NGS’ NG/LNG SNAPSHOT – December 2019, VOLUME 2
National News Internatonal News
NATIONAL NEWS
City Gas Distribution & Auto LPG
Most city gas distribution projects running behind schedule: FICCI report
City gas distribution (CGD) projects are not able to keep up with the timelines set by the Petroleum and Natural Gas Regulatory Board (PNGRB), according to a report by the Federation of Indian Chambers of Commerce & Industry (FICCI).
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The report released earlier this week said that barring Delhi-NCR (National Capital Region), Mumbai and Gujarat, CGD development has been slow due to lack of major anchor customers in non-metros, lack of policy and judicial support and local or state level clearances and administrative challenges. Noting that the CGD industry poses some state level challenges, the report said, “Pipeline laying has faced land acquisition challenges due to local farmers’ protest and unviable routes proposed by state governments, causing major project delays.” Listing changes in government policy needed to bring about better adoption of natural gas, the report said, “This is the stage when natural gas must be brought under GST (Goods and Services Tax) and more importantly, gas should be treated at par with coal with 5 per cent GST.” FICCI also proposed a customs duty waiver on LNG and mandating use of gas in industries instead of fuel oil, furnace oil, and petcoke to address environmental issues.
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ET Auto NGVC: Natural gas vehicles have potential to become mainstream transportation mode
In a panel discussion ‘NGV as a mainstream mode of transportation – A Real Alternative’, industry experts discussed their feasibility in the Indian scenario as well as challenges faced in natural gas vehicles to become the preferred mode of transportation.
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Pointing out that in DTC has the world’s largest CNG fleet of 1800 buses and that government, Manoj Kumar, IAS, MD, Delhi Transport Corporation, said, “ Usage of CNG has brought down our costs. We need to attract the customers to use natural gas and for that, the price gap needs to come down.” He further added that the Delhi government is planning to procure 300 electric buses under FAME II. Ashish Chutani, Head – Government and Policy Affairs, iterated, “CNG does not only have the potential of becoming alternate fuel, but also a mainstream mode of transportation given that we make adequate investments in R & D and add more and more CNG stations. E S Renganathan, Managing Director, Indraprastha Gas Limited (IGL) underlined that 3 As- Availability, Accessibility and Affordability are central to the growth of the whole CNG ecosystem in India the coming years. He added, “CNG needs to be included in the GST so that there are no other price differentials.” Emphasizing on the need for transparent analysis of energy security and infrastructure creation, PK Banerjee, Executive Director, SIAM highlighted, ” As far as fuel diversification is concerned, a clear road map is very important. We need to know which fuel will fit which segment because CNG might not be very relevant in the two-wheeler segment, but find its usage in three-wheeler cargo vehicles.” Echoing similar views, Rajiv Vij, MD and CEO, Carzonrent India opined, “In terms of infrastructure, the industry has failed the consumers. You see queues all over not because of the price differences but because the time is taken to fill gas which has not been reduced.” Citing the real challenge as a lack of clarity over the future roadmap, Vij pointed, ” Manufacturers don’t know where to invest, whether in EVS, CNG…We suddenly start talking about hybrids, fuel cell vehicles, EVs without any clarification without specifying the regulation and implementation.” Responding to that, Renganathan added that IGL has introduced the Queue Management System app to tackle the problem of long-waiting queues as well as incentivising the customer to make the digital payments. In a bid to make NGV as a main mode of transportation, industry experts are of the view that if there is a clear roadmap, CNG has the potential to cut down pollution as well as foreign exchange.” The first edition of Natural Gas Vehicle Conclave kicked off with a focus on exploring NGVs and an alternate fuel story, which will help the industry and the government to meet the carbon emission target promised under the Paris agreement. ETAuto also released the Indian Auto Industry Status Report 2020 which brings the current scenario of the Indian auto industry and the challenges within. The full-day event aims to bring all the stakeholders together to discuss the key points, challenges and issues pertaining to NGVs.The event was sponsored by IGL, IGT, Maximum Brand Services, and Natural Gas Society along with ARAI. ET EnergyWorld and ET Government supported the event.
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IOCL to give 9 lakh domestic connections
Indian Oil Corporation Limited (IOCL) has committed to provide more than nine lakh PNG domestic connections and over 200 CNG stations in the geographical areas of Srikakulam, Vizianagram and Visakhapatnam districts, Union minister for petroleum and natural gas
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Dharmendra Pradhan said in the Rajya Sabha on Wednesday. “As per the minimum work programme submitted to the Petroleum and Natural Gas Regulatory Board (PNGRB), IOCL has committed to provide 9,29,842 domestic connections to households and set up 211 CNG stations,” Pradhan said, in reply to questions raised by YSRC’s Rajya Sabha member V Vijaysai Reddy. The minister said PNGRB has authorised IOCL for development of CGD networks in Srikakulam, Visakhapatnam and Vizianagram districts geographical areas under the ninth CGD bidding round. IOCL has also taken steps to establish hook-up facilities, construction of city gas stations and designing of networks to provide PNG to households, the minister said.
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GAIL to supply PNG in Dehradun
The target is to cover three lakh households spread over an area of 3,088 square km. GAIL Gas Ltd will supply PNG to three lakh households in Dehradun district under the city gas distribution project. Making the announcement here on Friday,
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GAIL Gas Ltd Managing Director (Marketing) V. Gautam said work on laying pipelines for the project will begin in a month. In five to six months, the firm will start supplying piped natural gas to 5,000 households in Chakrata, Dehradun, Doiwala, Kalsi, Rishikesh, Tyuni and Vikasnagar areas of Dehradun district, he added. The target is to cover three lakh households spread over an area of 3,088 square km in the district at a cost of Rs 1,500 crore in the next eight years. Registeration of PNG consumers under the project will soon get under way, the MD said. As laying pipelines from Haridwar to Dehradun is likely to take some time, PNG will be supplied in the district for the time being through de-compressed units (DCUs) of which 4-5 will be set up in Dehradun, Gautam said.
https://www.theweek.in/news/biz-tech/2019/12/01/gail-to-supply-png-dehradun.html
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Dibrugarh becomes first district in Assam to have CNG bus service
Stepping towards a pollution-free Assam, the first compressed natural gas (CNG) fuelled bus was flagged off during a ceremony at Assam State Transport Corporation (ASTC) office at Chowkidinghee in Dibrugarh on Thursday by the Deputy Commissioner (DC) Pallav Gopal Jha.
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Dibrugarh is the first district in Assam to have a CNG-operated bus service. The development comes within three months after the first CNG station of Assam was inaugurated by chief minister Sarbananda Sonowal at Chowkidingee in Dibrugarh. The bus, owned and operated by ASTC, will be plying from the city to Mulukgaon via Lahoal, Dikom and Chabua town. Stating it as a historic moment, DC Pallav Gopal Jha said that it is a step towards a pollution-free transport system in the district and he is hopeful that operation of the CNG bus will attract others to switch over to CNG. He also stated that efforts are on to introduce more such buses in the district in near future. The ceremony was attended by Additional Deputy Commissioner (ADC) Ranjit Konwar; ASTC Chief Engineer Bolin Das; Chief Commercial Manager, ASTC, Muruli Bora; Divisional Superintendent, ASTC, Tinsukia Division, Mitradev Changkakoti; and DTO, Dibrugarh, Sadananda Gogoi. The DC also inaugurated two more buses during the ceremony. These buses will operate from Assam Medical College (AMC) to Brahmaputra Cracker Polymers Limited (BCPL) via Dibrugarh University, with each bus expected to accomplish 5 trips per day along the said route. The starting departure time has been fixed as 7 am, 9 am, 11 am, 1 pm, 3 pm & 5 pm with base station between AMC and BCPL.
https://www.newslivetv.com/assam/dibrugarh-becomes-first-district-in-assam-to-have-cng-bus-service/
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Works on laying pipeline to supply gas to households progressing-Tamil Nadu
The pipeline laying works for the city gas distribution project is progressing near Taramangalam here. The project, implemented by the Indian Oil Corporation (IOC), will cover 5,000 sq.km. in Salem geographical area, which may include areas beyond the district.
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Sources said that the project would utilise pipelines to supply gas to households and compressed natural gas (CNG) stations here. In Tamil Nadu, Indian Oil won the bid to implement the project in Salem and Coimbatore and it would be implementing the project at an approximate cost of ₹ 1,300 crore. Sources in the IOC said that it would setting up a small Liquid Natural Gas terminal facility near the Steel Plant and pipelines were being laid for this purpose near Taramangalam. Gas would be supplied through pipelines from the terminal facility for commercial, household purposes and to CNG stations. Though the actual plan of the project was to source gas from the GAIL gas pipeline which would passing through Salem, considering the time taken for implementation of that project, the IOC may source gas through tankers from its Ennore LNG terminal facility until GAIL pipelines were laid, said the officials with Indian Oil. They added that they were aiming to complete the infrastructure works within two years. Through the project, the IOC was targeting to achieve 3 lakh household connections in eight years. The officials also said that they were planning to start at least three to four CNG charging stations through the existing Indian Oil outlets by April 2020.
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Piped gas remains a distant dream for Mohali residents
The Punjab government had notified the policy for providing PNG connections to households in April 2018. But, the laggard Mohali civic body has not implemented it. Already delayed by three years, residents of Mohali will have to wait longer to get piped natural gas (PNG)
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as the municipal corporation (MC) has yet to give digging permission to the company that was allotted work in 2016. The Punjab government had notified the policy for providing PNG connections to households in April 2018. But, the laggard Mohali civic body has not implemented it. The Indian Oil Corporation (IOC), in collaboration with Adani group, which has been allotted the work, has already laid the main gas pipeline of 12km on the Airport Road and some parts of Industrial Area, Phases 7 and 8B. But more digging work is required to take the main line to households. An Adani group representative, not wishing to be named, said the Government of India had allotted the gas pipeline work in 2014. “Two years later, we applied for permission to dig the ground to provide household connections in Mohali. But, we haven’t received approvals from the local civic body.” He further said their initial plan was to cover Phases 10 and 11, but now they will start with housing societies in Sectors 67, 68 and 70. “If we get permissions in the next 15 days, we will complete the work in these societies by March 2020,” he added. On his part, MC commissioner Kamal Kumar said he was not aware of the matter as he had recently assumed charge of the post, but he will summon the file and expedite the work. Besides Mohali, the company has laid pipeline of 3km on VIP Road, Zirakpur. There too, the permission to connect the main pipeline with households is awaited from the Zirakpur municipal council for the past six months. In Chandigarh, the company has already covered most of the southern sectors, and will soon start work in Sector 20 and Manimajra.
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MNGL seeks NMC nod for setting up CNG stations
The Maharashtra Natural Gas Ltd (MNGL) has written to the Nashik Municipal Corporation (NMC), seeking its nod to allow setting up CNG stations at six locations in the city for supplying green fuel to vehicles, especially autorickshaws.
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These stations would be at proposed bus depots and other vacant plots of the civic body and will supply the green fuel for city buses that the NMC would be introducing from April next year. The six locations identified are Tapovan, Sinnar Phata, plot near Vasant Pawar Medical College at Adgaon, plot near NMC’s fire brigade station in Panchavati, near Truck Terminus at Chehedi and plot near NMC’s water treatment plant at Pathardi. “We have received a letter from the MNGL and a decision on the issue will be taken soon,” an NMC official said. The NMC has plans to operate 400 buses, including 200 CNG buses, through private agencies. The bus service is to be operated on GCC (Gross Cutting Contract) for a period of 10 years. This includes purchase of new buses, its maintenance, employing drivers and purchasing fuel. The civic body will pay charges to private agencies on kilometer basis. Three agencies have already been identified to operate the buses and a letter of intent has already been issued. The NMC is now in the process of signing an agreement with the three operators. “We have already provided a draft of the agreement to the agencies and will soon sign it. Each agency will have to operate the first batch of 50 buses within three months from the date of agreement,” the NMC official said. The total operational cost for city bus service is estimated to be around Rs 210 crore per annum and the NMC will generate revenue through tickets. As per the DPR of the city bus service project, the city bus service will operate on 146 routes with over 759 bus stops across the city
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Maruti confident on BSVI, CNG models to make up for its exit from diesel
Auto market leader announced in June it was exiting diesel segment. Car market leader Maruti Suzuki India is confident its Bharat Stage VI (BSVI) and compressed natural gas (CNG) models will be enough to make up for the absence of diesel variants from its portfolio,
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helping it hold on to the top spot. Maruti is sticking to this strategy at a time when rival Hyundai is looking to make the most of the monopoly it will have in the compact diesel segment from April 1, 2020, when the BSVI emission norms kick in. The market leader’s confidence stems from the rapid shift in favour of petrol in the passenger vehicle (PV) segment. Maruti announced it was exiting the diesel segment in June, citing high costs involved in transitioning from BSIV-compliant to BSVI-compliant diesel vehicles. Other carmakers have followed suit in some or all segments. Maruti is hoping that BSVI petrol variants of Brezza and S-Cross will make up for the absence of diesel. The company is also placing its bet on CNG variants to fill the void. The maker of Baleno and Brezza took the lead in rolling out BSVI models from April, a year ahead of the 2020 deadline. It has sold nearly 380,000 BSVI-compliant cars. At present, CNG accounts for 8-9 per cent of total sales. In Mumbai and Delhi, about 40 per cent of Wagon R sold is CNG variant. Srivastava said availability of the fuel will play a major role in determining how quickly it is adopted. At present, only Delhi, Mumbai, and Gujarat have the requisite network. Maruti is betting on the government’s expansion plan of ramping up the network from the current 93 to 398 cities to sell more CNG cars. By the end of 2019-20, Maruti plans to sell 125,000 cars against 102,000 cars a year ago. “As the network expands, CNG will be a good option,” Srivastava said. Touching on the overall market scenario, Srivastava said October and November were good and the first few weeks of December also look promising. “But the real test will be next month when prices hikes announced by companies take effect,” he added.
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Electric Mobility
Growth of EV India from 2018-2026
The domestic electric vehicle market is predicted to grow 36% annually between 2019 and 2026 as the market has gained momentum following the implementation of the second phase of the EV incentives scheme in April.
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Under the government’s ambitious Faster Adoption and Manufacture of Electric Vehicles (FAME II) scheme to bring electric and hybrid vehicles into vogue, up to 1 million EV two-wheelers powered by new advanced technology battery of 2KWH are pegged to get subsidy of up to Rs 20,000 each.
Growth of EV India from 2018-2026
According to ISEA, total EV sales in 2018 hit 365,920 units and it is expected to grow 36 percent annually till 2026. Whereas the battery market is estimated to reach USD 520 million mark in 2018 and expected to grow at 30 percent annually during this period. ISEA took 2018 as the base year for its study, while the forecast period is 2019-2026. The IESA is an alliance of 96 stakeholders that comprises energy storage manufacturers, research institutes, universities, renewable energy companies and power electronics companies. When it comes to charger market, total charger sales in 2018 was under 1,000 units, the report predicts that this will reach 50,000 units by 2026 as public charging points are set to rise with an estimated investment of USD 520 billion. So on a whole it is damn clear that the EV market will grow rapidly with support from government as it pushes for largest penetration.
Source: electricvehicles.in
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Gas/ Pipelines/ Company News
GAIL may commission RLNG pipeline by March
GAIL India Ltd., which has been executing the 438-km Kochi-Koottanad-Mangaluru re-gasified liquefied natural gas (RLNG) pipeline, is confident of commissioning the line by March 2020 and commence RLNG supply to industries thereafter.
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GAIL could not meet the earlier deadline of September 2018 following difficulties faced in crossing the Chandragiri river in Kasargod district of Kerala and Netravathi river in Dakshina Kannada district. The company awarded the contract to lay the 111-km pipeline in North Kerala and Karnataka at a cost of ₹ 160 crore in August 2017. Work on crossing the Netravathi (410 m breadth) between Innoli and Arkula should be completed by January 15, said Tony Mathew, GAIL’s general manager in Kochi, Kerala. The company has adopted cut-and-cover method to lay the pipeline beneath the riverbed with the help of coffer dams, he told The Hindu. The company’s latest attempt in May this year to complete the crossing was futile. GAIL is facing a big challenge in crossing the Chandragiri that is abutted by steep hills on both sides and thickly populated areas. The company has adopted drilling technology from hill to hill as it was difficult to move machinery to the river banks. Chandragiri crossing should be completed by February-end, Mr. Mathew said. Those working at the Netravathi work site from Innoli-side said that the welded pipeline is laid 6 m below the riverbed almost up to the middle of the river course. The balance distance has to be covered within about a month, they said. Work on RLNG Terminal is under way on the Arkula-side to pump gas towards Malavoor and further towards the terminal near MCF. The pipeline is designed to transport 16 million cubic metres (MCM) of RLNG with Kochi’s demand for 5 MCM and Mangaluru industries assured demand for 4 MCM.
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Natural gas consumption must rise 3-fold in 10 years
New Delhi: India’s natural gas consumption will have to rise more than three-folds in next 10 years for the environment friendly fuel’s share to increase to 15% in the country’s energy basket, Oil Minister Dharmendra Pradhan said
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adding that a massive $60 billion is being spent to expand gas infrastructure to meet such a demand. Natural gas currently makes up for 6.2% of all energy consumed in the country. To cut dependence on polluting coal and liquid fuels, the government is targeting its share to rise to 15% by 2020-30. “Gas consumption has to rise to 600 MMSCMD for achieving 15% share in energy basket” from current levels of 166 MMSCMD, he said at a Ficci conference on gas infrastructure. Natural gas currently makes up for 6.2% of all energy consumed in the country. To cut dependence on polluting coal and liquid fuels, the government is targeting its share to rise to 15% by 2020-30. The current consumption comprises 80-90 MMSCMD of domestic output and the remaining coming by way of imports, he said. “A massive $60 billion is being spent on building gas infrastructure to meet the demand,” he said. The investment is being done in building LNG import terminals, laying pipelines and others.
https://www.thehansindia.com/business/natural-gas-consumption-must-rise-3-fold-in-10-years-587387
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Dharmendra Pradhan urges oil and gas industry to support innovation
Minister of Petroleum and Natural Gas and Steel Dharmendra Pradhan on Monday addressed FIPI (Federation of Indian Petroleum Industry)’s annual summit and awards ceremony in Delhi and urged the oil and gas industry to support innovation by young professionals.”
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Technology, innovations are the order of the day. I am of the firm belief that youngsters can drive innovation. The industry must work on creating a framework to support young employees on driving innovation and creating new business models”, he said while talking about innovations.The event saw participation from oil and gas industry leaders and senior officials of the Ministry of Petroleum and Natural Gas.During his address, Pradhan complemented FIPI for completing three years and congratulated the award winners. He also outlined India’s aspirational population as a large market which is going to be the epicentre of global growth.Speaking about Government’s reforms efforts, Pradhan said, “Government is working on the paradigm of continuous reform. Recent reductions in Corporate Tax, India’s huge jump in World Bank‘s Ease of Doing Business rankings are cases in point.”Speaking about India’s energy demand, he said, “Indian appetite for energy is growing. I appeal to the industry to work on innovative energy delivery in a sustainable way.””Energy sector has the potential to improve the lives of people. We must work on making energy more affordable and accessible. Energy sector must act as a catalyst of social change”, he added.He also urged the industry to leverage technology and said, “We must leverage technology to create new models of business and governance. In form of Direct Benefits Transfer, we have created the largest model in the world in digital governance.”The Federation of Indian Petroleum Industry (FIPI) is an apex Society of entities in the hydrocarbon sector and acts as an industry interface with Government and regulatory authorities. (ANI)
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Gas pipeline leak creates panic at Pettah
A compressed natural gas pipeline eight metres underground was drilled accidentally at Pettah on Wednesday (Dec 4) during Kochi metro rail piling work.
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The gas leakage following the incident created panic at the site even as officials at the worksite acted quickly to close the gas pipeline. Five units of fire engines also reached the spot to spray foam where the drill had pierced through the CNG pipeline managed by the Adani group. The incident occurred around 7.30 p.m. The leakage was minimal and it was immediately plugged, said a Kochi Metro Rail Limited spokesperson. There was no compromise on safety, the spokesperson added.
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Policy Matters/ Gas Pricing/Others
Timeline for gas hub-India
The government is working on a plan to set up a natural gas trading hub by the end of this fiscal, to enable better price discovery of the fuel. Related measures such as splitting GAIL India’s marketing and pipeline operations and
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bringing natural gas under GST will be done prior to the setting up of the hub. Sources said Indian Energy Exchange the nationwide automated platform for the physical delivery of electricity will set up the hub and has started creating a dedicated team. Oil ministry officials said they would move a proposal before the Union cabinet to transfer the pipeline business of GAIL into a 100% subsidiary.However, a selloff of the pipeline subsidiary to a strategic investor is not likely before 2022 as the gas market would take at least that much time to mature even as GAIL gets state support to build a pipeline grid. GAIL will continue to own the marketing business as also the stakes in its LNG terminals. GAIL is India’s biggest natural gas marketing and trading company and owns more than two-thirds of the country’s 16,234km pipeline network. The unbundling of GAIL is a precondition for the hub as it would dominate the pipeline business while operating as a marketer, which will create conflict of interest. Trading rules are yet to be finalised, the sources said. But the government is considering setting aside a predetermined volume of natural gas to trade on the platform. However, the single biggest challenge to a national trading platform is multiple taxes involved in moving natural gas across various states. Natural gas has been kept out of the pan-India Goods and Service Tax and is liable for different state-level sales taxes as the commodity is transported from one state to another. Oil minister Dharmendra Pradhan had said last week the ministry expected the Union budget to bring natural gas under GST.
https://www.telegraphindia.com/business/timeline-for-natural-gas-hub/cid/1725303
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Oil minister sees jet fuel, gas under GST soon to improve business climate
NEW DELHI: Oil minister Dharmendra Pradhan on Thursday hoped that finance minister Nirmala Sitharaman will in her Budget set the tone for bringng jet fuel and natural gas under the GST regime to reduce multiplicity of taxes and improve the business climate.
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“Our expectation is that in the coming Budget, ATF and natural gas is included in GST,” Pradhan said at a conference on natural gas organsied by industry chamber Ficci here. On a day Delhi’s air quality pust focus back on pollution in cities, Pradhan said bringing clean-burning natural gas under GST will be one of the biggest drivers of not just consumption but will also incentivize producers to spend more on finding and producing more gas as well as incentivise importers to bring in more LNG .In the same vein, Pradhan at another function later in the day rode in a hydrogen fuel-driven car developed by Toyota-Kirloskar. Here too he asked industry to focus on finding alternative fuels and mobility solutions.Pradhan said the government is working to raise the share of gas in the country’s energy basket to 15% by 2030 from 6% at present with a view to reducing dependence on coal and liquid fuels.
Pradhan’s words on GST will be music for the aviation and gas industries. Jet fuel makes up nearly half the cost of airline operation. Lower and uniform tax rate across the country will thus reduce the operating cost for airlines. Gas companies will benefit as they will be able to claim GST paid on inputs for gas production or distribution etc. Pradhan has been making a case for the GST Council – the highest decision-making body of the indirect tax regime – to take a decision in favour of these two fuels at the earliest. The Council is headed by Union Finance Minister and comprises representatives of all states and union territories. Under the existing structure, both natural gas and ATF attract the Centre’s excise duty and a state’s value-added tax (VAT). Both these and all other levies will get subsumed under GST if they are brought under its ambit. The decision on their inclusion depends on the financial position of states as revenues from these five petroleum products constitute a substantial chunk of state government finances. Barring a few, most of the states are incurring revenue shortfall as GST subsumed a dozen of their taxes, introducing the single levy, in a bid to simplify taxation system and remove the cascading effect of ‘tax on tax’ in the country. According to the industry, keeping ATF and natural gas out of the GST net was increasing the cost of these products as a tax on inputs is not being credited against the sale of these products, which ultimately, adds to the cost of production.
The aviation ministry has time and again sought inclusion of ATF under GST as any surge in international oil rates gets reflected in domestic jet fuel prices, leading to costlier air tickets.
Natural gas is widely used as industrial input by a variety of industries – from power to steel – and it coming under GST would help eliminate the cascading impact of taxes, bringing down prices of CNG and piped natural gas.
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Price control: The gas on gas price deregulation
Under a special package for deep/ultra-deep, high-pressure/high-temperature (HP/HT) fields announced in March 2016, the supplies there from are allowed ‘premium’ price, linked to the prices of alternate fuels, including fuel oil, naphtha, and imported liquefied natural gas (LNG).
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The government has initiated discussions to ‘lift price restrictions on domestically produced natural gas’. However, it intends to do it ‘gradually’. It wants to continue with regulated gas pricing for at least three more years. However, in the interregnum, producers will be given freedom to sell a portion of the total output under ‘negotiated pricing deals’ with their customers. Will it help? Under the guidelines in effect since November 1, 2014, for all domestic supplies from fields given under the new exploration and licensing policy (NELP), as also blocks given on ‘nomination’ to Oil Natural Gas Corporation (ONGC) and Oil India Limited (OIL) under pre-NELP, the price—call it normal price—is a weighted average of prices at four international locations in USA, the UK, Canada, and Russia. Revised every six months in a financial year, the current price, from October 1, 2019, is $3.23 per MMBtu. Under a special package for deep/ultra-deep, high-pressure/high-temperature (HP/HT) fields announced in March 2016, the supplies therefrom are allowed ‘premium’ price, linked to the prices of alternate fuels, including fuel oil, naphtha, and imported liquefied natural gas (LNG). The current price determined on this basis is $8.43 per MMBtu, which is more than double the normal price. A third pricing mechanism exists for fields given under the Open Acreage Licensing Policy (OALP)—the policy was introduced in July 2017. The supplies from these fields—conventional gas as well as unconventional hydrocarbons, viz shale gas, coal bed methane (CBM)—are eligible for market-based pricing, which also applies to unconventional hydrocarbons from the fields awarded under NELP. ONGC and OIL have 149 marginal fields, which account for a mere 5% of their total output. The government intends to auction them to private entities. After transfer, the new owners will get complete freedom of marketing and pricing of supplies from these fields. In short, except for fields under NELP, and ‘nomination’ blocks under pre-NELP, supplies from all others are already eligible for significantly higher price—either based on alternative fuels or market-determined price. Now, the intent is to allow higher market-based price for the former as well. This was not unexpected. These overarching considerations weighed heavily on the ruling dispensation when it decided to stick to price regulation. For the same reason, it exercises control over the allocation of gas. Of the total supply, 31% is given to power, 24% to fertilisers, and 22% is allotted for city gas. Since then, nothing has changed as to warrant a move towards market-based pricing. Neither has the government has done away with control on urea MRP nor do states have any plans to shed supply of free power to key constituents. Hence, the status quo for three years. What, then, is the way forward? The government should dismantle all controls on gas supply and pricing—there is no such thing as ‘gradual decontrol’—deregulate its imports, and hive off infrastructure for import, handling, and transportation (today, most of it is with PSUs) to an independent entity, which should make it accessible to all players on ‘common carrier’ principle in an ‘equitable’ and ‘non-discriminatory’ manner at tariff determined vide competitive bidding. This will create an ecosystem in which there will be adequate availability (domestic plus import) of gas to meet the increasing demand at ‘uniform’ and ‘affordable’ price, unlike the flawed present architecture, where at least half a dozen prices depend on the source of supply and hydrocarbon type. This will also provide a ‘stable’ and ‘predictable’ policy environment, conducive to attracting investment. However, for this to happen, Modi should first lift price control on fertilisers and goad states to follow suit in case of power, and use direct benefit transfer to help the poor. Sans this, the pressure to keep gas price low will continue, thereby blocking the road leading to deregulation of gas.
https://www.financialexpress.com/opinion/price-control-the-gas-on-gas-price-deregulation/1791413/
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Govt may revive plan to give statutory powers to DGH
DGH is currently not just formulating regulations for exploration and production (E&P) activities under the guidance of the Petroleum Ministry, but is also responsible for administering contracts.
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After giving more attractive terms under its new hydrocarbon exploration licensing policy (HELP), the government is now likely revive plans to reform the regulatory framework in the oil and gas sector by arming the office of upstream regulator Directorate General of Hydrocarbons (DGH) with statutory powers. This will be in conjunction to another plan to carve out a specialist wing under the Petroleum Ministry for assisting it in administration of contracts. Though Petroleum Minister Dharmendra Pradhan had earlier ruled out statutory status for DGH, saying the sector has not fully developed and needs government support, a source close to the developments in the ministry said that the plan is being revived again to prevent a clash of interest in DGH’s regulatory operations. Also, the policy environment has undergone several reforms and it is felt that the sector would now grow on its own. According to the revised plan, which is still in discussion stage, the office of the DGH would be distanced from the government and placed in a statutory body that will give the regulatory regime more teeth and functional autonomy. But the government will retain some of the talent from existing DGH to create a special wing on the lines of the Central Electricity Authority and the Telecommunications Engineering Centre. This wing will fill the vacuum created by separation of DGH and help the Petroleum Ministry on technical issues related to administration of contracts for oil and gas blocks. This will require competent resources with the ministry. Government think tank Niti Aayog has also favoured strengthening the office of DGH by giving it statutory powers. In fact, in its draft National Energy Policy, which is being finalised soon, it has said that upstream regulatory regime and contract administration need to be separated for an arms-length administration of upstream matters. DGH has been entrusted with several responsibilities like implementation of New Exploration Licensing Policy (NELP), matters concerning the production sharing contracts (PSCs) for discovered fields and exploration blocks, promotion of investment in E&P sector and monitoring of E&P activities, including review of reservoir performance of producing fields. In addition, the DGH is also engaged in opening up of new unexplored areas for future exploration and development of non-conventional hydrocarbon energy sources like Coal Bed Methane (CBM), as also futuristic hydrocarbon energy resources like Gas Hydrates and Oil Shales.
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Delhi pollution: Long-term action on fossil fuels, transport systems needed
Late last month, the Supreme Court (SC), having taken suo motu notice of the deteriorating Air Quality Index (AQI) in the national capital region (NCR) and some other cities in India, called for committed action by state governments and the Centre to end pollution.
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The SC had come down heavily against the government machinery for having failed to check pollution, saying, “… why they (the states) should not be required to pay compensation to such persons who are being affected by inadequate arrangement to check air pollution?” Yet, the SC has allowed construction of the India Trade Promotion Organisation’s (ITPO’s) Integrated Exhibition-cum-Convention Centre project to go on, despite itself having banned all construction and demolition activity in the NCR on November 4. The ban on other construction is to stay till the Central Pollution Control Board (CPCB) submits its report. Meanwhile, the restrictions on industrial activity, imposed by the Environmental Pollution Control Agency that SC had created to tackle pollution in the NCR, remain. Be it odd-even, the EPCA’s graded action plan, or even the attempts to control stubble burning in the winter months, the approach has been quite ad hoc—while stubble burning does make the NCR a “gas chamber”, it is a seasonal phenomenon; construction and road dust contribute 35% of the national capital’s PM 2.5 pollution (50% of its PM 10 pollution), and domestic cooking and vehicular emissions contribute 22% each. Episodic measures may offer relief, but there is an undeniable need for more concerted action; at-scale, transformative measures are necessary—Sunita Narain of the Centre for Science and Environment cites Delhi’s move to CNG for public transport roughly two decades ago as an example of such effort. So, instead of having odd-even, it is perhaps necessary to ensure stricter vehicular emission standards and incentivise the auto industry to transition to cleaner fuels. A rationing of vehicle sales—though that would be intervening in market dynamics—could also be an interim measure even as the capacity of mass transport systems like buses and railways is beefed up. Coal and other polluting fuels need to be eased out hastily from both industrial and domestic use—many societies in the NCR are still dependent on diesel generators for power back-up—not just in Delhi, but across the NCR states. This will mean ensuring supply of electricity and gas to households and industries. Power generation itself also has to shed fossil fuel dependence—while the Badarpur power plant in Delhi was permanently shut down only last year, 10 power plants around Delhi, at least till mid-November, were set to miss the December deadline for installing pollution control devices. Installation of smog towers, which the SC has mentioned in its order, too, must commence once the government is assured of their efficacy. Stubble burning, vehicular emissions, cracker smoke—all of these need acting against, but the government and the SC should be asking themselves if these measures amount to anything more than sticking a band-aid. Without long-term measures, Delhi will be keep needing ventilator support every year.
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LNG Development and Shipping
Sources say Adani-Gujarat PSUs Mundra LNG unit may start ops Jan-end
The five mmtpa liquefied natural gas terminal at Mundra in Gujarat, which has been lying idle for a year over some differences between project partners, may finally become operational by the end of January, sources with direct knowledge of the matter said.
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The terminal belongs to GSPC LNG Ltd, a joint venture of some Gujarat government undertakings led by Gujarat State Petroleum Corp Ltd, and the Adani group. The terminal was completed last year but could not become operational due to certain disagreements between the partners. “The GSPC LNG board has decided to operationalise the terminal by third or fourth week of January and we are now working towards commissioning the LNG terminal on Jan 20. We should be issuing a tender to source the commissioning LNG cargo before Christmas,” one of the sources said. Initially, the terminal is expected to operate at 1.5-2.0 mtpa capacity and will be ramped up to full capacity over a year, another source said. In August, Cogencis reported that the partners had arrived at an interim agreement to operationalise the LNG terminal. Even as the partners have agreed to start the project, they will continue to work on ironing out differences and may take legal recourse as well. Currently, Gujarat government-owned Gujarat State Petroleum Corp Ltd, state port regulator Gujarat Maritime Board, and a few other state government-owned companies hold 75% stake in the project. Adani group holds the remaining 25% stake. Following the announcement of a partnership between French major Total SA and Adani Group, which will see the former acquiring 37.4% stake in Adani Gas Ltd and joint investments in liquefied natural gas infrastructure, Total reportedly may pick up some of Adani Group’s stake in the Mundra LNG terminal. The Adani group wanted GSPC and other partners to share port development costs, including dredging costs of around 12 bln rupees. The Gujarat government undertakings, however, have concerns over the costing of these works by the Adani group. The Adani group also wanted clarity on issues like payment of annual fees to Gujarat Maritime Board. Further, it was demanding a payment of 650 mln rupees a year as lease rental from the joint venture company as the project is located at Adani group-controlled Mundra port. The operationalisation of Mundra LNG terminal could help ease problem of LNG handling and storage capacity in the western part of the country. Though Petronet LNG Ltd has 17.5-mtpa terminal at Dahej and Royal Dutch Shell group has a 5.2-mtpa unit at Hazira, importers could do well with more capacity in the region, given the slump in global LNG prices. Shares of Adani Enterprises Ltd today ended 2% higher at 210.40 rupees on the National Stock Exchange.
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Natural Gas / Transnational Pipelines/ Others
Russia-Ukraine fallout won’t threaten security of EU gas supply
Even if Russia and Ukraine were to fail to reach an agreement on the natural gas transit through Ukraine onto Europe, the security of gas supply in the European Union (EU) will not be materially threatened. The current ten-year gas transit agreement between
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Russia and Ukraine expires on December 31, 2019. The parties need to reach a new agreement by that date to set the terms of deliveries of Russian gas to Europe via Ukraine’s territory. Russia has been building pipelines to Europe and Turkey that bypass Ukraine—TurkStream and Nord Stream 2. Ukraine, for its part, is a key transit country for Russian gas westwards to Europe and relies on the gas transit fees. The talks between Ukraine and Gazprom on the gas transit to Europe have been complicated by the tense relationship between Ukraine and Russia. Several rounds of trilateral talks on a new transit agreement between Russia, Ukraine, and the European Commission have been held since mid-2018, but “neither side is under much pressure to conclude a deal fast,” says a study by the Institute of Energy Economics (EWI) at the University of Cologne, published this week. Even if talks fail to reach an agreement and gas supply via Ukraine is interrupted, as it was in 2009, the EU will not see its gas supply security threatened because of sufficient infrastructure, good market integration, storage inventories high enough to handle additional withdrawals, and liquefied natural gas (LNG) imports, according to the study. Gas storage in Europe is full, as low LNG spot prices amid abundant supply and weaker Asian spot demand have helped Europe to fill its storage tanks to more than average levels this summer. A possible interruption of supply via Ukraine “would not lead to gas shortfalls (unserved demand) in any of the EU’s member states. Hence, the EU gas market is well prepared for an interruption in terms of security of supply,” the authors of the EWI study said. In the worst-case scenario with a cold snap and a three-month gas supply interruption, gas prices in EU members will rise, especially in Greece, Bulgaria, and Romania in southeast Europe. “However, security of supply would not be threatened in any of the EU states, this applies to all scenarios considered,” EWI manager Dr. Simon Schulte said in a statement.
https://www.rt.com/business/475105-russia-ukraine-eu-gas-supply/
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Russia opening giant gas link to China as Putin pivots east
The world’s biggest natural gas exporter and one of the globe’s top consumers of the fuel cement their energy cooperation on Monday (Dec 2) with the launch of Russia’s giant Power of Siberia pipeline to northern China. The 3,000-kilometer link,
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which has become a symbol of President Vladimir Putin’s pivot to the fast-growing economies of Asia as relations deteriorate with the West, begins shipping gas from Russia’s enormous reserves in its eastern regions to the border. It will then link up with China’s own network to supply the fuel as far as the eastern seaboard and help satisfy the nation’s vast and growing energy needs. Gazprom PJSC, Russia’s biggest gas producer, signed the $400 billion contract to supply as much as 38 BCM of gas annually for 30 years with China National Petroleum Corporation in 2014, after more than a decade of talks. It’s Gazprom’s biggest contract ever. Russian company plans to start with deliveries of 10 MMSCMD and aims to reach peak capacity by 2025. Gazprom’s minimum exports to China via the pipeline will be 5 BCM in 2020, 10 BCM in 2021 and 15 BCM in 2022, according to the company. Gazprom hasn’t disclosed the price of the gas, but Putin has said it’ll be linked to oil prices, similar to the formula for European consumers. While Russia will have to compete with seaborne supplies of LNG from producers such as Qatar and Australia, the expectation is that growth in China’s energy needs will require more pipeline and LNG capacity, to the benefit of other Russian firms such as Novatek PJSC, which is developing LNG on the Yamal peninsula in the Kara Sea. Gas consumption in Asia’s biggest economy has surged in recent years as the government pressures homes and factories to use it in place of coal to combat air pollution. Imports reached 43% of the total gas supply in 2018, with about two-fifths of that arriving via pipeline from Central Asia and Myanmar, with the rest sourced as seaborne LNG. Russia and China are already talking about a second link, known as Power of Siberia 2, that would connect through the countries’ western border between Mongolia and Kazakhstan.
Source: LNG Global
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Gas key to clean energy future in Australia and globally
As delegates gather in Madrid for the 25th annual United Nations Climate Change Conference, the latest government estimate released with the June 2019 Quarterly Update of Australia’s National Greenhouse Gas Inventory confirms the importance of
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Australia’s LNG exports for reducing global greenhouse gas emissions. “It’s important to recognise the global appetite for energy is growing, with more than 1.1 billion people lacking access to electricity. Substituting LNG for more emissions-intensive fuels allows importing countries to satisfy growing demand while reducing emissions,” said APPEA Chief Executive Andrew McConville. “Australia’s LNG projects will deliver decades of economic growth, jobs and exports as well as strong regional and global environmental benefits. “The latest government figures show Australia’s LNG exports have the potential to lower emissions in importing countries by around 159 MMT by displacing coal consumption in those countries.” This estimate equates to nearly 30% of Australia’s total annual emissions and is more than the entire emissions from the Australian transport and waste sectors combined. “Climate change is a global problem that requires a global solution, delivered through a national approach,” Mr McConville said. “Changes in the energy mix that result in the greater use of cleaner fuels such as natural gas and renewables is an important way to meet growing demand without increasing global emissions.” Mr McConville said the negotiations in Madrid this week present an important opportunity to finalise the rules for implementation of the Paris Agreement, assisting the world in coming together to address climate change. “Natural gas has a key role to play as part of Australia’s solution to a global challenge,” Mr McConville said.
https://www.miragenews.com/gas-key-to-clean-energy-future-in-australia-and-globally/
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Gas ‘indispensible’ in mitigating climate change: GECF
Natural gas is an ‘indispensable’ part of the global energy mix needed to limit the impact of climate change and protect the environment, the Gas Exporting Countries’ Forum (GECF) said. In a communique following the GECF’s 5th Gas Summit in Malabo,
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Equatorial Guinea, the forum said natural gas is of “vital importance” to ensure global energy security. The summit declaration acknowledges the “indispensable contribution of natural gas to the protection of the environment and, in particular, for mitigating and adapting to climate change.” The GECF is made up of the world’s biggest gas exporters including the big hitters Russia, Qatar and Iran and holds around 60% of the world’s proven gas reserves. Although often referred to loosely as the “Gas OPEC’, the forum is more of an advisory body rather than one that takes collective policy action. The comments come amid an emerging ground-swell of climate concerns over fast-growing global gas consumption as part of a push to sideline fossil fuels in favor of clean, renewable energy. The GEFC said it wants to further promote the use of natural gas as an “environmentally-friendly” transport fuel including for global shipping. In the declaration, the GECF also reiterated its “deep concern” about the extra-territorial application of laws and regulations, and its objection to unilateral economic sanctions in the gas sector, particularly against its member countries. In 2017, the US passed a new sanctions law that gave President Donald Trump the power to impose measures against companies investing in Russian energy export infrastructure. The GECF also reiterated a pledge to promote the use of long-term contracts and stick with the pursuance of oil-linked pricing despite a growing trend in the global gas industry for shorter-term and spot gas buying. Despite speculation over the past decade that the GECF could morph into a “Gas OPEC” with the power to manage markets through supply intervention, the group has insisted its role is to promote gas and encourage cooperation.
https://www.hellenicshippingnews.com/gas-indispensible-in-mitigating-climate-change-gecf/https://www.hellenicshippingnews.com/gas-indispensible-in-mitigating-climate-change-gecf/
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Natural gas of Israel’s Leviathan to start flowing within two weeks
Natural gas will begin flowing from Leviathan, Israel’s largest offshore natural gas field, within two weeks, with exports to Egypt and Jordan following shortly thereafter, Energy Minister Yuval Steinitz said Monday (Dec2). Binyamin Zomer,
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vice president for regional affairs at Texas-based Noble Energy, the lead partner in Leviathan, confirmed the news. “Before the end of the year we will start supplying the domestic market, and in the weeks right after that we will export to Egypt and Jordan,” he told the annual Israel Energy and Business Convention in Ramat Gan. The Leviathan partners have signed multibillion-dollar export deals to Egypt and Jordan. Steinitz told the conference that despite opposition from environmentalists, there was no reason Israel shouldn’t also be exporting gas to Europe. Zomer said that because of Leviathan’s lifespan, all export options were under consideration, including delivery by undersea pipeline to Europe. As to concerns about air pollution from Leviathan’s rig, he said that it met the strictest standards and that gas would mean a net gain for the environment. “I’m sure the public understands that the biggest impact of the Leviathan rig will be when you can close the coal stations in Hadera,” he said, referring to generating plants of the Israel Electric Corporation. Zomer said that with the development of the smaller Karish and Tanin gas fields by the Green energy company Energean, competition was ramping up in the industry. “No one knows at what range prices will settle,” he said. “It’s a function of supply and demand and we’re already seeing new prices.” The IEC is buying gas from the Tamar field at $6.30 per MMBtu, but it has signed an agreement to buy from Leviathan at $4.80. Karish and Tanin have been signing deals at between $3.50 and $4.00
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Tanzania gas project faces further delays
Tanzania has suspended talks between the government and foreign investors in the oil and gas sector that would have set the tone for the review of Production Sharing Agreements (PSAs). The suspension is blamed on delays by the Attorney General’s chambers. In 2018,
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the government ordered the review of laws and policy, putting the liquefied natural gas (LNG) project sector on hold. The $30 billion LNG project has been in the planning for the past five years. Construction is set to start in 2022. The plant is expected to add 10% gas to Tanzania’s domestic use. Speaking to The EastAfrican, Felix Nanguka, Tanzania Petroleum Development Corporation (TPDC) LNG project manager said, “Negotiations have been temporarily suspended to allow for the PSA on gas review. There was overlapping between issues that were negotiated in the existing contracts. “Since all gas existing contracts need to be reviewed, the government decided to suspend negotiations for a little while to allow for smooth co-ordination between PSA review and negotiations,” he said. Mr Nanguka added that talks on the project will resume once the PSA’s review is complete, “but we cannot predict when the talks will resume. It is the government interest to expedite the exercise in order to have the LNG project as scheduled.” Last month, Tanzania’s Minister for Energy Medard Kalemani told stakeholders at an oil and gas congress in Dar es Salaam that the government is working with Norwegian oil and gas firm Equinor, and Royal Dutch Shell to ensure that the LNG project is implemented according to the timeline. PSAs set out the terms under which exploration and production can take place. According to the oil and gas authority, the government’s objective is to negotiate terms with the oil and gas industry that are fair and balanced, bearing in mind the risks associated with exploration and the state’s legitimate desire for revenues as owner of a depleting, non-renewable, natural resource. In 2017, President John Magufuli endorsed a clause in the Natural Wealth and Resources Contracts law that allows the government to renegotiate or remove terms from agreements deemed by it to be “unconscionable”. The move to a full review of existing contracts and redrafting where necessary to ensure maximum benefit for Tanzania, came after a special Parliamentary Committee discovered massive loopholes of tax evasion, unfair contracts, and manipulation by companies to decrease payments to the government. Similar observations were found during a special committee investigation of the mining sector in 2017. Analysts say that further delays in setting up the LNG export facility could affect the country’s chances of attracting foreign direct investments.
Global LNG Development
Natural gas– Natural gas weekly price forecast markets recover for the week
Natural gas markets have gapped lower to kick off the trading week, and then spent most of that week filling the gap. This is due to the idea that there could possibly be warmer temperatures in the United States between now and Christmas, but that is somewhat of a fluid and transient influence when it comes to price. This is because it’s only a matter of time before there is a spike in usage this time of year, driving up demand. Currently, the most recent Natural Gas Storage figures were -73 billion, as opposed to the anticipated -75 billion. While it was slightly under expected, the biggest problem that natural gas traders have right now is dealing with the fact that the United States increased production by 17% last year. Natural gas markets are oversupplied and that is a longer-term concerned. That being said, this time of year typically we will see some type of massive spike higher, and if you have the ability to trade a small enough position it’s very likely we will get that again. This is going to be based upon whatever weather report comes out and spooks the market back into concerned about supply, and that is a bit difficult to predict. If we break above the $2.40 level it would obviously be very bullish though. To the downside, the $2.20 level is offering support, just as the $2.00 level underneath is. We are at extraordinarily low levels, so it’s possible value hunters will show up soon.
https://finance.yahoo.com/news/natural-gas-weekly-price-forecast-180309553.html
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EXTRA
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Hecond gas liquefaction train at Cameron LNG readying for operation
EPC firm McDermott International and partner Chiyoda International Corp. announced that the second train at its Cameron liquefied natural gas project has reached the final commissioning stage. Pipeline feed gas has been introduced into
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Train 2 at the LNG export facility near Houston. Train 1 went into operation earlier this year. The feed gas introduction is an early step liquefaction of natural gas from pipelines. McDermott and Chiyoda were EPC contractors on the Cameron LNG project, which is jointly owned by Sempra LNG, Mitsui & Co. and Japan LNG investment, the latter a joint venture of Mitsubishi Corporation and Nippon Yusen Kabushiki Kaisha (NYK).. “Congratulations to the entire Cameron LNG project team which continues to make strides on this project and remains focused on providing stellar project delivery as we reach another notable milestone,” said Mark Coscio, McDermott’s senior vice president for North, Central and South America. Start of the EPC phase for Cameron dates back to 2014. The project includes three liquefaction trains with a projected export of 12 MMTPA of LNG, or approximately 1.7 billion cubic feet per day. The LNG facilities can take U.S.-produced natural gas and liquefy for safe shipping worldwide. Much of the LNG can be transported to utilities globally which can use it for power generation purposes or heating. Sempra LNG is an affiliate of San Diego-based utility holding company Sempra Corp.
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EXTRA
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Horkers to unionize at large LNG housing project in Kitimat
The B.C. Labour Relations Board has ruled in favour of Unite Here Local 40 in its efforts to unionize workers at the Crossroads Lodge in Kitimat.The Crossroads Lodge is one of three massive accommodation complexes being built or expanded to cater
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to thousands of workers on the $40 billion LNG Canada project in this northern B.C. town. Unite Here Local 40 is attempting to unionize 56 kitchen, hotel, reception and janitorial staff at the half-complete lodge on Highway 37. The lodge is already housing 360 workers in private rooms, with 360 more rooms expected to be ready by February 2020. When the project is complete it will employ 120 workers. The company building and operating the lodge, Horizon North, was opposed to the unionization push on the grounds that there would be more members joining later — a concept known as buildup. The premise of the buildup argument is that it would be undemocratic to permit a smaller group of current employees to determine the representations rights of a future larger group. The lodge’s biggest customer is Fluor Canada, hired by LNG Canada to design and build the project expected to open in 2024. It’s the largest energy investment in Canadian history, comprised of Shell, Petronas, PetroChina, Mitsubishi and Korea Gas.
https://vancouversun.com/news/local-news/workers-to-unionize-at-large-lng-housing-project-in-kitimat
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EXTRA
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Hatargas delivers 2000th LNG cargo to India
Doha: Qatargas Operating Company Limited (Qatargas) today announced a historic milestone as it successfully delivered the 2,000th liquefied natural gas (LNG) cargo to India. The cargo transported onboard ‘Aseem,’
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a conventional LNG vessel with a capacity of 155,000 cubic metres, was loaded at the Ras Laffan Port on November 17 and delivered to India’s Dahej LNG Terminal, owned and operated by Petronet LNG Limited. Commenting on this significant achievement, Khalid bin Khalifa Al Thani, Chief Executive Officer, Qatargas, said: ‘We are delighted to reach this historic milestone in our relationship with India with whom we have established a strong partnership since July 1999. India is a key market for Qatargas given its geographical proximity and growth potential. He added: ‘As India continues to make big strides towards achieving its ambitious target of 15% natural gas in the country’s overall energy mix, we are committed to extending all possible support by a reliable delivery of this clean fuel. As the World’s Premier LNG Company, Qatargas continues to play a major role in ensuring energy security for countries across the globe. Qatargas had signed a 25-years Long term FoB Sale and Purchase Agreement (SPA) with Petronet. It loads around 116 cargoes per a year to India under this SPA in addition to supplying significant volumes into the short term and spot markets. In March 2019, Qatargas had supplied a commissioning LNG cargo for India’s newest LNG receiving terminal, Ennore, near the southern Indian city of Chennai.
https://menafn.com/1099388832/Qatargas-delivers-2000th-LNG-cargo-to-India
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Asian LNG buyers to start talks to renew long-term contracts
Asian LNG buyers are starting talks with producers to renew long-term contracts due to expire over the next few years, aiming to secure all-time low prices in deals likely to set new industry benchmarks. A record volume of new LNG supply
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entered the market in 2019, driving spot prices to record lows for this time of the year and widened the gap with contracted supplies which are priced off stronger oil prices. The abundant supply has toughened buyers’ bargaining stance, forcing producers to lower their asking prices and discuss exit clauses in new contracts, according to industry sources. Most Asian buyers purchase LNG priced against Brent crude oil expressed as a price slope, or a percentage of the oil contract. Discussions for this price slope for new contracts have dropped to close to 11%, five industry sources familiar with LNG contract negotiations told Reuters. This compares with 13% to 15% about 10 years ago. “The main drivers … are low spot prices, oversupply and intense competition,” said Nicholas Browne, analyst at Wood Mackenzie. Most potential projects can achieve a satisfactory rate of return delivering LNG into Asia at 11.5% of $60 per barrel oil, he said. Brent is currently at about $63 a barrel. All eyes are focused on Qatargas and Korea Gas Corp (KOGAS) who are locked in talks to renew their long-term contract, the sources said. KOGAS’s 20-year deal to buy 4.92 million tonnes a year of Qatari LNG expires in 2024. The new deal could become a benchmark for others as Japanese buyers are also expected to start negotiating contract renewals over the next few years, the sources said. Such negotiations are typically opaque and could take months to finalise. “We are in discussion with Qatargas to work on various ways for cooperation,” a KOGAS spokesman said. Qatargas did not respond to a request for comment. While sellers are reluctant to lower prices too much due to the need for financing, especially for new projects, they are more willing to provide concessions in contracts, the sources said. For instance, a walk-away clause has started appearing in some recent contracts where buyers and sellers are able to end the contract if both parties are unable to agree to a price review at the end of a certain time period, one of the sources familiar with the discussions said. “These typically don’t appear in project financing contracts as those will require a firm commitment for a longer period, but about 25 percent of new contracts now have this clause,” the source said. Buyers are also increasingly hedging their exposure with a portfolio of spot cargoes alongside long-term contracts, said Baldev Bhinder, managing director of law firm Blackstone and Gold. “Until a viable Asian gas index emerges for long-term contracts, oil indexing will create the disparities that we see today,” he added.
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Natural Gas / LNG Utilization
Automotive natural gas vehicle NGV market 2019: Analysis, Major competitor and strategies regional outlook 2019 to 2029
The published title report Automotive Natural Gas Vehicle (NGV) market offers the dynamics of this global market. The dynamics of report consists of insights and trends of the global market that, which are expected to propel the market.
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The analysis of this market comprehensively discusses the salient features of the global Automotive NGV market in terms of drivers, restraints, opportunity, segmentation, competitive landscape, and the market value over the forecast period. The Automotive NGV market report examines the economic status and prognosis of worldwide and major regions, in the prospect of all players, types and end-user application/industries; this report examines the most notable players in major and global regions, also divides the Automotive NGV market by segments and applications/end businesses. The Automotive NGV market was valued at XX Million US$ in 2018 and is projected to reach XX Million US$ by 2029, at a CAGR of XX% during the forecast period. In this study, 2018 has been considered as the base year and 2019 to 2029 as the forecast period to estimate the market size for Automotive NGV. Global Automotive NGV industry market professional research 2019-2029, is a report which provides the details about industry overview, industry chain, market size (sales, revenue, and growth rate), gross margin, major manufacturers, development trends and forecast.
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European Union supports expansion of Irish CNG refueling infrastructure
Gas Networks Ireland entered into an agreement with waste management company Panda (part of the Beauparc group) to develop two publicly-accessible, fast-fill natural gas stations in Dublin. The project is co-financed by Gas Networks Ireland and
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the European Union’s Connecting Europe Facility (CEF), as part of Gas Network Ireland’s Causeway Project. The two refueling facilities will be strategically located: one on the Southside in Ballymount near the N7 and M50, and the other on the Northside in Finglas close to the N2, M50 and M1. Construction on the project will get underway next summer with both stations expected to be in operation by the end of 2020. “Ireland’s transport emissions continue to rise; while this is the by-product of much welcomed economic and employment growth, as a country we face significant challenges to meet our emission reduction targets. Gas Networks Ireland is leading the development of this new, cleaner transport network, to support Ireland in reducing its carbon emissions and to give Ireland’s fleet operators sustainable energy options,” said Ian O’Flynn, Head of Commercial and Corporate Affairs at Gas Networks Ireland. Panda plans to commission 45 NGVs as part of their new ‘green’ fleet over the next three years. The move is the first of its kind for a municipal waste operator in Dublin and is part of the company’s commitment to reducing its emissions and carbon footprint across its operations. “Sustainability is at the heart of our business and this is a significant step for our company that will keep us at the forefront of industrial environmental excellence. The partnership with Gas Networks Ireland is transformative in allowing us to realize our ambitions in delivering this green fleet,” said Brian Bolger, Group Fleet Director at Panda. Earlier this year, Gas Networks Ireland launched Ireland’s first publicly-accessible CNG station in Dublin Port with the second station due to be commissioned in Cashel early in the New Year.
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Redexis builds its first natural gas station in the Balearic Islands
Redexis, an integral energy infrastructure company, and the Servialsa service station group signed an agreement to promote natural gas for vehicles in Mallorca. The objective is the construction, commissioning and operation of a natural gas station by
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Redexis at the “Es Port” service station that Servialsa has in the Port of Alcudia. Once completed, this new site will allow all citizens to refuel their NGVs without any limitation. Redexis plans to make an investment of 700,000 euros to carry out the construction of this refueling station, the first of the company in the Balearic Islands, whose start-up is planned for the second half of 2020. The new facility will have a 1,500 Nm3/h compressor and two CNG pumps with two simultaneous refueling positions, capable of supplying CNG to all types of vehicles, with refueling times between 3 minutes for passenger cars and 8 minutes for heavy vehicles. With the signing of this agreement, Redexis continues with the objective of increasing the CNG refueling network in Spain to contribute to a more sustainable and economic mobility of the Spanish transport system. Thanks to this natural gas station and other facilities that Redexis plans to build in Mallorca, passenger, freight companies, company fleets and private cars will be able to access this green fuel. In this way, new, more sustainable ways of mobility are opened in the Balearic Islands, where the Balearic Climate Change Law contemplates the prohibition of selling diesel vehicles from 2025. The natural gas refueling network continues to grow in Spain and the new map of refueling points will allow to meet the increasing demand and strengthen the availability of this fuel in the market, given the wider acceptance that NGVs are experiencing. To analyze this extremely positive scenario for natural gas and sustainable mobility, and evaluate the latest in alternative fuel technologies for road and sea transport, AltFuels Iberia 2020 will be held on 5-9 October at IFEMA Trade Fair Center in Madrid. For more information, please contact info@altfuelsiberia.com.
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SEAT & Redexis agree to encourage natural gas mobility in Spain
SEAT and Redexis have signed an agreement whereby both companies will develop the creation of natural gas refueling stations and drive sustainable mobility with this alternative fuel. Through this partnership, SEAT is going to share information on
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the demand for this type of vehicles in order to boost the installation of refueling points that are accessible to the public in areas considered of major importance. Moreover, Redexis expects to have more than 100 filling stations nationwide in the next two years. “Sales of natural gas-powered SEAT vehicles have tripled in Spain in the past three years, which demonstrates the potential of this technology. At this point, promoting the creation of refueling infrastructure remains a pending challenge in our country and this kind of agreement is the path we must follow in order to democratize the use of natural gas for mobility,” said SEAT President Luca de Meo.
“Redexis, as a company which makes an enormous investment effort in energy infrastructure, is firmly committed to natural gas-powered mobility and this agreement adds to SEAT’s commitment to manufacturing natural gas vehicles. Our goal is to continue building and developing the necessary infrastructure in the country to promote alternative fuels that are more sustainable, affordable and environmentally friendly,” commented Redexis President Fernando Bergasa. According to registration data in Spain provided by Gasnam, and taking into account the current rate of growth, the potential for natural gas-powered vehicles in Spain could exceed one million cars by 2030. In the framework of this agreement, Redexis will develop the necessary CNG refueling facilities to meet this demand for road mobility and will incorporate SEAT vehicles that run on natural gas into its fleet, as well as into the fleets of its own partner companies.
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NGVs are becoming more popular among Finnish logistics companies
Kuusakoski, a pioneering Finnish company in the recycling business, started using its first CNG truck in early September, to serve customers in the Uusimaa region. While the number of natural gas vehicles has grown at an amazing rate in the heavy-duty transport sector,
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Kuusakoski is thinking about acquiring more NGVs in the future. “We aim to introduce a lower-emission fleet for transport at Kuusakoski. The new vehicle has given us valuable information about a natural gas transport fleet. We intend to use this information when buying new vehicles,” commented Krister Heinonen, Vice President, Logistics at Kuusakoski. Expanding the CNG/LNG refueling network makes it easier than earlier to choose natural gas vehicles and is driving companies’ interest in this fuel. Development of technology in heavy-duty vehicles and cost efficiency are also driving growing demand. “We are committed to developing the Nordic station network. We aim to improve possibilities to fill up with natural gas and to make it easier for companies to choose environmentally friendlier alternatives,” said Jani Arala, Senior Sales Manager, Traffic, Gasum. Kuusakoski’s new CNG truck is operated by Helsinki logistics company K&O Tiilikainen, who have a total of six vehicles, two of which run on LNG. Positive comments about all three natural gas vehicles have been received from drivers and customers alike. “Drivers have commended the functionality of NGVs and customers have been delighted with the increase in greener alternatives. We consider it important to help our customers to reach their own targets by providing a new type of environmentally friendlier transport fleet,” said Ossi Tiilikainen, CEO, K&O Tiilikainen.
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LNG-fueled transport planned for the Amazon Basin
Hidrovias do Brasil and Robert Allan Ltd. have formed a partnership to pioneer LNG for South America’s inland navigation. The project, focused on the Amazon Basin, forecasts the development of LNG river convoys and the intention on deployment of the first fully
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electric pushboat in the world. Hidrovias do Brasil is an integrated logistics company focused on waterway transportation throughout Latin America. It is involved in the transport of grain, bauxite and other agricultural and mineral commodities. The first phase of the project involves the development of river convoys for the transportation of LNG in the Amazon Basin, consisting of natural gas powered pushboats and cryogenic barges, which maintain liquids at temperatures below minus 160 degrees Celsius. The goal is to meet regional demand, which encompasses the domestic market, local thermoelectric plants and industrial complexes with combined demand potential of over five million cubic meters of natural gas per day. Currently, the most widely used fuels for waterway transportation are heavy fuel oil and marine diesel oil. The companies say that the use of natural gas offers numerous benefits, such as cost savings (LNG price expected to be about 45 percent of fuel oil’s for the same power delivered) and also in the emission of polluting gases (25 percent less relative to fuel oil), so the Amazon region will benefit from LNG access through a massive transportation made with alternative energy, with lower environmental impact and cost reduction. The second phase includes the development of electric pushboats capable of maneuvering barges with approximately 2000 tons of cargo. Innovation, in addition to preventing the spread of pollutants in more environmentally sensitive areas, should reduce fuel and maintenance operating costs by up to 20 percent. According to a study to analyze the viability of the project, developed by the companies, the new pushboat can reach next to zero emission condition when powered only by batteries.Both the electric pushboat and the LNG convoy are expected to be operational by 2021. The project also includes an LNG terminal owned by Hidrovias do Brasil in Barcarena, which is already under development.Robert Allan Ltd. is Hidrovias do Brasil’s primary naval architecture and technical consulting partner, and together the companies have been pioneers in the use of pushboats equipped with diesel electric technology and azimuth drives for inland navigation.
https://www.maritime-executive.com/article/lng-fueled-transport-planned-for-the-amazon-basin
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New CNG station under construction in California with PepsiCo’s help
American Natural Gas (ANG) officially breaks ground at their public natural gas station in Modesto, California. This facility, scheduled for completion in January of 2020, will be number 61 for ANG and will be an extension of their prominent infrastructure nationwide,
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enhancing its ability to create a healthier environment through the use of alternative fuels. Designed and engineered by ANG’s skillful team of experts, the three-lane, fast fill station will be equipped with leading CNG technology, and will be able to sustain exceedingly fast fill times while providing a superior experience for all customers. The station is made possible by PepsiCo in conjunction with ANG. Frito Lay, a division of PepsiCo, sets the standard for all American businesses with their first-of-its-kind Showcase for Sustainability. “The project is a first-of-its-kind for PepsiCo and Frito-Lay and is part of California Climate Investments (CCI), a statewide program that puts billions of Cap-and-Trade dollars to work reducing greenhouse gas emissions, strengthening the economy, and improving public health and the environment — particularly in disadvantaged communities,” said PepsiCo. Car and truck emissions in the San Joaquin Valley are responsible for half of the airborne particulate matter. By fueling with biomethane sourced from local dairy farms, fleets can become carbon net negative well-to-wheel fueling. Innovative technologies combined with biomethane make for natural gas fueling 120% cleaner than the cleanest diesel engine and creates a carbon net negative scenario.
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LNG as a Marine Fuel/Shipping
ABB delivers for icebreaking LNG carrier fleet
The final vessel in 15-ship series enters service for Yamal LNG project ahead of schedule. Yakov Gakkel, owned by joint venture between Teekay LNG Partners and China LNG Partners, joins a fleet of 15 specially designed tankers transporting liquefied natural gas (LNG)
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year-round from one of Russia’s most significant export developments in a generation, Yamal LNG. Built in less than six years and to ARC7 ice class, fifteen 170,000m3 capacity vessels have opened the Northern Sea Route to commercial gas shipping and significantly expanded the navigation period in the direction of the Asia-Pacific region and ensured year-round transportation of gas to the customers westwards. ABB’s Azipod propulsion system, which features an electric drive motor in a submerged pod outside the ship hull, can rotate 360 degrees to increase maneuverability, which is particularly crucial for vessels operating in ice. “The sheer scale of this project and the size of the Azipod units involved make this a milestone for ABB,” says Juha Koskela, Managing Director, ABB Marine & Ports. “The fuel and emissions-saving capabilities of Azipod electric propulsion have made it the technology of choice for sensitive arctic conditions for almost 30 years, and we were delighted to leverage our experience to deliver safe and reliable technologies ahead of schedule in line with the project’s demands.” The scope of ABB solutions supplied as part of the projects also include turbochargers, generators, switchboards, transformers, electric drives and propulsion control systems.
https://www.marinelink.com/news/abb-delivers-icebreaking-lng-carrier-473732
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CMA CGM launches alternative propulsion research initiative
At the French Maritime Economy Conference in Montpellier on Tuesday, CMA CGM CEO Rodolphe Saadé stressed his firm’s commitment to LNG as a marine fuel but left the door open to new propulsion technology. “With the choice of LNG, the CMA CGM Group is a pioneer in the energy transition of the maritime industry.
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To meet the challenges ahead, we must go even further and work together: maritime, air and land carriers, logisticians, energy companies and motorists, in Europe and around the world,” Saadé said. To illustrate its position, CMA CGM released a new promotional video on the relative merits of LNG as a marine fuel. LNG virtually eliminates SOx and PM emissions and reduces NOx by 85 percent, with valuable compliance and health benefits. It also reduces local CO2 emissions from the ship by up to 30 percent, and it typically reduces lifecycle greenhouse gas emissions (including methane) by a margin of six to 20 percent, depending upon the source of the estimate and the specifics of the vessel. At worst, according to a recent study by Imperial College London and the Sustainable Gas Institute, certain LNG-fueled ships may generate more well-to-wake greenhouse gas emissions than comparable HFO-fueled ships. CMA CGM is the first ocean carrier to use LNG to power ultra-large container vessels. In order to supply LNG to a future fleet of 15,000 TEU ships on the Asia-Med route beginning in 2021, the company will use bunkering infrastructure at the port of Marseille-Fos, Saadé said Tuesday, supporting more jobs in the French LNG sector. CMA CGM’s first LNG-fueled megamax, the 23,000 TEU Jacques Saade, is due to make her debut port call at the port this coming June. Saadé also called for a French research initiative focused on future marine fuels. A new partnership announced Tuesday between the French Maritime Cluster, the ADEME (French Environment & Energy Management Agency), Bureau Veritas and CMA CGM will evaluate available technologies and new developments in vessel propulsion. “With the support of the French President, France will launch a major global coalition for the energy of tomorrow,” he said.
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CMA CGM accelerates the deployment of marine biofuel
The CMA CGM Group, a world leader in shipping and logistics, is pleased to announce a partnership with Shell to supply tens of thousands of tons of marine biofuel to its fleet. This quantity, which is unique in the industry, will allow the Group’s
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ships to travel nearly 1 million kilometers, equivalent to over 80 round-trips between Rotterdam and New York. CMA CGM uses biofuel on a large-scale in partnership with Shell. Firmly committed in the search for more eco-responsible solutions to power its vessels, the CMA CGM Group became in 2019 the first shipowner in the world to successfully test the use of a marine biofuel onboard the container ships CMA CGM WHITE SHARK and CMA CGM ALEXANDER VON HUMBOLDT. Today, CMA CGM accelerates and expands in the shipping industry the use of biofuel. The fuel used is composed of 80% of Low Sulphur Fuel Oil and 20% of a biofuel made of used cooking oil. The biofuel used reduces greenhouse gas emissions by 80% and virtually eliminates sulphur oxides emissions. This new development once again demonstrates the Group’s ability to develop sustainable solutions for the benefit of its customers. This new partnership follows on the Group’s initiatives for environmental protection and confirms its pioneering role in the energy transition of the shipping industry. CMA CGM was thus the first shipping company in the world to develop liquefied natural gas (LNG) for ultra-large container vessels, with the ordering of a series of a nine 23,000-TEU (Twenty-foot Equivalent Units) containerships powered by LNG. A genuine technological breakthrough, LNG reduces sulphur oxides and fine particles emissions by 99%, nitrogen oxides emissions by up to 85% and CO2 emissions by around 20%. An international coalition to unite transport and logistics players towards an energy transition. Beyond technical solutions to limit greenhouse gas emissions, CMA CGM wants to unite all maritime transport actors in an international coalition initiated by Rodolphe Saadé, President and Chief Executive Officer of the CMA CGM Group, and supported by French President Emmanuel Macron. This high-level coalition will work towards the emergence of tomorrow’s clean energy for de-carbonized transport.
https://www.hellenicshippingnews.com/cma-cgm-accelerates-the-deployment-of-marine-biofuel/
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Technological Development for Cleaner and Greener Environment Hydrogen & Bio-Methane
World’s first liquid hydrogen ship debuts to export Australian fuel
The world’s first liquefied hydrogen carrier has made its official debut at a shipyard in Japan, a small step towards tapping the carbon-free energy potential of the lightest element. Kawasaki Heavy Industries christened the tanker Suiso Frontier during a ceremony at the Kobe Works yard on Wednesday.
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The ship will be used for technology demonstration to establish an international hydrogen energy supply chain, Kawasaki said in a press release, by shipping the fuel from Australia to Japan. Construction is expected to be complete by late 2020. Suiso Frontier during a ceremony at the Kobe Works yard on Wednesday (Dece3). Hydrogen can be produced using water and electricity, then stored and shipped and re-used to generate power, allowing countries with little space for wind and solar equipment to still receive carbon-free power. It can also help decarbonise a range of sectors, from long-haul transport to steel-making, from which it’s otherwise difficult to remove emissions. Hydrogen can be produced using water and electricity, then stored and shipped and re-used to generate power, allowing countries with little space for wind and solar equipment to still receive carbon-free power. It can also help decarbonise a range of sectors, from long-haul transport to steel-making, from which it’s otherwise difficult to remove emissions. However, it’s also volatile and flammable, and current production techniques are polluting and costly, the International Energy Agency said in a June report that touted the fuel’s potential. Policies and incentives should be put in place now to help reduce costs and scale up the sector, the agency recommended. The ship will have storage capacity of about 1250 cubic metres, less than 1 per cent of the size of liquefied natural gas carriers. The vacuum-insulated, double-shell tank will be able to hold hydrogen chilled to -253 degrees Celsius (-423 Fahrenheit), which shrinks the volume of the gas to 1/800th of its normal size. The ship will run on diesel.
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Norway funds development of H2 ferries in World Heritage Fjord
The Hellesylt Hydrogen Hub, a consortium of leading players in the hydrogen field, has been awarded NOK 37.6 million (USD 4,176,814) under the PILOT-E funding scheme for the development of a hydrogen production facility that can deliver hydrogen to ferries and cruise ships in the Geirangerfjord, as well as to other mobility applications.
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The ambition is to achieve zero-emission operations in the Geirangerfjord, one of two World Heritage Fjords in Norway, by producing green hydrogen locally. The consortium is headed by Flakk Gruppen with Hexagon Composites (hydrogen storage supplier), Hyon (hydrogen solutions integrator), TAFJORD (hydro power supplier), Fiskerstrand (ship design and yard), Gexcon (safety and risk management services), SINTEF (research institute) and the local municipality of Stranda as key partners. “We are proud and grateful to receive the PILOT-E funding enabling us to develop a green hydrogen solution for the Geirangerfjord, a recognized World Heritage Fjord, together with our dedicated partners,” said Knut Flakk, Chairman and owner of Flakk Gruppen. “We will be providing a green and sustainable hydrogen solution to the zero-emission transport and maritime industry in the region. We very much look forward to collaborating with customers to meet their individual needs with our solutions.” Geiranger, a UNESCO World Heritage site, receives around 800,000 visitors a year – of which about 360,000 are cruise tourists. To tackle the local pollution, ships that are not zero-emission will be prohibited from entering the Geirangerfjord by 2026. The project will start its activities in January 2020 and aims to deliver green hydrogen latest by 2023. The hydrogen will be produced by renewable surplus hydro power at Hellesylt, powering hydrogen fuel cell ferries operating the route Hellesylt – Geiranger. This contribution could reduce the CO2 emissions in the Geirangerfjord with 2,370 tons per year. In addition, hydrogen will also be delivered to other vessels, trucks, buses and other vehicles in the region. The PILOT-E scheme is a funding scheme for the Norwegian business sector launched as a collaboration between the Research Council, Innovation Norway and Enova SF. The objective of the scheme is to promote more rapid development and deployment of new, environment-friendly energy technologies and services to help reduce emissions both in Norway and internationally.
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Cars powered by hydrogen cells: Japanese research is key input in Govt’s SC reply
Research on hydrogen-based vehicle technology, or fuel cells, done at the International Research Center for Hydrogen Energy at Kyushu University is learnt to be a crucial input in the submissions set to be presented by the Centre in the Supreme Court on December 3. Ahead of the Tokyo Olympics next July,
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Japan’s government and its auto industry are jointly making a big bet on hydrogen to power emission-free cars — widely regarded as the next frontier in electric vehicle (EV) technology. And, as Japan strives to put thousands of hydrogen vehicles on its roads ahead of the 2020 sporting event, India could end up riding the slipstream. Research on hydrogen-based vehicle technology, or fuel cells, done at the International Research Center for Hydrogen Energy at Kyushu University is learnt to be a crucial input in the submissions set to be presented by the Centre in the Supreme Court on December 3. The apex court had on November 13 directed the Centre to look into the feasibility of introducing hydrogen-based technology to deal with air pollution in the National Capital Region, with a specific reference made at the last hearing to the ongoing research at Kyushu University. Government departments in India are learnt to be in touch with researchers at the Fukuoka-based university — Japan’s fourth oldest university — for readying the blueprint to be submitted in court. An executive with the Japanese auto industry confirmed that the Indian government has reached out to the university and is focused on exploring the possibility of operating fuel cell-driven public transport. The relatively nascent hydrogen market is currently dominated by two of Japan’s top carmakers, Toyota and Honda, alongside South Korea’s Hyundai. At the heart of the hydrogen-powered fuel cell electric vehicles (FCEV) is what is called a fuel cell, where hydrogen and oxygen are combined to generate an electric current, with water being the only by-product. Japan had earlier this year announced plans to ramp up its exposure to the hydrogen ecosystem. Prime Minister Shinzo Abe had declared in Davos that his government “aims to reduce the production cost of hydrogen by at least 90 per cent by the year 2050, to make it cheaper than natural gas”. As a step in bolstering Japan’s hydrogen push, Panasonic Corporation had, last month, announced it had fabricated a hydrogen station in Kusatsu City, Shiga Prefecture with the aim of “verifying the practicality of using hydrogen”. European firms such as Norwegian public enterprise Enova SF, which is responsible for the promotion of environmentally friendly production and consumption of energy, are already working on the technology separately. In 2017, Enova issued a support programme to support establishment of hydrogen infrastructure, as well as support for fleet users to purchase H2 vehicles and stations. Toyota’s Mirai, a hydrogen fuel cell vehicle that is one of the first such vehicles to be sold commercially, counts Norway and Denmark as among its biggest emerging markets, after the state of California in the US.
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Hydrogen-fueled car travels world’s longest distance on a single tank
French aeronaut and president of the Solar Impulse Foundation Bertrand Piccard has broken the world record for the longest distance traveled in a hydrogen-powered vehicle on a single refueling. Driving in a Hyundai Nexo, Piccard left the FaHyence hydrogen station in Sarreguemines on November 25, and
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arrived the next day at the Musée de l’Air et de l’Espace in Le Bourget – a distance of 778 km. Never before has a production car powered by a hydrogen fuel cell covered so many kilometers on a single charge. Piccard was able to take passengers along on this adventure. This was an opportunity for the adventurer and his guests to discover a new generation of car, to share their experiences in terms of environmental protection and to compare their points of view on sustainable development and mobility. In the passenger seat alongside Piccard were: Jean Rottner, President of the Grand Est Region (French); Grand Duke Henri of Luxembourg; Michel Delpon, MP for the Dordogne and President of the Hydrogen Study Group at National Assembly (French); Benoît Potier, CEO of Air Liquide (French); Bruno Le Maire, Minister of Economy and Finance (French); Elisabeth Borne, Minister of Ecological and Solidarity Transition (French); and H.S.H. Prince Albert II of Monaco. “While some may doubt the relevance of hydrogen in tomorrow’s cars, we at Hyundai have believed in it since 1998, when we began our developments on this technology. Thanks to this record, all doubt has been dispelled. As well as being listened to worldwide, Bertrand is a charismatic character who knows better than anyone how to raise awareness of climate issues. We share with him the conviction that it is possible to change our consumption in a sustainable way and hydrogen is an answer to this issue. We see respect for the environment as a vector for growth and not as an obstacle to innovation,” commented Lionel French-Keogh, Managing Director of Hyundai Motor France.
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