NGS’ NG/LNG SNAPSHOT – December 2019, VOLUME 1

National News Internatonal News

NATIONAL NEWS

 

City Gas Distribution & Auto LPG

GAIL introduces payment options for domestic PNG connections

GAIL Gas Limited has introduced various pocket friendly payment options for obtaining  domestic PNG connections and has also negated the registration fee charges.

read more

These payment options will help prospective customers belonging to various income groups to opt for PNG as the fuel of their kitchen. According to officials, the company has provided flexibility through these payment options. The first option will be attracting the customers with the reduction of Rs 1,000 in the connection security deposit. The customers will have to pay Rs 4,000 refundable connection deposit before the gas supply starts. The second option limits the payment of connection security deposit in easy EDI (Equal Daily Installment) options of paying Rs 5per day refundable amount for 1,000 days and no upfront connection security deposit will be taken. In the third option, Only Re one per day (plus applicable taxes) will be charged as rental along with the invoice and the same will be non refundable. In all the options, Rs 500 refundable payment security deposit against the gas consumption will be charged before start of gas supply. Further, no registration fee shall be charged.This project will benefit about 17 lakh people. The company has started DPNG registration in the area of Mothrowala, Banjarawala, Saraswati Vihar, Deepnagar, Dehrakhas, Niranjanpur, Vasant Vihar and Indira Nagar. The company shall start providing gas connection based on the registration obtained from the customers.

https://www.dailypioneer.com/2019/state-editions/gail-introduces-payment-options-for-domestic-png-connections.html

show less

PNG: Gail sets target to reach 3.5L people in DK

Gail India Limited targets to reach 3.5 lakh consumers in Dakshina Kannada, with respect to the establishment of Piped Natural Gas (PNG). Addressing reporters here, on Friday, Gail India DGM (Marketing) Sunil Kumar Jha said

read more

that domestic PNG connections would be provided in Mangaluru city in the initial phase. The registration process has been initiated through select agencies in the city. The agencies have been providing information to the consumers through door-todoor visits. During the registration, the consumers are required to produce identity proof and proof of ownership of the house. The application is provided free of charge, he said. He stated that the consumers have been provided with various payment options for the connection they avail. People can also avail the facility on daily rental. The connection could be availed from Rs 4,500 to Rs 5,000, based on various payment schemes. In Mangaluru city, the pipeline for the PNG will be complete by March 2020 and the supply will be started in Kadri, Bejai, Attavar, Falnir and surrounding areas in the first phase. PNG is the safest mode of gas for cooking and industrial purposes as it is lighter than air. Cities such as Delhi, Mumbai, Pune, Hyderabad and Bengaluru have already been facilitated with PNG. Piped Natural Gas will be the smart solution for the to-be smart city of Mangaluru, he added. DGM – City Gas Distribution (CGD) Projects, Vilin Zunke said that the work on Kochi-Mangaluru pipeline was in progress and will be completed by March next year. He, meanwhile, said that Gail Gas Lot has been authorised to implement City Gas Distribution Project in Dakshina Kannada through the ninth round of PNGRB bidding. The CGD project will have 100 CNG stations and approximately 3,50,000 households connected with the PNG. A pipe network of 1,250 km will be laid in the district. The project will benefit 20 lakh consumers in the district.

https://www.deccanherald.com/state/mangaluru/png-gail-sets-target-to-reach-35l-people-in-dk-781117.html

show less

Regulate CNG prices, distributors told-Jallandhar

Taking cognisance of the continuous protest by auto-rickshaw drivers demanding the regulation of compressed natural gas (CNG) rates in the city, the district administration has summoned city-based CNG distributors.

read more

Presiding over a meeting with the auto-rickshaw drivers and the distributors recently, Sub Divisional Magistrate Jai Inder Singh directed J Madhok and Pal Filling Station, which are supplying CNG in the city, to regulate the prices by December 6. While giving them an ultimatum, the SDM also warned them that if the prices would not be reduced by December 6, their licence would be cancelled. The Bhagat Singh Auto Union, while pressuring the authorities, carried out a protest march on November 18 and submitted a memorandum to the Deputy Commissioner regarding the regulation of CNG rates. Union president Ranjit Kumar said the CNG was being sold at Rs 90 per kg in the city while it was available at Rs 65 per kg in Phillaur, which is only 21 km from Jalandhar. Owing to the dearth of CNG at filling stations in the district, CNG auto-rickshaw drivers have given up driving their auto-rickshaws. Rakesh Verma, general secretary of the union, said: “There is only one filling station for hundreds of CNG auto-rickshaws. It sells the gas at a high rate. The other filling station, which sells the gas for Rs 65 per kg, is located near Goraya, around 40 km from the city. Hence, the administration should also verify why the gas is being sold at hefty rates in the city.” An auto-rickshaw driver, Inderjit Singh, said due to lack of availability of required number of compressed natural gas pumps, they had to limit their work which had further reduced their earnings.

https://www.tribuneindia.com/news/jalandhar/regulate-cng-prices-distributors-told/865743.html

show less

Why Chennai’s PNG plan is all hot air?

An ambitious plan to fire up kitchens with cleaner and cheaper natural gas in Chennai and other cities of the state is stuck in red tape , even as successful bidders are waiting for the state government to clear piped natural gas projects.

read more

While several other cities have begun dispensing natural gas through pipelines, Chennai and Tamil Nadu seem to have missed the bus. The first phase should have been completed by September 2018 and the second by September 2019. Both the timelines have seen no progress with the state government dragging its feet in granting sanctions to operators. “The state government wants to steer clear of gas pipelines and is treading cautiously,” trade sources told The Times of India. A mega `5,000 crore LNG terminal is ready and commissioned, but the absence of a gas grid is delaying the supply of piped natural gas. However, after missing two deadlines, Salem will be the first city in the state to hitch onto the piped gas bandwagon. The city has received approvals even before the policy on pipelines have been finalised. Piped natural gas (PNG) is a cleaner source of energy as compared to LPG cylinders. “It is cheaper and available on tap… you don’t have to worry about booking gas cylinders,” said P P Chandran, who relocated from Mumbai to Chennai recently. Mumbai, along with several other cities, supplies piped natural gas for households. Even landlocked Jamshedpur went live with piped natural gas a few days ago. The bids to create a PNG grid were opened in April 2018 and bidders must complete the project in phases by March 2029. The first phase deadline ended in September 2018. “We are told that the state government will issue a separate policy for piped natural gas network and it is due by the end of this month… we are waiting,” said DS Nanaware, executive director, pipelines division, Indian Oil Corporation. His company has emerged as a successful PNG bidder for Salem and Coimbatore geographical areas. Gujarat-based Torrent Gas has won the bid for PNG network in Chennai and Thiruvallur districts, while Adani has sealed the deal for Kancheepuram, Nagapattinam and other areas. Curiously, Tamil Nadu with a long coastline, an LNG terminal and high concentration of energy-intensive industries, remains out of the gas grid. The government has asked each of these winning bidders to undertake evangelising the fuel. While it will cost around `25,000 for the company to reach each household through a gas grid, consumers would have to sign up by paying Rs 5,000 as refundable deposit. “From a cost-of-use standpoint, every household will save at least 50% on cooking fuel by opting for PNG. Besides, it is significantly safer than LPG,” Nanaware said.

https://timesofindia.indiatimes.com/city/chennai/why-chennais-png-plan-is-all-hot-air/articleshowprint/72168661.cms

show less

3 more CNG stations in Patna city by Dec 5

Three new compressed natural gas stations will become functional in the city by December 5. They will be located in Transport Nagar (Sonali Petrol Pump), Saguna Mor (Navneet Petrol Pump) and Naubatpur (CGS Petrol Pump).

read more

An announcement in this regard was made by state transport secretary Sanjay Kumar Agarwal after a meeting with representatives of the GAIL and different petroleum companies on Monday(Nov 18). At present, long queues of CNG-fuelled autorickshaws can be seen at the two CNG stations in Bypass and Rukanpura on Bailey Road. The transport secretary said, “With two additional stations, their total number will go up to five in Patna. Three more CNG stations in Digha (Sanjiv Yatayat), Bailey Road (Raghunath Petrol Pump) and near Patna Junction (Palm Tree Petrol Pump) will be ready by March next year.” Agrawal, who is also Patna’s divisional commissioner, claimed that CNG stations were likely to come up in other towns like Gaya, Nalanda, Muzaffarpur, Ara and Bhagalpur by the end of next year.

https://timesofindia.indiatimes.com/city/patna/3-more-cng-stations-in-city-by-dec-5/articleshow/72115047.cms 

show less

MNGL threatens to cut off CNG supply to PMPML over dues

The Maharashtra Natural Gas Limited (MNGL) has threatened to stop compressed natural gas (CNG) supply to Pune Mahanagar Parivahan Mahamandal Limited (PMPML) buses in Pune Municipal Corporation and

read more

Pimpri Chinchwad Municipal Corporation areas unless the outstanding amount of ₹37 crore is paid. Of the PMPML fleet of 2,000 buses, 950 run on CNG fuel. The public transport utility maintains that it will pay the arrears, but not the interest on remaining balance stating that it against the terms and conditions of the memorandum of understanding (MOU) signed between PMPML and MNGL. Santosh Sontakke, director (commercial), MNGL said, “We daily supply at least 13,000 cubic metres of CNG to PMPML. The monthly billing comes to ₹10 crore and PMPML pays between ₹4 crore and ₹5 crore, and the remaining is left as arrears. The pending amount has accumulated and reached ₹43.30 crore, and PMPML has paid only ₹6.22 crore towards the dues. We have informed the transport utility authorities in writing and a number of reminders have been sent, but to avail. We have thus decided to discontinue CNG supply.” Meanwhile, Ajay R Charthankar, joint managing director, PMPML, on Monday said, “We have been regularly paying the bills, but sometimes it gets delayed. We paid ₹6 crore two days before and remaining will be paid soon. However, interest over the arrears must not be charged. We believe that CNG supply is good for both PMPML and MNGL as partners. We have received the notice related to pending of arrears and steps are being taken to pay off the arrears. However, CNG supply must not be discontinued.” The MNGL is a joint venture between Bharat Petroleum Corporation and GAIL India Limited.

https://www.hindustantimes.com/cities/mngl-threatens-to-cut-off-cng-supply-to-pmpml-over-dues/story-WMNj7Zj35tm9lD7YgnKrfM.html

show less

Adani Gas Q2 net doubles to 1.2 billion

Adani Gas Ltd has reported that Consolidated net profit in July-September was at Rs 1200.6 million , compared with Rs 506. million , profit after tax (PAT) in the same period a year back,

read more

the company said in a statement. Revenue from operation soared 12% to Rs 5028.2 million. The increase in PAT reflects the reduction in tax expenses on account of changes made vide Tax Laws Amendment Ordinance 2019 as applicable to the company. The volume of compressed natural gas (CNG) sold to automobiles increased 9%, while there was a 6% rise in sale of piped natural gas (PNG) to households. Overall, sales volume grew 7% to 146 MMSCMD on the back of volume growth in both CNG and PNG distribution, the statement said. CNG volumes increased to 75 MMSCM, while PNG sales grew to 71 MMSCM. Adani Gas is developing and operating City Gas Distribution (CGD) networks to supply PNG to industrial, commercial and domestic (residential) customers and CNG to the transport sector. Headquartered in Ahmedabad, the company has already set up city gas distribution networks in Ahmedabad, Vadodara in Gujarat, Faridabad in Haryana and Khurja in Uttar Pradesh.

Source: Indian Oil & Gas

show less

Distribution of natural gas to households in Kozhikode soon

The infrastructure development work for the distribution of piped natural gas to households in Kozhikode, Malappuram and Wayanad districts is likely to start soon. The plan is to complete the laying of pipelines

read more

for household connections and to the bunks of Indian Oil Corporation in some parts of Kozhikode. The work in Kozhikode will commence at Unnikulam and nearby areas in the first phase. The intermediate pigging station of the gas pipeline developed by the GAIL at Unnikulam. It will be the base station for the household network and network to CNG bunks. “The infrastructure development and distribution of CNG to houses will be completed by the Indian Oil-Adani Gas Private Ltd,” said M Viju, deputy general manager of GAIL. “The IP Station functioning at Unnikulam and three sectionalizing valve (SV) stations at Puthur, Kottur and Ayanchery in the district will also function as refilling stations and centres of local area distribution,” he said adding that similar works would be carried out in other districts also. IP stations and SV stations are part of the GAIL pipeline for the real-time monitoring of the gas supply. The stations have the facilities to check the pressure of piped gas using software. Two weeks ago, a team of experts from the IO-AG visited Unnikulam, Kunnamangalam and other areas as part of planning their work. IO-AG private limited is entrusted the task of infrastructure development and distribution of piped natural gas to individuals as GAIL cannot give direct supply to household consumers. They are entitled to carry out direct supply only to major customers. The plan is to lay distribution line alongside the national highway 766 from Unnikulam to Karanthur.

https://timesofindia.indiatimes.com/city/kozhikode/distribution-of-natural-gas-to-households-in-kozhikode-soon/articleshow/72284232.cms

 

show less

GO TOP

Electric Mobility

Under FAME II govt spent Rs 175 Cr to buy heavy EVs

In a notification by the Ministry of Heavy Industries & Public Enterprises said that the expenditure is borne by the Department of Heavy Industries itself.

read more

The government has sanctioned 5,095 e-buses for intra-city operations in 64 cities/State Transport Corporations (STCs). Four hundred e-buses sanctioned for inter-city operations and hundred e-buses for Delhi Metro Rail Corporation (DMRC) for last-mile connectivity.

In a written reply to Lok Sabha, details were provided by Prakash Javadekar, who handles the Ministry of Heavy Industries & Public Enterprises. He also spoke about the bifurcation of electric buses allotted for the cities of the Andhra Pradesh. Andhra Pradesh has a total of 350 electric buses allocated out of them a maximum of hundred e-buses are allocated to Vishakapatnam city. However, Vijayawada, Amravati, Tirupati and Kakinada got 50 e-buses each. APSRTC (Andhra Pradesh State Road Transport Corporation) has got 50 e-buses for its inter-city operations, said the minister. The department had made an announcement that it has approved the sanction of 5595 electric buses to 64 cities in 22 states and union territories. It had invited the EOI (Expression of Interest) to various smart cities, states, union territories. Tripura becomes the second State after Assam in Northeast. 50 buses will run in the capital city and 100 buses in Assam. 50 buses for Guwahati and 25 each for Jorhat and Silchar.

Source: electricvehicles.in

show less

Delhi Metro approached Supreme Court for 15,000 e-autos

The Delhi Metro Rail Corporation (DMRC) approached the Supreme Court (SC) for relaxation of three-wheeler permits in Delhi as Metro plans to deploy 15,000 electric autorickshaws in its feeder fleet to give a boost to the last mile connectivity.

read more

Recently on behalf of DMRC, the Environment Pollution Control Authority (EPCA) announced that it will submit a report to the Supreme Court to take approval for plying 15000 e-autos from Delhi metro stations.  The current fleet with DMRC consists of 174 non-AC midi buses and around 1000 e-rickshaws operating for 11 metro stations across Delhi-NCR. Metro has also tied-up with Uber and Ola cab aggregators but there were some issues arising in assisting passengers in booking the cabs and autos.

The DMRC Managing Director Mangu Singh told that “We are planning to scale up the number of e-rickshaws to 5,000. But we are also looking at e-autos. There is a qualitative difference between the two. Autos provide more comfort. But there is a cap on the number of autos in Delhi. We have moved the Supreme Court for allowing 15,000 autos,”. The EPCA member emphasized that the e-autos are suitable for last-mile connectivity from Delhi Metro Stations but a regulatory framework must be there to operate them in the city. Proper care must be taken for the disposal of the batteries, so that the e-autos drivers may won’t end up with any domestic waste which may result in an environmental hazard.

Source: electricvehicles.in

show less

BYD India to supply 50 Electric Cargo Vans

BYD India has bagged orders for its recently revealed T3 electric cargo four-wheeler. Electric fleet operator Eto Motors has placed an initial order for 50 T3 Electric cargo vehicles, which are to be used for immediate service.

read more

A T3 MPV or a minivan can reduce fuel consumption and emissions equivalent to five passenger cars. Both models require 90 minutes to get fully charged using DC charging equipment and they also support standard AC chargers. With one full charge, both the models can travel up to 300km. These vehicles will be designed and manufactured with BYD’s power battery, motor, motor controllers and powertrains. Eto Motors plans to expand its electric cargo fleet with an order for 4,000 BYD EVs including both three and four-wheelers for freight and cargo operations. Eto Motors will deploy these 4,000 EVs across 20 cities over the next year to service logistics needs, serve to online and brick-and-mortar retailers. BYD’s T3 MPV and T3 minivan models adopt BYD’s proprietary battery technology, whose safety, reliability and lifecycle are proven by the company’s 11-year track record of EV operation. These vehicles featuring keyless entry, push-button start, a music system with Bluetooth connectivity, reverse parking cameras and sensors, and well-designed spaces for cargo storage or passengers. They are also equipped with automatic transmission, which makes them stand among the most easily operable vehicles in the market. Both the models also come with prominent safety features like Anti-lock Braking System (ABS), Electric Parking System (EPB), Brake Override System (BOS), Electronic Brakeforce Distribution (EBD) and many more. A regenerative braking system helps to improve the range of a vehicle and save energy. The T3 MPV and T3 minivan can productively reduce the cost of urban logistics distribution.

Source: electricvehicles.in

show less

Tamil Nadu Government to introduce 2000 Electric buses

Tamil Nadu Government to introduce 2000 Electric buses. During the financial year, the government presented the budget stating that it would introduce 10,000 BS-VI compliant buses and 2,000 electric buses.

read more

In the first phase, they will introduce 500 electric buses and 2,213 new BSVI- compliant buses at a cost of Rs 1,580 crore.

Tamil Nadu is one among the states of India, which are actively and honestly making efforts to curb pollution by promoting environment-friendly vehicles. Recently, to boost the use of electric vehicles, the Tamil Nadu Chief Minister Edappadi K Palaniswami announced the Electric Vehicle Policy 2019. According to that policy, all-electric vehicles will be exempted from Motor Vehicles Tax till 2022 and manufacturers will get incentives on investment, land cost and 100% exemptions from state goods and Services Tax (SGST), land registration fees tax and electricity tax. Tenders were floated to operate 525 electric buses in main cities like Coimbatore, Madurai, Tiruchirappalli, Vellore and Thanjavur. These electric buses come under the Centre’s FAME II scheme and hence TN is the fourth state in the country to achieve this feat.

Source: electricvehicles.com

show less

Barriers & solutions to EV adoption 

The world is witnessing electric vehicles growth every day. The government, the automotive industry’s big players and EV startups are taking initiatives to promote the use of electric vehicles all over the world.

read more

Today almost everyone knows what are the consequences of using those harmful gases emissions vehicles, how it is impacting the air and overall environment. But still, people neglect it, ignore it for harming self-health and the environment. Though electric vehicles are becoming popular but still to be widely adopted. In this article, we will try to understand the limitations or barriers to EV adoption and what can be the tentative solutions to solve those barriers. It does not only effects on health and environment, but it also helps the country to grow economically by cutting down the crude oil imports which we are spending more than billions of crores every year. Technological problems are becoming the obstacles for the electric vehicles, the main area of concern is the batteries their weight that is equipped into the vehicles, however, there is much technology coming up with some lightweight batteries. Lack of lithium-ion is also becoming a barrier which leads to the limitations of range and price. The range depends on the capacity of the battery used. The energy stored in batteries decides the distance that needs to travel and accordingly allows the distance. There will be also the difference in the range due to the driving style, load the vehicle is carrying, terrain, energy consumption all these causes range anxieties to the users. That automatically lets the users think about recharging the batteries for which they will need charging stations. The electric vehicles which are available today don’t give much range of what people are looking for. Even if they want to charge their vehicles on the way to their desired destinations, they are not sure about the charging station availability. There are many public charging stations provided but it is not enough. Longer hours of charging and incompatible chargers are becoming the barriers. If sufficient and fast charging options are provided, people will not have range anxieties. If it is provided, the users can quickly charge their electric vehicles whenever and where ever the battery dies, it will definitely help in the growth of the EV sector.

Source: electricvehicles.in

show less

 

Gas/ Pipelines/ Company News

GAIL, regulator at odds over Rs 1.5K crore pipeline

GAIL and the downstream regulator are headed for a clash after the latter cancelled the state-run firm’s sole bid to lay a Rs 1,500-crore pipeline in Rajasthan citing unviably high tariff,

read more

and launched in its place the bidding process for another pipeline with altered route, according to people familiar with the matter. Petroleum and Natural Gas Regulatory Board (PNGRB) said on November 6 that it had cancelled the bid process for Langtala-Jodhpur-Bhilwara pipeline “as the tariff quoted by GAIL (India) Ltd (as a sole bidder) was found to be excessively high, impacting the viability of the gas itself.” That very day, the board also invited bids for laying a new gas pipeline on altered route from Langtala to Pali via Jodhpur. This has upset GAIL, which feels the ‘excessively high tariff ’ and ‘viability of the gas’ are subjective considerations and can’t become ground for cancellation of bid under the current regulatory framework, according to sources close to the company. GAIL may soon request PNGRB to review the decision that it considers unfair, sources said. But sources close to PNGRB have rejected the charge, saying the regulator has acted as per the law and GAIL was free to challenge it in court. PNGRB can’t allow GAIL to ‘squeeze the market’ and hurt the development of domestic gas market, sources close to the regulator said. GAIL defends the high tariff, saying it was due to higher risk perception in the project, sources close to the company said. The pipeline was supposed to evacuate gas only from Focus Energy’s block in Langtala, Rajasthan and if the actual production from this were to fall short of expectation, as has happened in some upstream gas projects in the past, the proposed pipeline would end up with much less business than anticipated, they said, adding that higher tariff could have let company recover cost quickly. Yet if the PNGRB felt that the proposed tariff was too high, it should have formally approached GAIL and discussed the possibility of cutting it to acceptable levels, they said. However, sources close to PNGRB said the regulator had held discussions with some senior GAIL executives before cancelling the bid. PNGRB’s suo motu move to seek bids for a pipeline with altered route without holding public consultation as is necessary under the regulations is questionable, sources close to GAIL said. The new pipeline will connect at Pali with the proposed Mehsana-Bhatinda pipeline, being built by a joint venture led by Gujarat State Petronet Ltd, a subsidiary of Gujarat State Petroleum Corp (GSPC). Indian Oil, HPCL and BPCL are other shareholders in the joint venture. Mehsana-Bhatinda pipeline, authorised by PNGRB in 2011, has been delayed for years. GAIL and PNGRB didn’t respond to ET’s request for comment. A GSPC official said the first phase of Mehsana-Bhatinda pipeline has been completed and the second phase of 950 km will be completed by October 2020. He further said the pipeline is interconnected with GSPC’s Gujarat pipeline network at Palanpur in Gujarat. Sources close to GAIL say the project would take more time. By proposing to connect a new pipeline with one that has not been completed many years after the project was awarded, the regulator is introducing uncertainty, which would help neither the producer nor consumers, sources close to GAIL said. The cancelled-pipeline proposed to connect to GAIL’s operational Hazira-Vijaipur-Jagdishpur pipeline, connecting the producer with a very wide base of consumers from all sectors, sources close to GAIL said.

https://economictimes.indiatimes.com/industry/energy/oil-gas/gail-regulator-at-odds-over-rs-1-5k-crore-pipeline/printarticle/72134936.cms

show less

Gujarat rolls out green carpet for India’s natural gas-based economy

In 2008-09, billboards were displayed across Ahmedabad claiming Gujarat will show the way to the rest of India how to be pollution-free by use of compressed natural gas (CNG).

read more

The campaign was aimed at discouraging autorickshaw drivers and owners who mixed kerosene with petrol to fuel their vehicles, causing heavy air pollution, said a senior government official. In June this year, Gujarat chief minister Vijay Rupani announced the ‘CNG Sahbhagi Yojana’. It aims to resolve the issue of long queues at CNG stations by adding another 300 stations in two years. Further, the state government recently gave its nod for what it claims to be the world’s first compressed natural gas (CNG) port terminal. The facility, to come up in Bhavnagar, will be set up jointly by the UK-based Foresight Group and the Mumbai-based Padmanabh Mafatlal Group. Gujarat rolls out green carpet for India’s natural gas-based economy. Producing 47% of the nation’s natural gas, it is home to 19.6 lakh piped natural gas users who account for 42% PNG customers in India. Companies like Gujarat Gas, Adani group, Torrent group, Petronet LNG, Shell group, Gujarat State Petronet Ltd, Shapoorji group, IRM Energy and Sabarmati Gas have invested in various infrastructure facilities from LNG terminals to CGD networks to pipeline infrastructure to power plants, creating an ecosystem for a gas-based economy. Gujarat-based companies bagged rights to retail CNG and PNG in a number of cities during the 9th and 10th round of auctions by PNGRB. Torrent Gas bagged licences for 18 cities, while Adani Gas won 15 areas on its own and 10 in joint venture with Indian Oil Corporation. State-run Gujarat Gas bagged rights for seven cities. The cumulative investments by these players to develop CGD networks in these cities will be more than Rs 25,000 crore over the next few years. Apart from developing natural gas pipeline supply infrastructure, Gujarat is the only state with two operational LNG terminals — Dahej, run by Petronet LNG, and Hazira terminal by Shell group. It currently holds about 25% share of natural gas consumption in total gas supplies on pan-India basis. While these two terminals handle about 70-80% of total gas and LNG supply in the country, a third one, set up jointly by Gujarat government, is all set to be commissioned soon. Two more LNG terminals, one by Shapoorji Pallonji group and another one by Swan Energy are under construction. Another terminal with a re-gasification capacity of 5 MMTPA, built jointly by Gujarat government and Adani group at Mundra, is expected to be commissioned shortly.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/gujarat-rolls-out-green-carpet-for-indias-natural-gas-based-economy/72093553[Edited]

show less

Indian Oil may bid for BPCL stake in Numaligarh Refinery

Indian Oil Corporation Ltd may emerge as one of the contenders for Numaligarh Refinery Ltd (NRL) once the Centre initiates its disinvestment process. The Centre recently announced plans to divest

read more

Bharat Petroleum Corporation Ltd’s (BPCL) 61.65 per cent shareholding in NRL, along with the transfer of management control, to a Central public sector enterprise operating in the oil and gas sector. Asked if Indian Oil will look at NRL as an asset, Chairman Sanjiv Singh told BusinessLine: “Let us see how it comes (the offer). The process is all the same, whichever company pitches in.” On further prodding, he said: “No, we are not ruling out anything.” He, however, hinted that competition could come from Oil India Ltd, one of the key PSUs in the oil exploration business, which has high stakes in the North-East. Indian Oil, one of the nation’s biggest oil refinery-cum-retailing PSUs, does not foresee any oil supply constraint due to geopolitics. “In the second half of the current financial year, there will be a lot of pipeline infrastructure coming up for taking out more crude oil. We are still not seeing enough crude oil coming out from the US. The US is exporting the same volumes. The spare capacity in the US can help in balancing the oil market gain to offset any cuts that are happening. The key will remain outside OPEC and OPEC+,” said Singh. Indian Oil imports about 70 MMTPA of crude oil. Today, over 50% of its crude requirements are met through term contracts and the remaining from spot. Iraq and Saudi Arabia remain its largest suppliers, besides Nigeria, Kuwait, Angola and the UAE.

https://www.thehindubusinessline.com/companies/indianoil-may-bid-for-bpcl-stake-in-numaligarh-refinery/article30079136.ece[Edited]

show less

BPCL to sell stake in JVs

The government is keen on BPCL offloading its stakes in various gas and refinery joint ventures prior to its sale — ensuring the prospective buyer of the PSU is not burdened with different business interests.

read more

BPCL has stakes in Petronet LNG, Indraprastha Gas and Bharat Oman Refineries as well as in oil and gas blocks in the country and abroad, including in Mozambique. The African asset has a total recoverable reserve of 60 trillion cubic feet, and gas sales are expected to commence in two years. Oil ministry officials said the strategy would be finalised after assessing different options, which would bring maximum value to the government stake in BPCL. A government-appointed assessor has been given 50 days to prepare its report. The Union cabinet has decided to privatise BPCL by selling the government’s entire stake to a strategic investor along with management control. BPCL has a 12.5 per cent stake in Petronet LNG and is part of the company’s promoter group, which consists of three other oil and gas PSUs. In city gas distribution player Indraprastha Gas, BPCL as well as state-owned GAIL (India) Ltd own 22.5 per cent stake each. Bharat Oman Refineries is a joint venture between BPCL and Oman Oil Co. The upstream arm Bharat PetroResources Ltd has a number of joint investments in overseas oil and gas projects. The portfolio includes 17 blocks worldwide, across six countries. Moody’s Investors Service said it has placed BPCL’s rating on review for downgrade after the government decided to privatise the country’s second-biggest state oil refiner. “The review for downgrade follows the government of India’s decision to sell its entire 53.29% stake in BPCL and to transfer management control of the company to a strategic buyer,” the rating agency said in a statement. The ratings placed on review for a downgrade include BPCL’s ba1 baseline credit assessment, its Baa2 issuer rating and Baa2 backed senior unsecured rating for Bharat PetroResources. BPCL’s Baa2 rating incorporates its ba1 baseline credit assessment.

https://www.telegraphindia.com/business/bpcl-to-sell-stake-in-jvs/cid/1722262

show less

GO TOP

Policy Matters/ Gas Pricing/Others

Centre approves major privatisation drive; Nirmala Sitharaman says govt to sell stake in BPCL, SCI and Concor

In the biggest privatisation drive ever, the Union Cabinet on Wednesday approved sale of government’s stake in blue-chip oil firm BPCL, shipping firm SCI and

read more

onland cargo mover Concor, as well as decided to cut shareholding in select public sector firms below 51% to boost revenue collections that have been hit by slowing economy. The Cabinet Committee on Economic Affairs (CCEA) approved sale of government’s entire 53.29% stake along with transfer of management control in the country’s second biggest state owned refiner Bharat Petroleum Corp Ltd (BPCL) after removing Numaligarh refinery from its fold, Finance Minister Nirmala Sitharaman told reporters here. It also approved sale of 53.75% out of the government holding of 63.75% stake in Shipping Corporation of India (SCI) and 30.9 per cent stake in Container Corp of India (Concor). The government currently holds 54.80 per cent in Concor. Besides, the government will sell its entire holding in THDC India and North Eastern Electric Power Corp Ltd (NEEPCO) to state power generator NTPC Ltd, the minister said. Parallely, the Cabinet has approved reducing government’s stake in select PSUs such as Indian Oil Corp (IOC) to below 51% while continuing to retain management control. The management control will continue to be retained with the government after considering equity held by other state-run companies in the divested firm. The government currently holds 51.5% in IOC and another 25.9% through state-owned Life Insurance Corp of India (LIC), and explorers Oil & Natural Gas Corp (ONGC) and Oil India Ltd (OIL) and the government can potentially sell 26.4% for about Rs 33,000 crore. Sitharaman said Numaligarh Refinery will be handed over to the public sector oil company to allay concerns of the North East over privatisation move.

https://www.firstpost.com/business/centre-approves-major-privatisation-drive-nirmala-sitharaman-says-govt-to-sell-stake-in-bpcl-sci-and-concor-7679901.html

show less

Essar Steel, Adani, GAIL, HPCL buy bulk of natural gas from Reliance’s new fields

Essar Steel, Adani Group and state-owned GAIL have bought majority of natural gas from Reliance Industries’ newer fields in the KG-D6 block at an indicative price of $5.04 – 5.16 per unit, industry sources said.

read more

Essar Steel picked up 2.25 MMSCMD or about half of the available volumes in the day long auction conducted on November 15. Gujarat State Petroleum Corp (GSPC) picked up 1.2 MMSCMD while Adani Group, Mahanagar Gas Ltd and GAIL bought 0.3 MMSCMD each, sources said. Hindustan Petroleum Corp Ltd (HPCL) bought 0.35 MMSCMD and the remaining 0.10 MMSCMD went to GSFC/GNFC. Reliance and its partner BP Plc of the UK had sought bids from potential users for the 5 MMSCMD of natural gas they plan to produce from the R-Cluster Field in KG-D6 block from mid-2020. Bidders were asked to quote a price (expressed as a percentage of the dated Brent crude oil rate), supply period and the volume of gas required. Dated Brent means the average of published Brent prices for three calendar months immediately preceding the relevant contract month in which gas supplies are made. Sources said Reliance had set a floor or minimum quote of 8.4 per cent of dated Brent price — which meant that bidders had to quote 8.4 per cent or a higher percentage for seeking gas supplies. In the November 15 auction, bidders quoted between 8.4 and 8.6 per cent slope to corner all of the 5 MMSCMD supplies available. This translates into a price of between USD 5.04 per MMBtu and USD 5.16 per MMBtu rate at Brent oil price of USD 60 per barrel. Sources said while bankruptcy-hit Essar bought gas to feed its steel plants, other buyers including Adani Group picked up the volumes for their city gas operations of retailing CNG to automobiles and piped cooking gas to households. The volumes are mostly planned for usage in western India particularly in Gujarat where the gas can be delivered through a single pipeline – East-West pipeline. The delivered price in Gujarat is likely to be around USD 6.50 per MMBtu, they said. According to the bid document, the gas price will be subject to the ceiling price mandated by the government. The ceiling price for gas from difficult fields such as those in deep-sea currently is USD 8.43 per MMBtu. Reliance and BP are developing three sets of discoveries in KG-D6 block — R-Cluster, Satellites, and MJ by 2022. R-Cluster will have a peak output of 12 MMSCMD while Satellites, which are supposed to begin output from mid-2021, would produce a maximum of 7 MMSCMD. MJ field will start production in second half of 2022 and will have a peak output of 12 MMSCMD. Reliance has so far made 19 gas discoveries in the KG-D6 block. Of these, D-1 and D-3 — the largest among the lot — were brought into production from April 2009 and MA, the only oilfield in the block was put to production from April 2009 and MA, the only oilfield in the block was put to production in September 2008. While the MA field stopped producing last year, the output from D-1 and D-3 has fallen sharply from 54 MMSCMD in March 2010 to 1.68 MMSCMD in the July-September. Other discoveries have either been surrendered or taken away by the government for not meeting timelines for beginning production.

Reliance is the operator of the block with 66.6% interest while BP holds the remaining stake in the block.

https://www.news18.com/news/business/essar-steel-adani-gail-hpcl-buy-bulk-of-natural-gas-from-reliances-new-fields-2389967.html

show less

Firms with net worth of ₹250 crore and more are eligible for auto-fuel retailing

The Ministry of Petroleum and Natural Gas has notified the tweaked guidelines for granting authorisation to sell petrol and diesel in the country.

read more

According to the Gazette notification published last week, companies with net worth of ₹250 crore and more are eligible to get into the business of auto fuel retailing. Under the earlier guidelines for marketing transportation fuels, a minimum prior investment of ₹2,000 crore in the domestic oil and gas sector was mandated. This has now been done away with. In addition to conventional fuels, the authorised entities will be required to install facilities for marketing at least one new generation alternative fuel like CNG, LNG, biofuels and electric charging, among others at the retail outlets within three years of commencing operations. It will also be mandatory to set up at least 5 per cent of the total retail outlets in notified remote areas within five years of grant of authorisation. A penalty for not setting up the promised outlets in remote areas has also been instituted. The penalty also extends to existing PSU oil marketing companies that will be expanding their footprint.

https://www.thehindubusinessline.com/companies/firms-with-net-worth-of-250-crore-and-more-are-eligible-for-auto-fuel-retailing/article29985704.ece

show less

 

LNG Development and Shipping

Saudi Aramco sells first LNG cargo to India

Saudi Aramco has sold its first LNG cargo through its trading subsidiary from Singapore to an Indian buyer as its expands its business beyond oil into gas. The world’s biggest oil exporter,

read more

Aramco dipped a toe into the natural gas business by selling its first cargo of the fuel. Aramco sold the shipment of liquefied natural gas from Singapore, CEO Amin Nasser told reporters, without giving additional details. Aramco’s trading subsidiary sold the cargo last month to an Indian buyer, according to a person with knowledge of the matter. State-run Aramco seeks to become a “major player” in the gas industry and is looking for potential joint ventures and partnerships, Nasser said in Riyadh. “There is a lot of potential to grow our gas in the kingdom. At the same time, we are looking at international gas.” The LNG deal is the latest example of Aramco’s effort to expand outside its historical business of pumping and selling crude. The company plans to buy a controlling stake in the Middle East’s largest petrochemicals maker, Saudi Basic Industries Corp, and is investing in refineries in Asia and beyond. While it doesn’t produce LNG itself, Aramco has been looking at gas assets in Arctic Russia and Africa, Saudi Energy Minister Khalid Al-Falih said Wednesday in Riyadh. In January, it hired an employee from Singapore’s Pavilion Energy to develop its LNG business, focusing on trading and marketing. Saudi Aramco Products Trading Co, which made the first LNG sale, has expressed interest in selling cargoes of the fuel on a spot or short-term basis to Pakistan, Nadeem Babar, head of Prime Minister Imran Khan’s task force on energy reforms, said earlier this month. Aramco planned to send a delegation to Pakistan to discuss the proposal further, he said.

https://oilandgaseurasia.com/2019/05/07/saudi-aramco-sells-first-lng-cargo-to-india/

show less

GAIL, IOC to pay ₹60.18/MMBtu for regasification at Dhamra

Gas Authority of India Ltd (GAIL) and Indian Oil Corporation Ltd will pay ₹60.18 per MMBtu (million British thermal units) as regasification charges at the Dhamra LNG Terminal.

read more

This charge will be borne by the two after the LNG terminal has been commissioned, Minister for Petroleum and Natural Gas, Dharmendra Pradhan said while responding to a starred question in the Lok Sabha. IOCL and GAIL have agreed to pay the tolling charges of ₹ 60.18 per MMBtu for re-gas facility at Dhamra LNG terminal with annual escalations in line with their respective contractual provision, he added. The Dhamra LNG terminal is co-owned by Total SA Ltd and Adani Ports and Special Economic Zone Ltd.

https://www.thehindubusinessline.com/markets/commodities/gail-ioc-to-pay-6018mbtu-for-regasification-at-dhamra/article30009634.ece

show less

IOC, GAIL to pay Adani 5% more charge than their own LNG terminal: Pradhan

New Delhi, Nov 18: State-owned Indian Oil Corp (IOC) and GAIL India will pay Adani Group 5 per cent more in hiring charges for using the private firm’s upcoming LNG import facility at Dhamra in Odisha than their own similar terminal, 

read more

Oil Minister Dharmendra Pradhan said on Monday (Nov 18). India’s largest oil firm IOC, which recently commissioned a 5 MMTPA import terminal at Ennore in Tamil Nadu, as well as gas utility GAIL have “both technical and financial capability to develop their own LNG terminal,” he told the Lok Sabha.
The two firms have, however, hired capacity in Adani’s under-construction LNG import terminal at Dhamra.
IOC had in 2015 signed to use up to 60 per cent of the terminal’s capacity for importing gas for its refineries at Haldia in West Bengal and Paradip in Odisha. GAIL too had signed up for 1.5 MMT of the terminal’s regasification capacity. “GAIL and IOC have agreed to pay the tolling charge of Rs 60.18 per MMBtu for the regasification facility at Dhamra LNG terminal with annual escalations in line with their respective contractual provisions,” he said in a written reply to a question. This charge compares to Rs 57.38 per MMBtu regasification charges for Ennore LNG terminal, he said. GAIL’s own Dhabhol LNG terminal in Maharashtra levies Rs 49.28 per MMBtu regasification charge. In addition, there are other charges such as terminal charges, vessel-related charges and port charges for utilization of the Dabhol LNG terminal. “The regasification charges for Ennore and Dhamra terminals are inclusive of terminal charges, vessel-related charges, port charges, and any other port-related charges,” Pradhan said. Originally, IOC and GAIL had on September 21, 2016, signed a ‘non-binding’ agreement to buy 50 per cent stake in Adani Group’s Rs 5,500-crore Dhamra LNG project in Odisha. But that agreement expired on September 20, 2018, without being translated into a firm pact apparently because of differences over valuation. https://www.dailyexcelsior.com/ioc-gail-to-pay-adani-5-more-charge-than-their-own-lng-terminal-pradhan/[Edited]

show less


GO TOP

INTERNATIONAL NEWS

Natural Gas / Transnational Pipelines/ Others

China’s CNPC to complete part of East China-Russia gas pipeline

The 79.95-km stretch, a short section of the whole pipeline, is crucial for its key location in opening channels of resources from Russia and PetroChina Jingtang LNG to north China market,

read more

CNPC said. BEIJING: * China National Petroleum Corp (CNPC) said on Thursday the Tangshan-Baodi part of East China-Russia gas pipeline is expected to be put into production within three days, the company stated on its website on Thursday (Nov 28). The 79.95-km stretch, a short section of the whole pipeline, is crucial for its key location in opening channels of resources from Russia and PetroChina Jingtang LNG to north China market, CNPC said. The Tangshan-Baodi section, which reduced the construction period to seven months from 17 to ensure gas supply for this winter, expects an annual transmission capacity of 18.7 billion cubic meters, the Chinese refiner said.  China’s natural gas demand is expected to increase by more than 300 billion cubic metres between 2018 and 2035. Gas from Russia’s Siberia fields is expected to be available at the Chinese border from December to meet a share of the demand surge.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/chinas-cnpc-to-complete-part-of-east-china-russia-gas-pipeline/72276886

show less

Algeria’s Sonatrach renews gas export deal with France’s Engie

Algerian state energy firm Sonatrach has renewed a gas export contract with France’s Engie , it said on Tuesday, a few days after Kamel Eddine Chikhi was appointed as its new chief executive.

read more

Energy sales represent a crucial source of foreign currency for Algeria, but have been declining since oil prices dropped in 2014. Rising domestic demand and stagnant output have also made it hard for Sonatrach to maintain Algerian export levels. That had raised some doubts over whether the Engie deal would be renewed, an industry source in Algeria said. Sonatrach said the contract covers the medium and long term, but did not specify how much gas it will deliver to Engie. The state energy firm has already renewed gas export contracts this year with Enel, Galp Energia, Eni, Botas, Naturgy, and Edison. Its total gas exports in 2018 were 51.4 BCM, with Italy and Spain accounting for two-thirds of the volume. “We will work to renew our oil and gas reserves that have been declining in the past decade,” Kamel Eddine was quoted as saying on Sunday after his appointment.

Algeria’s lower house of parliament has passed a new energy law to boost the country’s attractiveness to international oil companies investing in the sector, but has kept a rule preventing majority foreign ownership of hydrocarbons projects.

Source: LNG Global/Reuters

show less

Poland plans to stop importing natural gas from Russian State provider

Poland’s state gas company PGNiG said on Nov. 15 it would stop importing natural gas from Russia’s state-controlled Gazprom when a long-term contract expires in three years unless it can secure better commercial terms.

read more

The announcement comes as Poland is working to reduce its dependence on Russian energy sources, which Moscow has sometimes used as a tool of political pressure on its partners. Poland had said before that it did not plan to buy gas from Gazprom after 2022. However, the agreement signed in 1996, known as the Yamal contract, required that the parties formally submit declarations regarding future cooperation three years before the deal expires. In line with the provisions of the deal, PGNiG had sent Gazprom, which is controlled by the Russian state, notice that it will terminate the contract as of Dec. 31, 2022. The finance and development minister, Jerzy Kwiecinski, said the intention is not solely to stop imports from Russia but to get fair terms. “Everything will depend on the financial terms, but we cannot allow for the gas that we are buying (from Gazprom) to be one of the most expensive in the world,” Kwiecinski said. Poland has repeatedly said that the financial terms of the Gazprom contract were unfavorable and that it was paying a higher price than others in Europe. Poland uses some 14 BCM of gas a year. Under the contract with Gazprom, a “take-or-pay” clause meant it was obliged to import some 10 billion cubic meters of gas from Gazprom per year. Gazprom Export, the gas-exporting arm of Gazprom, confirmed in a statement to Reuters that it had received the notification from PGNiG. “The option of sending such a notification is allowed by the contract,” Gazprom Export said, adding that it continued to supply Poland as per its contractual obligations.

The efforts to reduce dependency include striking long-term contracts for deliveries of liquefied natural gas (LNG) from the United States, Qatar, and other countries, as well as developing a new pipeline with Norway for deliveries from the North Sea. PGNiG holds shares in 27 exploration and production licenses on the Norwegian Continental Shelf. Poland also has some gas deposits of its own. PGNiG said in a statement it’s contracted (LNG) supplies and acquisitions of gas deposits in the North Sea would guarantee the security of supplies after 2022. The day before the announcement, the European Investment Bank (EIB) decided to stop financing fossil fuel projects, including natural gas projects, from the end of 2021. That’s in support of a Green Deal that favors renewable energy, according to Fortune. This decision may be unfavorable for Poland since Polish gas companies will have to look for loans at commercial banks. Such loans will very likely offer higher interest rates than EIB.

https://www.theepochtimes.com/poland-plans-to-stop-importing-natural-gas-from-russian-state-provider_3150292.html

show less

Gas production falling by 5-7% annually – Pakistan

Special Assistant to the Prime Minister on Petroleum Nadeem Babar on Tuesday said domestic gas production was falling by 5-7% annually and the deficit was being met

read more

through the import of liquefied natural gas (LNG). He made the remarks at an annual technical symposium and exhibition organised by the Society of Petroleum Engineers. Around 30 oil and gas companies participated in the exhibition and displayed their work. The special assistant said since local gas production was going down, the government would continue to import LNG to cater to consumer demand. Babar highlighted some positive trends that the country’s energy market would witness in the foreseeable future including the award of contracts for around 35 to 40 oil and gas exploration and production blocks. He revealed that shale gas exploration would also commence next month and encouraged the private sector to join hands with the government to ensure the energy security and prosperity of the country. “Pakistan is taking tangible steps to implement key infrastructure reforms in the oil and gas sector,” he remarked. Babar outlined the salient features of Pakistan’s energy mix and stressed the need for upgrading all the country’s refineries. Existing technology being utilised in the country’s refineries was obsolete, rendering the refining methods outdated, he said. “They may even be closed down entirely or phased out. The government is working on setting up two new refineries and upgrading the existing ones.” Local and multinational oil and gas companies set up stalls at the exhibition for the information of participants and the general public.

https://tribune.com.pk/story/2102888/2-gas-production-falling-5-7-annually/

show less

Greek oil company applies to pipe gas to the island

Greek oil company Energean said on Tuesday (Nov 19) it has formally applied to Cypriot authorities to pipe natural gas to the island, adding that the gas could flow as early as 2021.

read more

In a press release, the company said its subsidiary Energean International has filed applications to the energy regulator here for importing and supplying natural gas to the island. They propose to pipe gas from the North Karish field in Israeli waters to Vasilikos in Cyprus. A Floating Production, Storage and Offloading (FPSO) unit for Karish is currently under construction, and is expected to come online next year. The proposed subsea pipeline from the FPSO to Cyprus would have a total length of 215km. The Karish North field contains 25 BCM of discovered recoverable resources, the company said. “Total investment will be circa $350 million and will be funded by Energean. The Republic of Cyprus will bear no upfront cost. Provided that there will be no delays in permitting procedures, the project will allow the Republic of Cyprus to receive competitively priced natural gas from 2021.” Mathios Rigas, CEO of Energean, added: “Energean’s proposal offers the Republic of Cyprus the option to switch to natural gas as soon as possible, and under the most competitive terms. Execution of the proposal will bring competition to the Cypriot natural gas market, decrease energy costs across the economy and result in enhanced diversity and security of supply.” Energean said it has signed Letters of Intent with all three independent power producers (IPPs) who’ve been granted a licence to construct combined-cycle power plants in Cyprus. The IPPs are: Power Energy Cyprus, Lysarea Energia and Paramount Energy Corporation. The company said moreover it has already signed firm gas sales purchase agreements with Israeli IPPs and industrial consumers. Given Cyprus’ small energy market, it’s understood that Energean proposes to supply approximately 0.6 to 0.7 BCM per year. The company said its offer is ‘complementary’ to Cypriot government plans to import liquefied natural gas. In August this year the Natural Gas Public Company (DEFA) announced a decision to award the tender for the construction of an LNG import terminal at Vasilikos. This will comprise a floating storage regasification unit (FSRU), a jetty for the mooring of the FSRU, pipelines, port and other facilities. DEFA said at the time that the cost of importing and regasifying LNG would be kept below $10/MMBtu – the equivalent cost of oil at current prices. DEFA has yet to close a separate deal for importing the actual LNG. Energy analyst Charles Ellinas has said that even if DEFA were to buy from the spot market, the total cost for Cyprus would not be under $10/MMBtu. By comparison, Ellinas estimates Energean’s pitch would cost under $7/mmbtu.

https://cyprus-mail.com/2019/11/19/greek-oil-company-applies-to-pipe-gas-to-the-island/

show less

GO TOP

Global LNG Development

Global LNG-Asian prices continue downward trend as supply floods

Asian spot prices for liquefied natural gas (LNG) fell this week as a supply glut continued to weigh, while demand growth was muted by signs of a mild winter in Northeast Asia.

read more

Prices for January delivery to Northeast Asia LNG-AS are estimated to be about $5.70 per MMBtu, down 20 cents from last week for the same period, said several sources who are market participants. With European gas storage nearly full, cargoes may struggle to find a home, traders said. Singapore’s Pavilion Energy has taken the unusual step of cancelling the loading of a cargo from the United States, but has agreed to pay for it, several industry sources said. A company spokeswoman said Pavilion evaluated scheduling and other commercial matters and took the decision not to lift the cargo in coordination with the supplier. Supply was ample with several LNG plants offering cargoes this week. Angola’s LNG project offered a cargo for delivery in January to as far as Indonesia, while Australia’s Ichthys and Papua New Guinea LNG plants offered a cargo each for December, sources said. Indonesia’s Tangguh LNG plant, which is operated by oil major BP, also offered five cargoes for delivery over the first quarter of next year, sources added. Some buy tenders from Thailand were finalised with PTT’s Singapore trading unit awarding a tender to buy more than 10 LNG cargoes for delivery over a year from March, 2020, a company official said. State-run Electricity Generating Authority of Thailand (EGAT) has awarded its first spot tender to import LNG cargoes for delivery in December this year and in March next year, industry sources said.

It is also seeking government approval to import one more spot LNG cargo for next year, one of the sources said. South Korea’s SK Energy and POSCO were jointly seeking a cargo for delivery in the second half of December, industry sources said, although further details of the tender were not immediately available. Low spot prices also attracted some demand from India, with Indian Oil Corp seeking a cargo for delivery on Dec. 17, industry sources said. “The low prices may be creating some end-user demand in India which is attracting purchase interest in the international market,” a source familiar with the Indian market said.

Source: LNG Global/Reuters

show less

Talks on PNG LNG expansion at a standstill – govt

Talks with oil and gas giant Exxon Mobil over an expansion of their huge LNG (Liquefied Natural Gas) project in Papua New Guinea are at a standoff, with the company unwilling to negotiate

read more

on the country’s terms, says PNG’s petroleum minister. Kerenga Kua said the state’s negotiating team had set out draft terms for negotiations on developing the P’nyang gas field that were in line with international standards and would ensure a “fair deal” for PNG. It was disappointing that Exxon has refused to consider the terms and PNG urged them to reconsider their position. Reuters reports that the new delay to the P’nyang agreement will make it harder for Exxon and its partners Total SA, Oil Search and Santos Ltd to reach a final investment decision in 2020 on their plans to double LNG exports from the country. Exxon Mobil’s PNG spokesman said discussions with the PNG government were ongoing and an agreement was needed before decisions could be made on preliminary engineering and design for the expansion of its PNG LNG plant.

https://www.rnz.co.nz/international/pacific-news/404357/talks-on-png-lng-expansion-at-a-standstill-govt

show less

US signs the highest long-term LNG export contract volumes globally for 2019, says GlobalData

Abundant shale gas production in the US has enabled the country to export natural gas as liquefied natural gas (LNG) to global markets. This has supported the country in signing the highest volume of global long-term LNG export contracts in 2019,

read more

accounting for around a 67% share, according to GlobalData, a leading data and analytics company. The company’s report, ‘Global Long-Term LNG Contracts Review, 2019 – Golden Pass Signs High Volume Contract with Ocean LNG’, reveals that the US has signed five long-term contracts in 2019 for the export of 22.3  MMTPA of LNG. Of these, the contract signed between Golden Pass Products and Ocean LNG Limited had the highest export volumes with 15.6 MMTPA. LNG will be supplied from the Golden Pass II LNG liquefaction terminal in Texas for 20 years from 2024 to 2044. Sunrita Dutta, Oil and Gas Analyst at GlobalData, explains: “The other major long-term LNG contracts signed for export of LNG from the US include a contract signed between Driftwood LNG and Total Gas & Power North America for export of 2.5 MMTPA of LNG from 2023 to 2038. Magnolia LNG and NextDecade Corporation also signed contracts for export of 2 MMTPA of LNG each.” Mozambique signed the second highest long-term LNG contract volumes in 2019 with 9.7 MMTPA. Mozambique LNG 1 signed all the contracts for export of LNG with different purchaser companies. Dutta concludes: “Canada and Papua New Guinea account for the remaining long-term LNG contract volumes signed for 2019. Both countries have signed contracts for export of 0.8 MMTPA and 0.5MMTPA of LNG, respectively.”

https://www.hellenicshippingnews.com/us-signs-the-highest-long-term-lng-export-contract-volumes-globally-for-2019-says-globaldata/

show less

US LNG ramp-up supported by positive, though weak, netbacks

Feedgas deliveries to the six major US LNG export facilities were near a record Friday (Nov 15), even as warm weather was on the way to parts of Europe and

read more

Asian forward prices were at their lowest-ever December level, S&P Global Platts Analytics data show. Positive netbacks to the Gulf Coast from both regions, sub-$3/MMBtu domestic supplies and strong underlying global market fundamentals such as the increasing transition to gas to fuel power plants are key to the bet that American producers are making heading into the heart of the winter. The ramp-up in US activity comes as additional liquefaction capacity is expected to come online in the months ahead — at facilities in Texas, Louisiana and Georgia — and more than a dozen developers are proposing new projects to meet forecast demand in the early to mid-2020s. Four of those projects will be considered by US regulators for permit certificates at a meeting scheduled for November 21. Strong contango in the European and Asian gas/LNG forward markets has supported positive LNG netbacks to the US Gulf Coast through the end of this winter, Platts Analytics data shows. Weakness in early-winter Asian demand has led to a recent decline in Asian LNG netbacks, leaving Western European gas hubs trading at a solid netback premium to Northeast Asian LNG markets. At the close of trading Thursday, the USGC LNG netback from the Dutch Title Transfer index, or TTF, was estimated at around $1.15/MMBtu through the end of the winter, based on the current forward curve and Platts’ own forecast for shipping costs. The USGC LNG netback from the Platts JKM, the benchmark price for spot-traded LNG in Northeast Asia, is trading at just over 80 cents/MMBtu through February, based on the current ICE traded JKM derivatives, Platts Analytics data show. Warmer-than-normal weather in some parts of Europe and Asia have impacted those netbacks. As long as the netbacks to the Gulf Coast remain positive, they will incentivize US producers to keep utilization high. And Cheniere Energy, the biggest US exporter, is betting on new opportunities for US LNG abroad from the potential closure of nuclear capacity in Japan and plans for coal-fired power plant shut-ins in South Korea during the winter. Gas deliveries Friday to Cheniere’s Sabine Pass and Corpus Christi Liquefaction, Sempra Energy’s Cameron LNG, Freeport LNG, Dominion Energy’s Cove Point and Kinder Morgan’s Elba Liquefaction totaled about 7.6 Bcf/d, just short of the record of about 7.7 Bcf/d set November 2, Platts Analytics data shows. The bulk of those deliveries were to Cheniere’s two terminals, followed by Cove Point, which loaded its 100th commercial cargo November 11.

https://www.spglobal.com/platts/en/market-insights/podcasts/crude/111119-oil-market-balance

show less

Dominion Energy Cove Point LNG terminal loads 100th commercial ship

Dominion Energy’s Cove Point LNG Terminal loaded its 100th commercial liquefied natural gas (LNG) ship on Monday, November 11, nineteen months after the facility entered commercial service for natural gas liquefaction and export.

read more

Located in Lusby, Maryland, the Cove Point LNG Terminal became the second largest LNG export facility in the continental U.S. – and the first on the East Coast – when it entered commercial operation on April 9, 2018. Cove Point produces LNG under 20-year contracts for ST Cove Point, a joint venture of Sumitomo Corporation and Tokyo Gas, and for Gail Global (USA) LNG, the U.S. affiliate of GAIL (India) LTD. “This is a major milestone for Dominion Energy and our country as a whole,” said Paul Ruppert, Dominion Energy’s President of Gas Transmission and Storage. “It reflects not only the world-class design and operational excellence of our facility, but also the environmental progress we are making by reducing global reliance on coal, oil and other carbon-intensive energy sources,” Ruppert continued. The Cove Point facility is unique among U.S. LNG terminals for its operational flexibility and demonstrated ability to perform all the functions of an LNG facility, including import, export, vaporization and send out, and liquefaction. Since entering commercial service in April 2018, the facility has operated reliably in all weather conditions, including ambient temperatures ranging from 9°F to 105°F. To date, the facility has produced more than 4 billion gallons of LNG, with export ships reaching more than 20 countries across the globe. “The Cove Point facility showcases our company’s commitment to environmental stewardship,” Ruppert said. “The facility’s waste heat recovery and zero liquid discharge system are truly best in class and show how we can responsibly develop infrastructure while at the same time protecting our air and water,” Ruppert concluded. The Cove Point facility is located along the largest freshwater marsh, a rare ecosystem, on the western shore of the Chesapeake Bay. Following a severe Nor’easter storm in 2010 that damaged the unique marsh environment, the company has dedicated more than 50,000 manhours to restore the marsh and the barrier beach that protects it from brackish water.

https://www.hellenicshippingnews.com/dominion-energy-cove-point-lng-terminal-loads-100th-commercial-ship/

show less

BHP and Woodside edge closer to Scarborough decision

A final investment decision on the Scarborough gas field development is a step closer after joint venture partners Woodside and BHP announced a deal to process gas at Woodside’s Pluto LNG facility on Monday.

read more

The LNG giant and BHP, who has a 25% stake in the Scarborough field off WA’s Pilbara coast, have inked a non-binding agreement that would see BHP make a decision on the project by mid-2020. The project has been plagued with delays thanks to drawn out negotiations between the two companies. Under the agreement gas from the untapped Scarborough field will be processed at Woodside’s Pluto plant for an undisclosed toll price while BHP gives up its option to take an extra 10% of the project. Woodside chief executive Peter Coleman said the agreement was another step toward the realisation of its proposed Burrup Hub, an interconnected LNG network bringing together all of Woodside’s major assets. “This agreement on tolling price, together with the increase in Scarborough gas resources announced earlier this month, provides a compelling and aligned basis for BHP and Woodside to finalise the required conditional binding agreements by the end of the first quarter of 2020,” he said. “It is a key milestone as we target a go-ahead for the development of the high-quality Scarborough gas resource through an expanded Pluto LNG facility. The joint venture is now in a strong position to proceed to [final investment decision] in the first half of next year.” BHP Petroleum Australia country manager Graham Salmond said it remained committed to Scarborough, which was a project that could “compete for capital within its capital allocation process.” “We are pleased to align on a non-binding commercial heads of agreement with Woodside, which includes a competitive processing tariff that reflects BHP’s view on value and risk, and agreement to fully assess optimisation to process additional Scarborough gas through the North West Shelf,” he said. “We will continue to work closely with Woodside to ensure Scarborough delivers value for our shareholders, partners and the community.” First LNG from Scarborough is targeted in 2024. Woodside’s Burrup vision has been in the crosshairs of WA environmental groups who argue the seven individual environmental proposals lodged with state authorities obscured total greenhouse gas that would be emitted by the hub.

Source: LNG Global

show less

Gas ‘Witch’s Brew’ has U.S. exporters facing worst scenario

A global glut of natural gas has gotten so massive that U.S. exporters could soon face their worst-case scenario: Halting shipments to get supply and demand back in balance.

read more

Prices for the heating and power-plant fuel may collapse in Europe and Asia next year to levels that would force U.S. liquefied natural gas suppliers to curb output, Citigroup Inc. said in a note to clients last week. Morgan Stanley sees as much as 2.7 billion cubic feet a day of American exports curtailed around the second or third quarter, assuming normal weather. That’s about half the volume now being sent abroad. China’s demand for U.S. LNG has plunged amid the trade war, while Europe’s gas storage is almost full and tankers carrying the fuel are taking unusually long journeys in search of better prices. That’s created a “toxic witch’s brew” that’s making it harder to find a home for American exports, according to Madeline Jowdy, senior director of global gas and LNG for S&P Global Platts in New York. “It’s also a harbinger of bigger troubles ahead for U.S. exporters in the second quarter of next year, when global demand is at its weakest point and the U.S. will have even more volumes to place” as new export terminals start up, Jowdy said in an email. Capping LNG production is an extreme measure, but the idea is gaining traction as new terminals from the U.S. to Australia unleash exports faster than demand can catch up. Gas for near-term delivery in Asia has lost half its value in the past 14 months, with the Dutch benchmark nearly matching that decline. A mild winter would make the glut even worse — bad news for U.S. suppliers like Cheniere Energy Inc. and Sempra Energy. In the past three years, soaring gas output from shale basins has vaulted the U.S. into the ranks of the world’s largest LNG producers. The nation is widely seen as a so-called swing supplier because its exports can respond quickly to a volatile market. Curtailments can happen when customers such as trading houses, which resell the fuel to utilities and other end users, refuse to load cargoes because prices are too low to cover shipping costs and still make a profit. The cancellations can force exporters to cap, or “shut in,” LNG production as their storage tanks fill up. While customers of American LNG export terminals have to pay a fee to reserve the fuel under long-term contracts, they can opt out of buying with 30 to 60 days’ notice. That’s in contrast to traditional contracts from suppliers like Qatar and Australia, which require buyers to take or pay for a fixed amount whether they need it or not.

Singapore’s Pavilion Energy Pte said this month that it canceled the loading of an LNG cargo from the U.S., though Pavilion said the decision was based on logistics and didn’t directly attribute it to low gas prices. But additional shut-ins of American exports could follow, Michael Webber, managing partner of Webber Research & Advisory LLC, said in an email. With the exception of the Pavilion cargo, though, buyers of U.S. LNG have continued to load shipments. Traders will likely need to have a view of at least two months out to cancel, Peter Abdo, chief commercial officer for LNG and origination at Uniper Global Commodities SE, said at the Bloomberg Commodity Investor Forum in London this month. Uniper doesn’t plan to refuse cargoes, he said.

Source: LNG Global [Edited]

show less

Gunvor enters into strategic LNG Marketing & Gas Supply Agreement with Commonwealth LNG

Gunvor and Commonwealth LNG (8.4 MMTPA LNG export terminal near Cameron, USA) have entered into a Strategic LNG Marketing & Gas Supply Agreement in relation to

read more

Commonwealth’s LNG export project in Cameron Parish, Louisiana. Under the agreement, Gunvor will support Commonwealth in securing binding LNG offtake and gas supply agreements for the full capacity of the facility. In addition, Gunvor will commit to take up to 3 MMTPA of LNG offtake from the facility. “In this highly competitive market, it is critical for companies – particularly ones pursuing an LNG greenfield project – to recognize their core competencies and strengths,” said Kalpesh Patel, Gunvor Co-Head of LNG Trading. “Commonwealth LNG’s engineering and procurement team is best in class. And, now, with the comprehensive support of Gunvor’s LNG and US Gas marketing team, Commonwealth LNG will excel not only at controlling costs and project execution, but also at commercializing their project and creating the lowest cost offering on the US Gulf Coast. “We are very pleased to announce this strategic partnership with Gunvor, the most active LNG trader in the world,” said Paul Varello, Commonwealth’s President and CEO. “We believe Gunvor’s substantial capabilities in LNG marketing and overall market presence, coupled with Commonwealth’s strengths in engineering, construction and project execution create a dynamic combination that ultimately differentiates Commonwealth from every other US LNG project currently chasing FID.” Commonwealth LNG expects to take a final investment decision in Q1 of 2021 and deliver its first shipments of LNG in Q2 of 2024.

https://newyork.citybizlist.com/article/584493/gunvor-enters-into-strategic-lng-marketing-gas-supply-agreement-with-commonwealth-lng

show less

China Oct LNG imports fall 12% on year to 4 million tonnes

China’s imports of LNG fell 11.5% year on year to 4.04 MMT in October, and were down 20.7% month on month, S&P Global Platts calculations based on latest data

read more

from the General Administration of Customs showed Tuesday (Nov 26). Market sources attributed the decline to a domestic economic slowdown, a long shutdown at PetroChina’s Rudong LNG terminal, the relaxation of China’s coal-to-gas switching policies and stricter emission restrictions and lower industrial activity during the country’s 70th National Day holiday in early October. The import cost for October LNG arrivals averaged $464/mt, down 13.6% on year but up 1.3% on month, Platts calculations based on the customs data said. Over January-October, China imported 47.43 MMT of LNG, up 14.2% on year, the customs data showed. Australia remained the top LNG supplier to China in October at 2.1 MMT, down 7.4% on year and down 0.7% on month, the data showed. Over January-October, imports from Australia totaled 22.8 MMT, up 24.2% on year. Russia overtook Malaysia to become the second largest LNG supplier to China in October at 424,605 MT, up 563.5% on year, but edging down 0.2% on month, the data showed. LNG imports from Malaysia totaled 320,491 MT, down 35.2% on year and down 53.7% on month.

Pipeline gas imports down 8% on year

China imported 2.48 MMT of natural gas via pipeline in October, down 8.1% from a year earlier and down 20.3% on month, the customs data showed. The government sets the guidance price for city-gate gas prices, which is typically lower than the import cost, and market sources said importers were striving to reduce contract volumes as a result. China’s pipeline natural gas imports from main supplier Turkmenistan fell 9.4% on year 1.56 MMT in October and were down 23.2% on month. Over January-October, China received 20.19 MMT of natural gas via pipeline from Turkmenistan, down 3.7% on year, the data showed. Pipeline natural gas imports from Kazakhstan totaled 340,771 MT in October, down 15.8% on year and down 19% on month. China imported 30.31 MMT of natural gas via pipeline over January-October, edging down 0.6% on year, the data showed.

Consumption Slowdown

China imported a total 6.52 MMT of natural gas via ship and pipeline in October, down 10.2% on year, and the first year-on-year decline in two years, the data showed. October is typically a higher demand month due to gas storage restocking and firm baseload industrial and city gas demand, but this has not been the case this year due to weak industrial activity and the lack of demand to refill inventories, according to S&P Global Platts Asia LNG analytics manager Jeff Moore. “The situation could turn back around with the startup of heating demand in northern China. Even so, Platts Analytics expects Chinese LNG imports to grow less than 5 BCM this winter compared to last winter,” Moore said. Over the first 10 months of the year, China imported a total 77.75 MMT of natural gas via ship and pipeline, up 7.9% on year. The country’s natural gas demand growth has slowed this year due mainly to softer economic growth and coal-to-gas switching policies, but the government’s target of reducing air pollution and moving to cleaner burning fuels was expected to continue to drive the country’s gas consumption in the longer term.

https://www.hellenicshippingnews.com/china-oct-lng-imports-fall-12-on-year-to-4-mil-mt/

show less

 

Natural Gas / LNG Utilization

Europe’s largest LNG refueling station was completed in Germany

Chart Industries, Inc. has completed the installation and commissioning of Europe’s largest LNG fueling station for AlternOil GmbH.  AlternOil will operate the fueling station, which is located on

read more

Germany’s main A1 highway near the city of Bakum, following final approval by local authorities expected in early December 2019. Chart’s proprietary “Saturation on the Fly” (SoF) technology eliminates methane emissions to atmosphere and recognizes both spark ignited and compression engines which allows the station to fuel all LNG and bio-LNG trucks regardless of original equipment manufacturer or brand.  SoF also improves the station’s overall energy management and provides a total refueling time consistent with equivalent diesel engine vehicles. “We continue to contribute to the development of the global LNG infrastructure ranging from liquefaction to marine to transportation,” stated Jill Evanko, Chart’s CEO. “AlternOil continues to offer maximum operator convenience through flexible, full-service truck centers that incorporate full integration of Chart equipment with other aspects of the station, including AlternOil’s cashless payment system.” AlternOil is planning further LNG filling stations in their intended German network, including in Fulda, Cologne, Hamburg, Bremen and Remscheid.

https://www.ngvjournal.com/s1-news/c4-stations/europes-largest-lng-refueling-station-was-completed-in-germany/

show less

Encinitas considers ban on natural gas in new homes, businesses to fight climate change

The Encinitas Environmental Commission in California is considering a proposal to ban natural gas hookups in all new construction projects as a way to combat climate change. The plan , which will be heard by

read more

the commission again next month, was authored by environmental commissioner Jim Wang. Wang spearheaded the city’s bans on plastic bags and polystyrene containers, commonly known as styrofoam. “The problem is that methane is a much more potent global warming gas than CO2, it’s approximately 85 times as potent,” he said. “Even a small amount of natural gas causes a big problem with global warming.” Wang’s proposal would impact both residential and commercial construction, but would not affect existing buildings. In July, Berkley passed a ban on natural gas infrastructure in new construction that will take effect next year. Twenty other California cities are considering similar bans, Wang said. “I’ve never seen a restaurant run on electric stove-tops. It would be quite the challenge,” said Daniel England, the corporate chef behind Union Kitchen and Tap in Encinitas and other restaurants. England said he would not consider renting a building for a restaurant if it lacked natural gas. “As a chef, it’s something we’ve been trained on from day one from culinary school. I couldn’t imagine cooking without natural gas. I’ve tried to cook on an electric stove at home and you don’t get the same consistency,” he said. Michael McSweeney of the Building Industry Association of San Diego County said the cost of electricity is typically about three times more than natural gas, so the cost of home ownership in Encinitas would rise. “It seems that they want to reduce their carbon footprint, which is great, but the biggest source of greenhouse gas emissions in Encinitas is automobile transportation,” he said. “Cutting down on car transportation, they’d get more bang for their buck.” In addition to cutting greenhouse gas emissions, restrictions on natural gas could provide safety and health benefits, Wang argued, citing the 2010 San Bruno pipeline explosion that killed 8 people. Homes that cook with natural gas at least once per week have air quality that would be illegal outdoors, he said, with levels of nitrogen dioxide and formaldehyde that exceed outdoor federal air quality standards. The Environmental Commission will consider the proposal at its Dec. 12 meeting at 5:30 pm. If the commission approves it, the plan will move to the city council for consideration.

https://www.10news.com/news/encinitas-considers-ban-on-natural-gas-in-new-homes-businesses-to-fight-climate-change

show less

FPT Industrial unveils N67 Natural Gas engine for agriculture segment

As part of its continuous commitment to sustainable powertrain solutions, FPT Industrial, a leading manufacturer and seller of powertrains for industrial vehicles: On-Road, Off-Road, Marine and Power Generation,

read more

presents the N67 Natural Gas (NG) engine specifically developed for off-road applications. With this launch, the brand leverages its vast experience in natural gas engines to lead the introduction of this technology in agricultural and construction machinery. As a matter of fact, thanks to the launch of the F28 Natural Gas, FPT is the first manufacturer to have a series of low and mid-range natural gas engines for agriculture. With a displacement of 6.7 liters and a six cylinder in-line configuration, the new N67 NG engine offers diesel-like performance in agricultural applications, delivering power of 180 kW at 1,800 rpm and torque of 1,035 Nm at 1,500 rpm. Compatible with CNG, LNG and biomethane, the N67 NG has 10% lower CO2 emissions than diesel engines in real field conditions. When running on biomethane, this can reach virtually zero or even become negative, contributing to a new circular economy free from waste and fuel costs, that can lead to completely efficient and productive agriculture. The N67 NG engine has a robust off-road-oriented design, with high performance materials and structural configuration for fitting on tractors, ensuring durability and reliability. Stoichiometric combustion and multipoint gas injection ensure stable and clean combustion for high efficiency and low emissions. Finally, it also reduces running costs in comparison to diesel, service interval of 600 hours and a maintenance-free 3-way catalyst as its after-treatment system to comply with the latest emissions standards.

https://www.ngvjournal.com/s1-news/c5-products/fpt-industrial-unveils-new-n67-natural-gas-engine-for-agriculture-segment/

show less

NGC/CNG president: More people motivated to buy CNG vehicles in Trinidad Tobago

There has been rapid growth in the pur­chas­ing of and con­ver­sion to Com­pressed Nat­ur­al Gas (CNG) ve­hi­cles. This is ac­cord­ing to NGC/CNG Company pres­i­dent Cur­tis Mo­hammed. In an in­ter­view with Guardian Me­dia Ltd (GML),

read more

Mo­hammed said, “About three years ago, 30 cars were be­ing con­vert­ed. Right now close to 200 cars are be­ing con­vert­ed per month.” He added: “That’s not count­ing the 50 or 60 cars that are be­ing pur­chased as brand new cars and trucks and ve­hi­cles and bus­es in T&T.” Mo­hammed ex­plained that CNG was al­ways in the coun­try but in or­der for peo­ple to val­ue the prod­uct, the pric­ing of fu­el “need­ed to get re­al.” Mo­hammed al­so spoke of the launch of NGC/ CNG’s pi­lot project in col­lab­o­ra­tion with Wi­Pay. He said: “At some point in time, while we were do­ing the CNG pro­gramme, we recog­nised there was a need to have cash­less pay­ments plat­forms. Why?” Mo­hammed not­ed that many small trans­ac­tions would oc­cur over a one day pe­ri­od with the pur­chase of CNG fu­el. He said if this con­tin­ued it meant that sta­tions would col­lect a lot of small trans­ac­tions over the night. He ar­gued that “it doesn’t make sense to be swip­ing your Visa card or your Linx card” for $5 of $15 dol­lar trans­ac­tions. Sta­tion op­er­a­tors, said Mo­hammed, want­ed an easy way to op­er­ate this trans­ac­tion. Mo­hammed ex­pressed that “right now we are test­ing and so far it is go­ing very well.” The pi­lot project said Mo­hammed is go­ing for about two months gen­er­al­ly so by Jan­u­ary, a de­ci­sion would be made. Mo­hammed said: “If it works well, then we’d roll it out to all the oth­er sta­tions. It’s re­al­ly not that hard to roll out.” Al­so speak­ing to GML was Ald­wyn Wayne, who said that the pi­lot project al­lows a user of CNG NGC to load mon­ey in­to a re­load­able ac­count at the be­gin­ning of the month or week to tap and pay for gas. He said that this is “so they have to walk around with small change like $5 and $20 to top up a gas tank.

https://www.guardian.co.tt/business/ngc-president-more-people-motivated-to-buy-cng-vehicles-6.2.987211.8b86ee4828

show less

Gasoline rationing pulls up CNG consumption by 10% in Iran

Consumption of compressed natural gas (CNG) in Iran has increased by 10 percent since the implementation of the gasoline rationing scheme,

read more

Head of the CNG promotion program at National Iranian Oil Product Distribution Company (NIOPDC) announced. “CNG consumption in the country has risen by two million cubic meters per day since the [implementation of] the gasoline rationing plan,” IRNA quoted Hassan Qolipour as saying on Saturday. Speaking in a press conference, Gholipour put the average consumption of CNG in the past month, before the gasoline rationing, at 19.3 million cubic meters per day (mcm/d), and said the figure has now risen to about 22 mcm/d, indicating a two-mcm/d growth. He further noted that there are currently 2,400 CNG stations across the country, adding that more than 2,478 compressors are installed in the country’s CNG stations. The Iranian government raised gasoline prices on November 15 in order to moderate the national consumption rate.

https://en.mehrnews.com/news/152640/Gasoline-rationing-pulls-up-CNG-consumption-by-10-in-Iran

show less

GO TOP

LNG as a Marine Fuel/Shipping

SEA\LNG expands breadth of membership with equipment provider, Chart Industries

SEA\LNG, the multi-sector industry coalition accelerating the widespread adoption of liquified natural gas announced today that Chart Industries has joined the membership.

read more

Peter Keller, SEA\LNG chairman, commented: “We are thrilled to welcome another member from North America. Chart is a highly respected equipment and solution provider working across the LNG value chain and we look forward to working together with a company that is at the heart of the energy revolution.” Chart is a key equipment and systems provider to applications that utilise clean burning, economical natural gas. The liquefaction technology that is used includes specialised heat exchangers, cryogenic storage and delivery expertise to support global LNG infrastructure, including small-scale LNG for transportation, marine and power generation. Chart continues to help the marine sector meet the challenge of IMO 2020, building its first bunkering station in 2003 and more recently completing terminals in Klaipeda and Jacksonville, Florida. Their fuel systems are onboard multiple LNG powered vessels, including the Francisco high speed ferry and various fleets of barges. Jill Evanko, President and Chief Executive Officer at Chart said: “Chart LNG systems not only offer innovative solutions for marine applications, they provide green energy to ships during port layovers, improving air quality in the local area. As members of SEA\LNG, we expect to further enhance LNG as a commercially viable and environmentally sound marine fuel for 2020 and beyond, while contributing to a cleaner future for the communities in which our equipment and solutions are used.” SEA\LNG continues to bring together key players in the marine value chain, including shipping companies, classification societies, ports, major LNG suppliers, LNG bunkering companies, infrastructure providers and OEMs (original equipment manufacturers), to advance cooperation and communication on key areas. The recent appointment of Chart will bring the coalition a stronger perspective on infrastructure and emissions. Through collaboration with its members, independent consultants and academic experts, SEA\LNG has produced verified studies detailing the significant economic and environmental benefits of LNG as a marine fuel, including the definitive Life Cycle GHG Emissions Study on the Use of LNG as Marine Fuel, commissioned in partnership with the Society for Gas as a Marine Fuel (SGMF) and conducted by independent consultancy thinkstep. The final study concluded that LNG provides carbon emissions reductions of up to 21% compared to current oil-based marine fuels across the entire life cycle from Well-to-Wake (WtW). Further, SEA\LNG’s study comparing nine alternative fuels, undertaken by leading classification society DNV GL, reinforced the fact that LNG is the most mature, scalable, and commercially viable alternative fuel currently available for the maritime industry. Since launching in July 2016, SEA\LNG’s membership has grown from 13 to 39 members. This reflects the industry’s growing recognition of LNG as the only safe, scalable, cost effective and pragmatic pathway to a zero-emissions shipping industry.

https://www.hellenicshippingnews.com/sealng-expands-breadth-of-membership-with-equipment-provider-chart-industries/

show less

Gasum expands maritime fuel supply          

Gasum, the leading Nordic supplier of small scale liquified natural gas (LNG), announced that they have agreed with Swedegas to use Swedegas’ facility for liquefied gas for bunkering of LNG fueled vessels.

read more

Swedegas’ gas infrastructure at the jetty of the Energy Port in Gothenburg enables Gasum to broaden their services to meet the increasing LNG demand in the maritime sector. This demand comes from stricter climate and environmental goals in the maritime sector. On 24 October the first bunkering took place of the oil and chemical tanker Tern Ocean. Tern Ocean is chartered by Preem and she loaded her cargo simultaneously from Preem’s refinery in Gothenburg. “For years we have bunkered LNG at the quayside from diversified delivery points in the Nordics”, explains Jacob Granqvist, sales director in Gasum. “The benefit of the Swedegas set-up is that our customers can solve two issues at the same time, both getting fuel and handle cargo. Increased operational efficiency is important in the maritime sector and we are happy to make it possible.” The agreement with Swedegas falls into the company’s plans to expand its maritime LNG services. From the jetties 519 and 521 in the Gothenburg harbor Swedegas offers their customers the opportunity to bunker LNG and liquefied biogas (LBG) at the same time as the vessels load and discharge their cargo. The LNG facility allows to be used for the storage and transport of biogas. This means that vessels can bunker not only LNG but also LBG. LBG is renewable and can as well be used as vessel fuel. “We are very happy contributing to building the maritime gas infrastructure in Northern Europe. Entering into an agreement with gas suppliers like Gasum may also contribute to the end-customers possibility to purchase LNG or LBG at comparable prices”, explains Peter Blomberg, Team leader Business development and Innovation at Swedegas. LNG consumption within the global maritime sector is rising. Consumption is expected to accelerate even more rapidly, as compliance with the IMO 2020 Sulphur regulation (IMO – International Maritime Organization), which requires over 85% reduction in Sulphur emissions, comes into effect next year. IMO has also set a target to reduce GHG emissions by at least 50% by 2050. These environmental regulations make LNG a very attractive alternative for compliance.

https://seanews.co.uk/shipping/gasum-expands-maritime-fuel-supply/

show less

Daewoo shipyard delivers first LNG carrier installed with air lubrication system

Daewoo Shipbuilding & Marine Engineering (DSME), a major shipbuilder in South Korea, has delivered a liquefied natural gas (LNG) carrier for a Greek client. It was the first LNG carrier which has been installed

read more

with the shipbuilder’s air lubrication system that enables energy-saving and emission reduction. DSME said that compared to existing LNG carriers, the new vessel installed with its air lubrication system (ALS) can save fuel by more than five percent. The delivery followed an order the shipbuilder received in June 2016 from Maran Gas Maritime, a unit of Angelicoussis Shipping Group. ALS works on the simple principle of trapping a layer of air bubbles beneath the ship’s hull. Air bubble outlets are created at different locations along the bottom of the hull. The air is blown at a constant rate to form a uniform layer of bubbles, which reduces the drag and resistance between the ship and the seawater. Maran Gas confirmed fuel savings in a test drive in October and wanted DSME to apply ALS to a next vessel, the shipbuilder said, adding it would expand the use of its ALS technology to super-large container ships, LPG carriers and medium oil tankers. With rising fuel prices and increasing pressure to make ships greener, shipping companies are now implementing promising technologies that can reduce the levels of toxic Sulphur oxides (SOx) emitted by ships and save fuel at the same time. Under new rules imposed by International Maritime Organization (IMO), a U.N. maritime safety agency, the amount of sulfur emanating from ships should be reduced from 3.5 percent to 0.5 percent from January 1, 2020. Conventional heavy fuel oil contains 3.5 percent sulfur, meaning ship owners must either buy expensive low sulfur fuel or install an exhaust gas cleaning system such as SOx scrubbers. The scrubber technology passes the dirty exhaust gas stream created by the engine through chambers that contain a carefully generated “scrubbing cloud” of water. But scrubbers and selective catalytic reduction (SCR) units increase the cost of both building and operating ships, prompting ship owners to find alternative fuels such as LNG.

https://www.hellenicshippingnews.com/daewoo-shipyard-delivers-first-lng-carrier-installed-with-air-lubrication-system/

show less

Gunvor to charter Flex LNG new-build

Commodity trader Gunvor Group will charter a liquefied natural gas (LNG) carrier from shipping firm Flex LNG for up to 10 years, the two companies said on Monday (Nov 25).

read more

Geneva-based Gunvor, which has said it wants to take a lead in energy transition by investing in cleaner natural gas, last year became the biggest trader in the burgeoning LNG market. The initial contract is for five years, with options to extend to 10, the firms said. The vessel, with capacity to transport 173,400 cubic meters of LNG, is under construction at Korean yard Daewoo Shipbuilding & Marine Engineering. “We look forward to taking delivery of one of the most technologically advanced LNG vessels in the world to serve our long term portfolio,” Gunvor co-head of LNG Kalpesh Patel said in a statement. The vessel, to be called Flex Artemis, is scheduled for delivery in August of next year. The terms of the time charter contract were not revealed, except to say that it will partly be based on a variable rate. “We are very pleased to enter into this long-term charter with a top-tier customer like Gunvor,” Flex LNG Management CEO Oeystein Kalleklev said.

https://www.maritimeprofessional.com/news/gunvor-charter-flex-newbuild-353190

show less

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

First LNG-fueled freight locomotive under construction in the Baltics

Operail, an international logistics and transportation company, has entered into a cooperation agreement with the Latvian company DiGas to develop the first cargo-carrying LNG-powered freight locomotive in the region.

read more

The gas technology has been previously tested and used on shunting locomotives. Adding the LNG system to freight locomotives is a landmark event in Baltic railway transportation and the railway sector in general. On average, an LNG locomotive uses 30% less fuel and emits 20% less CO2 and 70% less SOx. “We will invest a quarter million euros and begin the construction of a pilot locomotive so that after the testing period, we could implement the same technology on all of our freight locomotives,” added Toomsalu regarding Operail’s plans. “The production costs of the first locomotive are higher, but after that, the addition of LNG tanks and systems will be much more affordable. We also call upon other transportation and logistics companies to also look for more sustainable solutions.” The reconstruction process of the American General Electric C36 locomotive involves dividing the 17,000-liter fuel tank in two – half for diesel fuel and half for LNG – and the addition of new systems. The information systems of an LNG locomotive store all information regarding fuel consumption, and data analysis will allow further savings. The first LNG locomotive should be completed next spring and tested in summer 2020. After obtaining the required approvals from Eesti Raudtee and the Consumer Protection and Technical Regulatory Authority, the locomotive is planned to start operating in freight transportation in late 2020.

https://www.ngvjournal.com/s1-news/c7-lng-h2-blends/first-lng-powered-freight-locomotive-under-construction-in-the-baltics/

show less

UK: 20 NGVs save 1,400 tons of CO2 emissions in two-year trial

In a two-year trial, the Dedicated to Gas project deployed 20 Euro VI vehicles running on biomethane, as a combination of CNG and LNG trucks to the three fleet operators.

read more

It was funded in part by the Office for Low Emission Vehicles and Innovate UK’s Low Emission Freight & Logistics Trial (LEFT) and delivered in partnership with Cenex, Air Liquide, Emissions Analytics, Microlise, Asda, Howard Tenens and Kuehne + Nagel. The trial vehicles traveled over 2.2 million kilometers saving over 1,400 tons of well-to-wheel (WTW) CO2 emissions compared to diesel; the same distance as 56 times around the globe and equivalent to the CO2 saved in the lifetime of 3,150 trees, which would occupy a forest equivalent to the area of 18 football pitches. The project results show that, when compared to diesel, vehicles would make at least 17% greenhouse gas (GHG) emission savings with a 25% biomethane blend (B25), while 100% biomethane (B100) yields savings of at least 76%. This is the first UK study to assess the performance of in-service and tested vehicles which are all Euro VI factory-fitted OEM natural gas vehicles. The trial drivers from the project fleets reported that natural gas vehicles perform better than diesel comparators in engine noise, vibration, overall drive comfort, engine braking and environmental performance. Moreover, due to the fuel cost savings, NGVs can pay back from year two of the total cost ownership at 160,000 km/year. Heavy goods vehicles account for around 17% of UK GHG emissions from road transport. NGVs fueled by biomethane can offer a strong contribution to the UK’s 2050 net zero carbon target using technology which is proven, reliable, mature and cost effective. Daniel Lambert, commercial director downstream at Air Liquide UK, also commented: “Biomethane is a completely renewable fuel that is produced from biomass (organic waste) and can replace natural gas from fossil origin. Air Liquide is a committed stakeholder across the full span of the biomethane value chain for sustainable transportation – from purification to production and to the final client – and our work on the Low Emission Freight & Logistics Trial and publication of this report is a part of that process.”  

https://www.ngvjournal.com/s1-news/c3-vehicles/uk-project-saves-1400-tons-of-co2-emissions-with-20-ngvs-in-two-year-trial/[Edited]

show less

Punjab looks to biomass power plants to tackle stubble problem

The 10 operational plants have an aggregate capacity 72 mega watt (MW) and use 5.50 lakh tonnes of paddy straw, which is around 2.75% of the total paddy stubble produced in Punjab annually.

read more

Struggling to curb the menace of stubble burning, Punjab is now looking towards biomass energy plants to utilise tonnes of paddy straw to produce power in the state. Experts believe that biomass power generation will not only solve the problem of stubble burning, but will also help check pollution by thermal power plants. Currently, there are 10 biomass plants in the state, with four more under construction. The 10 operational plants have an aggregate capacity 72 mega watt (MW) and use 5.50 lakh tonnes of paddy straw, which is around 2.75 per cent of the total paddy stubble produced in Punjab annually. All these plants run under Punjab Energy Development Agency (PEDA). PEDA officials said that if the state wants to utilise all its stubble it must set up several such plants with an aggregate capacity of around couple of thousand mega watts. Punjab produces around 20 million tonnes paddy stubble, which is not popular as cattle fodder because of huge availability of wheat stubble (18 millions tonnes) from around 35 lakh hectares under wheat cultivation. So, around 70 per cent of paddy stubble ends up being burnt in the fields.  “Biomass power projects are environment friendly due to relatively lower CO2 and particulate emissions and they replace fossil fuels such as coal,” said a senior officer in PEDA, adding that because of huge availability of stubble locally it is quite a cheaper option for a state like Punjab. PEDA general manager M P Singh said: “We have been promoting setting up of more biomass plants as 72 MW plants are already operational and four plants with nearly 45 MW plants are under construction along with Bio-CNG plant at Sangrur.” He added: “If we utilise entire stubble produced in the state, it can produce about 1000 MW of electricity and the government is pushing it a lot. PEDA is helping sell power produced in these plants.” “We are ready to purchase as much green power as possible. Already, we have been buying solar power from PEDA commissioned solar power plants ,” said a senior PSPCL officer adding that Punjab with an annual power generation capacity of 13,900 MW is a power surplus state, but now government should shift its focus and replace thermal power generation with green power generation. Setting up a 5 MW biomass power plant costs Rs 30 crore. “Like the power purchase agreements (PPAs) with several private thermal plants, we need PPAs with biomass plants as this power is much cheaper than that being purchased from private thermal units in Punjab,” said a senior officer in Punjab State Power Corporation Limited.

https://indianexpress.com/article/india/punjab-looks-to-biomass-power-plants-to-tackle-stubble-problem-6135111/

show less

 

 

GO TOP

PAGES  |1| 2 | 3| 4| 5 | 6 | 7 |8 |9

Share Button