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

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City Gas Distribution & Auto LPG

Business-Challenges await implementation of PNGRB's concept paper: ICRA || AGCL, OIL, GGL ink pact to set up new CGD firm in Assam || Govt. mulling ban on petrol, CNG two and three-wheelers: Nitin Gadkari || Delhi: Bad-air campaign travels in auto || City gas discoms may lose exclusive rights to market  CNG || Mumbai: Now, pay more for CNG, PNG as prices hike today || Replace industrial units’ supply with piped natural gas: Goyal || GAIL Gas Ltd to strengthen CNG infrastructure in Kolhan, Jharkhand || Industries in Telengana urged to use green fuel || GEECL stops CNG supply to Asansol-Durgapur || Kochi: CNG vehicles crowd, but no new filling stations

Business-Challenges await implementation of PNGRB’s concept paper: ICRA

Investment information and rating agency ICRA said on Tuesday (July 8) that operational challenges in running city gas distribution (CGD) networks will require resolution for actual materialisation of third-party competition in the business.

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The Petroleum and Natural Gas Regulatory Board (PNGRB) had granted exclusive marketing rights to certain pre-existing CGD networks for a limited period. These CGDs have reached the end of the timeframe for exemption from the purview of a common contract carrier. Hence, PNGRB has formulated a concept paper to determine a process to open up these CGD networks to competition with the intention of promoting fair competition and efficient use of resources while also protecting the interests of the consumers. This regulation will not be applicable to entities that have pre-determined transportation rates as part of the PNGRB bidding process for authorisation carried out in the ten rounds of bidding until now. “We have analysed the impact of the above regulation on the incumbents if the cost of service methodology is implemented for major incumbents,” said Ankit Patel, Vice President and Co-Head for Corporate Ratings at ICRA. “The findings indicate that about 65 to 75 per cent of the contribution of these entities can be met from the recovery of the network tariff. The rest of the contribution is generated from marketing or commodity margins,” he said. ICRA said in a report that the impact of third-party competition to existing operators could be more pronounced in the PNG (industrial) segment as the larger absolute volumes and the ease of tying up directly with a group of industrial customers would be relatively easier compared to the CNG segment, where domestic gas allocation needs to be sought to have a number of end-consumers. K Ravichandran, Senior Vice-President and Group Head for Corporate Ratings at ICRA said there is a possibility that existing players may challenge the final regulation in courts, which could delay it further. “While competition could intensify over the medium to long term, operational challenges such as determination of surplus capacity and access code will require resolution for the actual materialisation of third-party competition in the CGD business,” he said. (ANI)

https://www.devdiscourse.com/article/business/591203-business-challenges-await-implementation-of-pngrbs-concept-paper-icra

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AGCL, OIL, GGL ink pact to set up new CGD firm in Assam

Assam Gas Company Limited (AGCL), Oil India Limited (OIL) and GAIL Gas Limited (GGL) signed an agreement on Thursday for incorporating a new company for implementation of the City Gas Distribution (CGD) network in five districts of Assam.

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The agreement was signed by AGCL’s managing director A K Sharma, OIL’s executive director (Business Development) S K Singh and GAIL CEO A K Jana in the presence of Assam Industries and Commerce Minister Chandra Mohan Patowary. The venture is the outcome of the extension of the National Gas Grid Pipeline (Urja Ganga Project) to Assam. Patowary said that with the connection of Assam to the National Gas Grid, steady supply of natural gas shall initiate a spurt in the industrial sector, power generation sector, automotive CNG sector and domestic piped gas to households sector. The supply of piped natural gas to the industrial, commercial and domestic customers in the first phase in Kamrup, Kamrup (Metro), Cachar, Hailakandi and Karimganj districts will be a major initiative in this regard, he said. 

http://www.millenniumpost.in/business/agcl-oil-ggl-ink-pact-to-set-up-new-cgd-firm-in-assam-362873

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Govt. mulling ban on petrol, CNG two and three-wheelers: Nitin Gadkari

The government is mulling a ban on all petrol and CNG-operated two and three wheelers by 2025 to promote electric vehicles. “NITI Aayog, in its meeting held on May 14, 2019 regarding national mission for transformative mobility and battery storage has formulated an action plan to run electric two-wheeler and three-wheeler vehicles

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and has proposed to ban all IC (internal combustion) engine powered two-wheelers and three-wheelers in India starting in 2025 for two-wheelers and in 2023 for three-wheelers,” road transport and highways minister Nitin Gadkari said in response to a question in Lok Sabha on Thursday. Auto companies have opposed the move at a recent meeting held by Niti Aayog on the issue. He said for the promotion of electric vehicles in the country, the Department of Heavy Industry has notified Rs 10,000 crore phase-II of the FAME India Scheme [Faster Adoption and Manufacturing of Electric (& Hybrid) Vehicles in India] for a period of three years commencing from April 1, 2019 

https://economictimes.indiatimes.com/news/economy/policy/govt-mulling-ban-on-petrol-cng-two-and-three-wheelers-nitin-gadkari/articleshow/70076837.cms

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Delhi: Bad-air campaign travels in auto

Around 50 specially-designed autorickshaws with real-time pollution monitoring devices on Wednesday set out across the capital to raise awareness about air pollution.

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The live pollution readings were displayed on the screens attached to the vehicles. The initiative was a part of the “Hawa Badle Hum” campaign launched by GAIL India, which has been asking for ideas and suggestions from the public to combat pollution in Delhi. The autos were flagged by B C Tripathi, GAIL India CMD, from Bhikaji Cama Place, who also urged the people to participate in the fight against pollution. People can access the details on the campaign is also available on the website www.hawabadlehum.changetheair.org. According to the statement issued by GAIL, the campaign was also being complemented by a newly launched web series “Hawa Badle Hassu”. “This series is hinged on entertainment conveying messages that stands for a crusade against air pollution and environment conservation. Hawa Badle Hassu is now available for public viewing on SonyLiv platforms,” the statement added. According to GAIL, for the past three years, Hawa Badlo campaign has been able to mobilise a collective societal efforts to improve the deteriorating air quality in the country. The movement encourages a sustainable and environment-friendly lifestyle habits such as planting trees, cycling and walking, carpooling, using public transport, conserving energy and using cleaner energy sources like natural gas for industries, CNG for automobiles & PNG for commercial uses, the statement added.

https://timesofindia.indiatimes.com/city/delhi/bad-air-campaign-travels-in-auto/articleshowprint/70064799.cms

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City gas discoms may lose exclusive rights to market  CNG

Exclusive rights to market piped natural gas (PNG) and CNG of three city gas distribution companies—Mahanagar Gas Ltd, Gujarat Gas Ltd, and Indraprastha Gas Ltd may end in their respective geographical areas as the Petroleum and Natural Gas Regulatory Board (PNGRB) has called for determining network tariffs that a new entrant would pay for using their network and infrastructure.

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The PNGRB has floated a concept paper on its website related to network tariffs a third party or a new entrant would pay the incumbent for using their network and infrastructure after their marketing exclusivity has ended. Exclusivity in CGD protects the incumbent from the entry of new players who can be a possible threat to their business. CGD has infrastructure exclusivity for 20 years, with further extensions that can be acquired in blocks of 10 years. The draft regulations by the PNGRB provide two ways for determining the tariff—first, based on 14% return-on-equity, and second, based on the auction process. The board has, however, invited comments from stakeholders within three weeks and proposes to hold an open house discussion in a month’s time. “Though this move would challenge the monopolistic nature of the business, the incumbents may face competition largely in bulk supplies to state transport buses and industrial consumers. Because it’s difficult to attract retail customers who are already using PNG,” said an analyst from a rating agency. Citi Research believes that there are several legal and practical considerations that may come in the way, and the move is likely to face stiff opposition from companies. CGD network is expected to attract investments of as much as₹1.1 trillion over the next decade. At present, 31 firms are developing CGD networks across 81 geographical locations in 21 states and Union territories, supplying clean cooking fuel in the form of PNG to about four million households. The government, which plans to provide 10 million PNG connections, has introduced stringent emission levels for vehicles and plans to develop green corridors to reduce India’s carbon footprint.

https://www.livemint.com/news/india/city-gas-discoms-may-lose-exclusive-rights-to-market-cng-1562001699308.html

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Mumbai: Now, pay more for CNG, PNG as prices hike today

This is the second price revision of CNG and PNG this year; the earlier price revision happened on April 4.

Prices of CNG and PNG will increase marginally on Monday (July1). The Mahanagar Gas Limited (MGL) is going for a hike of 32 paise/kg and 23 paise/SCM respectively in CNG and PNG prices.

 

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Now, the auto rickshaw and taxi unions are pushing their demand for a fare hike. It means that from Monday, the customers will have to shell out Rs 51.99 per kg of CNG for their vehicles; including autos and taxis. Similarly, for PNG, which is cooking gas, customers of MGL will have to pay Rs 31.79/SCM, for the first slab and Rs. 37.39/SCM for next slab. MGL has attributed the fresh price hike to the increased pipeline usage cost. According to MGL officials, the cost of the Trombay RCF pipeline increased from Rs 1.04/MMBTU to Rs 25.15/MMBTU and that of Uran-Thal-Usar pipeline network from Rs 3.49/MMBTU to Rs 6.03/MMBTU. This is the second price revision of CNG and PNG this year; the earlier price revision happened on April 4. The fresh price revision will increase the fuel cost for 6.25 lakh motorists and lakhs of households. Even the fare revision has given the unions of taxi and autorickshaw drivers a reason for pressing their fare hike demand of fare hike more vigorously. The cabbies and auto drivers unions have already registered demand of Rs 3 and Rs 6 hike in minimum for 1.5km distance, respectively. In Mumbai has over 44500 taxis and 2.12 lakh autorickshaws ply on CNG fuel, apart from 1800 buses of BEST. The company also claimed that this hike would have a marginal impact of Re 0.01 and Re 0.02 per kilometre for auto rickshaws and taxis, respectively. “Even after the above revision, MGL’s CNG continues to be an attractive proposition and offers savings of about 51% and 22% as compared to petrol and diesel respectively at current price levels in Mumbai,” reads a company statement.

https://www.dnaindia.com/mumbai/report-mumbai-now-pay-more-for-cng-png-as-prices-hike-today-2766840

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Replace industrial units’ supply with piped natural gas: Goyal

In order to control air pollution in Asia’s biggest steel town Mandi Gobindgarh, the district administration along with industrialists has come up with much needed changes. In majority of furnaces, side hood suction system with bag filter house has been installed and at several industrial units coal heating system have been replaced with piped natural gas (PNG), said Fatehgarh Sahib Deputy Commissioner Dr Prashant Kumar Goyal. The DC said pollution checking centers would be connected with the central server system and it would completely eradicate the possibility of issuance of fake pollution certificates. Moreover, special devices would be installed on roads to check load of vehicles, as overloaded vehicles spread more pollution. The DC directed officials to take strict action against those commuters who violate the pollution rules and regulations. He stressed on planting saplings on large scale and their proper care. He also called upon the youngsters, NGOs and other organisations to come forward to eradicate menace of pollution.  The DC also asked the remaining industrial units to shift to PNG as it was available in Mandi Gobindgarh. He said the administration has been promoting e-rickshaws and urged farmers not to burn crop stubble.

https://www.tribuneindia.com/news/chandigarh/replace-industrial-units-supply-with-piped-natural-gas-goyal/795480.html

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GAIL Gas Ltd to strengthen CNG infrastructure in Kolhan, Jharkhand

GAIL Gas Limited has rolled out opportunities to partner in building the CNG infrastructure in the Seraikela- Kharsawan and West Singhbhum districts.

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The company is motivating land owners and individuals to collaborate for developing these two Districts by setting up CNG Station on Dealer Owned Dealer Operated ( DODO) Model. A.K Jana, chief executive officer,  GAIL Gas said that people in these districts will have a better quality of life by creating CNG infrastructure, which will promote the usage of cheaper and cleaner fuel- CNG. Partnering with the company will also be an opportunity for those in possession of land to join hands with GAIL Gas. As per this opportunity, the entire plot owned by a private owner shall be developed exclusively for setting up of CNG station, like petrol pumps, and allied commercial activities. The selection process will be as per guidelines developed by the company. After selection of the site, applicant desirous of setting up CNG station as dealer will enter into a long term agreement with company for 10 or more years on lease basis. CNG equipment (compressor/ cascade/ dispenser, etc.) for the CNG Station shall be installed and commissioned by GAIL Gas while adhering to all the statutory rules/guidelines related to fire and safety. On the other hand, the dealer will arrange all the permissions to setup CNG Station including change of land use, necessary clearance, license, etc. at own expense and cost. The day-to-day operation of the equipment as well as of CNG retail outlet including dispensing of gas and general maintenance shall be the responsibility of the appointed dealer. The dealer shall be paid commission by GAIL Gas as per the sales achieved based on the fixed dealer commission.

https://www.dailypioneer.com/2019/state-editions/gail-gas-ltd-to-strengthen-cng-infrastructure-in-kolhan.html

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Industries in Telengana urged to use green fuel 

The State Pollution Control Board (TSPCB) on Saturday (July 6) held a meeting with various stakeholders to reduce air pollution in the city.

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The representatives of the industries from Jeedimetla area, officials of CNG supplier Bhagyanagar Gas Ltd and HPCL, BPCL and IOCL attended the meeting. The aim of the meeting was to promote the use of cleaner fuels by the industries, which will help in the reduction of air pollution in the city. Addressing the meeting, member secretary of TPSCB, V Anil Kumar said, “CNG/LPG being cleaner fuel will not only reduce the emissions but also have several co-benefits such as reduced maintenance, increased efficiency, and reduction in emissions due to solid fuels handling etc.” He also urged the representatives of industries to know their responsibility and how it is a collaborative action which will ensure cleaner air in the city. More than 30 representatives from various industries in Jeedimetla area participated in the meeting and informed that they are ready to fulfill the requirements with safety measures to reduce air pollution. 

https://www.thehansindia.com/news/cities/hyderabad/industries-urged-to-use-green-fuel-544665

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GEECL stops CNG supply to Asansol-Durgapur

Great Eastern Energy of Y K Modi Group has stopped supply of CNG to Asansol-Durgapur area following a rift with the drivers. GEECL along with Essar is the only two sources of green gas so far in Bengal. The company has said in a statement that the drivers have earlier illegally stopped the work twice, been indisciplined, created severe hurdles and also handed over the keys to the truck owners. “As stated earlier, GEECL will not operate unless we are completely satisfied on safety because no operations can be carried out in unsafe conditions. The transport contractors of GEECL want to start work with new drivers in safe manner,” it has said in a statement. According to GEECL, following the ongoing situation it is closing CNG operations. “

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We have no option but to close CNG operation as it is extremely unsafe to engage any of the old drivers. We have and are always willing to resume operations but cannot and will not compromise on safety issues whether existing or perceived,” it added

https://timesofindia.indiatimes.com/business/india-business/geecl-stops-cng-supply-to-asansol-durgapur/articleshow/70135423.cms

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Kochi: CNG vehicles crowd, but no new filling stations

The savings in terms of fuel expense and other benefits of cleaner fuels have prompted many to opt for CNG  vehicles, especially auto and taxi drivers but the failure of authorities in opening more CNG filling stations in the region has made life difficult for them. 

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They are now forced to spend considerable time in queue to fill up the vehicles from the few CNG pumps in the city. Last November, oil majors Indian Oil Corporation (IOC) and Bharat Petroleum Corporation Ltd (BPCL) promised to open at least 15 CNG filling stations before March, 2019. However, only one additional outlet was opened (in Cheranellore) in the last nearly one and a half years. The commercial capital added nearly 1500 CNG autos and around 650 CNG cars in the last year. “A lot many of our members either bought new CNG autos or have converted their vehicles. Now nearly 1500 of 10, 374 members own the green fuel vehicles. They are finding it very difficult to fill the vehicles with just four pumps,” said M.B. Syamanthabhadran, convenor, Auto-Taxi Co-ordination Committee. OC sources said they have already set up pump facilities but the “undue delay” in setting up the gas pipeline by the Adani Gas Private Ltd, which oversees the city gas project, has adversely affected their plans. IOC, currently sole player in CNG distribution sector, has opened four CNG bunks at Container Road, Kalamassery, Pulinchodu and Kundannur, in March 2018. The company was planning to open five new outlets at Irumbanam, Karingachira, Kakkanad, Chengamanad and Aluva.

https://www.deccanchronicle.com/nation/current-affairs/090719/kochi-cng-vehicles-crowd-but-no-new-filling-stations.html

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City Gas Distribution & Auto LPG

Electric Mobility

Natural Gas / Pipelines / Company News

Policy Matters/Gas Pricing/Others

LNG Development and Shipping

 

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SNAPSHOT: NATIONAL

Electric Mobility

Government wants petrol stations to charge your e-vehicle || Hyundai Kona SUV Electric Car Price

Govt. wants petrol stations to charge your e-vehicle

The government is looking to put in place a framework for a mega battery manufacturing and charging infrastructure — including the use of petrol pumps for electric charging points — to push electric vehicles (EVs) in the country.

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The finalisation of plans comes amid resistance from the powerful auto lobby to the mandate to sell only electric three-wheelers by 2023 and that all new two-wheelers with engine capacity of up to 150cc may have to be electric powered by 2025. To counter this opposition, government is contemplating a phased rollout of the EV programme for two and three-wheelers and initially limit their sale to the metropolitan cities, especially those that are highly polluted. This will be akin to the implementation of emission standards such as BSIV and may partly help address concerns of the industry, which has described the government’s move as “unrealistic” and “ill-timed”. “There is the question of lack of charging points across the country. We are looking at how we can get petrol pumps to have charging stations. Once you have a network of charging stations across the country, it will promote the use of electric vehicles,” a senior official said. Currently, there are around 60,000 petrol stations operated by state-run firms and there are plans to add nearly the same number. Several private players also operate gas stations across the country. The industry has complained that the charging infrastructure is missing and the use of existing fuel stations is seen as a win-win deal. Besides, the government wants to use the EV rollout to turn India into a manufacturing base for vehicles as well as batteries and avoid a situation like the one for electronic goods and mobile phones where a late entry has resulted in China emerging as the global manufacturing hub. As part of that move, NITI Aayog, the government think tank, has floated a Cabinet proposal on “giga-scale” cell and battery manufacturing facilities in the country, suggesting a variety of sops, including income tax incentives to promote investment and a customs duty matrix that encourages domestic production.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/govt-wants-petrol-stations-to-charge-your-e-vehicle/70017793

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Hyundai Kona SUV Electric Car Price

Hyundai is all set to launch its electric car, Kona SUV, today in India. The car is being advertised as ‘India’s first real electric SUV’.

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Recently, Hyundai disclosed that the ARAI certified range of Kona is 452 km on a single full charge and claimed that the car’s battery can be charged up to 80% in less than an hour. Globally, Hyundai Kona comes in two battery variants – a 39kWh and 64kWh. Under the hood, the Indian variant will be powered by the 64 KWH lithium-ion batteries. There is a permanent magnet synchronous motor and makes 204hp and 395 Nm of peak torque. According to the company,  the top speed of the higher variant is 167 Kmph. The introductory price for Hyundai Kona Electric is Rs 25.3 lakhs.

Source: electricvehicles.in

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SNAPSHOT: NATIONAL

Natural Gas / Pipelines / Company News

GAIL commissions gas pipeline to Gorakhpur || PNGRB cuts tariff for KG Basin gas pipeline network ||OIL wins 12 oil blocks; Vedanta 10, ONGC 9, Reliance-BP one block || Regulator rejects GAIL’s plea for recovery ||Asset monetisation: Ministries and Niti Aayog differ on how to split GAIL

GAIL commissions gas pipeline to Gorakhpur

State-owned gas utility GAIL India Ltd said the Pradhan Mantri Urja Ganga (PMUG), the gas pipeline from central India to east, has reached Gorakhpur in Uttar Pradesh.

 

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The company said a 165-km spur line to take the natural gas to Gorakhpur has been successfully commissioned. “This marks the completion of the entire 750-km-long trunk pipeline section-I of PMUG constituting 30 per cent of the initially sanctioned project route,” the company said in a statement here. GAIL’s infrastructure in Gorakhpur is in readiness to commence gas supplies to the upcoming fertiliser plant and the city gas project in the city. The revised project contour spans over 3,400 km to serve eastern and northeastern states. “The PMUG project is projected to boost clean energy-led development and growth across industries — fertiliser, power, refineries, steel etc., and also fuel cleaner CNG-based transportation as well as provide convenient access to piped natural gas for households and commercial establishments.” GAIL Chairman B C Tripathi said the sequential commissioning of the PMUG project amid ground-level challenges is encouraging. “GAIL is fulfilling its commitment of commissioning the acclaimed national project within scheduled timeframe. All pipeline procurement and laying contracts aggregating over Rs 12,500 crore have been awarded, thereby contributing significantly to the Make in India initiatives of the government,” he said. In south, GAIL is scheduled to commission the 450-km Kochi-Koottanad-Mangaluru pipeline by September 2019, he said. Last month, section-I of the pipeline spanning 20 per cent of the entire project route length was commissioned.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/gail-commissions-gas-pipeline-to-gorakhpur/70066408

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PNGRB cuts tariff for KG Basin gas pipeline network

In a set back for GAIL (India), the Petroleum and Natural Gas Regulatory Board (PNGRB) has slashed the tariff the company charged for its KG Basin Natural Gas Pipeline Network by 64% to Rs 16.14 per MMBtu of gas on gross calorific value.

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Till June 30, 2019, GAIL was charging customers Rs 45.32 per MMBtu starting April 1, 2019 against GAIL’s proposal of Rs 47.20 per MMBtu. Instead, the tariff has been reduced effective July 1 and “has been worked out based on information provided by the entity and deliberations,” PNGRB said in its order citing various letters written by GAIL and other stakeholders such H-Energy Gas Marketing, GMR Energy and Gujarat State Petronet. The next review of the applicable tariff will be done after March 31, 2022. The tariff has been reduced as the economic life of the pipeline expired in February 2017 and the initial higher tariff was determined on the basis of an extension till February 2027, which is still under consideration by PNGRB and was cited by the stakeholders. However, in a respite of sorts for GAIL, the levelized tariff for the Jagdishpur Haldia Bokaro Dhamra Pipeline effective July 1, 2019 has been fixed at Rs 63.46 per MMBtu while that for the HVJ Natural Gas Pipeline at Rs 41.11 per MMBtu. These are in line with GAIL’s proposals. The stock price of GAIL on the National Stock Exchange on Monday (July1) gained a meagre 0.16% to close at Rs 312.45 apiece, on a day when the benchmark Nifty 50 gained 0.65% to close at 11,865.50 points.

https://www.financialexpress.com/economy/pngrb-cuts-tariff-for-kg-basin-gas-pipeline-network/1625243/

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OIL wins 12 oil blocks; Vedanta 10, ONGC 9, Reliance-BP one block

According to the list of winners of Open Acreage Licensing Policy (OALP) Round II and III put out by the Directorate General of Hydrocarbons (DGH),

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Reliance Industries and its British partner BP Plc won a KG basin gas block. State-owned Oil India Ltd (OIL) Tuesday (July 2) won 12 out of 32 oil and gas exploration blocks offered in latest auction while Vedanta Ltd walked away with 10 and Oil and Natural Gas Corp (ONGC) got eight blocks. According to the list of winners of Open Acreage Licensing Policy (OALP) Round II and III put out by the Directorate General of Hydrocarbons (DGH), Reliance Industries and its British partner BP Plc won a KG basin gas block. Indian Oil Corp (IOC) also got one block. Reliance-BP combine outbid ONGC in one Krishna Godavari basin block in the Bay of Bengal. This is an area that ONGC had previously relinquished and is said to hold natural gas prospects. According to DGH, OIL won 6 out of the 14 blocks on offer in OALP-II, while Vedanta walked away with five. ONGC, Reliance-BP and IOC won one block each. In OALP-III, ONGC won 7 blocks while OIL got 6 and Vedanta the remaining five. Bidding for 14 blocks on offer in the Open Acreage Licensing Policy (OALP) round-II and another 18 oil and gas blocks and 5 coal-bed methane (CBM) blocks on offer in OALP-III closed on May 15. No bid was received for any of the CBM blocks. Under the new policy, areas sought by any company are put on auction with the initiator or the company that originally carved out the block, getting a 5 point advantage. Sources said at the close of bidding for the current round on May 15, ONGC had put in bids for 20 out of the 32 blocks on offer, while OIL made bids for 16 blocks. Vedanta, which had walked away with 41 out of the 55 blocks offered in OALP-I last year, bid for 30 areas.

Indian Oil Corp (IOC), GAIL (India) and SunPetro bid for two blocks each, they said. While the OALP-I round saw an investment commitment of about Rs 60,000 crore, the government is expecting about 90,000 crore of investment in the latest round.

https://www.financialexpress.com/economy/oil-wins-12-oil-blocks-vedanta-10-ongc-9-reliance-bp-one-block/1626521/ [Edited]

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Regulator rejects GAIL’s plea for recovery

The downstream regulator has rejected GAIL’s plea seeking to recover from its customers the compensation it paid to victims of 2014 pipeline fire that killed 29 in Andhra Pradesh.

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The state-run pipeline operator had recently proposed that the amount spent on compensation and rehabilitation of the victims and their families be considered as operating expenditure for the determination of tariff of its KG Basin Natural Gas Pipeline Network. Petroleum and Natural Gas Regulatory Board (PNGRB), the regulator, didn’t accept GAIL’s plea. In its order, the board didn’t elaborate on the reasons for rejection of GAIL’s plea. But an executive well-versed with the workings of PNGRB said accepting GAIL’s proposal would have sent a conflicting signal. “PNGRB had penalised GAIL earlier for the lapses that led to the pipeline fire, and now it couldn’t be seen supporting the company in recovering compensation from customers,” the executive said. “GAIL can’t make customers pay for its own mistakes. It should pay from its own profit. It gets 12% return on the capital employed,” he added. GAIL didn’t respond to ET’s emailed query on why it considered appropriate to shift compensation and rehabilitation expenses on to its customers. GAIL had admitted to many lapses highlighted in the probe findings, including transporting wet gas through a pipeline meant only for dry gas, not providing gas dehydration unit despite promising to do so, and not complying with norms needed to keep the pipeline fit for transportation, the regulator had said in the 2015 order. “M/S GAIL has also defaulted in compliance of the various provisions with respect to design, maintenance, operation, inspection, integrity management, quality of gas etc of the PNGRB Regulations,” the regulator said in the 2015 order. Following the incident, GAIL spent hundreds of crores to replace older pipelines with new ones besides taking many other safety measures.

https://economictimes.indiatimes.com/industry/energy/oil-gas/regulator-rejects-gails-plea-for-recovery/articleshow/70065559.cms

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Asset monetisation: Ministries and Niti Aayog differ on how to split GAIL

Though it is amply clear by now that the marketing and pipeline businesses of state-run GAIL (India) will be separated, opinions of departments within the government seem to differ on the ownership and shape of the new entity to be created.

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While the ministry of petroleum and natural gas feel the pipeline company should remain a subsidiary of GAIL, same as GAIL Gas which operates the city gas distribution business, the Niti Aayog and the department of investment and public asset management (DIPAM) are of the view that the pipeline division should be an independent entity .According to sources, the Prime Minister’s Office had called a meeting to hear out both the options but is yet to give any direction. Sale of pipelines is part of the government’s asset recycling or monetisation plan. Apart from pipelines, transmission lines of Power Grid Corporation, telecom towers of BSNL and MTNL, ports and railway stations are the other assets under radar of the government. GAIL started the work to transfer its pipeline vertical into a subsidiary of the parent company and hired a consultant to work out the options last year. Earlier in the year, petroleum minister Dharmendra Pradhan had made it clear that GAIL should separate the two businesses. The company earns 70% of its revenue through marketing whereas 40% of profits come from the natural gas transmission business. GAIL has a pipeline network of over 11,400 km in India accounting for three-fourths of natural gas transmission. It is also working to add another 5,000 km of pipelines which include the Pradhan Mantri Urja Ganga Project which will connect the eastern and the north-eastern states. The gas marketer has often come under criticism for prioritising its own gas for transmission. Sources also added that pipeline owned and managed by ONGC and Indian Oil may also be looked into in the future for monetisation. DIPAM is believed to been working on various models of monetisation of existing assets of PSUs. The receipts from monetisation is likely to be used for expansion of the asset. One of the options is also that real estate investment trusts (REITs) and infrastructure investment trusts (InvITs) will run the revenue-generating assets on transfer-operate-transfer basis and investors will be able to buy units.

https://www.financialexpress.com/economy/asset-monetisation-ministries-and-niti-aayog-differ-on-how-to-split-gail/1638669/

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SNAPSHOT: NATIONAL

Policy Matters/Gas Pricing/Others

Close units not shifting to piped natural gas: CPCB || Modi Govt. likely to give up direct control of Indian Oil, GAIL, ONGC, NTPC; Here's why || Gas price: Relief for industrial units in Gujarat ||Power ministry proposes reverse e-auction for gas-run plants ||Budget 2019: Oil could come to the rescue of Modi government again, predicts Economic Survey

Close units not shifting to piped natural gas: CPCB

The Central Pollution Control Board (CPCB) has directed state boards in Haryana, Uttar Pradesh, Delhi and Rajasthan to close all air polluting industries in 23 NCR districts where piped natural gas (PNG) was available, but units had not shifted operations to it.

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According to the CPCB order, air polluting industries in 23 districts had been discharging pollutants, posing a threat to air quality in Delhi and the NCR. The CPCB had sought a status report on the conversion to PNG in the NCR. It observed that in spite of availability of PNG, industries had not switched operations. Following receipt of reports, the CPCB chairman directed state boards to issue closure order on all industrial units in the NCR where PNG supply was available and the industry had not shifted to it. The NGT has directed the state to install a waste-to-energy plant in the Rohtak cluster before December 2021, calling the proposed timeline leisurely. The NGTsaid such leisurely timeline was in conflict with rules. “We direct the Chief Secretary to take steps so that the timeline of December 2021 is advanced. The Chief Secretary may indicate progress in this regard in the next report to be furnished to this tribunal,” it said. — PTI

https://www.tribuneindia.com/news/haryana/close-units-not-shifting-to-piped-natural-gas-cpcb/800570.html

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Modi Govt. likely to give up direct control of Indian Oil, GAIL, ONGC, NTPC; Here’s why

Grappling the shortfall in budget deficit and reviving investments to spur economic growth in the country, Modi government is likely to give up its controlling stakes in most of its profitable state-run energy companies including Oil & Natural Gas Corp. (ONGC), Indian Oil Corp., NTPC Ltd. and GAIL India Ltd. According to a Bloomberg report,

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the Central government is planning to cut down its direct holding in the aforementioned energy behemoths to below 51%. The report also informed that government’s indirect holding, through arms such as Life Insurance Corporation of India will stay above 51%. In March 2019, the government had pressed cash-rich PSUs IOC and ONGC to pay a second interim dividend for the current fiscal after seeking regulatory nods. Even Finance Minister Nirmala Sitharaman had last week announced a record $15 billion asset sales target for the current fiscal, while proposing to increase the taxes on profiteering companies. Sitharaman also wanted to extract higher dividend from Reserve Bank of India (RBI) and increase duties on gold and gasoline to boost revenue and lower the budget gap to 3.3% of gross domestic product. The proposal to lower direct holdings in some state-run companies below 51% was also part of Sitharaman’s budget proposals, which she said would be considered on case-to-case basis, the Bloomberg report added. Even in 2017, the then Finance Minister Arun Jaitley wanted to create an integrated public sector oil major to match the might of the international oil and gas giants by combining some or all of its stakes in listed domestic oil and gas firms. In a regulatory filing, IOC had said: “A board meeting of the company is scheduled on Tuesday, March 19, 2019…to consider declaration of 2nd interim dividend for the financial year 2018-19.” IOC had in December declared Rs 6.75 per share interim dividend alongside a Rs 4,435 crore share buyback to help the government meet its revenue targets. ONGC had announced an interim dividend of Rs 5.25 per equity share on February 14. It too had approved a Rs 4,022 crore share buyback.

https://www.abplive.in/business/modi-govt-likely-to-give-up-direct-control-of-indian-oil-gail-ongc-ntpc-heres-why-1029325

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Gas price: Relief for industrial units in Gujarat

In a major relief to scores of industrial units in Gujarat that use natural gas as fuel, the state government on Monday (July 1) announced a relief of Rs 2.50 per SCMD in the price of natural gas used by them.

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The decision has been taken to encourage increased usage of natural gas by small, medium and bigger industrial units in the state. “The announcement follows a suggestion by the Gujarat chief minister that industrial units be provided a relief in prices of natural gas to encourage pollution-free production in the state,” the government said in an official statement. As many as 8,910 industrial units in India consume natural gas as fuel. Of this, more than 50% or 4,903 are located in Gujarat. “By offering relief in the natural gas price, the state aims to make various goods available at cheaper rates to the people of the state. The relief will also make natural gas attractive to other industrial units which currently do not use natural gas,” the statement added. Stating that steps are being taken to reduce carbon emission in Gujarat, the state government further said that natural gas is not only sustainable but also cheaper, cleaner and safer than other fuels such as coal or diesel. Last week, the state government announced that more than 300 CNG stations would be set up across Gujarat over the next two years. These stations would be set up under the state’s ‘CNG Sahbhagi Yojana’.

https://timesofindia.indiatimes.com/city/ahmedabad/gas-price-relief-for-industrial-units/articleshowprint/70032512.cms

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Power ministry proposes reverse e-auction for gas-run plants

The power ministry proposes to conduct reverse e-auction to select gasfired stations that will be offered subsidised imported fuel under a bailout package for 24,000- MW stressed projects. The power plants are proposed to be run on imported LNG to be made affordable through haircuts by central, state governments, power companies and gas transporters, sources said.

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The ministry will soon approach the Union Cabinet to seek approval for the scheme recommended by a high-level empowered committee on stressed assets, they said. The proposal, for three years starting this fiscal, is an extension of the previous rounds of subsidised gas auction schemes to power plants. The difference this time, however, is a plan to aggregate power from these plants through reverse online auction and a proposal to do away with subsidy component The operating power plants will have to increase their supply to existing buyers. Giving power plants an option to sell power on power bourses is also being explored as reported first by ET on April 14. Under the proposed scheme, a tariff-based electronic reverse will be conducted among gas-run power plants based on prevailing gas price at sea. Contracts will be signed with the lowest bidders. A gas aggregator will be assigned and the subsidy component will arise only if the imported fuel prices increase. SARITA SINGH Search for News, Stock Quotes & NAV’s The subsidy may be given directly to the gas aggregating company and the generation and distribution companies will not be affected. Alternatively, the government may also consider giving subsidy to distribution companies if power purchase is made at a cost higher than the bid price. The discoms will have to furnish details of purchase made from gasbased power plants under the scheme to claim the support. The proposed haircuts include waiver of state and central taxes on imported LNG, waiver of goods and service tax on regasification and transportation of the fuel, reduction of pipeline tariff charges and marketing margin by Gas Authority of India. Transmission charges on electricity for such stranded gas-based power projects are also proposed to be sacrificed. The power companies will not make any return on equity. The government had launched the first e-RLNG scheme in March 2015 for two years. The scheme was discontinued after two bidding rounds after the power ministry received aggressive bids from companies. Power companies have been urging the government to restart the scheme as about 8,000-mw capacity is completely stranded while the rest is stressed. Data available with the Central Electricity Authority showed the gas-based power stations in the country operated at a capacity of 24% in May. Against a requirement of 117 million metric gas to run these plants at 90% capacity, average domestic gas supply was about 31mmscmd. The allocation to these plants is 94 mmscmd.

https://economictimes.indiatimes.com/industry/energy/power/power-ministry-proposes-reverse-e-auction-for-gas-run-plants/printarticle/70015323.cms

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Budget 2019: Oil could come to the rescue of Modi government again, predicts Economic Survey

Oil could again come to the rescue of the Modi government in its second term as the Economic Survey has outlined that oil prices could decline in the current fiscal.

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Oil prices largely favoured the first term of the Modi government which has kept the inflation in check. Increasing US shale oil prodcution and weakening global demand could push the crude oil prices downwards. India, which imports around 80 per cent of its oil, benefits from low crude oil prices. In Modi government’s first term, the government earned a windfall by taxing the oil on the back of benign international oil prices. However, it also came under criticism as the domestic prices kept on climbing because the government refused to lower the tax rate on oil at the time of rising crude oil prices.

https://economictimes.indiatimes.com/industry/energy/oil-gas/budget-2019-oil-could-come-to-the-rescue-of-modi-2-0-again-predicts-economic-survey/printarticle/70068800.cms

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SNAPSHOT: NATIONAL

LNG Development and Shipping

• IOC, GAIL pact to buy stake in Adani's LNG project expires || Gail India issues tender to sell and buy two cargoes of LNG

IOC, GAIL pact to buy stake in Adani’s LNG project expires 

State-owned refiner Indian Oil Corp (IOC) and gas utility GAIL India Ltd’s initial agreement to buy a 50% stake in Adani Group’s Rs 5,000-crore Dhamra LNG project in Odisha has expired,

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Oil Minister Dharmendra Pradhan said on Monday (July8). IOC and GAIL had on September 21, 2016, signed a “non-binding MoU” with Adani Petroleum Terminal Pvt Ltd to take 39% and 11% stake respectively in the planned 5 MMTPA liquefied natural gas (LNG) import terminal at Dhamra, he said in a written reply to the Lok Sabha here. Adani Petroleum Terminal Pvt Ltd was to hold the remaining 50% stake. IOC had in 2015 signed up to use 60% of the terminal capacity for importing gas for its refineries at Haldia in West Bengal and Paradip in Odisha. GAIL too had signed up for 1.5 MMTPA of the terminal’s regasification capacity. The MoU for taking an equity stake in the Adani terminal followed GAIL dropping plans in March 2015 to set up a floating LNG import terminal at Paradip. IOC too had in 2012 signed an MoU with Dhamra LNG Port Corp Ltd (DPCL) to develop an LNG terminal at the port. After shelving their respective plans, the firms signed a pact with Dhamra LNG Terminal Pvt, a firm owned by Adani Enterprises. 

https://www.thehansindia.com/business/ioc-gail-pact-to-buy-stake-in-adanis-lng-project-expires-544920

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Gail India issues tender to sell and buy two cargoes of LNG

GAIL is also seeking an LNG cargo for India’s Dahej terminal for late December delivery on a delivered ex-ship (DES), the sources said. GAIL India has offered two cargoes of liquefied natural gas (LNG)

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for loading from the Cove Point plant in the United States in August and November, two industry sources said on Tuesday (July2). The cargoes will be offered on a free-on-board (FOB) basis, they said. GAIL is also seeking an LNG cargo for India’s Dahej terminal for late December delivery on a delivered ex-ship (DES), the sources said. The tender for the swap deal closes on July 3, they added.

https://www.business-standard.com/article/companies/gail-india-issues-tender-to-sell-and-buy-two-cargoes-of-lng-sources-119070200386_1.html

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INTERNATIONAL

Natural Gas / Transnational Pipelines / Others

Oil jumps on Saudi, Russia support for supply cuts || China to ease ownership rules on oil exploration, City Gas || Groundbreaking of Pak-section of TAPI to be performed in October: NA body informed || Exxon expects weak gas prices to offset gains from higher crude prices ||

Oil jumps on Saudi, Russia support for supply cuts

Oil prices rose more than $1 a barrel on Monday after Saudi Arabia, Russia, Iraq backed an extension of supply cuts for another six to nine months ahead of an Opec meeting this week.

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Front-month Brent crude futures for September touched an intraday high of $66.14 a barrel and were up $1.12, or 1.7 per cent, at $65.86 a barrel by 1252 GMT. US crude futures for August rose $1.10, or 1.9 per cent, to $59.57 a barrel after earlier hitting a peak of $60.10, the highest in over five weeks. The Organization of the Petroleum Exporting Countries (Opec) and its allies look set to extend oil supply cuts until at least until the end of 2019 as top producers on Sunday endorsed a policy aimed at propping up the price of crude. Opec, Russia and other producers, an alliance known as Opec+, meet on July 1-2 to discuss supply cuts. The group has been reducing oil output since 2017 to prevent prices from sliding amid a weakening global economy and soaring US output. Russian President Vladimir Putin said on Sunday he had agreed with Saudi Arabia to extend existing output cuts of 1.2 million barrels per day (bpd) by six to nine months. Saudi Energy Minister Khalid al-Falih said the deal would most likely be extended by nine months and no deeper reductions were needed. “While this needs to be ratified by the remaining members of the Opec+ group, this appears to be a fait accompli,” ANZ analysts said in a note. Oil prices have come under renewed pressure in recent months from rising US supplies and a slowing global economy. US crude oil output in April rose to a fresh monthly record of 12.16 million bpd, the US Energy Information Administration said in a monthly report on Friday. Financial markets were buoyed by a thawing of US-China relationship after leaders of the world’s two largest economies agreed on Saturday to restart trade talks. Still, analysts remain sceptical that both sides can reach a deal soon. “Until more details emerge, we are back at square one,” Alfonso Esparza, a senior market analyst at Oanda in Toronto, said in a note. “The road ahead looks complicated as China demands more equal treatment, and the US is pushing through on intellectual property protection.”

https://energy.economictimes.indiatimes.com/news/oil-and-gas/oil-jumps-on-saudi-russia-support-for-supply-cuts/70017593

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China to ease ownership rules on oil exploration, City Gas

China is easing foreign access to a range of industries including oil, mining and city gas pipelines as the government follows through on pledges to open up to overseas investors.

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China will scrap the need for joint ventures in oil and gas exploration, and for domestic control of gas networks in cities with more than 500,000 people, the National Development and Reform Commission said on its website Sunday. The statement formed an update to the commission’s so-called negative list of industries where overseas investors are restricted or banned. The new rules take effect July 30. The commission said it will also scrap all the restrictions not mentioned in the negative list by the end of this year. The announcement comes a day after the US and China struck a truce in their trade war and agreed to resume talks, while President Donald Trump said he’d delay restrictions against Huawei Technologies Co. China had already announced an easing of restrictions on ownership of banks, car manufacturing and insurance firms before the dispute with the US worsened. Data from China on Sunday showed its manufacturing sector continued to deteriorate in June as weakness in the domestic economy combined with US tariffs on Chinese goods.

“China is sticking to the opening-up policy and continuing to ease market access, despite the fact that globalization is currently hampered by unilateralism and protectionism, and cross-border investment is affected by trade frictions,” the commission said in its statement. The latest easing of investment conditions applies to a diverse group of sectors, from molybdenum mining, call centers and shipping brokers, to plants, cinemas and rice-paper manufacturing. Gas distribution companies have been a key focus for investors as President Xi Jinping’s government pursues policies that boosted use of the fuel. While opening up the sector will improve the business environment and benefit both industry and consumers, “it’s a long-term, gradual process and probably won’t have a significant impact on the industry in the short-term” since state oil and gas companies dominate the sector, said Tian Miao, an analyst at Everbright Sun Hung Kai Co. in Beijing.

https://www.businesstimes.com.sg/energy-commodities/china-to-ease-ownership-rules-on-oil-exploration-city-gas

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Groundbreaking of Pak-section of TAPI to be performed in October: NA body informed

National Assembly Standing Committee on Energy was informed on Tuesday (July 2) that groundbreaking of Pakistan-section of TAPI gas pipeline project would be performed in Chaman in

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October this year. The committee meeting, chaired by Imran Khattak, was apprised that accordingly a meeting with Turkmen experts was scheduled to be held next month. In first sitting of the Energy Committee after election of its chairman, Secretary Petroleum Division Mian Asad Hayauddin briefed MNAs about working and mandate of the Petroleum division, its attached departments and companies. He said since long the country could not find any major oil or gas discovery, which was causing fast-depletion of existing reserves. However, he said, ever-increasing energy needs of the country were being met through import of Liquefied Petroleum Gas (LPG) and Liquefied Natural Gas (LNG), terming them instant but temporary solution. The secretary was of the view that with successful and smooth execution of Turkmenistan-Afghanistan-Pakistan-India (TAPI) and Iran-Pakistan (IP) gas pipeline projects, the country could come out of the need of importing LPG and LNG. He also talked about other gas pipeline projects especially an offshore, being planned with a Russian firm, and North-South and Machikey-Taru Jabba oil pipeline. Currently, there was no significant development on the IP gas pipeline project due to some international sanctions on Iran and ‘Forced Majeure.’ He said at present the country was facing shortage of around three to six billion cubic feet gas per day, which was being met through imported gas.

https://www.brecorder.com/2019/07/02/506960/groundbreaking-of-pak-section-of-tapi-to-be-performed-in-october-na-body-informed/[Edited]

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Exxon expects weak gas prices to offset gains from higher crude prices                                          

Exxon Mobil Corp said on Monday (July 1) that in the second quarter it expects higher oil prices and refining margins compared to the prior quarter, but the gains will be offset

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by lower natural gas and weaker margins in its chemicals business. The U.S. oil major said in a filing bit.ly/2RL5hMp it expected change in crude prices to boost second-quarter profit by $400 million to $600 million. However, lower gas prices were expected to offset it by an equal measure. Natural gas prices have dropped to multi-year lows in the face of tepid demand and amid an economic slowdown and escalating global trade tensions, especially between the United States and China. Weaker margin from its chemical business is expected to impact the company’s second-quarter profit by $100 million to $300 million, Exxon said. It also estimated a potential second-quarter gain of $200 million over the first quarter from a lack of impairment charges. The company reported first-quarter profit of $2.4 billion, but missed forecasts due to a weakness across its major businesses. This was 38.6% lower than the profit it posted in the second quarter of last year. Analysts on an average were expecting Exxon to post a profit of $4.34 billion in the second quarter this year, according to IBES data from Refinitiv.

https://www.hellenicshippingnews.com/exxon-expects-weak-gas-prices-to-offset-gains-from-higher-crude-prices/

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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

 

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SNAPSHOT: INTERNATIONAL

Global LNG Development

Global LNG: Asian spot prices drop, outlooks for winter get bearish || Asia’s spot LNG benchmark goes digital with launch of electronic platform || First LNG cargo shipped from Prelude FLNG || New ownership for Dragon LNG terminal in Pembrokeshire, Wales || U.S. pursuit of booming liquefied natural gas projects likely to cause tremendous climate damage || Higher Asian prices, European gas stocks trigger LNG flow reshuffle || Thai PTT's trading arm buys LNG on free-on-board basis for 1st time -source || How U.S. LNG plays havoc with Dutch gas and Asian shipping || Vietnamese, Japanese firms cooperate in LNG & Gas research

 

Global LNG: Asian spot prices drop, outlooks for winter get bearish

Spot liquefied natural gas (LNG) prices in Asia tumbled this week after a three-week rise as new supply offers hit the market amid continuously subdued demand for the chilled fuel.

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The price for delivery of LNG in northeast Asia in August is estimated at $4.30 per MMBtu, a 50 cent drop from last week. LNG traders said demand from key buyers in Asia is likely to stay thin, with some market sources decreasing their price expectation for the upcoming winter to as low as between $6.50-$7.50/MMBtu from earlier forecast of above $8.00/MMBtu. Asian price netbacks for Atlantic produced cargoes have remained above those in Europe this week, but a lack of physical cargo demand means cargoes often cannot be sold to higher-priced markets. “Numbers may work on paper, but in practice sellers struggle to find a buyer,” an LNG trader said. In the past week, projects in Angola, Australia, the UAE and Papua New Guinea were among those that issued spot sell tenders. Angola LNG export project was selling a cargo for August delivery, a second August cargo in one week. Two cargoes were offered from Exxon Mobil Corp’s Papua New Guinea liquefied natural gas (LNG) export plant. An August cargo from the project was sold earlier this week at $4.5 per MMBtu and a September cargo at $4.55 per MMBtu, a market source said. In Australia, the Ichthys project offered two cargoes, one for late July and another for early August loading. One cargo was also offered from Australia’s Wheatstone plant, which was bid at around $4.55 per MMBtu, the source added.

UAE’s Adnoc was selling an early August cargo from its Das Island facility. India’s Gail offered two LNG cargoes for loading from the Cove Point plant in the United States in August and November and was also seeking an LNG cargo for India’s Dahej terminal for late December delivery. India’s GSPC cancelled a buy tender for August delivery, but was expected to return to the market for the cargo later. The trading arm of Thailand’s PTT bought a cargo from U.S. producer Cheniere for a likely delivery to Europe in August. Cheniere said this week that it had produced first cargo from its new Corpus Christi Train 2. Feedgas into the newly launched Cameron LNG plant in Lousiana has been consistently high since the start of July. One of its offtakers, Japan’s Mitsui is expected to load another cargo there on the Marvel Crane tanker that delivered first cargo from the plant to France last month. The vessel was first expected to reload a cargo in the Netherlands but is now heading to Cameron instead. European gas prices gained value this week as a number of unplanned outages on Norwegian gas production has reduced supply. Dutch gas price for August delivery increased by more than 50 cents to around $3.65 per MMBtu.

https://www.hellenicshippingnews.com/global-lng-asian-spot-prices-drop-outlooks-for-winter-get-bearish/

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Asia’s spot LNG benchmark goes digital with launch of electronic platform

Price agency S&P Global Platts and clearing house Intercontinental Exchange Inc said on Thursday (July 10) they are launching an electronic platform known as eWindow to the liquefied natural gas (LNG) market.

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Unlike oil, which has several liquid financial and physical trading platforms and exchanges, LNG markets are still evolving, with companies jostling to lead the space. Platts, a unit of S&P Global Inc, uses the eWindow platform as part of its pricing process. The platform allows participating companies to key in their bids, offers or transactions directly and which appear on a screen for others to see. It is aiming to launch the platform in a few months, said Ciaran Roe, global director of LNG at Platts. Currently, participating companies wanting to bid, offer or transact, do so manually through a Platts editor. The pricing agency already uses the digital platform for its oil benchmarks and is now extending it to its LNG price assessments, including the Platts Japan-Korea-Marker (JKM), which is fast becoming the benchmark price for spot LNG delivered into Northeast Asia. The JKM LNG Platts contract on ICE hit a record 44,394 lots for futures and options combined in June and reached a new open interest record of 52,080 lots at the end of June, the companies said. “As LNG markets continue to liberalize and new types of price agreements emerge between buyers and sellers of LNG, a range of hedging products are critical to allow the market to hedge risk and manage price exposure,” they added. Rising spot trading volumes have attracted several companies to launch LNG pricing and trading platforms, including Australia-headquartered Global LNG Exchange and Spark Commodities which is jointly owned by data firm Kpler and energy exchange Powernext.

https://www.hellenicshippingnews.com/asias-spot-lng-benchmark-goes-digital-with-launch-of-electronic-platform/

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First LNG cargo shipped from Prelude FLNG

TechnipFMC announces today that the first shipment of Liquefied Natural Gas (LNG) has sailed from Shell’s Prelude Floating Liquefied Natural Gas (FLNG) facility located 475 km North East of Broome in Western Australia.

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This shipment will be delivered by the Valencia Knutsen LNG Tanker to customers in Asia. TechnipFMC’s scope of work included the project management, engineering, procurement, installation, commissioning and start-up for Prelude. Nello Uccelletti, President Onshore/Offshore at TechnipFMC, commented: “Congratulations to all TechnipFMC teams involved on this incredible project. Prelude FLNG is the largest floating facility ever built, and we can all be proud of this major milestone and of the rewarding relationship we have built with Shell and Samsung Heavy Industries throughout the years”.

https://www.worldoil.com/news/2019/7/4/first-lng-cargo-shipped-from-prelude-flng

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New ownership for Dragon LNG terminal in Pembrokeshire, Wales

Ancala Partners LLP (‘Ancala’), the independent infrastructure investment manager, has announced the acquisition of a 50% interest in Dragon LNG, the liquefied natural gas (‘LNG’) regasification terminal located at Milford Haven, Wales. Ancala acquired the interest on behalf of its managed funds from PETRONAS LNG Sdn. Bhd., a subsidiary of Petroliam Nasional Berhad (‘PETRONAS’).

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Transaction terms were not disclosed. Dragon LNG is one of three LNG regasification terminals in the UK. The terminal has a gas send out rate to the UK’s National Transmission System of up to 9 billion cubic metres per annum, providing clean and reliable energy for millions of commercial and residential UK users. Facilities at the terminal were recently enhanced through commissioning of a reliquification plant. PETRONAS will continue to be a customer of Dragon LNG as a counterparty to a long-term throughput agreement with the terminal.

https://businessnewswales.com/new-ownership-for-dragon-lng-terminal-in-pembrokeshire/

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U.S. pursuit of booming liquefied natural gas projects likely to cause tremendous climate damage

The U.S. ambitious expansion of LNG projects to replace fossil fuel will probably cause much worse damage to the climate than had previously expected, according to a report released on Monday (July 1).

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The United States is investing 507 billion U.S. dollars in expanding or building new LNG terminals to ship its gas to Asian markets, where there is a growing demand for non-fossil fuel to harness climate change problems, said the report issued by Global Energy Monitor, a non-governmental pro-climate organization based in San Francisco. Washington is leading the list of the world’s top 10 countries that have made the largest investment on import and export LNG terminals, and at least 202 LNG terminal projects are currently underway worldwide, including 116 export terminals and 86 import terminals, said the report. It added that the construction of export terminals is mainly concentrated in the United States and Canada, while 42 countries and regions are building import terminals. The ongoing projects will triple the global LNG export capacity. The LNG expansion will have global warming impacts as large or larger than the expansion of coal-fired power plants, because of methane leaks that occur during drilling in the pipelines or delivery, the report warned. Methane is the chief component in natural gas that is responsible for 25% of global warming to date. “People had never expected the U.S. would become a huge gas exporter 10 years ago when large-scale oil fracking industry just got started,” said the report’s co-author Ted Nace, executive director of Global Energy Monitor, in a statement obtained by Xinhua. Today, the cost of renewable alternatives has fallen constantly amid rising concerns for climate change, the expansion of LNG infrastructure may no longer be considered financially viable in the long run, the report said. With such a scenario, the global investment of 1.3 trillion dollars in LNG infrastructure will be put at risk of becoming “stranded assets,” it suggested. Nace called for a moratorium on the expansion of LNG projects, saying that most of those projects are in the pre-construction stage and there is still time “before we lock ourselves into even more irreversible climate damage.”

http://www.ecns.cn/news/2019-07-03/detail-ifzkrnzp2018808.shtml

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Higher Asian prices, European gas stocks trigger LNG flow reshuffle

Asian LNG prices rose this week on some demand for summer cargoes, while European prices continued to drop, with an increased price spread between the two regions triggering interest in sending some Atlantic cargoes to Asia Pacific.

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The LNG price for August deliver in northeast Asia is estimated at $4.80 per MMBtu, a 20 cent rise from last week. Several deals were done this week at a price close to $5.00 MMBtu for August delivery in Asia, but sources said prices could have decreased slightly by Friday after deals closed. In contrast, front-month gas price on the Dutch hub in Europe dropped below $3.20 per MMBtu. Decreased price netbacks in Europe are making some producers to consider re-exporting cargoes from northwest Europe to more profitable regions, like Asia or the Mediterranean. Up to four transhipments of Russia’s Yamal LNG cargoes have been agreed for July, a market source said. In addition, trading houses and utilities are discussing reloads in Europe, another source said. One of these will take place in France’s Fos terminal on July 9, data from operator Fosmax showed. Japan’s Mitsui is expected to deliver a European cargo to Japan to cover a position that was initially expected to be supplied by a cargo from new U.S. plant, Cameron LNG, which was eventually sent to France, another market source said. Cameron exported its second commissioning cargo this week after earlier delays with loadings.

An uptick in Asian demand has improved Asian LNG prices this week. Demand came from Japanese and Chinese buyers, market sources said. Japan’s JERA was on the market, as well two or three Chinese companies, sources said but added demand was still weak and prices will likely drop back to $4.50 MMBtu if there is not enough rise in Asia’s temperatures to drive gas demand for cooling this summer. On Friday, JERA bought a September cargo from Vitol at $4.80 per MMBtu at Platts Market on Close window. In India, there is some short-term LNG demand from power plants, a source active in the Indian markets said. In addition, India’s Gujarat State Petroleum Corp (GSPC) and Reliance Industries were both looking for an October cargo each, the source added. On the supply side, Angola LNG is selling a cargo for delivery in August in a tender closing July 2, two market sources said. Malaysia’s Petronas has offered two cargoes via the LNG trading marketplace Global LNG Exchange (GLX), a market source said. In Europe, high gas storage levels are weighing on prices. High storage levels may increase the number of relaods in Europe later this year. “I think we will have too much gas (in stocks) for September, so something will have to move,” a gas trader in Europe said.

Source: LNG Global/Reuters

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Thai PTT’s trading arm buys LNG on free-on-board basis for 1st time -source

The trading arm of Thailand’s PTT has bought a liquefied natural gas (LNG) cargo on a free-on-board (FOB) basis for the first time, according to a company source, the latest sign the company is broadening its trading activity.

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The spot cargo was sourced from an unnamed supplier by PTT International Trading, the Singapore-based trading arm of PTT, on an FOB basis from Cheniere Energy’s Sabine Pass LNG project in Louisiana in the United States, the source told Reuters on Wednesday (July3). The cargo is likely to be delivered into Europe in August, the source added, declining to be named as he was not authorised to speak with media. PTT could not immediately be reached for comment on the matter. PTT’s existing long-term purchase contracts are all priced on a delivered ex-ship (DES) basis. “This cargo is the first FOB LNG cargo transacted by PTT group, who has been known as a traditional end buyer since they started importing LNG in 2011,” the source said. The move follows PTT’s first sale of LNG last month when it delivered a cargo into India in June, and is likely part of the company’s plan to expand its trading activity after it set up an LNG trading desk in its Singapore trading office in February. The company’s chief executive told Reuters in an interview last month that PTT is in no hurry to lock in new long-term LNG contracts as it monitors domestic gas output and the growth of renewables over the next 2-3 years. Thailand is expected to become more reliant on LNG imports because of falling output in the Gulf of Thailand, but natural gas demand growth has slowed to about 1% or less in the past 3-4 years because of increases in solar power. 

Source: LNG Global

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How U.S. LNG plays havoc with Dutch gas and Asian shipping

Dutch gas prices hit 10-year lows this week, reflecting high European inventories swelled by liquefied natural gas (LNG) imports, testing levels at which companies that committed to buy U.S. LNG will start making serious losses.

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Prices for month-ahead Dutch gas have dropped by two-thirds since their peak last September of just under 30 euros per megawatt hour (MWh). On Friday, Dutch gas for July delivery slumped to 8.95 euros per MWh, the lowest since August 2009. The price falls are in part thanks to an influx of U.S. LNG supplies. But customers of Cheniere Energy, which dominates U.S. production, have been feeling the pain from their long-term commitments for months due to a fixed pricing formula. Cheniere sells its LNG at 115% of U.S. gas futures plus a liquefaction fee of between $3.00 and $3.50 per MMBtu, with a few buyers paying less. At today’s prices, Cheniere LNG costs around $5.61 per MMBtu with the liquefaction fee, compared to $3.19 per MMBtu paid for natural and regasified gas at the Dutch hub, a benchmark for European prices. Yet U.S. LNG is still being sold to Europe, which received between 30% and 50% of all U.S. supplies between January and May this year, Refinitiv Eikon shipping data shows. Traders say the liquefaction fee is a sunk cost for offtakers because it still needs to be paid even if they cancel purchases, a risk known years ago when sales and purchasing agreements were signed with Cheniere. Because of Cheniere’s flexible destination clauses, buyers take the LNG and sell onwards to others or deliver it themselves to countries around the world. Traders say for price dynamics to batter deliveries into Europe, the spread between 1.15 times Henry Hub prices and European benchmarks would have to be too low to cover the variable costs of shipping across the Atlantic and regasification at terminals. That spread narrowed to below a dollar per MMBtu in mid-May for the first time since a brief dip beneath that level in 2017, Refinitiv data and Reuters calculations show.

It has since stayed there consistently, barely covering shipping costs at the start of June. Regasification costs, not disclosed publicly, can reach 20 cents per MMBtu in Iberia and even higher at floating terminals, although companies that have booked long-term capacities are likely to pay lower rates. It has helped that U.S. Henry Hub prices are also weak, slumping to a three-year low last week at $2.159 per MMBtu as clement weather and record-breaking shale production boosted inventories. Benign Asian LNG demand, starting last winter, has been a major factor behind Europe taking so much LNG. As Asian LNG prices fell with demand, the arbitrage between the Atlantic and Pacific basins disappeared, compounding the impact on Europe. In mid-July however, spot purchases of LNG will begin to focus on September deliveries, which is conventionally the beginning of rising Asian demand as Japan, South Korea and China start building stocks for winter. European pipeline gas prices also tend to rise with the onset of winter. Nevertheless, the seasonal pick-up may be weighed down by continuing bearish factors – rising supplies from new or expanded plants, stubbornly high gas stocks across the world and, in Asia, demand dented by economic headwinds.

https://seanews.co.uk/shipping/tanker/how-u-s-lng-plays-havoc-with-dutch-gas-and-asian-shipping/

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Vietnamese, Japanese firms cooperate in LNG & Gas research

The signing was carried out in the framework of Vietnam-Japan investment promotion and business connection conference, jointly held by the Ministry of Planning and Investment and

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the Japan External Trade Organisation (JETRO) on the occasion of Prime Minister Nguyen Xuan Phuc’s participation in the 14th G20 Summit in Japan. The Japanese group is currently a strategic shareholder and holds 8 percent of stake in Petrolimex. The MoU is a foundation for the two sides to work together to develop a detailed report on LNG and gas in Vietnam, serving an upcoming LNG project of Petrolimex.In the coming time, Petrolimex will focus on building LNG import port in central Khanh Hoa province.Previously, Petrolimex also signed an MoU with the Electricity of Vietnam (EVN) on cooperation in developing clean energy. Accordingly, Petrolimex will supply LNG to power plants built by the EVN in Khanh Hoa.On this occasion, Petrolimex and the Japan Cooperation Centre Petroleum (JCCP) also inked an MoU, which is considered as a significant step in the bilateral cooperation that has been built up by Petrolimex and the JCCP since 2011.The cooperation focuses on human resources development and technical and technology cooperation in the medium- and down-stream oil and gas industry, as well as in other relevant fields, to meet the demand of real development and new energy trends.Through the MoUs, the parties will continue to strengthen sustainable strategic partnership for common development goals, contributing to bolstering the fine friendship and solidarity between Vietnam and Japan.

http://sggpnews.org.vn/national/vietnamese-japanese-firms-cooperate-in-lng-gas-research-82462.html

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SNAPSHOT: INTERNATIONAL

Natural Gas / LNG Utilization

Scania Argentina unveils CNG bus, it will operate soon in Buenos Aires || IVECO launches new S-WAY long-haul truck with natural gas version || Estonia’s largest CNG filling station opens in Tartu

Scania Argentina unveils CNG bus, it will operate soon in Buenos Aires

Scania Argentina has officially launched the first bus powered by natural gas that will circulate on route 132.

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The bus was bodied by Marcopolo K280 in its Torino Low Entry model. The launch is part of the Swedish brand’s plans to lead the change towards a cleaner urban transport system and will be part of the Sustainable Mobility Program of the Transportation Secretariat of the City of Buenos Aires. “We want to transform the transport system that represents a problem, since 30% of greenhouse emissions are made by transport in general – cargo and passengers – and we are part of the problem and we have decided to be an active part of the solution,” said the General Director of Scania Andrés Leonard. Since December, Scania Argentina has been conducting a pilot test on route 132 with a biodiesel bus. Now it will incorporate to the same line this CNG bus that will make the daily route of 200 kilometers covering Flores – Once – Retiro – Once – Flores. The Scania bus features a 9-liter, five-cylinder, Otto cycle engine with a power output of 280 HP. It is equipped with four CNG tanks that are installed in the bus roof. The capacity of these tanks is 860 liters which is equivalent to 193 m3 of compressed natural gas and allows it to have a range of around 290 kilometers, so the bus will be able to complete the entire route without the need to refuel. The time to refuel is 15 minutes if it is done in normal CNG stations, with a small nozzle, where private cars and taxis refuel; if it is done with a thick nozzle the refueling would take only 3-5 minutes, practically the same as diesel. According to the brand, this CNG engine is the most modern in the world and has a very good energy efficiency with high torque at low turns. This feature allows reducing fuel consumption, decreasing breaks and stops with higher durability, and significantly cutting the noise level with improved passenger comfort. The emissions are another point in favor and the main objective when using this type of natural gas engine that greatly exceeds the requirements of Euro 6 standard.

http://www.ngvjournal.com/s1-news/c3-vehicles/scania-argentina-unveils-new-cng-bus-that-will-be-operating-soon-in-buenos-aires/

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IVECO launches new S-WAY long-haul truck with natural gas version

IVECO presented its new IVECO S-WAY heavy vehicle for on-road missions in a milestone Convention held at the IFEMA exhibition Center in Madrid, Spain, to its dealer network, its sales people, customers and the representatives of the international press.

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The new IVECO S-WAY builds on the outstanding sustainable performance of the brand’s heavy line, achieving further reductions in PM, NOx and CO2 emissions. True to its heritage, it combines low TCO with low emissions. This is achieved with the exclusive HI-SCR after-treatment system and through the exceptional fuel efficiency resulting from the advanced engine technology and Hi-Tronix transmission, and the multiple fuel-saving solutions such as the Smart EGR. For logistics operators wishing to run a ‘green’ fleet, the IVECO S-WAY Natural Power remains the only LNG truck offering a range of up to 1,600 km for long haul missions with 460 hp. With this vehicle, they will benefit from all the advantages of natural gas, the only immediately available low-emission alternative to diesel in the heavy segment, which delivers Particulate Matter emissions 99% lower than diesel, 90% less NO2 and, with biomethane, CO2 is 95% lower, near zero. At the event, Hubertus Mühlhäuser, CNH Industrial CEO, commented: “Within CNH Industrial, IVECO is part of something bigger and uses the synergies within the Group. This new flagship Heavy Duty Truck is not only an achievement for the IVECO brand, it is also an important milestone for CNH Industrial as a whole.”

http://www.ngvjournal.com/s1-news/c3-vehicles/iveco-launches-new-s-way-long-haul-truck-with-natural-gas-version/

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Estonia’s largest CNG filling station opens in Tartu

Estonia’s largest CNG (compressed natural gas) filling station with 48 refuelling units will be opened this week in the eastern city of Tartu, to serve the city’s new public transportation fleet of CNG-powered buses.

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The station is operated by Estonian energy company AS Alexela and will refuel buses of the Go Bus transport company. The natural gas-powered buses are considerably cleaner than diesel buses and the fuel is almost two times cheaper. “Our aim is to start selling only domestic biomethane, i.e. green gas in the filling station,” Chairman of the Alexela Management Board Aivo Adamson said. Estonia’s largest CNG filling station is located on the territory of the old Tartu Bus Company at Ringtee 25. There will be 42 units for slow refuelling for buses, and three units for gas-powered cars in the section of the station open for the public. “This is the first ever filling station with such capacity and capability in this part of the world,” Adamson maintained. All 64 new buses serving the urban network will be refuelling at the new station. The section open for the public can be used by the transport companies of the Tartu region and private individuals. This is the fifth filling station in Estonia where Alexela offers CNG for refuelling. Alexela is an Estonian company active mainly in the energy business and has been awarded the title of Culture Friend by the Ministry of Culture.

http://www.ngvglobal.com/blog/estonias-largest-cng-filling-station-opens-in-tartu-0702

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SNAPSHOT: INTERNATIONAL

LNG as a Marine Fuel / Shipping

Insurance rates have 'increased 10-fold' after attacks in the Strait of Hormuz, shipping CEO says || Global Energy Ventures to order up to eight CNG carriers at CIMC Raffles || SEA\LNG welcomes Port of Virginia as first port in the US to join membership || Arctic sea route opens for the summer with first Yamal LNG cargo ||Hyundai Heavy unit bags order for 2 LNG-fueled bulk carriers

Insurance rates have ‘increased 10-fold’ after attacks in the Strait of Hormuz, shipping CEO says

  • Six oil tankers and a U.S. spy drone have been attacked since May either in, or near, the Strait of Hormuz — a strategically important waterway which separates Iran, Oman and the United Arab Emirates.

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  • “Insurance to transit the Strait of Hormuz has actually increased 10-fold in the last two months as a consequence of the attacks,” Anthony Gurnee, CEO of Ardmore Shipping, told CNBC’s “Squawk Box Europe” on Tuesday.
  • Every ship needs various forms of insurance, including annual war-risk cover as well as an additional ‘breach’ premium when entering high-risk areas.

Source: LNG Global

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SEA\LNG welcomes Port of Virginia as first port in the US to join membership

SEA\LNG has announced today that the Port of Virginia has become the first port in the United States of America to join the multi-sector industry coalition aiming to accelerate the widespread adoption of liquefied natural gas (LNG) as a marine fuel. Peter Keller, Chairman, SEA\LNG, commented:

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“We’re very pleased to welcome the Port of Virginia as our first US port member. The US has vastly increased its LNG export capacity since the industry really took flight in early 2016, inspiring development in LNG bunkering capabilities on the East and West Coasts. The addition of the Port of Virginia to the coalition marks the climbing interest in LNG as a commercially viable, environmentally sustainable fuel for US domestic and international shipping.”
The Port of Virginia is an international hub port with connections to over 45 countries worldwide, and an extensive rail network across the United States. As part of its pledge to deliver operational excellence and sustainable growth, the port is currently undertaking a $700m expansion project to increase overall container capacity by 40%, as well as increasing lifting and docking capabilities across its six terminals. In March 2019, the port also established a working group to examine the benefit and scalability of LNG bunkers for maritime trade.
The SEA\LNG coalition unites key players from across the LNG marine value chain to address the barriers to the adoption of LNG; advocating for collaboration, demonstration, and communication on key areas such as regulation, emissions, infrastructure, and the economic case, to provide the confidence and demand required for an effective and efficient global LNG value chain for 2020 and beyond. LNG continues to provide a major advantage in terms of improving air quality and human health, further, LNG, in combination with efficiency measures being developed for new ships in response to the IMO’s Energy Efficiency Design Index (EEDI), will provide a way of meeting the IMO’s target of a 40% decrease in GHG by 2030 for international shipping. 
This partnership will provide a great opportunity to accelerate the adoption of LNG as a marine fuel and continue the progress that has been made to offer a safe, mature, commercially viable, long-term pathway towards a zero-emissions shipping industry.
The Port of Virginia is the second North American port alongside the Vancouver Fraser Port Authority, and the fifth global port alongside the Port of Rotterdam, the Maritime and Port Authority of (MPA) Singapore, and Yokohama Kawasaki International Port Authority (YKIP), to join the coalition’s growing roster of 36 members.

https://www.ajot.com/news/sealng-welcomes-port-of-virginia-as-first-port-in-the-us-to-join-membership[Edited]

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Global Energy Ventures to order up to eight CNG carriers at CIMC Raffles

Australian compressed natural gas (CNG) company Global Energy Ventures (GEV) has signed a letter of intent with Chinese shipyard CIMC Raffles for the construction of up to eight CNG carriers.

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The LOI is based on a firm order for four 200 mmscf CNG carriers and options to build additional four. GEV’s CNG Optimum 200 ship design has received approval by the American Bureau of Shipping (ABS). “Executing our first LOI with a respected shipyard to deliver our first CNG Optimum contract is indeed a key milestone for GEV representing a major de-risking event,” said Jens Martin Jensen, a non-executive director of GEV. “Together with our advisors Clarksons and SeaQuest, we continue to focus on our preferred shipyards to refine their technical specification and capital cost improvements, and work towards a final draft contract,” Jensen added. Under the proposed shipbuilding contract, the first ship will be delivered on a 30-month construction schedule, then every four months for the following three ships. The major terms of a shipbuilding contract, including final contract price, payment terms, scope of supply, and delivery date, are subject to further discussion and agreement by both parties. According to Maurice Brand, CEO of GEV, the company will now accelerate its regional gas supply agreements that are being progressed across multiple regions. “Our target projects are either seeking to commercialise stranded gas assets, commercialise associated gas production, or provide a transport solution to high growth markets with bankable long-term offtake customers in place. Our ship capital cost for the 200MMscf is transformational for CNG to become a viable alternative to FLNG or sub-sea pipelines,” said Brand.

https://splash247.com/global-energy-ventures-to-order-up-to-eight-cng-carriers-at-cimc-raffles/

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Arctic sea route opens for the summer with first Yamal LNG cargo

A liquefied natural gas (LNG) tanker carrying a cargo from the Yamal LNG plant has spent this week making its way through Arctic waters north of Russia towards Asia, marking the first voyage of the 2019 summer season across the Northern Sea Route.

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The Vladimir Rusanov, an Arc7-classed LNG tanker that can plough through semi-cleared waters, left the Sabetta port on June 29 and is in the Chukchi Sea close to the Bering Strait, Refinitiv Eikon shipping data showed on Friday (July 5). The route is frozen for most of the year but is being increasingly used during the summer as ice clears quicker and for longer as the climate changes. Vessels are now able to cross the route without the use of ice-breakers to clear their path. Independent Russian gas producer Novatek began operations at Yamal, in northwest Russia, with the aim to ship some of the LNG eastwards with its Arc7 tankers. Last year, as the terminal was ramping operations it began in December 2017, four such tankers were sent eastwards. For Novatek, the route is attractive because it gives a much more direct access to the world’s largest LNG consumers in Asia. For other shipping companies, the route has the potential to cut the costs and time to access Asian markets. PetroChina, the international arm of Chinese state energy firm CNPC, is a 20 percent stakeholder as well as customer of Yamal, with French oil major Total holding another 20 percent stake. Novatek is expected to take a final decision to build Arctic LNG 2, another liquefaction and export facility next to Yamal, very soon after selling stakes to Total, two Chinese and two Japanese companies. The Northern Sea Route is attracting other shipping firms: Maersk, the world’s largest container shipping company, sent a test vessel along the route last summer while Dubai government-controlled DP World said last month it wanted to run ports along the route. Climate change activists lament the use of route however, because fear it will spoil pristine environments while encouraging shipping, a contributor to greenhouse gas emissions.

Source: LNG Global

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Hyundai Heavy unit bags order for 2 LNG-fueled bulk carriers

Hyundai Samho Heavy Industries Co., a local shipbuilder, said Thursday it has clinched a deal to build two bulkers fueled by liquefied natural gas (LNG). Under the deal with H-Line Shipping Co.,

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a midsize South Korean shipper, Hyundai Samho will build two 180,000-ton vessels, which will be used on a route between South Korea and Australia starting in 2022. The value of the deal was not revealed. This is the second time that H-Line has placed an order for LNG-fueled vessels with Hyundai Samho Heavy, an affiliate of industry leader Hyundai Heavy Industries Co. Last October, the shipper placed an order worth 140 billion won for two LNG-fueled bulkers. With the latest order, there will be seven LNG-powered vessels in South Korea. Demand for LNG-fueled vessels is expected rise due to a new International Maritime Organization (IMO) regulation. The IMO will lower the sulfur content cap for marine fuels from 3.5 percent to 0.5 percent in 2020. LNG is considered more environmentally friendly than the Bunker C oil used for marine fuel, since it produces lower levels of fine dust and sulfur oxides.

https://www.hellenicshippingnews.com/hyundai-heavy-unit-bags-order-for-2-lng-fueled-bulk-carriers/

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SNAPSHOT: INTERNATIONAL

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

IGL-IOCL break ground on first HCNG production unit || Clean Energy opens RNG fueling station in NYC

IGL-IOCL break ground on first HCNG production unit 

Indraprastha Gas Limited (IGL) in collaboration with Indian Oil Corporation Limited (IOCL) on Thursday broke ground on the Hydrogen CNG (HCNG) production unit here at the Rajghat 1 depot of Delhi Transport Corporation (DTC).

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The unit is set up to produce 4 tonnes of compact reformer based HCNG for DTC buses every day. This comes on directions from the Supreme Court of India, which had required IOCL and IGL to collaborate on the first semi-commercial plant as a pilot project for conducting a study on the use of HCNG fuel in 50 BS IV compliant CNG buses in the Capital city. The plant is set to be commissioned by November this year and a performance report submitted to the Apex Court after the six-month trial is completed. The Supreme Court had authorised the Environment Pollution (Prevention & Control) Authority (EPCA) to monitor this project. Speaking at the foundation stone-laying event, EPCA Chairman Bhure Lal said that this project would be the first step to expanding its reach across the country in the times to come. He stressed that it is now a question of human survival and new technology needs to be adopted to improve air quality. IOCL Chairman, Sanjiv Singh called HCNG a tailor-made solution for addressing pollution related concerns in the country, especially in Delhi and IGL Chairman, Gajender Singh added that now City Gas Distribution business is spreading to every corner of the country, with the Delhi NCR region contributing in a big way. Hydrogen spiked CNG when used in an engine in place of CNG results in clean combustion. Automotive Research Association of India (ARAI) tests have shown HCNG usage results in up to 70 percent reduction in CO emissions and up to 25 percent reduction in hydrocarbon 

http://www.millenniumpost.in/delhi/igl-iocl-break-ground-on-first-hcng-production-unit-361616

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Clean Energy opens RNG fueling station in NYC

Clean Energy Fuels Corp., the leading provider of natural gas fuel for transportation in North America, welcomed city officials, community leaders, and environmental advocates to the opening of its newest natural gas fueling station in Hunts Point—the first station in New York City to exclusively offer renewable natural gas (RNG) for medium- and heavy-duty vehicle fleets.

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“A few blocks from here is Hunts Point Market, the largest food distribution center of its kind in the world, resulting in approximately 15,000 truck trips per day,” said Chad Lindholm, vice president of sales for Clean Energy. “This long-envisioned station will serve fleets operating in Hunts Point with a lower-cost alternative to diesel “A few blocks from here is Hunts Point Market, the largest food distribution center of its kind in the world, resulting in approximately 15,000 truck trips per day,” said Chad Lindholm, vice president of sales for Clean Energy. “This long-envisioned station will serve fleets operating in Hunts Point with a lower-cost alternative to diesel fuel that can lead to substantial reductions in truck-related pollution and greenhouse gas emissions.” The Hunts Point station will exclusively offer Clean Energy’s Redeem, the first commercially available RNG vehicle fuel derived from capturing biogenic methane emitted from decomposing organic materials at dairies, landfills, and wastewater treatment plants. Redeem enables at least 70 percent reduction in carbon emissions when displacing diesel or gasoline, according to California Air Resources Board estimates. Trucks fueling with Redeem represent a significant reduction in greenhouse gas (GHG) emissions. For example, 100 trucks running on RNG can lower GHG as much as 9,294 metric tons annually. This is equivalent to planting 237,942 trees, removing 1,961 cars off the road or recycling 3,331 tons of waste that would otherwise be sent to the landfill. In addition to Hunts Point, Clean Energy operates four natural gas stations in New York City, consisting of stations at LaGuardia and JFK Airports, and two stations in Brooklyn.

http://biomassmagazine.com/articles/16310/clean-energy-opens-rng-fueling-station-in-nyc[Edited]

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