NGS’ NG/LNG SNAPSHOT – Sept 16-30, 2023
National News Internatonal News
NATIONAL NEWS
City Gas Distribution & Auto LPG
Think gas opens 100th CNG station in Bhopal
THINK Gas has inaugurated its 100th CNG Station in Bhopal along with its first LNG dispensing terminal in Madhya Pradesh. With the vision of a greener and less polluted environment, THINK Gas has developed an ecosystem to supply clean fuel to its customers. Currently operating 41 CNG stations in Bhopal, Rajgarh and Shivpuri, THINK Gas caters to 20,000 plus vehicles and sells over 60,000 kgs CNG daily in the state. The company also plans to add 12 more CNG stations in the state by March 2024.
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THINK Gas has also launched its first LNG dispensing terminal at Bagroda Industrial Area. With this launch, the company will cater to heavy duty vehicles like trucks and buses moving from Delhi to Chennai/ Hyderabad/ Bangaluru/ Chhattisgarh/ Orissa and offer a viable alternative to diesel fuel which will reduce carbon emissions, and lead to cost reduction for fleet operators.
The inauguration of both the THINK Gas CNG branded station at Karond and LNG Dispensing at Bagroda was done by Amitava Sengupta, Chairman, THINK Gas, Hardip Singh Rai, CEO THINK Gas and Sandeep Trehan, President, Marketing & Business Development, THINK Gas, in the presence of the THINK Gas leadership team.
Amitava Sengupta, Chairman, THINK Gas said, “We are confident that 100th station will help in the development of the natural gas ecosystem in Bhopal. With the launch of the first LNG station in Madhya Pradesh, we are expanding our footprints in different segments of natural gas.”
https://www.dailypioneer.com/2023/state-editions/think-gas-opens-100th-cng-station-in-bhopal.html
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Torrent Gas commences supply of piped cooking gas to Patiala households
The firm said Punjab government minister for new and renewable energy Aman Arora announced the start of supplies to 101 piped gas connections at a function in Patiala on Monday
Torrent Gas Ltd on Monday said it has commenced the supply of piped cooking gas to households in Patiala in Punjab as the company scales up operations in its licensed areas.
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Torrent Gas has been authorised by the Petroleum and Natural Gas Regulatory Board (PNGRB) to provide compressed natural gas (CNG) and piped natural gas (PNG) in Patiala, SAS Nagar, Sangrur and Malerkotla.
In a statement, the firm said Punjab government minister for new and renewable energy Aman Arora announced the start of supplies to 101 piped gas connections at a function in Patiala on Monday.
Piped cooking gas will be available in Patiala for Rs 46 per standard cubic meter (including taxes) and a special introductory offer, including EMI schemes will be available to encourage customers to adopt PNG. Customers can register for piped cooking gas at just Rs 590 (including GST) and get connected. The remaining amount, viz refundable security deposit can be paid in 13 instalments of Rs 500, along with a bi-monthly bill.
“PNG offers several distinct advantages to consumers vis a vis LPG. PNG is safe and reliable, does not consume storage space in the kitchen and alleviates concerns about dry-outs and replacements. It also eliminates the need for advance bookings, where consumers pay after use. These advantages make PNG a compelling choice for consumers, offering both convenience and economy,” the statement said.
Torrent Gas has already laid pipelines in Rajpura to provide domestic gas connections and more than 3,250 customers are already enjoying the benefits of uninterrupted gas supply.
Rakesh Kumar, Executive Director, Torrent Gas said, “Torrent Gas is committed to providing clean energy to the people of Punjab and towards this it has already made an investment of approximately Rs 300 crores so far”.
PNG, he said, offers an unparalleled convenience to a modern household by supplying uninterrupted cooking gas. “This takes away the need to book the gas cylinder, the angst of waiting for it and the fear of running out of gas in case of emergency. Supply of PNG through a reliable network of pipelines will offer enhanced safety, convenience and savings to residential, commercial and industrial customers of Patiala.”
Torrent Gas currently operates 26 CNG stations and has connected more than 3,250+ households with piped gas connections in the license areas of Patiala, SAS Nagar, Sangrur and Malerkotla. It has already laid 86 km of steel, and 440 km of MDPE pipelines and plans to connect 23,000 households in Patiala, Rajpura and Derabassi with piped natural gas.
The company has been licensed by the sector regulator PNGRB to set up city gas distribution (CGD) infrastructure and sell compressed natural gas (CNG) to vehicle users and PNG to industries and households in 38 districts across 7 states (Tamil Nadu, Telangana, Uttar Pradesh, Gujarat, Maharashtra, Rajasthan and Punjab) and 1 Union Territory (Puducherry).
Torrent’s authorised areas, across the country have a population of approximately 9 crores, which is about 7 per cent of the total population of India.
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Natural Gas/ Pipelines/ Company News
Net zero target: Oil India to invest Rs 25,000 crore by 2040
Oil India Ltd (OIL) chairman and managing director Ranjit Rath on Thursday said that the state-owned company plans to invest Rs 25,000 crore in renewable energy to achieve net zero emissions by 2040. The company has decided to invest in green hydrogen, solar, geothermal energy, 2G ethanol plant, compressed biogas plants, and carbon capture utilisation and storage (CCUS), along with initiatives to eliminate flaring.
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Of the Rs 25,000 crore investment, the oil major will invest Rs 8,000 crore in setting up 2G ethanol plant. The investment also includes cost for transitioning all its diesel-fired engines to gas engines.
“Our subsidiary Numaligarh Refinery (NRL) has already placed an order for replacing grey hydrogen with green hydrogen. We are targeting a 20-kilo tonne per annum capacity,” Rath said.
In alignment with the government’s plan of raising share of gas in India’s energy mix from 6.2% to 15%, the company plans to reduce gas flaring by compressing and pushing them to city gas distributors (CGD) network.
It is laying a 80-km gas pipeline from Arunachal Pradesh to Assam to bring gas to Duliajan in Assam from where the company plans to pass it into the northeast gas grid and therefore national gas grid.
OIL has entered into joint ventures to set up solar power plants. It is building a 620 mega watt (MW) solar capacity in partnership with Assam and another 150 MW solar plant in association with Himachal Pradesh.
After registering highest ever oil and gas production at 3.18 MMT and 3.18 BCM in FY23, respectively, the company has set a target of achieving 4 MMT of crude oil and 5 BCM of natural gas by fiscal 2024-25.
Rath said that the company had a capex of Rs 5,500 crore in FY23. It has planned a capex of Rs 7,500 crore on standalone basis and Rs 14,000 crore on a consolidated basis due to expansion at NRL.
OIL has 2P (50% chances) reserve base of 191 MMTOE and 51 MMTOE of oil and oil equivalent of gas respectively in domestic assets and overseas assets.
On repatriating dividends from Russian assets, Rath said that the company is evaluating legal options, discussing with banks and exploring options to buy Russian oil with the stranded dividend.
The consortium of Indian oil companies comprising Indian Oil Corp Ltd (IOCL), OIL and Bharat Petroleum Corp Ltd (BPCL) have been exploring to repatriate dividend income estimated to be about $450 million.
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Rs 141 crore paid to landowners affected by laying of NEGG pipeline: Kyrmen
Minister in-charge Revenue & Disaster Management Kyrmen Shylla said that Indradhanush Gas Grid Limited (IGGL), a joint venture of IOCL, ONGC, OIL, GAIL & NRL, has been authorized by the Petroleum and Natural Gas Regulatory Board (PNGRB) to execute the North East Gas Grid (NEGG) Pipeline project.
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The State government has paid Rs 141 crore to over 805 affected landowners for the laying of Gas pipe throughout the State under the North East Gas Grid (NEGG) Pipeline project.
This was informed by the Minister in-charge Revenue & Disaster Management Kyrmen Shylla in his reply to a starred question tabled in the Assembly on September 21.
“A total amount of Rs 141 crore has been paid to the 805 affected landowners as per Section 10 (4) of Petroleum & Minerals Pipelines (P&MP) (Acquisition of Right of Use in Land Act, 1962) whose Right of Enjoyment has been affected de to Acquisition of Right of Use in Land,” Shylla said.
He said that all necessary permissions and approvals have been obtained for laying the pipeline in the State.
“All necessary permissions & approvals such as Petroleum and Explosive Safety Organization (PESO) approval, Consent to Establish (CTE) approval from the State Pollution Control Board (SPCB), Forest clearances, Consent/No Objection Certificate (NOC) from Khasi Hills Autonomous District Council for Ri Bhoi and East Khasi Hills Districts, traditional chiefs, Jaintia Hills Autonomous District Council for East & West Jaintia Hills Districts have been obtained by IGGL for laying the Pipeline in the State of Meghalaya,” he added.
He said that Indradhanush Gas Grid Limited (IGGL), a joint venture of IOCL, ONGC, OIL, GAIL & NRL, has been authorized by the Petroleum and Natural Gas Regulatory Board (PNGRB) under Section 16 and in pursuance of the Policy Directives issued to PNGRB by the Central government under Section 42 of the PNGRB Act, 2006 vide authorization letter dated November 17, 2020 to execute the North East Gas Grid (NEGG) Pipeline project.
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Rajeev Kumar Singhal set to be next Director (BD) of GAIL
The PESB panel has recommended the name of Rajeev Kumar Singhal for the post of Director (Business Development) of GAIL (India) Limited
New Delhi: Rajeev Kumar Singhal is set to be next Director (Business Development) of GAIL (India) Limited, a Maharatna PSU under the Ministry of Petroleum & Natural Gas (MoPNG). He has been recommended for the post by the Public Enterprises Selection Board (PESB) panel on Wednesday. Presently, he is serving as Executive Director (BD and E&P) in the same organisation.
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Singhal has been recommended for the post of Director (Business Development) of GAIL (India) Limited from a list of 10 candidates, who were interviewed by the PESB panel in its selection meeting held on September 20. Out of 10 candidates, seven candidates were from GAIL (India) Limited and one each from Engineers India Limited (EIL), Oil & Natural Gas Corporation (ONGC) Limited and Indian Railways Service of Mechanical Engineers (IRSME).
Singhal is an IITian, a Bachelor of Technology (Electronics Engineering) from IIT (BHU), Varanasi. He also holds a PG diploma in the Business and Finance program from ICFAI Business School. He has over 30 years of professional work experience in the energy sector majorly focused on global energy domain and natural gas value chain. He also has extensive experience in business development and marketing-related initiatives such as LNG sourcing, trading, shipping, marketing, M&As, diversification projects including RE, Green Hydrogen and Biofuels.
https://psuwatch.com/psu-appointments/rajeev-kumar-singhal-set-to-be-next-director-bd-of-gail
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Policy Matters/ Gas Pricing/ Others
Centre issues tender for gas-fired power to address high electricity demand
“The operation of gas-based plants is envisaged tentatively for 20 days during the crunch period, extendable by another five days based on requirement,” a tender issued by a unit of state-run NTPC Ltd SINGAPORE (Reuters) -India is seeking bids to supply gas-fired power to address expected periods of unusually high electricity consumption in October and November, a tender issued on Thursday showed.
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Domestic gas plant operators are likely to bid for the tender, potentially pushing them to tap the spot liquefied natural gas (LNG) market at a time of tepid Asian demand.
India relies on coal to generate nearly three quarters of its electricity, and power generated from coal is typically much cheaper than when generated by gas-fired plants. Over half of the country’s roughly 25 gigawatts (GW) of gas-fired capacity is non-operational because of relatively high LNG prices.
However, the worst power shortages in 16 months due to an unexpected surge in power demand due to factors including higher than usual temperatures, and a sharp plunge in hydroelectricity output, have forced the world’s fifth largest economy to turn to gas-fired power.
“The operation of gas-based plants is envisaged tentatively for 20 days during the crunch period, extendable by another five days based on requirement,” a tender issued by a unit of state-run NTPC Ltd said.
India is seeking bids to supply 4,000 megawatts (MW) of electricity from gas-fired power plants to address high demand in October and November, according to the tender.
The tender includes a minimum guaranteed purchase of 75% of the contracted quantity.
As India’s consumption of natural gas exceeds its domestic production, and most of its locally produced gas is used by other industries, gas plant operators need to buy LNG in the spot market.
It is unusual for India’s electricity use to spike during the second half of the year as temperatures typically fall. Demand tends to peaks in May, when Indians crank up air-conditioners to beat the heat, and industries operate without rain-related disruptions.
India has been pushing utilities to expedite completion of power plant maintenance and hasten the process of starting completed projects, as part of emergency steps to stop electricity outages.
(Reporting by Sudarshan VaradhanEditing by Jason Neely and Susan Fenton)
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GAIL may consider all factors while implementing project pipeline and fiber optic cable: Calcutta High Court
The Calcutta High Court has observed that the authorities of Gas Authority of India Limited (GAIL) may take into consideration all relevant factors while implementing the project (installing gas pipeline and fiber optic cable).
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The Division Bench of Chief Justice T.S. Sivagnanam and Justice Hiranmay Bhattacharyya disposed of a public interest litigation by the petitioner, who is a practicing advocate of the Court and hails from Purba Medinipur District has expressed certain apprehensions about the method of excavation/tunneling, which will be adopted by the GAIL while installing gas pipeline and for fiber optic cable.
According to the petitioner, GAIL has been adopting the open cut method, which will not be suitable for the area in question and it cannot be adopted as an uniform procedure for laying of the gas pipeline or for laying of the optic fiber cable throughout the State of West Bengal. In this regard, a representation was given by the petitioner on 2nd August, 2023, which was sent by speed post and without even waiting for a reasonable period of time, the petitioner has approached the Court by way of filing the petition.
The advocate appearing for GAIL submitted that the tunneling process is a highly technical matter and this is being done by the authority of GAIL after conducting a preliminary survey in the presence of the concerned officials of the State Government and depending upon the area in question, type of tunneling is adopted namely, in certain areas it has been found that open cut method is most suitable and in certain areas deep tunneling is done for which the contractor, who has been engaged is being adequately compensated.
Further from the documents, which are annexed in the petition, the Court found that on several occasions the Government of West Bengal, more particularly the Irrigation and Waterways Department had pointed out difficulties of implementing the open cut method in certain areas and accordingly has informed GAIL. Admittedly, the project of laying the gas pipeline and for laying the optic fiber cable is in public interest and it is best that the technical aspects are left to the officials to decide and it is not for this Court to suggest the ways and means, which are to be adopted by the authorities.
The High Court find from the documents annexed in the said petition that the Irrigation and Waterways Department of the Government of West Bengal has placed their suggestions to GAIL, which obviously would be considered by GAIL and until and unless a no objection certificate is granted, the work cannot be proceeded with.
Therefore, the Bench is of the view that the apprehension expressed by the petitioner has been sufficiently safeguarded and all that “we can observe is that the authorities of GAIL may take into consideration all relevant factors while implementing the project, which is undoubtedly of public importance.”
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LNG Use / LNG Development and Shipping
India’s GAIL seeks LNG cargo for Oct delivery
SINGAPORE, Sept 21 (Reuters) – GAIL (India) Ltd (GAIL.NS) has issued a tender to buy one cargo of liquefied natural gas (LNG) for delivery in October, said two industry sources on Thursday.
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India’s largest gas distributor is seeking the cargo for delivery to the Dabhol terminal between Oct. 19-31.
The tender will close on Sept. 21.
https://www.reuters.com/world/india/indias-gail-seeks-lng-cargo-oct-delivery-sources-2023-09-21/
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Electric Mobility/ Hydrogen/Bio-Methane
African nations set to visit India for ethanol blending, biogas studies
Kenya, Tanzania, and Uganda keen to replicate India’s ethanol blending, biogas initiatives. Close on the heels of its historic outreach to African nations and the successful launch of the Global Biofuel Alliance (GBA), India will soon welcome delegations from countries like Kenya, Tanzania, and Uganda who are keen to replicate India’s ethanol blending and biogas initiatives, senior officials from the Ministry of Petroleum and Natural Gas have confirmed.
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Launched on the sidelines of the recent Group of Twenty (G20) summit, the GBA aims to reshape the global landscape and expedite the uptake of biofuels worldwide, set standards for biofuel, expand the size of formal biofuel markets, and better map demand and supply.
Apart from G20 member South Africa, non-G20 nations like Kenya and Uganda also made up the list of 19 signatory nations.
“Faced with increasing oil import bills for a growing population, both these nations have shown keen interest in adopting ethanol blending in petrol for transportation after learning about the benefits and success of India’s programme,” said a senior official.
The visiting teams will interact with oil-marketing companies (OMCs) and other stakeholders during their upcoming visit, an official said. While in India, the countries may also sign government-to-government memoranda of understanding on collaboration and information sharing with Indian agencies and OMCs, he added. Officials said talks on finalising the visit are at an advanced stage.
“In countries like Kenya, ethanol is already being used as a cooking fuel. Ethanol with 93 per cent purity is imported by Kenya from Brazil and used for cooking purposes and is marketed by Gandhinagar-based KOKO Networks. The company has 1 million customers in Kenya,” another official said.
The nations have expressed particular interest in replicating the model of government incentives that central government schemes have used to attract investments for necessary infrastructure in the sector. This includes the Pradhan Mantri Jaiv Indhan-Vatavaran Anukool Fasal Awashesh Nivaran Yojana, which provides financial support to OMCs for setting up integrated second-generation bio-ethanol projects.
The ministry also plans to showcase the Galvanizing Organic Bio-Agro Resources Dhan (GOBARdhan) scheme that aims to set up new solid waste management plants that produce energy from organic waste.
Uganda is keen to learn about India’s existing compressed biogas (CBG) programmes. This includes the Sustainable Alternative Towards Affordable Transportation scheme, which incentivises the production of CBG from various biomass sources and targets the setting up of 5,000 commercial CBG plants by 2025.
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Delhi: E-juice to fuel cab and bike aggregator policy
The Delhi government is preparing to implement a new policy that will incentivize the use of electric vehicles (EVs) over CNG vehicles in the city’s cab-and-bike aggregator industry. Under the policy, EVs may have lower license fees compared to CNG vehicles. The policy will also require bike taxis and two-wheeler rental services to use electric vehicles. Additionally, the policy will mandate the installation of panic buttons and integration with the Delhi Police helpline number for emergencies. The government aims for a phased transition to EVs, with all new commercial four-wheelers being EVs by 2030.
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The operation of electric bike taxis is expected to be greenlighted and safety norms for cab services could become stricter
NEW DELHI: An aggressive boost to electric vehicles is on its way as the Delhi government readies its cab-and-bike aggregator policy, which is set to reward inducting EVs over CNG vehicles.
The government is learnt to have finalised the policy after taking into consideration the suggestions of various stakeholders. The scheme follows a “polluter pays” principle, a transport official said. “For instance, the licence fee for an electric taxi may be zero but the licence fee of a CNG taxi may be Rs 650,” the official said.
The operation of electric bike taxis is expected to be greenlighted and safety norms for cab services could become stricter. Transport department sources said time-bound targets would be set for expanding e-vehicle fleets.
Transport minister Kailash Gahlot said the department will finalise the policy in a week and send it to the chief minister. Thereafter, it would be notified.
A senior transport department official said all bike taxi and two-wheeler renting services in the city would have to use electric vehicles. “The department has seen the public feedback after which the policy was given final shape,” he said.
The Motor Vehicle Aggregator Scheme, 2023, will be applicable to any person or entity that operates, onboards or manages a fleet of vehicles through digital or electronic means or any other means.
The official said the policy would make it mandatory for aggregators to install panic buttons and integrate these with 112, the Delhi Police helpline number for emergencies. The scheme would ensure timely consumer grievance redress by service providers, enforcement of vehicle fitness, pollution control and validity of permits, he added.
Remedial training would be provided if a driver’s performance was poor, the official said.
The scheme allows transition to electric in a phased manner. Five per cent of new cars need to be electric in the first 6 months of the scheme’s rollout. Four years after the scheme’s notification, all new commercial two-wheelers and three-wheelers will have to be EVs. After 5 years of the notification, all new commercial four-wheelers have to be EVs. The aggregator or service provider has to switch to an all-electric fleet by April 1, 2030, officials said.
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INTERNATIONAL NEWS
Natural Gas / Transnational Pipelines/ Others
Turkey and Russia restart talks on gas hub
Turkey and Russia have re-launched discussions to set up a regional hub for natural gas trading, but current disagreements about trading platforms and who should be in charge could delay the potential launch.
In October last year, Recep Tayyip Erdogan and Russia’s Vladimir Putin agreed to set up a natural gas hub in Turkey, the Turkish president said.
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“And in his own words, Putin announced to the world that ‘Europe can get its natural gas from Türkiye’,” Erdogan was quoted as saying back then.
A week earlier, Putin first had suggested that Russia redirect natural gas supplies intended for the damaged Nord Stream pipelines to the Black Sea and the creation of a European gas hub in Turkey.
The Russia-Turkey talks were suspended due to the February earthquake in Turkey and the presidential election in May, in which Erdogan secured another term in office.
This week, Turkey’s Minister of Energy and Natural Resources, Alparslan Bayraktar said, as carried by Bloomberg, that the talks had resumed.
However, there are disagreements over the trading platform to be used. Russia insists on a new platform while Turkey proposes to expand its already operational Energy Exchange Istanbul, Bayraktar has said.
Preparing for a potential gas hub, Turkey also plans to expand its natural gas infrastructure, the minister was quoted as saying by Reuters.
Earlier this week, sources with knowledge of the gas hub project told Reuters that Russia and Turkey are at odds over who should be in charge of the hub.
“There are managerial issues, they are fighting for who should manage the hub,” an anonymous source told Reuters, while another person, close to Russian state gas giant Gazprom, told the news agency that the two countries have encountered a “problem” over the management of the hub.
Gazprom has reported a plunge in its first-half net profit as pipeline gas deliveries to Europe plummeted compared to 2022, when Russia was still supplying pipeline gas to its European customers for most of the first half of last year.
https://oilprice.com/Energy/Natural-Gas/Turkey-And-Russia-Restart-Talks-On-Gas-Hub.html
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Trinidad and Tobago: Shell Greenlights development of Trinidad’s Manatee offshore gas field
Shell PLC has given financial approval for the development of the massive Manatee gas field offshore Trinidad and Tobago, the country’s Prime Minister Keith Rowley said on Thursday.
Trinidad is Latin America’s largest LNG exporter, but its flagship Atlantic LNG project no longer receives enough gas supply to keep its four liquefaction units running. The government in recent years has sought to accelerate new gas projects to restore operations and feed its petrochemical industry
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The Caribbean nation can process up to 4.2 billion cubic feet per day (bcfd) of gas into LNG, petrochemicals and electricity, but currently is producing about 2.7 bcfd.
Shell has sought environmental approval to proceed but has not made a final investment decision, a spokesperson said.
“The application for a CEC (Certificate of Environmental Clearance) is a regulatory requirement of the EMA and is required for the Manatee project,” said Shell spokesperson Cynthia Babski.
“We are unable to confirm the First Gas dates as the project has not yet achieved Final Investment Decision.”
The Manatee field is part of the cross-border Loran-Manatee discovery, shared by Trinidad and Venezuela. The field holds some 10 trillion cubic feet (tcf) of natural gas, with 7.3 tcf on Venezuela’s side and the remaining 2.7 tcf on Trinidad’s side.
The countries negotiated for years to jointly develop the reservoir and signed preliminary agreements, but a final agreement had not been completed by the time the U.S. imposed sanctions in 2019 on Venezuela’s energy industry, limiting its partnerships and business with foreign companies.
Venezuela’s President Nicolas Maduro later agreed to allow Trinidad to independently develop its portion of the promising field.
“The Manatee project is sanctioned and is well on the way,” Rowley said at a news conference in Port of Spain. “We are taking steps to have that gas come to us as early as we can.”
Earlier this year, Shell submitted, and the government of Trinidad and Tobago accepted, the field development plan that calls for peak production of 700 million cubic feet per day (mcfd) of gas. Rowley did not say when first gas is expected from Manatee.
Rowley said his country continues to pursue access to natural gas resources, both in terms of new offshore bidding rounds in Trinidad and also from Venezuela’s Dragon field, which received a U.S. license for joint development in January. (Reporting by Curtis Williams in Houston; Editing by David Gregorio and Stephen Coates)
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Ireland and UK sign MoU to ensure natural gas supply
Ireland and the UK have signed a Memorandum of Understanding (MoU) to ensure the supply of natural gas in the wake of disruption.
The goal of the MoU is to bolster existing processes and enhance collaboration between the two parties and relevant departments to ensure the security of the natural gas supply. It details how the UK and Ireland will cooperate in the event the supply is reduced or disrupted.
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According to RTE, the MoU comes following the circumstance that emerged last year when there were concerns that Ireland would be cut off if the UK encountered gas shortages.
Over 30% of Ireland’s energy requirements, including 50% of its power, are met by natural gas.
Most of the natural gas supply is provided by the UK, and this is anticipated to increase to almost 90% by 2030 as the supply from the Corrib gas field in Ireland dwindles.
Under Ireland’s net-zero goal, further fossil fuel extraction is prohibited, and nuclear power generation is also illegal.
Currently, Ireland lacks any infrastructure for importing and storing LNG, and such proposals are opposed by environmentalists who claim they would increase reliance on fossil fuels and call for the use of gas from fracking.
The Irish and UK governments also signed an MoU to increase cooperation on developing offshore renewable energy and exploring electricity interconnection avenues.
UK Energy Security Secretary Claire Coutinho said: “As two nations committed to boosting energy resilience and reaching net-zero, today marks a historic moment for the UK and Ireland, as we work more closely together to achieve our shared energy goals.
“Today’s landmark agreements will see us deepen our energy partnership with Ireland, to deliver cheaper, cleaner and more secure energy to our homes and businesses, and grow our economies.”
Ireland Minister for the Environment, Climate and Communications, Eamon Ryan said: “In future most of our energy needs will be met by renewable electricity, but as we transition natural gas will play a crucial backup role in Ireland’s energy system.
“I welcome the opportunity to reaffirm and strengthen the well-established arrangements and engagement with the UK as we work to enhance the security of energy supply in parallel to decarbonising our economy.”
https://www.worldpipelines.com/business-news/18092023/ireland-and-uk-sign-mou/
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Russian Natural Gas Pipeline Catches Fire Following Blast
A natural gas pipeline has caught fire in Russia, RIA news agency said on Thursday. The blast took place at 7:40 a.m. local time and was followed by a fire that affected the underground Peschany Umyot-Storozhevka pipeline near the village of Krasny Oktyabr, operated by Gazprom.
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Videos and photos show balls of fire near the pipeline that engulfed acres, and reports were that a smoke column could be seen from several miles away.
The “open burning” of the gas pipeline has since been extinguished, according to the emergency response system.
The most recent reports at the time of writing did not specify whether the pipeline fire would disrupt energy flows from Russian ports, although restoration work has already begun.
“All circumstances of the incident are being clarified,” Yuri Yurin, head of the regional emergency response department, wrote on Telegram. A special commission will review the causes of the incident.
“Gas supply to consumers is carried out in full. Divisions of Gazprom Transgaz Saratov LLC have started restoration work. The reasons for the incident will be established by a special commission,” The Ministry of Industry and Energy of the Saratov Region said.
The Saratov area is home to a major military airfield, Engels airbase, and the explosion came around the same time as a flurry of Ukrainian missile and drone attacks on Russian military targets. Ukraine said it successfully launched two drone strikes on Engels last year.
The Peschany Umet–Storozhevka network includes two parallel one-meter-diameter trunklines built during the Soviet era. The natural gas from the pipeline goes to industrial customers in the Saratov region.
Europe has not banned or sanctioned Russian natural gas, but pipeline gas supply from Russia to Europe has slowed to a trickle since Russia invaded Ukraine.
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Biden admin reverses Trump-era action making it easier to build fossil fuel pipelines
The Biden administration has unveiled new regulations expanding the authority of states and tribes to deny certification for various infrastructure activities including fossil fuel pipelines that may impact water sources.
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The Environmental Protection Agency (EPA) issued the final rule in a move applauded by a wide range of Democratic governors who said it would strengthen their ability to protect the environment and weigh in on key federal permits. According to the EPA, the rule realigns the scope of a provision in the Clean Water Act of 1972, Section 401, which prohibits projects that result in any discharge into waters from being approved.
“The Biden-Harris Administration is committed to supporting economically secure, healthy, and sustainable communities,” EPA Administrator Michael Regan said Thursday in a statement.
“To achieve this goal, we must protect our water resources while also making investments that move our nation forward,” he continued. “With EPA’s final Clean Water Act Section 401 rule, we are affirming the authority of states, territories, and Tribes to protect precious water resources while advancing federally permitted projects in a transparent, timely, and predictable way.”
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Natural Gas / LNG Utilization
Tanzania: TotalEnergies to venture in CNG, clean electricity generation
TotalEnergies Tanzania, a multi-energy company, is planning to open compressed natural gas stations starting next year, though the investment is subjected to a pilot programme results. The firm, also plans to venture in generating solar and wind power then sell to Tanesco in near future as feasibility study and talks are at advance stage.
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TotalEnergies Tanzania Legal and Corporate Affairs Director Getrude Mpangile said a pilot project for CNG will start next year and will draw a picture that will decide the next steps.
“We intend to invest in CNG project whereby we expecting to start pilot [project] in 2024,” Ms Mpangile told the `Daily News’ last week during the opening of Tanzania Energy Congress. TotalEnergies was one of the sponsors.
According to Tanzania Petroleum Development Corporation (TPDC), up to June the number of vehicles using CNG increased to 2,000 and players are projected to increase from two to nine in near future.
Additionally, the government is considering subsidising the cost of converted cars from oil to gas to speed up the use of CNG in the country.
TotalEnergies is a multi-energy company that produces and markets energies on a global scale: oil and biofuels, natural gas and green gases, renewables and electricity.
However, in Tanzania the company leads in marketing oil and lubricants. And, since the firm transformed in 2021 starts to change inwardly by solarising their filling stations across the country and offices.
“So, locally, since the change of a name and a new era of the company, we have been able to invest in energy transition and we have started by our own activities and then move into providing different energy solutions to our business partners as well,” the Director said.
“In our operation we have been able to solarise our biggest fuel storage terminal in Dar es Salaam, and our lubricant oil blending plant where the bigger part of the plant operation is operated using solar energy.”
The firm also solarised 69 of its oil filling stations across the country. The multi-energy firm is said to have over 100 stations.
She also said that TotalEnergies plans to invest on production of solar and wind power. The project is on-going well with Tanesco.
“This project is ongoing on well,” Ms Mpangile said, “We have already done the feasibility study. We are moving into next step to enable the starting of the production of solar and wind electricity.”
The firm will soon start marketing cooking gas solution to join the government initiative to enable wananchi to have clean cooking solutions.
“The idea is to join the rest of the world to address the ongoing environmental challenges and make the world a best place to leave,” she said.
TotalEnergies also marketing excellium fuel that prevents up to 93 per cent of fouling of inlet valves in indirect injection engines. It helps to keep the inlet system clear and cleans up to 24 per cent existing fouling on the inlet valves.
TotalEnergies started operation in the country in 1969 and owns the cross-border East African Crude Oil Pipeline (EACOP), which will transport oil produced from the Tilenga (TotalEnergies, operator) and Kingfisher (CNOOC, operator) projects in Uganda’s Albert Lake basin to the port of Tanga in Tanzania.
https://dailynews.co.tz/totalenergies-to-venture-in-cng-clean-electricity-generation/
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Hungary heads to Bulgaria for LNG supplies
Hungarian gas importer and distributor MVM CEEnergy has signed a memorandum of co-operation with Bulgaria’s Bulgargaz that calls for the two companies to work together in arranging the supply and trading of liquefied natural gas.
The document continues Hungary’s efforts to diversify its sources of supply, even though state-controlled MVM has a long-term purchase agreement with Russian gas giant Gazprom, with deliveries arranged on preferential terms.
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The memorandum with Bulgargaz follows deals with Azerbaijan and Turkey to secure gas imports, and most recently, a plan to book capacity at the upcoming Gdansk LNG terminal in Poland.
Bulgaria’s state news agency, BTA, said the document was signed by Bulgargaz chief executive Denitsa Zlateva and MVM chief executive Laszlo Fritsch in Budapest. The ceremony was attended by Bulgarian President Rumen Radev and Hungarian Prime Minister Viktor Orban, underscoring its importance.
The memo said both companies will target central-eastern and south-eastern Europe. Gas for the venture will have to come from suppliers in countries that are not subject to international sanctions or other restrictions.
Speaking this week in Warsaw, European Energy Commissioner Kadri Simson again urged European importers to reduce Russian LNG volumes and aim to phase them out completely.
Two Russian companies — independent gas producer Novatek and state controlled Gazprom — are stepping up exports to Europe.
Novatek operates Yamal LNG project in West Siberia and a smaller scale export facility on the Russian coast of the Baltic Sea, known as Vysotsk LNG. Gazprom is ramping up production at a similar mid-sized plant on the Baltic Sea, known as Portovaya LNG.
Data from marine traffic websites suggested that some cargoes from Portovaya LNG have landed in Greece previously.
Greece is a prime candidate for supplying LNG cargoes to Bulgaria, as it expects its largest LNG import project, based on the Alexandroupolis floating storage and regasification unit, with annual import capacity of 5.5 billion cubic metres, to start operations in January 2024.
The Alexandroupolis FSRU was previously an LNG carrier named GasLog Chelsea, built in 2010.
The vessel, owned by Greek LNG carrier owner, operator and manager GasLog, arrived at a Keppel-operated shipyard in Singapore in February this year to fit the regasification equipment. The upgraded FSRU is expected to sail to Greece in November.
Bulgaria is connected to Greece by a legacy gas pipeline and a newer link, Interconnector Greece-Bulgaria, which recently moved forward in its intention to increase its transmission capacity.(Copyright)
https://www.upstreamonline.com/lng/hungary-heads-to-bulgaria-for-lng-supplies/2-1-1519330
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Ogun (Latin America) : Kano Govt Understudies Ogun Vehicle Conversion-to-CNG Project
A team of engineers from Kano State has praised the government of Ogun State for pioneering the conversion of diesel and petrol engines to Compressed Natural Gas (CNG). The team, led by the director of transportation, Kano State Ministry of Transport, Engr. Mahmud Musa Seriki was in Abeokuta, the state capital on a mission to understudy the conversion process.
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It would be recalled that the Ogun State government had embarked on the conversion to eliminate the effect of the recent removal of subsidy on fuel.
The move will reduce the cost of transportation in the state and make life more comfortable.
Speaking while inspecting some of the CNG-powered buses, Engr. Seriki said Ogun State is blazing the trail in the conversion to CNG and Kano State which also has the plan to do the same, thought it wise to understudy the process.
Seriki said Kano State has a lot to benefit from the visit to the Gateway State as his team has had first-hand experience and interaction with the experts handling the conversion process, adding that all of these would be useful when Kano wants to commence a similar conversion process.
“I am thrilled by what we are seeing here, particularly the likely effect on the reduction of transport fare which the conversion would have on commuters when the vehicles begin to ply the roads.
“We are pleased to have this firsthand experience and we will go back to our state to replicate the same with a view to making living more abundant for an average Kano resident,” he said.
Addressing the team earlier, Special Adviser to the Ogun State Governor on Revenue Assurance, Mr. Oluseyi Ogunseye said it made more economic sense to run engines on gas rather than on diesel and petrol as it saves almost 40 percentage of funds that could be used for some other pressing needs while at the same time, provides a greener environment and reduces environmental pollution.
He commended the Kano State government for sending its team of engineers to understudy the Ogun State model of the CNG conversion, assuring that Ogun State would always be willing to assist and share its varied experiences with any state that makes such request.
According to him, CNG should be encouraged and supported because it is lighter than air and in case of a leak disperses upward rather than pooling on the ground which would reduce the risk of fire outbreak.
The director, Vehicle Inspection Services in the Ministry of Transportation, Engr. Olugbenga Ademehin highlighted the core advantages of the CNG over other fueling substances.
He said that it is composed mainly of methane which is a primary component of natural gas.
Also, Mr Millind Dekhole of NGTSL SPIRO, handlers of the conversion process, highlighted its advantages to include eco- friendliness, comparative reduced fuel consumption, non-toxicity which elongates the life span of engines among others.
He said the partnership with the Ogun State Government would facilitate the conversion of a large number of vehicles to use CNG fuel, provide CNG kits and provide workspace infrastructure across the three senatorial districts of the state.
https://leadership.ng/kano-govt-understudies-ogun-vehicle-conversion-to-cng-project/
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Global LNG Development
Azerbajian: SOCAR Trading starts LNG trading in Singapore to capture Asian demand
Azerbajian’s SOCAR Trading has begun liquefied natural gas (LNG) trading in Singapore to capture growing demand in Asia, its chief executive said.
The company has hired an LNG trader who will be starting work soon and it plans to employ a few more staff, CEO Mariam Almaszade told Reuters.
“We’re looking to increase our footprint in Asia,” she said, adding that this comes on the back of expansion of gas trading operations in Europe over the past couple of years.
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“(We’re) looking to extend the same set-up in Asia.”
The company is offering LNG cargoes to Pakistan on a regular basis in a deal between the country and Azerbaijan, Almaszade said.
SOCAR is also looking at investing in LNG-to-power projects across Asia in expectation of a recovery in LNG demand after prices cooled from record levels hit last year after Rusia invaded Ukraine.
“It was almost prohibitive for many countries to import LNG,” Almaszade said. “Today’s LNG prices are at more reasonable levels, so we see more people coming back to try to switch to gas.”
LNG buyers in Asia, especially emerging markets, have increased spot purchasing activity this year as prices LNG-AS have eased from last year’s record highs. Vietnam and the Philippines are the latest entrants to the global LNG market having started up import terminals this year.
Almaszade said the company has a long-term stable relationship with Vietnam for crude trade.
Vietnam could import more LNG to fuel its big industrial growth, but price is a big factor, Almaszade said.
“Vietnam has well-developed gas industry and infrastructure, but importing gas will pose new challenges and create exposure to global markets,” she added.
The state-owned trading firm is also looking at supplying crude and LNG cargoes paired with carbon offsets to buyers in Asia, Almaszade said, after it sold a cargo to Taiwanese refiner CPC Corp last year.
“We see our future in transitional energy,” she said.
The company plans to expand its carbon trading capability, including in Singapore, Almaszade added.
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US: ConocoPhillips to Further Diversify Global LNG Portfolio with Additional Long-Term Agreement for European Regas Capacity
ConocoPhillips (NYSE: COP) announced today further progress on its global liquefied natural gas (LNG) strategy, signing a commercial agreement to secure additional regasification capacity in Europe at the Gate LNG terminal in the Netherlands. This agreement further complements the company’s foundational LNG resource positions in Qatar and Australia, offtake and equity in Sempra’s recently sanctioned Port Arthur LNG Phase 1 project on the U.S. Gulf Coast, regasification agreement at the German LNG Terminal announced last year, and the offtake agreements at Mexico Pacific’s Saguaro LNG export facility on the west coast of Mexico announced last month.
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“Adding capacity at the Gate LNG terminal fits well with our efforts to deliver reliable, lower-carbon energy into Europe from highly competitive LNG supply,” said Bill Bullock, executive vice president and chief financial officer of ConocoPhillips. “Expanding our LNG footprint with agreements like this further enhances a balanced, diversified, and attractive portfolio as we progress our global LNG strategy.”
Gate Terminal B.V., a joint venture of Vopak and Gasunie, is an LNG hub at the Port of Rotterdam that contributes to the natural gas supply in the Netherlands and northwest Europe. The terminal began operations in 2011. ConocoPhillips’ 15-year throughput agreement for approximately 1.5 million tonnes per annum (MTPA), or 2 BCM equivalent, begins in September 2031 and secures access to this important market for the company’s growing global LNG portfolio.
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US: Wison & Genting sign LNTP deal to buy equipment for FLNG unit in Indonesia
Wison (Nantong) Heavy Industry, an affiliate of Wison Offshore & Marine, and Genting Oil & Gas Limited (GOGL), via its wholly-owned indirect subsidiary PT Layar Nusantara Gas (PTLNG), have entered into a limited notice to proceed agreement (LNTP) to purchase $43.04 million of long lead items for a 1.2 mtpa floating liquified natural gas (FLNG) facility.
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Wison said the agreement allows PTLNG to place orders for long lead items including cold box, compressor, generator sets etc. prior to the execution of the engineering, procurement, construction, installation and commissioning (EPCIC) contract, adding that PTLNG is a special-purpose vehicle established to construct, own and operate a 1.2 mtpa FLNG facility, an onshore gas processing plant and a pipeline to be located in West Papua, Indonesia.
During the signing ceremony, the Chairman of Wison, Hua Bangsong, said: “According to the Gastech exhibition in Singapore that I attended, the LNG market is very tight at the moment, and it is expected that the future demand will increase significantly, so it is necessary to lock in key resources as soon as possible to ensure that the project will be put into production on time.”
“The signing of this agreement marks a key milestone in achieving the first drop of LNG in Kasuri Block by Q2 of 2026. Due to Indonesia’s archipelago nature and abundant marginal gas resources, the FLNG facility offers the most cost-effective option to monetize natural gas in the region, and Wison sees Indonesia as an important strategic market for FLNG.
“I would like to state Wison’s commitment to Genting Group’s FLNG project and to ensure its smooth implementation and delivery. We hope this project will demonstrate the value of the FLNG facility to the Indonesian Government and gas operators.”
Dato’ Sri Tan Kong Han, President & COO & Executive Director of Genting Berhad, the holding company of GOGL, noted that the Genting Group’s FLNG facility shall be the first FLNG facility in Indonesia and expressed gratitude to the Government of Indonesia for approving the revised first phase plan of development for the Asap, Merah and Kido structures in February 2023, which allows the supply of 230 million cubic feet per day (mmcfd) of natural gas to the FLNG facility for 18 years, as well as another supply of 101 mmcfd of natural gas to an ammonia and urea plant to be built in West Papua, Indonesia for 17 years.
Wison said the Asap, Merah and Kido structures are within the concession area for the Kasuri Block in West Papua, Indonesia, awarded to Genting Oil Kasuri Pte Ltd (GOKPL), another wholly-owned indirect subsidiary of GOGL, pursuant to a production sharing contract signed in May 2008 between GOKPL and BP MIGAS, the Indonesian oil and gas regulator, which had since been succeeded by SKK MIGAS.
Wison is currently conducting a front-end engineering and design (FEED) study for the FLNG facility, which is estimated to be completed by the end of November 2023.
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Finland: Rohe to liquefy biogas at Finland’s Hamina LNG terminal
Rohe Solutions, a joint venture of Finland’s Hamina Energy and Estonia’s Alexela, has revealed plans to liquefy biogas at the Hamina LNG terminal. Hamina Energy and Alexela, along with Finnish tech firm Wartsila, also own the Hamina LNG terminal operated by Hamina LNG.
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Hamina LNG launched commercial operations in October last year and provides storage services from one 30,000-cbm LNG tank as well as regasification and injection services into the Finnish gas transmission network with a daily capacity of 6,000 MWh.
According to a statement by Rohe, the firm plans to liquefy biogas from the grid at the Hamina LNG terminal with first pilot deliveries of bio-LNG expected in the first quarter of 2024.
Rohe sells natural gas, LNG, and biogas as well as related services based on the needs of industrial manufacturing, heavy goods transportation, and maritime traffic.
In 2024, Rohe said it will also offer its customers bio-LNG, or liquefied biogas.
The firm is part of Haminan kaasuklusteri, a Finnish coalition of gas and energy companies operating in the Hamina area.
As part of the coalition, the company will be able to offer extensive bio-LNG supply channels also beyond Finland, it said.
Bio-LNG demand on the rise
According to Rohe, the market demand of bio-LNG is growing “rapidly”, but domestic production in Finland is still very limited.
Furthermore, ongoing projects to increase domestic production are “only at an early stage”.
The availability of bio-LNG has therefore been a challenge, especially regarding short term needs.
Especially smaller biogas producers will benefit from the possibility of biogas liquefaction at the LNG terminal since this can be done without the producer having to make costly investments in liquefaction equipment, the firm said.
To be liquefied at the terminal, locally produced biogas must be injected into the national gas grid.
“Rohe Solutions is cooperating with various stakeholders to increase the supply of biogas. By liquefying biogas from the grid, we will be able to offer bio-LNG to the market before the planned biogas production plant projects are completed,” Rohe’s CEO Sanna Kokkonen said.
https://lngprime.com/europe/rohe-to-liquefy-biogas-at-finlands-hamina-lng-terminal/92653/
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LNG as a Marine Fuel/Shipping
Denmark: First container ship powered by green methanol sets sail
A.P. Møller – Mærsk introduced the world’s first container cargo ship using methanol propulsion last week in Copenhagen. Other major maritime transportation operators have also been ordering methanol-powered vessels, seeing the fuel as suitable for decarbonization.
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The new ship, Laura Maersk, is the world’s first container vessel equipped with a methanol propulsion system. The ship’s godmother is the President of the European Commission Ursula von der Leyen, who pressed the button and broke a champagne bottle on the ship’s bow during the launching ceremony in the port of Copenhagen.
Maersk has ordered another 24 methanol-powered ships, with deliveries scheduled from next year through 2027. The company earlier vowed to order only new vessels that have a green fuel option.
The new container ship was constructed in South Korea. It has 172 meters in length and the capacity to transport 2,100 TEU (twenty-foot equivalent units), a standard measure for shipping containers.
The ship features dual propulsion. Namely, the company intends to use green methanol, but there is also the option to use conventional fuel when necessary. With its methanol tanks filled, the ship can travel approximately 11,000 kilometers. For the initial period, Maersk procured biomethanol that was produced from methane captured at landfills. It counts as low-carbon fuel.
Maersk also reached an agreement with European Energy for an annual supply of up to 300,000 tons of e-methanol starting in 2025/26. It is produced from low-carbon hydrogen obtained through electrolysis and carbon from carbon dioxide that was emitted in industrial production processes and captured.
Laura Maersk came to its inauguration from a shipyard in South Korea.
The transformation of the global cargo ship fleet using clean-fuel propulsion systems
According to Eurostat’s data from May, Maersk had a fleet of 682 container ships with a total capacity of 4.13 million TEUs.
A.P. Møller – Mærsk controls approximately 15% of the global container shipping market. It has an ambitious target to cut net greenhouse gas emissions to zero by 2040.
Methanol is fuel for decarbonizing maritime transport
Methanol has significant potential for decarbonization and as an alternative fuel for ships. It is easy to handle and move, as it is in liquid form. Moreover, it can be stored and filled at atmospheric temperature and pressure.
Methanol doesn’t take up much space on board a ship, unlike batteries and hydrogen tanks. Methanol tanks require fewer safety precautions than hydrogen and ammonia.
Additionally, it doesn’t jeopardize the environment much, it’s not highly toxic like ammonia, it is more energy-efficient than other green fuels and can be used with existing infrastructure.
However, green methanol production is more expensive than conventional methanol, which is obtained from coal or natural gas. Biomethanol can also be made by gassifying biomass waste.
IMO mandates the shipping industry to reduce emissions by at least 40% by 2030
The International Maritime Organization (IMO) gave the green light in 2020 for the use of carbon-neutral methanol as a fuel. It published guidelines for decarbonizing the maritime transportation sector, which is responsible for approximately 3% of global emissions.
The IMO’s strategy envisages cutting emissions in shipping by a minimum 40% by 2030, from the level measured in 2008, and by at least 50% by 2050. The agency is promoting the idea of total decarbonization by the end of the century.
All major shipping companies are ordering methanol-powered ships
In line with the goal, global maritime industry giants have already been ordering methanol ships, which bolstered the demand for the fuel.
CMA CGM from France is buying 18 vessels from China State Shipbuilding Corporation (CSSC) for USD 3 billion, as reported by Reuters. The shipbuilder is obligated to deliver them in 2025, the article adds.
COSCO Shipping Holdings has ordered 12 methanol-powered ships worth approximately USD 2.9 billion, which will be constructed at a shipyard in Yangzhou, China, by 2028.
HMM (Hyundai Merchant Marine) has ordered nine ships in South Korea, its home market.
COSCO and CMA CGM have signed memoranda for the procurement and supply of green methanol in major ports in China while Maersk has a similar agreement for its container ships.
Projects and facilities for supplying green methanol are already in preparation in Singapore, Melbourne, and Gothenburg.
https://balkangreenenergynews.com/first-container-ship-powered-by-green-methanol-sets-sail/
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South Korea: Samsung Heavy develops high-speed welding robot for LNG carriers
South Korean shipbuilder Samsung Heavy Industries said it had developed a laser high-speed welding robot to speed up the construction of liquefied natural gas (LNG) carriers.
SHI said in a statement that the new robot, first such technology in the industry, would substantially improve the speed of joining membrane panels in the cargo holds of LNG carriers.
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According to the shipbuilder, the new laser high-speed welding robot is up to five times faster than the existing method of plasma arc welding (PAW).
When welding a 2-meter-long membrane panel, PAW takes about five minutes, while laser welding takes only one minute, SHI claims.
SHI said that the length of membrane panel welding for four cargo holds on a 174,000-cbm LNG carrier is about 60 kilometers, which is equivalent to a straight line from Seoul to Pyeongtaek.
SHI testing new tech
The shipbuilder said that the industry has been experiencing difficulties in securing skilled welders and PAW has limited productivity improvement.
In response, SHI’s production technology research center developed the laser high-speed welding robot which rotates the laser beam at precise intervals and speeds.
The technology also has defocusing capabilities to adjust the focal point and a laser displacement sensor to automatically locate curved welding positions, it said.
Last month, SHI completed a test to apply the laser high-speed welding robot to a Korean LNG carrier (KC-2C).
Furthermore, the shipbuilder plans to test the tech with GTT’s Mark III containment system and and to secure final client approvals later this year.
Besides LNG carriers, SHI also aims to apply this tech to the construction of liquefied hydrogen carriers in the future.
Record LNG carrier orders
Last year, SHI secured orders for 36 LNG carriers, marking a record for the largest number of orders for LNG carriers in a year for the shipbuilder.
In 2023, the shipbuilder and Japan’s JGC won a contract from Malaysia’s Petronas to build the first nearshore FLNG with a capacity of about 2 million tonnes.
In addition to the $1.5 billion FLNG contract, it also won orders for six LNG carriers worth about $1.5 billion.
SHI is expected to secure more orders for LNG carriers by the end of this year as part of the second phase of the giant Qatari shipbuilding program.
As of August 31, SHI had 85 LNG carriers in its order backlog worth about $18.4 billion.
https://lngprime.com/asia/samsung-heavy-develops-high-speed-welding-robot-for-lng-carriers/92690/
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UK: Avenir LNG places LNG bunker trio with Wilhelmsen Ship Management
London-headquartered global energy supplier for small scale LNG and gas carrier owner, Avenir LNG Ltd, has awarded the management of three LNG bunker vessels to Wilhelmsen Ship Management. The vessels awarded are Avenir Achievement, Avenir Ascension, and Avenir Aspiration.
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“We are thrilled to embark on this journey with our new client, Avenir, and we look forward to managing these state-of-the-art LNG bunker tankers, which hold a pivotal role in the industry’s ongoing energy transition. We are excited about the opportunities this collaboration will bring and the value it will deliver to both parties,” said Carl Schou, CEO and President of Wilhelmsen Ship Management.
Avenir is a new customer to Wilhelmsen. The three vessels were previously managed by Höegh LNG, one of three blue-chip shareholders in Avenir LNG, alongside Stolt Nielsen Ltd and Golar LNG.
“Höegh LNG have contributed enormously to the success of Avenir LNG since the company was established in 2018, paving a solid foundation for the future. We applaud all their hard work and Höegh LNG will continue to be key part of our growth trajectory as a key shareholder. The award to Wilhelmsen, one of the world’s top ship managers with global reach, represents a new milestone on our journey and we have full confidence in the added value they can deliver,” commented Avenir LNG CEO, Peter Mackey.
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Russia: Gazprom ships its first LNG vessel along Northern Sea Route
Gazprom has shipped its first consignment of LNG to China through Russia’s Arctic waters, duplicating the delivery route used by Russian natural gas producer Novatek. As explained, it was the first time its own-produced LNG was delivered via the Northern Sea Route, adding that the use of this route ‘significantly’ reduces the time required for LNG shipments to be delivered to the Asia-Pacific region.
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The LNG plant began operating in September of last year, and regular shipments have been made on established routes.
As informed, in the Northern Sea Route’s frigid eastern stretch, wintertime transits require a heavy icebreaker escort to clear the way. In summer, the ice recedes, allowing a limited amount of merchant traffic to pass.
A standard Capesize bulker recently transited the NSR for the very first time, followed by the first transit for a non-ice-class Aframax tanker.
https://safety4sea.com/gazprom-ships-its-first-lng-vessel-along-northern-sea-route/
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China: GTT receives order for tank design of three new LNG carriers
GTT has received an order from its partner, Dalian Shipbuilding Industry Co. Ltd, for the tank design of three new LNG carriers, on behalf of China Energy.
GTT will design the tanks of these three vessels, which will each offer a capacity of 175 000 m3. The tanks will be fitted with the Mark III Flex membrane containment system developed by GTT.
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The delivery of the vessels is scheduled for 1H27 and 1Q28.
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Technological Development for Cleaner and Greener Environment Hydrogen & Bio-Methane
Denmark: Maersk’s parent launches methanol company as OCI also expands production
Demand for green methanol and related fuel products continues to grow not only from the shipping industry but other industries that will be equally hard to decarbonize. Projecting exponential growth from the shipping industry as well as road transportation and industrial applications, companies are moving to create new capacity with both A.P. Moller Group, the parent company of Maersk, and OCI Global becoming the latest to announce efforts to build the supply of green methanol.
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Timed to coincide with the naming ceremony for the world’s first dual-fuel methanol containership, A.P. Moller Group announced the launch of a new company, C2X, that will build, own, and operate green methanol production. Moller points out that it will be an incubator for the new company having completed a financing round and being the majority owner. A.P. Moller-Maersk, the public company that owns the shipping and logistics company will also be a 20 percent stakeholder in the new company.
Moller points out that methanol is already used in many everyday products, including plastics, glues, textiles, and other applications. Now the shipping industry and other industrial applications look to be an increasingly larger user of the methanol fuels in the efforts to decarbonize. Both Moller and OCI point to the dramatic growth in the order book for methanol-fueled ships.
OCI has projected growth in the green methanol market of incremental demand of more than six million tonnes by 2028, due to the adoption of green methanol as a shipping fuel, based on the 225 dual-fueled methanol vessels now on order. Longer term, Moller says it anticipates that annual demand for methanol could triple to some 300 million tonnes, with the majority being green methanol.
“Replacing the existing use of fossil methanol with green methanol, and also meeting the growing demand from the use of green methanol as a fuel, requires a step change in the global production capacity of non-fossil methanol,” highlights Moller. C2X they report is being established to address this challenge through investments in large-scale green methanol production facilities and aims to support a variety of customers in the chemicals and shipping sectors who need green methanol to deliver their own greenhouse gas emission reduction targets.
“C2X was founded to enable the energy transition in several hard-to-abate industries, including plastics, glues, textiles, and fuels,” says Robert M. Uggla, CEO of A.P. Moller Holding.
They plan to have an annual production capacity of more than three million tonnes by 2030. C2X will develop green methanol from various pathways depending on the specifics of the location, and is presently pursuing large-scale green methanol projects near the Suez Canal in Egypt and the port of Huelva in Spain, as well as other opportunities across several geographies.
C2X launches with a strong management team, including a 35-year energy industry veteran, Drian Davis who joins the company from Shell to become CEO. Alastair Maxwell joins as CFO with 30 years of banking experience including at Morgan Stanley and Goldman Sachs, and they will have an initial team of 60 people.
OCI Global, which reports it is currently the largest producer of green methanol, announced that it will double its production capacity to approximately 400,000 metric tons per year. OCI highlights that its off-takers currently include the road fuels market, where it is used as a fuel-blend to reduce emissions from petrol, as well as a building block in a range of industrial applications, and most recently, as a fuel for shipping.
The scale-up plans for production from the company’s operations in Beaumont, Texas include entering into supply agreements for renewable natural gas (RNG) exceeding 15,000 mmbtu per day, as well as securing the waste and development rights from the City of Beaumont.
This is OCI’s first upstream RNG production facility and production is slated to start in Q1 2025. OCI HyFuels will add green hydrogen-based e-methanol to its production portfolio for the first time based on the growing demand from numerous high-emission industries.
C2X and OCI join a growing list of companies racing to expand or enter the market for green methanol, Analysts have highlighted the opportunities citing that current production plans lag far behind expected demand.
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US: OCI Global to double green methanol capacity in US to meet demand from industries
Firm will increase capacity to 400,000 mt per year in response to growing demand for green methanol from numerous high emissions industries, including road transport, shipping and industrial.
Green methanol producer OCI Global (OCI) on Wednesday (13 September) announced plans to double its green methanol production capacity to approximately 400,000 metric tonnes (mt) per year in response to the growing demand for green methanol from numerous high emissions industries, including road transport, shipping and industrial.
The scale-up plans include entering into supply agreements for renewable natural gas (RNG) exceeding 15,000 mmbtu per day – as well as securing the waste and development rights from the City of Beaumont.
This is OCI’s first upstream RNG production facility and production is slated to start in Q1 2025. As well as reducing carbon dioxide emissions, obtaining biogas from landfill has the benefit of using methane – which over a 20-year period, has a global warming potential that is 84 times more potent than carbon dioxide – that would otherwise escape and accelerate global warming.
A critical manufacturing building block, green methanol can effectively decarbonize traditionally hard-to-abate sectors by significantly reducing the carbon footprint and emissions across a range of key value chains to power cleaner industries.
OCI currently has capacity to produce up to 200 thousand metric tons of green methanol. Offtakers include the road fuels market, where it is used as a fuel-blend to reduce emissions from petrol; as a building block in a range of industrial applications; and most recently, as a fuel for shipping.
OCI has projected growth in the green methanol market of incremental demand of more than 6 million tonnes by 2028, due to the adoption of green methanol as a shipping fuel, based on the 225 dual-fuelled methanol vessels now on order.
This summer, the first ever green methanol container vessel, owned by AP Moller Maersk, was fueled with OCI HyFuels green methanol on its maiden voyage from Korea to Copenhagen. The company also announced last month a new agreement with Xpress Feeder Lines to supply their green methanol ships at the Port of Rotterdam from 2025.
Ahmed El-Hoshy, CEO, OCI Global, said: “Today’s announcement cements OCI’s position as the leading green methanol producer globally. It also represents another milestone in our decarbonization journey as a business, and our commitment to driving the energy transition. “It’s positive that we are starting to see industry make that commitment too. We are seeing encouraging signs with regulatory support for both ammonia and methanol in shipping, such as the EU’s FuelEU maritime regulation and the latest IMO strategy bolstering the value of low carbon and green methanol and ammonia relative to fossil fuels.”
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“It is clear that both fuels will need to play an integral role to reach the IMO’s revised targets and OCI Global stands ready to supply them. However, these targets must be supported by practical mechanisms to continue to maintain momentum towards meeting global greenhouse gas emissions reduction targets.”
Bashir Lebada, CEO, OCI Methanol/HyFuels, said: “We continue to see more and more realisation that methanol is the transportation sector’s most viable solution and the easiest way to transport and use renewable hydrogen today.”
“It is a solution that is available now and our focus is on continuing to scale technologies whether through our projects or our supply partners, to ensure that our capacities continue to grow alongside demand. We are seeing increasing pull from road fuel markets due to the delay in EV adoption and charging station build-out and while marine demand has been growing at a very fast pace, we have yet to see the impact of retrofits which should end up being a larger segment than new-builds.
“E-methanol will also be a new product for us, and with the RFNBO mandates in the coming years, will quickly become the blendstock of choice with gasoline to ensure compliance. We are also very excited to announce the expansion of our 13-year partnership with the City of Beaumont, this landfill will bolster our product portfolio with additional green fuels right in our backyard and add to our existing supply portfolio of RNG.”
Roy West, Mayor of Beaumont, said: “We’re pleased to partner with OCI on this exciting project, which further develops our long-term relationship with OCI as an industrial employer in Beaumont. This joint project will create societal and environmental benefits, including the reduction of greenhouse gas emissions and reduction in other air emissions resulting from landfill operations.”
“This agreement is considered a win-win agreement for the city and OCI, as it allows the City to generate an additional revenue stream from its landfill operations while OCI will be able to use the renewable natural gas for its business.”
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Air Liquide and Trillium agree to develop US hydrogen fuelling market
Air Liquide has signed a Memorandum of Understanding (MoU) with Trillium Energy Solutions to develop heavy-duty hydrogen fuelling in the US market. As a leading company in low carbon and renewable hydrogen production, supply and technology, Air Liquide will support fuelling infrastructure supplier Trillium in establishing a fuel supply network through the country.
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Under the agreement, the companies will explore the possibility of an extensive hydrogen retail network, beginning with initial deployment of hydrogen refuelling stations along a strategic trucking route.
The aim of the collaboration is to boast 15 tonnes per day of hydrogen production and the refuelling capability of providing more than 2,000 heavy-duty vehicles with fuel.
Katie Ellet, President of Hydrogen Energy and Mobility North America, Air Liquide, said, “By combing our expertise and resources, we are poised to drive the widespread adoption of hydrogen as a scalable solution in decarbonising transportation particularly in the heavy-duty sector.”
Air Liquide has experience in hydrogen refuelling station projects, recently opening its Fos-sur-Mer hydrogen refuelling station in Marseille, France, along with project partner IVECO Group.
The company will utilise this expertise in collaboration with Trillium, who in turn will offer its extensive proficiency in operating and managing alternative fuel stations, as well as its nationwide infrastructure footprint to deploy a hydrogen network for retail customers.
Ryan Erickson, Vice President of Trillium Energy Solutions, said, “Trillium is a leading provider of heavy-duty hydrogen fuelling stations and through our collaboration with Air Liquide we can make a significant stride towards accelerating the development of hydrogen infrastructure across the US.”
https://www.h2-view.com/story/air-liquide-and-trillium-agree-to-develop-us-hydrogen-fuelling-market/2099695.article/
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