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

National News Internatonal News

NATIONAL NEWS

 

City Gas Distribution & Auto LPG

Chandigarh push for green mobility in tricity

In order to promote green mobility, as many as 1000 CNG (compressed natural gas) auto rickshaws each from Chandigarh, Punjab and Haryana will ply in the tricity area under a reciprocal agreement.

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The decision was taken at the meeting of Transport Secretaries of Chandigarh Administration, State Governments of Punjab and Haryana held under ManojParida, Advisor to UT Administrator on Tuesday (Feb 11).During the meeting, the UT Administration pushed for plying of green vehicles in the tricity area including Chandigarh, Panchkula (Haryana) and Mohali (Punjab).Initially, a proposal to mutually allow additional 500 CNG autos for entry in Chandigarh from Punjab was agreed in principal. The issue was raised as the Administration demanded ban on diesel autos in the tricity area.The three stakeholders decided that the data of all these CNG autos will be shared by the three authorities amongst themselves for Police Checking.The Administration also requested Haryana Government to open more CNG pumps in Panchkula to reduce the crowd of autos at CNG pumps of Chandigarh.At present, Haryana-registered auto rickshaws are not allowed to enter Chandigarh for ferrying passengers. And, around 500 auto rickshaws registered with Registration and Licensing Authority (RLA) in Mohali, are allowed to enter Chandigarh.At the meeting, Haryana Government has agreed in principle to allow exemption of payment on state road tax to buses of Chandigarh Transport Undertaking.Punjab Government also agreed to the proposal of UT Administration regarding permitting the school buses from Chandigarh to the entire district of Mohali, instead of only Mohali city limits.The meeting was attended by UT Adviser ManojParida, UT Transport Secretary AK Singla, Punjab Principal Secretary Transport Umashanker,  Haryana Additional Secretary Transport, Virender Singh, SSP Traffic ShashankAnand.

https://www.dailypioneer.com/2020/state-editions/chandigarh-push-for-green-mobility-in-tricity.html

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Government identifies 44 new areas for city gas distribution auctions

Under the ninth and 10th rounds of bidding for CGD networks, the numbers of CNG stations and domestic piped natural gas (PNG) connections are expected to increase by 8,181 and 4.2 crore,

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respectively, in the next 8-10 years.The Petroleum and Natural Gas Regulatory Board (PNGRB) has proposed 44 new geographical areas for the upcoming 11th round of bidding for city gas distribution (CGD). According to the new tentative list, the highest number of CGD areas will fall in Tamil Nadu (eight), to be followed by Maharashtra (seven) and Madhya Pradesh (six). At present, the CGD network covers 232 geographical areas spread over 407 districts in 27 states.Under the ninth and 10th rounds of bidding for CGD networks, the numbers of CNG stations and domestic piped natural gas (PNG) connections are expected to increase by 8,181 and 4.2 crore, respectively, in the next 8-10 years. The present share of gas in the energy basket of the country is 6.2%, and the target is to take it to 15% by 2030.As of September 2019, there were 1,815 CNG stations and 54.2 lakh domestic connections across the country. Currently, about 76% of the compressed natural gas (CNG) stations and 80-90% of the PNG connections are concentrated in Delhi, Gujarat and Maharashtra.The Ministry of Petroleum and Natural Gas has prepared a draft policy for CGD, which, the government expects, will become a template for every state to come up with their own CGD policies. CGD network operators are seen to benefit from a sustained weakness in global spot LNG prices and an expected decline in domestic gas prices.Kotak Institutional Equities expects domestic gas prices to decline by around $1/MMBtu in the upcoming revision for the first half of FY21. Apart from state-run GAIL Gas, Gujarat Gas, IGL, MGL, Indian Oil, Hindustan Petroleum and private entities such as Adani Gas and Torrent Gas have significant presence in the sector.

https://www.financialexpress.com/economy/govt-identifies-44-new-areas-for-city-gas-distribution-auctions/1857915/

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Coming soon, 40 new CNG stations in Bengaluru city

Forty new Compressed Natural Gas (CNG) stations will be set up soon in Bengaluru city and its outskirts. This will add to the 16 CNG stations already operationalised in the city by GAIL Gas.

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The new stations will come up in locations across the city including ITI-Dooravani Nagar, Banashankari, Thanisandra, Yelahanka, Hennur, Old Madras Road, Dasarahalli, Immadihalli, Budigere, Samedhanahalli, Nayandahalli, Rammurthy Nagar, Jalahalli, Mahadevapura and Harapanahalli. Among locations on the city’s outskirts, Bagalur, Nelamangala, Doddaballapur, Devenahalli, KIADB Soware Park, Kengeri, Avalahalli, Dommasandra, Arshinkunte, Heggodanahalli, Bommasandra (NH44), Chikkabidarakallu, Tavarekere, Hoskote, Bommasandra and Attibele will also get the CNG facilities. The city already has CNG stations in Agara, Sarjapur Road, Vidyaranyapura, Tata Nagar, Airport Road, Hardware Park, Rajankunte, Peenya, Laggare, Sunkadakatte, Magadi Road University. To set up such stations in JP Nagar, Jayanagar, BTM Layout, Koramangala and Malleswaram areas, GAIL Gas is in discussion with private landowners. The facilities will be in place by October 2020, says a top GAIL oicial. Road-digging by multiple agencies had created gas leak scares in the city. To avoid such mishaps in the future, GAIL has urged the civic agencies to contact their control rooms before any excavation in the vicinity of the pipeline. Safety concerns Safety markers are now standard practice for pipeline-laying with directions to dial before digging. “The gas pipelines are laid one metre below the earth surface to avoid damage in the minimum digging conditions, ” the company maintains.

https://www.deccanherald.com/city/bengaluru-infrastructure/coming-soon-40-new-cng-stations-in-city-801911.html

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Maharashtra Natural Gas Ltd to provide CNG for 200 city buses by March-end in Nashik

MNGL on Friday (Jan 31) said that they will provide compressed natural gas (CNG) for 200 city buses by March-end.According to MNGL officials, CNG stations will be operational at six locations in the city.

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These locations have been leased out by the Nashik Municipal Corporation (NMC).MNGL’s promises came during a joint meeting of officials from MNGL and NMC. Mayor SatishKulkarni and NMC’s standing committee chairman UddhavNimse were present during the meeting.“We are launching city bus service from April 1 with 200 CNG and 50 diesel buses that will be deployed in phases. MNGL will lay 103km pipeline from Mhaskal-Titwala and has agreed to make CNG available through tankers by March-end,” said Nimse.Initially, MNGL will transport liquefied natural gas (LNG) through tankers to the city and then convert it to CNG. LNG will be transported by roadways from the nearest import storage location (Dahej) and will be stored in containers in Nashik.Once the feeder pipeline between Mahaskal-Titwala and Nashik is laid, the LNG station would be decommissioned since natural gas would be transported from the transmission pipelines through the feeder pipelines.NMC plans to operate 400 buses through private agencies. Of these 400 buses, 200 will be CNG-operated, 150 will be electric and 50 will run on diesel.The bus service will be operated on GCC (gross cutting contract) for a period of 10 years. This includes purchasing new buses, maintenance, employing drivers, fuel expenses, among others. The private agencies will be paid on kilometre basis.The municipal corporation has already finalised three agencies to operate all 400 buses in the city.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/maharashtra-natural-gas-ltd-to-provide-cng-for-200-city-buses-by-march-end/73826228

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IGL Q3 net rises 43%

Indraprastha Gas Ltd, the firm that supplies CNG to automobiles and piped cooking gas to household kitchens in national capital and adjoining towns, on Thursday reported a 43 per cent jump in

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its third quarter net profit on rise in gas sales volumes. Standalone net profit in October-December 2019 at Rs 283.59 crore was 43 per cent than net profit of Rs 197.94 crore a year back, the company said in a statement here. Gross turnover rose 10 per cent to Rs 1,831.16 crore. “IGL registered an overall sales volume growth of 13 per cent over the corresponding quarter in the last fiscal, with the average daily sale going up from 5.91 million standard cubic meters per day (mmscmd) to 6.70 mmscmd,” it said. CNG recorded sales volume growth of 9 per cent, while piped natural gas recorded sales volume growth of 18 per cent in the quarter as compared to last year. IGL sells compressed natural gas (CNG) to over 11 lakh vehicles running in the national capital region through a network of over 520 CNG stations. It also supplies piped natural gas to over 12 lakh households in these cities. The pipeline network is being further expanded by IGL to cover Ajmer, Pali and Rajsamand in Rajasthan, Shamli, parts of Meerut, Fatehpur, Hamirpur and parts of Kanpur in Uttar Pradesh and Kaithal in Haryana, IGL said.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/igl-q3-net-rises-43/73996975

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Adani Gas Q3 net more than doubles to Rs 114 crore

Adani Gas on Wednesday (Feb 5) said its net profit for the December quarter more than doubled year-on-year (y-o-y) to Rs 114 crore on account of higher demand for CNG and piped natural gas (PNG).

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The overall sales volumes grew 12% y-o-y during the quarter. PNG sales volumes were up 16% on year and CNG volumes were up 7% on year. Suresh P Manglani, chief executive officer of Adani Gas, told FE that the demand was driven by new retail outlets, piped natural gas connections to homes, and commercial and industrial connections during the December quarter.“We have added 2 new geographical areas in Surendranagar and Kheda, in additon to Palwal and Porbandar geographical areas we received in the 9th round of auctions by PNGRB,” Manglani said.The earnings before interest, taxes, depreciation and amortisation (Ebitda) for the December quarter rose 46% y-o-y to Rs 156 crore, as revenue from operations was up 7% y-o-y to Rs 519 crore. Operating margins were higher by 800 basis points y-o-y to 30% on higher realisations and lower expenses during the quarter. Total expenses in the third quarter fell 5% y-o-y to Rs 385.5 crore as cost of fuel fell to Rs 282 crore against Rs 308 crore a year ago. The company has increased its PNG homes connections to 4.25 lakh by connecting over 5,500 homes in the third quarter. The commercial and industrial connections have increased to a total of 4,390, of which 251 new connections were added in Q3FY20. The company has also operationalised 6 new CNG stations, taking the total to 92 CNG stations.Adani Gas has four operational geographical areas, serving customers with natural gas under city gas distribution (CGD) model. “We plan to operationalise another 15 geographies that we won under the 9th and 10th round of auctions, by Q4FY21. If we include the geographical areas in joint venture with Indian Oil, it will take our total geographical areas to 38. We will spend around Rs 5,000 crore over 5 years in developing the geographical areas, reaching more than 71 districts across the country.” With regard to Total’s offer to buy 37.4% stake in Adani Gas, Manglani said: “The primary offer is complete and we have got a Total nominee on board Adani Gas. However, the secondary offer is still being worked. We are hopeful the deal will materialise before March 31, 2020, or as soon as possible.”

https://www.financialexpress.com/market/adani-gas-q3-net-more-than-doubles-to-rs-114-crore/1857882/lite/

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Electric Mobility

India’s first smart electric cargo 3 wheeler unveiled at Auto Expo 2020

India’s first smart electric cargo 3 wheeler unveiled at Auto Expo 2020 by Omega Seiki Private Limited. This smart electric cargo three-wheelers named as Singha and Singha Max is having a loading capacity of 500 kg

 

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and is priced at Rs 3.5 lakhs and 3.6 lakhs. Omega Seiki is a member of the Anglian Omega Network and establish a position as a leader in India in Bright Bar Steel since 1971 in Faridabad, North India and made expansions of their business in various fields. Now the company has forayed in the zero-emission mobility space.The EV manufacturer has announced that they have funded Rs 200 crore for the all-new EV plan. The commercial bookings for these products have been started in the Auto Expo 2020. The cargo electric vehicles have a contemporary style cabin and cargo box. Their bodies have been painted with a cathodic electro-deposition method for long term durability and will be used primarily to cater to the B2B segment.The specifications of Singha and Singha Max electric cargos, they are equipped with a 48V Ip65 lithium-ion battery and a 3kW and 6kW Ip65 motors which produces a 30 and 80 Nm of peak torque. It gives a range of 100 km with a full charge and it is coming in two-speed variants top speed of 45 kmph and 60 kmph. It costs very less for running, at just Rs 0.5/km.

Source: electricvehicles.in

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MAHLE develops low voltage IPM motor for small EVs in India

A German automotive parts manufacturer based in Stuttgart, Germany has introduced a low low voltage IPM Motor designed to operate on a variety of small electric vehicles, especially electric 2- and 3-

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wheelers. Recently, it has increased its stake in its former joint venture which was 50% now MAHLE Electric Drives India (MEDI) increased to 90%. MEDI is a developer and supplier of various e-mobility products. Mr Raj Kalra, President MAHLE India, said “Sensing the opportunities in the electric vehicle market in India we have planned local production of electric drive systems here. IPM Motors, for example, are greener products for the two-wheeler industry. They show 93 per cent system efficiency, are low on EMC emissions and are resistant to on-road environmental conditions”.Mr Martin Wellhoeffer, Corporate Executive Vice President Sales and Application Engineering at MAHLE said “We are Bharat Stage 6 ready and well prepared for future mobility with our dual company strategy. We are developing new solutions in the field of electric mobility. At the same time, we’re improving the internal combustion engine. This will allow us a smooth transition in a world with changing mobility”.The company has started its business increasing in e-mobility during the last years by localising mechatronics products as well as power electronics. It diversified its business for all segments such as two-wheelers, three-wheelers, light vehicles, medium or heavy-duty commercial vehicles and off-road vehicles.

Source: electricvehicles.in

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Olectra BYD launches intercity e-buses

Talking about its technical terms it is 12-meter and can provide a range of 300 km in a single charge with an advanced Li-ion Phosphate Battery that can be charged within two to three hours. Its Max Power is 360 kW (180 kW X 2 motors) and a top speed of 100+ kmph. It offers a maximum torque of 3,000 Nm.

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This is the made in India electric bus which has been aesthetically designed to offer comfort rides to the passengers. It is an AC Delux bus which has luxury push back seats. It comes with the latest TV and infotainment system, Wifi for passengers, USB Chargers for each seat. It has a 5 cubic meter luggage space in which passengers can comfortably place their luggage. Olectra BYD is contributing its larger cause of reducing carbon footprints in the country, the government is also boosting the adoption of electric buses in the public transport system with the deployment of electric buses for intracity travel under the FAME I and FAME II policies.NK Rawal, Managing Director, OlectraGreentech, “Olectra-BYD has been spearheading the adoption of electric vehicles in the country with a focus not only to ‘Make in India’ but also ‘Made for India’ to meet the increasing requirements of our diversity in the landscapes and terrains of the country.”Olectra also launched India’s first 12-meter electric AC buses at Hyderabad, It is India’s largest fleet of 40 e-buses in Telangana and it has received 125 e-buses order for Pune becoming the largest order in Pune.The bus is equipped with various safety features including EU standard FDSS System with TUV certification, ADAS System (Driver Fatigue System) and ITS System as per Indian Regulatory requirement. 

Olectra-BYD is a frontrunner in electric mobility and its over 200 e-buses plying on roads of many states in India. It has covered around 1.2 crore km of distance on Indian roads

Source: electricvehicles.in

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Gas/ Pipelines/ Company News

GAIL reports ₹2,029.50 cr net profit in third quarter

GAIL (India) Ltd has reported a ₹2,029.51 crore consolidated net profit for the third quarter of financial year 2019-2020. This is 12.94% higher than the ₹1,797.04 crore net profit reported by the company

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in the corresponding quarter of the previous fiscal. The rise in profit is mainly due to better physical performance and better margins in gas marketing and liquid hydrocarbons, a company statement said.The company’s board has declared a 64 per cent interim dividend amounting to ₹2,886.49 crore, a BSE filing said.During the quarter under review, consolidated total income of the company fell to ₹18,094.15 crore, down 11.12% from the ₹20,358.52 crore reported in the same quarter of the previous financial year.GAIL also said that the Department of Telecommunications had raised a demand of ₹1,83,076crore as annual licence fee. The company is contesting the claim.Revenue from GAIL’s primary business of natural gas marketing rose marginally to ₹17,157.64 crore during the quarter ended December 2019. Revenue from city gas, LPG and liquid hydrocarbons, and petrochemical segments declined between 5.17 per cent and 35.61 per cent compared with the quarter ended December 2018.AshutoshKarnatak, Chairman and Managing Director at GAIL, said the company managed to report higher profits despite a significant decline in petrochemicals prices. He said this was because of improved operational efficiency and physical performance, with increased capacity utilisation of the petrochemical unit at Pata.

https://www.thehindubusinessline.com/companies/gail-reports-202951-cr-net-profit-in-third-quarter/article30782387.ece

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ONGC’s gas pipeline in A.P’s KG Basin leaks, no damage reported

Villagers spot it on Friday (Jan 31) morning and alert officials; ONGC team rushes and cuts off supply. There was a leak in the gas pipeline of the Oil and Natural Gas Corporation (ONGC)

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near Antervedi village in East Godavari district in the KG Basin on Friday. Alert officials rushed to the spot and gas supply to the line was cut off immediately.According to ONGC officials, the gas pipeline connected to Mori village from Antervedi developed a leak in the fields and supply from the well was arrested immediately.“Villagers noticed gas gushing out from the pipeline around 7.30 a.m. on Friday, and informed local officials, who in turn alerted us. No human or property loss has been reported due to the gas leak. We started repair works to plug the leakage and there is no need to panic,” an ONGC official told The Hindu.

https://www.thehindu.com/news/national/andhra-pradesh/ongcs-gas-pipeline-leaks-in-aps-kg-basin/article30701066.ece

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Survey for crude oil, natural gas under way in Nurpur

Oil and Natural Gas Corporation (ONGC) Ltd has started a survey to explore the possibility of crude oil and natural gas in three gram panchayats in Nurpur.The ONGC has awarded this work to a private survey company

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Asian Oil Field Services which has been undertaking underground survey in Aghar, Charuri and Panjara gram panchayats in Nurpur sub division nowadays.The whole process to explore the possibility of underground is being conducted by drilling 20 to 25 meters deep holes in the earth and efforts are being made to procure underground information through Global Positioning System (GPS). The company will submit the detailed survey report to the ONGC.Company’s project manager Praveen Sharma said the underground survey would continue for at least a fortnight. He said the company had initially started this survey in Roopnagar (Punjab) in September last year and after conducting survey in Jawalamukhi and Kangra had started the underground survey in Nurpur area.

https://www.tribuneindia.com/news/survey-for-crude-oil-natural-gas-under-way-in-nurpur-35419

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Reliance Industries shuts down D1/D3 gas field in KG-D6 block

More than a decade after being put to production, Reliance Industries shuttered its D1/D3 gas field in the KG-D6 block on Monday as the field ceased to produce, the company said.Touted as India’s first

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deep-water gas field located in the Bay of Bengal, D1/D3 was put to production in April 2009.Production started declining from April 2010 after hitting a peak of 61.43 MMSCMD in March 2010. RIL had an estimated 10 TCF of gas, but due to the reservoir’s complexity and sand and water ingress, production declined. Last quarter, the field produced an average of just 1.5 MMSCMD.In February 2011, British oil major BP Plc had paid $7.2 billion for a 30% share in 23 oil and gas blocks operated by RIL, including KG-D6. RIL has a 66.6% stake in KG-D6, while BP holds the rest.When RIL found gas in the KG-D6 block in 2002, it was touted as the world’s largest natural gas find that year and India’s largest in 30 years.In a record seven years, RIL brought the field on stream and began production from D1 and D3 in April 2009 with an investment of $9 billion in developing the block.In September 2018, RIL had shuttered its only oilfield (MA field) in the D6 block in the Krishna Godavari (KG) basin due to lack of production. The field has cumulatively produced about 0.53 TCF of gas and 31.4 million barrels of oil and condensate. It has no remaining reserves.KG-D6 produced about 3 tcfequivalent, saving about $30 billion in energy imports.RIL, along with BP, is now investing ₹35,000 crore toward monetising another 3 tcf equivalent (about 500 million barrels of oil equivalent) reserves from three projects—R cluster, Satellite Cluster and MJ fields—in the KG-D6 block.“The first gas from these fields is expected in mid-2020. The peak production from these three fields is expected to reach 1 BCF per day, which is about 15% of the then envisaged India’s demand,” RIL said.

https://www.livemint.com/industry/energy/reliance-industries-shuts-down-d1-d3-gas-field-in-kg-d6-block-11580755105684.html

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RIL to offer more KG gas for sale

Reliance-BP is likely to offer as much as 5 MMSCMD of natural gas for bidding from newer discoveries in KG-D6 in the next few days. Reliance Industries and its partner BP plc of the UK will this month

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offer for sale more natural gas from its KG-D6 block to users as it prepares to put into production a second wave of discoveries in the eastern offshore block.Reliance-BP is likely to offer as much as 5 MMSCMD of natural gas for bidding from newer discoveries in KG-D6 in the next few days, sources said. The volume to be offered is the same as the one the company bid out in November last year.Like in the previous auction, Reliance-BP will seek bids from potential users for the 5 MMSCMD of natural gas it plans to produce from the R-Cluster Field in the KG-D6 block from mid-2020.Bidders will have 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 RIL had in November set a floor or minimum quote of 8.4% of dated Brent price  which meant that bidders had to quote 8.4% or a higher percentage for seeking gas supplies. The same formula is likely to be continued in the next auction.

https://www.telegraphindia.com/business/ril-to-offer-more-kg-gas-for-sale/cid/1743779

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Shell, RIL win in English HC against govt in PMT oil, gas field dispute

In a big win for Shell and its partner Reliance Industries, the English High Court has rejected Indian government’s challenge to the recovery of certain costs in the western offshore Panna-Mukta and Tapti oil and

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gas fields they operated. The government had sought $3.5 billion in dues from Reliance and Shell-owned BG Exploration & Production India Ltd based on an October 2016 partial award of an international arbitration tribunal over the recovery of certain costs from the sale of oil and gas produced from the Panna-Mukta and Tapti fields. The two firms had gone to the English High Court against the 2016 partial award. Sources with direct knowledge of the development said the English High Court had previously directed the tribunal to reconsider certain issues. The tribunal subsequently in 2018 issued another award to uphold the two companies right to recover costs. This award was challenged by the government. Justice Robin Knowles of the English High Court (EHC) delivered a judgement on February 12 rejecting all of Government of India’s five challenges to the 2018 award, sources said. When contacted, Reliance declined to comment on the issue. Arbitration Tribunal reconsidered the issues and on October 1, 2018, gave its Final Partial Award holding that certain costs incurred by two companies were agreed to be cost recoverable by the Government of India. The English court has scheduled a Consequential hearing on February 28, 2020, for issuing further directions in the matter, they said. Shell and Reliance had previously contended that the tribunal’s 2016 award determined certain issues of principles. Pending determination of all issues before it, appropriately, it did not award any monetary sums. Quantification of amounts, if any, by the tribunal is to be done when all issues have been decided. While this challenge was pending in the English court, the government unilaterally calculated certain amounts, based upon its interpretation of the 2016 award, which the government alleges are payable by Oil & Natural Gas Corporation (ONGC), BG and RIL. ONGC owns a 40 per cent stake in the fields while Reliance and Shell have 30 per cent each.

https://www.business-standard.com/article/companies/shell-ril-win-in-english-hc-against-govt-in-pmt-oil-gas-field-dispute-120021301571_1.html

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Policy Matters/ Gas Pricing/Others

Low Gas prices may help revive power assets

Gas prices in international spot markets are at lowest at about $3 per mmbtu, a boon for the ailing 1 lakh crore power assets if the Centre is able to pull off the proposed revival scheme announced in the budget for 2019-20.

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The present prices may be short-lived, with some countries banning Chinese shipments due to Covid-19 scare, but experts said the rates are likely to be in the range of $4-4.5 per mmbtu for a few more years owing to less demand and excess supply. ET had reported on January 7 that the Union power ministry had finalised two schemes to procure 4,000 MW from gas-based power plants to rescue the stranded plants. The schemes include procuring 2,000 MW from gas-based plants through auction and bundling it with an equal capacity of solar power. Another 2,000 MW will be procured through online reverse auction, on a model similar to previous such schemes. A senior government official said the scheme is close to finalisation and will be put up before the Union Cabinet for approval. He, however, said approval from state governments on waiver of taxes is still pending. “Ample LNG supply is lined up from key countries in the next five years and demand is sluggish in picking up. Hence, structurally LNG prices will remain below $5 per mmbtu,” said Debasish Mishra, leader, energy and resources for Deloitte in India. “India must take advantage of this and make a serious push on renegotiating oil-linked contracts on supply side and make use of the 24 GW of stranded gas power capacity either on standalone basis or combined with RE (renewable energy).” He said spot LNG prices in Asia are at an all-time low below $3 per mmbtu, against $20 per mmbtu following the Fukushima nuclear power plant disaster in February 2014, when Japan shut down more than 50 nuclear reactors. Industry experts said warmer winters in Korea and Japan, restart of Japanese nuclear power plants and Covid-19 outbreak coupled with increase in LNG capacity in Australia and the US and pipeline connectivity of China and Russia have led to glut-like conditions in global LNG markets. This has led to record low prices of the imported gas.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/low-gas-prices-may-help-revive-power-assets/74126932

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ShriAshutoshKarnatak CMD GAIL spoke at the world energy policy summit

DrAshutoshKarnatak, CMD, GAIL today spoke at the World Energy Policy Summit at New Delhi about the importance of environment conservation for ensuring a clean and sustainable future. He said that Natural Gas

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and Renewables will play complimentary roles in enabling to meet energy demand of the country in future. He also spoke of the roadmap for increasing the share of natural gas from 6.2 percent to 15 percent in India’s energy basket. He said that Accessibility, Availability and Affordability are the three parameters critical for growth of natural gas sector. He added that natural gas pipeline grid is envisaged to increase to 35,000 km from current length of approx 16,000 km.This coupled with upcoming Regasification infrastructure in next few years will provide accessibility & availability for growth of India’s natural gas sector. Steel and other Industrial sectors would account for additional 40 to 50 mmscmd natural gas demand.

http://www.psuconnect.in/news/Shri-Ashutosh-Karnatak-CMD-GAIL-spoke-at-the-world-energy-policy-summit/21348/

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As China suspends fuel contracts, Indian firms go bargain hunting

Indian firms are on a hunt for bargains on diverted cargoes of crude oil and liquefied natural gas (LNG), with Chinese energy majors declaring force majeure to avoid taking delivery of some cargoes, said

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several people aware of the development.India is the world’s third-largest crude oil buyer and the fourth-largest LNG importer. It consumes 145 MMSCMD of gas.A novel coronavirus outbreak in China has caused oil demand to plunge in the world’s second-biggest economy, forcing state-run CNOOC, China’s biggest LNG importer, to suspend contracts. Several refineries, including Sinopec, the world’s largest refiner, plan to reduce output or shut plants. This has also led shipping rates to fall. Trade tensions and a slowing global economy also have an overhang on energy markets.“Indian buyers thus have a window of opportunity to avail distress deals available on sea bound crude and LNG, meant for consumption in China,” said Debasish Mishra, partner at Deloitte India.This comes against the backdrop of oil markets facing a situation called contango wherein the spot price is lower than a futures contract.Concerned over the situation, the Organization of the Petroleum Exporting Countries (Opec) may advance its 5-6 March meeting, with its technical panel recommending a provisional cut to the Opec plus arrangement.According to S&P Global Platts, “30 to 60 million barrels of oil already purchased and on its way to China will need to be either resold and/or kept in storage for future use.”The state-run Petronet LNG Ltd said the company is not “contracting such cargoes”, said its managing director and chief executive Prabhat Singh. “There is anyway a glut in the market and it will reflect in spot buying. While it is not an ethical thing to do, nor is right from the corporate governance point of view, a market will behave like a market,” he said.India is building up its LNG portfolio with local firms having inked long-term LNG contracts totaling 22MMTPA. It has also been trying to renegotiate its LNG contracts with companies exploring strategies such as time swap of volumes, destination swaps, and contract on free on board basis to reduce the final fuel price.Meanwhile, the Indian industry has also been impacted by the coronavirus epidemic. Mint reported on 6 February about domestic power project developers who source solar modules from China planning to declare force majeure on meeting project completion deadlines because of supply disruptions following the coronavirus outbreak.Domestic companies are bracing for production shortages, disruption in shipments, and scarcity of critical bulk drugs and life-saving antibiotics as a result of a travel clampdown in China, which is battling to contain the epidemic. India imports more than $70.3 billion worth of goods from China and exports $17 billion.

https://www.livemint.com/news/india/as-china-suspends-fuel-contracts-indian-firms-go-bargain-hunting-11581262857723.html

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Budget 2020: Gas stocks jump as FM proposes to extend gas grid by 11,000 km

Gas stocks jumped after the Finance Minister NirmalaSitharaman in her Budget speech on Saturday proposed to extend gas grid to 27,000 km from 16,200 km.The government allocated Rs 22,000 crore

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to power and renewable energy sector.“Increase in National Gas Grid from 16,200 km to 27,000 km augurs well for companies like Petronet LNG and other city gas distribution companies like IGL and MGL,” said RusmikOza of Kotak Securities.Shares of Castrol India (up 4.07 per cent), GAIL (India) (up 2.2 per cent), Gujarat State Petronet (up 1.44 per cent), HPCL (up 1.2 per cent), Petronet LNG (up 0.49 per cent), Bharat Petroleum Corporation (up 0.44 per cent) and Indraprastha Gas (up 0.1 per cent) were among the top gainers.Oil & Natural Gas Corporation (down 1.7 per cent), Indian Oil Corporation (down 0.48 per cent) and Reliance Industries (down 0.05 per cent) were the top losers in the index.Naveen Aggarwal, Partner-tax, KPMG in India, said the move will help increase dependence on cheaper gas as compared to crude oil. This is also environmentally friendly as compared to oil, he added.The S&P BSE Oil & Gas index was trading 0.24 per cent up at 13,957.75 around 12:12 pm.Benchmark NSE Nifty50 index was down 27.55 points at 11,934.55, while the BSE Sensex was down 91 points at 40,632.49.Among the 50 stocks in the Nifty index, 18 were trading in the green, while 32 were in the red.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/budget-2020-gas-stocks-jump-as-fm-proposes-to-extend-gas-grid-by-11000-km/73837596

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LNG Development and Shipping

LNG cargo prices in India, Asian bids fall bellow $3/MMBtu

The pricing for a liquefied natural gas (LNG) deal in India and bids for cargoes in northeast Asia have fallen to unusually low levels of below $3 per MMBtu this week.The LNG market has been hit by a dip

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Asian demand due to warmer-than-usual winter temperatures and the coronavirus outbreak, while the market has continued to be well supplied by projects around the world.India’s Reliance Industries purchased an LNG cargo via tender on Wednesday at $2.80 per MMBtu, two industry sources said, with one saying the delivery window was on April 1-3.Sources said the price was the lowest in many years.The Japan-Korea-Marker (JKM) price, assessed by S&P Global Platts, fell to a record low of $3.512/MMBtu on Monday (Feb3).But the downward movement has continued, with bids plummeting below $3/MMBtu on Platts Market on Close window.On Wednesday, one bid at $2.79 per MMBtu was placed by Engie for an April cargo and a $2.80 per MMBtu bid was placed by BP for a March cargo.

https://www.hellenicshippingnews.com/lng-cargo-prices-in-india-asian-bids-fall-bellow-3-mmbtu/

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Petronet LNG to sign $2.5 bln U.S. gas deal during Trump’s India visit

India and the United States have built close political and security ties and want to strengthen trade links, with Trump aiming to boost energy supplies to India, the world’s third biggest oil importer.

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India’s top gas importer Petronet LNG and U.S. liquefied natural gas (LNG) developer Tellurian Inc are preparing to sign a $2.5 billion deal during President Donald Trump’s maiden visit to New Delhi later this month, two sources familiar with the matter said.India and the United States have built close political and security ties and want to strengthen trade links, with Trump aiming to boost energy supplies to India, the world’s third biggest oil importer.Petronet will invest the money over a five-year period in Tellurian’s proposed $27.5 billion Driftwood LNG export project in Louisiana and the deal will give Petronet an equity stake in the project and rights for up to 5 MMTPA of LNG, the sources said.”Supplies will begin from 2024 and will be gradually raised to 5 MMTPA in 2028,” one of the sources said.The delivered price of gas to India would be below $6 per MMBtu, the source added. This will work out to about 30 per cent cheaper than the country’s current long-term deals with Qatar.”India will be getting the producer-based prices unlike other deals where Indian companies are only one of the customers,” the source said, declining to be named.Tellurian is offering an equity interest in Driftwood Holdings, which comprises Tellurian’s upstream company, its pipeline and the upcoming terminal that will be able to export 27.6 MMTPA of LNG a year.Tellurian did not respond to Reuters email seeking comment. Petronet was not avaialable for comment.The two companies signed a preliminary non-binding deal in September last year, when Prime Minister NarendraModi visited the United States as the two nations want to deepen their energy and trade relations.The South Asian country is expanding its pipeline network and building new LNG import terminals to encourage the use of cleaner fuel.In a bid to make gas more affordable, it has asked its biggest gas supplier Qatar to change the pricing under its long term oil-linked gas supply contracts as spot Asian LNG prices have tumbled.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/petronet-lng-to-sign-2-5-bln-u-s-gas-deal-during-trumps-india-visit/73890667

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Prices in Torrent Power LNG tender average $ 3.50-3.70 per MMBtu

India’s Torrent Power has awarded its tender for four liquefied natural gas (LNG) cargoes at an average of $3.50-$3.70 per MMBtu, three market sources said on Monday (Feb3).

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The cargoes are for delivery in April, June, October and December this year. The price spread between different delivery months was likely to have been significant. The price of the April cargo was close to $3.10/MMBtu, two of the sources said.

Source: Reuters/Indian Oil & Gas

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India’s Essar Steel seeks 36 LNG cargoes for 2021-2023 delivery

India’s Essar Steel is seeking 36 liquefied natural gas (LNG) cargoes for delivery over 2021 to 2023, three industry sources said on Tuesday (Feb4).

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The tender closes on Feb. 5 and remains valid until Feb. 7, one of them said.This is likely a reissue of an earlier tender by the company in November last year for the same volumes and delivery period, a second source said, though this could not immediately be confirmed.An Essar Steel spokesman could not immediately be reached for comment.

Source: Reuters/Indian Oil & Gas

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AG&P and ADNOC Logistics sign 15 year LNG charter deal for Indian port facility

Liquefied natural gas (LNG) logistics firm Atlantic Gulf & Pacific (AG&P) and ADNOC Logistics and Services said on Monday they have signed a deal for the long-term charter of a floating storage unit (FSU)

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at a new import facility in southern India.The agreement is for the conversion, supply, operations and maintenance of the FSU at AG&P’s new LNG import facility in Karaikal port in Puducherry, India, they said. The 137,756 cubic metre FSU is owned by ADNOC Logistics and Services, which is a fully-owned firm by ADNOC, and is being chartered for 15 years, the companies said in a joint statement.Construction on the terminal will start in the first quarter of this year, with commercial operations expected to start before the end of 2021, they added. Owned and operated by AG&P, the LNG import facility at the Karaikal port will have an initial capacity of 1 MMTPA and will be expanded to 3 MMTPA in the medium term as demand increases, the companies said.The terminal will serve domestic, industrial and commercial customers within a 500-kilometre radius, including the heavily industrialized region of central Tamil Nadu, which has major manufacturing clusters for the fertilizer, cement, steel, textile, leather, sugar and garment industries, they said.It will also serve gas-fired power plants as well as AG&P’s own city gas distribution network across southern India, they added.
Source: Reuters/Indian Oil & Gas

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INTERNATIONAL NEWS

 

Natural Gas / Transnational Pipelines/ Others

Natural gas prices hit record low- USA

Adjusted for inflation, the natural gas spot price dropped to its lowest point in the shale revolution era. Fracking and horizontal drilling revolutionized the industry a decade ago, but the success has also cost producers

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with now record low prices hitting $1.77/million BTU today.The lowest price was $1.67/MMBtu on March 4, 2016 which would be about $1.80/MMBtu today based on the U.S. Bureau of Labor Statistics inflation calculator.The spot price for natural gas has made a steep decline since its most recent peak in December, 2018 at $4.61/MMBtu. The fall has pushed three Wyoming natural gas producers, all located in Sublette County, to change their plans.Ultra Petroleum, the state’s largest natural gas producer, announced in September it would suspend operations through the year. Pinedale Energy Partners has suspended drilling. Jonah Energy is spending less money and plans to slow down production. Those three companies alone account for 54% of Wyoming’s natural gas, according to Jonah Energy. Additionally, Southland Royalty Company, the 15th largest natural gas producer, filed for bankruptcy on January 27.“The production declines are going to continue, and they’re going to accelerate in areas. That will result in loss of tax revenue, loss of jobs, and really put Wyoming in a precarious situation,” Paul Ulrich with Jonah Energy said.Natural Gas Intel reported from the North American Prospects Expo that energy executives were not optimistic about prices increasing in the near-term.

https://www.wyomingpublicmedia.org/post/natural-gas-prices-hit-record-low#stream/0

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Russian gas supplies to Europe plunge in January

Russian gas supplies to Europe plunged in January, S&P Global Platts Analytics data showed Monday (Feb 2), with exports via Ukraine down 71% on the month despite the new gas transit agreement between Gazprom

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and Ukraine’s Naftogaz coming into force on January 1.Pipeline flows to Europe (excluding the countries of the former Soviet Union) through the Nord Stream pipeline, the Yamal-Europe corridor and via Ukraine totaled 9.72 BCM in January, or an average of 314 million cu m/d, according to the data.That is well down on the 15.34 Bcm that flowed out of Russia in December and on flows in January 2019 of 14.97 BCM, the data showed.Gas demand across Europe has been unseasonably weak in January due to warm weather, with the month also seeing a re-routing of Russian gas exports to Europe with the start-up of the TurkStream gas pipeline to Turkey replacing some flows via Ukraine.Gazprom said last week the first 1 BCM of Russian gas had flowed through TurkStream since it began commercial supplies on January 1.One of the strings is designed to bring Russian gas to the Turkish market directly, while the other flows gas out of Turkey into Bulgaria, both replacing supplies previously sent via Ukraine on the Trans-Balkan Pipeline.Gazprom said about 54% of the volume was delivered to the Turkish gas market and about 46% to the Turkish-Bulgarian border, suggesting average flows of 20 MMCMD into Turkey and 17 MMCMD into Bulgaria.Extrapolated for the whole of the month of January, it implies total flows via TurkStream for the month of 1.15 BCM on top of the 9.72 BCM flowed via the traditional three corridors.Gazprom also sends gas to Turkey via the 16 BCM/year capacity Blue Stream pipeline, but no data on flows is available.

Ukraine flows: Russian flows through Ukraine took the biggest hit in January, with deliveries down to 2.03 Bcm, or an average of just 65 million cu m/d.That is down 71% on the average flows via Ukraine in December of 228 million cu m/d.The sharp fall in deliveries via Ukraine came despite the new five-year gas transit deal that provides for Gazprom to ship 65 Bcm of gas via Ukraine in 2020, or an average of 178 million cu m/d.Any volumes not shipped have to be paid for under the “ship-or-pay” provision in the contract.SerhiyMakohon, the head of Ukraine’s new gas grid operator GTSOU, said Gazprom had paid for more than double the transit that it actually used in January.Analysts believe that weak demand, plus storage withdrawals replacing pipeline exports, are the reason for the much lower flows through Ukraine.”The start of the year saw a sharp drop in Ukrainian transit of Russian gas,” Platts Analytics’ analyst OrnelaFigurinaite said Monday (Feb 3).Figurinaite said there was a record gas stock build by both Gazprom and other shippers by the end of 2019, with January seeing a 115 million cu m/d month-on-month increase in storage withdrawals within the central and eastern European region alone.

Nord Stream capacity: Meanwhile, flows via the Nord Stream pipeline to Germany in January hit a record monthly high of 4.95 Bcm, with daily flows rising to 167 million cu m/d at times in the month, above assumed nameplate capacity of closer to 158 million cu m/d.EUGAL is designed to on-flow gas to be delivered via the delayed Nord Stream 2 pipeline, so has spare capacity to flow Nord Stream gas until Nord Stream 2 is commissioned.Gas flows through the Yamal-Europe corridor via Belarus into Poland in January were also down on flows in the final months of 2019 at 2.55 Bcm, the lowest level since August last year.Flows via the corridor could shift again from mid-May, however, when Gazprom’s transit contract with the owner of the Polish section of Yamal-Europe expires and capacity booked according to EU rules.Lower nominated Russian gas purchases in January also meant Gazprom Export had more gas to offer on its Electronic Sales Platform, with ESP sales for delivery in January hitting a record high of 78 million cu m/d.Gazprom can supply the ESP-sold gas from storage as well as from flows.

https://www.spglobal.com/platts/en/market-insights/latest-news/natural-gas/020320-russian-gas-supplies-to-europe-plunge-in-january[Edited]

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Global LNG Development

China reneges on commodity deals, worsens global trade chaos-CNOOC declares force majeure on LNG

Global commodity trade plunged deeper into chaos as Chinese companies started walking away from purchase contracts because of the spread of the deadly coronavirus.A

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Chinese buyer of liquefied natural gas and a copper importer declared what’s known as force majeure — meaning they are reneging on deals as the virus constrains their ability to take deliveries. The cancellations are among the first known cases of the legal clause being invoked in commodity contracts due to the epidemic.“Everything that we were afraid of, from trade wars or global growth, doesn’t compare,” said Jan Stuart, global energy economist at Cornerstone Macro. “This virus is an entirely different risk, especially in commodities where China’s role dominates.”China is the world’s biggest consumer of most raw materials, from energy products to industrial metals, and disruptions in its purchases create havoc across global supply chains. Now, while global markets bounce back from initial fears over the impact of the virus, the fallout in commodity trade is only worsening as Beijing keeps swathes of the country under lockdown and restricts travel.In a dramatic and rare step, China National Offshore Oil Corp., the nation’s biggest LNG buyer, invoked force majeure and told some suppliers it won’t take delivery of cargoes because of constraints caused by the coronavirus. French oil and gas giant Total SA rejected the declaration.Hours later, it emerged that Chinese copper smelter Guangxi Nanguo had also declared the same get-out clause, refusing to take delivery of raw materials.Meanwhile, copper buyers are requesting Chilean miners postpone shipments because of port shutdowns while China’s biggest oil refiner, Sinopec Group, is likely to ask Saudi Arabia to reduce crude supplies next month. Soybeans from Brazil and the U.S. are being held up on arrival in eastern China and Indonesian palm oil shipments are also being delayed.“We are truly concerned about the loss of buying power that has spread across every division of commodities,” said Pete Thomas, a senior vice president at Chicago-based broker Zaner Group. “The impact has been much larger than everyone even realizes it would be.”For LNG, CNOOC’s force majeure hurts a market already buffeted by rising U.S. supplies and weak demand after a mild winter in Europe and Asia. Even before Chinese buyers walked away from supply contracts, spot prices fell to a record low, crippling the profitability of energy giants such as Royal Dutch Shell Plc and Exxon Mobil Corp. [Edited]

Source: LNG Global/Bloomberg

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Asian LNG prices fall as coronavirus concerns rise

The average LNG price for March delivery into northeast Asia was estimated at around $3.80 per MMBtu, down $0.20 per MMBtu from the previous week. Asian spot prices for LNG fell this week

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as the heavily oversupplied market was pressured by concerns over the impact of the coronavirus outbreak on China’s imports.With demand across Asia subdued this winter due to warmer-than-usual weather, concerns are growing that the coronavirus may further taper off gas consumption.”Any slowdown in Chinese GDP growth as a result of the coronavirus will feed directly into gas consumption and through to LNG imports,” Michael Stoppard, chief strategist for global gas at IHS Markit said.”This will hurt a global market already in search of demand support.”China Council for The Promotion of International Trade (CCPIT) has said it will offer force majeure certificates to companies struggling to cope with the impact of the virus on their business with overseas partners.”We are more concerned about the Wuhan virus than the spot market right now,” a source in China said earlier this month.With warm weather keeping storage levels high, a fall in downstream demand would easily lead to a so called tank-top situation at Chinese ports, an LNG analyst said.As the Lunar New Year holidays in China were extended until the end of this week due to the virus outbreak, market activity was quiet across the whole of Asia, LNG market sources said.On the supply side, there was a tender from Indonesia’s Donggi-Senoro plant that offered an LNG cargo for loading or delivery in March.In the Atlantic basin, Angola LNG project is selling a cargo for delivery between the end of February and mid-March.Russian producer Novatek has sold a cargo for late March in Europe, while Nigeria LNG awarded its tender for two February loading cargoes, industry sources said.India’s demand is growing due to the low prices, a buyer in India said.Gail India and Torrent Power awarded their tenders this week at below $4 per MMBtu, he added.The increase in spot cargo purchases in India has led to a rare premium of Indian prices to those in northeast Asia, Energy Aspects said this week in a report.Demand also came from Greece where state-owned utility Public Power Corp (PPC) is looking for three cargoes to be delivered between March and May.Falling LNG prices in Asia were impacting curve contracts on European hubs, a gas trader in Europe said.The summer price on the Dutch gas hub fell to $3.28 per MMBtu, while the front-month February contract traded around $3.15 per MMBtu on Friday, the lowest level for this period since at least 2005 when Refinitiv started to publish Dutch price data.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/asian-lng-prices-fall-as-coronavirus-concerns-rise/73826369

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Qatargas signs deal to supply 1 mntonnes/yr LNG to Kuwait

Qatargas has signed a new long- term LNG sale and purchase agreement (SPA) with Shell to deliver 1 MMTPA of LNG to Kuwait, commencing this year, the company announced in a statement on Sunday (Feb 9).

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Commenting on the signing of the SPA, Minister of State for Energy Affairs HE SaadSherida al Kaabi, said, “We are pleased to announce this new long- term agreement between Qatargas and Shell for the supply of LNG to the State of Kuwait, following the recent agreement signed between Qatar Petroleum and Kuwait Petroleum Corporation.“These agreements demonstrate our commitment to the State of Kuwait, which is a very important LNG market and is part of our strive to be the LNG supplier of choice for our customers.“I would like to take this opportunity to thank our valued partner, Shell, with whom we share a long history of fruitful collaboration and we look forward to continuing to work together to put LNG at the forefront of the world’s drive towards cleaner and more sustainable energy sources.”Kaabi added, “This new SPA also further underlines Qatargas’ position as the market leader in LNG and demonstrates the company’s distinguished track-record of providing reliable LNG to the global market place and its continued ability to capture opportunities in a highly competitive environment.”Commenting on the new SPA, Qatargas CEO Khalid bin Khalifa al Thani said, “Qatargas is delighted to conclude this new SPA with Shell. We believe this agreement provides a win-win solution for both companies and deepens the relationship with a valued partner and shareholder.“Qatargas is committed to meeting the clean energy needs of customers who depend upon reliable, flexible LNG deliveries.”The SPA provides for the supply of LNG from Qatar Liquefied Gas Company Limited (4) (Qatargas 4), a joint venture between Qatar Petroleum (70 percent) and Shell (30 percent).

Source: LNG Global

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China gas demand seen crumbling as virus threat spreads

Buyers of LNG in China are bracing for demand to be shattered by a virus epidemic that has killed 361 people, wiped billions off the value of companies in the world’s second largest importer of the fuel and

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threatens its growth.With demand already weakened in an economy slowed by a trade war with United States, several LNG buyers in China told Reuters they are considering either delaying cargoes or cancelling them by invoking force majeure, though nothing had been decided yet.“I think (declaring force majeure on LNG imports) may be possible, as the epidemic keeps (growing) and having a huge impact on demand,” said a source with a Chinese firm who sought anonymity as he was not authorised to speak with media.Last week, a Chinese international trade promotion agency said it would offer force majeure certificates to companies struggling to cope with the fallout of the epidemic on business with overseas partners.It was not immediately clear if any LNG buyers had applied for the certificates but cargo deliveries into China for late February are expected to be delayed, a second source with a Chinese company said.China had already been grappling with a high inventory of LNG as demand had been dented by a winter that was milder than usual and the slower economy.Traders expect the economic impact from the virus to further hit gas demand and cause major delays in LNG cargo deliveries into China, as demand for gas in trucking and industries is expected to slow.The newly identified coronavirus has filtered quickly to other parts of the world since financial markets in its second-largest economy began an extended Lunar New Year holiday on Jan. 24.“We are supposed to see truck drivers coming back to work today, but no one is back because of the virus,” said one LNG trader in the northeastern city of Tangshan.“Demand for LNG is really weak, compared to last year, as factory users are extending their holiday, and even mills are cutting their output. Only LNG gas stations run normally, as they provide livelihood facilities, but demand is also weak.”Asia spot prices of LNG LNG-AS are already at their lowest in more than a decade and are expected to tumble further as Chinese demand slows, traders said.

Source: LNG Global

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Why Europe’s gas glut is worsening?

Europe could import some 100 million tons of liquefied natural gas this year as many cargoes turned down by Asian buyers head for the continent, Reuters has reported, citing energy analysts.

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Last year LNG imports to Europe reached 85 million tons, an all-time record at the time. Yet it seems that depressed demand for LNG in Asia—a key market for the blooming industry—will drive this year’s intake by European countries substantially higher, with 78 cargoes of excess LNG coming from Asia into northwestern Europe.The problem is that the European LNG market is already oversupplied. Last year, the Gate Terminal in the Netherlands, which takes in a lot of the LNG coming into the continent, said it processed a record 171 LNG carriers in 2019. It seems a lot of the LNG remained in storage, sparking concern that soon Europe will not be able to handle the unwanted LNG of Asia, not least because of unseasonably warm weather that has pressured already lackluster demand further.This state of LNG fundamentals has already driven prices low. The November and December spot price for LNG in the Netherlands averaged some $3.95 per MMBtu. It was the lowest for this time of the year since January 2004, Reuters noted in a report. But as the glut deepens, traders expect prices to fall further, to $2.4 per MMBtu later this year.“There is less room to inject gas in storage this summer and a lot of coal to gas switching has already taken place,” an Energy Aspects analyst told Reuters.European authorities have approved the construction of new LNG import terminals but these have yet to be built, so capacity is indeed already stretched. If the warm spell continues, some LNG production terminals might need to shut down.The first to be hit by the European glut would be U.S. LNG producers, according to Natural Gas Intel, if they can redirect the gas to the domestic market, which is also in an excess supply situation.The situation for U.S. LNG producers specifically is made additionally complicated by China’s still standing 25% tariff on LNG imports from the U.S. Reuters last week quoted Freeport LNG’s chief executive Michael Smith as saying local producers could not afford to sell their LNG to a country that has a 25% tariff on the commodity.Smith was commenting on the fact that China has restarted negotiations with U.S. LNG producers regarding future LNG purchases under the Phase 1 trade deal Beijing inked with Washington earlier this month. Under that deal, China undertook to buy an additional $18.5 billion worth of U.S. energy products but with the 25% tariff on LNG still active, LNG might not end up among these energy products.“Importantly, should mild weather or stronger than expected LNG deliveries in NW Europe continue to the point that they would add another 2 Bcm to storage…the market would have to move lower to look for the next lever of adjustment, arguably the curtailment of US LNG exports,” Goldman Sachs said in a note earlier this week. “At current US gas forward prices, we estimate this would be tested with TTF and JKM moving $0.60/MMBtu and $0.80/MMBtu lower from here.” Europe is turning into the final destination for a lot of LNG and its storage facilities are filling up. What will happen when they do fill up, with spring and summer seasons of lower LNG demand coming? Prices will fall even lower, possibly to a point where some production becomes uneconomical. With the right circumstances, this year could see a smaller, LNG version of the oil price crash of 2014.

https://oilprice.com/Energy/Energy-General/Why-Europes-Gas-Glut-Is-Worsening.html

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Regional LNG finds growing demand off the pipeline grid

While massive world-scale liquefied natural gas (LNG) projects around the coast of North America have dominated headlines, smaller-scale regional LNG is also growing quickly.

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There are at least five operations, four fixed facilities in various stages of commercialization, and one using truck-mounted Cryobox liquefaction units to monetize stranded gas.World-scale liquefaction trains load into large specialized tanker ships. Regional LNG liquefaction plants ship LNG in intermodal tank containers, also known as ISO tanks. Some also have facilities for loading tank trucks and rail cars, and one also does direct bunkering of LNG for ship fuel.Most recently Edge Gathering Virtual Pipelines signed a new development deal late in January with one of the largest producers to station Cryobox in the Marcellus. Mark Casaday, CEO of Edge, says the new deal is the firm’s second in the Marcellus. It is actively pursuing similar projects in the Bakken and Permian where the flaring of stranded gas has become a serious problem for the industry.The tenured small-scale operation is Fortis, which has been shipping LNG in tank containers to China since late 2017. Jax LNG recently went into operation in Jacksonville, Fla., with 15 million cubic feet per day at the inlet. Jax is a partnership of Pivotal LNG, a wholly owned subsidiary of Southern Company Gas, and NorthStar Midstream. The latter is backed by Oaktree Capital Management, and Clean Marine Energy.Nearby, the $500-million Jacksonville Eagle operation has two LNG operations going: ISO-tank loading and a ship bunkering. The company tells Rigzone that it is approaching final investment decision for an LNG export facility.And the major midstream and utility company Dominion Energy began construction late in 2019 on modular LNG project in north central Pennsylvania, a joint venture with Rev LNG called Niche LNG, not too far from Edge’s latest installation.The economics are compelling. “In the Bakken diesel costs about $18-20 per million Btu,” said Casaday. “Our LNG costs $10-13 per million Btu. That is found money. The numbers are similar in New Mexico and west Texas.”At the new installations in the Marcellus, Edge will purchase the LNG from the producer to deliver via its truck-based virtual pipeline to existing customers in the region. The company has also signed a deal to supply LNG to the City of Norwich, Connecticut which will be used to provide natural gas to homes and businesses.Edge purchases the Cryobox units directly from manufacturer Galileo Global Technologies, which is also a shareholder along with specialist international private equity firm, Blue Water Energy. Edge also has an agreement with NextEra Energy Marketing as exclusive sales and marketing partner in the US. NextEra is a subsidiary of the eponymous energy group, which claims primacy as “the world’s largest utility company.”

https://www.rigzone.com/news/regional_lng_finds_growing_demand_off_the_pipeline_grid-31-jan-2020-160949-article/[Edited]

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Quest for Blue Skies poised to propel up China’s gas imports

China’s Blue Sky Policy envisages boosting the share of natural gas in the energy mix from currently 7.5%

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to 15% by 2030 which requires substantial investment in LNG and pipeline import capacity and related infrastructure. Imports are forecast to meet more than 70% of gas consumption in Greater China in 2040.Policy makers in Beijing seek to boost domestic production of gas, but the country also needs more LNG and piped gas imports. Gas currently accounts for less than 8% of China’s energy mix, compared to a global average of 22%.Forecasts as to how China will cover its rising gas needs vary widely, though most analysts expect China’s import dependency will grow significantly. DNV GL’s Industry Outlook 2019 research showed almost two thirds (61%) of senior industry professionals in China say more investment is needed in LNG and pipeline infrastructure.As Chinese gas demand spirals, the pressure on securing supply is high, while the requirements on the reliabilityof facilities and equipment are even higher. ”As China is enhancing pipeline interconnections, we need to pay high attention to safety management with zero tolerance for major incidents,” said Mr. Zhou, a manager from a major Chinese pipeline operator. Some 18 LNG import terminals have been in operation in China over the past year, with a total installed domestic capacity of nearly 60 MMTPA. Seven were being expanded and another seven new-build terminals are on the drawing board. The projects could add nearly 19 MMTPAcapacity by the early-2020s, with more expected by mid-decade.BP’s latest Energy Outlook anticipates that around half of China’s additional gas needs will be met by new pipeline capacity from Russia and other CIS countries, and the rest from LNG. Over the coming twelve months, the

government in Beijing wants to create a state-owned national pipeline company to operate all oil and gas pipeline networks to extend its reach and reliability. To enhance supply security, China is expanding its strategic gas storage and is building up a fleet of LNG carriers to become less exposed to seasonal price shifts.

Source: LNG Journal

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World biggest importer Japan to invest in LNG terminals across Asia

Japan will support the construction of liquefied natural gas terminals across Asia, aiming to take a leading presence in the expanding market before its position as world’s largest buyer is overtaken by

Source: LNG Global

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China in the near future.Japan currently supports companies involved in LNG projects through investment and loan guarantees via a government-backed natural resource company — Japan Oil, Gas and Metals National Corp., or Jogmec.

However, Jogmec is limited to aiding upstream operations, such as natural gas exploration and liquefaction plant construction.New legislation would allow Jogmec to support investment in projects further downstream, such as LNG terminals in other countries so that they can import the fuel. Transporting the fuel over long distance efficiently also requires LNG to be reloaded at transshipment facilities, the development of which will also be aided under the plan.As a relatively clean carbon-based fuel, global LNG demand is projected to double by 2040, according to the International Energy Agency. Japan is currently the biggest importer, but consumption is forecast to grow rapidly in Asian countries, with China seen as the biggest importer in 2040.

The easing of Jogmec’s aid of the construction of LNG terminals is expected to help corporate Japan expand trade with other consuming countries. By helping top producers, such as the U.S., expand sales destinations before Japan’s position as the leading buyer declines, Tokyo hopes to take a central role in the growing market.The variety of LNG sources also allows users to cut dependence on Middle East oil, an area under significant political risk. The Middle East is responsible for 60% of net exports of crude oil, but just 20% for LNG.A stronger focus on transshipment facilities will also make it easier for Japan’s private sector to take part in the rapid transport of Russian LNG via the Arctic Ocean.

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US Department of Energy issues four LNG export approvals

The U.S. Department of Energy (DOE) announced today four long-term orders authorizing the export of domestically produced LNG from four proposed LNG export projects in Texas.

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The projects are Annova LNG, Rio Grande LNG, and Texas LNG, all located in Brownsville, Texas; and Corpus Christi LNG’s Stage III in Corpus Christi, Texas. “The Trump Administration recognizes the importance and increasing role U.S. natural gas has in the global energy landscape,” said U.S. Secretary of Energy Dan Brouillette. “The export capacity of these four projects alone is enough LNG to supply over half of Europe’s LNG import demand. With today’s authorizations, we are paving the way for more U.S. natural gas exports to bring energy security and prosperity to our allies around the world.”Under the orders issued today, the following authorization holders will have the authority to export the volumes of natural gas as LNG in billion cubic feet per day (Bcfd) as shown below:

Annova LNG Common Infrastructure LLC; 0.99 Bcfd

Rio Grande LNG, LLC; 3.61 Bcfd

Texas LNG Brownsville, LLC; 0.56 Bcfd

Corpus Christies Liquefaction Stage III, LLC; 1.59 Bcfd
The above entities are authorized to export LNG to any country with which the United States does not have a free trade agreement requiring national treatment for trade in natural gas.  The U.S. DOE noted the United States is now in its fourth consecutive year as a net exporter of natural gas. To date the United States has exported LNG to 37 countries and is on track for its export capacity to nearly double in the next 5 years. 

Source: LNG Global

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Natural Gas / LNG Utilization

FPT Industrial natural gas engine powers new French hybrid tram bus

A high-performance natural gas engine designed and manufactured by FPT Industrial is providing the power behind a new hybrid tram bus that has just entered service in France, by Van Hool, a Belgian

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manufacturer of vehicles for public transport. The latest Van HoolExqui.City features the new-generation FPT Industrial Cursor 9 NG engine, delivering maximum power of 221 kW at 2,000 rpm, and torque of 1,300 Nm at 1,000 rpm. The Brand’s six-cylinder engine delivers reliability and an extended product lifecycle to the hybrid tram bus, which commenced service in the municipality of Nimes on January 6.At the heart of the Exqui.City is its multi-propulsion platform, which is designed to accommodate the latest and greenest alternative propulsion technologies. With this flexible platform, Van Hool confirms its experience in integrating new, more efficient and reliable technologies. City characteristics and topography are important factors that influence vehicle motorization. For Nimes, the hybrid natural gas/electric combination has been deemed the optimum solution.FPT Industrial Cursor 9 NG engines for Van Hool feature ‘Start & Stop’, a technology that turns off the thermal engine when the vehicle approaches the bus stop. This reduces noise and gas exhaustion, bringing more comfort to the passengers. Once the passengers have boarded, the engine restarts, charging the electric batteries for traction.FPT Industrial has already sold 10 Cursor 9 NG engines to Van Hool, with a further six planned to complete the tender. In January, the 10 tram buses, each of which measuring 24 meters in length, began operating a 20-minute service along the T2 line between Nîmes railway station and Carémeau CHU (the city’s hospital). Ultimately, it is estimated that around 25,000 people will use the shuttle every day.The Cursor 9 NG uses stoichiometric combustion and multipoint sequential injection, ensuring best-in-class fuel consumption. To comply with Euro VI emissions standards, the engine relies on a simple three-way catalyst, without EGR (exhaust gas recirculation).

http://www.ngvjournal.com/s1-news/c5-products/fpt-industrial-natural-gas-engine-powers-new-hybrid-tram-bus-in-france/

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Gas Networks Ireland, Applegreen strike deal for CNG fuel on M7

GAS Networks Ireland and Applegreen have agreed to develop two fast-fill compressed natural gas (CNG) stations along the M7 to provide hauliers a green alternative to diesel. The stations, located in Portlaoise and

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Tipperary, are expected to open by the end of the year. They will join the nation’s first public CNG station at Dublin Port. Seven more public CNG stations are currently in development. Ireland is among the last nations in Europe to develop a network of CNG filling stations. The alternative fuel – significantly cheaper than diesel with a much lower emissions profile – is commonly used by European hauliers, with particularly extensive filling networks in Germany, Austria, Italy, Sweden and the Benelux nations. Around two million CNG-powered lorries, vans and cars are already on Europe’s roads, 25 million worldwide. The vast majority of vehicles queueing for CNG in Dublin Port are foreign. CNG-powered lorries registered in Ireland -fuelled in hauliers’ private depots – still number in the dozens. Gas Networks Ireland is tasked with meeting an EU directive requiring CNG supply at least every 150 kilometres on major roadways by 2025. “Ireland’s transport emissions continue to rise. While this is the by-product of much welcomed economic and employment growth, as a country we face significant challenges to meet our emissions reduction targets,” said Declan O’Sullivan of Gas Networks Ireland. The M7 locations will be at Applegreen’s forecourts in Midway, Portlaoise and Birdhill, Co Tipperary. Applegreen managing director Dáire Nolan said they were discussing other potential CNG sites. He said Applegreen was “very proud to offer Ireland’s commercial fleet operators a cleaner and more cost-effective fuel alternative”.

https://www.independent.ie/business/irish/gas-networks-ireland-applegreen-strike-deal-for-cng-fuel-on-m7-38955485.html

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LNG refueling infrastructure for trucks keeps growing in Germany

Liqvis GmbH (subsidiary of Uniper) and Echo Tankstellen GmbH (operator of Esso stations) are joining forces to help expand the LNG station network in Germany. Selected sites operated by

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Echo are under initial consideration for this purpose. Subject to approval by the regulatory authorities, the first joint site set to be realized will be the Esso truck stop in Seligweiler near Ulm, which is operated by Hotel & Rasthaus Seligweiler GmbH & Co KG. A joint project group will then discuss where to build further LNG stations and assess the feasibility of these sites before applying to the authorities and implementing them. The companies aim to establish LNG on the market as an alternative fuel for heavy goods vehicles and to help develop the associated infrastructure into a closed network. The Echo network currently comprises around 1,000 filling stations operating under the brand name Esso. Liqvis is expected to have six sites where trucks can refuel with LNG by the end of 2020: Berlin Grünheide (already open), Kassel-Lohfelden, Rosengarten/Hamburg, Langenhagen/Hannover, Bönen, and Calais in northern France. The Seligweiler station that is currently being planned together with Echo will be added in 2021. “We are delighted to have found a strong partner in Echo Tankstellen GmbH, with whom we can work together to further promote LNG fuel in Germany as a more environmentally friendly alternative to conventional diesel and gasoline engines. The Ulm Seligweiler service area is an ideal site because it’s directly on the A9 transit route and is already used extensively by heavy goods vehicles,” said Silvano Calcagno, Managing Director of Liqvis GmbH.

http://www.ngvjournal.com/s1-news/c4-stations/lng-refueling-infrastructure-for-trucks-keeps-growing-in-germany/

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Czech Republic: city of Ostrava buys fleet of 37 CNG articulated buses

Solaris Bus & Coach S.A. has secured yet another significant order for environmentally friendly, natural gas buses. Pursuant to the contract signed between the manufacturer and public transport operator

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Dopravnípodnik Ostrava a.s., the Czech city of Ostrava will receive 37 state-of-the-art Solaris Urbino 18 CNG buses.The 37 articulated buses shall be supplied within 12 months. The total value of the contract, covering also a five-year warranty period for the commissioned vehicles, settled at 13 million euro. The revamped and environmentally friendly fleet will help the carrier contribute markedly to the improvement of the life quality of Ostrava’s residents.The heart of the new vehicles will be a 239 kW engine able of using natural gas. The engine will support the feature of cold start, meaning it facilitates ignition at very low external temperatures. The driveline will be supplemented by an automatic transmission ensuring optimal travel comfort for drivers and passengers. Five CNG tanks will be placed on the vehicle roof. Their total capacity will amount to 1,875 liters.The modern buses commissioned by the Czech carrier will be able to carry 110 passengers at a time at the least. In spite of designating two spaces for wheelchairs and prams or pushchairs, Solaris has also managed to provide 42 seats, of which 17 are accessible from the low floor.The residents of Ostrava are well acquainted with vehicles of the Polish manufacturer. Once the latest order is completed, the Czech city will have nearly 400 of these. A large majority of them is made up by ecological buses running on natural gas and zero-emission trolleybuses. What is more, it was on the order of the municipal operator Dopravnípodnik Ostrava a.s that Solaris completed its biggest contract to-date for CNG vehicles, by supplying 90 12-meter and 15 articulated buses to Ostrava in 2015.

http://www.ngvjournal.com/s1-news/c3-vehicles/czech-republic-city-of-ostrava-orders-fleet-of-37-cng-articulated-buses/

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Italy: IKEA praises logistics company LC3 for environmental commitment

LC3 is the first trucking company in the world to receive the “Iway Well Developed Supplier Unit (IWDSU)” title, awarded by Ikea to partners that stand out for their commitment to ethics, safety and the environment.

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With this prestigious recognition, the Swedish furniture giant has confirmed its willingness to strengthen the partnership with the Gubbio-based logistics company, which uses LNG to power its truck fleet, in the context of an integrated vision of sustainable development.“Please continue the great work on Iway and we look forward to continuing to collaborate and improve together,” was the message sent by Ikea to the Italian company for having maintained and shared the standards and requirements set in its code of conduct, called Iway, which defines fundamental environmental and social criteria.Since its inception 10 years ago, LC3 has made the environmental mission its business model. It was the first operator in Italy to choose LNG as a vehicle fuel, actively contributing to a drastic reduction of pollutants and with a strong commitment to transforming road transport. Now the company is ready for the next challenge, biomethane produced from agricultural waste or solid urban waste, which can reduce CO2 emissions by up to 95% compared to diesel.

http://www.ngvjournal.com/s1-news/c1-markets/italy-ikea-praises-logistics-company-lc3-for-its-environmental-commitment/[Edited]

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The IVECO S-WAY NP gets the 2020 Eco-friendly Industrial Vehicle award

After the presentation of the new S-WAY heavy vehicle last July, the innovative model in natural gas version of IVECO won the ‘Eco-friendly Industrial Vehicle of the Year’ title during the 2020

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National Transportation Awards, celebrated annually by the group Editec. In this fifth edition, the jury of the prize was made up of almost 50 transport companies and professionals from the alternative fuel field.At the ceremony held on January 22 in Madrid and where more than 500 professionals of passenger and freight transport met, RuggeroMughini, Director of the IVECO brand for Spain and Portugal, received the award from Isabel delOlmo, Director of the IDEA (Institute for Diversification and Energy Saving) Department of Transportation.The new IVECO WAY heavy range represents a great shift towards an integrated, economically and environmentally sustainable transport solution. The IVECO S-WAY Natural Power brings together all the advances incorporated in previous generations and adds a new cabin completely redesigned according to the needs of the driver and owner.It also remains the only LNG truck that offers a range of up to 1,600 km for long-distance missions with 460 hp. With this vehicle, fleets will benefit from all the advantages of natural gas, the only low-emission and immediate alternative to diesel fuel in the heavy vehicle segment.

http://www.ngvjournal.com/s1-news/c3-vehicles/the-iveco-s-way-np-receives-the-2020-eco-friendly-industrial-vehicle-award/

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LNG as a Marine Fuel/Shipping

LNG tanker diverted from China in sign of weaker demand

A liquefied natural gas (LNG) tanker that had been heading to China has been diverted, data intelligence firm Kpler and two industry sources said on Tuesday, probably due to lower demand

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for the fuel as businesses are hit by the coronavirus outbreak.The TangguhFoja tanker loaded a cargo at the Tangguh LNG plant in Indonesia last month and had been heading to China’s Rudong terminal in Jiangsu province, Refinitiv shipping data shows.It was diverted towards the South China Sea on Jan. 30 and is now between Vietnam and Borneo, Nathalie Leconte, Kpler market analyst told Reuters, adding the most likely reason for the diversion was the impact on demand due to the coronavirus outbreak.The destination of the vessel has not yet been confirmed.Several LNG buyers in China told Reuters earlier this week they were considering either delaying cargoes or cancelling them by invoking a force majeure.China had already been grappling with a high inventory of LNG as demand had been dented by a milder than usual winter. Chinese demand has also been weakened by a trade war with the United States.

Traders expect the economic impact of the virus to further hit gas demand and cause major delays in LNG cargo deliveries into China, as demand for gas in trucking and industries is expected to slow.

https://www.hellenicshippingnews.com/lng-tanker-diverted-from-china-in-sign-of-weaker-demand/

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Gasum to deliver LNG to Equinor’s new shuttle tankers

Gasum and Equinor have signed an agreement under which Gasum will deliver LNG to Equinor’s new crude shuttle tankers. The supply will commence when the shuttle tankers commence operations during 2020.

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The LNG bunkering deliveries will mainly take place off Skagen, the most northern part of Denmark, and at Mongstad, close to Bergen, Norway. Gasum will utilise its Coralius LNG bunker vessel to perform this service.“We’re happy to support Equinor in its ambition towards cleaner shipping,” says KimmoRahkamo, Vice President at Gasum. “Last week we celebrated the 200th ship-to-ship LNG bunkering performed by Coralius. That was a major milestone for us, increasing not only the numbers but also expanding the geographical area. We now bunker vessels over an area ranging all the way from Rotterdam to the Gothenburg waters.”

https://www.lngindustry.com/liquid-natural-gas/31012020/gasum-to-deliver-lng-to-equinors-new-shuttle-tankers/

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DEPA and EIB sign agreement for construction of LNG bunkering vessel

Public Gas Corporation of Greece SA (DEPA) and the European Investment Bank (EIB) signed an agreement to finance with up to EUR 20 million the construction of a new LNG bunkering vessel for maritime use in

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Greece, which will be based in Piraeus.With a capacity of 3,000 cubic metres of LNG, the vessel, which is the first of its kind in Greece and the Eastern Mediterranean, will be supplied with LNG at Revithoussa LNG terminal and will refuel ships both in Piraeus and other ports in Greece and the wider region, supporting the shift towards green shipping with more environmentally friendly fuels, in line with the new more stringent international regulations.The agreement was signed by KonstantinosXifaras, Chief Executive Officer of DEPA, and Andrew McDowell, EIB Vice-President, in the presence of the President of the Board of Directors of DEPA, Ioannis Papadopoulos, who said:Furthermore, this is a “green” investment, which paves the way for “cleaner” and more competitive maritime transport in the eastern Mediterranean, contributing to the reduction of the country’s environmental footprint, in accordance with the ambitious targets set by the new National Plan for Energy and Climate.”The loan is guaranteed by the European Fund for Strategic Investments (EFSI / Juncker Plan) and will cover 50% of the vessel’s construction cost. For the construction of the vessel DEPA has secured an additional amount of EUR 8.9 million from the European Union under the European Action entitled “BlueHUBS”, which is coordinated by DEPA and aims at expanding the use of LNG in maritime transport in the eastern Mediterranean.

https://seanews.co.uk/shipping/tanker/depa-and-eib-sign-agreement-for-construction-of-lng-bunkering-vessel/[Edited]

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Hyundai to build 2 LNG carriers for Knutsen

Norwegian shipping company Knutsen said that Shell signed separate agreements for four LNG carriers with affiliates of KnutsenLNG, two LNG carriers with Korea Line Corporation and two LNG Carriers with

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Global Meridian Holdings Limited.The LNG carrier owner and ship management  company informed that the 174,000 cbm LNG carriers will be built by Hyundai Heavy Industries and Hyundai Samho Heavy Industries.The new vessels will all be equipped with efficient dual-fuel X-DF engines, boil-off management plants, air lubrication systems and shaft generators for auxiliary power. They will be integrated into Shell’s time-chartered trading fleet.DrGrahaeme Henderson, Vice President of Shell Shipping & Maritime, said: “These high technology ships deliver significant benefits for the Shell fleet by reducing emissions and improving fuel efficiency, and will support Shell’s trading businesses in safely and reliably delivering LNG to our customers around the world.”TrygveSeglem, owner of Knutsen OAS Shipping AS, said: “I am proud to be part of this agreement with Shell. This contract further extends our cooperation with Shell, and ensures that we can provide Shell with state of the art transportation services with these safe, efficient, and lower-emission LNG carriers.”

https://www.marinelink.com/news/hyundai-build-lng-carriers-knutsen-475444[Edited]

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

United Kingdom: Bristol rolls out first biomethane buses of the year

The initial batch of Bristol’s new 2020 biomethane buses are now in service, as part of First West of England’s major investment in improving Bristol’s air quality.

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The ten new double-decker vehicles are converting the M3 metrobus route to biomethane, offering a more than 80% reduction in greenhouse gases (GHG) and a 95% reduction in NOx to help transform the city’s air quality. Other routes across the east of the city are set to benefit from a further 67 biomethane buses in coming months, forming a major part of the company’s efforts to meet Bristol’s Clean Air Zone requirements ahead of 2021. “At First West of England we’re investing to make our buses part of the solution in helping to clean up the city’s air. These 77 biogas buses are not only 95% less polluting but will also, we hope, encourage more people to leave their cars at home and jump on the bus, with an improved level of service on offer,” said James Freeman, Managing Director at First West of England. “As this new fleet takes to the roads this spring, and with the opening of a major biomethane station at Lawrence Hill – 2020 looks set to be an exciting year for First West of England,” he added. Battery electric buses have zero tailpipe emissions, but the GHG emissions from their creation and charging result in the entire process of energy flow – from the mining of the energy source to a vehicle being driven – being 19% higher than a biomethane bus, which uses renewable, sustainable fuel. Biomethane buses also have an equivalent range (250 miles) to diesel buses, which means they can stay on the road for longer.

http://www.ngvjournal.com/s1-news/c3-vehicles/united-kingdom-bristol-rolls-out-first-biomethane-buses/

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UPS, the largest consumer of biogas in the transportation industry

Committed to its sustainability goals, UPS has entered into multi-year renewable natural gas agreements with Kinetrex Energy and TruStar Energy. These two contracts, which will supply

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UPS with up to 80 million gallon equivalents (GEs) of biomethane over the life of the agreements, build on a prior contract in which UPS agreed to purchase 170 million gallons of biomethane, its biggest commitment to date.Over the next seven years, UPS has agreed to purchase 250 million GEs of biomethane total, making the company the largest consumer of this biofuel in the transportation industry. “The use of renewable gas is a very important part of UPS’s strategy to increase alternative fuel consumption to be 40% of total ground fuel purchases by 2025,” said Mike Whitlatch, vice president of global energy and procurement, UPS.“We are using both LNG and CNG as bridging fuels to increase our use of biomethane. This will have a measurable impact as it yields up to a 90% reduction in lifecycle greenhouse gas emissions when compared to conventional diesel. Using this fuel is what will ultimately help UPS meet its 2025 sustainability goals,” he added.The Kinetrex contract will supply UPS with up to 52.5 million GEs of biomethane to be used in its LNG-powered tractor trailer vehicles in Chicago, Columbus, Indianapolis, St. Louis and Toledo. The TruStar Energy contract will supply UPS with up to 27.5 million GEs of biomethane and will be used to fuel the company’s CNG-powered trucks in both Visalia and Moreno Valley, California. Additionally, UPS recently announced plans to purchase more than 6,000 natural gas-powered trucks through 2022. This three-year commitment represents a $450M investment in expanding the company’s alternative fuel and advanced technology vehicle fleet as well as supporting infrastructure.

http://www.ngvjournal.com/s1-news/c1-markets/ups-becomes-the-largest-consumer-of-biomethane-in-the-transportation-industry/

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World’s first liquid hydrogen fuel cell cruise ship planned for Norway’s fjords

Vessel to be retrofitted by 2023 will combine a 3.2MW hydrogen fuel cell with battery storage. A group of Norwegian companies is developing systems to achieve zero-emission shipping

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by combining liquid hydrogen fuel cells with battery storage by 2023, as decarbonisation penetrates further into the transport sector.Bergen-based system integrator Norwegian Electrical Systems (NES) intends to plant a 3.2MW hydrogen fuel cell onto a large vessel currently being designed by Havyard Design for the shipownerHavila.It would be the largest fuel cell ever placed on a major ship, replacing the more frequently used compressed gas. Batteries are planned to store additional energy to make the system fully emissions-free.“The ability to move to a 3.2MW fuel cell that enables the vessel to sail zero-emission for long distances along the coast will be a milestone within green shipping,” said Stein Ruben Larsen, senior vice president sales at NES.“For tourists experiencing the Norwegian coastline it means this vessel will be able to enter the country’s unique ad beautiful world heritage fjords where vessels powered by any form of hydrocarbon that produces CO2, exhaust and other emissions will be banned from 2026.”Norway’s electricity is mostly generated from clean hydropower and some onshore wind, but commercial and cruise ships running on fossil fuels have been polluting coastal communities, and causing substantial CO2 emissions.According to the International Maritime Organisation (IMO), shipping is causing 2.5% of global greenhouse gas emissions, while the EU says the industry is responsible for some 13% of the economic bloc’s emissions in the transport sector.With electricity not being an option, green hydrogen produced from renewables such as offshore wind is seen as an alternative fuel to lower or end emissions in the shipping sector.The Norwegian experience could also be interesting for larger economies like Germany, which in a draft for a national hydrogen strategy seen by Recharge mentions it plans a massive use of hydrogen in difficult-to-decarbonise parts of the transport sector, such as shipping.The vessel being retrofitted for Havila is part of Havyard Group’s FreeCO2ast development project.The project team is also working with chemicals group Linde, and fuel cell supplier PowerCell to obtain an approval in principal for the hydrogen system.Norwegian Electric Systems had started looking into batteries in 2013, but has now expanded its business to look at fuel cell integration to also be able to decarbonise larger ships.

“For some vessels batteries will be feasible,” NES technical vice president TorbjørnHaugland said.“But for larger vessels and longer routes batteries will not have enough power or capacity. Here, we need to look at other solutions, and fuel cells are part of this solution.”“However, we cannot use fuel cells powered by hydrocarbons, so, with the growing acceptance and production of hydrogen, we looked at integration of a liquid hydrogen tank and the required fuel delivery system.”Havila from 2021 on will have four vessels sailing along the Norwegian coast, at first equipped with battery packs and natural gas as fuel.

https://www.rechargenews.com/transition/world-s-first-liquid-hydrogen-fuel-cell-cruise-ship-planned-for-norway-s-fjords/2-1-749070

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Denmark: Scania offers customers trial rentals of biomethane trucks

Anaerobically digested waste can be processed for use as a fossil-free vehicle fuel, and shifting to biomethane operations is presently the quickest, most economical way of reducing

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the heavy transport industry’s carbon footprint. As many customers are still reluctant to make the switch, ScaniaDanmark has come up with an imaginative scheme: it is offering a bio-CNG G 410 tractor for rent.“In Denmark, only 0.5% of trucks run on natural gas. There is a definite potential to substantially raise that share. By offering customers trials through short-term rentals, we hope to demystify gas propulsion. We want to let customers discover for themselves just how good our modern gas trucks actually are and how simple they are to operate,” said ScaniaDanmark’s Sales Director Anton Freiesleben.There are now 17 filling stations in the country for CNG and the only fuel available at these stations is biogas. “So, we can claim more than 100% CO2 reduction. How, you might ask, can we exceed 100%? The answer is that if the organic waste from agriculture had not been anaerobically digested to biogas, it would be spread as fertilizer on farmland, emitting methane which is a much more harmful greenhouse gas than CO2,” he commented

The biomethane truck for rent is a 4×2 tractor that suits the many common transport operations in Denmark. A tractor is more standardized than a rigid truck, which is usually configured for specific transport tasks.

http://www.ngvjournal.com/s1-news/c3-vehicles/denmark-scania-offers-customers-trial-rentals-of-biomethane-powered-truck/

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North America’s largest hydrogen bus station opens in California

A zero-emission fuel is now powering Orange County Transportation Authority (OCTA) buses in Santa Ana, California, thanks to the largest hydrogen transit fueling station in North America,

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which was jointly developed by Trillium, Air Products, the Center for Transportation and the Environment (CTE), OCTA, California Air Resources Board (CARB), South Coast Air Quality Management District (SCAQMD), Ballard Fuel Systems and New Flyer.The refueling station, located at OCTA’s bus depot, is equipped with Air Products’ SmartFuel® hydrogen fueling technology, design, and equipment. OCTA’s current hydrogen fuel cell fleet is comprised of 10 New Flyer buses, but the new facility has a bus fueling capacity for up to 50 buses. In addition, the station can fill up a transit bus in six to 10 minutes, similar to diesel or CNG bus filling rates, making this the only zero-emission fuel choice that allows fleets to operate as usual.

Trillium and Air Products will operate and maintain the station. “Trillium is excited to open this hydrogen fueling station, which will allow Santa Ana buses to run efficiently and produce no tailpipe emissions,” said JP Fjeld-Hansen, vice president of Trillium. “We appreciate that so many customers are trusting us to build their clean, renewable energy fueling systems. As more consumers demand clean, renewable energy, we stand ready to help them tackle these opportunities.”

http://www.ngvjournal.com/s1-news/c4-stations/north-americas-largest-hydrogen-bus-station-opens-in-california/ [Edited]

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