NGS’ NG/LNG SNAPSHOT – November 2019, VOLUME 2

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City Gas Distribution & Auto LPG

IGL Q2 net more than doubles on tax cut, higher sales

Indraprastha Gas Ltd, the city gas distributor in the national capital and adjoining cities, on Thursday (Nov 7) reported more than doubling of its September quarter net profit on lower tax rate and rise in gas sales.Net profit in July-September at Rs 380.72 crore

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was 103 per cent higher than Rs 187 crore in the corresponding quarter in the last fiscal, the company said in a statement.The company availed the lower corporate tax rate announced by the government which resulted in a “gain of Rs 143.12 crore,” it said.Total gross sales value registered a growth of 19%  in the quarter to Rs 1,866 crore.Product-wise, CNG sold to automobiles stood at Rs 1,438 crore, registering a growth of 22%, and piped natural gas recorded sales of Rs 428 crore, registering a growth of 10% over the previous year.Profit before tax for this quarter rose 27% to Rs 367.65 crore.IGL sells CNG to automobiles and PNG to household kitchens and industries in Delhi and adjoining towns of Noida, Greater Noida, Ghaziabad, Rewari, Gurugram, Muzaffarnagar and Karnal.”IGL registered an overall sales volume growth of 12% over the corresponding quarter in the last fiscal, with the average daily sale going up from 5.89 MMSCMD to 6.57 MMSCMD,” the statement said, adding that CNG recorded sales volume growth of 10%, while PNG recorded sales volume growth of 12%.”The increase in gas volumes have been driven by embracing of clean fuels across all segments,” it added.

https://timesofindia.indiatimes.com/business/india-business/igl-q2-net-more-than-doubles-on-tax-cut-higher-sales/articleshow/71957448.cms

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Jamshedpur to refuel to the future today

In a red letter day for the steel city on Friday (Nov 1), Union ministers DharmendraPradhan and ArjunMunda and chief minister Raghubar Das will inaugurate the direct supply of piped natural gas to kitchens and a supply station 

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for compressed natural gas for vehicles at an event at GopalMaidan.For starters, piped natural gas will be supplied to domestic consumers at the upscale Ashiana Gardens in Sonari. The gas will be supplied from a decompression unit set up near the Tribal Culture Society in Sonari. The CNG supply station for CNG-run vehicles has come up in Mango.Announcing these at a news meet here in the steel city on Thursday, K.B. Singh, executive director (eastern region) of GAIL India said the supply would be made under the PradhanMantriUrja Ganga scheme and also the city gas distribution projects that were earlier launched in Ranchi in August.Initially, natural gas would reach Jamshedpur in special containers (cylinders) called cascades, transported by road from Patna, Singh said. Then, the gas will be installed at the decompression unit in Sonari and supplied to homes.“Later, natural gas would be supplied to the steel through a pipeline directly from Purulia in Bengal,” the senior GAIL official said.During the inauguration ceremony, work will also commence for laying a 125-km-long pipeline from Purulia to Jamshedpur, he said. This will feed networks of East Singhbhum, West Singhbhum and Seraikela-Kharsawan.“Not just households, several rolling steel, wire and pipe manufacturers and automobile industries will gain from cheaper and continuous supply of fuel,” he explained.He added that CNG supply had also been getting good response from Ranchi vehicle owners. “As of now, Ranchi has around 300 CNG vehicles, including autos, and the daily sale of CNG in the capital is over 900kg,” he said.

https://www.telegraphindia.com/states/jharkhand/jamshedpur-to-refuel-to-the-future-today/cid/1715995

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3 more CNG stations in Patna by year-end

The government may have decided to replace all diesel-based autorickshaws with those run on compressed natural gas (CNG) after March 31, 2021, but the city has only two fuel stations for supplying the gas to common people.

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Transport department officials have, however, claimed that two more CNG stations will come up here by the end of this month and a third one in December. In fact, by March next year, their total number is likely to go up to 10.The transport department and the GAIL have targeted to convert at least 10,000 autos to CNG by December next year. GAIL’s deputy general manager (DGM) Rajnish Kumar pointed out that CNG conversion would be beneficial for the vehicle owners. “CNG gives a mileage of 40km/kg, which is more than petrol and diesel. Besides, it costs Rs 60.6/kg in Bihar. The prices of diesel and petrol, on the other hand, are Rs 78.57 and Rs 71.29 per litre,” he said.Deliberating on plans for increasing the number of CNG stations, the transport secretary said, “Earlier, the demand was less. Now, we are planning to open more CNG stations. Two of them will be opened by the end of November and another one will be functional by December-end.” Mr. Agarwal, Secretary, added, “CNG will soon be available at all times of the day.”The state government has also decided to provide financial subsidy for conversion of autos to CNG. “An incentive of up to Rs 40,000 will be given to autorickshaw owners switching from petrol and diesel to CNG. An amount of Rs 20,000 will be provided to those willing to install CNG kits in their vehicles,” said Agarwal.Bihar State Autorickshaw Drivers’ Association general secretary Rajkumar appreciated the government’s initiative. He, however, said, “The authorities should understand that the cost of installing a CNG kit is around Rs 75,000 and the incentive being offered is quite less.”

https://timesofindia.indiatimes.com/city/patna/3-more-cng-stations-in-patna-by-year-end/articleshow/71960325.cms[Edited]

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LPG auto drivers stage protest over shortage of fuel stations

Over 100 auto rickshaw drivers, who drive Liquefied Petroleum Gas (LPG) run autos, marched to the collectorate, demanding that the shortage of LPG stations in the city be addressed.

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According to the leaders of the protest, only one fuel depot in the city currently provides LPG.Lack of sufficient number of LPG and Compressed Natural Gas (CNG) stations has been a major issue in the city for a long time. While the drivers of LPG run auto rickshaws were depending on the only bunk, the recently introduced CNG auto rickshaw owners and drivers were forced to depend on petrol for driving their vehicle in the absence of stations.“Earlier there were three LPG stations in the city. Now LPG is available only in one depot” said A K Sajeev Kumar, leader of LPG Auto driver’s coordination committee. We are now finding it difficult to carry out service in the absence of stations,” he said.The LPG auto rickshaw owners staged the protest raising the slogan ‘e-auto’. They expressed their protest by towing an LPG auto rickshaw replicating the unavailability of fuel.“We want the government to give the nod for new LPG stations in the city,” said YasarArafath, president of the coordination committee. The authorities have the responsibility to ensure the supply of fuel for green vehicles, he said.Over 100 LPG auto rickshaws have been operating in the city for more than five years. They decided to go on protest as the existing LPG depots also stopped the supply of fuel recently. The fuel depot owners are reluctant to start LPG and CNG stations as they frequently experience technical issues. The maintenance and repair of the stations are usually carried out by technicians from other states causing delay in the repair works too. Many had purchased LPG auto rickshaws following the LPG auto promotional drive carried out by the government a few years ago. Similarly, many have started purchasing CNG auto rickshaws, following the recent decision of the government to give fresh city permit only to green auto rickshaws. CNG auto drivers are also struggling in the absence of stations supplying CNG, said Kumar. They are now forced to use petrol as fuel in the absence of CNG depots said Sajeev adding that the motto ‘green auto’ could never by achieved if the authorities do not pay attention to address fuel unavailability.

https://timesofindia.indiatimes.com/city/kozhikode/lpg-auto-drivers-stage-protest-over-shortage-of-fuel-stations/articleshowprint/72014091.cms

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Megha Gas to expand its footprint

Hyderabad-based infrastructure company Megha Engineering and Infrastructures Limited’s (MEIL) hydrocarbon division is going to expand its ‘Megha Gas’ distribution network across 16 districts in Andhra Pradesh, Telangana and Karnataka following project approvals from the Petroleum

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and Natural Gas Regulatory Board (PNGRB). MEIL vice-president P. Rajesh Reddy said in a press release that Megha Gas has established a network for distribution of piped natural gas (PNG) and compressed natural gas (CNG) to domestic, commercial, industrial and automobile sectors. The company launched its operations in Krishna district and Tumkur and Belgaum districts in Karnataka and is planning to enter 13 districts in Telangana including the suburbs of Hyderabad. “In addition to an existing 1,200 km pipeline, MEIL is going to lay a 5,000 km pipeline in A.P., Telangana and Karnataka. MEIL has opened nine CNG stations in Krishna district with total sales of over 4,50,000 SCM (Standard Cubic Meter) per month with an additional five stations planned in the next three months with a potential of 3,00,000 SCM per month,” Mr. Reddy said. MEIL has also registered a customer base of over 13,000 domestic consumers so far in Krishna district where commercial sales have crossed 60,000 SCM per month, Mr. Reddy said. Ten more commercial connections with a potential of 1,00,000 SCM per month would be added soon, he said.

https://www.thehindu.com/news/national/andhra-pradesh/megha-gas-to-expand-its-footprint/article29966673.ece

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Electric Mobility

PMT has cleared aelectric bus depot in Bhekrai Nagar, Pune

Having acquired 100 electric buses and with the target of getting 500 additional buses, the Pune MahanagarParivahanMahamandal (PMT) has begun the task of turning a depot in Bhekrai Nagar.

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It also aims at beating Bengaluru to become nation’s first city to have stations exclusively for e-buses.At present, the PMT has cleared a depot in Bhekrai Nagar, which was used to park CNG and diesel buses until three days ago. Now 78 e-buses have been brought to the plot, which will now be converted into an electric bus friendly station with additional charging points.Another project is in the line for Nigdi in Pimpri-Chinchwad, where 22 e-buses are parked currently. In the coming months, the PMT plans to induct 125 more e-buses with the target of getting a total of 500 buses by next year. Of the 150 new e-buses, 75 will be parked at Bhekrai Nagar and the rest at Nigdi.

https://www.mid-day.com/articles/pune-soon-to-deliver-indias-first-e-bus-depot/22076156

 

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500 crore to set up electric bus manufacturing unit in Pune

PMI Electro Mobility Solutions Pvt Ltd (PEMSPL) along with its Chinese partner BeiqiFoton Motor Co (Foton) on Thursday said it plans to invest Rs 500 crore for setting up an electric bus manufacturing plant at Pune in the next two to three years.PEMSPL,

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which holds 70 per cent in its joint venture also said it has entered into a pact with budget carrier SpiceJet to supply electric buses for its operations at Indira Gandhi International Airport here.Currently PMI has a manufacturing plant at Daruhera in Haryana for conventional buses which can also roll out electric buses. But with new orders coming in, they have decided to set up an electric bus manufacturing plant at Pune where Foton’s facility is there.Foton PMI has already supplied 50 electric buses to Himachal State Road Transport Corporation. Now, it has bagged orders to supply 700 electric busses to Uttar Pradesh in the next one year. They will invest around Rs 500 crore at the Pune plant in the next two to three years.BeiqiFoton Motor has also made an investment of Rs 350 crore since it started India project in 2011.The new plant will have a capacity to produce around 500 electric buses per month and the construction will start by March next year.Foton PMI is also in plans to explore the electric commercial vehicles (CV) market in India. The company is also planning to launch other models such as medium high and light electric trucks in future.

Source: electricvehicles.in

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First Electric Vehicle under the Toyota-Suzuki partnership

Toyota revealed its tiny BEV at the 2019 Tokyo Motor Show. The company also confirmed that it is headed for the launch in India soon. Toyota is brinbing the BEV in partnership with Suzuki,

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which means this could be the first EV in the Toyota-Suzuki partnership. Besides the BEV, Toyota is showcasing the Rise, Yaris, LQ concept, Mirai concept, the new GT86, Granace MPV and the Copen GR Sport at the Tokyo Motor Show.

The BEV is made for short-distances, which targeted elderly people and new drivers. It offers a maximum driving range of 100km with a top speed of up to 60kmph. Its portable nature is a key element to help maneuvering and parking in an overcrowded city like Tokyo.  It is 2490mm long, 1290mm wide and 1560mm high and can allow room for two people.Toyota is yet to reveal detailed specifications of the electric motor. However, the BEV gets a charging time of around 5 hours.Toyota also plans other models of this ultra-compact BEV, including one for business purposes, a three-wheeled version, and different types of walking BEVs. They’ve also exhibited a new business model that aims to promote the adoption of all-electric vehicles.

The BEV is confirmed for India, but Toyota is yet to provide a timeline for the introduction of the BEV. We can expect the launch of the EV around mid-2020 in India.

Source: electricvehicles.in

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SEAT’s fully electric scooter debuts on 19th Nov

SEAT, a Spanish automobile manufacturer, a brand with a vision of electric technology application to vehicles launched an urban two-seater or high-performance CUV (Cross Utility Vehicle). Its vehicles fulfil the mobility needs of individuals.

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It is now strengthening its commitment to urban mobility and breaking into the motorcycle market with its new first fully electric scooter concept.The company will sell its electric motorcycle equivalent to a 125 cc model in 2020. The company will officially showcase its presentation on 19th November in Barcelona during the Smart City Expo World Congress.This new model will be lined up in the company’s urban mobility strategy which aims to offer sustainable solutions for cities. The company claims that it will lead the Volkswagen Group ( Spannish government sold SEAT to the German Volkswagen Group of which it remains a wholly owned subsidiary). This strategy also includes SEAT Minimo concept car as well as SEAT’s eXsKickscooter powered by Segway which was unveiled at the 2018 Smart City Expo. SEAT President Luca de Meo stated that the constant growth of large cities makes achieving efficient mobility one of the main challenges to overcome. Today we are taking further step in our micro-mobility strategy by confirming the launch of the first eScooter in the history of the brand.

Source: electricvehicles.in

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Gas/ Pipelines/ Company News

Post India revision, Moody’s lowers outlook for 21 firms

After changing the outlook of India’s sovereign ratings to negative from stable and affirming the Baa2 foreign-currency and local-currency long-term issuer ratings, Moody’s Investors Service downgraded the outlook for 21 companies.

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These companies belong to the infrastructure, oil and gas, and information technology sectors.Rating outlook was cut to negative from stable for Infosys, TCS, State Bank of India and HDFC Bank, along with other financial institutions, corporates and sovereign-linked infrastructure companies.Moody’s revised the outlook for ratings of eight companies — Bharat Petroleum Corporation, Hindustan Petroleum Corporation, Indian Oil Corporation, Oil and Natural Gas Corporation, Oil India, Petronet LNG, Infosys and Tata Consultancy Services — to negative from stable.Shares of all the companies that witnessed a downgrade in outlook and are listed on the stock exchanges saw share prices fall by up to 5.2%. While the shares of HPCL fell 5.2%, ONGC and TCS saw their shares fall by 2.6% and 2.5%, respectively. GAIL and Petronet LNG saw their share prices fall 3.9% and 5%, respectively.Moody’s revised the outlook of six financial institutions to negative from stable: EXIM India, HDFC Bank, Hero FinCorp, HUDCO, Indian Railway Finance Corporation, and SBI, while maintaining stable outlook for Bank of India, Canara Bank, Oriental Bank of Commerce, Syndicate Bank and Union Bank of India.Among the infrastructure companies, the ratings outlook was revised down for NTPC, NHPC, National Highways Authority of India, GAIL, and Power Grid Corporation to negative from stable.

https://indianexpress.com/article/business/economy/post-india-revision-moodys-lowers-outlook-for-21-firms-6110844/

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GAIL Q2 net slips 35%

State-run GAIL India Ltd on Friday (Nov 8) reported a 35% drop in September quarter net profit as margins on natural gas marketing slumped and petrochemical business slipped into a loss.Consolidated net profit of Rs 1,167.58 crore, or Rs 2.59 per share,

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in July-September compared with Rs 1,788.98 crore, or Rs 3.96 per share, profit after tax in the year-ago period, the company said in a regulatory filing.While pre-tax profit from natural gas transmission business fell 10 per cent to Rs 803 crore, petrochemical business logged aRs 82.32 crore loss. Natural gas marketing business saw pre-tax profit drop by 70% to Rs 241.72 crore.

https://www.freepressjournal.in/business/gail-q2-net-slips-35

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Cairn gets 10 year extension for Ravva oil, gas field

Ravva, the oldest producing asset for Cairn in India, becomes the first large field to get PSC extension under the ‘Policy for the Grant of Extension to the Production Sharing Contracts signed by

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Government in awarding small, medium-sized, and discovered fields to private Joint Ventures’ two-and-a-half-decades ago.“With this extension, the production sharing contract (PSC) is now valid effective October 28, 2019, for the next 10 years,” the company said in a statement. Ravva, the oldest producing asset for Cairn in India, becomes the first large field to get PSC extension under the ‘Policy for the Grant of Extension to the Production Sharing Contracts signed by Government in awarding small, medium-sized, and discovered fields to private Joint Ventures’ two-and-a-half-decades ago.“The extension will enable the joint venture partners to recover about 13 million barrels of oil equivalent (boe) of oil. In addition, the JV partners will invest Rs 550 crore (USD 78 million) to drill seven Revised Field Development Plan (RFDP) wells targeting additional reserves of 11.7 million boe,” the statement. “These campaigns put the JV on course for yet another milestone in hydrocarbon recovery from this world-class offshore asset.”Cairn holds a 22.5% stake in the Ravva field, while state-owned Oil and Natural Gas Corporation (ONGC) has 40%. Videocon Petroleum has 25% and Ravva Oil the balance 12.5%. The Ravva field was initially estimated to produce 100 million barrels of crude oil. It has, however, produced more than twice the quantum of oil initially estimated. Ravva field was discovered by state-owned ONGC in 1987. It brought out the first oil from the field in March 1993. The field was however auctioned in the same year for development.

https://www.financialexpress.com/industry/cairn-gets-10-year-extension-for-ravva-oil-gas-field/1756307/

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Oil India Q2 net profit slips 27% to Rs 627 cr, income dips to Rs 3,481 cr

State-owned Oil India Ltd reported a 27.2% drop in its net profit at Rs 627.23 crore in the second quarter ended September 2019.The company had registered a net profit of Rs 862.01 crore in the corresponding period of the previous fiscal.

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Total income fell to Rs 3,481.52 crore during Q2 FY20 from Rs 4,031.41 crore in same period of FY19, Oil India said in a regulatory filing.Turnover was down at Rs 3,213.61 crore for the quarter, as against Rs 3,743.58 crore a year ago.The EBITDA (earnings before interest, taxes, depreciation and amortization) margin — the reader of profitability ratio — stood at 43% during the quarter, down from 44 per cent in the year-ago quarter.The company realised crude oil at $61.30 per barrel during the September quarter of the current fiscal, down from $73.42 a barrel year ago.Crude Oil production during the first half of 2019-20 is 1.63 MMT as against 1.70 MMT a year ago. Natural gas production during the half year ended September increased to 1,459 MMSCM from 1,430 MMSCM.“Due to fall in international crude oil prices, average crude oil price realisation is lower by 12.29% to $63.81/BBL in first half as compared to $72.75/BBL year ago,” it said in a release.Natural gas price realisation improved to $3.69/MMBTU for the April-September period as compared to $3.06/MMBTU year ago, the company said.

https://www.hellenicshippingnews.com/oil-india-q2-net-profit-slips-27-to-rs-627-cr-income-dips-to-rs-3481-cr/

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Gail plans to set up polycarbonate plant of 2 millioncapacity

State-run natural gas major Gail plans to set up an around 2 million tonne polycarbonate plant, a senior official said. According to statistics, the demand for polycarbonate stood at 148.61 thousand tonnes in 2018 and is projected to grow at an annual rate of 7 percent till 2030 to reach 371.03 thousand tonnes.

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“We are working and exploring the possibility of producing speciality chemicals polycarbonate. Now, the entire polycarbonate demand is met through imports as there is no domestic production,” Gail executive director for marketing and retail) Kamal Tandon said here Tuesday. “Currently the entire market for polycarbonate is served by imports. We are exploring this opportunity and plan to set up 1.6-2 million tonne plant,” Tandon said.

http://www.millenniumpost.in/business/gail-plans-to-set-up-polycarbonate-plant-of-2-mt-capacity-384728

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ONGC wants to take Opal out of SEZ as domestic demand grows

With the rising domestic demand for petrochemicalsONGC Petro additions (OPaL), a JV between ONGC, Gujarat State Petroleum Corporation and Gail at the Dahej SEZ, is working towards getting the domestic tariff area (DTA)

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access to gain from the lower tax regime now.A DTA setup enables a company to set up manufacturing units that cater to the domestic market, while an SEZ unit is meant only for exports. Also fewer documentation and monitoring are required in DTA units compared to SEZ units. “We began our business from the SEZ, but our exports are hardly 15 percent of total sales. We are now working towards getting access to the DTA so that we can serve the domestic market,” OPal managing director AvinashVerma told reporters on the sidelines of a petrochemicals summit. The move if achieved will also enable to company to gain from the new corporate tax regime, which will take care of the end of the very low tax benefits from the SEZ unit. He further said the process may take another six months as it will need to get certain approvals from various agencies and stakeholders. When asked if the company is looking at strategic partnerships with international firms, Verma said, “we are evaluating that options as well.” According to reports, ONGC had held talks with Saudi Arabian firms like Saudi Basic Industries Corp (Sabic) and Saudi Aramco for selling stake in the petrochemical unit.Verma further said the unit, which is operating at 95 percent capacity currently will achieve 100 percent very soon.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/ongc-wants-to-take-opal-out-of-sez-as-domestic-demand-grows/72031676

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Centre to expedite gas projects in Kerala

Kerala is a model for other states when it comes to implementing Centrally-sponsored schemes, Union Minister for Petroleum, Natural Gas and Steel Dharmendra Pradhan said here on Thursday (Nov14).

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The minister thanked Chief Minister Pinarayi Vijayan for the state’s support in implementing the GAIL natural gas pipeline project. During an interaction with Pinarayi at his office, Pradhan said the completion of the GAIL project was a big achievement at the national level. Pradhan assured the Chief Minister that steps would be taken to expedite the city gas project for delivering natural gas at homes. He also said the project could be implemented in Pathanamthitta, Idukki and Kottayam districts as well.Steps will be taken to install more CNG stations in the state and promote buses run on natural gas. The Chief Minister urged Pradhan to set up a retail chain of Steel Authority of India Ltd (SAIL) in the state to find a solution to the crisis in SAIL-SCL Kerala Ltd in Kozhikode.

https://www.newindianexpress.com/states/kerala/2019/nov/15/centre-to-expedite-gas-projects-in-kerala-2061881.html

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Policy Matters/ Gas Pricing/Others

Government to lift pricing curbs on domestically produced gas

In one of the last reforms in the oil and gas sector, the government is set to free up pricing of all domestically produced gas that would help scale up local production from fields of ONGC, OIL, Reliance and Vedanta and help create a uniform gas

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where the fuel is freely tradable on exchanges.Government sources said that discussions on lifting price restrictions on locally produced natural gas have started that would culminate into a decision about the timing of the new reform initiative. The current timing is considered ideal to free up gas prices as oil market and prices have remained stable.A panel led by the NitiAayog vice chairman has also suggested free-market pricing for natural gas produced from all fields to boost domestic output.However, any move to completely lift price regulation in the gas sector will be done gradually as has been suggested by the Kelkar Panel. This would mean that the present system of regulated gas pricing for domestic production would continue for at least three more years but during the period producers would be given freedom to sell a portion of the total output under negotiated pricing deals (market determined) with their customers. The NDA government’s reform initiatives has already allowed free gas pricing for production coming from small and marginal blocks, difficult high pressure/deep water blocks and all production coming under the newly bid blocks under the Hydrocarbon Exploration Licensing Policy (HELP).But the pricing and marketing of gas from Pre-NELP exploration blocks and those under New Exploration Licensing Policy (NELP) is still regulated. This regulation will be lifted gradually, once the new policy is approved.”It’s about time when government frees up gas pricing, if it is serious about developing a gas based economy in the country. Apart from lifting domestic pricing restrictions on domestic gas, the government should also do away with price caps for market determined gas price. This would enable market forces and competition to offer best available prices to consumers,” said a senior official of a private sector oil and gas explorer who did not wish to be named.At present, producers can charge market rates for gas from deep sea and other difficult fields but rates must stay below a government-prescribed ceiling that’s linked to the prices of alternative fuels. The price ceiling is currently at $8.43 per mmBtu. The new policy will look into this ceiling price as well, sources said.At present, out of 310 exploration blocks awarded so far under various bidding rounds (discovered field, pre-NELP iamp; NELP), 189 blocks/fields are operational. Seventeen blocks under nomination are being operated by ONGC and OIL. Petroleum Exploration Licences (PEL) for domestic exploration and production of crude oil and natural gas were granted under four different regimes over a period time nomination basis – PEL, Pre-NELP discovered field, Pre-NELP exploration blocks and New Exploration Licensing Policy (NELP).As many as 117 companies are operating in these blocks post the ninth NELP round. This has at least 11 public sector undertakings, 58 private firms and 48 foreign companies.

https://www.newkerala.com/news/read/245015/govt-to-lift-pricing-curbs-on-domestically-produced-gas.html[Edited]

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Petroleum and Natural Gas Regulatory Board bats for bringing natural gas under GST

Inclusion of natural gas in the goods and services tax regime, pipeline tariff reform and pricing freedom for all domestic gas would be necessary to make the proposed gas trading hub a success,

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the chief of Petroleum and Natural Gas Regulatory Board has said.India is aiming to build a gas trading hub to help develop the domestic gas market, and the downstream regulator, PNGRB, is working out regulations for the proposed hub. There will be so much confusion in trading gas on hub without GST. People will withdraw. It will not be a happy situation,” PNGRB chairman Dinesh Kumar Sarraf told ET. This is because tax rates on natural gas vary from state to state and it would be hard for buyers and sellers entering physical contracts on the exchange to juggle multiple rates, he said. A single predictable tax rate would make it much easier for the market, Sarraf said. Natural gas, crude oil, jet fuel, petrol and diesel were not included in GST when it was rolled out two years ago as states, heavily dependent on petroleum taxes, resisted.

https://economictimes.indiatimes.com/industry/energy/oil-gas/petroleum-and-natural-gas-regulatory-board-bats-for-bringing-natural-gas-under-gst/printarticle/71915081.cms

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India’s ONGC issues gas tender linked to Platts LNG West India assessment

India’s Oil and Natural Gas Corporation issued a tender to supply 750,000 standard cu m/d of natural gas from December 26, 2019 onwardsfor three years from its eastern offshore gas field in Andhra Pradesh, the company’s tender document showed.

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The pricing basis for the tender is linked to Platts LNG DES West India price assessments.The reserve gas price for the tender would be calculated based on the simple average of daily Platts DES West India price for three months preceding the relevant month in which gas supplies are made plus a $1/MMBtu constant.The bids are required to be quoted as a premium over the reserve gas price, which will be published by ONGC on a monthly basis in $/MMBtu.Based on the above formula, the reserve price for November would be $5.93/MMBtu, Platts data showed.In comparison, the Reliance and BP domestic gas tender’s reserve gas price — priced at 8.4% of Brent — for November would be around $5.08/MMBtu.Price for the Reliance and BP domestic gas tender, bids for which are due November 6, is based on a lagged “3-0-1” pricing formula, with an average Dated Brent price of three months prior to the month of delivery.The ONGC tender would be conducted over two bid rounds. The first bid round would assess the technical and commercial availability of bids and the second round would be price bids.Bids for the tender are due November 12 and will be valid for 180 days from the date of opening of the un-priced bids, the tender document stated.Natural gas produced from discoveries in deep-water, ultra deep-water and high pressure-high temperature areas, can be priced independently, but has a price ceiling of $8.43/MMBtu for October 2019 to March 2020. India’s Petroleum Planning and Analysis Cell sets the price ceiling bi-annually.The ceiling price would be the lowest of imported prices of LNG, fuel oil or weighted average price of coal, fuel oil and naphtha.The price of domestic natural gas was set at $3.23/MMBtu for October 2019 to March 2020 from regular gas fields, according to PPAC.

https://www.hellenicshippingnews.com/indias-ongc-issues-gas-tender-linked-to-platts-lng-west-india-assessment/

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India’s dependence on imports of oil and gas increases

While crude oil production drops 6%, natural gas output has fallen 1.5% in the first half of the current. Domestic production of crude oil and natural gas has fallen by 6% and 1.5%, respectively,

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in the first half of the current fiscal year, further increasing dependence on imports to meet rising demand.India’s oil demand growth too has slowed to 1.4% in the April-July period, compared to 3.5% in the same period last year, but a sharper decline in production has increased reliance on imports. Foreign oil made up 84.5% of the country’s needs in six months to September, up from 83.3% a year earlier. Imported gas accounted for 51.2% of local needs, higher than 48.7% in the first half of last fiscal year.The government has been aiming to cut oil import dependence to 67% by 2022 but local output has been falling year after year mainly due to ageing fields and lack of major discovery. The government has introduced several policy initiatives in recent years aimed at attracting more capital and technology to the upstream sector, which in turn is expected to help raise local output. Companies too have been investing billions of dollars but country’s overall output has continued to slip.Crude oil production during April-September was 16.37 MMT, 5.96% lower than a year earlier.Oil India’s output contracted 4.24% from a year earlier to 1.61 MMT.Production from fields operated by private players contracted at a much faster clip, with output falling 10.74% to 4.5 MMT. Vedanta’s Mangla, Bhagyam and Aishwarya fields in Rajasthan underperformed due to several operational issues.Natural gas output was 16 billion cubic meters, 1.5% less than in the first half of last year.ONGC’s gas output fell 0.45% to 12.07 billion cubic meters due to general decline in output from ageing fields, a fire incident at Uran plant in September, and less offtake by some clients. Gas production from fields operated by private players contracted 11.22% to 2.54 billion cubic meter.

https://economictimes.indiatimes.com/news/economy/foreign-trade/indias-dependence-on-imports-increases-crude-oil-natural-gas-output-falls/articleshow/71947768.cms

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LNG Development and Shipping

Petronet LNG Kochy terminal touches break-even sales volume of 1 MMTPA

After a few initial glitches, Petronet LNG’s Kochi terminal seems to be on its course with meeting Kerala’s natural gas requirements.The ₹4,700-crore terminal languishing due to under capacity utilisation ever since its commissioning in 2013, has now touched a break even volume of 1 MMTPA sales.

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“We have already registered a 20% growth in capacity utilisation, thanks to increased intake of natural gas by BPCL Kochi Refinery and FACT,” TN Neelakantan, Terminal Head, Petronet LNG Ltd (PLL), told BusinessLine.BPCL has enhanced its offtake by 2.4 MMSCMD, while that by FACT accounts for 0.9 MMSCMD. Above all, the road movement of LNG as liquid is also on the rise for customers in Thiruvananthapuram and Tamil Nadu, he said.With the commissioning of the Mangaluru pipeline connectivity by GAIL, he expressed the hope that the Kochi terminal would attain an additional 15-20 per cent surge in its capacity utilisation. Mangaluru is a good consumption point since firms such as MRPL, Mangalore Chemicals and Fertilisers, ONGC Mangalore Petrochemicals require natural gas for their production requirements, he said.Besides, the proposed Proplylene Derivatives Petrochemical Project (PDPP) of BPCL-Kochi Refinery here would also add further to natural gas usage, he added.Petronet LNG is also set to achieve a major breakthrough in public transportation in India by launching buses laden with natural gas as fuel for the first time in the country. Two buses each will be deployed in Kochi and Dahej soon for staff movement. This milestone achievement has been made possible after amendments were made to the country’s MV Act proposing the use of LNG as a fuelling option for motor vehicles, said Neelakantan.The move, according to him, will provide a greater impetus for LNG usage in long-distance buses. Once filled with LNG, these buses would ply about 800 km, which would be ideal for long-haul traffic to reduce transportation cost, he said, adding that Gujarat and Kerala governments have evinced interest in introducing LNG buses.Petronet LNG Ltd is also looking at entering in the marine sector where the company is in advance stage of launching a fishing boat with natural gas as fuel. “PLL is carrying out a pilot project jointly with Kerala Development and Innovation Strategic Council and Matsyafed for converting a fishing boat with natural gas as fuel. The State government is interested in the project as LNG boats would considerably bring down operating cost of trawlers especially in the time of fluctuating fuel prices.”However, Tony Mathew, General Manager, GAIL, cited some uncertainties with respect to the progress of the pipeline work in the 444-km Kochi-Mangaluru section. Unexpected rains and technical difficulties in carrying out underground drilling works in Chandragiri River in Kasargodu are impacting the work. “We are tackling the issues one by one. So far 99 per cent of the work was over and the remaining work in the 2-km stretch is expected to be completed in the set time frame itself,” he said.

Source: LNG Global

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Gujarat govt. grants approval for CNG port terminal at Bhavnagar

The Gujarat government on Sunday (Nov 10) gave its approval for a compressed natural gas (CNG) terminal at Bhavnagar with a proposed investment of ₹1,900 crore, an official said.A State government release said the facility, approval for

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which was given by the Gujarat Infrastructure Development Board headed by Chief Minister Vijay Rupani, would be the world’s first CNG port terminal.It will be developed jointly by U.K.-headquartered Foresight Group and Mumbai-based Padmanabh Mafatlal Group.The Gujarat Maritime Board (GMB) had signed anMoU with Foresight Group to set up this port terminal at Bhavnagar in the Vibrant Gujarat Summit held in January, the release said.Apart from the CNG terminal, the investors would develop a Ro-Ro terminal, liquid cargo terminal, and container terminal at Bhavnagar port with a cumulative investment of ₹1,900 crore. The proposed CNG port terminal will have a capacity to handle 1.5 million metric tonne per annum (MMTPA).The GMB manages the existing port at Bhavnagar, having a capacity to handle three MMTPA cargo, and the new terminals would take the overall capacity to nine MMTPA.While the consortium would invest ₹1,300 crore in the first phase, ₹600 crore will be invested in the second phase.To develop CNG and other terminals on the north side of the existing port would require major modifications in the existing infrastructure, including dredging in water channel of port basin, construction of two lock gates, and off-shore infrastructure for CNG transportation, the release said.

https://www.hellenicshippingnews.com/gujarat-govt-grants-approval-for-cng-port-terminal-at-bhavnagar/

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INTERNATIONAL NEWS

Natural Gas / Transnational Pipelines/ Others

China gas demand growth halved this winter as coal conversion slows

China’s natural gas demand is expected to expand at half the rate this winter compared to a year earlier, as Beijing slows its gasification push due to a weaker economy and competition from cheaper coal, state oil officials said on Friday (Nov 8).

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Gas demand this winter is forecast at 145 BCM to 150 BCM, 5-8% higher than a year before, said a gas marketing executive with state energy group Sinopec Corp.MengYadong, director of the marketing department of Sinopec Gas Co, told an industry seminar in Beijing the growth is down from the 14.6% expansion in the previous heating season.To battle air pollution and cut carbon emissions, Beijing has embarked on an aggressive gasification campaign since 2017 to replace coal with gas for the winter heating program that spans its vast northern provinces from mid-November through mid-March the following year.

“There has been a tweak to the coal-to-gas policy this year that advocates more flexibility in using coal or gas … that has had a fairly large impact on gas demand considering the price factor,” Meng told the seminar.

China’s coal-to-gas conversion will add 8 to 9 BCM of natural gas demand this winter, as the country continues gasification to fight pollution, Li Wei, a marketing director at PetroChina’s Natural Gas Marketing Co, told the seminar.For all of this year, the coal-to-gas switch is expected to add 17 BCM in gas consumption, comprising 12 BCM from industrial users and 5 BCM from the residential sector, Li said.PetroChina, China’s top natural gas producer and supplier, expects gas demand from its customers to reach 94.5 BCM this winter, 7% more than last winter, a pace also slowing compared to 8.8% a year earlier.The scale-back was reflected in trade data released on Friday. China’s imports of natural gas – including pipeline supplies and liquefied natural gas in tankers – fell for the first time in nearly three years, though part of that pullback was caused by an outage at a receiving terminal.With the world’s second-largest economy growing at its slowest in nearly 30 years, government agencies have stressed in recent months that coal conversions are for both electricity and natural gas depending on availability and economics.Beijing is also strongly promoting ultra-low emission, or so-called “clean coal”, technology that has been applied to nearly 80% of the country’s thermal power generators.At Friday’s seminar organized by Chongqing Oil and Gas Exchange, an expert from a Ministry of Ecology and Environment think tank said there was uncertainty over whether subsidies would be extended beyond 2020, which could further cool the gasification push.The central government paid 35 billion yuan ($5 billion) in subsidies between 2017 and 2019, said FengXiangzhao, deputy director at the Policy Research Center for Environment and Ecology.

Source: LNG Global

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Natural Gas price forecast – natural gas markets gap higher- USA

Natural gas markets have gapped higher to kick off the week, as we continue to see a lot of bullish pressure due to the cyclicality of the market, and the fact that colder temperatures are coming to the United States.

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With that being the case, the market is very likely to continue going higher, and therefore I like the idea of buying pullbacks. In fact, this cyclical trade quite often runs until mid-January, so this could go quite a bit further if the temperatures in the United States continue to fall.Short-term pullbacks will probably find plenty of support at the gap, but even if we did break down below there it’s likely that the 200 day EMA at the $2.55 level will offer support as well. Below there, the 50 day EMA is at the $2.44 level, and that should of course offer support. However, it looks as if the 50 day EMA is ready to break above the 200 day EMA, forming a “golden cross.” At this point, the market looks as if it has bottom for the year, and as demand picks up in the United States, it should continue to drive this market much higher. I don’t have any interest in trying to short natural gas, as it should continue to be heavily in demand going for the next couple of months. At this point, it looks as if we are probably going to go looking towards the $3.00 level, which is of course a large, round, psychologically significant number, and then possibly the $3.25 level which is also technically important.

https://finance.yahoo.com/news/natural-gas-price-forecast-natural-163856854.html

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German-Russian gas pipeline Nord Stream 2 “almost all clear”

Germany’s governing coalition is in heated discussion to ratify a law that will evade EU gas directive entrapping Nord Stream 2 and will possibly make a vote within this week, German media Bild reported on Wednesday (Nov 6).

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The law amendment, if approved, will delete key provisions and thus make Russia’s Gazprom to own the gas pipeline and at the same time sell their gas through it, a condition in accordance with Russian law.The Danish government last Wednesday gave permission to Nord Stream 2 to pass through waters in its exclusive economic zone, also making it easier for the project to implement.Some analysts said that Nord Stream 2, which is vital to Germany’s energy sector, is now “almost all clear”.The Nord Stream 2 is an offshore natural gas pipeline project that transports natural gas from Russia to Germany via the Baltic Sea.When finished, the 1,230-km pipeline route can deliver 55 billion cubic meters of gas per year from Russia to Europe.For several years the passage of pipelines through the Baltic Sea has been under intense scrutiny and international debate.The project is operated by Nord Stream 2 AG, whose majority shareholder is the state-owned Russian energy company Gazprom that has been accused by the United States of pursuing political goals.Combined with Nord Stream, the first gas pipeline directly connecting Russia and Germany through the Baltic Sea which went into operation in 2011, the total transport volume amounts to well over 100 billion cubic meters of natural gas per year.According to the operating company of Nord Stream 2, the pipeline will transport enough gas to supply 26 million households, making the project of great importance for Germany’s energy policy.Germany is currently amid a large restructuring of its energy sector, not only phasing out coal-fired energy generation but also simultaneously shutting off its nuclear power plants.The last nuclear power plant is scheduled to be shut down in 2022 and a governmental commission has recommended a possible complete phase-out of coal-fired energy generation in Germany by 2038 at the latest.Although renewable energies are contributing an increasing share to Germany’s energy mix, the pace of the expansion is apparently slowing down. In the first half of 2019, coal and nuclear power combined still contributed more than 40 percent to Germany’s energy generation.In spite of all criticism, Merkel repeatedly stated that Nord Stream 2 would be “justifiable”. At the same time, Merkel gave her word that Ukraine “must remain a transit country despite Nord Stream.”With Denmark’s green light to complete the final 147 kilometers of the energy project, it looks like nothing can stop the completion of Nord Stream 2 now.

http://www.xinhuanet.com/english/2019-11/07/c_138534472.htm[Edited]

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Israel’s Delek completes $2 billion purchase of Chevron’s North Sea fields

Israel’s Delek Group (DLEKG.TA) said on Sunday (Nov 10) its Ithaca subsidiary, which it plans to spin off via a London listing, completed a deal to buy most of Chevron’s (CVX.N)

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British North Sea oil and gas fields for $2 billion.Delek said the deal, backdated to Jan. 1, will quadruple Ithaca’s pro-forma production to 80,000 barrels of oil equivalent per day and raise the company’s proven reserves by 150% to 225 million barrels.Delek, which is a partner in large natural gas projects off Israel’s Mediterranean coast, paid $1.68 billion, with the rest coming from cash flow accumulated coming from the sale of oil and gas at Chevron’s North Sea fields after the start of 2019.Under pressure from a fall in oil prices, major oil and gas companies in the North Sea have been forced to sell assets to private equity-backed investors and specialized operators.Following the close, Delek said Ithaca signed a five-year marketing and distribution agreement for the acquired Chevron fields with energy giant BP (BP.L).“The closing of the Chevron transaction, concurrently with the closing of the Phoenix sale, are two significant steps in the group’s strategy for turning from a local company to a leading international energy company,” said Delek chief executive AsafBartfeld.Last week, Delek sold a 32.5% stake in insurer Phoenix Holdings (PHOE1.TA) for 1.57 billion shekels ($450 million) to two private equity firms after it was forced to divest from Phoenix due to regulation that prohibits conglomerates from holding stakes in financial and non-financial businesses.The 10 fields acquired in the Chevron transaction are expected to generate Ithaca an estimated EBITDA of $3 billion in the next three years and substantial cash flow of hundreds of millions of dollars per year, which Delek said would allow it to repay its loans taken out for the deal and to distribute dividends.Delek and Ithaca, it noted, intend to float the combined Ithaca entity on the London Stock Exchange and negotiations with prospective investors are ongoing.

https://www.hellenicshippingnews.com/israels-delek-completes-2-billion-purchase-of-chevrons-north-sea-fields/

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City approves phasing out use of natural gas – Alameda, California

At its Nov. 5 meeting, the City Council voted unanimously to pass a local building resolution that implements part of the Climate Action and Resiliency Plan (CARP) by limiting the use of natural gas in newly constructed buildings on city property.

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The effort is intended to reduce greenhouse-gas emissions (GHG) in Alameda. The move may mark the first step to phasing out natural gas citywide. The policy serves to establish immediate regulations on land owned by the city, especially given that the vacant lands owned by the city at Alameda Point represent a large portion of the remaining vacant lands in Alameda that may be developed with residential uses.The city immediately recevied support from the Sierra Club on its decision. “Cities across California have been taking control of their energy future by passing local building codes to encourage phasing gas out of newly constructed buildings so that communities can be less reliant on outdated gas power and the City of Alameda is no different,” said Igor Tregub with the San Francisco Chapter of the Sierra Club. “In passing this local resolution, the city has taken another bold but necessary step to ensure it is not left behind in California’s move toward a clean energy future.” According to the Sierra Club, Alameda is the 15th city in California to reduce gas use in buildings. In addition, last year the University of California adopted new regulations governing the use of natural gas on University-owned property.In March the City Council declared a climate emergency and joined a global effort to get to net zero emissions as soon as possible. In September Council adopted an updated and revised CARP City with the goal of lowering citywide GHG emissions 50% below 2005 baseline levels by 2030 and achieving the vision of net-zero emissions as soon as possible.The city found that natural gas and the infrastructure needed to transport gas to homes and businesses comprise 25% of GHG released in Alameda. Only transportation produces more. According to the city, use of electric heating and cooling infrastructure in new buildings could result in a reduction of 14,396 million tons of Alameda’s carbon-dioxide emissions by 2050. 

https://alamedasun.com/news/city-approves-phasing-out-use-natural-gas

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Global LNG Development

Global LNG-Asian prices drop for 3rd week amid expectations of mild winter

Asian spot prices for liquefied natural gas (LNG) fell for a third consecutive week on expectations of a mild winter denting demand amid ample global supply, trade sources said.Spot prices are at their lowest for this time of the year in a decade,

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RefinitivEikon data showed.Prices for December delivery to Northeast Asia LNG-AS are estimated to be about $5.70 per MMBtu, down 20 cents from last week, said several sources who are market participants.Prices for January delivery are estimated to be about $6.30 per MMBtu, they added.“Previously, when winter approaches there is usually certain demand that comes in but this winter, there seems to be much more supply than demand,” an LNG trader said.Australia’s Ichthys LNG plant and Russia’s Sakhalin 2 plant offered a cargo each for loading in December and January, industry sources said.Argentina’s YPF issued a spot cargo earlier this week which will likely land in Europe, the sources said.Nigeria LNG may have sold a Nov. 10 to 11 loading cargo to Cheniere, one source said, though this could not immediately be confirmed.Low spot prices attracted some demand from India, with Indian Oil Corp and Reliance Industries buying a cargo each for delivery in December, traders said.IOC likely paid close to $5 per MMBtu for a cargo to be delivered into Dahej terminal on Dec. 3, while Reliance could have paid about $5.20 per MMBtu for a Dec. 2-4 cargo, they added.IOC is expected to issue another tender seeking a cargo for mid-December delivery, they said.India’s GSPC likely did not award a tender seeking a Dec. 6 to 10 cargo, trade sources added.In Southeast Asia, state-owned Electricity Generating Authority of Thailand (EGAT) issued its first tender to buy two spot LNG cargoes, industry sources said.EGAT is looking for one cargo to be delivered in December 2019 and one in April 2020 in a tender which will close on Nov. 11, one of the sources said.The Singapore-based trading unit of Thailand’s PTT is seeking one cargo a month for delivery over a year from March 2020, industry sources said.This is likely for trading purposes rather than to meet domestic demand, one of them said.Chinese state-run utility Guangdong Energy Group is seeking 16 cargoes for delivery over four years from 2020, its first such medium-term requirement, two industry sources said.

https://www.hellenicshippingnews.com/global-lng-asian-prices-drop-for-3rd-week-amid-expectations-of-mild-winter/

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Asian LNG price drops as floating storage starts unloading

Asian spot prices for LNG slumped this week as floating storage cargoes started unloading into an already oversupplied market.The average LNG price for December delivery into northeast Asia

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was estimated at $5.90 per MMBtu, $0.40/MMBtu down from last week.Vessels floating with cargoes on board waiting for a higher price have started discharging, with most of the volumes expected to be unloaded this month.This could further pressure prices, traders said.“The November-December spread is not as wide as the spread between November and previous months was, so it doesn’t make sense to hold cargoes for longer,” one LNG trader said.Floating cargoes were unloaded this week in Greece, Poland, Spain, the Netherlands, India and Japan.

Some of the longest floaters are heading to terminals for unloading now. The Diamond Gas Sakura that loaded a U.S. cargo back in mid-August signaled Taiwan’s Yongan as its destination this week.The majority of the still floating cargoes is scheduled to reach various terminals in early November, while at least nine vessels are either not moving or do not have a confirmed destination yet.At least two deals were done this week below or close to $6/MMBtu, an LNG trader said. Russia’s Sakhalin 2 project awarded a Dec. 11 loading cargo below $6/MMBtu, the source said. The cargo was offered on a free-on-board (FOB) basis.Japan’s Tohoku Electric Power bought a late December cargo just below $6/MMBtu, the source added.There was a deal for end December at S&P Global Platts market on Close (MOC) window at $6.10/MMBtu between Vitol and BP. The majority of bids in the window for December were below $6/MMBtu this week.Poland’s state-run gas firm PGNiG has awarded its tender for five cargoes at a $0.10-0.15/MMBtu discount to the Dutch gas benchmark, a source said. The cargoes are for delivery in the first quarter 2020.JERA Global Markets has awarded its tender for the first quarter 2020 delivery at a $0.10-0.15/MMBtu discount to the Japan Korea Marker (JKM), another source said. Five of eight cargoes were awarded to Shell, BP and Mitsui, a separate source said.Spot LNG demand remained scarce this week.Korea Gas Corporation (KOGAS) is facing a situation of full LNG storages, a source said. KOGAS might have bought up to 15 cargoes for January and February delivery, two trade sources said last week.Growth of LNG demand in China in 2019 is expected to slow to 14%-17% from 41%-42% in 2018, according to analysts from Wood Mackenzie and IHS Markit.But the domestic gas price in China is higher than the spot LNG price, so there could be some opportunistic buying, traders said.In terms of tenders, Mexican state power utility CFE was seeking one cargo for mid-November delivery.Turkish state energy company Botas issued a tender closing on Nov. 8 to buy 70 LNG cargoes for delivery over 2020-2023.

Source: LNG Global

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China LNG imports slide 1st time in 3 years on outage, stocks

China’s imports of liquefied natural gas are poised to drop for the first time in more than three years as buyers grapple with an outage at a key receiving terminal and hefty stockpiles.

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The world’s top buyer of natural gas imported 3.8 MMT of the fuel in LNG form Oct. 1-30, according to berth data compiled by Bloomberg, compared with 4.6 MMT for the full month last year. If confirmed by official customs data, which will be published later this month, it would be the first year-over-year drop since July 2016.The slide can be partially attributed to an outage at the Rudong LNG terminal, which has been shut since late September after it was damaged during a typhoon. No LNG tankers arrived at Rudong last month, according to the berth data, compared with vessels carrying about 727,000 tons in October 2018. A milder summer also left buyers in China with larger-than-normal stockpiles leading into the winter demand season, which slowed purchases for October-arrival cargoes.Global LNG sellers have hung their hopes on China as demand in stalwart markets such as Japan and South Korea is expected to be steady or declining. Chinese companies imported 53.8 MMT of LNG in 2018, a nearly three-fold increase since 2015. The country has imported 47.2 MMT this year through Oct. 30, up 14% from 2018, according to berth data.The October trend was noted earlier Friday in a note by Eurasia Group analyst Henning Gloystein.

Source: LNG Global

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Angola forms consortium with five oil firms for $2 bln LNG project

Angola has formed a consortium with five international oil companies including Eni and Chevron to develop liquefied natural gas (LNG) for its Soyo plant, the newly formed national oil, gas and biofuels agency ANGP said.

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The consortium’s project will have an initial cost of $2 billion, with an aim to start production by 2022, an ANGP spokesman said on the sidelines of the Africa Oil Week conference in Cape Town.Italy’s Eni will operate the project, and the members will share costs according to participation.Chevron will take a 31% stake, Eni 25.6%, Sonangol P&P 19.8%, Total 11.8% and BP 11.8%.The Soyo LNG plant is designed to process 1.1 billion cubic feet of natural gas per day and has the capacity to produce 5.2 million tons of LNG per year, as well as natural gas, propane, butane and condensate.

https://www.hellenicshippingnews.com/angola-forms-consortium-with-five-oil-firms-for-2-bln-lng-project/

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Việt Nam to import LNG to meet burgeoning electricity demand

Demand for liquefied natural gas (LNG) will continue to be strong, outpacing domestic production by 2020 requiring the country to import around one million cubic metres a year, according to the Ministry of Industry and Trade.

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According to PhùngVănSỹ, general manager of the ministry’s oil and gas division, who spoke at the International LNG/Energy Summit held in HCM City on November 12,  Việt Nam’s natural gas supply is currently 9-10 BCM a year.Since 2015 consumption has been around 10 BCM, 83% by the power sector, 11% by the fertiliser sector and 6% by other industrial sectors.From 2021 to 2035 the market is expected to grow significantly, reaching 31 BCM a year.The Government has created a legal framework for the development of the LNG industry, and identified priority projects based on demand and investment promotion.“The Ministry of Industry and Trade has considered importing LNG from the US to narrow the trade deficit.“However, the purchase of gas from the US will be based on the spirit of co-operation. If the US’s gas prices are competitive, then Việt Nam will import LNG from the US.”Marie Damour, the US consul general in HCM City, said Việt Nam’s Power Development Plan (PDP-8) presented an opportunity for energy companies to invest in the country.Due to Việt Nam’s rapid industrialisation and urbanisation, the Government expected electricity consumption to grow by 10-12 per cent annually through 2020, she said.To meet this increasing energy consumption, the country had begun the movement towards LNG, a natural solution to address the country’s quickly rising energy demands, she said.“Within this sector are American companies that are well known as world leaders for advanced technologies, quality, and experience.“As Việt Nam moves closer to utilising LNG as part of its energy portfolio, US companies can help support an energy landscape that is investment rich and energy secure, something in the interest of both Việt Nam and the US.”Joe Knierien, executive director of Globalinx Group, the event’s organiser, said US companies were greatly interested in selling and distributing LNG to Việt Nam because they saw great demand in the market.“So we would like to have closer collaboration with Vietnamese companies to assist in the development of the energy sector and energy security.

“We are very interested in investment in developing energy projects here in Việt Nam.”He said his company brought its partners Fluor, Braemar and Emerson, all top LNG companies to Việt Nam to evaluate the opportunities available.Sỹ said: “Currently the gas market and gas prices in Việt Nam are controlled and regulated by the Government through various decisions depending on the wellhead gas price.“By 2025 the Government is trying to open part of the gas market, and after 2025 Việt Nam will try to fully open its gas market.”

https://vietnamnews.vn/print/viet-nam-to-import-lng-to-meet-burgeoning-electricity-demand/538323.html

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Natural Gas / LNG Utilization

U.S. EPA awards $1 million to help replace diesel trucks in Phoenix

The city of Phoenix Public Works Department recently was awarded $1 million in Diesel Emissions Reduction Act (DERA) grants by the US Environmental Protection Agency (EPA) to replace some of the department’s diesel-fueled trucks.

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The grant money will be combined with matching funds of $2.1 million from Phoenix Public Works and its private partner, Mr. Bults Inc., to purchase nine new solid waste collection trucks and one long-haul truck powered by CNG to replace old, diesel vehicles. The DERA grant is a huge assist to Phoenix’s diesel truck replacement program, which has a primary objective of improving the environmental health of the city through the use of alternative fuel vehicles with low harmful emissions. Phoenix Public Works already has replaced 135 of its 250 diesel collection trucks with CNG-fueled ones. The program to transition to natural gas trucks began in 2010 as a pilot. By 2013, the department made it a policy to purchase CNG trucks moving forward. “Vehicles are the number one producer of emissions in our city. These emissions degrade the Valley’s air quality and negatively impact our residents’ health and well-being,” said Phoenix mayor, Kate Gallego. “Phoenix is working to mitigate the harmful effects of vehicle emissions by expanding our public transportation options and investing in alternative fuel vehicles for city services.” “Through the DERA Program and our private partner, Phoenix is making big strides in removing some of the least efficient diesel fueled vehicles and replacing them with lower emission vehicles,” said Councilwoman Thelda Williams, chair, Transportation, Infrastructure and Innovation Subcommittee. “In addition to cost efficiencies, this technology will deliver significant reductions in emissions resulting in cleaner air for our residents.”Phoenix Public Works is responsible for the collection of trash and recycling from approximately 400,000 households weekly. One of the department’s immediate goals is to have a total of 152 trucks running on CNG by the end of 2019. Its long-range plan is to fuel 97.5% of its 250 solid waste trucks with CNG by 2024, as part of the department’s commitment to sustainability through environmentally-conscious practices.

http://www.ngvjournal.com/s1-news/c3-vehicles/u-s-epa-awards-1-million-to-help-replace-diesel-trucks-in-phoenix/

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Chart builds Europe’s largest LNG vehicle fueling station for AlternOil GmbH

Chart Industries, Inc. completed the installation and commissioning of Europe’s largest LNG fueling station for AlternOil GmbH (AlternOil).  AlternOil will operate the fueling station, which is located on Germany’s main A1 highway near the city of Bakum,

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following final approval by local authorities expected in early December 2019. Chart’s proprietary “Saturation on the Fly” (SoF) technology eliminates methane emissions to atmosphere and recognizes both spark ignited and compression engines which allows the station to fuel all LNG trucks regardless of original equipment manufacturer or brand.  SoF also improves the station’s overall energy management and provides a total refueling time consistent with equivalent diesel engine vehicles. “We continue to contribute to the development of the global LNG infrastructure ranging from liquefaction to marine to transportation,” stated Jill Evanko, Chart’s CEO.  “AlternOil GmbH continues to offer maximum operator convenience through flexible, full-service truck centers that incorporate full integration of Chart equipment with other aspects of the station, including AlternOil’s cashless payment system.” Bakum is a municipality in the district of Vechta, in Lower Saxony. It is situated in the Vechta district in western Lower Saxony. AlternOil is planning further LNG filling stations in their intended German network, including in Fulda, Cologne, Hamburg, Bremen and Remscheid.

http://www.ngvglobal.com/blog/chart-builds-europes-largest-lng-vehicle-fueling-station-for-alternoil-gmbh-1113

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UK leading consumer delivery specialist adds 42 NGVs to green fleet

A total of 42 IvecoStralis CNG tractor units will be added to the operation over the coming weeks, taking the total to 72 across the Hermes’ fleet. Once introduced, the new vehicles will account for more than 40% of the company’ first mile delivery fleet.

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These have been ordered from CNG Fuels, the only UK supplier of Renewable Transport Fuel Obligation (RTFO) approved biomethane. The investment follows a successful 12-month trial which delivered carbon savings in excess of 4,000 tons.Each vehicle will reduce CO2 emissions by over 80% when compared to a diesel Euro 6 vehicle. This will result in a reduction of 150 tons of CO2 per vehicle and 9,600 tons of CO2 across the 72 CNG vehicle fleet annually. Other benefits of the NGVs include: 70% less NOX, 99% less particulate matter, 90% less NMHC and 88% less methane.“At Hermes we are committed to ‘delivering a premium service that doesn’t cost the earth’ which reflects both our industry leading cost proposition and sustainable approach to business. As part of this we are continuing to support pioneering alternative low carbon fuels to achieve our goal of slashing emissions. We will also be trialing DAF hydrogen tractor units next year and looking to expand our electric fleet outside of London,” said Jon Ormond, Hubs & Depots at Hermes UK.Peter Eaton, General Manager, CNG Fuels, also commented: “CNG Fuels are committed to helping our customers reach their low carbon goals through our growing UK network of public access bio-CNG refueling stations. Renewable and sustainable biomethane is currently the only mass-adoptable low-carbon solution for HGVs and we are thrilled Hermes will now have access to our Warrington bio-CNG station, the largest of its kind in Europe.”

http://www.ngvjournal.com/s1-news/c3-vehicles/uk-leading-consumer-delivery-specialist-adds-42-ngvs-to-green-fleet/

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Spain’s first CNG vehicle for people with reduced mobility now available

Rehatrans, a Spanish company dedicated to the transformation of vehicles for people with reduced mobility (PRM), announced that the new Caddy Maxi PRM CNG is now available for sale both to individuals, social entities and service companies that work in the PRM sector,

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such as nursing homes, airports or hospitals, as well as to the taxi sector, after its recent presentation at the Taxi Fair in Barcelona.This environmentally-friendly and adapted vehicle represents a further step in the objective of “guaranteeing inclusive and sustainable mobility for all”, said Rehatrans. According to the latest INE (Spanish Statistical Office) study, in Spain there are about 4 million people who have some type of disability, so “it is essential to continue working in this line to offer solutions in order to facilitate people’s lives while being respectful of the planet,” they added.The new Caddy Maxi PRM CNG is a novelty in the growing demand of users for having cleaner vehicles, with less emissions and greater range. This model has the ECO label and consists of four CNG tanks that combine bi-fuel natural gas technology and a gasoline tank, which saves 50% on fuel costs. In addition, it offers an autonomy of 560 kilometers only with the CNG tanks and 180 kilometers with the gasoline tank. It also reduces NOx emissions by 80% and CO2 emissions by 15%.The Volkswagen Caddy Maxi PRM CNG is the first environmentally-friendly vehicle adapted for the transport of people with reduced mobility that is commercialized in Spain, and provides great improvements, such as its five available seats, independent of the space occupied by the wheelchair. Its roof is higher (1.45 meters high) and the interior of the cabin is wider, which translates into greater comfort compared to other vehicles in its category.To analyze this extremely positive scenario for natural gas and sustainable mobility, and evaluate the latest technological developments in alternative fuels, AltFuels Iberia 2020 will be held on 5-9 October at IFEMA Trade Fair Center in Madrid. For more information, please contact info@altfuelsiberia.com.

http://www.ngvjournal.com/s1-news/c3-vehicles/spain-they-present-the-first-gas-vehicle-for-people-with-reduced-mobility/

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Colombia exceeds NGV goals in all transport segments

The Colombian Association of Natural Gas (Naturgas) revealed the most recent figures of vehicles converted to natural gas so far this year and the number of factory-fitted CNG passenger transport vehicles, dump trucks, tractors and trucks that have been acquired in the country in the last 10 months.

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“We have exceeded expectations in the different transport demand segments. Natural gas has been a sustainable mobility commitment of many mayors and governors, as well as businesses which already see savings in operating costs, and improvements in air quality,” said Orlando Cabrales Segovia, president of Naturgas.The number of vehicles converted until September 2019 has exceeded the figure achieved throughout the past year. According to the Ministry of Mines and Energy, there are 15,480 cars that have bet on a more economical and efficient fuel, with the largest number of conversions taking place in Bogotá, Medellín, Cali, Barranquilla and Pereira.As for CNG dedicated taxis (factory-made), the figure has grown considerably reaching 110 vehicles. The arrival of an additional 65 units is expected, mainly in Bogotá and the Coffee Axis.Moreover, there are currently 1,300 CNG dedicated heavy vehicles (public transport buses, trucks, tractors and refuse trucks) in circulation and at the end of the year there will be about 1,600. “Public and freight transport has switched to natural gas for vehicles, due to its economic benefits, offering savings of around 50% compared to gasoline and 35% compared to diesel,” said Cabrales Segovia.

http://www.ngvjournal.com/s1-news/c1-markets/colombia-exceeds-ngv-goals-in-all-transport-segments/

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Scania delivers new CNG trucks for logistics operations in Barcelona

As part of its continuous commitment to the environment, Margolles Logistic has added five environmentally-friendly tractors. These new Scania units belong to the P series,

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have a 9-liter 340-hp engine that offers a maximum torque of 1,600 Nm and are propelled by CNG. These are the first NGVs of Margolles Logistic, which has a fleet of 40 vehicles, three of them manufactured by Scania.“I believe that Scania has the best natural gas vehicle on the market and, as we already have some Scania units in our fleet, we have opted for these vehicles,” said Luis Miguel Margolles, General Director of Margolles Logistic SL. “These trucks will operate in the city of Barcelona. We have decided to bet on natural gas to seek the reduction of emissions from our transport operations and thus face the restrictions on entry into the city, since next year a new access regulation will be applied.”The increased concern about air quality has resulted in traffic restrictions in many European cities. That is why the demand for natural gas-powered vehicles is growing exponentially, since they represent a sustainable alternative for the distribution sector. One of the main advantages of natural gas as a vehicle fuel is that it reduces CO2 emissions by up to 15%, and can reach 90% in the case of biogas. In addition, natural gas engines are quieter than diesel, which make them suitable for sensitive urban environments.

http://www.ngvjournal.com/s1-news/c3-vehicles/scania-delivers-new-natural-gas-trucks-for-logistics-operations-in-barcelona/

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Trinidad and Tobago: automotive dealers association bets on NGVs

The Automotive Dealers Association of Trinidad and Tobago (ADATT) has added its voices to the debate on the future of CNG, saying that it is tenable and pertinent to the country’s automotive market,

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reported local newspaper Guardian.“CNG is extremely viable and relevant in Trinidad and Tobago,” said President of the ADATT Jerome Borde. “This country is a leader in natural gas production, transportation and downstream uses. It makes total sense to leverage our rich natural gas history and use it as a fuel for vehicles.”Borde believes that the NGC CNG (subsidiary of the National Gas Company of Trinidad and Tobago) and several other stakeholders have been down some extremely good work in building an NGV industry. According to the NGC CNG President Curtis Mohammed, the CNG convergence business has generated $43 million.President of the ADATT noted: “While we may focus on OEM CNG vehicles, most of the NGVs on the road are converted internal combustion vehicles, which gives those owners a much more affordable fuel and operating cost.” The NGV industry also encompasses other areas which create employment, including the scores of technicians at converters.Moreover, Borde said that Classic Motors introduced the Honda City CNG sedan in March 2015 and “the vehicle has done well for us.” “Its performance and the feedback from customers is excellent and we are happy to have been pioneers, since this was the first OEM CNG sedan in Trinidad and Tobago,” he stated and added that Ansa Motors have also sourced OEM CNG buses and a heavy-duty truck.According to Borde, there are some 15 OEM CNG brands of vehicles in the country, “which is good progress from zero models in 2014.” He estimates that since 2014 the OEM NGVs across all market segments, including buses, commercial vans and sedans, comprise around 3,000 units, and that the figure is growing at an increasing rate as the drivers are realizing the savings and returns attached to CNG.

http://www.ngvjournal.com/s1-news/c1-markets/trinidad-and-tobago-automotive-dealers-association-bets-on-cng/

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LNG as a Marine Fuel/Shipping

Europe’s first permanent LNG bunker station opens in Germany

PitPoint has opened Europe’s first shore-to-ship LNG bunker station for inland shipping at the NiehlerHafen in the Port of Cologne. Co-financed by the European Union, this opening represents a concrete step towards

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facilitating clean maritime transport, and is part of PitPoint.LNG’s plans to develop a European LNG infrastructure for heavy-duty transport by road and water. The strategic location of the station between Basel and Rotterdam and good access to the location were the main reasons for choosing the Port of Cologne.With the new shore-to-ship bunker station in place along Europe’s busiest waterway, another positive step has been taken in developing the LNG infrastructure required for facilitating the uptake of LNG as fuel for maritime transport. The new bunkering station significantly expedites the bunkering process: where LNG-fueled vessels were required to submit a request and schedule an appointment to purchase LNG from a truck-to-ship bunkering station, shore-to-ship bunkering can now be done faster and easier via the station’s powerful pumps. Moreover, the station is open 24/7, with professional service engineers available to provide bunkering services. In the near future, the station will be able to fuel two vessels at the same time.“We are very proud to welcome Europe’s first permanent LNG bunker station at our port in Cologne. This is another building block in our approach to focus on sustainable and environmentally friendly transport. LNG is known to be a reliable and clean alternative fuel, which helps reduce pollutant emissions in particular. That is why we see the use of LNG as an important step towards a sustainable future for logistics,” said Jan SönkeEckel and Wolfgang Birlin, Managing Directors of port operator RheinCargo. The LNG bunker station is the result of a supply chain collaboration. Together with shippers, port companies, shipping companies, transport companies and support of the European Union, PitPoint has worked hard to make European inland shipping more sustainable. The company’s goal is to harness LNG to pave the way for 100% clean transport by 2030.

http://www.ngvjournal.com/s1-news/c7-lng-h2-blends/europes-first-permanent-lng-bunker-station-opens-in-germany/

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Balearia links Almería& Melilla with natural gas smart ship Marie Curie

The shipping company Baleària has added its LNG-fueled ferry Marie Curie to the line that connects Almeria and Melilla, a service that in principle will be maintained every Saturday, until next November 14. The Marie Curie, with dual LNG and

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fuel oil engines and a power of 20,600KW, represents a new milestone in the commitment to innovation and sustainability carried out by Baleària, which has invested 200 million euros in construction of this ferry and the Hypatia of Alexandria, a twin ship.The president of the Port Authority of Almeria (APA), JesúsCaicedo, made a protocol visit to the ship to welcome the crew. He valued Baleària’s commitment to innovation and sustainability, and expressed his desire that the shipping companies operating in the Port of Almeria incorporate innovations and improvements in the service that make the trip between Almería and the ports of North Africa more comfortable.Baleària’s new smart ship, which can reach 25 knots of speed, has 186.5 meters in length and a capacity for 880 people, 2,194 linear meters of cargo and 166 vehicles.Baleària is a pioneer company worldwide in the use of LNG as marine fuel. It has been working on projects related to this fuel since 2012. It currently has four ferries with LNG dual fuel engines, two of them newly built (Hypatia de Alejandría and Marie Curie) and two retrofitted (Nápoles and Abel Matutes). In addition, four more converted ships will be added until 2021, as well as the world’s first ‘fast ferry’ powered by LNG dual fuel engines, Eleanor Roosevelt, which is scheduled to be operational in 2020. Therefore, the plan includes a total of nine LNG-powered smart ships by 2021.

http://www.ngvjournal.com/s1-news/c7-lng-h2-blends/balearia-links-almeria-and-melilla-with-the-lng-powered-smart-ship-marie-curie/[Edited]

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GasLogsees tighter LNG shipping market

GasLog, an international owner, operator and manager of LNG carriers, is predicting a tighter LNG shipping market, as increasing United States LNG output combines with a seasonal uptick in demand for gas,

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resulting in rising demand for shipping and higher utilization of the global fleet.These underlying trends in the LNG commodity and shipping markets point towards a structurally tighter market through 2020 and into 2021.As of October 28, 2019, the LNG fleet and orderbook (excluding floating storage and regasification units (FSRUs) and vessels with capacity below 100,000 cbm) stood at 507 and 110 vessels, respectively, as estimated by Poten, with the orderbook representing 22% of the on-the-water fleet, unchanged from the beginning of 2019.Out of the LNGCs in the current orderbook, 68, or 62%, are chartered on multi-year contracts. There have been 37 vessels ordered thus far in 2019, including 13 during the third quarter, compared to a total of 63 in 2018, suggesting that the pace of newbuild ordering continues to moderate.According to Wood Mackenzie, global LNG supply totaled 90 MMT in the third quarter of 2019, a 2% increase from the second quarter and 11% growth year-on-year. During the third quarter, growth from new U.S. projects (Cameron, Corpus Christi Train 2 and Freeport) and the ramp-up of the Prelude project in Australia offset continued under-performance from plants in Indonesia and Malaysia and maintenance activities at PNG LNG, Sakhalin-2, Peru LNG and Sabine Pass.Compared to the third quarter, supply is expected to grow by 6%, to 95 MMT, in the fourth quarter of 2019, principally reflecting a full quarter of production from the U.S. projects mentioned above, as well as initial production from the Elba Island facility.For 2019, Wood Mackenzie estimates annual LNG supply at 364 MMT, which represents 12% growth over 2018. Supply is expected to grow by a further 7% in 2020 with the addition of further trains at the Cameron, Freeport and Yamal LNG (Russia) projects.During the third quarter, the Calcasieu Pass project (10 MMTPA) in the U.S. and Arctic LNG-2 reached a Final Investment Decision (FID).Arctic LNG-2, at 19.8 MMTPA of nameplate capacity, is the single largest project sanction in the history of the LNG industry. Combined with projects approved earlier in the year, 2019 has set a record for LNG FIDs, totaling 63 MMTPA to-date and surpassing the 2005 record of 46 MMTPA.In addition, the 2.1 MMTPAWoodfibre LNG project in Canada is expected to reach FID by the end of 2019, while ExxonMobil recently awarded engineering contracts for the 15.2 MMTPA Rovuma LNG project ahead of an expected FID in 2020. In total, Wood Mackenzie expects 115 MMTPA of new capacity to commence production between 2020 and 2024.Global LNG demand was 87 MMT in the third quarter of 2019, compared with 78 MMT in the third quarter of 2018, an increase of 10%, according to Poten.European imports accounted for much of the growth, rising 8 MMT year-over-year (or approximately 100%), while demand from Northeast Asia (Japan, China, South Korea and Taiwan) was approximately flat.For the twelve months ending September 30, 2019, LNG demand was 351 MMT, compared with 308 MMT for the twelve months ending September 30, 2018, an increase of 14%. Demand from Europe was particularly strong, growing by 36 MMT, or 105%, while China’s demand growth was also noteworthy, rising 11 MMT, or 22%.The global gas market remains well-supplied, given the combination of ample inventories following higher-than-average temperatures in the 2018/19 winter and LNG supply growth so far this year. This has resulted in further inventory builds, notably in Europe where storage is currently at 98% of capacity, according to Gas Infrastructure Europe, and sustained pressure on gas pricing, with European and U.K. gas prices recently touching their lowest levels since 2009. However, the combination of low gas prices and rising carbon prices have improved the competitiveness of gas as a fuel for power generation compared to coal, particularly in Europe.During the third quarter of 2019, gas-fired power generation in Europe increased 31% year-on-year, accounting for 21% of total power generation compared to 16% a year earlier, according to Bloomberg.Notably, Spain’s gas demand for power in September was up 128% year-on-year, as gas accounted for 27% of the power mix, with coal at just 2%, according to Spain’s national grid operator Enagás. A similar trend in the Netherlands has prompted German utility company RWE AG to re-commission a 1.1 gigawatt (GW) gas-fired power plant by 2020.A deteriorating macroeconomic outlook, particularly in China, could present a near-term headwind for LNG demand by reducing natural gas consumption growth. However, the long-term fundamentals for gas and LNG demand growth remain very attractive, underpinned by continued energy demand growth and the significantly better emissions profile of gas versus coal.The most recent example of this was a proposal by the South Korean government to address air pollution by significantly reducing coal-fired power generation from December 2019 to March 2020.In addition, Wood Mackenzie recently forecast that Europe’s gas import dependency and call on LNG imports will continue to grow, due to falling domestic production in many countries and declining pipeline flows from North Africa and Central Asia, as well as potential limits on Russia’s share of European gas imports.

https://www.maritimeprofessional.com/news/gaslog-sees-tighter-shipping-market-352558

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First LNG bunkering in Nagoya Port

Toho Gas Co., Ltd. and Mitsui O.S.K. Lines, Ltd. (MOL) have announced the implementation of a demonstration test to supply LNG, via bunkering, to the LNG-fuelled tugboat Ishin in the Port of Nagoya.

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The operation marked the first LNG bunkering in the Port of Nagoya, and the test confirmed that LNG can be safely supplied to vessels at the port.The LNG was transported via truck from the Toho Gas Chita-Midorihama LNG terminal, and supplied with a truck-to-ship system to the Ishin, berthed at the Port of Nagoya’s Garden Pier.Also cooperating in the demonstration test were Niyac Corporation, a company which provides LNG land transport for Toho Gas, MOL Marine Co., Ltd., which provides maritime consulting services, and Nihon-Tug-Boat Co., Ltd., which operates the Ishin.Based on the findings of the demonstration test, Toho Gas and MOL will continue working to reduce the environmental impact of the maritime industry by promoting the use of LNG fuel by vessels calling at the Port of Nagoya.

https://www.lngindustry.com/liquid-natural-gas/08112019/first-lng-bunkering-in-nagoya-port/

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

Colorado unveils study boosting use of renewable natural gas in mobility

The Colorado Energy Office released a Renewable Natural Gas in Transportation: Colorado Market Study that provides a preliminary assessment of Colorado’s potential to produce renewable

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natural gas from major organic waste sources—including landfills, wastewater, animal and food waste — for use in on-road transportation vehicles, such as buses and trucks. The study is authored on behalf of the office by Energy Vision.With Colorado’s growing population and significant agricultural activities, the state has a considerable potential resource for producing biomethane. Based on organic feedstocks and existing technologies to capture and refine methane-rich biogases produced as waste materials decompose, the study finds Colorado’s renewable natural gas resource could replace approximately 140 million gallons of diesel, or 24% of the state’s total diesel consumption for transportation, eliminating approximately 1.4 million metric tons of CO2 from fuel combustion annually.“Colorado has a significant opportunity to produce and utilize biomethane in medium- and heavy-duty vehicles throughout transportation systems in the state,” said Will Toor, executive director of the Colorado Energy Office. “With renewable natural gas, the replacement of diesel fuel and mitigation of methane emissions from agricultural, municipal and commercial waste management practices could provide meaningful climate and clean air benefits through reduced greenhouse gas and nitrogen oxide emissions.”To date, Colorado’s biomethane potential remains largely untapped. There may be potential for its use in the state outside the transportation sector as well, such as sourcing by electric utilities or natural gas distribution utilities. The study identifies additional areas of research for a Phase II “roadmap” study that CEO will conduct this fiscal year.Funding will be available to public and private fleets for biomethane-powered vehicles and equipment through Colorado’s recently updated Volkswagen Diesel Emissions Beneficiary Mitigation Plan.

http://www.ngvjournal.com/s1-news/c1-markets/state-of-colorado-unveils-study-boosting-use-of-renewable-natural-gas-in-mobility/

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Alstom brings world’s first hydrogen fuel cell train to the Netherlands

Alstom, the Province of Groningen, local operator Arriva, the Dutch railway infrastructure manager ProRail and the energy company Engie have signed plans for a pilot project to test the CoradiaiLint, the world’s first passenger train powered by hydrogen fuel cells,

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for the first time in the Netherlands. The signature took place as part of the “Klimaattop” (Climate Summit Northern Netherlands).The tests, expected to take place during the first quarter of 2020, will be carried out on the track between Groningen and Leeuwarden at up to 140 km/h and will last about two weeks. The objective is to demonstrate that hydrogen fuel cell technology is an appropriate way to achieve zero-emission rail traffic on non-electrified lines in the Netherlands where there are currently diesel trains running. The Dutch railway network has approximately 1,000 kilometers of non-electrified line.“Alstom is committed to developing and implementing mobility solutions that permit not only the emergence of fully sustainable transport systems but also help drive the broader energy transition. We look forward to demonstrating what has already been proven in Germany – that hydrogen represents a highly suitable way forward in both cases,” said Bernard Belvaux, Managing Director of Alstom Benelux.The CoradiaiLint is the world’s first passenger train powered by a hydrogen fuel cell, which produces electrical power for traction. This zero-emission train emits low levels of noise, with exhaust being only steam and condensed water. The world’s first two hydrogen trains have already been in regular passenger service in Lower Saxony in Germany since September 2018. The local transport authority LNVG will operate 14 CoradiaiLint trains on that line from 2021. Also in Germany, RMV has ordered 27 CoradiaiLint – the largest fleet of hydrogen trains in the world – for operation from 2022.

http://www.ngvjournal.com/s1-news/c7-lng-h2-blends/alstom-brings-worlds-first-hydrogen-fuel-cell-train-to-the-netherlands/

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UK’s first net zero emissions biofuel for heavy trucks will arrive in 2021

CNG Fuels announced plans to become the UK’s first supplier of carbon neutral fuel for HGVs, using manure to help fleet operators achieve Net Zero emissions. The company is also consulting on

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how its network of refueling stations can best accommodate low-carbon hydrogen and battery electric technologies for HGVs, so that it can support customers when these become commercially viable.“We want to help decarbonize freight transport and enable fleet operators to meet Net Zero targets now, supporting the UK’s climate targets. Renewable biomethane sourced from manure is currently the best low-carbon solution for HGVs, but we want to be ready to support our customers when other technologies are commercially viable for freight transport,” said Philip Fjeld, CEO of CNG Fuels.Andy Eastlake, Managing Director of the Low Carbon Vehicle Partnership (LowCVP) also commented: “With all the focus on electrification, the low carbon combustion fuels might be overlooked. But it is vital to remember that Net Zero can be delivered in a number of ways. We welcome genuinely zero (or even negative) carbon solutions which exist here and now, and we must accelerate the uptake of these fuel solutions, particularly in the more challenging operations such as heavy road vehicles where they can best displace fossil diesel.”Manure gives off methane, a greenhouse gas 28 times more powerful than carbon dioxide. Using methane as an HGV fuel prevents it from going into the atmosphere and reduces overall emissions. The EU’s revised Renewable Energy Directive (RED II) recognizes biomethane from manure as a carbon negative fuel, and the UK is expected to adopt it in 2021 regardless of Brexit.

http://www.ngvjournal.com/s1-news/c4-stations/first-net-zero-emissions-biofuel-for-heavy-trucks-will-arrive-soon-in-the-uk/

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Synthetic gas produced by wind power may fuel container ship soon

MAN Energy Solutions and Wessels Marine GmbH are partnering to use liquefied SNG (synthetic natural gas) produced from renewable electrical energy as a drop-in fuel for a container ship.

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The retrofitted Wes Amelie will use SNG, replacing 20 tons of LNG with SNG on board the ship for an upcoming round trip. The companies are cooperating on the Wes Amelie project with Nauticor, the LNG transportation company, and Unifeeder, the charter company. Automobile manufacturer Audi’s Power-to-Gas facility in Werlte, where a liquefaction plant is currently under construction, will provide the SNG, which will be generated by wind energy and is thus 100 percent climate-neutral. The SNG trip will take place after the completion of the liquefaction plant in the second quarter of 2020, according to the report.The Wes Amelie, owned and managed by WesselsReederei (Haren/Ems), two years ago retrofitted its MAN 8L48/60B main engine to its current, four-stroke MAN 51/60DF unit that enables dual-fuel operation – the first such conversion of its type, the company says. “We strongly believe that a roadmap based on LNG and SNG as fuels can lead the way to a decarbonized future for shipping and, in Wessels Marine, we have the perfect partner,” said Stefan Eefting, head of MAN PrimeServ in Augsburg. “To bring down future emissions generated in the global-trade supply chain, synthetic fuels play a crucial role. Especially in shipping, the use of batteries alone is not a viable option and any successful decarbonization efforts need to address the fuel.”MAN Energy Solutions commissioned the Werlte-based methanation plant, in partnership with Audi, in 2013. While the 6 MW methanationunit is still the largest of its kind in Europe today, MAN now offers a 50 MW EPC Power-to-X solution to ramp up the generation of synthetic fuel.

https://www.power-eng.com/2019/11/11/synthetic-gas-produced-by-wind-power-may-fuel-container-ship-soon/#gref

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