NGS’ NG/LNG SNAPSHOT – December 16-31, 2022
National News Internatonal News
City Gas Distribution & Auto LPG
Over 430 bids received against 61 geographical areas for 11th CGD bidding round
The Petroleum and Natural Gas Regulatory Board (PNGRB) has received more than 430 bids for the 11th city gas distribution (CGD) bidding round. The 11th CGD bidding round for 65 geographical areas (GAs) spread over 215 districts in
19 states and on Union Territory was launched on 17 September this year and the last date for bid submission was 15 December. The 65 GAs on offer cover 26 per cent of India’s population and 33 percent of its area.
Currently, there are 228 geographical areas authorized by PNGRB in 27 states and UTs covering around 53 per cent of the country’s geographical area and 70 percent of its population, reports Economic Times. In the 10th CGD bidding round, 50 GAs were authorized for the development of the CGD network.
Indian Biogas Association (IBA) condemns govt for withdrawing subsidy on biogas plants
Indian Biogas Association (IBA) on Monday, December 20, condemned the government for the withdrawal of subsidy on all kinds of biogas plants, saying it will impact India’s goal of self-sufficiency in fossil fuels and affect 50 million farmers.
The decision will impact almost 50 million farmers looking for energy security and natural farming along with the government’s target of 5,000 plants under SATAT Scheme and will jeopardize Indian dream of becoming self-sufficient in fossil fuels
Japanese group invests $120mn in AG&P city gas
AG&P City Gas, a unit of Singapore’s AG&P, is developing 12 city gas distribution networks in India under the brand name AG&P Pratham. AG&P City Gas, a unit of Singapore-based AG&P, has received a $120mn investment from Osaka Gas and
Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development (JOIN). In its 12 concessions, AG&P City Gas is responsible for developing and operating compressed natural gas (CNG) stations for vehicles, piped natural gas to homes, and the distribution of LNG to industrial and commercial customers.
This is the second investment that AG&P City Gas has received in four months. In August, AG&P City Gas received $200mn from US-based I Squared Capital. Combined with the investment from the Osaka Gas and JOIN consortium, the total equity infusion available for AG&P City Gas is over $300mn.
Government will supply Bio-CNG gas to hotels, municipal vehicles
Finance Minister T Harish Rao on Monday, December 20, stated the State government would supply Bio-CNG gas to restaurants in the city and also to municipal vehicles as fuel. Rao, along with British Deputy High Commissioner
Andrew Fleming, inaugurated a Bio-CNG plant at Bussapur village in Siddipet Mandal. This has become possible only because people segregated dry and wet garbage. The entire world is suffering from piled-up garbage, landfilling & water pollution resulting in many diseases.
Further, the minister stated that every day 55,000 kg garbage is generated in Siddipet. To ensure there are no garbage piles, the Bio-CNG plant was launched.
Electric Mobility/ Hydrogen/ Bio- Methane
Sentient Labs showcases made-in-India hydrogen fuel cell bus
Pune-based R&D innovation firm Sentient Labs has demonstrated an indigenously developed Hydrogen Fuel Cell Bus. The start-up is incubated by KPIT Technologies which has collaborated with CSIR (Council of
Scientific and Industrial Research)-NCL (National Chemical Laboratory) and CSIR-CECRI (Central Electrochemical Research Institute) to develop the hydrogen fuel cell technology.
The start-up says its vision is to build technology solutions for sustainable mobility with a current focus on hydrogen-powered technologies. It has identified bottlenecks in battery technology, fuel cell tech, and technologies for hydrogen generation. The company is also working on what it says is world’s first technology that generates hydrogen directly from agricultural residue for use in fuel cell-powered vehicles. Generating hydrogen from agri-waste can provide an alternative source of revenue to farmers, replacing diesel buses with Hydrogen Fuel Cell buses will improve air quality drastically and also reduce oil import costs.
PSUs seek partners for green hydrogen projects
As the race to reach emission goals intensifies, state-run energy companies are hunting for partners to tie up and build green-hydrogen facilities to run their refineries and sell the fuel commercially. Indian Oil Corp. Ltd (IOCL), BPCL, HPCL, NTPC Ltd and
Gail (India) Ltd, among others, plan to set up green hydrogen facilities over the next three years.
While IOCL has issued a global tender to develop green hydrogen generation facilities on a build-own-operate basis at its refineries in Mathura, Uttar Pradesh, and Panipat, Haryana, Gail has floated global tenders to procure an electrolyzer. Gail has shortlisted three sites, including one at Vijaipur in Madhya Pradesh, and will take around 14 months to set up the 10-megawatt facility. NTPC has also announced a 5MW green hydrogen plant. IOCL, on the other hand, plans to develop a green hydrogen generation facility with a 5,000 MT annual capacity for its refinery in Mathura and a 2,000 MT annual capacity for its refinery in Panipat. It is anticipated that the green hydrogen demand in India for applications such as refineries, fertilizers and city gas grids will grow to 2 million tonnes per annum by 2030, in line with the nation’s green hydrogen mission. This would call for investments upward of $60 billion.
SC allows Delhi govt’s decision to issue permits to 4,261 e-autos
The Supreme Court on Wednesday, December 15, allowed Delhi government to go ahead with its decision to issue permits to 4,261 e-autos and dismissed Bajaj Auto’s petition challenging the decision on the ground of alleged discrimination
against CNG-operated autos. A bench of Justices L Nageswara Rao, B R Gavai and B V Nagarathna said that the decision to promote cleaner fuel and allowing registration of battery-run auto rickshaw did not amount to violation of any rights of the company manufacturing CNG run autos and refused to interfere in the decision.
Green hydrogen fuel from waste water is technology of future
The ministry of road transport and highways (Morth) plans to lay a network of green highways stretching to 12,000 kms in the next three to four years in India. Under Union transport minister Nitin Gadkari, Morth launched the ‘
Green Highways Policy, 2015’ which promotes greening of highway corridors with participation of the community, farmers, private sector, NGOs & government institutions.
It would help the country in achieving zero pollution. It would be a completely new road, which would be starting from zero and straight in alignment. Materials like plastic and rubber in bitumen. There will be a large number of green tree plantations on both sides. Importantly, it would be a fully access control expressway and due to its straight alignment, it would save a lot of fuel and effort. In the current system, we are changing two lanes to four and four lanes to six, but they are consuming more fuel and time.
Oil India to set up green hydrogen plant in Assam
Oil India Ltd (OIL), the nation’s second-largest state-owned oil explorer, is setting up a plant to manufacture green hydrogen at its Jorhat oilfield in Assam, the company said in a statement. To strengthen its bouquet of clean energy offerings,
the company has initiated action for setting up a 100 kW green hydrogen plant at its Pump station-3 in Jorhat.
The pilot plant will generate green hydrogen using AEM technology, it said without giving details. Green hydrogen is derived from water electrolysis using renewable energy like solar or wind. Biomass-based hydrogen production technologies also qualify under the green category. The government proposed the National Hydrogen Mission in the Union Budget 2021-22, initiating a hydrogen roadmap for the country.
Costlier fuel drives buyers towards CNG, electric vehicles
The rising fuel prices over the last year seem to have nudged buyers towards the CNG and electric variants. As per the data statistics given by the Pune RTO, in this year a total of 10,301 CNG cars were registered between January to December 26, 2021.
While between the same periods a total of 360 electric cars were registered. Interestingly 5,304 electric bikes were registered in the same period, as there is growing demand for it.
Natural Gas/ Pipelines/ Company News
Natural gas pipelines to be laid in six Kochi city divisions
Ending the five-year-long wait, the laying of supply pipelines for the natural gas distribution network within the Kochi Corporation limits will begin shortly. The Kochi Corporation issued a demand note to the Indian Oil-Adani Gas Pvt Ltd,
the agency which will distribute natural gas to the kitchens in the city, to lay the pipelines in six divisions the other day. It is for the first time that the supply lines are being laid in the city.
Kunnumpuram, Vennala, Palarivattom, Thammanam, Chakkaraparambu and Ponnurunni East are the divisions in which the lines would be laid. The Thrikkakara Municipality, which had issued permission for laying the pipelines in its 13 divisions earlier, has cleared the case of 11 more divisions.
Megha Gas to set up CNG outlets
Megha Gas, a part of city-based infrastructure major MEIL, is gearing up to supply cooking gas to households in Warangal and Narsampet. Megha Gas Technical Head G Rajkumar on Wednesday, December 15, stated that two cities will get cooking gas to households in
the coming financial year. Megha Gas Compressed Natural Gas (CNG) outlet at Sri Prataparudra Automotives in Nakkalagutta, Hanumakonda was inaugurated by Bharat Petroleum Corporation Limited’s Andhra and Telangana State Retail Sales Division DGM KSV Bhaskara Rao.
Megha Gas will open a CNG outlet every 20 km on the Hyderabad to Vijayawada, Warangal and Khammam roads. Megha Gas CNG plants are being set up at Rotary Nagar, Danshalapuram and Khammam bus stands in Khammam city. In addition to the three CNG outlets in Rangareddy district, 10 more will be set up.
IIT Kanpur’s incubated company sets up floating CNG filling station in Varanasi
The CNG filling station at Khidkiya Ghat in Varanasi will ensure the consistent and safe CNG pipeline connection to all the dispensers with controlled risk factors even in peak flood season. On December 13, Prime Minister
Narendra Modi inaugurated Shrikashi Vishwanath Corridor at Varanasi. The Khidkiya Ghat at Varanasi recently got its first and world’s first floating CNG filling station for eco-friendly boats. IIT Kanpur has contributed to the project by providing a patented technology, i.e. Self-Adjusting Fixed Type Jetty (SAFTJ). It is notable and GAIL India has developed the model ghat, Khidkiya Ghat.
AGCL to buy natural gas from Cairn Oil
State-run Assam Gas Company Ltd (AGCL) on Thursday, December 16, signed an agreement with Cairn Oil and Gas to purchase one lakh standard cubic meters per day (SCMD) of natural gas for distributing it in the state.
This new development in Assam with AGCL gives power to the state’s critical tea industry alongside supporting other key sectors of the state. AGCL managing director Gokul Chandra Swargiyari said the association with the private oil company will improve energy access in Assam and boost the state’s many industries, particularly the big tea estates.
BPCL inaugurates Ahmednagar’s Natural Gas City Gate Station
Shri Arun Kumar Singh, Chairman & Managing Director, BPCL inaugurates Ahmednagar’s Natural Gas City Gate Station on Wednesday, December 15, 2021. Commissioning of this facility marks the entry of natural gas in the city
for automobiles, through CNG Stations, Industries, and households through either the pipelines or cylinders cascades.
The function of City Gate Station is to receive the natural gas from transmission pipelines and reduce its pressure to feed the distribution system or fill the cylinders. This would facilitate the development of an environment-friendly fuel ecosystem in Ahmednagar city in Maharashtra.
CIL diversified into other sectors; invests in natural-gas based fertilizer plants
According to the Union Minister of Coal, Mines Shri Pralhad Joshi, in 2016, with a view to enhance the food security of the nation, CIL Board accorded its approval for the formation of a joint venture company with NTPC, IOCL, FCIL, and HFCL,
a Hindustan Urvarak & Rasayan Limited (HURL) for the revival of three defunct fertilizer plants of FCIL and HFCL.
However, India’s largest coal producer CIL has approved an aggregate investment of Rs. 2,295.96 Cr. as a part of its equity capital towards setting up of a total of three natural-gas based fertilizer plants at Gorakhpur (UP), Barauni (Bihar), and Sindri (Jharkhand). The diversification proposals into above mentioned 03 areas, are currently under the feasibility study stage, as such no separate capital funds have been earmarked.
Bhatinda-Srinagar gas pipeline, Government to fix timeline for project completion
After years of delay, the Ministry of Home Affairs has directed the Ministry of Petroleum and Natural Gas (PNG) to fix the timeline for completion of Bhatinda – Srinagar gas pipeline. According to an official document of the J&K government,
the Ministry of Home Affairs has stepped in and directed the Ministry of PNG to fix a timeline for completion. Reportedly GIGL has dropped out.
The 778 KM underground Natural Gas pipeline network from Bhatinda in Punjab to UT of J&K has seen no physical progress even after years of its announcement. In February, Union Finance Minister Nirmala Sitharaman announced revival of a pending gas pipeline project in the newly created UT of J&K. The FM said a gas pipeline project will be taken up in the Union Territory of Jammu and Kashmir.
It is pertinent to note here that the Bhatinda-Srinagar gas pipeline, an estimated Rs 6000 crore project, was announced ten years back, but due to paucity of funds and lack of administrative push, it saw no progress in a decade. Though the land acquisition process was started in Kathua and Samba districts, it has not reached the logical conclusion. However, now it is believed that with the Center’s push the project will be completed soon.
AG&P starts work on LCNG station in South India
AG&P Pratham, a unit of Singapore-based AG&P, has started work on a liquefied compressed natural gas (LCNG) station in the state of Andhra Pradesh. The LCNG station is the second in the state and third in South India. Located at
YSR Kadapa district, the station comprises two storage tanks with a capacity of 56 KL of LNG storage and gasification. The LCNG station will provide natural gas to commercial, industrial, and residential customers and supply CNG to cars, taxis, and buses.
NMPML to deploy 100 more CNG buses by Jan 2022 end
Nashik Mahanagar Parivahan Mahamandal Ltd (NMPML), the transport wing of the Nashik Municipal Corporation (NMC), has decided to deploy 100 more CNG buses by January end. The NMPML could not operate some buses due to a lack of adequate CNG.
The Maharashtra Natural Gas Ltd (MNGL) has written to the NMPML officials informing them that the new LNG to CNG conversion plant established in the Pathardi area of the city will be operational by January end. As the plant gets operational, MNGL would be able to cater to the requirement of CNG for 200 vehicles. Presently, NMPML has 100 CNG, operational on 42 routes. It is yet to operate another 100 CNG buses. Now, it has planned to deploy more than 100 CNG buses on additional 22 routes by January end.
Policy Matters/ Gas Pricing/ Others
CNG, PNG prices increase in Mumbai
State-run city gas utility Mahanagar Gas increased the price of compressed natural gas (CNG) by Rs 2 per kg in Mumbai from December 17 midnight. The rate of piped natural gas (PNG) also goes up by Rs 1.50 per unit.
With this price revision, the rate of CNG is now Rs 63.50 per kg while piped gas now costs Rs 38 per unit.
This is the fourth time in the last three months that the prices of CNG have been increased. Also, the CNG rate in the Mumbai metropolitan region has been increased by around Rs 16 in 11 months this year. The hike has put a huge burden on more than 8 lakh consumers. This includes over 3 lakh private car users besides those in public transport like auto-rickshaw, taxi & buses, the report suggested.
Cabinet’s Appointment Committee rejigs bureaucrats, Pankaj Jain gets Petroleum Ministry
The government on December 27 appointed current Additional Secretary in the Union Finance Ministry, Pankaj Jain as the new Secretary for Ministry of Petroleum and Natural Gas (MoPNG).
LNG Development and Shipping
NYK, GAIL sign charter deal for LNG carrier
Japanese shipping company NYK has signed a time-charter contract with GAIL (India) Limited, India’s largest natural gas company, for a liquefied natural gas (LNG) carrier. Grace Emilia, the vessel that will be chartered, is equipped
with a WinGD-made dual-fuel slow-speed diesel engine that can operate on marine gas oil or boil off gas stored in the cargo tank. The vessel also features a re-liquefaction system that can use re-liquefied excess boil-off gas and return it to the cargo tank.
The cargo tank is a 174,000 cubic meter capacity membrane-type tank that makes use of advanced insulating materials to suppress the boil-off rate (percentage of gas volume that vaporizes during navigation) in the cargo tank and realize superior efficiency and economical LNG transportation.
The LNG carrier was built in 2021 by Hyundai Samho Heavy Industries Co. and is sailing under the flag of Bahamas. Its carrying capacity is 89730 DWT while its overall length is 297.16 meters and its width 46 meters.
LNG bus may soon run on Nagpur-Raipur route
Super Transit Services, a company from Bengaluru, showcased what is billed to be the country’s first-ever LNG bus at the Agrovision expo here. There are plans to run the vehicle on Nagpur-Raipur and Nagpur-Jabalpur routes in coming weeks.
Union transport minister Nitin Gadkari, who has been patronizing the exhibition, is also a strong advocate of alternate fuel. Super Transit plans to lease out buses from the existing operators and convert vehicles into LNG. The first bus that is planned to run from Nagpur to Raipur is expected to be launched in 2-3 weeks.
Natural Gas / Transnational Pipelines/ Others
USA: Gillis Lateral completes in-service, connecting Haynesville production and LNG terminals
Enterprise Products Partners recently began commercial service on its new Gillis Lateral pipeline and the related expansion of the existing Acadian Haynesville Extension system. The 80-mile Gillis Lateral starts near Alexandria, Louisiana, and brings
gas to third-party interconnects near Gillis, including several pipelines that directly supply LNG export facilities along the Louisiana Coast. The project adds around 1 Bcf/d of additional pipeline capacity that connects robust Haynesville production with burgeoning LNG feed gas demand, and is fully subscribed with long-term, firm commitments.
Energean ramps up Egypt natural gas
Greek energy firm Energean’s plans to increase natural gas production from its concessions in Egypt were discussed in Cairo with Petroleum Minister Tarek El Molla and company CEO Mathios Rigas.
Egypt minister El Molla and Rigas discussed Energean’s plan to link gas discoveries in North Idku and North El Amriya to the existing production facilities in Abu Qir, offshore Alexandria. El Molla stressed the importance of the continuous cooperation between the ministry and international companies to speed up implementing new projects to increase Egypt’s oil & gas reserves and production.
Italy: 27 companies discuss biomethane role with EU Energy Commissioner
IVECO was one of 28 leading European companies and associations which presented the “Biomethane Declaration” to EU Energy Commissioner Kadri Simson. The Declaration advocates for the recognition of bio methane’s role in the decarbonisation pathways as the most effective, affordable,
scalable & sustainable gas available today. The European Commissioner for Energy accepted the Biomethane Declaration, highlighting the important role of renewable gas in decarbonizing sectors such as transport, industry & residential heating, building a more resilient energy system & reducing energy dependency.
The Declaration signatories expressed their desire to mobilize the biomethane value chain to promote its benefits and opportunities and cooperate with national and EU policy makers and other stakeholders to ensure the support needed for a Europe-wide scale-up and use of this renewable gas.
Russia: Nord Stream 2 starts filling second pipe with natural gas
Nord Stream 2 AG stated on Friday, December 17, it had started filling its second pipe with natural gas, stepping up preparations to launch a project that has sparked global political tensions and is yet to get the green light from Germany.
“Like the first string (pipe), the second string will be gradually filled with gas to build the required inventory and pressure.
The first pipe was filled with gas in October. Pre-commissioning activities on the second pipe were completed successfully to assure its integrity. Russia completed construction of the dual-pipeline in September. However it is yet to obtain regulatory approval from Germany and the European Union, amid political tensions over a buildup of Russian troops on the Ukraine border.
TotalEnergies, Oman Sign Agreements for Natural Gas Projects
TotalEnergies SE announced on Tuesday, December 21st that it has signed agreements with the government of Oman to develop and produce natural gas in the country. The French energy company will set up a company called Marsa LNG, in which it will hold 80%.
Oman National Oil Company, or OQ, will hold the remaining 20%.
Marsa LNG will produce natural gas from Block 10. TotalEnergies also signed with the Ministry of Energy and Minerals of the Sultanate of Oman a sales agreement, under which Marsa LNG will sell natural gas from Block 10 to Oman for 18 years or until the start-up of the LNG plant.
Argentina: new draft of the standard for the CNG refueling of heavy vehicles
The National Gas Regulatory Entity (ENARGAS) reported that, in order to promote the use of natural gas as fuel in vehicles for passenger or cargo transportation services, it decided to submit to public consultation the Draft of Standard NAG-420.
According to the controller, this regulation also plans to improve the energy trade balance and the savings on subsidies with the substitution of imported liquid fuels and promote the operational efficiency of the gas system. Along the same lines, Standard NAG-420 (2021) offers a potentially viable alternative in Argentina, both due to the availability of natural gas for vehicle use, as well as to the extension of its distribution networks, supply & distribution of refueling points, in places of high urban concentration and on national or provincial routes.
Global LNG Development
China tightens its grip on Qatar with new LNG contract
China and Qatar have signed another long-term LNG contract, with Qatar set to send 1 million tons per annum to China starting in 2024. As a key U.S. ally and the location of a major U.S. airbase, the growing influence of China on
Qatar should be a serious worry for Washington. Qatar’s growing energy relationships with Iran, Russia, and China reinforce just how influential energy supply and demand are on geopolitics.
Dutch maritime bio-LNG project receives €4.3m
Nordsol, Titan and Attero have received €4.3 million in funding for a bio-LNG production plant in the Netherlands that will supply fuel to the maritime industry. The FirstBio2Shipping project located at the Attero facility in Wilp will help
decarbonise maritime transport through scalable, decentralised production of bio-LNG. The plant is due to be completed in 2023 and will produce around 2,400 tons per year of bio-LNG. Under the partnership, Attero and Nordsol will produce 2,400 tons per year of high-purity bio-LNG and 5,000 tons per year of liquid bio-CO2.
The MOL FSRU Challenger vessel features a LNG storage capacity of 263,000m³.
Dutch product handling company Royal Vopak has agreed to purchase shares of 49.99% in Mitsui OSK Lines (MOL) floating storage and regasification unit (FSRU), MOL FSRU Challenger. The transaction will create a joint venture (JV)
between MOL and Royal Vopak in Hong Kong, as well as rebranding MOL FSRU Challenger as Bauhinia Spirit. Both parties will jointly own and manage the FSRU and have a long-term contract with the Hong Kong LNG Terminal in place.
Under the terms of the agreement, the JV will also offer jetty operations and maintenance and port services. The deal is expected to close after the terminal is commissioned next year subject to certain customary conditions such as refinancing and regulatory clearance.
Pakistan: LNG terminal operator eager to expand capacity
Pakistan must prioritise the expansion of existing LNG terminals under the approved third-party access (TPA) rules, while eventually transitioning towards onshore terminals for greater energy security. At present, EETL contributes around 15% of gas supplies to
Pakistan and can be considered the country’s largest “gas field” (of 630-690 million cubic feet per day – mmcfd). As the most utilised regasification terminal in the world.
To mitigate the gas shortfall in future, the government has adopted a favourable policy of encouraging the private sector to enter the LNG sector, but there was a need to remove roadblocks that impeded the utilisation of additional capacity of the existing LNG terminals under TPA rules, as allowed under the LNG Policy 2011 and LNG Supply Agreement (LSA) with Sui Southern Gas Company (SSGC). If approved, the project will be built in a phased manner based on the concept of open access terminal.
USA: NFE signs MoU with Mauritania for fast LNG and gas to power project
New Fortress Energy Inc. (NFE) announced today on December 22, the execution of a MOU with the Islamic Republic of Mauritania for the development of an Energy Hub, including natural gas, power, LNG & blue ammonia, utilizing existing offshore gas reserves off the coast of Mauritania.
Under the MOU, NFE will deploy its innovative “Fast LNG” liquefaction technology to produce LNG in the Atlantic coastal basin offshore Mauritania for local gas and power markets as well as international exports. NFE will supply natural gas to both the existing 180MW Somolec Power Plant and a new 120MW combined cycle power plant that will be developed. The MOU is non-binding on the parties and the actual terms of any future definitive agreement may differ from the terms of the MOU.
Russian Government allocates over 890 million rubles for the Arctic LNG 2 project
The Government of Russia has allocated about 890 million rubles to build an LNG carrier for the Arctic LNG 2 project and to support the preferential-rate leasing of civilian ships, the Government press service reported.
It specifies that the subsidy is part of the Development of Shipbuilding and Equipment for Exploring Sea Shelf Deposits State Program. The Government considered the issues related to the allocation of funding at its December 8 meeting.
The new icebreaker-class LNG carrier will be able to transport 172,600 cubic meters of liquefied natural gas (LNG) along the Northern Sea Route. Designed for year-round navigation, it is being built by the Zvezda shipyard. The plans are to commission the vessel in 2023.
Natural Gas / LNG Utilization
USA: NFE and Hydro execute gas supply agreement
New Fortress Energy Inc. has announced the execution of a 15-year gas supply agreement (GSA) with a subsidiary of Norsk Hydro ASA for the supply of natural gas to the Alunorte Alumina Refinery in Pará, Brazil. Under the GSA,
NFE has agreed to supply Hydro with 29.5 trillion Btu of natural gas annually (equivalent to approximately 1 million gal./d of LNG) to the refinery from NFE’s Barcarena LNG receiving and regasification terminal located in the state of Pará. When completed in 2022, NFE’s Barcarena LNG terminal is expected to be the sole point of LNG imports in the state of Pará and the North region of Brazil.
USA: Constellation announces RNG supply agreement
Constellation, a leading competitive energy and energy solutions provider, announced on December 14, a 10-year agreement in which it will provide renewable natural gas (RNG) to American Natural Gas LLC to supply its compressed natural gas (CNG) stations nationwide.
The deal is made possible through a separate long-term offtake agreement between Constellation and project developer, The Landfill Group, in partnership with LS Power. In turn, Constellation will provide American Natural Gas with up to approximately 750 MMBTUs per day of RNG for its CNG commercial fleet customers.
LNG bunkering possible at Hong Kong’s Kai Tak Cruise Terminal
Worldwide Cruise Terminals (WCT), manager and operator of Hong Kong’s Kai Tak Cruise Terminal, received the results of its preliminary study on the feasibility of providing liquefied natural gas (LNG) bunkering facilities for ships at the Kai Tak Cruise Terminal.
The preliminary study was conducted by Bureau Veritas Solutions Marine & Offshore (BV Solutions) and showed that it would be easy to conduct ship-to-ship LNG bunkering simultaneously with passenger operations at the terminal. The switch from traditional fuel oil to LNG will reduce greenhouse gas emissions by around 20% with nitrogen oxide emissions reduced by up to 80%.
China announced as world’s largest LNG importer during first 10 months of 2021
China’s imports of LNG over the first 10 months of 2021 were the world’s largest, surpassing Japan, according to data from China’s Administration of Customs and from Japan’s Ministry of Finance.
China’s LNG imports have grown steadily every year since 2006, except in 2015. In 2017, China became the world’s second-largest LNG importer, surpassing South Korea. In 2018, China surpassed Japan as the world’s largest natural gas importer; combined natural gas imports by pipeline and LNG averaged 11.9 billion ft3/day compared with Japan’s average LNG imports (Japan does not import natural gas by pipeline) of 10.9 billion ft3/day that year.
In 2021, China imported LNG from 23 countries. Australia has been the largest LNG supplier to China every month since April 2016. From January to October 2021. China became the second-largest destination for US LNG exports in 2021 (January through October. LNG imports from Qatar and Malaysia increased by 0.3 billion ft3/day compared with the same period in 2020. The remaining 19 countries supplied a combined 2.8 billion ft3/day (27% share) of LNG to China. LNG imports from Indonesia and Russia (the fifth and sixth-largest suppliers) averaged 0.7 billion ft3/day and 0.6 billion ft3/day, respectively.
China: Record natural gas delivered to southern Xinjiang
Over 5 billion cubic meters of natural gas has been delivered to southern Xinjiang to support their gas consumption this year, according to the Tarim Oilfield of China National Petroleum Corporation (CNPC),
China’s leading oil and gas producer, on Sunday, December 19. Up to now, the total gas supply from the Tarim Oilfield to southern Xinjiang has reached 43 billion cubic meters, benefiting residents in five prefectures of southern Xinjiang.
So far, more than 3,000 km of pipes have been installed, providing natural gas to 42 counties and cities. Located in northwest China’s Xinjiang Uygur Autonomous Region, Tarim Basin is a major petroliferous basin in China, producing one-sixth of the country’s total production of natural gas.
Russia doubled imports of natural gas from Turkmenistan in 2021
Russia has doubled the imports of natural gas from Turkmenistan this year, Moscow’s ambassador in Ashgabat told reporters on December 24. Russia this year stands to buy about 10 billion cubic meters (bcm) of natural gas from
Turkmenistan, nearly twice the amount purchased in 2020. Relatively cheap imports of gas from Turkmenistan and other Central Asian countries have enabled Russia to boost its exports to Europe.
The move put significant pressure on Turkmenistan’s economy, which is highly dependent on hydrocarbons as a source of hard currency. Russia was once the leading importer of Turkmen gas until it was displaced by China in 2010. Turkmenistan annually exports up to 40 bcm of gas to China. Turkmenistan owns the world’s fourth-largest known reserves of natural gas but has limited infrastructure to export its energy resources.
Turkmenistan trilateral natural gas deal
A trilateral Turkmenistan-Iran-Azerbaijan natural gas trade agreement will go into effect from today, December 27. The agreement calls for 1.2 to 2 billion cubic meters of natural gas to be sold from Turkmenistan to Azerbaijan and transported through Iran.
The Turkmen gas will be traded at the northern Turkmenistan-Iran border and exchanged for an equivalent amount of Iranian gas at the Iran-Azerbaijan border. The contract has no end date.
LNG as a Marine Fuel/Shipping
China: Venture Global LNG and CNOOC Gas & Power announce LNG sales and purchase agreements
Venture Global LNG and CNOOC Gas & Power Group Co., Ltd., a wholly-owned subsidiary of China National Offshore Oil Corporation (CNOOC), announced the execution of a 20-year Sales and Purchase Agreement (SPA).
This marks the first LNG supply agreement signed by a US exporter with CNOOC, China’s largest importer of LNG. Under the deal, Venture Global will supply 2 million tonnes per annum (MTPA) of LNG on a free on board (FOB) basis from its Plaquemines LNG export facility, in Plaquemines Parish, Louisiana. In addition, CNOOC Gas & Power will purchase 1.5 million tonnes (MT) of LNG from Venture Global’s Calcasieu Pass LNG facility for a shorter duration.
Egypt’s Suez Canal to reduce rebates on tolls for LNG carriers from Jan 1 to June 30
Egypt’s Suez Canal will reduce rebates on canal tolls for liquefied natural gas carriers from Jan. The rebates to LNG tankers operating between the American Gulf, ports South of the American Gulf, and the Gulf and ports at west of India till Kochi port will have
a rebate of 30% of Suez Canal normal tolls, while eastern ports to Kochi port up to Singapore will have a rebate of 55%, and Singapore ports and its eastern ports will have a rebate of 70%.
UK: Shell charters Avenir LNG bunker vessel
Avenir LNG announced it has entered into a time charter party (TCP) with Shell for the new build 20,000-cubic-meter capacity liquefied natural gas (LNG) bunkering supply vessel Avenir Achievement. Avenir LNG,
a joint venture between Stolt-Nielsen, Hoegh LNG and Golar LNG. Avenir Achievement is scheduled to be delivered from Chinese builder Nantong CIMC Sinopacific Offshore & Engineering Co. Ltd (CIMC SOE) in the second quarter of 2022. The 159.9-meter-long ship has a molded width of 24 meters, molded depth of 16.75 meters and design draft of 8 meters. The charter, including options, increases Avenir’s overall vessel charter revenues backlog to $81 million as of December 1, 2021.
USA set to become world’s biggest LNG exporter in 2022
Global LNG demand has hit record highs each year since 2015, due mostly to surging demand in China and the rest of Asia. Much of that global appetite has been met by steadily rising US LNG exports, which have reached new records every year
since 2016 and is poised to continue in 2022, reports Reuters. The US Energy Information Administration projects US LNG exports will reach 11.5 billion cubic feet per day (bcfd) in 2022. That would account for roughly 22% of the expected world LNG demand of 53.3 bcfd next year, according to analysts at Goldman Sachs & would outpace both Australia and Qatar, the two largest exporters at present. One billion cubic feet is enough gas for about 5 million US homes a day. The United States should remain the biggest LNG exporter by capacity until around 2025, when Qatar could regain the lead as its North Field expansion starts to enter service. But if some US developers start building new LNG export plants, the United States may not give up the crown.
Japanese LNG imports down 3% in November
Japanese LNG imports in November came in at 5.86mn metric tons, down 2.6% year/year, according to the data published by the country’s finance ministry last week. The imports were up 26.9% month/month,
however. Japan’s shipments last month cost 495.53bn yen ($4.36bn), up 136% yr/yr. The data showed that LNG imports from the Middle East were up 29% yr/yr while imports from Russia were down 10%. Imports from Asian sources were up 28% yr/yr. The imports from the US were down 12.5% yr/yr, the data showed.
Australia: Regulators order Shell’s prelude LNG to shut down for safety review
Australia’s National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) ordered Shell on December 24, to keep its massive Prelude LNG offshore gas facility shut down until it can prove that it has
made safety improvements. Actually in November, a small fire in an electrical compartment knocked Prelude’s power supply offline, forcing a shutdown and a rush to get generators back up and running. According to NOPSEMA, that restart effort failed repeatedly, and Prelude’s power kept shutting down for three days. Concluding that Shell has not shown an ability to manage such a complex asset, So, Prelude must be shut down until the operator can convince regulators.
Ships carrying natural gas head for Europe as prices surge to new high
Ships carrying liquefied natural gas destined for Asia are changing tack mid-voyage to supply European consumers willing to pay a large premium, as prices across the region surge to new peaks. For much of the year buyers in China,
Japan & South Korea have outbid Europeans for shipments of the super-chilled fuel, used in power stations to generate electricity. But with storage now full across the region, uncommitted cargoes from the Atlantic basin that were heading for Asia are being turned round by their owners and sent to Europe to cash in on soaring prices and demand.
Technological Development for Cleaner and Greener Environment Hydrogen & Bio-Methane
IVECO and Air Liquide signed a MoU to develop hydrogen-fueled transport in Europe.
The partnership will contribute to materializing clean mobility by leveraging the two companies’ complementary competencies, in particular, Air Liquide’s unique expertise across the entire hydrogen value chain, from production and storage to distribution, and
IVECO’s legacy as a provider of advanced, clean sustainable transport solutions.
Sweden: Swedish environmental agency funds production of biogas for transport
Scandinavian Biogas plans to build a plant for the production of bio-LNG together with local farmers in Grimhult outside Mönsterås about 370 kilometers south of Stockholm. According to the plan, the construction will commence during the first half of 2022 and production is planned to begin in 2024.
The biogas plant is located in Mönsterås due to the high density of animal farms in the area. The facility should convert 3 lakhs tons of dung from local pigs, nuts & poultry into about 120 GWh of bio-LNG that will be used as fuel in trucks and ships. The Swedish Environmental Protection Agency’s program Klimatklivet has granted Scandinavian Biogas’ subsidiary Mönsterås Biogasproduktion AB USD 17 mn in investment support for the project. Mönsterås Biogasproduktion cooperates with local farmers to invest a total of just over USD 55mn in the facility. Environmental permits have been granted.
UK: Hempstead, National Grid deal aims to heat homes with hydrogen, natural gas mix
Hempstead Town and National Grid signed a partnership Wednesday, December 15, to blend clean hydrogen energy with natural gas to heat 800 homes near Point Lookout. National Grid officials said the project – among the first in the nation –
will expand the town’s hydrogen facility, using existing natural gas lines. The project is expected to reduce Hempstead’s use of fossil fuels and also power 10 hydrogen vehicles for the town and Nassau County. The company plans to invest $12 million in the next three years. The town also has a 100-kilowatt windmill and solar farm at Point Lookout.
Thailand: B-Grimm, Siemens join ecv’s LNG-to-power project in Vietnam
US-based Energy Capital Vietnam (ECV) on December 16 stated Thai B-Grimm Power and Siemens Energy have joined its consortium to develop an LNG-to-power project in southern Vietnam. B-Grimm Power intends to invest approximately
$200mn in equity at the financial close of the $1.75bn project. Siemens will deliver technology equipment into the project. Further, Siemens is evaluating to participate with construction equity to the project.
ECV will form a joint venture with commodity trader Gunvor to supply LNG on a long-term basis. The project will comprise a 1.5mn metric ton/year regasification terminal and a 3.2-GW gas-fired power plant and associated facilities. The country is promoting gas-based power as it moves away from coal and oil-based generation.
Germany: Innovative hydrogen fuel cell hybrid set to be used for inland shipping
A new hydrogen fuel cell unit developed by the RiverCell consortium has passed safety testing and will now look to be implemented into the German maritime sector. Offering a unique hybrid design, the fuel cell system will operate
for inland vessels providing a method to decarbonise this sector of European transportation. The system itself features energy storage combined with sustainable fuel cell-powered energy production that can both increase safety and efficiency within the shipping sector. By bringing a new fuel cell system specifically for the maritime sector, it enables the optimisation of the hybrid system to ensure that it can bolster the inland shipping sector.
Belgium: Belgian hauler bets on bio-methane certificates to boost green transition
Belgian transport company Van de Poel bets on the certificates for bio-methane to speed up this transition, and has increased the share of bio-methane in its fleet of trucks running on LNG.
At first, the certified share of bio-methane will be 25%. But the company plans to scale up and increase the share of biogas as the project evolves. Along with the certificate is a Proof of Sustainability that gives the carbon footprint calculated according to the EU’s Renewable Energy Directive (RED II), from the feedstock to the production of the fuel. With certificates and the Proof of Sustainability it is possible to offer a verified carbon footprint reduction with traceability along the value chain.