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

National News Internatonal News

NATIONAL

City Gas Distribution & Auto LPG

|| Natural gas vehicles might grab 50% share || GAIL eyes GSPC LNG’s Morbi stronghold || Will Chennai’s wait for cheaper piped natural gas end? || End of the road for diesel cars nears as emission norms get stricter || Diesel buses to replace RTC city CNG fleet ||

Natural gas vehicles might grab 50% share

Natural gas vehicles (NGVs) are likely to account for 50% of sales of new three- and four-wheelers in India by 2030, on the back of rapidly developing infrastructure and cost reduction due to domestic manufacturing, according to a report.

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Nomura Research Institute Ltd (NRI Consulting & Solutions) in its report on ‘Transforming Mobility Through Natural Gas’ also said the implementation of BS-VI emission norms from April 1, 2020, will increase price differential between CNG and diesel vehicles, making CNG vehicles more attractive.According to the report, a strong network of 15,000 CNG and 1,500 LNG stations by 2030 would have the potential to transform the Indian mobility scenario, with an expected 33 million natural gas vehicles as compared to 3.3 million in 2019. It said CNG infrastructure has grown rapidly in India. As many as seven states that benefited after the 10th round of CGD (city gas distribution) make up 55 per cent of the total vehicle sales in the country as of 2017-18. “After the 9th and 10th round, CGD infrastructure will cover 52 per cent area and 72 per cent population and will make natural gas accessible across the country,” the report said.

https://www.thehansindia.com/business/natural-gas-vehicles-might-grab-50-share-528133

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End of the road for diesel cars nears as emission norms get stricter

Moreover, diesel would cost nearly as petrol in coming years. Taking the plunge, India’s leading carmaker, Maruti Suzuki, decided to phase out diesel vehicles from 2020. About a fourth of its produce runs on diesel, lower than the industry average.

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This came in the backdrop of weakening auto sales, to which the company was a big contributor. The share of diesel variants in passenger cars is receding. This explains the slowdown partially. In addition, the difference in on-road prices of petrol and diesel variants has remained substantial, evident in some popular models. But prices of the two fuels have converged significantly.Stricter pollution control norms, which will set in in 2020 (BS VI), would raise prices of cars further, while diesel would cost nearly as much as petrol in coming years. It seems that the Indian consumer is cognizant of this, and is adapting to this change, to some extent. Growth in petrol consumption is outpacing that in diesel after 2012, contrary to the trend in the period before 2012. Buses and heavy commercial vehicles use diesel the most. With CNG making fast inroads into public transport, diesel use is set to reduce further. The western region led by Maharashtra and Gujarat uses diesel for transport the most.In comparison to European countries, the share of diesel cars in India is low.

https://www.business-standard.com/article/specials/end-of-the-road-for-diesel-cars-nears-as-emission-norms-get-stricter-119050500665_1.html

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GAIL eyes GSPC LNG’s Morbi stronghold

GSPC LNG, the trading arm of Gujarat State Petroleum Corp (GSPC) group is likely to face stiff competition from India’s largest natural gas marketer GAIL (India) that is looking to enter Morbi for selling natural gas.

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The country’s biggest ceramic manufacturing cluster at Morbi is regarded as a stronghold for Gujarat Gas that sells nearly half of its total natural gas here.Gujarat Gas buys its entire LNG requirement from GSPC that is banking on gas supplies from the newly built LNG terminal at Mundra to meet the growing demand from Morbi. The terminal project by GSPC LNG is likely to receive its first cargo in the next two months. A meeting between officials of GAIL and Morbi Ceramics Association was held this week where GAIL has offered to supply gas at rates better than Gujarat Gas, said officials close to the development.A large number of ceramic tile makers are switching over to natural gas following the order of National Green Tribunal (NGT) for closure of ceramic units running on coal-gasifiers. Gujarat Gas earlier supplied about 2.5 MMSCMD to Morbi. However after the NGT order, its supply has almost doubled, said a government official.“The total gas supply by Gujarat gas is about 8-8.5 MMSCMD of which half is for Morbi. GAIL’s entry could cause a major upset for GSPC LNG. However, Gujarat Gas may not lose its income as it will continue to earn from the network tariff that GAIL would have to pay for using its pipeline infrastructure,” the official said. Gujarat Gas’ five-year long marketing exclusivity for city gas distribution in Morbi ended recently, but it still has network exclusivity for a 25-year period. GAIL has offered to supply gas at rates that are linked to Henry Hub natural gas prices. To start with GAIL is looking to sell 0.5 MMSCMD for a period of two months at about USD 7.50 per MMBtu, said an industry official.The central PSU has worked out two options for Morbi ceramic industry, which include supply of gas through tankers and pipeline.“Supplying gas through tankers will make gas costlier to the industry. GAIL will have to pay transmission charges to Gujarat State Petronet Limited (GSPL). ,” said an industry player.

https://timesofindia.indiatimes.com/city/ahmedabad/gail-eyes-gspc-lngs-morbi-stronghold/articleshow/69192422.cms

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Will Chennai’s wait for cheaper piped natural gas end?

It has been almost a year since a road show for piped natural gas (PNG) distribution network for Chennai, Tiruvallur and Kancheepuram districts was organized.

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However, the project is yet to take off in these geographical areas (GAs) as a case has been filed against successful bidders in these areas.According to data provided by the Petroleum and Natural Gas Regulatory Board (PNGRB) that auctions the GAs, Chennai and Tiruvallur were to get some 33 lakh connections and Kancheepuram 11.51 lakh connections. These cities will also get compressed natural gas stations on the lines of Delhi and other cities for use by automobiles. Chennai and Tiruvallur will get 222 CNG stations and Kancheepuram 111 CNG stations in phases.Once the case is settled, these districts will see some action with road cuts happening to lay underground pipelines at one metre depth, construct compressed natural gas stations from where PNG connections would be provided to domestic and commercial users. Of the 11 areas, including one in Puducherry that were chosen for implementing this scheme, initial spade work has been started by the respective companies in Coimbatore, Salem, Tirupur, Nagapattinam, Tiruvarur and Karaikal areas, explained an official of PNGRB.The State will get its supply of natural gas from IOCL’s Ennore LNG import and storage terminal that has a capacity of five million tonnes. Work on the Madurai-Thoothukudi and Ramanathapuram pipeline, which has a branch planned to Bengaluru, is progressing well and is expected to be completed by the year-end, explained a senior company official.Sources in Indian Oil Corporation Ltd, which has bagged the contract for Salem and Coimbatore district, said the dream of piped gas supply is not really a distant one in these locations. “Over a period of eight years, we will be spending ₹1,300 crore in Salem and around ₹3,000 crore in Coimbatore. The plan is to cover 9.5 lakh houses in Salem and 9.12 lakh NG connections in Coimbatore,” explained an official of IOCL.

https://www.thehindu.com/news/cities/chennai/will-chennais-wait-for-cheaper-piped-natural-gas-end/article27017455.ece

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Diesel buses to replace RTC city CNG fleet

With the cost of Compressed Natural Gas (CNG) touching that of diesel, Andhra Pradesh State Road Transport Corporation (APSRTC) is contemplating replacing old CNG buses with new variants of BS4 and BS6 compatible diesel-run buses in the Vijayawada region.

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Over the past one year, the corporation has replaced 25 CNG buses with new diesel variants and is looking forward to phasing out its entire CNG fleet within a two-year period.Speaking to TNIE on Sunday, APSRTC Vijayawada region deputy chief traffic manager K Sri Ramulu said that Vijayawada was the first city in south India to introduce eco-friendly CNG buses under Jawaharlal Nehru National Urban Renewal Mission (JNNURM).“About 300 CNG buses were introduced for city operations between 2010-12 in a phased manner. CNG plants were established at Vidyadharapuram, Governorpet and Ibrahimpatnam bus depots with the support of Bhagyanagar Gas Limited (BGL) to operate the new buses,” he said.Speaking about the comparison in maintenance cost between CNG and diesel buses, the deputy chief traffic manager said, “At present, cost of CNG is `60 per kg while RTC procures diesel at subsidised rate of Rs 66 per litre. Compared to the cost of operations when CNG-run buses were introduced in the city, the prices of CNG and diesel are almost the same now. However, while diesel-run buses have fuel tank capacity of 300 litre and can travel 700 km every day, CNG-run buses have fuel tank capacity of only 120 kg and can travel 500 km a day.”“We want to introduce new CNG buses but there are several problems over maintenance and unavailability of spares, Ramulu added. Asked whether all the 275 remaining CNG buses will be replaced with new diesel variants, the official said that RTC is ready to procure the new diesel variants but manufacturers are not yet ready to supply the requisite numbers which is why it might take two years.

http://www.newindianexpress.com/cities/vijayawada/2019/may/13/diesel-buses-to-replace-rtc-city-cng-fleet-1976125.html

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City Gas Distribution & Auto LPG

Electric Mobility

Natural Gas / Pipelines / Company News

Policy Matters/Gas Pricing/Others

LNG Development and Shipping

 

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SNAPSHOT: NATIONAL

Electric Mobility

|| Electrifying India’s Transport || Govt tells EV makers to localize manufacturing to qualify for subsidies || Mahindra Electric to deploy 50 EVs in Hyderabad || Ratan Tata invests in Ola electric mobility || 4 slow & 3 EVs fast chargers installed at Parliament || EVs sales cross 7.5 lakh units from 2018-2019 in India || Tata Power and MGL join hands to foray into e-mobility and other services ||

Electrifying India’s Transport

Recently the Union government approved the second phase of the Faster Adoption and Manufacturing of Electric Vehicles scheme (Fame-II) and the National Mission on Transformative Mobility and Battery Storage. Both these actions signal India’s commitment to transforming its mobility system.

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The focus on electrification as the primary technology pathway to achieve this transformation presents India with a powerful opportunity to emerge as a leader in clean, connected and shared mobility solutions, battery manufacturing and renewable energy integration.The cost of key components for electric vehicles (EVs), most notably, lithium ion batteries, have been falling at rates comparable to declines for LED lamps, solar panels and integrated circuit chips; and rapid scaling of the manufacturing of these components in India will further drive down costs, making EVs the most cost efficient solutions for intracity travel. Renewably supplied electricity can deliver long-term, fixed cost power supply for mobility services throughout the economy, and solar electrons can become a transportation fuel.From the perspective of energy security and competitive advantage too, new mobility solutions will reduce oil import costs, lower trade deficits, and limit vulnerability to oil supply disruptions and process shocks. Finally, shared, connected and clean mobility solutions will deliver a host of environmental benefits, including cleaner air so Indian citizens can breathe more easily.Addressing the Global Mobility Summit, Prime Minister Narendra Modi had outlined a vision for the future of mobility in India based on 7Cs, which are common, connected, convenient, congestion-free, charged, clean and cutting-edge. How can India achieve these objectives?

First, India’s per capita car ownership is quite low with fewer than 20 vehicles per 1,000 persons, as compared to 900 per 1,000 in the US and 800 per 1,000 in Europe. India has an opportunity to leapfrog ahead of the legacy model of individually owned internal combustion engine (ICE) vehicles that are utilized by only around 5% of the people. India’s low per capita car ownership affords it the chance to pursue a different model from the western world. Our emphasis must be on shared, connected and electric transportation.

Second, two and three wheelers constitute almost 80% of India’s domestic automobile sales. India must leverage this and provide impetus to electrification of these two segments to provide size and scale to India’s e-mobility efforts.

Third, India must push for public transportation to become the preferred mode of travel. At present, India has only 1.2 buses per 1,000 people, which is far below the benchmarks of developing nations. Only 63 of the 458 Indian cities have a formal city bus system and 15 cities have a bus or rail based mass rapid transport system. Public transport must become the core focus area for municipalities and state governments.

Fourth, as we shift from ICE vehicles (2,000 components) to EVs (20 components) India must create a unique ecosystem to encourage and ensure Make in India as far as possible. This would require a phased manufacturing programme across the entire value chain, an efficient fiscal and tax structure, and size and scale aligned to India’s ambition to produce world class vehicles for domestic and global markets. This ecosystem should also be able to attract global OEMs for manufacturing.

Fifth, batteries account for almost 40% of the total purchase cost of EVs today. Domestic battery manufacturing is a massive market opportunity for India to rapidly enable the transition to EVs. A recent study by Rocky Mountain Institute and Niti Aayog concludes that India has the opportunity to pursue manufacturing of both battery cells and packs while importing only raw materials. With this India can capture nearly 80% of the total economic opportunity. New battery technologies, like solid-state lithium ion batteries, sodium ion batteries and silicon-based batteries, are under development. India needs to vigorously pursue research and development in these areas and have a clear roadmap for manufacturing on a mega scale.

Lastly, India’s cities must build charging infrastructure to remove range anxieties. The existing network of our marketing oil companies must be fully utilized to ensure charging facilities in urban areas and highways.

Forecasts indicate that EVs can reach price parity with ICE vehicles by 2024. India must therefore explore newer models of swapping batteries and pay as you go, and facilitate startups like Ola, Ather, Sun Mobility, Zoomcar, Shuttl, Rivigo, who are innovating and disrupting status quo in mobility. A recent report by Morgan Stanley titled India’s Transport Evolution, has highlighted that on account of rapid spread of digitization and mobile telephony and low per capita car usage, half of India’s car fleet will be EVs and half of all miles driven will be on shared platforms by 2040. This new sunrise area can emerge as the biggest catalyst of clean environment, lower trade deficit and new jobs for India.

https://timesofindia.indiatimes.com/blogs/toi-edit-page/electrifying-indias-transport-an-action-plan-for-leapfrogging-towards-a-clean-connected-and-shared-future/

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Govt tells EV makers to localize manufacturing to qualify for subsidies

Control units, chargers and AC units are among a slew of components that electric and hybrid vehicle manufacturers must build locally to qualify for subsidies under a government scheme to encourage the adoption of such vehicles.

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The latest draft guidelines on Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles Scheme (FAME) list components that need to be built locally, with specific deadlines. FAME, which was introduced on 1 April 2015, entered its second phase (FAME-2) in April 2019.The guidelines, issued by the department of heavy industry (DHI) which implements the scheme, cover manufacturers of electric and hybrid two-wheelers, three-wheelers, rickshaws, four-wheelers and electric buses, along with associated deadlines for indigenization. Mint has seen a copy of the guidelines.All electric vehicle and hybrid manufacturers must localize manufacturing of wheel rims integrated with hub motor from 1 October 2019.

Subsidies under FAME-2 are based on battery capacity with energy content measured in kilowatt-hour (kWh). It proposes a uniform demand incentive of ₹10,000 per kWh for all electric vehicles, including hybrids except buses.

The department of heavy industry has also invited electric and hybrid vehicle makers to register to comply with the FAME-2 eligibility criteria. Companies must have at least 25 vehicle dealers and service centres situated in at least two states to be eligible. Only the approved models, including all variants, qualify under the new guidelines.

https://www.livemint.com/politics/policy/govt-tells-ev-makers-to-localize-manufacturing-to-qualify-for-subsidies-1557168102400.html[Edited]

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Mahindra Electric to deploy 50 EVs in Hyderabad

Uber is the world’s largest ride-sharing company. Mahindra had also announced earlier that it will collaborate with Uber.The deployment will take place with 50 units of Mahindra EVs in Hyderabad.

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The electric vehicles on Uber platforms include the e2oPlus hatch and the eVerito sedan.The company has worked closely with the public and private players who have installed 30 common EV charging stations across the city.Mahesh Babu, the CEO of Mahindra Electric on the flag off in Hyderabad said, “As the pioneers of electric mobility in India we have always been at the forefront of smart and sustainable mobility,”“Our collaboration with Uber is aimed at accelerating the large scale adoption of electric vehicles on shared mobility platforms, thereby driving a positive change in the daily commute.” We are excited about the tremendous potential of electric vehicles in India and are committed to supporting the government’s vision of building a viable infrastructure to accelerate the speedy induction of more EVs.” The company will also help the initiative by giving driver education and training. As the ride-sharing services are commonly seen in Hyderabad and used by most MNCs, corporates, government offices etc, Mahindra electric is trying to make the city emission free by deploying its EV fleet.

Source: ElectricVehicles.in

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Ratan Tata invests in Ola electric mobility

Ola Electric Mobility announced that Ratan Tata, Chairman Emeritus of Tata Sons, has invested in the company as part of its Series A round of funding.

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This investment is in Ratan Tata’s personal capacity in the newly formed Electric Mobility company. Tata is also an early investor in ANI Technologies Pvt Ltd, Ola’s parent company. Tata’s investment in Ola Electric is a significant endorsement of the company’s approach to developing an electric mobility ecosystem, including innovations in charging infrastructure, swapping models, and market-appropriate products. Ola Electric is currently running several pilots involving charging solutions, battery swapping stations, and deploying vehicles across two, three and four-wheeler segments. Investment details are still under wraps.Ola to add 10,000 new electric cars to its fleet. Ratan Tata, said, “The electric vehicle ecosystem is evolving dramatically every day, and I believe Ola Electric will play a key role in its growth and development. I have always admired the vision of Bhavish Aggarwal and I’m confident that this will be part of yet another important strategic move into this new business area.”Ola Electric is currently running several pilots involving charging solutions, battery swapping stations, and deploying vehicles across two, three and four-wheeler segments. Ola Electric Mobility Pvt Ltd raised a sum of ₹ 400 crores led by several of Ola’s early investors, Tiger Global and Matrix India and others, as part of its first round of investment. The company was initially established to enable Ola’s electric mobility pilot program in Nagpur.Bhavish Aggarwal, Co-founder & CEO, Ola said, “Mr. Tata has been an inspiration and a mentor to me personally in shaping Ola’s journey over the years. I’m very excited to welcome him on board Ola Electric as an investor and a mentor in our mission of building sustainable mobility for everyone on our planet. He is a visionary who has inspired a generation of entrepreneurs and we are privileged to have his guidance and support once again, as we work towards our goal of a million electric vehicles in India by 2021.”

Source: NDTV

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4 slow & 3 EVs fast chargers installed at Parliament

The Electric Vehicles Charging stations ( both AC and DC ) fast chargers have been installed at the Parliament of India to charge the Electric Vehicles

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which is supplied to the government as part of the Energy Efficiency Services Limited (EESL) tender.Inauguration of charging stations is done by Secretary General of Lok Sabha, Snehlata Shrivastava with the presence of other senior officials from EESL. 10 EVs from Tata and Mahindra were flagged off. According to FAME II Scheme, EESL wants to set up the largest network of chargers in India which starts from metro cities such as Mumbai and New Delhi. EESL has plans to install charging stations at public parking places, fuel stations and shopping malls.

Source: ElectricVehicles.in

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EVs sales cross 7.5 lakh units from 2018-2019 in India

The sales doubled up in terms of electric two-wheelers and increased thrice in electric cars. 1.83 Electric vehicles were sold in India last financial year.As India ranks the fourth largest in the automobile market in the world last year

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the EVs industry has taken a jump in sales of over 7.5 lakh units in FY 2018-19. When the EV growth is compared with the last year it has recorded a 31.8% increase in the growth.This could happen with the government support as it has made the necessary push to bring in EVs or to promote EVs in the country concerning the increasing vehicular pollution and to move towards fulfilling the objective to have at least 30% of EVs on road by 2030. According to Society of Manufacturers of Electric Vehicles, the total sales recorded in 2018-19 has been 759,600 units. It includes two-wheelers (126,000), three-wheelers (630,000) and four wheelers (3600).

Source: ElectricVehicles.in

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Tata Power and MGL join hands to foray into e-mobility and other services

Mumbai: Tata Power, India’s largest integrated power utility, and city gas distribution company Mahanagar Gas Limited (MGL), have signed a Memorandum of Understanding (MoU) to foray into emerging e-mobility business,

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explore synergies of operation in integrated customer services and other value-added services of common interests, Tata Power said today.The MoU was signed by SanjibDatta, Managing Director, MGL, and PraveerSinha, CEO & Managing Director of Tata Power, in Mumbai.The MoU facilitates both the companies to explore possibilities of co-operation in common utility revenue cycle management and customer management solutions, IT solutions, data analytics, geographical information system (GIS); common safeguard activities for underground assets, solar rooftop initiatives and setting up of commercial-scale charging and/or battery swapping stations for electric vehicles, with the allied power management solutions.PraveerSinha of Tata Power said, “This is yet another significant move by Tata Power to offer a wide range of services to the Indian energy consumers.”SanjibDatta of MGL, said, “We are exploring business opportunities beyond gas. This strategic alliance with Tata Power will provide us an opportunity to explore joint synergies and foray into emerging e-mobility business in the Indian mobility space, where we are already a significant player by supplying CNG for various vehicle segments.”MGL is an enterprise of Gail (India) Ltd, Government of Maharashtra and BG Asia Pacific Holdings Pte. Limited.Currently, MGL supplies CNG to nearly 7 lakh vehicles which include more than 3 lakh rickshaws and above 60,000 taxis and about 3 lakh cars in Mumbai, Thane, Mira-Bhayander, Navi Mumbai and beyond.

https://www.livemint.com/companies/news/tata-power-and-mgl-join-hands-to-foray-into-e-mobility-and-other-services-1557736975381.html

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SNAPSHOT: NATIONAL

Natural Gas / Pipelines / Company News

|| Urja Ganga pipeline project: GAIL awards tenders worth ₹10,500 crore || Natural gasconsumption up 1.5% on higher import prices || India’s natural gas production grew for second consecutive year in 2018-2019  ||

Urja Ganga pipeline project: GAIL awards tenders worth ₹10,500 crore

GAIL (India) Ltd has awarded contracts worth ₹10,500 crore to speed up the completion of the Jagdishpur-Haldia&Bokaro-Dhamra Natural Gas Pipeline (JHBDPL) and the Barauni-Guwahati Pipeline (BGPL) pipeline.Bids for pipe supply

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and laying for the integrated 3,400-km-long project, dubbed Urja Ganga pipeline project, have been awarded. A company statement said, “GAIL has placed an order worth ₹475 crore for steel line pipes of approximately 280 km to provide pipeline connectivity from Durgapur to Haldia, including spur line to Kolkata. Till date, the company has committed over ₹12,500 crore for the project.”“The pipeline has already reached Barauni and GAIL is ready for supplying gas to refinery and upcoming fertiliser plant. The pipeline also supplies Natural Gas for Patna City Gas Distribution network (CGD),” the statement added.The work on balance portion is scheduled to be completed by December 2021 in a phased manner.The construction work of Dobhi – Durgapur pipeline section is likely to be completed by December 2019 for supplying gas to MatixFertilizers in Durgapur.GAIL is currently executing around 5,500 km of pipeline-related projects for ₹25,000 crore to provide gas supply largely to the eastern and southern parts of the country.“Another 1,400-km pipeline involving capital expenditure of ₹7,000 crore is under evaluation, which is targeted to be completed by 2023. These pipeline projects by GAIL will be part of the National Gas Grid providing Natural Gas to areas hitherto untouched by the green fuel,” the company said.

https://www.thehindubusinessline.com/economy/urja-ganga-pipeline-project-gail-awards-tenders-worth-10500-crore/article27096961.ece

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Natural gasconsumption up 1.5% on higher import prices

India’s natural gas consumption rose barely 1.5% in 2018-19 as higher imported gas prices limited demand from the power sector and other industries, underlining the difficulty in making the cleaner fossil fuel popular in the country.

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Total gas available for sale in 2018-19 rose to 53.05 BCM from 52.25 BCM a year earlier, according to the oil ministry data. In 2018-19, availability of domestic gas for sale rose 0.4% while import of LNG went up 2.6%. The share of LNG in total gas consumption in the year was 51%.At this rate of demand growth, it would be hard for India to achieve its goal of raising the share of natural gas in its energy mix to 15% by 2030 from the current 6%. In a bid to penetrate much of the country with gas distribution infrastructure, the downstream regulator awarded city gas licenses for 136 geographical areas in a year, which should raise piped gas coverage to 70% of the country’s population from 20% now. But some industry executives said policy push should be aimed at power sector which is a potentially heavy consumer.“The stagnancy in demand is mainly due to price sensitivity of customers,” said K Ravichandran, an analyst at rating agency ICRA. Power plants avoid using expensive LNG as electricity distributors prefer cheaper electricity produced from coal. This is why plant load factors at gas-based generators have been low, he added.Other gas-consuming industries switching to liquid fuel when LNG rates rose sharply last year also kept gas demand volatile and stagnant, Ravichandran said. Most factories have multi-fuel boilers and can easily switch to liquid fuel if that becomes economical. Unlike fuel oil, propane or coal that’s used as fuel by many industries, natural gas is not in the ambit of the goods and services tax. This means industries do not get input tax credit for gas consumed.The fertiliser sector, another key consumer of gas, didn’t see operational capacity expansion last year. A new facility will start functioning this year and that will likely boost gas consumption.

https://economictimes.indiatimes.com/industry/energy/oil-gas/natural-gas-consumption-up-1-5-on-higher-import-prices/articleshow/69135940.cms

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India’s natural gas production grew for second consecutive year in 2018-2019

The consecutive growth for the second-straight financial year comes at a time the government is targeting a quick ramp up in the share of natural gas in the overall energy basket, arrest a consistent declining trend in its domestic crude oil production.

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India’s natural gas production grew for the second consecutive year in 2018-2019, primarily due to increase in production from fields operated by government-owned Oil and Natural Gas Corporation (ONGC).India’s cumulative natural gas production grew 0.69% to 32,873 MMSCM last fiscal, as compared to 32,649 MMSCM produced in financial year 2017-2018. Gas output had grown 2.35% in 2017-2018, reversing from a six-year declining trend.The consecutive growth for the second-straight financial year comes at a time the government is targeting a quick ramp up in the share of natural gas in the overall energy basket, arrest a consistent declining trend in its domestic crude oil production, which dropped for the eighth consecutive year last financial year and reduce its mounting crude oil import bill.An ETEnergyworld analysis of year-wise data on natural gas production since 2002 indicates that the country recorded its highest ever natural gas production from onshore blocks in 2018-2019. Gas production from onshore blocks including Coal Bed Methane (CBM) grew 1.12 per cent to 10,756 MMSCM last financial year.Offshore production increased marginally to 22,117 MMSCM as compared to 22,011 MMSCM produced in 2017-2018.ONGC’s natural gas production in March this year increased 6% to 2,135 MMSCM. Cumulatively, the company’s natural gas production for the full financial year ended March 2019 increased 5.31% to 24,674 MMSCM.Oil India, the second largest government-owned upstream players, recorded a 1% drop in natural gas production at 235 MMSCM in March. Cumulatively, the company’s gas output last fiscal decreased 6% to 2,722 MMSCM.Natural gas production from fields operated by private players or Joint Ventures declined 16.22% to 446 MMSCM in March 2019, as compared to 532 MMSCM produced in the corresponding month (March 2018).The drop during the month is primarily attributed to decline in production from Coal Bed Methane blocks in Madhya Pradesh and West Bengal and decline in natural gas production from Eastern and Western offshore blocks.Cumulatively, production by private and JV firms declined 14% to 5,477 MMSCM in 2018-2019. The oil ministry said the decline is attributed to drop in CBM production from Reliance Industries’ Sohagpur West CBM block, closure of two wells in D1D3 field and loss from Cairn Oil and Gas’ Mangala field due to delay in upgrade of Mangala Processing Terminal.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/indias-natural-gas-production-grew-for-second-consecutive-year-in-2018-2019/69108091

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SNAPSHOT: NATIONAL

Policy Matters/Gas Pricing/Others

|| Despite PM Modi’s claim, India’s oil import dependence jumps to 84 per cent || Sindri hopes to get back glory || Despite PM Modi’s claim, India’s oil import dependence jumps to 84 per cent

Despite PM Modi’s claim, India’s oil import dependence jumps to 84 per cent

Prime Minister Narendra Modi may have set a target to cut India’s oil import dependence by 10% but the country’s reliance on foreign oil for meeting its energy needs has jumped to a multi-year high of nearly 84 per cent, latest government data showed. 

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Speaking at the ‘Urja Sangam’ conference in March 2015, the Prime Minister had said that India needs to bring down its oil import dependence from 77% in 2013-14 to 67% by 2022 when India will celebrate its 75th year of independence. Further, the dependence can be cut to half by 2030, he had said. But with consumption growing at a brisk pace and domestic output remaining stagnant, India’s oil import dependence has risen from 82.9% in 2017-18 to 83.7% in 2018-19, according to the oil ministry’s Petroleum Planning and Analysis Cell (PPAC). Import dependence in 2015-16 was 80.6%, which rose to 81.7% in the following year, PPAC said. The country’s oil consumption grew from 184.7 MMT in 2015-16 to 194.6 MMT in the following year and 206.2 MMT in the year thereafter. In 2018-19, demand grew by 2.6% to 211.6 MMT.In contrast, domestic output continues to fall. India’s crude oil output fell from 36.9 MMT in 2015-16 to 36 MMT in 2016-17. The trend of negative growth continues in the following years as well as output fell to 35.7 MMT in 2017-18 and to 34.2 MMT in the fiscal year that ended on March 31, 2019, PPAC data showed. 
The government is focusing on measures like increasing domestic production, promoting the use of biofuel and energy conservation to reduce dependence on imported crude oil. It changed exploration rules multiple times during the last five years to get the elusive private and foreign investment. The previous New Exploration Licensing Policy (NELP) was changed to Hydrocarbon Exploration and Licensing Policy (HELP) promising pricing and marketing freedom. HELP brought in open acreage licensing policy that gave companies freedom to choose areas they want to explore. Discovered oil and gas fields, taken away from state-owned firms, were also auctioned but neither this nor the open acreage policy managed to get big names to invest in exploration and production of oil and gas. 

Source: ET Energyworld [Edited]

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Sindri hopes to get back glory

As Dhanbad gears up to vote on May 12, residents of Sindri, located around 25km from the district headquarters, wish that the town gets back its lost glory with the establishment of Rs 6,500-crore factory of Hindustan Urvarak

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and Rasayan Ltd (HURL).HURL is a joint venture of NTPC (30 per cent), Coal India Ltd (30 per cent), Indian Oil (30 per cent) and Fertilizer Corporation of India (10 per cent).Reminiscing about the town’s beauty, Khan, a Dubai resident said, “Even a fool would not have left such a beautiful place with so much of greenery around. But after the closure of the fertiliser factory in 2002, everybody became jobless. We had to leave the town to make both ends meet,” Khan added.Deepak Kumar Dipu, a member of Sindri Chamber of Commerce and Industry, recalled how the picturesque Priyadarshini lakes — a network of seven interconnected water bodies — complete with boating and fishing facilities and surrounded by fruit orchards used to attract tourists and picnickers.“Four of those seven lakes have dried up. We also used to get water five times a day for three hours and electricity was supplied almost 20 hours per day. Streets were swept and garbage was collected twice every day,” Dipu said.A retired FCI employee Sewa Singh said medical emergencies forced residents had to rush to Dhanbad, 25km away, while the 205-bed hospital, set up in 1952, had been lying defunct since 2003.“We are thankful to the Modi government for taking the bold decision to establish the factory, which is expected to revive the town’s lost glory to some extent,” he said.Additional general manager of Sindri unit of HURL M.C. Karan said things were moving on the right track and production was likely to start by May 2021 if everything went well.“At present, work on setting up the urea, ammonia and power plants in addition to a water filtration plant and a gas metering plant was underway,” he said.The foundation stone for the factory, comprising a 3,850-tonnes-per-day ammonia plant, 2,220-tonnes-per-day urea plant and a captive power plant of 30MW, was laid by Modi on June 25, 2018.The natural gas-based factory is being set up on 751 acres belonging to FCI. Laying of pipeline for supply of gas is being carried out by Gail (India) Ltd.

https://www.telegraphindia.com/states/jharkhand/sindri-hopes-to-get-back-glory/cid/1690309

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SNAPSHOT: NATIONAL

LNG Development and Shipping

Will Petronet LNG benefit from lower gas prices?

A fall in prices of liquified natural gas in Asia offers state-owned Petronet LNG Ltd. a chance to use its additional capacity coming on-stream by June to sell the fuel at a higher margin.

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The Singapore liquified natural gas prices—the benchmark LNG prices for Asia—have declined close to 40% to $5.1 per MMBtu from start of the year, according to Bloomberg data. That’s because of a supply glut and high inventory in North Asia.Petronet’sDahej, Gujarat plant with a capacity of 15 MMTPA is running at autilisation of over 100% because of long-term contracts it signed. That doesn’t allow the India’s largest gas importer and regasifier to sign new contracts based on spot prices.But the company is expanding its capacity to 17.5 MMTPA and that is expected to be completed by June.One of the concerns around Petronet LNG for long time was that there were no off-take contracts tied-up ahead of this capacity expansion, said ProbalSen, senior vice president research, Centrum Broking. But it becomes an advantage as spot LNG prices have fallen sharply, he said.Gas contracts are indexed to oil prices through slope. Most gas contracts in Asia have a slope of 11-12 percent which means if oil trades at $100 a barrel, the gas will cost $11-12 per unit.In the spot market, slope has fallen to 6-7. That implies spot prices are at a further discount to long-term contract prices.That gives Petronet LNG room to get fresh contracts linked to spot prices and charge a higher margin, since it’s the dominant gas importer in the country.While Sen agreed that these spot prices may be positive from six-month perspective, he said it’s not certain whether it will sustain. He said long-term contracts would be required to ensure stability and earnings visibility.

https://www.bloombergquint.com/business/lng-prices-how-petronet-lng-stands-to-gain-from-lower-gas-prices

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INTERNATIONAL

Natural Gas / Transnational Pipelines / Others

|| Russian oil production fell in April, while gas output rose || Saudi Aramco plans U.S. shale gas move || Anadarko backs Occidental’s revised bid, pressuring Chevron to respond || US total oil, gas rig count adds 18 on week to 1,084: S&P Global Platts Analytics || BP is not on the hunt for US oil and gas deals, says CEO Bob Dudley || China’s Sinopec quarterly profit drops 21% on crude prices || In Iraq, gas set to overtake oil projects ||  CNG mobile pipeline trailers gain momentum in the U.S. ||

Russian oil production fell in April, while gas output rose

Russian crude production was down 0.6 percent month-on-month in April as all Russian oil companies except Gazprom Neft reduced oil production, but gas output rose by 3.9 percent year-on-year.

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Oil output continues to be driven by the production cuts at integrated oil companies under the OPEC+ agreement, according to the latest figures from federal state budgetary organization the Central Dispatching Department of Fuel Energy Complex (CDU TEK).The exception was Gazprom Neft, which increased crude output by 3.3% month-on-month. The highest production cuts were recorded by Bashneft and Surgutneftegas, at 1.2% and 0.9% month-on-month, respectively. Lukoil, Rosneft and Tatneft reduced crude output by 0.7%, 0.4% and 0.4% month-on-month, respectively. Non-integrated oil producers decreased crude production by 1.7% month-on-month.Russian gas production was up 3.9% year-on-year in April. Novatek’s consolidated production increased 14% year-on-year, driven by the ongoing ramp-up at its Yamalliquified natural gas (LNG) plant. Lukoil, Rosneft and Surgutneftegas reduced gas output by 3.4%, 3.1% and 0.9% year-on-year, respectively.Gazprom’s gas production was 44.2 BCM in April, according to Interfax, showing a modest increase of 1.6% year-on-year.

https://www.hellenicshippingnews.com/russian-oil-production-fell-in-april-while-gas-output-rose/

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Saudi Aramco plans U.S. shale gas move

Saudi Aramco, which has an ambitious plan to grow its natural gas business, is considering investing in the Marcellus shale gas assets of Norway’s Equinor in what would be the first-ever foray of Saudi Arabia’s oil giant into the natural gas business outside the Kingdom,

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Bloomberg reported on Wednesday, quoting people familiar with the plans.Aramco is mulling over investing in Equinor’s Marcellus position either via a joint venture or by acquiring a stake in the operations, according to Bloomberg’s sources, who noted that talks between Aramco and Equinor are still at an initial stage.The Saudi state oil company may also team up with other oil firms to get U.S. shale gas acreage, the sources told Bloomberg.Equinor, for its part, operates assets in the Marcellus, in the Eagle Ford, and in the Bakken in the U.S.The Norweian firm wants to add more acreage to its Appalachian gas assets, head of strategy Al Cook told Bloomberg earlier this year, while Equinor is also said to be considering selling some or all its operations in the Eagle Ford.Aramco is in talks with many partners for a potential joint venture or partnership in order to grow its international gas position, chief executive Amin Nasser said last month.In January this year, Nasser told Reuters in an interview that the oil firm was looking to spend billions of U.S. dollars on natural gas acquisitions in the United States as part of Aramco’s strategy to bolster its gas business and become a global natural gas player.At the end of February, Nasser said that Saudi Arabia aims to export as much as 3 billion cubic feet of gas per day by 2030 as part of its goal to boost the international footprint of its natural gas business.In November 2018, Nasser said that Aramco, already a top global oil producer but not as strong in gas production, will boost efforts to grow its natural gas output, from both conventional and unconventional reserves.Saudi Aramco’s gas development program is expected to attract as much as US$150 billion in investments over the next decade, Nasser said.

https://oilprice.com/Latest-Energy-News/World-News/Saudi-Aramco-Plans-Shale-US-Shale-Gas-Move.html

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Anadarko backs Occidental’s revised bid, pressuring Chevron to respond

Anadarko Petroleum Corp’s board on Monday, May 6, backed a $38 billion bid from Occidental Petroleum Corp, adding pressure on rival Chevron Corp to raise its offer or walk away from the takeover contest.

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The decision capped a series of moves by Occidental to finance and reduce hurdles before its $38 billion deal after Anadarko balked at several earlier offers. Occidental received the board’s endorsement after raising $18.8 billion in cash pledges that allowed it to avoid a vote by its shareholders on the deal.Chevron has four days to decide whether it wants to alter an existing merger agreement that Anadarko already accepted or make a new bid. A spokesman confirmed it had received the notice of termination from Anadarko and declined comment on its next steps.Anadarko said its board had unanimously determined that the revised Occidental proposal constituted a “superior proposal” and that it intended to terminate the Chevron merger agreement, a decision that would see it pay Chevron a $1 billion termination fee.The decision was a victory for Occidental Chief Executive Vicki Hollub, who pressed Anadarko’s board to reject the Chevron agreement and pulled in support from billionaire Warren Buffett for the deal. She convinced Buffett to invest $10 billion in the deal after flying to Omaha, Nebraska, to make the case.Days later, Hollub won a deal with French oil giant Total SA to take most of Anadarko’s international assets, including a liquefied natural gas project in Mozambique estimated to cost up to $25 billion to complete. Total agreed to pay $8.8 billion for the assets once the merger goes ahead.

Hollub wants her target’s prime position in the top U.S. shale field. Anadarko holds nearly a quarter million acres (102,000 hectares) of land in the Permian Basin, the biggest prize for Chevron and Occidental. The Permian has become the epicenter of the shale oil-and-gas boom, helping drive U.S. oil output to a record 12 million barrels a day (bpd), more than Russia and Saudi Arabia.Anadarko first disclosed a merger deal with Chevron on April 12 after snubbing a higher bid from Occidental. That prompted Occidental’s Hollub to go public with her offer, to pressure Anadarko to reconsider its stance.The change of heart came after Occidental increased the proportion of cash in its $76 per share offer to 78% cash and 22% stock, removing a stock exchange requirement for the approval of Occidental’s shareholders.Some investors in Occidental oppose the decision to bypass a shareholder vote of approval. T. Rowe Price Group Inc, said on Monday it intended to vote against the Occidental board of directors at the annual meeting on Friday in protest.Occidental said in a statement that it looked forward to completing the discussions and “executing our merger agreement with Anadarko to complete this exciting transaction.”

Source: LNG Global

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US total oil, gas rig count adds 18 on week to 1,084: S&P Global Platts Analytics

The US active rig count bounced back this week as operators deployed an additional 18 oil and natural gas rigs to lift the total to 1,084 in the week that ended Wednesday, according to S&P Global Platts Analytics.

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The number of rigs targeting gas rose by nine to 224, while the oil-directed rig total increased by 11 to 857.While the rig count rose in multiple basins, Oklahoma’s SCOOP-STACK added the most at four, increasing to 87. The Bakken Shale’s count rose by one to 61 rigs, while Colorado’s Denver-Julesburg Basin increased by two to 30. The Permian Basin also added two rigs to reach 464. The Eagle Ford proved to be the only oil-rich play to shed a rig, dropping by one to 83.n the gas-rich plays, the Haynesville Shale slid two rigs to 61, while the Marcellus Shale added one rig to reach a total of 63. Rig activity in the Utica Shale remained flat at 15.Oil prices have strengthened over the past year while gas prices have struggled. In late December, the spot WTI crude price fell as low as $44.48/b. However, it averaged around $65/b in April, prompting more activity by producers.However, the spot Henry Hub gas price has reversed course. After averaging more than $3/MMBtu during the first month of 2019, it averaged $2.65/MMBtu in April, due in large part to low domestic demand in the ongoing shoulder season.

https://www.hellenicshippingnews.com/us-total-oil-gas-rig-count-adds-18-on-week-to-1084-sp-global-platts-analytics/

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BP is not on the hunt for US oil and gas deals, says CEO Bob Dudley

A battle between Chevron and Occidental Petroleum to take control of U.S. driller Anadarko Petroleum is fueling speculation about more oil and gas deal-making, but BP CEO Bob Dudley on Tuesday

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suggested his company will stay on the sidelines.BP purchased BHP Billiton’s U.S. shale assets for $10.5 billion last year, giving the oil major a foothold in the Permian Basin and other regions where drillers extract oil and gas from rock formations. BP took over those operations last month.“We’ve got our plate full. It’s the biggest acquisition we’ve done in 20 years,” Dudley told CNBC’s Brian Sullivan at the Milken Institute Global Conference in Beverly Hills, California.“So I think we’re fine, not on the hunt, but this doesn’t surprise me we’re starting to see some of the consolidation in the Permian,” he said, referring to the top U.S. shale oil region stretching from western Texas to southeastern New Mexico.Anadarko’s acreage in the Permian is widely seen as the company’s crown jewel and the biggest prize for the winning bidder. Warren Buffett’s Berkshire Hathaway entered the fray on Tuesday, committing to a $10 billion investment in Occidental to help the driller acquire Anadarko.Dudley said BP would not put in a bid to rival Chevron’s and Occidental’s offers for Anadarko.Dudley expects oil and gas companies to continue striking deals and swapping acreage in order to string together continuous strips of land in the Permian.Before the BHP purchase, BP’s onshore U.S. operations mostly produced natural gas. Dudley said the “great management team” that oversaw that business will bring their experience from the gas fields to BHP’s oil-rich assets.

https://www.hellenicshippingnews.com/bp-is-not-on-the-hunt-for-us-oil-and-gas-deals-says-ceo-bob-dudley/

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China’s Sinopec quarterly profit drops 21% on crude prices

China Petroleum & Chemical Corp (Sinopec) suffered a 21% drop in first-quarter net earnings, as growth in refining business was offset by weaker crude prices in upstream operations.

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Asia’s largest refiner posted first-quarter net profit of 14.76 billion yuan ($2.3 billion) under Chinese accounting standards, with refinery throughput up 2.7% year on year to 61.78 million tonnes, or about 5.01 million barrels per day (bpd).Sinopec’s refining margins could be squeezed in the second quarter, with the company seeking to replace lost Iranian barrels as Washington looks set to end all sanction exemptions on Iranian imports from May.The Chinese refiner processes more Iranian oil than any other company.The state oil and gas group reported realized crude oil prices of $57.66 a barrel, down 3.6% from a year earlier.Its realized natural gas prices were $7.07 per thousand cubic feet, up 12.6% year on year.Sinopec’s first-quarter crude oil production slipped 0.8 percent from a year earlier to 70.81 million barrels while natural gas output rose by 6.7% to 255.8 billion cubic feet.

https://www.hellenicshippingnews.com/chinas-sinopec-quarterly-profit-drops-21-pct-on-crude-prices/

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In Iraq, gas set to overtake oil projects

For the world’s fourth largest crude producer, natural gas is about to take pole position.Rystad Energy forecasts that gas developments in Iraq will overtake oil projects in 2019, measured in resources

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sanctioned for development, flying in the face of historical norms for the upstream industry in the country.“Rystad Energy sees gas as the clear frontrunner in the region over the next four years,” says Aditya Saraswat, Analyst on Rystad Energy’s Upstream team.New developments are on track to triple the country’s gas production from just over 1 Bcfd in 2017 to about 3 Bcfd in 2022, according to Rystad Energy.The shift is driven by more favorable investment conditions in the Kurdistan Region of Iraq (KRI), combined with consistent export revenues and improved regional security, boosting international oil companies’ (IOCs’) appetite for investment in the region. Upcoming final investment decisions (FIDs) on new projects are dominated by gas developments in KRI, standing in stark contrast to the oil projects that have typically reigned supreme in Federal Iraq (FI).Previously, inadequate infrastructure and weak incentives meant that most produced gas in Iraq was simply flared, with just a small portion feeding power plants for commercial use. Upstream developments in the past were also generally oil fields under the jurisdiction of Federal Iraq, and domestic gas demand was addressed primarily through imports from Iran. Pacified by output in FI, IOCs were also largely uninterested in exploring options in KRI due to the political instability in the region. However, much has changed in recent years as gas imports have grown more expensive and the political situation in KRI has calmed.A Rystad Energy analysis of sanctioned projects reveals that new gas developments in the Kurdistan Region of Iraq could potentially add 3.3 billion barrels of oil equivalent by 2022.

https://www.hellenicshippingnews.com/in-iraq-gas-set-to-overtake-oil-projects/

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CNG mobile pipeline trailers gain momentum in the U.S.

Hexagon Composites’ business area Hexagon Mobile Pipeline has been awarded an order for TITAN® gas transport modules from Certarus Ltd., with a total value of USD 5.2 million.

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Deliveries of the TITAN® 4 modules are scheduled for the second quarter of 2019. In 2018, Hexagon and Certarus extended their strategic long-term agreement.The Mobile Pipeline® modules will support Certarus’ continued growth into both industrial and oil & gas markets. The growth of Certarus’ Mobile Pipeline business is driven by new industrial applications and the electrification of oil and gas development. The electrification of oil and gas production is being fueled by the abundance of low cost and clean burning natural gas power, which has made on-site power generation very attractive.“Our customer’s mandate to adopt low carbon energy solutions has accelerated Certarus’ growth. We are adding an additional location in Northern Ontario to support mining and industrial customers in that region. Certarus is also seeing a ramp in activity in the Texas Permian basin from contracts related to the electrification trend in the oil and gas industry,” said Curtis Philippon, President & CEO of Certarus Ltd. “We are excited that customers across all industries are recognizing the significant cost savings and environmental benefits that are available through Certarus’ mobile pipeline services.”“We really value our long-term relationship with Certarus. Their success has been key to our own success,” commented Jon Smith, President of Hexagon Mobile Pipeline. “New applications are driving the need for Mobile Pipeline® products and Certarus has provided valuable input to help drive our development of products and services.”

http://www.ngvjournal.com/s1-news/c1-markets/cng-mobile-pipeline-trailers-gain-momentum-in-the-u-s/

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Natural Gas / Transnational Pipelines / Others

Global LNG Development

Natural Gas / LNG Utilization

LNG as a Marine Fuel / Shipping

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

 

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SNAPSHOT: INTERNATIONAL

Global LNG Development

|| China’s tariffs on US Liquefied Natural Gas to have long-term impact || Global LNG-Prices climb but cargoes change direction signal uncertainty || Mozambique LNG and the Government of Mozambique expect to make major announcement on 18 June 2019 || Canadian LNG project in Oregon faces delay for regulatory approvals || Chart Industries introduces new technology to process LNG || EU promises to double U.S. LNG imports within 5 years || Australia’s NSW state approves Port Kembla LNG import terminal || Bangladesh’s new LNG import terminal begins to feed gas to domestic grid || Axpo, German LNG Terminal project group seek capacity deal || Oman LNG revenues up 60 per cent as output, prices rise || QP issues tender for LNG facilities || USA: LNG production starts up at Cameron LNG export terminal in Louisiana || 

China’s tariffs on US Liquefied Natural Gas to have long-term impact

China’s decision to hike import duties on US liquefied natural gas (LNG) is a move that means very little for the market in the short-term, but it has the potential to deliver outsised consequences the longer the levies remain in place.

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As part of its latest round of retaliatory tariffs on US imports, Beijing increased the duty on LNG shipments from 10 per cent to 25pc. This will make it even more uneconomic for Chinese buyers to purchase LNG cargoes from the US. The 10pc tariff put in place last year has already devastated the trade, with China’s imports of the fuel dropping sharply. China imported 25 US LNG cargoes in the first half of 2018, and this slipped to just eight in the second half, according to vessel-tracking data compiled by Refintiv. This year, a mere three cargoes have been delivered, one each in January, February and March, and no more are currently scheduled to arrive in the coming months. This means in practical terms that raising China’s import duty will have little impact on global LNG flows. But there are certain to be longer-term consequences from the fastest-growing LNG market effectively locking out the world’s fastest-growing supplier. Much of the new LNG coming on stream this year and next is based in the US, as companies rush to take advantage of the plentiful and cheap supplies of natural gas delivered by the nation’s shale boom. It’s also worth noting that the US is the dominant player in the next wave of LNG projects being planned around the world. The US currently has 64.2 MMT of annual LNG capacity under construction, the bulk of which will hit the market this year and next. Together with Canada, it also has a further 164.2 MMT in capacity for which the final investment decisions are due by the end of next year. The market expectation is that China will overtake Japan as the world’s largest LNG importer sometime in the next decade, even though its annual rate of growth will moderate from the breakneck pace of more than 40pc for the past two years.

This means China will become the most important single player in the LNG buyers’ market, just as it already is for several other commodities, such as iron ore, copper, crude oil and coal. Both existing and emerging US LNG producers won’t want to be shut out of that market, but if the trade war continues for several years it’s likely that some projects will struggle to secure the necessary financing to progress. The longer the tariff war continues, the more the US will hand advantages to new rival producers in countries such as Russia.

https://www.dawn.com/news/1482385/chinas-tariffs-on-us-liquefied-natural-gas-to-have-long-term-impact

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Global LNG-Prices climb but cargoes change direction signal uncertainty

Asian spot prices for LNG edged up this week amid stronger bids from market players with short positions and expectations of a rise in northern hemisphere summer demand in Asia.

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The price for delivery of LNG to northeast Asia in June is estimated at $5.60 per MMBtu, a 30 cent rise from the previous week.“The buying is still not strong, but we understand that there are a few players short for summer,” an LNG trader said.The uptick may not be long-lasting as demand from end-users remained subdued, while production from Australia is also going up, creating additional supply in the Pacific basin.Traders in Japan and China were largely on holiday this week, with trading activity led by portfolio and trading firms.Asian prices have risen from about $4.40 MMBtu in late March, when they were below European gas prices, to trade at a premium, which is now firming.But the Asian premium that was still below $1.00 MMBtu on Friday, May 2, is not enough to make Asia a more attractive destination for spot cargoes from the Atlantic.In Europe, the Dutch June gas price rose around 15 cents in the past week to about $4.80 MMBtu, with cargoes in northwest Europe priced at around a 30 cent discount to the gas price.Gas traders expect European June contracts to be supported by maintenance work on Norwegian gas facilities and fields. Some 50 million cubic metres a day are expected to be out of action in Norway next week and that may double the following week.“Asian LNG prices are still very much keeping up with what’s happening in Europe,” a market source said.Uncertainty about the development of price correlation between Asia and Europe has left the destination for some cargoes unclear.Three cargoes loaded in the United States changed their direction from Europe to Asia, Refinitiv Eikon data showed.Royal Dutch Shell’s Pan Africa turned away from Europe while crossing the Atlantic Ocean. Trafigura’s Gaslog Santiago was heading to Gibraltar but turned south before entering the strait. Naturgy’s Iberica Knutsen took a course towards Spain but turned back to head to Taiwan.In Europe, two vessels appeared directionless, with the LNG Sokoto changing its destination twice over a week and the Al Khattiya took a week to travel from the south of Spain through the English Channel.In Americas, Mexican utility CFE awarded its 17-cargo tender to a variety of companies, including BP, Shell and Naturgy, market sources said.

https://www.hellenicshippingnews.com/global-lng-prices-climb-but-cargoes-change-direction-signal-uncertainty/

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Mozambique LNG and the Government of Mozambique expect to make major announcement on 18 June 2019

Following a meeting, the President of Mozambique His Excellency Filipe Nyusi and Anadarko Petroleum Corporation Chairman and Chief Executive Officer Al Walker announced plans f

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or Mozambique LNG to make an important announcement during a celebratory event on 18 June 2019 in Maputo.It was also noted that all issues under negotiation between the Government of Mozambique and Anadarko have been satisfactorily resolved.“We expect 18 June 2019 will become a historic day in Mozambique as we announce that one of the most important and transformational projects in our country’s history is ready to advance to the next stage,” said His Excellency President Nyusi. “We recognize Anadarko’s continued commitment to moving this project forward to becoming a reality.”“With commitments for financing in place, off-take secured, and all other issues under negotiation successfully addressed, we are excited to take the next step with the expected announcement of a final investment decision for the Mozambique LNG project on 18 June 2019,” said Walker.

https://www.hydrocarbonengineering.com/gas-processing/09052019/mozambique-lng-and-the-government-of-mozambique-expect-to-make-major-announcement-on-18-june-2019/

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Canadian LNG project in Oregon faces delay for regulatory approvals

A Calgary company proposing to build an LNG export facility in Oregon says the timeline for the project  worth an estimated $10 billion US  is being delayed by about a year.Pembina Pipeline Corp. says it has decided to minimize project spending

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at about $50 million this year as it tries to vault remaining regulatory and permitting hurdles for the Jordan Cove liquefied natural gas project at Coos Bay, Ore., and a related 370-kilometre pipeline.The reduced level of work is expected to result in construction delays such that first gas exports are now expected one year later than the targeted date in 2024.Pembina, which inherited the project when it purchased Veresen Inc. in 2017, said it received a draft environmental impact statement from the U.S. Federal Energy Regulatory Commission in March that provided a framework for approval of the Jordan Cove project as proposed with “reasonable” conditions.However, a final FERC decision is not expected until next January, and critical Oregon state permits aren’t expected until near the end of this year.A previous, smaller version of the project was denied by FERC in 2016 due to landowner objections and what it said was a failure to demonstrate demand for its product.Pembina says it still intends to bring in partners for the pipeline and liquefaction facility to reduce its ownership to between 40 and 60 per cent.It said it has non-binding off-take agreements with customers in excess of the planned design capacity of 7.5 million tonnes per year but will pause executing binding deals until early 2020.

https://www.cbc.ca/news/canada/calgary/canadian-lng-project-delayed-1.5120991

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Chart Industries introduces new technology to process LNG

Chart Industries, Inc. announced the release of IPSMR®+ process technology, which builds upon the IPSMR® process. The additional features of the new product will further lower power consumption, plant emissions and plant cost per ton.

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Chart’s IPSMR®+ delivers industry leading project economics by producing more LNG while reducing plant capital cost. In the new age of LNG modular midscale solutions, Chart’s IPSMR® process has been adopted by EPCs, Project Developers, and validated by both National and International Oil Companies. Specifically, IPSMR®, along with the industry-proven brazed aluminum heat exchangers, Core-in-Kettle® heat exchangers and Chart’s Hudson air cooled heat exchangers, will be utilized on multiple mid-scale export terminal projects.The next generation of liquefaction technology IPSMR®+ builds on the Chart’s single mixed refrigerant design and adds a pre-cooling step. The IPSMR®+ process provides as much as 8% increased efficiency over IPSMR®. Chart’s less complicated method for pre-cooling IPSMR® requires approximately 25% less plot space than conventional pre-cooled liquefaction technologies, independent of which rotating equipment is utilized.  In addition to broadening the mid-scale offering, with the additional efficiency, capacity and cost benefits, IPSMR®+ is an excellent choice for baseload LNG plants using multiple identical liquefaction trains. “IPSMR®+ has been evaluated by two international oil companies who have compared our own process and other technologies and determined it continues to be the most efficient,” said Jill Evanko, Chart Industries’ CEO. “We are proud of our equipment and processes which serve a broad set of applications and can be customized to what works best for the operator and our partners in each project.” 

http://www.ngvjournal.com/s1-news/c7-lng-h2-blends/chart-industries-launches-ipsmr-process-technology-for-lng/

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EU promises to double U.S. LNG imports within 5 years

The European Union has promised to double its intake of U.S. LNG over the next five years with the annual total reaching the equivalent of 8 BCM in 2023, double the current annual rate of imports, Forbes’ Dave Keating reported last week, citing an announcement

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by the European Commission.The news is good for both sides. For U.S. LNG producers, a growing export market is always good news. For the European Union, this pledge to buy more U.S. LNG will defuse a tariff bomb that President Trump threatened to blow up last year: he said he would slap import tariffs on German cars if the EU did not play nice. With few options available, this is exactly what the EU has done.But the increase in U.S. LNG imports is good news for the European Union in more than one way. It will also reduce its reliance on Russian gas something that has been a thorn in the side of several central European EU members, most notably Poland and the Baltic States. These, by the way, are already the chief buyers of U.S. LNG and builders of import terminals. However, they are small potatoes compared with Germany, the EU’s largest energy consumer and gas importer.At a recent meeting in Brussels when the import doubling pledge was made, U.S. Energy Secretary Rick Perry praised the EU for its decision saying U.S. LNG imports were more secure than Russia deliveries. European Energy Commissioner Miguel Arias Canete, however, emphasized the price component in the LNG import dynamics: “Given our heavy dependence on imports, U.S. LNG, if priced competitively, could play an increasing and strategic role in EU gas supply,” he said.Indeed, the energy industry is currently working on making U.S. LNG more competitive. The reason for this competitiveness issue is geographical: Novatek’s Yamal LNG plant is a lot nearer European import terminals and this makes the Russian gas cheaper. Novatek supplied 1.41 MMT to Europe in February, which made it the largest EU LNG supplier for that month. A billion cubic meters of natural gas is equivalent to around 740,000 tons of liquefied gas.Besides price issues, however, there is a bigger one: there is not enough LNG demand in Europe yet, it seems. Poland and the Baltic States are building regasification terminals at an unprecedented pace eager to break their dependence on Russian gas but the demand is simply not there and the capacity of these terminals currently exceeds demand by quite a bit.Even with these challenges, U.S. LNG exports to Europe have soared by more than 200% since last year when EC President Jean-Claude Juncker promised President Trump that the EU would buy more LNG from the United States. And they will continue rising even with the current challenges. For starters, Poland and the Baltic States are prepared to pay more for U.S. LNG. Then, the EU is firmly on a quest to reduce its dependence on fossil fuels, and LNG—along with pipeline gas—is called a bridge fuel for a reason. The faster the industry solves the price problem and the sooner EU politicians figure out a way to stimulate demand faster rather than slower, the faster both sides will be able to reap the benefits of increased LNG supply.

https://oilprice.com/Energy/Natural-Gas/EU-Promises-To-Double-US-LNG-Imports-Within-5-Years.html

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Australia’s NSW state approves Port Kembla LNG import terminal

Australia’s New South Wales state approved plans by a Japanese-backed consortium to build a A$250 million ($176 million) LNG import terminal at Port Kembla, looking to cut gas prices and avert a supply shortage.

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The Port Kembla project is the first of five proposed LNG import terminals in Australia to receive planning approval. All of them are looking to help plug a looming supply shortage expected in the country’s southeast in the 2020s.Australian Industrial Energy (AIE), the joint venture planning to build the berth for a floating LNG import facility at Port Kembla, about 100 km (60 miles) south of Sydney, said the approval means it can now focus on lining up gas customers.AIE is aiming to make a final investment decision around the middle of this year. “This terminal could supply 70% of our State’s annual gas demand and help ease the cost of energy bills for NSW families and small business owners,” New South Wales Energy and Environment Minister Matt Kean said in a statement.The AIE joint venture partners are Australian mining billionaire Andrew Forrest’s Squadron Energy, Japan’s JERA Co, the world’s biggest buyer of LNG, and Japanese trading firm Marubeni Corp.If they decide to go ahead with the project in the middle of this year, first gas could be delivered by late 2020, the partners said in a joint in a joint release.Squadron Energy Chief Executive Stuart Johnson declined to say how much of the project’s capacity of 100 petajoules a year the partners want to have locked into five-year gas supply agreements before making a final investment decision.The AIE partners want sales to match the LNG volume that JERA, a joint venture between Tokyo Electric Power and Chubu Electric Power, has agreed to supply.Price discussions are likely to be tough, though, as spot LNG prices have slumped due to a glut in North Asia and are about half the price of LNG term contracts linked to oil prices.“We believe we’ve got the best priced LNG in the market.But if someone wants to, for example, take a risk on spot and they want to book capacity on the vessel and (pay a) toll, we’re open to that,” Johnson said.AIE managed to secure state approval ahead of AGL Energy , which was first to propose importing LNG to Australia. AGL’s project has been slowed by an environmental review in Victoria state.

Source: LNG Global

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Bangladesh’s new LNG import terminal begins to feed gas to domestic grid

Bangladesh’s second liquefied natural gas (LNG) terminal has started to feed gas to the national grid after completing commissioning late on Monday, April 29, the terminal’s operator said.

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Summit LNG Terminal completed the commissioning of its floating storage and regasification unit (FSRU) known as ‘Summit LNG’ late on Monday, about one month ahead of schedule, Singapore-based Summit Power International said in a statement.The FSRU is 75 percent owned by Summit Corp, a unit of Summit Power International, and the remaining by Japan’s Mitsubishi Corp.About 503 million cubic feet per day (mmcfd) of gas is flowing from the FSRU – which is able to regasify 500 mmcfd of LNG – into the national grid, two sources familiar with the matter told Reuters.Summit Power International, which owns power generation assets in Bangladesh and is owned by Bangladeshi conglomerate Summit Group, has chartered the vessel from U.S. based Excelerate Energy for 15 years.“The process of feeding the gas from Summit FSRU to the national grid has started,” Nasrul Hamid, Bangladesh’s state minister for energy and power, told Reuters.About 3.75 MMTPA of LNG is expected to be imported through the facility, doubling the country’s LNG import capacity to 7.5 MMTPA once fully operational.

Source: LNG Global

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Axpo, German LNG Terminal project group seek capacity deal

Swiss utility Axpo and German LNG Terminal GmbH said they signed a heads of agreement for a long-term capacity contract for a yet to be built LNG landing terminal at Brunsbuettel in northern Germany.

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The move comes amid efforts to diversify Germany’s sources of gas imports, with three projects, including Brunsbuettel, competing to take gas from specialized tankers and distribute them in a lucrative market so far served mostly by pipelines.“This is another important step towards taking the investment decision (for Brunsbuettel),” Axpe and German LNG Terminal GmbH said in a statement.They did not disclose financial details and the length of a possible contract or cargo sizes.Axpo said its involvement reflected the desire to expand on nine years of LNG market activity and the shutdown of numerous coal-fired power plants in the medium term.Germany needs to lower its carbon footprint so supports more gas usage for power, heating and industry for an interim time until a greater reliance on renewables can be achieved.Brunsbuettel, also supported by Axpo peer RWE, is in the running for a building permit, alongside an LNG project at Wilhelmshaven, supported by Uniper, with a third terminal plan being pursued at chemical firm Dow’s Stade site.German LNG Terminal said it expected an investment decision for Brunsbuettel at the end of 2019.Germany’s government in March approved a plan that will likely spur investment decisions for LNG terminals, recognizing growing import requirements and readiness of suppliers like Qatar and the United States to get into the market.

https://www.hellenicshippingnews.com/axpo-german-lng-terminal-project-group-seek-capacity-deal/

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Oman LNG revenues up 60 per cent as output, prices rise

Revenues of Oman Liquefied Natural Gas Company (Oman LNG) reached $3.50 billion by the end of 2018 from $2.19 billion at the end of 2017, a rise of 60%, thanks to both improved oil prices and additional gas volumes.

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The net income of the company by the end of 2018, after deduction of tax, increased by 68 per cent to reach $1.79 billion compared to $642 million by the end of 2017.In its annual report for 2018, the company affirmed that despite the growing operational activities and commercial businesses, the company managed to reduce its operational expenses by $9 million by the end of 2018 compared to the approved budget by the company, thanks to a series of cost optimization initiatives adopted by the company. The company’s contribution to taxes stood at $170 million in 2018.The company’s annual report indicated that the company’s LNG production rate hit 10.4 MMTPA compared to 8.60 MMT by the end of 2017. In terms of shipping and marketing, the total number of LNG cargoes loaded to the company’s expanding network of destinations around the world by the end of 2018 stood at 162. The shipment consisted of 111 cargoes of Oman LNG and 51 cargoes of Qalhat LNG while the total cargoes of compressed natural gas derivatives stood at 36.In January 2018, the 7-year Sales and Purchase Agreement (SPA) with BP Singapore, which supplies 1.1 MMTPA of LNG, was commissioned. As safety vigilance breeds excellence, the company continues to break safety milestones, which stood at nearly 30 million man-hours worked without Lost-Time Injury (LTI) and over 27 million kilometres driven without an LTI by year-end.The total revenues of Qalhat LNG stood at $1.23 billion during 2018 while shipping optimization achieved cost reductions of $23 million.Dr. Mohammed bin Hamad Al Rumhy, Minister of Oil and Gas, Chairman of the Board of Directors of Oman LNG said, “Our company entered 2018 with a resolve to disengage from the deflationary mindset embedded across the industry and to fully embrace the return of modest growth. And so, one year on, it is no complacency to reflect with satisfaction on how much that resolve has been rewarded.

https://www.hellenicshippingnews.com/oman-lng-revenues-up-60-per-cent-as-output-prices-rise/[Edited]

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QP issues tender for LNG facilities

Qatar Petroleum (QP) invites tender for Engineering, Procurement and Construction (EPC) to expand its common lean liquefied natural gas (LNG) storage, and the loading and export facilities for its North Field Expansion (NFE)

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Project aimed to further develop one of the world’s largest offshore gas fields.The tender package, which was issued to world class contractors, apart from EPC of three LNG storage tanks, calls for compressors to recover tank boil off gas during storage and jetty boil off gas during LNG vessel loading; LNG rundown lines from the LNG trains to the LNG storage area; two additional LNG berths with an option for a third LNG berth; and loading and return lines from the LNG berths to the tanks.SaadSherida Al-Kaabi, the Minister of State for Energy Affairs, the President & CEO of Qatar Petroleum, said: “Issuing this tender package reflects Qatar Petroleum’s unique contracting strategy approach for the North Field Expansion Project. Under this strategy, we have identified the need for multiple EPC packages that can match the execution expertise in the EPC contracting community for specific scopes of work while providing the opportunity for multiple EPC contractors to participate.”He added: “The issuance of this tender package will culminate in the award of this EPC contract by February 2020.”In concluding his remarks, he said “this tender package is part of a strong drive to put the various NEF project components in place, including four mega LNG trains that would expand the State of Qatar’s LNG production from 77 million tons per annum to 110 million tons by 2024. This also includes the recently announced major LNG ship-building campaign expected to initially deliver 60 LNG carriers in support of the planned production expansion, with a potential to exceed 100 new LNG carriers over the next decade.”Qatargas is entrusted with executing this mega-project on behalf of Qatar Petroleum. 

https://www.oedigital.com/news/465922-qp-issues-tender-for-lng-facilities

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USA: LNG production starts up at Cameron LNG export terminal in Louisiana

The Cameron LNG project has achieved first liquefied natural gas (LNG) production from train 1. The project will begin exports in the coming weeks. “The start-up of the LNG production marks an important milestone for the Cameron LNG project.

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This achievement is the result of work carried out by all of the teams and project partners. Total’s commitment to Cameron LNG and its expansion is in line with our strategy to continue building a strong position in the US LNG market. With Cameron LNG start-up, we will achieve our target of being integrated along the gas value chain in the US since we are already a gas producer in the country”, commented Patrick Pouyanné, Chairman & Chief Executive Officer of Total. Total entered the Cameron LNG project through the acquisition of Engie’s upstream LNG business in 2018. Phase 1 of the Cameron LNG project of 13.5 MMTPA capacity includes three LNG trains of 4.5 MMTPA each. Construction is ongoing for trains 2 and 3 with first production expected by the turn of the year and mid-2020 respectively. The project is operated by Cameron LNG LLC jointly owned by Sempra Energy (50.2%), Total (16.6%), Mitsui & Co., Ltd. (16.6%) and Mitsubishi/NYK (16.6%). In addition, the Cameron LNG co-owners are currently discussing a potential expansion of the base project, already authorized by the Federal Energy Regulatory Commission (FERC), that would add two liquefaction trains of 4.5 Mtpa capacity each and two LNG storage tanks. Total, the Second-Largest Private Global LNG Player Total is the second-largest private global LNG player, with an overall LNG portfolio of around 40 MMMTPA by 2020 and a worldwide market share of 10%. With 21.8 MMT of LNG sold in 2018, the Group has solid and diversified positions across the LNG value chain. Through its stakes in liquefaction plants located in Qatar, Nigeria, Russia, Norway, Oman, the United Arab Emirates, the United States, Australia, Angola and Yemen, the Group sells LNG in all global markets.

https://www.hellenicshippingnews.com/usa-lng-production-starts-up-at-cameron-lng-export-terminal-in-louisiana/

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SNAPSHOT: INTERNATIONAL

Natural Gas / LNG Utilization

|| Scania encourages first NGV transport corridor in Mexico || NGVA Europe: EP approves reform boosting adoption of green vehicles || Iran second in world for NGVs || CNG refueling station network expands in Germany and Belgium || Agility unveils first CNG tractor in the UK capable of 44-ton operations || TICO & Cummins exhibit UPS tractor with new 6.7-liter CNG engine ||

Scania encourages first NGV transport corridor in Mexico

Scania has delivered 37 natural gas powered buses in the state of Puebla. 

 

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This is the largest fleet of Scania vehicles in Mexico so far and will serve in the first public transport corridor in the country that operates with CNG. The vehicles delivered include 25 articulated buses and 12 standards, all of them running on natural gas and a Euro 6 engine. The importance of the configuration of the buses’ powertrain is that they emit five times less noise than those equipped with a diesel engine, in addition to the reduction in polluting emission.

“For Latin America in particular, natural gas has turned out to be ideal for public transport due in part to the fuel cost; therefore, the cost of operation in most countries is usually low and remarkably efficient,” said Enrique Enrich, CEO of Scania Mexico. Scania recently signed an agreement to put into operation a fleet of 481 CNG buses in Colombia during the 2019-2020 period. Enrich pointed out that both governments and companies should not ignore the use of new technologies and alternative fuels.

http://www.ngvjournal.com/s1-news/c3-vehicles/scania-encourages-first-natural-gas-transport-corridor-in-mexico/

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NGVA Europe: EP approves reform boosting adoption of green vehicles

Following the provisional deal with the Council of 11 February, the European Parliament (EP) formally adopted the reform of the Clean Vehicles Directive (CVD). It will incentivize the market for zero- and low-emission vehicles by encouraging their use in public procurement.

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The revision sets out minimum procurement targets for clean light-duty vehicles, trucks and buses for 2025 and 2030. The targets are expressed as minimum percentages of clean vehicles in the total number of road transport vehicles covered by the aggregate of all procurement contracts and public service contracts.Under the new rules, by 2030 up to 65% of new buses will have to be ‘clean’, as defined under the Directive on Alternative Fuels Infrastructure (DAFI). Half of this can be achieved through the use of natural gas vehicles. This enables also low GDP member states to be part of the transition very early, taking not only advantage of the low total cost of ownership (TCO), but also benefit from the highly competitive price of natural gas.NGVA Europe now calls upon the Member States to evaluate and coordinate the synergies of this decision with existing policies. National plans are key to ensure that the new targets will be reached and to amplify the decarbonisation objective by blending a higher share of renewable gas such as biomethane.NGVA Europe and the gmobility initiative back and give their support to AltFuels Iberia 2019, taking place on 11-14 June at IFEMA Trade Center, Madrid. It will be an event consisting of first level conferences and exhibition of vehicles of all kinds, refueling stations, components, plants, road and marine engines, as well as the entire universe of the alternative fuels industry with the latest technological developments, multiple options for networking, business and new advances. For more information, please contact info@altfuelsiberia.com.

http://www.ngvjournal.com/s1-news/c1-markets/ngva-europe-clean-vehicles-directive-revision-adopted-in-ep/[Edited]

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Iran second in world for NGVs

Iran sits comfortably in second position on the table of countries with the most natural gas vehicles (NGVs). That position is upheld by the government’s determination to strengthen the NGV sector and by massive gas reserves.

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Amir H Khaki, Managing Director for Tamkar Gas Equipment Co., a Tehran-based company that has designed, manufactured, installed and commissioned hundreds of large CNG refueling stations throughout the country, discussed the state of play with NGV Global News.According to the National Iranian Oil Company, Iran’s natural gas reserves account for 16.6% of the world’s reserves, 49% of Middle East reserves and 38% of reserves in oil exporting countries. The US Energy Information Administration estimated Iran’s proved gas reserves as of 2016 to be 1,201 TCF (34.0 TCM), also rendering it second in the world.Currently, 2,461 CNG filling stations with a nominal capacity of 2,849,592 nm3/hr and 14,260 nozzles are active throughout the country, all of which have recently been inspected and approved by ISIRI (Institute of Standards and Industrial Research of Iran) for safety. These stations have the capacity of fueling up to twice the current capacity.So far, there are nearly 5 million natural gas vehicles in the country. Only China has more NGVs according to NGV Global statistics.In 2017, an Iranian oil official stated investing in production of compressed natural gas (CNG) and as a replacement for gasoline fuel had saved Iran more than $37 billion over 12 years.NIOPDC (National Iranian Oil Products Distribution Company) announced that owners of gasoline cars can receive up to 25 million Rials (approx. USD 600) of bank facilities in order to convert their cars to bi-fuel cars. Depending on the type of CNG conversion kit utilized (mixer type or sequential type), the finance facility covers the majority of conversion cost. CNG fuel is less than half the price of gasoline, enabling loans to be readily repaid, depending on distance travelled.The number of active vehicle conversion workshops in this field is 1100, which can carry the conversion of 22,000 to 30,000 vehicles per day. Type 1 cylinders (made entirely of metal) are used in Iran.All vehicles and gas cylinders are inspected annually. The government is in the process of building a new national database for registration of all natural gas vehicles and major components, expected to be completed before end 2020, which will facilitate inspection compliance and enhance safety.In order to fund the implementation of safety requirements and intelligence requirements of CNG supply and contribute to the replacement of CNG tanks on vehicles, the price of gas will be increased from 4140 Rials to 4532 Rials per cubic meter from 22 May 2019 (USD 0.098 to 0.11).

http://www.ngvglobal.com/blog/iran-second-in-world-for-ngvs-0501

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CNG refueling station network expands in Germany and Belgium

PitPointcontinues to expand its German network of CNG stations. In the first quarter of this year, PitPoint,  the international provider of clean fuels has added three new locations and now offers CNG at close to 40 service stations in Germany. 

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“Due to their convenient locations, the new CNG stations are a good addition to our existing portfolio and contribute to our ongoing strategic expansion in Germany,” said Malte Hock, Head of Sales at PitPoint Germany.The dispensers are sited at strategic locations on Total stations in the Erfurt catchment area, where PitPoint operates two further CNG stations; Dreieich (Darmstädter Straße 92) a dispenser for H-gas, close to Frankfurt and its surrounding highway network; and Luckenwalde (Salzufler Allee 40) 50 kilometers south of Berlin, close to Luckenwalde city centre and one of its business parks.PitPoint, which works closely with fleet managers on the supply of alternative, cleaner fuels through its existing network as well as on new-build projects, has already established a broad network of CNG filling stations across the Netherlands, Belgium, Germany and France. Recently, it opened the first CNG station in Brussels. This initiative was made possible thanks to the support of the BENEFIC project which is part of the European program “Connecting Europe Facility,” financed by the European Commission.The facility is located at the Lukoil service station at Boulevard du Triomphe 166, 1160 Auderghem. “The development of a dense CNG network is our top priority, and with the opening of the station in Auderghem we are taking another step in that direction. This will make it even easier to switch to CNG for both private and professional customers,” commented Country manager Geert Degroote.

http://www.ngvjournal.com/s1-news/c4-stations/cng-refueling-station-network-expands-in-germany-and-belgium/

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Agility unveils first CNG tractor in the UK capable of 44-ton operations

Agility Fuel Solutions, a wholly-owned subsidiary of Hexagon Composites, has launched two new CNG products at the UK Commercial Vehicle Show in Birmingham: a 6×2 CNG tractor, and a trailer-mounted CNG fuel storage system.

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The extended range 6×2 truck was developed in collaboration with biomethane provider CNG Fuels.The new vehicle is an extended-wheelbase 4×2 CNG tractor with an added mini-midlift axle and two lightweight Agility ProRail® 30 rail-mounted fuel storage systems. The tractor has a total CNG fuel capacity of 168 kg at 250 bar service pressure, enough to provide approximately 350 miles (560 km) of driving range. This is the first CNG truck offered in the UK capable of 44-tonne operations, making CNG a viable option for a larger portion of the UK truck market.In addition, Agility has introduced a trailer-mounted CNG fuel storage system which can add up to 700 additional miles (1,120 km) of driving range. The trailer-mounted system has five CNG cylinders, plumbing, a durable and vibration-resistant structure, and integrated fire protection. It mounts to the underside of the trailer, and connects to the CNG tractor with a breakaway hose. In combination with a CNG tractor this allows a vehicle to comfortably cover any potential driving range in the UK.“We’re pleased to bring these new products to market and to make CNG a viable option for heavy goods vehicles throughout the UK, regardless of their range requirements,” said Joe Leduc, Agility’s Commercial Director – Europe. “With a fuel cost savings of up to 40% and greenhouse gas emissions savings of approximately 84% with renewable biomethane, CNG offers a great means for fleets to control their costs and to meet their sustainability goals.”

http://www.ngvjournal.com/s1-news/c5-products/agility-introduces-first-cng-tractor-in-the-uk-capable-of-44-ton-operations/

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TICO & Cummins exhibit UPS tractor with new 6.7-liter CNG engine

TICO (Terminal Investment Corporation) has partnered with Cummins to display a UPS Pro-Spotter terminal tractor powered by Cummins’ 6.7-liter on-road CNG engine during the ACT (Advanced Clean Transportation) Expo in California.

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The truck on display with Cummins’ 6.7L CNG alternative-fuel engine, along with the now available Cummins 6.7L LNG engine, introduces even greater options than ever before into the terminal tractor segment. Specifically, TICO’s powertrain platform now addresses various industries need for a natural gas solution as they are the first and only U.S. OEM building, and now selling their terminal tractors using these Cummins alternative fuel engines.TICO Pro-Spotter terminal tractors are widely used in distribution centers, rail terminals and ports to move semi-trailers and shipping containers. TICO’s largest customers are rapidly moving forward with alternative fuel platforms and looking to increase the numbers of these engines in their facilities nationwide.TICO Pro-Spotters with the Cummins emissions-certified 6.7L CNG fueled engine provides uncompromised power, performance, fuel efficiency and fuel flexibility than ever before. Cummins and TICO promote the use of alternative fuels in on- and off-road vehicles and are dedicated to global clean air, green initiatives for this and future generations.

http://www.ngvjournal.com/s1-news/c3-vehicles/tico-cummins-exhibit-ups-terminal-tractor-with-new-6-7-liter-cng-engine/

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SNAPSHOT: INTERNATIONAL

LNG as a Marine Fuel / Shipping

|| Balearia moves forward in the LNG conversion of its ferry Abel Matutes || World’s second-biggest LNG tanker-class vessel to transit Panama Canal for first time || Samsung Heavy wins $190m order for LNG ship | | Singapore port completes first ship-to-ship LNG bunkering  ||

Balearia moves forward in the LNG conversion of its ferry Abel Matutes

The conversion works of Baleària’s Abel Matutes ferry have already reached one of the key phases of the process: the incorporation of two 178m3 LNG tanks so that the vessel can navigate with this clean fuel.  

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The hoisting and installation maneuver lasted approximately seven hours.The reconversion of the ferry, made afloat in Valencia, consists of changing its current two main engines, MAK 9M 43 C, to dual fuel engines, MAK 9M 46 DF, so it can run on LNG, in addition to conventional fuels. The adaptation process is expected to be completed by the end of June.The Abel Matutes ferry, which follows Baleària’s plan to renew its fleet so that nine of its ships run on natural gas by 2021, is the second vessel that undergoes this conversion process. The first was the Nápoles and will be followed by ferries Martín i Soler, Bahama Mama, Sicilia and HedyLamarr.Baleària is committed to incorporating LNG into its vessels, an initiative that began eight years ago and responds to criteria of social responsibility and economic profitability, anticipating the demanding regulations on polluting gases. By the end of 2021, the shipping company will have nine ships sailing with this clean energy, of which three will be newbuild projects (one of them is already sailing in the Mediterranean) and six will be the result of the conversion work that is being carried out in its fleet and that have a 20% subsidy of the European Union.Baleària is a pioneer in the promotion of LNG as a marine fuel in the Iberian Peninsula, a region that has experienced a great growth in the adoption of clean energy. In this extremely encouraging scenario, 

http://www.ngvjournal.com/s1-news/c7-lng-h2-blends/balearia-installs-lng-fuel-tanks-in-its-abel-matutes-ferry/

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World’s second-biggest LNG tanker-class vessel to transit Panama Canal for first time

A ‘Q-Flex’ LNG tanker, the world’s second-largest class of liquefied natural gas carriers, is set to pass through the Panama Canal for the first time, the canal’s CEO said, expanding the Americas to Asia trade route for the fast-growing commodity.

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The ‘Al Safliyah’, which can carry about 210,000 cubic meters of LNG, is on its way to Panama from the North Pacific after discharging a cargo from Qatar into Korea Gas Corp’s (KOGAS) Tongyeong terminal on April 21, shipping data in Refinitiv Eikon showed.“This is the first Q-Flex to transit the Panama Canal,” Jorge Quijano, chief executive of Panama Canal Authority told Reuters.It comes after the canal was expanded in mid-2018 to handle larger oil and gas tankers.“This size of vessel … could be deployed to carry LNG from the natural gas liquefaction plants in the U.S., Trinidad and Tobago and Peru,” Quijano said.The ship is on a long term charter to Qatargas, the world’s biggest LNG producer, according to LNG trading and broker sources. Qatargas did not respond to a query for comment.‘Q-Flex’ type tankers are able to carry up to 50% more volumes than conventional LNG tankers, and are typically used by Qatargas to export its LNG to Europe or Asia.The biggest LNG carriers, known as ‘Q-Max’, are able to carry up to 266,000 cubic meters of LNG, but are too large to use the canal.“If it can successfully transit Panama even if empty, it could in the future be used for triangulations where it discharges a cargo in Japan or Korea and then from there goes to load a new cargo in the U.S. Gulf,” said Ralph Leszczynski, head of research at ship broker Banchero Costa in Singapore.Quijano said 687 LNG tankers have transited the Panama Canal since July 2016 following an earlier expansion. Volumes rose to 11.5 MMT last year from just 300,000 tonnes in 2016.“We expect further growth this year of another 22% over last year,” he added.

https://www.hellenicshippingnews.com/worlds-second-biggest-lng-tanker-class-vessel-to-transit-panama-canal-for-first-time/

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Samsung Heavy wins $190m order for LNG ship

Samsung Heavy Industries has received a $190 million order to build one liquefied natural gas-carrying ship, according to its regulatory filing Friday, May3. Under the deal, the Korean shipbuilder is slated to deliver the LNG ship by March 2022 to an Oceania-based ship owner.

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The name of the company was not disclosed due to confidentiality reasons.So far this year, Samsung Heavy has won orders to build eight LNG ships and one floating production storage and offloading vessel, which amounted to a combined $2.6 billion. It aims to book a combined $7.8 billion in orders this year.According to British shipbuilding industry tracker Clarkson Research, Samsung Heavy has won orders to build eight LNG ships out of a total of 15 orders placed this year.

https://www.hellenicshippingnews.com/samsung-heavy-wins-190m-order-for-lng-ship/

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Singapore port completes first ship-to-ship LNG bunkering

The port of Singapore has witnessed its first ship-to-ship LNG bunkering involving the transfer of LNG as a marine fuel from a small-scale tanker to a heavy lift vessel.

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The bunkering operation involved the reload of 2,000 cu m of LNG onto the small-scale tanker at a newly-modified secondary jetty of Singapore LNG (SLNG) terminal, followed by a ship-to-ship transfer to the receiving heavy lift vessel.The operation was performed by Pavilion Energy’s subsidiary Pavilion Gas, a licensed LNG bunker supplier in Singapore.“Pavilion Energy’s first commercial ship-to-ship LNG bunkering operations in Singapore demonstrates our strong commitment and capability to deliver a comprehensive suite of LNG bunker supply solutions to Singapore and the region,” said Frederic H. Barnaud, group CEO of Pavilion Energy, wholly-owned by Singapore government’s investment firm Temasek.In 2017, Pavilion Energy demonstrated its first truck-to-ship bunkering capabilities before expanding its bunker logistics with the charter of its first LNG bunker tanker newbuild in February 2019. The 12,000 cu m GTT Mark III Flex membrane LNG bunker tanker is scheduled for delivery by 2021 from Sembcorp Marine shipyard.Tan Soo Koong, CEO of SLNG Corporation, said: “We strongly believe that LNG will become the worldwide fuel of choice for bunkering in the long term, and SLNG is well-positioned to facilitate this development. We are keen to work with all stakeholders and invest in infrastructure as necessary, to help grow LNG bunkering here.”

http://www.seatrade-maritime.com/news/asia/singapore-port-completes-first-ship-to-ship-lng-bunkering.html

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SNAPSHOT: INTERNATIONAL

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

|| Cheaper fuel cells could replace gas engines in vehicles || Canada: renewable natural gas now part of the low carbon fuel standard || Canadian government supports development of hydrogen stations || Hydrogen harnessed from wastewater using sunlight to create clean fuel |

Cheaper fuel cells could replace gas engines in vehicles

The advance, described in the journal Applied Energy, would make fuel cells economically practical, if mass-produced, to power vehicles with electricity.Toronto: Advancements in zero-emission fuel cells could make the technology cheap enough

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to replace traditional gasoline engines in vehicles, according to a study. Researchers from the University of Waterloo in Canada developed a new fuel cell that lasts at least 10 times longer than current technology. The advance, described in the journal Applied Energy, would make fuel cells economically practical, if mass-produced, to power vehicles with electricity. “With our design approach, the cost could be comparable or even cheaper than gasoline engines,” said Xianguo Li, director of the Fuel Cell and Green Energy Lab at Waterloo. “The future is very bright. This is clean energy that could boom,” Li said. Researchers initially concentrated on hybrid vehicles, which now have gas engines as well as batteries due to issues involving limited driving range and long charging times. Existing fuel cells could theoretically replace those gas engines, which power generators to recharge batteries while hybrid vehicles are in operation, but are impractical because they are too expensive. The researchers solved that problem with a design that makes fuel cells far more durable by delivering a constant, rather than fluctuating, amount of electricity. That means the cells, which produce electricity from the chemical reaction when hydrogen and oxygen are combined to make water, can be far simpler and therefore far cheaper. “We have found a way to lower costs and still satisfy durability and performance expectations,” said Li. “We are meeting economic targets while providing zero emissions for a transportation application,” said Li. Researchers hope the introduction of fuel cells in hybrid vehicles will lead to mass production and lower unit costs. That could pave the way for the replacement of both batteries and gas engines entirely by providing an affordable, safe, dependable, clean source of electrical power. “This is a good first step, a transition to what could be the answer to the internal combustion engine and the enormous environmental harm it does,” said Li.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/innovation-cheaper-fuel-cells-could-replace-gas-engines-in-vehicles/69236134

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Canada: renewable natural gas now part of the low carbon fuel standard

At a carbon intensity level equal to or even less than electric vehicle power, FortisBC’s renewable natural gas has been approved by the Ministry of Energy, Mines and Petroleum Resources for inclusion within the province’s low carbon fuel standard (LCFS).

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The LCFS supports the responsible development of B.C.’s low-carbon natural gas resources to provide domestic solutions to reduce the carbon intensity of transportation fuels.“FortisBC is committed to advancing a low-carbon future for the province by tackling emissions from the transportation sector,” said Douglas Stout, vice-president, market development and external relations, FortisBC. “The inclusion of biomethane as an approved fuel under the LCFS provides transportation companies with both an environmental and an economic reason to move to natural gas as a fuel of choice.”FortisBC has had programs in place for commercial fleets and transit providers to switch to CNG since 2010. More than 850 vehicles have made the switch to natural gas since, providing their operators with a 15 to 25% decrease in greenhouse gas (GHG) emissions at roughly half the cost when compared against gasoline or diesel. Companies like TransLink, BC Transit and UPS Canada have all benefited by moving portions of their fleets to natural gas.Using biomethane for transportation provides even greater benefits. Switching to this bifuel from CNG would provide an additional 80% drop in GHG emissions. In fact, FortisBC biomethane averages a carbon intensity of approximately 11 grams of carbon dioxide equivalent (gCO2e) per megajoule (MJ) which is less than electricity used for electric vehicles at about 19 gCO2e/MJ. While customers do pay a premium for biomethane, inclusion under the LCFS will enable them to receive higher emissions credits than CNG, making the overall price competitive.

http://www.ngvjournal.com/s1-news/c1-markets/canada-renewable-natural-gas-now-part-of-the-low-carbon-fuel-standard/

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Canadian government supports development of hydrogen stations

Joe Peschisolido, Member of Parliament for Steveston–Richmond East, on behalf of AmarjeetSohi, Canada’s Minister of Natural Resources, announced funding for two retail hydrogen refueling stations in the Lower Mainland.

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Natural Resources Canada is providing $2 million to HTEC (Hydrogen Technology and Energy Corporation) through its Electric Vehicle and Alternative Fuel Infrastructure Deployment Initiative (EVAFIDI).The funding is part of Canada’s $182.5-million investment to develop a coast-to-coast fast-charging network for electric vehicles and to establish natural gas stations along key freight corridors and hydrogen stations in metropolitan centers. This investment will also ensure Canada–U.S. alignment of standards for low-carbon vehicles and refueling infrastructure.The Government of British Columbia also contributed $1 million through its Clean Energy Vehicle Program as part of the province’s CleanBC plan to reduce pollution and meet its climate targets. CleanBC puts the province on a path to ensure that all new light-duty cars and trucks are zero-emission vehicles by the year 2040.The Government of Canada continues to support green infrastructure projects that will create good jobs, advance the country’s green future and help reach domestic and international climate targets. Canada has set ambitious targets for sales of zero-emission vehicles: 10% of light-duty vehicle sales to be zero-emission vehicles by 2025, 30% by 2030 and 100% by 2040.

http://www.ngvjournal.com/s1-news/c4-stations/canadas-ministry-of-natural-resources-supports-development-of-h2-stations/

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Hydrogen harnessed from wastewater using sunlight to create clean fuel

Scientists have harnessed sunlight to isolate hydrogen from industrial wastewater, paving the way for a green, inexpensive method to create clean fuel. Hydrogen is a critical component in the manufacture of thousands of common products from plastic to fertilizers,

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but producing pure hydrogen is expensive and energy intensive.

In a study published in the journal Energy & Environmental Science, researchers from Princeton University in the US reported that their process doubled the currently accepted rate for scalable technologies that produce hydrogen by splitting water. The technique uses a specially designed chamber with a “Swiss-cheese” black silicon interface to split water and isolate hydrogen gas. The process is aided by bacteria that generate electrical current when consuming organic matter in the wastewater; the current, in turn, aids the water splitting process. The team, led by Zhiyong Jason Ren from Princeton University, chose wastewater from breweries for the test. They ran the wastewater through the chamber, used a lamp to simulate sunlight, and watched the organic compounds breakdown and the hydrogen bubble up. The process “allows us to treat wastewater and simultaneously generate fuels,” said Jing Gu, assistant professor at San Diego State University in the US. The researchers said the technology could appeal to refineries and chemical plants, which typically produce their own hydrogen from fossil fuels, and face high costs for cleaning wastewater. Historically, hydrogen production has relied on oil, gas or coal, and an energy-intensive method that involves processing the hydrocarbon stock with steam. According to the researchers, this is the first time actual wastewater, not lab-made solutions, has been used to produce hydrogen using photocatalysis. The team produced the gas continuously over four days until the wastewater ran out, which is significant, the researchers said, because comparable systems that produce chemicals from water have historically failed after a couple hours of use.

The researchers measured the hydrogen production by monitoring the amount of electrons produced by the bacteria, which directly correlates to the amount of hydrogen produced. The technology is scalable because the chamber used to isolate the hydrogen is modular, and several can be stacked to process more wastewater and produce more hydrogen.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/innovation-hydrogen-harnessed-from-wastewater-using-sunlight-to-create-clean-fuel/69143723

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