tender for September-October delivery to the Ennore terminal, which was previously cancelled. The new tender closes on Friday (Sep  25), an industry source said. Another Indian buyer, Petronet LNG has bought a November delivery cargo at about $4.80 per MMBtu.

India’s Bharat Petroleum Corp Ltd was seeking two cargoes for delivery in November too. Elsewhere in Asia, Taiwan’s CPC Corp was seeking a cargo for November delivery in a tender, while South Korea’s GS Energy was looking to buy a cargo for the first half of November in bilateral negotiations, sources said. Pakistan LNG Ltd (PLL) will award tenders for two October cargoes to trader Gunvor, which offered the lowest bid at a slope of 11.3877% to Brent crude. On the supply side, Angola LNG held an October delivery tender this week, while Malaysia’s Petronas was selling a mid-November delivery cargo, sources said. There were ongoing supply issues in the United States and Australia tightening the market. 

Source: LNG Global/Reuters

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China to build country’s largest LNG reserve base -state media

China is building its largest liquefied natural gas (LNG) reserve base in its eastern Jiangsu province, state broadcaster CCTV reported on Saturday (Sep 26).

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The first phase will consist of four storage tanks with capacities of 220,000 cubic metres each, and an annual receiving capacity of 3 million tonnes when operations start in 2022. A second phase will see the building of six tanks with a capacity of 270,000 cubic metres each.

In the long term, the reserve base will have a total capacity of 20 million tonnes, CCTV reported.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/china-to-build-countrys-largest-lng-reserve-base-state-media/78335298

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China on course for record LNG imports as industries recover, expand

China’s imports of liquefied natural gas will likely grow 10% to new highs this year as companies scoop up cheap supplies to cover increasing industrial use and robust residential demand.

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With its total natural gas use likely expanding at 4-6% this year, China is the only major bright spot on the world gas market, where demand is set to fall by about 4% as the global economy contracts due to coronavirus lockdowns. LNG imports are set to hit a record 65-67 MMT this year, analysts and Chinese traders estimate, a tenth more than 2019’s total and at a growth rate that could see China overtake Japan as the world’s top buyer by 2022. Some analysts believe China’s economy is now pretty much back to its pre-virus growth path. “After taking a brief hit earlier this year due to the COVID-19 pandemic, China’s gas demand recovered faster than expected, driven mostly by the industrial sector that has recovered to 2019 levels since May, ” said Alicia Wee, analyst at FGE. Companies booked more super-chilled gas from Qatar, Russia and Australia, taking advantage of record-low prices LNG-AS earlier in the year as demand sagged elsewhere. To accommodate higher LNG imports, top gas importer PetroChina reduced costlier pipeline supplies from central Asia, mainly Kazakhstan, using contract tolerances, said a Beijing-based PetroChina official. “(Fourth-quarter)imports will remain robust…as LNG is both more competitive and flexible versus pipeline gas, despite a recent spot price spike,” Lu Xiao, senior analyst at IHS Markit. January-August imports of LNG rose 10.3% over the same year-ago period to 42.2 million tonnes, while piped gas fell 7.4%, Chinese customs data showed. Despite the growth in demand, China is not expected to suffer supply shortages during the cold winter months when demand peaks. Domestic gas production has also expanded. It is up nearly 9% in the first eight months versus a year ago as PetroChina and CNOOC Ltd stepped up domestic drilling to meet national supply obligations. Companies have also filled underground storages with total effective working capacity of 14 billion cubic metres. “Sufficient supplies and flexible demand make gas shortage a remote possibility,” said Huang Miaoru, senior manager at Wood Mackenzie.

Source: LNG Global/Reuters[Edited]

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North America to lead global small-scale LNG liquefaction capacity additions through 2024, says Global Data

North America is expected to witness the highest global small-scale liquefied natural gas (LNG) liquefaction capacity additions in the world, expected to contribute around 37% of the global additions by 2024, says GlobalData, a leading data and analytics company.

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The company’s report, ‘Global Small-Scale LNG Liquefaction Capacity and Capital Expenditure Outlook, 2020–2024 – North America leads Globally on Capacity Additions and Capital Expenditure Outlook’, reveals that North America is likely to witness total small-scale LNG liquefaction capacity additions of 7,270 kilo-tonnes per annum (ktpa) by 2024. Of this, the capacity of planned projects that have received necessary approvals for development accounts for nearly 2,890ktpa, while the remaining capacity of 4,380ktpa is expected to come from early stage announced projects. Haseeb Ahmed, Oil and Gas Analyst at GlobalData, comments: “North America is expected to witness the start of operations of 26 new-build small-scale LNG terminals by 2024. Of these, nine are planned terminals and the remaining 17 are announced. Browntown II and Browntown in the US are the largest upcoming small-scale LNG terminals in the region, with a capacity of 2,120ktpa each by 2024.” GlobalData identifies the Former Soviet Union (FSU) as the second-highest contributor to the global small-scale LNG capacity additions, contributing around 26% or 5,120ktpa by 2024. The region is expected to witness start of operations of seven planned projects and eight announced projects. The top three largest upcoming small-scale LNG terminals in the region are situated in Russia – Portovaya, Astra, and Moshik – with respective capacities of 1,500ktpa, 800ktpa, and 510ktpa. Ahmed continues: “Asia ranks third across the globe contributing around 15% of the world’s small-scale LNG capacity additions during the outlook period 2020–2024. The region has 16 upcoming projects, of which 14 are planned and the remaining two have been announced. China’s Xi an is the largest upcoming small-scale LNG terminal in the region with a capacity of 1,400ktpa by 2024.”

https://www.hellenicshippingnews.com/north-america-to-lead-global-small-scale-lng-liquefaction-capacity-additions-through-2024-says-globaldata/

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Shell looking to sell stake in Philippines’ Malampaya gas project

Royal Dutch Shell PLC is looking to sell its 45% stake in the Malampaya gas-to-power project in the Philippines, a key power source for the country’s main island of Luzon, its local unit said on Thursday (Sep 24).

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“As part of an ongoing portfolio rationalisation to simplify and increase the resilience of its business, Shell is exploring its options with a view to divest its interest” in Malampaya, a spokeswoman told Reuters. “Shell would ensure a smooth transition of the asset to a credible buyer who would be well placed to optimise the value from Malampaya,” the spokeswoman said in response to emailed questions, without naming any potential buyers. In what it called a “strategic” move to secure the long-term sustainability of its business amid the COVID-19 pandemic, local unit Pilipinas Shell Petroleum Corp last month decided to permanently shut down its refinery. The decision comes as Shell is looking to slash up to 40% off the cost of producing oil and gas in a major drive to save cash so it can overhaul its business and focus more on renewable energy and power markets, sources told Reuters. Malampaya’s natural gas, discovered in 1991 by Shell, fuels four power plants that deliver about a fifth of the country’s electricity requirements. The divestment plan also comes about a year after Chevron agreed to sell its 45% interest in the project to Philippine oil and shipping group Udenna Corp. The remaining 10 per cent interest in the Malampaya project is held by state-owned Philippine National Oil Company. Energy Secretary Alfonso Cusi said: “I’m not aware of who they (Shell) are negotiating with. What I know is they are looking for a buyer.” Malampaya’s gas supply is expected to run dry by 2027, based on the latest projection of the Department of Energy, which is looking at imported liquefied natural gas as a replacement.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/shell-looking-to-sell-stake-in-philippines-malampaya-gas-project/78307067

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Petrobras says on track to raise Rio’s LNG import capacity by 50 per cent, pending license

Brazil’s Petrobras has successfully concluded tests that will allow for a 50% capacity expansion at its Rio de Janeiro liquefied natural gas (LNG) import terminal to 30 million cubic meters per day, the company said on Thursday (Sep 17). Petroleo Brasileiro SA,

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as the company is formally known, said it is in the process of obtaining government permits to expand the terminal’s capacity. The terminal is used to convert the natural gas imported by Brazil by sea in a super-chilled liquefied version back to its gaseous form, a process known as regasification. Brazil is expanding its LNG facilities to take advantage of low international prices. The tests completed by Petrobras were part of the requirements by Rio’s environmental agency Inea and by Brazil’s national oil regulator ANP. Petrobras has not specified the timing for conclusion of the licensing process. The company’s Guanabara bay terminal in Rio de Janeiro currently has capacity to process 20 million cubic meters of gas per day through a floating storage and regasification unit (FSRU). The terminal consists of an island type pier with two berths for mooring and anchoring an FSRU vessel and a supply vessel, the company said.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/petrobras-says-on-track-to-raise-rios-lng-import-capacity-by-50-per-cent-pending-license/78179073

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Kuwait aims to finish Mideast’s biggest LNG terminal by March

Kuwait aims to open what will be the Middle East’s largest import terminal for liquefied natural gas in March, according to two people familiar with the project.

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 The Al-Zour plant will allow Kuwait to receive 22 MMT of LNG (about 31 billion cubic meters) a year, almost doubling the region’s capacity. The LNG market is expected to grow quickly in the next few decades as countries shift from oil and coal to cleaner energy. The global trade in LNG will probably increase to more than 1,000 bcm annually by 2035 from roughly 425 bcm today, according to BP Plc. Kuwait is one of the world’s biggest oil exporters, shipping almost 2 million barrels a day, but pumps relatively little gas. The OPEC member produced 18.4 bcm of gas in 2019 and consumed 23.5 bcm, BP said in a report. It was the Middle East’s biggest importer last year and the 14th globally, according to data compiled by Bloomberg. The Arab nation will use less than one-third of Al-Zour’s capacity until at least 2030, Bloomberg NEF calculates. The government is yet to decide whether it will keep a vessel currently used to receive LNG — a floating storage and re-gasification unit called Golar Igloo with a capacity of 5.8 MMTPA — after the new terminal starts, said one of the people, who asked not to be named as they’re not authorized to speak to media. Kuwait Integrated Petroleum Industries Co., a unit of state energy firm Kuwait Petroleum Corp., is responsible for selecting a company to operate and maintain Al-Zour for five years, and may make a decision in the coming weeks, said one of the people. Greek gas-grid operator Desfa SA is the only company to have submitted an offer, the person said. South Korea’s Hyundai Engineering & Construction Co. and Korea Gas Corp. won a $2.9 billion contract to build the terminal in 2016. KPC, Desfa, Hyundai E&C and Korea Gas didn’t immediately respond to requests for comment.

Source: LNG Global/Bloomberg

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Equinor shuts down LNG facility

Equinor reported Monday (Sep 28) afternoon that it had been notified of a fire in a turbine at its Hammerfest LNG plant at Melkøya, Norway. “

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No personnel have been reported injured or missing,” Equinor noted in a written statement emailed to Rigzone. The company added that all personnel not involved in handling the incident have been evacuated. Moreover, it stated the LNG facility has been shut down in accordance with emergency procedures. Equinor noted its emergency response personnel are assisting with handling the situation and that relevant authorities have been advised. The Hammerfest facility receives and processes natural gas via pipeline from the Snohvit field in the Barents Sea, according to Equinor’s website. The firm pointed out Hammerfest is the northernmost LNG export facility.

https://www.rigzone.com/news/equinor_shuts_down_lng_facility-28-sep-2020-163414-article/

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Russia’s Novatek says on track for up to 70 million T/year of LNG by 2030

Novatek  is on track to produce 57-70 MMT of liquefied natural gas per year by 2030 despite the pandemic, the Russian company said on Tuesday, around three times more than current output.

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Russia wants to expand its role as a global market player, along with Qatar, Australia and the United States. It is seeking to raise its market share to 15% by 2025 from less than 10% now. Alexander Nazarov, in charge of investor relations at Novatek, also told an online conference that the company expects its output of crude oil and gas condensate to be stable this year. Novatek produces more than 20 million tonnes of LNG per year at its Yamal LNG project.

Nazarov reiterated that Novatek expects to launch Arctic LNG 2 in 2023 and for it to reach its full capacity of almost 20 million tonnes in 2026. It also has Arctic LNG 1 and Obsky projects in the pipeline. Novatek pays at least 30 percent of adjusted net income in dividends. Nazarov said the company expects to reconsider its dividend policy and expressed hope that this will lead to increase in dividend.

Source: LNG Global

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Natural Gas / LNG Utilization

Madrid expands fleet of CNG buses for urban and interurban transport

The Community of Madrid continues to expand the fleet of sustainable vehicles in the network of urban and interurban buses of the Madrid Regional Transport Consortium,

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since 16 new MAN buses powered by compressed natural gas became operational. The new vehicles will provide service on four lines (496, 484, 488 and L-1), operated by the Martin company, running through Leganés, Arroyomolinos, Getafe and Fuenlabrada.

The 16 CNG buses, which have involved an investment of 3.8 million euros, will allow reducing CO2 emissions by 20% and particulate and NOx emissions by 85% compared to those that use diesel as fuel. In addition, they will reduce noise by 50% compared to the levels of a conventional bus. Currently, the interurban fleet of the Regional Transport Consortium, made up of 2,061 vehicles, has 27.7% of buses powered by alternative fuels, such as natural gas. The fleet has an average age of 4.5 years and is 100% accessible. Since the beginning of this administration, 180 intercity buses have already been renovated, with an investment of 49.5 million euros. It is expected that this year 130 more vehicles will be renewed, with a disbursement of 41.2 million euros. All buses will have the most demanding European standard (Euro 6) and at least 20% of the fleet will remain made up of vehicles powered by alternative fuels.

http://www.ngvjournal.com/s1-news/c3-vehicles/madrid-expands-fleet-of-cng-buses-for-urban-and-interurban-transport/

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Spain: NGV recycling fleet will allow reducing 60-90 tons of CO2 per year

ILUNION recently acquired six IVECO natural gas trucks for its recycling area, which will avoid the emission of between 60 and 90 tons of CO2 per year. Each of these six trucks, added to the Taxileón logistics company’s fleet,

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in which ILUNION has a 50% stake, avoids the emission of 13,500 kg of CO2 per year. In addition to the 25% reduction in CO2, the vehicles also reduce the emission of other polluting gases, such as NOx (35%) or suspended particles (95%), allowing access to urban areas with restricted traffic. “With this addition, we reinforce our business commitment to the environment, sustainable development and circular economy; besides our work for the labor inclusion of people with disabilities and the development of rural areas with low business density,” expressed the Strategy Corporate Director of ILUNION Alejandro Fernández. According to the CEO of Taxileón Fernando Martinez, the incorporation of these new trucks responds to the company’s commitment to the protection of the environment. “It is a commitment to the sustainability of the activity that translates into the continuous optimization of our transport fleet to reduce emissions and improve air quality,” said Martinez. During 2019, the recycling area of ​​ILUNION, the brand of the ONCE Social Group companies, treated a total of 9,600 tons of waste, of which 8,900 (93%) have been reintroduced into the production circuit.

http://www.ngvjournal.com/s1-news/c3-vehicles/spain-cng-recycling-fleet-will-allow-reducing-60-90-tons-of-co2-per-year/

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Egyptian agency funds conversion of nearly 150,000 vehicles to CNG

The Micro, Small, and Medium Enterprises Development Agency (MSMEDA) is financing the conversion of cars to the bi-fuel gasoline/CNG system, according to Hani Emad, Head of the agency’s Central Sector for Financing Small Enterprises.

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The fund is being provided to Cargas and Gastec, the two companies responsible for undertaking the conversion of vehicles to natural gas.  The companies are currently offering a range of instalment programs for the conversion, including a one-year interest-free system, and a payment option extending from two to five years. The cost of the financing program stands at EGP 1.2bn, and is intended to convert 147,000 cars over a period of three years. The average cost of converting a car to run on CNG stands at about EGP 8,000, with MSMEDA set to provide an annual sum of EGP 200m to each company to convert 25,000 cars. Emad said the agency has contracted with banks to provide the necessary financing to the intermediary, whether it is a company or a bank. The banks will finance the beneficiaries under the conditions specified by MSMEDA. Moreover, the Ministry of Industry and Trade is negotiating with Egyptian vehicle manufacturing companies to guarantee that the conversion will take place with Al-Amal and Suzuki Egypt, the two companies assembling microbus vehicles locally. Emad pointed out that this project has been integrated within several national projects, such as the project replacing and renewing microbus vehicles that have been on the roads for 20 years or more. He added that the state is also implementing a project to replace and renew dilapidated microbuses, minibuses, and taxis through several stages. The first stage began with the replacement of 15,000 microbuses across seven governorates, as part of the project replacing 80,000 microbuses nationwide over the course of four years. There has also been a phase launched to renew and replace 12,000 white taxis, bringing the total number of vehicles replaced over one year under the first phase to 27,000, reported Daily News Egypt.

http://www.ngvjournal.com/s1-news/c1-markets/egyptian-agency-funds-the-conversion-of-nearly-150000-vehicles-to-cng/

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Toyota Argentina unveils CNG Etios

Toyota Argentina presented a CNG propulsion system, developed together with TA Gas Technology (recognized by its brand TA Tomasetto Achille), for new Toyota Etios Sedan cars in all the model’s versions.

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This launch is the result of 14 months of development, the automaker said. The CNG system was customized exclusively for the Etios model. The arrangement of its components ensures non-interference with mechanical or electrical parts, since patterns are used in the installation processes that allow all units to be the same, respecting the approved designs. The guidelines for the development of the fuel system were: safety, installation, durability and performance, with a meticulous validation plan allowing the system to follow the guarantee of 5 years or 150,000 km (whichever comes first). In this fuel system, the technology of multipoint sequential injection of natural gas that is managed by an electronic control unit ECU is complemented with a computer that allows to optimize the ignition advance in gas operation. The combination of both devices makes it possible to generate an operating map with which the best performance is obtained, with a reduction in torque of only 4% and 9% of power. The system offers two storage options: a 58L and 60 kg steel cylinder, with which a range of 200 km is obtained, or a 70L light steel and fiber cylinder, also 60 kg, with which more than 280 km can be traveled. To install the natural gas system in the Etios, the customer must request it at an official Toyota dealer, who will be responsible for coordinating the installation of the CNG kit with the workshop selected by TA Gas Technology.

http://www.ngvjournal.com/s1-news/c3-vehicles/toyota-argentina-unveils-cng-etios/

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Trillium opens new NGV stations in California to meet growing demand

Trillium has put into operation two new CNG locations in California, both located at Love’s Travel Stops, in Lost Hills and Tehachapi. The company also announced it is offering discounts at a third station.

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“We are seeing strong, rising demand from customers in California for CNG,” said JP Fjeld-Hansen, vice president of Trillium. “To meet that demand, we’re focused on adding more stations and committed to providing fueling options that will benefit the environment.” Both public fast-fill stations feature two heavy-duty and two light-duty fueling nozzles, providing infrastructure for multiple vehicle types. The facilities also offer CNG fueling capabilities to fleet customers fed by renewable natural gas. Trillium is celebrating last month’s opening of a public CNG station in Los Angeles with an extension to the price discount on fuel. From now through September 30 Trillium customers at the 1055 N. Alameda St. station will pay only 99 cents per gallon of gasoline equivalent (GGE). Trillium currently owns or operates more than 45 public and private CNG fueling stations in California.

http://www.ngvjournal.com/s1-news/c4-stations/trillium-opens-new-natural-gas-stations-in-california-to-meet-increasing-demand/

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Argentine Transport Minister hails use of CNG to achieve clean mobility

The Ministry of Transportation of Argentina, led by Mario Meoni, promotes a work agenda that prioritizes sustainable mobility in all modes of transport through modernization and innovation, such as the use of natural gas buses to protect the environment. In this sense,

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during the International Sustainable Mobility Week, Meoni toured Scania Argentina’s facilities in the Province of Buenos Aires to articulate the possibilities for public-private improvement that provide greater sustainability to the sector. “We are going to be supporting all the companies that advance in the transition of the energy matrix in transportation, so that we can effectively see this type of bus working on the streets. We have to take advantage of the natural resources that we actually have, the CNG is one of the most important natural resources that Argentina has, and therefore we have to make full use of it, and nothing better than the State itself being the one who drives the initiative to make it happen,” added the official. For its part, Scania presented Meoni with the “Green Efficiency” program, launched in March and made up of the new line of trucks, buses and engines powered by natural gas (both CNG and LNG) and biogas, designed with the aim of achieving the lower operating cost and reduce CO2 polluting emissions by 20% in the case of natural gas and 90% in the case of biogas. “I am very happy because we see that we are speaking the same language, we think the same, we believe we have a great opportunity in Argentina to change the energy matrix in both cargo and passenger transport, to take it from diesel to natural gas, and the private sector is prepared. We see with great joy that the public sector is going to accompany us and we are going to make a change for our country,” said Scania CEO Andrés Leonard.

http://www.ngvjournal.com/s1-news/c1-markets/argentine-minister-of-transport-prioritizes-use-of-cng-to-achieve-clean-mobility/

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Germany: new Audi A3 Sportback 30 g-tron offers up to 495 km with CNG

Audi is adding a new member to the A3 family: the A3 Sportback 30 g-tron. Operation with natural gas or biomethane makes the compact model particularly economical and climate-friendly with very low emissions.

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Like all variants of the new A3 model series, it boasts a sporty design, a digital operating concept and generous standard equipment. Sales in Germany begin in fall 2020 at a base price of €30,705.88. The first A3 Sportback g-tron introduced by Audi in 2014 already featured a sophisticated technology concept. The successor builds on that. Operation with CNG enables a higher 12.5:1 compression ratio compared with the conventional combustion process of the 1.5 TFSI 110 kW (150 PS) and also improves efficiency. The cylinder head, injection system, turbocharger and catalytic converter were modified accordingly for the CNG engine. Before the gas reaches the injector valves, an electronic pressure regulator reduces the pressure from as much as 200 bar, which can prevail in the tanks, to between 5 and 9 bar. The CNG model accelerates from 0 to 100 km/h (62.1 mph) in 9.7 seconds on its way to a top speed of 211 km/h (131.1 mph). Average NEDC (New European Driving Cycle) fuel consumption for the four-cylinder is just 3.6 – 3.5 kilograms CNG per 100 kilometers, corresponding to a CO2 equivalent of 99 – 96 grams per kilometer (159.3 – 154.5 g/mi). With full CNG tanks, the car has an NEDC range of up to 495 kilometers (307.6 mi) and a WLTP (Worldwide Harmonized Light Vehicles Test Procedure) range of up to 445 kilometers (276.5 mi). This is supplemented by the additional range offered by the reserve gasoline tank with a net usable volume of 9 liters mounted in front of the rear axle. Power is transferred to the front wheels via the standard seven-speed S tronic. The four-cylinder always starts in CNG mode, only injecting slight amounts of gasoline under rare operating conditions. If the pressure in the CNG tanks drops below a certain threshold, which varies depending on the current driving state, the engine switches to gasoline mode. The driver does not notice this switch. The fuel level in the tanks and consumption in the respective operating mode are displayed in the digital instrument cluster. The two filler necks are placed under a common fuel flap. The Audi A3 Sportback 30 g-tron is also a leader when it comes to economy, in part because of the favorable tax rate on natural gas and biomethane in Germany until 2026. The emissions balance is similarly positive. Due to the fuel’s high hydrogen content, a CNG automobile emits approximately 20% less CO2 than a comparable gasoline model. There are currently some 850 CNG stations in Germany. More than half of them sell biomethane produced entirely from waste, and this number is increasing. With this fuel, driving is nearly climate-neutral.

http://www.ngvjournal.com/s1-news/c3-vehicles/germany-new-audi-a3-sportback-30-g-tron-offers-495-kilometers-with-cng/

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Increasing adoption of CNG trucks in Mexican freight transport sector

Monterrey-based company Arguz 2000 is committed to sustainable mobility and, for this, it has trusted Scania by acquiring a R410 CNG Euro 6 truck, with which they seek to contribute to the protection of the environment. 

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The automaker has a wide portfolio of alternative fuel vehicles, and offers practices and procedures that favor the profitability of the business. “At Arguz, we seek to contribute to the reduction of pollution figures, which are already a big problem in Monterrey. The purchase of this truck makes us happy with the results we hope to obtain and the technology it has for measuring pollutants, as well as what it will represent in terms of profitability,” said Diego Valdés, Director of the company, and added that for two years they have sought to venture into the use of an alternative fuel such as CNG. For Arguz, a company dedicated to the transport of goods to supermarkets, it is important to offer options that also correspond to the environmental corporate philosophies of their clients. The company, which employs more than 300 workers, plans to switch its entire fleet to natural gas trucks in the future. In these times where the economy could be uncertain, for heavy transport companies, “the formula is not to have more trucks, but to have profitable and efficient trucks,” concluded Valdés. http://www.ngvjournal.com/s1-news/c3-vehicles/increasing-adoption-of-cng-trucks-in-the-mexican-heavy-goods-transport-sector/

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Argentina: Scania CNG bus hits the streets of the city of Córdoba

Scania will provide TAMSE, the state company that operates passenger transport in the city of Córdoba, with a test bus powered by natural gas to carry out its operations under real conditions for 60 days.

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With an average of 180 km per day, the Scania vehicle will serve the company’s B1 line that runs from Pueyrredón to Argüello Norte neighborhoods, crossing the main avenues of the city. “We are developing various projects that seek to strengthen the transition towards a more efficient and sustainable transportation. The use of natural gas as fuel is currently our best option to take care of the environment,” explained Carlos Naval, Regional Manager of the Central Zone, Scania Argentina. The bus, whose route carries between 200 and 300 passengers daily, will be driven by 25 female drivers. “One of our pillars is sustainability, which is why we are extremely excited to be able to test this gas-powered unit that Scania delivers to us to corroborate its performance in the topography of our city. Our goal is to continue improving the transportation service for all Cordoba citizens and that is why it is important to continue innovating with environmentally-friendly alternatives,” added Marcelo Rodio, Chairman of the Board of TAMSE. In addition to starting this trial, Scania, TAMSE and the bodybuilder Marcopolo will sign a strategic alliance focused on continuing to seek and offer solutions for transport more committed to sustainability, with the test of the natural gas bus being the first step in this journey.

http://www.ngvjournal.com/s1-news/c3-vehicles/argentina-cordoba-public-transport-company-tests-scania-cng-bus/

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Kuehne+Nagel adds first dedicated LNG trucks & first Volvos to UK fleet

Global logistics provider Kuehne+Nagel has put eight new Volvo FH Globetrotter LNG tractors into 24/7 operation on two major contracts with Whitbread and Costa, as part of a drive to reduce emissions and improve the sustainability of its transport operations.

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Their arrival marks the first Volvos to enter service in Kuehne+Nagel’s UK fleet, following the firm’s participation in the Innovate UK-funded ‘Dedicated to Gas’ project. This evaluated the viability of Euro 6 natural gas heavy goods vehicles as an alternative to diesel and demonstrated their potential to unlock significant CO2 savings and reduce running costs. Supplied by Volvo Truck and Bus Centre East Anglia, the 6×2 pusher-axle tractors feature 155 kg LNG tanks and benefit from Volvo’s 12-speed I-Shift automated transmission, which helps to maximize fuel efficiency. The specification also includes the latest generation I-See predictive cruise control system, which analyses the topography to optimize speed and gear changes. The new trucks will pull temperature-controlled double-deck trailers on national trunking routes from the customer’s Wellingborough regional distribution center (RDC) to sites in Avonmouth, London and Manchester. Each vehicle is expected to cover 125,000 miles per year, with refueling taking place using an on-site facility operated by Air Liquide. Volvo’s approach to natural gas stands out for using compression-ignition technology which relies upon small amounts of diesel to initiate ignition of the air-fuel mixture. This enables the Volvo G13C engine to deliver the same 460hp and 2,300 Nm of torque as its diesel-only counterpart, with matching service intervals and reliability. These engines also provide secondary vehicle retardation thanks to the patented Volvo Engine Brake. “From an engineering perspective we have absolute confidence in Volvo’s natural gas powertrain to deliver the performance we need in an intensive around-the-clock, 44-ton application,” added Blake.

http://www.ngvjournal.com/s1-news/c3-vehicles/kuehnenagel-deploys-first-dedicated-lng-trucks-and-first-volvos-in-its-uk-fleet/

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GO TOP

LNG as a Marine Fuel/Shipping

Baleària launches in Gijón the world’s first LNG-powered fast ferry

The world’s first fast ferry for passengers and cargo powered by natural gas internal combustion engines, the Eleanor Roosevelt of Baleària, was launched at the Armon shipyard in Gijón. This innovative ship is scheduled to start operating in the first quarter of 2021.

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It is a pioneering ship worldwide that has had the participation of leading international companies and has involved an investment of 90 million euros. “The Eleanor Roosevelt represents the culmination of the effort of all the teams to have the first catamaran powered by natural gas, a milestone of sustainability and innovation. We have incorporated new features to adapt the ship to the current context of health crisis, taking into account the distance between seats, wider corridors and digitization, to guarantee greater security,” said Adolfo Utor, President of Baleària. For his part, the president of Armon Laudelino Alperi stressed that the construction of the fast ferry “represents a historic milestone for the shipyard” and thanked Baleària “for the trust placed in order to participate in this innovative and pioneering project worldwide.” Technological innovations have been added to turn the Eleanor Roosevelt into a smart ship. This will also be the longest fast ferry in the world. Specifically, the vessel is 123 meters long and 28 wide, with a capacity for 1,200 passengers and a warehouse for 500 linear meters of trucks and 250 cars, or alternatively 450 cars. The Eleanor Roosevelt’s four dual fuel LNG engines from Wärtsilä, rated at 8,800 kW each, enable it to reach a service speed of 35 knots (with a top speed of over 40 knots). The two tanks to store LNG suppose a range of 400 nautical miles in gas navigation (1,900 in the case of combined gas/diesel).

http://www.ngvjournal.com/s1-news/c7-lng-h2-blends/balearia-launches-in-gijon-the-worlds-first-lng-powered-fast-ferry/

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CMA GGM takes delivery of world’s largest LNG-fueled containership

The CMA CGM group today took delivery of the first in a series of nine LNG-fueled 23,000 TEU containerships. In a first-of-its-kind digital naming ceremony linking the CSSC Shanghai shipyard in China and the CMA CGM Group’s Marseille,

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France, headquarters, the ship the world’s largest container vessel to be powered by LNG was named CMA CGM Jacques Saadé. The name honors Jacques R. Saadé, the group’s founder, a towering presence and pioneer in the container shipping industry, who passed away in June 2018. Innovations run, literally, from stem to stern – Measuring 400 meters long, 61 meters wide, 78 meters tall, and with a 16 m draft, the ship’s LNG-fueled propulsion is based on a 12X92DF WinGD engine developing 63,840 kW and driving a 10-meter diameter propeller. But that’s only the start of the story. The innovations literally stretch from stem to stern. At the front, the bulb has been completely integrated to the vessel’s profile: the bow is straight and tapered, a first for a vessel of this size. At the stern, the propeller and ther udder have been redesigned for optimized performance and the propeller is equipped with a Becker Twisted Fin system to optimizing water flow and significantly reduce energy consumption.

A key part of the vessel is its GTT-designed 18,600 cu. m LNG tank and its associated systems. Its huge capacity allows full round trips between Asia and Europe. Construction of the tank required the assembly of 1,649 stainless steel panels. The tank insulation operation required a high level of technical expertise and lasted approximately 9 months. It consists of manufacturing a thermal cocoon that allows the natural gas to be maintained in a liquid state, i.e. at -161°C. Two layers of insulation and a second membrane envelop the tank and are equipped with sensors to ensure that the LNG storage conditions remain optimal and meet all safety requirements. The process of gasification and pressurization of the gas is complex as it must be adjusted in accordance with the engines’ consumption, which depends on the speed of the vessel and the electricity consumption on board. The vessel’s crew of 26 includes a gas management officer.

CMA CGM prides itself in pioneering France’s excellence in maritime technology, the CMA CGM Jacques Saadé and its eight sister ships (which will be named for French landmarks and institutions (Champs Elysées, Palais Royal, Louvre, Rivoli, Montmartre, Concorde, Trocadéro, and Sorbonne) will be registered on the French International Register and classed with Bureau Veritas. CMA CGM has chosen Total as part of a major industrial partnership to supply the vessels with LNG.

https://www.marinelog.com/technology/cma-ggm-takes-delivery-of-worlds-largest-lng-fueled-containership/

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Hyundai Samho delivers world’s first LNG-powered very large container ship

South Korean shipbuilder Hyundai Samho Heavy Industries Co Ltd said on Wednesday (Sep 16) it had delivered the world’s first very large container ship powered by liquefied natural gas (LNG) to Singapore’s Eastern Pacific Shipping Pte Ltd.

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The shipping industry has been under pressure to reduce carbon emissions, introducing new rules this year to cut the sulphur content in marine, or bunker, fuels. This in turn is prompting demand for LNG as a bunker fuel by tanker operators and cruise liners. The LNG-powered, 14,800 twenty-foot equivalent units (TEUs) container ship is one of six ships which Hyundai Samho is building. They were ordered by the shipping company in April 2018 and will be delivered by the third quarter of 2022. Hyundai Samho is a unit of Korea Shipbuilding & Offshore Engineering Co.

Source: LNG Global/Reuters

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LNG powered shipping fleet could double this decade

The world’s first Very Large Containership fueled by LNG left the shipyard of Hyundai Samho Heavy Industries earlier this month to be delivered to Singapore’s Eastern Pacific Shipping, one of the world’s biggest ship owners.

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This is just the crest of what could become a wave of LNG-powered ships in the future. One big event this year that got lost in the noise around the coronavirus pandemic was the entry into effect of new, lower-emission fuel requirements drafted by the International Maritime Organisation. Refiners had been preparing for the IMO 2020 emission rules and so had LNG producers, ramping up their capacity in anticipation of this new source of demand. And then the pandemic exploded and crushed demand for all and any fuels. Yet long-term trends continue: in February this year, SEA-LNG, a multi-industry body, said that LNG-fuelled ships on order had risen by 50 percent in 12 months. The organization noted LNG’s role in the transition from fossil fuels to renewables and the growth in LNG supply infrastructure across global ports. Now, an LNG industry insider has said that the global LNG-powered ship fleet is set to double over the next ten years. There are 80,000 registered ships globally, Reuters reported earlier this week, but fewer than 400 of them are powered by LNG. That’s a drop in the bucket. But by 2030, the number of LNG-powered ships could rise to 1,000, according to the head of global LNG bunkering at Petronas, Malaysia’s state energy company. Besides Europe, which is already a leader in using LNG as bunkering, Malaysia and Singapore will also see demand for the cleaner fuel rise over the next years. “Malaysia and Singapore share the same marine traffic. There are more than 80,000 transits in the Malacca Strait alone every year, so this is a huge market to serve,” Mohd Rafe Mohamed Ramli said at an industry event. He added that price, as well as emission standards, will be the driving force behind this increase. That may not be what some higher-cost LNG producers want to hear right now, but indeed the price of the superchilled fuel is seen as critical to the long-term demand for it. At the Gastech Virtual Summit last week, both sellers and buyers agreed that if LNG is to play a starring role in the transition from high to low emissions the price has to be right, Petroleum Economist’s Alex Forbes reported, citing industry insiders. The biggest opportunity for LNG in this play is as a replacement for coal in Asia. But this replacement will only happen if LNG is cheap enough.

Related: The Complete Breakdown Of Russian Output Cuts

The same seems to be true for long-term demand from the shipping sector. The CMA CGM Tenere—the LNG-fueled VLC ordered by Eastern Pacific Shipping—is the first in a batch of six very large containerships to be built by Hyundai Samho Heavy Industries for the Singaporean shipping company. The first is to be chartered by French container shipping firm CMA CGM. The rest – by BHP Billiton. More will follow as shippers are left with few options to comply with the new emission rules: low-sulfur fuel oil, sulfur scrubbers, or LNG. With a lot of new capacity coming on stream in LNG, chances are prices may stay comfortably low for long enough to motivate even more LNG-powered vessel orders. Not everyone is happy with that, however. A report by an environmental think tank published early this year warned that LNG is actually dirtier than diesel fuel because of the methane it emits. Indeed, methane is a much more potent greenhouse gas than carbon dioxide, but it dissipates much more quickly once released into the atmosphere, which makes it effect much more short-term. Despite such opposition, more and more companies are getting onboard the LNG ship, not least to demonstrate they are, too, becoming more environmentally conscious. BHP Billiton, the mining giant, is a case in point. The world’s top miner has chartered five LNG-powered bulk carriers from Eastern Pacific Shipping to transport iron ore from Australia to China.

https://oilprice.com/Energy/Natural-Gas/LNG-Powered-Shipping-Fleet-Could-Double-This-Decade.html[Edited]

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BHP in talks with three firms for LNG bunker supply contract – executive

BHP Group is in talks with three companies for the supply of liquefied natural gas (LNG) to fuel five ships it plans to use to transport iron ore between western Australia and China, a senior company executive told Reuters.

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A contract is expected to be awarded next month after an initial 8 to 10 firms vied for delivery of the super-chilled fuel to the miner over 2022 to 2027, Rashpal Bhatti, BHP’s vice president for maritime and supply chain excellence told Reuters. BHP earlier this month awarded a tender to charter five LNG-fuelled Newcastlemax bulk carriers to Singapore-based Eastern Pacific Shipping, aiming to cut greenhouse gas emissions on voyages to biggest customer China by more than 30%. The five vessels will be able to carry about 10 MMTPA of iron ore, or about about 3.6% of BHP’s 280 MMTPA in exports. BHP will assess the vessels once they are on the water before deciding whether to expand its LNG-fuelled fleet, Bhatti said. Currently, less than 400 out more than 80,000 registered ships run on LNG as fuel source, according to Mohd Rafe Mohamed Ramli, head of global LNG bunkering at Petronas Marine. “Our five vessels will make up 10% of all Asian (LNG) bunkering volumes. That equates to 1.5% of all global LNG bunkering requirements,” BHP’s Bhatti said. Miners are under pressure to reduce pollution to meet concerns about the environment, while investors increasingly demand that companies offer a compelling sustainability strategy. Spot LNG prices LNG-AS have fallen sharply over the past two years due to new supply from Australia and the United States. “LNG is significantly less expensive than VLSFO (very low sulphur fuel oil),” Bhatti said. “When it comes to cost, the build of the vessel is more expensive than a conventional vessel … but the gas supply is the one that really allows us to take a like for like view.”

Source: LNG Global/Reuters

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

 

Spanish train builder announces H2 propulsion system for locomotives

Talgo has presented in Badajoz its hydrogen-based propulsion system for rail vehicles, a green, innovative and efficient alternative to replace diesel locomotives.

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The project was presented within the framework of the first Hydrogen Conference as a vector of socioeconomic development in the Iberian Southwest (SOI H2). It will be the first prototype in Spain. This system is configured as a modular solution that allows it to be installed on all types of trains, but it was specifically designed for Vittal, a short and medium distance platform, with which Talgo participates in various bidding processes in Spain and other countries. The first validation tests on track will be carried out on lines in Extremadura in the fourth quarter of 2021. This innovative system uses hydrogen batteries that provide energy to the train’s electric motors. It is powered by renewable energy sources, such as solar photovoltaic or wind, which produce hydrogen that is stored and later used to power advanced propulsion systems based on fuel cells, such as the one designed by Talgo. The system is complemented by batteries that increase the acceleration available at starts, taking advantage of the train braking to recharge. Unlike extended battery systems in the automotive industry, hydrogen technology is presented as the logical answer to the needs of heavy transport and, in particular, of those railway lines that do not have electrification systems through catenary and that currently depend on trains powered by diesel engines. The hydrogen system designed by Talgo thus makes it possible to ‘electrify’ the lines of the conventional network without the need for costly and lengthy adaptation works, and without fossil fuels. The high-speed train manufacturer chose Extremadura as part of a broader strategy that recognizes the efforts of the Community’s Civil and Business Society and regional Public Administrations to innovate and accelerate a transition to completely decarbonized transport networks. This choice has to do not only with the type of existing infrastructure but also with the fact that it is one of the Autonomous Communities that has shown a more determined commitment to the generation and regeneration of industrial chains based on local hydrogen production.

http://www.ngvjournal.com/s1-news/c7-lng-h2-blends/spain-innovative-hydrogen-propulsion-system-for-locomotives-launched/

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World’s first hydrogen train enters regular passenger service in Austria

Until the end of November, a hydrogen-powered train will run for the first time in regular passenger service for ÖBB, the Austrian Federal Railways.

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The Coradia iLint, built by Alstom in Salzgitter, Germany, uses on-board fuel cells to convert hydrogen and oxygen into electricity, thus reducing operating emissions to zero. Following successful test operation in Northern Germany between 2018 and 2020, the Coradia iLint train will now demonstrate its worth in Austria over three months during which it will transport passengers on geographically challenging routes in the country’s south. Passengers can look forward to a low-noise train with a top speed of 140 km/h and zero emissions. “With its use in regular passenger operations for ÖBB, our innovation train Coradia iLint has reached the next milestone,” said Dr. Jörg Nikutta, Alstom’s CEO in Germany and Austria, at the launch event in Vienna. “The train’s emission-free drive technology offers a climate-friendly alternative to conventional diesel trains, especially on non-electrified lines. I am particularly pleased that ÖBB, a strong and long-term partner in the European mobility market, is convinced of our technology and its advantages.” “We clearly see ourselves as pioneers in testing hydrogen technology on rail. As the largest climate protection company in Austria, we are actively shaping the mobility of the future with technological alternatives,” added Andreas Matthä, CEO of ÖBB-Holding AG.

http://www.ngvjournal.com/s1-news/c7-lng-h2-blends/first-hydrogen-passenger-train-in-the-world-enters-regular-service-in-austria/

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Hydrogen alliance will deploy 1,000 fuel cell buses in European cities

The H2Bus Consortium announced an agreement with Wrightbus for the supply of hydrogen fuel cell buses in Europe. The consortium is now on track to deploy 1,000 hydrogen-powered buses, along with supporting infrastructure, in European cities at commercially competitive rates.

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Wrightbus will enter the European market with a world-leading zero emission single-decker bus, supported by a world-class maintenance package. This new offering is the most cost-effective truly zero-emission option available, with a single-decker bus price below €375,000 after funding, a hydrogen price between €5 and €7 per kilogram and a service cost between €0.25 and €0.35 per kilometer, all depending on operator and route requirements. The zero-tailpipe emission feature of the bus’ operation will be complemented by zero-emission hydrogen production from renewable energy sources, yielding a “well-to-wheel” emission-free transportation solution. “Wrightbus is leading the way with the world’s first hydrogen double-decker bus and, together with the H2Bus Consortium, we can show the UK, Europe and the rest of the world what we have to offer,” said Buta Atwal, CEO at Wrightbus. “This agreement will deliver hundreds of hydrogen fuel cell buses to a wider European market, providing extensive range, acclaimed operational ability and a lower cost for operators compared to an equivalent electric bus. Public transport is being transformed in the wake of the coronavirus pandemic with a huge focus on zero emissions, so we feel privileged to be at the vanguard of this revolution alongside our other consortium members.” Jacob Krogsgaard, CEO of Everfuel, also commented, “We are excited to work with Wrightbus to deliver the H2Bus Consortium’s ambition of the lowest cost truly zero emission fuel cell buses in Europe. Through our bus supplier Wrightbus, hydrogen cylinder and distribution module supplier Hexagon, hydrogen fuel cell supplier Ballard, and electrolyzer and refueling station supplier Nel, the consortium brings European engineering expertise to our streets. This will create and secure highly skilled jobs for the next generation of transport technology and fueling solutions in Europe.” The first phase of the project, totaling 600 buses, is supported by €40 million from the EU’s Connecting Europe Facility (CEF). The funding will enable the deployment of 200 hydrogen fuel cell buses and supporting infrastructure in each of Denmark, Latvia and the UK by 2023. In parallel, the H2Bus consortium will remain active in other clusters across Europe to reach the targeted 1,000 bus deployment.

http://www.ngvjournal.com/s1-news/c7-lng-h2-blends/hydrogen-consortium-plans-to-deploy-1000-fuel-cell-buses-in-european-cities/

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Mercedes-Benz hydrogen concept vehicle will offer range of 1,000 km

Truck manufacturer Daimler Trucks presented its new technology strategy reaffirming its commitment to the goals of the Paris Climate Protection Convention.

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The event focused on the technology for hydrogen-based fuel-cell trucks for the long-haul transport segment. The Mercedes-Benz GenH2 Truck, which had its world premiere as a concept vehicle, marks the beginning of fuel cell drive. With the GenH2 Truck, Daimler Trucks is demonstrating for the first time which specific technologies it is driving forward so that heavy-duty fuel-cell trucks can perform flexible and demanding long-distance haulage operations with ranges of up to 1,000 kilometers and more on a single tank of hydrogen. The manufacturer plans to begin customer trials of the GenH2 Truck in 2023; series production is to start in the second half of the decade. Thanks to the use of liquid instead of gaseous hydrogen with its higher energy density, the vehicle’s performance is planned to equal that of a comparable conventional diesel truck.

“We need zero-carbon goods vehicles on our roads. These include hydrogen fuel cell trucks. There is huge potential inherent in hydrogen for the protection of our environment and a strong economy. That is why we have been funding hydrogen as a transport fuel for over ten years – one current example is the concept truck presented today. We will continue to provide strong support to the development of climate-friendly drivetrains and innovations in and for Germany. This will include, but not be limited to, significantly expanding the funding of vehicles,” said Federal Minister of Transport and Digital Infrastructure Andreas Scheuer.

The development engineers at Daimler Trucks have based the GenH2 Truck on the capabilities of the conventional Mercedes-Benz Actros long-haul truck with regard to tractive power, range, and performance. For example, the series-production version of the GenH2 Truck is to have a gross vehicle weight of 40 tons and a payload of 25 tons. Two special liquid-hydrogen tanks and a particularly powerful fuel-cell system will make this high payload and long range possible, and therefore form the core of the GenH2 Truck concept.

Daimler experts can draw on existing expertise for the development of liquid-hydrogen tanks, and they are also cooperating closely with a partner. With regard to fuel cells, the manufacturer benefits from its experts’ decades of experience, in terms of technology as well as production methods and processes. This represents an enormous advantage. In April this year, Daimler Truck AG concluded a preliminary, non-binding agreement with the Volvo Group to establish a new joint venture for the development to series maturity, production and commercialization of fuel-cell systems for use in heavy-duty commercial vehicles and other applications. Joining forces will decrease development costs for both companies and accelerate the market introduction of fuel cell systems.

Daimler Trucks prefers to use liquid hydrogen (LH2) because in this state, the energy carrier has a far higher energy density in relation to volume than gaseous hydrogen. As a result, the tanks of a fuel cell truck using liquid hydrogen are much smaller and, due to the lower pressure, significantly lighter. This gives the vehicles a larger cargo space and higher payload weight. At the same time, more hydrogen can be carried, which significantly increases the trucks’ range. This makes the series GenH2 Truck, like conventional diesel trucks, suitable for multi-day, difficult to plan long-haul transport and where the daily energy throughput is high.

Daimler Trucks is currently pressing ahead with the development of the necessary tank-system technologies to make liquid hydrogen usable also in mobile applications as an energy source for series-produced fuel cell trucks. The storage of cryogenic liquid hydrogen at -253 degrees Celsius is already common practice in stationary applications, for example in industry or at hydrogen filling stations.

http://www.ngvjournal.com/s1-news/c7-lng-h2-blends/new-mercedes-benz-hydrogen-concept-vehicle-will-offer-range-of-1000-kilometers/

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