NGS’ NG/LNG SNAPSHOT Sept 16-30, 2024
National News Internatonal News
NATIONAL NEWS
City Gas Distribution & Auto LPG
GR issued to convert 5000 state diesel buses to LNG; Govt sanctions 970 cr for 4-year project
Mumbai: The state has issued a fresh GR approving the Maharashtra State Road Transport Corporation’s (MSRTC) plan to convert and maintain 5,000 diesel buses to run on liquefied natural gas (LNG) as part of the Green Transportation initiative. The project has been allocated a total of Rs 970 crore over a four-year period, with funds distributed as follows: Rs 40 crore for the current financial year, Rs 200 crore for the next financial year, Rs 370 crore for 2026-2027, and Rs 360 crore for 2027-2028.
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An MSRTC official stated that the conversion cost for each bus will be Rs 19.4 lakh. The transition to LNG fuel is anticipated to reduce pollution caused by diesel vehicles by approximately 10%, as LNG vehicles emit 30% less CO2 and 90% less particulate matter (PM) compared to diesel vehicles.
The official also noted that existing diesel vehicles can be gradually retrofitted to use LNG, which provides a driving range of 600-1000 kilometres on a single fill, surpassing the range of Compressed Natural Gas (CNG).
By adopting LNG, the bus corporation is expected to save over Rs 235 crore annually, as fuel expenses constitute 34% of the total expenditure in MSRTC’s bus operations, a senior MSRTC official said.
During the 2023-2024 budget, the govt had announced its intention to convert diesel buses to eco-friendly CNG buses, stating that “5,000 diesel buses will be converted to vehicles running on LNG.” Subsequently, in a meeting held on 22 November 2023, the MSRTC decided to convert a total of 5,000 diesel-powered vehicles to run on LNG and approved a phased conversion strategy over the next four years, the GR mentioned.
The necessary funds have been allocated under the budget head “Grant for Capital Expenditure on Construction and Other Facilities under the Modernisation of Bus Stations of MSRTC,” the GR stated.
As the project progresses over the next four years, the MSRTC will need to ensure a smooth transition to LNG-powered vehicles, which may involve training drivers and maintenance staff, establishing the necessary infrastructure for LNG refuelling, and closely monitoring the performance of the converted buses.
“The conversion of diesel buses to LNG is expected to have a positive impact on both the environment and the financial health of the MSRTC. By reducing fuel costs and emissions, the corporation can enhance its operational efficiency and contribute to the state’s efforts in reducing air pollution,” an official added.
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Maharashtra to Convert 5,000 State Transport Diesel-run Buses to LNG
Mumbai: The Maharashtra transport department has granted approval for the conversion and maintenance of state transport corporation operated 5,000 diesel-run buses to LNG (Liquified Natural Gas) as part of its green transport initiative. The transport department will spend Rs 970 crore for this initiative in the next three years. The department has issued a GR (government resolution) in this regard.
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Maharashtra deputy chief minister Devendra Fadnavis had tabled a budget for the financial year 2023-24, as the then finance minister, which proposed the purchase of electric buses and conversion of the 5,000 diesel buses into LNG-run vehicles under “green transport initiatve” in order to tackle air pollution in the state. Following this, an MoU (memorandum of understanding) was inked between MSRTC (Maharashtra State Road Transport Corporation) and M/s. Kings Gas Private Limited Company in the presence of Chief Minister Eknath Shinde in March 2024.
The GR said that Rs 40 crore has been sanctioned for 2024-25, Rs 200 crore for 2025-26, Rs 370 crore for 2026-27 and Rs 360 crore for 2027-28. Thus a total Rs 970 crore has been approved for conversion of 5,000 buses into LNG-run buses. “The MSRTC board of directors resolution of November 22, 2023 fixed the conversion cost at Rs 19.40 lakh per bus,” it said. According to the officials, the government will save around Rs 250 crore over the fuel expenditure if all the buses shifted to the LNG as it will be supplied at a 20 percent cheaper rate compared to diesel.
Speaking with this newspaper, Madhav Kusekar, Vice Chairman and Managing Director of MSRTC, said, “The conversion of diesel buses into LNG will help to bring down the fuel cost significantly. It will also reduce pollution and promote green transport in the state.” The MSRTC is also in process to induct 5,150 electric buses in its fleet, 70 buses of which have already been commissioned. In July 2023, it had awarded the contract to Olectra Green Tech Limited and Evey Trans Private Limited – subsidiaries of Megha Engineering and Infrastructure Limited (MEIL). Delhi: Discover Extra Income with Amazon CFD FXRD Learn More A 3-5 September 2024 Riyadh, Saudi Arabia At the present, the MSRTC has a fleet of around 15,700 buses and ferries 60 lakh passengers per day.
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Bio-CNG plant to come up at Ghazipur, generate fuel for buses
A bio-CNG plant is set to come up in Ghazipur to turn wet waste from wholesale markets in the area and residential colonies in the vicinity into clean transportation fuel, senior civic officials aware of the matter said.
This will be the second such plant, following one at Okhla that is located alongside a previous facility. The Municipal Corporation of Delhi (MCD) approved the signing of an MoU with Indraprastha Gas Limited (IGL) on August 21, officials said.
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“The plant will use organic or wet waste to generate fuel gas. Unlike other pending projects and schemes, this project to set up bio-CNG plant at Ghazipur will not require permission from the standing committee as the entire project cost will be borne by IGL,” a senior official, requesting anonymity, said.
The MCD said the project will help in diverting waste that is dumped at the oversaturated Ghazipur landfill. The civic body is expecting the plant to be operational in 18 months, once the MoU is signed.
According to the initial project plan, MCD will provide land and IGL will take over the site and develop the plant on its own. “We will be providing a daily supply around 350 tonnes of fresh waste every day. This wet waste will be fed into digesters and converted into compressed natural gas for use as fuel,” the MCD official said.
The official said that the expected production of various components generated after the bio-methanation process of 100 tonnes per day of municipal solid waste would comprise 4,000kg per day of compressed biogas, 15 tonnes per day of city compost, and 50 kilolitres per day of wet slurry. “The manure may be utilised by MCD at its nurseries, gardens and green belts at a mutually decided cost, or the operator may be allowed to sell it in the open market after improving its quality,” the official said.
Officials of Indraprastha Gas Limited did not respond to request for comment.
“Delhi Development Authority transferred 10 acresto the corporation for development of a waste processing facility. The project site is located at the rear of this landfill, towards paper market. The land parcel was transferred in July but some documentation work is pending. Meanwhile, we have communicated the development to IGL so that the project can be expedited,” the official said, adding that the MoU is expected to be signed in September.
Discussing the facility at Okhla, a second MCD official said: “The facility is expected to produce compressed natural gas (Bio-CNG) by treating 200 tonnes of wet waste and dairy waste every day, which will, in turn, be utilised as clean fuel for operating vehicles.”
“The civil work at site is going on at full and installation of digester units is being carried out,” the official said.
Of the total area of 12,000 square metres, 11,000 sqm will be used for setting up a biogas plant and 1,000 sqm for an integrated CBG-CNG fuel station. The delayed project is expected to be completed by December.
Indore operates bio-CNG plants to supply fuel to the bus fleet of the city. In 2022, Prime Minister Narendra Modi inaugurated a 550-tonne-per-day-capacity plant worth ₹150 crore at the Devguradia trenching ground, which generates bio-CNG to run a fleet of 150 city buses.
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Natural Gas/ Pipelines/ Company News
Gahlot inaugurates installation of PNG pipelines in Dichaon Kalan and Khaira
New Delhi: Delhi Cabinet minister and MLA of Najafgarh constituency, Kailash Gahlot, inaugurated the installation of Piped Natural Gas (PNG) pipelines in the villages of Dichaon Kalan and Khaira, on Sunday. The project, undertaken by Indraprastha Gas Limited (IGL), is expected to bring a significant improvement in the energy infrastructure of the region.The installation, costing approximately Rs one crore, is slated for completion within two months, followingwhich PNG connections will be made available to households in both villages.
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Addressing the local residents during the inauguration, Gahlot expressed his vision for the area stating, “Delhi is the capital of the country, but residents of Najafgarh have historically been deprived of essential facilities. After winning the elections in 2015, my dream was to ensure that Najafgarh has all necessary amenities such as water, sewage, gas lines, and good roads. Before 2015, only 15 kilometres of pipeline had been laid in Najafgarh. By 2025, we aim to complete the gas pipeline installation in all colonies and villages of Najafgarh.”
“The introduction of PNG pipelines is a crucial example of our efforts to provide clean energy to Najafgarh residents. Ensuring access to clean energy solutions is vital for thedevelopment and progress of any area. The PNG pipeline connections represent a significant step towards achieving this goal,” he added.The ambitious project aims to establish PNG pipelines in 21 villages and 200 colonies in Najafgarh by March 2025. To date, IGL has successfully completed work in 30 colonies and 14 villages, including Mitraon, Dhansa, Kazipur, Isapur, Bakra Garh, Mundhela Kalan, Mundhela Khurd, Kair, Ujwa, Malikpur, Samspur, Jafarpur, and Surkpur. Since 2015, over 227 kilometers of PNG pipelines have been installed at a cost of nine crore rupees, with 48,550 meters laid between 2015 and 2020, and 51,700 meters between 2020 and 2023.
PNG is considered a highly secure cooking gas alternative. It is lighter than air and dissipates quickly if a leak occurs, minimizing risks. Unlike LPG, which can be tampered with and often suffers from issues like underweight cylinders, PNG offers a constant and safe energy supply. The meter for PNG is installed similarly to an electricity meter, reducing the chances of tampering.
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V Satish Kumar takes additional charge as chairman of IndianOil
New Delhi: V Satish Kumar assumed additional charge as Chairman of Indian Oil Corporation Limited (IndianOil), while continuing in his role as Director (Marketing), which he has held since October 2021. Kumar, who has a career spanning 35 years, also held the additional charge of Director (Finance) for one year starting from October 2022, during a period marked by geopolitical tensions due to the Ukraine-Russia conflict.
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Kumar has led IndianOil’s marketing efforts across the country, ensuring uninterrupted petroleum supplies even during natural calamities and disruptions. Under his leadership, IndianOil has seen its highest ever physical performance in the last three years, with the company emerging as a leader in the sales of high-octane fuels, green lubricants, and clean energy solutions like E-mobility and bio-fuel blends. During his tenure, IndianOil also modernised its retail outlets and expanded its infrastructure, including new bottling plants and large retail outlets with wayside amenities on highways. The company has also focused on improving its brand equity, with IndianOil’s brand strength index rising to 3rd among top oil and gas companies worldwide in 2023.
Kumar, a Mechanical Engineer with a postgraduate degree in Management from the University of Ljubljana, Slovenia, has served in various regions across the country and has extensive experience in engaging with multinational oil companies. As Chairman, he is expected to lead IndianOil with a focus on continued growth and sustainability.
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ONGC Videsh inks new gas deal in Azerbaijan
Addendum amends the production sharing pact enabling the parties to go ahead with the exploration from the non-associated natural gas reservoirs of the ACG field
ONGC Videsh (OVL), along with the State Oil Company of Azerbaijan (SOCAR), bp, MOL, INPEX, Equinor, ExxonMobil, TPAO and ITOCHU, have signed an addendum to the existing production sharing agreement (PSA) for ACG field in the Azerbaijan sector of Caspian Sea.
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OVL, the overseas arm of state-run ONGC, had acquired the participating interest (PI) in the Azeri-Chirag-Deepwater Gunashli (ACG) project in 2013.
The addendum, or extension, amends the ACG PSA enabling the parties to go ahead with the exploration, appraisal, development and production from the non-associated natural gas (NAG) reservoirs of the ACG field, ONGC said.
This is effective till the end of the existing ACG PSA in 2049. The NAG resources of ACG are believed to be significant, with up to 4 trillion cubic feet (tcf) in place, it added.
The participating interests of the ACG co-venturers in the NAG project are the same as in the existing ACG PSA i.e., bp (30.37 per cent), SOCAR (25 per cent), MOL (9.57 per cent), INPEX (9.31 per cent), Equinor (7.27 per cent), ExxonMobil (6.79 per cent), TPAO (5.73 per cent), ITOCHU (3.65 per cent), ONGC Videsh (2.31 per cent).
Operator of ACG PSA
bp remains the operator of the ACG PSA. NAG reservoirs are multiple geological formations beneath and above the currently producing oil reservoirs, and were not initially included in the existing ACG PSA.
In 2022, ACG co-venturers and SOCAR agreed to drill a data well into the NAG reservoirs to collect gas pressure data. The data well was completed in 2023, and the interpretation of the acquired data confirmed the presence of natural gas resources within the expected pressure range.
In accordance with the addendum, SOCAR and ACG co-venturers are now planning the next steps for the development of NAG reservoirs. As part of this, an initial well is planned to be drilled to produce gas from two priority reservoirs with the first gas production is expected in 2025.
OVL has 32 oil and gas assets spread across 15 countries. Its production of oil and oil equivalent gas (O+OEG) during FY24 was 10.518 Mtoe (million tonnes of oil equivalent) and is currently producing about 200,000 barrels of O+OEG per day.
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OIL and IGGL sign hook-up agreement
New Delhi: Oil India Limited (OIL) and Indra Dhanus Gas Grid Limited (IGGL) signed the hook-up agreements for connecting OIL’s natural gas fields of upper Assam with the Duliajan Feeder Line of the North-East Gas Grid and also for evacuation of natural gas to be produced from OIL’s DSF block in Tripura through IGGL’s 12” NB x 86 km Agartala- Tulamura natural gas pipeline.
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This agreement marks a step forward in OIL’s shared vision of enhancing the energy infrastructure in North-East region and also OIL’s commitment towards a gas based economy for the nation.
The hook-up agreement was signed in a function organised at the field headquarters of OIL Duliajan in presence of OIL CMD Dr Ranjit Rath all the functional Directors of OIL and senior officials of OIL and IGGL on August 31. On behalf of OIL Anfor Ali Haque, Resident Chief Executive, OIL, Duliajan and Dr Ajit Kumar Thakur, CEO, IGGL have formally signed the agreements.
https://psuwatch.com/newsupdates/oil-and-iggl-sign-hook-up-agreement
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Satish Vadugiri named interim chairmen for IOC, Rajneesh Narang for HPCL
With government headhunter PESB not finding anyone suitable, three-member search-cum-selection committees are looking for heads at both IOC and HPCL. The government on Wednesday named interim chairmen for top oil firms, Indian Oil Corporation (IOC) and Hindustan Petroleum Corporation Ltd (HPCL), as appointment of full-time heads is work in progress.
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Satish Kumar Vaduguri, Director (Marketing), IOC has been appointed interim chairman of the company for three months starting September 1, an oil ministry order said.
He replaces Shrikant Madhav Vaidya who completes his extended term at month-end.
In a separate order, the ministry appointed Rajneesh Narang, Director (Finance), HPCL as the chairman and managing director of the company for three-month period starting September 1.
He would replace Pushp Kumar Joshi who superannuates on completion of 60 years of age on August 31.
With government headhunter PESB not finding anyone suitable, three-member search-cum-selection committees are looking for heads at both IOC and HPCL.
On August 11, the panel interviewed nearly a dozen candidates and is learnt to have zeroed in on Sandeep Gupta, who previously was Director (Finance) at IOC and is now Chairman and Managing Director of GAIL.
His name is now being vetted by the Appointments Committee of the Cabinet.
Vaidya, who took over as the chairman of India’s biggest oil company on July 1, 2020, was to retire on August 31, 2023, when he attained the superannuation age of 60 years. But he was, in a rare move, “re-employment on a contract basis” for one year “beyond the date of his superannuation i.e with effect from September 1, 2023, till August 31, 2024,” according to an official order dated August 4, 2023.
Thereafter, a three-member search-cum-selection committee was constituted to find who will head IOC after August 31, 2024. The panel is headed by the government headhunter Public Enterprises Selection Board (PESB) chairperson and includes the oil secretary and former HPCL chairman M K Surana as members.
Prior to Vaidya, no chairman of a Maharatna PSU was given an extension beyond 60 years in recent years.
In case of HPCL, the panel has just invited applications for the post.
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SM Vaidya steps down as Indian Oil Corp’s chairman as tenure ends
“A chemical engineer with over 37 years of experience, Vaidya has been a pivotal force in steering IndianOil to unprecedented heights,” the company said in a statement. Since taking over the reins in July 2020, Vaidya led IOC through a period of extraordinary growth. Under his leadership, the company’s net profit surged from Rs 1,313 crore in FY20 to an all-time high of Rs 39,619 crore in FY24.
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Revenue from operations also saw a significant growth, rising by 53 per cent from Rs 5,66,354 crore to Rs 8,66,345 crore during the same period. Additionally, IOC’s market capitalisation tripled, reaching its highest levels ever in February 2024.
His tenure was marked by his commitment to innovation, sustainability, and operational excellence.
He championed the development of specialised fuels such as ‘STORM’ & ‘STORM-X’, the ultimate racing fuels; India’s first 100-octane fuel, XP100; and eco-friendly fuels like XtraGreen & IndiGreen.
Further, he strengthened IOC’s core business by enhancing refining and petrochemical capabilities, ensuring the company remained at the forefront of the energy sector.
Under his leadership, IOC launched Asia’s first 2G ethanol plant, the world’s first 3G ethanol plant, and the ‘Unbottled’ initiative, which repurposes PET bottles.
“Vaidya leaves behind an ambitious vision for IndianOil that involves the company attaining USD 1 trillion in revenue by 2047, achieving Net-Zero Operations by 2046, and contributing 12.5 per cent to India’s energy needs by 2050. His exemplary leadership has set the stage for IndianOil’s continued growth and its pivotal role in India’s energy transition,” the statement added.
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GAIL’s petrochemical revenue surges 58% to Rs. 7,753 crore in FY24
GAIL (India) Limited is solidifying its position as a key player in the Indian petrochemical industry by establishing a diverse range of product offerings. “GAIL’s 500 KTA PDHPP Project at Usar, 60 KTA Poly-propylene plant at Pata, 1,250 KTA PTA plant at GMPL, Mangaluru and 50 KTA Isopropyl Alcohol (IPA) Project at Usar will diversify and expand GAIL’s existing petrochemical portfolio and provide robust growth in years to come. GAIL is also exploring the feasibility of setting up a world scale greenfield ethane cracker,” Sandeep Kumar Gupta, Chairman & Managing Director, GAIL (India) said while addressing shareholders at the 40th AGM of the company.
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Gupta also said that GAIL’s petrochemical business has started indicating a positive turnaround. During FY 2024, GAIL’s overall production of petrochemicals surged by 76% to 777 TMT, compared to 442 TMT in FY 2023 and sales of petrochemicals increased by 97% to 787 TMT, compared to 399 TMT in the FY 2023. Revenue from Operations from this segment rose by 58% to Rs. 7,753 crore, compared to Rs. 4,917 crore in FY 2023.
GAIL has been actively involved in exploring ways to integrate sustainable business practices while minimizing energy usage. “With that in mind, your Board has sanctioned the laying of C2/C3 liquid pipeline, which will directly transport these hydrocarbons extracted at Vijaipur to Pata, having an estimated Project Cost of Rs. 1,792 crore with a commissioning period of 32 months,” he added.
GAIL (India) Limited’s financial performance in FY 24 was indeed stellar. The company reported Profit before Tax (PBT) of Rs. 11,555 crore in FY 24, up by 75 % from Rs. 6,584 crore in FY 23. Profit after Tax (PAT) in FY 24 stood at Rs. 8,836 crore as against Rs. 5,302 crore in FY 23, an increase of 67 %, while Revenue from Operations stood at Rs. 1,30,638 crore in FY 24 as against Rs, 1,44,302 crore in FY 23. During the year your Company also achieved the highest ever capex of Rs. 11,426 crore. The market capitalisation of your Company reached Rs. 1,61,944 crore, @ Rs. 246.30 per shares on NSE as on 31st July 24.
On the physical front, with an existing network of 16,271 km of natural gas pipelines, GAIL has been at the forefront of laying Natural Gas Pipelines and is actively working on laying approximately 3,400 km of new natural gas pipelines across the country. Persistent efforts have been made towards completing the National Gas Grid (NGG), which is essential for India’s energy security and achieving a gas-based economy. GAIL has maintained nearly 100 % availability of its pipeline network while ensuring gas supply to customers nationwide.
As a leading natural gas player, GAIL recognises the importance of ensuring supply security. In this direction, GAIL has signed two 10-year LNG supply agreements, starting in 2026: 1 MMTPA from Vitol Asia Pte Ltd, Singapore and 0.5 MMTPA from ADNOC Gas, UAE. Additionally, GAIL’s volume of 4.5 MMTPA is now renewed under LNG SPA signed between Qatar Energy LNG and PLL, with supplies commencing in 2028 for a period of 20 years.
GAIL has also successfully on-boarded and chartered the long-term LNG vessel, GAIL Urja, and has entered into a 14-year Time Charter Party agreement for a newly built LNG carrier. The time charter for this LNG carrier will begin in early 2025. GAIL’s fleet of five LNG carriers will enable the Company to meet the requirement of transporting contracted LNG volumes to India.
GAIL R&D has awarded 4 numbers of new projects in the thrust areas of pipeline integrity management, catalyst development for SNG, PEM water electrolysers & fuel cells. “I am glad to share that GAIL has also been granted 12 numbers of Indian patents taking the total to 31 Indian Patents. Going forward, your Company has decided to set up its own R&D centre and progress in this regard is being made as per laid roadmap,” Gupta said.
Besides the Talcher Fertiliser Project going on, your Company is also working on feasibility of another coal gasification project in a Joint Venture with Coal India Ltd. to produce Synthetic Natural Gas. Both the Companies have signed Joint Venture Agreement on 05.08.2024 for setting up of the Project at Eastern Coal Field (ECL), Bardhaman, West Bengal.
GAIL is conscious of the fact that future business growth entails sustainable business practices and decarbonization measures. The company is well-positioned to become a leader in the energy transition and GAIL’s Board has approved the advancement of the Net Zero target by five years from earlier 2040 to 2035, to achieve 100% reduction in Scope 1& Scope 2 emissions along with the revised roadmap to achieve the same.
Advancing its endeavours to reduce its carbon footprint, GAIL has installed the country’s first MW scale Green Hydrogen electrolyser in Vijaipur, Madhya Pradesh. The 10 MW electrolyser has a capacity of producing 4.3 TPD of Hydrogen through electrolysis using renewable power.
GAIL is also working on setting up of 500 Kilo Litres per day 1G ethanol plant and collaborating with industry leaders in the field of CO2 valorization to reduce the carbon footprint at its installations. Additionally, the feasibility of building/ expanding natural gas and LPG pipelines is also underway.
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IGL aims to be a leader in LNG, with 100 stations by FY30: MD Chatiwal
The state-run Indraprastha Gas Limited (IGL) will set up 100 liquified natural gas (LNG) stations by FY30 and strengthen efforts to establish compressed natural gas (CNG) to LNG conversion plants for servicing difficult terrains, Managing Director Kamal Kishore Chatiwal tells Subhayan Chakraborty & Shreya Jai in an interview at the Delhi headquarters. Edited excerpts:
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We want to be a leader in the LNG space. We are targeting to set up 6-7 LNG dispensing stations nationwide in the current financial year, and our long-term vision is to have 100 LNG stations by FY30. We have already commissioned the first LNG dispensing station in Ajmer. There is demand in Delhi. As part of our partnership with a leading public sector company, IGL is building a captive unit at its Noida depot. It wants to decarbonise its trucks, which will ply as soon as the facility is commissioned.
What is the status of your LNG to CNG conversion plants?
We believe there is a synergy between CNG and LNG. For the conversion plants, we have brought out an expression of interest. We now have 500 CNG stations in Delhi. For instance, a station making 20,000 kg of CNG sales per day has seen sales come down to 10,000 kg. This presents a potential for us to use the compression capacity in that station. We can liquefy a high-pressure gas. We already have a highly compressed gas, so our capex goes down.
In hilly areas, pipelines are uneconomical in terms of cost and have safety issues. So, we plan to deliver gas via pipeline to a CNG compression facility, liquify it, and take the LNG to hills, inaccessible or sparsely populated areas. Right now, it costs Rs 14-15 crore to set up a conversion unit, as opposed to the hundreds of crores it takes to lay down pipelines.
What about compressed biogas plants?
We have targeted to construct 15 CBG plants in this financial year, but work will be completed on a minimum of 10 plants. It takes 6-7 months for construction. We are hopeful of producing biomethane from the biogas projects, going forward. A country as small as Germany is producing 8 million tonnes, whereas India is importing 23-24 million tonnes. Since biowaste production is related to population, India has the potential to generate 8-10 times more biomethane. But the biomethane has to be integrated with CGD, and not as a transport fuel. As a transport fuel, where it will just be an intermittent option.
Can you give us a timeline for biomethane production?
The agencies involved are looking at short-term targets. We need land, segregation of waste, and sewage plants. Everybody, including households, has to contribute towards this. In Delhi, we are setting up 2-3 smaller projects. We are in discussions with the Municipal Corporation of Delhi to take care of the Bhalswa landfill in North Delhi, which is emitting huge amounts of biomethane into the atmosphere. The MCD has asked to know how much per square metre intensity can be achieved in terms of waste removal. We are in discussions with some technology suppliers. The investment will be made by a joint venture entity, set up with the technology provider. The Delhi government will give us the land. We will guarantee them the offtake based on existing government policies.
What is the investment outlook for this?
Delhi generates 15,000 tonnes of waste daily. We are looking at treating about 20 per cent of that or 2,000-3,000 tonnes. Normally, 100 tonnes of waste require Rs 50 crore of investment. Once the scale goes up, and capex efficiency comes in, the investment reduces. So, for a 1000-2000-tonne plant, an investment of Rs 300-350 crore may be required. Capex is not a constraint because it has a life of 25 years. The cost per standard cubic meter of gas generated is very limited. What matters is the consistency in operation and the product quality, the lack of which can damage the infrastructure. The gas imported from Qatar, and the US, is almost pure methane, with very few impurities. Our focus is on bringing that quality to biomethane.
What can be done to hedge against global gas price volatility?
From an Indian perspective, we need strategic gas storage, which all developed countries have. India is blessed with onshore gas fields which are depleted and can be used for storage. In times of increased volatility in global prices, these can come into play. A policy push with capex support for strategic storage of 20-30 billion cubic meters (bcm) of natural gas is required from the government. Given an option, IGL would also book some capacity there. No one wants to be exposed to price volatility. During the Covid pandemic, global prices were at $1-2 per mmBtu. If we had storage, it could have been filed up. Prices shot up to $50 per mmBBtu when the Ukraine war began.
What are your plans for green hydrogen?
Hydrogen remains in a nascent stage. There is no commercially proven business model and prices are still very high. It is still 2-3 times the normal energy cost. If India needs to grow at 8 or 10 per cent for the next 10-15 years, we need cheap energy. It is possible to blend hydrogen in natural gas up to 1-2 per cent. I’m not sure whether it will make a big difference or not.
How significant a threat are EVs to your CNG business?
Electric vehicles will increase in percentage terms, but not in a dramatic manner, whereby they reach 50-60 per cent. EVs will continue to grow but won’t replace all vehicles and threaten the other players with extinction.
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Policy Matters/ Gas Pricing/ Others
Gas Prices Reduced in Jamshedpur, Benefiting 4,100 PNG Users
GAIL lowers piped gas prices by ₹2 per SCM in Jamshedpur, benefiting 4,100 households starting September 1, 2024.
JAMSHEDPUR – GAIL (India) Limited has reduced the price of piped natural gas (PNG) in Jamshedpur by ₹2 per standard cubic meter (SCM), effective from September 1, 2024. This price cut lowers the cost from ₹55.56 to ₹53.56 per SCM and is expected to benefit around 4,100 consumers in the city.
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The reduction is part of GAIL’s strategy to promote the usage of PNG among households, making it a more affordable and eco-friendly option for residents.
GAIL’s General Manager, Gauri Shankar Mishra, stated, “This price reduction is aimed at increasing the adoption of PNG in homes across Jamshedpur.”
Expansion of PNG Services in Jamshedpur
Currently, PNG services have been extended to 126 apartment complexes in areas like Kadma, Sonari Ramnagar, and several Tata Steel colonies.
GAIL is encouraging residents in these areas to switch to the safer and more convenient postpaid PNG service.
To facilitate this, GAIL’s team conducts registration camps every Sunday in various societies.
Residents can also register at GAIL’s Bistupur office, through the PNG Mitra app, or by contacting customer care at 1800123121111 or the control room at 8987670901.
Infrastructure Growth and Future Plans
GAIL has connected over 15,000 flats in 126 societies to the PNG network.
The company is actively working to expand this network, with a target of providing connections to 10,000 additional homes by December 2024.
In addition to household connections, Jamshedpur hosts 14 CNG stations, supplying over 12,000 kilograms of gas daily to more than 6,000 vehicles.
GAIL has also extended gas supplies to 14 hotels in the city and is rapidly expanding the network to serve industries like Tata Steel and Tata Motors.
Lok Adalat for PNG Customers
To address customer concerns, GAIL is organizing a Lok Adalat on September 28 at the district court premises.
This event will provide a platform for resolving billing issues and other customer grievances.
Customers can also settle outstanding bills during this session.
https://townpost.in/2024/09/01/gas-prices-reduced-in-jamshedpur-benefiting-4100-png-users/
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India and Brazil strengthen energy ties with focus on oil, gas & biofuels
New Delhi: In a bid to deepen bilateral cooperation in the energy sector, India and Brazil reaffirmed their commitment to enhancing Indian investments in Brazil’s oil and gas industry, the Government of India confirmed on Saturday.
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This was highlighted during the official visit of India’s Minister of Petroleum and Natural Gas, Hardeep Singh Puri, to Brazil from September 19 to 21, where he was hosted by Brazil’s Minister of Mines and Energy, Alexandre Silveira.
Accompanied by representatives from Indian oil and gas companies, Puri’s visit focused on strengthening ties across both upstream and downstream sectors. The discussions aimed at expanding the presence of Indian companies in Brazil through new investment opportunities in producing assets, cementing Brazil’s status as one of the largest global destinations for Indian energy investments.
Both sides also explored innovative mechanisms to enhance bilateral trade in the energy sector. As founding members of the Global Biofuels Alliance, India and Brazil reiterated the pivotal role of biofuels in the global energy transition, emphasizing their potential to drive environmental sustainability and foster socioeconomic growth. India commended Brazil for its leadership role as the G20 host, particularly for its focus on sustainable fuels and the energy transition.
During the visit, the two countries also agreed to co-host the India-Brazil Clean Cooking Ministerial Meeting during India Energy Week 2025. The event will provide a platform to explore global solutions for clean cooking, aiming to improve access to clean energy.
Discussions further touched on deep and ultra-deep offshore explorations in Indian waters, as well as potential collaboration in critical minerals and their value chains. Recognizing their shared status as major biofuel producers, India and Brazil discussed the prospects of collaboration in the development and production of Sustainable Aviation Fuels (SAF). Despite SAF currently accounting for only 0.3 per cent of aviation fuel use, it remains a key component in decarbonizing the aviation sector. However, both nations acknowledged the significant challenges to large-scale SAF production, including feedstock availability, high costs, and the need for infrastructure improvements. They also emphasized the importance of setting consistent international standards and maintaining technological neutrality in SAF development.
India and Brazil underscored the strategic importance of their partnership in advancing the SAF sector. Plans include collaborating on ethanol production, sharing technology, and conducting joint research to optimize SAF production. They also intend to exchange regulatory experiences, encourage investment, and promote SAF development in multilateral forums, including the International Civil Aviation Organization (ICAO).
This collaboration aligns with both countries’ sustainable development and carbon reduction goals. By pooling resources and expertise, India and Brazil aim to lead the global transition to lower-emission aviation, tackling environmental challenges while fostering economic and technological growth in the biofuels sector. The partnership is expected to create jobs, particularly in rural areas, reduce reliance on energy imports, and contribute to global efforts to lower the carbon footprint of aviation.
Puri and Silveira emphasized that this strengthened partnership marks a significant milestone in India-Brazil relations, positioning the two nations as key players in the global drive towards a cleaner aviation future.
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India’s biggest oil, gas bid round gets 4 bidders
New Delhi: India’s largest oil and gas bid round under the Open Acreage Licensing Policy (OALP) saw participation from four bidders, including state-owned giants Oil and Natural Gas Corporation (ONGC) and Oil India Ltd (OIL), as well as private sector players Vedanta Ltd and Sun Petrochemicals Ltd. According to the Directorate General of Hydrocarbons (DGH), the majority of the 28 blocks offered under the OALP-IX round received only two bids, highlighting a concentrated competition within the sector.
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For the first time, Reliance Industries Ltd-bp plc combined joined hands with ONGC to bid for a block in the Gujarat-Saurashtra basin, a shallow-water area. This marks a significant development, as Reliance and bp had previously participated in only two of the eight bid rounds since the OALP began in 2017. In those rounds, they bid and secured two blocks on their own. Their collaboration with ONGC in this round reflects a strategic shift as the consortium sought to tap into new exploration areas.
ONGC, the country’s largest oil and gas producer, placed bids for 14 blocks independently and teamed up with OIL and Indian Oil Corporation (IOC) for four additional blocks. Including its joint bid with Reliance-bp, ONGC has a presence in 19 out of the 28 blocks offered.
Meanwhile, mining tycoon Anil Agarwal’s Vedanta Ltd submitted bids for all 28 blocks, continuing its dominant participation in India’s oil and gas exploration auctions. Sun Petrochemicals Ltd, another private player, bid for seven blocks.
Of the 28 blocks up for grabs, four blocks received three bids each, while the remainder had just two bidders. Vedanta was a common contender in every bid.
The blocks are awarded to firms that offer the highest share of revenues generated from oil and gas production and commit to the most comprehensive work programmes.
The blocks on offer spanned a total area of 136,596.45 square kilometres across nine onshore blocks, eight shallow-water blocks, and 11 ultra-deepwater blocks, located across eight sedimentary basins.
The OALP was introduced in 2017 as part of the government’s push to attract investments in India’s upstream oil and gas sector. The policy offers significant incentives to exploration and production firms, including marketing and pricing freedom and a revenue-sharing model, along with reduced royalty rates for operators. To date, 144 blocks covering 242,055 square kilometres have been awarded in the eight previous rounds of the OALP.
In the preceding OALP-VIII round, ONGC had secured seven out of the ten blocks on offer, while the Reliance-bp consortium, OIL, and Sun Petrochemicals secured one block each.
The partnership between Reliance and bp has lasted over a decade, with the companies jointly operating the KG-D6 block in the Krishna Godavari basin. The deep-water block currently produces around 30 million standard cubic metres of gas per day.
India, which imports a significant portion of its oil needs, is keen on ramping up domestic production to reduce its annual $222 billion oil import bill.
https://www.millenniumpost.in/big-stories/indias-biggest-oil-gas-bid-round-gets-4-bidders-580766
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No better place than India to innovate and invest in renewable energy: PM
Gandhinagar: Prime Minister Narendra Modi on Monday said India‘s leap in the renewable energy segment offers tremendous opportunities for investors not only in energy generation but also in the manufacturing sector. “India is striving for complete made in India solutions and creating many possibilities. It is truly a guarantee of expansion and better returns,” Modi said at Global Renewable Energy Investors Meet and Expo organised by the ministry of new and renewable energy and CII.
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India’s renewable energy demand is rising and the government is making new policies to support it, he said. Efforts are being made for ‘Make in India‘ in the sector and the growth in the segment presents a good opportunity for the same, he said.
“There is no better place than India in the renewable energy sector for investment and innovation,” the prime minister said. He underlined that as a developing economy, India had a valid excuse to stay out of these commitments but did not choose that path.
“Today’s India is preparing a base not only for today but for the next thousand years,” he said.
Modi underscored that India’s aim was not just to reach the top, but to prepare ourselves to sustain at the top. He added that India was very well aware of its energy needs and requirements to make it a developed nation by 2047.
The country will build its future on the basis of renewable energy sources like solar, wind, nuclear and hydro, as there was dearth of reserves of oil and gas.
https://economictimes.indiatimes.com/industry/renewables/no-better-place-than-india-to-innovate-and-invest-in-renewable-energy-pm/articleshow/113403769.cms?from=mdr
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LNG Use / LNG Development and Shipping
ArcelorMittal’s India joint venture seeks duty-free LNG imports: Report
ArcelorMittal’s India joint venture has called on New Delhi to remove the import tax on liquefied natural gas (LNG) for steelmaking to help the company cut its production costs and meet decarbonisation goals, a letter seen by Reuters showed.
Steel production accounts for about 8 per cent of global carbon emissions. Replacing coal as a fuel source with LNG can remove some of them, but increases production costs.
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“To meet both domestic and international steel demands, we propose implementing a nil rate of duty on LNG imports for steel manufacturing,” ArcelorMittal Nippon Steel India (AM/NS India) said in a letter dated Sept. 2 to the federal finance ministry.
India, the world’s second biggest crude steel producer, levies a 2.5 per cent basic customs duty and an additional 0.25 per cent social welfare tax on LNG.
If the government concedes to AM/NS India’s requests, other steelmakers such as JSW Steel and Tata Steel would also benefit.
The federal finance ministry and AM/NS India did not reply to Reuters’ emails requesting comment.
In a report released this month, the ministry of steel noted that natural gas was “significantly expensive”.
India’s steel industry accounts for 10 per cent-12 per cent of its total emissions, with 2.54 metric tons of carbon dioxide generated for every ton of steel. This exceeds the global average of 1.91 metric tons for every ton of crude steel.
India, the world’s third biggest emitter of greenhouse gases, has pledged to achieve a net zero carbon emission target by 2070. New Delhi also aims to raise the share of natural gas in its energy mix to 15 per cent by 2030 from around 6 per cent now.
AM/NS India also urged the government to include natural gas in the Goods and Services Tax (GST) regime to make prices cheaper and more uniform across the country.
“This situation (LNG being out of the purview of GST) potentially drives end users to prefer imported products over costlier domestically sourced goods, thereby undermining the ‘Make in India’,” it said, referring to India’s ambitions plans to make it a global manufacturing hub.
By introducing GST, India replaced about 20 federal and state taxes to unify India’s around $3.2 trillion economy.
The GST Council, comprising state finance ministers and chaired by the federal finance minister, needs to approve and set tax rates for LNG.
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Rs.9.70 Bn Approved for Converting 5,000 MSRTC Buses to LNG
The Indian government has sanctioned ?9.70 billion for the conversion of 5,000 Maharashtra State Road Transport Corporation (MSRTC) buses to liquefied natural gas (LNG) engines. This significant investment aims to enhance the environmental sustainability and operational efficiency of the state’s public transport fleet.
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The transition from diesel to LNG is expected to reduce harmful emissions and lower operational costs, aligning with broader goals for cleaner public transportation and improved air quality. LNG, known for its lower carbon footprint compared to diesel, will help MSRTC cut down on greenhouse gas emissions and particulate matter, contributing to a healthier urban environment.
The funding will be used to retrofit existing buses with LNG engines and install necessary infrastructure for refuelling across MSRTC’s operational areas. This initiative is part of a larger push to modernise public transportation in Maharashtra and support the state’s climate action commitments.A
dditionally, the shift to LNG will likely result in cost savings for MSRTC due to the lower price of natural gas compared to diesel, offering financial relief in the long run. The project is expected to be rolled out in phases, with initial conversions focusing on high-traffic routes.Overall, the government’s approval underscores its commitment to advancing sustainable transportation solutions and improving the efficiency of public transit systems across India.
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Global LNG markets heading towards significant supply glut, India to benefit
New Delhi, Aug 28 (IANS) The global liquified natural gas (LNG) markets are now heading towards significant supply glut, which is set to benefit India as significant capacity addition amid expectation of modest demand growth in the global consumption will keep the LNG prices under check, a report said on Wednesday. Consumption in India is expected to grow by 6-8 per cent YoY in FY2025, supported by softer LNG prices and an uptick in the domestic gas production, according to the report by credit rating ICRA. Globally, about 193 million metric tonne (MMT) of the LNG production and liquefaction capacity is slated to be added over the course of the next four years.
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The report highlighted that after two volatile years in terms of natural gas supplies and pricing, the global LNG markets are now heading towards significant supply glut with large capacity additions planned from CY2024 to CY2028. “Global natural gas consumption is expected to witness modest growth, given the focus of the major natural gas consumers in regions of European Union, Japan and Korea towards other sources of energy,” said Girishkumar Kadam, SVP and Group Head, Corporate Ratings, ICRA. India thus stands to benefit in terms of availability of LNG at reasonable prices over the medium term, notwithstanding the near-term volatility amid geo-political tensions in West Asia, he mentioned. India’s gas consumption, after witnessing headwinds in FY2023 owing to the elevated LNG prices, recovered sharply to 187.9 mmscmd (million metric standard cubic meters per day) in FY2024 (17 per cent increase YoY) with easing of LNG prices.
In India, the growth is supported by the City Gas distribution (CGD) sector, followed by the refineries’ offtake, said the report. The increasing adoption of electric vehicles in the passenger vehicle and bus segments will remain key threats for the CNG offtake. Going forward, domestic gas production will witness marginal growth over the course of FY2025 and FY2026 with the ramp up of production from ONGC’s “KG-98/2 basin” in Q4 FY2025 and on-streaming of few stranded gas production fields. However, since domestic production is expected to start moderating from FY2028 onwards, the reliance on LNG would further rise as India looks to increase the share of natural gas in the energy mix, the report mentioned. –IANS
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Electric Mobility/ Hydrogen/Bio-Methane
Electric Mobility/ Hydrogen/ Bio- Methane India, US for giving push to sustainable aviation fuel, hydrogen in buses
The two countries highlighted the importance of modernising the power distribution sector to supply 24×7 reliable power to consumers, welcomed support for India’s smart metering deployment, as well as expanded efforts on inverter-based resources, power market reforms, system inertia estimation, and cybersecurity.
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NEW DELHI: India and the US have agreed to give impetus to sustainable aviation fuel, promote electrification of medium and heavy-duty vehicles and use of hydrogen in buses, tractors and heavy equipment, said a joint statement issued after the Strategic Clean Energy Partnership dialogue between the two nations. The two nations “welcomed increased investment in each country’s clean energy markets,” according to the statement issued after the Strategic Clean Energy Partnership (SCEP) Ministerial convened by US Energy Secretary Jennifer Granholm and Indian Minister of Petroleum and Natural Gas Hardeep Singh Puri in Washington DC on Monday.
“While recognising the need to work towards a just, orderly and sustainable energy transition, which prioritises access to reliable, affordable, and clean energy supplies, the (two) sides welcomed the important role that energy trade plays in supporting the national priorities of both countries,” the statement said.
The two countries highlighted the importance of modernising the power distribution sector to supply 24×7 reliable power to consumers, welcomed support for India’s smart metering deployment, as well as expanded efforts on inverter-based resources, power market reforms, system inertia estimation, and cybersecurity.
The ministers also commended the Indian Railways efforts to achieve net zero carbon emissions by 2030 and welcomed collaboration to support India’s first round-the-clock renewable energy procurement of over 1.5 GW and development of an energy efficiency policy and action plan for all railway facilities.
“The two countries agreed to give an impetus to sustainable aviation fuel,” the statement said.
Sustainable aviation fuel (SAF) is an alternative fuel made from non-petroleum feedstocks that reduces emissions from air transportation. It can be produced from non-petroleum-based renewable feedstocks, including the food and yard waste portion of municipal solid waste, woody biomass, fats/greases/oils, and other feedstocks. SAF can be blended in jet fuel to cut carbon dioxide emissions.
“In this context, the sides welcomed new engagement on sustainable aviation fuels (SAF) with an inaugural SAF workshop to support training on R&D, tax incentives, supply chain capacity building, market development, financing opportunities, fuel certification, regional and international coalition building, and facilitating commercial partnerships. The ministers also welcomed the development of two joint reports on SAF and biofuels under the Biofuels Task Force,” the statement said.
The two nations reiterated their commitment to enhancing energy efficiency and welcomed collaboration on super-efficient appliances to improve efficiency standards, boost the deployment and manufacturing of high-efficiency affordable cooling systems and promote supply chain diversification.
The ministers welcomed new collaboration on electrification of medium- and heavy-duty vehicles as well as the use of green hydrogen in buses, tractors and heavy equipment.
While the two ministers discussed carbon capture, utilisation and storage (CCUS), they noted progress under a workstream on methane abatement in the oil and gas sector.
“The ministers expressed satisfaction with the range of productive public-private sector dialogues that inform enabling policy and regulatory frameworks; help scale, deploy, and reduce costs of clean energy technologies; and facilitate investment and commercial partnerships,” it said.
They recognised that energy transitions require concerted action and implementation at the national and local levels to ensure viable, sustainable clean energy efforts and a just energy transition. To that end, the ministers welcomed capacity building and dissemination of best practices, across all levels of government.
The ministers recognised the progress the two countries have made to accelerate the development and deployment of emerging clean energy technologies, advancing renewable energy deployment and reliable grid integration, promoting energy efficiency, and advancing decarbonisation of high-emitting sectors like industry, buildings, and transport.
They welcomed the formal launch of the Renewable Energy Technology Action Platform (RETAP) in August 2023, aimed at developing actionable roadmaps for hydrogen, long-duration energy storage, offshore wind, and geothermal, through R&D, pilots and demonstration, and incubation-investment-industry networks. They also expressed satisfaction at the progress being made by both sides under the RETAP mechanism.
The two countries welcomed collaboration on the new National Centre for Hydrogen Safety in India and highlighted expanded bilateral expert exchanges on clean hydrogen R&D, cost reduction efforts, and implementation of hydrogen hubs in both countries through RETAP, the public-private Hydrogen Task Force.
The ministers stressed the importance of supporting large-scale grid integration of renewable energy while enabling flexible and reliable grid operations through energy storage.
They welcomed the formal launch of the public-private Energy Storage Task Force to address policy and regulatory frameworks, safety, manufacturing and supply chains, and innovative business models; focused RETAP efforts on long-duration energy storage and alternative chemistries to Li-ion technologies; efforts on the technical and economic feasibility of various storage technologies available for a renewable energy battery energy storage system (BESS) in Assam; and support for BESS bids and pilots in Haryana. The sides also recognised pumped storage as a long-term energy storage option.
“The ministers praised the breadth and depth of the US-India partnership to advance progress toward our common clean energy goals and address today’s unprecedented climate challenges. They noted that by leveraging the SCEP partnerships, the US and India can spur innovation and help build more secure, resilient, and diverse clean energy supply chains,” it added.
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Incentives, local support at state level can boost biogas sector; states can save Rs 50K cr, says industry
New Delhi: Additional financial assistance, easy access to finance and local support mechanisms are some of the measures that the state governments can take to promote the biogas sector which can help them save Rs 50,000 crore in various means, Indian Biogas Association (IBA) has suggested. Talking to PTI in an interview, IBA Chairman Gaurav Kedia said, “States can bolster central initiatives for the sector by offering additional financial incentives, facilitating easy access to credit, and providing local support mechanisms.”
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He stressed that involvement of state governments is critical to achieve the larger goal of self-reliance in energy.
State governments can save up to Rs 50,000 crore through the biogas sector, he said, adding that savings could be in the form of waste management and pollution reduction, biogas production and health improvements of population.
He cited the example of the Uttar Pradesh government, which offers an additional Rs 75 lakh per ton of production capacity (up to Rs 20 crore) on the top of central government subsidies for biogas projects.
Such efforts can accelerate the growth of the sector and encourage more widespread adoption of biogas technology, he explained.
He suggested that states can further enhance the sector by improving infrastructure around biogas plants.
For bio-energy enterprises investing Rs 50 crore or more, infrastructure like roads can be critical for ensuring smooth operations and reducing logistical costs, he pointed out.
He further stated that another area where state governments can contribute is in the allocation of underutilised land for biogas projects.
States could also explore integrating biogas facilities within existing agricultural operations, and industries generating organic waste streams, thereby streamlining the setup process and improving overall efficiency, he suggested.
Land is becoming an important commodity for any greenfield projects and state government can play an important role in the biogas industry.
There is a delay in almost 50 per cent of the plants due to the unavailability of land in various states, he noted.
State governments can also play a critical role in creating a sustainable supply chain for organic waste or biogas plant substrate, which is essential for the continuous operation of biogas plants, he suggested.
More than 80 per cent of the operational biogas plants are unable to run at full capacity due to the unavailability of raw materials, he pointed.
Collaboration with local agricultural and municipal sectors to establish a reliable feedstock supply from agricultural residues and food waste would enhance the sector’s efficiency, he suggested.
Promoting the collection of biodegradable waste through state-level initiatives would also contribute to effective waste management, reducing the burden on landfills and mitigating environmental pollution, he stated.
“If implemented effectively, state-driven support for biogas projects could result in significant economic and environmental benefits. Achieving just 10 per cent of the SATAT target through these incentives could lead to savings of up to Rs 50,000 crore in areas such as waste management, biogas production, health improvements, and pollution reduction, ” he said.
The biogas sector in India has witnessed significant momentum due to the central government”s proactive policies and incentives.
Central financial assistance from the Ministry of New and Renewable Energy, buy-back possibility under the Sustainable Alternative Towards Affordable Transportation (SATAT) scheme by Oil Marketing Companies (OMCs), and incentives for the production of Fermented Organic Manure (FOM) are among the measures introduced to accelerate the adoption of biogas technology across the country.
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INTERNATIONAL NEWS
Natural Gas / Transnational Pipelines/ Others
Brazil: Brazil opens new gas complex to boost domestic supplies by around 50%
Officially opened on Friday in Rio de Janeiro state, Petrobras’ Boaventura energy complex – formerly Gaslub and previously Comperj – will make it possible to transport up to 18Mm3/d (million cubic meters a day) and process up to 21Mm3/d of natural gas. riginating from pre-salt offshore fields, the gas will arrive via the Rota 3 pipeline and will be processed at what is now Brazil’s largest gas processing unit.
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By comparison, Brazil’s gas supply in April was 40.8Mm3/d, according to the most recent data from the federal government, so Rota 3 will be able to increase the availability of gas by approximately 50%.
Brazil’s total natural gas production stands at about 140Mm3/d but most of it is reinjected to recover more oil from offshore fields.
Today, at least two other offshore projects are planned to add significant gas volumes: Petrobras’ Sergipe deepwater (SEAP, with 18Mm3/d) and Equinor’s Raia (formerly Pão de Açúcar/ 16Mm3/d).
THERMAL POWER AND REFINING
In addition to the gas pipeline and processing unit, the federal oil company is working on other projects at the Boaventura complex, including two gas-fired power plants to take part in planned auctions and refining units to produce fuels and lubricants.
Building a dedicated biofuel plant is also being studied, which would produce 100% renewable diesel and aviation kerosene. Another important front for the complex will be carbon capture, connecting it to the CCUS hub pilot project in Rio de Janeiro.
“The Boaventura energy complex is an important step by Petrobras towards its mission of expanding the supply of gas to the domestic market and minimizing our imports of LPG and diesel,” said Petrobras CEO Magda Chambriard during the opening ceremony.
President Luiz Inácio Lula da Silva stressed during the event that he wants to transform Petrobras into the largest energy company in Latin America.
“That’s a dream, and I like to dream. Because the day oil runs out, Petrobras will be the biggest biofuel producer, the biggest ethanol producer in this country, the biggest green hydrogen producer in this country. Petrobras is more than an oil industry, it is an energy industry and it will produce whatever is necessary,” he said.
INVESTMENTS
Petrobras plans to invest approximately 20bn reais (US$3.6bn) in the refining sector in Rio de Janeiro state over the next few years.
At the Boaventura energy complex, 13bn reais will be invested in plants to produce lubricants, diesel and aviation kerosene. Another 7bn reais will be invested in improvements at the Duque de Caxias refinery (Reduc).
Once the work on the entire Boaventura complex has been completed, the complex will have capacity to produce around 12,000b/d of group II lubricating oils, 75,000b/d of S-10 diesel and 20,000b/d of aviation kerosene, Petrobras said in a release.
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US: Wood to design the DeLa Express natural gas pipeline project in Texas and Louisiana
Wood, a global leader in consulting and engineering, has been awarded the front-end engineering design (FEED) for a long-haul, large diameter liquids-rich natural gas pipeline project in the United States.The DeLa Express pipeline project being developed by DeLa Express LLC, a subsidiary of Moss Lake Partners LP (Moss Lake Partners), is proposed to deliver liquids-rich natural gas from the Permian Basin of West Texas to the U.S. Gulf Coast and international export markets.
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Once complete, the project will act as a highway to supply the growing demand for natural gas and liquids, safely shipping critical energy to the largest demand markets, including the largest liquified natural gas (LNG) demand center in North America – Cameron Parish, Louisiana near the Sabine River Corridor.
The project is being designed for approximately two plus (2.0+) billion cubic feet per day (BCF/d) of natural gas and liquids transportation capacity, enough to supply the daily equivalent demand of the city of Chicago, Illinois
.By aiming to provide much needed natural gas and liquids takeaway capacity, the project will reduce flaring and emissions in the Permian, and by transporting natural gas and liquids in a single mainline, it will minimise the need for right-of-way clearing and have a significantly lower environmental impact.
Jeremy Hall, Senior Vice President of Oil, Gas and New Energies Americas for Wood, said: “As demand for natural gas increases, the project will provide a transformational answer to the strained existing pipeline capacity from the Permian Basin.“Wood recently completed the design of several long-haul pipeline systems in the United States and has a strong track record of delivering engineering for complex natural gas pipeline systems as well as managing the FERC permitting process. Our team is delighted to work with DeLa Express and Moss Lake Partners on this flagship project that will help to provide increased energy security in the United States and around the world.”Under the contract, Wood will design approximately 645 miles of 42-inch diameter mainline pipeline and approximately 139 miles of associated laterals. The team will also manage the compressor station subcontractor, Burrow Global, LLC.Eric J.
Carmichael, Senior Vice President, EPC Projects for Moss Lake Partners, commented: “Given the remarkable interest from Permian producers, global consumers and private capital markets, Wood is the natural choice to spearhead one of our premiere infrastructure development projects.“Wood’s industry expertise, seamlessly woven with our strategic vision, heralds an exhilarating future for U.S. energy infrastructure and Moss Lake Partners.”
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Mexico: Brugg corrugated LNG pipelines start service in the Gulf of Mexico
The flexible pipelines, each 220 m long and weighing 42 tons including the drum, were developed to the client’s specifications and certified according to the EN 1474-2 guideline for the safe transfer of liquefied natural gas.
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They are now in service transporting production between the LNG production platform and floating storage units. Using the stainless steel corrugated pipes, the liquid gas produced is transported from three offshore drilling units to the ship and from there to the rest of the world.
Brugg’s vacuum-insulated pipe systems, manufactured in Germany, feature pressure sensors in the vacuum chamber to enable early detection of pressure drop.
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Indonesia: King of the Kutei basin: Eni considers third offshore production hub in Indonesia
Italian energy giant Eni is already considering a third production hub in the Kutei basin offshore East Kalimantan, Indonesia, where it has identified exploration prospects with unrisked reserves potential of 30 trillion cubic feet of gas.
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This possible future hub could feature an even larger capacity floating production unit (FPU) than the one currently out to tender to exploit the operator’s Geng North giant gas discovery and other fields in the north of the basin. This North Kutei FPU has touted nameplate capacity of around 1.2 billion cubic feet per day of gas plus significant amounts of liquids.
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Egypt: Egypt, which has alarmed Europe, promises to restore gas production
Egypt plans to resume gas production next summer, Prime Minister Mustafa Madbouly said. Earlier, the country banned exports and began to reserve LNG itself, which became one of the reasons for high gas prices in Europe.
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Head of the Egyptian government Mustafa Madbouly He said that gas production in the country will be restored in the summer of 2025 and the government will settle the debt with mining companies.
Sources told Reuters in March that the government had allocated up to $1.5 billion to pay foreign oil and gas companies operating in the country.
“The debt arose during a long foreign exchange shortage that has since eased.” – the agency reports.
The production decline coincided with the heat, which required even larger volumes of gas. As a result, Egypt not only halted exports but also began booking LNG to avoid power outages.
“Egypt is seeking to buy 20 cargoes of liquefied natural gas from October, and for the first time in many years, before winter. This has traders concerned about the balance of the market in Europe, as increased demand in other countries could lead to less fuel reaching their shores.” — reported Bloomberg.
The Egyptian prime minister also promised that there would be no more power cuts in the country. He said that Cairo has allocated 2.5 billion dollars for this purpose. The authorities also plan to put the first stage of the line between Egypt and Saudi Arabia into operation by the summer of 2025.
https://topbuzztimes.com/egypt-which-has-alarmed-europe-promises-to-restore-gas-production/
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Natural Gas / LNG Utilization
Norway: Höegh LNG Rebrands as Höegh Evi
Marine energy infrastructure solutions company Höegh LNG announced it has rebranded as Höegh Evi in a move that reflects its expansion beyond liquefied natural gas (LNG) vessels and terminals. Standing for “energy vector infrastructure,” the name Evi encompass a wider range of clean energy solutions, including floating infrastructure for ammonia and hydrogen, as well as carbon transport and storage (CCS), in addition to LNG.
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“In a world of rapid change and evolving energy demands, customers need a partner to help them balance today’s energy security needs with tomorrow’s clean energy ambitions. Höegh Evi will continue to be a leading provider of floating LNG infrastructure while we are also applying our skills and experience to bring marine infrastructure for clean molecules into operation by the end of this decade,” said Erik Nyheim, President & CEO of Höegh Evi.
Höegh Evi said it will maintain its market presence in LNG with one of the world’s largest fleets of loating storage and regasification units (FSRU) and LNG carriers. The company is also developing marine infrastructure including floating ammonia and H2 import terminals, ammonia cracking technology and CCS.
Morten W. Høegh, Chairman of the Board of Directors at Höegh Evi, said, “The name Höegh Evi continues to speak to our heritage and our strong reputation within the LNG industry, while capturing the expansion of our focus in response to new demands and the energy transition. Together, the Höegh Evi team both at sea and onshore is very excited to develop clean and efficient solutions to the benefit of people and planet in the future.”
https://www.marinelink.com/news/hegh-lng-rebrands-hegh-evi-517084
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Nigeria: Nigerian Railway Corporation gets LNG-retrofitted locomotive under public-private partnership
The Federal Government on Thursday took delivery of a retrofitted Nigerian Railway Corporation (NRC) locomotive, designed to run on a dual-fuel system of 70% Liquefied Natural Gas (LNG) and 30% diesel, following a Public-Private Partnership with the De-Sadel Consortium.
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The retrofit is expected to drastically reduce operating costs, in line with a presidential directive for ministries and agencies to transition from diesel to more economical and sustainable fuels like LNG and Compressed Natural Gas (CNG).
Minister of Transportation, Sen. Saidu Alkali, made the announcement during the final test run of the LNG-powered locomotive at the Idu Train Terminal in the Federal Capital Territory.
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Japan: Chevron and MOL to launch world’s first wind-assisted LNG carrier
In a new move towards reducing carbon emissions in maritime transport, Chevron Shipping Company LLC and Mitsui O.S.K. Lines, Ltd. (MOL) have announced plans to install the Wind Challenger system on a new LNG carrier. This collaboration marks a significant milestone as it will be the world’s first LNG carrier equipped with a wind-assisted ship propulsion system. The 174,000 cubic metre capacity vessel is currently under construction at the Geoje Shipyard of Hanwha Ocean Co., Ltd. and is scheduled for delivery in 2026.
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The Wind Challenger system, developed jointly by MOL and Oshima Shipbuilding, utilises unique telescopic sails to reduce fuel consumption and greenhouse gas emissions.
Innovative Design: The Wind Challenger system employs hard sails made of glass fibre-reinforced plastic to reduce weight and maximise wind propulsion.
Safety Measures: Additional safety features include a fully enclosed navigation bridge and a lookout station on the vessel’s foredeck.
Minimal Impact: The installation is designed to minimise impact on existing LNG carrier structures and maintain ship-shore compatibility.
Barbara Pickering, President of Chevron Shipping Company, emphasised the importance of this initiative, stating: “This is another example of using novel approaches in hard-to-abate sectors to reduce carbon intensity in our LNG fleet.”
Takeshi Hashimoto, President and CEO of Mitsui O.S.K. Lines, highlighted the project’s alignment with the company’s environmental goals, stating: “This project will undoubtedly be a significant milestone towards achieving ‘net zero GHG emissions by 2050’, a medium to long-term goal of the Mitsui O.S.K. Lines Group.”
The Wind Challenger technology will be showcased at the Gastech Exhibition & Conference 2024 in Houston, where information sessions on its application to LNG carriers and other vessels will be held.
This innovative approach to reducing carbon emissions in the maritime industry could pave the way for more sustainable shipping practices in the future.
Despite the positive industry reception, the initiative has faced sharp criticism from environmental advocacy groups.
Friends of the Earth released a statement labelling Chevron’s efforts as “greenwashing,” suggesting that the installation of sails on LNG carriers is merely a superficial attempt to appear environmentally friendly.
Jeff Waters, Offshore Fossil Gas Campaigner for Friends of the Earth, remarked: “When first I saw this, I thought I was reading a Terry Pratchett novel… Who do these polluters think they are fooling?”
He further criticised the project by stating that each ship carries over 200,000 cubic metres of liquefied methane, which produces substantial carbon emissions when burned. Waters concluded that adding sails to these vessels is akin to “putting lipstick on a pig”.
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Global LNG Development
Egypt: Egypt strengthens its position in the global LNG market
Egypt, as a key player in the global liquefied natural gas (LNG) market, recently awarded a major tender for the supply of 20 LNG cargoes for the fourth quarter of the year.
This decision, taken by the Egyptian Oil and Gas Company (EGPC), comes against a backdrop of fluctuating prices and increased competition on the international market.
Cargo prices were set between TTF plus $1.5 and $1.6/MMBtu, down from the previous tender, where prices ranged between TTF plus $1.6 and $2/MMBtu.
Extended payment terms also played a significant role in the pricing structure, adding around 50 to 60 cents/MMBtu to the total cost.
Taking these conditions into account, the purchase cost for Egypt amounted to around $45 million per cargo, for a total of around $907 million for all 20 cargoes.
The majority of cargoes were awarded on the basis of a floating price, reflecting the competitive nature of the TTF premiums offered by the various participants.
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Company participation and cargo allocation
The tender attracted considerable interest, with over 15 companies taking part in the competition.
Among the successful companies were major players such as Aramco, Glencore, Gunvor, Total, BP, Hartree, BB Energy and Shell.
According to market sources, Aramco won the largest number of cargoes, with around 6 to 7 cargoes awarded, while the other companies received between 1 and 3 cargoes each.
The cargoes are scheduled to be distributed over three months, with seven deliveries in October, six in November and seven in December.
The majority of the cargoes, 17, are scheduled for delivery to the Hoegh Galleon floating storage and regasification unit, located at the Ain Sukhna import terminal.
The remaining three cargoes will be delivered to the Aqaba terminal in Jordan, with one cargo scheduled each month.
Price trends and market expectations
Prices for this tender showed a downward trend compared to the previous tender, which led to mixed expectations among traders.
Some anticipated that prices would be lower than in the summer tender, due to increased competition.
One Europe-based trader said, “I think the price will be lower than the summer tender, given the higher number of participants.”
However, other traders expressed concerns about higher premiums, due to geopolitical risks, Suez Canal restrictions, and high shipping costs during the winter months.
One Atlantic trader noted that “cargoes for EGPC could end up being higher than previous spreads by around 0.15 to 0.2 (in TTF spread),” pointing to the complexity of deliveries and technical and bureaucratic requirements.
Impact of market conditions on liquidity
The current market situation is marked by increased competition between Europe, Asia and even Latin America for LNG supplies.
Sellers have been heard holding back their bids for the Egyptian tender, reducing liquidity in the European market.
This dynamic was exacerbated by the need for Egypt to navigate a complex delivery environment, with technical and bureaucratic requirements that could influence final prices.
Platts’ assessments for Eastern Mediterranean LNG deliveries for October to December have been set at between $1.279/MMBtu and $1.745/MMBtu, which could serve as a ceiling for prices awarded by EGPC, without taking into account extended payment terms.
As of September 12, Platts valued DES East Mediterranean LNG at $11.584/MMBtu, reflecting a premium of 38 cents/MMBtu over the Northwest European LNG market and a premium of 17.5 cents/MMBtu over the Dutch TTF.
Future prospects and challenges
The outlook for the LNG market in Egypt remains complex, with challenges linked to persistent demand in Asia and Latin America.
Traders and analysts are closely monitoring price trends and the potential impact of geopolitical conditions on supplies.
Expectations for future prices are mixed, with some anticipating stabilization, while others foresee increases due to shipping costs and risks associated with the winter season.
Market players also need to consider the implications of extended payment terms on cost structures.
Traders are expressing concern about Egypt’s ability to manage these challenges while maintaining a competitive position in the global LNG market.
Decisions taken in the coming months will be crucial in determining the future trajectory of Egypt’s LNG supply and its role on the international stage.
https://energynews.pro/en/egypt-strengthens-its-position-in-the-global-lng-market/
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Australila: Woodside unveils long-term deal with JERA to supply LNG to Japan
Woodside Energy (NYSE:WDS) said Wednesday it signed a long-term agreement with Japan’s JERA to supply 400K metric tons/year of liquefied natural gas over 10 years, starting in April 2026. The LNG supply deal follows Woodside’s (WDS) decision to sell a 15.1% stake in the Scarborough natural gas joint venture to JERA in February, which is expected to be completed before the end of 2024.
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“This LNG offtake agreement is Woodside’s first long-term sale to JERA from our global portfolio and delivers on one of the core elements of our strategic relationship outlined earlier this year,” the company said.
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South Korea: GTT Awarded Tank Design for Eight New LNG Carriers
GTT announces that it has received, in the third quarter of 2024, two orders from two Korean shipyards for the tank design of eight new Liquefied Natural Gas Carriers (LNGC), both on behalf of an undisclosed ship-owner.
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The first order will see Samsung Heavy Industries building four LNGCs. Each vessel will have a total capacity of 174,000 m³ and will be fitted with the Mark III Flex membrane containment system, a technology developed by GTT. The delivery of the vessels is scheduled between the second and third quarters of 2028.
The second order, placed with another Korean shipyard, also covers the construction of four LNGCs. Each vessel will have a total capacity of 174,000 m³ and will be equipped with a membrane containment system from the NO96 series developed by GTT. The delivery of the vessels is scheduled between the second and fourth quarters of 2028.
https://maritime-executive.com/corporate/gtt-awarded-tank-design-for-eight-new-lng-carriers
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Germany: Germany builds up LNG import terminals
Germany is trying to expand its natural gas import options to replace Russian supply and as part of its decarbonisation efforts.
Below are details on terminals being developed to host floating storage regasification units (FSRUs) to receive liquefied natural gas (LNG). Plans also include shore-based regasification terminals and facilities to import and produce ammonia and hydrogen.
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MUKRAN
Private company Deutsche ReGas started reloading services from the LNG tanker Coral Energy on Sept. 17, using smaller tankers to deliver LNG to locations without pipeline access.
This followed the Sept. 2 opening of regular operations at the site with FSRUs Energos Power and Neptune.
Mukran, on Ruegen island in the Baltic Sea, will supply onshore grids via pipeline firm Gascade’s new OAL pipeline with LNG.
Gascade completed the 50 km (30 miles) infrastructure in February and feed-in is possible, with existing onshore pipelines NEL and EUGAL offering long-distance transport.
ReGas holds long-term supply deals with France’s TotalEnergies and trading group MET.29dk2902l
The Mukran project has triggered local opposition, but legal challenges to commercial operations by environmental groups DUH and Nabu have been thrown out by German courts.
LUBMIN
ReGas and Hoegh, which runs a fleet of LNG tankers, on June 28 signed an agreement to develop a hydrogen import terminal at the Baltic Sea port, a forerunner of operations at Mukran.
From 2026, the two plan to operate a conversion process from cracking imported green ammonia to producing green hydrogen to be fed into Germany’s hydrogen core network.
ReGas has ended shuttling imported LNG to Lubmin, which it began early in 2023, in favour of Mukran.
ReGas also plans hydrogen electrolysis plants at both Lubmin and Mukran.
Gascade has created a grid connection to the Eugal 1 and 2 onshore gas pipelines for a green hydrogen production project at Lubmin, pursued by startup developer HH2E, which is raising funds and ordering equipment ahead of final investment decisions.
Gascade will be able to transport both gas and hydrogen blends.
STADE
On June 28, developers at the Elbe river port of Stade formally inaugurated a land-based “ammonia ready” terminal for start in 2027, for which a final investment decision had been taken by Hanseatic Energy Hub (HEH) in March.
The FSRU Energos Force arrived on March 15, expected to operate until 2027, ahead of the onshore terminal starting operations.
The onshore terminal, to be built by Spain’s Tecnicas Reunidas, is expected to cost around 1 billion euros ($1.11 billion).
Gas to arrive there has been allocated to state-controlled SEFE, utility EnBW and Czech utility CEZ.
HEH is backed by investment firm Partners Group, logistics group Buss, chemicals company Dow and Spanish grid operator Enagas.
WILHELMSHAVEN
Utility Uniper launched Germany’s first FSRU operation, Wilhelmshaven 1, in 2022.
Uniper also plans to add a land-based ammonia reception terminal and cracker in the second half of this decade.
Another operator, Tree Energy Solutions (TES), plans to operate a second FSRU, Wilhelmshaven 2, between 2024 and 2027, and plans to eventually convert its operations to clean gases.
BRUNSBUETTEL
The Brunsbuettel FSRU went into operation in April 2023, initially chartered and operated by utility RWE’s trading arm before it was handed over to state-owned Deutsche Energy Terminal (DET) at the start of 2024.
It is the forerunner of a land-based LNG facility which has been cleared to receive 40 million euros of state support.
It could start operations at the end of 2026, when an adjacent ammonia terminal could also start up.
State bank KfW, Gasunie and RWE are stakeholders and Shell has committed to sizeable purchases.
(Reporting by Vera Eckert; Editing by Sharon Singleton, David Holmes and Tomasz Janowski)
https://boereport.com/2024/09/17/germany-builds-up-lng-import-terminals-2/
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US: Galveston LNG Bunker Port secures gas supply
Texas-based GLBP has laid the foundation for a partnership with Energy Transfer’s Houston Pipeline Co. (HPL) for the supply natural gas to the proposed GLBP project, which will be the first dedicated LNG bunker terminal in the region. The two companies have executed agreements, which outline the gas supply and additional pipeline facilities required for the delivery of natural gas to the GLBP facility. This gas supply agreement supports GLBP in providing LNG marine fuel to customers in the Galveston Bay Port complex, including the ports of Houston, Galveston and Texas City, as well as Galveston Offshore Lightering Areas, on a long-term basis.
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“Securing gas supply is essential to the successful delivery of LNG as a fuel in Galveston Bay, and working with an experienced natural gas pipeline operator like HPL will ensue the safe operation and delivery of supply to the facility,” said Jonathan Cook on behalf of GLBP. “We are proud of the relationship we have with HPL and are excited about the opportunities we have to work closely with them in supporting the strengthening of US energy infrastructure, and the maritime industries decarbonisation journey.”
Among the industries adopting LNG as a marine fuel, the cruise ship, Roll on-Roll off (RoRo) car carriers, and containerised shipping industries are particularly notable, both due to their significant bunker requirements as well as their prominent involvement in the Galveston Bay port complex.
Currently, cruise ships already make approximately 380 port calls each year at the three existing cruise terminals in Galveston, with a fourth terminal recently announced and starting construction. In addition, there are over 10 000 deep draft vessel calls annually in the Galveston Bay port complex. GLBP and HPL will play a major role in providing affordable, clean marine fuel to these essential maritime sectors.
The GLBP is currently under development toward a final investment decision (FID). The project is expected to be operational by 1H27.
https://www.lngindustry.com/small-scale-lng/16092024/galveston-lng-bunker-port-secures-gas-supply/
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Ukraine: Trading arm of Ukraine’s Dtek to sign 1st US LNG cargo
“We consider these volumes as a part of the energy security for the whole [European] region, including Ukraine of course,” Ivan Geliukh, CEO of D.Trading, told Montel in an interview. The cargo was expected to arrive in December. D.Trading in June signed a 20-year agreement with Venture Global for up to 2m tonnes/year (2.72bcm/year) of LNG.
Geliukh said there was likely to be only one cargo delivered the under the long-term agreement this year, but “more significant volumes” were expected in 2025.
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It was not yet known at this stage to which European port the cargo would be shipped, or to which country or company the fuel would ultimately end up, he said, noting, “we are considering various options”.
“As a newcomer to the market, we are working constantly on increasing our portfolio of customers, but we do see demand for this volume.”
Mission to supply
The CEO said the firm’s “mission” was to bring LNG to Europe, to provide security of supply for its customers owing to Russian pipeline volumes having dropped drastically over the past couple of years.
Prior to Moscow’s invasion of Ukraine in early 2022, the EU sourced 40% of its gas from Russia, but this has since dropped to less than 10%, with the bloc aiming to phase out all Russian fossil fuel imports by 2027.
“LNG will definitely be an important source of the gas to Europe,” he said.
However, he acknowledged that EU demand would likely diminish over the period of its 20-year supply agreement with Venture Global, so it would also take advantage of arbitrage opportunities over the coming years.
Long-term benefits
Geliukh said that long-term supply agreements provided D.Trading with “more predictability”.
“You understand the volume, so you manage your risk with the volume, and you have quite predictable pricing,” he said.
As such, the firm was seeking further such agreements with other suppliers.
“We are open for discussions,” he said, adding “we really see our company as a fast-growing company. That’s why, for this, we really want to cooperate with the different potential partners.”
Updates story published at 14:04 CET as the agreement for the first vessel has yet to be signed.
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Lithuania: Port of Klaipeda launches first green shipping route, ushering in a new era of sustainable maritime trade
With the opening of its first green shipping route, the Port of Klaipeda in Lithuania has achieved a major milestone in the field of maritime sustainability. The project intends to promote ecologically responsible shipping methods and lower carbon emissions. With this, the port enters a new era that is in line with international efforts to tackle climate change and move towards more environmentally friendly, sustainable shipping operations.
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Utilising vessels propelled by liquefied natural gas (LNG) and other low-emission fuels, the new green shipping route was developed in partnership with significant international shipping companies. These boats contribute to cleaner air and healthier marine environments by greatly reducing harmful emissions like carbon dioxide, sulphur oxides, and nitrogen oxides. In order to further lessen the carbon footprint of maritime transportation, the route also incorporates energy-efficient operational techniques like improved navigation and decreased port congestion.
This project is essential to Klaipeda’s long-term goal of becoming a pioneer in environmentally friendly shipping. As part of its extensive investment in green infrastructure, the port has already installed onshore power supply systems for ships, enabling them to turn off their engines while docked, and increased the use of renewable energy sources, such as solar power, to power port operations.
Enhancing the port’s competitive advantage in the international market. Klaipeda hopes to lead by example for other ports in Europe and help the EU achieve its lofty carbon neutrality targets by cutting emissions and fostering sustainability.
The Port of Klaipeda’s initiative is a progressive way to guarantee both environmental stewardship and economic growth in the shipping industry, especially as the maritime industry is under increasing pressure to adopt cleaner technologies.
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US Venture Global signs deal to use regas terminal in Greece
U.S. liquefied natural gas (LNG) developer Venture Global LNG signed a five-year deal with Gastrade SA to regasify up to 1 million metric tons of LNG in Greece for a five-year period beginning next year from two of its Louisiana export facilities, the company said on Tuesday
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Regasification is the process of turning liquefied natural gas back to its gaseous state
The deal will allow Venture Global LNG access to regasification capacity at the Alexandroupolis LNG receiving terminal on the Thracian Sea, increasing its ability to reach Central and Eastern European markets, the company said.
The Virginia headquartered company will gain access to 25% of the terminal’s total capacity or approximately 12 cargoes annually, Venture Global LNG said.Venture Global is set to become the U.S. second-largest exporter of the superchilled gas after Cheniere Energy LNG.N once its proposed Plaquemines LNG export terminal is fully constructed and producing.
“This move further integrates our business by growing our assets across the LNG supply chain including LNG production, shipping and regasification,” said Venture Global CEO Mike Sabel.
The new Alexandroupolis LNG receiving terminal and South-North ‘Vertical Corridor’ will be essential to enhancing Central and Eastern European energy security by providing a new route to bring alternative supplies of natural gas into the region, Venture Global added.
Critical energy infrastructure projects in Greece have been supported in part by European co-funding and the United States through the International Development Finance Corp.
https://www.naturalgasworld.com/venture-global-pens-deal-to-use-regas-terminal-in-greece-118201
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US: ABB signs agreement to support major LNG export project in the US
ABB has signed a Memorandum of Understanding (MoU) agreement with US company Argent LNG to collaborate on automation and electrical solutions for a liquefaction facility at Port Fourchon in Louisiana, approximately 150 kilometers south of New Orleans. Once operational, by 2030, it will enhance US liquefied natural gas (LNG) export capabilities, support global energy security and reinforce the role of LNG as a transition fuel.
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Under the scope of the MoU, the companies will explore ABB’s plans to deliver an integrated automation and electrical infrastructure, as well as digital solutions including cyber security and data collection, to support Argent LNG’s efforts to develop a low carbon facility. The companies will collaborate from an early stage to design the system architecture to maximize operational performance and efficiency, to enable Argent LNG to adhere to emissions regulations.
The facility is expected to supply global LNG export markets including Japan, Southeast Asia, Europe, South America and the Middle East.
Argent LNG will employ modular liquefaction technology, which focuses on emission reduction and reliability. ABB will support this approach with its Ability™ System 800xA® integrated controls platform, prefabricated eHouse design and analyzer system solutions. Convenient access to established pipelines will also mean that transportation costs and logistical complexities are reduced to ensure efficient operations and delivery of natural gas feedstock to the facility.
“We are proud to collaborate with Argent LNG on this project which aims to further boost the US’s position as a leading producer and exporter of LNG to support global energy security,” said Nathan Tungseth, Senior Vice President for LNG at ABB Energy Industries. “Our automation, electrical and digital solutions are designed to help industrial plants operate at maximum efficiency and use less energy, to support a lower carbon future.”
The US remains a major investor in oil and gas, according to the International Energy Agency, which says the country will account for around 40 percent of new LNG export capacity coming to market in the second half of the decade[1]. In 2023 the US became the world’s largest LNG exporter, accounting for 80 percent of additional LNG supply.
“This project will enable Argent LNG to provide affordable and cleaner energy – manufactured and transported as sustainably as possible – to people around the world who need it most,” said Jonathan Bass, CEO at Argent LNG. “Our partnership with ABB not only supports this vision, but also allows us to better control the costs of engineering and construction, enabling us to reach FID with proven technologies. ABB’s commitment to energy efficiency and expertise in automation, electrical and digital solutions aligns perfectly with the goals for this facility.”
The facility will have an initial capacity of 10 million tons per annum (mtpa), with a second phase adding up to an additional 15 mtpa. A smaller-scale plant will also be tailored to supply LNG for next-generation LNG-powered offshore supply vessels in the Gulf of Mexico.
https://www.pandct.com/news/abb-signs-agreement-to-support-major-lng-export-project-in-the-us
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Turkey: Turkey Signs 10-Year LNG Supply Deal With TotalEnergies
Turkey’s ambitions to become a regional gas hub just received a fresh boost after the country signed a 10-year agreement with French energy giant TotalEnergies (NYSE:TTE), Turkey’s Daily Sabah reported on Wednesday. Under the terms of the deal, the oil and gas supermajor will supply Turkish state energy firm BOTAS with 1.1 million metric tons annually (mtpa) of liquefied natural gas (LNG) for 10 years starting in 2027. This marks the fourth long-term import deal BOTAS has signed with non-state-owned firms this year, having signed a similar deal with Shell Plc (NYSE:SHEL), Exxon Mobil Corp. (NYSE:XOM) and Oman.
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According to Turkish Energy Minister Alparslan Bayraktar, the supply deals will give Turkey 25 billion cubic meters (bcm) of surplus gas above the country’s annual consumption of 50 bcm.
“We can supply to European markets, particularly to the ones in south-east Europe that are in need of gas,” said Bayraktar, who was in Houston to sign the deal, as reported by Reuters.
The surplus gas gives Turkey extra flexibility to negotiate better terms or even cut gas imports from Russia and Iran, with contracts with Gazprom Export and the National Iranian Gas Company set to expire in 2025 and 2026.
“Turkey has two goals in its gas import drive: one, to lower the import volumes from Russia and Iran. Second, Turkey hopes to position itself as a gas supply hub … since European buyers have not signed sufficient long-term gas contracts,” Professor Brenda Shaffer, an energy expert at the US Naval Postgraduate School, told Reuters.
Back in July, Turkey said it was prepared to significantly increase natural gas exports to the European Union. Ankara is keen to play the role of savior and boost its leverage with respect to Brussels, but it wants some demand guarantees before it starts spending on the necessary infrastructure.
In an interview with Bloomberg, Turkish Energy Minister Alparslan Bayraktar pushed hard for a Bulgaria route, noting a potential for increasing volumes to the EU up to 10 billion cubic meters per year, while sending a clear message to Brussels: It won’t happen without some demand guarantees. According to Bayraktar, the capacity to export via Bulgaria right now is only around 3.5 billion cubic meters a year. But “from a technical point of view”, Turkey is capable of boosting this interconnection.
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LNG as a Marine Fuel/Shipping
Russia: Fifth LNG Vessel Loads Cargo at Russia’s Arctic LNG 2
SINGAPORE, Sept 16 (Reuters) – The fifth cargo of liquefied natural gas (LNG) from Russia’s Arctic LNG 2 has been picked up by a vessel managed by a company under U.S. sanctions, according to ship tracking data.
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The Arctic LNG 2 project by Russia’s Novatek is also subject to Western sanctions over Russia’s war with Ukraine. Novatek has said media allegations the company was involved in establishing and managing a “shadow fleet” for the Arctic LNG 2 project were untrue.
On Sept. 14, the Asya Energy vessel berthed at the plant, and departed fully loaded on Sept. 15, according to data from Kpler and LSEG. The vessel is managed by India-based Ocean Speedstar Solutions, which was designated under sanctions by the U.S. State Department.
Ocean Speedstar Solutions did not immediately respond to a request for comment.
Below are previous cargo loadings that have taken place at the Arctic LNG 2 plant so far, according to Kpler and LSEG data:
Ocean Speedstar Solutions is the manager for the Pioneer, Asya Energy and Everest Energy vessels. It is also listed as the contact for the vessels’ registered owners and has to date not responded to Reuters queries.
https://gcaptain.com/fifth-lng-vessel-loads-cargo-at-russias-arctic-lng-2/
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Italy: The Explora Journeys fleet expands: second ship delivered and another two on the way
MSC Group’s Cruise Division and Fincantieri have celebrated, at the Sestri Ponente shipyard in Genova, three key moments in marine tradition and in the building of the “Explora Journeys” fleet, a luxury lifestyle brand launched recently by MSC and which currently includes six vessels, the first of which was delivered in July 2023: the delivery of the Explora II, the coin ceremony for the Explora III, and the plate cutting of the Explora IV.
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All built in Italy by Fincantieri, these ships required an overall investment of over 3.5 billion euros from MSC, of which 500 million were used for the Explora II. The impact of that kind of investment on the country’s economy is over 15 billion euros, guaranteeing a positive effect on the entire chain and thousands of jobs. The construction of each individual unit requires over seven million work hours and an average employment of 2500 people for 2/3 years.
The Explora Journeys ships are highly innovative in both design and technology, and represent the best of Italian skill and talent, splendid “ambassadors” in the oceans of the world. MSC, like Fincantieri, is working hard on innovation, on research and development, and the units of the luxury segment are no exception.
Four of these, including the Explora III and Explora IV, will be fuelled by liquid natural gas (LNG) and all the units are ready to use bio-LNG and renewable synthetic LNG once these are available for large scale marine use. Even the last two ships, the Explora V and Explora VI (delivery planned for 2027 and 2028), will use LNG fuel, and currently there is a design project to equip them with large fuel cells capable of transforming renewable LNG into hydrogen, further reducing emissions.
Designed and built under supervision of RINA, Explora II has obtained a number of certificates, including “Green Plus” for its high environmental performance, “Comfort Noise and Vibration”, for its low levels of noise and vibration, and “Dolphin”, which recognized the high reduction in overall noise produced to protect ecologically sensitive marine areas, not to mention the Polar Code C certificate, allowing the ship to cruise in polar regions.
Participating in the ceremony was Edoardo Rixi, vice-minister of Infrastructure and Transport, the mayor of Genova, Marco Bucci, Pierfrancesco Vago, executive chairman of the Cruise Division for MSC Group, Biagio Mazzotta and Pierriberto Folgiero, respectively, president and CEO and general manager of Fincantieri and Luigi Matarazzo, general manager of the Mercantile Ships Division.
“The Explora Journeys ships – said Rixi – represent the best in naval engineering and design. Fincantieri’s contribution has been fundamental is building these innovative ships, which respond to the highest standards in quality and reliability, further consolidating Italy’s position among the global leaders in the shipbuilding industry.”
“We are proud to continue growing in the luxury segment – noted Vago – by taking delivery, today, of the second of six Explora Journeys ships, while the third and fourth are already under construction in this shipyard. These units represent a combination of innovation and sustainability and are part of an important expansion plan for our new European luxury brand. These also reinforce our long-time partnership with Fincantieri, which began 10 years ago, and now includes the delivery of another four ships by 2028, in addition to the six delivered up until now. The construction of the Explora Journeys ships plays a decisive role both locally, reinforcing the shipbuilding sector and economy in Genova and Liguria, and at a national level for the positive effects in economy and employment throughout the country.”
“We are proud – concluded Flogiero – to deliver the Explora II, which represents not only technological advancement but is also a symbol of our vision for a sustainable and innovative future, not to mention a splendid example of Italian design. Our partnership with MSC, consolidated through the construction of the iconic Explora Journeys ships, proves Fincantieri’s leadership in the luxury cruising segment. Together with MSC Group we will continue to redefine the standards of excellence and sustainability for the world’s naval industry, through experimenting with technology that will push the threshold of innovation. This is the Italian brilliance that we want to project into the future of technology, accelerating our efforts in modernising shipyards and promoting work in our country, creating the ‘brain-power’ of the future.”
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Egypt: EGPC acquires 20 shipments of LNG for $907M to meet domestic needs
Egyptian government has recently finalized the acquisition of 20 shipments of Liquefied Natural Gas (LNG) amounting to around $907 million. These shipments are intended to meet the nation’s domestic energy needs from October to December, as per undisclosed sources cited by Reuters.
Administered by the Egyptian General Petroleum Corporation (EGPC), the procurement deal involves a unique six-month deferred payment structure. This procurement marks Egypt’s inaugural winter LNG tender since the year 2018.
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Renowned industry giants like Glencore, Gunvor, MEX International, Trafigura, Vitol, Hartree, BB Energy, TotalEnergies, Shell, Saudi Aramco, and BP have been selected as the key suppliers. Reports from S&P Global indicate that Aramco has secured the lion’s share of shipments, with an estimated 6-7 cargoes, while other firms have been allocated 1 to 3 cargoes each.
The tender, comprising 20 shipments, primarily designates 17 for the floating import terminal at Ain Sokhna, with the remaining three earmarked for delivery to Jordan’s Aqaba. This procurement represents one of the largest initiatives ever undertaken by the state-owned EGPC. The deadline for this tender was set for September 12th.
Amidst the competitive bidding process, EGPC received offers from over 15 prominent entities at rates significantly lower—reportedly 30-40 percent below the expected market prices. These rates were in the vicinity of $1 or slightly higher per million British thermal unit (BTU) premium to the benchmark Dutch TTF, which currently stands at approximately USD 0.60 per million BTU.
In the upcoming months, Egypt is poised to receive seven LNG shipments in October, six in November, and another seven in December. Looking ahead, a government source revealed that the Egyptian government anticipates importing an additional 17-20 shipments in the first quarter of 2025, as disclosed to Enterprise in recent discussions.
https://www.egypttoday.com/Article/3/134813/EGPC-acquires-20-shipments-of-LNG-for-907M-to-meet
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Technological Development for Cleaner and Greener Environment Hydrogen & Bio-Methane
Seapeak becomes first shipping company to join UN oil and gas methane partnership
Seapeak, a leader in the global transportation of Liquified Natural Gas and other Natural Gas Liquids, announced its official membership in the Oil and Gas Methane Partnership (OGMP 2.0).is a voluntary initiative launched by the United Nations Environment Programme (UNEP) to improve the monitoring, reporting, and verification of methane emissions from oil and gas operations. By joining OGMP 2.0, Seapeak will leverage its maritime expertise to contribute to global methane reduction goals, enhance transparency, and drive meaningful change in the shipping and maritime industry.
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Seapeak’s involvement will allow it to adopt best practices, implement cutting-edge technologies, and collaborate with other industry leaders to reduce emissions.
Seapeak is one of the world’s largest owners and operators of liquefied gas carriers, providing services primarily under long-term, charters through its interests in 49 LNG carriers (including 5 newbuildings) and 44 NGL carriers (including 12 newbuildings). Seapeak’s ownership interests in these vessels range from 20 to 100 percent. In addition, Seapeak owns a 30 percent interest in an LNG regasification terminal.
https://en.portnews.ru/news/367963/
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Woodland Biofuels To Invest $1.35 Billion In World’s Largest Ultra-Green Hydrogen Facility
Woodland Biofuels is investing $1.35 Billion to build the world’s largest carbon-negative renewable natural gas (RNG) plant and ultra-green hydrogen facility in Southeast Louisiana.
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The facility is located in the Globalplex multimodal facility at the Port of South Louisiana.
The ambitious project will build the world’s largest carbon-negative RNG facility in Phase 1 and the largest carbon-negative ultra-green hydrogen plant in Phase 2.
Woodland Biofuels, based in Toronto, will use waste biomass to produce biofuel for transportation, heating and heating generation. The first phase of commercial operations will begin in 2028.
During the construction phase, the company plans to generate around 500 temporary construction jobs and 110 permanent positions with competitive wages.
Louisiana Economic Development (LED) estimates that an additional 259 indirect jobs will be created, bringing the total to 869 new jobs. 369 of these positions are expected to be permanent.
The facility’s contribution to reducing carbon dioxide will have a major environmental impact. Phase 1 is planned to sequester around 210,000 tonnes of CO2 per year, with Phase 2 increasing this figure to 660,000 tonnes, making the project one of the world’s largest carbon dioxide removal operations.
State officials have praised the project’s impact on the local economy.
The program has great potential to create jobs and boost the economy, and leaders believe that Louisiana’s skilled labour and state-of-the-art infrastructure will be key to its success.
Louisiana Economic Development stated that this project shows the state’s strategic position in supporting the growth of sustainable energy companies.
The facility will be located at the Port of South Louisiana, considered one of the top energy transfer centers in the United States. This investment supports continued efforts to diversify the state’s energy sector, particularly in renewable and green technology.
The Port’s CEO stated that the initiative would strengthen the region’s leadership in energy innovation and benefit the local economy by creating high-paying jobs for River Region families.
The state has provided Woodland Biofuels with an incentive package worth over $250 million to support the project. The packages include workforce training, infrastructure development, and performance-based rewards.
Woodland Biofuels is expected to benefit from Louisiana’s Quality Jobs and Industrial Tax Exemption programs, which will help the company manage costs and grow.
The initiative has been appreciated as a crucial part of the region’s commitment to an “all of the above” energy strategy, which combines traditional energy sources with cutting-edge renewable technologies.
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Orkla Suomi, Scandic Trans and Viking Line launch the Baltic Sea’s first green freight corridor
The food business operator Orkla Suomi, the transport company Scandic Trans and Viking Line have launched scheduled freight service with transport that runs on biofuel. Transport emissions along the green freight corridor that stretches from Fågelmara, Sweden to Turku, Finland are 90 per cent lower than previously.
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Felix ketchup, produced by the Orkla Group in Fågelmara, began to be shipped to Finland using green biofuel in July. The transport chain starts at the biggest ketchup factory in the Nordic region, with Scandic Trans lorries from Korsholm driving to Viking Line’s terminal in Stadsgården, Stockholm. The lorries then cross the Archipelago Sea on the climate-smart Viking Glory and Viking Grace and deliver their load to Orkla’s logistics centre in Turku.
Thanks to the biofuel, carbon dioxide emissions along the 683 kilometre long transport chain are reduced by 90 per cent compared to fossil fuel. Scandic Trans refuels its lorries with biofuel produced from hydrotreated vegetable oil (HVO), while Viking Line buys liquefied biogas (LBG) made from organic waste from Gasum to cover fuel use during transport.
“At Orkla’s companies, large volumes of food products are transported between the Nordic countries. The biogas project on this bustling route is one step in our sustainability journey. Our goal is to cut our greenhouse gas emissions in half by 2030 compared to 2016. Reducing our environmental impact is part of our day-to-day development work. So it was fantastic how easy it was for us as a cargo customer to make the switch to this green maritime corridor,” says Mauri Suuronen, Planning and Logistics Manager at Orkla Suomi.
For each shipment, carbon dioxide emissions are reduced from 1,512 kilogrammes to 102 kilogrammes. That means an annual decrease in emissions of about 190 tonnes.
“Lowering emissions has long been a key issue for road transport, so we have focused on introducing HVO biofuel. Now that it is also possible to use biofuel in the maritime part of the transport chain, the emissions reduction is revolutionary. And the most important thing is that biofuel can be used on a large scale, and the environmental impact can be reported for each transport mode. The transport sector’s reputation is not the best on environmental issues, so it is important to show that sustainable alternatives are available,” says Mikael Löfqvist, CEO of the transport company Scandic Trans.
Viking Glory and Viking Grace currently operate mostly on liquefied natural gas (LNG), but they were built from the very start to run on the bio and synthetic fuels of the future.
“We have invested a total of 450 million euros in our climate-smart vessels. As a result, we have now successfully launched scheduled freight service using biofuel in partnership with Orkla Suomi and Scandic Trans” says Harri Tamminen, Freight Director at Viking Line.
For a year now, Viking Line has offered its passengers and conference customers the possibility of buying biogas equivalent to the amount used on their journey, thus reducing emissions from their travel by 90 per cent. This year, the company celebrated Baltic Sea Day by purchasing biofuel used on the Turku route for an entire week.
https://en.portnews.ru/news/368008/
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