NGS’ NG/LNG SNAPSHOT – OCTOBER 2019, VOLUME I
National News Internatonal News
NATIONAL NEWS
City Gas Distribution & Auto LPG
IGL took piped gas to record 2 lakh homes, added 54 CNG stations in 2018-19
Indraprastha Gas Limited (IGL) has rolled out more than two lakh new PNG (piped natural gas) connections and expanded its CNG (compressed natural gas) network to 500 stations by setting up 54 new outlets in 2018-19, company chairman Gajendra Singh told shareholders on Monday (Sept 23).
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Singh, who is also director (marketing) of state-run gas utility GAIL, said the company will invest Rs 1,170 crore in 2019-20 to build new CNG stations and create pipeline infrastructure in its present and prospective markets. The rapid netwrok expansion pushed by company MD ES Ranganathan has made IGL the largest CNG retailer in the country and raised its total installed compression capacity to over 84 lakh kg per day. Simply put, higher compression capacity means the company can fill more vehicles in lesser time. CNG sale to industrial and commercial customers too grew 13% during the last financial year under the watch of director (commercial) Amit Garg. The company is now looking to consolidate its position in existing areas and foray into new geographical areas. durng the last fiscal, IGL won authorisation to set up city gas network in three new geographical areas Kanpur (except area already authorised) Hamirpur and Fatehpur in UP, Kaithal in Haryana and Ajmer, Pali and Rajsamand in Rajasthan. Singh said IGL is constantly improving its consumer interface by leveraging information technology in all its operations as the price differential between CNG and alternate fuels will continue to drive conversion of petrol-driven private vehicles. IGL has added new features to its ‘IGL Connect’ app to improve the consumer experience and convenience. IGL is also working on plans to set up LNG/LCNG stations, provide consultancy services in setting up CGD projects, manufacturing of gas meters, promote use of natural gas in home appliances and also explore new business avenues.
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Ahmedabad to get 300 new CNG buses as demand for public transport rises
The city will get about 300 new CNG buses to cater to increased demand for public transport, said sources in Ahmedabad Municipal Corporation (AMC). The decision was taken during the meeting of Standing Committee on Thursday.
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The move is expected to meet the increase in demand of public transport after the traffic department of city police began a crackdown on vehicles following the recent amendments in the Motor Vehicle Act, which has resulted in hefty fines for vehicle owners. “We will get about 300 new CNG buses. Soon tenders will be floated for it. These will ply on routes of Ahmedabad Municipal Transport Service (AMTS),” said Amul Bhatt, Chairman of Standing Committee of AMC. The purchase of 300 CNG busses is expected to give a boost to AMTS service, which has been a victim of neglect by AMC in recent years, especially after the rollout of Bus Rapid Transport System (BRTS) in 2009. Poor maintenance and involvement of private operators have resulted in masses shying away from the service, which was once a lifeline of the city. Bhatt said that the decision was taken because there has been a spurt in the usage of public transport following the enforcement of rules of amended Motor Vehicles Act, although he failed to give the details of the rise in the users of public transport in the city. It is also expected that with the crackdown likely to be more severe, users will shun their private vehicles and start using public transport service. The additional buses are being ordered to cater to this scenario. Recently, AMC had inducted 50 electric buses into its fleet on the BRTS route. It has ordered a total of 300 electric buses for the route. The move is a part of the initiative to promote the use of electric vehicles to reduce the pollution caused because of vehicles running on fossil fuel.
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PMC urges autorickshaw owners to switch to CNG
The Pune Municipal Corporation (PMC) has urged autorickshaw owners to convert their vehicles to Compressed Natural Gas (CNG). The civic body would extended financial assistance to those, who fit CNG kits to their autorickshaws, a statement issued by PMC said.
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The civic body has spent around Rs 1 crore in this regard so far. The money was spent mainly on giving subsidy for the CNG kits. “The issue of pollution can be solved to some extent by taking small measures like converting the autoricshaws into CNG. It is an environment friendly fuel. More and more autorickshaws should do away with the traditional fuel options. It will help in reducing carbon emission,” said a senior official of PMC. The civic officials said that each autorickshaw driver will get Rs 12,000 as aid. The initiative was started in 2011. The Supreme Court appointed Bhure Lal committee directed all civic bodies to make autorickshaws ply on either LPG or CNG. PMC has been spending around Rs 50 lakh per year to fund the conversion. As per the Regional Transport Office and Maharashtra Natural Gas Limited (MNGL) the subsidy has been helping drivers. Around 95 per cent autorickshaws running on city roads are fitted with CNG kits.
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10 CNG pumps to come up in Karnal
In a major push to compressed natural gas (CNG) in the district, Indraprastha Gas Ltd (IGL),
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a company which has been assigned the project of establishing CNG stations and piped natural gas (PNG) connections to households, commercial and industrial customers by the Union Petroleum Ministry, will set up 10 more CNG stations in the district in next two years. So far, four CNG stations are functioning one at Kohand, one near Gharaunda, one at Jhanjhari and one at Samanabahu on National Highway-44. The company will start two more CNG stations by the end of October one will be functional near Gharaunda and another on the Kunjpura-Newal road. “Apart from these four functional CNG stations, we have set a target to start 10 more CNG pumps in the district in the next two years. Two will be functional by the end of October while the sites for the remaining are being identified,” said Ankush Jain, Regional Head (Karnal and Kaithal) of IGL. Apart from the CNG pumps, they have already laid the pipelines for the supply of PNG to Sector 4, 5, 6 and 13 for domestic connections and in Sector 3 for industrial connections. “So far, we have given PNG connections to around 1,800 households. Connections to industrial areas will be given by the end of March 2020,” he said. “In the coming two years, we will give 6,000 PNG connections to households,” he asserted. He said that CNG and PNG were eco-friendly natural gases which not only help in keeping the environment clean, but are also cheaper than conventional fuel. Natural gas is lighter than air and it mixes with the air in case of leakage. This step will reduce the burden on gas agencies. Vinay Pratap Singh, Deputy Commissioner, said that the district authorities are providing all kind of help to the company as CNG is a clean gas. This step would help in checking increasing pollution.
https://www.tribuneindia.com/news/haryana/10-cng-pumps-to-come-up-in-karnal/835842.html
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95% coal, oil-driven industries switched to CNG in 3 months: Delhi govt think tank
Ninety-five per cent of Delhi’s coal and oil-driven industries have switched to CNG-operated systems in the last three months, according to a report of government think tank Delhi Dialogue Commission. The panel submitted the report to Chief Minister Arvind Kejriwal recently.
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Of the 1,542 coal and oil-driven industries in Delhi, 1,457 have shifted to compressed natural gas (CNG). The government has been making efforts to convert another 85 industries into CNG-adaptive, a statement said. At a meeting held earlier this week, Chief Minister Arvind Kejriwal had discussed with several industrialists the benefits of switching to CNG. He had also assured the industrialists about provisions of grants and compensation for making the shift. “The Kejriwal government is committed to eliminating industrial pollution from Delhi. It is through strategic proposition and determined steps that 95% of the oil-driven industry has shifted to CNG-operated systems,” the statement read. “With the efforts of the Delhi government, air pollution in the city has reduced by 25% in three years. Delhi is the only state in the country to record a reduction in air pollution,” Kejriwal said.
Delhi’s Environment Minister Kailash Gehlot said, “95% of the industries are now operating on CNG. We are aiming to bring this figure to hundred per cent.”Earlier, the Delhi government had prohibited the use of petroleum, tyre oil, and other types of polluted chemicals in all types of industries except thermal power plants.The closure of coal-based power plants in Rajghat in May 2015 and in Badarpur in October 2018 has also aided in reducing pollution in Delhi, the statement said. The Delhi Pollution Control Committee had also announced compensation for conversion of chemical-powered industries into CNG in 2017-18. Under the scheme, a compensation of Rs 50,000 was given to small and medium industries and Rs 1 lakh to big industries. According to data from The Energy and Resources Institute and Automotive Research Association of India, industries contribute 22 per cent to air pollution (PM 2.5) in Delhi in the summer and 30 per cent in the winter.
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UP: IGL gets city gas licence for Hapur
Indraprastha Gas Ltd (IGL) has won a licence to retail CNG to automobiles and piped cooking gas to households in Hapur district in Uttar Pradesh (UP), officials said.
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The government had in June 2010 given IGL a city gas distribution licence for UP’s Ghaziabad district. Hapur was at that time part of Ghaziabad district. But a year later, Mayawati-led government in the state carved out Hapur as a new district. Since then, IGL had to confine its work to Ghaziabad district only. Officials said the Petroleum and Natural Gas Regulatory Board (PNGRB) has now decided to give IGL the licence for Hapur as well. With a modest beginning in 1998, IGL is now one of India’s biggest city gas distribution (CGD) companies in the country. It retails CNG to automobiles and piped cooking gas to kitchens in Delhi and adjoining cities of Noida, Greater Noida, Ghaziabad, Meerut, Shamli, Muzaffarnagar (in Uttar Pradesh), Gurugram, Karnal, and Rewari (in Haryana). State-owned GAIL (India) and Bharat Petroleum Corp Ltd (BPCL) are promoters of the company in which Delhi government is also a shareholder with 5 per cent stake. The company has also received authorisation from PNGRB to set up CGD network in geographical areas of Kanpur (except areas already authorized), Hamirpur & Fatehpur districts, Kaithal district and Ajmer, Pali & Rajsamand districts. The company has two associates which also operate as CGD companies. Central UP Gas Limited (CUGL) caters to the cities of Kanpur, Bareilly, Unnao and Jhansi in Uttar Pradesh and Maharashtra Natural Gas Limited (MNGL) caters to the city of Pune and nearby areas of Pimpri, Chinchwad, Chakan, Talegaon and Hinjewadi in Maharashtra. IGL has 500 CNG stations through which it retails gas to 10.7 lakh vehicles, with an average sale of 31.34 lakh kg per day in 2018-19, according to company’s latest annual report. Besides, it supplies piped natural gas to 11.02 lakh households and 4,276 commercial and industrial consumers. It also has a pipeline infrastructure of 13,028-km within its CGD operations. Officials said IGL was also recently permitted to take over the CGD activities in entire Gurugram district from Haryana City Gas Distribution Pvt Ltd.
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CNG and LPG vehicle market to exhibit increased demand in the coming years
Vehicle engine which uses liquid petroleum gas (LPG) or compressed natural gas (CNG) as a secondary fuel are termed as CNG and LPG vehicle. Internal combustion engines running on LPG or CNG are well-proven technologies and work similar to conventional fuel-powered spark ignition engines.
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Both LPG and CNG are mostly used in spark-ignition engines for bi-fuelled vehicles (vehicles that can operate on more than one fuel type). CNG and LPG are also getting popularity in compression-ignition engines based vehicle such as diesel operated heavy-duty vehicles. On the basis of vehicle type, the global CNG and LPG market can be categorized in three broad segments namely passenger cars, light commercial vehicle market, and others. On the basis of fuel type the market is further segmented in LPG and CNG. The LPG and CNG vehicle is gaining penetration in developing countries attributed to low-cost of CNG and LPG over rising prices of petroleum products. In addition CNG and LPG operated vehicles are considered as a green alternative of petroleum operated vehicles. The bi-fuel options offered by LNG and LPG vehicles make them one of the preferred choices among end user, mainly in terms of saving in running costs. Moreover cost benefits of CNG and LPG coupled with significant carbon emission reduction is expected to increase the LPG and CNG market globally. Asia Pacific is the largest market for CNG and LPG vehicle followed by Europe and North America. Iran, India, and Pakistan are the major market of CNG and LPG vehicles in Asia pacific. Italy is the largest market of CNG and LPG operated vehicle in Europe. The current growth is highest in Asia Pacific and it is expected that price conscious consumers coupled with increasing crude oil prices in this region will keep the growth rate steady during the forecasted period. The strict emission standard by European Union (EU) is driving the market of CNG and LPG in Europe. Some of the leading global players operating in original equipment manufacturing (OEM) market of CNG and LPG include, Fiat S.P.A., Ford Motor Company, General Motors, Hyundai Motor Group, Suzuki Motor Corporation, Volkswagen and Honda Motor Co., Ltd. Some of the leading aftermarket players include, Landi Renzo, Impco, Venchurs, Westport, and Tomasetoo Achile. The report covers geographic segmentation North America Europe Asia RoW The report provides the market size and forecast for the different segments and geographies for the period of 2010 to 2020 The report provides company profiles of some of the leading companies operating in the market The report also provides porters five forces analysis of the market.
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BEST to have CNG refuelling points at depots
BEST on Tuesday (Sept.17) announced plans to set up CNG refuelling stations at 27 bus depots in association with Mahanagar Gas Ltd as the fleet size of CNG buses will be increased by 27%.
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BEST committee also cleared another proposal to procure 500 AC midi CNG buses on Tuesday morning, before the poll code sets in. This is in addition to 1,847 CNG buses already in the fleet. Panel member Bhushan Patil (Congress) said, “It is good to have so many CNG buses, but BEST should plan routes properly so that maximum buses are deployed on busy routes, and people don’t have to wait for 30-40 minutes for a bus.” BEST general manager Surendrakumar Bagde said the fleet will get 37 women-exclusive buses, Tejasvini, in a few days. ” We will decide mainly office-going and busy routes where they can cater to women,” Bagde said. He said the 500 new CNG buses will be in addition to 500 AC mini diesel buses cleared on Monday.
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‘Gas Leak’ in Mumbai’s suburbs creates panic; Locals unhappy with MGL’s response
Mumbai: Rumours of gas leak had sparked in the city’s western and eastern suburbs on the intervening night of Thursday & Friday after several resident reported an unknown odour emanating in their vicinity to the Mahanagar Gas Limited (MGL) and Brihanmumbai Municipal Corporation (BMC).
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A total of 29 complaints were received by the 1916 control room regarding an unknown odour, which has considerably reduced now.Reportedly, the odour started emerging after 10 pm from places like Chembur, Mankhurd, Govandi, Chandivali, Powai, Ghatkopar and Andheri.After taking the cognisance of the complaints, the natural gas distribution company MGL said that emergency teams have spread out to sites from where complaints have been received.”Apart from the nine fire engines, four emergency vans of MGL have been mobilised. If you still notice the odour please dial 1916 gas leak,” the MGL said. On being asked about the breach in the pipeline system, MGL said, “So far we have not come across any breach in our pipeline system which could result in leakage of gas.”When asked for a comment, BMC commissioner Pravin Pardesi said, “We have deployed 9 fire engines from Deonar, mankhurd, chamber, vikhroli, dindoshi, vile parle, kandivali, dahisar and malad to check leakage of unknown gas. Unconfirmed information of some leakage in RCF chembur our fire engine is dispatched to check any possibility of leakage of unknown gas. MGL has mobiles their 8 mobile emergency van to check leakage of PNG/CNG gas.NDRF also on site”.Meanwhile, BMC tweeted that it has received complaints from citizens about an odour of some unknown gas in eastern and western suburbs. “MCGM has mobilized all concerned agencies. For any queries, please call 1916,” it said.The locals were unhappy with the response of MGL in the matter.Speaking to ANI, a Mumbaikar said, “When he came out of his house he realised that severe odour like the gas leak is getting spread in the area. When I tried to contact MGL, the company’s landline numbers were not reachable. It was shocking for us that how this firm deals with its customers at a time of emergency. It is becoming harder for us to breathe.” However, the Mumbai residents said that the BMC was very kind and ensured them that all measures are being taken to prevent an emergency-like-situation.
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Electric Mobility
Indian Oil Corporation in talks with Hindalco to source aluminium for EV battery unit
Indian Oil Corporation Limited (IOCL) is in talks with Hindalco Industries Limited to source aluminium for its proposed one GW (gigawatt) aluminium air battery facility as the State-owned entity looks for an alternative to lithium-ion batteries.
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This move is in tune with the government’s strategy to facilitate the adoption of electric vehicles (EVs) in India to cut the fuel import bill. Confirming the development, a senior official of Hindalco Industries told, “They have approached us. We are in talks with them. It’s at an initial stage. They are developing it in joint venture with an Israel firm.” Last year, IOCL had signed an initial pact with Israel’s Phinergy Ltd. for developing ultra lightweight metal-air batteries that can be used in EVs. Aluminium air battery is said to be much cheaper, lighter and available in abundance compared with the lithium-ion batteries and ideal for EVs. Besides, aluminium air battery for an EV has a long-lasting regenerative cathode with a very high ‘energy density’ that can be stored and provided for the car. “The battery what we see today, probably is not the only answer. We don’t have a single grain of lithium in India. So, if we are looking at EVs in a very big way, we have to look at something that is indigenously available,” Sanjiv Singh, chairman, IOCL, said after the AGM of the company last month.
https://www.khabarindia.in/indian-oil-corporation-talks-hindalco-source-aluminium-ev-battery-unit/
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E-vehicles push will clean up Delhi air?
Delhi will need to register about 5 Lakh new electric vehicles (EVs) to meet the target set in the Arvind Kejriwal government’s draft EV policy in next five years, a report has said. Nearly 1,000 electric vehicles are expected to be part of the pilot over the next year.
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Delhi will need to register about 5 Lakh new electric vehicles (EVs) to meet the target set in the Arvind Kejriwal government’s draft EV policy in next five years, a report has said. The Policy released last year to kickstart the adoption of eco-friendly vehicles to curb vehicular pollution aims at having 25 percent share of EVs among the new vehicle registrations in the Capital by 2024. “Over their lifetime, these EVs are estimated to avoid approximately Rs 6,000 Crore in oil and liquid natural gas imports and 4.8 million tonnes of CO2 (carbon dioxide) emissions, equivalent to avoiding CO2 emissions from nearly 1 Lakh petrol cars over their lifetime,” said the report “Accelerating Delhi’s Mobility Transition: Insights from the Delhi Urban Mobility Lab” by the Dialogue and Development Commission (DDC), a Delhi government think tank and Rocky Mountain Institute, submitted transport minister Kailash Gahlot on Monday (Sept. 16). The report proposes 10 actionable solutions to accelerate Delhi’s mobility transition by summarizing discussions and suggestions from a 200-person workshop that was held on June 26-27, 2019 in Delhi to develop sustainable mobility solutions for the city. “As Delhi looks to take ambitious steps towards inducting large number of electric buses and taking leadership in fighting air pollution, this report will become an important reference point for all our agencies on the various reforms needed to ensure a successful transition to electric vehicles,” Gahlot said. Jasmine Shah, Vice Chairperson, DDC said, “Investing in clean mobility is investing in the health of the people of Delhi and that is why the government is keen on playing a significant role in catalyzing and easing the city’stransition to electric mobility,” The proposed solutions in the report range from policy, institutional, technical, and financial interventions that can help support rapid adoption of EVs and other urban mobility solutions in Delhi.
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All buses in India will switch to electric in next 2 years: Nitin Gadkari
All buses in the country will switch to electric over the next two years without the government having to impose transition to cleaner sources of mobility,
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Union Minister of Road Transport and highways Nitin Gadkari said. “In the coming two years, all buses will be converted to electric,” Gadkari said at the national conclave on energy efficiency in micro, small and medium enterprises here on Monday (Sept. 23). “They will run on bio-CNG, ethanol, methanol,” Gadkari said, reiterating his firm stance on adoption of alternative sources of energy, without necessarily switching to electric vehicles. Gadkari has in the past said that the transition to electric mobility will come in its natural course of progression. “There is no need to make electric(vehicles) mandatory, or even ban petrol and diesel vehicles,” Gadkari said. Gadkari has been vocal about his support for India’s automotive industry currently facing its worst slowdown in two decades.
The ministry of road transport and highways led by Gadkari has also put on hold the deliberations on imposing strict deadlines for phasing out of petrol and diesel-run two and three wheelers in the country as proposed by Niti Aayog. The government’s policy think-tank in June had set a deadline for phasing out of petrol and diesel run two-wheelers and three-wheelers by 2023 and 2025, in a bid to promote electric vehicles in the country.
Source: ETEnergyWorld
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241 EV charging stations in Kolkata
Putting one charging station with five to six chargers including fast chargers involve an investment in the range of Rs 30 to 50 lakh. Power minister Shobhandeb Chattopadhyay strictly instructed that the city must have one charging station in every 3 square kilometers and one at every 25 kilometers on state and national highways.
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An EV charging station not only requires chargers but also lot of infrastructure like arrangement of space, cabling work, civil work and safety measures. This infrastructure will help EV motorists to roam around without having any tension of running out of charge. They have planned 115 EV charging stations in 3kmX3km area at Kolkata core, while 60 charging stations are being considered for state and national highways. Ten of them will be for heavy vehicles. WBSEDCL is the nodal agency for establishing public charging stations in the state along with fixing tariff and service charges for public vehicles. The tariff and service charges will be published soon. But the running cost of EVs will be between Rs 1 and Rs 2 per kilometer. A senior TERI official advised that the Electricity Regulatory Commission has to come up with different tariffs in peak and off-peak hours to manage the impact on the grid. Because more and more electric vehicles will come into picture in the coming days.
Source: electricvehicles.in
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Gas/ Pipelines/ Company News
Tiruvallur-Bengaluru R-LNG pipe: Green nod for forest diversion
The National Board for Wildlife (NBWL) has approved diversion of forest land, for laying a 297 km long underground R-LNG (Regassified-Liquid National Gas) pipeline from Tiruvallur to Bengaluru, passing through Tamil Nadu, Andhra Pradesh and Karnataka.
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This section of pipeline will evacuate R-LNG from the Indian Oil Corporation Limited (IOCL) LNG import terminal at Ennore and deliver natural gas to consumers located across Tiruvallur, Bengaluru, Pondicherry, Nagapattinam, Madurai and Thoothukudi. The pipeline will have to pass through Palamner forest in Koundinya Wildlife Sanctuary, which is essentially an elephant reserve, in Andhra Pradesh, for 6 km length, requiring 4.641 hectares. NBWL has approved diversion of 4.641 hectares of the protected area. Authorities said the reconnaissance survey was carried out for three alternate routes and it was observed that the possibility of avoiding the forest is nearly nil. Hence, the best route was selected, which will pass through least forest land,” officials of Southern Region Pipelines, IOCL, said. Further, officials said IOCL already has its 290 km long Chennai – Bengaluru product pipeline which is in operation since March 2010. This pipeline also passes through Palamner forest for about 6.4km length i.e. 4.6 hectares of forest land. The approval under Forest Conservation Act, 1980, has already been obtained for this pipeline, from the Union Environment Ministry. Hence, it is proposed to route the upcoming Tiruvallur to Bengaluru pipeline through the already acquired Right of Way (RoW) of 7 metres inside the Palamner forest, for which both, forest clearance and environmental clearance, has been obtained. The `5,150 crore-LNG terminal, which is a first-its-kind facility on the East Coast in South India, at the Kamarajar Port, was inaugurated by Prime Minister Narendra Modi in March this year. It promised to usher a green wave in south-east India as natural gas will effectively replace naphtha, and fertiliser industries can directly use natural gas as feed stock for production of urea. The pipeline will have to pass through Palamner forest in Koundinya Wildlife Sanctuary, which is essentially an elephant reserve, in Andhra Pradesh, for about 6 km length, requiring 4.641 hectares. NBWL has approved the diversion of 4.641 hectares of the protected area.
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PM’s Urja Ganga pipeline prompts Essar to double gas output from Raniganj block
The Essar group is to double production of gas from Raniganj East CBM (coal bed methane) block in West Bengal, encouraged by the year-end commissioning of Prime Minister Narendra Modi’s proposed eastern energy lifeline ‘Urja Ganga’ that will connect consumers in the region.
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Essar Oil and Gas Exploration and Production (EOGEPL) has currently limited production to about 0.5 MMSCMD of gas as pipeline capacity is not available to transport higher volumes to consumers. The company plans to ramp up the production to more than one million cubic metres per day once the Urja Ganga is commissioned, a senior company executive said. This would be the highest production of natural gas trapped between coal seams from any block in the country. The company has invested Rs 4,000 crore in the Raniganj project, which encompasses drilling 348 wells, setting up the supply infrastructure, and laying pipelines to Durgapur and nearby industrial areas. “We have already produced 1 mmscmd gas from this block, which is the highest by any player in the sector. However, sustaining production at that level is unfeasible without the GAIL pipeline being commissioned. This is why we are producing far lower quantities of gas than we are capable of,” the executive said. The executive said EOGEPL is also planning to drill additional wells in accordance with the approved field development plan for the block.The additional wells will enable the company to ramp up production to a peak of 2.3 mmscmd in the next few years, he said. The Urja Ganga gas pipeline links Jagdishpur in UP to Haldia in West Bengal and Bokaro in Jharkhand and Dhamra in Odisha. The pipeline is being commissioned in phases and the last leg is scheduled for completion by December 2019. This will help gas supplies to reach four fertiliser plants in Gorakhpur, Sindri, Barauni and Panagarh, besides more than two dozen towns where city gas distribution rights have been awarded recently. The total demand in the region is envisaged at about 20 mmscmd.
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Policy Matters/ Gas Pricing/Others
Govt bans use of coal in hotels in 6 cities of State
Very soon use of coal for preparing meals will not to be allowed in open eateries, hotels and restaurants of six cities of the State. Instead, promoting and giving access to LPG and electricity to low-income neighbourhood as well as to road side eateries, dhabas and restaurants is on cards.
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And there will be total coverage of households by distribution of Liquefied Petroleum Gas (LPG) or Piped Natural Gas (PNG) and leveraging programmes like Ujjwala in these cities. Enforcement of a complete ban in garbage burning in public and legal action are to be taken against open burning of tyres, biomass and other substances. These are some of the action points of the State Government, which are included in the action plan to ensure clean air in the polluted cities. With poor air quality raising serious concern on public health system in six cities of the State, action plan has been charted out for taking up implementation of the same in these urban nodies. Cities like Angul, Bhubaneswar, Cuttack, Talcher, Baleswar and Rourkela are facing worst air pollution and the National Green Tribunal (NGT) has expressed concern of its significant impact on public health. Looking at the grim scenario, the State Government has chalked out a detailed action plan to be implemented in these six cities of the State and implementation is being done on “Top Most Priority” basis. The action plan involves several departments including those of Forest and Environment, Energy, Police, Transport, Urban Development, Works and State Pollution Control Board (SPCB). The ambient air quality in all these six cities is constantly remaining above the National Ambient Air Quality Standards (NAAQS). Various action points include providing access to natural gas pipelines for all residential and commercial use, solar rooftop policy implementation, running busses in cities through generation of bio-gas from waste and sewage. Creation of appropriate eco system for growth of electric vehicles in the cities is another action point, said sources. Banning and phasing out diesel auto-rickshaws and introduction of CNG and electric auto-rickshaws are on cards. The SPCB will not allow any polluting industries inside the cities and will carry out pollution hot spot monitoring. Pollution hot spots will be identified and those places will be monitored regularly. Local area action plan for pollution hot spots will be chalked out so that actions will be taken up locally. There will be a total restriction on brick kilns within urban airshed zones during high-pollution periods.
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India’s stuttering economy hits global oil demand
India’s oil consumption is growing well below its long-term trend as the country struggles with a widespread economic slowdown, including a slump in new vehicle sales. The slowdown is part of a worldwide economic deceleration, which is weighing heavily on the motor industry.
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But because India has been so important for growth in oil demand over the last two decades, its downturn is materially shifting oil’s global production-consumption balance and weighing on prices. India’s slowdown threatens to trim at least 100,000 barrels per day (bpd) from global consumption growth in 2019, helping push world growth down to 1 million bpd or less this year. In the last two decades, India’s consumption increased at an annual average rate of around 5% compared with a worldwide average of 1.5%, making the country a major source of incremental demand. It accounted for almost 13% of worldwide consumption growth between 1998 and 2018, rising to 18% between 2013 and 2018 (“Statistical Review of World Energy”, BP, 2019). But the country’s consumption was up by just 1.45% in the three months from June to August compared with the same period a year earlier, down from more than 8% year-on-year at the start of 2018. Gasoline, used by private motorists, is now growing less than 10% year-on-year, down from more than 13% in the first quarter of last year, according to the Ministry of Petroleum and Natural Gas. Diesel, used for moving road and rail freight, as well as on farms and in small-scale power generation, and the fuel most closely linked to economic activity, is increasing by just 1.3%, down from more than 9% in early 2018.
India’s economy has slowed sharply this year owing to a broad-based slowdown in business investment and household consumption (“World economic outlook update”, IMF, July 2019). Domestic passenger vehicle sales in the three months to August were down by nearly 27% compared with the same period last year, the sharpest fall for at least 16 years. Falling sales have led to tens of thousands of layoffs by domestic motor manufacturers, parts makers and distributors, which are rippling through the rest of the economy and labour market. Lower sales will also translate into slower growth in the vehicle fleet and fuel consumption, especially gasoline, over the next year.
India’s central bank has cut interest rates four times so far in 2019 and the union government has announced an ambitious package of corporate tax cuts to stimulate the economy. Until the economy recovers its momentum, however, it will remain a major drag on the global oil market and prices.
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Gas prices set to fall
Lower raw material costs for compressed natural gas and natural gas piped to households. The domestic natural gas prices in the country are set to fall around 4.5% to $3.52 per MMBtu from October following a drop in prices at the global gas hubs.
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The prices of domestic gas produced were raised by 10% to $3.69 per MMBtu from April 1. According to the new pricing formula approved by the NDA government in October 2014, prices are to be revised every six months. The reduction in natural gas prices would mean lower raw material costs for compressed natural gas (CNG) and natural gas piped to households (PNG) and would translate into a reduction in retail prices. It would also mean lower feedstock cost for power generation and the manufacturing of fertilisers. The gas prices are revised twice a year based on global hub formula. However, the lower price could impact the topline of state-owned firms such as ONGC and Oil India, which produce 83% of the domestic gas. Other producers such as Reliance Industries, Vedanta and Hindustan Oil Exploration Company would see their revenue go down. “We believe the price of domestic natural gas for the second half of 2019-20 will fall from the current $3.69 per MMBtu to approximately $3.52 per MMBtu, resulting in a 4.6 per cent decrease in prices,” analysts with Care Ratings said. They estimated that a decrease in natural gas prices can potentially lead to a 2% decrease in the cost of production of urea, thus easing the pressure on the fiscal spending of the government while disbursing the urea subsidy.
https://www.telegraphindia.com/business/gas-prices-set-to-fall/cid/1707322
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LNG Development and Shipping
Petronet LNG signs USD 2.5 billion deal to take stake in US LNG plant
Petronet LNG Ltd, India’s biggest liquefied natural gas importer, has signed a preliminary deal to buy a stake in Tellurian Inc’s proposed Driftwood project in Louisiana and import 5 MMTPA of LNG. The deal is worth about USD 2.5 billion, sources privy to the development said.
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“Tellurian Inc. and Petronet LNG Ltd announced (September 21) that the two companies have signed a Memorandum of Understanding (MOU) wherein Petronet and its affiliates intend to negotiate the purchase of up to five million tonnes per annum (5 mtpa) of liquefied natural gas (LNG) from Driftwood, concurrent with its equity investment, which remains subject to further due diligence and approval of its board of directors,” the US firm said in a statement. Tellurian and Petronet will endeavour to finalise the transaction agreements by March 31 2020, it said. The firm’s President and CEO Meg Gentle said, “Petronet, India’s largest LNG importer, will be able to deliver clean, low-cost, and reliable natural gas to India from Driftwood.” The Driftwood project includes natural gas production, gathering, processing, and transportation facilities, along with Driftwood LNG, a proposed 27.6 MMTPA liquefaction export facility that will be located near Lake Charles, Louisiana on the US Gulf Coast. In April, the US Federal Energy Regulatory Commission (FERC) issued the order granting authorisation for Driftwood LNG and the 96-mile Driftwood Pipeline, which will inter-connect the LNG terminal to the US natural gas market. Petronet and Tellurian had first signed a broader agreement in February. Tellurian is offering an equity interest in Driftwood Holdings, which comprises Tellurian’s upstream company, its pipeline and the upcoming terminal in return for a commitment to offtake gas. At present, state-owned GAIL India Ltd has 20-year LNG contracts to buy 5.8 million tonnes per year of US LNG, split between Dominion Energy Inc’s Cove Point plant and Cheniere Energy Inc’s Sabine Pass facility in Louisiana.
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US gas deal rejected once
Global LNG prices have nosedived in the recent past and the landed cost of spot LNG at Indian shores is hovering around $5.5 per MMbtu. The fine print of Petronet’s agreement with Tellurian will explain
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why the Indian PSU chose to overcome its strong reservations over the terms of the deal that it eventually signed with the US company. Petronet on Saturday (Sept 21) signed an MoU with Houston-based Tellurian under which the Indian company will invest $2.5 billion for a 20 per cent equity stake in the US firm’s Driftwood project and import 5 MMTPA of LNG for 40 years. Industry sources said the issue was discussed at the company’s board meeting around April-May where the members felt the company should not go ahead with the deal because of the changing global gas market dynamics as the fuel was available in abundance at rock bottom prices. Locking imports for 40 years together with an equity investment in the LNG terminal was not a favourable option, they said. Petronet’s promoters, including GAIL India Ltd, Indian Oil Corp and Oil and Natural Gas Corp, were against the deal. These state-owned firms are promoters of Petronet with a government representative as its chairman. However, sources said one has to wait for the fine print for the gas price or the formula to know the rationale behind signing the pact this time. The sources pointed out that deal was far from closed and only a “non-binding MoU” has been signed to “explore the possibility of purchase of LNG from the Driftwood project. The process is subject to due diligence and approval of the respective board of directors.” Global LNG prices have nosedived in the recent past and the landed cost of spot LNG at Indian shores is hovering around $5.5 per MMBtu.
https://www.telegraphindia.com/business/us-gas-deal-rejected-once/cid/1707060
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Fears of balance sheet stress leave Petronet LNG investors jittery
Petronet LNG Ltd’s shares fell 5% Monday(Sept23) on the National Stock Exchange after it said it has signed a non-binding memorandum of understanding (MOU) with Tellurian Inc.
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Sure, the management’s assurance during an investor call that Petronet’s equity investment in Tellurian would be limited up to $1 billion has helped sentiments a bit. Further, Petronet has said that it will enter into back-to-back contracts with off-takers to avoid any volume or pricing risk, which brings comfort. But Petronet’s shares are still about 3% lower this week. Note that capital allocation has been a key concern for the stock for a while now. In that sense, investors should have welcomed the development. However, fears of potential stress on the balance sheet if Petronet does not receive any help from its affiliates still weigh on the stock, say analysts. Petronet, along with its affiliates, will invest $2.5 billion to purchase up to 5 million tonnes per annum (mtpa) of liquefied natural gas (LNG) from Tellurian’s Driftwood project. The Driftwood project is setting up a 27.6 million tonne LNG liquefaction capacity, gas transportation pipelines and development of upstream reserves, slated to start commercial production in 2023. Petronet exceeded volume estimates for the June quarter. Analysts expect the company to report strong volume numbers for the September quarter as well. Not surprisingly, despite the weakness in the stock this week, Petronet shares have outperformed the Nifty 200 index so far this calendar year.
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Indian Oil Corp seeks LNG cargo for second half of October delivery
The cargo is sought for delivery at the Ennore terminal on India’s east coast. Indian Oil Corp is seeking a liquefied natural gas (LNG) cargo for delivery in the second half of October, two industry sources said on September 16.
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The cargo is sought for delivery at the Ennore terminal on India’s east coast. The tender closes on September 19, the sources said.
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Natural Gas / Transnational Pipelines/ Others
EU on edge as Russia and Ukraine restart gas talks
Russia and Ukraine are scheduled to restart their gas transit negotiations today in Brussels, with the mediation of EU officials.
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The negotiations are closely watched as they concern the stability of natural gas supply to Europe. While tensions between the two neighbors remain, Bloomberg reports there have been signs of a warming between Kiev and Moscow that might make the talks easier and lead to a mutually beneficial result. “It’s hardly possible to agree on all conditions of the future contract in just one day, there will be many iterations in this process, and bargaining is likely to last until the end of the year.” Gazprom’s gas transit contract with Naftogaz Ukrainy, which was the object of an arbitrage at a European court, expires at the end of this year and the new one needs renegotiating in light of the court ruling by the Stockholm Arbitration Court. Gazprom has been obliged to pay Naftogaz US$2.56 billion for failing to supply Ukraine with the agreed amount of natural gas over a period of several years, and also for failing to pay the full transit fees for the gas it did pump in that direction. The Ukrainian company’s victory was pyrrhic, however: of the original US$4.63 billion in payments due by Gazprom, the Stockholm court ruled that only US$2.56 billion would actually be paid out to Naftogaz, as Naftogaz had previously been ordered to pay about $2 billion to Gazprom for arrears. The court also obliged Naftogaz to buy 5 billion cubic meters of natural gas from the Russian company annually starting in 2018. Now, the focus will be on supply amounts. The EU and Ukraine want Gazprom to continue shipping most of its gas for Europe via Ukraine. Gazprom, however, is building Nord Stream 2 precisely for the purpose of reducing its reliance on Ukraine as a transit partner, which is hardly surprising in light of the court saga. Meanwhile, both Naftogaz and Gazprom are preparing for a worst-case scenario. Gazprom is stockpiling gas in European storage facilities, while Ukraine has contracted future deliveries with European traders, Bloomberg reported.
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As Houston prepares to say ‘Howdy, Modi’, US gas producers eye deals
Prime Minister Narendra Modi’s imminent visit to the US energy capital is fuelling speculation the second most-populous nation will further tap America’s shale gas bonanza.
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PM Modi is scheduled to address upwards of 50,000 people at a sold-out event at Houston’s NRG Stadium on September 22 that’s billed by organizers as the largest-ever turnout for a foreign elected leader on US soil. Energy investors, however, are keenly focused on what happens behind the scenes. A long-running trade war between Washington and Beijing has meant China hasn’t imported any American supply since February. The dispute has also put plans for new export terminals at risk. By contrast, India is open to making purchases, and the nation is already the sixth-largest buyer of US liquefied natural gas.The event comes just weeks after PM Modi sat with Russia’s Vladimir Putin to explore shipping Arctic natural gas to the subcontinent. Heightening expectations is the timing of PM Modi’s Texas pilgrimage: it will come only a few days after Gastech, one of the world’s premier methane-industry confabs. Still, India has been slower than some other economies to divorce itself from coal, and that may be a hindrance to gas-import arrangements, said Madeline Jowdy, an analyst at S&P Global Platts. “I am so skeptical of India,” Jowdy said. “‘I’m not saying that Indian companies can’t and won’t invest” in gas imports, but coal is entrenched and supports a lot of jobs. Tellurian Inc., which is developing a $28 billion liquefied natural gas terminal in Louisiana, is optimistic. The company is seeking to finalize a deal to sell an equity stake in the project to India’s Petronet LNG Ltd., Chief Executive Officer Meg Gentle said in a September 5 interview in New York. The firms signed a memorandum of understanding in February for the Driftwood LNG terminal. State-controlled Gail India Ltd was among the early buyers of US LNG, locking in a 20-year contract for supply from Cheniere Energy Inc’s Sabine Pass terminal in Louisiana. The South Asian nation took in 4.7 per cent of the LNG that has been exported since early 2016, according to data compiled by Bloomberg.
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US natural gas in underground storage rises by 84 Bcf: EIA
US working natural gas volumes in underground storage rose 84 Bcf last week, more than most of the market expected, as the NYMEX Henry Hub prompt-month contract and winter strip plummeted following the announcement.
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Storage inventories increased to 3.103 Tcf for the week ended September 13, the US Energy Information Administration reported Thursday(Sept 19) morning. The injection was more than an S&P Global Platts’ survey of analysts calling for a 76 Bcf build. It was at the high end of the survey range as responses spanned from 71 Bcf to 85 Bcf. The build was equal to the 84 Bcf injection reported during the corresponding week in 2018, but just above the five-year average of 82 Bcf, according to EIA data. As a result, stocks were 393 Bcf, or 14.5%, above the year-ago level of 2.710 Tcf and 75 Bcf, or 2.4%, above the five-year average of 3.178 Tcf. The NYMEX Henry Hub October contract fell 8.1 cents to $2.556/MMBtu following the announcement. The winter strip dropped 7.34 cents to $2.708/MMBtu. Comparing the weekly EIA ranges for cash prices, cash prices were up across the board week on week outside the West. The biggest mover was the Waha hub, which was up nearly 40% as congestion relief from Gulf Coast Express Pipeline has allowed that market to recover. For the week in progress, total US supply shows virtually no change while demand is down by 1.2 Bcf/d week on week, according to S&P Global Platts Analytics. Reductions in gas-fired power generation burn occurred along the East Coast and Texas, where temperatures fell on average about 1.5 degrees. The Southeast featured the largest weekly losses at 0.8 Bcf/d compared with the Northeast and Texas at 0.6 Bcf/d and 0.2 Bcf/d, respectively. Storage inventories look to rise 79 Bcf and 88 Bcf over the next two weeks, according to a Platts Analytics forecast. These bulky builds would continue to reduce the ever-shrinking deficit to the five-year average. The EIA has only reported two injections less than the five-year average since March. Both occurred in July, as hot weather drove demand. Over the past five years, the final injection of the season, on average, was the week ended November 8. Eight more net injections remain before the flip to heating season if the average holds true. If stocks add the same amount as the five-year average over said time frame, 552 Bcf, peak storage would hit 3.655 Tcf. The five-year end-of-season average is 3.73 Tcf. But weekly storage injections so far this season are averaging 29% above the five-year average. If this continues through season’s end, stocks will peak at 3.8 Tcf. With recent builds coming in closer to average, the final volume will likely be somewhere between 3.6 and 3.8 Tcf.
https://www.hellenicshippingnews.com/us-natural-gas-in-underground-storage-rises-by-84-bcf-eia/
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Total eyes shale oil for growth in Argentina on concern of low gas prices
Total, the second-largest producer of natural gas in Argentina, plans to focus on its oil assets there on concerns that an oversupply of gas could drive down prices to unprofitable levels.
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The French company has slowed its development of Fenix, an offshore block in the far south with capacity to produce 10 million cu m/d, and is holding off on developing blocks in the dry gas window of Vaca Muerta, the country’s biggest shale play, Dominique Marion, director general of Total’s upstream unit in Argentina, said late Thursday (Sept 26). “We have a portfolio of oil projects, and today we are focusing on that,” Marion told S&P Global Platts on the sidelines of the Argentina Oil and Gas Expo in Buenos Aires. “We certainly see less risk today going into oil development than going into gas.” Argentina’s gas production surged 27% to a record 144 million cu m/d in July from a 16-year low of 113.7 million cu m/d in 2014, according to data from the Energy Secretariat. The growth, which the secretariat said this week notched up another 7.7% year-on-year increase in August, without providing the raw data, has returned the country to a surplus. Argentina’s average gas consumption was 123 million cu m/d in 2018, fluctuating between 100 million cu m/d in summer and 150 million cu m/d in winter, according to data from the Enargas, the federal gas regulator. The oversupply has forced producers to shut wells during the summer, while a transport bottleneck out of Vaca Muerta is starting to slow production growth. While producers have increased exports to a combined 7 million cu m/d this year to Chile from less than 1 million cu m/d in 2018 and started selling small amounts of LNG as well as building underground storage, the huge production potential of Vaca Muerta is raising concerns about future prices. “We want to see at what level the price will stabilize,” Marion said. “We have seen in the United States that gas can go to a negative price. We want to wait to see what the price of gas will be in Argentina because it could fall to negative prices.” Argentina’s gas prices have been running between $2.77/MMBtu and $4.66/MMBtu so far this year, according to the Energy Secretariat. The breakeven price for shale gas is above $3/MMBtu, most companies have said.
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Saudi oil production cut by 50% after drones attack crude facilities
Saudi Arabia shut down half its oil production Saturday after a series of drone strikes hit the world’s largest oil processing facility in an attack claimed by Yemen’s Houthi rebels.
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The closure will impact almost 5.7 million barrels of crude production a day, about 5% of the world’s daily oil production, according to Saudi Aramco. In August, Saudi Arabia produced 9.85 million barrels per day, according to the latest figures from the U.S. Energy Information Administration. Saudi Energy Minister Abdulaziz bin Salman said the attacks also led to a halt in gas production that will reduce the supply of ethane and natural gas liquids by 50%. Saudi Aramco President and CEO Amin Nasser said nobody was hurt in the attacks and emergency crews have contained the fires and brought the situation under control. “Work is underway to restore production and a progress update will be provided in around 48 hours,” Nasser said. Early Saturday, the Khurais oilfield operated by Saudi Aramco, the state-owned oil giant, and the Abqaiq oil processing facility were attacked by a number of drones. The facility at Abqaiq is crucial for global energy supplies. Yemen’s Houthi rebels claimed responsibility for the attack, saying it was one of their largest attacks ever inside the kingdom. “This is a big deal,” said Andrew Lipow, president of Lipow Oil Associates. “Fearing the worst, I expect that the market will open up $5 to $10 per barrel on Sunday evening. This is 12 to 25 cents per gallon for gasoline.” Lipow noted over four million barrels per day of Saudi oil exports go to Asia, while the U.S. imports about 600,000 barrels. The biggest importers in Asia are China at 1.3 million barrels and Japan at 1.2 million barrels.The International Energy Agency said Saturday it is “closely monitoring” the situation following the drone attacks, adding markets are “well supplied with ample commercial stocks.”
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Global LNG Development
Japan to pump $10bn into LNG as move away from Mideast oil
Japan’s public and private sectors plan to invest $10 billion to encourage broader use of liquefied natural gas around the world, Nikkei has learned, as mounting tensions in the Middle East underscore the dangers of relying on the region’s oil.
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Tokyo envisions funding such projects as processing plants, receiving terminals and power generation. Industry minister Isshu Sugawara will announce the plan at the annual LNG Producer-Consumer Conference here on Thursday (Sept.26). The $10 billion will include public-sector financing from bodies including the Japan Bank for International Cooperation, as well as investment from the state-backed Japan Oil, Gas and Metals National Corp., along with trading houses and financial institutions. The government owned Nippon Export and Investment Insurance will offer full coverage for LNG-related financing provided by foreign funds and other institutional investors. Japan has imported LNG for five decades and remains the world’s top buyer. Its companies have experience and expertise that will be valuable in markets such as China and Southeast Asia where economic growth is driving up LNG demand. The fuel offers a way for energy importers to reduce their traditional reliance on crude oil from a handful of countries clustered in the Middle East, where U.S. sanctions on Iran and the recent drone attack on Saudi oil facilities have raised questions about the supply outlook. Resource-poor Japan sources nearly 90% of its crude from the region. The risks with LNG supplies are spread out more widely. The Middle East accounts for 60% of global net exports of crude oil but just 20% of net LNG exports, data from the International Energy Agency shows. Other major sources include Russia, Australia and African nations, and the U.S. is becoming a player in the market as well. Japan will lay out plans at Thursday’s event to train 500 experts in such areas as LNG receiving technology and drafting of environmental regulations, in anticipation of stronger demand for the fuel. Tokyo set a similar goal at the 2017 meeting and expects to achieve it soon, well before the end of its five-year time frame.
The government previously promised $10 billion in support at the 2017 conference. It met this target with four large-scale projects, including LNG Canada — a joint venture of trading house Mitsubishi Corp., Royal Dutch Shell, Malaysia’s Petronas, PetroChina and Korea Gas — and Russian gas company Novatek’s Arctic-2 project, partly funded by Mitsui & Co.
Source: LNG Global
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South Korea to purchase US LNG worth $9.6b
South Korea’s state-run Korea Gas Corp. signed a long-term agreement with British energy company BP to buy US liquefied natural gas, the first LNG deal between the two countries under the Donald Trump administration, officials said on Tuesday.
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On Monday, Korea Gas Corp. signed a 15-year contract with BP in Washington to purchase 1.58 million tons of US liquefied natural gas on a yearly basis starting from 2025. The seller, BP, can extend the term for three years if desired. The signing ceremony was attended by Minister of Trade, Industry and Energy Sung Yun-mo, Korea Gas Corp. CEO Chae Hee-bong and BP’s global head of gas & power Robert Lawson. Under the 15-year contract, US LNG will be delivered from Freeport LNG terminal or Calcasieu Pass. The purchase price is estimated to be up to $9.6 billion for a total of 18 years of contracts, including the optional period, according to the ministry. The ministry said the volume of energy trade between South Korea and the US increased more than seven times from $1.3 billion in 2016 to $9.4 billion in 2018. Korea has also become the largest importer of US LNG in 2018 followed by Mexico and Japan. Last year, Korea imported 4.6 million tons of US LNG, which accounted for 10 percent of total LNG imports. “Through this long-term contract, the imports are expected to surge to 7.9 million tons by 2025 with an increased portion of 22.8 percent. We expect to see the expansion of energy trade between the two countries, the diversification of the natural gas adoption and the stability of natural gas supply,” said Yang Ki-wook, chief of the Industry Ministry’s gas industry division.On the same day, President Moon Jae-in met with US President Donald Trump in New York and told him, “We’ll be signing the deal to increase the import of LNG from America … so I believe that all of this will come to reinforce our already strong alliance.”
https://www.koreaherald.com/view.php?ud=20190924000603
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Pakistan gives green light to five LNG terminal plans
Pakistan has given the go-ahead to five consortiums, including Exxon Mobil, Royal Dutch Shell and Mitsubishi, to progress with their liquefied natural gas (LNG) terminal plans, a minister told Reuters on Friday (Sept.20).
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The move comes on the heels of the arrests of two Pakistan business executives involved in building the country’s previous LNG terminals, cooling sentiment in the industry. Pakistan is seen as a big growth market for the global LNG industry as domestic gas production slips in tandem with a growing industrial economy hungry for gas. But an anti-corruption drive by Prime Minister Imran Khan led to the arrests of a former boss of Engro, which built the first import terminal, and the chief of another company associated with a second terminal. Power and Petroleum Minister Omar Ayub Khan downplayed any impact the arrests may have had on investors’ sentiment, saying the interest from multinationals spoke for itself. The groups approved to progress are Tabeer Energy, a unit of Mitsubishi, Energas with partner Exxon; Pakistan GasPort and commodities trader Trafigura; Engro with partner Shell, and Gunvor with Pakistani conglomerate Fatima. Tabeer Energy, Engro and Energas already announced plans for the terminals which will be Floating Storage and Regasification Unit (FSRUs) vessels. These can be newbuild or converted LNG tankers, speeding up the delivery of the import projects. Exxon and Shell did not respond to requests for comment. Mitsubishi has project details on Tabeer Energy’s website. Engro, Fatima and GasPort were not immediately reachable for a comment. Trafigura declined to comment on the specific project but said it was “committed to grow and expand its existing regas (regasification) capacity” in Pakistan. The five groups must submit plans for the terminals to the ministry of ports and shipping by Nov 5 for approval, but cabinet has already approved them, Khan said, adding they could be in operation within two to three years. While the consortiums will pay for the construction of the terminals and royalty fees, Pakistan’s contribution will be to fund the building of a $2 billion north-south pipeline to distribute the gas, and storage facilities, he said.
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LNG exports continue to energise Australia’s economy
New figures released from the Australian Bureau of Statistics (ABS) have highlighted the role that liquefied natural gas (LNG) exports play in growing Australia’s economy.
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According to the National Accounts, resources and energy exports accounted for more than half of total growth in the June 2019 quarter with gross domestic product (GDP) growing by 0.5 percentage points. The value added by the oil and gas industry to the Australian economy increased to $34.5 billion in 2018-19, a jump of 19 per cent compared with 2017-18, according to the ABS figures. The main driver of this growth was increased production from new LNG facilities. The Australian Petroleum Production and Exploration Association (APPEA) Chief Executive, Andrew McConville, said this data reaffirmed the significance of LNG exports for Australia’s economic growth. “LNG exports are a vital source of strength for our economy and will provide decades of future growth and prosperity,” Mr McConville said. “The Australian oil and gas industry has invested more than $350 billion in the economy over the last decade, and this investment will deliver decades of growth, exports and jobs for Australia. “However, for the LNG sector to continue to thrive and be a key driver of the economy, exploration and development must be fostered not restricted – and industry must continue to have confidence to invest. “We have consistently highlighted that while governments may seek reforms to intervene in markets, it must be highlighted that any intervention is not without costs.” Mr McConville said if the industry can further explore and develop gas resources with far-sighted support from governments, Australia’s natural gas can continue to underpin a nation-building shift to a lower carbon, sustainable energy economy. “All governments should consider the ongoing economic, social and environmental benefits offered by a growing gas industry,” Mr McConville said.
https://utilitymagazine.com.au/lng-exports-continue-to-energise-australias-economy/
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Fortress Investment Group to lead global small-scale LNG liquefaction capacity additions by 2023, says GlobalData
Fortress Investment Group is expected to lead capacity additions from planned and announced (new-build) projects in the global small-scale liquefied natural gas (LNG) liquefaction industry between 2019 and 2023,
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contributing around 25% of global small-scale LNG liquefaction capacity growth by 2023, according to GlobalData, a leading data and analytics company. The company’s report, ‘Global Small-Scale LNG Liquefaction Capacity and Capital Expenditure Outlook – The US Leads Globally on Capacity Additions and Capital Expenditure Outlook’, reveals that Fortress Investment Group will have new-build small-scale LNG liquefaction capacity of 4,240 thousand tonnes per annum (ktpa) by 2023 from two announced projects. Adithya Rekha, Oil and Gas Analyst at GlobalData, says: “Browntown and Browntown II, both in the US, are the major announced small-scale LNG liquefaction terminals in Fortress Investment Group’s portfolio, each contributing a new-build capacity of 2,120 ktpa by 2023. Browntown is expected to commence operations in 2020 and Browntown II in 2021.” Following Fortress Investment Group, Gazprom will add the second-highest new-build small-scale LNG liquefaction capacity globally with 2,050 ktpa by 2023. The Portovaya LNG liquefaction terminal in Russia is the largest new-build LNG liquefaction terminal in the company’s portfolio with a capacity of 1,500 ktpa. The terminal is expected to start operations in 2019. Shaanxi Gas Group Co Ltd stands third globally with a new-build small-scale LNG liquefaction capacity of 1,400 ktpa. The Xi an terminal in China, which is expected to start operations in 2020, will account for the entire capacity additions in the company’s portfolio.
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Magnolia LNG project gets lift from capacity deal tied to Vietnam power project
Australia’s LNG Limited reached an agreement for its proposed Magnolia LNG export terminal in Louisiana to supply 2 MMTPA of LNG to support a gas-to-power project in Vietnam, the company said Sunday (Set. 15).
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The 20-year sale and purchase agreement, announced as the annual Gastech conference was preparing to get underway in Houston, gives a much-needed boost to Magnolia, which has struggled to reach a final investment decision despite having US regulatory approval and having offered capacity at a bargain compared with its peers. A previous offtake deal with another counter-party lapsed, leaving the Vietnamese agreement the only one currently in place. The development comes as US liquefaction projects that are part of the second wave of terminals proposed to start up in the early to mid 2020s face increasing competition for long-term offtake contracts to support construction of the multibillion dollar facilities. Those efforts have been complicated by the ongoing US-China trade tension, which within a decade is expected to become the world’s biggest importer of LNG. Magnolia in particular has acknowledged the impact that the tariffs Beijing has imposed on imports of US LNG have had on its commercial efforts. The tariffs have forced offtakers of US LNG to find other homes for their spot cargoes, and for developers of new projects to look for other buyers of long-term capacity. Vietnam is among the countries that has shown an eagerness to import more gas, including LNG, to support its power needs. Under the deal with LNG Limited, Magnolia will supply LNG to Delta Offshore Energy, which will in turn use the LNG to fuel a 3,200-MW combined-cycle power plant that has been proposed in Vietnam. The plant will deliver power generation to Bac Lieu Province under a power purchase agreement. The planned infrastructure in Vietnam, which is expected to start up in 2023 pending government approvals, is also to include an LNG import terminal. The SPA with Magnolia will last 20 years and can be extended, the companies said in a joint statement. The LNG will be sold on a free-on-board basis and will be linked to the US Henry Hub. Terms were not disclosed, though the companies said the SPA and PPA were in term sheet form and still needed to be executed. LNG Limited has been among the more aggressive in terms of pricing in trying to secure commercial deals for Magnolia.
In April, CEO Greg Vesey told S&P Global Platts that the company was willing to take as little as $2.35/MMBtu and 113% of Henry Hub to secure offtake agreements for its up to 8.8 MMTPA Magnolia project. The pitch and the public disclosure reflected the extra urgency LNG Limited has felt to secure foundation customers to advance the project to a final investment decision, potentially by the end of this year. The operator already has a permit certificate from US regulators and a fully wrapped engineering, procurement and construction contract. LNG Limited had previously planned to reach FID last year, but in October 2018 delayed that until this year amid China’s imposition of a 10% tariff on imports of US LNG. Those tariffs currently stand at 25%. Besides Magnolia LNG, the company also has proposed an export terminal in eastern Canada called Bear Head LNG. The company had previously said it continues to market capacity there, primarily to major Western Canadian Sedimentary Basin gas producers. The developer is in the process or changing its Australian domicile to the US.
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Germany’s Uniper seeks LNG from Woodside’s Scarborough project
Woodside Petroleum said on Wednesday it has signed a preliminary agreement to supply liquefied natural gas (LNG) to German utility Uniper for 13 years starting in 2021,
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contingent on Woodside developing its Scarborough gas project. Woodside said it would initially supply up to 0.5 MMTPA from its portfolio, rising to about 1 MMTPA from 2025 if it goes ahead with the Scarborough project off northwestern Australia. Woodside is looking to develop Scarborough to feed a new 5 MMTPA production unit, called a train, at its Pluto LNG plant in Western Australia. Uniper said the proposed deal was part of its plan to grow its LNG trading business in both the Atlantic and Pacific basins. Uniper Chief Executive Keith Martin said in a joint statement with Woodside that the preliminary agreement “is a further demonstration of the expansion of our portfolio in the region.” Woodside is hoping to make a final investment decision on Scarborough next year.
https://www.hellenicshippingnews.com/germanys-uniper-seeks-lng-from-woodsides-scarborough-project/
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Canada’s breakthrough LNG deal with China
Small deal with FortisBC and recent attacks in Saudi are a reminder that the People’s Republic is heavily dependent on imported oil and gas. It has been over two months since British Columbia (BC)
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utility firm FortisBC announced that it had secured Canada’s first term contract to supply liquefied natural gas (LNG) to China. It is also Canada’s first to Asia. In normal times, a breakthrough deal of this magnitude heralding the start of a new multi-billion-dollar industry would have sparked both public celebrations and a national debate over the outlook for Canada’s fossil fuel exports. While it is not an energy superpower along the lines of Russia or Saudi Arabia, Canada still owns nearly 10% of the world’s oil and gas reserves. Despite all the talk about the world facing an energy supply glut, most countries remain deeply fearful of supply disruptions. For now, Canada may seem to have little to offer China. But the attacks on the Saudi oil fields following on the FortisBC deal have served up a small but clear reminder that China might want to take a longer view of its own needs.
https://www.asiatimes.com/2019/09/article/canadas-breakthrough-lng-deal-with-china/[Edited]
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Natural Gas/LNG Utilization
NGVA Europe: LNG-powered trucks do reduce emissions
NGVA Europe and the Small Scale Gas Natural Business Association (Aesgan) shared statements addressing the environmental benefits of LNG-powered trucks, in response to a recent report published by Transport & Environment (T&E),
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entitled ‘Do gas trucks reduce emissions?,’ which ensures that trucks that run on LNG are more polluting than those that use diesel. NGVA and Aesgan claim that T&E missed to include an intermediate 2018 report from TNO (Netherlands Organization for Applied Scientific Research) in their analysis. The missing report which covers exactly the same vehicles, shows a reduction of NOx emissions by more than a factor 6 compared to diesel. A parallel experimental campaign running extensive road measurements over a period of 2 years demonstrated that natural gas trucks emit between 40% and 60% less NOx compared to their equivalent diesel models. The European and Spanish associations also remark the fact that the T&E analysis “confuses PM (particle mass) with PN (particles number). PM reduction of 95% compared to diesel is certified from public homologation data. PN emissions from spark ignited engines without filtering device, as correctly reported by TNO, result in line, and even lower, compared to diesel with DPF (Diesel Particulate Filter), according to NGVA. When looking to the typical mission profile of an LNG truck (“Motorway” mode), the measured reductions are even higher: 10% for spark ignited engines and 22% for HPDI technology. The associations that defend the use of natural gas in transport share the objective of moving towards a zero emission future. “Targeting net-zero emissions in the long run is a must. But this needs to happen combining a portfolio of clean solutions that, today, can match two main conditions: complying with customer and market needs, and being affordable and accessible,” says NGVA. “Without one of these two elements, we will not be able to make a positive impact on our environment and improve air quality in our cities. Natural gas is ready to take this challenge already today.”
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Washington, DC transit agency acquires 75 CNG buses
New Flyer of America Inc. announced an order from the Washington Metropolitan Area Transit Authority (WMATA) for 75 40-foot Xcelsior CNG buses.
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The new order replaces older, end-of-life vehicles and delivers on WMATA’s plan to improve transit service and reliability, while also increasing efficiency and sustainable mobility for residents in the capital region. “Since WMATA’s first Xcelsior arrived in 2011, we have continued to support its ridership growth with hundreds of safe, reliable, and efficient Xcelsior buses to keep America’s capital moving,” said Chris Stoddart, President, New Flyer. “With leading technology, buses, and infrastructure solutions, New Flyer is proud to support WMATA’s move toward sustainable mobility while offering greater reliability, increased capacity, and cleaner air for the Washington metro community.” New Flyer has delivered nearly 1,400 buses to WMATA since 2001, including low-emission CNG vehicles. New Flyer’s CNG buses reduce fleet NOx emissions by 90% over conventional diesel-powered vehicles, and since 1994, the company has delivered nearly 13,000 CNG buses across Canada and the U.S.
https://www.ngvjournal.com/s1-news/c3-vehicles/washington-dc-transit-agency-acquires-75-cng-buses/
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Climate crusaders aren’t buying natural gas propaganda
The much-touted conversion from coal- and oil-fired power generation to natural gas actually raises the greenhouse effect of energy consumption by around 40 % because of alarming methane emissions from gas,
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Berlin-based Energy Watch Group (EWG) said in new study. According to the authors of the study published this week, natural gas has often been touted as the ‘cleanest’ fossil fuel that could be the ‘bridge’ fuel toward a zero-emissions future. However, if methane emissions are considered in addition to the carbon dioxide (CO2) emissions, it turns out that natural gas actually accelerates climate change because of the methane emissions in the entire value chain from natural gas extraction to consumption. Natural gas not only increases the greenhouse effect, it also “creates obstacles to renewable energy sources, prevents a sustainable, emission-free economic system and blocks effective climate protection,” the study says. The study also slams the International Energy Agency (IEA) for downplaying the emissions effect from natural gas, and claims that the rapid expansion of renewable energies to 100% worldwide is the only viable option. “The IEA, which many governments regard as a reference for their energy policy decisions, deceives us with outdated figures and problematic assumptions about the actual climate impact of natural gas – with devastating consequences for our climate and the economy,” said Dr. Thure Traber, co-author and leading scientist of the EWG. “Existing and new subsidies for natural gas are incompatible with the Paris climate protection targets. Instead, we urgently need more investments in renewable energies, because only these have an immediate and lasting positive effect on the climate,” said Hans-Josef Fell, a former member of the German Parliament and President of the EWG. Earlier this year, a report from Global Energy Monitor said that booming liquefied natural gas (LNG) infrastructure around the world—with the U.S. and Canada accounting for 74 percent of proposed LNG export terminal capacity—poses “a direct challenge to Paris climate goals.” To this report, the Canadian Association of Petroleum Producers (CAPP) responded with a statement saying that “The conclusions of the Global Energy Monitor’s report are factually incorrect. Sharing these untrue statements is unacceptable. This is another deliberate attempt by a foreign-funded activist organization to discredit the Canadian oil and natural gas industry.”
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Norway: nearly 200 eco-friendly buses arrive in Trondheim
The new 189 MAN Lion’s City buses, in operation since the beginning of August, have been ensuring that residents and tourists of Trondheim, Norway’s third-largest city, arrive at their destinations safely, comfortably and, above all, in an environmentally friendly manner.
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The vehicles are powered with biogas and biodiesel, allowing the city to rely on efficient and clean solutions for inner-city traffic. MAN Truck & Bus delivered 105 city buses to Vy Buss AS and another 84 vehicles to Tide Buss AS. “We are delighted that the two largest transport companies in Norway put their trust in us,” said Rudi Kuchta, Head of Product & Sales Bus and Speaker Business Area Bus at MAN Truck & Bus. “The buses are powered with biogas or biodiesel, which means they fit in wonderfully with the quiet and natural environment in Trondheim – you just want to take in a deep breath of air!” The purchase includes the MAN Lion’s City (A21) model, a standard 12-meter bus that features an E2876 LUH Euro 6 natural gas engine. In terms of fuel, drivers can use both natural gas as well as biogas. It also includes the delivery of two variants of the 18-meter MAN Lion’s City G (A23) articulated bus: one with a D2066 LUH diesel engine in a special biodiesel version, and one with an E2876 LUH natural gas engine. Both variants fulfil the Euro 6 emission standard. The order also includes training for drivers as well as a service and maintenance contract. The deciding factor in awarding it to MAN Truck & Bus was, among other things, its many years of expertise in natural gas propulsion. “We have been driven by and focused on this subject for over 75 years,” said Jan Aichinger, Head of Product Marketing Bus. “By operating biogas vehicles, Vy Buss AS and Tide Buss AS are sending a clear message in regards to environmental protection. After all, a CNG bus running on biogas currently represents the most economical and environmentally sound solution for a virtually CO2-neutral form of public transport.”
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Northwest Europe’s first LCNG station opens in Belgium
Liqal has officially opened a new refueling station in Heverlee, Belgium. The site along the E40 is the first LCNG station in northwest Europe and shows the company’s commitment to
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switching from diesel to cleaner fuels for transport. Installed by LIQAL for Drive Systems, the facility has an LNG dispenser to supply trucks, one to serve CNG vehicles and a dedicated CNG dispenser to fill up tube-trailers. LIQAL first announced that it won the contract for the station in December last year. According to that statement, the development has received funding from the EU through its Connecting Europe Facility (CEF) program. According to LIQAL, Ninatrans – a Belgian transport company and pioneer in LNG-powered transport since 2015 – would be the launching customer for the station. “Alternative fuels as LNG are the future for road transport, but they must be easily accessible,” said Benny Smets, CEO of Ninatrans. Liqal has also deliver a flexible LNG station to Belgian transport company Remitrans. The cost-effective skid-mounted system is a prefabricated unit that kept construction time to minimum. Based in Ninove, Remitrans was looking for a quick-response solution to meet their existing fuel demands and provide a smooth transition for future growth.
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Canada backs Westport’s CNG storage system
Earlier this month, Canada’s Natural Gas Innovation Fund (NGIF) announced an investment of C$500,000 toward the development and testing of Westport Fuel Systems’ compressed natural gas (CNG) storage system.
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This initiative is part of a partnership with Natural Resources Canada (NRCan), Ford Motor Co. and Linamar Corp. On June 5, NRCan and Canada’s natural gas vehicle industry released an updated Natural Gas Use in the Medium and Heavy Duty Vehicle Transportation Sector roadmap, outlining progress to date in deploying natural gas vehicles, as well as further actions to support broader deployment. The report outlines a number of recommendations, including research and development into conformable fuel tank systems for CNG. Westport’s conformable CNG storage system demonstrates the value proposition of natural gas and renewable natural gas by advancing a technology that can deliver lower transportation emissions in the Canadian truck market, says NGIF. “Using more natural gas in the transportation sector will help reduce operating and fuel costs and lower emissions,” comments Amarjeet Sohi, minister of NRCan. “By supporting this revolutionary storage technology, together with the private sector, our government is helping Canadian companies that own trucking fleets adopt cleaner fuel sources without compromising their day-to-day efficiency.” “Funding support from the Natural Gas Innovation Fund enables Westport Fuel Systems to develop our new and novel conformable CNG storage technology,” notes Jim Arthurs, executive vice president of Westport Fuel Systems. “Natural gas engines offer one of the cleanest and most economical options available for pickup truck customers today. This key investment in conformable CNG storage will further accelerate the deployment of NGVs in the Canadian market. ”
https://ngtnews.com/canada-backs-westports-cng-storage-system
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LNG as a Marine Fuel/Shipping
Japan: first LNG bunkering operation in the Port of Kobe
Organized by the Kobe City Port and Harbor Authority, Mitsui O.S.K. Lines, Ltd. (MOL) has participated in the LNG bunkering trial of the tugboat Ishin, an LNG-powered vessel owned by MOL and operated by Nihon-Tug-Boat Co., Ltd.
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This marks the first LNG bunkering in the Port of Kobe, and the successful trial confirmed that LNG fuel can be effectively supplied safely at the port. LNG was hauled by a tanker truck from the Himeji LNG Plant of Osaka Gas Co., Ltd. and, via a truck-to-ship system, was used to supply Ishin, berthed at Kobe Port’s Shinko Pier No.4. MOL Marine Co., Ltd. has also provided maritime consulting in the trial. Effective January 2020, vessel exhaust emission regulations will be tightened on a global scale. In response to the new standards, an increasing number of LNG-fueled vessels are coming into service, making the development of LNG bunkering ports in Japan an urgent task. MOL Group companies are working together to promote the wider adoption of LNG as marine fuel and reduce environmental impact through the safe operation of Ishin. The Ishin’s excellent environmental performance – including an estimated 25% reduction in CO2 emissions in comparison to tugs that run on fueloil – earned the top rating of four stars from the Ministry of Land, Infrastructure, Transport and Tourism’s energy-saving rating program for Japan’s costal ships.
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CMA CGM unveils LNG-fueled box ship giant
CMA CGM, a French container transportation company, has launched the world’s largest liquefied natural gas (LNG) powered container ship.
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The CMA CGM Jacques Saade, named after the group’s founder, is the first in a new fleet of nine French-flagged, 23,000-TEU capacity LNG-powered container ships that the carrier will deploy next year on Asia-Europe services. As reported in Freight Waves, the shipping industry is under heavy pressure to reduce its carbon emissions. Those calling for zero-carbon shipping view LNG as a transition fuel – a far better option than marine fuels currently in use, but one that still delivers a sizable carbon footprint. CMA CGM claims that using LNG will help reduce emissions of sulfur oxides and fine particles by 99%, nitrogen oxides emissions by up to 85% and carbon dioxide emissions by around 20%. “With the launching of the first 23,000-TEU ship powered by liquified natural gas, we demonstrate that energy transition can be effectively successful in our industry if all the players work together,” said Rodolphe Saadé, chairman and chief executive officer of the CMA CGM Group. “It paves the way to a global shipping approach where economic growth and competitiveness can coexist with sustainability and the fight against climate change.” The nine newbuilds are each 400 meters long and 61 meters wide and will feature a state-of-the-art bridge design and a smart system to manage ventilation for the reefer containers carried in the hold. “To further improve the environmental performance of the CMA CGM Jacques Saade and her sister ships, their hull forms have been hydrodynamically optimized,” said a CMA CGM statement. “The bulb has been seamlessly integrated into the hull profile and the bow is straight. The propeller and rudder blade have also been improved.”
https://www.freightwaves.com/news/cma-cgm-unveils-lng-fueled-box-ship-giant
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LNGonWheels: innovative distribution system for LNG carriers
Following the successful development of DirectLinkLNG® in 2018, Naturgy launched LNGonWheels®, an innovative system that allows the discharge of LNG from an LNG ship to land without the need for facilities at destination.
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The technology, recognized by the Spanish Patent and Trademark Office with the granting of the “LNG Liquefied Natural Gas Transportation and Distribution System” patent, offers a solution for the problems of LNG supply in those areas where either there are no facilities of storage and distribution of this energy or its construction is not profitable. The LNGonWheels® system consists of a device that has an innovative module (the core of the patent) to unload LNG from an LNG vessel to a tanker truck barge (patented in early 2019), which moves to land. Once the fuel has been distributed among the tank truck final customers, the barge returns to the LNG vessel to restart the process. “This innovative system involves a very important reduction of the environmental impact, since it implies its incorporation into the logistic chains, which these difficult access areas already have, for the maritime supply of other essential goods, thus not being necessary the move of large LNG ships to the ports,” said José Miguel Moreno, head of LNG Projects, Engineering & Technology, Naturgy. “It is also more attractive, since it makes it possible to displace other much more polluting fuels, carrying natural gas to very difficult access points and thus contributing to fostering the transition to a low-carbon economy where natural gas will play a fundamental role,” Moreno added. The LNGonWheels® solution was devised by the Naturgy team of professionals who created DirectLinkLNG® and was subsequently developed by the technical team of the LNG Projects unit until obtaining the “Approval in Principle”, granted by the prestigious Classification Society American Bureau of Shipping (ABS), and is having a great reception from both potential customers and the sector.
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ABS, SHI to develop next generation LNG carrier
ABS, the global provider of classification and technical advisory services to the marine and offshore industries, announced that it is collaborating with South Korean shipbuilder
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Samsung Heavy Industries (SHI) on a next generation LNG carrier in a joint development project (JDP) signed today at Gastech 2019.“ABS is a leader in gas carriers with a proud record of supporting innovation, delivering operational efficiencies and advancing the cause of safety. This exciting project with SHI for a state-of-the-art vessel represents the next step in that journey,” said Patrick Ryan, ABS Senior Vice President Engineering and Technology.“ABS classed the world’s first LNG carrier and today continues to lead global gas carrier classification,” he added.“SHI has introduced advanced LNG carriers to the market successfully with industry leading partners such as ABS,” said Jong H Youn, Vice President of SHI.“In this JDP we will focus on the examination and realization of future technologies with SHI’s most advanced LNG carrier design to meet current and future market demand,” Youn added.The JDP sees SHI deliver the concept and basic design for a next generation LNG carrier which will incorporate an advanced air lubrication system for improved efficiency. In addition, the concept will incorporate smart-ship technologies. ABS will carry out design review of the structure and arrangements.ABS has extensive experience with the full scope of gas-related assets and has been the classification society of choice for some of the most advanced gas carriers in service.ABS provides industry leadership and offers regulatory and statutory guidance on projects related to LNG floating structures and systems, gas fuel systems and equipment, gas carriers and barges.
https://www.maritimeprofessional.com/news/develop-next-generation-carrier-350764
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VT Halter Marine builds cutting edge vessel
VT Halter Marine, a ship building company, based out Mississippi, has just completed the first vessel of its kind ever built in America. The tug and barge will deliver liquefied natural gas. The project is a big step forward for shipbuilding in South Mississippi.
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The 324-foot barge and tug, built in Pascagoula, revolutionizes both the shipping and the energy sectors. Its completion has made history. “It’s the first built-in-America offshore LNG bunkering barge. It can refuel ships. It can also refuel ship-to-shore,” said VT Halter Marine President and CEO, Ron Baczkowski. With VT Halter Marine constructing the barge and tug, South Mississippi’s shipbuilding industry is making a statement. “To go back and tell the rest of the country what we do right here in Jackson County… The quality, dependability, reliability and national security,” said Senator Cindy Hyde Smith. Proud shipyard workers were joined by Congressman Steven Palazzo and Senators Hyde-Smith and Roger Wicker at the naming ceremony, a maritime tradition. The contract was awarded in 2017, and the owners, Q-LNG out of New Orleans, is now taking possession. The barge will carry 4,000 cubic meters of liquefied natural gas around the Gulf of Mexico and the Caribbean. Natural gas is replacing oil more and more every day. “It’s cleaner and greener. It’s the fuel of the future for the next 30 or 40 years until we learn how to do something else that’s even more abundant and how to use it and get the technology on the forefront of being able to use that,” said Q-LNG CEO, Shane Guidry. The barge was named the Q-LNG 4,000. The project is a by-product of the Jones Act, also known as the Merchant Marine Act, which was passed in 1920. It means shipyards like VT Halter can continue to profit from projects like this. “It’s there to protect America’s merchant-marine lift and industrial shipbuilding capabilities by requiring ships that go from American port to American port or go up the Mississippi River. They have to be crewed, owned, constructed and flagged by Americans,” Representative Steven Palazzo said. Some cruise ships are transitioning to natural gas from diesel fuel. Q-LNG has a contract with Carnival Cruise Lines to service its two new dual-fuel ships. The barge will launch in October and arrive in Port Canaveral, Florida in the first quarter of 2020.
https://www.wlox.com/2019/09/17/vt-halter-marine-builds-cutting-edge-vessel/
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Qatar Petroleum and Shell in LNG marine fuel venture
Qatar Petroleum and Shell) agreed on Wednesday (Sept. 18) to establish a partnership to accelerate the development of liquified natural gas (LNG) fuelling infrastructure around the world.
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“The joint venture between the two companies will invest in LNG marine fuelling, bunkering vessels and other infrastructure in key locations to meet the needs of marine customers and help to reduce emissions of the global shipping industry,” a Shell statement said. “These locations will leverage existing Qatar Petroleum and Shell supply positions and complement current Shell marine LNG bunkering locations in Europe, Asia and North America.”
Source: LNG global
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Technological Development for Cleaner and Greener Environment Hydrogen & Bio-Methane
Cummins bets on hydrogen fuel cell technology with new acquisition
Cummins Inc. has closed on the previously announced acquisition of Hydrogenics Corporation. “Hydrogenics is one the world’s premier fuel cell and hydrogen production technologies providers and their expertise and innovative approach will strengthen Cummins’ fuel cell capabilities.
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This is another step forward as we continue to invest in a broad range of clean, fuel-efficient and high-performing products and technologies that deliver value to our customers,” said Tom Linebarger, Chairman and CEO, Cummins Inc. Cummins began developing its fuel cell capabilities more than 20 years ago and the acquisition of Hydrogenics with Air Liquide’s support accelerates Cummins’ ability to further innovate and scale hydrogen fuel cell technologies across a range of commercial markets. Owning both fuel cell and hydrogen generation from electrolysis capabilities will enable the company to offer a full, differentiated hydrogen solution, from start to finish, seamlessly integrated for customers. “Air Liquide and Cummins have a shared vision of the key role that hydrogen plays in the energy transition. As a shareholder, and more widely as a company, Air Liquide is highly supportive of a hydrogen-based society,” said Pierre Etienne Franc, CEO, The Hydrogen Company. “The two global companies, leaders in their sector, have complementary expertise in the development of hydrogen energy. Thanks to Cummins’ investment, we believe Hydrogenics technologies will be able to accelerate significantly their development.” Hydrogenics will report under Cummins’ Electrified Power Business Segment, led by Thad Ewald, Vice President – Corporate Strategy, and its operations will continue to be headquartered in Mississauga, Canada. The acquisition was completed for approximately $290 million. Air Liquide will own approximately 19% of the company while Cummins maintains an approximately 81% ownership and will fully consolidate the entity in its financial statements.
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Two new bio-LNG truck stations open in southern Sweden
Gasum has opened two new natural gas stations in Sweden, one is located on a site leased from IKEA’s Torsvik warehouse, in Jönköping, and the other in Örebro, where Gasum also has a biogas plant. Both facilities offer LNG and bio-LNG for heavy-duty vehicles.
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In addition to Jönköping and Örebro, Gasum’s stations that are already operational in Sweden can be found in Västerås and Norrköping. “The expanding filling station network supports logistics companies operating in Sweden that want to reduce their carbon footprint. Jönköping station has a great location near Torsvik’s IKEA warehouse along the main highway in Jönköping. In addition, it’s a good continuation to the circular economy cooperation Gasum has with IKEA Finland,” said Mikael Antonsson, Director, Traffic, Gasum Sweden. At Örebro, there is also a Gasum biogas plant, which through its adherence to circular economy principles, produces renewable energy and manufactures ecological biofertilizer from biodegradable feedstocks, mainly originating from the local agricultural sector. Gasum is planning to invest in developing the existing biogas plant in Örebro into liquefaction of the biogas to increase production capacity. Gasum is planning to create a network of around 20 filling stations for heavy duty vehicles in Sweden and Finland by the end of the year, with 12 of the sites to be located in Sweden, and to introduce a total of 50 new stations in the Nordics by the early 2020s. The new facilities are targeted to the long-haul transport segment, where energy consumption is highest, and will be located in high-traffic areas, enabling significant increases in the use of LNG and bio-LNG in heavy-duty transport. “Customer demand for cleaner fuels for HDVs is increasing rapidly, which is why we at Gasum, together with our partners, are focusing on developing the natural gas infrastructure and filling station network across the Nordics. For logistics companies, LNG and bio-LNG are a necessity in the transition to a carbon neutral future. At the same time, they enable significant savings in fuel costs,” added Antonsson.
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Wisconsin’s first biogas processing and interstate injection plant opens
With over three decades of experience in landfill waste-to-energy projects, DTE Biomass Energy, subsidiary of DTE Energy, has opened its first and the state of Wisconsin’s first combined dairy renewable natural gas processing and interstate injection facility.
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The site, located in Newton, Wisconsin, processes raw biogas piped from nearby partner farms into natural gas, and also receives the biofuel trucked in from other dairy farm-based DTE facilities. From there, pipeline-quality the fuel is injected directly into the interstate pipeline. “This injection and processing facility is an important milestone for us,” said Kevin Dobson, vice president of business development, DTE Biomass Energy. “DTE’s dairy biomethane production has grown tremendously over the last several months, and now we have a central location and efficient means for continuing the operation and growth of these and other dairy projects.” Converting waste manure to biomethane is a win-win, both for dairy farms and the local environment. Leaving manure to decompose naturally on farmland releases methane directly into the atmosphere. Capturing this gas instead reduces the farms’ overall greenhouse gas footprint, provides the farms with another revenue stream and helps create a clean, sustainable vehicle fuel that displaces fossil-based gasoline or diesel fuel. “Nearly 20,000 cows throughout Wisconsin are contributing to these projects,” added Dobson. “Their waste was once a farmer’s burden, but now it’s a sustainable and clean source of energy.” DTE is currently constructing four more facilities in Wisconsin, partnering with Statz Bros. Inc, Kinnard Farms, and Milk Source at both their Rosendale and New Chester farms. The projects expect to begin processing biogas in early 2020. DTE Biomass will have seven DTE-owned and operated facilities when these projects are complete.
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