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

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City Gas Distribution & Auto LPG

Maruti Suzuki achieves 26% improved fuel economy with new ‘WagonR S-CNG’

To further strengthen its green technology footprint in India, Maruti Suzuki India Limited has launched the new WagonRS(Smart)-CNG. The CNG powered WagonR will be available in the Lxi variant of the 1.0 litre engine offering best-in-class mileage of 33.54km/kg. The technology delivers 26% better fuel economy than the previous version.

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The WagonR S-CNG comes with factory fitted CNG, ensuring enhanced safety, maximum performance, unmatched convenience and a robust design. The factory fitted vehicle comes with standard warranty benefits and convenience of Maruti Suzuki’s service network spread across India.The new WagonR now comes with S-CNG technology that ensures high performance with dual ECU and intelligent-Gas Port Injection technology. This technology delivers calibrated quantity of fuel to the engine, leading to more efficient fuel usage, active pickup and superior drivability. The smart packaging of CNG cylinder brings better spare tire accessibility. The lower CNG tank position leads to better vehicle dynamics.Maruti Suzuki CNG vehicle sales contribute to around 15% of the total sales of the CNG range. The company presently offers CNG option in seven of its models: Alto800, AltoK10, WagonR, Celerio, Eeco, Super Carry and Tour S. Cumulatively over half a million customers have selected Maruti Suzuki factory-fitted CNG vehicles.Maruti Suzuki WagonR S-CNG will be available in states with CNG infrastructure including Delhi-NCR, Gujarat, Mumbai, Pune, parts of Andhra Pradesh, Uttar Pradesh and Madhya Pradesh.The factory fitted WagonR S-CNG will be available at Rs. 4.84 lakh (USD 6,907) for Lxi and Rs. 4.89 Lakh ($6,978) for Lxi (O) variants respectively. Both prices are ex-showroom Delhi.

http://www.ngvglobal.com/blog/maruti-suzuki-achieves-26-improved-fuel-economy-with-new-wagonr-s-cng-0308

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Flouting of norms blamed for CNG vehicle fires

Rampant flouting of standard norms for CNG kits and its purchase from unauthorised dealers are the two of the many reasons that make CNG vehicles dangerous to drive, a Delhi Transport Department Officer said.

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Special Commissioner of Delhi Transport Department (Operations) K.K. Dahiya was referring to the tragic incident in which a mother and her two little daughters were charred to death, when their CNG-fitted car burst into flames in East Delhi.The mishap was the second this year, after a CNG auto exploded in South Delhi’s Sadiq Nagar on February 22 killing its driver.Speaking to IANS about incidents of blasts in CNG-driven vehicles, he highlighted the predilection of vehicle owners to cut corners by getting shoddy CNG kits installed through unauthorised dealers in Meerut and Ghaziabad in UP and Gurugram in Haryana.In Delhi, such untested and, thus unapproved, kits are procured from vendors in the Mayapuri scrap market and Kashmiri Gate.Filling stations are instructed not to fill CNG in vehicles with expired cylinder plates, but some in Delhi, UP and Haryana flout this rule for money,” Dhawan said.Dahiya added some owners even manage to get updated cylinder plates, illegally for Rs 100-200.”Cars nowadays are manufactured with 50 per cent metal and 50 per cent synthetic fibre, rubber and other inflammable materials, which only contribute to the spread of fire,” Dahiya said.”The CNG gas is not inflammable and does not ignite itself. It is a light gas. It only flames up only when you direct it to fire,” he said.

http://www.daijiworld.com/news/newsDisplay.aspx?newsID=569378

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GAIL Gas to invest Rs 1,200 crore for Seraikela-Khersawan PNG supply

Gail Gas Limited, a 100% subsidiary of GAIL, announced investment of Rs 1,200 crore in adjoining Seraikela-Kharswan district for construction of a network to provide piped natural gas to 2.20 lakh households and building 41 CNG stations within the next eight years.

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GAIL said the first phase of the project is likely to start in the first quarter of 2020 and will cater to the needs of industrial plants, commercial buildings, transport sector and households covering an area of 2,657 sq km. The network of 600 inch km will be laid in the district under the City Gas Distribution Project and will benefit the 10.65 lakh population in urban and suburban areas.Informing that GAIL Gas has bagged the licence for operation in four districts of Giridih, Dhanbad, West Singhbhum and Seraikela-Kharswan for a period of 25 years, Gautam said in West Singhbhum, an area of 7,224 km will be covered with five CNG stations and approximately 6,028 households will be connected with piped natural gas in the first phase. An investment of Rs 350 crore will be made on building networking system in the mineral rich district. He further said GAIL Gas will invest Rs 2,000 crore in the four identified districts by 2027 for establishing pipeline network and will give direct employment to 400 qualified youths.

https://timesofindia.indiatimes.com/city/ranchi/gail-to-invest-rs-1200-crore-for-seraikela-khersawan-png-supply/articleshow/68309498.cms

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City’s wait for piped gas just got longer with tribunal’s split verdict

The Appellate Tribunal for Electricity (APTEL) has ordered a status quo on the bids for city piped gas distribution (CGD) network awarded last year in Chennai, Tiruvallur, Kancheepuram and Puducherry districts.The award of bids was challenged by two firms 

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Adani Gas Limited and IMC Ltd  on the grounds of criteria used. A two-member bench of the APTEL delivered a split verdict on the case and referred it to a third judge for deciding.“As there is divergent views/opinion on merits of the appeal, the status quo order shall continue till the reference is decided by the third member,” Justice ManjulaChellur, Chairperson, APTEL, and B.N. Talukdar, Technical Member, APTEL, said in their order.Adani Gas Limited and IMC Ltd, who were also the bidders, challenged the award citing discrepancy in one of the criteria pertaining to the number of domestic piped gas connections (PNG).Both firms pointed out in their appeal that the Petroleum and Natural Gas Regulatory Board had determined the lower limit of PNG connections to be 2% of the total households (Census 2011 data) and the maximum limit to be 100% of the total households (Census 2011 data) with clarifications that anything beyond 100% may be treated as an unreasonable quote. However, they said the winning bidders quoted the number of PNG connections in excess of 100% of household as per the 2011 Census and wanted the award to be quashed.

https://www.thehindu.com/news/cities/chennai/citys-wait-for-piped-gas-just-got-longer-with-tribunals-split-verdict/article26461227.ece

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Threat of electric vehicles looms for Indraprastha Gas

The government’s efforts to fight the pollution problem in Delhi have helped city gas distributor Indraprastha Gas Ltd (IGL) in the past. However, this time around, things could well turn out to be different. On Saturday( March2), the Delhi cabinet approved the addition of 1,000 electric buses, an environment-friendly mode of public transport for residents.This poses a risk to IGL’s compressed natural gas (CNG) business, the hitherto champion for fighting pollution.

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If the move towards electric vehicles gains momentum, the company’s mainstay business can be hit.Overall, CNG volumes account for almost three-fourths of IGL’s total sales volume. The good news is the impact is expected to be limited in the near term. That’s because addition of government buses has been rather muted for a while now. Perhaps, that’s why the company’s shares haven’t reflected any of the above-mentioned concerns.But developments on this front will be a key area to monitor in the future, because there can be a rub-off effect. As Jefferies India points out, if the implementation of the first phase involving the addition of 1,000 electric buses in Delhi is successful, and issues around charging infrastructure and vehicle economics are resolved, it could pave the way for the next wave of electric vehicle addition, potentially spreading into other segments such as private buses and autorickshaws.Recently, IGL won licences in three geographical areas in the 10th round of bidding for city gas distribution. These areas are expected to support the company’s long-term growth story. In general, investors would do well to wait for more clarity on capital expenditure details and volume expectations for these new licence areas.Operationally, IGL has delivered double-digit growth in volumes continuously for some time now. The December quarter was no different with volume growth at 12.2%, wherein CNG volumes grew slightly faster than the company average. PNG (piped natural gas) volumes increased at a slower pace.Investors seem to expect the good run on volumes to continue going ahead, which is evident in the company’s valuations. Currently, the IGL stock trades at 21 times estimated earnings for FY20, based on Bloomberg consensus earnings data.

https://www.livemint.com/market/mark-to-market/threat-of-electric-vehicles-looms-for-indraprastha-gas-1551824385472.html

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AG&P plans to invest Rs 10,000 crore in India city gas

Atlantic Gulf & Pacific Co of Manila Inc (AG&P) plans to invest ₹10,000 crore in its city gas business in India over eight years. The company is confident of meeting the steep targets it had promised: to win 12 city gas distribution licences, the highest by a foreign bidder.In the recent tenth round that offered 50 licences,

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AG&P shared the top slot with Indian Oil and Hindustan Petroleum Corp, each winning nine geographical areas. Eleven of the 12 geographical areas for which AG&P has licences— it won three in the ninth round last year are in the four southern states, and their proximity to each other as well as to current and proposed liquefied natural gas (LNG) terminals in the region will facilitate easy and cheaper sourcing of gas for customers, said PPG Sarma, managing director for CGD and logistics at AG&P. Sarma, credited with building GSPC Gas’ vast city networks as CEO, said that the experience would come in handy in launching AG&P’s services.It’s planning a floating LNG storage unit in Puducherry by the end of next year and may also tap Petronet’s LNG terminal in Kerala and that of Indian Oil in Tamil Nadu.The government provides cheaper domestic gas for use by households and vehicles but industrial and commercial users pay market rates. Its ability to import LNG and control over import infrastructure can thus give AG&P the advantage.AG&P plans to haul LNG via tankers from import terminals to planned satellite terminals in its licence areas to quickly launch CNG services without waiting for pipelines to be built. State-run GAIL operates a satellite LNG station in Bhubaneswar to serve customers in the absence of a pipeline.The Philippines company plans to launch a few CNG stations by the end of this year and piped gas services by next year-end, Sarma said. AG&P is confident of meeting its target of connecting 12 million households, building 1,500 CNG stations and laying 17,000 inch-kilometres of steel pipeline over eight years, he said, allaying apprehension that the company had been over-ambitious in its bids for licences.

https://economictimes.indiatimes.com/industry/energy/oil-gas/agp-plans-to-invest-rs-10000-crore-in-india-city-gas/articleshow/68248583.cms

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Shell seen selling Mahanagar Gas stake in exit from gas supply business

Shell India, the local arm of Netherlands-based Royal Dutch Shell Plc, may finally exit the city gas distribution business by selling its 10% stake in Mahanagar Gas Ltd, said two officials aware of the development, requesting anonymity.In 2016, Shell took over BG Group Plc and, subsequently, acquired its assets worldwide.“Shell plans to sell its stake in MGL and exit the city gas distribution. It wants to focus on other businesses in India.

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The company may sell its stake in Mahanagar Gas after July 2019, as the lock-in-period ends,” said the first official quoted above.Guidelines of capital markets regulator Securities and Exchange Board of India (Sebi) stipulate minimum promoters’ contribution shall be locked-in for three years from the date of allotment in a public issue.“Shell India does not respond to market speculation,” the company said in an emailed response. Mahanagar Gas did not reply to queries sent on 27 February.Last week, Ajay Shah, vice-president, Shell Energy Asia, on a call after the company issued its LNG Outlook said: “We think there are more opportunities in India, but we have to be smart about where and how we invest. City gas distribution is part of the value chain, but I think we recognize that this may not be the best use of our capital and our brain power.”We think other entities are often better placed for city gas distribution. That does not mean to say that we would not look at investment here at all, but we would like to be a supplier of gas to those city gas networks.”“Shell may exit the city gas distribution business as part of its ongoing portfolio optimization to transform it into a simpler company and focus on its other businesses which deliver stronger returns,” said the second official.

https://www.livemint.com/industry/energy/shell-seen-selling-mahanagar-gas-stake-in-exit-from-gas-supply-business-1551648754620.html

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Regulator rejects Adani Gas’ application for CNG retailing in Jaipur, Udaipur

Oil regulator PNGRB has rejected Adani Gas Ltd’s application for authorisation to retail CNG to automobiles and piped natural gas to households in Jaipur and Udaipur, saying the company was not in compliance with regulations for a licence.In a 23-page order, the Petroleum and

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Natural Gas Board (PNGRB) on February 28 gave detailed reasons for rejecting Adani Gas Ltd’s (AGL) claim of having ‘deemed authorisation’ to operate a city gas distribution (CGD) network in the two cities before the regulator came into existence.”Based on the analysis and deliberations of the Board after hearing and considering the submissions of AGL and keeping in mind the observations/directions of the Supreme Court of India, the application of AGL for Jaipur and Udaipur cities for CGD authorisation is hereby rejected,” it said.Adani Gas had, in response to a November 2005 invitation of Rajasthan government, bid for setting up the city gas distribution (CGD) network in Udaipur and Jaipur.The state government on March 20, 2006 gave a no objection certificate, subject to certain conditions, to the company for retailing CNG and piped natural gas in Udaipur and Jaipur. Adani Gas in the same month deposited the commitment fee of Rs 2 crore.Subsequent to this, the central government in October 2007 appointed PNGRB as the regulator for the sector. Soon after, PNGRB sought application from companies operating CGD networks before its appointment as the regulator.PNGRB on March 31, 2008 issued a notice to Adani Gas stating “it did not have the requisite authorisation from the central government,” the order said, adding the company submitted separate applications for authorisation for Jaipur and Udaipur to the regulator on August 28, 2008.On May 18, 2011, the Rajasthan government withdrew the NOC given to Adani Gas. Subsequently on May 19, 2011, PNGRB rejected Adani Gas’ application for both the cities.The company challenged the decision of PNGRB before Rajasthan High Court which dismissed its petition. It then filed an appeal before the Supreme Court.”Supreme Court vide order dated January 29, 2019 quashed the order dated May 19, 2011 passed by the Board and directed the Board to take a fresh decision in the matter within four weeks,” the order said.In compliance with the Supreme Court order, PNGRB held personal hearing with Adani Gas representatives.The company contended that “it was entitled to be granted authorisation by the Board in view of the provision of ‘deemed authorisation’ as contained in Section 16 of the (PNGRB) Act” for entities operating before the regulator came into existence.In its order, PNGRB said Adani Gas meets the minimum eligibility criteria but did not comply with the requirement of making committed investments and physical progress in rollout of CGD network in both the cities. Also, it had not tied up gas for supply through the CGD networks.”The conclusion of the Board is that Adani Gas is in non-compliance with a substantial part of the criteria,” it said.On the company’s claim of having made substantial investment in the two cities, PNGRB said “no documentary evidence has been presented by Adani Gas to show the mammoth expenditure it has supposedly incurred on the project.”

https://www.moneycontrol.com/news/business/companies/oil-regulator-pngrb-rejects-adani-gas-application-for-cng-retailing-in-jaipur-udaipur-3602871.html

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IGL to supply piped cooking gas, CNG in three UP districts

The three geographical areas were bid out under the recently held 10th round of CGD bidding conducted by the Petroleum and Natural Gas Regulatory Board. City gas distributor, Indraprastha Gas Ltd (IGL),

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today announced it has received the Letter of Intent from the downstream petroleum regulator to lay city gas distribution (CGD) network in the districts of Fatehpur, Hamirpur and the unauthorised areas of Kanpur in Uttar Pradesh.The three geographical areas were bid out under the recently held 10th round of CGD bidding conducted by the Petroleum and Natural Gas Regulatory Board.Commenting on the development, IGL’s Managing Director E S Ranganathan said that the company plans to set up seven CNG stations and provide PNG connections to 14,400 households in the next two years across the geographical area. “Along with domestic kitchens, IGL would also be providing gas connections to industries and commercial establishments like hotels, restaurants, and hospitals in the region,” he said.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/igl-to-supply-piped-cooking-gas-cng-in-three-up-districts/68287640

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Confidence Petroleum commissions eight LPG dispensing stations

Confidence Petroleum India (CPIL) has completed and got License of eight more Auto LPG Dispensing Stations (Gas Stations) and taken their total number from 178 stations to 186 Stations – Maharashtra –1, Tamil Nadu –5, Karnataka – 2 Total 8.With these 8 new locations, the strength of the company’s ALDS stations has reached to 186.

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The company is marching ahead to achieve its target of 200 Auto LPG Stations by the end of March 31, 2019.Confidence Petroleum is an India-based manufacturer of liquefied petroleum gas (LPG) cylinders for domestic, as well as commercial use. The Company is engaged in the sale of cylinder, LPG bottling, and filling/DPT/transport.

Source: Indian Oil & Gas

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Do CNG vehicles cause pollution? HC asks Delhi govt

The Delhi High Court has asked the AAP government whether CNG vehicles contribute to the air pollution in the national capital. A bench of Chief Justice Rajendra Menon and Justice A J Bhambani posed the query to the Delhi government while hearing a PIL petition by an NGO

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which has claimed that rise in vehicle-generated air pollution in Delhi was due to “non-enforcement and non-implementation” of the 1988 Motor Vehicle Act. The court in its recent order has given four weeks to Delhi government to file an updated status report “particularly with reference to pollution, if any, caused by the CNG vehicles and the result of the same”. With the direction, the bench listed the plea by NGO Campaign for People Participation in Development Planning for further hearing on July 29. The NGO’s plea was filed in February 2016 when the second phase of the odd-even scheme of road rationing was announced by the Delhi government, alleging that the government has “maliciously misdirected themselves” to cut the number of vehicles on road instead of enforcing pollution control rules. It has contended that due to the “continued failure” of the Centre and Delhi government to enforce the Motor Vehicle Act, vehicle generated air pollution level has gravely risen in past years, endangering health of the people of the national capital.

https://www.thehansindia.com/news/national/do-cng-vehicles-cause-pollution-hc-asks-delhi-govt-512139

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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

FAME II Scheme announced by Finance Minister Arun Jaitley

The scheme announced by Finance Minister onFebruary 28, to incentivize the manufacture of electric vehicles. The FAME Scheme started in 2015 providing incentives up to Rs 22,000 two-wheeler, Rs 61,000 for three-wheeler and Rs 1,87,000 for four-wheeler.

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The Cabinet Committee of Economic Affairs (CCEA) has approved aRs 10,000 crore package for the second phase of Faster Adoption & Manufacturing of Electric (and hybrid) vehicles (FAME) scheme.Union Finance Minister ArunJaitley said that second package will continue for three years till 31st March, 2022.

Scheme Highlights

  • To support 10 lakh electric two-wheeler, 5 lakh electric three-wheeler, 55,000 electric four-wheeler and 7,000 buses;
  • To establish charging infrastructures connecting major city clusters, where stations will be available at every 25 km on both sides of the road;
  • Electrification of the public transportation that includes shared transport;
  • Demand Incentives on operational expenditure mode, for electric buses will be delivered through State/city transport corporation (STUs);
  • In three-wheeler and four-wheeler segment incentives will be applicable mainly to vehicles used for public transport or registered for commercial purposes.
  • In the two-wheeler segment, the focus will be on the private vehicles.
  • To encourage advance technologies, the benefits of incentives, will be extended to only those vehicles which are fitted with advance battery-Lithium Ion battery and other new technology batteries;
  • Establishment of 2700 charging infrastructure in metros, other million plus cities, smart cities and cities of Hilly states across the country, at least one charging station in a grid of 3 km x 3 km should be available.

Source: electricvehicles.in

 

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Time to usher in the EV revolution

A combination of subsidies, infrastructure and industry support is needed to popularise battery electric vehicles. The air quality in our cities is deteriorating at an alarming rate.

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Today, 14 out of the 15 most polluted cities in the world are in India. Left unchecked, we are staring not only at severe health costs but also losing highly skilled work force to migration abroad.Transportation is an outsized contributor to this situation, if not the sole one. Battery electric vehicles (BEVs) are an integral part solution to this problem, which justifies strong public support for their adoption. However, despite generous tax subsidies, and other forms of support, adoption is not occurring at the pace and scale needed to have a meaningful impact on oil imports and urban air quality. Also, subsidies have proven unsustainable even for the wealthy countries (e.g. Norway). Nevertheless, there is reason for optimism. The basic point here is that policymakers should recognise some new realities, and tweak our policies to take full advantage of such facts.Two recent economic developments justify an even more aggressive but a smarter policy agenda. First, is the dramatic reductions in the global cost of battery storage. The last decade has witnessed a six-fold reduction in the international price of Li-ion storage batteries (about $1000 per kilowatt hour (kWh) in 2010 to about $170 per kWh in 2018).This has substantially mitigated the disadvantage of BEVs in terms of upfront cost and propelled them ahead of other zero emissions technologies, the most notable being hydrogen fuel-cells. Indeed, BEVs cause pollution during power generation, and during battery production and disposal. It is, therefore, imperative we decarbonise electricity and ensure the batteries are environmentally sustainable.Second, is the fall in cost of solar and wind electricity as evidenced in the prices discovered in repeated auctions by the Solar Energy Corporation of India.

https://www.thehindubusinessline.com/todays-paper/tp-opinion/article26403183.ece

 

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Ola Electric raises Rs 400 Cr funding from Matrix India

Ola Electric Mobility Pvt Ltd, Bangaluru based company raised Rs. 400 crores in a funding round led by several of Ola’s early investors including Tiger Global and Matrix India.Ola Electric Mobility established to enable Ola’s electric mobility pilot programme in Nagpur. 

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This investment came after Ola announced its plan for bringing up 1 million electric vehicles to Indian roads by 2022.“Ola Electric is currently running several pilot programmes to deploy electric vehicles and charging solutions, including battery swapping stations and electric two-wheeler and three-wheeler services, among others,” said the company.Anand Shah, head of Ola Electric Mobility said, “The first problem to solve in electric mobility is charging: users need a dependable, convenient, and affordable replacement for the petrol pump,” “By making electric easy for commercial vehicles that deliver a disproportionate share of kilometers traveled, we can jump-start the electric vehicle revolution.”The company has already partnered with several original equipment manufacturers (OEMs) and battery manufacturers and wants to work closely with the automotive industry. It is planning to develop a network of shared EVs came from a dream of Soft-Bank CEO Masayoshi Son, said in 2017 that he would gift 1 million electric cars to India through Ola in an event.Ola is looking for its own kit for the electrification of three-wheelers but it is getting delayed. It had appointed ChinamNetajiPatro from Bajaj Auto, as its senior director of electric vehicles to handle the project but he left the company last year in November.

 

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Natural Gas / Pipelines/ Company News

India seen raising domestic natural gas price over three-year high: BQ Survey

India is expected to hike prices of domestic natural gas for the fourth time in a row, according to a survey conducted by BloombergQuint, in what will boost the earnings of the fuel’s producers.

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The government may increase the price to $3.74 per MMBtu for six months starting April 1, the highest in more than three years, an average of 15 estimates from analysts, companies and agencies compiled by BloombergQuint showed. The rates of the locally produced gas are revised every six months according to the pricing formula. Oil and Natural Gas Corporation Ltd. and Oil India Ltd. produce and sell nearly 83% of India’s total gas, while the remaining 17% comes from private producers like Reliance Industries Ltd., Vedanta Ltd. and Hindustan Oil Exploration Ltd., among others. A higher gas rate will increase ONGC and Oil India’s per share earnings by 7 percent and 9 percent, respectively, according to BloombergQuint’s calculation, assuming everything other than their gas selling rate remains same. The rise in prices of natural gas will increase the cost of manufacturing urea and petrochemicals where the fuel is used as a feedstock. Also, the prices of compressed and piped natural gas will go up. The price hike will put pressure on the margin of the power sector and sponge iron makers where it’s used to generate energy.

https://www.bloombergquint.com/business/india-seen-raising-domestic-natural-gas-price-to-over-three-year-high-bq-survey#gs.0tc1kv

 

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Tariff to be raised by 37% for Reliance pipeline

Oil regulator PNGRB has approved a 37% rise in tariff from April 1 for the pipeline that transports Reliance Industries’ eastern offshore KG-D6 gas to customers.

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“Transporting natural gas on the East West pipeline would cost Rs 71.66 per million British thermal unit (mBtu) on gross calorific value (GCV) basis from April 1 as compared to Rs 52.33 per mBtu tariff charged for April 1, 2009, to March 31, 2019, period,” the Petroleum and Natural Gas Regulatory Board said in its order. The tariff approved is almost half of the tariff sought by East West Pipeline. It had sought the tariff to be raised to Rs 151.84 per mBtu with effect from April 1, 2018. The oil ministry has estimated domestic gas production to go up to 71.9 MMSCMD by 2021-22 because of various policy measures to attract investment in the country’s sedimentary basins. There has been an increased emphasis on pipeline laying and shift to a gas-based economy, with bidding for piped natural gas and CNG stations.

https://www.telegraphindia.com/business/tariff-raised-by-37-for-reliance-pipeline/cid/1686781[Edited]

 

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GAIL chosen for Vedanta’s Barmer gas output buy

The Centre has nominated state-run GAIL to buy the gas output from Vedanta’s prolific Barmer block, which has recently begun pumping the energy resource after accounting for a fourth of India’s domestic crude oil production.The block, which would produce up to 4 MMSCMD, must sell the output to an entity chosen by the government.

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The production sharing contract for the Barmer block gives the producer pricing freedom but not marketing freedom.A long-drawn negotiation between GAIL and Vedanta hasn’t yet yielded an agreement, underscoring how hard it can be to settle on a rate in the absence of a widely acceptable domestic-market benchmark.People familiar with the negotiations said there was a yawning expectation gap between the two parties as the seller has been demanding a rate equal to that of imported liquefied natural gas (LNG), while the buyer favours the domestic formula price or a reasonable margin on top of the cost of production. For producers and buyers, there are at least five gas price reference points in the country.A domestic formula price of $3.36 per MMBtu applies to most gas produced in the country. Then there are the following: The maximum rate of $7.67 for gas from difficult fields, prices discovered in limited auctions for gas that is difficult to extract, imported LNG rates, and economically viable rates submitted in field development plans (FDP) by producers.In their FDPs submitted to the upstream regulator, producers mention the price at which developing a field would be viable. These prices are rarely publicized and so are less likely to become the basis of negotiations between a producer and buyer.The right comparison would be between well-head prices in India and overseas, and not with imported LNG since import involves heavy additional cost of liquefaction, transport and regasification, executives at gas consumers say. Natural gas spot rate at the Henry hub was $3.11per MMBtu for January, slightly less than the local formula price.

https://economictimes.indiatimes.com/industry/energy/oil-gas/gail-chosen-for-vedantas-barmer-gas-output-buy/articleshow/68261308.cms

 

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Prospects of gas find in West Bengal

It is good news for West Bengal that natural gas has been found in the Raniganj area and the Essar Group of Industries is prospecting for exploration.

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The company’s preliminary estimate is that there is a reserve of at least 1.5 trillion cubic feet (tct) of recoverable shale gas at the Raniganj block. The exploration and extraction of the gas will demand invest of $ 1 billion. Shale gas can be used not only for power generation but also as cooking gas for domestic use. If the gas can be successfully prospected it will be quite possible to supply this gas to urban areas like Kolkata in pipes for domestic use. There is also the possibility of setting up downstream industries based on shale gas.One advantage of the shale gas is that unlike greenhouse gases and coal, it is not as much climate-polluting. The Essar Oil and Gas Production Limited has said that depending on the result of its initial prospecting, it will spend around Rs. 7000 crore for boring 200 to 250 wells. It hopes to produce, in the beginning, 1.7 MMSCMD of gas, which will go up to 2.5 MMSCMD gradually. Then there is another project. The State Government-owned Greater Calcutta Gas Supply Corporation is tying up with the Gas Authority of India Ltd (GAIL) to set up a new company – Bengal Gas Ltd. The gas extracted is proposed to be brought to Kolkata in tankers and distributed.If these two projects fructify, industrial growth in West Bengal is expected to get a tremendous boost. It will create employment generation in a big way, requiring both skilled labour and engineers and technicians.

http://echoofindia.com/editorial/prospects-gas-find-west-bengal-144420[Edited]

 

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Policy Matters/Gas Pricing/Others

Closure notice to 550 Morbi ceramic units – NGT order

Nearly half of all units at India’s largest ceramic cluster, in Morbi and Wankaner, were issued closure notices by the Gujarat Pollution Control Board (GPCB) on Saturday, following the National Green Tribunal order that all units running on coal gasifiers be shut down.

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As many as 550 of the 1,000-odd manufacturing units in the cluster are facing closure as they run on coal gasifiers. The notice, issued by GPCB’s Morbi unit head D M Taker, warns that punitive measures will be taken if units fail to switch to LNG/PNG in seven days. NGT’s Delhi bench ordered that coal gasifiers be dismantled and directed ceramics units to switch to LNG/PNG if they wanted to continue operations. This measure to curb pollution is likely to disrupt production in the Rs 40,000-crore industry. The NGT issued these directions in response to a petition by a Palanpur resident, BabubhaiSaini.The closure notice warns that if any unit fails to comply with the NGT directions, strict action will be taken without any any chance of a hearing. GPCB also cautioned that prosecution under Section 41(2) of the Water Act, 1974 and Section 37 of the Air Act,1981, will be initiated against non-compliant units, and could result in imprisonment for up to one year and six months.

https://timesofindia.indiatimes.com/city/ahmedabad/closure-notice-to-550-morbi-ceramic-units/articleshow/68340400.cms

 

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Oil & gas policy overhaul: Govt. not to seek share of profit on output from less-explored areas

In a major overhaul of oil and gas exploration permits, the government will not charge any share of profit on hydrocarbons produced from less-explored areas as it looks to attract the private and foreign investment to raise domestic output.

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Breaking from the two-and-a-half decade-old practice of having a uniform contractual regime for all sedimentary basins in the country, the new policy provides for different rules for areas that already have producing fields and ones where commercial production of oil and gas is yet to be established.Irrespective of the basins, producers will get complete marketing and pricing freedom for oil and gas in future bid rounds, said an official notification detailing rule changes approved by the Cabinet last month. Oil and gas acreage or blocks in all future bid rounds will be awarded primarily on the basis of exploration work commitment, it said.While companies will have to pay a share of revenue from oil and gas produced in Category-I sedimentary basins such as Krishna Godavari, Mumbai Offshore, Rajasthan or Assam where commercial production has already been established, they will be charged only prevalent royalty rates on oil and natural gas in the less-explored Category-II and III basins.“To expedite production, concessional royalty rates will be applicable if production is commenced within four years for onland and shallow water blocks, and five years for deep water and ultra-deepwater blocks from the effective date of the contract,” it said.

https://www.thehindubusinessline.com/economy/oil-gas-policy-overhaul-govt-not-to-seek-share-of-profit-on-output-from-less-explored-areas/article26502049.ece[Edited]

 

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SNAPSHOT: NATIONAL

LNG Development and Shipping

Shipping Ministry frames norms for setting up LNG FSRU at major port trusts

The shipping ministry has issued guidelines for setting up Floating Storage Regasification Units (FSRU) for handling Liquefied Natural Gas (LNG) cargo at major port trusts.Land license model will be followed under a single stage e-tendering for implementing FSRUs with private funds wherein the bid reserve price will be the water area charges set as per the land policy prevailing at a particular port.

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The entity quoting the highest premium above the reserve price to be paid to the port will win the contract, typically for 30 years.The total licence rental for the licence period is to be paid upfront, the shipping ministry said in a March 7 circular.The FSRU project will not be bound by any minimum guaranteed throughput (MGT) till five years after Commercial operations Date (CoD). Thereafter, 30% of the project capacity will be prescribed as MGT.The licence agreement could be terminated for defaulting on MGT for three consecutive years. However, the licensee may be given an option to continue with the project by paying wharfage for the shortfall in MGT.The scope of an FSRU project includes discharge of LNG, its re-gasification, storage for the required period and supply/transportation through pipeline / smaller vessels/ bunkering vessels/ trucks to the importer.The FSRU operator will also be allowed to handle own LNG – it can buy LNG, handle it and sell at market determined rates.The operator will have to pay port dues, berth hire, pilotage and wharfage to the port trust at prevalent scale of rates as is currently followed in the case of single point mooring (SPM) or single buoy mooring (SBM).For transporting LNG through barges, vessel related charges pertaining to barges has to be paid to the port trust.Since, an FSRU project typically costs around ₹500 crore (excluding vessel cost), the operator has to submit bank guarantee equal to 10 per cent of the project cost (subject to a maximum of ₹50 crore) as performance security to ensure timely commissioning of the project.The performance security shall be forfeited by the FSRU operator if the project is not completed within two years or extended period – not exceeding six months- as approved by the port.

https://www.thehindubusinessline.com/economy/logistics/shipping-ministry-frames-norms-for-setting-up-lng-fsru-at-major-port-trusts/article26501601.ece

 

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PM inaugurates IOC’s Ennore LNG terminal

Prime Minister NarendraModi dedicated to the nation Indian Oil Corp’s Rs 5,150 crore LNG import terminal at Ennore in Tamil Nadu.IOC through its joint venture company, IndianOil LNG Pvt Ltd set up the 5 MMTPA capacity LNG import terminal at Kamarajar Port, Ennore, the company said in a statement.

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The Ennore terminal is the first LNG terminal on the east coast in South India that will serve customers in the southern and eastern region.The Ennore LNG Terminal project and associated pipeline infrastructure projects cumulatively account for investments of about Rs 9,000 crore.”In order to supply natural gas to various consumers, IOC is laying a 1244-km pipeline for evacuation of gas from Ennore terminal. The pipeline from Ennore terminal will be passing through Manali-Thiruvallur-Puducherry-Nagapattinam-Madurai-Trichy-Tuticorin-Ramnathpuram and a separate line will go to Bengaluru via Hosur,” it said.Imported gas at the terminal will meet fuel requirement Chennai Petroleum Corp Ltd, Madras Fertilisers Ltd, Tamil Nadu Petroproducts and Manali Petrochemicals Ltd.Also, natural gas from Ennore LNG Terminal would also cater to the fuel requirements of the industries in Tamil Nadu and parts of Karnataka and Andhra Pradesh.

https://timesofindia.indiatimes.com/business/india-business/pm-inaugurates-iocs-ennore-lng-terminal/articleshow/68291173.cms

 

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Qatargas supplies commissioning LNG cargo to India’s Ennore terminal

Qatargas has supplied a commissioning liquefied natural gas (LNG) cargo for India’s newest LNG receiving terminal, Ennore, near the southern Indian city of Chennai.The commissioning cargo was delivered onboard the vessel ‘

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Golar Snow’ on February 25 by the Swiss commodity trader, Gunvor, to the state-owned Indian Oil Corporation (IOC), which owns and operates the 5MMTPA terminal. Qatargas sold the cargo free-on-board (FOB) basis to Gunvor.The import facility – at Kamarajar port in Thiruvallur district at the outskirts of Chennai – is owned by IndianOil LNG, a joint venture of IOC, private equity fund IDFC Alternatives and ICICI Bank, according to IndianOil LNG’s website.Ennore will be India’s fifth operational LNG terminal and the first LNG terminal on the East Coast of India. Once fully commissioned, it will provide regasified LNG to anchor customers, including Chennai Petroleum Corporation, Madras Fertilisers and Manali Petrochemicals.Since the first production in 1996, Qatargas has delivered cargos to 31 countries and also operates the Jetty Boil-Off Gas facility, Al Khaleej Gas, two Helium Plants, the two Laffan Refineries (among the largest condensate refineries in the world), and the RasLaffan Terminal.

https://www.gulf-times.com/story/623833/Qatargas-supplies-commissioning-LNG-cargo-to-India 

 

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GAIL evaluating buying stake in Adani’s east coast LNG terminal

GAIL has sold about 70% of US LNG in deals with terms extending up to 20 years to Indian buyers, and the rest to global firms in deal terms extending to up to five years.

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The chairman of India’s GAIL said on Wednesday, February 27, the company was evaluating buying a stake in the Adani Group’s proposed 5 MMTPADhamra liquefied natural gas (LNG) terminal on India’s eastern coast.GAIL has 20-year deals to buy 5.8 MMTPA of U.S. LNG, split between Dominion Energy’s Cove Point plant and Cheniere Energy’s Sabine Pass site.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/gail-evaluating-buying-stake-in-adanis-east-coast-lng-terminal/68198519

 

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India’s Gail CEO calls for more flexibility in U.S. LNG contracts

Gail India called on U.S. liquefied natural gas (LNG) producers to offer more flexibility contract terms as the state-owned gas distribution gas company hunts for supplies from the middle of the next decade. India last year was the fifth largest importer of U.S. LNG and natural gas is projected to double its share of the nation’s energy mix by 2030 as oil-fired power plants convert.

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Shri B.C. Tripathi, chairman and managing director of Gail India, said on Wednesday at the CERAWeek energy conference his company is in discussions with U.S. gas exporters to acquire new LNG supplies from 2024-2025. “Traditional suppliers like Qatar or Russia have shown a lot of flexibility in recent past where they have modified their contracts, re-negotiated their contracts, aligned them to the market,” Tripathi said in a brief interview. However, the U.S. contracts are purely a tolling model. Their tolling fee is fixed,” he said, adding that U.S. LNG becomes less competitive against traditional supplies when oil prices drop. Gail currently sends up to 75% of its U.S. LNG supplies back to India, Tripathi said, and sells the rest into the spot market. All the LNG will eventually be shipped to India when more gas pipelines and regasification terminals are completed, he said. Natural gas is expected to account for 15 percent of India’s energy mix by 2030, up from the current 6.2 percent, MM Kutty, secretary of India’s Ministry of Petroleum and Natural Gas, said earlier in the week.

Half of that demand will be met by LNG imports, he said.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/indias-gail-ceo-calls-for-more-flexibility-in-u-s-lng-contracts/68401766

 

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INTERNATIONAL

Natural Gas / Transnationa l Pipelines / Others

Fracking could cut Britain’s gas imports to zero by early 2030

Fracking Britain’s shale gas reserves could cut the country’s imports of gas to zero by the early 2030s, an industry group said. Britain currently imports more than half of its gas via pipelines from continental Europe and Norway and through shipments of LNG from countries 

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such as Russia, the United States and Qatar.Environmental groups strongly oppose the practice of hydraulic fracturing, or fracking, which involves extracting gas from rocks by breaking them up with water and chemicals at high pressure. But the British government, keen to cut Britain’s reliance on imports as North Sea gas supplies dry up, last year gave Cuadrilla permission to frack two wells at its Preston New Road site in Lancashire.Industry group United Kingdom Onshore Oil and Gas published updated forecasts for the county’s shale gas potential in the wake of recent data from Cuadrilla’s sites. The forecasts for well productivity were increased by 72% to 5.5 billion cubic feet (bcf) per lateral well, compared with estimates made in 2013 by Britain’s Institute of Directors.One hundred fracking well pad sites, each with 40 lateral wells could produce almost 1,400 bcf a year by the early 2030s, equivalent to the gas use of 35 million homes, the industry association report said. This would be more than the country needs as it has around 27 million households.But fracking companies say the industry is unlikely to take off in Britain under current regulations, which halt fracking activity if a seismic event of magnitude 0.5 or above is detected. Cuadrilla, currently the only company to have fracked for gas in Britain, had to halt operations several times last year due to seismic events which exceeded the limit.British chemical manufacturer Ineos, which has the largest shale gas licence acreage in Britain, has called the current rules unworkable. The government said it has no plans to review the regulations. A 2017 study by the Department for Business, Energy and Industrial Strategy concluded that through imports Britain would have secure supplies of gas up until 2037 even if no shale reserves were exploited.Environmentalists have opposed the development of a UK shale gas industry, and say the exploitation of more fossil fuels is at odds with the country’s climate targets. Britain has a target to cut greenhouse gas emissions by 80 per cent by 2050 compared with 1990 levels and is examining whether a net zero emissions target date should be set. 
Source: Reuters/Indian Oil & Gas

 

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Qatar Petroleum farms in to Mozambique exploration block

Qatar Petroleum has reached an agreement with Eni SPA to farm in to Block A5A in the Angoche basin offshore Mozambique.SaadSherida Al-Kaabi, minister of state for energy affairs and QP president and chief executive officer, said the deal is part of a strategy to expand

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the company’s exploration portfolio “to ensure diversification of geographies as well as geologies and basins.”Block A5A, which covers 5,133 sq km in 300-1,800 m of water, is adjacent to Block A5B where a QP affiliate in December 2018 acquired 10% participating interest from an ExxonMobil Corp. affiliate, marking its first foray into Mozambique.After the deal closes, QP will hold 25.5% participating interest in Block A5A with partners operator Eni 34%, EmpresaNacional de Hidrocarbonetos 15%, and Sasol 25.5%.

https://www.ogj.com/articles/2019/03/qatar-petroleum-farms-in-to-mozambique-exploration-block.html

 

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Saudi Arabia says large gas reserves found in Red Sea

Large volumes of natural gas have been found in the Red Sea, according to the official Saudi Press Agency (SPA) which quoted Saudi Arabia’s Energy Minister Khalid al-Falih as saying.Saudi oil giant Aramco is considering opportunities for acquisitions of liquefied natural gas (LNG) projects in the United States, al-Falih has also said,

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according to a Reuters summary of SPA’s news item.In January this year, Saudi Aramco’s chief executive Amin Nasser told Reuters in an interview that the oil firm was looking to spend billions of U.S. dollars on natural gas acquisitions in the United States as part of Aramco’s strategy to bolster its gas business and become a global natural gas player. Last week, Nasser said at an industry event in London that Saudi Arabia aims to export as much as 3 billion cubic feet of gas per day by 2030 as part of its goal to boost the international footprint of its natural gas business.Aramco will solely develop Saudi Arabia’s conventional and unconventional gas reserves, and the options for exports include exports via pipelines and LNG, according to Aramco’s top manager.Saudi Aramco’s gas development program is expected to attract as much as US$150 billion in investment over the next decade, Nasser said. Natural gas production is expected to jump to 23 billion standard cubic feet a day from the current 14 billion cubic feet a day, Aramco’s top executive said in Dubai a few months ago.“We also have world-class unconventional gas resources that are rapidly supplementing our large conventional resources. Because a significant proportion of this unconventional gas is rich in both liquids and ethane, its production will play an important role in the further growth of the Kingdom’s chemicals sector,” Nasser said.

https://oilprice.com/Latest-Energy-News/World-News/Saudi-Arabia-Says-Large-Gas-Reserves-Found-In-Red-Sea.html

 

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Russia still chosing between TurkStream extension options

Russia is still considering various options to extend the second part of the TurkStream natural gas pipeline that Russia is laying under Black Sea to bypass Ukraine, Prime Minister Dmitry Medvedev said.In an interview with Bulgarian daily

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Trud released early on Monday ahead of a visit by Medvedev to Bulgaria, Russia’s head of the government said the future of the pipeline extension depends on the interest of other countries and steps they take.“The final decision does not depend solely on us. Choosing between various options for the TurkStream extension will be, to a large extent, determined by the readiness of gas transport infrastructure,” Medvedev said.Russian gas giant Gazprom, which supplies about 34 percent of the European gas market, built the first line of the TurkStream pipeline to Turkey for local gas consumption.The extension is part of the Kremlin’s plans to bypass Ukraine, currently the main transit route for Russian gas to Europe, and to strengthen its hold on European gas markets.Bulgaria launched a tender for the new gas link with Turkey in mid-2018 in a move to persuade Russia to extend the second part of the TurkStream pipeline to its border rather than Greece.

https://www.hellenicshippingnews.com/russia-still-chosing-between-turkstream-extension-options/

 

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Iran ready to boost natural gas exports to Armenia: Mehr

Iran is ready to increase natural gas exports to Armenia, and is willing to start talks about shipping the fuel to Georgia, Mehr news agency reported, citing President Hassan Rouhani.“We are prepared to negotiate for the export of gas through Armenia to Georgia,  

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as well as the connection of the Persian Gulf to the Black Sea through Armenia and Georgia,” Rouhani said, according to Mehr. Armenia and Iran already work together in gas, electricity, the KhodaAfarin dam between both countries, optical fiber connections and data transmission, the news agency reported Rouhani as saying. He noted Armenia and Iran are cooperating despite “illegal sanctions of the United States against Iran.”“Cooperation in energy is very important for us, and fortunately, Iran has announced readiness for increasing its gas exports,” Armenia’s prime minister NikolPashinyan said, according to the report.Iran holds the world’s second-largest proven natural gas reserves behind Russia but has struggled to attract investments due to its international isolation and complex contractual terms. Its natural gas production is being increased at South Pars, which if put into full production would have capacity to delver 30 Bcf/d of natural gas and almost 1.2 million b/d of condensate, according to the US Energy Information Administration.

https://www.hellenicshippingnews.com/iran-ready-to-boost-natural-gas-exports-to-armenia-mehr/

 

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ExxonMobil makes natural gas discovery offshore Cyprus

ExxonMobil yesterday said it has made a natural gas discovery offshore Cyprus in the Eastern Mediterranean at the Glaucus-1 well.The well, located in Block 10, encountered a gas-bearing reservoir of approximately 436 feet (133 meters).

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The well was safely drilled to 13,780 feet (4,200 meters) depth in 6,769 feet (2,063 meters) of water.Based on preliminary interpretation of the well data, the discovery could represent an in-place natural gas resource of approximately 5 trillion to 8 trillion cubic feet (142 billion to 227 billion cubic meters). Further analysis in the coming months will be required to better determine the resource potential.“These are encouraging results in a frontier exploration area,” said Steve Greenlee, president of ExxonMobil Exploration Company. “The potential for this newly discovered resource to serve as an energy source for regional and global markets will be evaluated further.”Glaucus-1 was the second of a two-well drilling program in Block 10. The first well, Delphyne-1, did not encounter commercial quantities of hydrocarbons.Block 10 is 635,554 acres (2,572 square kilometers). ExxonMobil Exploration and Production Cyprus (Offshore) Limited is operator and holds 60 percent interest in the block. Qatar Petroleum International Upstream O.P.C. holds 40 percent interest.

https://www.hellenicshippingnews.com/exxonmobil-makes-natural-gas-discovery-offshore-cyprus/

 

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ExxonMobil updates growth plans, significant additional upside possible

ExxonMobil said it has updated its growth plans and expects annual earnings potential to increase by more than 140% by 2025 from 2017 adjusted earnings, assuming an oil price of $60 per barrel and based on 2017 margins

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.“Given the success we experienced last year and the progress we’re making on our plans, we have even greater confidence in our ability to grow value for our shareholders,” Darren W. Woods, chairman and chief executive officer, said at the company’s annual investor day at the New York Stock Exchange.“We are exceeding the pace of our expected progress on the aggressive growth strategy we laid out last year,” Woods said. “We continue to enhance our industry-leading portfolio, and are leveraging our competitive advantages in integration, scale, technology and execution to deliver long-term value for our shareholders.”ExxonMobil’s updated earnings projection compares with last year’s estimated increase of 135% between 2017 and 2025, based on 2017 adjusted earnings. Cumulative earnings potential from 2019 through 2025 has increased by about $9 billion, supported by further improvements to the company’s investment portfolio and divestment plans.ExxonMobil expects annual cash flow from operations to reach $60 billion in 2025, assuming oil prices at $60 per barrel and 2017 margins. Cumulative cash flow from operations and asset sales over the period from 2019 to 2025 is $24 billion higher than what was communicated at last year’s analyst meeting, including $15 billion from anticipated asset sales from 2019 to 2021.The company expects to double return on capital employed by 2025 under the $60 per barrel price scenario described during last year’s investor day.In the upstream, growth will benefit from ExxonMobil’s exploration success and progress in development plans. In 2018, the company added 1.3 billion oil-equivalent barrels to its resource base, which included additions from new discoveries and strategic acquisitions, mainly in Guyana and Brazil.In Brazil, ExxonMobil has built a position of 2.3 million acres, adding 800,000 acres in 2018.A key LNG project in Mozambique is on track for final investment decision this year. The Papua New Guinea LNG project is progressing. In February 2019 the company sanctioned the Golden Pass LNG project to capitalize on the low cost supply of U.S. natural gas and the expected growth in global LNG demand.In the Permian, the size of the company’s net resource is 10 billion oil-equivalent barrels and is expected to grow further. In the downstream, the company is progressing six major refining investments to meet growing demand for higher-value fuel and lubricant products. Three of those – a Beaumont hydrofiner, a delayed coker at Antwerp and an advanced hydrocracker at Rotterdam – are operating. The remaining three – Fawleyhydrofiner in the U.K., light crude refining expansion at Beaumont and a residual upgrader in Singapore – are on schedule.In the chemical business, the company detailed plans for 13 new facilities to supply growing demand for products. Seven of the projects started up through 2018 and the remaining six are on schedule. These investments are expected to deliver 30 percent sales growth by 2025, largely driven by technology-enabled performance products.

https://www.hellenicshippingnews.com/exxonmobil-updates-growth-plans-significant-additional-upside-possible/[Edited]

 

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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

 

GO TOP

SNAPSHOT: INTERNATIONAL

Global LNG Development

Global LNG-Asian prices slide to lowest in nearly 19 months

Asian spot prices for LNG fell to their lowest in nearly 19 months this week (Feb 25-Mar2), pressured as buying interest remained slow and as some supply came back online.Spot prices for April delivery to Northeast Asia LNG-AS are currently at around $6.00 per MMBtu,

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down 20 cents from the previous week at the lowest since Aug. 4, 2017 when they hit $5.90 per MMBtu, Eikon data showed.Spot demand from China, the world’s second-largest LNG importer, remained slow, but there were some enquiries for April cargoes, trade sources said.“The (Lunar New Year) holidays are over and some industries are back online, but I think (demand) will be the same as usual, though it’s still difficult to say which way it will go,” said a China-based industry source.Total shipments of the super-chilled fuel into Japan, China, South Korea and Taiwan were at about 15.94 MMT in February, down nearly 19 percent from the previous month, shipping data from RefinitivEikon showed.While it is common for monthly import volumes to drop in February as peak-winter demand tapers off, that marked the biggest monthly decline from January to February since at least 2013, the data showed.Chevron Corp’s Gorgon LNG export plant in Australia brought its train 3 back online after an unplanned outage, sources said earlier this week.The train had been shut since mid-January to address a mechanical issue.LNG loadings from Malaysia’s Bintulu export plant are also normal after a fire at the complex late last week, sources said earlier this week.Elsewhere, Nigeria LNG’s train 1 and 2 which were recently offline, are now back online and normal operations have resumed, NLNG’s spokesman told Reuters this week. “There was no cargo delivery loss recorded as the cargoes were rescheduled,” he added.Russia delivered a record amount of LNG to Europe in February, becoming the biggest supplier of the chilled fuel to the continent for the first time.In tenders and deals, traders said Mexico’s CFE is seeking two cargoes for delivery in March and another two cargoes for April into the Manzanillo terminal, while sources said Indonesia’s Bontang LNG export facility offered to sell at least two cargoes for April and May.

Asian spot prices for LNG dropped the current week for the eleventh week in a row, and have now lost more than 30 percent in value since the start of the year.Prices for April delivery to northeast Asia are estimated at $5.70 per MMBtu, $0.30/mmBtu below last week. That is the first time prompt prices have fallen below $6.00/MMBtu since early August 2017, according to Reuters data.Prices for May delivery are estimated to be slightly higher than for April, largely due to the very weak prompt price, LNG traders said.

Source: LNG Global 

 

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Bangladesh extends deadline to submit plans to build new LNG terminal

Bangladesh will extend the deadline by three months for companies to submit expressions of interest (EOI) to build the country’s first onshore liquefied natural gas (LNG) terminal, two sources familiar with the matter said. Rupantarita Prakritik Gas Co,

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the part of state-owned energy company Petrobangla that oversees LNG supplies, on Jan. 3 requested interest from potential terminal developers for a land-based LNG regasification terminal at Matarbari in the Cox’s Bazar district of southern Bangladesh. The initial EOIs were supposed to be due by March 20 but the companies hoping to take part asked for more time. “The deadline for submission will be extended by three months as potential developers sought more time,” one of the sources said. The EOI is for the design, engineering, procurement, construction and commissioning of a land-based terminal that can handle 7.5 MMTPA of LNG, including receiving, unloading, storage and re-gasification facilities. The project is expected to be built on a build-own-operate basis for 20 years, with ownership then transferred to the Bangladeshi government or a company nominated by the government at no cost. The onshore terminal, which can be expanded to 15 MMTPA in the future, is part of Bangladesh’s strategy to develop its gas sector with private companies, according to the document. The project developer will be required to arrange the necessary financing.

https://www.hellenicshippingnews.com/bangladesh-extends-deadline-to-submit-plans-to-build-new-lng-terminal/

 

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Taiwan’s CPC to start building third LNG terminal by mid-2019

Taiwan’s state energy firm CPC could start building its third liquefied natural gas (LNG) import terminal by the middle of this year once it obtains all the required permits, a senior company official said. The proposed terminal, at Taoyuan, northwestern Taiwan, could start operations in early 2023 with an initial capacity of 1 MMTPA, Jane Liao, chief executive of CPC’s LNG business said on the sidelines of the CERAWeek conference in Houston.

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The project’s first phase of 3 MMTPA will be used by state utility Taipower, she said. Taiwan is the world’s fifth largest LNG importer with an import volume of 16.8 MMTPA in 2018. The island is boosting its LNG imports as it phases out nuclear and coal to generate electricity in the next decade. Taiwan aims to have LNG import capability of 10 MMTPA each in the country’s north, central and south by 2027, Liao said, adding that CPC will continue to expand existing terminals at Taichung and Yung-An in Kaohsiung, southern Taiwan. CPC is currently the only LNG importer in Taiwan and has long-term supplies from Australia, Qatar, Papua New Guinea and Malaysia. To diversify supplies, the company will start receiving LNG from the United States in 2021 after CPC inked a 25-year deal with Cheniere Energy last year. CPC is also eyeing new supplies from Russia’s Sakhalin island in the Pacific, or the U.S. state of Alaska and may seek joint purchases with other buyers from Japan and South Korea, Liao said.

https://www.hellenicshippingnews.com/taiwans-cpc-to-start-building-third-lng-terminal-by-mid-2019/

 

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Petronas moves floating LNG facility to new location off Sabah

Malaysian state-owned oil firm Petroliam Nasional Bhd said it had relocated its floating liquefied natural gas facility to the eastern state of Sabah, nearly two years after it began operations.

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The Petronas FLNG (PFLNG) Satu is now moored in the Kebabangan cluster field, some 90 km northwest of the state’s capital city of Kota Kinabalu, the company said. The facility was previously moored in the Kumang cluster field off the coast of Bintulu in neighbouring Sarawak, where it began the world’s first LNG production from a floating platform in 2017. “Petronas has delivered 19 successful cargoes since the commissioning of PFLNG Satu and we are confident that this success continues in Sabah waters as well,” Mohd Anuar Taib, Petronas executive vice-president and upstream chief executive, said in a statement.

https://www.hellenicshippingnews.com/petronas-moves-floating-lng-facility-to-new-location-off-sabah/

 

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Sinopec may ink 20-year LNG deal with Cheniere when trade spat ends

China Petroleum and Chemical Corp plans to sign a 20-year LNG supply agreement with Cheniere Energy once China and the United States end their trade dispute, two sources with knowledge of the matter said on Wednesday, March 6. Cheniere and

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China Petroleum and Chemical, known as Sinopec, reached a consensus in late-2018 on commercial terms after months of negotiations, but the signing of the deal was held back by the ongoing trade friction between the world’s top two economies, one of the sources, who has direct knowledge of the matter, told Reuters.“Without the trade spat, the deal should have been signed some time ago,” the source said, declining to be named because the matter is not public.In recent weeks, Beijing and Washington appear to have moved closer to a deal to end a bruising eight-month dispute that has seen the countries slap tariffs on billions of dollars’ worth of the other’s good. A resolution is widely expected to include stepped-up Chinese purchase of U.S. goods.Sinopec intends to buy close to 2 MMTPA of LNG from Houston-based Cheniere starting 2023, the two sources added, without giving a deal value.Based on the delivered cost of U.S.-sourced supplies into east China in January at $8.30 per MMBtu given by Chinese customs, the 20-year deal would amount to roughly $16 billion.The Wall Street Journal reported that as part of a trade deal with the United States, China would buy $18 billion worth of natural gas from Cheniere. Officials from Cheniere visited Beijing in late February, said a third source, who was also familiar with the matter.In February 2018, before the trade war started, PetroChina’s parent company CNPC signed a 20-year deal with Cheniere to buy 1.2 MMTPA of LNG through 2043, with a portion of the supply beginning in 2018.

Source: LNG Global

 

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Forbes’ richest Russian gets even richer in LNG deal

The richest Russian on the Forbes billionaire list, Leonid Mikhelson, became even richer after selling a 10% stake in its Arctic LNG project to France’s Total.

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The $24 billion man behind Russia’s largest, privately owned natural gas company Novatek inked a $2.5 billion deal with Total on Tuesday for a liquefied natural gas project estimated to cost $21 billion, though that price keeps falling. In January, Mikhelson said it was worth around $45 billion.The deal for the sale of 10% of Novatek’s Arctic LNG-2 project was signed last year at the St. Petersburg International Economic Forum—deemed the Russian Davos—in the presence of president Vladimir Putin and France’s president Emmanuel Macron.According to Russian business daily Vedomosti, only five wells have been drilled in Russia’s Arctic shelf compared to over 300 wells in Norway and around 100 in the U.K.The Russian government is said to be preparing a new investment plan for the region by the end of the month.Novatek will be looking for more corporate partners for Arctic LNG-2. An American oil and gas company will not be one of them.Novatek has avoided U.S. sanctions, but Mikhelson has been preparing his company for them just in case. He has switched financing from dollars to euros and has upwards of $12 billion in loans from Chinese banks.

https://www.hellenicshippingnews.com/forbes-richest-russian-gets-even-richer-in-lng-deal/[Edited]

 

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BP, Exxon to help advance Alaska LNG export project

Alaska Gasline Development Corp (AGDC) said it signed an agreement with BP PLC and Exxon Mobil Corp to help advance the state-owned company’s proposed $43.4 billion Alaska liquefied natural gas (LNG) project:

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Our respective organizations share an interest in the successful commercialization of Alaska’s stranded North Slope natural gas,” AGDC Interim President Joe Dubler said in a statement.BP and Exxon Mobil produce massive amounts of oil in Alaska and have discovered huge gas resources that are stranded in the North Slope.The Alaska LNG project is designed to liquefy 3.5 billion cubic feet per day of gas for sale to customers in the Asia-Pacific region from a facility to be built in Nikiski on the Kenai Peninsula south of Anchorage. It includes an 807-mile (1,300-km) pipeline from the North Slope.U.S. energy regulators recently delayed the date they expect to decide on the LNG project to June 2020 from February 2020.Officials at AGDC have said the company is reviewing the timeline to get the project built.At the same time, AGDC said it is continuing negotiations with several parties interested in the project, including a joint development agreement with Chinese oil and gas company Sinopec, China’s sovereign wealth fund China Investment Corp’s CIC Capital Corp and the state-owned Bank of China.

https://www.newsmax.com/finance/streettalk/bp-exxon-gas-alaska/2019/03/10/id/906280/

 

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First U.S. floating LNG project to move ahead despite China trade war -partner

Plans to construct a U.S. floating LNG vessel in China, which may also provide funding and buy part of its output, are moving ahead despite trade tension between the countries, an executive at one of the partners said

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.The Delfin LNG project will be the first of its kind for the United States, which has only onshore liquefaction facilities, and will produce up to 13 MMTPA of LNG for export.Delfin could export to China, the world’s second-largest LNG buyer, but a 10% tariff on U.S. LNG as part of the trade conflict begun by U.S. President Donald Trump last year has served to restrict imports.The two countries now appear close to a deal that would roll back U.S. tariffs on at least $200 billion worth of Chinese goods. Beijing would also scrap retaliatory tariffs and there would be an $18 billion purchase of LNG from CheniereEnergy , the country’s top producer of the fuel.Delfin has signed a memorandum of understanding to supply 3 MMTPA of LNG to China Gas Holdings Co (0384.HK), one of China’s most active city gas distributors.The project, which could ultimately utilise up to four FLNG vessels, is expected to have similar costs to the HilliEpiseyo FLNG vessel developed by Delfin’s partner Golar LNG and has started production off Cameroon.The Hilli vessel, converted from an ageing tanker for $1.2 billion, produced its first LNG on March 12 last year, but its sole offtaker Gazprom only exported its first cargo in May, also to China, after technical issues hampered production.The Delfin LNG partners are targeting a final investment decision for the project by the end of the year and the first LNG production in the second half of 2023.

https://www.hellenicshippingnews.com/first-u-s-floating-lng-project-to-move-ahead-despite-china-trade-war-partner/

 

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SNAPSHOT: INTERNATIONAL

Natural Gas / LNG Utilization

NREL funds nine natural gas vehicle technologies projects

The U.S. Department of Energy’s National Renewable Energy Laboratory (NREL) has selected nine projects as part of a multimillion-dollar effort funded jointly by the U.S. Department of Energy (DOE),

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the California Energy Commission (CEC), and the South Coast Air Quality Management District (AQMD) to advance the state of technology for natural gas vehicles (NGVs).The selected projects, funded to the tune of $18 million awarded for research to diversify transportation energy use, will focus on reducing the total cost of ownership of NGVs, increasing vehicle efficiency, decreasing local air pollution, and advancing technology development to increase the use of more affordable medium- and heavy-duty natural gas engines and vehicles.The NGVAmericaPresident Dan Gage said  “Natural gas is ready-right-now technology for all vehicle applications, and this investment further expands NGVs’ capability and reliability and increases their emissions- and carbon-free performance.  When fueled by captured biomethane (RNG), natural gas truck and bus engines are the cleanest and most-immediate solution for those seeking a net carbon-negative fleet footprint.”“Leveraging the technical expertise of industry partners can have a powerful impact on transportation technologies,” said Johney Green, associate lab director for Mechanical and Thermal Engineering Sciences at NREL. “Innovation that can change the paradigm for energy use in transportation is going to come by bringing together researchers from several areas. We are looking forward to partnering with these researchers to develop breakthrough NGV technology.”These awards are the result of collaboration between NREL, DOE, CEC, and AQMD.

Source: NGV Global

 

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Audi now offers the A3 Sportback g-tron with improved CNG range

Thanks to its increased tank volume, The Audi A3 Sportback g-tron can cover now around 400 kilometers (248.5 miles) (WLTP cycle) in natural gas operation. Presales at dealerships in Germany kicked off on March 7 and the basic price will be EUR 30,600.

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The compact model forms part of an integrated and sustainable mobility concept from the brand.Equipped with a new 1.5 TFSI engine producing 96 kW (131 metric hp), the A3 Sportback g-tron sets standards for efficiency and economy. To enable the four-cylinder engine to run on these fuels, Audi engineers modified its cylinder head, turbocharging, fuel injection system and catalytic converter. Compared to gasoline, combustion of natural gas emits 25% less CO2 due to the lowest carbon content of all hydrocarbons. In addition, particulate emissions remain very low.Just as before, there are two tanks made of glass fiber-reinforced polymer (GFRP/CFRP) beneath the luggage compartment floor of the five-door car, each of which hold roughly seven kilograms (15.4 lb) of natural gas. They reduce luggage space only marginally and are constructed from a composite material, making them very lightweight.The two plastic tanks storing the natural gas with an operating pressure of up to 200 bar follow the Audi lightweight design philosophy. Thanks to their layout, they weigh 66% less than comparable steel cylinders.

http://www.ngvjournal.com/s1-news/c3-vehicles/audi-offers-the-a3-sportback-g-tron-with-improved-cng-range/

 

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Westport Fuel Systems supports Europe’s proposed CO2 emission reduction standards for trucks

Westport Fuel Systems Inc. (Westport) supports the upcoming Plenary vote in the European Parliament to pass Europe’s first CO2 regulations which set CO2 emission reduction targets for heavy-duty vehicles. 

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On February 27, 2019, the Committee for Environment, Public Health and Food Safety (ENVI) voted to approve the final text of the legislation previously approved by the Committee of Deputy Permanent Representatives on February 22, 2019. This has now set the stage for final approval by the European Parliament currently scheduled for the week of April 15, 2019.Under the proposed legislation, heavy-duty truck original equipment manufacturers (“OEMs”) will be required to achieve a fleet average reduction of CO2 emissions of 15% by 2025 and 30% by 2030 compared to a 2019 baseline emission level.“Heavy-duty natural gas vehicles featuring WestportHPDI 2.0™ technology provide a CO2 emission reduction benefit of approximately 20% compared to an equivalent diesel-fueled vehicle and are commercially available, cost competitive, and on the road in Europe today,” stated David Johnson, Chief Executive Officer of Westport Fuel Systems.  “The Westport HPDI 2.0™ system meets the expected 2025 target today and with blends of renewable natural gas, may enable CO2 emission reductions in excess of the 30% target that is expected to come into effect in 2030.”In addition, the proposed Regulation calls on the Commission to submit a report in 2022 outlining a potential methodology to provide a credit for the contribution of additional CO2 emission reductions through the use of synthetic and advanced alternative liquid and gaseous fuels, including renewable natural gas (RNG).Furthermore, the Commission has been tasked with the development of a methodology to assess and report on the full life-cycle CO2 emissions of heavy-duty vehicles taking into account the CO2 impact of materials extraction and disposal and the manufacturing process.

http://www.ngvglobal.com/blog/westport-fuel-systems-supports-europes-proposed-co2-emission-reduction-standards-for-trucks-0304[Edited]

 

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Bolivian automotive fleet reaches 25 percent natural gas powered

The Executive Director of Bolivia’s Execution Entity of Conversion to Natural Gas Vehicles (EEC-GNV), Alejandra Huaylla, reported in February that growth of natural gas vehicles in his country has been exponential.

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The national fleet has grown from 40,000 vehicles in 2005 to 390,000 vehicles today using Compressed Natural Gas (CNG), representing 25% of the entire Bolivian automotive fleet. “We can qualify this program as successful”, Huaylla says.EEC-GNV was created in 2010 and is in charge of the conversion, maintenance of kits, and requalification or replacement of CNG cylinders throughout the country. “Thanks to the NGV conversions the Bolivian State saved $ 2.1 billion dollars for gasoline imports in these years”, Huaylla notes.“In 2019 we are giving greater strength to the requalification program, for the safety of the users. Workshops will evaluate the existing cylinder in case it has fulfilled its useful life and replace it if necessary. In that sense we have programmed 40,000 requalifications, while in the field of conversion we will make 20,000.”He also explained that the Entity this year launched its first invitation to conversion workshops to work within the program. “In January, we launched the first direct invitation to 80 workshops throughout the country, to be part of the NGV conversion program, of which 30 were awarded, 27 were observed and 23 were declared void. All this work aims to improve the security levels of Bolivian families and provide a better quality service and efficiency to the carrier.” A second invitation was issued in February.

Source: NGV Global

 

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Peru: natural gas for vehicles arrives in Cusco, first CNG stations will open

The widespread use of natural gas in the south of the country is one of the main goals of the national government. In this regard, the Ministry of Energy and Mines (MEM) attended the signing of the inter-institutional cooperation agreement between the Regional Government of Cusco and the Camisea consortium,

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which will bring natural gas to the cities of Cusco and Quillabamba.The deputy minister of Hydrocarbons Eduardo Guevara Dodds, who was present at the signing of the document, explained that the agreement will allow the implementation of three CNG stations in Cusco and Quillabamba, as well as the start of a program to convert vehicles from diesel to natural gas.“The entire project will have private financing and should begin to be implemented this year, so we are already advancing towards the government’s guidelines to promote the use of natural gas,” said Guevara Dodds.The Ministry of Energy and Mines and the Regional Government of Cusco will also sign a cooperation agreement that will boost natural gas sector, since it will include the formation of a Technical Commission composed of specialists from MEM and Gore, which will analyze which are the fastest and most viable options to promote natural gas in the south of the country.

http://www.ngvjournal.com/s1-news/c4-stations/peru-natural-gas-for-vehicles-arrives-in-cusco-three-refueling-stations-will-open/

 

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Mexico: State of Chihuahua highlights huge savings from new CNG buses

The introduction of 10 Ankai natural gas buses in the City of Chihuahua’s Main Route 1 has generated a saving of 10 million pesos (over U$S 500,000) during January, in addition to reducing carbon emissions into the atmosphere by displacing the use of diesel.

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This was announced by the head of the General Direction of Transportation of the State Government David Holguín Baca, during the Ordinary Session of the Board of Directors of the Transport Operator of Chihuahua’s Main Route 1.Holguin Baca presented one of the new vehicles running on natural gas, supplied by Ankai dealership EGS Trucks, which also feature surveillance cameras, air conditioning and more comfortable seats than the buses that are currently in operation.In the presence of the General Secretary of Government César Jáuregui Robles, the upcoming opening and start-up of a natural gas station was announced, which will be able to refuel up to 350 public transport vehicles. With this initiative, the Chihuahua government also seeks to promote the renewal of buses and the transition from diesel to CNG among the operators of the feeder routes.

http://www.ngvjournal.com/s1-news/c3-vehicles/mexico-state-of-chihuahua-highlights-huge-savings-from-new-cng-buses/

 

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SNAPSHOT: INTERNATIONAL

LNG as a Marine Fuel / Shipping:

LNG does offer pathway to IMO 2050

SEA\LNG, the multi-sector industry coalition aiming to accelerate the widespread adoption of liquefied natural gas (LNG) as a marine fuel, believes LNG is a viable pathway to meet the International Maritime Organization (IMO)’s 2050 greenhouse gas (GHG) targets.

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The maritime industry really has two broad but major environmental initiatives related to air emissions; dramatic improvement of global air quality, and reduction of GHGs.Reinforcing the case for LNG as a marine fuel, SEA\LNG Chairman Peter Keller said: “In addition to immediate local air quality benefits, LNG offers a commercially viable long-term bridging solution to addressing the IMO GHG targets. LNG, in combination with efficiency measures being developed for new ships in response to the IMO’s Energy Efficiency Design Index (EEDI), will provide a way of meeting the IMO’s target of a 40% decrease in GHG by 2030 for international shipping. In addition, there are clear technology pathways being developed which should allow further emissions savings to be realised. For example, today, mixing LNG with bioLNG (from biogas) as a ‘drop-in’ fuel significantly reduces GHG emissions. Longer term, ‘power-to-gas’ is a key technology with the potential to produce large volumes of renewable LNG.”LNG far outperforms conventional marine fuels in terms of minimising local emissions to improve air quality and can significantly reduce GHG emissions. SEA\LNG together with SGMF has commissioned an independent study to establish the facts regarding GHG emissions from LNG as a marine fuel considering all emissions from well-to-wake for LNG and other fuels. This study is currently being reviewed by independent academics and SEA\LNG and SGMF expect to publish the results in April.Future technologies that appear to have promise, safety, and scalability could be built upon marine fuel infrastructure for LNG and clearly indicate that it is inaccurate to conclude that LNG will not provide a pathway to meeting IMO 2050 GHG ambitions. LNG can and does solve the air quality issues the maritime industry has been working on for decades and sets a path forward to meet IMO GHG targets.

https://www.hellenicshippingnews.com/lng-does-offer-pathway-to-imo-2050/

 

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Seoul to order 60 ships, subsidize LNG-fueled ships to help maritime industry

South Korea government will consign 60 vessel orders and initiate a project to groom sea gateways as a global logistics hub to restore the country’s maritime reputation through state-led restructuring and subsidy program.

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The Ministry of Oceans and Fisheries in its policy plan for this year released on Thursday said it will place orders for 60 new ocean-going vessels through Korea Ocean Business Corp., a state entity launched last year devoted to promoting shipping and shipbuilding industries with an aim to order a total of 200 ships by 2022. The state entity already placed orders for 57 vessels including container carriers and liquefied natural gas tankers last year.To meet the growing demand for eco-friendly ships, the government will subsidize 10 percent of the ship coverage if a company upgrades old vessels with eco-friendly features.The ministry will also seek ways to prevent cutthroat competition among local shippers and strengthen their global competitiveness. It will encourage mergers among the country’s eight major container carriers to bring down the number to six bigger names. Operators for the country’s main ports such as Incheon and Busan will be transformed into bigger entities through mergers.To reclaim the shipping routes that the country lost following the collapse of Korea’s once leading container carrier Hanjin Shipping in 2016, the ministry will provide aids to shippers on opening new routes and expanding shipping capacity. K-Global Terminal Operators (K-GTO) will be formed in cooperation with shippers, port authorities, and Korea Ocean Business. K-GTO will work to secure operation rights of shipping terminals in Southeast Asian countries with high growth potentials such as Malaysia, Thailand, and Indonesia.

https://www.hellenicshippingnews.com/seoul-to-order-60-ships-subsidize-lng-fueled-ships-to-help-maritime-industry/

 

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Shipping heavyweight orders world’s first mega-container vessel retrofit to LNG

MAN Energy Solutions has signed a contract for the conversion of a 15,000 TEU container vessel to dual-fuel operation.

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The container vessel MV SAJIR is owned by Hapag-Lloyd, one of the world’s leading liner shipping companies, and normally serves a route from Asia to northern Europe via the Suez canal. The pilot project will entail the conversion of an existing, HFO-burning MAN B&W 9S90ME-C engine to a dual-fuel MAN B&W ME-GI (-Gas Injection) prime mover capable of running on HFO and LNG. The retrofit will be done at the Chinese Hudong/HRDD shipyard, specialized in ship repair and conversion.Wayne Jones OBE – Chief Sales Officer and Member of the Executive Board, MAN Energy Solutions – said: “We are seeing great interest in this project from the industry as a whole. This is an excellent showcase for the conversion of a mega-container vessel to LNG and the potential benefits for the market is huge. With this announcement, MAN Energy Solutions is once again at the forefront of technology with our ability to execute LNG conversions for both four-stroke and two-stroke engines.”The emission savings for MAN B&W two-stroke engines are significant when converting an existing HFO engine to LNG. Using LNG in the shipping industry could reduce CO2 emissions by 15 to 20 percent and sulphur dioxide and particulate matter by more than 90 percent.

https://www.hellenicshippingnews.com/shipping-heavyweight-orders-worlds-first-mega-container-vessel-retrofit-to-lng/[Edited]

 

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Kawasaki Heavy looks to build LNG carriers in China

Kawasaki Heavy Industries is weighing plans to construct liquefied natural gas carriers at a newly completed dock in northeast China, as the company streamlines costs amid competition from South Korean rivals.

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The Dacks shipyard in Dalian, Liaoning Province, completed a second dock on Friday, which spans 550 by 68 meters. The site is operated by Dalian Cosco KHI Ship Engineering, a joint venture of the Japanese manufacturer and China Cosco Shipping.The potential shift to the new China dock stems from cutthroat competition by South Korean shipbuilders, which are bolstered by government subsidies. In Japan, shipyards are smaller and labor costs are higher. Kawasaki Heavy has worked to curb costs, but the crux of the issue remains unaddressed.The first dock at the Dalian shipyard has produced 41 vessels, including bulk carriers to transport mineral ores and grains, as well as megatankers and containerships.The second dock was being planned when the Dacks shipyard opened in 2007. But the company shelved the project due to the 2008 financial crisis and the subsequent decline in ship demand worldwide. The partners decided in 2015 to reinstate the investment plan.Other Japanese shipbuilders are moving operations abroad. Mitsui E&S Holdings is set to form a joint venture in April with Yangzijiang Shipbuilding, China’s private-sector leader in the field. Tsuneishi Shipbuilding, based in Hiroshima Prefecture, has increased shipbuilding in the Philippines and China.

https://www.hellenicshippingnews.com/kawasaki-heavy-looks-to-build-lng-carriers-in-china/

 

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Shell study quantifies reduction of GHG emissions using LNG fuel

In the climate debate, LNG has great potential to diversify fuel consumption and reduce greenhouse gas emissions from ships and trucks. This is confirmed by the Shell LNG study Liquefied Natural Gas –

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New Energy for Vessels and Trucks? – Facts, Trends and Perspectives, which Shell developed with the German Aerospace Center (DLR) and the Technical University of Hamburg.Assuming that by 2040 there will be 6,000 (mainly) large LNG ships worldwide and 480,000 LNG trucks in the EU, greenhouse gas emissions from shipping could be reduced by 132 MMT by 2040 and from heavy trucks by up to 4.7 MMT, depending on engine technology. With a 30% share of organic LNG, an additional reduction of around 20% would be possible for trucks. Greenhouse gas emissions for the entire German transport sector are currently around 166 MMT.“We see great potential for LNG in shipping. This applies in particular to container ships, which have comparatively high fuel consumption due to their high power requirements. Passenger ships play a pioneering role. If LNG replaces heavy oil, there will be high emission advantages,” says Shell Chief Economist Dr. Jörg Adolf.“In road freight transport, LNG is particularly suitable for heavy trucks as an alternative to diesel fuel. In order to achieve high emission savings, however, LNG from renewable energies such as bio LNG is needed,” explains DLR transport expert Dipl.-Ing. Andreas Lischke.The International Energy Agency (IEA) assumes that global natural gas trading will grow by around two thirds by 2040 and that more than 80% of this growth will be covered by LNG. While today about 8 to 9% of the consumed natural gas is LNG, it will then be about 14%.Ships make a significant contribution to the emission of traffic-related air pollutants. In addition, international maritime traffic accounts for around 3% of global carbon dioxide emissions. LNG is currently the only seriously discussed and market-ready alternative to oil-based marine fuels. Accordingly, the study assumes that the stock of LNG seagoing vessels will grow significantly faster than the total stock by 2040. Container ships in particular are developing dynamically here. Passenger ships such as cruise ships and ferries will play a pioneering role.In road transport, LNG is mainly used for heavy trucks and semitrailer tractors. The number of heavy trucks and articulated lorries in the EU will increase by 307,000 to 2.76 million by 2040 if the current registration trends continue. 480,000 (17%) of these would then have an LNG drive and would substitute diesel fuel consumption of up to 11.5 billion litres. There are currently about 4,000 LNG trucks in the EU.

As a member of the BioLNGEuroNet consortium, Shell intends to set up 39 LNG filling stations along the main routes from Spain to eastern Poland in the medium term, 10 of them in Germany. Shell currently offers 9 LNG filling stations in the Netherlands, Belgium and Germany. More will be added in Germany this year.

http://www.ngvglobal.com/blog/shell-study-quantifies-reduction-of-ghg-emissions-using-lng-fuel-0302

 

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Coralius reaches 100 bunkerings milestone – LNG demand on the rise

Gasum’s liquefied natural gas (LNG) bunker vessel, Coralius, made its 100th bunkering on February21. Coralius is operating on behalf of Gasum (former Skangas) and the vessel mainly operates in the North Sea and the Skagerrak area.

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The LNG bunker vessel Coralius celebrated a milestone at the end of February, as she completed her 100th bunkering operation in just 18 months. Coralius delivers LNG through ship-to-ship bunkering at sea and in port. This has significantly increased Gasum’s flexibility and responsiveness to vessels that require LNG but are unable to visit a terminal or a port. By making LNG more accessible to vessels, ship-to-ship bunkering also boosts efficiency. “100 ship-to-ship bunkerings is a great milestone for Gasum as well as for our customers. With Coralius, we have been able to perform bunkering to different types of vessels, which is quite unique and demands us to be prepared for all types of vessels. The bunkering operations are swift and safe, and we have received great feedback from our customers. Coralius has definitely increased Gasum’s flexibility as an LNG supplier,” says KimmoRahkamo, Vice President, natural gas and LNG, Gasum.In 2019, Coralius will perform more bunkering operations than in 2018. Gasum foresees an increase in the average amount of delivered stem, as it will perform bunkerings on shuttle tankers and other bigger vessels. Coralius has increased its efficiency due to LNG bunkering operations becoming faster – they are now nearly as quick as normal oil bunkerings, which has also increased customer satisfaction.LNG marine fuel meets all current SOx (sulphur oxides) and planned NOx (nitrogen oxides) requirements. It eliminates particles and can reduce CO2 emissions by at least 20% compared to traditional fuels. LNG is suitable for all vessel types and it contributes significantly to a greener shipping environment.Coralius was built by the Royal Bodewes in the Netherlands and is the first European built LNG bunker and distribution vessel. It is equipped with state-of-the-art LNG transfer equipment for bunkering and has a cargo capacity of 5,800 m3.

https://www.hellenicshippingnews.com/coralius-reaches-100-bunkerings-milestone-lng-demand-on-the-rise/

 

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Spanish Port de Ferrol performs first LNG bunkering operations

For the first time in its history, the port of Ferrol carried out LNG bunkering operations for ships that use this product as fuel. Two vessels were supplied, both on the outer jetty, which is the pier of the inner dock

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where small and medium-sized cruise ships usually dock when they visit the city. The supply was in charge of Repsol, which used five tanker trucks that had previously been loaded with LNG at the terminal of Reganosa. In total, 178 cubic meters of fuel were delivered.The vessels are the Samnøy and Huftarøy ferries, which were just built at the Turkish Tersan Shipyard, and stopped at Ferrol on their way to the Norwegian fjords, where they will be used in passenger services by the Torghatten Nord shipping company. With a length of 134 meters and a width of 21 meters, both vessels have been designed to transport each one to 545 people and up to 180 vehicles.Ferrol has the advantage of having a terminal like Reganosa in its port. In addition, the Port Authority of Ferrol-San Cibrao was a pioneer in the study of measures to develop this supply, in partnership with Reganosa, Navantia and the container terminal operator of the outer port. Precisely, the containership fleet is expected to further grow LNG adoption: the number of vessels is increasing at an annual rate of 15-20%.The Iberian Peninsula currently offers one of the fastest growing markets in terms of the adoption of natural gas in maritime transport. In this extremely encouraging scenario, AltFuels Iberia 2019 will take place on 11-14 June at IFEMA Trade Center, Madrid. It will be an event consisting of first level conferences and exhibition of vehicles of all kinds, refueling stations, components, plants, road and marine engines, as well as the entire universe of the alternative fuels industry with the latest technological developments, multiple options for networking, business and new advances. For more information, please contact info@altfuelsiberia.com.

http://www.ngvjournal.com/s1-news/c7-lng-h2-blends/spanish-port-de-ferrol-performs-first-natural-gas-bunkering-operations/

 

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SNAPSHOT: INTERNATIONAL

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

Natural gas fuel in Sweden is 91% renewable

The proportion of biogas in the vehicle gas continues to increase. New statistics from Statistics Sweden show that the renewable proportion is just over 91 per cent. Total sales of natural gas as a fuel for vehicles also rose during 2018.

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Statistics for 2018 presented by Statistics Sweden on February 19 show that the proportion of biogas (biomethane / renewable natural gas  or RNG) in vehicle gas is up to 91.3 percent. For 2018, the previous downward trend for vehicle gas sales, which is increasing by 1.6 gigawatt hours, is also being broken.“The industry’s goal is that we should have 100 percent biogas in the vehicle gas by 2030. The new figures show that we are approaching by leaps and bounds, and that is of course very gratifying. In this area, Sweden is the world leader. It is also very cool that total sales of vehicle gas goes up in 2018. It looks promising for the future”, says Maria Malmkvist, CEO of Energigas Sweden.At the end of 2018, there were 185 public vehicle gas filling stations and about 60 non-public filling stations in Sweden.Public filling stations are filling stations where deliveries are made to the public. Non-public filling stations are filling stations where deliveries to vehicles are either difficult to access by the public or are only available to individual municipalities or companies.

http://www.ngvglobal.com/blog/natural-gas-fuel-in-sweden-is-91-renewable-0302

 

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U.S. Energy Department funds new natural gas and hydrogen projects

The U.S. Department of Energy announced up to $51.5 million for new and innovative research of technologies for trucks, off-road vehicles, and the fuels that power them.  Funded through the U.S. Department of Energy’s (DOE’s) Office of Energy Efficiency and Renewable Energy (EERE),

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this FOA addresses priorities in gaseous fuels research, including natural gas and hydrogen; hydrogen infrastructure and fuel cell technologies for heavy-duty applications; and energy efficient off-road vehicles.Gaseous Fuels Research and Technology Integration for Medium- and Heavy-duty Vehicles (up to $16.5 million) – This topic includes multiple sub-topics, including novel materials for high density gas storage and transport, advanced waste to energy technologies, and technology integration that focus on lowering the cost of and overcoming technical barriers to the use of medium- and heavy-duty natural gas and hydrogen fueled vehicles.High Throughput Hydrogen Fueling Technologies for Medium- and Heavy-duty Transportation (up to $6 million) – Projects will develop technologies for fast-fill hydrogen storage and fueling components.Moreover, the Department of Energy announced up to $31 million in funding to advance the H2@Scale concept. The focus of H2@Scale is to enable affordable and reliable large-scale hydrogen generation, transport, storage, and utilization in the United States across multiple sectors.

http://www.ngvjournal.com/s1-news/c1-markets/u-s-department-of-energy-funds-new-natural-gas-and-hydrogen-projects/[Edited]

 

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