NGS’ NG/LNG SNAPSHOT – AUGUST 2020, VOLUME 2

National News Internatonal News

NATIONAL NEWS

 

City Gas Distribution & Auto LPG

How move to open up city gas distribution will benefit customers, impact incumbents

Indraprastha Gas Ltd. in Delhi, Mahanagar Gas Ltd. in Mumbai and Gujarat Gas Ltd. are three city gas distribution companies set to be affected by the opening up of these markets and their pipeline infrastructure to third parties.

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City gas distribution companies may soon face competition from third parties, with the Petroleum and Natural Gas Regulatory Board (PNGRB) set to notify regulations to allow competition for these companies, which have thus far enjoyed exclusive marketing rights in their respective geographies. Indraprastha Gas Ltd. in Delhi, Mahanagar Gas Ltd. in Mumbai and Gujarat Gas Ltd. are three city gas distribution companies set to be affected by the opening up of these markets and their pipeline infrastructure to third parties.

What is the proposed change?

Under the proposal by the PNGRB, distribution companies would have to provide access to third-party companies to pay to use their infrastructure to market CNG and PNG based on a transportation tariff set by the incumbent players but regulated by the PNGRB in case of disputes. The PNGRB has sought comments from stakeholders on how the tariff for use of the pipeline network of the city gas distribution companies should be decided. According to experts, the end of marketing exclusivity may lead to some competition and lower prices for CNG. City gas distribution companies market CNG at the retail pump sites of state-run oil marketing companies. CNG sales are the most profitable market segment for city gas distribution companies with margins at around 30% of the retail price of the fuel, according to experts. OMCs which currently receive a commission on the sale of CNG sold through their retail points may seek to take some market share in the CNG distribution business by using the distribution network of the city gas distribution companies to retail CNG directly to customers. An expert noted that the CGD companies and OMCs may decide to increase the commissions provided to OMCs once gas distribution companies lose marketing and infrastructure exclusivity.

According to the experts, the profitability of city gas distribution companies would be affected significantly if their market share is taken up by competitors and it may even reduce their ability to invest further in expanding gas distribution infrastructure. The CGD companies have opposed the opening up of CGD infrastructure for use by third parties. IGL has challenged the proposal by the PNGRB to end marketing exclusivity in the Delhi High Court and have argued that any reduction in market share in any of its marketing segments including CNG and PNG would impair their ability to invest in infrastructure to expand its PNG network to supply natural gas to a larger number of households. DK Sarraf, chairperson of the PNGRB recently noted that the regulator would notify regulations for the opening up of competition in CGD areas as there had not been any stay issued by the high court in the case.

https://indianexpress.com/article/explained/gas-distribution-infrastructure-regulations-pngrb-6538568/[Edited]

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CNG vehicles up 9% in Mumbai region in a year, most are cars and autos

We are approaching a situation where two out of every 10 vehicles run on CNG, the green fuel. There was a 9% rise in CNG vehicles in Mumbai region in 2019-20 as compared to 2018-19,

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latest statistics released by Mahanagar Gas Limited (MGL) show. The total number of vehicles registered in 2019-20 was 7.52 lakh as against 6.9 lakh in the same period last year — an increase of 62,000. A look at the data between 2016-17 to 2019-20 shows that the number of vehicles in the Mumbai metro region has gone up by 2.10 lakh over four years. Of these, the fourth year alone (2019-20) has seen a growth of more than 60,000 vehicles a welcome development at a time when the economy has not witnessed a very robust growth but has seen quality of air improve.

The proportion of CNG-fuelled automobiles in the city has reached a considerable number and is likely to impact on air pollution due to vehicular exhaust. This is a heartening trend and must be backed by tax breaks on new purchases. If private owners are provided incentives and supply of gas at fuel outlets increases, the trend will be reinforced. Statistics further show that the number of private cars using the green fuel had gone up by 23,000 in the past one year, taking the total CNG car population in the metro region to 3.23 lakh. At the same time, 34,000 new autos were launched on CNG while just 1,000 more taxis were plying on it in 2019-20. Data shows the number of CNG autos grew by over 1.5 lakh in the past 3-4 years. This has increased the auto population to 3.52 lakh in the region today. The total taxis plying on CNG is over 66,000, statistics say. In comparison, buses and trucks on CNG had a slow growth rate, numbering around 5,000. MGL managing director Sanjib Datta said: “MGL is committed to provide uninterrupted supply of CNG across the region and to add to our network of 250 CNG stations.” He further said petrol price was much higher than the CNG price, and so the latter was the most affordable fuel. The price of CNG was Rs 48.95 per kg while that of petrol was Rs 87.19 a litre on Thursday. Besides, mileage in a CNG-driven vehicle is 60% to 70% more than a petrol-run car. Also, sources in MGL said that with tax concessions on CNG, several citizens preferred to purchase duo variants petrol with CNG fuel especially for hatchback cars. This has pushed the use of CNG among motorists. Many have also got CNG kits retrofitted in existing cars for Rs 40,000 to Rs 45,000 per kit, the sources added. Transport experts said that the Mumbai metro region should have more CNG and electric vehicles to ensure reduction in emission levels.

https://timesofindia.indiatimes.com/city/mumbai/cng-vehicles-up-9-in-mumbai-region-in-a-year-most-are-cars-and-autos/articleshowprint/77312822.cms

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Adani Gas net profit drops 42 pc in Q1

Adani Gas Ltd, the city gas utility of Adani Group, on Wednesday reported a 42% in June quarter net profit as sales volumes got impacted because of the coronavirus lockdown.

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Net profit of Rs 46 crore in April-June compared with Rs 79 crore net profit a year back, the company said in a statement. “With continued lockdown of 69 days in Q1 FY21 the company witnessed volume impact of 53 per cent as compared to Q1 FY20,” it said. Gas sales volumes dropped to 64 million standard cubic meters in the first quarter of fiscal year beginning April 2020, from 137 MMSCM in the same period a year back. CNG sales fell 66% to 24 MMSCM while sale of piped natural gas to household kitchens was down 40% at 40 MMSCM. “There was a progressive rebound in volumes as compared to the pre-COVID situation and exit volume as on June 30, 2020, had already reached 1.25 million standard cubic meters per day as compared to 1.60 MMSCMD for the month of March 2020,” the statement said. The operational performance of the business continues to be recovering in a phased manner towards the pre-COVID level, it said. Revenue fell 57% to Rs 207 crore while EBITDA (earnings before interest, tax, depreciation and amortisation) was down 41% at Rs 86 crore. Volume in June was at 0.71 MMSCMD compared to 0.35 MMSCMD in April. Adani Group Chairman Gautam Adani said, “Adani Gas Ltd has delivered a good performance even amidst the global pandemic.

Commitment to sustainability is the cornerstone of the growth which AGL is set to chart.” Adani Gas said piped natural gas home connections increased to 4.38 lakh (979 new connections in Q1 FY21). Commercial and industrial connections increased to 4,448. Suresh Manglani, CEO of Adani Gas said, “We are watchful of the ongoing pandemic situation for COVID-19. As a responsible natural gas service provider, Adani Gas Ltd has ensured continuous supply of CNG and PNG, uninterrupted and prompt customer care service during these tough times.” The company, he said, has delivered a sustainable performance in Q1 FY21 despite the impact of COVID-19 on business. Adani Gas retails CNG to automobiles and piped natural gas to households in Gujarat, Rajasthan, Haryana, and Utter Pradesh. Its operations are spread over 19 geographical areas.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/adani-gas-net-profit-drops-42-pc-in-q1/77384140[Edited]

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Maharashtra: Digging norms eased for gas pipelines along roads

The ministry of environment, forest and climate change (MoEFCC) has now further eased digging for underground compressed natural gas (CNG), piped natural gas (PNG) and slurry pipelines along the roads.

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Earlier, under the Forest (Conservation) Act, 1980, laying of optical fibre cables (OFCs), telephone lines, drinking water supply pipelines, and electricity cables was allowed but not PNG/CNG and slurry pipelines. This meant they had to get separate clearances and also follow compensatory afforestation norms. Now, they have been included in the list. This also means that MoEFCC has exempted these projects from compensatory afforestation (CA). Instead, in case laying such pipelines involves felling of any trees, the user agency will have to plant 10 trees for each tree marked for removal in consultation with the local forest department. On July 27, 2020, MoEFCC issued an advisory in this regard. The Forest Advisory Committee (FAC) recommended that CA may not be levied in case of all such pipelines within the right of way of existing roads with trench size not more than two metres in depth and one metre in width. This would be applicable to roads not falling in national parks and wildlife sanctuaries. “After a representation from Punjab government, where CNG/PNG projects are being implemented on large scale, MoEFCC made amends. Till now Baroda, Pune, Mumbai and a few other cities had implemented such projects. Punjab and Haryana are also biggest wheat and rice producing states and are going in for biofuel from husk which would be transported in slurry form,” said Chandigarh regional MoEFCC officials. Environment lawyer Manish Jeswani said, “Trend of according general approvals for projects carrying out non-forest activity on forest land is dilution of FCA and rules.

The exemption of compensatory afforestation (CA) seems to have been taken to benefit user agencies. Who will monitor whether the agency is digging trench of same size as specified by the MoEFCC and number of trees felled and compensated?” The extension of concession may appear a reasonable step because it comes with a rider of user agency having to plant 10 trees for each one they fell. The loophole is that nobody has been enjoined to monitor whether those trees are actually planted. Given the history of default in this area by all agencies, it is almost a given that no trees would be planted. The concession will mean another step towards environmental degradation.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/maharashtra-digging-norms-eased-for-gas-pipelines-along-roads/77384114[Edited]

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GO TOP

Electric Mobility & Bio- Methane

Govt looks at mixing biogas with natural gas

The government is looking at blending biogas with natural gas to boost domestic availability of biofuels and cut reliance on imports, Oil Secretary Tarun Kapoor said on Monday. 

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“The gas distribution sector is expanding fast and some percentage has to come from bio sources. They cannot be completely (dependent) on LNG or domestic gas, that scope is anyway limited,” he said at a webinar on World Biofuel Day. The plan for biogas follows a move to mix ethanol extracted from sugarcane with petrol and doping diesel with biodiesel extracted from non-edible oil. Kapoor said India is an agricultural economy largely and there is a large amount of agricultural residues available, providing good scope of producing biofuels. There are three biofuels – ethanol, bio-diesel, and biogas extracted from biomass. “If we are able to exploit these three, we can reduce our dependence on import of crude to a large extent and import of gas also,” he said.
https://energy.economictimes.indiatimes.com/news/oil-and-gas/govt-looks-at-mixing-biogas-with-natural-gas/77474876[Edited]

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Decoding Delhi EV Policy 2020

The Government of National Capital Territory of Delhi (GNCTD) on Friday approved the Delhi Electric Vehicle Policy 2020 with an objective to establish it as the EV capital of India and

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accelerate the pace of adoption across vehicle segments, especially in the mass category of two-wheelers, public/shared transport vehicles and good carriers. The policy which will remain valid for a period of three years seeks to drive the rapid adoption of Battery Electric Vehicles (BEVs) so that they contribute to 25% of all new vehicle registrations by 2020. The fiscal incentives being offered would be in addition to the demand incentives available in the central government’s FAME II scheme. It comes as a huge blow Internal Combustion Engine (ICE) vehicles as additional taxation has been implemented for fund promotion of EVs. A cess on the sale of diesel is already applicable in the NCT of Delhi at 25 paise per litre. Additional road tax will be levied on diesel and petrol vehicles, especially luxury cars. The notice further added that an appropriate congestion fee will be levied on all trips taken using cab aggregator and ride-hailing services.
Provisions for Different Segments:
To drive a large scale adoption of electric vehicles, the policy focuses attention on incentivising different segments. Here is a look at incentives offered in different vehicle segments.
Electric Cars:
A purchase incentive of Rs 10,000 per kWh of battery capacity will be provided per electric four-wheeler (subject to a maximum incentive of Rs 1.5 lakh per vehicle) to the registered owner of the first 1000 e-cars to be registered in Delhi after issuance of the policy.
Electric Two-Wheelers:
The demand generation incentives offered for two-wheelers will be based on battery capacity. It will be available only for electric two-wheelers with advanced batteries. A purchase incentive of Rs 5000 per kWh of battery capacity will be provided per vehicle to the registered owner and subject to a maximum incentive of Rs 30,000 per vehicle. The registered owner of electric two-wheelers will also be eligible for a scrapping incentive for scrapping and de-registering old ICE two-wheelers registered in Delhi.
Electric Auto Rickshaws/ E-Rickshaws/E-carts:
An open permit will be applicable for e-autos wherein permits will be given on the first-come-first-serve basis. Individuals with a valid light motor driving license (DL) and a PSV badge will be eligible for e-auto permit. A purchase incentive of Rs 30,000 per vehicle will be provided to the registered owner of the electric auto, electric rickshaws and electric carts. The incentive will apply to all e-rickshaws and e-carts including the models with lead-acid batteries and swappable models, where the battery is not sold with the vehicle. Additionally, Interest subvention of 5 percent on loans and hire purchase scheme will be given for the purchase of an e-auto, e-rickshaw and e-carts only if the loan is availed from Delhi Finance Corporation (DFC).
Electric Buses:
The state government will be looking at the substantial addition of buses to the public transport fleet in the period 2019-2022. The policy seeks pure electric buses to constitute at least 50 percent of all new stage carriage buses procured for the city fleet, starting with the induction of 1000 pure electric buses by 2020.

Goods Carriers:
Light Commercial Vehicles used as goods carriers will get a purchase incentive of Rs 30,000 to the first 10,000 e-carriers to be registered in Delhi after issuance of policy in addition to interest subvention of 5 percent on loans availed from DFC. The purchase of e-carriers will also be eligible for a scrapping incentive for scrapping and de-registering of old ICE goods carriers.
Additional Provisions and Policy Implementation:
Road tax and registration fees will be waived for all battery electric vehicles during the period of the policy.
If the battery is not sold with the vehicle, 50 percent of the purchase incentive will be provided to the vehicle owner and the remaining 50 percent would be provided to energy operators for defraying the cost of any deposit that may be required from end-users for a swappable battery. Delhi Transport department will be the nodal department for the implementation of the policy. A dedicated EV cell and a State Electric Vehicle Board will also be constituted for the effective implementation of EV policy.

Source: ET Auto

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India’s GAIL eyes compressed biogas in strategic push beyond natural gas

GAIL (India) Ltd. is looking to explore opportunities in the compressed biogas sector, as it steps up efforts to expand the business beyond natural gas, part of a push to embrace cleaner forms of energy.

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The move by GAIL, which commands a 75% market share in gas transmission and more than 50% share in gas trading in India, is seen as part of the government’s vision to prepare for the energy transition process, under which New Delhi hopes to raise the share of gas in its energy mix from as low as 6% to 15% by 2030. The state-run company recently signed an agreement with Carbon Clean Solutions Ltd. to build a strategic partnership and explore project development opportunities in the CBG value chain in India. GAIL and CCSL will explore opportunities in areas, such as feedstock arrangement, production technologies, gas offtake arrangements, as well as transportation, marketing and distribution of CBG. Through the memorandum of understanding, CCSL will initially build four CBG plants using their own funding, technology, and expertise. These plants will be based on 10-year CBG offtake agreements with GAIL or its associated companies. “There is significant market potential for production of CBG in India,” Santanu Roy, executive director for business development at GAIL, said in a recent statement. He added that this would help push the Sustainable Alternative Towards Affordable Transportation scheme of the petroleum ministry, which envisages targeting production of 15 MMT of CBG from 5,000 plants by 2023. Upon completion of the initial plants, GAIL and CCSL will look to actively advance the partnership with the intention of developing up to 100 CBG plants in India, he added. “As energy demand increases and the country looks to reduce its crude imports it provides a great business opportunity,” said Aniruddha Sharma, CEO of CCSL, in a statement. The country’s push toward embracing hydrogen is also gaining speed as some of the country’s top energy companies, such as Indian Oil Corp., Reliance Industries and Adani Group, are increasingly highlighting the urgency to move toward the carbon-free fuel. The government is in the process of including CBG under priority sector lending in an effort to ease the process of financing CBG plants, according to the petroleum ministry.

https://www.spglobal.com/platts/en/market-insights/latest-news/natural-gas/080520-indias-gail-eyes-compressed-biogas-in-strategic-push-beyond-natural-gas

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Tata Motors introduces subscription scheme for Nexon EV

As the automaker claims, this scheme will make the electric SUV more affordable for the customers.New Delhi: Tata Motors on Thursday (Aug 6) announced the launch of subscription scheme

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for its Nexon EV. Under this scheme, the Tata Nexon EV will be available for a monthly price of Rs 41,900 (for 36 months), informed the company. As the automaker claims, this scheme will make the electric SUV more affordable for the customers.
The automaker also said that the customers can choose from three subscription duration options, which are 18 months, 24 and 36 months. For 18 month tenure, a customer will have to pay Rs 47,900 monthly subscription fee, for 24 months Rs 44,900 and for 36 months Rs 41,900 per month. For this, Tata Motors has partnered with leasing firm Orix Auto Infrastructure Services to offer the service in five cities – Delhi/NCR, Mumbai, Pune, Hyderabad and Bengaluru. Later the service will be rolled out to other cities. Commenting on this scheme, Tata Motors Passenger Vehicles Business Unit President Shailesh Chandra said, “EVs are the future, and as the leader of this fast-growing segment, the company is committed to popularise their access and use in India.”

Source: ET Auto

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Suzuki, Toshiba, Denso EV battery plans go on the back burner due to the coronavirus pandemic

The India joint venture of Suzuki Motor, Toshiba and Denso is likely to put on hold plans for a second phase of its project to manufacture batteries for electric vehicles,

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even as the work on the first phase is currently behind schedule, people in the know said. Lack of a well-defined electric vehicle policy and a slowing market for such vehicles have led the joint venture, Automotive Electronics Power (AEPPL), to go slow on the second phase, one of the people said. Earlier, Korea’s LG Chemicals had put on hold its project to produce lithium-ion batteries in India in collaboration with the Mahindra Group. AEPPL said the first phase of the project was delayed by a few months due to operating and logistical hurdles posed by the Covid-19 pandemic and that the company was “making efforts to achieve commissioning early”.

It didn’t respond to a specific query from ET on the second phase of the project. Carmaker Suzuki holds half the stake in the three-way JV among the Japanese companies to manufacture lithium-ion batteries at Gujarat’s Hansalpur. Industrial conglomerate Toshiba holds 40 per cent and automotive component maker Denso the remaining 10 per cent. The JV was expected to invest ₹5,000 crore, with more than ₹3,700 crore for the second phase, providing employment to over 1,000 workers over five years. In the first phase the company plans to set up a single assembly line.

Source: ET Auto

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Chinese carmaker’s bid for government EV tender faces hurdle

Energy Efficiency Services (EESL), the government’s electric vehicles procurement arm, has said that MG Motor, a subsidiary of China’s Shanghai Automotive (SAIC),

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will stand disqualified for their upcoming e-vehicles tender in the absence of an official clearance by a panel comprising officials from the department for promotion of industry and internal trade (DPIIT), and home and external affairs ministries. EESL MD Saurabh Kumar said the company has floated a new tender for 250 electric cars, and the Chinese company, which sells ‘ZS’ e-vehicle, has to fulfil the criteria to participate. The tender closes on Friday (August 7). “There is a specific requirement recently spelt out by the government that any company which has an ownership from China has to follow a registration process. They need a clearance from the DPIIT. This is part of the tender process,” Kumar told TOI.

“If they don’t have it, they will stand disqualified, simple.” EESL’s condition comes as the government has stipulated strict conditions for investment and tender participation from Chinese companies over the past few months after the escalation of tensions between the two countries. As the diplomatic relations worsened, the Maharashtra government had in late June put on hold investment proposals worth Rs 5,000 crore by Chinese companies, including by carmaker Great Wall Motor. Before tensions at the border escalated, EESL had bought a few units of the MG ZS SUV as part of the company’s policy to test new e-vehicles that are introduced into the market, Kumar said.

Source: ET Auto

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Gujarat based dairy starts innovative project to produce CNG from animal dung

Gujarat based and Asia’s largest Banas dairy had come up with an innovative project to produce CNG from animal dung. AIR correspondent reports that the Chairman of Banas dairy

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Mr Shankar Chaudhary made official announcement of the project today. Mr Chaudhary claimed this as country’s first such endeavour. Following the appeal by PM Narendra Modi on creating best from the waste, Banas dairy started country’s first CNG pump  in which Gober gas is being produced , purified converted into CNG. The dairy is collecting over 40 tonnes of cow dung from the farmers of around 25 villages.  A total of 800 kgs of CNG is expected to produced daily undervthe project. The sale of CNG will begin from the pump in coming week. Mr Chaudhary said that the aim of the project is to increase the farmers income and make them self-reliant.

http://newsonair.com/Main-News-Details.aspx?id=396288

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Gas/ Pipelines/ Company News

GAIL Q1 net profit tanks 80 pc to Rs 255.51 cr

State-owned gas utility GAIL India Ltd on Thursday posted an 80% drop in its June quarter net profit as it suffered losses on the marketing of natural gas and petrochemicals.

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Standalone net profit of Rs 255.51 crore, or Rs 0.57 per share, in April-June, was 80.1 per cent lower than Rs 1,287.53 crore, or Rs 2.85 a share, net profit in the same period a year back, the company said in a regulatory filing. “The sharp decline in financial performance is mainly attributable to a significant impact in physical performance due to nation-wide lockdown during the earlier part of the quarter coupled with lower price realization in petrochemicals, liquid hydrocarbons, and natural gas,” it later said in a statement. The company suffered a pre-tax loss of Rs 545.46 crore on the marketing of natural gas in the first quarter of 2020-21 fiscal, as compared to a pre-tax profit of Rs 850.48 crore last year. Revenues from natural gas marketing too dipped 39 per cent to Rs 9,443.72 crore as the shutdown of industries led to lower offtake of the fuel. While pre-tax profit on gas transmission business fell 16 per cent, loss on petrochemical business came at Rs 154.43 crore. Total revenue from operations at Rs 12,087.46 crore was lower than Rs 18,311.46 crore revenue in Q1 of 2019-20. “During the quarter, natural gas transmission and marketing volume stood at 90.22 MMSCMD and 81.16 MMSCMD, as against 105.41 MMSCMD and 96.55 MMSCMD respectively in Q1 FY20,” GAIL said. During the quarter, the consolidated group turnover stood at Rs 12,180.62 crore, as against Rs 18,481.56 crore in Q1 FY20 while the group’s Profit after tax (PAT) came at Rs 642.97 crore, as against Rs 1,503.67 crore in Q1 FY20. Manoj Jain, chairman and managing director, GAIL, said that with the gradual relaxation of lockdown and increase in economic activities, the physical performance of the company has picked up significantly in all segments and the company is presently operating at near pre-lockdown levels. He further added that though the capex during the first quarter was affected due to lockdown, GAIL expects to significantly improve capex during the remaining quarters.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/gail-q1-net-profit-tanks-80-pc-to-rs-255-51-cr/77525682

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Commissioning of Kochi-Mangaluru pipeline delayed again

The long-awaited commissioning of Kochi-Mangaluru natural gas pipeline is likely to be delayed once again. Initially, it was planned to commission the pipeline by August end.

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However the restrictions imposed on those entering Kasargod, following Covid-19 scare, has posed a major hurdle for the commissioning of the project. On the other hand, horizontal directional drilling (HDD) to lay the pipelines underwater is struck at River Chandragiri in Kasargod. Now, a heavy duty pulling machine had been deployed at the site at Chandragiri and the work is on progress, sources told DH. “Getting an online pass to daily commute between Kasargod and Mangaluru has become a herculean task. The mandatory Covid test every week is further aggravating the situation. It is posing a hurdle for GAIL’s project. More than 40 to 50 officers and staff of GAIL (India) Limited have to commute daily between Kasargod and Mangaluru for the commissioning of project and operate the project on a daily basis,” highly placed sources told DH. The issue has already been drawn to the notice of Union Minister for Chemical and Fertilisers D V Sadananda Gowda. Sources said heavy rain in the region for the past five to six days too had affected the work. The authorities were planning to get LNG via tanker and commission a 60-km pipeline at Ichalampady in Kasargod and later complete the work on HDD at River Chandragiri. The GAIL is also looking into the possibility of getting LNG tanks and commissioning gas supply from the receiving station at MCF.

“The GAIL staff had applied for a six-month pass to travel to Kasargod. However, it was denied and issued 28-day pass,” sources added.  It may be recalled that LNG terminal of Petronet LNG was commissioned in Kochi six years ago. GAIL (India) Ltd was entrusted with the responsibility of laying the pipeline from Kochi to Mangaluru. Already, the work on laying the pipeline at Malavoor, Adyapadi, Kandavara, Mulooru, Addooru, Malluru, Arkula, Pavoor, Kenjar, Thokooru in Mangaluru taluk, Meramajalu, Ammunje, Pajeer, Kairangala, Balepunti and Kunrand villages has been completed.

https://www.udayavani.com/english-news/kochi-mluru-gas-pipeline-delayed-again-due-to-technical-issue

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Domestic natural gas output falls 10% in July

Domestic natural gas production fell 10.1% year on year to 2,435 MMSCM in July. The 2.6 MMT of crude oil produced in the country during the month was also 5% lower than the production in the year-ago period.

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This coincides with domestic natural gas consumption falling 14.3% y-o-y to 13,536 MMSCM in Q1FY21 when the lockdown to contain the spread of the coronavirus pandemic was implemented. Domestic production fell 15.5% annually to 6,785 MMSCM while imports dropped 12.5% to 7,003 MMSCM in the three-month period. According to Care Ratings, the gross production of domestic natural gas will fall by 10.6% during FY21 as “no company would aggressively want to increase production or get into high risk projects with such a low gas price”. The current price for gas produced from local fields has been revised to an all-time low of $2.39/MMBtu by the government, which is even below the breakeven point for most fields, the agency noted. Indigenous natural gas production caters about only 51% of the country’s requirements.

Demand for natural gas in the domestic market is largely dependent on the fertiliser (28%), power (23%), city gas distribution entities (16%), refineries (12%) and petrochemicals (8%) industries. Consumption of natural gas is seen to fall by 3.2% by the end of FY21 as demand is likely to be subdued on account of a steep decline in the sale of compressed natural gas (CNG), weaker demand from gas-based power plants and a cut in refinery throughput by oil refiners. Petroleum minister Dharmendra Pradhan recently attended a virtual conference with the CEO of Europe’s leading gas utility company SNAM. The minister has welcomed SNAM’s keenness for collaborations in the areas of LNG, gas storage and hydrogen fuel. Over 31% of SNAM’s shares are held by holding company CDP Reti. The State Grid Corporation of China holds 35% of CDP Reti. An online meeting with Fatih Birol, executive director, International Energy Agency, was also held to discuss the country’s expanding gas infrastructure and the efforts being taken towards free market pricing of natural gas.

https://www.financialexpress.com/industry/domestic-natural-gas-output-falls-10-in-july/2050891/

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Sarraf: Unified tariff for pipelines needed to make natural gas affordable

A unified tariff for natural gas pipelines is needed to make gas affordable in areas away from gas sources, boost development in such regions and make some pipelines sustainable,

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the head of the downstream regulatory body said, defending its tariff proposal that has attracted wider industry criticism. Industry has raised fears that the unified tariff would raise cost for consumers, incentivise imported LNG over locally-produced gas, make new LNG terminals less competitive against older ones, reduce competition, create barriers to entry, and damage the growth of the gas market in the country. “Infrastructure has to be built and sustained. How would Urja Ganga and north-east pipelines survive without this?” Petroleum and Natural Gas Regulatory Board chairman DK Sarraf told ET in an interview. “Nation needs to have balanced development across regions, for socio-economic reasons.” Some industry players have opposed the proposed tariff structure on the grounds that it would force those located closer to the gas source to subsidise those in distant places. “Ultimately, as the volume grows, cross-subsidisation reduces and may even end.

The alternative is, status quo, which is in no one’s interest,” Sarraf said. Reliance Industries and BP have said the unified tariff puts domestic gas produced in the KG Basin at a disadvantage to the imported LNG. “This gas would largely get consumed in the eastern market, which is closer to the production centre once the east coast pipeline gets completed,” Sarraf said. On the concern that the unified tariff would be disadvantageous to new LNG terminals on the east coast, Sarraf said: “West coast terminals are well connected to the grid and east coast terminals would cater to the eastern market”. PNGRB is planning to introduce stringent pipeline access code, which along with gas trading exchange can help address the industry fears of a pipeline operator gaining dominance in the transmission market, Sarraf said.

https://economictimes.indiatimes.com/industry/energy/oil-gas/petroleum-and-natural-gas-regulatory-board-chairman-bats-for-unified-gas-price/articleshow/77462622.cms

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ONGC gas pipeline bursts in Assam, no damage reported: Official

An underground gas pipeline at Assam’s Geleky oilfield of energy major Oil and Natural Gas Corporation (ONGC) ruptured on Monday, leading to leakage of gas in the entire area, a senior company official said.

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However, it immediately stopped supply of gas through the damaged pipeline and started repair work which is likely to be completed by tonight, ONGC Executive Director (Assam Asset) Sanjeev Kakran told. “At around 12:30 pm, a leakage occurred in an underground four-inch pipeline inside ONGC’s gas compressor plant at the Geleki field. It was followed by a small blast and the gas came out,” he said. Kakran, however, claimed the leakage did not catch fire and there is no injury of any kind to anybody as well as no safety hazard to the surrounding environment or people living nearby.

“The gas pipeline was immediately depressurised and isolated. ONGC’s team is on the site to repair the pipeline, which should be completed by tonight itself,” the official added. He also said ONGC is investing Rs 265 crore to replace all the pipelines of Geleki operations and 70 per cent of the work is already over. “This is one of our very old oil fields. We undertook replacement of entire pipeline network here, comprising crude, gas and water injection lines. The work is likely to be completed by May 2021. We plan to invest more money to upgrade our operations,” Kakran said. A gas well of another PSU major Oil India at Baghjan in Tinsukia district of Assam has been spewing gas uncontrollably for the last 69 days since May 27, and it caught fire on June 9, killing two firefighters at the site.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/ongc-gas-pipeline-bursts-in-assam-no-damage-reported-official/77341511 

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Gas supplies to power plant rise over 13 pc in June

Gas supplies to power plants in the country rose by over 13% to 36.16 million metric standard cubic metre per day (MMSCMD) in June this year from 31.95 MMSCMD in the same month a year ago, showing improvement in the beleaguered segment.

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However, the Central Electricity Authority (CEA) data showed that total plant load factor (PLF) or capacity utilisation of the gas base power plants in the country rose to just 29.4% in June 2020 from 25% in the same month last year. An expert said the consumption of gas by the power sector has improved mainly due to competitive imported gas prices. Data showed that imported gas supplies to power plants rose to 15.78 MMSCMD in June from 12.26 in the same month last year and from 13.02 MMSCMD in May this year. Power plants got imported gas supplies of 10.41 MMSCMD in April this year, up from 8.9 MMSCMD in the same month a year ago. Another expert said that due to economical gas prices in the international market, there could be further rise in the consumption by power plants in the country, especially during monsoon when coal loading is lesser.

The expert was of the view that gas consumption also increased due to lower coal loading in the post lockdown period. The government had imposed lockdown from March 25 to contain the coronavirus spread in the country. Gas supplies to power plants in the country increased by 11.65% to 104.78 MMSCM in April-June from 93.84 MMSCM in the same quarter last year. However, data showed that PLF of gas-based power plants in the country rose to just 28.6% in April-June this fiscal from 24.8% in the same quarter last year.
https://energy.economictimes.indiatimes.com/news/oil-and-gas/gas-supplies-to-power-plant-rise-over-13-pc-in-june/77341758

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Oil and Natural Gas Corporation cuts debt by 35 per cent to Rs 13,949 crore

State-owned Oil and Natural Gas Corporation (ONGC) has cut its debt by more than one-third but faces an uphill challenge to meeting planned expenditure during current fiscal due to oil and gas prices falling below sub-optimal levels,

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according to company officials and regulatory filings. ONGC’s outstanding debt of Rs 21,593 crore as on March 31, 2019 has come down to Rs 13,949 crore as on March 31, 2020, as it used revenue from better operations to retire some of the borrowings, according to the company’s regulatory filings. Out of this debt, long-term borrowings account for Rs 2,245 crore which are due for maturity in December 2029. The company had cash and cash equivalent (including other bank balances) of Rs 968 crore as on March 31, 2020, up from a record low of Rs 504 crore a year back. Standalone debt-equity ratio at the end of March 31, 2020 is only 0.07 which is considered comfortable.

Company officials explained that ONGC has been working on bringing operational efficiencies and financial discipline and used surplus revenues to repay debt. ONGC has planned a capex of over Rs 26,000 crore and meeting that with current oil and gas price will be a challenge, he said. Another official said the company had taken an impairment loss of Rs 4,899 crore in Q4 FY’20 to factor into estimated future crude oil and natural gas prices. However, the company believes that oil and gas prices will recover in future and in that case this impairment loss shall be reversed as and when prices rise, he said. ONGC once was India’s most profitable company with a cash balance of over Rs 10,000 crore. But the fortunes reversed after the company bought the government’s 51.11% stake in oil marketing company Hindustan Petroleum Corporation Ltd (HPCL) and the Gujarat government’s GSPC in a KG basin gas block. It funded the Rs 36,915 crore acquisition of 51.11 per cent equity shares in HPCL through internal funds of Rs 12,034 crore and balance Rs 24,881 crore from borrowed money from commercial banks.

The funding requirement of Rs 7,560 crore for Gujarat State Petroleum Corporation‘s KG block acquisition was met by way of borrowing against term deposits. Its cash and balances dipped to touch a record low of Rs 504 crore in March 2019, down from Rs 1,013 crore in March 2018 and Rs 9,511 crore in March 2017 and Rs 9,957 in March 2016. “We live in an era of sub-optimal oil prices and government mandated natural gas prices that are way below the cost. The answer to such a scenario is to optimise cost and bring in operational efficiencies,” an official said. He said the company has sufficient lines of credit/ short term fund facilities with banks amounting to Rs 7,800 crore for meeting the working capital or deficit requirements. Further, the company has an overall limit of Rs 10,000 crore for raising funds through Commercial Paper.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/oil-and-natural-gas-corporation-cuts-debt-by-35-per-cent-to-rs-13949-crore/77454178

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Policy Matters/ Gas Pricing/Others

India steps on gas as coal use for power generation slows

Indian power plants used the most gas in at least 3-1/2 years in the June quarter, as operators along the west coast snapped up cheap liquefied natural gas (LNG) imports that have become competitive against coal, government data showed.

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Power producers say the trend is likely to continue until at least September, and perhaps beyond, providing a bright spot for LNG sellers as demand elsewhere falls due to a global economic slowdown sparked by the coronavirus pandemic. Gas consumption by power plants rose 11.7% to 104.83 MMSCM in the three months to end-June from the same period last year, data from the Central Electricity Authority (CEA) showed. Imports accounted for 37.4% of overall gas consumption by power plants, up from 35% a year ago. Lower spot prices are making natural gas “lucrative” for power plants, according to India’s largest gas importer Petronet LNG Ltd , which recently cancelled a tender to buy long-term LNG.

“I do believe there is some coal switching taking place and imported coal-based power plants may not be competitive vis a vis spot LNG (consuming power plants),” Vivek Mittal, general manager for marketing at Petronet, said on a recent conference call. India’s imports of spot gas more than doubled in the June quarter from a year ago to the highest in at least 14 quarters, while purchases under long-term contracts slumped by over a third to the lowest in the same period, a Reuters analysis of the available data showed. The increased use of gas comes as India’s overall electricity demand is expected to fall this year for the first time in decades, with a likely fall in national coal-fired generation. Sales at state-run Coal India, which sells most of its output to power companies, fell to the lowest level in nearly four years in the second quarter. Weaker sales could continue through end-September due to the annual monsoon, when coal demand and output typically falls and transportation is difficult. Imports of coal by power plants also fell to the lowest level during the June quarter in at least seven years. Still, coal remains India’s dominant fuel for power production. More than half of India’s gas-fired plants are also shut because they are not economically viable, which power producers attribute to high taxes and transportation costs. Gas consumption increased mainly due to higher consumption by companies on India’s west coast, particularly the state of Gujarat, home to some of the country’s biggest LNG import plants. The state, which is close to producer countries such as Qatar, also has a better gas transportation network, and is relatively far from coal mines, making gas-fired power production relatively cheaper, power producers say. Gujarat-based private firms such as Torrent Power and utilities run by the state government accounted for nearly all LNG imports by power companies, according to the CEA.
https://energy.economictimes.indiatimes.com/news/oil-and-gas/india-steps-on-gas-as-coal-use-for-power-generation-slows/77324064

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Indian gas sector looks up; healthy growth expected amid infra investment

The post lockdown times have seen the Indian gas sector looking up with a sharp increase in the domestic gas supply from no growth between FY17 and FY20 to over 12% compound

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annual growth rate (CAGR) over FY21 to FY24, even amid the uneven impact of COVID-19 on gas consumers. The growth was also driven due to a global excess supply (over demand) that kept the Liquefied Natural Gas (LNG) prices competitive and that is expected to benefit the Indian gas utilities further. A report by research firm HDFC Securities points out that low prices coupled with pipeline infrastructure expansion will ensure robust gas demand in India. The commissioning of long-distance gas pipelines, the rising penetration of the city gas network post the tenth round of auctions in November 2018 and the low gas price (domestic and LNG prices are currently at their 10-year low) will also further drive the growth of the segment. The report further states that domestic gas production in India will rise for the first time in almost a decade and the increase is expected by around 40 per cent over FY21-24. This expert further feels that the gas demand across Indian cities is also expected to get a further spurt with the completion of the tenth round of city gas auctions, “With 80 Geographical Areas (GAs) allocated in the 9th round and 50 more (GAs) in the tenth round, India should witness a significant investment drive in the next 4-5 years for the development of these city gas areas. This should ultimately boost gas demand of the city gas sector. The government’s decision to raise excise duty on petrol and diesel in March-20 has improved Compressed Natural Gas’ (CNG) competitive position against liquid fuels.

Besides, falling gas price has resulted in a fall in CNG price, widening the discount as well as supporting CNG margins,” added Katkar. The HDFC report also points out that in order to promote the development of City Gas Distribution (CGD) network, the government had granted priority in domestic gas allocation to domestic piped natural gas (D-PNG) and Compressed Natural gas (CNG) segments in Oct-2014. Currently, the transmission infrastructure dominates the western and northern parts of the country, but the eastern and southern parts are significantly underserved. As per the HDFC Securities report, the development of different pipeline projects across the country will not only cater to existing demand but also spur strong multi-year demand from industries as well as the city gas segment.

https://www.theweek.in/news/biz-tech/2020/08/06/indian-gas-sector-looks-up-healthy-growth-expected-amid-infra-investment.html

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LNG Development and Shipping

Petronet says invoked force majeure on 9 cargoes

Petronet LNG Ltd (PLL), the country’s biggest gas importer, on Tuesday (Aug 11) said it invoked the force majeure on nine cargoes after COVID-19 lockdown cut offtake by consumers. 

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Petronet imports natural gas in its liquid form (LNG) from countries such as Qatar and Australia and pipes it to users such as power plants and fertiliser units after re-converting it into its gaseous state. Petronet invoked the force majeure on eight liquefied natural gas (LNG) cargoes of Qatar and one from Exxon for loading from March to May. “Due to a nationwide lockdown imposed by the Government of India from the last week of March 2020, the offtake of regasified-LNG (RLNG) from the Dahej terminal (in Gujarat) was reduced. “This decline in throughput was due to partial/full shutdown of a number of industries, refineries, power plants, etc, which reduced their offtake of natural gas as the demand of their respective products decreased,” Petronet said in a regulatory filing. Average gas send-out from the Dahej terminal fell to less than 60% of the capacity in April, down from over 88% in the previous month. “Post first week of June when the lockdown was relaxed, the demand of RLNG has seen gradual recovery and since then, PLL’s Dahej terminal is operating at its full capacity of 17.5 MMTPA (63 million standard cubic meters per day),

” it said. Before COVID 19, average send-out during January-February was around 58 MMSCMD (92 per cent of the capacity) at the Dahej terminal and 3.57 MMSCMD (20 per cent) at 5 MMTPA at the Kochi terminal in Kerala. “Owing to the COVID-19 pandemic and a consequent reduced RLNG demand during the lockdown period, PLL was constrained to invoke the force majeure for nine long-term cargoes with its suppliers and discussion on the same are ongoing,” the company said without giving details. During the said period, PLL also received requests under regasification contracts for deferment of third-party cargoes to subsequent months, it added.

Source: Economic Times

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Petronet’s off-take of RLNG from Dahej had reduced in lockdowns

Petronet LNG Limited (PLL) intimated the exchanges on Tuesday (Aug 11) that due to nationwide lockdown imposed by Government of India from the last week of March 2020,

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the off-take of RLNG from Dahej terminal had reduced. This decline in throughput was due to partial and full shutdown of a number of industries, refineries, power plants etc. which reduced their off-take of natural gas as the demand of their respective products decreased. Post first week of June 2020, when the lock-down was relaxed, the demand of RLNG has seen gradual recovery and since then PLL’s Dahej terminal is operating at its full capacity of 17.5 MMTPA (63 MMSCMD), the company said in the filing. Before Covid-19, average send out during January – February 2020 was around 58 MMSCMD (92%) at Dahej Terminal and 3.57 MMSCMD (20%) at Kochi Terminal. The RLNG send-out prevailing during the lockdown months at Dahej was 55.59 MMSCMD in March (88.24%), 37.26 MMSCMD in April (59.14%), 49.72 MMSCMD in May (78.92%) and 62.62 MMSCMD in June (99.40%).
At Kochi Terminal the RLNG send-out prevailing during the lockdown months was 3.42 MMSCMD in March (19%), 2.29 MMSCMD in April (12.72%), 2.20 MMSCMD in May (12.22%) and 3.46 MMSCMD in June (19.22%).
Owing to Covid-19 Pandemic and consequent reduced RLNG demand during the lockdown period, PLL was constrained to invoke Force Majeure for nine (09) long-term cargos with its suppliers and discussion on the same are ongoing. During the said period, PLL also received requests under regasification contracts for deferment of third party cargos to subsequent months.

Source: IIFL/Indian Oil & Gas)

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INTERNATIONAL NEWS

 

Natural Gas / Transnational Pipelines/ Others

Russia’s Gazprom says H1 gas exports to Europe fell 18 per cent

Natural gas exports from Russia‘s Gazprom to Europe, including Turkey, fell 18% in the first half of the year to 78.94 billion cubic metres from 96.43 bcm a year earlier, the company reported on Thursday (Aug 14).

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The sharp decline makes its harder for Gazprom to reach its target of more 166.6 bcm in exports this year, as gas demand has been depressed due the fallout from the coronavirus pandemic. Gazprom also faces rivalry from other sources of gas, such as sea-borne liquefied natural gas. Last year, Gazprom’s gas exports to Europe, where it accounts for around 35% of the gas market, reached 199.2 bcm. The company has said it expected European gas demand to start recovering from the third quarter. Gazprom said on Thursday in its report under Russian Accounting Standards, that its gas supplies to China, started in December 2019, reached 1.57 bcm in January-June.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/russias-gazprom-says-h1-gas-exports-to-europe-fell-18-per-cent/77536508

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US natural gas output, demand to fall due to coronavirus lockdowns, agency says

US natural gas production and demand will drop in 2020 and 2021 from record highs last year as coronavirus lockdowns cut economic activity and energy prices, the US Energy Information Administration (EIA) said on Tuesday (Aug 11).

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EIA’s Short-Term Energy Outlook (STEO) projected dry gas production will drop to 88.65 billion cubic feet per day (bcfd) in 2020 and 84.02 bcfd in 2021 from the all-time high of 92.21 bcfd in 2019. It also projected gas consumption would fall to 82.42 bcfd in 2020 and 78.71 bcfd in 2021, from a record 84.97 bcfd in 2019. That would be the first annual decline in consumption since 2017 and the first time demand has fallen for two consecutive years since 2006. EIA’s gas supply projection for 2020 in August was lower than its July forecast of 89.24 bcfd, while its latest demand outlook for 2020 was higher than its July forecast of 82.35 bcfd.

The agency forecast US liquefied natural gas exports would reach 5.54 bcfd in 2020 and 7.28 bcfd in 2021, up from a record 4.98 bcfd in 2019. That is higher than its July forecasts of 5.35 bcfd in 2020 and 7.28 bcfd in 2021. S coal production is expected to fall 29% to 502 million short tons in 2020, which would be its lowest level since 1963, before rising to 564 million short tons in 2021 when power plants are expected to burn more coal due to a forecast increase in gas prices, EIA said. It projected carbon emissions from burning fossil fuels will fall to 4.543 billion tonnes in 2020, the lowest since 1983, from 5.130 billion tonnes in 2019, the lowest since 1992, before rising to 4.798 billion tonnes in 2021 as coal use increases.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/us-natural-gas-output-demand-to-fall-due-to-coronavirus-lockdowns-agency-says/77498980

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Chevron’s interest in giant gas field led to $5 bln bid for Noble Energy

Chevron Corp’s $5 billion offer to acquire Noble Energy emerged after the U.S. oil major first proposed taking a stake of at least 50% in Noble’s Eastern Mediterranean natural-gas fields, a proxy filing on Tuesday (Aug 11) showed.

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If consummated, the all-stock merger will boost Chevron’s U.S. shale oil holdings and give it vast natural gas assets off the coast of Israel. Noble’s Leviathan, one of the world’s biggest offshore gas discoveries of the last decade, already is supplying gas to Israel, Egypt and Jordan. Last year, Noble sought a partner to help finance the multibillion-dollar investment required for Leviathan, according to Tuesday’s Securities and Exchange Commission filing. The company denied Chevron an opportunity to visit the Leviathan facility in February, but weeks later agreed to a confidentiality agreement to begin discussing their operations in the region, according to the filing. As global energy markets collapsed that month and Noble reported a first-quarter loss of nearly $4 billion, its board opted for a sale of the company rather than a regional partnership, according to the filing. It contacted eight companies to gauge interest in a stake in its Eastern Mediterranean holdings and held talks with six potential buyers.

The alternatives to Chevron were either “high risk” or “did not result in any material benefit,” according to the filing. Chevron’s bid valued Noble at $10.38 a share, a 7.5% premium to its closing price before the deal was disclosed. Including assumption of debt, the price tag for the purchase is roughly $13 billion. During their talks, Chevron agreed to raise its exchange ratio while Noble dropped a force-the-vote provision and agreed to pay a higher termination fee if the deal did not close. The purchase still faces a vote by Noble shareholders, who are expected to approve it. Chevron shares on Tuesday were off 6 cents at $89.67 while Noble’s lost 4 cents at $10.65. The proxy filing came after 4 p.m.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/chevrons-interest-in-giant-gas-field-led-to-5-bln-bid-for-noble-energy/77496331

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Gas pipeline to China’s first major independent LNG terminal complete

A delayed sub-sea pipeline connecting a terminal owned by private Chinese gas distributor ENN Group and a provincial gas grid has been completed, paving the way for more imports into China’s first major independent LNG terminal.

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The $848 million import facility located on Zhoushan Island in eastern China’s Zhejiang province started operations in 2018 but the delay in the pipeline’s launch, meant to take place last year, has limited its use. An ENN official on Tuesday (Aug 11) confirmed its completion. Gas has started to flow through the pipeline in small volumes, a source familiar with the matter said, asking not to be named. State-owned Zhejiang Energy Group said last week that the 81-kilometre pipeline will start from ENN’s 3 MMTPA Zhoushan terminal and will pass through islands, terminating at Zhenhai in Ningbo. It will have a total transmission capacity of 8 billion cubic metres (bCM) per annum and will connect to Hang Yong Line’s provincial pipeline. The pipeline’s completion will provide Zhejiang’s provincial pipeline with its eighth gas source and improve gas supply capacity in the region, Zhejiang Energy Group said in a statement. ENN’s Zhoushan terminal is expected to be expanded to 5 mtpa in the first half of 2021. ENN has signed long-term sales and purchase agreements with Chevron Corp and Australia’s Origin Energy and also has an agreement to buy LNG from Total. It has resold some of those cargoes because of the lack of the pipeline and land-based access to markets, several traders familiar with the market have said on condition of anonymity.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/gas-pipeline-to-chinas-first-major-independent-lng-terminal-complete/77495974

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Shell Australia to acquire environmental services firm Select Carbon

Last year, Shell made its first foray into Australia’s highly competitive power sector with a A$617 million ($441 million) takeover offer for ERM Power. Royal Dutch Shell’s Australia unit said on Monday

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it will buy environmental services firm Select Carbon as it seeks to cut back its emissions and expand its low-carbon and renewable power business. Shell did not disclose a value for the deal, but said it will help in contributing towards the company’s ambition of being a “net-zero emissions energy business by 2050 or sooner.” Last year, Shell made its first foray into Australia’s highly competitive power sector with a A$617 million ($441 million) takeover offer for ERM Power.

The Anglo-Dutch company has made a number of large investments in renewables and electric vehicle technologies, and plans to boost spending on its power division to $2 to $3 billion per year by 2025 as the world rapidly shifts towards cleaner energy. Select Carbon specializes in developing carbon farming and manages a portfolio of over 70 projects encompassing over 9 million hectares across Australia, according to the company’s website. Shell expects the deal to be completed before the end of the year, it said in a statement.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/shell-australia-to-acquire-environmental-services-firm-select-carbon/77324088

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US oil & gas rig count falls to record low for 14th week: Baker Hughes

The US rig count, an early indicator of future output, fell by four to an all-time low of 247 in the week to Aug. 7, according to data on Friday from energy services firm Baker Hughes Co going back to 1940.

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US energy firms cut the number of oil and natural gas rigs this week to a record low for a 14th week even as higher oil prices prompt some producers to start drilling again. The US rig count, an early indicator of future output, fell by four to an all-time low of 247 in the week to Aug. 7, according to data on Friday from energy services firm Baker Hughes Co going back to 1940. That was 687 rigs, or 74 per cent, below this time last year. The weekly rig count has dropped or held steady since March. US oil rigs fell by four to 176 this week, their lowest since July 2005, while gas rigs held steady at 69, according to Baker Hughes data. More than half of the total US oil rigs are in the Permian basin in West Texas and eastern New Mexico where units fell by three this week to a record low of 121, according to Baker Hughes data going back to 2011. Drillers also added one gas rig, bringing the total oil and gas count in the Permian to 122. Even though US oil prices are still down about 32 per cent since the start of the year due to coronavirus demand. Destruction, crude futures have jumped 119 per cent over the past four months to around $41 a barrel on Friday on hopes global economies and energy demand will snap back as governments lift lockdowns. Analysts said higher oil prices will encourage energy firms to slow rig count reductions and start adding units later this year. The rig count is “inching closer and closer to a bottom … but we’re not there quite yet,” analysts at Tudor, Pickering, Holt & Co said this week.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/us-oil-gas-rig-count-falls-to-record-low-for-14th-week-baker-hughes/77425430

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Dominion takes $2.8 bln charge to exit Atlantic Coast natural gas pipe

U.S. energy company Dominion Energy Inc said on Friday (July 31) it took a $2.8 billion charge in the second quarter related to the cancellation of the Atlantic Coast natural gas pipeline from

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West Virginia to North Carolina. Atlantic Coast was the most expensive U.S. gas pipeline under construction when Dominion and partner Duke Energy Corp exited the $8 billion project earlier this month due to regulatory ncertainty following years of delays and billions of dollars of cost overruns. It is just one of several U.S. oil and gas pipelines mired in legal and regulatory battles with local and environmental groups that have found numerous problems with U.S. permits issued by Trump administration agencies. When Dominion started work on the 600-mile (966-km) pipe in 2018, the company estimated it would cost $6.0 billion to $6.5 billion and be completed in late 2019. In the weeks before canceling the project, however, Dominion said it could finish the project in early 2022 only if it received new federal permits soon that would survive court challenges.

In addition to regulatory delays, Atlantic Coast was also hurt by a short-term hit to gas demand from the coronavirus and a longer-term hit from growing consumer interest in clean energy projects. Still, there was a need for the pipeline and that will now be left unmet, Chief Financial Officer James R. Chapman said on a post-earnings call. Virginia is one of several states seeking to achieve 100% carbon-free power over the next two decades. Even though gas is the cleanest fossil fuel and considered by many analysts to provide a bridge from dirty coal to clean renewables, it still produces carbon. Dominion has plans to invest up to $55 billion over the next 15 years on zero-carbon generation, energy storage, gas distribution replacement and renewable natural gas.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/dominion-takes-2-8-bln-charge-to-exit-atlantic-coast-natural-gas-pipe/77296097

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Gas utility pushes back in court on California energy policy document

In a court filing, Southern California Gas Co said a state law passed in 2013 required the California Energy Commission to analyze every four years how to maximize the benefits of natural gas.

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The largest U.S. natural gas utility on Friday (July 31) pushed back against California’s efforts to phase out gas, asking a state court to force the revision of a document dealing with the transition to cleaner methods to generate power and heat buildings. In a court filing, Southern California Gas Co said a state law passed in 2013 required the California Energy Commission to analyze every four years how to maximize the benefits of natural gas. A report written by the agency earlier this year does the opposite and should be vacated, the court documents allege. The complaint, filed in state court in Orange County, is the natural gas industry’s latest attempt to challenge efforts in states with strict environmental rules to address the fossil fuel’s contribution to climate change. In the last year, 30 California cities have passed measures to reduce the use of natural gas for heating and cooking.

“Phasing out natural gas is fundamentally inconsistent with the CEC’s statutory mandate,” SoCalGas said in the court filing. The unit of Sempra Energy was joined in the action by natural gas transportation fuels company Clean Energy Fuels Corp and members of the Utility Workers Union of America. In a biennial analysis of the state’s energy system published earlier this year, the CEC said it expects natural gas consumption to keep declining in the state as more renewable energy is added to the grid and buildings and transportation are electrified. California has among the most aggressive climate policies in the nation, including a requirement that utilities generate 100% of their electricity from carbon-free sources by 2045. “Difficult decisions about replacing aging gas infrastructure and managing investments to maintain energy reliability are needed,” the report said. CEC spokeswoman Sandy Louey said the agency does not comment on ongoing litigation.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/gas-utility-pushes-back-in-court-on-california-energy-policy-document/77295453

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Global LNG Development

Global LNG-Asia LNG prices at over 6-month high on Gorgon concerns, cargo buying

Asian spot liquefied natural gas (LNG) prices rose to more than a six-month high this week (Aug 9-15) on concerns over production from Australia’s Gorgon plant and demand from some buyers in the region.

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The average LNG price for September delivery into northeast Asia LNG-AS was estimated between $3.60 and $3.80 per MMBtu, $0.60 per MMBtu above last week’s level. The price for October delivery was seen between $3.80 and $4.00 per MMBtu. This is for the first time since end-January when prices increased to levels close to $4.00 per MMBtu, Reuters data showed. Gorgon Train 2 has been shut for maintenance since May, with its restart date delayed to September from July. Two other trains were also ordered to be inspected after safety concerns were raised. Offtakers from the plant have likely bought several cargoes to replace Gorgon volumes in the past two weeks, traders said. Some buyers in Japan, China and India have also been buying cargoes, but said overall demand was still subdued, they added.

“There is a slight uptick in demand, but not a huge amount and supply seems to be there,” one of them said. China’s Shenzhen Energy has bought a September delivery cargo at $3.40-$3.50 per MMBtu, two industry sources said. Indian Oil Corp has purchased a late September cargo at around $3.40 per MMBtu, two other trade sources said. India’s Reliance Industries has bought an October delivery cargo at around a $0.15 discount to S&P Global Platts Japan Korea Marker (JKM) price and a November cargo at a $0.45 discount to JKM, the two trade sources said. Bangladesh state-run Rupantarita Prakritik Gas Company plans to issue a tender for country’s first spot cargo to be delivered next month. European gas prices have declined after picking up last week but were still hovering at an over 4-month high, with traders expecting more cargoes to arrive in Europe in September and October than previously expected following the price rise.

Source: LNG Global/Reuters

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Global LNG-Asian LNG prices hit over 4-month high on firm Europe, U.S. gas prices

Asian spot liquefied natural gas (LNG) prices jumped to a more than four-month high this week (Aug 2-8), tracking firmer gas prices in Europe and the United States, and

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as major cities in North Asia face warmer-than-usual weather potentially boosting demand. The average LNG price for September delivery into northeast Asia LNG-AS was estimated at about $3.10 per MMBtu this week, up 40 cents from the previous week. Prices for cargoes to be delivered in October were estimated at about $3.50 per MMBtu. “Market is bullish due to supply issues from Gorgon and also because European and U.S. gas markets are firm,” said a Singapore-based LNG trader, referring to the delayed restart of a production line at the Chevron-operated LNG plant in Australia. The maintenance on Train 2 of the Gorgon project began in late May, but a restart initially planned for mid-July has been delayed until early September. The recent rise in spot prices has seen buyers snap up cargoes at prices that are still low compared with previous years, the trader said. Prices across Europe rose this week on the back of lower Russian flows, while those at the Henry Hub in the United States gained on hotter-than-normal weather.

Tokyo, Beijing and Shanghai are expected to see warmer-than-usual temperatures next week, according to Refinitiv weather data, potentially boosting demand for electricity as people switch on air conditioners. Malaysia’s Petronas sold a cargo from the Gorgon LNG plant for mid-September loading to Gunvor at about $2.90 per MMBtu, one industry source said. PetroChina put in the lowest offer to a tender issued by Pakistan LNG for a mid-August cargo. Sakhalin and Papua New Guinea LNG plants sold September-loading cargoes at above $3 per MMBtu, while Nippon Steel bought a cargo at about $3 to $3.15 per MMBtu, traders said. India’s Reliance Industries and Indian Oil Corp, South Korea’s PRISM Energy and KOMIPO, Japan’s Tohoku Electric, and China’s Shenzhen Energy were in the market looking for September to October cargoes, they said.

Source: LNG Global/Reuters

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U.S. LNG exports set to rise for the first time in six months; prices jump

So far this year, LNG buyers around the world have canceled more than 100 U.S. cargoes as prices for the fuel collapsed to record lows in Europe and Asia after demand fell due to the coronavirus.

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U.S. liquefied natural gas exports are on track to rise in August for the first month in six, helping to boost U.S. gas prices by over 17% on Monday (Aug 3), analysts said. So far this year, LNG buyers around the world have canceled more than 100 U.S. cargoes as prices for the fuel collapsed to record lows in Europe and Asia after demand fell due to the coronavirus. Even before the pandemic spread, global gas prices were already trading at their lowest levels in years after a record number of LNG export terminals entered service in 2019, flooding the global market with fuel, at the same time winters in Europe were warmer-than-normal, forcing utilities to leave record amounts of gas in storage. Stockpiles in the United States and Europe are expected to reach all-time highs at the end of the injection season – though not as high as previously forecast following a hot summer and rising U.S. LNG exports. “LNG feedgas demand has returned to … its highest level since late June, stoking the market’s hope that export demand bottomed out in July and will begin to recover this fall,” said Daniel Myers, market analyst at Gelber & Associates in Houston.

The amount of gas flowing to U.S. LNG plants averaged 4.0 billion cubic feet per day (bcfd) so far in August, according to Refinitiv, putting LNG exports on track for their first monthly gain since hitting a record high of 8.7 bcfd in February. That compares with a 21-month low of 3.3 bcfd in July when buyers canceled the most cargoes in a month. With LNG exports rising again and hot weather expected to blanket much of the United States until late August, U.S. gas futures soared over 17% on Monday to their highest since early May.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/update-1-u-s-lng-exports-set-to-rise-for-the-first-time-in-six-months-prices-jump/77341519

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Asian LNG prices are way too low for U.S. exporters

A massive wave of investment has poured into LNG export terminals around the world in recent years, and nearly all of the projects have China at the center of their business plans.

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While China has been the largest source of LNG demand growth for quite some time, and will likely remain a key buyer going forward, Chinese demand may not be large enough for all of the LNG projects on the drawing board. More than a few LNG projects face investment risks as China balks at prices needed for many export terminals to make sense, according to a new report.  The LNG market went into a tailspin this year due to the pandemic, but in reality, the global market for natural gas was heading into a downturn at the start of 2020, before the coronavirus led to widespread shutdowns. A substantial increase in export capacity in 2019 outpaced demand growth, pushing down prices. Against a weak backdrop, the pandemic-related demand destruction knee-capped the market, leading to LNG prices in Asia (JKM) to collapse below $3/MMBtu and even below $2/MMBtu for a period of time. LNG has been the worst-performing commodity during the pandemic, trailing even crude oil and coal. The pain of the LNG supply glut has been felt most acutely by U.S. exporters. The gas glut in Asia led to storage filling up in Europe, and ultimately the flexibility of American LNG translated into cancelled cargoes from the United States. Dozens of cargoes were cancelled in each of June, July and August. Still, JKM prices have edged up and fewer U.S. cargoes are slated to be cancelled for September, perhaps a sign that the worst is over. But hopes of a rebound in global LNG markets should be tempered. In the long-term, China may not absorb all of the gas that LNG developers expect. “A China-led rebound for the U.S. LNG industry will face stiff price resistance from Chinese buyers,” according to a new report from the Institute for Energy Economics and Financial Analysis (IEEFA). The report did a deep dive into the Chinese market, and the authors found that Chinese importers were losing money on imported LNG. For example, PetroChina lost money on importing LNG every year between 2015 and 2019. The IEEFA analysis is not based on trade war concerns, but instead only focuses on the internal market in China.  China has expanding gas connections via pipeline from Central Asia, ample coal and renewable capacity, and it also has infrastructure constraints that prevents imported LNG from serving all parts of the domestic market. This limits the “long-term upside for a U.S. LNG boom,” wrote Clark Williams-Derry and Ghee Peh, authors of the IEEFA report. Any expansion in LNG imports going forward would need to be done on the basis of import prices below $7/MMBtu. Anything above that threshold may not work out financially for Chinese companies, IEEFA found. But here’s the problem. $7/MMBtu is likely to be too low for U.S. LNG exporters. The cost for LNG to arrive in Asia requires somewhere around $2/MMBtu for Henry Hub gas, plus $3/MMBtu for liquefaction, plus another $1/MMBtu for transportation. That means it roughly costs $6/MMBtu at a minimum to ship gas to Asia.

Complicating that equation is that Henry Hub is at unusually low levels, and certainly at unsustainably low levels if U.S. shale gas drillers ever want to make any money. So, Henry Hub will likely need to rise above $2/MMBtu. For instance, Goldman Sachs has repeatedly forecast U.S. natural gas prices in 2021 will exceed $3/MMBtu. On top of that, any increase in shipping costs would further negatively impact the equation.

That means that American gas may need to fetch well above $7/MMBtu in the long run if the trade is to be profitable. “Given recent U.S. gas feedstock and shipping costs, U.S. LNG imports barely price into the Chinese gas markets; and even modest increases in gas or shipping costs could render U.S. LNG imports entirely uneconomic,” the authors wrote. These pricing dynamics don’t necessarily apply to existing facilities with contracts and sunk costs. But any new U.S. LNG export facility now faces significant investment risk. Indeed, new facilities are generally not built on spec; they require buyers to sign on before the FID is made. As a result, new U.S. LNG projects may not go forward.  A separate report from the Oxford Institute for Energy Studies (OIES) recently came to a similar conclusion. OIES said that because of the glut, buyers would balk at signing long-term contracts with rigid terms. “It is therefore clearly relevant to ask whether we should expect to see any new US LNG investment decisions being taken in the foreseeable future, especially with buyers not rushing to sign new long-term contracts,” OIES wrote in a July report. Many scenarios for American gas exporters bake in the assumption of an inexorable and unstoppable rise in Chinese gas demand – something along the lines of “if we build it, they will come.” But “[b]ullish demand projections for LNG demand in China and Southeast Asia tend to ignore the price sensitivity of these markets, as well as the many logistical, economic, and political obstacles to the development of LNG and gas infrastructure,” the IEEFA analysts said. “The most optimistic LNG demand scenarios are simply unrecognizable to experienced analysts of the Chinese energy sector.”

https://oilprice.com/Energy/Crude-Oil/Asian-LNG-Prices-Are-Way-To-Low-For-US-Exporters.html

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South Korea’s POSCO set to supply LNG to Pakistan for first time: sources

South Korea’s POSCO International Corp is set to supply liquefied natural gas (LNG) to Pakistan LNG for the first time, two sources familiar with the matter said. Posco offered the lowest bid of 7.9673% of Brent crude oil prices

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for the supply of an LNG cargo into Pakistan delivered over Sept. 12 to 13, according to a notice posted on Pakistan LNG’s website. SOCAR Trading placed the lowest offer of 6.9511% of Brent crude oil prices for another LNG cargo to be delivered over Sept. 25-26, according to the notice. It is unusual for Posco to participate in Pakistan LNG’s import tender and could be the South Korean company trying to expand its third-party trading activities, according to an industry source.

Four other companies technically qualified for the import tender by Pakistan LNG and placed offers for the two cargoes ranging from 8.1788% to 10.7143% of Brent crude oil prices. They are Gunvor Singapore, PetroChina International Singapore, Trafigura and Vitol Bahrain. The prices are expressed as a “slope” of crude oil prices, a percentage of the Brent crude price, and are typically a pointer for the opaque spot LNG market. Separately, Pakistan LNG has bought an additional prompt cargo that it had sought for mid-August delivery at 9.3421% of the average price of Brent crude oil prices over three months, the company said on its Twitter account. The company had invited bids from limited suppliers for the prompt requirement due to an urgent requirement from the fertilizer sector, Reuters reported earlier.

Source: LNG Global

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Chubu Elec expects JERA to book 50 bln yen LNG resale loss

Japan‘s Chubu Electric Power Inc said on Friday (July 31) its JERA joint venture is expected to book a 50 billion yen ($477 million) loss on the resale of liquefied natural gas (LNG) cargoes in the year to March.

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Japanese electric utilities have committed to large volumes of LNG under contracts linked to oil prices, yet spot prices are much lower due to oversupply as the pandemic saps demand. JERA, the world’s biggest buyer of LNG, said this month that it has booked tens of billions of yen in estimated one-off losses on its supply for the year ended on March 31. On Thursday, JERA, equally owned by Chubu and Tokyo Electric Power Company Holdings, said its recurring profit sank 61 per cent to 41.6 billion yen in the April-June quarter after posting a 9.1 billion yen loss on the resale of LNG, half of which was booked in Chubu’s earnings for the quarter. JERA did not provide its annual forecast but Chubu on Friday predicted its recurring profit for the current financial year would fall 35 per cent to 125 billion yen as JERA’s losses on reselling LNG cut its profit by 25 billion yen. “This is based on our own estimate,” said Yoshinobu Mishima, manager at Chubu’s Tokyo office said. Chubu’s recurring profit for the April-June quarter fell 40% to 48.18 billion yen as power sales slumped.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/chubu-elec-expects-jera-to-book-50-bln-yen-lng-resale-loss/77285223

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Natural Gas / LNG Utilization

Florida: transit agency gets federal grant to switch diesel buses to CNG

The U.S. Department of Transportation and Federal Transit Administration (FTA) announced that the Jacksonville Transportation Authority (JTA) is receiving an $11.9 million Bus & Bus Facilities discretionary grant.

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With this grant, the JTA will take eight diesel buses that have met FTA’s Useful Life standards out of service, and replace them with eight new CNG buses. Not only does this assist in JTA’s bus replacement schedule, but it directly supports JTA’s sustainability effort by eliminating diesel buses that emit higher CO2 emissions, and replacing with cleaner NGVs.

The new buses are also part of a larger project that proposes to rehabilitate and upgrade some of the most pressing state of good repair needs at the JTA’s Myrtle Avenue Operations Campus. “Our congressional delegation fought hard on behalf of the JTA in seeking this grant funding,” said JTA CEO Nathaniel P. Ford Sr. “Thank you to Congressman John Rutherford, Congressman Al Lawson, Sen. Marco Rubio, Sen. Rick Scott, FTA Acting Administrator K. Jane Williams and U.S. Transportation Secretary Elaine Chao for your continued investment in Jacksonville and the JTA.” These replacement and rehabilitating projects will improve service reliability, enhance access and mobility for customers, and supports the JTA’s initiative of a safe, reliable and sustainable infrastructure for their employees.

http://www.ngvjournal.com/s1-news/c3-vehicles/transport-authority-in-florida-gets-us-doe-grant-to-switch-diesel-buses-to-cng/ 

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United States: Anheuser-Busch CNG fleet expands with new 180 vehicles

Agility® Fuel Solutions, a business of Hexagon Composites, received a substantial order from longtime customer Anheuser-Busch. Over 180 new trucks equipped with Agility’s ProCab® 175 CNG Fuel Systems will be joining the fleet.

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The estimated total value of the order is over USD 8.0 million. Delivery of the systems is scheduled from mid-Q3 to mid-Q4, 2020. In 2014 and 2015, Anheuser-Busch converted 160 diesel-fueled trucks in Houston and St. Louis to fleets powered by CNG engines. As the next step to achieve their sustainability goal of reducing carbon emissions across their value chain by 25% by 2025, the brewer will be expanding this fleet and investing in technology to transition to cleaner-burning renewable natural gas.

The two fleets are expected to travel more than 8.5 million miles each year. By transitioning the trucks within these fleets to renewable natural gas, the brewer expects to reduce their emissions by more than 70% compared to conventional diesel – the equivalent of taking more than 66,000 passenger cars off the road or planting more than 8 million new trees. “Biomethane is a pipeline quality gas fully interchangeable with CNG and it’s one of the cleanest burning fuels available. We are pleased to see that our systems continue to enable Anheuser-Busch to opt for lower emission solutions in their fleet,” commented Seung Baik, President of Agility Fuel Solutions. “The performance, durability, and price stability of natural gas-powered trucks make it a great value for distribution fleets like Anheuser-Busch.” 

http://www.ngvjournal.com/s1-news/c3-vehicles/united-states-anheuser-busch-cng-fleet-expands-with-new-180-vehicles/

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IVECO obtains approval for the first LNG-powered Stralis in Argentina

IVECO announced the homologation certification for the new Stralis CNG Cursor 13 and in its LNG configuration in Argentina. The novelty of the brand corresponds to the new heavy duty configurations of the Natural Power range,

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with CNG and LNG versions for the South American region. For these new products, developments and new approvals were made in Europe. The process complied with and passed the audit, in which the fundamental aspects for marketing in the country were considered. The new Stralis Cursor 13 CNG -in its two configurations AS440S46T/P 4×2 tractor and AS460S46 T/P 6×2- enlarges the family of the “Natural Power” range with the most powerful alternative fuel engine in the Argentine market. With a new cab and ample space for greater comfort on long-distance missions, the vehicle is designed for the demanding working conditions of South America. It offers an FPT Industrial Cursor 13 engine, designed and developed to be propelled with natural gas, with a power of 460 HP and 2,000 Nm of torque, complying with Euro VI regulations and with a Piek noise emission certification of 71 Db.

The truck has eight tanks of 115 liters of CNG each, offering a total of 920 liters of CNG, allowing an approximate range of 600 kilometers. Regarding LNG option, IVECO approved its first Stralis versions in Argentina, being a commitment to the future in terms of alternative energies. Sharing the same technical features of CNG, the LNG-powered truck has two tanks of 540 liters each, offering a range of up to 1,600 kilometers depending on the mission of the carrier, making it the option of choice for long-distance journeys. This figure allowed IVECO the world record of kilometers of autonomy with trucks propelled by alternative fuel in a test developed in Europe. “With vehicles 100% manufactured and developed to run on CNG and LNG as well as with bio-CNG and bio-LNG, we confirm once again our leadership in alternative and sustainable fuels at a global level. With a history already established in Argentina, where we were pioneers in CNG, we will continue working for the needs of our customers and caring for the environment. These vehicles are the ideal option for our medium and long distance carriers, offering the same performance as the equivalent diesel version, with great savings in the fuel costs,” said Francisco Spasaro, Commercial Director of IVECO in Argentina. Likewise, the development of the homologation completed the requirements of ENARGAS (National Gas Regulatory Entity) in Argentina. “The new certification is endorsed with regard to Active and Passive Safety by the Undersecretary of Industry, under the Ministry of Productive Development, and in terms of polluting emissions by the Secretary of Environmental Control and Monitoring under the Ministry of Environment and Sustainable Development,” added Emanuel Bouson, responsible for Approvals and Technical Regulations at IVECO in Argentina.

http://www.ngvjournal.com/s1-news/c3-vehicles/iveco-obtains-approval-for-the-first-lng-powered-stralis-in-argentina/

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YELLOW Project: first European natural gas station with buried tank

HAM Group has opened a service station in HAM Irún, in Gipuzkoa (Spain), which is the first LNG-CNG station in Europe with a buried tank. The opening of this new facility has been possible thanks to the development of the Yellow Project,

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which has allowed the installation of an Ultra-compact Gas Station. The service station is located in only 310m2, being completely passable by vehicles on 95% of its surface, thus eliminating any impact on vehicle circulation flows and reducing the aesthetic impact. It has an 80,000 liter LNG tank, which works at low pressures (3 bars). The tank, which does not occupy space for the service station, has a submerged pump and the capacity to supply up to 12,000kg/h, and 10,000 kilos of CNG per day. The facility has an buried coldbox, an “on the fly” conditioning system and allows the installation of up to 2 double dispenser (4 hoses) of LNG for trucks and heavy vehicles, and 1 double dispenser (2 hoses) of CNG for passenger cars, light vehicles and trucks. Safer and with fewer necessary safety distances, the station is monitored remotely, guaranteeing its perfect operation and allowing any incident to be quickly resolved. The Yellow Project has been developed by HAM Criogénica and our R&D department, which in constant contact with our customers, suppliers and manufacturers, works to develop high quality and reliable advances in improving infrastructure and logistics service. CNG-LNG, taking respect for the environment as a starting point. The tank has been manufactured by Vakuum, a HAM Group company, specialized in the design, production of semi-trailers and mobile units for the transportation of LNG and gases from the Air, following the latest innovations and quality and design regulations from the EU and ASME. The rest of the equipment has been designed and manufactured at HAM facilities.

http://www.ngvjournal.com/s1-news/c4-stations/yellow-project-first-european-natural-gas-station-with-a-buried-tank/

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Spain: HAM launches CNG/LNG mobile refueling station in Alicante

HAM Group has installed a new mobile unit for LNG and CNG in Crevillente, Alicante. The service station is located on the Carretera Estación Ferrocarril, 0, km 0010, next to exit 526 of the A7, also known as Autovía del Mediterráneo,

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which runs parallel to the Mediterranean coast, beginning its journey in Algeciras and ending in Abrera, passing through towns such as Marbella, Almería, Murcia, Elche, Alicante, Valencia, Castellón and Tarragona, among others. HAM’s new natural gas mobile unit has a tank of 20m3 and has a dispenser with a hose for refilling LNG to trucks and heavy vehicles, and a CNG hose for refueling passenger cars and light vehicles. It is a public filling station, where customers can access 24/7. HAM Group continues to innovate with its portable solutions for the supply of natural gas, such as their mobile stations HAM Benavente LNG-CNG, HAM Murcia LNG, HAM Riba-roja CNG-LNG and Lidl Suiza LNG, becoming a benchmark in the sector and ensuring customers can enjoy the advantages of CNG and LNG quickly, efficiently, safely and economically. With this new refueling mobile unit in Alicante, HAM expands its network to 71 service stations, between fixed and mobile, spread across Spain and strategic points on the main European road transport routes.

http://www.ngvjournal.com/s1-news/c4-stations/spain-ham-launches-cng-lng-mobile-refueling-station-in-alicante/

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Hermes now runs UK’s largest CNG fleet with 90 vehicles, all from IVECO

Hermes will be taking delivery of a further seven 400HP IVECO Stralis Natural Power (AS440S40T/P NG) 4×2 trucks into its 400 strong fleet of tractor units, and now runs the largest CNG powered fleet in the UK of 90 vehicles,

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all of which are IVECO. The Stralis NP trucks were chosen based on its green credentials, low fuel costs and driver acceptability. In addition to primary environmental considerations, the company has reported fuel cost savings per truck, making the Stralis NP’s TCO very favorable when compared with diesel. CNG Fuels has built a biomethane station next to the Hermes parcel distribution facility in Warrington, which is the largest of its kind in Europe, capable of refueling 800 trucks a day. 100% of the fuel supplied by CNG Fuels is renewable and sustainable biomethane approved under the Department for Transport’s Renewable Transport Fuel Obligation (RTFO) scheme and is currently sourced from waste feedstocks, such as food waste.  “We are now the largest CNG-powered fleet by choice made possible by working with forward-thinking partners such as IVECO, CFS Glasgow and CNG Fuels,” added McIntyre. “The majority of new trucks we have added to our fleet over the past 12-18 months have been CNG instead of diesel, a policy that is set to continue.”

The Stralis NP continues to be one of the most sustainable heavy trucks for 40-ton operation with natural gas tanks mounted on both sides of the chassis, making it perfect for Hermes’ back-to-base trunking operation. Drivers also benefit from a quieter driving experience. “We enjoy working with Hermes by introducing innovation and sustainability into its fleet operation. Our trucks are already paying Hermes dividends and by working with external partners like CNG Fuels we are able to help operators realize that gas power is a proven technology that is a reality today for heavy truck operation, and a reality that can benefit the environment, their green credentials and their bottom line,” said Gareth Lumsdaine, IVECO Truck Business Line Director. Sustainability has become an even greater focus for Hermes as it continues to reduce the emissions and noise pollution of its fleet, particularly when operating in urban areas and trunking between depots at night.

http://www.ngvjournal.com/s1-news/c3-vehicles/hermes-now-runs-uks-largest-cng-fleet-with-90-vehicles-all-from-iveco/ [Edited]

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Agility launches new roof mount CNG fuel system for refuse trucks

Agility® Fuel Solutions has introduced its new third-generation roof mount CNG fuel system for Automated Side Loader, Rear End Loader and Front End Loader refuse collection vehicles.

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The company introduced its roof mount CNG fuel systems for refuse fleets in 2001, and since then, they have been used widely by fleets large and small across North America. With an efficient, rugged design utilizing Agility’s lightweight carbon fiber composite TUFFSHELL® ACF Type 4 CNG cylinders, and with fuel capacity options ranging from 60-92 diesel gallons equivalent (DGE), the roof mount systems can meet the needs of any refuse fleet. “With nearly 20 years of use in the field and with tens of thousands of systems on the road, we have seen the roof mount CNG fuel systems put to the test in nearly every imaginable scenario,” said Eric Bippus, Senior Vice President, Sales and Marketing. “With this new design, our team ruggedized the roof mount against physical damage from daily use, while also making the entire unit lighter and easier to install and service.” The internal CNG plumbing was redesigned to significantly reduce potential leak points and the placement of pressure relief devices (PRDs) for fire safety was improved to provide optimal coverage based on where fires are most likely to occur.

The new roof mount systems include full-length ¼-inch steel rub rails to defend against tree branch strikes, and to reinforce the entire structure. The aluminum exterior cover features a chamfered design, tool-free removable service access panels, fewer exposed seams, and button- head screws to prevent branches from catching or damaging the system. For a first-class look and a long-lasting and durable finish, the system’s internal framework is powder coated and the exterior unit can be color-matched to any fleet’s custom colors utilizing Agility’s in-house state-of-the-art painting system. The new systems are designed with tool-free access panels to allow for easier inspection and service. And for ease of installation, and in case the system needs to be removed for major vehicle repairs, revised lift points, exposed mounting points, and interfacing tube connections allow the entire CNG system to be mounted or dismounted quickly and safely as a single unit.

http://www.ngvjournal.com/s1-news/c5-products/united-states-agility-launches-new-roof-mount-cng-fuel-system-for-refuse-trucks/

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Polish largest bus operator expands eco-friendly policy, orders 70 NGVs

Representatives of the management board of public transport operator Miejskie Zakłady Autobusowe (MZA) in Warsaw and Solaris have signed a contract for the delivery of 70 low-floor city buses powered by natural gas.

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The new fleet consist of 40 Solaris Urbino 12 CNG and 30 articulated Solaris Urbino 18 CNG buses. In the 12-meter buses the total capacity of tanks will be over 1,500 liters, and in the articulated 18-meter buses it will be 1,700 liters. The newly commissioned vehicles feature a high equipment standard. The most important components enhancing passengers’ comfort will include: air conditioning in the whole vehicle, USB ports that make it possible to recharge mobile devices, a comprehensive passenger information system and a video surveillance system with cameras monitoring the passenger compartment as well as the driver’s cabin and the area in front of the vehicle. Another component increasing safety of passengers in public transport will be a breath alcohol ignition interlock. It requires the driver to undergo a breathalyser test.

If the test result is positive, the device prevents the engine from being started. These Solaris Urbino buses will also be fitted, as a standard feature, with closed driver’s cabins with a separate entry. This cabin will work perfectly throughout the epidemic as it limits driver’s contact with passengers, thus minimizing the risk of infection. In the 12-meter buses the total passenger capacity amounts to 90 people, whereas articulated buses offer room for 135 passengers. Following the contract, the first Solaris Urbino CNG buses will make it to Warsaw in April next year. The deliveries of all 70 vehicles are to be completed in mid-2021. Once they are completed, the total number of Solaris buses in the fleet of Warsaw operator MZA will go up to over 1,100 vehicles.

http://www.ngvjournal.com/s1-news/c3-vehicles/polish-largest-transit-operator-expands-eco-friendly-policy-orders-70-cng-buses/

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Spanish Port of Cartagena switches to sustainable fleet, adds CNG cars

The Cartagena Port Authority has just added five natural gas cars, two Seat León CNG for the Port Police and three Seat Ibiza CNG for the administration staff who carry out tasks in different buildings in the port and

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which have been acquired through renting. The former are equipped with the necessary elements for the police service and labeled with a specific design; and for greater versatility they have a tow hook. This purchase is in line both with the port’s environmental policy, which includes the renewal of its fleet with alternative fuel vehicles, and with the implementation of the 2030 Agenda of the United Nations Development Program.

It also brings Cartagena a little closer to the concept of a green and smart port in which both employees and users proactively develop and operate based on a sustainable development strategy. “We plan to gradually replace our vehicle fleet with more efficient ones. The acquisition of these new cars will facilitate the work of the Port Police, which currently has 50 troops and 4 cars, and whose job is to guarantee security at the two docks. They also use more sustainable fuel, such as compressed natural gas,” said the president of the Cartagena Port Authority Yolanda Muñoz. She added that, with this acquisition, two important objectives are achieved: “On the one hand, the cost of consumption will be reduced thanks to the use of natural gas (CNG and LNG) and it will also save on maintenance costs.”

http://www.ngvjournal.com/s1-news/c3-vehicles/the-spanish-port-of-cartagena-switches-to-sustainable-fleet-adds-cng-cars/

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GO TOP

LNG as a Marine Fuel/Shipping

Germany prepares to commission world’s first LNG-powered research ship

A unique new research vessel is being built in Germany at Fassmer shipyard in Berne/Motzen, Germany. The Atair, which will be operated by Germany’s Federal Maritime and Hydrographic Agency (BSH),

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is the world’s first LNG-fueled research vessel and will be the largest research vessel operated by Germany. Measuring approximately 246 feet in length, the vessel will replace a 30-year-old research ship of the same name. Once delivered to its owners, the new Atair will be used to monitor the marine environment as well as conducting measurement exercises and wreck searches in the North and Baltic Seas as well as in the North Atlantic. The vessel will be equipped with a broad range of modern scientific equipment and laboratories, navigation and radar equipment as well as sonar and echo sounders. It also features an innovative hull shape that will make the vessel quieter in operation as well ensuring that it meets the highest quality and performance standards. Among the broad range of scientific capabilities designed into the ship are two wet laboratories, a dry laboratory, and an oceanography and hydrography laboratory.

The Atair will also have a device for measuring air pollutants in ocean shipping, a sliding beam for geological work on the seabed and extensive diving equipment, including a diver pressure chamber. Additional desk space also provides areas for laboratory and transport containers to be transported on deck. The decision to power the Atair with LNG-fueled engines was made because of the significantly less emissions compared to a traditional diesel-fueled ship. As a result, the new Atair will not only comply with the TIER III exhaust emission regulations but also with the EPA TIER IV rules regarding soot particles. Furthermore, the underwater sounds of the vessel are optimized, which protects the marine environment and ensures optimal conditions for the scientific work. As part of the ongoing commissioning of the new research vessel, the Nordic energy company Gasum recently completed the first truck-to-ship liquefied natural gas (LNG) bunkering operation in Germany. The Atair is expected to enter into service before the end of 2020, replacing the prior research vessel that has been in service since 1987.

https://www.maritime-executive.com/article/germany-prepares-to-commission-world-s-first-lng-powered-research-ship

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Naturgy completes first LNG bunkering to ship Ireland in Valencia

Naturgy has successfully refueled the LNG-powered “Ireland” in the port of Valencia. This was also the first time that LNG was supplied to two different vessels the same day

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in the same port, which demonstrates the growth that the use of LNG as marine fuel is experiencing. The bunkering of the “Ireland”, a cement carrier that docked in the port of Valencia exclusively to refuel LNG before continuing its route to Turkey, was carried out using a 45 m3 (about 20 tons) tanker truck. The operation, which lasted three hours, was the result of collaboration between Naturgy and Nauticor, companies that have been working for years in promoting the use of LNG as fuel in their respective areas of influence.

The LNG supplied comes from the SAGGAS regasification plant in Sagunto, and Naturgy carried out the operation together with the transport company ESK, a collaborator of the energy company in operations of this type for industrial clients. The challenge of successfully carrying out an operation of this type, as well as the strategic location of Spain on the Mediterranean merchant routes, demonstrate the rise of bunkering in this geographical environment and the role that natural gas plays in heavy transport, in this specific case the maritime sector. Naturgy carried out more than 30% of bunkering operations in Spain during 2019, supplying 1,600 tons of LNG to ships.

http://www.ngvjournal.com/s1-news/c7-lng-h2-blends/naturgy-completes-first-lng-bunkering-to-the-ship-ireland-in-valencia/

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Technological Development for Cleaner and Greener Environment Hydrogen & Bio-Methane

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Biomethane connected to UK gas network for first time-National Grid

The renewable gas biomethane has been produced by Biocow Ltd’s Murrow anaerobic digestion plant in Cambridgeshire from cattle manure and straw.

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Britain’s National Grid said on Thursday that biomethane has been connected to the transmission system for the first time, as part of efforts to decarbonise the gas network. The renewable gas biomethane has been produced by Biocow Ltd’s Murrow anaerobic digestion plant in Cambridgeshire from cattle manure and straw. The pipeline will support flows of up to 15,000 cubic metres of biomethane per hour, enough for the annual gas consumption of 10 average households each hour. “Alongside hydrogen, biomethane will play a critical role in the journey to Britain achieving net zero,” said Ian Radley, head of gas systems operation at National Grid. Britain has a goal of reaching net zero greenhouse gas emissions by 2050 which will require a huge increase in renewable energy and investment to increase the stability of its energy networks.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/biomethane-connected-to-uk-gas-network-for-first-time-national-grid/77536716

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Chile funds green hydrogen project to decarbonize mining vehicles

With the goal of achieving carbon neutrality in Chile by 2050, the Production Development Corporation (CORFO) will finance the “Hydra” project, led by the Australian applied research center CSIRO Chile, ENGIE and

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the research center mining Mining3. It will develop hybrid powertrain modules for Chilean mining, replacing conventional diesel ones with units made up of state-of-the-art batteries and hydrogen fuel cells. With this initiative, in the future it will be possible to reduce 100% of greenhouse gas emissions from mining vehicles, extending to the entire mobility sector (pickup trucks to CAEX mining trucks) and enabling the development of a new economic pole based on green hydrogen. The project, one of the winners of the 2020 version of CORFO’s Innova Alta Tecnología Program, will seek to generate a versatile prototype, with multiple uses in mining and the ability to enable and generate new uses of this clean fuel in the country. “We are convinced that sustainable reactivation is essential to create a more resilient and robust economy for the future. In this sense, promoting the development of a new industry such as green hydrogen, respectful of the environment and which will also inject more competition and generate thousands of jobs in our country, is key. We hope that the project led by CSIRO Chile, which joins two other projects supported by Corfo and that promote the use of green hydrogen in mining, will be a great contribution in this regard,” stated Pablo Terrazas, Executive Vice-President of CORFO. The objectives of the project include the design and manufacture of a prototype of this hybrid powertrain that will be trialed on a test bench where the mining conditions will be replicated, including its operational use profile, under different loads, routes and altitude conditions. In turn, the optimal combination of cells/batteries will be obtained, it will solve the connection problems between these sources, it will study different hydrogen refueling strategies, in addition to collaborating in the adaptation and creation of protocols/regulations that guarantee safety in large scale operations.

“Thanks to the support of CORFO and our alliance with ENGIE and Mining3, we are taking concrete steps to transform Chile into a producer and exporter of green hydrogen. With almost 10 years in Chile and more than 100 in Australia, the CSIRO model based on collaboration, puts the Hydra project as a concrete example in this sense,” said Dr. Orlando Jiménez, Executive Director of CSIRO Chile. “We are happy to have CORFO’s support for the Hydra project. We believe that renewable hydrogen is key to decarbonizing the mining industry. We look forward to joining forces with CSIRO Chile and Mining3 to contribute to Chile’s energy transition and help boost the country’s hydrogen economy,” added Michèle Azalbert, CEO of ENGIE’s Hydrogen Business Unit.

http://www.ngvjournal.com/s1-news/c7-lng-h2-blends/chile-supports-green-hydrogen-project-to-decarbonize-mining-vehicles/

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New alliance will allow development of hydrogen mobility in Murcia

Disfrimur, Grupo Terramovil and the National Hydrogen Center (CNH2) have signed a collaboration agreement to carry out various activities related to scientific research, technological development and

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the implementation of applications in the field of hydrogen and fuel cell technologies, ensuring the complementarity of their actions. Following the signed agreement, the Spanish Region of Murcia will have the first hydrogen refueling station. The facility will operate and will offer hydrogen with a purity of 99.99%. Undoubtedly, this new project takes an important step towards the arrival of this fuel and supports a technology that represents the future. Disfrimur and Grupo Terramovil are companies committed to the decarbonization of transportation. In its commitment to provide the best services with the least environmental impact, Disfrimur currently has a fleet of 600 vehicles less than 3 years old. These trucks travel more than 43 million km per year and 11% are powered by natural gas. In turn, Terramovil also bets on more sustainable and ecological vehicles within its varied range, since within the brands it represents it has all the alternative fuel technologies. The collaboration between both companies and the CNH2 represents another step in the confidence of implementing hydrogen as a new energy vector in the Region of Murcia that offers countless possibilities for consumption, storage and transport, thus betting on sustainable mobility and promoting its use in zero emission vehicles.

http://www.ngvjournal.com/s1-news/c7-lng-h2-blends/new-alliance-will-allow-the-development-of-hydrogen-powered-mobility-in-murcia/

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France: Dijon deploys complete zero emission hydrogen mobility chain

ROUGEOT Energie, operating as general contractor EPC on behalf of Dijon Métropole Smart EnergHy (DMSE), has selected McPhy’s hydrogen production, compression and distribution solution to supply the metropolitan fleet of

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heavy (buses, garbage trucks) and light (utility and passenger cars) vehicles. With a contract of more than €4 million, McPhy will design, build and integrate two refueling stations with a capacity of 400 kg of hydrogen per day each, connected to a 1 MW high-power electrolyzer. “The project supported by DMSE contributes to the democratization of hydrogen as a zero-emission alternative for public, professional or private transport. Our stations will make it possible to supply all the hydrogen mobility in the region: buses, garbage trucks, utility and private vehicles. Buses, for example, will be able to refuel with hydrogen produced on site, from household waste or local renewable energies, and travel more than 300 km without emitting any CO2 or polluting particles. More than ever, we are convinced that hydrogen has a decisive role to play in the fight against air pollution and climate change,” said Laurent Carme, CEO of McPhy. The project company DMSE was created by Dijon Métropole in collaboration with ROUGEOT Energie, to deploy a complete zero-emission hydrogen ecosystem. The first step of the plan is to implement, in the north of Dijon, a McPhy hydrogen solution composed of two hydrogen stations, coupled with on-site hydrogen production. The “Dijon Nord” project has received support and co-financing from the French Environment and Energy Management Agency (ADEME). Four distribution terminals for both heavy and light vehicles will thus be available to supply the zero-emission vehicles of the collectivity and its partners. This fleet of hydrogen vehicles will initially be made up of 27 buses, nine garbage trucks and around 15 light vehicles. The project is expected to reach a total of 200 buses, 50 garbage trucks and 250 light vehicles by 2030.

The two McPhy’s McFilling hydrogen stations, one offering a filling pressure of 350 bar and the other offering a “Dual Pressure” configuration (350 and 700 bar), will ensure, thanks to a very high availability rate and a total daily potential of 800 kg of hydrogen delivered, the continuity of public services and the refueling of professional and private vehicles in the area. Indeed, the solution proposed by McPhy offers a fast refueling time, around a few minutes, and the possibility of simultaneous refueling, thanks to the redundancy of the equipment, which boosts the capacity of the stations in case of peak consumption. Interfaced with the hydrogen stations, the McLyzer electrolyzer will have a production capacity equivalent to 1 MW of high-power electrolysis and will be equipped with high current density electrodes, ensuring optimal performance and energy efficiency to complete this hydrogen production and distribution ecosystem.

http://www.ngvjournal.com/s1-news/c4-stations/france-dijon-develops-hydrogen-refueling-infrastructure-for-local-vehicles/

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