NGS’ NG/LNG SNAPSHOT – July 2019, VOLUME I

National News Internatonal News

NATIONAL

City Gas Distribution & Auto LPG

Govt's EV push may burn city gas distribution companies ||Steep decline in registration of CNG-powered rickshaws – Ernakulam || GAIL plans 100 CNG refill stations in Bengaluru ||Gujarat to get 300 more CNG stations || 406 districts to get CNG, PNG infrastructure as Energy Ministry aims to supply clean energy for 70% Population || UP CM wants more CNG stations in state ||CNG car rebate on anvil to boost Capital’s lungs || Ambala, Thanesar to get CNG, PNG facilities

Govt’s EV push may burn city gas distribution companies

Government’s plans to phase out fossil fuel-driven vehicles starting from 2023 may burn city gas distribution companies and puts planned investments of more than Rs 1.2 lakh crore at risk. Niti Aayog, which is preparing policies for accelerated penetration of EVs in the country, has reportedly proposed that only electric vehicles be sold after 2030.

read more

The proposed phase-out timeline varies for different categories of fossil fuel-driven vehicles. For three-wheelers April 2023, April 2025 for two-wheelers below 150 cc, and April 2026 for taxis. For passenger vehicles, 2030 is the proposed deadline. The proposed EV policy has not only unnerved automakers but also has scared companies that have won city gas distribution licences in recent auctions, the Economic Times said in a report. “This will be disastrous for the city gas business,” the business daily quoted as saying an executive at a state-run city gas company that has licenses for several areas. Adoption of EVs will impact sale of CNG, which is the most profitable segment of city gas distributors. Indraprastha Gas and Mahanagar Gas (MGL), which have city gas distribution licences for Delhi and Mumbai respectively get three-fourth and two-third of their revenues from CNG sale respectively. Gujarat Gas, which operates in much of industrialised Gujarat, sells a fifth of its gas volume as CNG, the business daily mentioned. Worth mentioning here is three-wheelers, taxis, city buses and private car owners are the main consumer of CNG, which is also economical. Adoption of EVs will drastically impact CNG sale, raising a question mark on the revenue outlook of city gas distributors. The ET report citing executives said it would be hard to build the city gas business without the most profitable segment of CNG. Moreover, a typical new license area comprises two districts, which means companies need to invest more to reach out to customers, unlike say in densely-populated places like Delhi or Mumbai, they said.

https://www.timesnownews.com/business-economy/industry/article/govts-ev-push-may-burn-city-gas-distribution-companies/444924

show less

Steep decline in registration of CNG-powered rickshaws

The registration of CNG powered autorickshaws, which was introduced in the city last year with an aim to phase out autos using fossil fuels, has come down drastically

read more

due to the lack of enough refuelling outlets. There are only five CNG pumps in the district. The first outlet was opened in March last year. Though 194 CNG autorickshaws were registered with Ernakulam RTO in January this year, the number came down to 162, 133 and one in February, March and April respectively. “No CNG autorickshaws were registered with the office in May and June so far. A total of 1,131 CNG autos have been registered so far with the RTO,” said an MVD official. Out of 1,131, most of the vehicles were converted from diesel to CNG. Decline in the number of CNG autorickshaws is causing a dent in the efforts of the government, which decided to restricting grant of new permits only for electric and CNG autorickshaws to bring down air pollution. Autorickshaw drivers said they had to wait in long queues at the outlets to refill the fuel. “The decline in the number of diesel-powered autos converting into CNG is due to the lack of adequate number of CNG pumps. CNG autos have good mileage than diesel-powered autos. We get 35-40km mileage per kilogram of CNG. While using diesel, the mileage will be 30-35km,” said Francis B J, a CNG auto driver. He also said the rate of CNG skyrocketed in four months. “Companies increase the CNG rate exorbitantly. Currently, CNG costs Rs 56.50 per kg  an increase of Rs 3.50 in four months,” he said. Meanwhile, the Indian Oil Corporation Limited (IOCL), which owns the five CNG refuelling stations, said they plan to add more outlets in the district. “We will start two outlets at Tripunithura, one at Karingachira and another one at Pettah. The pump at Karingachira will be commissioned in 15 days. Our plan is to start eight to 10 outlets in the district. But we face issues in laying pipeline in the corporation limit,” said an IOCL official.

https://timesofindia.indiatimes.com/city/kochi/steep-decline-in-registration-of-cng-powered-rickshaws/articleshow/69934082.cms

show less

GAIL plans 100 CNG refill stations in Bengaluru

Thirteen new CNG stations by GAIL Gas are expected to become operational in Bengaluru in a few months, said the company’s Chief General Manager (CGD) Vivek Wathodkar.

read more

This would take the total number of such refill stations by GAIL in the city to 22. Speaking at the Elite Fleet Operators Meet on June 18 at Taj Vivanta on MG Road, Wathodkar said the company was planning to set up 100 CNG stations in Bengaluru in the next 2-3 years, and highlighted the necessity of CNG. The meet was organised by Maruti Suzuki India Limited in association with GAIL Gas Limited, to highlight the significance of CNG as a fuel of choice for passenger vehicles in the city. A Balasubramanian, General Manager (Marketing) at GAIL Gas, enlightened fleet owners on the green credentials, safety and affordability of CNG. It was revealed at the meet that the running cost of a CNG auto was about Rs 1.17/km compared to Rs 2.06/km for LPG auto, resulting in savings of about 42% on current prices. Using CNG over LPG can save Rs 5600 per month, which would cover the additional cost of buying CNG auto over LPG auto in just two months. Similarly, the running cost of a CNG car is about Rs 2.15/km compared to Rs 2.50/km for a diesel car, resulting in savings of about 16% on current prices. Thus, a CNG car can fetch savings of Rs 6500 per month over a diesel car because of lower fuel and maintenance costs, and lower EMI per month. Maruti Suzuki India Limited Commercial Business Head Thomas Cheriyan , Regional Manager Vishal Amla, GAIL Chief General Manager (Marketing) Anupam Mukhopadhyay and V K Shukla (Advisor) were present at the occasion.

http://bengaluru.citizenmatters.in/gail-plans-100-cng-refill-stations-bengaluru-35411

show less

Gujarat to get 300 more CNG stations

The state govt has come up with a ‘CNG Sahbhagi Yojana’ under which, existing operators of CNG stations of GGCL and SGL will not be required to adhere to any additional compliances.

read more

The state will get another 300 CNG stations in the next two years. Norms to set up new CNG stations of the Gujarat Gas Company Ltd and Sabarmati Gas Ltd have also been liberalised. The one-time deposit to avail a connection of Piped Natural Gas (PNG) for families having an annual income of Rs 2 lakh has also been relaxed. The decisions were taken at a high-level meeting chaired by Chief Minister Vijay Rupani in Gandhinagar. According to a statement released by the state government, another 300 CNG refilling stations will come up in the next two years against 542 stations that have come up in the state in the past 23 years. The Gujarat government owns the two companies. The number of users of PNG will also be increased from existing 13.5 lakh to about 18 lakh by 2022. For this, the one-time deposit for families having an annual income of up to Rs 2 lakh has been reduced to Rs 1,000 and those having an annual income above Rs 2 lakh will have to give a deposit of Rs 5,000. The consumption of natural gas in the state has increased from 40 lakh standard cubic meter per day (SCMD) to 80 lakh SCMD in a year. The state government is promoting CNG and PNG as green fuels in order to reduce carbon emissions. Of the existing 542 CNG stations in the state, 330 are of GGCL and SGL. Gujarat has close to 31% of nearly 1,762 CNG stations across the country.

https://www.dnaindia.com/ahmedabad/report-gujarat-to-get-300-more-cng-stations-2765063

show less

406 districts to get CNG, PNG infrastructure as Energy Ministry aims to supply clean energy for 70% Population

Minister of Petroleum and Natural Gas Dharmendra Pradhan has said that the government is expanding infrastructure for compressed natural gas and piped natural gas to 406 districts, the Business Standard reports.

read more

“The CNG and PNG infrastructure will be provided in 406 districts. After expanding these facilities, 70% of the population will get clean energy,” the minister said while answering a Question Hour query in Lok Sabha. “Till 2014, only 66 districts of the country were covered under CNG and PNG infrastructure. In the last five years we worked to strengthen this infrastructure in a planned way,” the minister said explaining their plans for the energy sector in the lower house. He added the infrastructure is being expanded into other cities as well. Pradhan also informed the house that over the next eight years, the government would be investing Rs 1.20 crore in the energy sector, the BS report adds.

https://swarajyamag.com/insta/406-districts-to-get-cng-png-infrastructure-as-energy-ministry-aims-to-supply-clean-energy-for-70-per-cent-population

show less

UP CM wants more CNG stations in state

Uttar Pradesh Chief Minister Yogi Adityanath met Union Petroleum Minister Dharmendra Pradhan here Tuesday and demanded setting up more compressed natural gas (CNG) and piped natural gas (PNG) stations in the state to help check air pollution.

read more

Adityanath also assured Pradhan that the state government would extend all cooperation in mixing ethnol with fuel so as to lessen the import of crude, a statement from the UP government said. The CM urged Pradhan to allot more petrol pumps on the Agra-Lucknow Expressway for the benefit of the people, it said. Earlier in the day, Adityanath had also attended the felicitation of J P Nadda at the BJP headquarters here after being made the party’s working president.

https://www.business-standard.com/article/pti-stories/up-cm-wants-more-cng-stations-in-state-119061801256_1.html

show less

CNG car rebate on anvil to boost Capital’s lungs

In yet another relief aimed at middle class voters, the Aam Aadmi Party (AAP) Government is going to grant 50% concession in the registration and road tax charges for Compressed Natural Gas (CNG) factory fitted private cars.

read more

The proposal is a part of Delhi Government’s “Green Budget” to recreate breathing space in the city and to reduce pollution level by promoting the CNG usage. The project was proposed by the Government in the Budget 2018-19 along with other projects such as 1,000 electric buses, 900 electric feeder buses for last mile connectivity, edge-to-edge paving and landscaping of Public Works Department (PWD) roads and others. Under this Green Budget project, 26 anti-pollution schemes have been listed from various departments of the Delhi Government. According to the official sources, the finalisation of the scheme is at the last stages and will be placed in the upcoming Cabinet meeting which is likely to be held by end of this month. If everyone converts their vehicles to CNG, the city will be free from hazardous air pollution, said Jasmine Shah, the chairperson of Delhi Dialogue Commission (DDC). The Government is already promoting CNG vehicles and is taking measures to curb pollution level in the city, said Jasmine Shah, the Chairman of Delhi Dialogue Commission (DDC) adding that the people have confusion about the scheme on which I would like to clear that this scheme will be only for the private car owners and the remaining cab drivers and taxi company can only use CNG fuel.”  “According to the data compiled by the Delhi pollution Control Committee (DPCC), concentration of a particulate matters in Delhi’s air pollution has declined by 20 per cent. Data shows that average PM volume in the air in 2011 was 277, which increased to 368 in 2012. Since then, it has been continuously rising, and in 2018 it has again reduced to 277. Similarly, the quantity of PM 2.5 was 136 in 2011 which became 164 in 2012. it is registered 128 in the year 2018. Another polluting element NO2, which was 71 in 2011, increased to 90 in the next years but in 2018 came down to 50 with various efforts of this government. Thus, this scheme will also help to curb pollution,” said another official. He added that it was stated by the Deputy Chief Minister in this year’s Delhi Budget speech.

https://www.dailypioneer.com/2019/page1/cng-car-rebate-on-anvil-to-boost-capital—s-lungs.html

show less

Ambala, Thanesar to get CNG, PNG facilities

Residents of Ambala City and Thanesar in Kurukshetra districts are set to get the double benefit of piped natural gas (PNG) and compressed natural gas (CNG)

read more

The work to lay the PNG pipeline has already begun in the two cities, while 12 petrol pumps (six each in the two districts) have been identified that will supply CNG. Jugesh Kumar, project in-charge of the city gas station project, said: “The PNG is more economical compared with the LPG and it will reduce the burden on gas agencies. Another benefit is it will be readily available and the bill will be raised on the basis of the usage. The customer can track the usage in a meter, which will be installed in every household. It is cheaper than the LPG and safer as well.” As for the CNG pipeline, he said a station was being built in Ambala’s Jalbera village, while the work to lay the pipeline had started in Sectors 10, 9, 8 and 7 of Ambala City. The remaining parts of the city and Cantonment areas will be covered later. The plan is to cover 1 lakh households by the end of 2021. In Thanesar, the work of laying the CNG pipeline has started in Sectors 2, 3, 4, and 8. A plant will be set up on Pipli road. A site has been identified and efforts are being made to get it on lease. A CNG pump is ready in Shahabad (Kurukshetra district) and it is likely to start operations within a month. Kumar said, “The cost of CNG is lesser than that of diesel. The vehicle’s mileage will not be affected; rather the consumer will get the same mileage at just one-third the cost of petrol or diesel.”

https://www.tribuneindia.com/news/haryana/ambala-thanesar-to-get-cng-png-facilities/792200.html

show less

City Gas Distribution & Auto LPG

Electric Mobility

Natural Gas / Pipelines / Company News

Policy Matters/Gas Pricing/Others

LNG Development and Shipping

 

GO TOP

SNAPSHOT: NATIONAL

Electric Mobility

Electric buses are a hit among PMPML users || Siam urges govt to promote alternate fuel till EVs gain prominence || Revolt RV400-India’s first electric motorcycle launched today || EV push may leave no tanks to fill at CNG pumps || Government likely to shun NITI Aayog EV-only proposal

Electric buses are a hit among PMPML users

Aligning to the popular opinion, 25 electric buses that were procured by the Pune Mahanagar Parivahan Mahamandal Ltd (PMPML) have turned out to be a hit among the passengers, while also churning out a better profit for the transport body compared to those running on diesel and compressed natural gas (CNG).

read more

According to observations made by the Pune Smart City Development Corporation Ltd (PSCDCL) since February, it was noted that the ninemetre- long electric buses have achieved an around 20 per cent rise in revenue over the old buses. Also, a positive impact was observed on the pollution emitted by public transport buses. Talking about the development, Nayana Gunde, PMPML’s chairman and managing director (MD), said, “The e-buses have surely made a difference to the organisation in terms of profitability. People prefer using these buses over the normal ones. Ever since we purchased these 25 buses they have turned a higher profit than the old buses and also have experienced a higher demand.” Changes have been seen since the implementation of the smart city project and inducting electric buses into the fleet of the PMPML was one of the first initiatives. An official working with PSCDCL told Mirror, “The electric buses were procured by PMPML under the smart city initiative and we have been following up with them since, while also making an effort to ensure that the remaining buses are delivered soon.” “For the past few months, after regular inputs from the transport body, we noticed that there have been changes in the pollution and sound levels. The change was noticed on a daily basis compared to other buses which run on diesel and CNG, ” the official added. However, the on-ground scenario shows that PMPML’s ridership has slipped by almost 55,000 passengers in comparison to 2017-2018 numbers, despite adding new buses. In its defence, the PMPML has stated that the ridership has decreased due to cab aggregators.

https://punemirror.indiatimes.com/pune/civic/electric-buses-are-a-hit-among-pmpml-users/articleshowprint/69898534.cms?prtpage=1

show less

Siam urges govt to promote alternate fuel till EVs gain prominence

As the adoption of electric mobility across the country is still some years away, the Society of Indian Automobile Manufacturers (Siam) on Tuesday (June18), through its white paper, urged the union government to encourage usage of alternate fuels

read more

like compressed natural gas (CNG), liquefied natural gas (LNG), methane, bio diesel and others to reduce dependence on imports of fossil fuel. According to the lobby group, production of bio-fuels is still evolving in India, therefore technological collaboration from countries like the United States, Canada and Brazil would be relevant in India. Besides production of bio- fuels, research will be required in the areas of combustion development, compatible material development, etc. While Industry will focus on the application development of vehicles, material compatibility studies academia will be required to work on combustion research, emission development, besides studies to check the environmental impact of fuels, the while paper mentioned. The union government has already been urging vehicle manufacturer to produce vehicles that run on LNG and CNG and will also help in setting up 10,000 CNG stations in the next ten years. Public sector units like Gas Authotrity of India Ltd (GAIL) has been in talks with vehicle manufacturers across segments to supply LNG for their vehicles in different parts of the country. While electrification and hybridization of fleet will be required to lower the usage of fuel for automotive purposes, the National Objectives of Energy Security, lowering emissions can be supported by the augmentation and promotion of alternative fuels,” the white paper notes. The automobile manufacturers through the white paper asked for a 5% GST imposition on vehicles that would run on bio-fuels compared to 18% at present and viabilty gap funding (VGF) should be provided to reduce the high cost of technology. The automobile manufacturer also urged the government to reduce taxes on production and distribution infrastructure of alternate fuels in the coming years.

https://www.livemint.com/auto-news/siam-urges-govt-to-promote-alternate-fuel-till-evs-gain-prominence-1560871138589.html

show less

RV400-India’s first electric motorcycle to be launched

It comes with a swappable battery that can be ordered through the company’s mobile phone application and can be delivered to the said the location at your convenient time. With the help of a mobile phone application, you can locate your nearest battery swapping station. Swapping of the battery takes only 30 seconds.

read more

The app keeps a tab on the swap order history. It has some unique features such as geofencing, anti-theft and geotagging. The application also gives the information about the available range, total riding hours and real-time diagnostics. It also gave an option of artificial engine sound that can be switched on or off by the user. The application also shows information about the sound. Talking about features, it has similar part as a conventional motorcycle, upside down forks in the front and a mono shock at the back. The bookings of the bike, Revolt RV400 will start on June 25, 2019 in Delhi. It can also be booked on the company’s website through Amazon. The price is still to be disclosed but we can expect a price of around 1 lakh ex-showroom.

Source: electricVehicles.in

show less

EV push may leave no tanks to fill at CNG pumps

Mainstay segment under threat from Niti Aayog proposals, which may slow Rs 1.2 lakh crore investment plans by new distribution licence holders and delay project commitments.

read more

The government’s plan to popularise electric vehicles (EVs) and phase out the sale of fossil fueldriven vehicles beginning 2023 can put at risk the planned investments of more than Rs 1.2 lakh crore in city gas distribution business, company executives said. Niti Aayog, which is leading the policymaking effort for accelerated penetration of EVs in the country, has reportedly proposed that only electric vehicles be sold after 2030. The proposed phase-out timelines for different categories of fossil fuel-driven vehicles are: April 2023 for three-wheelers, April 2025 for twowheelers below 150 cc, and April 2026 for taxis. The EV policy drive, which has unnerved automakers, is also scaring many companies that have won city gas distribution licences in recent auctions. “This will be disastrous for the city gas business,” said an executive at a state-run city gas company that has licenses for several areas. The EV push has created confusion among new licensees and may lead to companies missing work programme targets they had quoted to win licences and slow down investments in the sector, multiple executives at city gas firms said. “With such bleak future for the industry, banks will not lend for city gas projects,” said another executive. Executives did not want to be named for the fear of annoying the government. Indian Oil, Hindustan Petroleum, Bharat Petroleum, Adani Gas and Manila-based AG&P did not respond to ET’s emailed query on how the government’s EV push would impact them. In just about a year, the downstream regulator has awarded licences for 136 geographical areas covering about half of India’s population. To win licences, the 20-odd state-run and private companies have pledged to build 7,200 compressed natural gas (CNG) stations, connect 3.5 crore homes with gas pipelines, and lay 156,000 inch-km of pipeline by March 2029. This, as per the regulator, would require an investment of ₹1.2 lakh crore. Expansion plans by older licensees would require additional investment. EV’s invasion would hurt sale of CNG, city gas distributors’ most profitable business. CNG makes up three-fourths of the sales revenue of Indraprastha Gas (IGL) and twothirds of Mahanagar Gas (MGL). IGL and MGL mainly operate in Delhi and Mumbai, respectively. Gujarat Gas, which operates in much of industrialised Gujarat, sells a fifth of its gas volume as CNG. Three-wheelers and taxis are primary customers of the economical fuel besides city buses as private car owners prefer not to wait in long lines outside CNG stations for refilling. Two-wheelers mainly use petrol and their conversion to electric is unlikely to affect city gas players. Executives said it would be hard to build the city gas business without the most profitable segment of CNG. Moreover, a typical new license area comprises two districts, which means companies need to invest more to reach out to customers, unlike say in densely-populated places like Delhi or Mumbai, they said.

https://tech.economictimes.indiatimes.com/news/corporate/ev-push-may-leave-no-tanks-to-fill-at-cng-pumps/69982824

show less

Government likely to shun NITI Aayog EV-only proposal

The proposal of government think tank NITI Aayog to fully transit from internal combustion engines (ICE) towards electric vehicles (EV) by 2030 has come up with resistance from within the government.

read more

Sources in multiple ministries said issues such as coming of age of newer and more efficient technology in future, the rise of alternative fuels such as hydrogen cell, and problems with total phasing out of an industry dependant on petroleum fuel technology, would have to be weighed. They said the government would support the use of alternate technologies and EVs to cut down India’s oil import bill rather than opting for a 10-year plan to go fully electric. Moreover, the government is also concerned over the large employment base of the automobile sector, which may go down significantly if ICE engines are phased out totally. “We need to be technology neutral rather than dogmatic over one particular technology. Science may make solar or fuel cell powered cars cheaper tomorrow,” officials said. NITI Aayog’s proposal is that only EVs should be sold after 2030 to increase usage of clean-fuel technology and cut India’s dependency on oil imports. The new proposal to bring in only EVs came days after the think tank had proposed switching of all vehicles below 150CC to electric by 2025, which has irked the auto industry with many manufacturers calling the proposal unrealistic and impractical. Industrial body SIAM, which recently raised concerns on the NITI Aayog proposal to have only electric two-wheelers post 2025, recently circulated a white paper on alternative fuels in the country in which it asks the government to look at CNG, LNG, LPG, Hydrogen and biofuels like ethanol, methanol and bio-diesel as alternative fuels and roll out infrastructure with a firm plan for next five years and tentative plan for next 10 years. The government proposed to waive registration charges for EVs to boost adoption of environment-friendly vehicles. The country plans high penetration of such vehicles by 2030.

http://www.newindianexpress.com/business/2019/jun/20/government-likely-to-shun-niti-aayog-ev-only-proposal-1992760.html

show less

GO TOP

 

SNAPSHOT: NATIONAL

Natural Gas / Pipelines / Company News

GAIL project finally getting ready; Kochi-Koottanad stretch opened || HC upholds rise in gas transmission charges || GSPC extends stake sale deadline for third time || Hold Gail (India), scale of tariff revision was a disappointment || Cairn Oil and Gas close to awarding project management service contract for 41 blocks

GAIL project finally getting ready; Kochi-Koottanad stretch opened

The prestigious Kochi-Koottanad-Bengaluru-Mangaluru pipeline project (KKBMPL), which had been bogged down by land acquisition delays and protests in Kozhikode and Malappuram over fears of displacement of residents, is finally getting ready.

read more

In a big first step, the Kochi-Koottanad (Thrissur-Palakkad border) stretch covering 96 km, which comes as part of the Phase-II of the project, was commissioned quietly on Monday, while the work on Koottanad-Kozhikkode-Mangalore stretch, covering about 350 km, is expected to be over by next month or early August. Tony Mathew, general manager (construction), GAIL, which is executing the project, said only four km out of the 444-km pipeline from Kochi to Mangalore remains to be completed. The natural gas pipeline is runs through the districts of Ernakulam, Thrissur, Palakkad, Malappuram, Kozhikkode, Kannur and Kasaragod in Kerala; Coimbatore, Erode, Salem and Dharmapuri in Tamil Nadu; and Dakshin Kannada, Chamrajnagar, Mandya and Bengaluru in Karnataka. The Phase-I of the project, the around 41 km pipeline was commissioned back in 2013 to transport gas from Kochi LNG Terminal to the consumers in and around Kochi city, including industrial units such as the public sector FACT. In the Phase-I, 35 lakh cubic metre (3.5 MMSCMD) of gas is being supplied to various consumers in and around Kochi city. Mathew said the Rs 2,915 crore project, which first began back in 2009, was to be completed by March 2013, as per the earlier plan. The delay and the increase in land prices has escalated the project cost. Mathew said the total project cost is now estimated at Rs 5751 crore-Rs 3226 crore for Kochi-Mangalore; and Rs 2525 crore for Koottanad to Bangalore. He said out of the 435 km from Koottanad-Bangaluru, works were in progress on the 94 km stretch from Koottanad to Walayar (Kerala border) and 48-km on the Bengaluru to Hosur stretch. “Work in the Tamil Nadu portion has not started yet,” the GAIL general manager said.

“We hope to complete the Palakkad-Bengaluru work by December this year,” Mathew said.

http://www.newindianexpress.com/states/kerala/2019/jun/21/gail-project-finally-getting-ready-kochi-koottanad-stretch-opened-1993070.html

show less

HC upholds rise in gas transmission charges

The Gujarat high court has lifted its stay on the Petroleum and Natural Gas Regulatory Board’s decision to hike gas transmission charges and ordered Torrent Power Ltd to pay the charges accordingly since 2012.

read more

A part payment was made by the power company, but with the revision of gas transmission tariff in December 2018, the HC stayed the recovery by the state owned Gujarat State Petronet Ltd (GSPL) as well as payment of increased rate for gas transportation. With the interim order by the HC upholding the Board’s decision to raise transmission charge to Rs 34 per MMBtu, the GSPL can recover the pending amount from Torrent and levy increased charges. GSPL’s advocate Aspi Kapadia said that the power company may pass over the burden to end consumer by raising electricity charges, but it will first have to obtain mandatory permission from the Gujarat Electricity Regulatory Commission to increase power tariff for consumers, though there could be a marginal rise in tariff. The HC has also lifted a stay on the Board’s tariff order with regard to South Gujarat Small Gas Consumers Association, which draws gas from GAIL (India) Ltd. Torrent has challenged the Board’s decision to increase gas transportation charges through its December 2018 tariff order by contending that the Board cannot raise charges at its whims, but this exercise can be done only through regulations.

https://timesofindia.indiatimes.com/city/ahmedabad/hc-upholds-rise-in-gas-transmission-charges/articleshowprint/69950150.cms

show less

GSPC extends stake sale deadline for third time

Following a lukewarm response, Gujarat State Petroleum Corporation (GSPC) has for the third time this year extended the bid-submission deadline for 12 hydrocarbon blocks it has put up for auction.

read more

The Gujarat government company, which is on a debt reduction path, is banking on central PSUs such as Oil and Natural Gas Corporation Ltd, GAIL (India) Ltd, Hindustan Petroleum Corporation Ltd (HPCL), and Bharat Petroleum Corporation Ltd (BPCL) to participate in the bidding for these onshore and offshore blocks, said two state government officials privy to the matter. These companies are likely to get board approval for bidding in these blocks next month after which they will submit their bids, the officials said. “The last date for bid submission for the GSPC blocks has been extended from June 17 to July 17,” said aGujarat State Petroleum Corporation official. Officials said there are at least ten companies, including one based in Singapore, that have firmed up their plans to participate in the bidding. Gujarat Energy Research and Management Institute, GSPC’s energy research arm, had on March 1 floated a tender to farm out two operating and 10 non-operating exploration and production fields. Of the 12 fields, GSPC is the operator in two of them, Unawa and Miroli, while it is the non-operating partner in the rest. Of these 10 blocks, five are operated by ONGC, three by GNRL and one each by Sun Petro and Australian oil explorer Oilex. This is not the first time that GSPC has tried to sell off its stake in its exploration and production blocks to raise much needed cash. In July 2016, it had unsuccessfully attempted to sell its stake in 20 blocks. GSPC holds participating interest in 21 onshore and offshore exploration and production blocks/fields.

https://timesofindia.indiatimes.com/city/ahmedabad/gspc-extends-stake-sale-deadline-for-third-time/articleshow/69833695.cms

show less

Hold Gail (India), scale of tariff revision was a disappointment

According to PNGRB regulations, instead of separate tariffs for the two pipelines, an integrated tariff will be levied on combined volumes.

read more

Petroleum and natural Gas Regulatory Board (PNGRB) has approved the long-pending tariff revision for HVJ/HVJ expansion pipelines, thereby taking care of the tariff revisions until FY24. Key highlights: (i) Blended tariff at Rs 1.7/scm is 11.5% lower than our estimate of Rs 2/scm, but 0.4% higher than the earlier tariff; (ii) however, this is 58% below GAIL’s submission (Rs 4.1/scm) due to much lower tariffs for the HVJ pipeline; (iii) with the two pipelines contributing over 60% to GAIL’s overall throughput, the tariff revision prompts a 9.9%/9.3% cut in FY20/21e transmission Ebitda; and (iv) however, given the PNGRB’s volume assumptions of 80mmscmd (currently 65mmscmd), we believe GAIL is likely to appeal the PNGRB order. We are revising down the TP by 4.4% to Rs 367/share due to a 4.7%/4.2% cut in FY20/21e Ebitda. Retain Hold as the stock is fairly priced at 5.3x FY21E EV/Ebitda. Tariff hike misses estimate; also lower than GAIL submission. Integrated tariff will drive future revenue. The hike of just 0.4% is 20% lower than what we had factored in. The revised tariff also significantly undercuts the tariff submitted by GAIL. Over 35% of the deviation between GAIL’s submission and the approved blended tariff is due to the PNGRB’s notably higher volume assumption of 80 MMSCMD vis-a-vis current volume of 65 MMSCMD. Another 24% of deviation is attributable to non-acceptance of a certain portion of the past and future opex submitted by GAIL. Consequently, we believe GAIL is likely to appeal the PNGRB order. Given the disappointing tariff revisions, we expect GAIL’s earnings to remain fairly muted at a 13.8% CAGR over FY19–22e. A potential split and sale of the marketing division provides an upside risk though. Retain Hold with a revised TP of Rs 367/share with valuations at 6.2x FY21e EV/Ebitda fully pricing in earnings growth. GAIL has 5 approved (by MoPNG before the PNGRB came into existence), un-built pipelines; which have been assured 12% post-tax ROCEs with uncapped leverage, while all future pipelines will have bidding based tariffs. This single-window opportunity to take advantage of higher tariffs (due to the high, assured returns) during a strong volume growth period, provide upsides to GAIL’s earnings. Rising oil price, stabilisation of its expanded petrochemical capacity bode well. Key risks: (i) Tariff reduction in existing pipelines may be higher than estimated. (ii) Rise in crude prices may increase under-recovery sharing burden on GAIL.

https://www.financialexpress.com/market/hold-gail-india-scale-of-tariff-revision-was-a-disappointment/1609499/

show less

Cairn Oil and Gas close to awarding project management service contract for 41 blocks

New Delhi: Vedanta’s upstream arm, Cairn Oil and Gas, is at an advanced stage of awarding integrated project management service contract for all 41 blocks it won under India’s Open AcreageLicensing Policy (OALP), 

read more

Ajay Kumar Dixit, new chief executive officer (CEO) of Cairn Oil and Gas, told ETEnergyworld.
The company plans to spend $500 million to carry out exploration work for the 41 blocks it won under OALP-I. It has already approached the Environment Ministry for grant of environment clearances for these blocks. The company’s acreage increased to 55,000 square kilometre from 5,000 square kilometre after bagging 41 blocks under OALP-I  According to Dixit, the firm has received interest from more than 10 global exploration and production servicing firms for end-to-end integrated project management and expects to award 75 per cent of contracts within the next six weeks. Cairn Oil and Gas has in total won 53 blocks under OALP-I, OALP-II and in the second round of Discovered Small Field.  According to Dixit, the company has firm plans to invest close to $3 billion to increase the firm’s total production to about 270,000 barrels of oil equivalent by the end of fourth quarter from close to 180,000 barrels of oil equivalent currently.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/cairn-oil-and-gas-close-to-awarding-project-management-service-contract-for-41-blocks-ajay-kumar-dixit-ceo/69841607

show less

GO TOP

SNAPSHOT: NATIONAL

Policy Matters/Gas Pricing/Others

Sources say Gujarat Gas may cut gas prices for Morbi cluster by 10% || Major energy reforms approved to enhance exploration activities: Pradhan || No takers for coal-bed methane blocks under open acreage licensing policy

Sources say Gujarat Gas may cut gas prices for Morbi cluster by 10%

Gujarat Gas Ltd is mulling a 10% price cut for the natural gas it supplies to Morbi–India’s largest ceramic manufacturing cluster–from next month to prevent tile makers from shifting to alternate fuels such as propane, which are available at cheaper rates, company sources said.

read more

At present, Gujarat Gas supplies natural gas to ceramic makers in Morbi for around 30 rupees per SCM. The prices are benchmarked to that of its nearest competitor fuel–propane, which sells for around 32 rupees per SCM. However, with crude prices falling globally, propane is now available at 28 rupees per SCM.”The prices of propane are likely to drop to less than 24 rupees per SCM soon,” a source said. Gujarat Gas had seen a spurt in demand for natural gas supply to Morbi–from 2.5 MMSCMD to 6.5 MMSCMD–following a National Green Tribunal order earlier this year that asked ceramic units using coal gassifiers to shut down. The tile makers subsequently switched to natural gas as global prices of liquefied natural gas were lower than those of alternate fuels such as propane. State-owned GAIL (India) Ltd is also exploring possibilities of entering the lucrative market, which is expected to grow to 8.5 MMSCMD if the units are able to strike a deal with US firms to divert business worth 200 bln rupees from China following the trade conflict between the two countries. Gujarat Gas currently distributes about 8.5 MMSCMD of natural gas through its 23,200-km pipeline network, and 344 compressed natural gas stations, to 13.55 mln households, 200,000 vehicles, and 3,540 industrial customers across the state. Morbi currently accounts for almost 80% of its total gas sales.”The margins for Gujarat Gas before the National Green Tribunal order were about 20 paise per SCM. In the past two months, the margins have hit highs of up to 10 rupees per SCM. A cut of 20% in the margin could hurt in the short term, but help retain its biggest market,” an industry source said.

 http://www.cogencis.com/newssection/sources-say-gujarat-gas-may-cut-gas-prices-for-morbi-cluster-by-10/

show less

Major energy reforms approved to enhance exploration activities: Pradhan

Petroleum Minister Dharmendra  Pradhan said that the Government in February, 2019 has approved major reforms in exploration and licensing policy to enhance exploration activities, attract domestic and foreign investment in unexplored/unallocated areas of sedimentary basins and accelerate domestic production of oil and gas from existing fields.

read more

The Minister in a written reply to Lok Sabha said, “The policy reforms, inter alia, aims to boost exploration activities with greater weightage to work programme, simplified fiscal and contractual terms, bidding of exploration blocks under Category II and III sedimentary basins without any production or revenue sharing to Government.” “Early monetization of discoveries by extending fiscal incentives, incentivizing gas production including marketing and pricing freedom, induction of latest technology and capital are other decisions taken to enhance energy sector,” added the Minister.Other reforms include more functional freedom to National Oil Companies for collaboration and private sector participation for production enhancement methods in nomination fields, streamlining approval processes and promoting ease of doing business including electronic single window mechanis. He also said that so far, Petroleum and Natural Gas Regulatory Board (PNGRB) has authorised 228 Geographical Areas (GAs) for development of CGD network across country till 10th CGD Bidding Round. A total of 298 districts have been covered under 9th and 10th CGD Bidding Round for supply of PNG and CNG.

 https://www.dailyexcelsior.com/major-energy-reforms-approved-to-enhance-exploration-activities-pradhan/

show less

No takers for coal-bed methane blocks under open acreage licensing policy

While the ministry of petroleum and natural gas has recommended to the empowered committee of secretaries (ECS) names of top bidders for 32 hydrocarbon blocks under Open Acreage Licensing Policy (OALP) rounds II and III,

read more

there seems to be no takers for coal-bed methane blocks. While the ministry of petroleum and natural gas has recommended to the empowered committee of secretaries (ECS) names of top bidders for 32 hydrocarbon blocks under Open Acreage Licensing Policy (OALP) rounds II and III, there seems to be no takers for coal-bed methane blocks. There were eight onland, five shallow water and one ultra-deepwater blocks under auction for OALP-II, a total of 14. Under OALP-III, out of the 23 blocks, 19 are onland (including five coal-bed methane), three in shallow water and one in deepwater. No bids were received for five blocks under round III. Bids came in for 32 blocks out of the 37, but none for the CBM blocks which were carved out by the Directorate General of Hydrocarbons and put up for auction. “Investors seem to be worried about the evacuation of the gas as there are few avenues to sell. Maybe once city gas distribution networks come up, explorers will show interest,” said a government official. The CBM blocks are in the eastern part of India where ONGC and Essar Oil & Gas already have blocks. Vedanta, operator of the prolific Barmer field in Rajasthan, bagged 41 out of the 55 hydrocarbon blocks offered under the OALP-I, a critical part of the March 2016-launched Hydrocarbon Exploration Licensing Policy (HELP). HELP’s hallmarks are single licence for exploration of all forms of hydrocarbons (including shale gas and CBM), a simple revenue-sharing model and marketing and pricing freedom for the developers.

Under HELP, blocks are awarded to companies that offer the highest share of revenue to the government.

https://www.financialexpress.com/economy/no-takers-for-coal-bed-methane-blocks-under-open-acreage-licensing-policy/1612911/

show less

GO TOP

 

SNAPSHOT: NATIONAL

LNG Development and Shipping

MOL and GAIL Sign Charter Contract for one LNG Carrier || H-Energy seeks additional 1 MTPA LNG as Jaigarh terminal set to start by year-end

MOL and GAIL Sign Charter Contract for one LNG Carrier

Mitsui O.S.K. Lines, Ltd. (MOL; President: Junichiro Ikeda) announced that, through a wholly owned subsidiary of MOL, a short-term charter agreement for a LNG carrier has been signed with GAIL (India) Limited.

read more

GAIL also diversified into solar and wind power generation. GAIL currently holds a LNG / RLNG portfolio of about 14 MMTPA from various long and short-term contracts. The company is also committed to LNG trading globally. The consolidated turnover of GAIL for FY 2018-19 is about USD 11 billion with a net income of about USD 900 million. It is expected that demand for gas will be increasing continuously in India, registering significant economic growth. MOL has been participating in Indian market since the beginning of LNG import into the country, with the distinction of having brought the first gas from Qatar. MOL is currently participating in not only transportation of LNG but also the projects in India of floating LNG receiving terminal and Ethane transportation by the first Very Large Ethane Carrier (VLEC) in the world. The present Agreement has been concluded in line with the direction, which MOL declared in the Management Plan “Rolling Plan 2019”, to strategically allocate management resources to businesses where MOL has strengths. MOL will, in response to increasing demands for energy transportation, continue its effort to provide a stable sea transportation services with high safety standards, which the company is known for.

https://www.hellenicshippingnews.com/mol-and-gail-sign-charter-contract-for-one-lng-carrier/

show less

H-Energy seeks additional 1 MTPA LNG as Jaigarh terminal set to start by year-end

The company that plans to take its capacity to 8 MMTPA after the second phase expansion at Jaigarh, believes, gas demand has been very stable in the last six months, and going ahead expects the demand to grow from the industrial and commercial sectors.

read more

“We already sourced around 1 MMT from three different suppliers including Petronas, and now we are in market once again to contract another 0.7 MMT as a ramp up requirement. The regasification term contracts will be effective from January 1, 2020,” a senior company official told FE. The terminal will start with a capacity of 1.5 MMT and will be ramped up to 2.5 MMTPA in a year, the official added. “The natural gas heating is more constant and consistent compared to fuel oil, which leads to quality issues. Hence, people are preferring cleaner fuels like gas at present,” the official said. “We see demand from industrial consumers, especially the fertilisers and refineries in Maharashtra, Gujarat, North India and parts of South India,” the official added. Qatar accounts for around 62% of overall LNG imports by India, followed by Nigeria (12%). H-Energy imports regassified LNG and supplies to its clients utilising the terminal.

https://www.financialexpress.com/market/commodities/h-energy-seeks-additional-1-mtpa-lng-as-jaigarh-terminal-set-to-start-by-year-end/1610606/

show less

GO TOP

INTERNATIONAL

Natural Gas / Transnational Pipelines / Others

Riyadh is taking steps in its pledge to become a global natural gas player, even though the gas in question is not from Saudi || Oil, gas and coal markets pummeled by economic slowdown || Turkmenistan invites CIS countries to join in TAPI gas pipeline project || Natural gas market trends show summer US prices running flat to year-ago period: NGSA || Natural gas flaring hits record high in Q1 in U.S. Permian Basin || China’s ‘game changer’ pipeline reform to supercharge gas demand || Gas surges globally as green groups cry foul

Trump’s tariffs disrupt USMCA and the U.S. oil & gas boom

The U.S.-Mexican energy partnership helps explains why approving the US Mexico Canada Agreement (USMCA) deal is such an urgent priority.

Unfortunately, the Trump administration has announced plans to impose a 5% tax on all goods imported from Mexico and these tariffs would potentially rise to 25% by October. A Mexican retaliation is a direct threat to the U.S. oil and gas business. For example, Mexico has been the largest buyer of piped gas (taking in twice what Canada takes) and is the second buyer for our burgeoning LNG business. Mexico also accounts for 60% of our gasoline exports and 20% of our diesel sales. In 2018, Mexico imported around 1.7 Tcf of piped gas from the U.S., which was actually 55% higher than our LNG exports to all countries. As such, Mexico takes about 5-7% of total U.S. gas production. These exports are a boon to U.S. producers, pipeline companies, and exporters allowing even more cheap U.S. oil and gas to flow into Mexico. Overall, the U.S. supplies over 70% of the gas used in Mexico, with even more potential. With declining domestic production, Mexico has the most upside for incremental oil and gas demand of all our OECD partners. Even U.S. LNG will continue to remain important in Mexico because its pipeline system is short and numerous regions require water-shipped supply to utilize gas. In fact, without the Mexican outlet, U.S. domestic gas prices would unsustainably be 30-35% lower, pushing the suppliers of our go-to fuel even more to the brink. Exports help beget more domestic production, a fact that continues to go underappreciated by too many of our own users and policymakers. Many environmental groups are actually pro-gas exports in particular because natural gas helps lower emissions and backup wind and solar. Oil and gas links with Mexico and Canada are essential to the national security of the North American bloc, i.e., our three E’s: economic, energy, and environmental security. The U.S., Canada, and Mexico energy markets are integrated and interdependent. There is a free flow of energy products across the three nations that support lower prices, reliable supply, millions of jobs, and a stronger economy. With China now having a 25% retailiation tariff on U.S. LNG: “Having a gas: Australia dominates China’s LNG supply.” The Trump administration continues to tout U.S. oil and gas exports, but trade wars are greatly complicating our goals. We simply must support free trade agreements and oppose market restrictions: they run contrary to the benefits retained through USMCA. This includes tariffs that create uncertainty for U.S. energy projects and threaten our jobs, as well as America’s energy leadership around the world.

https://www.hellenicshippingnews.com/trumps-tariffs-disrupt-usmca-and-the-u-s-oil-gas-boom/

 

Natural Gas / Transnational Pipelines / Others

Global LNG Development

Natural Gas / LNG Utilization

LNG as a Marine Fuel / Shipping

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

 

GO TOP

SNAPSHOT: INTERNATIONAL

Global LNG Development

LNG prices could double if Strait of Hormuz closed: Platts Analytics || Canadian LNG terminal Woodfibre signs up BP as its first customer || Asian prices slip as cargoes flood; North Asian demand slows || Hong Kong duo sign LNG supply contract with Shell || MOL signs deal on a long-term charter contract to utilize “MOL FSRU Challenger” for Hong Kong Offshore LNG Terminal Project || LNG terminal project planned in Latvian port in Gulf of Riga || 12 companies show interest to build LNG terminal in Bangladesh || Final Investment Decision-Anadarko approves $20 bln LNG export project in Mozambique || Argentina ready to meet Asian LNG demand || China trade conflict has not hurt US LNG demand: US deputy energy secretary || Inpex, Indonesian govt sign Abadi LNG development agreement || LNG revenues at risk as pricing reviews loom || Samsung C&T to build Vietnam’s first LNG terminal || PNOC, Lloyds team up for LNG development

 LNG prices could double if Strait of Hormuz closed: Platts Analytics

Dubai — Spot liquefied natural gas prices could double if the Strait of Hormuz is disrupted, effectively placing all of Qatar’s export capacity under force majeure, S&P Global Platts Analytics said in its latest Global LNG Monthly Forecast.

read more

While Platts Analytics did not expect the waterway to be closed, if it were to occur it could potentially wipe out about 280 million cu m/d of Qatari volume, or 22% of global demand, it said in the report. Unlike Saudi Arabia and Abu Dhabi, Qatar does not have export routes that can be used as an alternative that bypass the Strait of Hormuz, Platts Analytics said. “This massive exogenous supply shock easily holds the potential to double spot LNG prices in short order,” Platts Analytics said, adding there was not enough spare shipping capacity to offset the loss. “Demand destruction from a price shock would make up the difference and lead to a market equilibrium at a notably higher price point. From a longer term perspective, the event would prove problematic for Qatari efforts at renewing expiring contracts.” If all other producers ramped up production capacity to 100%, global markets could add about 220 million cu m/d of production, Platts Analytics estimated. Those with most capacity to boost output are Russia, Australia, Malaysia and the US, it said. Likewise, the buyers most likely to react were in Europe, where there is a large element of coal-to-gas switching and ample storage, according to Platts Analytics. European LNG imports would likely decline by at least 90 million cu m/d from expected Q3 LNG demand. Such a disruption would also likely discourage some buyers that want secure supply, according to the report. The potential for those buyers to look elsewhere was important because about 13 Bcm/year in Qatari offtake agreements, or roughly 12% of production, is set to expire before December 2022, Platts Analytics said.

https://www.spglobal.com/platts/en/market-insights/latest-news/natural-gas/062419-lng-prices-could-double-if-strait-of-hormuz-closed-platts-analytics

show less

Canadian LNG terminal Woodfibre signs up BP as its first customer

Woodfibre LNG, a liquefied natural gas (LNG) project in Canada, said it had signed a unit of BP as its first customer, a crucial step towards developing the export facility. Woodfibre said on Wednesday BP Gas Marketing Limited had agreed to buy 0.75 MMTPA of LNG for 15 years starting in 2023, when the project in British Columbia is expected to come onstream.

read more

The facility’s capacity is expected to be 2.1 MMTPA. It said it was also working on an agreement “for BP Canada to provide gas transportation and balancing services ensuring a reliable delivery of gas to the Woodfibre LNG export facility over the 15-year term”. Dozens of companies are planning LNG export terminals in North America to capitalise on gas made accessible from shale drilling technology. Signing up committed, long-term buyers is vital for financing and building such projects. Royal Dutch Shell approved its 14 MMTPA project in Kitimat, northern British Columbia, in October, triggering a new cycle of projects to be built to meet an anticipated LNG shortage in mid-2020s. But the LNG Canada project is the only one in Canada to have progressed to construction stage. Woodfibre LNG is a subsidiary of Pacific Oil & Gas, part of the Singaporean conglomerate RGE. Pacific Oil & Gas operates two LNG import terminals in China, as well as other upstream and midstream oil and gas assets. LNG produced on the west coast of Canada is likely to be sold in Asia which accounts for about 75 percent of global demand. There are at least half a dozen LNG export terminal projects planned in Canada, and more in the United States.

https://www.hellenicshippingnews.com/canadian-lng-terminal-woodfibre-signs-up-bp-as-its-first-customer/

show less

12 companies show interest to build LNG terminal in Bangladesh

A total of 12 companies have shown interest in building the country’s first onshore LNG import terminal, according to Reuters. 

read more

Bangladesh is turning to land-based LNG terminals as its first imports of the super-chilled fuel via a floating platform were delayed due to inclement weather and technical issues. Rupantarita Prakritik Gas Company Limited (RPGCL), a part of state-owned oil and gas company Petrobangla, earlier this year had requested expressions of interest (EOI) from potential terminal developers for a land-based LNG regasification terminal at Matarbari in Cox’s Bazar. The companies include Japan’s Mitsui, South Korean utility KOGAS, and a consortium led by Summit Corp, a unit of Bangladesh’s Summit Group, the officials said. The consortium of Summit, Japan’s Mitsubishi and JERA Co, the world’s largest LNG buyer, was created for the proposed development of the LNG terminal in Matarbari. Summit is the lead investor in the consortium with Mitsubishi and JERA as minority stakeholders, an official of Summit Group told The Daily Star. Summit and Mitsubishi have been envisioning this project for over a year and it is part of Summit, Mitsubishi and GE’s $3 billion foreign direct investment (FDI) to Bangladesh, the official said, on condition of anonymity. Citing an official, Reuters said a committee will evaluate the proposals and create a shortlist based on the capabilities and technical assessments of the 12 companies. It could take more than a year to complete and award the contract for the terminal. The project will run on a build-own-operate basis for 20 years, with ownership to then be transferred at no cost to the Bangladeshi government or a company nominated by the government.

show less

Final Investment Decision-Anadarko approves $20 bln LNG export project in Mozambique

U.S. energy firm Anadarko Petroleum Corp gave the go-ahead on Tuesday (June18) for the construction of a $20 billion gas liquefaction and export terminal in Mozambique, the largest single LNG project approved in Africa,

read more

according to the government of Mozambique and energy consultancy Wood Mackenzie. The announcement, which occurred at an event in Mozambique, was widely expected after Anadarko last month flagged the decision date. The project, which has committed long-term supplies to utilities, major LNG portfolio holders and state companies, underscores the industry’s conviction that LNG demand will soar in years to come despite a slump in prices this year. Low prices for the gas that is super-cooled for transportation prompted fears final investment decisions (FIDs) such as Anadarko’s would be delayed or scrapped. But the U.S. company gathered enough long-term buyers to underpin the financing of the project. “Flexible commercial arrangements, including an innovative co-purchase agreement with Tokyo Gas and Centrica , have been instrumental in securing the project a roster of high-quality customers in a crowded LNG market,” said Frank Harris, head of LNG Consulting at Wood Mackenzie. The project is also expected to be transformational for Mozambique, one of the poorest nations on earth beset by economic crisis, conflict stemming from a civil war and serious governance malaise, whose annual gross domestic product is just $13 billion. The government of Mozambique said the project is expected to create more than 5,000 direct jobs and 45,000 indirect jobs.
With a 12.88 MMTPA capacity, Mozambique LNG is one of the largest greenfield LNG facilities to have ever been approved. It involves building infrastructure to extract gas from a field offshore northern Mozambique, pump it onshore and liquefy it, ready for further export by LNG tankers. On the African east coast, the liquefaction plant will be able to sell LNG to both the lucrative Asian market, home to 75%of global LNG demand, and to the flexible European market, which helps balance global LNG trade by soaking up excess supply. Mozambique LNG joins other mega-projects approved in the past year such as Exxon Mobil Corp’s 16 MMTPA U.S. Golden Pass plant and Royal Dutch Shell Plc’s 14 MMTPA LNG Canada facility. Still expected this year are approvals from Exxon for a 15.2 MMTPA project also in Mozambique, and from Russia’s Novatek for its 19.8 MMTPA Arctic LNG-2 plant. Anadarko has agreed to be taken over by Occidental Petroleum Corp. Once that deal goes ahead, Occidental has agreed to sell assets including the Mozambique LNG project to French oil major and large LNG trader Total SA.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/anadarko-approves-20-bln-lng-export-project-in-mozambique/69849995

Asian prices slip as cargoes flood; North Asian demand slows

Asian spot prices for liquefied natural gas (LNG) slipped this week on the back of a surplus of cargoes globally while imports from North Asia appeared to be slowing down this month, industry sources said.

read more

show less

Spot prices for August delivery to Northeast Asia <LNG-AS> are estimated to be about $4.60 per MMBtu, down about 10 to 30 cents from last week, the sources said. Prices for July delivery are estimated at about $4.40 per MMBtu, stable from the previous week, they added. A flurry of sell tenders flooded the global market while demand remained stable, industry sources said. “Demand is actually quite alright, but it’s the supply that’s depressing prices,” a Singapore-based LNG trader said. Exxon Mobil Corp’s Papua New Guinea LNG export plant, Australia’s Ichthys plant, Nigeria LNG, Angola LNG plant and Abu Dhabi National Oil Co (ADNOC) offered cargoes for July loading or delivery, industry sources said. Supply was also coming in for August with Oman LNG offering three cargoes, sources added. Kuwait Foreign Petroleum Exploration Co (KUFPEC) may have sold a cargo for loading from Australia’s Wheatstone plant between July 30 and Aug. 3 at $4.20 per MMBtu, industry sources said, though this could not immediately be confirmed. In Singapore, Gunvor sold a cargo for loading over Aug. 9 to 13 to BP at $4.80 per MMBtu, they added. The surplus of cargoes come as imports of the super-chilled fuel into Japan, South Korea, Taiwan and China look set to dip by more than 10% in June from the previous month, according to shiptracking data from Refinitiv. The LNG tanker ‘Seri Camar’ has been floating in Malaysian waters after loading the ship from Sabah oil and gas terminal in early June, data from Refinitiv and data intelligence firm Kpler showed. The tanker ‘Valencia Knutsen’, which is carrying the first LNG export cargo from Royal Dutch Shell’s Prelude floating LNG, is currently anchored in South Korea with destination stated as Geoje, Refinitiv data showed on Friday (June21). On the demand side, Indian Oil Corp may have bought a cargo for delivery on Aug. 22 at $4.50 per MMBtu, industry sources said, though this could not immediately be confirmed. India’s Gujarat State Petroleum Corp (GSPC) is seeking two cargoes for delivery in August, sources said. Providing some support, LNG loadings from Sempra Energy’s $10 billion Cameron export terminal in Louisiana have been delayed after the first cargo from the project was exported last month to start up operations. At least two commissioning cargoes, one for France’s Total and another for Spain’s Repsol, were delayed, according to industry sources and shiptracking data.

https://www.financialexpress.com/market/asian-prices-slip-as-cargoes-flood-north-asian-demand-slows/1614210/

show less

MOL signs deal on a long-term charter contract to utilize “MOL FSRU Challenger” for Hong Kong Offshore LNG Terminal Project

Mitsui O.S.K. Lines, Ltd. announced that MOL has entered into a long-term charter contract with Hong Kong LNG Terminal Limited, to supply a Floating Storage and Regasification Unit (FSRU) ,

read more

as well as Jetty Operation & Maintenance Services and Port Services for the Hong Kong Offshore LNG Terminal Project (“Project”). MOL will utilize the “MOL FSRU Challenger” built in 2017 with a storage capacity of 263,000m3 which remains the largest FSRU in the world today, to provide services to this first FSRU project for Hong Kong. Hong Kong is the historical center of MOL’s extensive overseas network and such business experience in Hong Kong has led MOL to the participation of this project. The FSRU will supply gas to two destinations in Hong Kong, the Black Point Power Station located in the New Territories and Lamma Power Station located at Lamma Island. The project is being developed to support the Hong Kong Special Administrative Region (HKSAR) Government’s plan to increase the percentage of power generation from natural gas to meet its pledged environmental targets. In addition, MOL has entered into an agreement with Royal Vopak (Chairman & CEO: Eelco Hoekstra) for this project. Royal Vopak is the world’s leading independent tank storage company and will assist in the project development related to the Jetty Operation & Maintenance Services, leveraging upon its global track record in LNG terminal operation.

https://www.hellenicshippingnews.com/mol-signs-deal-on-a-long-term-charter-contract-to-utilize-mol-fsru-challenger-for-hong-kong-offshore-lng-terminal-project/[Edited]

show less

Hong Kong duo sign LNG supply contract with Shell

Castle Peak Power Company Limited (CAPCO) and The Hongkong Electric Co., Ltd. have announced that an agreement has been entered into with Shell Eastern Trading Pte. Ltd.,

read more

a subsidiary of Royal Dutch Shell, for the long-term supply of LNG to the Hong Kong Offshore LNG Terminal. After completion of the project, Shell will supply LNG to both CAPCO and HK Electric from its worldwide LNG portfolio. CLP Power Managing Director T K Chiang said, “The government has established new emissions and carbon reduction targets, among which include setting a new proportion for natural gas in the fuel mix for power generation. This fuel supply contract will enable us to access price-competitive natural gas and broaden our sources of natural gas, ensuring a reliable and stable fuel supply for Hong Kong. Throughout our procurement process, we received very positive responses from LNG suppliers worldwide, and the terms achieved in the agreement reflect the keen competition among suppliers at the time.” HK Electric Managing Director Wan Chi-tin said, “HK Electric is taking steps to substantially increase the use of natural gas for power generation, from currently over 30% of total output to around 70% by 2023, as we support the government’s policy and targets to combat climate change and improve air quality while transforming Hong Kong into a low-carbon city. With the substantial increase in gas demand by the company in the coming years, the signing of this agreement will provide HK Electric with another gas source to help secure stable, safe and reliable gas supply.” In support of the government’s policy to reduce carbon intensity and increase the proportion of natural gas used for power generation by 2020, CLP Power and HK Electric first launched a study into building an offshore LNG terminal in 2016. The terminal will enhance and diversify Hong Kong’s natural gas supply sources, and ensure a more reliable supply of fuel at competitive prices.

https://www.lngindustry.com/liquid-natural-gas/21062019/hong-kong-duo-sign-lng-supply-contract-with-shell/

show less

LNG terminal project planned in Latvian port in Gulf of Riga

A plan to build a liquefied natural gas (LNG) terminal in Skulte, a small Latvian port in the Gulf of Riga, as well as a gas pipeline is being put to public debating in June and July,

read more

the Latvian environmental supervision authority informed on Friday(June21). Skulte LNG Terminal company plans to build the gas terminal in the northwestern part of Skulte Port, 2.5 kilometers from the shore. The LNG terminal would be able to receive tankers with a capacity of 40,000 to 174,000 cubic meters. The plan also includes laying a 39.5 kilometers long pipeline for shipping gas from Skulte Port to the Incukalns underground gas storage facility outside Riga. Representatives of Skulte LNG Terminal said that the project is still in an early development stage and that it is therefore too early to comment on a completion schedule and investments. Such information might be released in the next few months, they said.

Skulte LNG Terminal company has been established in 2016, but the Latvian register of enterprises has no information about its owners.

http://www.xinhuanet.com/english/2019-06/22/c_138163113.htm

show less

Argentina ready to meet Asian LNG demand

Rising natural gas production in Argentina, coupled with competitive global LNG transportation costs, is expected to position the country as an emerging source of gas supply to Asia during peak demand periods, according to new research from Wood Mackenzie.

read more

Global LNG demand is showing increasing seasonality, and peak potential LNG production in Argentina during the summer months coincides with strong winter demand from utilities in Asia. This seasonal dynamic could attract Asian buyers and present a strong economic case for Argentinian LNG. In addition, Argentinian LNG liquefaction plants have lower shipping costs to reach Asian markets than U.S. Gulf Coast facilities, avoiding potential Panama Canal congestion and presenting an overall cheaper alternative to U.S. exports. Supported by the Vaca Muerta, Argentina’s production in the Neuquén basin will ramp up over the next few years, with major scale LNG production expected to begin in 2024. Based on the new research, Wood Mackenzie anticipates that LNG production volumes could potentially reach 6 MMTPA in that year, which could then grow to 10 MMTPA by 2030. Associated gas from Vaca Muerta will also represent 15% of Argentina gas production by 2024, and other projects in the condensate and dry gas window with breakevens below $3 per MMBtu will enter into full development in the upcoming years. A lack of underground natural gas storage facilities close to demand centers in Argentina means that gas flow to potential LNG export terminals will also be seasonal. Despite other price challenges posed by the seasonal utilization of LNG plants, Wood Mackenzie estimates breakevens for Argentina LNG of $8/MMBtu at delivery ex. ship for Japan. “Argentina’s LNG could be interesting to players who want to diversify supply outside North America. The seasonality of its output could be also seen as a virtue for Asian utilities that are looking to contract just for their peaking demand months in the northern hemisphere.”Some Asian players are already active in the Argentinian shale. Petronas is participating with YPF in the joint venture of La Amarga Chica, while CNOOC participates indirectly through its subsidiary, Pan American Energy, in the Aguada Pichana Oeste. Meanwhile, Qatar Petroleum recently has shown interest in Argentina, buying a stake of ExxonMobil’s business unit in that country, and also partnering for exploration offshore. “We see further opportunities for Asian players looking for foreign investment, not only in upstream but also for major midstream infrastructure, such as gas processing plants, pipelines, have petrochemicals, and LNG export plants,” says Rodriguez.

https://www.maritime-executive.com/article/argentina-ready-to-meet-asian-lng-demand

show less

China trade conflict has not hurt US LNG demand: US deputy energy secretary

The trade conflict with China has not hurt demand for US LNG exports or dampened investment interest in the next wave of export terminals, Deputy Energy Secretary Dan Brouillette said at the G20 energy meeting in Japan. “I suspect in the very near future we’ll have an agreement that is fair to both countries,”

read more

Brouillette said at a press conference on the sidelines of the meetings. “We have not noticed any appreciable downtick or downturn in the sale of LNG. We’ve also not seen any impact on the production of LNG in the United States. It continues to rise.” Many analysts do not share Brouillette’s assessment of the trade dispute on US LNG development. Some have said it is causing pressure from buyers for shorter, more flexible terms and use of international indexes to structure new offtake contracts is making it difficult for some developers to sign deals. Brouillette said Asian demand for US LNG continues to grow, with 40% of exports heading to South Korea, Japan and China in the past two years. He said the US is eager to build infrastructure to meet that demand. The deputy secretary said natural gas from the US would remain the biggest contributor to growth in international trade, citing the International Energy Agency.

“What is ours can be yours, and we look forward to this continued growth in working with each of the G20 nations as they pursue energy diversity and security,” he said.

https://www.hellenicshippingnews.com/china-trade-conflict-has-not-hurt-us-lng-demand-us-deputy-energy-secretary/

show less

Inpex, Indonesian govt sign Abadi LNG development agreement

Japan’s Inpex Corp and the Indonesian government said on Sunday (June 16) they have signed a basic agreement on development of Indonesia’s Abadi liquefied natural gas (LNG) project.

read more

Inpex President Takayuki Ueda said the Japanese company, which owns 65% stake in the project, said they plan to submit a Plan of Development (POD) for the project within several weeks to local authorities and aim to make a final investment decision within 2-3 years. The signing ceremony took place on the sideline of a meeting of G20 energy and environment ministers being held this weekend in Karuizawa which Indonesia’s Energy and Mineral Resources Minister Ignasius Jonan is attending.

https://www.reuters.com/article/us-lng-indonesia-inpex-c/inpex-indonesian-government-sign-abadi-lng-development-agreement-idUSKCN1TH039

show less

LNG revenues at risk as pricing reviews loom

Billions of dollars of Australian commodity export revenues are at risk over the next two years as LNG sales contracts come up for price review just as a slump in LNG spot prices has piled on pressure to cut contract tariffs, according to Credit Suisse’s head of energy research.

read more

Saul Kavonic told the bank’s Australian Energy Conference on Thursday (June20) that some Japanese buyers locked into expensive long-term contracts are now paying twice as much for LNG as those buying from the spot market. “We can see…that that divergence could persist for the next couple of years,” he said. Building oversupply in the LNG market has also put pressure on the pricing formula typically used in Asian long-term contracts that links the price to crude oil. That “slope”, which was as high as 15 per cent in legacy contracts with LNG importers in Japan, has slid and more recently has fallen into the 11-12 per cent range. Mr Kavonic said that would add to the pressure to reduce LNG prices in contracts when they came up for review, particularly given the difficulties among Japanese buyers to pass on costs in their now more liberalised domestic market. Oil Search’s executive general manager, gas business development Ian Munro, while acknowledging the severe pressure on buyers at the moment, particularly in Japan, said each contract was bespoke and set out how much prices could be changed, with the conditions of the prevailing market being “irrelevant”.

https://www.afr.com/business/energy/gas/lng-revenues-at-risk-as-pricing-reviews-loom-20190619-p51zd0

show less

Samsung C&T to build Vietnam’s first LNG terminal

Samsung C&T’s construction unit announced on June 25 that it has won the Thi Vai LNG Terminal construction project, which was awarded by Vietnam’s state-run gas firm PetroVietnam Gas Corp.

read more

The company said it has formed a consortium with the local company PetroVietnam Technical Services Corp. (PTSC) to win the project. The total cost of the project is US$179.5 million (208.13 billion won), and Samsung C&T’s share is about 61% or an estimated value of US$109.5 million (127 billion won). The total period of construction is 40 months. Work is scheduled to begin on June 30 this year and complete in October 2022. The Thi Vai LNG Terminal is the first LNG terminal to be built in Vietnam. It is to be built in a coastal area about 70 kilometers southeast of Vietnam’s largest city Ho Chi Minh City. The project includes building an 180,000-square-meter LNG tank, a vaporization transmission facility, and a berth facility. The latest project will help Samsung C&T to secure facilities to supply fuel to the Nhon Trach combined thermal power plant to be set up in the future. Samsung C&T has continued to successfully perform in the LNG terminal market in Southeast Asia, with an accident-free completion of the Singapore LNG terminal stages 1 to 3 and the Malaysian RGT-2 LNG terminal project.

http://www.businesskorea.co.kr/news/articleView.html?idxno=33279

show less

PNOC, Lloyds team up for LNG development

State-run Philippine National Oil Co. (PNOC) has teamed up with Dubai-based Lloyds Energy to explore the possibility of developing liquefied natural gas (LNG) facilities in the country.

read more

PNOC said it signed a memorandum of understanding (MOU) with Lloyds Energy to “explore cooperative ways for the development of LNG facilities and natural gas generation plants and other related activities” in government properties in Limay, Bataan, Bauan, Batangas, and Mabini, Batangas. The MOU also explores the viability of oil importation and storage, the state-run firm said. In November last year, Lloyds Energy submitted its interest to partner with PNOC to build an integrated LNG hub with storage, liquefaction, regasification and distribution facility, as well as a power plant capacity. Last April, the Dubai LNG firm said it passed the completeness check for the PNOC LNG hub project. This is in accordance with the documentary requirements stated in the Build Operate and Transfer (BOT) Law and its Revised Implementing Rules and Regulations. PNOC president and chief executive officer Reuben Lista said the team-up with Lloyds Energy would not affect its prospective partnership with Phoenix Petroleum Philippines Inc. and China National Offshore Oil Corp. (CNOOC). “Both are exploratory and without exclusivity clauses.  These steps will encourage also the private sector to consider these directions,” he said. Last March, PNOC signed a separate MOU with Phoenix Petroleum and CNOOC Gas and Power Group Co. Ltd. to explore and discuss business opportunities and cooperation in relation to the equity investment in Tanglawan Philippine LNG Inc. The MOU will also allow PNOC to provide a strategic alliance in further developing the Tanglawan LNG project, with the government-run corporation’s involvement in the areas of pipeline infrastructure and franchise, banked gas, equity, and other marketing opportunities.

https://www.philstar.com/business/2019/06/26/1929489/pnoc-lloyds-team-lng-development

show less

 

GO TOP

 

SNAPSHOT: INTERNATIONAL

Natural Gas / LNG Utilization

U.S. DOT’s new HD CNG fuel system inspection labelling rule matches NGVAmerica Guidance || American Natural Gas Network expands to 60 CNG stations with AMP CNG acquisition || Redexis and Cepsa plan major expansion of natural gas refuelling network in Spain

U.S. DOT’s new HD CNG fuel system inspection labelling rule matches NGVAmerica Guidance

NGVAmerica, the national trade association for natural gas use in transportation, has applauded the U.S. Department of Transportation’s National Highway Traffic Safety Administration for updating its heavy-duty natural gas vehicle fuel system tank inspection labelling requirement to match recommended guidance the NGVA previously developed after a lengthy and collaborative review.

read more

“This announcement from NHTSA compliments the updated four-tiered inspection and review process NGVAmerica developed with comprehensive industry support and input from the American Trucking Associations,” said NGVAmerica President Daniel Gage.  “Per industry recommended practices, full, detailed inspections should be performed annually or whenever cursory reviews uncover signs that a more detailed inspection is needed.  Furthermore, recommended reviews and inspections are expanded to cover the entire fuel system and not just the CNG storage system.” Work Group Leaders responsible for developing NGVAmerica’s guidance included Duane Lippincott, United Parcel Service; Leo Thomason, Natural Gas Vehicle Institute; and Matt Krasney and Dean Stapleton, Penske Truck Rental.  Representatives from Agility Fuel Systems, SoCal Gas, Ryder, PepsiCo, Waste Management, FortisBC, Clean Energy, Chart, McNeilus, Worthington, Hexagon Lincoln, Momentum, Daimler, CSA Group, U.S. DOT, and the American Trucking Association participated in the document development.

Tomorrow’s scheduled posting by DOT in the Federal Register now provides 60 days for public input before the new Federal rule is finalized.  The NPRM can be accessed

http://www.ngvglobal.com/blog/u-s-dots-new-hd-cng-fuel-system-inspection-labelling-rule-matches-ngvamerica-guidance-0621[Edited]

show less

American Natural Gas Network expands to 60 CNG stations with AMP CNG acquisition

American Natural Gas (ANG), a specialised designer, builder and operator of CNG in the U.S. has acquired ampCNG, a natural gas fuel provider. This acquisition bolsters ANG’s reach by adding 20 additional natural gas fueling stations to their portfolio.

read more

“ampCNG’s station infrastructure is complementary to our current infrastructure and future expansion plans”, says American Natural Gas CEO, Andrew West as he undergoes expansion into the southeast region of the country. The synergies of AMP CNG and ANG will significantly strengthen the opportunity to serve customers. The expansive nature of ANG’s national network coupled with exclusive focus on CNG continues to fuel a healthier and cleaner future. American Natural Gas will maintain headquarters in Saratoga Springs, NY. They will continue to build, operate, and maintain their natural gas fueling stations with their unwavering values precedent. Simultaneously, ANG pursues ambitions of providing 100% Renewable Natural Gas (RNG) by 2020. “Our acquisition of ampCNG complements our overall company mission, helping America by making natural gas readily available for commercial and public use in vehicles,” said ANG CEO, Andrew West. “With mounting pressure to improve air quality and our environment, this acquisition is our step towards a more sustainable future.  Heavy duty trucks are the leading cause of emissions, today’s zero emission natural gas vehicles supply paired with renewable natural gas our CNG vehicles boast a 125 percent reduction in emissions! Increasing our energy independence, substantially and reducing greenhouse gas emissions.” Natural gas is the cleanest burning alternative fuel available that has the power to run heavy-duty vehicles. Additionally, natural gas is quieter, safer, less expensive, and abundant in America.

Source: NGV Global

show less

Redexis and Cepsa plan major expansion of natural gas refuelling network in Spain

Global energy company Cepsa and Spanish gas distributor Redexis have signed a framework agreement to expand the reach of natural gas fuel, both in urban areas and across the country’s main transport corridors for light and heavy vehicles.

read more

Together they will create the largest gas refuelling network in Spain in a bid to expand the supply of energy solutions and foster sustainable mobility. Over the next two years, Redexis will invest EUR 30 million in installing and maintaining refueling points for both liquefied natural gas (LNG) and compressed natural gas (CNG) at 50 Cepsa Service Stations, while Cepsa will handle the supply and marketing side. Over mid-term, before the end of 2023, the aim of this alliance is to supply natural gas fuel to 80 service stations with a total investment of EUR 60 million. Both companies are firmly committed to giving Spain a nationwide network of natural gas refueling infrastructure for both light and heavy vehicles; a network that is easy to access and with refueling times similar to those of traditional hydrocarbon pumps.

Source: NGV Global [Edited]

show less

 

SNAPSHOT: INTERNATIONAL

LNG as a Marine Fuel / Shipping

The LNG shipping market is set for a bull run || Q-Flex vessel sets delivery benchmark in Turkey || Keel laid for Carnival’s XL-Class LNG-Fuelled Mardi Gras; Countdown to 2020 Launch || Wärtsilä Solutions for China’s first seagoing LNG bunker vessel || S. Korean shipbuilders gearing up for massive LNG carrier orders in H2

The LNG shipping market is set for a bull run

Both demand and supply of liquefied natural gas (LNG) are expected to grow in the foreseeable future as many emerging markets turn to cleaner-burning fuel in their energy mix and as new export projects—

read more

from the U.S. to Canada to Africa—are being planned and sanctioned to meet growing demand. As LNG demand and supply grow, so do LNG trade and demand for LNG carriers. Although the shipping market, including LNG shipping, is going through booms and busts, the LNG vessel market is set for a multi-year bull run that started late last year, ShipBrief analyst James Catlin wrote in Value Investor’s Edge. The LNG shipping market is set for a tight 2019 and an even tighter 2020 as the expected growth in fleet will not be enough to meet growing LNG trade demand, pointing to higher charter rates for LNG carrier owners and operators, Catlin argues. According to GIIGNL, the International Group of Liquefied Natural Gas Importers, as of end-2018 the total LNG tanker fleet vessel consisted of 563 vessels. Last year, the average spot charter rate was US$88,692 per day for a 160,000-cubic-meter LNG carrier, nearly double the average charter rate of US$46,058/day in 2017. As many as 57 vessels were delivered last year, while the LNG carrier order book consisted of 138 units at end-2018, which equaled to 25 percent of the operational LNG fleet. Of the ordered vessels, 46 were scheduled to be delivered in 2019.  In the coming years, demand for LNG will continue to grow and so will supply. This will need more LNG carriers to ship the super-chilled fuel from the supply locations to the biggest demand centers.  Shipbuilder Samsung Heavy Industries, which builds LNG carriers among other ships, said in an investor presentation this month that it sees the strong demand for LNG carriers continuing in the next few years. In the long-term view, Samsung Heavy Industries sees demand for LNG carriers at more than 50 vessels per year, with 30-35 vessels due to demand from global LNG trade growth, 15-17 ships due to demand for ton miles increase, and 4-5 vessels to replace ageing fleet. Considering global LNG export plans, short-term demand of new LNG carriers is expected to be strong, and up to 252 additional vessels would be required by 2024, the company said. Samsung Heavy Industries expects some 90 ships to be ordered now to meet demand from expansion plans in Qatar, an expected 2024 start-up of a Mozambique LNG export facility, the start up of Golden Pass LNG of ExxonMobil in 2024, as well as demand for ice-breaking LNG ships for Russia’s Arctic LNG projects of Novatek. More LNG ships will be needed in the short term to meet rising supply out of the United States, ship owners and operators told The Wall Street Journal earlier this year. While the crude oil market is highly volatile these days, LNG trade could now be the most profitable trade in shipping since the 1960s, executives and analysts told The Journal’s Costas Paris.

https://oilprice.com/Energy/Natural-Gas/The-LNG-Shipping-Market-Is-Set-For-A-Bull-Run.html

show less

Q-Flex vessel sets delivery benchmark in Turkey

Qatargas announced the safe delivery of the largest single cargo of liquefied natural gas (LNG) to the Marmara LNG Terminal in Turkey.

read more

The super-chilled LNG was delivered on board the Q-Flex vessel ‘Al Sheehaniya’, which enters the record books as the first ever Q-Flex vessel to call at the recently expanded Marmara LNG Terminal. Khalid bin Khalifa Al Thani, Chief Executive Officer, Qatargas said: “The recent expansion of Marmara LNG Terminal allows Qatargas to send the world’s largest LNG vessels to yet another LNG terminal in Turkey. With 14 LNG trains and a total annual production capacity of 77 million tonnes, Qatargas is ideally positioned to meet increasing customer demand for reliable LNG, and capture the economies of scale afforded by Q-Flex and Q-Max LNG vessels.” The Marmara LNG terminal is owned by BOTAS, the Turkish state-owned integrated gas company. The terminal was originally designed to accommodate conventional size vessels, and recently went through upgrades to accommodate both Q-Flex and Q-Max vessels. Al Sheehaniya is a Q-Flex class LNG vessel with an overall cargo carrying capacity of 210,000 m3. Al Sheehaniya loaded a cargo of ~207,000 m3 of LNG at the Ras Laffan in Qatar on 30 May 2019 before heading to the Marmara LNG Terminal in Turkey.

https://www.hellenicshippingnews.com/q-flex-vessel-sets-delivery-benchmark-in-turkey/

show less

Keel laid for Carnival’s XL-Class LNG-Fuelled Mardi Gras; Countdown to 2020 Launch

Completing another milestone towards its August 2020 debut, Carnival Corporation and shipbuilder Meyer Turku have carried out a keel-laying ceremony at the shipyard in Turku,

read more

Finland, for Carnival Cruise Line’s Mardi Gras. Steel-cutting for the XL class cruise ship, the first vessel of its kind to operate on liquified natural gas (LNG) in North America, commenced in November 2018. Carnival’s Senior Vice President of Newbuilds Ben Clement and Mardi GrasCaptain Giuseppe Giusa, Chief Engineer Ferdinando Ruocco and Hotel Director Pierre Camilleri joined Meyer Turku CEO Jan Meyer at the festivities to mark keel-laying for the 180,000 ton vessel capable of carrying up to 6,500 passengers and 2,000 crew. “This is a historic day for Carnival – the official start of construction of the spectacular Mardi Gras which will usher in an exciting new chapter for our company and introduce so many guest-pleasing innovations,” said Clement. “We have been very excited to design and now finally to start assembling Carnival Mardi Gras. All these different features onboard require a lot of engineering and design expertise which we have been happy to provide to our customer,” CEO of Meyer Turku Jan Meyer states. Mardi Gras is set to debut in Europe Aug. 31, 2020, then reposition to New York for a series of voyages before shifting to Port Canaveral, Florida, for year-round Caribbean departures.

Source: NGV Global

show less

Wärtsilä Solutions for China’s first seagoing LNG bunker vessel

China’s first seagoing Liquefied Natural Gas (LNG) bunker vessel will operate with a comprehensive and integrated package of highly efficient and environmentally sustainable solutions from the technology group Wärtsilä.

read more

The ship is being built by the Dalian Shipbuilding Industry Corporation (DSIC) for an affiliate of the ENN Energy holdings, one of the largest users of LNG in China.

The LNG bunker vessel has been designed by China Ship Design & Research Center Co.Ltd. The orders with Wärtsilä were booked in Q1 2019. Wärtsilä will provide the vessel’s cargo handling system, the Wärtsilä 34DF dual-fuel main engine, the gearbox, controlled pitch propeller (CPP), shaft generator, two Wärtsilä 20DF dual-fuel auxiliary engines, and the ship’s sewage treatment plant. The integrated gas, propulsion, and waste treatment systems are designed to deliver high efficiency with stable and clean operations. The equipment is scheduled for delivery in early 2020.  “This project is China’s first LNG bunkering vessel with a C type tank and is another milestone for DSIC in the gas carrier market”, says Richard Hu, Marketing Director, DSIC. “DSIC is ready for the arrival of the LNG era. We rely on Wärtsilä’s support and expertise, and we look forward to delivering various solutions for our distinguished customer.” The 8500 m3 capacity vessel is the first newbuilding LNG bunkering vessel for ENN Energy Holdings and is part of the Group’s ambition to play an active role in the international marine LNG fuel supplier market. With this bunker vessel, ENN will be capable of supplying fuel to the world’s biggest LNG fuelled vessels. The LNG bunker vessel is expected to begin operations in 2020. It will be based at the newly opened ENN Zhoushan LNG receiving and bunkering terminal in China’s eastern Zhejiang province. In addition to providing bunkering supply operations, it will also carry out gas testing services for LNG carriers and other LNG fuelled vessels.

Source: NGV Global

show less

Korean shipbuilders gearing up for massive LNG carrier orders in H2

South Korea’s major shipbuilders are pinning high hopes on massive liquefied natural gas (LNG) carrier orders to be placed in the second half of this year, industry insiders said Tuesday, as they aim to sweep global orders to cement their status in the sector.

read more

As of last week, South Korean shipbuilders had secured 21 of 24 LNG carrier orders worldwide this year. With orders for more than 60 LNG carriers expected to be placed this year, industry insiders said South Korean shipbuilders will try to keep up the pace against their Asian rivals. Samsung Heavy Industries Co. is likely to be the first of the local shipyards to bag a new order in the second half as the company was reportedly named a partner for the Arctic LNG-2 project led by Russia’s top independent gas producer, Novatek, according to industry sources. Samsung Heavy will reportedly join forces with Russian shipbuilder Zvezda to make ice-breaking LNG carriers for the LNG project. Officials at Samsung Heavy said they can’t confirm the deal, although they want to see good results from Russia. Industry insiders said that local shipyards, including Hyundai Heavy Industries Co. and Daewoo Shipbuilding & Marine Engineering Co., will attempt to win orders from U.S. energy giant Anadarko Petroleum Corp., which needs 16 LNG carriers for its LNG project in Mozambique. Local shipbuilders are also awaiting the result of their bids for LNG carrier orders issued by Qatar. The Middle Eastern nation is expected to need at least 40 LNG carriers for its North Field expansion project to develop its offshore gas fields. “The demand for LNG carriers will be solid and this will improve local shipbuilders’ profitability as the price of the LNG vessels will also rise.”

https://www.hellenicshippingnews.com/s-korean-shipbuilders-gearing-up-for-massive-lng-carrier-orders-in-h2/

show less

 

GO TOP

 

SNAPSHOT: INTERNATIONAL

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

A major existential threat is arising for natural gas || Building a marine supply infrastructure as part of a future hydrogen society

A major existential threat is arising for natural gas

Two recent explosions at hydrogen fueling stations may have soured the fuel’s reputation, but there is increasingly optimistic sentiment for it, with two reports last week claiming it will have an important role to play in the energy mix of tomorrow.

read more

One of these, led by the UK Institution of Engineering and Technology, said hydrogen could come to replace natural gas as a fuel for heating in the country. “We are now in a position to seriously consider the viability of using hydrogen in the UK’s gas grid for use by homes and businesses which could significantly contribute to the decarbonisation of the UK’s energy sector,” the lead author of the report, Dr. Robert Sansom said in a press release. The fascinating part is that the hydrogen would be produced from natural gas: a process called gas reforming. This means hydrogen will not exactly replace natural gas, but rather become a gas-derived fuel to be used for heating. However, as is so often the case, the hydrocarbon-free alternative hydrolysis is too expensive to apply at the large scale needed to produce fuel to heat the 85% of UK homes that currently use natural gas.

As good as all this sounds, the report agrees with what the UK’s IET researchers say: producing hydrogen from anything but fossil fuels is prohibitively expensive at the moment. And that’s not all. Hydrogen production is not emission free. “Today, hydrogen is already being used on an industrial scale, but it is almost entirely supplied from natural gas and coal. Its production, mainly for the chemicals and refining industries, is responsible for 830 million tonnes of CO2 emissions per year. That’s the equivalent of the annual carbon emissions of the United Kingdom and Indonesia combined,” the IEA report said. There are several ways to eliminate these emissions, whether through carbon capture and storage or by producing more hydrogen from renewable power. But, once again, these are more theoretical scenarios than processes that could be enabled at this point in time. For now, in other words, hydrogen remains more of an energy equivalent of an exotic fruit.

https://oilprice.com/Alternative-Energy/Fuel-Cells/A-Major-Existential-Threat-Is-Arising-For-Natural-Gas.html[Edited]

show less

Building a marine supply infrastructure as part of a future hydrogen society

As a transport fuel, hydrogen has already become a solution for road transport, powering fuel cells in cars, buses and trucks, and will soon generate electricity in ships. Work is under way to overcome some of the key challenges facing hydrogen as a fuel. DNV GL is involved in various projects and studies that are looking at ways to support the development and resolve some of the safety, regulatory and technical issues.

read more

With the push for decarbonization, there is growing interest in hydrogen as an energy carrier, whether as a fuel for residential heating, as an industrial energy source or as a fuel for truck, rail and marine use. Gerd Petra Haugom, Principal Consultant, Environmental Advisory at DNV GL – Maritime, says that hydrogen as a fuel ticks many of the emission reduction boxes. “It is clean, producing no emissions except water vapour. However,” she points out, “more work is needed to ensure that its production is likewise clean and sustainable, and to build up a sustainable supply infrastructure.” At the 2017 Davos meeting of the World Economic Forum, leading industrial CEOs formed the Hydrogen Council. Its objective is to promote serious investments in the hydrogen economy. This includes promoting the commercialization and development of hydrogen for fuel cells in particular, and as a significant part of the future energy mix in general. The Hydrogen Council expects hydrogen to cover 18 per cent of energy demand by 2050, equivalent to six Gt of CO2 abatement annually. The Hydrogen Council and some governments, such as that of Norway, have committed to helping build a hydrogen supply infrastructure that will benefit road transport, industrial use, heating of homes and an integrated maritime supply chain. As a starting point, DNV GL assessed the status of the use of hydrogen in Norway. The final report for the Norwegian authorities provides a knowledge base for the development of a comprehensive strategy for research, technology development and use of hydrogen as an energy carrier in Norway. These efforts aim to prevent a chicken-and-egg scenario as seen with other alternative ship fuels.

https://www.hellenicshippingnews.com/building-a-marine-supply-infrastructure-as-part-of-a-future-hydrogen-society/[Edited]

show less

 

 

GO TOP

 

PAGES  |1| 2 | 3| 4| 5 | 6 | 7 |8 |9