a drop of Rs. 2.25 per kg, effective April 9, it said. SGL has reduced gas price for its PNG Domestic customers also by Rs. 1 per SCM effective April 9. The revised PNG price shall now be Rs 27.70 per SCM. The price reduction shall benefit over 2 lakh vehicle owners and over 1.85 lakh residents across district of Gandhinagar, Sabarkantha, Arvalli, Mehsana &Patan, a statement from SGL said.

https://economictimes.indiatimes.com/industry/energy/oil-gas/sabarmati-gas-limited-slashes-rates-of-cng-and-png/articleshow/75066170.cms

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after the government slashed the natural gas prices by a steep 26% by benchmarking it against rates prevalent in gas-surplus nations. Prices of natural gas, which is used to produce fertilizer, generate electricity and gets converted into CNG for use in automobiles and piped natural gas for household cooking, was from April 1 cut to $ 2.39 per MMBtu – a rate about 37% lower than the cost of production. “These rates are unsustainable for us. We have already told the government that the gas pricing should be freed. There should be complete pricing and marketing freedom,” ONGC Chairman and Managing Director Shashi Shanker told PTI here. Oil Minister Dharmendra Pradhan, in a written reply to a question in the Lok Sabha on March 20, 2017, had stated that the cost of production of natural gas in the prolific Krishna Godavari basin is between $ 4.99 -7.30 per MMBtu. The same for other basins is in the range of $ 3.80 -6.59 per MMBtu, he had said. For ONGC, which produces most of its 64 MMSCMD from western offshore, the breakeven is around $ 3.8. For every $1 dollar change, the company’s revenues are impacted by Rs 4,400-4,500 crore annually. On April 1, the gas price was reduced from $ 3.23 per mmBtu to $ 2.39 – an 84 cent reduction which translates into annual Rs 4,000 crore of revenue loss. The price of gas produced from difficult fields such as deepsea too has been cut to $ 5.61 from $ 8.43 per MMBtu. This would just about breakeven ONGC’s new production from KG Basin. ONGC is India’s largest integrated oil and gas company, accounting for 75 per cent of crude oil and natural gas production by volume, and 17 per cent of domestic refining capacity.

https://www.business-standard.com/article/pti-stories/ongc-to-lose-rs-4-000-cr-on-new-gas-price-seeks-freeing-of-gas-prices-120040200739_1.html

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as the unprecedented nationwide lockdown evaporated demand and created transportation hurdles.The state-owned gas utility first cut capacity of the 400,000-tonnes-a-year polyethylene plant at its Pata complex by half as two-thirds of trucks that used to transport finished products to users stopped operations soon after the lockdown was imposed, sources privy to the development said. But with polymers it produces filling every inch of space in its godowns, GAIL last week shut the plant, they said, adding the company continued to operate the LPG production unit at Pata to meet the cooking fuel demand in the country. Polymers/polypropene finds usage in a broad range of industries such as textiles, packaging, stationery, plastics, aircraft, construction, rope and toys. The firm had previously shut the 210,000-tonnes-a-year high density/linear low density polyethylene swing plant since March 25. Several petrochemical plants in India have been forced to shut down since a nationwide lockdown was imposed from March 24 until April 14 to fight the fast spreading coronavirus. The lockdown shut factories that made plastics products and packing material using polymers produced at plants such as GAIL’s Pata unit. Also, the petchem units faced labour shortage as migrant labourers returned home. The lockdown has also hit trucking operations, hampering transportation of finished goods. The lockdown has also hit trucking operations, hampering transportation of finished goods. Major producers, including Indian Oil Corporation Ltd., Bharat Petroleum Corporation Ltd., and Haldia Petrochemicals Ltd. have reduced production or shut units in an effort to balance inventory against the sharp drop in domestic demand. While Indian Oil is on the verge of shutting down its 800,000-tonnes-a-year cracker at Panipat in Haryana due to low demand, Haldia Petrochemicals has closed its steam cracker and polymer units, sources said.BPCL has reduced operating rates at its refinery-linked petrochemical units in Kochi and Mumbai to less than a third. ONGC Petro Additions is reducing operating rates at its high-density polyethylene and linear low-density polyethylene production lines at Dahej in Gujarat.Mangalore Refinery and Petrochemicals Ltd. shut its 440,000-tonnes polypropene plant at Mangalore. Indian Oil also shut its 700,000-tonnes polypropene plant at Paradip in Odisha.It was not clear if Reliance Industries Ltd., which operates crackers and downstream units producing paraxylene, purified terephthalic acid, monoethylene glycol and polymers, has also reduced operating capacity. Officials are hopeful that even if the lockdown is not lifted completely, some industries such as petrochemicals units will be allowed to resume operations as the material they make is used not just in packing of medicines and medical equipment but also find usage in personal protective equipment.It remains to be seen how fast the plants can get back into production considering it may take some time for workers to return and for logistics and transportation to resume normal operations.

https://www.bloombergquint.com/business/gail-shuts-pata-petrochemical-plant-on-demand-offtake-issues

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soon as fertiliser plants increase production ahead of the sowing season and electricity generation expands to meet increasing air-conditioning needs with rising temperature, said a senior executive. “Demand for gas will only rise from hereon, although only gradually,” said an executive, who did not want to be identified. The demand expansion would happen despite an extension of lockdown, he said, explaining the demand recovery would come mainly from fertiliser and power plants, two biggest consumers of gas in the country.

GAIL and its customers are also seeking to cautiously manage their cash flows to avoid any future financial turbulence due to economic uncertainties induced by the lockdown. “Most of our customers are paying on time but some, mainly small customers, have sought an extended payment period. We too have requested our suppliers for making payments with some delay. This is just to balance our cash flow,” said the executive. For GAIL, the biggest demand hit came from city gas companies that mainly supply to small industries and compressed natural gas (CNG) vehicles. CNG vehicles receive cheap domestic gas supply and as they went off the roads during lockdown, domestic production of gas too had to be reduced. “Luckily for us, fertiliser and power customers are still taking about 90% of the committed volume while many in other sectors or smaller industries are shut,” said the executive. Plants will have to increase production now so that fertiliser reaches farmers in sufficient quantities ahead of the sowing season that begins in May, he said.

Lack of transport facilities has hurt evacuation of output from fertiliser plants during lockdown, cutting production, but some easing is now on the cardsThe government has extended the nationwide lockdown until May 3 but part easing for some areas may be considered in a week. The farm sector is likely to get a softer treatment as the sowing season is approaching and any obstruction in the agriculture cycle can hurt national food productionPower demand may also pick up on increased home air-conditioning demand with the onset of summer. This may boost fuel demand from gas-fired power plants as well. Domestic and imported natural gas are currently available at record-low rates, an inducement for gas-based power plants to increase utilisation.

https://economictimes.indiatimes.com/industry/energy/oil-gas/gail-expects-gas-demand-to-pick-up-soon/articleshow/75145258.cms

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this week from around 70% at the end of last week. Rates have fallen as gas consumption has taken a sharp hit following the Indian government’s restrictions on business and industrial activity and road travel to halt the spread of the coronavirus. The state-controlled, Petronet-operated terminal will continue to operate but at much reduced rates, with pipelines linked to the terminal already running at capacity and storage capacity almost at its maximum, a Petronet official said. And, consequently, only a few vessels are expected to arrive at Dahej this month. “A few cargoes may still be required and it is likely that Petronet will look to see how to maximize utilisation of the terminal under the current circumstances,” said an official at state-owned BPCL, which owns capacity at Dahej. “But regasified LNG demand from Dahej has fallen by at least 30pc since the lockdown. In March, we and our customers were just taking whatever was allocated to meet month-end sales targets but this is going to be very difficult in April. ” Dahej operated at an average 104.2pc between April 2019 and February 2020, according to data released last month from the Petroleum Planning and Analysis Cell (PPAC). The terminal is capable of receiving around 24 cargoes a month at nameplate capacity, assuming a cargo size of around 60,000t. Industry participants expect that while term deliveries will be postponed to a later date, spot cargoes purchased earlier this year for delivery in April, and possibly May, will most likely be delayed or diverted to alternative markets instead of being deferred to a later date. Industry participants expect any cargo discharge delays could take as long as a week for cargoes already sailing towards India. Indian importers secured around 13 spot cargoes for delivery in April, around four of which specified Dahej as a possible discharge outlet.

Source: Indian Oil & Gas/Argus

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Production from Shell’s 488m-long showpiece off the Kimberley coast shut down in February and is not expected to recommence until the third quarter of 2020.

Boiling Cold understands that Shell has shut-in most of the subsea wells to reduce gas flow, but the Prelude is still receiving more gas than it can consume. The Prelude emitted 2.32 MMT of greenhouse gases in the 12 months to June 2019 for just one shipment of LNG. The Prelude first received gas from its subsea wells in December 2019 but has been powered by gas from as early as June 2018 when it received a load of LNG.

Boiling Cold asked Shell why the Prelude could not be powered by diesel during the shutdown, as it was before June 2018, to stop flaring. A response was not received. LNG plants are expected to flare more gas than average in the early stages of operation. Still, new facilities generally do not operate for as long as Prelude while producing so little. The excess gas is burnt safely from a flare tower. The carbon dioxide released has a much lower greenhouse gas effect than unburnt methane but reducing flaring as much as possible is regarded as oil and gas industry best practice. The LNG industry’s case that its product is a net benefit to climate change rests the emissions saved by consumers burning gas instead of the dirtier fossil fuel coal exceeding the significant carbon emissions from LNG production. A Shell spokesperson said the amount of gas flared each month was now 60% less than when the Prelude commenced operations. “We are committed to further improving performance over time,” the spokesperson said. “Shell’s policies aim to minimise all types of flaring, managed through annually updated greenhouse gas and energy management plans.”

Source: LNG Global

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company costs and investments are being slashed with over US$50bn pledged to date and more on the horizon, says GlobalData, a leading data and analytics company. Daniel Rogers, Oil and Gas Analyst at GlobalData, comments: “Of the announced US$50bn in cuts to date, approximately 20% of that is coming solely from Saudi Aramco, which could have implications for its ongoing expansion projects in the country. Elsewhere, across the supermajors, the investment cuts are within the 20-25% range, resulting in multibillion dollar pull backs in new projects and non-critical investments.” GlobalData has calculated that the average announced capital expenditure (CAPEX) cut for 2020 currently sits at 29% from original forecasts. On the higher end of the spectrum, US operators with significant shale acreage and Australian operators with imminent large-scale liquified natural gas (LNG) projects have taken the most drastic reduction measures. While US operators such as EOG Resources and Occidental Petroleum cut down on rig counts, Australian players Woodside Petroleum and Santos are opting to defer LNG projects until investment conditions improve.

Rogers continues: “We have yet to see companies such as Exxon Mobil and BP release budget cut estimates, but based on what we have seen already it is highly likely a further US$10bn could be taken off the table in 2020.”

Regained market stability at sustainable levels is required to bring back delayed spending and investment confidence. In addition to deferred project investments, share buy backs, dividend pay-outs and general overhead costs have all come under review for 2020 with revisions downward.

Rogers concludes: “The types and severity of the cuts seen will differ depending on stakeholder requirements. National oil companies will strive to protect obligated payments to the government, whilst maintaining production volumes, whereas independent oil companies will focus on strengthening balance sheets and continuing to generate returns for investors in a challenging environment.”

https://www.hellenicshippingnews.com/over-us50bn-in-capital-expenditure-cuts-announced-as-oil-and-gas-companies-grapple-with-covid-19-and-oil-price-war-says-globaldata/

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and belted the third-largest export Down Under. The cost of crude — which liquefied natural gas is typically priced off — fell by nearly two-thirds in the first three months of this year. While cheaper gasoline may help households, the rapid growth of the LNG industry in Australia now means lower oil prices aren’t the positive for the domestic economy they once were. …“The slump in oil prices hurts Australia’s economy more than it helps. That may come as a surprise, given Australia is a net oil importer. But the transformation of Australia’s economy over the last decade into the world’s largest LNG exporter means that the slump in oil prices could more than halve the value of Australian LNG cargoes landed Japan, placing exports worth 2.5% of GDP at risk.” Poppycock. The lower the oil and gas price crashes the better. The reason why is simple. The LNG sector pays very little tax so the income hit is minimal. It employs very few people so the employment hit is minimal.

The volumes will still go out so the GDP impact is minimal. The only hit will be to the Australian trade account but the capital account boost will offset a lot of that given most of the sector is foreign-owned and will see collapsed outgoing dividends. Meanwhile, since Australia’s failed energy markets benchmark gas and electricity off Asian prices, the falls in prices provide a massive stimulus to every household and business on the east coast. A few months ago, local gas and electricity prices were being benchmarked at 14% Brent oil at $11Gj local. At its lows last week (before the Trump oil fantasy took hold) it was $8Gj, a huge stimulus via lower utility bills. The collapse in oil and gas prices is unambiguously positive for Australian economic activity. Bloomie would do much better to ask why it is that Australian benefits when its second-largest export crashes in price.

https://www.macrobusiness.com.au/2020/04/australias-massive-oil-and-gas-stimulus/

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The Ford models are included in the EPA CNG certification are: F-450/550, F-650/750, F-53/59, and E-450. California Air Resources Board (CARB) certification on the 7.3L is expected in late Q2 2020. The Landi Renzo USA eco-fuel CNG system for the 7.3L engine is used in airport and hotel shuttle buses, delivery trucks, service trucks, large package trucks as well as other vocational offerings. Many of these vehicles will be able to take advantage of various grant funding opportunities. Moreover, for fleets utilizing the Landi Renzo USA system, the Ford warranty remains fully in place. “Our EPA certification is result of the tremendous work of many individuals. We also want to recognize Ford’s support in helping us produce a world class CNG product,” said Paul Shaffer, EVP for Landi Renzo USA. During this 18-month effort, Landi Renzo USA conducted extensive engine and vehicle testing to meet the stringent Ford Q-185 gaseous prep guidelines and demonstrate full useful life durability.

https://www.ngvjournal.com/s1-news/c5-products/u-s-epa-approves-landi-renzos-new-cng-system-for-the-ford-7-3l-engine/

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https://www.ngvjournal.com/s1-news/c3-vehicles/argentina-foton-announces-new-auman-liquefied-natural-gas-truck/

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The report provides a general European overview, together with an in-depth mapping at country level of 23 European countries covered by the REGATRACE project. The study shows that the countries with the biggest production of biomethane are Germany (10,018 GWh in 2018), United Kingdom (3,300 GWh in 2018), the Netherlands (2,226 GWh in 2018), Denmark (1,425 GWh in 2017), Sweden (1,281 GWh in 2018) and France (1,207 GWh). The production and consumption of biomethane is well-balanced in most Member States. Denmark and Germany produce more biomethane than they consume, and the excess of production is exported or stored. In Sweden, the consumption of biomethane doubles its production. This can be explained because Swedish incentives are focused on the consumption side, whereas most Member states tend to subsidize the production or injection. End-use pathways for biomethane are quite clearly defined and regulated in some countries. In Sweden and Italy, the main end-use application is transport, whereas in the United Kingdom is heating & cooling. Most of Sweden’s biomethane is used in the transport sector due to a favorable support system. In Italy, the use of biomethane as vehicle fuel is facilitated by the already existing infrastructure and NGV fleet. In 2014, the Italian government introduced the first obligation for the use of biofuels in the transport sector. In Germany, most biomethane is used for electricity production in CHP units. The usage of biomethane as transport fuel is indirectly supported in Germany through its inclusion into the list of fuels accepted for the reduction of GHG footprint for fuel distributing companies. The study also examines consumer readiness to pay for biomethane. A choice experiment has allowed to monetize individual aspects or characteristics of the renewable gas and predict consumer preferences. The experiment shows that GHG emission reductions compared to natural gas are the aspect of the renewable gas which has the highest impact on consumers’ choice (29%), followed by additional cost compared to natural gas (27%), origin of the renewable gas (17%) and its reliable delivery (14%).

https://www.ngvjournal.com/s1-news/c1-markets/new-study-evaluates-map-and-state-of-biomethane-market-in-europe/

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Under the agreement, the two parties will collaborate to build and operate a combined hydrogen production and refueling facility at ATCO’s existing facility in Jandakot in the Perth metropolitan area, with the possibility of wider deployment across the State. The companies have sought funding under the State Government’s Renewable Hydrogen Fund to support the development of this infrastructure, and are awaiting the outcome of this submission. The initial refueling facility will provide Fortescue, ATCO and approved third parties with the opportunity to refuel vehicles capable of utilizing hydrogen as the primary fuel source, including a fleet of Toyota Mirai fuel cell vehicles which have been made available by Toyota Motor Corporation Australia. The project will serve as a showcase for hydrogen mobility in Western Australia and support the transition to the next generation of zero-emission transport. “ATCO’s Clean Energy Innovation Hub has been generating and testing the use of renewable hydrogen for more than six months in gas blending and power applications. The Hub provides a fantastic base from which to partner with Fortescue to contribute to Western Australia’s burgeoning renewable hydrogen industry,” said ATCO Managing Director in Australia Pat Creaghan. “We look forward to working with Fortescue capitalize on Western Australia’s natural advantages for the benefit of the environment, the economy and the community.” Toyota Australia Manager of Future Technologies and Mobility Matt MacLeod also commented, “The agreement between ATCO and Fortescue demonstrates a clear commitment to hydrogen energy in Australia and this emerging economic sector. We congratulate both companies on this innovative approach to their joint vision for the future of zero emissions transportation.”

https://www.ngvjournal.com/s1-news/c4-stations/new-collaboration-plans-to-develop-hydrogen-refueling-infrastructure-in-australia/

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