Snapshot March 2020 Volume 1

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

NATIONAL NEWS

City Gas Distribution & Auto LPG

PNGRB plans to allow lenders to replace defaulting city gas companies

Lenders will have a right to replace a defaulting city gas licensee with a new entity in consultation with the downstream regulator, as per a draft proposal by

the Petroleum and Natural Gas Regulatory Board (PNGRB). The proposed amendment is aimed at addressing a key regulatory concern of lenders that was holding back financial closure for many city gas licence areas. The regulator, which has distributed 136 licences in the past two years and aims to award licences for another 50 districts this year, expects the proposed changes to help expedite financial closure for current and future licensees and speed up work programme. The current rules bar transfer of 50% or more stake in a license area to any new party in the first five years of the license or till the completion of promised work programme, giving rise to concerns that lenders may be stuck if a licensee defaulted on servicing loans in early years. The new regulatory proposal would permit lenders to get a new entity to take over the licence and the liabilities that came with it. In case of default by a licensee, lenders are expected to inform the regulator, which would give 90 days to the licensee to cure the default, failing which the licence may be suspended if so desired by the lenders, as per the draft. After the suspension of licence, lenders will have to inform the regulator of their intention to install a substitute for the original licence-holder. Lenders can then select a substitute within 90 days. The regulator would then transfer the city gas licence to the new entity if it meets all license conditions, as per the draft. The new entity will have to assume all the liabilities and responsibilities of the original licensee. In the draft proposal, PNGRB has also described in greater detail on when the financial closure will deem to have been achieved by the licensees. The licensees will now have to offer component-wise detailed cost of project, year-wise spending and financing plan, and approval of the same by the board of directors of the company. In case of borrowings-funded plan, a licensee needs to submit firm sanction order from lenders, legally binding loan agreements.

https://economictimes.indiatimes.com/industry/energy/oil-gas/pngrb-plans-to-allow-lenders-to-replace-defaulting-city-gas-companies/articleshow/74362927.cms

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Plans redrawn to end city gas distributors’ monopoly

The downstream regulator is planning to end marketing monopoly of Indraprastha Gas, Mahanagar Gas, Gail Gas, Gujarat Gas and more city gas distributors in

at least 30 license areas by declaring their network as ‘common carrier’, which would force them to reserve a part of their capacity for third party, people familiar with the matter said. In the next few months, the Petroleum and Natural Gas Regulatory Board (PNGRB) will likely be ready with a regulatory framework for elimination of monopolies, they said. “If you look around, every monopoly or oligopoly has certain checks – in the power sector, there is regulatory oversight on tariff while in the telecom sector, limited competition keeps tariff in check – but in city gas, the monopoly is unfettered,” a person familiar with the thinking at PNGRB said. Several CNG and piped cooking gas distributors have enjoyed exclusive marketing rights far longer than the usual 3-5 years that licenses permit. Introducing competition was necessary for market efficiency and increased consumer benefit, the person said. PNGRB is unlikely to terminate all eligible monopolies in one go. “The regulator will pick one or two cases in the beginning as test cases,” the person said. “Obviously, there will be challenges by the affected companies and that will have to be overcome, which will also make the process more robust.” The regulator’s attempts at ending monopoly in previous years failed as distributors relied on the absence of a regulatory framework to stonewall such a move. The board will have to publish its intent to end marketing exclusivity and then hear the distributor as well as other stakeholders in a fixed timeframe before taking a final decision on this, as per a draft regulation for declaring city or local natural gas distribution networks as common carrier or contract carrier it had floated in August last year. Once a network is declared a common carrier, the distributor will have to reserve a fifth of its capacity for third parties, including suppliers and customers, as per the draft. Existing CNG stations will continue to be exclusively operated by the licensee. But third-party entities can install new CNG stations, which will be permitted firm access by licensees. CNG stations shall receive natural gas only through the city gas network of the authorised entity. The license holder shall declare on its website its own requirement and the capacity allocated on a firm contract basis which may be verified by the PNGRB every month or at any other intervals the board desires, as per the draft.

https://economictimes.indiatimes.com/industry/energy/oil-gas/plans-redrawn-to-end-city-gas-distributors-monopoly/printarticle/74166973.cms

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Gujarat Gas eyes doubling current natural gas volume to cope up with demand

India’s largest city gas distribution (CGD) player Gujarat Gas (GGL) is expecting to double its current natural gas volumes by the end of next fiscal (2020-21)

to cope up with on-going expansion of gas distribution network as well as increasing demand of natural gas in industrial segment.“Currently, GGL is distributing gas in Gujarat and some parts of Maharashtra. In the 10th CGD round announced by Petroleum and Natural Gas Regulatory Board (PNGRB), the company has won as many as six geographical areas (GA), comprising 17 cities in Punjab, Haryana, Madhya Pradesh and Rajasthan. As a result, GGL is going to become a pan-India company and it would require large volumes to meet the future demand,” said a senior official in the state government.The Gujarat government-owned company has India’s largest customer base in residential, commercial and industrial segments with around 350 CNG stations catering to more than two lakh CNG vehicles per day, 13.55 lakh households (residential) and over 3,500 industrial customers. At present, GGL distributes approximately 8.5 MMSCMD natural gas using 23,200 km of gas pipeline network.Interestingly, almost 80% of sales of the company happens in India’s biggest ceramic cluster situated at Morbi in western Gujarat. According to the official, after the order of National Green Tribunal (NGT), many units in Morbi are in the process of converting from coal to gas. As a result, sales in Morbi jumped from 5.2 MMSCMD in the third quarter of the current fiscal to almost 6 MMSCMD in the fourth quarter, he said, adding that domestic demand for ceramic has also improved and it would reflect in gas consumption. According to the official, GGL is expecting implementation of NGT order from March 2020, which would further add nearly 7.5 MMSCMD gas volumes in Morbi as well as other areas of Gujarat.The state government is also encouraging industrial units across the state to use natural gas as fuel rather than coal due to environmental reasons.

https://www.financialexpress.com/industry/gujarat-gas-eyes-doubling-current-natural-gas-volume-to-cope-up-with-demand/1875555/

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Regulator approves Total’s stake buy in Adani gas

The downstream regulator has approved French energy giant Total’s deal to buy stake in Adani Gas, lifting its shares 13% as investors cheered the end of

uncertainty over the company’s city gas licences since November, when the same authority questioned the transaction and issued a show-cause notice. The Petroleum and Natural Gas Regulatory Board (PNGRB) had objected to restructuring of Adani Gas and the agreed sale of stake in it to Total because there are restrictions on such deals in the first five years after a licence is granted. However, after hearing the GautamAdani-led company’s plea and keeping in mind “the larger public interest”, it “condoned” the delay in seeking its clearance and approved both transactions on Wednesday. PNGRB cited the importance of supplying natural gas to various cities where Adani Gas has a licence, and the value of having a reputed foreign company participate in city gas ventures in India. Adani Gas is one of India’s biggest city gas licence holders, with permits to operate in 19 areas on its own and another 19 jointly with Indian Oil. On October 14, it announced Total’s plan to buy 37.4% stake in Adani Gas through a mix of open offer and purchase from promoters but it sought regulatory approval only on December 23.

https://economictimes.indiatimes.com/industry/energy/oil-gas/regulator-approves-totals-stake-buy-in-adani-gas/articleshow/74234721.cms

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Two more CNG stations in Patna city made functional

Two new compressed natural gas (CNG) stations of the Gas Authority of India Limited (GAIL) were inaugurated in Naubatpur and SagunaMor area of Patna on

Saturday (Feb 15).During inspection, transport secretary Sanjay Kumar Agarwal claimed that three more CNG stations would come up in a couple of months in areas like Gola Road and Digha.“Apart from these, the interstate bus terminal, which is under construction at RamchakBairiya, and the proposed transport complex at Phulwarisharif will also get CNG stations. Besides, lands in other locations like Gandhi Maidan and Bailey Road are being identified for such stations,” the transport secretary said and added that altogether 12 CNG stations would be ready in the city by December-end.At present, three CNG stations are operational at Rukanpura, Transport Nagar and Bakhtiyarpur toll plaza in Patna. The gas supply is done under the City Gas Distribution Scheme, which was launched by Prime Minister NarendraModi in Begusarai on February 17 last year.According to sources, more than 5,000 vehicles, most of which are autorickshaws, are running on CNG in Patna. The remaining 15,000 autos run on diesel and petrol.GAIL’s deputy general manager (Patna region) Rajneesh Goel told this newspaper that the daily consumption of CNG in the state capital was 11,000kg, at present. “Approximately 3,000 vehicles refill their tankers at the three CNG stations every day,” he added.Last year, the state government had decided to ban diesel-run autos in Patna from January 31, 2021 and its adjoining areas from March 31, 2021.

https://timesofindia.indiatimes.com/city/patna/two-more-cng-stations-in-city-made-functional/articleshow/74153271.cms

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CGD authorisation: Supreme Court dismisses appeals of Adani Gas, IMC

The Supreme Court on Monday dismissed appeals by Adani Gas and upheld the Petroleum and Natural Gas Regulatory Board’s decision to grant

authorisation for implementation of city gas distribution (CGD) networks in five geographical areas including districts of Puducherry, Kanchipuram, Chennai and Tiruvallur.A Bench led by Justice DY Chandrachud dismissed the appeals filed by Adani Gas and IMC, holding that the assessment of the reasonability of the bid was a matter solely between the highest bidder and the Board. Such an assessment would not alter the scores of the highest bidder vis-à-vis scores of the other bidders, it said.There is no merit in the submission (of Adani and IMC) that there was a breach of the principles of natural justice in calling only the bidders with the highest composite score to explain the reasonableness of their bids, the apex court said, while disagreeing with the opinion of the Aptel chairperson who ruled in favour of Adani.The PNGRB had conducted its the ninth round of bidding for city or local natural gas distribution networks in September 2018 and approved the bids of three bidders – Consortium of SKN Haryana City Gas Distribution for Puducherry, Consortium of AG&P LNG Marketing for Kanchipuram and Atlantic Gulf & Pacific Company of Manila and Torrent Gas for Chennai &Tiruvallur districts.The Board, however, disqualified Torrent Gas in respect of the reasonableness of its quote for Medchal, Rangareddy and Vikarabad districts and awarded LoI to Megha Engineering & Infrastructure.However, Adani Gas moved the Aptel challenging the Board’s decision to award LoIs, in respect of the three GAs – Puducherry, Kanchipuram, and Chennai &Tiruvallur Districts – on the ground that the successful bids were beyond the unreasonably high limit adopted by the Board and the action of the Board in issuing the LoIs without uploading the decision on the website and without communicating it to Adani Gas was a breach of natural justice.IMC also moved the tribunal against the grant of authorisation by the Board in respect of Kanchipuram.“This is because the Board note was not notified to bidders as a basis for evaluation of bids before the date for the submission of the bids had closed. To disqualify a bidder on the basis of a criterion which was not notified and of which bidders had no knowledge would be arbitrary and would constitute an infraction of Article 14,” Justice Chandrachud said.

https://www.financialexpress.com/industry/cgd-authorisation-supreme-court-dismisses-appeals-of-adani-gas-imc/1871031/

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Maruti Suzuki unveils new WagonR S-CNG, part of Mission Green Million

Taking forward its commitment to offer the widest range of environmentally-friendly vehicles to its consumers, Maruti Suzuki India Limited launched the S-CNG

variant of the BS6 compliant Big New WagonR. This launch is aligned to the company’s ‘Mission Green Million,’ announced at the Auto Expo 2020.“Maruti Suzuki has consistently endeavored to offer sustainable mobility options to customers. With the announcement of Mission Green Million, we have strengthened our commitment towards boosting green mobility in the country. The 3rd generation WagonR is hugely successful and continues the iconic journey of brand WagonR with more than 2.4 millioncustomers. Strong on looks and performance, the new factory fitted S-CNG variant offers a perfect balance of drivability, high-fuel efficiency, enhanced safety and unmatched convenience,” said ShashankSrivastava, Executive Director (Marketing & Sales), Maruti Suzuki India Limited.Maruti Suzuki S-CNG vehicles are equipped with dual interdependent ECUs (Electronic Control Units) and intelligent injection system. Vehicles are factory fitted, and specially tuned and calibrated to deliver optimum performance and enhanced drivability across all kinds of terrains.Initiating its green journey with CNG vehicles, a little over a decade back, Maruti Suzuki now offers an unmatched range of eco-friendly vehicles. Having already sold 1 million green vehicles (including NGVs and hybrids), the automaker aims to sell the next 1 million green vehicles in the next couple of years under its ‘Mission Green Million,’ spearheading their mass adoption across the country.The launch of Maruti Suzuki’s S-CNG vehicle range is also aligned to and complements the Government of India’s vision of reducing oil import and enhancing the share of natural gas in the energy basket of the country from 6.2% now to 15% by 2030.

https://www.ngvjournal.com/s1-news/c3-vehicles/maruti-suzuki-launches-wagonr-s-cng-variant-part-of-mission-green-million/

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Torrent Chennai city gas licence valid, says SC

The Supreme Court has upheld award of city gas licence for Chennai to Torrent Gas, rejecting Adani Gas’ plea that the winner’s “unreasonably high bid”

should have been rejected by the regulator. Torrent had won the licence to lay city gas distribution infrastructure in the Districts of Chennai and Tiruvallur in Tamil Nadu following a competitive bid organised in 2019 by Petroleum and Natural Gas Regulatory Board (PNGRB), the downstream regulator. “This authorisation by PNGRB was challenged by Adani Gas Limited on the ground that the bid of Torrent Gas was unreasonably high and PNGRB ought to have rejected the bid,” Torrent said in statement. The court has rejected all contentions of Adani Gas and dismissed its appeal against the PNGRB’s award, as per the statement. Adani group declined comment for the story. In its judgement on February 17, the Supreme Court “has held that the power to determine the reasonability of the bids resides solely with the PNGRB by virtue of Clause 14.2 of the Bid Document and that PNGRB’s determination on reasonability was neither arbitrary nor violating the principles of natural justice,” as per the statement. The judgement will help begin work on laying city gas infrastructure in Chennai and Tiruvallur, Torrent said.

https://economictimes.indiatimes.com/news/politics-and-nation/torrent-chennai-city-gas-licence-valid-says-sc/articleshow/74201151.cms

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150 CNG buses to ply on Bhopal city roads soon

Public transport in the State capital is all set to go green as the civic body has given a nod to operate 150 CNG buses on the city roads. In a recently meeting

of Board of Directors of Bhopal City Link Limited (BCLL), it was concluded that both low-floor buses and midi buses cause a great amount of pollution. BCLL had proposed purchase of 100 midi buses and 50 CNG buses and the same was discussed in the meeting. But the board of directors reached the conclusion that both low-floor buses and midi-buses cause pollution. Giving example of New Delhi, where CNG buses are plying on the roads, they said that CNG is the future, so BCLL should purchase around 150 CNG buses. The previous proposal was cancelled by them. New tenders would be given to private bus operators for the purchase of new CNG buses. 60 low-floor buses to be equipped with CNG system: BCLL has also decided to install CNG system in sixty low-floor buses, which are already serving the residents of State capital. The system will be installed in ten buses as a pilot project and if the outcomes are positive, the rest 50 buses will also be equipped with the same. CNG pipelines being laid: Pipelines for both CNG and PNG (Piped Natural Gas) are being laid from Rajgarh to Bhopal. The piped natural gas is for the domestic use while CNG will be used commercially. The cost of CNG is low than that of other fuels like petrol and diesel. The CNG filling stations are likely to be set up at ISBT, BaghSewaniya, Kokta and Bairagarh.

https://www.thehitavada.com/Encyc/2020/2/25/150-CNG-buses-to-ply-on-city-roads-soon.html

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GO TOP

Electric Mobility

BSES Yamuna partners EV Motors for EV charging infrastructure

To promote the green mobility in the country, an electric vehicles startup, EV Motors India announced that it has signed anMoU with BSES Yamuna Power Ltd (BYPL)

to set up and operate charging stations for electric vehicles at selected locations under the jurisdiction of BYPL. The joint venture said that this partnership aims to accelerate the adoption of electric vehicles in the city. EVM and BYPL together will create, operate and maintain the EV charging stations using PlugNgo’s innovative cloud-based integrated software platform. BYPL will cater power needs of 1.7 Mn customers in East and Central Delhi the company said in a release. BSES Yamuna Power CEO P R Kumar said, “Charging solutions for EV vehicles is the need of the hour. We are working with strategic partners to facilitate setting-up of charging stations in East and Central Delhi to bring in a change in the mobility landscape.”EV Motors is looking out for a solution that provides a connected network of PlugNgo EV charging stations and a robust software platform which includes a payment system for availing the e-charging facility.This step by both the companies is likely to increase the number of adoption of electric vehicles in the city, the company said, “PlugNgo is committed to reducing dependence on fossil fuel-based vehicles by offering energy-efficient solutions. This tie-up plays a major role in boosting the charging infrastructure in the capital and, in turn, accelerating the adoption of electric vehicles in the city,” EV Motors India CEO, ArvindGujral said.

Source: elctricvehicles.in

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hTata Power plans to set up 700 EV charging stations by 2021

At present the Tata Group Company is having 100 fast-charging stations across various cities like Delhi, Mumbai, Bengaluru, Pune and Hyderabad.

It plans to add 200 more by the end of next month. “We are mapping the locations where EVs are launched and will be setting up charging stations in those cities. Our aim is to take this number to around 700 by next year,” PraveerSinha, chief executive officer and managing director at Tata Power, said. The government’s initiative of reducing the GST rate on EVs to 5 per cent from 12 per cent is expected to make electric cars more affordable to the consumers. Sinha says that Tata Power is not only focusing on public spaces but will also provide home EV charging stations. “We will create infrastructure for home charging as well as public charging like at metro stations, shopping malls, theatres and highway, among others.”Tata Power has also signed anMoU for installing EV charging stations at fuel stations operated by Hindustan Petroleum Corporation Ltd., Indian Oil Corporation Ltd. and Indraprastha Gas Ltd.In Mumbai, the company has already set up 30 charging stations which expects to increase to 200 by the next year. The company’s head for electric vehicles and home automation, SandeepBangia said that these chargers will be from 15 kWh to 30-50 kW standards. It happens when the demand increases he says.

Source: electricvehicles.in

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Four bio-CNG plants to come up in Chennai by June

In a move to boost wet waste processing, the corporation has given work orders to construct four bio-compressed natural gas (bio-CNG) plants.

‘’The plants will come up in Chetpet, Madhavaram, Pallikaranai and Sholinganallur.It would be constructed by June,’’ said an official with the Solid Waste Management Department. While the total estimate is Rs 37.31 crore, each plant will be constructed at a cost of Rs 9.33 crore. While the Chetpet plant will have a capacity of 50 metric tonnes, the other three will be 100 metric tonnes each. ‘’Mostly, fruit and vegetable waste will be processed and could be sent to AmmaUnavagams as a renewable fuel source,’’ said the official.According to research, Bio-CNG is the purified form of biogas where all unwanted gases are removed to produce a high amount of pure methane gas. According to a paper titled ‘Fuelling the future with renewable energy’, published in the website of Union Ministry of New and Renewable Energy (MNRE), due to its high level of methane and less carbon dioxide, bio-CNG can be environmentally friendly with very low emission levels.‘’It has the capacity to replace every utility of LPG and CNG in India and has the potential to be the future of renewable fuel because of the abundance of biomass in the country,’’ says the study. As per the study, bio-CNG has commercial, industrial and automotive values and can be used in restaurants, cement factories, public transport and CNG-fitted vehicles.According to MNRE data, the country has 17 bio-CNG plants out of which, Maharashtra tops with five plants while Tamil Nadu has one.

https://www.energyinfrapost.com/four-bio-cng-plants-to-come-up-in-chennai-by-june/

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Gas/ Pipelines/ Company News

Manoj Jain takes charge as CMD, GAIL

Manoj Jain today assumed charge as Chairman & Managing Director of GAIL (India) Limited. A Mechanical Engineer with an MBA in Operations Management,

Jain joined GAIL as a Graduate Engineer Trainee in 1985 and rose through the ranks to his current position. Before his appointment as CMD, Manoj Jain was Director (Business Development) of the company. Jain possesses rich and diverse experience in the areas of Business Development, Projects, O&M, Petrochemicals, Pipeline Integrity Management and Gas Marketing which has allowed him to gain insight and knowledge across multiple business units and functional areas. Also Read – Exports drop 1.66% to $25.97 bn in January; trade deficit widens As Director (Business Development), he was responsible for building GAIL’s business portfolio in India and abroad, Merger and Acquisition, Petrochemical O&M and Expansion, Exploration & Production, R&D, Start–Up, Health Safety & Environment management, Quality Management, Project Development including feasibility study and investment approval for new pipelines, process plants, renewables, etc.

https://www.millenniumpost.in/business/manoj-jain-takes-charge-as-cmd-gail-400713

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French energy giant Total acquires 37.4% in Adani Gas for Rs 5,152 crore

French energy giant Total on Friday (Feb 28) acquired 37.4% stake in Gautam Adani-led Adani Gas, in a bulk deal worth Rs 5,152 crore.

Through the deal, Total Holdings SAS bought a stake from several Adani Group companies — including Adani Tradeline, Afro Asia Trade and Investments, S B Adani Family Trust, Universal Trade and Investments and Worldwide Emerging Market Holding. In October last year, Total had announced its plans to buy Adani Group’s stake in Adani Gas through a mix of open offer and purchase from promoters. It was only on February 21 this year that the deal got the approval of the Petroleum and Natural Gas Regulatory Board (PNGRB). The downstream regulator had raised doubts and issued a show cause notice, given there were restrictions in the restructuring of city gas distribution (CGD) companies within five years of the licence being granted. The nod to PNGRB was given considering the importance of foreign participation in the CGD segment, and the need to expand the country’s network. Total had said late last year that CGD was a natural extension of the plans of both partners to invest in infrastructure and assets worth over $1 billion, which included Liquefied Natural Gas (LNG) infrastructure, as well as the marketing and fuel retail business. Adani Group has city gas network operational in five cities, and has 84 compressed natural gas (CNG) stations in these areas. It is also in the process of setting up a network in 14 other geographical areas (GA). It has eight operational GAs in a joint venture with Indian Oil Corporation (IOC), while 11 are in the implementation stage. Adani Gas is also planning to set up 1,500 fuel stations, offering top-of-the-line products in the coming years. The expanded partnership will develop regasification terminals, including Dhamra LNG, on the east coast of India.

https://www.business-standard.com/article/companies/french-energy-giant-total-acquires-37-4-in-adani-gas-for-rs-5-152-crore-120022900024_1.html

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Gas-based economy: GAIL to invest `1.05L cr to create infra

GAIL India Ltd, the country’s largest gas utility, will invest Rs 1.05 lakh crore over the next five years to expand pipelines, lay city gas distribution network and

raise petrochemical production capacity, its new chairman and managing director Manoj Jain said on Monday (Feb 24). Gas pipelines are planned to take the fuel to the east and northeast regions as well as to consumers in the south as part of the government push to raise the share of natural gas in India’s energy basket to 15 per cent by 2030 from the current 6.2 per cent, he said. “We have planned a capex of Rs 45,000 to Rs 50,000 crore in laying pipelines, Rs 10,000 crore petrochemical capacity expansion and another Rs 40,000 crore for city gas distribution (CGD) business,” he told reporters here. GAIL’s push for infrastructure creation is in line with Prime Minister NarendraModi’s vision of creating a gas-based economy that is less reliant on polluting fuels for meeting its energy needs. India currently consumes some 160 MMSCMD of gas and the consumption has to rise to 600 MMSCMD to reach 15% share in the energy mix, and GAIL is laying the infrastructure to help achieve that. At present, GAIL operates 12,160-km of pipeline network and markets two-thirds of all-natural gas sold in the country. It will add about 7,000 km of pipeline length in the next five years, Jain said. The company is scaling up on liquefied natural gas (LNG) import capacity. Besides owning a part of Petronet LNG Ltd, India’s biggest liquid gas importer, it also owns and operates a 5 MMT LNG import facility at Dabhol in Maharashtra. “We have awarded the contract for construction of a breakwater at Dabhol to L&T and this should get completed in two-and-half-years. The completion will help operate the Dabhol terminal at its full capacity of 5 MMTPA,” he said. Also, the company has booked capacity at Adani Group’s upcoming terminal at Dhamra in Odisha, Jain noted. Domestic gas production meets just half of the country’s demand and the rest has to be imported. Pipeline projects at hand include the ambitious Urja Ganga Project to take gas to Bihar, West Bengal, Odisha, and Jharkhand as well as Kochi-Kootanad-Bangalore-Mangalore line; and Indradhanush North East Gas Grid. Besides pipelines, GAIL is also expanding city gas distribution (CGD) networks for retailing of CNG to automobiles and piped natural gas to household kitchens, he said, adding investments are also planned for the expansion of Pata petrochemical plant in Uttar Pradesh as well as converting a LPG recovery unit at Usar in Maharashtra into 5,00,000 tonnes Polypropylene plant. GAIL is looking to put up 400 CNG stations and give out a record 10 lakh piped natural gas (PNG) connections to household kitchens in the next 3-5 years. GAIL has commenced city gas operations in all the six geographical areas (GAs), including in Patna and Bhubaneshwar, that was awarded to it along the Urja Ganga route, Jain said. The pipeline will be extended to Guwahati by laying an additional 750-km line. At Guwahati, it would interconnect with the upcoming 1,500-km ‘Indradhanush’ pipeline network conceived to operate in the northeast region by the public sector oil and gas majors. GAIL will also lay a 600 km Srikakulam-Angul natural gas pipeline.

https://www.millenniumpost.in/business/gas-based-economy-gail-to-invest-105l-cr-to-create-infra-402473?infinitescroll=1

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ONGC Q3 net halves to Rs 4,152 cr after fall in oil, gas prices, production

Standalone net profit in October-December at Rs 4,152 cr was 49.8% lower than Rs 8,263 cr net profit in the same period of the previous fiscal year.State-owned Oil

and Natural Gas Corp (ONGC) on Friday (Feb 14) reported halving of its December quarter net profit after it faced the double whammy of falling oil and gas prices and a drop in production.Standalone net profit in October-December at Rs 4,152 crore was 49.8% lower than Rs 8,263 crore net profit in the same period of the previous fiscal, the company said in a statement.The firm got 10% lower price at USD 59.73 for the crude oil it produced and 4% lower rate for natural gas at USD 3.23 per MMBtu. Lower oil prices led to revenues dropping 14.4% to Rs 23,710 crore in the third quarter of current fiscal.ONGC said oil production was 1% lower at 4.82 MMT in the October-December quarter, while gas output saw 8.4% reduction at 5.875 BCM.It did not give reasons for the drop in production. Most of the fields it operates are old and are well past their prime. A natural decline in production has set in fields such as Mumbai High and Bassein in western offshore.ONGC said it has made 10 discoveries of oil and gas in the current fiscal. These include six new prospects and four extensions of previous finds.The discoveries include oil and gas finds in Mumbai High and a gas discovery in KG Onland block.For April-December, the company reported a 28% drop in net profit to Rs 16,319 crore and a near 10% fall in revenues to Rs 82,896 crore.Consolidated profit, after including earnings of listed subsidiaries such as Hindustan Petroleum Corp Ltd (HPCL) and Mangalore Refinery and Petrochemicals Ltd, was 43.7% lower at Rs 5,384 crore in October-December and 35% lower at Rs 17,913 crore in April-December 2019.Revenues were 6.7 % lower at Rs 109,443 crore in the third quarter and 6% lower at Rs 3,20,512crore in the first nine months of current fiscal. Both HPCL and MRPL are listed and their earnings are reported separately.

https://www.business-standard.com/article/pti-stories/ongc-q3-net-halves-on-fall-in-oil-gas-prices-output-120021401592_1.html

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RIL, Shell liability to Governmentmay drop in PMT case

Reliance Industries (RIL) and partner Shell’s liability to the government may fall in the Panna, Mukta and Tapti (PMT) case after an English court passed an order

favouring the two companies on some aspects of the ongoing arbitration proceedings, sources familiar with the development said.The order is one step but not the final one toward the conclusion of a decade-old dispute between the government and joint venture partners RIL and Shell (formerly BG Exploration) over the state’s share of income from the PMT fields.“We cannot comment as the court processes in various jurisdictions are still ongoing,” a Shell spokesperson told ET. “The eventual impact of these processes will only be clear upon conclusion of the arbitration process. We are not in a position to state anything further at this stage.” RIL didn’t respond to ET’s emailed query.The arbitration tribunal is slated to hear some key issues next month in London. The matter has gone from the tribunal to the court and back several times now. The latest court order pertains to the so-called ‘agreement case’, where the tribunal had fixed certain development costs in its revised award, which both the government and the two companies challenged in the court. .In October 2016, the arbitration tribunal pronounced a final partial award that went largely in favour of the government, following which the oil ministry computed the three oil companies’ liability and directed them in May 2017 to pay $3.9 billion. The companies refused to pay, saying the award had been challenged in an English court and the liability not yet quantified by the tribunal.The government, which went to the Delhi High Court to enforce the award, has also urged the court to restrain the sale of assets by RIL until the money needed to pay up its liability in the PMT case is secured.

https://economictimes.indiatimes.com/industry/energy/oil-gas/ril-shell-liability-to-government-may-drop-in-pmt-case/articleshow/74144029.cms

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Falling LNG rates may hit discoveries: Industry executives

A decline in global liquefied natural gas (LNG) rates to record lows will put to risk domestic discoveries that require high prices to be viable and justify

the development, industry executives said. For years, domestic producers cited high LNG prices to justify their demand for ma rates for local produce. Price restriction on local gas from difficult terrains was lifted years ago, encouraging investments in such fields but now when the rewards are to be reaped, LNG prices have fallen, hurting local prices. LNG rates have fallen below $4MMBtu from above $10 just six years ago. The coronavirus outbreak in China has amplified the fall, cutting spot rates by a third in a month. In November, when RIL-BP offered 5 MMSCMD of gas proposed to be produced from its KG Basin field, the prices quo the auction were very close to the floor rate fixed by producers. The floor itself had lowered before the auction as potential bidders found it too high. Around the same time ONGC had to conduct two rounds of auction just to sell 0.75 MMSCMD. “The market has turned against us. Prices are expected to remain low for a longer period which makes it hard to justify developing some of the domestic discoveries, which were probably viable only with gas prices above $4 or $5 per unit,” said an executive at upstream firm who didn’t want to be named. Most of India’s new gas discoveries lie in difficult terrains and are going to be costly to develop, and therefore need higher prices to justify their development, said another. ONGC, Reliance and Vedanta didn’t respond to ET’s emailed query for the story. Another challenge to Indian upstream players would come from fields abroad that reserves globally are now estimated to be in fields with average breakeven prices Gas Union’s Global Gas Report.

https://economictimes.indiatimes.com/industry/energy/oil-gas/falling-lng-rates-may-hit-discoveries-industry-executives/articleshow/74310440.cms

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Policy Matters/ Gas Pricing/Others

Gas prices may be cut by 25%

Natural gas prices in India are likely to be cut by a steep 25% beginning April, in line with the slump in global rates, sources said.The price of most of the natural gas

produced by state-owned ONGC and Oil India Ltd, which account for the bulk of India’s existing gas output, is likely to be cut to around $2.5 per MMBtu for the six-month period beginning April 1, from $3.23 per MMBtu.This will be the second reduction in six months and will reduce rates to the lowest in two-and-half-years.Sources said the price of gas produced from difficult fields, too, is likely to be cut to $5.50 per MMBtu from $8.43 per MMBtu now. Prices of natural gas, which is used to produce fertiliser and generate electricity and is also converted into CNG for use in automobiles as fuel and cooking gas for households, are set every six months — on April 1 and October 1 each year.The rates, besides dictating the price of urea, electricity and CNG, also decide the revenue of gas producers such as Oil and Natural Gas Corp (ONGC).Natural gas price was last cut by 12.5% on October 1. Rates were cut to $3.23 per MMBtu from $3.69 per MMBtu.For difficult fields, the rates were cut from an all-time high of $9.32 per MMBtu to $8.43 perMMBtu.Sources said the reduction would impact the revenues of ONGC as well as Reliance Industries and its partner BP plc which plan to start gas production from their second-wave of discoveries in eastern offshore KG-D6 block from mid-2020.

https://www.telegraphindia.com/business/gas-prices-may-be-cut-by-25/cid/1747978

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‘Gas Warrior’ seeks to convert India’s steel mills to spur use

GAIL India Ltd., the nation’s biggest gas utility, is in talks with Indian steel mills to convince them to switch to using the less polluting fuel in an attempt

to revive sales growth. The shift to gas will mean a sweeping transition in a country that depends largely on oil and coal for energy. The New Delhi-based company is counting on the global push for factories to seek less polluting fuels to drive that change, AshutoshKarnatak, director of projects at the state-run utility said in an interview. For GAIL it’s crucial to find new clients as demand from its biggest customers – power plants – wanes. The company has the backing of Prime Minister NarendraModi, who has set a goal to reduce the emissions intensity of the economy as well as curb the severe air pollution that chokes large swathes of the country’s urban landscape. Modi is pushing for a gas-based economy, where the fuel is seen more than doubling its share in the energy mix to 15% by 2030. “There is a lot of pressure on these industries because of climate change and we are offering them a solution to convert to gas,” Karnatak, who calls GAIL a “gas warrior,” said. “Oil use can’t be wiped out, and neither can be coal. But we want gas and renewables to increasingly replace the dirty fuels.” Reaching the target would require India’s daily gas consumption to increase to 450 million standard cubic meters from about 150 million, Karnatak estimates. That’s a daunting task for a country with inadequate pipeline infrastructure and customers who are sensitive to prices. Still catching up! India’s power utilities are instead using more coal. They bought a record 608 million tons of the fuel in the year ended March, 8.4% more than a year earlier, government data show, while gas use dropped. GAIL’s revenue is poised to drop 19% in the year ending March 31, according to median estimate of seven analysts surveyed by Bloomberg. The company is in talks with Steel Authority of India Ltd. and has approached Tata Steel Ltd. to convince them about the benefits of switching to gas, he said. Challenges to gas “There is a lot of scope for replacing coal with natural gas in India’s iron and steel sector, but affordability will be key to that transition,” said A. C. R. Das, a metallurgist and a former adviser to the steel ministry. “If gas becomes available at an affordable price, the plants will be willing to make that switch.” Supply of regulated domestic gas, which declined almost 4% from a year earlier to $3.23 per million British thermal units for the half year ending March, is scarce and generators find other sources of the fuel too expensive. The target of raising share of gas is “achievable even by 2025-26, but it needs a concerted effort from all the stakeholders,” Karnatak said. “We have transformed ourselves into gas warriors.”

https://economictimes.indiatimes.com/industry/energy/oil-gas/gas-warrior-seeks-to-convert-indias-steel-mills-to-spur-use/articleshow/74190036.cms

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BPCL divest initial bids only after decision on co’s JVs

The government is still in the process of deciding the future of Bharat Petroleum Corp Ltd’s stake in joint ventures of the state-owned refiner ahead of inviting expressions

of interest to privatise the company, a senior finance ministry official said.The government plans to sell its entire 52.98% stake in Bharat Petroleum Corp to a private sector investor. The Union Cabinet had accorded its in-principle approval to strategic disinvestment of Bharat Petroleum Corp in November. The government expects to garner more than 600 bln rupees from selling its stake in the refiner, which would be key in meeting next fiscal’s disinvestment target of 2.10 trln rupees.Though the Cabinet had decided to keep Numaligarh Refinery Ltd out of the divestment, it is still to decide on the future of other subsidiaries and joint ventures.The government is keen to offer Bharat Petroleum Corp’s stake in as many joint-ventures as possible to the new buyer as it would enhance the valuation. In cases where the government may be eager to keep any particular joint venture under the control of public sector undertakings, it would ask another PSU to buy Bharat Petroleum Corp’s stake in the joint venture, the official said.As quite a few of Bharat Petroleum Corp’s joint ventures are with other state-owned companies and its arms also have joint investments with other PSUs, the government is working to ascertain which joint ventures and arms should be carved out of the Bharat Petroleum Corp umbrella before the sale. For instance, Bharat Petroleum Corp owns 12.5% stake in Petronet LNG and is part of the company’s promoter group, which consists of three other oil and gas PSUs. In city gas distribution player Indraprastha Gas Ltd, Bharat Petroleum Corp as well as state-owned GAIL (India) Ltd own 22.5% stake each. Bharat Oman Refineries–a joint venture between Bharat Petroleum Corp and Oman Oil Co S.A.O.C.–owns and operates a refinery in Madhya Pradesh.Bharat Petroleum Corp’s upstream arm Bharat PetroResources Ltd has a number of joint investments with other oil and gas PSUs in a number of overseas oil and gas projects, which are of strategic importance to India.

https://www.cogencis.com/newssection/chome/bpcl-divest-initial-bids-decision-jvs/

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LNG Development and Shipping

Petronet launches India’s first commercial LNG bus

Petrol and diesel have been the main sources of fuel and people have realised they are a major source of air pollutants as well. So, the government’s policy is to

popularise alternative fuels like liquefied natural gas (LNG) and compressed natural gas (CNG), said Transport Minister A K Saseendran here on Thursday (Feb26).“Giving discounts or special packages to owners of LNG buses can be considered,” he said while flagging off India’s first commercial LNG bus by Petronet LNG Limited, for the commuting purpose of its employees. LNG is the least-polluting fuel and Petronet has set an example by launching LNG-powered buses. Fitted with a 180-kg Cryogenic Tank, the bus can travel up to 900 km in a single filling. “The efficiency of LNG is 1.5 times better than diesel. While CNG costs `57 per kg, LNG can be bought at `40-`45 per kg. This is 25-30 per cent cost-efficient when compared to diesel,” said Sajeev Nambiar, senior manager, Petronet LNG Limited, Kochi. The company is planning to open 28 LNG dispensing stations in the country and four will be in Kerala — Kochi, Thiruvananthapuram, Edappal and Kannur. “We are aiming at buses and heavy trailers. LNG is suitable for long services and opening stations at these four stations will help the purpose,” said Sajeev. The stations will be set up in a year. With the completion of GAIL pipeline project, the efficiency of Petronet will be increased to 40-50 per cent. According to Sajeev, the Kerala State Road Transport Corporation also plans to introduce LNG buses, which will revolutionise the public transport sector.“More than the sale of LNG, what we focus on is to reduce air pollution. More LNG vehicles will be on the streets in the coming years and our environment will be free from pollution,” he said.

https://www.newindianexpress.com/cities/kochi/2020/feb/28/petronet-launches-indias-first-commercial-lng-bus-2109516.html

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India set to import record LNG volumes as spot prices slump on virus impact

India is set to import record volumes of LNG this month, data shows, taking advantage of the super-chilled fuel’s price hitting all-time lows due to the coronavirus outbreak dampening demand in China.

The South Asian nation is estimated to import about 2.36 MMT in February, shiptracking data from RefinitivEikon showed. That would exceed India’s LNG imports in October of about 2.3 MMT, the previous highest monthly total.The country’s annual LNG imports is expected to rise by 10%-15% this year, said PoornaRajendran of consultancy firm FGE.“The low spot prices are creating some downstream demand especially from the city-gas sector,” a source familiar with LNG imports into India told Reuters. India regasifies LNG and uses it primarily in the city-gas distribution, fertilizer, power and industrial sectors.Asian spot LNG prices fell to a record low this month after China’s top LNG buyer declared force majeure on some LNG deliveries following the coronavirus outbreak.That prompted some of the cargoes bound for China to be diverted to India and also some Indian buyers to issue tenders seeking spot cargoes, traders said. Some of them are even seeking cargoes for several months, they added.For instance, Reliance Industries issued a tender seeking five cargoes for April to June delivery while Gujarat State Petroleum Corp (GSPC) sought nine cargoes for February to April, traders said. GSPC likely did not award the tender, however, and may have re-issued it, the traders said.The potential uptick in demand also likely prompted Emirates National Oil Company (ENOC) to issue a tender seeking eight cargoes for delivery into India over April to November, the traders said.Infrastructure constraints, however, will limit LNG purchases by buyers in India, FGE’s Rajendran said.“While weakness in Asian spot LNG prices will increase India’s appetite for prompt LNG imports, infrastructure constraints will limit LNG demand growth,” he said.“This remained a key bottleneck in 2019 when low spot prices struggled to boost India’s LNG demand significantly. The start-up of Mundra LNG terminal and H-Energy’s Jaigarh terminal and the completion of GAIL’s Kochi-Mangaluru pipeline will determine Indian LNG demand growth in 2020.”India wants to raise the share of gas in its energy mix as it battles high levels of pollution in many big cities and is working to expand its pipeline network and build new terminals.

Source: LNG Global

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India’s GAIL says sustained cheaper spot LNG prices are the biggest risk

India’s top gas utility GAIL (India) Ltd sees the falling spot price of liquefied natural gas (LNG) as the biggest risk to its business, its chairman Manoj Jain said on

Monday (Feb24).Spot prices of LNG LNG-AS in Asia hit a record low around $3 per MMBtu this month, making supplies of gas under previously agreed long-term deals unattractive for some price sensitive customers in India.GAIL over-committed to new LNG volumes through long-term deals with the U.S. and Russia earlier this decade when supply was scarce and buyers rushed to secure deals. Spot prices at that time were in the double-digits.“The biggest risk is about the present prices of gas…The gap between spot and long-term is widening and that is a cause of concern for us,” Jain said as he addressed the media for the first time since becoming chairman last week.He said GAIL had resold most of its LNG purchases under the long-term deals but up to 30% was still an open position.“The prices are down in the spot (market) and if it takes a longer period to reach to a viable level then there would be significant risk”.GAIL renegotiated its contract with Gazprom in 2018, and the Indian oil minister at end-2017 told lawmakers that the company was looking at renegotiating contracts with U.S. companies.“We are looking at it and at an appropriate time we will make a commercial call,” Jain said, when asked if his company would renegotiate deals with the U.S. and Gazprom.“There is a need to realign the long-term contracts looking at the current situation”.GAIL expects India’s annual gas demand growth to double to 6%-8% in 3-4 years by which time new gas pipelines will be laid to connect industries and households, Jain said, adding cheaper spot LNG has already attracted some power plants to the cleaner fuel.

https://www.hellenicshippingnews.com/indias-gail-says-sustained-cheaper-spot-lng-prices-are-the-biggest-risk/

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Exxon Mobil, IOC ink pact to transport gas

Global energy major Exxon Mobil and Indian Oil (IOC) have signed an agreement to help deliver natural gas in containers to Indian cities outside the pipeline network.

The move can significantly increase the use of the clean fuel in the country, and deepen the rapidly growing US-India energy ties.The US has emerged as an important energy supplier for India, with total crude oil and liquefied natural gas (LNG) imports worth an estimated $6.7 billion, officials said. Imports of the two commodities in April-December 2019 have already surpassed the shipments during the entire previous fiscal year.Chart Energy & Chemicals – a US company specialising in the supply chain of liquefied gas – will also be a part of the “letter of cooperation” along with ExxonMobil India LNG and state-run IOC, coinciding with US President Donald Trump’s visit to India. Exxon’s Indian arm. By linking our global expertise with other leading players, we can create strong and reliable pathways for gas to move quickly and efficiently to where it is needed,” Alex Volkov, chairman of ExxonMobil LNG Market Development said in a statement.Natural gas, which liquefies at minus 162 degrees Celsius, can be transported by road, rail or waterways. Advanced cryogenic technology is needed to keep the gas super-cooled in transit. The partners hope to make “virtual pipelines” to fuel factories, households and vehicles in cities not connected to the gas grid.The agreement is expected to help India achieve its target of raising the share of gas in the energy basket to 15% in 10 years, from 6.2% now.

https://auto.economictimes.indiatimes.com/news/oil-and-lubes/exxon-mobil-ioc-ink-pact-to-transport-gas/74292962

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Gail India buys LNG cargo for February delivery – sources

Gail (India) has bought a liquefied natural gas (LNG) cargo for delivery in February, three industry sources said on Friday (Feb14).It bought the cargo for

delivery into Dabhol, India, on a delivered ex-ship (DES) basis for Feb. 23 to 28 delivery at $2.40 to $2.50 per MMBtu, the sources said.This is likely a new record low price for cargoes delivered into India, they said.Gail separately sold a cargo from Cove Point plant in the United States on a delivered ex-ship basis into Europe for a February to March delivery, and likely did not award another cargo it had offered for loading in April from Cove Point, one of the sources said.Companies typically do not comment on their spot deals.

https://www.hellenicshippingnews.com/gail-india-buys-lng-cargo-for-february-delivery-sources/

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Petronet eyeing opportunities to source LNG across the globe including Tellurian

Petronet executives told analysts the non-binding agreement with Tellurion expires on 31 March and while there is progress, the company is not in a position to

reveal further details.With global Liquefied Natural Gas (LNG) spot cargo falling to record levels on the back of a supply glut and demand contraction, Petronet LNG Ltd, India’s largest importer of natural gas is looking at investment opportunities across the globe, including Tellurian’s Driftwood LNG terminal, for sourcing LNG for India at the cheapest possible price, company executives told analysts.“Tellurian is one of the parties, we are looking at opportunities across the globe. It is not as if only Tellurian is there. We are looking at procuring LNG for India at a very reasonable price. This is our objective,” an executive said in an interaction post the third quarter financial results. “If you look at the spot market, LNG is available between $3-4 per mmbtu. So, we are trying to get LNG at the cheapest price available in the market. Whosoever is there across the globe we are looking forward to the opportunity, it may be anywhere, and Tellurian is one of them,” he said.US’ Tellurian and India’s Petronet had signed a non-binding agreement last year in Houston in the presence of Prime Minister NarendraModi. According to that pact, Petronet is expected to invest $2.5 billion in Tellurian’s proposed Driftwood LNG export terminal, in exchange for the rights to 5 million metric tonnes of LNG per year over 40 years.Petronet executives told analysts the non-binding agreement with Tellurion expires on 31 March and while there is progress, the company is not in a position to reveal further details. US President Donald Trump is expected to visit India next week. Both the countries are expected to sign bilateral agreements and some form of announcement is expected on the Petronet-Tellurian deal, too.The executives also informed the company, along with the oil ministry, has initiated talks with Qatar’s RasGas for renegotiation of LNG prices. “We would like to engage in negotiation because looking at the gap between spot and long-term LNG prices it is inevitable that we should invoke this kind of thing. If we do not do then certainly it is not in tandem with the market,” Petronet executives said. The company plans to spend around Rs 350 crore as capex next financial year. Of this, Rs 126 crore will be spent initially on setting up LNG stations on the Delhi-Mumbai expressway.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/petronet-eyeing-opportunities-to-source-lng-across-the-globe-including-tellurian/74183842

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Tamil Nadu: AG&P breaks ground to set up LNG Terminal at Karaikal Port

The ground breaking ceremony for setting up an LNG Import facility by AG&P (Atlantic Gulf and Pacific Company of Manila) at Karaikal Port was held in the

presence of top government and senior company officials here on Thursday. The LNG Import facility at Karaikal Port in Puducherry in coming up on a 12 hectare site and is expected to commence commercial operations by fourth quarter of 2021, officials said. Puducherry Chief Minister V Narayanaswamy, AG&P Group, chief executive officer JM Sigelman, Karaikal Port CEO Muralidharan took part in the ground breaking ceremony. The new terminal on becoming operational would provide natural gas to power plants besides industrial and commercial operations within a 300kms radius. Karaikal LNG would serve the gas networks of AG&P and other city gas companies that bring CNG and LNG to vehicles and piped natural gas to households and other establishments, company officials said. “AG&P is deeply honoured to have the opportunity to bring Karaikal LNG to fast-growing and dynamic Southeast India. It will become a landmark infrastructure development for the region,” AG&P CEO, JM Sigelman said. Karaikal LNG is a cornerstone project for Puducherry, Tamil Nadu and Karnataka that would provide clean and affordable fuel, he said. AG&P Terminals and Logistics President KarthikSahtyamoorthy said “with the addition of LNG import terminal, Karaikal Port will become a gateway for the delivery of cleaner and lower-cost fuel to downstream demand centres.” “Our goal is to bring down the unit cost of regasification terminals for smaller volumes to make LNG commercially viable for customers,” he said. Karaikal LNG Terminal would have an initial capacity of one million tonnes per annum and include a floating storage unit leased through a long term agreement with ADNOC Logistics and Services from 2021 to provide an efficient solution that would enable supply of clean fuel to customers. AG&P is one of the largest players in the gas sector and has set up city gas distribution networks across Tamil Nadu, Andhra Pradesh, Kerala, Karnataka and Rajasthan.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/tamil-nadu-agp-breaks-ground-to-set-up-lng-terminal-at-karaikal-port/74234687

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India’s Petronet explores buying LNG under 10-year contract

India’s Petronet LNG , the country’s largest importer of LNG, is looking to buy the super-chilled fuel through a long term contract starting from 2024, according to

a document reviewed by Reuters.It has issued a Request for Information (RFI) indicating an interest to buy about 1 MMTPA of LNG for 10 years starting from 2024, with the possibility to extend, according to the Feb. 19 document.A request for information is a common practice to ask for written information about the capabilities of various LNG sellers to help them make more informed buying decisions.Petronet’s request comes amid a trend among LNG buyers to move away from long-term contracts with fixed pricing to shorter contracts with lower volumes and more flexible terms. However, Indian companies have sought longer contracts as they expect domestic gas demand to increase.The cargoes will be bought on a price formula linked to both Henry Hub natural gas futures in the United States and Dutch TTF gas futures and shipped on a delivered ex-ship (DES) basis, the document showed.Indian companies typically price their LNG contracts on an oil-linked basis while some are tied to the Henry Hub, two sources familiar with LNG imports into India said. Contracts priced on a TTF basis are rare, the sources added.Petronet is asking for suppliers to provide information related to the delivery and pricing of cargoes as well as flexibility that the suppliers can provide, including volumes and destination, the document stated.Suppliers must respond by Feb. 26 and Petronet will shortlist the five most competitive suppliers.The Indian company will analyse supply offers as well as potential LNG terminal investments if required by the suppliers.The South Asian country is expanding its pipeline network and building new LNG import terminals to encourage the use of cleaner fuel.
Petronet has appointed consultancy Berkeley Research Group as an advisor, the document said.

Source: ET Economictimes

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INTERNATIONAL NEWS

Natural Gas / Transnational Pipelines/ Others

Natural gas prices fall to lowest level since 2016, the lowest February prices in 20 years

This winter, natural gas prices have been at their lowest levels in decades. On Monday, February 10, the near-month natural gas futures price at the

https://www.hellenicshippingnews.com/natural-gas-prices-fall-to-lowest-level-since-2016-the-lowest-february-prices-in-20-years/

New York Mercantile Exchange (NYMEX) closed at $1.77 per MMBtu. This price was the lowest February closing price for the near-month contract since at least 2001, in real terms, and the lowest near-month futures price in any month since March 8, 2016, according to Bloomberg, L.P. and FRED data.In addition, according to Natural Gas Intelligence data, the daily spot price at the Henry Hub national benchmark was $1.81/MMBtu on February 10, 2020, the lowest price in real terms since March 9, 2016. Henry Hub spot prices have ranged between $1.81/MMBtu and $2.84/MMBtu this winter heating season (since November 1, 2019), generally because relatively warm winter weather has reduced demand for natural gas for heating. Natural gas production growth has outpaced demand growth, reducing the need to withdraw natural gas from underground storage. Dry natural gas production in January 2020 averaged about 95.0 billion cubic feet per day (Bcf/d), according to IHS Markit data. IHS Markit also estimates that in January 2020 the United States saw the third-highest monthly U.S. natural gas production on record, down slightly from the previous two months. IHS Markit estimates that U.S. natural gas consumption by residential, commercial, industrial, and electric power sectors averaged 96 Bcf/d for January, which was about 4.4 Bcf/d less than the average for January 2019, largely because of decreases in residential and commercial consumption as a result of warmer temperatures. However, IHS Markit estimates that overall consumption of natural gas (including feed gas to liquefied natural gas (LNG) export facilities, pipeline fuel losses, and net exports by pipeline to Mexico) averaged about 117.5 Bcf/d in January 2020, an increase of about 0.2 Bcf/d from last year. This overall increase is largely a result of an almost doubling of LNG feed gas to about 8.5 Bcf/d. Because supply growth has outpaced demand growth, less natural gas has been withdrawn from storage withdrawals this winter. Despite starting the 2019–20 heating season with the third-lowest level of natural gas inventory since 2009, by January 17, 2020, working natural gas inventories reached relatively high levels for mid-winter. The U.S. Energy Information Administration’s (EIA) data on natural gas inventories for the Lower 48 states as of February 7, 2020, reflect a 215 Bcf surplus to the five-year average. In EIA’s latest short-term forecast, more natural gas remains in storage levels than the previous five-year average through the remainder of the winter.

According to the National Oceanic and Atmospheric Administration (NOAA), January 2020 was the fifth-warmest in its 126-year climate record. Heating degree days (HDDs), a temperature-based metric for heating demand, have been relatively low this winter, which is consistent with a warmer winter. During some weeks in late December and early January, the United States saw 25% to 30% fewer HDDs than the 30-year average. This winter, through February 8, residential natural gas customers in the United States have seen 11% fewer HDDs than the 30-year average.

Source: LNG Global

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Southern Gas Corridor could be used for exports to Europe from other Caspian countries

Southern Gas Corridor could also be used for gas exports to Europe from other Caspian countries, Francis Perrin, Senior Fellow at the Policy Center for the New

South (PCNS, Rabat) and at the French Institute for International and Strategic Affairs (IRIS, Paris), told Trend.“Thanks to the Southern Gas Corridor (SGC), which comprises the South Caucasus Pipeline, the Trans-Anatolian Pipeline (TANAP) and the Trans-Adriatic Pipeline (TAP), the European Union (EU) will begin in 2020 to import natural gas produced in the Caspian Sea. Gas from Azerbaijan will flow through Turkey, Greece, Albania, the Adriatic Sea and Italy (Azerbaijani gas is already being marketed in Turkey with TANAP),” he said.Perrin noted that the completion of the SGC project in 2020 will allow the EU to import gas from the Caspian region for the first time.“European countries will at the same time increase their gas imports and diversify the sources of these imports. It is also a new import route. For the European Union the diversification of its gas supplies is a global concept which includes new countries, new producing companies and new export routes and the SGC meets all these requirements. Of course the gas volumes are not huge as the starting capacity for TANAP is 16 BCM per year, of which 6 BCM for Turkey and 10 BCM for the EU,” noted the expert.He pointed out that according to future gas demand in Turkey and in the EU the capacities of the SGC could be increased.“And the SGC could also be used for gas exports to Europe from other Caspian countries, especially Turkmenistan. The Trans-Caspian Gas Pipeline project is an example,” said Perrin.He noted that beyond the SGC European needs for more Caspian gas in a long-term horizon will also depend on the degree of priority that the EU will assign to gas in its future energy choices.“A key issue for the mid-term and long-term future is the place that the EU will grant to natural gas in its future energy mix. Gas is a fossil fuel of course but its use generates less carbon dioxide than oil and much less than coal. This energy source could thus have a bright future in a world in which the carbon constraint will become more and more important in order to fight climate change. But the EU is putting a strong emphasis on renewable energies, some countries (France in particular) have a lot of nuclear reactors and coal remains very competitive. Gas could be squeezed between the rise of renewables (wind and solar energies in particular) and the resistance of coal in the European power mix. EU countries have disagreements about natural gas and it could have an impact on gas prospects in Europe,” said the expert.The Southern Gas Corridor is one of the priority projects for the EU and envisages the transportation of 10 billion cubic meters of Azerbaijani gas from the Caspian region through Georgia and Turkey to Europe.

The launching ceremony of the first stage of the Southern Gas Corridor was held in Baku on May 29, 2018, while opening ceremony of TANAP’s Phase 0 was held on June 12, 2018 in the Turkish city of Eskisehir. TANAP-Europe connection was opened on Nov.30, 2019 in Ipsala, Edirne, Turkey.Trans-Adriatic Pipeline (TAP) and Trans-Anatolian Natural Gas Pipeline (TANAP) were connected on the Turkish-Greek border.

https://www.hellenicshippingnews.com/southern-gas-corridor-could-be-used-for-exports-to-europe-from-other-caspian-countries/

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U.S. shale oil output to rise to record, natural gas output to drop in March

U.S. shale oil output is expected to rise by about 18,000 barrels per day (bpd) in March to a record 9.18 million bpd, driven by gains in the Permian Basin,

data from the U.S. Energy Information Administration showed.Still, output is expected to remain flat or decline in six out of seven major shale formations. U.S. natural gas output in the big shale basins was projected to decrease for a third straight month in March, posting the biggest drop since January 2019, the data showed.The Permian and Bakken regions have been the biggest drivers of a shale oil boom that helped make the United States the biggest oil producer in the world, ahead of Saudi Arabia and Russia.However, the rate of growth has slowed as independent producers cut spending on new drilling and completions to focus more on improving earnings results.Oil production at the largest formation, the Permian Basin of Texas and New Mexico, is expected to rise 39,000 bpd to a new record of 4.86 million bpd. That would be the smallest monthly increase since September, the data showed.Production from North Dakota and Montana’s Bakken region is expected to fall – for the fourth straight month – by about 2,000 bpd to about 1.47 million bpd.U.S. natural gas output from shale formations is expected to drop by about 0.2 billion cubic feet per day (bcfd) to 85.4 bcfd in March.Natural gas output in the Appalachia region, the biggest U.S. shale gas formation, was set to decline by 0.2 bcfd to 33.13 bcfd in March. That would mark the fourth straight month of declines.In the Permian, gas output is expected to jump by about 0.2 bcfd to a new record of 17 bcfd in March.EIA said producers drilled 1,014 wells – the least since June 2017 – and completed 1,048 in the biggest shale basins in January, leaving total drilled but uncompleted (DUC) wells down 34 to 7,682, the lowest since November 2018.

https://www.hellenicshippingnews.com/u-s-shale-oil-output-to-rise-to-record-natgas-output-to-drop-in-march/

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Egyptian natural gas exports to Jordan to be resumed within 48 hours

The Egyptian-Jordanian Fajr for Natural Gas Transport and Supply Company said on Wednesday that the export of Egyptian natural gas “will be resumed to

Jordan within 48 hours and in the same quantities agreed upon earlier,” according to the Jordanian state-funded Al-Mamlaka (The Kingdom) TV channel.The flow of Egyptian natural gas to Jordan was halted six days ago, the Egyptian-Jordanian joint venture said.The general manager of the Jordanian National Electricity Company, Amjad Al-Rawashdah, said in press statements that the interruption of Egyptian gas during the past few days was “purely due to technical reasons.”Jamal Qmoh, rapporteur of the Energy Parliamentary Committee in Jordan, was quoted by Sputnik News Agency as saying, “Egypt provides Jordan with daily quantities ranging from 35 to 70 million cubic feet of natural gas.”“Jordan depends on Egyptian gas for 15 percent its electricity, which is a small percentage. We seek to raise this percentage, but the issue is related to cost,” the Jordanian PM said.Jordan suffered great losses due to the interruption of Egyptian gas imports, a cost of 3 to 4 million dinars daily, Qmoh said.The flow of Egyptian natural gas to Jordan was returned in trial quantities in September 2018 after repeated stoppages since 2011 due to attacks on the pipeline that linked the two countries.In April 2019, after the nine-year halt, the two countries signed a memorandum of understanding according to which Jordan resumed purchasing and selling natural gas with Egypt.As per the signed agreement, Egyptian gas supplies were planned to be increased to cover 50 percent of Jordan’s natural gas needs instead of only 10 percent in 2018.

https://www.hellenicshippingnews.com/egyptian-natural-gas-exports-to-jordan-to-be-resumed-within-48-hours/

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Global LNG Development

Global LNG-Asian LNG prices fall to $2.70/MMBtu amid coronavirus outbreak

Falling demand from China drove Asian spot prices for prompt deliveries of liquefied natural gas (LNG) to new lows this week of around $2.70 per MMBtu.

China’s transport, commercial and industrial sectors have all been affected by the fast-spreading coronavirus outbreak, traders said.The average LNG price for March delivery into northeast Asia LNG-AS fell to $2.70 per MMBtu this week, down 25 cents from the previous week, several industry sources said.Prices for cargoes delivered in April are estimated to be $2.80 per MMBtu, they added.

Several cargoes exchanged hands this week at below $3 per MMBtu, traders said, indicating there was too much supply in the spot market.Russia’s Sakhalin 2 plant has sold a cargo for loading on March 16 to Japan’s Mitsui at $2.70 to $2.80 per MMBtu, industry sources said.Gail (India) bought a cargo for delivery into Dabhol, India, on a delivered ex-ship (DES) basis for Feb. 23 to 28 delivery at $2.40 to $2.50 per MMBtu, they said.It separately sold a cargo from the Cove Point plant in the United States on a delivered ex-ship basis into Europe for a February to March delivery, and likely did not award another cargo it had offered for loading in April from Cove Point, one of the sources said.India’s Reliance bought a cargo for delivery into Hazira in March at $2.50 per MMBtu, the sources added.India’s GSPC bought 7 cargoes for delivery over April to October at prices ranging from $2.50 to $3.30 per MMBtu, they said.The spot deals for February to March are the lowest the cargoes have ever traded, traders said.The coronavirus outbreak that started in China and has affected more than 60,000 people globally has had a wide impact on LNG demand which had already been depressed from mild weather.Four LNG tankers, including three Qatari vessels bound for North Asia, have changed destination or diverted after the coronavirus outbreak hit gas demand in China, sources said.In addition, 15 LNG tankers are also flagged as “floating storage” globally, with 11 of them scattered across Asia, Rebecca Chia, LNG analyst with data intelligence firm Kpler told Reuters on Thursday (Feb13).Traders appear to have shrugged off cargo loading disruptions in Western Australia after a powerful cyclone that swept across parts of the region last weekend.Supply was still ample with Angola LNG offering a cargo for March delivery, an industry source said. Colombia’s Calamari LNG is seeking late February delivery while Thailand’s PTT is seeking up to 2 cargoes, industry sources said.

Source: LNG Global

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Global LNG- LNG prices rise as buying interest jumps

Asian spot prices for liquefied natural gas (LNG) rose this week after five weeks of declines, as lower prices sparked cargo purchasing interest from various buyers.

The average LNG price for April delivery into northeast Asia LNG-AS was on Friday estimated at around $3.00 per MMBtu, some $0.30 per MMBtu higher than the front-month price last week, which was assessed for March.“Many players are trying to buy due to low price levels, there are lots of tenders and bids,” an LNG trader said.Fears that the coronavirus outbreak in China would weigh on demand are receding, two industry sources said, which has also supported the prices.Indian buyers who have been active in the market over the past several weeks on an LNG price drop to record low levels, continued issuing spot and multi-cargo tenders.India is estimated to import about 2.36 MMT of LNG in February, record monthly volumes for the South Asian nation.Among companies which sought cargoes for delivery to India were Reliance Industries with a five-cargo tender for April to June supply, Emirates National Oil Company (ENOC) with April to November delivery eight-cargo tender and Gail India with a swap tender for three cargoes in February to March.There were single cargo tenders from India’s Gujarat State Petroleum Corp (GSPC) who sought a March cargo and Indian Oil who was looking to buy an April cargo.Prices in some of the tenders were ranging from around$2.50/MMBtu to just below $3.00/MMBtu, several market sources said.

Additionally, Qatargas’ Al Hamla LNG tanker is currently on route to India’s newly commissioned Mundra LNG Terminal to deliver the first commercial cargo at the facility, Kpler said.Buying interest also came from Jordan’s Nepco who was looking for an April cargo, as well as Turkey’s Botas who sought three March cargoes.

Botas awarded all three cargoes, three sources said, and prices could be as low as around $2.50/MMBtu, one of them added.There was also a tender from Taiwan’s CPC in the past fortnight, two sources said, with one adding that the tender was for three cargoes to be delivered from April to June.The number of bids on S&P Global Platts Market on Close window also grew this week, with some bids reaching $3.00/MMBtu for late March and early April on Friday.The global LNG market remains heavily oversupplied, however, with spreads between gas prices globally shrinking and market players expecting production cuts.Spain’s Naturgy has cancelled loading of one LNG cargo in the United States in April amid a slump of global gas prices, with several other companies having considered cancellations as well, sources told Reuters.In terms of supply offers, Gail India was selling three U.S. cargoes as part of a swap tender to sell and buy cargoes.

Source: LNG Global

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Cheniere Energy slides on downbeat 2020 outlook

Cheniere Energy surrenders early gains after saying it is tracking to the lower end of its FY 2020 EBITDA guidance of $3.8B-$4.1B, given the decline in liquefied natural gas market prices over the past three months.

While it is too early to gauge the potential impact of the coronavirus on the near-term LNG market, the company says reduced demand in China is increasing pressure on the market, which is still working to absorb new supplies added over the past two years.Cheniere confirms that “we had two customers elect to cancel one cargo each, one cargo from Sabine Pass and one cargo from Corpus Christi in the month of April.”But the company says that while “some LNG on the margin may not be lifted from the U.S. this year, we do not view significant or prolonged curtailment of U.S. production as a likely scenario,” the company says.Cheniere shares had opened higher after reporting Q4 results, including adjusted EBITDA of $987M vs. $634M in the year-ago quarter and a 26% Y/Y rise in revenues to $3B.For the full-year, Cheniere says profits jumped 38% Y/Y to $648M from $471M in 2018 while revenues rose 22% to $9.7B.

Source: LNG Global

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Yes, LNG from US makes a lot of sense

Leave aside the irony of Asian giants China and India substituting energy imports from nearby Iran with that from the US, under superpower pressure.

There is much potential for India to source hydrocarbons, particularly liquefied natural gas (LNG), from the US, which has a developed gas market and fast-rising supplies. And the way forward is for India’s Petronet LNG to have equity investments in LNG facilities in the US, for viable gas prices here.India is already the fourth-largest LNG market globally, even as natural gas accounts for just about 5% in our energy mix. But the policy objective is to raise consumption of gas, the most efficient and cleanest fossil fuel, to at least 15% of the overall energy mix.It implies there is potential to double and treble gas consumption here, in the foreseeable future. Domestic usage is put at about 175 MMSCMD of gas, with about half the supplies imported in the form of LNG. There is also huge potential to renegotiate LNG prices given marked fall in the spot market quotes.India imports 8.5 MMT of LNG from Qatar, our biggest supplier, at a reported long-term price of $8-9 per MMBtu, but the spot market prices are at a huge discount, at about $5 per MMBtu.Reports say that Petronet LNG is in advanced talks for a stake in US gas producer Tellurian’s Driftwood facility in Louisiana, to source five million tonnes of LNG per annum. The big upside potential in the Indian gas market should help India get attractive rates. Further, there would be scope to swap US gas supplies with Europe-bound cargos from West Asia, to reduce supply costs.An Indian-owned fleet of LNG carriers would reduce costs further. All this should not shift focus from developing and deploying coal-to-gas technologies for domestic coal.

https://www.energyinfrapost.com/yes-lng-from-us-makes-a-lot-of-sense/

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Qatar Petroleum signs deal with Engie-owned French LNG terminal

Qatar Petroleum will subscribe to three million tons per year of capacity at Elengy‘s Montoir-de-Bretagne LNG terminal for a term up to 2035,

Elengy said in a statement on Thursday (feb20). Elengy, a unit of French gas and power group Engie , said Montoir-de-Bretagne will thus become a new LNG import terminal position for Qatar Petroleum in Europe, facilitating the supply of Qatari and internationally sourced LNG to French and European customers.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/qatar-petroleum-signs-deal-with-engie-owned-french-lng-terminal/74235155

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Pakistan among top three LNG importers in South Asia

Amid a modest rise in liquefied natural gas (LNG) imports by Asia, Pakistan has ranked among the top three countries in South Asia, which recorded 19% increase in

imports in the year 2019.Also notable was the LNG demand growth in South Asia. In total, Bangladesh, India and Pakistan imported 36 MMT, an increase of 19% over the previous year, pointing to the emerging growth of countries in Asia, according to Shell’s latest annual LNG Outlook published on Friday (Feb 21).According to the outlook, global demand for LNG grew 12.5% to 359 MMT in 2019, a significant increase that bolstered LNG’s growing role in the transition to a lower-carbon energy system.There was a modest rise in imports by Asia in 2019 compared to the previous two years, a result of mild weather and rising electricity generation from nuclear power in Japan and South Korea, two of the three largest global importers. In China, LNG imports increased by 14% in 2019 as efforts continued to improve urban air quality.Over the long term, global LNG demand is expected to double to 700 MMT by 2040, according to forecasts, as gas plays a significant role in shaping a lower-carbon energy system.Asia is expected to remain the dominant region in the decades to come, with South and Southeast Asia generating more than half of the increased demand.The report revealed that 2019 saw key developments that were helping to reshape the industry. It noted an industry record of 40 MMT of additional supply becoming available and being consumed by the market.

https://tribune.com.pk/story/2161845/2-pakistan-among-top-three-lng-importers-south-asia/

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POSH clinches contracts to support Petronas FLNG project

PACC Offshore Services Holdings (POSH) has clinched contracts from Petronas for the deployment of four offshore support vessels to support the project of Petronas

Floating Liquefied Natural Gas 2 (PFLNG Dua).Two POSH 16,300-bhp vessels will undertake a tow of the PFLNG Dua from South Korea’s Geoje to the Rotan Gas Field in offshore Sabah, Malaysia where it will be deployed. A third 16,000-bhp vessel will escort the PFLNG Dua en route.

A fourth 16,000-bhp vessel will be deployed to join the convoy, where it will provide station keeping services for the PFLNG Dua.The charters are expected to start in early-April.POSH said the contracts will be undertaken by the company’s newly launched offshore projects division, comprising a fleet of eight versatile and high-specification vessels.“POSH is humbled to be supporting this momentous project, which will help address the world’s growing demand for clean burning fossil fuel,” said Eric Ng, managing director of offshore projects at POSH.The PFLNG Dua is Petronas’ second FLNG unit with an annual production capacity of 1.5m tonnes of LNG, and the world’s first FLNG vessel to operate in deepwater.

https://www.seatrade-maritime.com/offshore/posh-clinches-contracts-support-petronas-flng-project

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Natural Gas / LNG Utilization

Scania brings production of natural gas-fueled trucks to Latin America

As part of the purpose of leading the shift towards a sustainable transport system, Scania announced the start of the production of LNG and LNG-propelled trucks,

at its factory located in the city of São Bernardo do Campo, San Pablo. The arrival of these vehicles is included in the investment plan of US$600 million that the firm has been executing in Brazil between 2016 and 2020, contemplating the launch of the brand’s New Generation of Trucks.“The industrialization of NGVs complements the New Generation of Scania Trucks launched in 2018, made available to the market based on Scania Global Production System,” said Christopher Podgorski, President and CEO of Scania. “Another US$350 million will be invested between 2021 and 2024, which will allow us to further advance in technologies in the direction of alternative fuels and decarbonization of the transport and logistics sector.”The regional production of Scania natural gas trucks meets the precepts of the brand’s well-known Modular System, which allows the manufacture of different models from a limited number of components, according to the application of the vehicle. In the case of NGVs, the difference between CNG and LNG models lies in the installation of specific storage tanks according to the state of the fuel: liquid by cooling or gaseous by pressurization.The Latin American unit will also be responsible for directing the global development of natural gas vehicles. “The Research and Development (R&D) area will lead the future advances of this technology in the Scania group,” Podgorskireported.The natural gas market in Latin America is expanding, currently represents 26% of the region’s energy grid, and has great advantages at the environmental level as a substitute for coal and liquid fuels.

https://www.ngvjournal.com/s1-news/c1-markets/scania-brings-production-of-natural-gas-powered-trucks-to-latin-america/

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Colombian public utility company deploys first CNG dedicated vehicles

Led by its Manager Marbel Astrid Torres, Bioagrícoladel Llano (subsidiary of Grupo del Llano) announced the first phase of the renewal of its fleet of waste

compactor vehicles operating in the city of Villavicencio, Meta department, with the addition of seven new Euro VI Scania trucks powered by natural gas and capacity of 14 tons each.The CNG technology will help the company reduce 50% of particulate matter, as well as 20% of CO2 emissions and 80% of NOx, compared to its diesel counterpart, thus minimizing the environmental impact and improving the air quality of the city.With this initiative, Bioagrícola seeks to promote the development of Villavicencio and the Colombian Eastern Plains, be an example of profitability and sustainability, and stand out as a pioneer in the use of NGVs for waste collection in the region.In addition to these new trucks, the company is expected to acquire four additional vehicles in the first months of this year to complement the fleet of 54 vehicles currently operating in the city. They will also introduce the Lifter system for the mechanical loading of containers, security cameras for operation control and speed and location control systems.Similarly, Llanogas, an allied company of Bioagrícoladel Llano in this project and which is responsible for the distribution and marketing of natural gas in the region, plans to gradually renew its vehicle fleet starting with a CNG dedicated 410 HP tractor.

https://www.ngvjournal.com/s1-news/c3-vehicles/colombian-public-utility-company-introduces-first-cng-dedicated-vehicles/

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ENGIE and IVECO open natural gas station for heavy transport in Turin

Following the agreement signed in 2017 between ENGIE Italia and IVECO, the companies have launched a brand new state-of-the-art refueling station, located on

CNH industrial Headquarters, StradadelleCascinette in the strategic east part of Turin. Developed on an area of over 5,000 square meters and built specifically for heavy vehicles, it features six natural gas dispensers (two of LNG and four of CNG), as well as some electric charging points powered by a photovoltaic system located on the roof.The project realizes ENGIE’s commitment to contributing to the development of green mobility, focusing on alternative fuels such as electricity and natural gas, and also IVECO’s commitment in its role as leader in the field of natural gas vehicles. IVECO ORECCHIA, the automaker’s dealer in the Province of Turin and Valle d’Aosta, near to the station, will support customers in the transition towards cleaner transport with a complete service (sale, assistance and, now, refueling).“IVECO has pioneered natural gas technology in transport and been instrumental in the development of the distribution network,” added FabrizioBuffa, IVECO Gas Business Development Manager. “Natural gas is the mature solution immediately available to decarbonize long haul, and this agreement with ENGIE for the opening of new refueling stations is part of our holistic approach to green transport. We believe that it is crucial that all the players in the sector work together in order to achieve truly sustainable transport in the timeframe driven by regulations to address Climate Change.”The 2017 Memorandum of Understanding (MOU) between ENGIE and IVECO aims to expand the various joint projects: from France (in the IVECO headquarters in Trappes), passing through the United Kingdom (in the port of Immingham), to Romania (for a demonstrator at Alba Lulia). At the same time, work on Italian soil continues: ENGIE is working on three other L-CNG station projects in northern Italy.

https://www.ngvjournal.com/s1-news/c4-stations/italy-engie-and-iveco-open-natural-gas-truck-station-in-east-turin/

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CNG stations in Islamabad, Punjab start getting gas supply

The Compressed Natural Gas (CNG) stations, operating in Islamabad and Punjab, started getting uninterrupted supply from Sunday night after availability of

sufficient gas in the system due to considerable decrease in the cold weather conditions. “All CNG stations will remain open continuously in Punjab including Islamabad from tonight 24/7,” All Pakistan CNG Association (APCNGA) Central Chairman Ghiyas Abdullah Paracha told APP. He said the gas curtailment to CNG stations had almost come to an end. “It is because of availability of sufficient gas in the system, mainly due to decrease in the cold.” Earlier, the chairman while talking to APP had expressed confidence that the commodity price would come down by Rs 10-12 per kilogram after arrival of private sector players in import of LNG. “The association expects the arrival of private LNG cargoes in next few weeks as the government wants to shrink its footprint in the energy sector, which will help create an atmosphere of competition, stabilize the commodity supply to all sectors at competitive rates.” He said the association was seeing Rs 10-12 reduction in per KG price of CNG with active participation of private sector in the LNG import, adding it was in line with the vision of Prime Minister Imran Khan, who wanted to bring down rates of different commodities. With the private sector LNG import, the chairman said the gap between demand and supply of gas would come to an end and the CNG stations start working round the clock. “The association has been advocating for the involvement of private sector in import of LNG for the last two years, and now it is going to happen soon.”

https://nation.com.pk/17-Feb-2020/cng-stations-in-islamabad-punjab-start-getting-gas-supply

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California: Landi Renzo’s near zero NG engine program gets major grant

Landi Renzo USA announced it received a grant of $600,000. This corresponds in funding of $300,000 from the South Coast Air Quality Management District’s

(South Coast AQMD) Clean Fuel Funds and another $300,000 in funding from the Southern California Gas Company (SoCalGas) for Landi Renzo’s 7.3L Near Zero natural gas engine development program, which covers Class 4-7 vehicles. To date, the biggest gap in the Near Zero natural gas offering was the work truck market.This collaboration will modify the recently introduced Ford 7.3-liter gasoline engine and demonstrate a 0.02 g/bhp-hrNOx California Air Resources Board (CARB) and Environmental Protection Agency (EPA) certified engine for commercial vehicle applications. The project is well underway with expected completion by Q2 2020.The Ford base engine will offer fleets a Near Zero natural gas engine for the F-450, F-550, F-650, F-750, F-53, F-59, and E-450 applications. This Near Zero engine, which will also be able to utilize biomethane, is packaged for shuttle buses (e.g., hotel, airport, rental car) box trucks, tow trucks, service body trucks, large package trucks and a host of other vocational offerings. Many of these vehicles will be able to take advantage of various grant funding opportunities.The Near Zero natural gas vehicles come directly from the Ford manufacturing plant to Landi Renzo USA’s facility in Torrance, California, or an Authorized Distributor, where they are converted with the Landi Renzo’s Eco Ready™ CNG system. Landi Renzo USA is the only approved Ford QVM (Qualified Vehicle Modifier) developer and installer for CARB, the agency responsible for implementing California’s landmark climate legislation. As an OEM approved system under Ford’s QVM program, the original warranty remains fully in place.

https://www.ngvjournal.com/s1-news/c5-products/landi-renzos-near-zero-ng-engine-program-gets-major-public-private-funding/[Edited]

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Natural gas truck refueling expected to improve on major U.S. corridor

CLEANCOR Energy Solutions LLC, an indirect wholly-owned subsidiary of SEACOR Holdings Inc. and a leading supplier of alternative fuels to truck fleets, announced that a subsidiary

completed an acquisition of an LNG and CNG fueling station located at 670 Garnet Avenue in Palm Springs, California. The station services over-the-road drayage truck fleets, waste haul companies, and other commercial fleets transiting the Interstate 10 freight corridor. It has been growing its LNG and CNG fuel supply volumes to a range of truck fleets, including CLEANCOR customers servicing cargo to the Port of Long Beach and Port of Los Angeles as well as other locations in Arizona and Southern California. “The Palm Springs station is an exciting addition to our portfolio as it serves as a critical refueling waypoint for existing customers transiting the I-10 corridor. Its strategic location in California, a leader in clean fuel initiatives, also offers unique growth opportunities as more over-the-road trucking fleets are incentivized to switch to cleaner, less costly fueling alternatives.” said Jeff Woods, CEO of CLEANCOR. “We stand ready to support fleets in this transition and tailor the design and operation of public and private fueling facilities for our customers across North America.” The facility, which will be branded “CLEANCOR Fuels,” has the capacity to expand the number of fleets refueling at the station. In addition to LNG and CNG, CLEANCOR will ofer biomethane at this station at no additional cost to customers.

https://www.ngvjournal.com/s1-news/c4-stations/strategic-acquisition-to-improve-natural-gas-truck-refueling-on-major-us-corridor/

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Governments of Canada and BC invest in CNG bus fleet expansion

New natural gas buses are now operating in the Victoria Regional Transit System. The addition of these NGVs will be gradual throughout the year as vehicles are delivered.

In total, 46 heavy-duty CNG buses and 25 medium-duty CNG buses will be added to the fleet by the end of this summer. The Victoria Regional Transit System becomes BC Transit’s fourth system operating a CNG bus fleet, joining Whistler, Nanaimo and Kamloops.The 40-foot heavy-duty New Flyer buses carry 35 seated passengers and 46 standing passengers, while each medium-duty Grande West Vicinity bus can carry 24 seated passengers and 20 standing passengers. Each vehicle is also equipped with a three-inch bike rack, LED destination sign and full driver door, a protective door placed on the exterior of the operator seat to protect operators from physical confrontations.The cost of each heavy-duty CNG bus is approximately $710,000, while the medium-duty CNG buses are approximately $455,000. All are funded through the Investing in Canada Infrastructure Program (ICIP), with the Government of Canada and the Province of British Columbia each contributing 40% of the cost. The Victoria Regional Transit Commission is funding the remaining 20%.The benefits of CNG technology are both environmental and economic, with reductions in tailpipe emissions and operational costs. FortisBC supplies natural gas for BC Transit’s fleets, while the CNG fueling station, located at the Langford operations and maintenance facility, is built and maintained by Clean Energy.

https://www.ngvjournal.com/s1-news/c3-vehicles/governments-of-canada-british-columbia-invest-in-cng-bus-fleet-expansion/

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LNG as a Marine Fuel/Shipping

Dubai shipping firm Tristar inks $24m deal with oil giant BP

Dubai-based Tristar Group, the global energy logistics company, has signed a four-year contract with BP to provide liquefied natural gas (LNG) shipping services in a $24 million deal.

The deal with BP follows the recent addition to the Dubai-based company’s shipping fleet of its first LNG tanker, the Tristar Ruby. The four-year deal will cover a variety of LNG shipping services comprising trading and delivery capacity worldwide, the company said. The Tristar Ruby, formerly the British Ruby joins Tristar’s 30-strong fleet of ocean-going tankers. The vessel was built by Hyundai Heavy Industries in 2008 and has a cargo carriage capacity of 155,000 cubic metres. Eugene Mayne, group CEO of Tristar, said: “We are pleased to be able to announce the value of our deal with BP, the first as we expand our presence into the LNG shipping market. This represents a strengthening of our relationship with BP, one of our core partners.” Tristar offers end to end fuel logistics solutions to blue-chip clients including international and national oil companies and international NGOs.

https://www.arabianbusiness.com/transport/440957-dubais-tristar-inks-24m-deal-with-oil-giant-bp

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2019 demand in Rotterdam bunker port more sustainable

The demand for LNG, bio and low-sulphur bunkers has increased enormously in Rotterdam over the past year. Total sales in this largest European bunker port fell

from 9.5 million m3 to 9 million m3.In the last quarter of 2019, sales of low-sulphur bunker oil with a maximum sulphur content of 0.5% – the so-called VLSFO, very low sulphur fuel oil – increased enormously. In December, 62% of the fuel oil sold was VLSFO. Over the entire last quarter, 48% of the fuel oil sold was VLSFO. Its popularity has everything to do with new regulations.As of 1 January 2020, the globally permitted sulphur content in marine fuel has been reduced from 3.5% to 0.5%. In the Netherlands and the other countries along the North Sea, the maximum sulphur content is even lower with 0.1% since 2015. 13 percent of this so-called Ultra Low Sulphur Fuel Oil was sold in the last quarter. The largest amount of bunkers sold in Rotterdam are for intercontinental transport.In addition to the sales of VLSFO, the increase in sales of LNG (liquefied natural gas) bunkers also stood out. Sales more than tripled from 9,483 tonnes to 31,944 tonnes. For the first time, the sale of biofuel bunkers – bunker fuel to which a certain percentage of biofuel has been added – is also clearly visible in the figures. Throughout 2019, 2% of sales of fuel oil and 0.5% of distillates (MGO – gas oil – and MDO – diesel oil) concern biofuel bunkers. Sales of biofuel bunkers increased in the fourth quarter in particular. The admixture percentages of these bunkers vary between 5 and 50%. Most common is 20-30%.

https://www.hellenicshippingnews.com/2019-demand-in-rotterdam-bunker-port-more-sustainable/

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Qatar’s plans to raise LNG output will lead to boom in maritime transport, logistics services industry, says QNB hief

Qatar”s plans to raise the liquefied natural gas (LNG) production to 126mn tonnes per annum by 2027 will lead to a major boom in the maritime transport

and logistics services industry in the country, according to QNB chief executive Abdulla Mubarak al-Khalifa.This observation was made at the Qatar Maritime and Logistics Summit (QMLS), which got underway in Doha yesterday. Many developments have already been achieved during the past few years, including the opening of Hamad Port and the start of operating new navigation lines with a number of countries in the world and the establishment of integrated logistics areas, he said. QNB had a pivotal role in providing financial services and credit facilities for developing the maritime transport industry, which supports economic relations between Qatar and its commercial partners, stressing that Doha”s plans to achieve self-sufficiency offer great prospects for marine transport projects and related services, and that QNB is working to contribute strongly to strengthening this industry during the next stage, especially in view of the operations of expanding ports, logistics, warehouses and establishing free zones in the country. Despite the challenges facing the trade movement and the global maritime transport industry, there are great opportunities for development, expansion and investment in technological innovations that support global trade, al-Khalifa said. He said the banking sector”s main role in providing financial services, credit facilities and investment in various sectors in the shipping and logistical services industry, including ports, ships, shipping companies, containers and all sectors related to the supply chain of this huge industry, particularly since maritime transport accounts for 90% of the global trade traffic, contributes approximately $440bn to global gross domestic product. The sectors related to the shipping industry need different and diversified financial services, given the large size of this industry, al-Khalifa said, pointing out that QNB considers the shipping sector as one of the four main sectors working to provide distinguished financial services to it. Finding that the most important challenges facing maritime transport is the transformation of ships into the use of clean energy, as the International Maritime Organisation seeks to halve emissions of harmful substances by 2050, he said QNB provides specialised financial services and huge investments in building ships that use clean energy.

https://www.hellenicshippingnews.com/qatars-plans-to-raise-lng-output-will-lead-to-boom-in-maritime-transport-logistics-services-industry-says-qnb-chief/

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

Strategic alliance will develop New Zealand’s first H2 refueling network

Energy companies Waitomo Group and Hiringa Energy have announced their intentions to work in partnership to develop New Zealand’s first nationwide hydrogen refueling station network.

Taranaki-based Hiringa Energy is the first company in the country dedicated to the supply of green hydrogen, providing solutions for industry, the public sector, and transport operators. Waikato-based Waitomo Group is the country’s fastest-growing independent fuel retailer.Together the two high-growth companies will work on the detailed engineering requirements and consenting for a network of hydrogen refueling sites – some of which will be on existing Waitomo Fuel Stops. Initial locations have been selected, with plans for a further 20 stations to be developed across both the North and South Island.According to Hiringa Energy CEO and Co-Founder, Andrew Clennett, the partnering with Waitomo brings together the complementary skills and strengths of two innovative, future-focused companies to provide leadership in the development of hydrogen as a viable alternative commercial fuel source for New Zealand. “Heavy transport makes up only 4% of our vehicles, but they’re responsible for over 25% of our total vehicle emissions. Hydrogen is the key technology that will allow these fleets to stay on the road – a mass-market, clean energy solution that can have a real impact on reducing our transport emissions,” he said.Development and consenting for the first hydrogen refueling sites will get under way this year. The two companies will work together to identify and scope further sites for development of the network in 2020.

https://www.ngvjournal.com/s1-news/c4-stations/new-zealand-strategic-alliance-will-develop-first-hydrogen-refueling-network/[Edited]

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Bristol transit operator launches 77-biogas-bus scheme and CNG station

As part of its ongoing commitment to improving air quality and tackling the Climate Emergency, First West of England launched its 77 new

biomethane bus scheme, including a major natural gas station at Lawrence Hill depot. Earlier this year, the first ten of the new buses came into operation on the metrobus m3 service, drawing fuel from the existing CNG station opened last year at the Parson Street premises of Bristol Community Transport, but they will use now the brand-new fueling station at Lawrence Hill depot.The next 27 buses will take to the streets in East Bristol this month, launching a brand new citylines east Bristol identity and replacing all city buses currently running along Church Road to St George and points east – routes 42 to 45.The new buses feature Scania chassis and bodies built in Britain by Alexander Dennis Ltd (ADL), will reduce emissions by 85% and give customers a much-improved on-board experience, smooth and quiet with modern, comfortable interiors, featuring USB charging points and a second wheelchair space on each bus.The new filling station, designed and built by Gas Bus Alliance (GBA), which also provides the fuel, represents an investment of more than £2 million and took around nine months to build. It can provide 100% bio-CNG to fuel up to 100 buses, and can be easily extended to supply more buses as they are purchased.“We welcome this significant investment in new, cleaner buses and infrastructure as part of our drive to reduce air pollution and achieve carbon neutrality. As we plan how we transform Bristol’s transport, through modernizing the network, launching the bus deal and mass transit, we want to encourage partners to take these important steps to make Bristol better for everyone,” commented Bristol Mayor Marvin Rees.

https://www.ngvjournal.com/s1-news/c4-stations/bristol-transit-operator-launches-77-biomethane-bus-scheme-and-new-cng-station/[Edited]

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Austin-Bergstrom airport cuts CO2 footprint with bio-CNG shuttles

Austin-Bergstrom International Airport (AUS) has signed an agreement with Clean Energy Fuels Corp. This partnership calls for Clean Energy to provide

AUS with its Redeem™ brand of biomethane. The AUS shuttle bus fleet has historically utilized alternative fuels: half of the fleet utilizes CNG, and the other half is powered by LPG. This year AUS started fueling half of its shuttle bus fleet with renewable natural gas, which will reduce its carbon footprint by approximately 20% at no extra cost to the airport.“We’re very excited to partner with our provider Clean Energy to switch over to biomethane. This will have a significant impact on our carbon footprint and is a major step toward achieving our sustainability goals,” said B.J. Carpenter, sustainability program coordinator with AUS.NGVs have been playing an active role at U.S. airports for over two decades, with more than 40 airports across the country running their ground transportation fleets on CNG. The benefits of fueling airport transportation vehicles with natural gas are clear: lower fuel costs compared to diesel, improved public health and air quality, reduced environmental impact from greenhouse gas, and increased U.S. energy independence.Last year, AUS attained level 2 Carbon Accreditation in the Airports Council International’s program. This multi-step international program independently assesses and recognizes airports efforts to manage and reduce CO2 emissions. Austin-Bergstrom’s goal is to reach carbon neutrality this year.

https://www.ngvjournal.com/s1-news/c3-vehicles/austin-bergstrom-airport-cuts-carbon-footprint-with-bio-cng-shuttles/

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NGS INDIA

City Gas Distribution & Auto LPG

PNGRB plans to allow lenders to replace defaulting city gas companies

Plans redrawn to end city gas distributors’ monopoly

Gujarat Gas eyes doubling current natural gas volume to cope up with demand

Regulator approves Total’s stake buy in Adani gas

Two more CNG stations in Patna city made functional

CGD authorisation: Supreme Court dismisses appeals of Adani Gas, IMC

Maruti Suzuki unveils new WagonR S-CNG, part of Mission Green Million

Torrent Chennai city gas licence valid, says SC

150 CNG buses to ply on Bhopal city roads soon

Electric Mobility

BSES Yamuna partners EV Motors for EV charging infrastructure

hTata Power plans to set up 700 EV charging stations by 2021

Four bio-CNG plants to come up in Chennai by June

Gas/ Pipelines/ Company News

Manoj Jain takes charge as CMD, GAIL

French energy giant Total acquires 37.4% in Adani Gas for Rs 5,152 crore

Gas-based economy: GAIL to invest `1.05L cr to create infra

ONGC Q3 net halves to Rs 4,152 cr after fall in oil, gas prices, production

RIL, Shell liability to Governmentmay drop in PMT case

Falling LNG rates may hit discoveries: Industry executives

Policy Matters/ Gas Pricing/Others

Gas prices may be cut by 25%

‘Gas Warrior’ seeks to convert India’s steel mills to spur use

BPCL divest initial bids only after decision on co’s JVs

LNG Development and Shipping

Petronet launches India’s first commercial LNG bus

India set to import record LNG volumes as spot prices slump on virus impact

India’s GAIL says sustained cheaper spot LNG prices are the biggest risk

Exxon Mobil, IOC ink pact to transport gas

Gail India buys LNG cargo for February delivery – sources

Petronet eyeing opportunities to source LNG across the globe including Tellurian

Tamil Nadu: AG&P breaks ground to set up LNG Terminal at Karaikal Port

India’s Petronet explores buying LNG under 10-year contract

Natural Gas / Transnational Pipelines/ Others

Natural gas prices fall to lowest level since 2016, the lowest February prices in 20 years

Southern Gas Corridor could be used for exports to Europe from other Caspian countries

U.S. shale oil output to rise to record, natural gas output to drop in March

Egyptian natural gas exports to Jordan to be resumed within 48 hours

Global LNG Development

Global LNG-Asian LNG prices fall to $2.70/MMBtu amid coronavirus outbreak

Global LNG- LNG prices rise as buying interest jumps

Cheniere Energy slides on downbeat 2020 outlook

Yes, LNG from US makes a lot of sense

Qatar Petroleum signs deal with Engie-owned French LNG terminal

Pakistan among top three LNG importers in South Asia

POSH clinches contracts to support Petronas FLNG project

Natural Gas / LNG Utilization

Scania brings production of natural gas-fueled trucks to Latin America

Colombian public utility company deploys first CNG dedicated vehicles

ENGIE and IVECO open natural gas station for heavy transport in Turin

CNG stations in Islamabad, Punjab start getting gas supply

California: Landi Renzo’s near zero NG engine program gets major grant

Natural gas truck refueling expected to improve on major U.S. corridor

Governments of Canada and BC invest in CNG bus fleet expansion

LNG as a Marine Fuel/Shipping

Dubai shipping firm Tristar inks $24m deal with oil giant BP

2019 demand in Rotterdam bunker port more sustainable

Qatar’s plans to raise LNG output will lead to boom in maritime transport, logistics services industry, says QNB hief

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

Strategic alliance will develop New Zealand’s first H2 refueling network

Bristol transit operator launches 77-biogas-bus scheme and CNG station

Austin-Bergstrom airport cuts CO2 footprint with bio-CNG shuttles