NGS’ NG/LNG SNAPSHOT – JULY 2020, VOLUME 1

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City Gas Distribution & Auto LPG

AK Jana takes over as IGL’s new Managing Director

Before joining IGL as Managing Director, Jana was Chief Executive Officer of Gail Gas Ltd (a wholly-owned subsidiary of GAIL) engaged in the business of city gas distribution.

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He has taken over from ES Ranganathan who ceases to be a Director and Managing Director. IGL is a joint venture of GAIL India Ltd, Bharat Petroleum Corporation and Delhi government. Before joining IGL as Managing Director, Jana was Chief Executive Officer of Gail Gas Ltd (a wholly-owned subsidiary of GAIL) engaged in the business of city gas distribution. Jana is a graduate in Production (Mechanical) Engineering and has over three decades of experience in the gas sector. He has vast experience in project execution of construction, commissioning, operation and maintenance of gas processing plant and LNG terminal, rotary equipment, natural gas and LPG pipelines.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/ak-jana-takes-over-as-igls-new-managing-director/76416209

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Maruti pushes CNG variants

Rising diesel prices have prompted Maruti Suzuki India Limited (MSIL) to push the sales of CNG variants but rival Hyundai is keeping its faith on the fuel,

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which has turned costlier than petrol in Delhi and has seen its price advantage with petrol getting reduced in other cities. Market leader Maruti sees an opportunity for CNG and it plans to sell about 1.5 lakh CNG vehicles this year. It had witnessed a six per cent growth in the sales of its CNG vehicles last year. Maruti offers 10 of its models in CNG but plans to bring more of models under the clean fuel. There are only 1,700 CNG stations in the country at present. The government has plans to expand this to 3,400 stations by the end of this year covering about 370 cities from 160 cities now. Maruti has eight of its models in CNG powertrains — the Alto, WagonR, Eeco, Tour S, Eritga, Super Carry, Celerio and S-Presso — and plans to extend it across most of its models. “The consumer is still wary of CNG because of performance and safety issues. We will start a special communication campaign with the customer telling him that our factory fitted CNG vehicles are safe and the performance is good,” Shrivastava said. Hyundai recently launched its premium sedan Elantra with a BS-VI diesel engine, and the company will continue to focus on diesel despite the price hike. A company spokesperson said 47% of the buyers of the new Creta have opted for diesel. The share of diesel is 40 per cent for premium hatchback i20 and 20% in smaller hatchback Grand i10.

https://www.telegraphindia.com/business/maruti-pushes-cng-variants/cid/1784579

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Adani Green Energy among top 50 most valuable publicly traded firms in India

In terms of market value, the Adani Group firm has surpassed ICICI Prudential Life, TechM, Cipla, HDFC AMC

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On 16 March, shares of Adani Green closed at ₹117.70 on the BSE, while in today’s session the stock ended at a fresh record high of ₹400.65 apiece. With a market capitalization of ₹626.54 billion, Adani Green Energy Ltd on Thursday entered the club of top 50 most valued publicly traded firms in India, claiming 45th rank, according the BSE data. In terms of market value, the Adani Group firm has surpassed ICICI Prudential Life, Tech Mahindra Ltd, Cipla Ltd, HDFC Asset Management Ltd, Hero MotoCorp, JSW Steel Ltd, Gail India and Eicher Motors Ltd. The scrip surged nearly 240% in the last three months amid higher volumes. On 16 March, shares of Adani Green closed at ₹117.70 on the BSE, while in today’s session the stock ended at a fresh record high of ₹400.65 apiece, up 5% from its previous close. Since 17 March, the stock has fallen only in 11 sessions. Year to date, it rose 140.7%. Adani Green on 9 June announced that it bagged a manufacturing-linked solar contract from the Solar Energy Corporation of India (SECI) to develop 8 GW of projects. The transaction is valued at ₹45,000 crore, or $6 billion. With this win, Adani Green will have 15 GW capacity under operation, construction or under contract. The company targets achieving an installed generation capacity of 25 GW of renewable power by 2025 at an investment of ₹1.12 trillion, or $15 billion, in the renewable energy space in the next five years. In its annual report, the company said that it is seeking shareholders’ approval to raise nearly ₹2500 crore via equity shares or any other instruments in one or more tranches. Earlier in April, Total invested about ₹3,707 crore for 50% partnership with Adani Green Energy in a joint venture that will house 2.148 gigawatts (GW) of operating solar power projects across 11 States in India.

https://www.livemint.com/market/stock-market-news/adani-green-energy-among-top-50-most-valuable-publicly-traded-firms-in-india-11592476731055.html

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Collector Kochy asks oil firm to expedite city gas project

In a proactive step to expedite the works on city gas project, the district collector has asked Indian Oil-Adani Gas Pvt Ltd (IOAGPL) to come up with a proper schedule to give 40,000 piped natural gas (PNG)

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connections in the district within five or six months. Meanwhile, IOAGPL has started efforts to get extension for the project, the deadline of which is in October, 2020. TOI had on Monday (June 15) carried an article regarding the slow pace of the project, which was launched in October 14, 2015. In the past four-and-a-half years, IOAGPL could give less than 2,000 connections whereas it should have given around 40,000 connections as per target. On Tuesday, collector S Suhas summoned IOAGPL officials and sought clarification for inordinate delay on their part in implementing the project. Then, the officials said that there were various reasons for the delay, including shortage of workers due to the lockdown and subsequent restrictions. Even though the lockdown has been eased, labourers who mainly hail from other states are not available, the officials said. In the next three months also, there may not be much progress in the work due to rain and shortage of workers. “The district collector has asked us to prepare a schedule for completing the project. We should give 40,000 PNG connections and set up 50 compressed natural gas (CNG) outlets as part of the city gas project. We will submit a report to the district collector in this regard in consultation with our head office,” an official with IOAGPL said. Efforts for seeking nod from Petroleum and Natural Gas Regulatory Board (PNGRB) for giving extension for completing the project have also been made.According to IOAGPL officials, many man-hours were lost due to various reasons like floods in 2018 and 2019. “We expect that there will be a positive response from PNGRB,” an IOAGPL official said. According to IOAGPL officials, though the agency could give just 1,900 PNG connections so far, it has completed the plumbing works in around 15,000 households in various local bodies in Kochi. “Moreover, we have laid pipeline for supplying PNG. We have also started seven CNG outlets and work on another eight is progressing. So, we will be able to achieve the target without much delay,” an official said.

https://timesofindia.indiatimes.com/city/kochi/collector-asks-oil-firm-to-expedite-city-gas-project/articleshow/76432041.cms

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India: Maruti Suzuki launches natural gas version of the Celerio

Striving towards providing a range of green and sustainable offerings to its customers, Maruti Suzuki India Limited rolled out BS6 compliant S-CNG variant of Celerio,

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as part of the company’s vision of ‘Mission Green Million.’ It is the seventh BS6 S-CNG offering from Maruti Suzuki, offering a mileage of 30.47 km/kg (Bharat Stage VI or BS6 is the most stringent emission standard issued by the Government of India). “Celerio has always struck a chord with our customers for being a perfect car for city driving. The ‘Easy to Drive, Easy to Love’ Celerio became increasingly popular amongst young urban couples, appreciated for its comfortable ride, easy maneuverability and excellent fuel efficiency. It was also the first car to introduce Auto Gear Shift technology in India, pioneering the two pedal technology. With over 500,000 customers choosing Celerio, we hope to extend its popularity with the BS6 S-CNG variant. Maruti Suzuki is determined to propagate green and sustainable mobility in the country,” said Shashank Srivastava, Executive Director (Marketing & Sales), Maruti Suzuki India Limited. With CNG models in the market close to a decade back, Maruti Suzuki now offers an extensive range of green vehicles. Having already sold one million green vehicles (including NGVs and hybrids), the company aims to sell the next one million in the next couple of years, under its ‘Mission Green Million.’ Maruti Suzuki’s S-CNG vehicle range is aligned to and complements the Government of India’s vision of reducing oil import and enhancing the share of natural gas in the energy basket of the country from 6.2% now to 15% by 2030. The Government is working to rapidly increase CNG refueling network in the country. There has been a phenomenal growth of 56% in new filling station additions last year.

http://www.ngvjournal.com/s1-news/c3-vehicles/india-maruti-suzuki-launches-natural-gas-version-of-the-celerio/

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IGL Q4 results; Net profit up 12 per cent on higher gas sales

Indraprastha Gas Ltd, the largest CNG distribution company of the country, on Wednesday (June 17) reported a 12 per cent rise in March quarter net profit on the back of higher gas sales.

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Net profit of Rs 252.63 crore in January-March compared with Rs 224.72 crore in the same period a year back, the company said in a statement. The firm, which retails CNG in Delhi and neighbouring cities of Noida, Greater Noida, Ghaziabad, Muzaffarnagar, Rewari, Gurugram and Karnal, saw overall sales volume rise to 567 million standard cubic metres in Q4 of 2019-20 from 564 mmscm a year back. Turnover was marginally higher at Rs 1,697 crore. The company’s gross turnover rose to Rs 7,131 crore in FY20 from Rs 6,337 crore in FY19, showing an increase of 13 per cent. Net profit in FY20 was up 44 per cent to Rs 1,135 crore from Rs 786 crore in FY19, driven by higher volumes and reduction in corporate tax rates, it said. During 2019-20, total sales volume grew by 9% over the previous year, with CNG recording 7 per cent growth in volumes and piped natural gas posting volume growth of 12%. The average daily gas sale during the year has gone up to 6.44 MMSCMD per day from 5.91 MMSCMD in the previous year. IGL board recommended a dividend of 140% for consideration of the members in the Annual General Meeting. IGL has well laid out its city gas distribution infrastructure in Delhi, Noida, Greater Noida, Ghaziabad, Rewari, Gurugram, Karnal and Muzaffarnagar which consists of over 13,000 kms of pipeline network. It supplies CNG to over 11 lakh vehicles in NCR through a network of over 550 CNG stations. IGL also supplies piped cooking gas to nearly 14 lakh households in these cities.
The pipeline network is being further expanded by IGL to cover Ajmer, Pali and Rajsamand in Rajasthan, Shamli, parts of Meerut, Fatehpur, Hamirpur and parts of Kanpur in Uttar Pradesh and Kaithal in Haryana, the statement added.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/igl-q4-results-net-profit-up-12-per-cent-on-higher-gas-sales/76435790

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GO TOP

.Electric Mobility& Bio- Methane

India to be electric Vehicle manufacturing hub by 2025-Nitin Gadkari

Addressing  a webinar on ‘India’s Electric Vehicle Roadmap post-COVID-19’, Union Minister for Road Transport & Highways, Nitin Gadkari expressed

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confidence that India will become a major manufacturing hub for electric vehicles. He said that the Government was also extending all the support it possibly can to the Electric Industry. He also added that the Ministry of Finance has already revised the Good and Service Tax rates for the Industry at 12 percent. Outside of e-Rickshaws, two-wheelers account for 90 percent of electric vehicles sold in the country. In addition, a large number of electric two and four-wheeler manufacturers are scheduled to launch new EVs in the market. The Ministry of Road Transport and Highways feels that the new launches will boost the Electric Vehicle Industry, and will accelerate the Central Government’s plan of turning the country into an electric vehicle manufacturing hot-spot.

Source: Drive Spark/Indian Oil & Gas

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Indian EV segment likely to continue drawing investments: Report

According to a Deloitte report, fundraising for EV startups 

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and battery compound companies could likely get more challenging in the short term and development in infrastructure of EV might be delayed due to lack of funding, according to a recent report released by Deloitte on EV segment investments. However, M&A and fundraising activities are likely to pick up in medium and long term considering these startups are crucial for developing the EV sector in India. Further, the valuation of EV startups could become more attractive in the short term compared to pre-COVID-19 era, reveals the report. Talking to ETAuto. Dilip Dusija, Partner, Deloitte India elaborated, “As regards the scenario for funding in EV space is concerned, it is definitely going to get impacted due to what’s happening around us but that will be a short term phenomenon because there is so much of focus on EVs in India by the government and a lot of policies going forward will be more conducive to promote EVs. The recent Make in India/vocal for local focus is also going to push investments in electric vehicle space.” The segments which will see immediate interest in the post-Covid era are two-wheelers, three-wheelers and battery swapping segment. On the corporate side, battery manufacturers may also see some investments. There could be a possible increase in demand for the rental and subscription model for EVs, added the report.
To reduce dependence on China for imports, EV companies are also pushed to set up local manufacturing facilities thus, leading to enhanced requirements of funds and opening up opportunities for investors~

The pandemic has led to large-scale distress to electric vehicle supply bases, assembly plant closures due to their dependency on imports from China which has made it a challenging situation for the Indian EV players. The Galwan border tension between India and China has further strained the relations. To reduce dependence on China for imports, EV companies are also pushed to set up local manufacturing facilities thus, leading to enhanced requirements of funds and opening up opportunities for investors. Dusija pointed out that India is getting more broad-based in terms of the investor community tracking the early-stage investment space. Earlier Chinese investors were one of the major players, but now the scenario is changing. The Deloitte analyst said, “Chinese investors are not the only investors in VC space. We are all aware of Japanese money coming into India, either directly into early-stage deals or through the fund of fund route. Not just financial investors but even strategic investors from Japan have shown interest in early-stage deals in India.” He further added, “Then there are social/impact funds (mostly US-based) who want to invest in technologies which are more environment friendly, so that’s another bunch of investors who are looking at this space very closely. Not to forget, a lot of strategic investors and corporates in India itself who want to back this space. Funds backed by HNIs and family offices have also started testing waters in early-stage deals.” Several major automotive companies launched new EV models. Further, some of the foremost players pledged millions of dollars for the EV segment. Certain OEMs like MG Motor have also entered into agreements with companies to install fast-charging stations which might result in faster adoption of EVs in the market.

Source: ET Auto

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Electric Vehicle market likely to register 2.5 million unit sales in 2020

In an optimistic scenario, EVs are estimated to grow by 8.6% year-on-year (YoY), registering 2.5 million unit sales (battery electric vehicles plus plug-in hybrid electric vehicles)

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globally in 2020. As the market recovers, which is probably after June in the best-case prospect, it is predicted to experience healthy growth. Frost & Sullivan’s recent analysis, Global Electric Vehicle Market Outlook 2020, finds the Covid-19 uncertainty will globally dent electric vehicle (EV) sales, which are estimated to stand somewhere between ±9% in 2020 compared to 2019 under three different scenarios—gradual containment, severe pandemic, and global emergency. But as the market recovers, which is probably after June in the best-case prospect, it is predicted to experience healthy growth. In an optimistic scenario, EVs are estimated to grow by 8.6% year-on-year (YoY), registering 2.5 million unit sales (battery electric vehicles plus plug-in hybrid electric vehicles) globally in 2020.
“EV sales will be driven by the implementation of stringent emission norms across countries and global policies favouring the adoption of battery electric vehicles (BEVs),” said Prajyot Sathe, automotive and transportation industry manager at Frost & Sullivan. “Additionally, non-monetary or tax incentives are likely to be more attractive for buyers as countries with the highest EV penetration ratio such as Norway and the Netherlands offer these rather than cash incentives.” Sathe added, “If BEVs are pushed by original equipment manufacturers (OEMs) on new energy vehicle (NEV) credit mandates, China is set to remain the market leader with a 48.3% share. Further, Europe is expected to have the highest YoY growth of over 10%—availability of models, reduced delivery times and compliance push are major growth factors in the EU.” To tap into the growth prospects exposed by EV, market participants should focus on the following:
The introduction of new models will help OEMs increase the percent penetration of EVs.
A huge number of recyclers and dismantlers will come into play as the first phase of batteries will be available for second life or recycling.
Charging-as-a-Service is an emerging trend. Hence, partnerships will be necessary for traditional participants to compete with startups.
Capitalizing on existing expertise will help component manufacturers sustain the transformation of the vehicles.

Source: ET Auto

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U.P. cabinet approves road tax relief to EV manufacturers, increases traffic fines

There will be a 100% exemption in road tax on the first one lakh two-wheeler electric vehicles to be manufactured and 75% exemption for four-wheelers.

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The Cabinet approved tax exemption for the manufacture and promotion of electric vehicles to encourage their production.  The Uttar Pradesh cabinet on Tuesday (June 16) approved road tax relief to manufacturers of electric vehicles and announced a huge increase in fines for traffic violations. It passed a proposal under which there will be a penalty of Rs 500 for wrong parking for the first time and Rs 1,500 for the second time. There is also a penalty of Rs 1,000 for riding without a helmet and of Rs 10,000 for those not giving way to fire brigades and ambulances. There will be a penalty of Rs 2,000 for creating hindrance in government’s work and Rs 10,000 for getting licences by hiding facts, senior minister and government spokesman Sidharth Nath Singh said. The Cabinet also gave its nod for increasing financial assistance to the families of Army and paramilitary forces’ personnel killed in the line of duty from Rs 25 lakh to Rs 50 lakh, he said, adding that it comes into effect from April 1. The Cabinet meeting presided over by Chief Minister Yogi Adityanath approved increasing the financial assistance given to the wife and dependents of jawans hailing from the state and whose families reside here. Among other decisions, the Cabinet approved tax exemption for the manufacture and promotion of electronic vehicles to encourage their production. There will be 100 per cent exemption in road tax on the first one lakh two-wheeler electronic vehicles to be manufactured and 75 per cent exemption for four-wheelers, he said. The Cabinet decided to give 6.50 acres of land in village Devri in Mirzapur district for free to the central government for setting up a Kendriya Vidyalaya there.

Source: ET Auto

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Hyundai, Kia and LG Chem join hands to invest in EV battery startups

Hyundai Motor Group is planning to deploy 44 eco-friendly vehicles by the year 2025, which include 23 battery electric vehicles. Hyundai Motor Company, Kia Motors

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Corporation and LG Chem have joined hands to launch “EV & Battery Challenge” (EVBC), a global competition to identify up to 10 electric vehicle and battery start-ups for potential investment and collaboration, informed Kia in a release on Tuesday (June 23). As the automaker claims, the selected start-ups will have the opportunity to work hand-in-hand with Hyundai, Kia and LG Chem on core technologies. Also, Hyundai and Kia are co-sponsoring the competition which builds on LG Chem’s 2019 Battery Challenge, informed the South Korean automaker. Hyundai Motor Group is planning to deploy 44 eco-friendly vehicles by the year 2025, which include 23 battery electric vehicles. As the automaker said, the start-ups that have working prototypes and are building technologies in EV charging and fleet management, power electronics and components, personalization services and battery management, systems, materials, recycling and manufacturing can participate in this competition. Commenting on this, Youngcho Chi, President & Chief Innovation Officer, Hyundai Motor Group, said, “We are widening our collaboration with start-ups that have promising and innovative ideas. We look forward to working with various start-ups that will lead the global EV market and next-generation battery innovation through a joint program with LG Chem, which has world-class battery technology.” Myung-Hwan Kim, Chief Production & Procurement Officer and Head of the battery research centre at LG Chem’s Energy Solution Company, said, “LG Chem is continuously striving to lead in battery technology development based on an open innovation approach. We will foster potential start-ups in partnership with Hyundai and Kia, and strengthen our capabilities in the EV sector.” The startups that pass the first review on business feasibility and technology, will go through virtual interviews in October, informed Kia. Then, the finalists will attend a two-day workshop in November at the Hyundai CRADLE Silicon Valley office, the hub for Hyundai Motor Group’s open innovation in the U.S.

Source: ET Auto

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Compressed bio-gas plant inaugurated in Namakkal

Palaniswami said Indian Oil Corporation and Germany’s Oil Talking company jointly had set up a bio-gas plant in Namakkal at the cost of Rs 34 crore.

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The plant is producing 2.4 MW of electricity. Namakkal: A compressed bio-gas (CBG) plant was inaugurated in Namakkal district by chief minister Edappadi K Palaniswami through video conference in the presence of Union minister for petroleum and natural gas Dharmendra Pradhan on Tuesday (June 23).The plant is said to cost Rs 25 crore. “I have inaugurated retail sale stations in Namakkal, Puduchatram, Rasipuram and Salem areas along with this CBG plant,” he said. Palaniswami said Indian Oil Corporation and Germany’s Oil Talking company jointly had set up a bio-gas plant in Namakkal at the cost of Rs 34 crore. The plant is producing 2.4 MW of electricity. “Now, additionally, CBG unit has been set up,” he said. The new unit will produce 15 tonne of CBG and 20 tonne of bio-manure.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/compressed-bio-gas-plant-inaugurated-in-namakkal/76541875

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Gas/ Pipelines/ Company News

Gas demand has sharply recovered: GAIL

Natural gas demand has sharply risen and is now barely 5-7% lower than the pre-Covid levels, GAIL Chairman Manoj Jain has said. GAIL‘s gas sales had dropped by 30% in the early days of the lockdown

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as factories stopped operating and vehicles went off the roads. But the demand is fast returning. Gas demand from key industrial sectors such as power and fertilizer has returned to pre-covid level while the demand for compressed natural gas, used in vehicles, has risen to about half the normal, Jain said. GAIL’s petrochemical plant at Pata is also operating at full capacity after staying shut for 2-3 weeks during the lockdown. GAIL has launched certain cost-optimisation measures, which it expects to help maintain its profitability this year, Jain said. GAIL has reported a 10% year-on-year rise in profit to Rs 6,621 crore in 2019-20 mainly on the gains from switching to a new corporate tax regime. The turnover for the year declined 4% on year to Rs 71,730 crore. In the Jan-March quarter, the profit rose 169% on year to Rs 3,018 crore due to tax gains. The quarterly revenue, however, fell 7% to Rs 18,268 crore mainly due to a decline in income from natural gas marketing. The company isn’t planning to cut its planned capital spending for the year but fears that some projects may take longer to complete due to the pandemic, resulting in rollover of some expenditures to the next year, Jain said. GAIL’s shares closed up 2% on Wednesday (June 24) when the benchmark sensex ended 1.58% down.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/gas-demand-has-sharply-recovered-gail/76615374

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Indian Oil proposes gas pipeline through eco-sensitive zone in TN and Puducherry

The Indian Oil Corporation Limited (IOCL) is proposing to lay a gas pipeline inside the eco-sensitive zone of Ossudu Bird Sanctuary, designated as one of the important

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wetlands of Asia by the International Union for Conservation of Nature and Natural Resources (IUCN). It will be an underground Regasified-Liquified Natural Gas (R-LNG) pipeline. As per the application submitted by IOCL to the National Board for Wildlife on June 4 seeking wildlife clearance, about 38.5 hectares of eco-sensitive zone will be falling under the project area, of which 31 hectares is in Tamil Nadu and rest in Puducherry. Documents, accessed by The New Indian Express, don’t reveal details on how many trees are likely to be felled, but the proposed pipeline will be built just 200 meters away from the protected area. When contacted, IOCL officials said, “There is no alternate route available to align the pipeline outside the eco-sensitive zone since the anchor customers namely M/s Mohan Breweries and M/s Hindusthan National Glass Ltd are located within this eco-sensitive zone of the Ossudu Bird Sanctuary. The pipeline alignment was selected and finalised with due care avoiding reserve forest, dense habitation etc. During joint inspection with forest officials, if any concerns are raised, minor alignment changes can be made.” The Petroleum and Natural Gas Regulatory Board (PNGRB) has authorised IOCL for laying, building and operating the 1444.6 km long Ennore-Thiruvallur-Bengaluru- Puducherry-Nagapattinam-Madurai-Thoothukudi underground natural gas pipeline that will evacuate R-LNG from the Ennore import LNG terminal and deliver natural gas to the Industrial anchor customers located across Tamil Nadu, Pondicherry, Andhra Pradesh and Karnataka. The estimated cost of the project is Rs 6,025 crore and the initial capacity of the pipeline will be 35 MMSCMD which is expandable upto 85 MMSCMO over a period of 25 years. As part of this project, an underground pipeline will branch from intermediate pigging station (IP102) located at Mandagapattu village in Vikravandi taluk of Villupuram district to Puducherry that will deliver R-LNG to the industrial anchor customers located across Tamil Nadu and Puducherry. This pipeline will also feed the City Gas distribution (CGO) networks, which will ultimately be the source of natural gas supply for Piped Natural Gas and Compressed Natural Gas for usage by the public at large. Despite the benefits it offers, environmentalists say having an underground gas pipeline 200 meters away from an important wetland and major freshwater lake like Ossudu sanctuary can be dangerous in case of an accident or a leak. M Yuvan of Madras Naturalists Society said, “Ossudu lake is one of the largest freshwater lakes and plays a pivotal role in terms of ensuring water security, especially for Puducherry.”

https://www.newindianexpress.com/states/tamil-nadu/2020/jun/23/indian-oil-proposes-gas-pipeline-through-eco-sensitive-zone-in-tn-and-puducherry-2160425.html

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Uniform transmission tariff will boost liquidity, ensure robust price discovery: Rajesh ediratta, IGX

A uniform transmission tariff in the gas market will ensure more liquidity and active participation of industry players resulting into effective and robust price discovery,

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according to Rajesh Kumar Mediratta, Director at Indian Gas Exchange (IGX), the country’s first gas trading platform launched Monday (June 15).“Tomorrow if there is a uniform gas transmission tariff policy across the country, then there will be one virtual hub for quoting the price which will facilitate more active participation, more liquidy and more competition leading to an effective and robust price discovery,” Mediratta told ETEnergyworld in an interview. At the launching ceremony of the IGX platform, oil minister Dharmendra Pradhan said that the downstream regulator Petroleum and Natural Gas Regulatory Board (PNGRB) will soon announce a new “pro-business” tariff policy for gas transport. Speaking on the move, Mediratta said that this is a very suitable move as reforms in transportation of gas will give a boost to trading through exchange

https://www.energyinfrapost.com/uniform-transmission-tariff-will-boost-liquidity-ensure-robust-price-discovery-rajesh-mediratta-igx/

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Dharmendra Pradhan bats for splitting GAIL, new gas tariff policy

Union Petroleum Minister Dharmendra Pradhan on Monday (June 15) said the ministry was considering the bifurcation of GAIL, a step towards bringing transparency to India’s gas market.

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He also batted for a market-driven pricing mechanism by introducing a new tariff policy for natural gas soon. The government is planning to unbundle GAIL into two companies for gas transmission and marketing business. The state-run company has entrusted Ernst &Young as a consultant. “There were concerns that how can a pipeline company be a trader. GSIL India has requested for dividing the company into two verticals, one of which will focus on just gas transmission. That can address market concerns that a gas marketing company can’t be a key transmission services provider, too,” Pradhan said, launching the country’s first natural gas exchange, Indian Gas Exchange (IGX).The ministry of petroleum and natural gas is likely to seek the approval of Union Cabinet for the unbundling of GAIL. In addition, the government is yet to take a final call on whether nomination gas will be part of the gas hub. If nomination gas sold at a lower rate is brought into this trading hub, it will be a huge boost for the producers like ONGC and Oil India. The minister said the new gas exchange would be a step towards market-driven pricing mechanism. “IGX will create more transparency and will play the role of a mediator between the buyer and the seller. Moreover, there will be a market-driven pricing mechanism, the biggest indicator of our progressive policy. The government is moving towards a market-driven price formula,” Pradhan said.  “The government and the regulator are working to have a progressive and pro-business tariff policy soon,” he said. IGX, set up by the Indian Energy Exchange (IEX), will offer the option of both just buying the product as well as purchase along with delivery. The company said that 12 members and over 350 consumers are on board for its operations. IGX would offer spot and forward contracts at Dahej, Hazira, and Kakinada.“IGX will play an important role in achieving the next-generation energy infrastructure in India. IGX is a step towards a free and open market, and PNGRB will only be a custodian of the rulebook in the sector,” he added. Last year, Pradhan had said the primary job of GAIL was to lay gas infrastructure in the country, while marketing can be “done by anyone”.

https://www.business-standard.com/article/companies/pradhan-bats-for-gail-bifurcation-new-market-driven-tariff-policy-on-gas-120061501127_1.html[Edited]

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Need to be more sensible: Sonowal on PCBA’s closure order to OIL

Two days after the Assam pollution control board ordered the Oil India Limited (OIL) to close all its production and drilling operations at the Baghjan oilfield,

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Chief Minister Sarbananda Sonowal on Sunday said authorities need to be “more sensible” and that he will look into the matter. The PSU major has already announced that it will move the Gauhati High Court on Monday (June 15) for a stay of the closure notice, if they do not receive a favourable reply from the Pollution Control Board, Assam (PCBA). “We need to be more sensible,” Sonowal said at a press conference here when asked about the PCBA’s ‘closure notice’ issued to OIL on June 19. Mentioning that he had not yet read the PCBA document, he said, “I will look into the matter.” The chief minister said, his government’s prime concern at the moment is the blaze that is continuing since June 9 following the blowout on May 27, and helping the people who are suffering. Asked specifically if the state government supports the PCBA’s decision asking the OIL to close all its wells in Baghjan area of Tinsukia district, Sonowal said, “A lot of industries right from thermal power plant in Namrup, Assam Gas Company, Brahmaputra Cracker and Polymer Limited and all tea gardens in upper Assam are completely dependent on the OIL.” The Baghjan oil field has a total of 22 producing wells — 18 for crude, four for gas. The oil field has been in operation since 2003. Well Number 5 at Baghjan has been spewing gas uncontrollably for the last 26 days. It caught fire on June 9, killing two of OIL’s firefighters at the site. Following the accident, the PCBA sent a show cause notice to the energy major on June 10 seeking details of its operations in Baghjan in the last 15 years, within a week. Citing a number of violations by the PSU major, the PCBA issued the “closure notice” alleging that the company did not obtain required permission from PCBA for the Baghjan oil fields, but OIL categorically denied it and claimed it has “PCBA’s consent” for all its operations in the state.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/need-to-be-more-sensible-sonowal-on-pcbas-closure-order-to-oil/76502247

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HEAD

GAIL Q4 net jumps 170%, expects gas volumes lost in lockdown to return soon

State-owned gas utility GAIL India Ltd on Wednesday (June 24) reported a 170% jump in its fourth-quarter net profit, as lower corporate tax rate offset lower petrochemical

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and natural gas prices. Net profit in January-March 2020 at Rs 3,018.20 crore, or Rs 6.69 per share, was 169% higher than Rs 1,122.23 crore, or Rs 2.49 a share, net profit in the corresponding quarter a year ago, GAIL Chairman and Managing Director Manoj Jain told reporters here. Jain said the company opted for lower corporate tax rates offered by the Government to firms willing to forego exemptions. The lower tax rate offset a dip in petrochemical, liquid hydrocarbon and natural gas prices. Besides, leading to a dip in energy prices, the outbreak of the coronavirus pandemic and the ensuing lockdown to contain its spread also evaporated demand after industries shut down.  Jain said natural gas demand fell by up to 30 per cent in April as industries shut down and city gas operations comprising of mainly CNG sales saw a slump with vehicles going off road.  The demand has since returned to near normal after lifting of the restrictions. “Except for CNG, we are near normal,” he said adding that pre-COVID-19 levels for CNG sales are expected in two months. The fall in domestic demand led to the company asking both domestic producers as well as its overseas LNG suppliers to reschedule supply of some of the gas volumes. In 2019-20, the company imported 74 cargoes or shiploads of liquefied natural gas  — 44 from US, 3 from Qatar, 15 from Gazprom of Russia and 12 from spot or current market. As many as 56 cargoes of the LNG contracted from the US were sold in overseas market in the financial year ended March 2020. In 2020-21, it has scheduled 49 of US cargoes to come to India and sold 28 of them in the overseas market. Another 8-9 cargoes are left untied, he said. Considering the slump in demand in the first quarter, GAIL may end up cutting down on spot volumes.  Jain said the company had a capita expenditure (capex) spending of Rs 6,114 crore in 2019-20, mostly in laying of pipelines. In the current financial year 2020-21, it plans to maintain a capex spend of Rs 4,000-5,000 crore, he said adding that there is no review of the spending in view of COVID-19 as most of the expenditure is in ongoing committed projects of laying gas pipeline grid. Jain said the company has decided to opt for the tax dispute resolution scheme, the Vivad se Vishwas Scheme 2020, in respect of 44 number of income tax cases, involving 21 assessment year 1996-97 to 2016-17 having an estimated financial implication of Rs  2,157.34 crore. “On settlement of these cases, in terms of the scheme, there would be an income tax liability of approximately Rs  1,183.15 crore and accordingly, after considering the existing provision of Rs 265.59 crore already made in the previous years, additional provision of Rs  917.56 crore has been made towards tax expenses during the financial year 2019-20,” he said. For the full financial year 2019-20, GAIL recorded a 10 per cent rise in its net profit to Rs 6,621 crore as the company opted for lower corporte tax rate.

https://www.dailypioneer.com/2020/business/gail-q4-net-jumps-170—expects-gas-volumes-lost-in-lockdown-to-return-soon.html

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GAIL explores buying 26% stake in newly launched Indian gas Exchange

State owned GAIL (India) Ltd plans to acquire around 26% stake in India’s first natural gas exchange that went online last week, said two people aware of the development. 

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According to an expression of interest (EoI) seeking its equity participation in a gas exchange, the state-owned firm wants to come in as a promoter with 26% equity stake. The public sector unit owns liquefied natural gas (LNG) terminals and is already a member of the natural gas trading platform, set up by Indian Energy Exchange. “GAIL invites online offers from Party who shall submit Expression of Interest (EOI) offering equity participation to GAIL in their Gas Exchange company established/ proposed to be established in India, for setting up gas exchange for natural gas trading and access on pan-India basis,” the EoI said. GAIL chairman and managing director Manoj Jain told reporters on Wednesday (June 24) that the firm is analysing the opportunity to buy a stake in Indian Gas Exchange. The Indian Gas Exchange provides day-ahead market and forward contracts, including daily, weekly, weekday, fortnightly and monthly, at three physical hubs in Dahej, Hazira in Gujarat, and Odoru in Andhra Pradesh. “A transparent and neutral natural gas trading platform commonly known as “Gas Exchange” can further facilitate market-based mechanism. Additionally, the Gas Exchange is also expected to drive competition, leading to innovative business models and cost-efficient structures, thus supporting the overall affordability of gas,” the EoI said. This comes in the backdrop of the National Democratic Alliance government pushing for a gas-based economy. Gas accounts for around 6.2% of India’s primary energy mix against the global average of 24%. The government plans to increase this to 15% by 2030. India’s gas demand is expected to be driven by fertilizer, power, city gas distribution and steel. The government also wants to set up a gas trading hub.
Source: Indian Oil & Gas/Livemint

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Fitch affirms ‘BBB-‘ rating at GAIL, outlook negative

Fitch Ratings on Monday (June 29) said it has assigned ‘BBB-‘ rating with a negative outlook to state-owned gas utility GAIL India.

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The rating is capped at the same level as India’s sovereign ‘BBB-‘ rating, Fitch said in a statement. GAIL’s dominant market position in the regulated utility gas-transmission business, complemented by its diversification into other business segments, and healthy credit metrics were factors governing the rating. “Fitch rates GAIL as an integrated utility, considering its presence in both gas transportation and marketing along with petrochemical and liquid-hydrocarbon businesses,” the statement said. Fitch said it expects the pandemic, which would affect natural-gas consumption in India, and market volatility including lower crude oil prices to reduce GAIL’s pre-tax profit in financial year 2020-21 by around 25%. “Lower EBITDA and our assumptions of an increase in capex and dividend payouts would cause GAIL’s net leverage to rise to 1.7x in FY21 from 0.8x in FY20,” it said. The rating agency said it assessed GAIL’s status, ownership, and control by the state as ‘strong’ due to its strategic importance in the Indian gas-transmission sector. The state also appoints its board. However, the company operates as a commercial entity. “We expect all key segments of GAIL to be affected by the coronavirus in FY21, although operating performance should improve in FY22 to closer to pre-COVID-19 levels. We expect GAIL’s gas-transmission segment to be affected by lower natural gas demand in the country, which we expect to dip by 6 per cent in FY21,” it said. Also, liquid hydrocarbon and petrochemical segments would face volume and margin headwinds due to weakening demand in 2020, with gradual recovery through 2021. “GAIL’s gas-marketing segment faces price and volume risks under its long-term Henry Hub (HH) linked contracts from the US, especially in the low crude price environment when spot liquefied natural gas (LNG) is cheaper than HH-linked US LNG. We expect GAIL to be able to mitigate volume risks by selling excess supply in the international market although current prices may lead to losses on unhedged volumes, which we estimate at 25% of the US LNG supply in FY21,” it said. On government considering a proposal to transfer GAIL’s transmission pipeline assets to a wholly-owned subsidiary, Fitch said a majority stake sale in the proposed subsidiary is likely to be credit negative.
“The stake sale is unlikely to happen before 2022 as the gas market will not be mature before that and state support would be needed for GAIL to build a pipeline grid. However, Fitch continues to treat this as an event risk as the timing and details of the sale are uncertain,” the statement added.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/fitch-affirms-bbb-rating-at-gail-outlook-negative/76701651

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Policy Matters/ Gas Pricing/Others

India to end central control of gas prices, lift LNG transport use

India will gradually end central controls on gas pricing as it seeks to attract foreign investment and technology to lift local output, oil minister Dharmendra Pradhan said on Friday (June26).

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India which is a large emitter of greenhouse gases and has multiple gas pricing regimes, aims to raise the share of gas in its energy mix to 15% by 2030, from 6.2%. “This is an incentive we are giving to investors to come to India and take advantage of pricing and marketing freedom and produce more and invest more,” Pradhan said at the BNEF summit. To boost gas usage, India is expanding infrastructure including building new liquefied natural gas (LNG) import plants and connecting households with an expanding gas pipe network. New Delhi said recently that no authorisation was needed to set up LNG dispensing facilities for vehicles. India’s top gas importer Petronet LNG said on Friday it wants to partner with fuel and gas retailers on LNG stations along highways for long-haul trucks and buses. Petronet wants to set up 5 LNG stations in the fiscal year ending March 2021, and 300 by 2023. It eventually aims to have 1,000 LNG stations across India, it said on its website. Meanwhile, Indian Oil Corp, the country’s top refiner and fuel retailer, said this week it wants to start LNG retailing through its fuel pumps. GAIL (India) Ltd’s executive director Rajeev Mathur said his firm is looking for partners to set up LNG dispensing facilities. Mathur said India’s gas demand is expected to rise by 3%-4% between October 2020 and March 2021, after witnessing a huge fall in April-May due to a coronavirus lockdown. Imported LNG accounted for about half of India’s 60.8 billion cubic meters of gas consumption in the fiscal year to March 2019.

https://auto.hindustantimes.com/auto/news/india-to-end-central-control-of-gas-prices-lift-lng-transport-use-41593335964732.html

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Govt to defer new emission norms for agri tractors, harvesters & construction equipment vehicles by 6 months

Transport ministry has decided to defer the roll out of the next stage of emission norms for construction vehicles, agricultural combined harvesters and tractors by six months –

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from October 2020 to April 2021 – in view of the Covid pandemic. The move comes after the agriculture ministry and construction equipment manufacturers suggested deferring the timeline because of the global health crisis. They have suggested the need to give more time for implementation of the new emission norms. “Considering the request, the ministry has issued the draft notification regarding deferment of BS (construction equipment vehicle/ tractor equipment)-IV emission norms which pertain to construction equipment vehicles, tractors and harvesters, from October 1, 2020 to April 1, 2021 to invite suggestions from stakeholders,” a ministry official said. Globally, the emission norms are different for these categories of vehicles and all other vehicles. Sources said the equipment manufacturers and farmers groups had been pursuing the deferment of these norms for the past one year. The ministry has also recently issued draft notification to do away with the mandatory requirement of feracrylum gel tube in every commercial vehicle, which is used to stop bleeding. The ministry has also delayed the rolling out of a few vehicle standards, which don’t compromise passenger safety, to bring some comfort to the Covid-hit automobile industry.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/govt-to-defer-new-emission-norms-for-agri-tractors-harvesters-construction-equipment-vehicles-by-6-months/76502269

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LNG terminal owners GAIL, Petronet join India’s first gas trading platform

Liquefied natural gas (LNG) terminal owners, state-run GAIL (India) Ltd and Petronet LNG Ltd (PLL) have joined India’ first natural gas exchange,

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that went online today, said Rajesh Kumar Mediratta, director, Indian Gas Exchange. With others such as Manikaran Power, Torrent Power and Adani Gas onboard, the exchange will help in the revival of stranded gas fuelled power projects and reducing fertiliser prices and subsidy, Mediratta added. The other members and clients of the exchange are; Geeta Power, GMR Group, Piramal Glass, Asahi Glass, Gujarat State Fertilizers & Chemicals Ltd, Gujarat Narmada Valley Fertilizers & Chemicals, Krishak Bharati Cooperative Ltd, Saint Gobain, Kajaria Ceramics, Bhagyanagar Gas, Maharashtra Natural Gas Ltd, Haryana City Gas and Gujarat Borosil, he said. Set up by Indian Energy Exchange, the natural gas trading platform will also help towards discovering market price of gas on the exchange. India consumes around 145 MMSCMD of gas. “We as IEX desire to play in the overall energy basket of the country, which is beyond electricity. So, electricity is one and then gas is the other one and there could be many other similar players of energy baskets,” said Rajiv Srivastava, managing director and chief executive officer, IEX. “It seems like the most opportune time because there is a very strong push by the government to make India into a gas-based economy. From an energy perspective, gas in India is a very small fraction of the overall energy basket right now and they want to take it to at least close to 3X of that or two and a half, for the goals of next 8 to 10 years. And so if we can partner all the powers to be and all the authorities to be and all the prayers, if we can partner the entire ecosystem, there is a scope for huge amount of growth as well,” Srivastava said. This comes in the backdrop of India reducing the domestic natural gas price to $2.39 per MMBtu—the lowest under the new domestic gas price regime, which was introduced in 2014. Also, the ceiling price for gas from difficult fields such as deep water, ultra deep water and high pressure-high temperature areas was reduced to $5.61 per MMBtu from the earlier price of $8.43 per MMBtu. However, there are problems as well, given that gas is not under the Goods and Services Tax (GST) ambit, and inadequate gas pipeline infrastructure in the country with pipelines concentrated in the western and northern part of the country. “I won’t worry too much about those things. Because those are, you know, the way and we’ve all done business in India all our lives. So we understand the manner in which these facilitations start to take place over time. Any industry you take, you will never have, at a starting point, at the point in which you take off, there is never going to be a 100% perfect condition and scenario. But somebody’s got to start. And that’s what we are doing exactly,” said Srivastava.

India, the biggest emitter of greenhouse gases after the US and China, plans to reduce its carbon emissions by 33-35% from its 2005 levels by 2030, as part of its commitments to the United Nations Framework Convention on Climate Change adopted by 195 countries in Paris in 2015. The gas exchange is hopeful about its growth. “We know that about 30% of the total consumption is through short term market and we hope to garner maybe initially start with 2-3 % of the total volume on the exchange and hopefully this pie will keep on increasing,” said Mediratta. This comes in the backdrop of India — the world’s fourth-largest LNG importer — building up its LNG portfolio with Indian firms having inked long-term LNG contracts totalling 22 MMTPA.

 https://www.hellenicshippingnews.com/lng-terminal-owners-gail-petronet-join-indias-first-gas-trading-platform/

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Market rules for gas

The government is moving towards free market pricing of gas with the current administered price mechanism going against the interest of domestic producers.

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Union oil minister Dharmendra Pradhan on Friday (June 26) said India would gradually end government control on pricing and would link them to market forces. Earlier this month, the country got its own gas trading platform — Indian Gas Exchange — that would help in price discovery of local gas. The first gas trading exchange will enable local and foreign players such as Shell, Vitol and Trafigura to sell directly to domestic customers. The gas pricing formula came under fire after the prices were cut a steep 26% to $2.39 per MMBtu for a period of six months beginning from April 1. Oil industry sources said the cut in prices has brought out a lacuna in the formula which does not consider the concerns of domestic producers and their operational viability. Gas producers have written to the oil ministry offering various suggestions, including the review of the formula that puts domestic producers at a disadvantage over imported LNG. The ceiling price for gas from difficult fields has also been cut to $5.61 per MMBtu from $8.43 per MMBtu resulting in a 33.5% fall. The BJP-led government had in October 2014 adopted a formula that takes into account the volume-weighted annual average of the prices prevailing in Henry Hub (US), National Balancing Point (UK), Alberta (Canada) and Russia with a lag of one-quarter. Prices are set every six months — on April 1 and October 1 — each year. Pradhan said there was no going back on the decision to privatise oil marketing company BPCL in view of the slump in global energy prices.

However, the timing of the privatisation would be decided by the finance ministry and not the oil ministry.

https://www.telegraphindia.com/business/market-rules-for-gas/cid/1784108

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LNG Development and Shipping

 

NTPC poised to call bids for LNG terminal to power Andaman and Nicobar islands

The Andaman and Nicobar (A&N) islands are set go green as state-run NTPC Ltd is poised to call bids to set up a floating micro-liquefied natural gas (LNG) terminal to power

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the Indian archipelago, said two people aware of the development. Not only will it reduce the carbon footprint by ending the practice of diesel-based power generation, but the improved infrastructure will also enable India to implement its plans to secure the strategic advantage the islands provide in the Indian Ocean. The clean fuel sourced through the Floating Storage Regasification Unit (FSRU) will help generate 50MW of electricity at Hope Town, South Andaman, enough to power the islands and replace the current diesel fuelled costly power generation. Better infrastructure will help India secure its territory and protect its trade routes even as China aims to expand its naval reach. India’s only tri-service command is established in A&N at the entrance to the Malacca Strait, the world’s busiest shipping route. “The tender will be floated shortly,” one of the two persons cited above said on condition of anonymity. Presently, the difference between average cost of supply and average realizable revenue (ACS-ARR) from diesel generated electricity on the island is around Rs17 per unit, with the government bridging the subsidy amount. The electricity generated from LNG is expected to cost around Rs5 per unit. The plan has been in play for some time now with Prime Minister Narendra Modi laying the foundation stone of the 50 MW LNG based power project on 30 December, 2018. The plant is to be set up by NTPC Vidyut Vyapar Nigam (NVVN), a subsidiary of India’s largest power generation utility. A concerted strategy has been adopted for the islands to project India’s presence in the region and beyond with strategic projects such as expansion of naval air stations and building a railway line from the capital of Port Blair to Diglipur on North Island. The LNG-fuelled power project is part of a larger plan to develop infrastructure in Andaman and Nicobar islands with state-run National Highways and Infrastructure Development Corp. Ltd been tasked with building bridges and roads at an investment of around Rs3,000 crore.

https://www.livemint.com/industry/energy/ntpc-poised-to-call-bids-for-lng-terminal-to-power-andaman-and-nicobar-islands-11592225211515.html[Edited]

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State transport body mulls diesel-LNG shift for buses

The state transport department is considering adopting the public private partnership (PPP) model to convert its fleet of diesel-run buses to LNG (Liquefied Natural Gas) ones.

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Around 1,200 Maharashtra State Road Transport Corporation (MSRTC) buses are set to be converted in the first phase of the plan. State transport minister Anil Parab told TOI, “A major challenge for us at the moment is to save on the fuel cost of a fleet of almost 10,000 buses. Converting the buses to lower expenditure, all the while adopting a more environment friendly option, is a better way to move forward.” “The centre provides states with funds to take steps and adopt more environment friendly fuel options. If the Centre doesn’t provide the funds, we will subscribe to the PPP model and will rope in a company to convert the buses, as well as construct filling stations. It has been decided that the work will be done in phases and that 1,200 buses will be LNG enabled in the first phase,” Parab told TOI. Since the lockdown, the MSRTC buses have barely been making any trips with inter-district transportation being completely suspended. In some districts intra-district transportation has resumed but the state transport body has been looking at heavy losses with more than 70% of the buses having been non-operational for more than three months. “Diesel cost accounts for close to 40% of our expenditure and with the price of fuel on the rise, things could get even more difficult for the MSRTC. The idea is to cut this cost by converting to LNG. The first phase of conversion should be completed within the next three to four months. When it comes to the conversion of the whole fleet, we are looking at the first half of next year. It depends on whether things get back on track in a proper way,” another official said. The transport department is mulling restarting inter-district transportation from July but a date has not been fixed yet.

https://timesofindia.indiatimes.com/city/pune/state-transport-body-mulls-diesel-lng-shift-for-buses/articleshow/76679631.cms

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INTERNATIONAL NEWS

 

Natural Gas / Transnational Pipelines/ Others

Russia’s Gazprom in talks to raise gas sales to China by 6 BCM/year: CEO

Russia started its gas sales via the Power of Siberia pipeline to China last December. It planned to reach the full potential of the pipeline of 38 BCM per year by 2025.

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Russian gas producer Gazprom is in talks to raise annual gas flows to China by 6 BCM to 44 BCM via the Power of Siberia pipeline, CEO Alexei Miller said on Friday (June 26), as Russia looks to cement ties with Asia. Russia started its gas sales via the Power of Siberia pipeline to China last December. It planned to reach the full potential of the pipeline of 38 BCM per year by 2025. Miller said thanks to construction of new routes, gas flows from Russia to China may reach 130 BCM in the foreseeable future. He also said in an interview, published on Gazprom’s website, that the company expected to close a deal on a dollar-nominated eurobond on Monday. He did not give further details. Gazprom is eyeing a seven-year note worth $1 billion. Miller added Gazprom expected its gas reserves to be fully replaced this year thanks to the discovery of new fields.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/russias-gazprom-in-talks-to-raise-gas-sales-to-china-by-6-bcm/year-ceo/76655149

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US natgas futures spreads widest ever as prices near 25-year low

The pandemic has now killed almost 500,000 people globally, and government lockdowns to slow its spread cut gas demand faster than producers could reduce output.

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This forced utilities in Europe, the United States and elsewhere to inject excess gas into fast-filling stockpiles. As US natural gas prices dropped close to a 25-year low this week, several futures spreads surged to records as investors bet demand will rebound later this year as the coronavirus pandemic wanes. Storage caverns in many countries are expected to reach full capacity by summer-end. In recent months, global liquefied natural gas (LNG) buyers, especially in Europe, have canceled dozens of cargoes from the United States and other exporters of the super-cooled fuel. “This is effectively the last shoe to drop in a global gas rebalancing process that started with Asia pricing its LNG lower to push excess cargoes towards Europe, followed by Europe sorting its resulting gas market overhang out by pricing high-cost gas supply – US LNG – out of the market,” analysts at Goldman Sachs said in a report this week. US gas futures fell to $1.47 per MMBtu on Friday (June 26), their lowest since 1995, with spot prices at the Henry Hub benchmark in Louisiana expected to hit their lowest annual average this year since 1998. Analysts expect US gas consumption will fall about 3.6 per cent in 2020 to around 81.9 BCFD from a record 85.0 BCFD in 2019. The premium of July 2021 futures over July 2020 rose to a record $1.02 per MMBtu. That spread is a gauge for future activity, and suggests traders believe demand will rebound next year. The premium for November over October 2020 , a spread traders use as a gauge for the winter outlook, rose to a record 44 cents per MMBtu, anticipating demand growth. Analysts expect US inventories will reach an all-time high of 4.1 TCF feet by late October.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/us-natgas-futures-spreads-widest-ever-as-prices-near-25-year-low/76655128

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Global natural gas production to fall by 2.6% this year -Rystad Energy

Global natural gas output is set to fall by 2.6% this year because of the impact of the COVID-19 pandemic, after previously being expected to grow, consultancy Rystad Energy said on Tuesday (June 23).

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Rystad Energy had expected total natural gas production to rise to 4,233 billion cubic meters (bcm) in 2020 from 4,069 bcm last year. Now it expects production to be 3,962 bcm for this year, rising to 4,015 bcm in 2021 and to 4,094 bcm in 2022. The most affected output in percentage terms is associated gas from oilfields – a form of natural gas found in deposits of petroleum – which was initially forecast to stay largely flat year-on-year from a 2019 level of 547 bcm. It is now expected to fall by 5.5% to 517 bcm in 2020, before rising to 530 bcm in 2021 and 542 bcm in 2022. Rystad Energy provides data and analysis on the global energy markets. “Part of the recovery will be driven by optimism in future oil prices, which could gradually drive output from associated gas fields to near 600 bcm by 2025,” Rystad Energy’s Head of Gas and Power Markets Carlos Torres-Diaz said. “But how future oil prices really evolve will actually define the total natural gas output,” he added. Rystad Energy forecasts that Brent crude oil prices will stabilise at around $60 per barrel in 2025, compared to around $43 a barrel currently.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/global-natural-gas-production-to-fall-by-2-6-this-year-rystad-energy/76541914

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China targets rise in oil, natural gas output this year to safeguard energy security

China aims to produce 1% more crude oil this year than in 2019 and to boost natural gas output by 4.3%, official targets showed on Monday (June 22),

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as the country seeks to safeguard energy security even after a coronavirus-driven collapse in oil prices. The world’s biggest energy consumer has set a goal of producing 193 million tonnes of crude, or 3.85 million barrels per day, in 2020, and 181 billion cubic metres of gas, according to an annual production plan released by the National Energy Administration (NEA). Those numbers compare to actual output of around 191 MMT of crude and 173.62 bcm of gas last year. The NEA said it would focus on expanding its four key energy production bases to achieve the goals – one offshore in Bohai Bay in northern China, as well as onshore in Sichuan province in the southwest, in the Erdos Basin and in the far western Xinjiang region. It also aims to push forward development of so-called new energy – including renewables, fuel ethanol and coal-to-liquids – in order to improve its capability to replace conventional hydrocarbons. The annual plan also set a target of having around 900 gigawatts of installed non-fossil fuel power generation capacity in 2020 and further lowering the share of coal in China’s primary energy mix to around 57.5%. Coal’s share in China’s energy consumption slipped to 57.7% in 2019, although coal usage was still up 1% year-on-year in tonnage terms. Installed non-fossil fuel power generation capacity – consisting of hydro, solar, wind and nuclear power – stood at just below 820 GW at the end of 2019, NEA figures show..

https://energy.economictimes.indiatimes.com/news/oil-and-gas/china-targets-rise-in-oil-natural-gas-output-this-year-to-safeguard-energy-security/76521390

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Russia’s Gazprom to reimburse Poland $1.5 bn

Russian gas giant Gazprom will reimburse Poland’s PGNiG to the tune of $1.5 billion by July 1 for overcharging it for its supplies for years, the Polish company said on Monday (June 15)

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following a court battle. Warsaw: Russian gas giant Gazprom will reimburse Poland’s PGNiG to the tune of $1.5 billion by July 1 for overcharging it for its supplies for years, the Polish company said on Monday following a court battle. On March 30, state-owned PGNiG won a case against Gazprom over its long-term contract for gas imports at an international arbitration tribunal in Stockholm. The Polish company had since proposed a new formula for the cost of deliveries from 2014, estimating the figure at $1.5 billion (1.3 billion euros). On Monday, PGNiG said Gazprom had signed an agreement confirming the new formula and reimbursement. Poland in November said it would not extend beyond 2022 a contract with Gazprom signed in 1996. Two thirds of the gas consumed in Poland, about 10 billion cubic meters, is currently delivered by Russia under the Yamal contract. An EU and NATO member, Poland has long wanted to wean itself off Russian gas, notably by having opened an LNG terminal on its Baltic coast capable of receiving LNG shipments from the US and the Middle East. Polish companies have also acquired several gas fields in the North Sea and Warsaw has signed an agreement with Denmark on the construction of a pipeline under the Baltic Sea to ensure deliveries.
A former Soviet satellite state, Poland maintains that reliance on Russian energy supplies makes it vulnerable to political pressure from Moscow. Warsaw has also accused Gazprom of price gouging. Along with the US, Ukraine and the Baltic states, Poland has lashed out against the Nord Stream 2 pipeline that runs under the Baltic Sea and is set to double shipments of Russian natural gas to Germany, the EU’s biggest economy. They warn that Moscow could seize on Europe’s increased reliance on Russian gas to exert political pressure.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/russias-gazprom-to-reimburse-poland-1-5-bn/76397159

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Edison, Energean cut oil and gas deal’s value by two thirds

Italy’s Edison has agreed to reduce the value of the sale of its oil and gas operations to Energean by two thirds to $284 million after dropping the Algerian

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and Norwegian assets from the deal. Mediterranean-focused Energean last year agreed to buy the oil and gas operations for up to $850 million, but the parties agreed to revise the deal because of the amendments and a weaker outlook for oil and gas prices following the coronavirus crisis. A unit of French state-controlled utility EDF, Edison said it would retain control of Edison Norge, which controls the group’s upstream activities in Norway, until market conditions “allow a full valuation of its assets”. Energean entered talks with Edison to exclude the Norwegian subsidiary from the deal after Energean’s plan to immediately sell on Edison’s North Sea assets to Neptune Energy fell through. Earlier this year, the two companies agreed to exclude Edison’s Algerian assets, worth $155 million, from the deal, citing a lack of authorisation from Algeria’s Ministry of Energy. Following the Edison deal, which is expected to close by the end of the year, natural gas-focused Energean will look for more acquisitions, CEO Mathios Rigas told Reuters. “We will look for more opportunities, and in this environment, we see many companies struggling and majors looking to sell high-quality assets,” Rigas said. It plans to keep the British North Sea assets from the Edison portfolio for now, he added. Energean has access to more than $1 billion in credit and debt to complete the development of the Karish and Tanin gas fields offshore Israel, where production is due to start early in 2021. Edison said the deal confirmed its strategy of exiting the upstream business and focusing on renewable energy.     

https://energy.economictimes.indiatimes.com/news/oil-and-gas/edison-energean-cut-oil-and-gas-deals-value-by-two-thirds/76702254

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Global LNG Development

Gas industry sees strong demand post-COVID, LNG shortfall by mid-decade

The gas industry sees no change to the strong long-run outlook for demand following the COVID-19 crisis, but expects a supply shortfall in the next four years

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as the pandemic lockdowns and oil price collapse lead to delays on gas projects. Gas producers, buyers, liquefied natural gas (LNG) developers and a major contractor said in the long run the fuel will be needed to back up wind and solar power, replace coal-fired power, and produce hydrogen globally. “We see the need for substantial investment in new projects and new liquefaction,” Exxon Mobil Corp’s Australia Chairman Nathan Fay said at Credit Suisse’s annual Australian Energy Conference. However, lingering uncertainty following a crash in LNG prices to record lows this year below $2 per MMBtu means only the lowest cost LNG projects will go ahead, major producers said. More than 140 MMT of projects worldwide have been deferred. In Australia and Papua New Guinea alone, five are on hold – Exxon’s expansion of PNG LNG twinned with Total SA’s Papua LNG, Woodside Petroleum’s Scarborough and Browse, and Santos Ltd’s Barossa. “It’s everything to play for – so a very bullish outlook on gas,” said Martin Houston, vice chairman of U.S. LNG developer Tellurian, which recently deferred a final investment decision on its U.S. Driftwood LNG project to 2021. Japan’s Chiyoda, a major contractor to LNG projects, said work has largely dried up and there would need to be stability in the market before developers move ahead with projects. “To be perfectly honest, we don’t see any green shoots right now,” said Chiyoda Oceania’s president Andrew Tan. Royal Dutch Shell sees short term concerns weighing on everyone’s decisions about new projects. “I’m sure all companies, all operators or producers across the globe are going to be focused on that affordability question just because of the uncertainty they see in the macro markets,” said Shell Australia Chair Tony Nunan. Research firm Rystad Energy said with gas prices around the world still trading near $2 per MMBtu, LNG developers with all but the lowest costs will hold off on new projects. “But that will again cause a shortfall for the LNG market four or five years down the road,” Rystad’s head of analysis, Per Magnus Nysveen told the conference.

Source: Reuters/LNG Global

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Global LNG-Asian LNG prices little changed as oversupply persists

Asian spot liquefied natural gas (LNG) prices were little changed this week, as a demand recovery from some buyers in the region was not enough to absorb global oversupply.

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The average LNG price for August delivery into northeast Asia LNG-AS was estimated at between $2.15-$2.30 per MMBtu, compared to the July delivery assessment of $2.10 per MMBtu and an August estimation of around $2.20-2.30 per MMBtu last week. Asian spot demand is expected to be driven up by hot weather in the third quarter this year, fuel switching in some of the markets and lockdown easing, consultancy Energy Aspects said in a report this week. But the glimmers of hope for Asian demand for spot cargoes are more than offset by the need for these firms to ramp-up their imports under long-term contracts and continued demand weakness, it added. Several Chinese buyers were looking for cargoes this week. China’s Guangzhou Gas had a tender to buy a cargo for July 27-31 delivery and awarded its tender at or slightly below $2.20 per MMBtu, two sources said. Shenzhen Energy was looking for an August delivery cargo, separate two sources said. Some market sources said they were concerned about whether the new outbreak of the coronavirus in Beijing would reduce spot buying, but added it had no impact on prices yet. In Japan, Tohoku Electric was on the market, an industry source said. Unseasonably warm weather is expected in Japan in the third quarter, Energy Aspects said. In terms of supply, a late July cargo from Russia’s Sakhalin plant was awarded at around $2.20 per MMBtu on a delivered-ex-ship (DES) basis, while an early August cargo from Brunei LNG could have been sold at $2.20-$2.30 per MMBtu, market sources said.

Angola LNG, BHP Group, Russia’s Novatek and Indonesia’s Pertamina also offered cargoes in tenders.

Source: LNG Global

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LNG shipments by rail approved in US amid pipeline battles

The Trump administration has taken the final step to allow rail shipments of liquefied natural gas, a new front in the movement of energy products 

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that had been opposed by environmental groups and 15 states. The U.S. Pipeline and Hazardous Material Safety Administration published the rule late last week for shipments of the flammable and odorless liquid known as LNG. “The department’s new rule carefully lays out key operational safeguards to provide for the safe transportation of LNG by rail to more parts of the country where this energy source is needed,” Transportation Secretary Elaine Chao said in a statement. The rule comes amid foundering prices for natural gas in the U.S., as court and regulatory battles over pipeline projects have slowed movement of the nation’s world-leading gas production to markets. The rule requires enhancements – including a thicker outer tank made of steel with a greater puncture resistance – to the approved tank car design that, for decades, has been approved for shipments of other flammable cryogenic materials, such as liquid ethylene and liquid ethane. The rule takes effect in 30 days after it was published. Previously, federal hazardous materials regulations allow shipments of LNG by truck, but not by rail, except for with a special permit. The Sierra Club accused the Trump administration of “selling the country out to the fossil fuel industry” for dangerous shipments that will travel past homes, schools, businesses and environmentally sensitive areas. “This new rule has major impacts on rail safety because the dangers of a possible derailment, spill, or explosion would be catastrophic,” Jeff Tittel, director of the New Jersey Sierra Club, said in a statement. “This is an accident waiting to happen.” Some of New Jersey’s train tracks, he said, are a century old or more and aren’t designed to handle such dangerous cargo,” Tittel said. The protesting states included Pennsylvania and New Jersey, where the Trump administration issued a special permit in December to ship LNG by rail from northern Pennsylvania’s Marcellus Shale natural gas fields to a yet-to-be-built storage terminal at a former explosives plant in New Jersey, along the Delaware River near Philadelphia. From there, the LNG is expected to be exported to foreign markets for electricity production, although the applicant, a subsidiary of New Fortress Energy, has told federal regulators that some domestic industrial use is possible. The states had argued that the trains will share tracks with passenger trains and travel through congested areas. Other objecting states were California, Delaware, Illinois, Maryland, Massachusetts, Michigan, Minnesota, New York, North Carolina, Oregon, Rhode Island, Vermont and Washington, as well as the District of Columbia. An industry trade group representing major freight railroads in North America also had sought the new rule.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/lng-shipments-by-rail-approved-in-us-amid-pipeline-battles/76521629

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Chevron exit could trigger wider Australian LNG shakeup

The global shake-out of oil and gas assets has reached Australia with Chevron Corporation planning to sell its 16.7% stake in the country’s original

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and biggest liquefied natural gas (LNG) project. A foundation partner in the North West Shelf joint venture, Chevron has bigger stakes in two other Australian LNG developments, a 47.3% interest in the Gorgon development and 64.1% of the Wheatstone project. Over the past 40 years Chevron is estimated to have invested more than $100 billion in its three Australian LNG assets. Culling the oldest from its portfolio is a logical move by Chevron but there are other factors behind the decision to quit the North West Shelf.

Low prices for oil and gas are an obvious factor as all oil companies contract back to their most profitable projects, and because its been operating for more than 30 years it is unlikely that the North West Shelf matches the performance of the newer investments when it comes to return on capital invested. But another factor could be the corporate structure which controls the North West Shelf, a cumbersome joint venture in which all six partners have an equal say in investment decisions. Problems in aligning the interests of all partners, a group that include Royal Dutch Shell, BP, BHP, Woodside Petroleum, and Japan Australia LNG (jointly owned by Mitsubishi and Mitsui), has frustrated everyone with the latest problems revolving around disagreement on when (and how) to develop new gas deposits to ensure the continued operation of the old project. Plans to deliver gas from the remote Browse gasfields via a 500 mile submarine pipeline to the North West Shelf have effectively been dropped because of high development costs and low gas prices. Similar problems are being encountered with a back-up project called Scarborough and with plans to turn the ageing project into a toll treating business to process third party gas.

Right To Match Bids

What could become quite interesting with Chevron’s proposed North West Shelf sale is the effects of the legal structure under which it operates.

In most cases Australian corporate law specifies that other partners in an unincorporated joint venture have the right to match the price offered by an outsider should a member opt to sell its stake. In theory, that clears the way for other partners to lift their stake though the only company likely to be interested in acquiring Chevron’s interest is Woodside, the smallest venture member and also the company classified as project operator. Woodside has a strong balance sheet and is known to be looking for growth opportunities and a bigger share in a project it knows intimately might be an easy move, if the price is right. Early speculation points to Chevron asking for $4 billion for its 16.7% stake but whether that’s realistic at a time of low oil prices seems unlikely.

Widespread Exit From Australian LNG

Whatever the sale price the more interesting aspect of the sale is whether it might trigger a widespread exit by other venture members from the oldest of Australia’s LNG projects. Last month, analysts at Credit Suisse, an investment bank, said the Australian oil and gas industry was likely to see a rush of mergers and acquisitions, including a shake-up of the North West Shelf. Significantly, Shell, BHP and BP were listed as possible sellers of the their interests. Chevron was not. However, Credit Suisse did name Chevron as a potential seller of its Gorgon and Wheatstone assets. By putting its 16.7% stake in the North West Shelf on the market it is possible that Chevron has beaten its partners to the exit. But it’s equally possible that the other partners in the project will follow Chevron out the door, leaving Woodside as the dominant investor able to more easily make investment decisions.

https://www.hellenicshippingnews.com/chevron-exit-could-trigger-wider-australian-lng-shakeup/

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China could top Japan’s LNG imports in 2020 as coronavirus cuts demand

China may overtake Japan as the world’s biggest liquefied natural gas (LNG) importer earlier than anticipated as China recovers from the coronavirus pandemic,

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while Japan’s economy remains in a slump, Rystad’s head of gas research said. Japan’s LNG imports fell in May to an 11-year low of 4.5 MMT as the pandemic halted economic activity, official data on Wednesday (June 17) showed. That is less than the 5.6 MMT China imported in May, ship-tracking data from Refinitiv shows. For June, China is set to import 5.4 MMT and Japan 5 MMT, the data shows. “With China expanding its regasification capacity this year and also having a more accelerated recovery there is a risk a China having higher imports from this year,” Rystad’s Head of Gas and Power Markets Research Carlos Torres Diaz said. Rystad now forecasts China to surpass Japan in 2022, at 80.1 MMTPA versus 74.3 MMT. Many analysts foresee China overtaking Japan by about 2025. Japan has been world’s biggest LNG importer for decades and the change would signal a major shift in one of the fastest growing energy markets. China has not released official data for May and the Refinitv shipping data may not correspond exactly. China’s monthly LNG imports previously exceeded Japan’s in November. Japan’s energy demand has declined because of an ageing population and LNG requirements have dropped as it restarts nuclear reactors, but the coronavirus pandemic caused LNG demand to fall further. China has mainly contained its outbreak and gas demand has soared with a government push to move consumers from coal-fired power and heating to cut pollution. Japan’s LNG imports through June 2020 are set to be 36.1 MMT versus 30.8 MMT to China, the Refinitiv shipping data shows, though that gap may narrow. “It wouldn’t surprise me if China permanently overtakes Japan sooner,” said Tom O’Sullivan, the founder of energy consultancy Mathyos Japan.

Source: LNG Global

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Global gas inventory swells as demand recovers slowly: sources

Global gas inventory has swollen as demand for liquefied natural gas (LNG) is slow to recover and fears of a second wave of the coronavirus outbreak are

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adding to caution as economies restart. Dozens of LNG tankers are idling as gas storage tanks become full in countries such as Japan, South Korea and in Europe, trade and shipping sources said. There are 27 laden LNG tankers flagged by data intelligence firm Kpler as floating, with eight of them signalling Japan as their destination, said Rebecca Chia, analyst at the company. Kpler considers a vessel as floating if it has been on the water for more than five days. Gas demand in top LNG importer Japan has been weak as COVID-19, the disease caused by the novel coronavirus, forced hotels and restaurants to shut and as factories suspend operations. Gas sales in the commercial segment fell by up to 50% in May from a year earlier, while gas sales for the industrial segment slid by 20% to 30%. Japan’s monthly LNG import volumes in May hit the lowest in a decade after the country’s state of emergency declared in early April remained in force until late May. South Korea’s top LNG importer Korea Gas Corp (KOGAS) has deferred several cargoes to the later part of the year as it grapples with high inventory, sources told Reuters. In China, the world’s No. 2 LNG importer, gas inventory is also full, two sources said, as the country’s capital faces new cases while India has limited import capacity during the monsoon season. European gas inventories have also been at record levels after a warm winter. “Storage capacity in Northwest Europe is expected to hit maximum capacity before the end of the injection season, which is estimated to be some time in August,” analysts from shipbroker Simpson Spence Young said.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/global-gas-inventory-swells-as-demand-recovers-slowly-sources/76404092

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RWE, German LNG Terminal finalising import deals for Brunsbuettel

German LNG Terminal, the venture behind a planned liquefied natural gas terminal at Brunsbuettel, is expected to make an investment decision on the project shortly

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after binding import contracts have been finalised at the end of 2020, it said. RWE, Germany’s largest power producer, has secured potentially 5 billion cubic metres of import capacity it could use to market the supply if the project goes ahead. “Currently the parties are in the final phase of negotiating fully binding legal contracts for LNG imports,” RWE and German LNG Terminal said in a joint statement on Thursday (June 18). “RWE and German LNG expect this process to be finalised by the end of 2020, putting German LNG in a position to reach a positive investment decision shortly thereafter.” The groups said they had agreed to explore whether hydrogen could play a role with regard to the terminal. German LNG Terminal is a joint venture of Dutch gas network operator Gasunie, German tank storage provider Oiltanking GmbH, and Dutch storage company Vopak LNG Holding .

https://www.hellenicshippingnews.com/rwe-german-lng-terminal-finalising-import-deals-for-brunsbuettel/

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Buyers of U.S. LNG to cancel 40-45 cargoes for August loading: sources

Buyers of liquefied natural gas (LNG) are expected to cancel 40 to 45 cargoes for August loading from the United States due to a slow recovery in Asian gas demand

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and record high European gas stocks, market sources said on Monday (June 22). The exact number of cancellations is yet to be confirmed as the deadline of some projects is on Monday, but six of the sources said they expected the number of August cancellations to be close to 40 to 45 cargoes, the same number that was cancelled for July loading. That followed at least 20 to 30 U.S. LNG cargoes cancelled for June loading after the coronavirus pandemic hit gas demand globally, causing gas and LNG prices to plummet. The premium of gas prices in Europe over the U.S. Henry Hub remains too tight to deliver U.S. cargoes with a profit, sources said. The August contract on the Dutch gas hub was trading around $0.10 per MMBtu above the Henry Hub for August on Monday. “At those levels, European buyers are looking at a loss of over $5.00 compared with just paying a cancellation fee of $3.00-$3.50,” a trader with knowledge of the matter said. Another trade source said that close to 30 cargoes were likely cancelled from Cheniere Energy’s plants, Sabine Pass in Louisiana and Corpus Christi in Texas. Up to 10 cargoes could have been cancelled from the Freeport plant in Texas, the source said, adding that there were likely cancellations from other U.S. projects as well, with a total of around 45 cargoes cancelled. Some sources said, however, that loading a cargo in August might make more sense compared to June and July, as there was a price contango between August and forward months, with shipping rates low. But finding a ship for autumn months could be difficult, a trader in Europe said. Cheniere was not immediately available for comment. Freeport LNG said it does not comment on the activity of its customers’ cargoes.

Source: LNG Global

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Natural Gas / LNG Utilization

Total will offer LNG for trucks at its station network in South Africa

Emerging domestic natural gas and helium producer Renergen has signed an agreement with Total South Africa Proprietary Limited (Total) for the joint marketing and distribution of LNG through

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Total’s service stations. Renergen is in the construction phase of South Africa’s first commercial LNG plant, and is anticipating a turn-on date of the plant around the third quarter 2021. The customer base for the LNG will predominantly be logistics companies operating trucks along the main routes across the country, with a significant portion of the initial production already allocated to customers. The first route targeted under the agreement will be the N3 between Johannesburg and Durban, followed by the corridors leading to the other major cities once Renergen’s Phase 2 project comes into production. “We are proud to have partnered with a global forward-thinking energy company. Total has a big focus on sustainability and a proven track record in the LNG space, which was clearly an advantage. This agreement is intended to provide ideal filling locations for our customers along strategic routes across the country, and the union will create a powerful first mover advantage in this exciting space in South Africa,” commentd CEO of Renergen, Stefano Marani. “It is a proud moment for Total South Africa as it is yet another first for our company. Total is committed to better energy and with this partnership we are taking another step towards providing affordable, reliable and clean energy in line with our Climate Ambition to achieving carbon neutrality by 2050 together with society. We look forward to working together with Renergen to continue making a difference in South Africa,” said Mariam Kane-Garcia, MD of Total South Africa.

http://www.ngvjournal.com/s1-news/c4-stations/total-will-offer-lng-for-trucks-at-its-service-stations-in-south-africa/

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Europe’s first LNG-adapted car transporter truck already operative

Transordizia’s fleet has put into operation Europe’s first car transport truck with a special transformation to adapt it to the transport of large vehicles and to run on natural gas.

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It is a rigid Scania vehicle that has gone through a transformation and homologation process to adapt it to its activity, without losing fuel storage capacity, with the relocation of the tanks at the rear of the cabin. This new Transordizia truck belongs to Scania R series, with a 410 HP 13-liter engine, offering a maximum torque of 2,000 Nm, powered by LNG. This is Scania’s most powerful LNG engine, which has diesel-like performance, a range of up to 1,600 km. and a service interval of 45,000 km. “Within the LNG vehicle offering on the market, we think Scania offers a very reliable vehicle. We have been incorporating Scania LNG tractors into the fleet for months and, given its reliability, it was ideal to carry out a more ambitious project by building a rigid one to adapt it to our activity,” said Fran Cobo, manager of Transordizia. More than seven years ago, Transordizia began a commitment to LNG. Today, 50% of the tractors in its fleet are powered by natural gas and perform long-distance transport, taking vehicles across Europe. “In addition to the environmental benefits, the performance is identical to diesel, the noise level is minimal and consumption is better, so that the fuel savings compensate for the greater initial investment,” added Cobo.

http://www.ngvjournal.com/s1-news/c3-vehicles/europes-first-lng-adapted-car-transporter-truck-already-in-operation/

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Carrefour opts for LNG to power its delivery truck fleet in Spain

Carrefour has again increased its fleet of LNG-powered trucks, thereby reducing its CO2 emissions. Specifically, the company already performs 90% of the services

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to its hypermarkets in Madrid with natural gas, thus achieving an annual reduction in emissions of 7,000 tons of CO2. These more sustainable vehicles reduce NOx emissions by up to 95% and hardly generate solid particle emissions. They are also quieter than traditional trucks, thereby significantly reducing noise pollution in cities. In this case, the logistics operator ATDL has received the first tractor trucks of the new IVECO 460 S Way, corresponding to the order of 10 units for 2020. With this addition, ATDL reaches 30 vehicles powered by natural gas in its fleet, thus continuing its strategic plan to provide more sustainable solutions to transport in Spain. Carrefour maintains a firm commitment to sustainable development and as an organization focused on reducing the greenhouse effect, reported Europa Press.

http://www.ngvjournal.com/s1-news/c3-vehicles/carrefour-opts-for-natural-gas-to-power-its-delivery-truck-fleet-in-spain/

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Germany: UTA expands service network with Liqvis’ natural gas stations

UTA, provider of fuel and service cards in Europe, is expanding its own supply network to include LNG refueling from LIQVIS GmbH (Uniper subsidiary).

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As of 1 April, UTA customers can refuel their vehicles with LNG at LIQVIS service stations without cash using the UTA Full Service Card. LIQVIS LNG stations are located at strategic high-traffic hubs e.g. in Kassel-Lohfelden and Berlin-Grünheide. In order to meet the rising demand for the alternative fuel LNG, the German service station infrastructure is set to be systematically expanded in the coming years. Additional LIQVIS service stations will be installed in the areas in and around Hamburg, Hannover and Bönen, among others. “We are delighted that with LIQVIS as our partner we are able to further expand our network and provide our customers with access to eco-friendly and cost-effective mobility,” said Gabriel Moulènes, Sales and Marketing Director at UTA. “LNG is a large-range and efficient alternative to diesel that allows fleet operators and forwarding agents to reduce their operating costs.” “To meet the growing demand for LNG, we will set up additional service stations and thus actively contribute to the expansion of the service station network,” commented Silvano Calcagno, Managing Director of LIQVIS. “The recently made decision by the German Bundestag to extend the toll exemption for LNG trucks in Germany and the UTA card behind us will help us to convince other transport companies that the change is economical and easy to implement.”

http://www.ngvjournal.com/s1-news/c4-stations/germany-uta-expands-service-network-with-liqvis-natural-gas-stations/

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Spain: HAM now offers natural gas at Beroil’s station in Fuentecén

It is now possible to refuel on the LNG mobile unit located at the BeroilFuentecén service station, located on the N-122 Valladolid-Soria, km 286.

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The N-122 is a national road that connects Aragon with Castilla y León and Portugal, through the Douro Valley. It crosses the cities of Soria, Valladolid and Zamora. Its entrance into the province of Burgos is located next to the Duero River, crossing the towns of Fresnillo de las Dueñas, Aranda de Duero and Castrillo de la Vega, an undivided variant of Fuentecén and Nava de Roa. The new mobile LNG unit was designed and built by Grupo HAM, and its installation has been possible thanks to Beroil’s commitment to an environmentally friendly fuel. It is a company for the sale and distribution of hydrocarbons, which has a wide network of service stations. The mobile station allows refilling LNG to trucks and heavy vehicles, offering 24/7 service throughout the year. HAM currently has 51 service stations, between fixed and mobile, distributed in Spain and the main points of European land transport routes. Moreover, the company’s mobile units have become a benchmark in the sector, ensuring that clients can enjoy all the advantages of LNG and CNG quickly, efficiently and safely. The latest mobile natural gas stations can be found at HAM Benavente, HAM Murcia, and Lidl Suiza.

http://www.ngvjournal.com/s1-news/c4-stations/spain-beroil-and-ham-now-offer-natural-gas-at-fuentecen-service-station/

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First CNG refueling facility opens in Savannah, Georgia

The newest Enmarket store opened on June 8 in Port Wentworth. It is the first fueling station to bring CNG supplied by Atlanta Gas Light

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to the Savannah public and provides a wide range of services aimed at truck traffic serving the Port of Savannah as well as the general public. The new facility, which also offers Enmarket’s second Fuzzy Taco Shop, a fast-casual Mexican restaurant, will be able to fuel all classes of CNG vehicles, including Class 8 trucks (18-wheelers). “CNG is an increasingly important fuel, especially for heavy trucks, and we are delighted to bring the fast-fill version of it to the motoring public in Savannah,” said Brett Giesick, president of Enmarket. “CNG is a clean, efficient product, and making it available is in keeping with our goals to serve the public and protect the environment.” “We are proud to partner with Enmarket and help expand the state’s CNG infrastructure,” said Bryan Batson, president of Atlanta Gas Light. “This new station is also making it possible for local area fleets to deploy CNG vehicles to help meet their sustainability goals.” According to the U.S. Department of Energy’s alternative fuel website, 23 Georgia cities have public CNG vendors, with 26 sites among them. Atlanta is the only city in the state with a large number of stations, while Augusta has two and Columbus has one. The location of the new station provides value to CNG vehicles traveling I-95 between Florida and the Carolinas. According to the Department of Energy, there are more than 175,000 CNG-powered vehicles in the United States, and 23 million worldwide.

http://www.ngvjournal.com/s1-news/c4-stations/first-cng-refueling-station-opens-in-savannah-georgia/

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Bogotá’s BRT system expands eco-friendly fleet with new 64 NGVs

Transmilenio’s concessionaire, Masivo Capital, will start operating on June 23 the first 64 buses with Euro VI CNG engines, of a total 320 feeder vehicles

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that will join its fleet between June and October of this year, thus fulfilling the commitments to renew the bus fleet of Bogota city. These 64 buses will reinforce the operation of nine feeder routes in the town of Kennedy, with 26 buses, and the feeding services of Portal Américas and the Banderas intermediate station, with 38 vehicles. The addition of this new fleet will not only help to improve the service in the neighborhoods, but also to have a better air quality in Kennedy, Bosa and Suba Oriental, reducing emissions of particulate matter by the latest technology of the engines. Furthermore, this renewal and the entry into operation of the new concessions represent an important source of employment for the city, as each bus generates approximately four jobs. “We continue with the process of renewal of Transmilenio’s fleet, today the feeder part. We have introduced new clean, natural gas buses, which pollute 99% less than the vehicles we are replacing, which were Euro II. In addition to all the innovations they have, we are testing a new biosecurity tool that is a sheet that divides the chairs and an isolated cabin for its driver,” said the Mayor of Bogotá, Claudia Lopéz. These standard vehicles (with capacity for 80 passengers) are Scania with Busscar and Superpolo bodies. They feauture quieter engines, insulation of the driver’s compartment to protect it from possible physical aggressions and exposure to COVID-19 contagion with independent cabin design, accessibility platform for people with reduced mobility (which makes them 100% accessible) and built-in security cameras. Parallel to the renewal of the Feeder fleet, Transmilenio also advances in the renewal of the entire fleet of phases I and II of the Trunk routes with 1,441 new buses, process that began in mid-2019 and is close to completion. On June 27, 130 new bi-articulated buses with Euro VI CNG engines corresponding to the Patio Américas will come into operation, and with this addition, there will be 1,335 new buses of the expected 1,441. In other words, by the end of June, the renewal of the Trunk fleet (phases I and II) would be 93% completed. The last batch, which corresponds to 106 bi-articulated buses for the Usme yard, will come into operation before the end of the year.

http://www.ngvjournal.com/s1-news/c3-vehicles/bogotas-brt-keeps-expanding-eco-friendly-fleet-with-new-64-zonal-ngvs/

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Škoda launches new Octavia G-TEC

The new ŠKODA OCTAVIA G-TEC is designed to run on environmentally friendly CNG. It is fitted with a 1.5 TSI engine with an output of 96 kW (130 PS).

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The engine is very efficient, thanks to, among other things, variable control of the intake valves according to what is known as the Miller combustion process. This enables consumption of 3.4 to 3.6 kg per 100 km in the WLTP cycle in CNG mode and 4.6 l per 100 km in petrol mode.

Boasting a CNG capacity of 17.33 kg, the OCTAVIA G-TEC has a range of 500 km in the WLTP cycle in natural gas mode. When making use of the petrol in its 9-litre tank, the OCTAVIA G-TEC can cover a further 190 km, giving it a total range of approx. 700 km. Switching between CNG and petrol mode happens automatically without driver intervention. The vehicle only accesses the petrol fuel supply in certain situations, such as when the engine is started after the CNG has been topped up, when the outside temperature is below -10 degrees Celsius, or when the gas tanks are so empty that the pressure drops below 11 bar. The OCTAVIA G TEC features a specific layout in the Virtual Cockpit and can be easily identified by a badge at the rear. The hatchback’s boot can hold 455 l, the COMBI’s boot capacity is 495 l. In CNG mode, CO2 emissions are 25% lower than those of a conventional petrol engine, even when using natural gas. By using 20% bio-CNG, as is currently common in Germany, for example, the car’s carbon footprint can be improved by as much as 35 to 40%. Using fuel mixtures with an even higher percentage of bio-CNG, from plant residues and biological waste, leads to improvements of up to 90%. This means that journeys under these circumstances are almost climate-neutral. Full climate neutrality can be achieved by using synthetic methane, which is produced with green electricity in a power-to-gas process, a procedure that is still under development. The new OCTAVIA G-TEC will be launched across Europe this autumn.

http://www.ngvjournal.com/s1-news/c3-vehicles/skoda-launches-new-octavia-g-tec/

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LNG as a Marine Fuel/Shipping

Volkswagen, first voyage on world’s largest LNG-powered car carrier

For the first time, Volkswagen vehicles will be transported from Europe to North and Central America on a car freighter powered by LNG.

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The SIEM CONFUCIUS with more than 4,800 vehicles for North America left Emden, in Germany for Veracruz in the Gulf of Mexico. By 2025, in accordance with the environmental mission statement “goTOzero”, Volkswagen Group aims to reduce its total net CO2 emissions by 30% and be get CO2-neutral in 2050. All transports – by water, road and rail – must be climate-friendly to achieve this.

“We are proud to put the world’s first LNG vehicle transporter of this size into service. This is an important part of our decarbonization strategy,” said Thomas Zernechel, Head of Volkswagen Group Logistics. “We have to take action now, because ships like the LNG freighter SIEM CONFUCIUS and soon its sister ship SIEM ARISTOTLE will be in service for many years.” Like her sister ship, which is expected to enter service this year, the technologically ultramodern SIEM CONFUCIUS, which is 200 meters long and 38 meters wide, is an exclusive chartered ship for Volkswagen Group logistics. It has 13 car decks and a capacity of 7,500 CEU (Car Equivalent Units), which corresponds to around 4,800 vehicles in the Volkswagen Group model mix from passenger cars to light commercial vehicles. The ships are powered by 12,600 kW dual-fuel marine engines with direct injection and exhaust gas after treatment from MAN Energy Solutions. In eco-speed mode they travel at a speed of 16.5 knots (30.6 km/h). The two tanks in each ship, each holding 1,800 cubic meters, are sufficient to cover the entire distance with the fuel stowed in Europe. In addition to liquid, deep-frozen natural gas, the car carriers can also be operated with biogas or E-gas. Volkswagen Group Logistics organizes, coordinates and is responsible for around 7,700 ship departures worldwide every year. Several hundred liners and eleven car freighter charter ships, two of which are now being replaced by the LNG units, sail the world’s oceans for the Group every day. They ship 2.8 million new cars a year.

http://www.ngvjournal.com/s1-news/c7-lng-h2-blends/volkswagen-starts-first-overseas-voyage-with-lng-powered-car-carrier/

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Finnish steel plant tests bio-LNG as a marine fuel

SSAB, ESL Shipping and Gasum are working together to reduce the emissions arising in shipping SSAB’s raw materials. Last year, SSAB and ESL

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Shipping introduced a new transport chain that, in comparison with its predecessor, nearly halved the CO2 emissions originating in shipping SSAB’s raw materials between Luleå, Oxelösund and Raahe. The improved transport chain brought into use ESL Shipping’s new ships Viikki and Haaga which are fueled by LNG rather than conventional fuels. Now these companies are piloting the use of bio-LNG as a supplementary fuel to further replace fossil fuels. In the test that kicked off this month, M/S Viikki was fueled with LNG and one tanker load of bio-LNG which was brought to SSAB Raahe from the Gasum Terminal in Pori. This is the first time that biogas is used as fuel for ships in Finland.  “With this test, we aim to find out whether biogas could be used in small amounts for maritime transport to reduce emissions. The methane in biogas originates from biogenic material and so does not contain any fossil coal. This means the amount of biogas used in the test could further reduce the fossil CO2 emissions originating in this transport chain by between 25% and 28%,” said HarriLeppänen, Head of Environment, Health & Safety at SSAB. Efforts toward removing fossil CO2 emissions from the transport chain would require replacing all LNG with bio-LNG and replacing the diesel fuel used to power the ship’s engine with fossil-free biodiesel. “Our company’s key environmental goal for 2020 is testing biogas in our ships. We have been engaged in long-term environmental work together with SSAB for years, and now we are taking a new significant step towards fossil-free sea transport, “commented Mikki Koskinen, ESL Shipping’s Managing Director. “The test with ESL and SSAB is in line with our strategy to bring cleaner fuels to our customers. We are all the time increasing our biogas production and sourcing to meet growing demand of our customers. We are already in discussions with ESL about running vessels Viikki and Haaga on 100% bio-LNG,” added Jacob Granqvist, Sales Director maritime, Gasum.

http://www.ngvjournal.com/s1-news/c7-lng-h2-blends/finnish-steel-plant-tests-bio-lng-as-a-marine-fuel/

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Algeria: Total and Sonatrach extend partnership in LNG

Total and Sonatrach have signed an agreement to renew their partnership in the field of liquefied natural gas (LNG).

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This agreement notably allows to extend the existing supply contracts for 3 additional years in order to provide 2 MMTPA of Algerian LNG to the French market, primarily through the LNG terminal at Fos Cavaou. The agreement also includes the sub-charter of an LNG tanker of Total by Sonatrach. “This agreement is part of the long history of cooperation between Total and Sonatrach. Thanks to the quality of our relationship we were able to conclude it in an extremely volatile market environment. This new contract further enhances the flexibility of Total’s LNG portfolio and strengthens our position as a major partner of Sonatrach,” said Laurent Vivier, President Gas of Total.

Total has been a historic player in the energy sector in Algeria for almost 70 years. The group is active in oil and gas exploration and production (participating interests in the TFT II and Timimoun gas fields and in the oil fields of the Berkine basin), as well as in liquefied natural gas through supply contracts with Sonatrach. The group is also active in the marketing of lubricants and bitumens. In addition, Total and Sonatrach have launched engineering studies for a petrochemical project in Western Algeria. Total, 2nd Largest Private Global LNG Player. Total is the second-largest private global LNG player, with an overall portfolio of around 50 Mt/y by 2025 and a worldwide market share of 10%. With over 34 Mt of LNG sold in 2019, the Group has solid and diversified positions across the LNG value chain. Through its stakes in liquefaction plants located in Qatar, Nigeria, Russia, Norway, Oman, Egypt, the United Arab Emirates, the United States, Australia or Angola, the Group sells LNG in all markets.

https://seanews.co.uk/shipping/tanker/algeria-total-and-sonatrach-extend-partnership-in-lng/

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

Nordic branded consumer goods supplier trials biogas Volvo trucks

Orkla has chosen Volvo Trucks and Gasum as its partners for a two-month trial period in Sweden. During this pilot, Orkla’s transport partner GDL will use bio-LNG to power vehicles

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between Orkla’s warehouse in Helsingborg and its production facility in Fågelmara, Blekinge. Orkla has set the goal for all of its domestic transport in Sweden to be fossil-free by 2025. To reach this objective, higher requirements will be set for transport procurement, with natural gas being one of the options available. Factors in favor of natural gas include the fact that Gasum is investing in the Nordic refueling network for bio-LNG to increase the number of stations to 50 by the early 2020s, and one of the stations will be located in Helsingborg and will open this summer. “We’re pleased with actors such as Orkla leading the way for sustainable transport. LNG provides great potential for emission reductions in the transport sector,” commented Mikael Antonsson, Director Traffic, Sweden, Gasum. “For us, this trial period is an exciting continuation of our transition to fossil-free alternatives. We are extending our fleet with natural gas vehicles, and this will provide us with further on-the-road experience of the pros and cons of the various technology options available today. We also value highly our constructive and competent cooperation partners in this project,” explained Anders Wendelius, Business Area Manager, GDL. The cooperation partners hope that the trial will show that natural gas trucks help to cut fuel costs as well as emissions without any negative impacts on performance. Kicked off at the beginning of June, the trial period will be assessed by Orkla as regards the environmental and economic effects relating to transport procurement over the longer term. “Our Volvo FH LNG trucks enable us to reduce our environmental impacts right here and right now. Filling up with biogas makes the transports fossil-free without affecting the performance of our heavy-duty vehicles – plus the fuel economy is also looking very positive,” added Stefan Strand, Managing Director, Volvo Trucks, Sweden.

http://www.ngvjournal.com/s1-news/c3-vehicles/nordic-supplier-of-branded-consumer-goods-trials-biomethane-volvo-trucks-in-sweden/[Edited]

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Amsterdam bets on circular economy, will use biogas for vehicles

In the metropolitan area of Amsterdam, vehicles are going to be supplied with green gas. Optimizing and transforming the current Sewage Water Treatment Plant of Amsterdam

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with the latest state of the art technology, delivered by DMT Environmental Technology, biogas will be produced in the nearby future. This will be a significant contribution towards a more circular economy and a reduction of GHG emission by lowering the demand for fossil fuels. The transformation of the current Sewage Water Treatment Plant will be installed by Waternet on behalf of WaterBoard Amstel, Gooi and Vecht in the western port area (RWZI). Beside of the households in Amsterdam, trucks, public transport and taxis, will also reduce significantly their carbon footprint by using this alternative fuel, due to the collaboration with Orangegas, operator of renewable natural gas fuel stations in the Netherlands and the biggest supplier of this clean alternative fuel for the transportation sector. Through this unique collaboration, renewable fuel is being utilized by 5,600 vehicles and 420 garbage collection trucks, resulting in a significant reduction in the carbon footprint of the transportation sector in Amsterdam. This is DMT’s biggest project in the Netherlands due to the “Total Solution Package,” acting as a “mini-EPC” contractor and even beyond that. The first phase was delivering a total engineering and design package for a biogas upgrading plant to process 2050Nm3/h of raw biogas; purifying, conditioning, compressing and drying to achieve the final required end-quality for injecting the biomethane into the Dutch national gas grid. This first phase included all the required local approvals in preparation for the second phase, the execution phase. The second phase, the actual build of the project, has started beginning of April 2020. DMT is responsible for the development of the entire site which includes local approvals, civils, security and entrance gates, transformer stations, HDD-drilling for the raw biogas pipelines and electrical power supplies. This concept, being a Total Solutions Provider for end-customers, has been launched last year of which Waternet is a great example. “In this project we will take it even one step further, DMT is going to operate the biogas upgrading plant for a minimum of 10 years, the model is launched as an EPCMOT– Engineering, Procurement, Construct, Maintain, Operate and Trade. In this consortium, Orangegas will be responsible for the trading of the gas,” said Francois Huberts, Global Sales & Marketing Director at DMT Environmental Technology. This Biogas Upgrading System will upgrade 14,7 million m3 raw biogas into 9,7 million m3 upgraded biomethane. The project will supply about 10% of the total amount of green gas utilized by the national grid in the Netherlands. Waternet soon will become one of the biggest biomethane providers in the country with a total CO2 reduction of 26.200 tons per year.

http://www.ngvjournal.com/s1-news/c1-markets/amsterdam-transitions-towards-circular-economy-will-use-biogas-for-vehicles/

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Own biogas station for UK chain of supermarkets & department stores

The John Lewis Partnership is stepping up its commitment to reducing carbon emissions by building a dedicated biomethane filling station to enable its largest heavy goods vehicles to use a low-carbon alternative to diesel.

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The new facility is expected to open in December 2020. Alongside this, the Partnership has also announced an ambition to stop using fossil fuels across its entire 4,800 strong transport fleet by 2030.

In March 2019, the employee-owned business pledged to be net zero carbon across its entire operations by 2050 at the latest and its 600 heavy goods vehicles to be switched to low-carbon biomethane by 2028. Since last year, the Partnership has reduced its total operational carbon emissions by 6.6% and emissions from transport have fallen by 6.9%. The new biomethane station will be built in conjunction with Air Liquide and will be located at the Partnership’s head office in Bracknell, becoming the business’s first on-site natural gas station. It will facilitate the conversion of the Bracknell Waitrose fleet to biomethane and complement natural gas stations already in use near to John Lewis and Waitrose regional distribution centers in Leyland, Lancashire, and in Northampton. Over the next seven years, the Bracknell site alone will save over 70,000 tons of CO2, equivalent to the carbon footprint produced by over 13,000 UK households. Since 2015, 85 of the Partnership’s heavy diesel vehicles have already been replaced with biomethane trucks, and a further 143 will be purchased and in operation by the end of 2020, making this the largest order of biomethane trucks in the UK. “The evidence of climate change is all around us, so it’s important we act now using available technology rather than wait for unproven solutions to appear. We are working hard towards our new aim of removing all fossil fuel from our transport fleet by 2030, which will reduce our carbon emissions by over half a million tons and gets us well on the way to our ultimate target of operating a net zero carbon emission fleet,” said Justin Laney, Partner & General Manager of Central Transport at the John Lewis Partnership.

http://www.ngvjournal.com/s1-news/c4-stations/uk-chain-of-supermarkets-and-department-stores-will-open-own-biogas-station/

 

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Finnish steel plant tests bio-LNG as a marine fuel

SSAB, ESL Shipping and Gasum are working together to reduce the emissions arising in shipping SSAB’s raw materials. Last year, SSAB and ESL

read more

Shipping introduced a new transport chain that, in comparison with its predecessor, nearly halved the CO2 emissions originating in shipping SSAB’s raw materials between Luleå, Oxelösund and Raahe. The improved transport chain brought into use ESL Shipping’s new ships Viikki and Haaga which are fueled by LNG rather than conventional fuels. Now these companies are piloting the use of bio-LNG as a supplementary fuel to further replace fossil fuels. In the test that kicked off this month, M/S Viikki was fueled with LNG and one tanker load of bio-LNG which was brought to SSAB Raahe from the Gasum Terminal in Pori. This is the first time that biogas is used as fuel for ships in Finland.  “With this test, we aim to find out whether biogas could be used in small amounts for maritime transport to reduce emissions. The methane in biogas originates from biogenic material and so does not contain any fossil coal. This means the amount of biogas used in the test could further reduce the fossil CO2 emissions originating in this transport chain by between 25% and 28%,” said HarriLeppänen, Head of Environment, Health & Safety at SSAB. Efforts toward removing fossil CO2 emissions from the transport chain would require replacing all LNG with bio-LNG and replacing the diesel fuel used to power the ship’s engine with fossil-free biodiesel. “Our company’s key environmental goal for 2020 is testing biogas in our ships. We have been engaged in long-term environmental work together with SSAB for years, and now we are taking a new significant step towards fossil-free sea transport, “commented Mikki Koskinen, ESL Shipping’s Managing Director. “The test with ESL and SSAB is in line with our strategy to bring cleaner fuels to our customers. We are all the time increasing our biogas production and sourcing to meet growing demand of our customers. We are already in discussions with ESL about running vessels Viikki and Haaga on 100% bio-LNG,” added Jacob Granqvist, Sales Director maritime, Gasum.

http://www.ngvjournal.com/s1-news/c7-lng-h2-blends/finnish-steel-plant-tests-bio-lng-as-a-marine-fuel/

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Three new biomethane plants and bioCNG fuelling station “on track”, says Cadent

Three biomethane production plant projects involving Cadent Gas remain on track despite the disruption caused by the coronavirus pandemic.

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The firm said the projects are on course to start sending low-carbon “gas from trash” into Cadent’s network this year, as its teams “kept the wheel in motion” during lockdown. Increasing the use of biomethane from food, farm, human and other wastes as feedstocks to produce grid-quality gas, is recognised as a key stage in the UK’s journey to net-zero emissions, according to Cadent. In a recent update, the firm said it has “maintained support” to Severn Trent Water as it looks to commission two new biomethane production facilities later this year – one at its waste treatment sites in Finham, near Coventry, and the other at Stoke Bardolph in Nottinghamshire. It is also working with developers behind a third new site, which plans to use crops and animal waste as feedstock to power the gas production processes.

In a statement, Cadent said: “Adapting to the challenges presented by coronavirus, we’ve been able to use digital technology to keep in close virtual contact with the teams seeking to make these three sites happen, which has ensured crucial stages in the journey to commissioning have kept to the timetable.” Cadent has 35 production plants connected to its network, supplying enough gas to meet demand from up to 243,000 homes- enough to meet the household heat demand from a city the size of Manchester. Plans are also on track to open a new bioCNG fuelling station at Cadent’s national distribution centre in Birmingham and another in Knowsley, Merseyside. Tim Hawke, connections manager at Cadent, said: “Alongside hydrogen, biomethane is a critical part of the pathway to the UK achieving net-zero. “While we don’t produce these gases, it’s our job to safely distribute them and to be satisfied that any new facility either bringing it into our network or taking it out, is doing so in a way that meets the stringent safety conditions we insist on. “That requires a lot of collaboration and inspection, on-site and in meetings. We’ve adapted our ways of working during lockdown to find digital and/or socially distanced ways of doing that. “It’s testament to the hard work of many people that these important facilities, which represent millions of pounds of investment into a greener future for the UK, remain on track.”

https://www.bioenergy-news.com/news/three-new-biomethane-plants-and-biocng-fuelling-station-on-track-says-cadent/

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