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

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NATIONAL

City Gas Distribution & Auto LPG

CMC approves IOC proposal for laying gas distribution pipeline || India orders to implement measure to cut emissions in New Delhi airport || Vikrams to get replaced with CNG vehicles

India orders to implement measure to cut emissions in New Delhi airport

India’s environment tribunal, the National Green Tribunal (NGT), directed the Airports Authority of India (AAI) and the Delhi International Airport Limited (DIAL) to implement measures authorized by it in a 2017 decision. The order aims to curb noise pollution in India’s capital New Delhi. NGT Chairperson Adarsh Kumar Goel and two other judicial members, Judge SP Wangdi, and Judge K Ramakrishnan, pronounced the decision in a bid to reduce noise pollution in the vicinity of New Delhi’s Indira Gandhi International (IGI) airport. 

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Public transport used at the airport is expected to adhere to environmental norms. “All the coaches/buses and other vehicles plying at the airport should be CNG and must comply with the prescribed emission standards. Non-CNG buses/coaches or other vehicles plying at the airport should be converted to CNG,” the order reads. The bench ordered the government to “take all mitigating measures for reducing noise pollution…expeditiously.” According to the order, the measures include “construction of sound barriers” around the airport “at the earliest.” The government has also been directed to provide for “a green belt around the boundary wall of the airport while keeping the safety and security both in mind.”

http://www.ngvjournal.com/s1-news/c1-markets/india-orders-to-implement-measure-to-reduce-emissions-in-new-delhi-airport/

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CMC approves IOC proposal for laying gas distribution pipeline

Indian Oil Corporation Limited (IOCL) got a nod for laying underground pipeline for supply of gas to domestic, industrial or commercial premises and CNG stations within the limits of Chas Municipal Corporation (CMC) area. We are at work for door-to-door supply of domestic gas through pipelines across the municipal corporation area. It would be cheaper for the users in comparison to cylinder filled gas, he said.

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For this City Gas Distribution (CGD) project a gas stock station or depot is proposed at Sindurpeti at Bidhibinor village. Additional Municipal Commissioner CMC, Sashi Prakash Jha said, IOCL has been given approval for a CGD network for supply of gas to domestic, industrial or commercial premises.  “In order to lay the pipelines if the road or the drain got damaged then IOCL will have to repair it within 48 hours,” added Jha. Notably, GAIL is also at work for laying the pipelines for the CGD, a part of Jamshedpur-Haldia and Bokaro-Dharma Pipeline (JHBDPL) which is also known as Pradhan Mantri Urja Ganga Project, informed an official. The 2655 km long JHBDPL project with an estimated to cost Rs 51,000 crore was inaugurated in July 2015 by the PM Modi, passed through Uttar Pradesh, Bihar, Jharkhand, West Bengal and Odisha, he said. Around 500km of the pipeline is scheduled to be passed through Jharkhand from Bokaro, Giridih, Hazaribagh, Ranchi and Dhanbad, Jamshedpur from where it would be linked to Rourkela in Odisha. There is the plan to supply cooking gas directly at homes in Bokaro, Jamshedpur and Ranchi in Jharkhand, informed the official. The pipeline is under construction and likely to be commissioned by the end of 2019, he said.

https://www.dailypioneer.com/2019/state-editions/cmc-approves-ioc-proposal-for-laying-gas-pipeline.html

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Vikrams to get replaced with CNG vehicles

The Vikram Jankalyan Sewa Samiti has agreed to the administration’s decision of replacing diesel engine Vikrams with Compressed Natural Gas (CNG) vehicles. However, they have put few of their demands forward including the demand for providing stage carriages permit to Vikrams in the city. The committee further said that it will only be replacing those vehicles that are in non-functional state.

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The kit and the engine of rest of the vehicles will be changed accordingly.  The committee general secretary Rajendra Kumar said, “We have no problem with replacing our vehicles with CNG vehicles, but we will only replace those Vikrams which are in condemned state. For those Vikrams which are just two to five years old, we have spoken with Scooter India; they will be changing the engine or the kit of the vehicles accordingly.” He said, “We have been given assurance by the government that they will be working on the amendments of the 2011 regulations so that stage carriage permit can be issued to us. For that we will have to follow certain rules, to which we agree. In fact, 324 of our members have also applied for the permit.”

He further added, “In 1979 about 800 Vikrams were in Dehradun, even today our number is 794. It is not because of us that the pollution is increasing, but because of the increasing number of private vehicles in the city. No one takes their number into account; it is just the operation of Vikrams that gets all the blame.”Another member of the committee said, “It is the e-rickshaws that are violating the rules. They were supposed to be driven by the owner, but now one owner has two-three e-rickshaws. Also, they were to operate on the link routes, but now are operating even on National Highways.

https://www.dailypioneer.com/2019/state-editions/vikrams-to-get-replaced-with-cng-vehicles.html

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City Gas Distribution & Auto LPG

Electric Mobility

Natural Gas / Pipelines / Company News

Policy Matters/Gas Pricing/Others

LNG Development and Shipping

 

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SNAPSHOT: NATIONAL

Electric Mobility

Electric buses are more cost-effective, says study || Will banning internal combustion engines help the case of electric three-wheelers? || China’s first city in world to have complete e-buses & taxis || Government plans to electrify 40% cabs by 2026

Electric buses are more cost-effective, says study

According to a study conducted by Tata Institute of Social Sciences (TISS), electric buses stand to be financially more viable for operating in the city compared with diesel and CNG buses operating at present.

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The institute has conducted research on the economic feasibility of introducing electric buses for public transport in Pune. Of the 2,000 buses the city has, about 1,200 run on CNG while the remaining 800 operate on diesel. “Majority of the studies conducted so far have looked at the indirect viability in terms of health and pollution. Financial feasibility to understand the economics remains an unchartered territory,” said Suvedh Jaywant, a research scholar at TISS. The Pune Mahanagar Parivahan Mahamandal Limited (PMPML) had inducted 25 electric buses in February this year and aims to commission 500 new-technology-based fully electric buses in its fleet. Jaywant said data analysis showed that according to the existing business model, it is viable to operate electric buses, having a cost per kilometre (CPK) of Rs 50.28 compared with diesel and hybrid buses with CPK of Rs 54.63 and Rs 56.07, respectively. Operating electric buses is environmental-friendly compared with diesel buses, added the scholar. Speaking to Mirror, the scholar said that the scenario may change making the electric buses more feasible. “The costs of batteries used in the buses are expected to get cheaper while the cost of the CNG is increasing. In such a case, the total cost inclusive of the capital and purchase expenses could become comparable to the diesel and CNG operating buses in the long term and if the electric buses are commissioned in phases,”Jaywant added. Chairman and MD of PMPML, Nayana Gunde, however, said that it would be too soon to comment on the total benefits of the electric buses. “It has been just three months since the 25 buses have started their operations in the city. It would take at least six months to understand the economics for the public transport services,” she said, adding that the earnings per kilometre are definitely better but a long term study would be required to actually know the feasibility.

https://punemirror.indiatimes.com/pune/civic/electric-buses-are-more-cost-effective-says-study/articleshowprint/69639814.cms?prtpage=1

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Will banning internal combustion engines help the case of electric three-wheelers?

Niti Aayog has proposed to phase out three-wheelers powered by internal combustion engines by 2023 in a bid to increase the sales of electric three-wheelers. But a straightforward ban may not be an easy solution when electric infrastructure is yet to be developed.

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Electric mobility is the future, and India is all set to fast-track the adoption of electric vehicles across different segments. The government has pushed early adoption of electric vehicles by offering incentives and special schemes for manufacturers of electric vehicles. Under the FAME II (Faster Adoption and Manufacture of Hybrid and Electric Vehicles) Scheme, the government has earmarked ₹ 10,000 crore to help establish charging infrastructure for electric vehicles as well as provide incentives to electric vehicle manufacturers and allied supply chain industries. But now, the government’s think tank, Niti Aayog has gone a step further, proposing a ban on all three-wheelers powered by internal combustion engines along with two-wheelers of 150 cc and below displacement. The electric two-wheeler space is still in a nascent stage, but slowly and certainly, conventional two-wheeler manufacturers are stepping up development of electric scooters and bikes. Niti Aayog also proposes a complete ban on three-wheelers powered by internal combustion engines. But how realistic is it to set a deadline to phase out all three-wheelers with internal combustion engines, and that too, within a short period of just three years?

Source: NDTV Car & Bike

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China’s first city in world to have complete e-buses & taxis

Shenzhen, in southeastern China currently have more than 16,000 electric buses and 12,000 electric taxis with metropolis’s palm-fringed boulevards. There are none diesel or gasoline buses or taxis available there and all-electric vehicles are made in China.

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Zheng Jingu, the Shenzen transit official said that though it costs a lot of money but it helps our citizens and improves air. The tech hub became the first city in the world to have electric buses and electric taxi fleet. The transition from diesel and gasoline was completed in January which led to reducing of CO2 emissions from the air of about 1.35 MMT a year by removing 280,00 passenger cars off the road.

Source: electricvehicles.in

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Government plans to electrify 40% cabs by 2026

To Electrify Ola and Uber Indian Govt. is planning to order the ride-sharing companies such as Ola and Uber to convert their fleet to 40% electric vehicles (EVs) by 2026.

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The authorities will order both the companies to adopt electric vehicles 2.5 percent by 2021, 5 percent by 2022, 10 percent by 2023, and 40 percent by 2024. Ola and Uber have been given the opportunity to transform their fleet gradually.

Source: electricVehicles.in

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SNAPSHOT: NATIONAL

Natural Gas / Pipelines / Company News

France’s Total close to buying 30% in Adani Gas for $1bn || Three-way merger of power cos, GAIL split first up in PSU rejig || Mahindra & Mahindra to move to BS-VI norms ahead of plan || GAIL India adopts Bloomberg’s treasury solutions || Natural gas not to drive ONGC's profitability in near term: Moody's

France’s Total close to buying 30% in Adani Gas for $1bn

French energy giant Total SA is advancing on a deal to acquire a 30% stake in city gas distribution (CGD) company Adani Gas for over $800 million, or upwards of Rs 5,500 crore.

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The deal, which is likely to be announced shortly, would help the infrastructure conglomerate to pare debt and bring in strategic expertise into an expanding business, people directly aware of the matter said. The deal  depending on its contours  is expected to trigger an open offer to public shareholders. After that, billionaire promoter Gautam Adani and Total might have roughly equal shareholding, based on how much the latter mops up through the open offer. So the deal size could be well above $1 billion. Adani currently owns almost 75% stake in the gas company, which was listed on the bourses only six months ago. At close of Thursday’s (June13) trading hours, a 30% stake in Adani Gas is valued at over Rs 5,500 crore. The deal is expected to be done at a premium to the prevailing market price of Rs 169 apiece. The deal comes after Total and Adani Group entered into a strategic partnership in October to develop various regasification LNG (liquefied natural gas) terminals, including Dhamra LNG, besides a joint venture to set up 1,500 service stations. The people cited earlier said Total has broader plans with the conglomerate in the Indian energy sector and has been evaluating partnership in various segments beyond LNG and fuel retail. Total, one of the seven big oil companies in the world that includes BP and ExxonMobil, had revenues of $210 billion and a net profit of $11 billion in 2018. The company, listed on the New York Stock Exchange and Euronext, has a market capitalisation of over $142 billion. Adani Gas saw operating revenues increase by 32% to Rs 1,823 crore for the year ending March 2019 with profit after tax moving up 39% to Rs 229 crore.

https://timesofindia.indiatimes.com/business/india-business/frances-total-close-to-buying-30-in-adani-gas-for-1bn/articleshow/69779831.cms

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Three-way merger of power cos, GAIL split first up in PSU rejig

Indian Oil Corporation had evinced interest in natural gas processing and distribution company GAIL last year

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India has started work on restructuring state-owned companies and on the immediate agenda is the bifurcation of GAIL (India) into marketing and transportation units one of them to be sold and a three-way merger of power generation companies NTPC, SJVN and NHPC. “We are looking at various combinations,” said a finance ministry official aware of developments. Indian Oil Corporation, the state-owned refiner, had evinced interest in natural gas processing and distribution company GAIL last year, and may be a potential buyer, the official said. IOC is the second-biggest gas marketer in India, after GAIL. The government holds 52.64% in GAIL, which has a market capitalisation of Rs 80,844 crore. “In the past, the petroleum ministry had some reservations… we expect to iron out these issues this time,” the official said, adding that the government could raise about Rs 30,000 crore from a stake sale in such an exercise. In a similar transaction last fiscal, the government sold its entire stake in REC, formerly Rural Electrification Corporation, to state-run Power Finance Corporation for Rs 14,500 crore. Oil & Natural Gas Corporation, India’s biggest exploration company, bought the government’s entire stake in refiner Hindustan Petroleum Corporation for Rs 36,915 crore. The government has set a disinvestment target of Rs 90,000 crore for the current financial year. It raised Rs 84,972.16 crore in 2018-19 against a target of Rs 80,000 crore.

https://economictimes.indiatimes.com/industry/energy/power/three-way-merger-of-power-cos-gail-split-first-up-in-psu-rejig/articleshow/69667740.cms

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Mahindra & Mahindra to move to BS-VI norms ahead of plan

Mahindra & Mahindra, India’s leading utility vehicles maker, said that it would transition to the stringent BS-VI emission norms ahead of schedule, and save at least 20% on the estimatedcost increase of vehicles due to

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high localisation content. Mahindra will be upgrading eight diesel and four petrol engines driving more than 50 products, a transition that called for an investment of more than Rs 1,000 crore. “The past three-and-a-half years have perhaps been the most challenging for any product development and sourcing organisation in the auto industry in India,” said Pawan Goenka, managing director of Mahindra and Mahindra. He said that Mahindra will launch its first BS-VI petrol vehicle as early as the beginning of the second half of this financial year as these vehicles can run on BS-IV compliant fuel. The BS-VI diesel vehicles will only be launched when BS-VI compliant diesel fuel becomes available, Goenka said. The Centre had said in 2016 that the Indian auto industry would skip BS-V emission norms and leapfrog to BS-VI standards from April 2020 to combat rising air pollution.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/mahindra-mahindra-to-move-to-bs-vi-norms-ahead-of-plan/69642004

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GAIL India adopts Bloomberg’s treasury solutions

Bloomberg announced today that the GAIL (India) Limited, India’s largest state-owned natural gas processing and distribution company, has adopted Bloomberg’s treasury solutions to further enhance its risk management needs.

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In addition to adopting Bloomberg’s Foreign Exchange electronic trading platform (FXGO) for foreign exchange dealing, GAIL is expanding the company’s use of Bloomberg solutions to help further automate its treasury workflow and provide a comprehensive oversight of its accounting risks.  “As our treasury function grows in sophistication and complexity, it was important that we have the right technology to support our needs,” said Sh. A.K. Tiwari, Director (Finance) at GAIL. Bloomberg offers a full suite of integrated solutions for the entire risk management workflow that provides powerful treasury functionality underpinned by high quality data. Treasury solutions adopted by GAIL include pre-trade analysis, corporate finance and valuation services. “It’s very encouraging to see public sector companies in India continuing to adopt a strong risk management mindset,” said Ashlesh Gosain, Head of South Asia Sales for Bloomberg. “A treasury department is a backbone for any corporation, so minimizing operational risks by automating manual processes should be its top priority. This is especially important for companies looking to build a strong central treasury function to efficiently manage its subsidiaries on one seamless workflow.” Bloomberg’s new subsidiary staging portal has created for GAIL, an automated, real-time central treasury platform. These enhancements will reduce its operating risk, increase efficiency and create a fully-transparent audit trail.

https://www.apnnews.com/gail-india-limited-adopts-bloombergs-treasury-solutions/

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Natural gas not to drive ONGC’s profitability in near term: Moody’s

India’s top oil and gas producer ONGC will not see natural gas contributing heavily to its profitability in the near term despite the company aiming to raise output over the next few years, Moody’s Investors Service said Tuesday (June4).

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National oil companies (NOCs) worldwide are currently retailoring their business strategies in response to climate-change imperatives and developing energy transition changes, Moody’s said in a report that studies how state-sponsored oil companies are preparing against energy transition risk. India’s energy strategy, it said, aims to reduce its hydrocarbon imports by 10% by 2020 through several measures  increasing domestic production, adopting biofuels and renewables, improving energy efficiency norms, improving refinery processes and prompting crude demand substitution. The country aims to have 175 GW of renewable energy capacity by 2022, reduce its energy-emissions intensity by 33-35 per cent by 2030, and raise the share of non-fossil fuels in its electricity mix to more than 40 per cent by 2030. “Despite such efforts, fossil fuels will continue to occupy a significant share of India’s energy demand for the foreseeable future,” Moody’s said. As India’s largest NOC, Oil and Natural Gas Corporation (ONGC) is aligned with the government’s aim to reduce India’s dependence on energy imports, which make up more than 80% of its oil consumption and more than 40% of its natural gas consumption today, it said. The government has also pushed to reduce hydrocarbon consumption by offering incentives for the use of electric vehicles, and mandating minimum blending requirements of 20 per cent for biodiesel and 5 per cent for ethanol by 2030. Moody’s said although natural gas made up 44% of ONGC’s sales, it only accounted for about 17% of total sales revenue. “ONGC aims to increase natural gas production over the next few years as it develops its new discovery on the eastern coast of India. However, natural gas will not contribute heavily to ONGC’s profitability for the near term,” it said. This may be because of the government fixing rates of natural gas it produces.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/natural-gas-not-to-drive-ongcs-profitability-in-near-term-moodys/69650920[Edited]

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SNAPSHOT: NATIONAL

Policy Matters/Gas Pricing/Others

Hike in GAIL pipeline rates || East West Gas Pipeline: Steep hike in tariffs to hit user industries || ONGC, Vedanta set to win nine oil, gas blocks each; Reliance-BP one, OIL 12

Hike in GAIL pipeline rates

GAIL India has hiked the tariff for its Hazira-Vijaipur-Jagdishpur (HVJ) pipeline network by 61% to Rs 41.11 per MMBtu from next month.

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“The levelised tariff for integrated HVJ is Rs 41.11 per MMBtu on a GCV (gross calorific value) basis,” oil regulator Petroleum and Natural Gas Regulatory Board (PNGRB) said in its order. Industry officials said GAIL has been charging Rs 25.46 per MMBtu to those who have been the users of the pipeline since November 2008 and Rs 53.65 per MMBtu to users since March 2010. Under the new structure, the tariff would increase 61.4% for old customers, while it would come down 23.3% for the new customers. About 80% of GAIL’s customers are old users. Officials said the state-owned firm was finding it difficult to get new customers as they had to pay more than double the rate paid by the older users. The new tariff rate would boost the customer base of the state-owned gas transmission firm. GAIL’s integrated pipeline network of HVJ, Dahej-Vijaipur (DVPL) and Vijaipur-Dadri (GREP) accounts for over 70% of the PSU’s gas transmission volume. GAIL had sought to raise the tariff to Rs 175.20 per MMBtu in HVJ from Rs 25.46 per MMBtu and to Rs 88.09 per MMBtu in DVPL from Rs 53.65 per MMBtu. Stating that such a tariff would be highly inequitable for the users of the HVJ system compared with DVPL, GAIL said a “final levalised tariff of Rs 97.04 per mBtu for the HVJ integrated system be considered by the regulator”. The firm said such a levalised tariff would help the gas users of the standalone HVJ pipleine as the tariff would substantially come down, and it would undergo marginal upward revision for the DVPL users. However, the hike would lead to an increase in the costs for the fertiliser, power and city gas companies which use the gas from the pipelines. “Though the returns for the gas transmission entities would improve with the revision in tariffs, the final tariffs approved are significantly lower than the tariffs submitted owing to the conservative assumptions taken by PNGRB,” Prashant Vasisht, vice-president and co-head, corporate ratings, Icra, said.

https://www.telegraphindia.com/business/hike-in-gail-pipeline-rates/cid/1691873

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East West Gas Pipeline: Steep hike in tariffs to hit user industries

The tariff for zone 1 has been revised to Rs 65.50 per MMBtu on the gross calorific value (GCV) basis from the existing Rs 15. Starting July 1, transportation of natural gas for shorter distances through the East West Natural Gas Pipeline (EWNGP) is set to become expensive, potentially increasing input cost of fertliser makers and city gas distributors (CGDs).

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The Petroleum and Natural Gas Regulatory Board (PNGRB) in its zonal tariff order on June 4 approved a 337% hike in tariff for zone 1 and 79% hike in zone 2. On March 13, 2019, the PNGRB had approved a 37% rise in levelised tariff starting April 1, 2019 from Rs 52.23 per MMBtu to Rs 71.66 per MMBtu and had said zonal tariff will be announced after getting proposal from the pipeline operator. The loss-making pipeline transports Reliance Industries’ eastern offshore KG-D6 gas. Soon after tariffs were revised, Brookfield on March 15 announced that it would buy a 100% stake in the pipeline operator Pipeline Infrastructure (PIPL), owned by Mukesh Ambani. Production of natural gas from KG D6 has fallen from 69.43 MMSCMD achieved in March 2010 to under 3 MMSCMD at present. The tariffs for zone 3, 4 and 5 have been revised upwards by 46%, 36% and 32%, respectively. The PNGRB in its order noted that it found the zonal tariff proposed by PIPL for the first two zones to be significantly higher than the existing tariff and approved the same only after studying zone-wise volumes from FY10 to FY19. “…it is observed that actual average tariff realisation for PIPL is below the levelised tariff of Rs 52.23 in each of the years during the period FY2009-10 to FY2018-19.” However, this may not be the case in future, as volumes of gas transported is likely to go up significantly once CGDs approved start operations. While 86 geographical areas have been awarded during the ninth round, 50 were awarded during the 10th round.

https://www.financialexpress.com/economy/east-west-gas-pipeline-steep-hike-in-tariffs-to-hit-user-industries/1599185/

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ONGC, Vedanta set to win nine oil, gas blocks each; Reliance-BP one, OIL 12

State-owned Oil and Natural Gas Corp (ONGC) and mining billionaire Anil Agarwal-led Vedanta Ltd are set to win nine oil and gas blocks each in the latest auction, while Reliance Industries and its British partner BP Plc is set to win KG basin gas block.

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Sources said the Directorate General of Hydrocarbons (DGH) has completed the evaluation of the bids received for 32 oil and gas exploration blocks that were auctioned in the latest licensing round. As per the bid evaluation, ONGC and Vedanta Ltd are top bidders in nine blocks each and state-owned Oil India Ltd (OIL) in 12 areas. Reliance-BP combine outbid ONGC in one Krishna Godavari basin block in the Bay of Bengal. The winners of the auction will be announced after the approval of the Cabinet Committee on Economic Affairs (CCEA) headed by Prime Minister Narendra Modi, sources added. Bidding for 14 blocks on offer in the Open Acreage Licensing Policy (OALP) round-II and another 18 oil and gas blocks and 5 coal-bed methane (CBM) blocks on offer in OALP-III closed on May 15. When the government in July 2017 allowed companies to carve out blocks of their choice with a view to bring about 2.8 million sq km of unexplored area in the country under exploration, Reliance-BP sought the KG area containing the discoveries. Under the new policy, areas sought by any company are put on auction with the initiator or the company that originally carved out the block, getting a 5 point advantage. Sources said Reliance-BP managed to get the coveted KG block in the latest auction by a small margin that possibly came from the originator marks and a commitment to do a shale core exploration. Reliance-BP had last jointly bid for a KG deep water block in the 8th bid round under previous licensing policy in 2008. They, however, gave up the block after not finding any commercially exploitable oil and gas reserves. Sources said at the close of bidding for the current round on May 15, ONGC had put in bids for 20 out of the 32 blocks on offer, while OIL made bids for 16 blocks. Vedanta, which had walked away with 41 out of the 55 blocks offered in OALP-I last year, bid for 30 areas. Indian Oil Corp (IOC), GAIL (India) and SunPetro bid for two blocks each, they said. In OALP-1, Vedanta walked away with 41 out of 55 blocks bid out. Oil India won nine blocks while ONGC managed to win just two.

https://www.zeebiz.com/india/news-ongc-vedanta-set-to-win-9-oil-gas-blocks-each-reliance-bp-one-oil-12-101728

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SNAPSHOT: NATIONAL

LNG Development and Shipping

ILNG imports rise by 9.7% as domestic consumption increases || Petronet expands Dahej import terminal capacity || GoM thrashes out final investment decision on Mozambique LNG project || India's Reliance seeks three LNG cargoes for July, Sept, Oct -sources || Indian Oil issues tender for short-term lease of LNG storage tank || Petronet in a bind with capacity expansion and lower offtake || GAIL offers to assume Konkan LNG’s debt in exchange for stake

LNG imports rise by 9.7% as domestic consumption increases

India’s imports of LNG increased 9.7% year-on-year and 13.4% month-on-month to 83 MMSCMD said the Petroleum Planning & Analysis Cell and Ministry of Petroleum and Natural Gas.

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The increase comes after a five-month period of lower year-on-year (yoy) imports between November 2018 and March 2019, wherein the average LNG imports were 10.4% lower at 69.5mmscmd than the corresponding five-month period last year. The 0.3% year-on-year reduction in domestic natural gas production in April 2019 coupled with 4.2% year-on-year increase in consumption demand seems to have driven the increase in LNG imports. LNG was procured during the month by Petronet LNG Ltd., GAIL (India) Ltd., Gujarat State Petroleum Corporation Ltd., Reliance Industries Limited, Torrent Power Limited, Shell (formerly Hazira LNG Pvt. Ltd.), Indian Oil Corporation Limited & Bharat Petroleum Corporation Limited. Total consumption for the month of April 2019 was 4341 MMSCM. Major consumers were fertilizer (27%), power (22%), CGD (18%), refinery (14%), and petrochemicals (7%). However, crude oil production decreased by 6.9% year-on-year in April. During the month, the production volumes of Oil and Natural Gas Corporation and Oil India Limited declined 4.9% yoy and 3.9% yoy, respectively, and that of fields under production-sharing contracts fell 12.4% yoy. India Ratings and Research added that in April 2019, crude oil import volume grew 14.1% yoy and India’s crude oil import dependency was 86.8%.

https://www.livemint.com/industry/energy/lng-imports-rise-by-9-7-as-domestic-consumption-increases-1560231700413.html[Edited]

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Petronet expands Dahej import terminal capacity

Petronet had more than one-and-a-half decade ago started operations of India’s maiden liquefied natural gas (LNG) import facility at Dahej in Gujarat with a nameplate capacity of 5 MMTPA. Petronet LNG Ltd, India’s largest natural gas importer,

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June 10 said it has expanded its Dahej import terminal capacity to 17.5 MMTPA from current 15 MMTPA. The initial capacity of 5 MMTPA was subsequently doubled and later the import capacity was raised to 15 MMTPA. “We wish to inform that facilities related to expansion of Dahej LNG terminal from 15 to 17.5 MMTPA i.e. addition of 2.5 MMTPA LNG regasification facilities has been commissioned and under stabilisation,” the company said in a regulatory filing. Petronet also has a 5 MMTPA facility at Kochi in Kerala. “As such the additional gas send-out from Dahej LNG terminal has commenced,” it said. “The performance guarantee test shall be performed once the system is stabilized.”

https://www.moneycontrol.com/news/business/petronet-expands-dahej-import-terminal-capacity-4082931.html

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GoM thrashes out final investment decision on Mozambique LNG project

Less than a week after the Modi 2.0 government took charge, a Group of Ministers (GoM) got into a huddle with Home Minister Amit Shah to discuss important trade and economic issues, particularly in the petroleum sector.

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Though no official statement was made, sources told BusinessLine the meeting, convened at the Home Ministry office, was attended by Finance Minister Nirmala Sitharaman, External Affairs Minister S Jaishankar, Petroleum Minister Dharmendra Pradhan, Commerce Minister Piyush Goyal and NITI Aayog CEO Amitabh Kant, among others. Besides discussing challenges faced by India following recent trade decisions taken by the US , the policy makers also debated the final investment decision (FID) on the multi-billion dollar Mozambique LNG project. ONGC has a participating interest in the Mozambique Rovuma Area-1 Offshore Project through its overseas subsidiary, ONGC Videsh, while BPCL has a stake in it through Bharat PetroResources Ltd (BPRL). Officials said the decision taken at the GoM meeting will soon be approved by the Cabinet. The Mozambique government had said an FID announcement on the project would be made on June 18. BusinessLine had reported last December that the FID would be taken in the first half of calendar 2019. ONGC Videsh presently holds a 16% interest in the Mozambique Rovuma project, of which a 10% participating interest (PI) is held directly by ONGC Videsh and another 6% through its 60% shareholding in Beas Rovuma Energy Mozambique Ltd (BREML). The remaining 40% stake in BREML is held by Oil India Ltd. Anadarko Petroleum Corporation is the operator of this project with a 26.5 per cent PI. The other partners include Mitsui (20%), ENH (15%), BPRL (10%) and PTTEP (8.5%). The FID has been delayed by over six months. First gas production from the project is expected to start within 36-48 months after the approval — in 2022-23.

https://www.thehindubusinessline.com/economy/policy/gom-thrashes-out-final-investment-decision-on-mozambique-lng-project/article27473206.ece

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India’s Reliance seeks three LNG cargoes for July, Sept, Oct -sources

Last week the company sought one cargo for Aug. 10-15 delivery, which a third source said was awarded at $4.45 to $4.55 per MMBtu. India’s Reliance Industries is seeking three liquefied natural gas (LNG) cargoes for delivery,

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with one a month in July, September and October, two industry sources said on Friday (June7). Offers are due on June 7, one of the sources said. Last week the company sought one cargo for Aug. 10-15 delivery, which a third source said was awarded at $4.45 to $4.55 per million British thermal units.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/indias-reliance-seeks-three-lng-cargoes-for-july-sept-oct-sources/69690747

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Indian Oil issues tender for short-term lease of LNG storage tank

Indian Oil Corp has issued a tender for short-term commercial lease of its LNG storage tank at Ennore terminal near Chennai in south India, according to a notice posted on the company website.

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The company is seeking bids for the short-term lease for LNG unloading, storage and reloading services at the 5 MMTPA import facility which was commissioned earlier this year. The contract period is for two years from the date of the agreement execution, according to the document. Tenders are invited in a single-stage two-bid system, with the first part being the commercial bid and the second stage for the price bid, according to the notice.

Bids are due by July 15, the notice said. The Ennore terminal is owned by IndianOil LNG, a joint venture of IOC, private equity fund IDFC Alternatives and ICICI Bank, according to IndianOil LNG’s website. The terminal worth 51.5 billion rupees ($741 million) is India’s fifth, and the first to be located on the east coast in south India. Currently, there is limited gas infrastructure in Tamil Nadu. The terminal is expected to spur industrial growth in the area with the re-gasified LNG to be distributed to power generation plants, fertiliser plants and other industrial units.

Source: ET EnergyWorld

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Petronet in a bind with capacity expansion and lower offtake

Falling consumption in major industrial sectors would take time to reverse; short-term uptick likely from Kochi terminal, but that hinges on timely opening of Mangaluru pipeline. Moderating gas consumption in the country amid growing installed re-gasification capacity are likely to weigh on the stock of Petronet LNG,

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India’s largest re-gas terminal operator. With 4% return since the beginning of 2019, the stock has underperformed the BSE Oil and Gas Index, which has gained 10%. India’s gas consumption fell by 1.6% year-on-year to 161 MMSCMD in April 2019, the lowest monthly growth in the past 12 months. Barring city gas distribution and petrochemicals verticals, major gas consuming sectors such as fertiliser, power and other industrial segments reported contraction in demand. The company has attributed the recent volume weakness to refinery shutdowns. It expects higher utilisation of the Kochi terminal to drive up volumes in the current fiscal. A significant recovery in gas offtake would, however, require policy push to start the stuck gas-based power projects in the country. Until that happens, volume growth in the medium term may not match the historical growth. Petronet’s gas volumes had grown by 11.8% annually between FY14 and FY19 while the average growth is expected to be 4% in each of the next four years. The short-term volume growth will hinge upon whether the Kochi-Mangaluru gas pipeline will be commissioned by June 2019 as guided by GAIL in its conference call with analysts after releasing the March 2019 earnings. The stock trades at 13.7 times the projected one-year forward earnings, a 9% discount to its longterm average. Historically, Petronet’s stock has traded at a premium to the state-owned energy stocks due to lower risk of regulatory intervention. However, the valuation gap will depend upon how it deploys the free cash flow.

https://economictimes.indiatimes.com/markets/stocks/news/petronet-in-a-bind-with-capacity-expansion-and-lower-offtake/articleshow/69765010.cms[Edited]

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GAIL offers to assume Konkan LNG’s debt in exchange for stake

State-run gas utility GAIL (India) Ltd has proposed to assume the debt of about ₹4,000 crore of Konkan LNG Pvt. Ltd in lieu of receiving the lenders’ stake in the company for free, said two bankers aware of the discussions.

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The talks are at a nascent stage since the proposal requires an independent valuation of the stakes held by the lenders in Konkan LNG, said the first person cited above. “GAIL has said that it will take over the entire debt of Konkan LNG at a 15-20% discount on the total outstanding, but our equity in the plant should be transferred for free,” the banker said, requesting anonymity. Gail owned 25.5% in unlisted Konkan LNG in March 2018, according to a shareholding document from the registrar of companies (RoC). Another RoC document showed more than 260 million shares were issued to GAIL in August last year. The offer for issue of these shares on rights basis was made to existing shareholders on 24 July 2018. Only GAIL subscribed to 260 million shares, the document showed. An undated shareholding pattern of Konkan LNG, available on its website, showed that GAIL now owns 56.71% of the paid-up share capital. The lenders—IDBI Bank, State Bank of India, ICICI Bank, Canara Bank and IFCI—collectively own 20.62%. Others include NTPC Ltd (14.82%) and Maharashtra State Electricity Board Holding Co. (7.85%). If approved by lenders, GAIL’s stake in Konkan LNG will increase to 77.33%. The demerger of the LNG business of Ratnagiri Gas and Power Pvt. Ltd (RGPPL) into a new company, Konkan LNG, was filed for approval with the National Company Law Tribunal (NCLT) on 23 December, 2016. It was finally approved by the National Company Law Appellate Tribunal (NCLAT) on 11 March, 2018. The debt restructuring proposal of RGPPL included bifurcation of existing loans of ₹9,000 crore into RGPPL and Konkan LNG. About ₹5,000 crore loans to RGPPL was then split into sustainable (₹2,000 crore) and unsustainable debt (₹3,000 crore) with the latter being converted into cumulative redeemable preference shares. The sustainable loan was given a longer repayment term and interest rates cut from 13% to 9%. Meanwhile, Konkan LNG received additional loans of ₹1,200 crore to build the breakwater facility. At present, the LNG facility is not an all-weather terminal since there is no breakwater, because of which, no cargoes are received during the monsoon period. The LNG terminal is designed to supply 2.1 MMTPA of re-gasified LNG to RGPPL and the balance 2.9MMTPA is for re-gasification and transportation to catchment gas markets through a pipeline network.

https://www.livemint.com/companies/news/gail-offers-to-assume-konkan-lng-s-debt-in-exchange-for-stake-1560363568361.html[Edited]

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INTERNATIONAL

Natural Gas / Transnational Pipelines / Others

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

Riyadh is taking steps in its pledge to become a global natural gas player, even though the gas in question is not from Saudi

Arabia and the kingdom will face intense competition in major markets from the likes of the United States, Russia, Australia and Qatar. 

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State oil and gas giant Saudi Aramco and US utility and energy infrastructure firm Sempra Energy signed a preliminary agreement involving a long-term LNG supply deal and a Saudi stake in a US LNG export plant. Saudi Arabia is intent on moving from an economy driven by oil revenues and part of that involves developing the kingdom’s gas potential and buying into foreign assets to become a gas exporter. The Gulf country has reportedly been looking at opportunities in LNG operations in the United States, Russia, Australia and Africa. Economic and political considerations probably tipped the scales in favour of Sempra for Riyadh’s first major gas investment. Saudi Aramco in May walked away from serious negotiations to participate in Russian gas producer Novatek’s Arctic LNG-2 project, with the Saudi firm said to be unhappy with financial terms of the deal and concerned about potential US sanctions risk. As Riyadh tries to weather political blowback from the October killing of Saudi journalist Jamal Khashoggi, further entrenching itself into the US energy landscape through a long-term LNG investment is a geopolitically strategic move. Two years ago, Saudi Aramco became the sole owner of the largest US refinery in Port Arthur, Texas, and it has been planning on building a petrochemicals complex at that site. Riyadh cannot ignore the potential of the American LNG industry. The rapid growth of US shale gas catapulted the United States into the position as the world’s fifth largest LNG exporter in 2018, with the possibility of the Western nation breaking into the top three tier alongside Australia and Qatar soon, if it can tackle infrastructure bottlenecking issues.An independent audit of Saudi Arabia’s energy reserves put the kingdom’s conventional gas reserves at 325.1 trillion cubic feet, though the Gulf country only produces around 14 billion cubic feet per day (Bcf/d) — all of which is consumed domestically. The Saudi government is keen to develop domestic conventional and shale gas, which would free up as much as 400,000 barrels per day of crude for exports that has been dedicated to fuelling Saudi power plants. Saudi Aramco CEO Amin Nasser said the state energy firm would invest $150 billion over the next decade to boost the kingdom’s natural gas production to 23 Bcf/d and to become a natural gas exporter. At the World Economic Forum in January, Nasser emphasised the role that US gas assets could play in reaching that exporter status, saying: “Aramco’s international gas team has been given an open platform to look at [US] gas acquisitions along the whole supply chain. They have been given significant financial firepower — in the billions of dollars.” Nasser announced in February that Saudi Arabia would shoot to export as much as 3 Bcf/d of gas by 2030, supported by development of domestic conventional and unconventional gas resources, with exports available as both piped gas and LNG. In April, he noted: “We are currently in discussion with a lot of partners around the world for growing our international gas position.” Nasser also disclosed that Saudi Aramco’s trading arm had made its first LNG sale from Singapore in March to an Indian buyer. Dipping its toe into the LNG market, Saudi Aramco is expected to target South American and European customers for its Sempra-owned gas, although it wouldn’t be surprising if spare cargo headed to the kingdom during peak summer power demand. Saudi Aramco still has the agreement with Sempra to finalise with the volumes not available for at least four years. To put things in perspective, the 5 MMTPA of supplies that the Saudis will be selling from that arrangement is small potatoes compared to the world’s two largest LNG exporters, Australia and Qatar, which each typically export more than 6 MMT of LNG a month. Saudi Arabia will likely start out as a supplier of incremental gas in Latin America and Europe because it will face stiff competition from larger LNG suppliers that have staked claims in key markets.

https://www.hellenicshippingnews.com/riyadh-is-taking-steps-in-its-pledge-to-become-a-global-natural-gas-player-even-though-the-gas-in-question-is-not-from-saudi/

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Oil, gas and coal markets pummelled by economic slowdown

Energy markets are being battered by spreading concerns that an economic slowdown will hit consumption of oil, natural gas and coal. Oil, the world’s most used fuel, has seen prices fall by 20% from their 2019 peak in late April, 

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with Brent crude oil futures threatening to fall below $60 per barrel for the first time since January. Meanwhile, prices for thermal coal and liquefied natural gas (LNG), mostly used in power generation, have dropped to multi-year lows amid tepid demand. The slumps come amid an economic slowdown and escalating global trade tensions, especially between the United States and China. “Fear of global economic growth slowing,” said Peter Kiernan, lead energy analyst at the Economist Intelligence Unit (EIU), “afflicting the entire energy complex with worries that demand growth will be bearish this year.” Kiernan added that the EIU had downgraded its forecast for global economic growth to 2.6% in 2019, down from 2.7%. At the start of the year, most forecasts for world  growth were still at or above 3%. “Calls in the market foreseeing a global recession have not helped sentiment,” ANZ bank said in a note on Tuesday (June4). “The continued escalation in trade tensions and broad-based fall in manufacturing…suggest that the downside risks to growth are becoming more prominent,” said U.S. bank Morgan Stanley. The economic slowdown has not just scared off financial traders, which have been pulling cash out of energy futures and shifting it into perceived safe-havens like gold. It is also starting to impact physical energy prices as consumers hold back new orders in a sign of a real slowdown on the ground. In China, refiners are holding off placing new orders for crude oil imports in anticipation of lower prices once demand stalls further. And in Asia’s LNG market, spot cargo prices were approaching $4 per MMBtu this week for the first time since April 2016, traders said. Prices are now down by 60% from their 2018 highs. Some analysts said they had already heard of cargoes at prices fixed below that level. “The LNG market wasn’t spared the selling, with some cargoes being sold under $4 per MMBtu,” ANZ bank said on Tuesday.

https://www.hellenicshippingnews.com/oil-gas-and-coal-markets-pummelled-by-economic-slowdown/

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Turkmenistan invites CIS countries to join in TAPI gas pipeline project

Turkmenistan has invited the CIS member-states to participate in the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project,Trendreports referring to the Turkmen government on May 31. 

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During the meeting of the Council of Heads of Government in Ashgabat, Turkmen President Gurbanguly Berdimuhamedov stressed that the work on the TAPI gas pipeline project is being carried out in full swing. “This project opens up the prospects for the interested CIS member-states to participate in it,’ the Turkmen Dovlet Habarlary state news agency reported citing the president as saying, ‘The matter rests in the construction of the related infrastructure, in services and the supply of equipment necessary for the project.” President Berdimuhamedov raised the issue of long-term energy supplies to the eastern and southern regions adjacent to the CIS, namely China, Afghanistan, Pakistan and India. ‘The construction of a gas pipeline from Turkmenistan to China, part of which has been laid through Uzbekistan and Kazakhstan, can be cited as a vivid example,’ he added. The construction of the Turkmen section of TAPI was launched on December 13, 2015, while the construction of the Afghan section commenced in February 2018. Pakistan plans to start the work on its pipeline section this year. The total length of the pipeline, with a capacity of 33 billion cubic meters of gas per year, will be 1,840 kilometers. The length of the Turkmen section will be 205 kilometers. The energy bridge will then pass through the Afghan cities of Herat and Kandahar (816 kilometers), through the cities of Quetta and Multan across Pakistani territory (819 kilometers), and reach the settlement of Fazilka in India. The leader of TAPI Pipeline Company Ltd is Turkmengas, which has the controlling stake and acts as the main financier and project manager. The consortium also includes the Afghan Gas Corporation, Pakistan’s Inter State Gas Systems (Private) Limited and Indian GAIL. Turkmenistan holds one of the leading places in the world and ranks second in the CIS (after Russia) in terms of the gas reserves.

https://menafn.com/1098593557/Turkmenistan-invites-CIS-countries-to-join-in-TAPI-gas-pipeline-project

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Natural gas market trends show summer US prices running flat to year-ago period: NGSA

The US natural gas market is expected to see neutral price pressure this summer compared with last summer, which saw an average price of $2.92/MMBtu, the Natural Gas Supply Association said Thursday, 

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May 30. The NGSA made the prediction in its 2019 Summer Outlook, which forecasts pricing trends based on an analysis of the weather, national economy, consumer demand, production and storage inventories. “Our expectation for flat price pressure is based on a forecast for impressive growth in exported liquefied natural gas (LNG) and very large weekly storage injections, which will place upward pressure on natural gas wholesale prices,” according to NGSA. These bullish factors will be “counterbalanced by cooler summer weather and very high production placing downward pressure” on prices, it added. Citing data from the US National Oceanic and Atmospheric Administration, NGSA predicted summer weather in the continental US will on average be 14% cooler than last summer, but 3% warmer than the 30-year average. Compared with last summer, the total number of cooling degree days (CDDs) is expected to be significantly less than in summer 2018, which is expected to be bearish for demand and prices. For the seven-month summer cooling season of April through October, 1,272 CDDs are predicted for this summer, compared with 1,477 CDDs last summer, NGSA said. Gas demand is projected to reach an all-time summer record this year, according to an independent demand analysis by EVA, which forecasts average summer demand of 82.1 Bcf/d, compared with 79.6 Bcf/d last summer – about a 3% increase. LNG exports are set to account for the largest expected increase in demand this summer. EVA forecasts LNG exports will almost double from 3.3 Bcf/d in summer 2018 to 6.0 Bcf/d in summer 2019, with a number of export projects expected to become fully operational this year. In addition, US pipeline exports to Mexico are expected to increase by just under 1 Bcf/d to 5.5 Bcf/d this summer, NGSA said.

This summer is expected to see a 2% decrease in gas power burn compared with last summer. The cooler summer is forecast to result in a small decrease in demand from the residential/commercial sector too. Some minor growth is, however, forecast for the industrial market. IHS Economics projects industrial growth of just over 1% this summer compared with last summer’s growth of 2.5%, driven in part by manufacturers’ uncertainty around tariffs. NGSA forecasts domestic gas production this summer of 89.4 Bcf/d, compared with last summer’s 82.6 Bcf/d. The national economy is expected to have a neutral impact on gas prices compared with last summer. “GDP is expected to increase by a steady 2.5% compared to the summer of 2018, when GDP expanded by 2.9%,” NGSA said.

https://www.hellenicshippingnews.com/natural-gas-market-trends-show-summer-us-prices-running-flat-to-year-ago-period-ngsa/[Edited]

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Natural gas flaring hits record high in Q1 in U.S. Permian Basin

Natural gas flaring and venting in the top U.S. oil field reached an all-time high in the first quarter of the year due to the lack of pipelines, at a time of increased focus on environmental concerns about methane emissions.

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Producers burned or vented 661 million cubic feet per day (MMCFD) in the Permian Basin of West Texas and eastern New Mexico, the field that has driven the U.S. to record oil production, according to a new report from Rystad Energy. The Permian’s first-quarter flaring and venting level more than doubles the production of the U.S. Gulf of Mexico’s most productive gas facility, Royal Dutch Shell’s Mars-Ursa complex, which produces about 260 to 270 mcfd of gas. A lack of pipelines and pipeline outages drove the first quarter numbers to a new record. “It’s very persistent issue with infrastructure,” said Artem Abramov, head of shale research at Rystad. Natural gas that emerges alongside crude oil is often treated as a byproduct of oil drilling. Crude oil can move by pipe, train or truck, but natural gas can only move by pipeline, and construction has Permian has not kept up with output. The Permian is expected to flare more than 650 MMCFD until the second half of the year when the Gulf Coast Express pipeline comes online, Abramov said. The Gulf Coast Express is designed to transport up to 2 BCF of natural gas and is scheduled begin operations in October. “It will be a temporary solution,” said Abramov. “We don’t have any other major project coming online until late in 2020.” The Bakken shale field in North Dakota also continued to flare a high level in the first quarter, around 500 mcfd, according to Rystad. Together, the two oil fields on a yearly basis are burning and venting more than the gas demand in countries that include Hungary, Israel, Azerbaijan, Colombia and Romania, according to the report. The Bakken “has been a challenge for many years,” Abramov said. “It’s hard to propose new source of gas demand in that area. It’s hard to connect the Bakken to the Gulf Coast, and the Gulf Coast is where” gas demand is growing. Several oil and gas companies have pledged to limit leaks of methane, a potent greenhouse gas, and to reducing flaring and venting.

https://www.hellenicshippingnews.com/natural-gas-flaring-hits-record-high-in-q1-in-u-s-permian-basin/

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China’s ‘game changer’ pipeline reform to supercharge gas demand

China’s looming pipeline reform is poised to spur competition in its natural gas industry, lowering prices and supercharging demand from the world’s top importer in years to come, according to Credit Suisse Group AG.

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The government is creating a national pipeline operator from the assets of its three biggest oil and gas companies. The move – likely to happen before year-end – will break a monopoly that China’s state-owned giants have over downstream users and result in gas prices falling 10% over 2020 and 2021, the bank’s analysts including Horace Tse said in a report. “We do not believe that the market has taken active views on post-reform pricing,” the analysts wrote. “The majority of investors have only focused on asset sales and valuation specific to the pipeline company.” Lower prices will revitalize China’s gas demand in two years, according to Credit Suisse, predicting consumption growth of 13% in 2021. That outlook contrasts with rival Citigroup Inc.’s view that demand expansion in the world’s biggest natural gas importer will hold steady for another three to four years then slow to about 4% after 2022. China’s gas demand has skyrocketed in the past two years amid a state campaign that favors the cleaner-burning fuel over coal. Consumption rose 15% in 2017 and a further 18% last year, but that rate may weaken to 11% this year and 10% in 2020 amid an economic slowdown, Credit Suisse said. Falling prices following the reform will entice higher consumption from industrial users, which make up about 40% of national demand, according to the bank. The national pipeline company will be “a gamer changer,” the analysts wrote. It has major repercussions for China’s natural gas companies. Without direct pipeline control, top producer PetroChina Co. will probably suffer from price declines and market share loss, while Cnooc Ltd. should gain from the easing of infrastructure bottlenecks, Credit Suisse said. The pipeline network will continue to expand based on government plans, which could challenge the already oversupplied domestic liquefied natural gas processing and trucking business. Gas distributors will be winners from better demand and improving margins, the bank said.

https://www.freemalaysiatoday.com/category/business/2019/06/05/chinas-game-changer-pipeline-reform-to-supercharge-gas-demand/

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Gas surges globally as green groups cry foul

2018 was a “golden year” for natural gas with demand surging worldwide, the International Energy Agency (IEA) said Friday (June 7), prompting concern from environmental groups over the climate impact of the world’s new favourite fuel. Demand

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for gas grew 4.6% last year  the fastest rate since 2010  and gas accounted for nearly half of the total increase in worldwide energy consumption, according to the IEA’s annual report on the fuel. The surge in natural gas, which while cleaner than coal remains a fossil fuel that contributes to manmade emissions, was put down to ballooning production in the US and an insatiable demand for alternatives to coal in China. In 2018, natural gas played a major role in a remarkable year for energy,” the IEA’s executive director Fatih Birol said. “Global energy consumption rose at its fastest pace this decade, with natural gas accounting for 45% of the increase, more than any other fuel.” The IEA, the global authority on energy, said that gas had helped play a role in reducing air pollution and limiting the rise of greenhouse gas emissions. But environment and energy sector analysts said the gas boom could have dire effects on Earth’s climate, as scientific warnings of the need to slash fossil fuel use grow ever stronger. When it comes to gas, the IEA horse has blinkers on and is heading straight over the cliff of climate disaster,” Lorne Stockman, senior research analyst at Oil Change International, told AFP. “Gas is not clean, cheap or necessary.”

https://www.thehansindia.com/hans/young-hans/gas-surges-globally-as-green-groups-cry-foul-535967 

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Natural Gas / Transnational Pipelines / Others

Global LNG Development

Natural Gas / LNG Utilization

LNG as a Marine Fuel / Shipping

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

 

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SNAPSHOT: INTERNATIONAL

Global LNG Development

Asian LNG prices higher on oil gains, production curbs in Australia || China buys more LNG, but can't offset the rest of Asia's losses || Falih: Saudi Aramco extends offer to buy stake in Arctic LNG 2 – TASS || US calls ‘false’ the narrative that LNG cannot compete with pipeline gas || Cheniere to build Louisiana Sabine Pass 6 LNG export train || Bulgaria in first U.S. gas deals buys two LNG cargoes|| U.S. first small-scale waterside LNG production facility is operational || First LNG sails from Sempra’s $10bn US export terminal || Shipping of first LNG cargo from Australia's Prelude project is "imminent" – Shell || Gazprom and OMV signed a Memorandum of Understanding on LNG cooperation || PTT sells first LNG cargo to kick-off Singapore gas trading || Largest LNG terminal in Nordics opens || Trade deal could propel U.S. to top of China's LNG supplier list

Asian LNG prices higher on oil gains, production curbs in Australia

Asian spot prices for LNG edged higher this week, tracking higher oil prices and as production curbs in Australia boosted demand, industry sources said. Spot prices for July delivery to Northeast Asia are estimated to be $4.30 to $4.40 per MMBtu, up from $4.25 last week, the sources said. Prices for August delivery are estimated at $4.70 to $4.90 per MMBtu, they added.

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Spot trading for the super-chilled fuel was volatile this week with prices moving quickly from opening to closing of the market within a day, a Singapore-based industry source said. Higher oil prices could also be supporting, as majority of the LNG contracts are priced off Brent crude oil, the sources added.

Brent crude oil prices extended gains on Friday (June 14) following attacks on two oil tankers in the Gulf of Oman that stoked concerns of reduced crude flows of the commodity through one of the world’s key shipping routes. There has been no immediate impact on LNG tankers yet, a shipping source told Reuters. Australia’s Woodside Petroleum bought several cargoes in the spot market as it has extended a planned maintenance at its Pluto LNG plant after technical problems when restarting production, industry sources said. South Korea’s GS Energy also bought a cargo for late July to early August delivery at $4.50 to $4.70 per MMBtu, they added. SK Energy may also be looking for a cargo for the same period, one of them said. Still, the market is well supplied with new LNG exports from Australia and the United States, the sources said. Cheniere Energy Inc said on Thursday the second liquefaction train at its Corpus Christi LNG export terminal in Texas had started producing LNG. Looking at all the terminals under construction, total U.S. LNG export capacity is expected to increase to 7.4 bcfd by the end of 2019 and 10.0 bcfd by the end of 2020, up from 5.7 bcfd now. The first three liquefaction trains at Freeport LNG’s Freeport liquefied natural gas export terminal in Texas are also expected to enter service in September 2019, January 2020 and May 2020, according to a report on Thursday from federal energy regulators. Royal Dutch Shell shipped the long-awaited first cargo of from its massive Prelude floating LNG plant off northwest Australia earlier this week, also adding to the supply.

https://in.reuters.com/article/global-lng/asian-lng-prices-higher-on-oil-gains-production-curbs-in-australia-idINKCN1TF0TQ

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Falih: Saudi Aramco extends offer to buy stake in Arctic LNG 2 – TASS

Saudi Energy Minister Khalid al-Falih said Saudi Aramco had extended its offer to join Russian gas producer Novatek’s Arctic LNG 2 project and that he hoped Novatek would agree to it.

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Saudi Energy Minister Khalid al-Falih said Saudi Aramco had extended its offer to join Russian gas producer Novatek’s Arctic LNG 2 project and that he hoped Novatek would agree to it, TASS news agency reported on Monday (June10). Falih told TASS in an interview Saudi Aramco was also studying Russian energy giants Rosneft and Gazprom’s LNG projects and that Saudi Arabia might be interested in investing in Russian petrochemical company Sibur.

Source: LNG Global/Reuters

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China buys more LNG, but can’t offset the rest of Asia’s losses

Notwithstanding the achievement in shipping the first liquefied natural gas (LNG) cargo from the world’s largest vessel, Prelude owner Royal Dutch Shell probably wishes it was selling its product into better market conditions.

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The Prelude floating LNG vessel – about four soccer fields long – dispatched on Monday its first cargo from its position off northwestern Australia to a customer in Asia, Shell said in a statement on Tuesday (June11). When Prelude was conceived more than a decade ago, Shell would have been confident that Asia was the right market to target for LNG, given the region’s strong energy demand growth and the need for cleaner fuels than coal. The problem for Shell, though, is that Prelude is effectively the last cab off the rank, being the final of eight projects, collectively worth some $200 billion, to come online in Australia in the past five years. Australia has now overtaken Qatar as the world’s largest producer of LNG, and while the long-term prognosis for the super-chilled fuel may still be positive, 2019 is proving a tough year in biggest market Asia. Of the five biggest importers in Asia, only China has seen any growth in demand in the first five months of the year, compared to the same period of 2018. China imported 23.9 MMT of LNG over January to May, up 22.6% on 19.5 MMT from the same months last year, according to vessel-tracking and port data compiled by Refinitiv. It’s worth noting that while this looks like robust growth, it’s about half of the 41% rate China achieved in 2018. The growth story in the world’s second-biggest buyer of LNG was overshadowed by declines almost everywhere else in Asia. Top buyer Japan imported 32.9 MMT in the first five months of the year, down from 36.2 MMT. Third-ranked South Korea bought 16.8 MMT, down from 19.2 MMT. India’s imports slipped slightly to 8.6 MMT from 8.8 MMT, and Taiwan’s fell to 6.6 MMT from 7.3MMT.

Among smaller Asian buyers there was better news, with Pakistan boosting imports to 3.5 MMT from 2.9 MMT, Thailand’s take rising to 2.2 MMT from 1.7 MMT, and Singapore holding purchases steady at 1.4 MMT.

https://uk.reuters.com/article/uk-column-russell-lng-asia/column-china-buys-more-lng-but-cant-offset-the-rest-of-asias-losses-idUKKCN1TE15Z

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US calls ‘false’ the narrative that LNG cannot compete with pipeline gas

US prices of LNG being shipped to Europe will remain competitive with Russian piped gas prices over the long term, US energy secretary Rick Perry said on Wednesday (5 June).

Attending an international political and business conference in Slovenia, Perry also said the United States was committed to helping Ukraine become “economically and otherwise stabilised”,

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following Russia’s annexation of the Crimea region in 2014 and conflict with separatists in the east of the country. “For us not to support Ukraine in every reasonable, feasible way that we can is an irresponsible act… We are not going to allow for anyone to coerce another country, particularly using energy as a weapon. It will not stand.” The United States has strongly criticised Nord Stream 2, a 11 billion euro ($12.4 billion) project to build a gas pipeline from Russia to Germany, which opponents fear will undermine Ukraine’s gas transit revenues and increase the EU’s reliance on Russian gas. On the competitiveness of US LNG prices, Perry told reporters on the sidelines of the conference: “This idea that somehow … LNG can’t compete with pipelined gas is just false.” “The US supply, the US reserves of natural gas are massive. The … pressure downward on price of LNG is going to continue,” he said. “Even if Russia wants to continue to subsidise their gas prices, at some point in time they will run out of gas to subsidise,” he added. Perry also said the United States continued to have the option of imposing sanctions on the Nord Stream 2 project, but declined to elaborate.

US threatens EU companies with sanctions over Nord Steam 2, Turkish Stream

A transatlantic tiff over Europe’s natural gas supply came to the boil on Sunday (13 January), as Donald Trump’s ambassador to Germany threatened firms involved in a pipeline from Russia with sanctions. At stake is a mixture of economic and security interests for … “We think it’s a bad idea to rely on a single source of energy and that’s basically what you get with the Nord Stream 2, and Europe is seeing first hand that Russia will cut your gas off,” he said, adding most EU countries were against the pipeline being finished. Hungarian Foreign Minister Péter Szijjártó told the same conference that infrastructure in Eastern Europe was worse than in the West, limiting connectivity and access to energy sources. “We have very nice plans on the tables, we have very nice promises … about energy ports to be built in the region but heating flats and operating an economy cannot be based on only promises,” Szijjártó added. Last week Bulgaria for the first time imported US LNG, the local press reported. Bulgaria used the Greek LNG terminal Revithoussa near Athens. Reportedly, the price was under the cost of Russian pipeline gas.

Source: LNG Global

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Cheniere to build Louisiana Sabine Pass 6 LNG export train

U.S. liquefied natural gas (LNG) company Cheniere Energy Inc announced it will build the sixth liquefaction train at its Sabine Pass LNG export terminal in Louisiana.

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Cheniere also said it expects to make a positive final investment decision as early as 2020 to add about 9.5 MMTPA of additional liquefaction capacity at its Corpus Christi LNG export terminal in Texas. Natural gas use is growing rapidly around the world as countries, like China, seek to wean their industrial and power sectors off dirtier coal. Cheniere is the biggest supplier of U.S. LNG and also the biggest buyer of gas in the country. Cheniere said it gave Bechtel, the lead contractor building its LNG terminals, notice to proceed with construction of Sabine 6. To fund a portion of Sabine 6 and a third LNG berth at the plant, Cheniere said its Cheniere Energy Partners LP subsidiary entered into 5-year, $1.5 billion senior secured credit facilities with 29 banks and financial institutions. Cheniere said it boosted the run-rate production guidance of its liquefaction trains to 4.7–5.0 MMTPA of LNG, up from 4.4-4.9 MMTPA. That’s equivalent to around 0.7 billion cubic feet per day (bcfd) of natural gas. One billion cubic feet of gas is enough to supply about five million U.S. homes for a day.

Source: LNG Global

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Bulgaria in first U.S. gas deals buys two LNG cargoes

Bulgaria has agreed to buy U.S. natural gas for the first time, signing a deal for a delivery in the second quarter and another in the third, the country’s energy minister said on Friday, May 31. Dutch-registered trader Kolmar NL will deliver a 90 MMSCM cargo of LNG and a second of 50 MMSCM.

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“The ship carrying LNG from the United States has arrived at the Greek Revithoussa LNG terminal,” Energy Minister Temenuzhka Petkova said. “This is yet another step towards liberalisation of the gas market and a clear sign of diversification.” The first LNG shipment is from U.S. producer Cheniere and the second one from the U.S. unit of British Petroleum, she said. Sofia at present buys almost all of its gas from Russia via one route. It pledged to diversify after a 2009 dispute with Moscow disrupted winter supplies. It is set to begin receiving mainly Azeri gas via a 182 km interconnector link with Greece expected to be ready by the end of 2020 with an initial annual capacity of three billion cubic metres.

https://www.hellenicshippingnews.com/bulgaria-in-first-u-s-gas-deals-buys-two-lng-cargoes/

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U.S. first small-scale waterside LNG production facility is operational

JAX LNG, an LNG facility located at Dames Point in Jacksonville, Florida, held a ribbon-cutting ceremony May 16 to signify the official start-up of the newly constructed plant. JAX LNG is the first small-scale LNG facility in the United States with both marine and truck-loading capabilities.

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The state-of-the-art facility was constructed through a joint venture between Pivotal LNG and NorthStar Midstream. In addition to marine and trucking companies, the JAX LNG plant is positioned to serve other industries, including rail, drilling, mining, power generation, commercial and industrial. Currently, the JAX LNG facility has the capacity to produce 120,000 gallons of LNG per day and store more than 2 million gallons of LNG. There is room at the site to expand the facility and add two liquefaction trains and a second storage tank which would increase LNG production capacity to 600,000 gallons per day and store up to 4 million gallons.  JAX LNG can use its advantaged location on the water to service its maritime customers via LNG transport vessels. NorthStar is owned by Oaktree Capital Management, L.P.  Jared Parker, co-portfolio manager of Oaktree’s Infrastructure Investing strategy stated, “We believe LNG is the logical fuel choice for ships calling on ports in the United States. We are excited to be developing the infrastructure necessary to make this option available for the transportation needs of companies focused on emission reductions and meeting IMO 2020 requirements.” Tim Casey, senior vice president of LNG, commented, “NorthStar and our owners are excited about the partnership we have with Pivotal LNG and Southern Companies in JAX LNG.  We look forward to expanding our ability to bring environmentally-friendly LNG as a next generation fuel to the market”.JAX LNG is also the long-term supplier of LNG to the world’s first LNG dual-fuel container ships, the Isla Bella and Perla del Caribe, operated by TOTE Maritime Puerto Rico.

http://www.ngvjournal.com/s1-news/c7-lng-h2-blends/u-s-first-small-scale-waterside-lng-production-facility-is-operational/[Edited]

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First LNG sails from Sempra’s $10bn US export terminal

The first cargo of liquefied natural gas has sailed from Sempra Energy’s $10bn terminal in Louisiana, helping to cement America’s position as one of the biggest global suppliers of the fuel.

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The tanker Marvel Crane departed the Cameron LNG site, according to vessel-tracking data compiled by Bloomberg. Though it’s not clear where the cargo will land, the tanker is currently chartered by Mitsui & Co, a partner in the Cameron terminal. The facility is the fourth to send super-chilled US shale gas overseas, with about a dozen other projects vying to be part of the next wave of the nation’s LNG exporters. Sempra is adding new supply to the global market just as prices crater and a trade tussle between the US and China intensifies. Though President Donald Trump visited Cameron on May 14 to tout the terminal as an example of US energy dominance, the dispute between the world’s two largest economies threatens the viability of proposals for similar facilities. Still, the startup of new export projects is helping the US to compete for a bigger slice of the world’s LNG trade. With America’s gas production reaching a record this year amid the shale boom, exports have become a vital relief valve for output of the heating and power-plant fuel. China said on May 13 it will raise tariffs on US supplies of the super-chilled fuel to 25% from 10% beginning June 1, in retaliation for Washington increasing duties on Chinese goods. Companies including NextDecade Corp, Tellurian Inc and Liquefied Natural Gas Ltd are seeking billions of dollars worth of investment to construct new terminals.

San Diego-based Sempra has a 50.2% stake in the Cameron terminal. Its partners on the project include Mitsui, Mitsubishi Corp, Total SA and Nippon Yusen Kabushiki Kaisha.

https://www.gulf-times.com/story/633131/First-LNG-sails-from-Sempra-s-10bn-US-export-termi

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Shipping of first LNG cargo from Australia’s Prelude project is “imminent” – Shell

Shipment of the first LNG cargo from the long-awaited Prelude floating production project in Australia is “imminent”, Royal Dutch Shell said. Prelude –

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the world’s biggest floating LNG production unit and the biggest maritime vessel ever built – is expected to have an annual LNG production capacity of 3.6 MMT. It will also produce 1.3 MMTPA of condensate and 400,000 tonnes a year of liquefied petroleum gas (LPG). The start-up of LNG production from Prelude would correspond with new project start-ups in the United States and would further saturate the tumbling global LNG market with oversupply. Shell, owns 67.5 percent of the Prelude FLNG project, did not elaborate on how quickly the project would ramp up production, however. The company first decided to go ahead with the project in 2011. After long delays, it introduced gas to the 490 metre-long (1,600 ft-long) Prelude FLNG for the first time a year ago as part of the cooling process before start-up. Shell had hoped to start generating cash flow from Prelude in 2018. It exported the first condensate cargo in March this year. Japan’s Inpex Corp, Taiwan’s CPC Corp and Korea Gas Corp hold the rest of the shares in the Prelude project.

Source: LNG Global

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Gazprom and OMV signed a Memorandum of Understanding on LNG cooperation

Yesterday, at the “St. Petersburg International Economic Forum 2019”, Alexey Miller, Chairman of the Gazprom Management Committee, and Rainer Seele, Chairman of the Executive Board of OMV, signed a Memorandum of Understanding for cooperation on Liquefied Natural Gas (LNG).

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The two companies had previously agreed that Gazprom will supply 1.2 billion cubic meters of LNG to OMV in 2020. On this basis, both partners have now agreed to continue the cooperation beyond the year 2020, including the sale and purchase of conventional and small-scale LNG cargo. In addition, both companies intend to explore options for the joint development of small-scale LNG infrastructure projects. “We have been receiving reliable gas supplies from Russia for more than 50 years. Now we are extending our cooperation to LNG. This will contribute to the diversification of sources of supply and help us safeguard security of supply in Europe,” said Rainer Seele, Chairman of the Executive Board of OMV.

https://www.hellenicshippingnews.com/gazprom-and-omv-signed-a-memorandum-of-understanding-on-lng-cooperation/

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PTT sells first LNG cargo to kick-off Singapore gas trading

The trading arm of Thailand’s state energy firm PTT has sold the company’s first liquefied natural gas (LNG) cargo, a company executive told Reuters on Friday, in yet another sign that LNG is increasingly becoming commoditised and traded.

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The cargo was sourced from an unnamed supplier by PTT International Trading – the trading arm of PTT that is based in Singapore – and is scheduled to be delivered into India in June, the source said, declining to elaborate on details of the deal. This is the first LNG cargo transacted by PTT International Trading and first sale of the super-chilled fuel by the PTT group, which is typically a buyer and started importing LNG for Thai domestic use in 2011, the source said. e source declined to be named as he was not authorised to speak with media. Thailand is in the midst of liberalising its power sector to boost competition in the domestic market. The southeast Asian country relies mainly on natural gas to generate power but domestic supply is falling behind consumption, requiring the country to import more LNG. PTT set up an LNG trading desk in its Singapore trading office in February and is in the process of optimising its LNG-related assets, including the use of its Map Ta Phut import terminal at Rayong in Thailand with a capacity of 11.5 million tonnes per year, the source said. PTT is currently the country’s sole gas supplier and its only LNG importer, but state-run Electricity Generating Authority of Thailand is expected to start imports later this year. PTT has just begun construction on a second LNG terminal with a capacity of 7.5 million tonnes a year that is expected to be ready by 2022, the source said. PTT’s Singapore office has about 70 staff, who trade in oil and other commodities.

https://www.hellenicshippingnews.com/ptt-sells-first-lng-cargo-to-kick-off-singapore-gas-trading/

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Largest LNG terminal in Nordics opens

The biggest LNG terminal in the Nordic countries opened in Tornio, Northern Finland on Tuesday (June11). Besides Finland, the terminal serves customers in Northern Sweden.

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The facility at Tornio’s Roytta harbour includes a 50,000 cbm storage tank, and facilities for refueling ships and vaporizing LNG. The Tornio terminal was developed as a joint effort by several companies of the Northern Finland industrial cluster, including the steel companies Outokumpu and SSAB, EVP Energy and the gas energy distributor Gasum. Outokumpu steel has invested in recent years 30 million euros for a shift to using LNG in its Tornio facility instead of propane, local media has reported. The Outokumpu steel plant in Tornio will be largest user of the new terminal. The SSAB steel plant in Raahe, about 200 kilometers south of Tornio, is another major user. Kimmo Rahkamo, Vice President in charge of natural gas and LNG at Gasum, said on Tuesday “the terminal significantly supports the emission goals of Finland, as well as the entire Nordics”. He said that building this distribution infrastructure will make it easier for also new operators to start using LNG. Rahkamo underlined that in the future the same gas infrastructure can be shift to the use of liquefied biogas (LBG). Tornio is located at the Northern end of the Gulf of Bothnia that separates Finland and Sweden. So far the only LNG facility along the Gulf was in Pori, 600 kilometers down from Tornio, with a capacity of 30,000 cbm.

http://www.xinhuanet.com/english/2019-06/12/c_138134754.htm

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Trade deal could propel U.S. to top of China’s LNG supplier list

Here’s another reason for Presidents Donald Trump and Xi Jinping to seal a swift trade deal: it could put the U.S. on track to become China’s biggest supplier of liquefied natural gas, according to Morgan Stanley.

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A pact this year between the world’s two largest economies — the bank’s base case — will likely lead to large Chinese purchases of American LNG, which would help shrink the U.S. trade deficit, it said in a report. This would help boost the U.S. share of China’s gas imports by 2025 to 21%, compared with 5% without a deal, Morgan Stanley said. It was only 2% last year. “A higher LNG trade from the U.S. to China would potentially be a win-win deal for both,” analysts including Andy Meng wrote. Not only could it reduce the U.S. trade deficit with China by $17 billion annually, it might also help China save $1.8 billion a year in energy costs, the bank estimates. There may also be major implications for the global LNG market. The U.S. is bringing on new projects and is set to become the No. 1 supplier. All that production needs to find a home, and China is expected to take the title as top importer some time early next decade. Without a deal, it is likely to turn to other countries including Russia, Australia and the Middle East to fulfill its gas demand, Morgan Stanley said. China’s imports of American gas have dropped since Beijing slapped a 10% duty on the fuel in September in a series of tit-for-tat tariffs. Pressure has mounted after the duty was raised to 25% from June as a deal remained elusive. Trump is seeking a meeting with Xi at the upcoming Group of 20 summit in Japan, threatening to raise tariffs on China again if it doesn’t happen. A “no deal” scenario would be negative for long-term U.S. natural gas prices, as well as for projects seeking final investment decisions. The ongoing trade war has caused Chinese buyers to avoid investing in U.S. developments or signing long-term offtake agreements. It would also push China to buy more gas from existing suppliers, with Russia’s Gazprom PJSC and Woodside Petroleum Ltd. in Australia seen as key beneficiaries. While there is still sufficient supply under this scenario, the cost of imports would likely be higher than U.S. LNG, the bank said.

Source: LNG Global/Bloomberg

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SNAPSHOT: INTERNATIONAL

Natural Gas / LNG Utilization

Mexico: 120 Hyundai CNG buses start operations in Baja California || Scania brings the first Euro 6 natural gas trucks to Mexico || Encouraging scenario for NGV range and refueling network in Europe || Agility embraces clean fuel vehicles for its own transportation fleet || Community of Madrid: public transit goes greener with new CNG bus fleet

Mexico: 120 Hyundai CNG buses start operations in Baja California

The 120 Hyundai buses (100 Super Aero City & 20 County) powered by natural gas, which arrived at the port of Ensenada last February and were delivered symbolically during AltFuels Mexico 2019, were recently put into operation. 

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The vehicles are operated by the transport company Traxión and will transfer daily more than 9,200 workers to six Hyundai plants located in Tijuana and Rosarito. The launch took place in Playas de Rosarito, with the presence of authorities from the government of Baja California, Hyundai Engineering Mexico, Hyundai Translead, NeoHyundai and Grupo Traxión. With an investment of almost 18 million dollars and a strong commitment to sustainability, the new fleet will reduce 87% of carbon monoxide and non-methane hydrocarbon emissions, 41% of nitrogen oxide and 85% of methane. In addition, the emission of smoke is eliminated by 100% and the noise pollution is reduced by 70%. Tijuana and Rosarito were chosen for the start-up of these buses due to the growth they have registered so far this year and the projection of economic development, according to the National Chamber of Commerce (Canaco).

http://www.ngvjournal.com/s1-news/c3-vehicles/traxion-puts-into-operation-120-hyundai-cng-buses-in-baja-california/

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Scania brings the first Euro 6 natural gas trucks to Mexico

Scania brought to Mexico the first trucks manufactured with compressed natural gas technology that meet with Euro 6 regulations. Natural gas is one of the bets of the Swedish brand to reduce the effects of pollution in the country, considering that this fuel reduces up to 99% the emission of particulate material (PM10), main factor affecting public health.

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Four R410 A6X2NA trucks make up this first wave of technology, safety and sustainability, two of them are already confirmed to be delivered to one of the main cargo transportation companies in the Bajío and the country, whose commitment is also to reduce the environmental impact in the transport sector through this cutting-edge technology. “As an industry we must be committed to offer alternative solutions to reduce the impact on the environment, today more than ever we must look to the future, our planet does not have a second chance. In Scania we are ready and we want to offer the best technology for the benefit of society, a technology that is economically viable and environmentally correct,” commented Enrique Enrich, General Director of Scania Mexico. With the introduction of these new trucks to the Mexican market, Scania strengthens its commitment and leadership towards the transformation of a sustainable transportation system.

http://www.ngvjournal.com/s1-news/c3-vehicles/scania-brings-the-first-euro-6-natural-gas-trucks-to-mexico/

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Encouraging scenario for NGV range and refueling network in Europe

Hans Peter Schützinger, CEO of Porsche Holding Salzburg and Rainer Seele, OMV Chairman of the Executive Board and CEO, gave a joint press conference at the OMV headquarter in which they focused on the role natural gas can play in future energy, as well as the significance of CNG for mobility.

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Together, OMV and Porsche Holding are offering a special deal for those considering a CNG vehicle: if you buy a CNG model under one of the Volkswagen brands VW, Audi, SEAT or Skoda, you can fill up with CNG for free at OMV filling stations for the entire first year. Opting for gas in passenger transport brings with it significant savings. Up to 23% less CO2, 75% less NOx and a 98% fall in particulate emissions – these are all powerful environmental arguments in favor of CNG vehicles. A comprehensive network of 160 CNG filling stations (of which 54 OMV) in Austria, fast fueling times, running-cost reductions of up to 50% and a wide range of models are all adding to the appeal of CNG vehicles. In addition, OMV is investing up to EUR 10 million in the CNG network, with plans to upgrade the existing dispensers and expand the network on the basis of customer needs. Rainer Seele said: “Gas holds huge potential; it is an all-rounder, which makes it a trailblazer for an environmentally sound energy future that is safe and secure. I’m delighted to be able to promote the issue of CNG together with Porsche-Holding. In the mobility sector, the use of gas is a clear choice for cutting CO2, NOx and particulate emissions, as well as providing numerous other benefits for our customers.” The Volkswagen Group offers a range of different CNG models under the brands Volkswagen, Volkswagen Commercial Vehicles, Audi, SEAT and SKODA. From compact to spacious, affordable to extravagant, there’s something for everyone. CNG models at a glance: VW up! CNG, VW Polo TGI, VW Golf TGI Blue Motion, VW Golf Variant TGI Blue Motion, VW Caddy TGI Blue Motion, VW Caddy Maxi TGI Blue Motion, Audi A3 Sportback g-tron, Audi A5 Sportback g-tron, SEAT Ibiza TGI, SEAT Arona TGI, SEAT Leon 1.5 TGI, SEAT Leon ST 1.5 TGI and SKODA OCTAVIA Combi G-TEC. Hans Peter Schützinger added: “The immediate availability has made CNG into a crucial building block of the Volkswagen Group’s overall strategy for the environmental mobility of the future. CNG also wins out in terms of economic feasibility and we offer a broad range of options. We appreciate having OMV as a strong partner who will secure reliable CNG supply long-term.”

http://www.ngvjournal.com/s1-news/c1-markets/encouraging-scenario-for-ngv-range-and-refueling-infrastructure-in-europe/

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Agility embraces clean fuel vehicles for its own transportation fleet

In support of their vision of clean air everywhere through sustainable transportation solutions, Agility, is a global leader in pharmaceutical and life sciences logistics, is taking steps to adopt sustainable solutions for its own internal transportation needs. Agility will soon be utilizing its own CNG-powered Class 8 truck to haul cylinders, systems and parts between its Salisbury,

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North Carolina, Lincoln, Nebraska, and Fontana, California locations. Agility is also requesting its supply chain partners to prioritize clean fuels when hauling products on its behalf. In addition, Agility is also taking steps to keep the air clean while moving its people. The company will be leasing a zero-emission hydrogen vehicle for use by visitors to its Costa Mesa headquarters office. Agility operates an internal fleet of medium-duty service and delivery trucks that run on LPG, and since 2013, Agility’s Lincoln facility has owned a CNG-powered SUV for local transportation needs. These efforts, when fully implemented, will reduce Agility’s carbon footprint by almost 2.3 million pounds (1.04 metrics tons) of carbon dioxide equivalents each year, which is the equivalent of removing 220 passenger cars from the road. Agility’s first-year goal is to have all vehicles in place and to have 10% of internal transportation needs satisfied by clean fuels, which will reduce Agility’s carbon footprint by approximately 225,000 pounds of carbon dioxide. “Thanks to the creativity and energy of many members of the Agility team, we’re making real strides to reduce emissions in our operations,” said Seung Baik, President of Agility. “This is another good step that furthers our commitment to minimize waste and pollution, and to be good stewards of our planet.”

http://www.ngvjournal.com/s1-news/c3-vehicles/agility-embraces-clean-fuel-vehicles-for-its-own-transportation-fleet/

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Community of Madrid: public transit goes greener with new CNG bus fleet

Empresa Martín S.A., owned by Grupo Ruiz and one of the main public transport companies in the Community of Madrid, has launched 10 natural gas buses, with Castrosua Magnus.E bodywork and Scania K-280 UB 4×2 chassis. With this addition,

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80% of Empresa Martín’s fleet (of a total of 114 buses) is powered by CNG, with an average age of 4.8 years. The 13-meter buses are low entry and have 39 seats, a space for wheelchairs and capacity for 33 people standing. In addition, all of them have the following features: double manual and electric ramp, electronic line signs, hot/cold air conditioning, USB chargers for mobile devices, next stop visual and acoustic information, non-slip floor, interior and exterior lighting by LEDS, SAE equipment and interior cameras, among others. With these new natural gas vehicles, Empresa Martín, S.A, seeks to continue being at the forefront of new technologies and the use of environmentally friendly and less polluting fuels. In this highly positive scenario for sustainable mobility, where more and more public transport fleets add vehicles powered by natural gas, AltFuels Iberia 2019 will take place on 11-14 June at IFEMA Trade Center, Madrid. The event will feature companies, organizations and experts from all over the world that will analyze the present and future of the industry and will exhibit the latest technology in alternative fuels for road and maritime transport. For more information, please contact info@altfuelsiberia.com.

http://www.ngvjournal.com/s1-news/c3-vehicles/community-of-madrid-public-transport-goes-greener-with-new-cng-bus-fleet/

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SNAPSHOT: INTERNATIONAL

LNG as a Marine Fuel / Shipping

LNG a growing force in large vessel orders || Bio-LNG bunkering services now available in the Port of Gothenburg || Dynagas in talks for $250m refinancing || Qatargas completes largest ever multi-port delivery of single LNG cargo in industry first

LNG a growing force in large vessel orders

At DNV GL’s Nor-Shipping press flash, Martin Wold, head of the Alternative Fuels Insight (AFI) platform at DNV GL – Maritime, presented the latest AFI figures. Looking at the data, 

 

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Wold said that exponential growth in installed LNG tank capacity pointed to a potential boom in LNG for larger vessels over the coming years. Is shipping at a turning point in terms of its fuel mix? AFI head Martin Wold suggested that the rapid growth in installed LNG tank capacity could mark the start of a new era in ship fuel. “There are now 163 LNG-fuelled ships in operation and a further 155 ships on order,” he said. “Order intake for LNG-fuelled vessels has remained steady for several years now at around 40 ships per year. However, in 2019 we have already passed 40 new orders in the first five months, which could be a sign that the pace for LNG fuel investments is picking up.” “Perhaps more interestingly,” he continued, “the AFI platform shows that installed LNG tank volume will more than triple from around 100 000 m3 today to the end of 2020. This represents large tanks in large vessels, propelled by the introduction of LNG fuel in the cruise, container and tanker segments. The 2020 ‘sulphur cap’ seems to have accelerated LNG adoption, especially for larger ships, which could be good news for the industry, increasing fuel availability and improving asset utilisation.”

The number of vessels with scrubbers stood at 3553, said Wold, but this could be higher as some manufacturers did not report orders on a regular basis. “The boom of 2018 seems to have levelled off somewhat, but new orders keep coming in. There are more than 2000 installations reported to be completed in 2019, which would mean by the start date of the ‘sulphur cap’ almost 3000 scrubber vessels will be in operation,” he said. “However, due to the complexity of scrubber retrofits, we expect that not all of these vessels will be on the water by 2020.” The AFI platform covers LNG, LPG and methanol, as well as emission reducing technologies such as scrubbers and batteries. With interactive maps and data visualisations, it is easy for users to see where infrastructure already exists or will shortly be developed, alongside the growing alternative fuelled fleet. Advanced tools let users dig deeper into the data to analyse trends and screen the feasibility of their alternative fuel projects based on CAPEX, OPEX, and fuel prices. Most content is free to access.

https://www.lngindustry.com/liquid-natural-gas/07062019/lng-a-growing-force-in-large-vessel-orders/

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Bio-LNG bunkering services now available in the Port of Gothenburg

Bunkering bio-LNG at the Port of Gothenburg has become significantly easier for the shipping sector, since new agreement between FordonsGas and Swedegas will ensure access to this renewable fuel. Shipping needs to make the transition from oil to environmentally smart alternatives.

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LNG is currently the cleanest marine fuel available due to lower emissions of CO2, SOx, NOx and particulates. With liquid biogas climate benefits will increase even further with the addition of net-zero carbon emissions. Since autumn 2018 there has been a permanent bunkering facility for LNG at the Port of Gothenburg, owned and operated by Swedegas. From the outset, both LNG and bio-LNG could be bunkered there. The facility offers open access to all suppliers looking to provide the shipping sector with the opportunity to bunker LNG. Under the new agreement with Swedegas, FordonsGas will supply bio-LNG to the recently opened facility. FordonsGas, part of the Air Liquide Group, is the only producer of bio-LNG in Sweden. “We deliver solutions for sustainable mobility and we are looking forward to being part of the investment in bio-LNG for the maritime sector. Making it available to shipping is a natural development for us, and through the agreement with Swedegas we have made a firm, long-term commitment,” said Emil Glimåker, Director Nordic Countries, Air Liquide Advanced Business & Technology.

http://www.ngvjournal.com/s1-news/c7-lng-h2-blends/swedegas-fordonsgas-sign-agreement-to-bring-bio-lng-to-gothenburg/[Edited]

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Dynagas in talks for $250m refinancing

Dynagas LNG Partners, a Greece based LNG maritime transportation company, is currently in talks with financial institutions for the refinancing of its 6.25% $250m senior notes, which are due on October 30, the company revealed in its latest financial report.

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According to Tony Lauritzen, chief executive officer of Dynagas LNG Partners, the company is in an advanced stage with commercial banks and other capital sources for a potential financing transaction which may provide funding for the payment due on the maturity date of its 2019 notes and/or term loan. Currently Dynagas LNG Partners’ fleet of six LNG carriers have all been contracted on charters to international gas producers with an average remaining duration of 9.3 years. “We believe in the positive long term fundamentals of the LNG shipping industry as the production of LNG continues to grow and natural gas continues to gain market share as a reliable, abundant, price competitive and relatively cleaner energy resource,” Lauritzen said. “We are looking forward to concluding our above-mentioned refinancing and thereafter, focusing on new projects in the future,” Lauritzen added. Dynagas LNG Partners reported a net income of $1.9m for the first quarter down by 60.4% from net income of $4.8m in the same period of 2018.

https://splash247.com/dynagas-in-talks-for-250m-refinancing/

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Qatargas completes largest ever multi-port delivery of single LNG cargo in industry first

Doha – In an industry first, Qatargas Operating Company (Qatargas) has successfully completed the largest ever multi-port delivery of a single cargo of liquefied natural gas (LNG).

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This achievement, which saw a Q-Max vessel safely discharge LNG at two terminals in Spain, is testament to the company’s commitment to leading the LNG industry in terms of operational flexibility and supply chain efficiency. “Qatargas continues to deliver innovative solutions which provide greater efficiency, flexibility and optimisation of resources. This multi-port delivery further demonstrates our commitment to maintaining our position as the world’s premier LNG company,” said its chief executive Khalid bin Khalifa al-Thani. The established practice in the LNG industry is to deliver a single cargo of LNG to a single location. Qatargas’ pioneering achievement was made possible by using the largest class of LNG vessel in the world, a Q-Max vessel, which has a cargo carrying capacity of 266,000 cubic metres. This allows a Q-Max to deliver two full conventional size cargoes on one vessel. Qatargas loaded the cargo at the Ras Laffan terminal in Qatar on the Q-Max LNG vessel ‘Mekaines’ on May 12. The two cargo ‘parcels’ were delivered to the Barcelona and Cartagena LNG terminals in Spain on May 30 and June 1 respectively. Advancements such as multi-port delivery on Q-Max vessels, coupled with a global reputation for safe and reliable operations, reinforce Qatargas’ position as the premier LNG supplier of choice in an ever-competitive and evolving market, its spokesman said.

https://www.gulf-times.com/story/633210/Qatargas-completes-largest-ever-multi-port-deliver

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SNAPSHOT: INTERNATIONAL

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

Toyota and Eni join forces to promote hydrogen mobility in Italy || Cleanest fleet in Seattle’s history has nearly 100 biogas garbage trucks || Indian Railways use bio-fuel trains on the World environment day || New H2Bus Consortium will boost zero-emission public transportation

Toyota and Eni join forces to promote hydrogen mobility in Italy

On the last stage of the Giro d’Italia bike race, where eight hydrogen Toyota Mirai cars were used as support vehicles for event organization, Toyota Motor Italia and Eni announced their collaboration to speed up the spread of hydrogen mobility.

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The first phase of the project involves opening a hydrogen refueling point at Eni’s new service station in San Donato Milanese. Eni is awaiting permissions to start work on the site. If this project is successful, Eni will make hydrogen available at other stations in its network in the next few years. The multi-purpose station, that integrates seamlessly with the architecture of the new Eni Management Headquarters, currently under construction, will sell premium petroleum products, along with advanced fuels like biomethane, hydrogen and electricity, thus enabling cars refueling here to make a substantial contribution to reducing CO2 emissions. Furthermore, the zero emission hydrogen available at the station will be produced with renewable energy by the station itself through electrolysis of water. Toyota will take part in the project, providing its expertise and putting a fleet of ten Mirai cars on the road that will refuel at the Eni station. The users will be chosen in the coming months.

http://www.ngvjournal.com/s1-news/c7-lng-h2-blends/toyota-and-eni-join-forces-to-promote-hydrogen-mobility-in-italy/[Edited]

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Cleanest fleet in Seattle’s history has nearly 100 biogas garbage trucks

The launch of Seattle’s new green fleet of recycling, compost and garbage trucks is underway, further advancing the city’s steady commitment to clean air and world-class sustainability leadership. Now serving Seattle neighborhoods and businesses,

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the cleanest fleet in the city’s history includes 101 Waste Management vehicles powered by either renewable natural gas or by electricity. The new Waste Management fleet includes:

  • 91 collection trucks equipped with the new Cummins Westport ISL G Near Zero engine and powered by renewable natural gas. The heavy-duty engine is the cleanest ever certified by the California Air Resources Board and the Environmental Protection Agency. Biomethane is better for the environment because it is not a fossil fuel and it generates dramatically lower emissions – 70% lower than traditional diesel and 65% lower than CNG.  Waste Management uses underground vacuum systems to collect the biogas so it can be cleaned and loaded into pipeline infrastructure, similar to how electricity is loaded to the power grid for transmission across the country.
  • Eight Nissan Leaf electric support vehicles for use by WM route managers and bilingual recycling educators assigned to help Seattle residents and businesses reduce waste.
  • Two battery-electric Class 6 box trucks, the WM Think Green Seattle Street Crew, which will be on the job soon to keep downtown alleys clean and provide special collection services.

The new fleet and enhanced services are the result of a new contract between Seattle Public Utilities and Waste Management. WM provides service to residents and businesses in approximately 60% of the city.

http://www.ngvjournal.com/s1-news/c3-vehicles/cleanest-fleet-in-seattles-history-includes-nearly-100-biomethane-garbage-trucks/

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Indian Railways use bio-fuel trains on the World environment day

The western railway started trains using bio-diesel as fuel in the areas where the work of electrification is not done and trains run on diesel. On this Environment day, the western railway contributed in their own way by running trains on bio-fuel.

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The western railway started trains using bio-diesel as fuel in the areas where the work of electrification is not done and trains run on diesel. A train from Ahmedabad to Bhuj, Rajkot to Morbi and Bhavnagar to Surendrangar ran with bio-diesel fuel on Wednesday on the occasion on Environment day. Bio-diesel is made from Jatropha plant, the extract liquid from this plant is mixed with diesel. The railway has this kind of mixing plant in Vatva and Sabarmati of Ahmedabad. The bio diesel is supplied in all the divisions of Gujarat from these two mixing plants. According to railway officials, the railways ran Bandra-Bhuj train on bio-diesel engine from Ahmedabad to Bhuj. The Rajkot-Morbi DEMU train started running on bio diesel from Wednesday (June5), it’s a first train of Rajkot division to run on bio diesel. This will reduce the air pollution and it’s cheaper than diesel, and also this fuel doesn’t affect the capacity of the engine.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/railways-use-bio-fuel-trains-on-the-world-environment-day/69670182

 

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New H2Bus Consortium will boost zero-emission public transportation

Hexagon Composites, together with other leading hydrogen players, announced the establishment of the H2Bus Consortium. The members of the consortium are committed to deploying 1,000 hydrogen fuel cell buses along with supporting infrastructure in

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European cities at commercially competitive rates. The full realization of this project is expected to culminate in the largest hydrogen bus order till date. Hexagon’s business areas Agility Fuel Solutions and Hexagon Purus will provide hydrogen fuel solutions to bus OEMs, for use in public transport fleets as well as high capacity trailers for distribution of hydrogen. This ground-breaking hydrogen fuel cell bus solution will be the most cost-effective truly zero-emission option available, with a single-decker bus price below €375,000 after funding, a hydrogen price between €5 and €7 per kilogram and a service cost of €0.30 per kilometer. “This project showcases our technology leadership and capability to offer hydrogen storage systems to support public transport agencies in reaching their sustainability goals,” said Rick Rashilla, Senior Vice President, Hydrogen Automotive of Hexagon Purus. “Together with our partners we are committed to deploying the most cost effective, truly zero-emission option available.” The first phase of the project, totaling 600 buses, is supported by €40 million from EU’s Connecting European Facilities (CEF1) program. The funding will enable the deployment of 200 hydrogen fuel cell buses respectively in each of Denmark, Latvia and the UK by 2023. “For decades, we have supplied CNG fuel systems to European and North American bus manufacturers in various commercial vehicle applications. We’re pleased to apply our experience and capabilities to deliver hydrogen fuel systems into a project of significant magnitude,” said Seung Baik, President of Agility Fuel Solutions. “Where public transport fleets have requirements for long driving range, we believe there is significant potential for hydrogen to play a key role in the zero-emission mobility future.”

http://www.ngvjournal.com/s1-news/c7-lng-h2-blends/new-h2bus-consortium-seeks-to-drive-zero-emission-public-transportation/

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