NGS’ NG/LNG SNAPSHOT – November 2019, VOLUME 1

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City Gas Distribution & Auto LPG

Utrakhand to launch electric and CNG bus service

In a bid to reduce air pollution and improve public transport facilities in the state, Uttarakhand Transport Corporation (UTC) has announced to include electric and CNG buses in its fleet. The state plans to get 50 electric and 10 CNG buses by 2020.

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The decision comes after UTC officials received overwhelmingly positive response following the trial run of electric buses between Dehradun and Mussoorie last year and between Nainital and Haldwani earlier this year. UTC general manager (administration) Deepak Jain told TOI that if everything goes as planned, the corporation will receive the electric and CNG buses very soon. “All the new buses will be operated under Public Private Partnership (PPP) model. An MoU will soon be inked with Indraprastha Gas Limited in New Delhi as the CNG buses are to ply between Dehradun and Delhi in the first phase,” Jain said. The official added that at least 30 of the total electric buses to be received by the UTC will ply in Dehradun district under the Smart City project and among these 30 buses, 22 will operate in the capital city. While CNG buses are expected to join the UTC fleet by this year’s end, the authorities will be floating tenders for electric buses next month. The buses will be bought with the funds provided by the Centre. Observers say that the move will save millions of rupees per month that is presently spent on fuels. UTC had added 300 new buses to its fleet. At present, 1,350 public diesel buses run across the state.Meanwhile, Vijay Vardhan Dandriyal, vice-president of Uttarakhand Roadways Mahasangh (Employees Association), expressed surprise on the announcement of UTC saying, “The UTC has not planned CNG centres and power stations for electric buses. The move is good but I would have been happier if this had come with proper planning.”

 https://timesofindia.indiatimes.com/city/dehradun/ukhand-to-launch-electric-and-cng-bus-service/articleshowprint/71765716.cms

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In a first, Haryana gets straw-to-gas plant

India’s first plant to convert paddy straw into compressed biogas (CBG) is coming up at Gharaunda village in Karnal. The biogas generated at the Indraprastha Gas Limited’s plant will be used as CNG in vehicles and as piped cooking gas and help fight menace of stubble burning in fields.

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The ground-breaking ceremony to begin construction of the plant was held on Friday in the presence of Indraprastha Gas Limited (IGL) managing director E S Ranganathan. The plant is estimated to be completed by May 2020. It will have the capacity to convert stubble generated from 20,000 acres in a year into gas, which will then be sourced by IGL for its city gas distribution (CGD) network in Karnal. The plant will deploy special machines that will chop and bundle paddy straw for transportation to a storage. This storage will used through the year to production CBG. The biogas from the plant will run tractors and earth-movers as well as power gensets. Ranganathan said, “As an organisation committed to providing clean energy solutions to the society, IGL has been proactive in leveraging latest technology in all its operations and ensuring that the entire community is able to benefit from its initiatives. Environmental pollution is the biggest concern in the region today and it is our endeavour to reduce alarming levels of pollution apart from creating opportunities for additional income for farmers.” The Karnal plant will produce maximum of 10,000 kg CBG every day, with mostly paddy straw. The plant has the capacity to ‘consume’ nearly 40,000 tonne of paddy straw in a year. This unit is being set up by Ajay Bio-Energy Pvt Ltd, under ‘SATAT’ (sustainable alternative towards affordable transportation) scheme on compressed bio gas (CBG) launched by the Union ministry of petroleum and natural gas.The manure produced from the plant will be organic and could be used by farmers to produce organic food and vegetables. Stubble burning not only affects soil fertility as it results in loss of essential nutrients but also affects human health. The project aims to convert paddy wheat straw into bio-CNG. In addition to alleviating the ill effects of stubble burning on the environment, this project will also add to the income of the farmers in the region.

https://timesofindia.indiatimes.com/city/ludhiana/in-a-first-hry-gets-straw-to-gas-plant/articleshow/71679257.cms

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No relief for private CNG cars may hit push for clean fuel – Delhi

Delhi government’s decision not to exempt private CNG cars from the odd-even traffic rationing scheme could act as a disincentive for switching to the clean-burning fuel just when natural gas networks are being rolled out in 400 districts at an estimated investment of Rs 50,000 crore.

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Delhi government is planning to implement the scheme from November 1 to tackle air pollution, largely caused by burning of crop residue in neighbouring Punjab, Haryana and western UP. But chief minister Arvind Kejriwal on Saturday (Oct 12) said private CNG vehicles would not be exempted this time, even as his government was working on the exemption list. The CM’s statement drew howls of protest on social media as private CNG vehicles had been exempted in the earlier rounds of odd-even scheme because they have far lower carbon emission than petrol and diesel cars. On Tuesday (Oct 15), the government also exempted two-wheelers, even though they are more polluting in terms of carbon emission per unit capacity and have dodgy emission control records. The outrage was heightened by two-wheelers, which account for 70% of the more than one crore vehicles on Delhi’s road, being exempted. The rapid expansion in CNG network planned by the Modi government as part of its plan to help cities breathe easy and reduce the economy’s carbon footprint has prompted automakers to step up CNG variants of their popular models. The Kejriwal government’s decision could slow down that momentum, auto industry executives told TOI, requesting anonymity. The expansion of city gas networks is expected to cover 50% of the geographical area and 70% of the country’s population in the next few years. The Kejriwal government’s decision could also cloud the Rs 600 crore CNG network expansion plan of Indraprastha Gas Ltd, the Delhi government’s joint venture with central public sector utilities GAIL and Bharat Petroleum, as car buyers could switch back to petrol or diesel.

https://timesofindia.indiatimes.com/city/delhi/no-relief-for-pvt-cng-cars-may-hit-push-for-clean-fuel/articleshowprint/71605668.cms

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Electric Mobility

DMRC to run Electric feeder buses for last-mile connectivity

Delhi Metro takes a massive step to enhance last-mile connectivity. DMRC has started a special service in the name of “Delhi Metro feeder bus services” to help Metro commuters in last-mile connectivity.

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The tenders have been passed for the allotment, operations and maintenance of 100 electric feeder buses, which will be classified into two groups further. These electric feeder bus services will be equipped with air-conditioners for the comfort of passengers. These buses will help in boosting the last mile connectivity of the Delhi Metro network. As these feeder buses are electric mode buses, these are non-polluting too. The fresh tender initially will receive only a limited subsidy from the Department of Heavy Industry (DHI) and Public Enterprises through the FAME-2 scheme. The Delhi Metro network is a network of 377 km in the national capital region (NCR) with a total of 274 metro stations, which includes the Noida Metro Aqua Line connecting Noida and Greater Noida. Metro Electric Feeder service of last-mile connectivity becomes extremely important and beneficial for enabling effective public transport for commuters. Besides these feeder buses, DMRC has also made electric scooters or e-scooters available at various Delhi Metro stations which serve the same purpose to the commuters, in order to reach nearby places from the stations. A well-organized space for the parking of e-rickshaws, autos as well as cabs have also been arranged at several metro stations.

Source: electricvehicles.in/Financial Express

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Chandigarh EV Policy details

After 2030, only EVs will be registered in Chandigarh. Chandigarh will have the all-electric fleet of public buses by 2027, and the city will have an all-electric government fleet by 2025.

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By 2030, the city will have all-electric rickshaws, corporate fleets, cabs and school buses/vans. Chandigarh has also proposed to install 1,000 public EV chargers by 2030. First 3,000 buyers of electric two- and three-wheelers will get a direct subsidy of Rs 20,000 and for the first 1,000 EV buyers, free insurance for 1 year. All EV buyers will get a 100% exemption in road tax and registration charges till 2024. All government parking spaces will provide free parking slots reserved for EVs and all commercial buildings, education institutions and RWAs will have reserved parking space for EVs equipped with charging facilities.New public parking lots in Chandigarh will have a 30 per cent dedicated parking space for EVs.

Incentives and assistance for EV charging include:

The Joint Electricity Regulatory Commission (JERC) has fixed the charge of Rs 4 per unit and a monthly charge of Rs 100 on electricity bill for EV charging stations. A subsidy of 30 per cent on the installation of home chargers. A subsidy of 15 per cent for Charging infrastructure companies. The Department of Transport, will implement EV Policy in Chandigarh. In order to implement the policy, the UTI transport department will form an ‘EV Steering committee’, which will suggest measures to implement the policy perfectly.

Source: electricvehicles.in

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Toyota and Suzuki to introduce electric vehicles to the Indian market

The Japanese automaker, Toyota and Suzuki are working together to introduce Electric vehicles to the Indian market. Currently, Suzuki has started testing the Wagon-R’s electric version of the vehicle on its own.

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Fifty such vehicles are being tested. “Even though every component is perfectly made, a challenge still exists in the cost. Wagon-R electric version is priced at Rs 12 lakh, it is such an excessive price for the Indian market. This price won’t befit the individual buyers. But it may attract environment-conscious fleet operators,” said Managing Director, Kenichi Ayukawa to media. In November 2017, the time period during which the idea “all-electric by 2030” was making the headlines, Toyota entered an agreement with Suzuki to manufacture battery-operated electric vehicles for the Indian domestic market. According to the Memorandum of Understanding (MoU), Toyota will provide technical knowledge, and Suzuki would manufacture vehicles for the domestic market and supply some vehicles to Toyota for its marketing benefits. Shigeki Terashi, Executive Vice President, Toyota Motor Corporation, told media, “India is an evolving market for electric vehicles. Even we have contemplations introducing electric vehicles for the Indian market. Toyota is strong in Japan but has a little presence in the Indian market,  Whereas Suzuki is very strong in India. Our partnership soon will give a battery-operated electric vehicle to the Indian market. Since we are still working on the intricacies, the timeline of the vehicle unveils, or launch cannot be given.”

Source: electricvehicles.in

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Gas/ Pipelines/ Company News

Manoj Jain selected to head GAIL

Manoj Jain, currently the Director (Business Development) at GAIL (India) Ltd, was on Friday (Oct. 25) selected by government headhunter PESB to helm India’s biggest natural gas company.

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The Public Enterprise Selection Board (PESB) picked Jain for the post of Chairman and Managing Director of GAIL, a maharatna PSU, after interviewing eight short-listed candidates, a notification from the headhunter said. Jain, 57, will have term till August 2022 once his appointment is ratified by the Appointments Committee of the Cabinet (ACC) headed by Prime Minister Narendra Modi. The PESB notice said Jain was selected after interviewing eight shortlisted candidates, including Anjani Kumar Tiwari, Director (Finance), GAIL (India) Ltd and E S Ranganathan, Managing Director, IGL. Others interviewed by PESB on Friday included two IAS officers, Manoj Kumar, Additional Chief Secretary of Tripura, and Jyoti Kalash, Additional Chief Secretary of Nagaland. He will replace Bhuwan Chandra Tripathi, who was in July this year denied a third extension of service that would have taken him to his superannuation age. Director (Projects) A Karnatak is currently officiating as acting-Chairman of GAIL. Jain, who has much of his over three-decade long experience in projects, pipeline integrity management and marketing, was in June last year appointed Director (Business Development) of GAIL. His appointment will be vetted by ACC after anti-corruption agencies clear his name, sources said explaining the procedure. He is a Mechanical Engineering Graduate and MBA in Operations Management. Before being appointed as Director (Business Development), he was responsible for gas marketing activities in his role as Executive Director (Marketing-Gas). ‘Jain also spearheaded the installation and commissioning of over Rs 10,000 crore grassroots petrochemical complex at Lepetkata Assam, as Chief Operating Officer of Brahmaputra Cracker and Polymer Ltd, (BCPL) which has been one of the fastest projects ever implemented in the North East of its size and magnitude,’ according to GAIL’s annual report. PTI ANZ MR

https://in.news.yahoo.com/manoj-jain-selected-head-gail-135918802.html

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Will oil companies’ September quarter numbers fuel investor confidence?

Shares of Reliance Industries Ltd (RIL) have gained nearly 20% since its annual general meeting on 12 August, when chairman and managing director Mukesh Ambani said the company will have zero net debt by 31 March 2021.

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In that backdrop, when RIL announces its September quarter results on Friday, “any signs of decline in capex intensity should increase confidence in our view”, said analysts from HSBC Securities and Capital Markets (India) Pvt. Ltd. That apart, the sequential recovery in refining margins should help RIL’s earnings. For perspective, benchmark Singapore gross refining margins have averaged $6.5 a barrel for the September quarter, up from $3.5 a barrel in the June quarter. “A sharp recovery in refining margins, coupled with lower ethane and LNG prices, and higher petchem volumes, should partly offset weakness in benchmark chemical margins and deliver 7% qoq growth in standalone earnings,” HSBC analysts said in a report on 8 October. Separately, state-run oil marketing companies (OMCs) are expected to report a good set of numbers for the September quarter. OMCs include Bharat Petroleum Corp. Ltd (BPCL), Hindustan Petroleum Corp. Ltd (HPCL) and Indian Oil Corp. Ltd (IOC). Performance of these companies will get a boost from the rebound in refining margins. Further, auto fuel marketing margins have remained resilient. These two factors are likely to set off inventory and forex losses to some extent. Analysts from Kotak Institutional Equities expect BPCL and HPCL to report 20-23% quarter-on-quarter (q-o-q) increase in Ebitda (earnings before interest, tax, depreciation and amortization), despite accounting for ₹1,000-1,100 crore of inventory and forex losses. The broker expects IOC to report 20% q-o-q decline in Ebitda, impacted by the ₹3,300 crore in inventory and forex losses. IOC’s profitability is expected to be relatively weaker than its peers, HPCL and BPCL, primarily owing to higher inventory losses. Meanwhile, crude oil prices have dropped by about 18% in the September quarter from a year ago. This is likely to drag down profits of oil producers such as Oil and Natural Gas Corp. Ltd and Oil India Ltd, as price realization gets adversely affected. In keeping with the optimism in the broader markets and talks of BPCL’s privatization, shares of all these companies have run up after the corporate tax rate cuts. As such, September quarter results are not expected to fuel big jumps in share prices. “The stock prices, in our view, are unlikely to move on earnings but would be news flow dependent,” wrote analysts from JP Morgan India Pvt. Ltd in a report on 7 October. “For the broader state-owned enterprises space, how the government moves on the potential BPCL privatization would be an important driver for stocks. For Reliance, the key events that investors are focused on are the completion of various deleveraging deals,” added the analysts.

https://www.livemint.com/market/mark-to-market/will-oil-companies-september-quarter-numbers-fuel-investor-confidence-11571330172975.html

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ONGC, ExxonMobil tie up for oil exploration in India; plan to bid for OALP

ExxonMobil had signed a pact with Indian Oil Corporation to expand its liquefied natural gas business initiatives in India. Global energy major ExxonMobil and state-run Oil and Natural Gas Corporation (ONGC) have tied up for oil exploration in India.

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The two companies will jointly bid for the upcoming Open Acreage Licensing Policy rounds. The two oil majors signed a memorandum of understanding (MoU) on Tuesday (Oct 15). This will enable them to “undertake joint technical studies and cooperate in frontier areas like deepwater and other Petroleum Exploration Licence (PEL) blocks of ONGC in the East and West coast and open acreages for joint bidding”. “A lot of foreign companies are showing faith in India and its move towards a gas-based economy. This includes big players like Total, Shell, and ExxonMobil,” said Petroleum Minister Dharmendra Pradhan at the CERAWeek in Delhi. The MoU was signed on the sidelines of the CERAWeek in Delhi by ONGC Director (Exploration) R K Srivastava and ExxonMobil Chief Executive Officer-South Asia, William P Davis. The work under the MoU will be carried out in three phases. This will lead to a joint technical study for potential collaboration areas. “We welcome the opportunity to work with ONGC and apply our collective expertise to be an even bigger part of India’s bright energy future,” said Michael Deal, vice-president-Asia Pacific, ExxonMobil. On Monday, ExxonMobil had signed a pact with Indian Oil Corporation to expand its liquefied natural gas business initiatives in India.

https://www.business-standard.com/article/companies/ongc-exxonmobil-tie-up-for-oil-exploration-in-india-plan-to-bid-for-oalp-119101600038_1.html

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North-East gas grid to get Rs 5,500 crore viability gap funding

The government is likely to provide ₹5,500 crore viability gap funding (VGF) to North-East gas grid. The Prime Minister’s Office has agreed to the oil ministry’s proposal of extending 60% budgetary support to the ₹9,200-crore North-East gas grid project, people familiar with

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the matter said, adding that the proposal would soon be sent to the Cabinet. The Modi government wants to turn India into a gas-based economy and is encouraging massive investments in gas production, transportation and import terminals to have increased countrywide access to the fossil fuel. The government plans to raise the share of natural gas in country’s primary energy mix to 15% by 2030 from 6% now. The 1,600-km North-East gas grid will help connect the region to the proposed national grid at Guwahati. Indradhanush Gas Grid (IGGL), a joint venture of Indian Oil, ONGC, GAIL, Oil India and Numaligarh Refinery, plans to lay the North-East gas grid, which is unlikely to be viable without central funding. This project needs support as was extended in 2016 to Gail’s Jagdishpur-Haidia and Bokaro-Dhamra Gas Pipeline project, company executives said. Capital grant of ₹5,176 crore, or 40% of the project cost, for the 2,500 km pipeline project of GAIL, has been given. Lack of state financial support so far has delayed the launch of the North-East gas grid project by almost a year. Indradhanush Gas Grid, set up in August 2018, had hoped to receive the Cabinet’s approval on funding ahead of the general election but the process got delayed. Delay in funding can result in time and cost overruns for the project that connects eight states — Assam, Arunachal Pradesh, Meghalaya, Manipur, Mizoram, Nagaland, Tripura and Sikkim. At present, about 16,800 km of natural gas pipeline is operational and about 14,200 km of pipelines are being developed across the country to increase supply of gas to households and industries. Increased transport and distribution infrastructure and production capability can boost local consumption of natural gas. In just about a year, India has distributed city gas distribution licences for 136 geographical areas covering about half of India’s population. To win licences, the 20-odd state-run and private companies have pledged to build 7200 compressed natural gas (CNG) stations, connect 3.5 crore homes with gas pipelines, and lay 156,000 inch-km of pipeline by March 2029.

https://economictimes.indiatimes.com/industry/energy/oil-gas/north-east-gas-grid-to-get-rs-5500-crore-viability-gap-funding/articleshow/71621266.cms

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CBM production can be boosted by re-auctioning relinquished blocks: GEECL’s Prashant Modi

Coal India can take a cue from ONGC and offer blocks under DSF approach, says GEECL chief. To boost coal bed methane (CBM) production, the Centre may consider re-auctioning relinquished coal mines, said Prashant Modi, Managing Director and

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Chief Executive Officer of Great Eastern Energy Corporation Ltd (GEECL). “I think there are enough blocks which have been relinquished. Of the 33 blocks that were initially offered, only four to six, a handful, would still be operational. These relinquished blocks could be immediately put up for bidding again. The data for these blocks is available too,” Modi told BusinessLine. Commenting on the current policy for CBM and the recent auctions that were conducted, he said, “The policy for Coal Bed Methane is fine. The government tried to auction six blocks for CBM exploration and production but they were not successful. This is because I don’t think they were very prospective. We had also evaluated them, but we did not bid.” Modi also said that Coal India can follow the Discovered Small Field approach and bid out the blocks under the contracts similar to the ones ONGC had for the S-type blocks of ONGC. “These blocks were licensed out and the new operators that are coming in offer investment and royalty. Coal India can do the same for CBM, bid it (the coal mines) out and the operators who come will give the royalty to CIL or the government,” he said. “We will evaluate any new CBM blocks if they come for bids,” he added. On status of GEECL’s existing projects, Modi said, “We need to drill some 150 more wells in our existing fields and by next year, hopefully we will start the initial work on our shale programme. The initial expenditure in shale will be lesser as only exploratory wells will be drilled. The total outlay for the programme is estimated at $2 billion (₹14,000-₹15,000 crore) over 10 years. We will be spending another ₹1,500 crore in the CBM programme to drill the remaining wells.” GEECL currently has operations in the Raniganj (South) Block in West Bengal. The company, in its contracted area, aims to drill a total of 300 wells, of which 156 have been drilled so far. Commenting on the demand for natural gas in the country, he said, “Gas demand is expected to grow in the country. LNG imports are rising year-on-year and according to official estimates, the demand has been growing by around 5 per cent a year. I think it will increase further, in line with more people moving into urban areas.”

https://www.thehindubusinessline.com/economy/cbm-production-can-be-boosted-by-re-auctioning-relinquished-blocks-geecls-prashant-modi/article29777561.ece

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Policy Matters/ Gas Pricing/Others

Punjab cuts natural gas VAT from 14.3% to 3%

Chandigarh: In an attempt to boost revenue generation and reduce environmental pollution, the Punjab government on Friday notified reduction in VAT on natural gas from 14.3% to 3%.With this, Punjab has become the state with the lowest VAT on natural gas in the northern region.

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The notification will incentivise the industrial units in the state to switch over to eco-friendly natural gas, thus reducing industrial pollution in Punjab. Moreover, with VAT cut, the sale of natural gas in Punjab is likely to increase substantially, thereby yielding increased revenue, stated an official spokesperson.
At present, the rate of VAT on natural gas in Punjab is 13% + 10% surcharge i.e. 14.30%. Its major consumer is National Fertilisers Limited (NFL), which uses the gas at its plants in Bathinda and Nangal. This decision will also encourage many industrial units in Gobindgarh and Ludhiana to replace conventional fuel.NFL is purchasing natural gas worth Rs 300 crore per month from Gujarat, on which CST of Rs 45 crore per month at the rate of 15% is being paid to that state. With the cut in VAT, the will start billing of natural gas to NFL from Punjab, which can lead to increase in PVAT collection. Before March 2015, VAT rate on natural gas was 5.5.%+10% surcharge i.e. 6.05%. From then onwards, the VAT was increased to 14.3%. Due to this, NFL started interstate billing of natural gas, reducing the tax collection on the gas. The VAT collection on natural gas from 2014-15 to 2018-19 came down considerably.

https://timesofindia.indiatimes.com/city/chandigarh/punjab-cuts-natural-gas-vat-from-14-3-to-3/articleshowprint/71768461.cms

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Welcome decision on oil retailing

It is welcome that the Centre has liberalised and opened up the market for transport fuels to independent retailers, albeit after years of delay.

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As we have often reiterated, the move would shore up efficiency gains in India’s large oil economy, boost service quality and bring about heightened competition in oil retailing, reining in prices, eliminating the padded costs in transportation and storage that are passed on to consumers in the cosy oligopoly in oil marketing today. It would lead to much-needed integration of oil into India’s large retail industry. Now that we are among the top three importers of oil globally, it makes no sense to continue to ringfence the retailing of automotive fuels exclusively for oil companies. It can well come in the way of efficiency in logistics and supply of petroproducts and encourage cost padding. In the mature oil markets, independent retailers like supermarket chains have long leveraged convenience and branding to account for about half the offtake of petro-products. The way forward, surely, is to mandate clear-cut guidelines for reasonable fee-based sharing of infrastructure for oil storage, supply and distribution, complete with independent regulatory oversight of the Petroleum and Natural Gas Regulatory Board (PNGRB). In 1993, the parallel marketing of liquefied petroleum gas (LPG) fizzled out for lack of supportive policies for infrastructure sharing and market entry. History must not repeat itself. It is welcome that the Centre has liberalised and opened up the market for transport fuels to independent retailers, albeit after years of delay. As we have often reiterated, the move would shore up efficiency gains in India’s large oil economy, boost service quality and bring about heightened competition in oil retailing, reining in prices, eliminating the padded costs in transportation and storage that are passed on to consumers in the cosy oligopoly in oil marketing today.

https://economictimes.indiatimes.com/blogs/et-editorials/welcome-decision-on-oil-retailing/

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SBI seeks government help to salvage Rs 1 lakh cr gas plants

The country’s largest lender, State Bank of India, has sought immediate government intervention to salvage gas-based power plants with total capacity of nearly 25,000 megawatts and

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worth about Rs 1 lakh crore from becoming non-performing assets. In a letter to the finance ministrySBI has sought a long-term policy intervention to revive gas-based plants, people in the know said. It has asked for financial support from collections of coal energy through the national clean energy and environment fund. It has sought also a ‘must-run’ status to gas-power stations, similar to renewable energy plants, and reimbursement of fixed costs from the clean-energy fund to power distribution companies that enter into long-term power purchase contracts with these gas-based facilities. The bank has also sought bringing natural gas under the ambit of goods and services tax. It said despite the full support from lenders to the projects, those were still in stress due to lack of locally produced fuel.

The power ministry is working on a scheme proposing to run the gas-based power plants on imported LNG, to be made affordable through haircuts by central and state governments, power companies and gas transporters. The proposed revival scheme is an extension of the previous rounds of subsidised gas auction schemes to power plants. However, this time, the ministry plans to aggregate power from these plants through reverse online auction and do away with the subsidy component. A gas aggregator is likely to be assigned and the subsidy component will arise only if the price of imported fuel increases. Giving power plants an option to sell power on power bourses is also being explored. The proposed haircuts include waiver of state and central taxes on imported LNG, waiver of GST on re-gasification and transportation of the fuel, reduction of pipeline tariff charges and marketing margin by state-run gas transporter Gail. Electricity transmission charges for stranded gas-based projects are also proposed to be sacrificed. Power companies will not make any return on equity. The government had launched the first e-regasified liquid natural gas (e-RLNG) scheme in March 2015 for two years. The scheme was discontinued after two bidding rounds where the power ministry received aggressive bids from companies. Power companies have been demanding the government restart the scheme as about 8,000 mw capacity is completely stranded while the rest is stressed.

Source: ETEnergyworld

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India’s fuel demand drops in September amidst slowdown

India’s fuel demand dropped in September amidst the domestic economy battling a severe demand slowdown. According to data from the Petroleum Planning and Analysis Cell (PPAC), the consumption of petroleum products last month fell to 16.01 MMT from 16.06 MMT in September last year.

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The fall was primarily on account of transportation fuel such as diesel and the bitumen used in road construction. While diesel demand fell by 3.2% to 5.8 mt in September, bitumen demand fell by 7.29% to 343,000 tonnes. Asia’s third-largest economy grew at its slowest pace in six years in the June quarter at 5%. The International Monetary fund (IMF) slashed its economic growth forecast for India to 6.1% for the current fiscal from its July projection of 7%, citing weaker than expected outlook for domestic demand. IMF also lowered India’s FY21 GDP growth forecast by 20 bps to 7.2%. However, there was a rise in domestic cooking gas and petrol consumption which grew by 5.97% and 6.27% to 2.18 mt and 2.37 mt respectively last month as compared to the corresponding period last year. This comes in the backdrop of 14 September drone attacks on Saudi Arabian Oil Company or Saudi Aramco’s facilities that caused the biggest ever-disruption in global crude oil supplies. India spent $111.9 billion on crude oil imports of 207.3 MMT in 2018-19. The cost of the Indian basket of crude, which averaged $47.56 and $56.43 per barrel in FY17 and FY18, respectively, was $59.35 in August 2019, according to data from the PPAC. The average price was $59.74 a barrel on 15 October. The Indian basket represents the average of Oman, Dubai and Brent crude.

Rising trade tensions have unsettled the slowing world economy. The World Bank on Sunday slashed its economic growth forecast for India to 6%, citing a broad-based and severe cyclical slowdown. Last week, Moody’s Investors Service lowered its 2019-20 growth forecast for India to 5.8% from 6.2% earlier, saying the economy was experiencing a pronounced slowdown partly due to long-lasting factors.

https://www.livemint.com/industry/energy/india-s-fuel-demand-drops-in-september-amidst-slowdown-11571238863252.html[Edited]

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LNG Development and Shipping

Tellurian to sell LNG at a lower rate of $6 to India

US-based Tellurian Inc, which signed an initial agreement to sell gas to Petronet LNG in the presence of Prime Minister Narendra Modi, will deliver LNG to India at a price of $6 per unit, a top executive and member of its founding family said, signalling a much lower price than the ceiling for output from difficult fields in India.

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The current gas price in India is $3.23 per MMBtu but the ceiling for gas from difficult fields is $8.43 per unit. “We can produce gas in Haynesville (Louisiana) at $2/MMBtu and it will land in India at around $6/MMBtu or less,” Tarek Souki, senior vice president for LNG, told ET. French LNG supplier Total, which is buying equity in Adani Gas, has also invested in Tellurian, giving the energy major a stake in a major supplier and a rapidly growing customer base of natural gas in India. Tellurian is developing a portfolio of natural gas production, LNG trading, and infrastructure that includes an LNG export facility and an associated pipeline. It recently signed an MoU with India’s Petronet LNG for sale of 5 MMTPA of LNG. The companies aim to finalise the contract by March after due diligence. Petronet’s MoU with Tellurian also envisages an 18% stake in the Driftwood project for a reported $2.5 billion. Petronet’s shares fell sharply after the announcement, while Tellurian’s shares soared last month. Souki said LNG landing in India below $6 from a project that has a life of 40 years was a strong value proposition. “Petronet will be our partner. So, I don’t know what else we can do to de-risk some of the issues that Indian markets have with price volatility,” Souki said. He said his company’s LNG supplies would be based on cost of production and would not be volatile like other suppliers who link the price of gas to international benchmarks. “The value proposition in the US for bringing LNG anywhere around the world is going to be the most competitive.” India’s biggest LNG supplier is Qatar, which has been shipping the super-cooled fuel to India for many years. Souki said his company’s cargoes will land at a more competitive and stable price despite the longer distance. “In the Qatar contract, you are exposed to Brent volatility in addition to the JKM (Japan/Korea Marker) market prices,” he said. Asked how Tellurium would supply cheaper gas, Souki said shipping was only a part of the total cost of LNG and the landed price would still be competitive. Further, shipping costs need not be very high, he said. “You can optimise some shipping. You can swap cargoes with different parts of the market.” Driftwood is among a dozen planned US LNG export projects, which analysts said will produce 150 MMTPA of LNG, making the US the world’s largest exporter of natural gas.

https://economictimes.indiatimes.com/industry/energy/oil-gas/tellurian-to-sell-lng-at-a-lower-rate-of-6-to-india/articleshow/71606866.cms

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GAIL India offers two LNG cargoes and seeks one for India delivery

GAIL (India) has issued a swap tender offering two cargoes of liquefied natural gas (LNG) for loading in the United States and seeking one for delivery to India, two industry sources said on Tuesday (Oct 15). 

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The offer is for two cargoes loading from the Cove Point plant on Nov. 10-12 and Dec. 16-18. The sought cargo is for delivery to either the Dahej or Dabhol terminal in India on Nov. 20-23. The tender closes on Oct. 16, with validity expiring on the same day.

Source: Reuters/Indian Oil & Gas

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Dispute hit Mundra LNG terminal to be commissioned by Dec: Report

More than a year since its inauguration, Gujarat government-backed LNG project at Mundra, built at an estimated cost of Rs 5,500 crore, may finally get commissioned by December, according to sources.

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A commercial dispute between the partners Gujarat State Petroleum Corp (GSPC) and Adani Group had stalled commissioning of the 5 million tonnes a year liquefied natural gas (LNG) import facility, they said. The terminal was mechanically completed in mid-2018 and was inaugurated by Prime Minister Narendra Modi. However, the commissioning has been stalled due to delay in finalisation of certain lease and sub-commission agreements between the promoters and the Gujarat government. A commissioning cargo from the US had arrived at Mundra LNG terminal last November, but it had to be diverted to Hazira after it was not allowed to discharge at Mundra, sources said. Disputes between promoters include GSPC’s refusal to compensate Adani for money spent on port development, including dredging costs of Rs 1,200 crore, yearly fees payable to the Gujarat Maritime Board and a yearly Rs 65-crore lease for land used by the LNG terminal within Adani-controlled Mundra Port. GSPL LNG, a GSPC group firm that is implementing the project in partnership with Adani Group, will look at inducting a strategic partner like Indian Oil Corp (IOC) once the terminal is fully operational, they said. The terminal will operate at 1.5 million tonnes a year capacity for the first one-and-a-half years before scaling up to full capacity. The Mundra terminal, whose capacity will be expandable to 10 million tonnes per annum in the future, is designed to have a berth for receiving LNG tankers of sizes 75,000 cubic metres to 2,60,000 cubic metres, two LNG storage tanks of capacity 1,60,000 cubic metres each, facilities for regasification and gas evacuation. The R-LNG from the Mundra terminal shall be evacuated by the 67 km Mundra-Anjar Natural Gas transmission pipeline being developed by Gujarat State Petronet Limited (GSPL). The Mundra-Anjar pipeline further connects to the existing Gujarat State Petronet Limited (GSPL) Gas Grid.

https://www.hellenicshippingnews.com/dispute-hit-mundra-lng-terminal-to-be-commissioned-by-dec-report-2/

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Fuel imports from US jump

Energy trade with the US is likely to jump over 40 per cent to $10 billion in 2019-20 as India seeks to move away from its traditional suppliers in West Asia.

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The diversification also helped India tide itself over the price rise fears in the aftermath of the attacks on a Saudi Aramco facility. “In 2018-19, the total import of crude oil, LNG and cooking coal stood at $7.2 billion. In current financial year 2019-20, this may go up to $10 billion,” oil minister Dharmendra Pradhan said at the US-India Strategic Partnership Forum’s Annual Leadership Summit here. Geopolitical uncertainties, rising US oil and gas production and India’s energy appetite have created both the need and the opportunity for the two nations to lift bilateral energy ties to a new level. In October 2017, India began importing crude oil from the US and in March 2018 it got the first shipment of liquefied natural gas (LNG) from there. In the last one year, the import of US crude oil has doubled and New Delhi is now closing on the biggest long-term LNG import deal. The minister said supplies from the US had helped control a likely price rise in India after shortage concerns gripped the market following the attacks on Saudi Aramco’s facility. 

https://www.telegraphindia.com/business/fuel-imports-from-us-jump/cid/1713331

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INTERNATIONAL NEWS

Natural Gas / Transnational Pipelines/ Others

Russia pipe gas supplies may further slow China’s LNG import growth

The startup of the Power of Siberia Russia-China natural gas pipeline in December is expected to weigh on the mid-term LNG demand growth potential of China, the world’s second largest importer of the fuel,

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adding another bearish factor to an already oversupplied Asian market. The immediate impact on the region’s spot fundamentals and prices for this coming winter will likely be limited, however, given the relatively small volume that will be injected into the pipeline network over the first year. The construction of the northern section of the China-Russia gas pipeline eastern route was completed Wednesday (Oct 16), and PetroChina is expecting supplies into northern China to commence December 1, the state-owned major said Thursday. “The growth of China’s LNG imports is expected to be affected,” said a source with one of China’s major city gas suppliers, adding that they would consider lowering LNG imports into northern China once Russian pipeline gas is made available. Two Chinese end-users said they were contemplating reselling some of their winter LNG cargoes into the spot market if the pipeline starts up as planned. “You might see us in the market this winter, perhaps not to buy, but to sell,” said a Chinese LNG importer. The Power of Siberia is one of the most anticipated energy projects in Asia, with significant implications for China’s natural gas supply, LNG import demand in the region and Moscow’s energy strategy in Asia. The project will further enhance China’s supply security, and follows Beijing’s decision to merge gas pipelines of the three national oil companies to boost connectivity and ease infrastructure constraints.

Although pipeline imports from the Power of Siberia will certainly help slow Chinese LNG import growth in the medium term, they are unlikely to have a significant impact on Asian LNG spot markets this winter, according to S&P Global Platts Analytics. The initial flows will be relatively small and will only reach a select area in northern China, said Jeff Moore, Platts Asia LNG Analytics manager. “Mild weather, slowing activity in energy-intensive sectors or a lack of new regasification capacity would be more likely to negatively impact Chinese LNG imports this winter,” Moore said. Russian pipeline gas supplies in the first year of operations are forecast at 5 BCM/year, which would only account for around 1.6% of China’s total gas supply estimates of 316 BCM in 2019, according to Platts Analytics and China’s National Development and Reform Commission. Once it reaches full capacity of 38 BCM/year in 2022-23, it would account for around 9.5% of China’s total gas supply estimates of 402 BCM for 2022.

With a length of 1,067 km, the northern section will connect Russian gas supplies with customers in northeastern China and Beijing-Tianjin-Hebei regions, helping improve supply optionality and energy security in the country’s biggest winter demand center. “We have many city gas supply projects in the northeast, so the startup of the China-Russia gas pipeline is expected to ease our supply pressure in the winter peak season,” the source with the city gas supplier said. The full Russia-China gas pipeline is expected to be completed by 2022-23 and will have a length of 3,371 km in China, which will be divided into three sections — north, central and south. It will terminate in Shanghai, passing through nine provinces and autonomous regions, connecting with the Northeast pipeline network, Shaanxi-Beijing pipeline network and West-East pipeline network, according to PetroChina. PetroChina’s parent company China National Petroleum Corp signed a 30-year SPA with Russia’s Gazprom in 2014 to purchase gas from the Power of Siberia pipeline. The total gas supply is estimated to exceed 1 trillion cu m, with annual supplies expected to reach 10 Bcm/year by 2021 and 32 Bcm/year by 2022-23.

https://www.hellenicshippingnews.com/russia-pipe-gas-supplies-may-further-slow-chinas-lng-import-growth/

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Australia’s $11 Billion Gas Project is ahead of schedule

Australia’s largest independent gas producer, Woodside, aims to take the final investment decision (FID) on the US$11-billion Scarborough project early next year, sooner than its previous timetable at some point in the first half of 2020,

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Woodside’s CFO Sherry Duhe told Reuters in an interview on Thursday (Oct 17). Woodside proposes to develop the Scarborough gas resource and process it through a second train at the liquefied natural gas (LNG) facility Pluto. “Tolling agreement negotiations are actively progressing to finalise the terms for processing Scarborough gas through Pluto Train 2,” Woodside said in its Q3 results release today. Woodside has to agree on the price for processing the gas with its partner BHP, so that it can give the green light to the project early next year, Duhe told Reuters. Woodside has a larger project in the works, the US$20.5-billion Browse project, but talks on the development are more complicated there because of the fact that there are many shareholders in the gas resource and the LNG plant. Woodside is now targeting FID for the project for the first half of 2021, later than a previous target FID deadline by the end of 2020.  Despite the shifting of the timetables of the two LNG projects, Woodside believes that these new development plans are “perfectly timed” to allow it to seize the opportunity to fill in a global LNG supply gap expected after 2022, Duhe told Reuters. Meanwhile, already operational LNG facilities in Australia are ramping up production and exports and reach full capacity, which will result in Australia consistently exporting more LNG than Qatar within the next year, the U.S. Energy Information Administration (EIA) says. Australia will be the next top LNG exporter, but it will likely retain that title for just a little while, as both Qatar and the United States plan major expansions in their LNG export capacities over the next five years.

https://oilprice.com/Latest-Energy-News/World-News/Australias-11-Billion-Gas-Project-Is-Ahead-Of-Schedule.html

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ONGC Videsh makes new discoveries in Colombia and Brazil

ONGC Videsh Limited(OVL), the overseas investment arm of ONGC, has recorded discoveries of oil in its onshore exploration block CPO-5, Colombia in the Llanos basin and major gas in the deep offshore exploration block BM-SEAL-4, Brazil in the Sergipe Alagoas Basin.

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Colombia

In a statement issued here OVL said, Well Sol-1, in the block CPO-5 encountered the oil bearing sands of 8 meters at a depth of 2852m. Oil discovery in Sol-1 confirms the extent of oil pay further south of the block. ONGC Videsh had earlier discovered commercial oil in the same pay in wells Mariposa-1 and Indico-1 in 2017 and 2018, respectively. Both the wells are under production now. ONGC Videsh, as Operator, holds 70% per cent participating interest (PI) in CPO-5 block. The balance 30 per cent PI is owned by Petrodorado South America S.A., Sucursal (PDSA), Colombia.

Brazil

Petrobras as operator of BM-SEAL-4 consortium with ONGC Videsh, completed drilling of the well Moita Bonita-2 in deep offshore Brazil located in the Moita Bonita Area (block BM-SEAL-4) at a water depth of 2629m and encountered gas bearing sand of total thickness of 39m at the depth of 5227m and oil bearing sand of total thickness of 24m at deeper depths. Drill Stem Test (DST) was performed in the gas carrier interval 5252m to 5291m, and the result showed good production from the reservoir.

Petrobras is the Operator of the consortium (75 per cent PI) and partners ONGC Videsh (25 per cent PI). The consortium plan to continue the operational activities to evaluate the discovery to ascertain its commerciality. ONGC Videsh has a significant presence in oil & gas sector of Brazil and Colombia. It holds stakes in seven exploratory blocks. In addition, ONGC Videsh is the joint owner of the oil producing company Mansarovar Energy Colombia Ltd (MECL) along with its partners Sinopec of China. In Brazil, ONGC Videsh holds 27 per cent PI in the offshore BC-10 block.

https://www.thehindubusinessline.com/markets/commodities/ongc-videsh-makes-new-discoveries-in-colombia-and-brazil/article29697808.ece

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Global LNG Development

Global LNG-Asian spot prices jump to 8-month high ahead of winter

Asian spot prices for LNG rose to an eight-month high this week as demand for cargoes emerged ahead of winter. Spot prices for December delivery to Northeast Asia LNG-AS are estimated to be

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about $6.80 per MMBtu, up 35 cents from last week, said several sources who are market participants. Prices for November delivery are estimated to be about $5.90 per MMBtu, up 10 cents from the previous week, they added. Commodities trader Vitol bought a cargo for delivery over Dec. 13 to 17 from Gunvor during the S&P Global Platts pricing process on Thursday (Oct 17), at $7.10 per MMBtu, according to data from Platts. Brunei LNG likely sold an early December loading cargo to Shell at $6.50 to $6.70 per MMBtu, industry sources said, although this could not immediately be confirmed. Maintenance in Australia and an issue at a U.S. LNG plant at a time when South Korean buyers are looking for spot cargoes ahead of winter helped boost prices, trade sources said. High freight rates are also supporting cargo prices, they added. Korea Gas Corp (KOGAS) is seeking LNG cargoes for December and January delivery after making a purchase for delivery in November, trade sources said. China’s Guangdong LNG is also importing cargoes for winter, a second source said. On the supply side, train 1 at the Chevron Corp-operated Gorgon LNG export plant is undergoing maintenance, a company spokesman said earlier this week. The work is expected to last until Nov. 29, which is expected to curb exports from Australia. In the United States, exports from the Corpus Christi export terminal in Texas may have reduced due to an unidentified issue, but they are expected to resume soon, industry sources said. “Feedgas has increased and flaring is indicating that it should be online soon,” one of the sources said. Still, supply is adequate and is likely to cap gains in prices, traders added. Several LNG tankers laden with LNG are currently floating globally, with traders anticipating winter demand to pick up. Nigeria LNG has offered a cargo for early November loading in a tender that is expected to be awarded on Friday, while Russia’s Novatek likely sold four Yamal cargoes for delivery over December to March on a delivered ex-ship basis, an industry source said.

Source: LNG Global/Reuters

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End of winter gas buying raises alarm LNG rally will reverse

The rally in Asian liquefied natural gas prices may soon run out of steam as the bulk of winter purchasing is complete, leaving the market awash with supply. Benchmark LNG

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Japan/Korea Marker futures have jumped about 50% since mid-September to the highest in eight months as a boom in vessel rates and unplanned outages coincided with a flurry of buying from the biggest consumers including Korea Gas Corp. in preparation for winter. But the uptick probably won’t last because buyers are mostly done stocking up for the heating season, according to traders surveyed by Bloomberg, and as output from new projects in Australia, Russia and the U.S. continues to climb. China won’t be much of a help either, with the closure of its Rudong LNG terminal until at least November cutting the amount of cargoes that can be imported into the nation. Forecasts for warmer-than-normal weather over the next three months in Japan and South Korea may also limit gas consumption and reduce the need for spot cargo purchases. “Demand in Asia is still weak,” said Fauziah Marzuki, an analyst at BloombergNEF. “Futures are trading for December delivery so the market is likely just reflecting a bit of price optimism for the winter period.” Front-month futures were at $6.925 per MMBtu Friday (Oct 18) after bottoming at a 2016-low of $4.275 in late-July. The December prices extended declines Monday (Oct 21) to $6.855, and the premium of both the January and February contracts narrowed. The line-up of bearish forecasters include Goldman Sachs Group Inc., which said last week the global LNG market will remain oversupplied for the next 12 months and reiterated its outlook for winter JKM at $6.10 per MMBtu.

In particular, the bank said a spike in freight rates as a result of U.S. sanctions on units of China’s COSCO Shipping Corp. will prompt traders to discharge cargoes of LNG held in floating storage in order to lease out the tankers. This could further worsen the supply glut. Despite recent increases, LNG prices are still trading below the five-year average for this time of year.

Source: LNG Global

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Saudi Aramco and Acwa Power to develop $3bn LNG terminal and power plant in Bangladesh

Saudi Aramco and Saudi utilities developer Acwa Power have signed a memorandum of understanding (MoU) with the Bangladesh government to develop a $3bn liquefied natural gas (LNG) terminal and power plant in the South Asian country.

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Acwa Power’s chairman Mohammad Abunayyan was reported as saying the $3bn direct investment would be made by 2020. The project will be Acwa Power’s largest gas-to-power project and the first partnership with Saudi Aramco for such a scheme. The LNG terminal will be developed in either the Moheshkhali area of Cox’s Bazar or at Payra port. The power plant is planned to have a generation capacity of 3,600MW. Acwa Power’s CEO and president Paddy Padmanathan recently told MEED that the developer was targeting the growing global demand for LNG and gas-to-power as an additional area of growth. “I can see us getting involved in gas, in LNG,” said the CEO. “We are looking at some opportunities for gas-to-power that will require us to not only look at the power plant but the infrastructure bringing the LNG to a port, to either floating or fixed LNG terminals or through pipelines.”

https://www.hellenicshippingnews.com/saudi-aramco-and-acwa-power-to-develop-3bn-lng-terminal-and-power-plant-in-bangladesh/

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Brookfield to take 25% interest in Cove Point for over $2 billion

Dominion Energy today announced it will transfer a 25% non-controlling equity interest in the Cove Point liquefied natural gas facility in Maryland to Brookefield Asset Management for just over $2 Billion in cash.

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Thomas F. Farrell, II, Chairman, President and CEO said, “The agreement highlights the compelling intrinsic value of Cove Point and allows us to efficiently redeploy capital toward our robust regulated growth capital programs. We are very excited to have a highly respected infrastructure investor such as Brookfield as our partner in this world-class facility.” Dominion Energy noted the deal is part of its plan to establish a permanent capital structure for Cove Point.  The Cove Point LNG import, export and storage facility is located on the western shore of the Chesapeake Bay in Lusby, Maryland. It includes a 136-mile pipeline that interconnects the facility with the interstate pipeline system. In 2018 the company completed a $4.1 billion expansion to enable natural gas exports. The deal has an implied enterprise value of $8.22B, excluding working capital, and proceeds will be used to reduce annual common equity financing according to a Dominion Energy statement.

Source: LNG Global

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LNG export should be a distinct priority for Iran

Expanding gas export via pipelines is not on the agenda for now but export of liquefied natural gas should be a distinct priority, a former secretary general of the Gas Exporting Countries Forum said.

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“Extending gas pipelines from the southern port of Asalouyeh in the Persian Gulf in Bushehr Province to neighboring states has always been marred by political issues (sanctions and wars) and, in optimistic terms, may work only for a short term,” Mohammad Hossein Adeli was quoted as saying by ILNA. Instead LNG can be exported easier and more flexibly as it has bigger international markets, he said. “If we had LNG, we could export it not only to Pakistan but also to Europe,” he said, adding that unlike piped gas the future for LNG export is promising.

https://financialtribune.com/articles/energy/100364/lng-export-should-be-a-distinct-priority-for-iran

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Turkey second-largest LNG market in Europe

The development of Turkey’s natural gas infrastructure, including multinational pipeline projects, improvement of facilities for liquefied natural gas (LNG) and the diversification of suppliers,

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have led to a profound enlargement of the country’s gas market. As a result, Turkey has become Europe’s second-largest LNG market. Reducing its dependence on pipeline gas, Turkey imported 11.3 BCM of LNG last year, accounting for 22.5% of the total gas purchases totaling 50.3 BCM. From January to July this year, the country’s LNG imports reached a record high at 7.7 BCM, according to the Energy Market Regulatory Authority (EMRA). Turkey Natural Gas Distributors Association (GAZBİR) Chairman Yaşar Arslan said the significant development of the Turkish market was a huge success. “As a result of the increasing share of the LNG in the domestic gas demand, Turkey has become the seventh-largest LNG market in the world and is ranked second in Europe,” he said in his address at the 8th International Natural Gas Congress and Fair held in Istanbul yesterday. Speaking of Turkey’s role in the energy sector and its integration with the global markets, Arslan stressed the liberalization steps that have been taken since the early 2000s. “The establishment of the Energy Market Regulatory Authority [in 2001] has enabled the empowerment of the energy industry with new investments,” he said and continued, “Turkey ranks second in the world with its ever-growing energy demand and has ensured a well-operating market.” He added that the model Turkey has implemented in the natural gas distribution has become an example for other countries. About the significant development of the natural gas distribution in Turkey, the GAZBİR chairman said the sector has maintained its upward trend with a gas 140,000 kilometer-long gas network of 16 million subscribers. While distributors provide gas for 66 million citizens, Turkey’s annual gas consumption is calculated above 50 BCM, he noted. “Turkey is the 18th-largest gas market in the world and fourth in Europe,” Arslan said. As the data suggests, he remarked, Turkey has reached nearly all of the targets set 32 years ago. “Our achievements compel us to set new goals. Out next aim is to become a gas trading hub,” he said. In September 2018, the Energy Stock Exchange (EPİAŞ) launched a gas stock exchange that is currently used by an increasing number of natural gas traders as well as Turkey’s Petroleum Pipeline Corporation Company (BOTAŞ) to supply natural gas to balance the transmission system. This evolving platform also offers a daily reference price for the gas market. The trade volume for the spot natural gas market EPİAŞ hit a record high on Aug. 20, generating approximately TL 29 million, marking a volume rise of 854% over the previous day when 2.2 million cubic meters of natural gas was traded. International Energy Forum General Secretary Dr. Sun Xiansheng also in his address stressed that Turkey has reinforced its position in the global energy market with projects such as Trans-Anatolian Natural Gas Pipeline Project (TANAP). Inaugurated in June 2018, the 16 BCM capacity pipeline will deliver 6 BCM of gas to Turkey per year, while the remaining 10 BCM meters is destined for European markets via the Trans Adriatic Pipeline (TAP). The 4.5 billion euro ($5 billion) TAP will transverse Greece, Albania and the Adriatic Sea to reach Italy.

Currently, Turkey operates four LNG terminals – two of which are floating storage and regasification units (FSRU) and the remaining two are land facilities. The LNG terminal in Marmara Ereğlisi, located 120 kilometers west of Istanbul in the northern Marmara Sea, currently operates with a capacity of 5.9 million tons. The terminal is capable of sending out 8 billion cubic meters per year. Another land terminal is located in the industrial Aliağa district of the Aegean province of İzmir with a capacity of 4.4 million tons of LNG. The İzmir terminal operated by Egegaz has a regasification and compression capacity for 6 billion cubic meters per year. Turkey’s first floating storage unit (FSRU) began operating in December 2016 in Aliağa and is capable of supplying 5.3 BCM gas per year, regasifying more than 12% of Turkey’s annual gas demand. The second FSRU operated by BOTAŞ was commissioned in January 2018 in the Dörtyol district of southeastern Hatay province on the Mediterranean coast. It has a storage capacity of 263,000 cubic meters – the largest in the world. The unit has around 20 MMSCMD output capacity. The third FSRU is also planned to be located in the Saros Gulf in the Aegean.

https://www.dailysabah.com/energy/2019/10/17/turkey-second-largest-lng-market-in-europe

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Pakistan LNG cancels huge 10-year LNG tender -sources

State-owned Pakistan LNG has cancelled a tender to buy liquefied natural gas over a 10-year period and may turn to the spot market instead, two sources familiar with the matter told Reuters on Tuesday (Oct. 15).

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The company issued the tender in early June to import 240 LNG cargoes of 140,000 cubic metres each for delivery over 10 years for the country’s second LNG terminal. But it has decided to cancel the tender due to inadequate demand for the super-chilled fuel, one of the sources said. “(The company) has decided not to proceed with technical evaluation and opening of commercial offers as there is no demand against this tender,” the source added, declining to be identified. “So for now, (the company) has decided to stop the process of long-term commitment until it receives long-term demand for LNG,” the source said. Pakistan is expected to be a significant growth driver in global LNG demand with the cabinet recently approving five consortiums to progress with their LNG terminal plans. Pakistan LNG’s cancelled tender had been keenly watched in the industry. The company was expected to publish the lowest prices offered by bidders, providing a valuable insight into the opaque LNG market, which is characterised by closed bilateral trades, private long-term supply agreements and an over-the-counter spot market. Italy’s Eni, China’s PetroChina, Azeri state oil company SOCAR and commodities trader Trafigura had placed offers into the tender, sources had told Reuters.

Source: LNG Global

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China’s CNOOC to trial LNG delivery by rail -executive

China National Offshore Oil Corp (CNOOC) is working with a railway company to trial delivery of liquefied natural gas (LNG) by rail, a senior company executive said on Tuesday (Oct. 15).

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The two-year trial will involve sending LNG to central China from four terminals – Guangxi, Zhuhai, Zhejiang and Tianjin, Wang Si, head of the company’s LNG ISO Tank Container Intermodal Transport Project, told a conference. China is the world’s second largest importer of LNG but lacks natural gas pipeline and storage infrastructure. While trucks carrying ISO tanks can serve distances of 500 kilometres, trains will serve longer distances of over 1,000 km, Wang said.

Each ISO tank can carry 17-18 tonnes of LNG and the trains will be able to take 50 such tanks, he said. CNOOC, China’s largest LNG importer, aims to transport 1 MMTPA of LNG using ISO tank containers over 2019-2021, increasing this to 2 MMTPA by 2022-2023, he added. The trial is pending approval from China Rail Company, he said. CNOOC also plans to use ISO tanks for LNG storage as they are about 30% cheaper than current storage facilities and save space, Wang said.

Source: LNG Global

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Kuwait to lead LNG regasification capacity additions by 2023

The company is expected to add 717 billion cubic feet (bcf) of regasification capacity through five terminals by 2023. Kuwait Petroleum Corpoartion is expected to account for 8% capacity share in the global liquefied natural gas (LNG)

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regasification industry from new-build (planned and announced) projects between 2019 and 2023, according to GlobalData, a leading data and analytics company. The company’s report, ‘H2 2019 Global Capacity and Capital Expenditure Outlook for LNG Regasification Terminals – India Continues to Dominate Global Regasification Capacity Additions and Capex Spending’, reveals that Kuwait Petroleum Corp has the highest LNG regasification capacity additions globally among companies with 1.2 trillion cubic feet (tcf) by 2023. Adithya Rekha, the Oil and Gas Analyst at GlobalData, pointed out that the entire regasification capacity additions of KPC comes from the proposed Al-Zour LNG regasification terminal in Kuwait. “This planned offshore terminal is expected to start operations in 2020 with a capacity of 1.2 tcf,” she noted. After Kuwait Petroleum, India’s Hiranandani Group (H-Energy) is the second highest company globally in terms of regasification capacity additions by 2023. The company is expected to add 717 billion cubic feet (bcf) of regasification capacity through five terminals by 2023. Of this total capacity, 449 bcf is expected to come from three planned projects while 268 bcf comes from two early-stage announced projects, stated Rekha. “Mitsubishi Corp closely follows Hiranandani Group with the third highest global regasification capacity additions of 709 bcf through three planned and announced regasification terminals by 2023,” she added.

https://www.zawya.com/mena/en/business/story/Kuwait_to_lead_LNG_regasification_capacity_additions_by_2023-SNG_157527064/

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Natural Gas/LNG Utilization

Another Finnish transport company chooses NGVs to meet climate goals

The EU’s ambitious emissions targets to curb climate change create a challenge for logistics companies to reduce transport emissions. The emission targets require heavy-duty transport to cut carbon dioxide emissions by 15% by 2025 compared to 2019.

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In this regard, NCS Finland Oy, a transport and logistics company, and its subcontractor Pinecape Oy brought into use a Volvo FH LNG tractor unit in July. NCS Finland specializes in comprehensive road transports across Europe and carries more than 30,000 consignments each year. “LNG was the natural choice for us since it meets existing and future emissions targets,” said Jarmo Halonen, COO, NCS Finland. “Our customers are increasingly interested in cutting emissions in transport and require more environmentally friendly alternatives. We want to impact the environment through our own operations and the easiest way to do this is to change the transport fleet.”

http://www.ngvjournal.com/s1-news/c3-vehicles/finnish-transport-company-adds-natural-gas-volvo-truck-to-meet-climate-targets/[Edited]

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Republic Services will surpass 3,100 alternative fuel vehicles by year-end

Republic Services, Inc., an industry leader in recycling in the UuSA, announced the continued expansion of its natural gas-powered fleet as it makes progress toward its greenhouse gas (GHG) reduction goals.

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The company will operate an additional 156 CNG solid waste collection trucks serving customers throughout the country by the end of 2019, bringing the total number of vehicles running on alternative fuels to more than 3,100. With one of the largest vocational fleets in the country, Republic’s CNG fleet saves roughly 26 million gallons of diesel fuel annually. The new CNG trucks replace older, diesel vehicles, and help decrease air emissions and reduce unwanted noise. According to the U.S. Environmental Protection Agency (EPA), each new CNG truck deployed is equivalent to planting 600 mature trees each year. “The Republic Services team cares deeply about protecting the environment today, and for generations to come,” said Pete Keller, vice president of recycling and sustainability. “With an expanding fleet comprised of vehicles that produce significantly less GHG emissions, we’re making a difference throughout the communities we serve.” In July, Republic unveiled ambitious, long-term sustainability goals, which include a climate change target designed to reduce absolute Scope 1 and 2 GHG emissions by 35% by 2030. This emissions reduction target is approved by the Science Based Targets initiative (SBTi).

http://www.ngvjournal.com/s1-news/c3-vehicles/republic-services-will-surpass-3100-alternative-fuel-vehicles-by-the-end-of-2019/

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Barranquilla, another Colombian green city that rolls out CNG buses

With 13 natural gas standard vehicles, Alianza Sodis began operating the so-called Green Route (Route to Makro), which will connect Soledad with Barranquilla by the Circunvalar corridor.

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Five additional buses of this type are expected to arrive in November to complete, together with two other existing environmentally-friendly buses, a total of 20 clean technology vehicles for the Green Route. During the presentation of the new vehicles, the transport companies assured that with these vehicles, the modernization of the massive public transport begins, a task that is part of the commitment act signed by the Mayor’s Office of Barranquilla, the Metropolitan Area and the bus operators. The new 13.5-meter buses, which belong to the company Sodetrans SAS, filial of Alianza Sodis, were manufactured by Scania with Marcopolo body, have a capacity for 34 seated passengers and more than 50 standing. They are equipped with Euro 6 CNG clean technology engines, which reduce the emission of polluting gases and are environmentally-friendly. Juan Carlos Calderón Gómez, General Manager of Alianza Sodis, explained that an investment of more than $ 20 billion was made to complete the 20 new standard buses. “Our goal is to continue to modernize the fleet, in addition to the commitments with the City Hall in the process of integrating the transport of the city and its metropolitan area,” he said. Moreover, the manager of Gases del Caribe Ramón Dávila Martínez emphasized the importance of the commitment of local authorities to private sector initiatives that benefit citizens. “The cities of the Caribbean coast have an enormous opportunity to demand clean technologies in the renewal of the vehicles of their public and mass public transport systems, in order to acquire clean fleets and remove obsolete buses that generate high pollutant emissions,” he said. The mayor of Barranquilla Alejandro Char also commented that this is a very important step for mobility and the development of public transport in the city. “This is of great relevance for the city, it will allow us to better organize the public transport system, this is great news for everyone, it places us as a city at the forefront of these important issues,” express.

http://www.ngvjournal.com/s1-news/c3-vehicles/barranquilla-joins-other-colombian-green-cities-with-cng-powered-buses/

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Fleet of 100 Stralis Natural Power tractors will hit the streets of France

XPO Logistics, a leading global provider of transportation and logistics solutions, has made a significant new investment in sustainability with the purchase of 100 Stralis Natural Power Euro VI tractors from IVECO.

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The new tractors will be dedicated to the company’s less-than-truckload network in France, serving customers in the Greater Lyon and Paris areas and the South West and Northern regions. XPO is an industry leader in utilizing natural gas-powered vehicles in its transportation offering in Europe. The company is committed to reducing the carbon footprint of urban logistics in line with goals set by major European cities. Stralis Natural Power tractors use a combination of LNG/CNG to generate lower NOx emissions than the Euro VI standard and reduce noise in densely populated areas. XPO’s investment will expand its natural gas fleet in France to 170 tractors, with more than 20 additional LNG/CNG vehicles operating in the UK, Spain and Portugal. “Our ongoing investments in alternative fuel technologies are an important part of our strategy as a sustainable business. XPO will continue to partner with truck manufacturers and energy suppliers to make sure we have the best resources to meet our customers’ demand for environmentally friendly solutions,” said Troy Cooper, president of XPO Logistics. XPO has a decades-long history of operational excellence in sustainability, including eco-training for drivers and collaboration with vehicle manufacturers to improve environmental performance. The company is piloting additional alternative fuel technologies for various transportation needs in European markets.

http://www.ngvjournal.com/s1-news/c3-vehicles/a-fleet-of-100-new-stralis-natural-power-tractors-will-hit-france-streets/

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Madrid bus operator will have almost 400 Scania NGVs next year

EMT Madrid once again relies on Scania to continue expanding its fleet of vehicles powered by natural gas. After several orders and a satisfactory experience with the Scania CNG N280 bus,

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184 new units will be added to the 206 that already circulate in Madrid, completing a total of 390 buses. The buses have multiple savings systems integrated with the generation of compressed air, electronic systems, gearbox and other components, as well as individual spark plugs with double ignition that improves operating economy and reduces emissions. Regarding comfort and ergonomics, significant improvements in interior habitability have been achieved with the wider interior platform and with fewer steps and more seats at the same floor height. These Scania buses present emission data that, in all the parameters of the Euro 6 standard, are below 50% of the allowed limits, contributing to the sustainability of the largest fleet of CNG buses in Spain, providing outstanding performance and reliability. In addition, the future integration of biomethane, with pilot experiences such as Valdemingómez in Madrid, are real and effective options to ensure reductions of up to 90% of CO2 emissions, which would represent the most efficient transport system in the market, with a unique circular economy proposal for cities. The vehicles were mounted on the Grupo Castrosua’s New City CNG model. All units are 12 meters long, have two doors and 27 seats and space for two wheelchairs.

http://www.ngvjournal.com/s1-news/c3-vehicles/next-year-madrid-transport-operator-will-have-almost-400-scania-cng-buses/

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Spain’s only CNG station for training purposes opens in Badalona

Badalona became the first city in Catalonia with a small-format CNG filling station. Located in Montigalà, at the headquarters of the Installers Guild of the Barcelonès Nord and the Baix Maresme (AEMIFESA),

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the refueling facility is specialized in the training of professionals. The equipment will be used for the training of future installers who want to dedicate themselves to both commercial and industrial assembly. Nedgia Cataluña (gas distributor of Naturgy) will supply the fuel. With this initiative, Nedgia and AEMIFESA intend to train the professionals of the installation companies so that they can offer this refueling equipment to potential clients interested in the use of natural gas in mobility. This fuel stands out for “the zero emission of solid particles in combustion,” which makes it a “sustainable alternative for public and private transport, especially in large cities,” according to Nedgia. The Badalona facility consists of a CNG compressor, a refueling module smaller than those usually found at public natural gas stations. It can be installed in private homes or public establishments and premises whenever it is outdoor and, even, there are also similar smaller models that can be placed in residential garages.

http://www.ngvjournal.com/s1-news/c4-stations/city-of-badalona-opens-the-only-cng-station-for-training-purposes-in-spain/

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Magirus launches world’s first natural gas fire-fighting truck

Magirus, a brand of CNH Industrial, has unveiled the Compact class (H)LF 10, the world’s first CNG-powered fire-fighting vehicle. This ground breaking product is the latest addition to the brand’s “Innovative Drive Line” series,

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which sees the development and application of alternative drive technology to the Magirus range of fire-fighting vehicles, and represents the next step in the implementation of the company’s long-term strategy to produce a comprehensive range of reliable, environmentally friendly vehicles. The (H)LF 10 is built on the renowned IVECO Eurocargo “Natural Power” 4×2 chassis, and has a capacity of 420 liters of CNG. The vehicle has a range of up to 300 kilometers or a pump operation of up to four hours. The CNG installation conforms to the latest and most stringent safety guidelines with the natural gas engine offering significant benefits in terms of reducing both NOx and CO2 emissions. The interior design of the fire engine reinforces its sustainable credentials with additional heating for the crew compartment powered by natural gas, a hydrogen generator together with battery-powered fans and rescue devices. With the (H)LF 10 natural gas-powered fire engine, Magirus has raised the bar in the development and manufacture of sustainable firefighting vehicles creating a powerful, low-emission machine to meet increasing demand from municipalities and public organizations, who have increasing focus on utilizing environmentally friendly solutions. CNH Industrial’s brands have a long history in developing and commercializing natural gas-powered vehicles. Since pioneering natural gas technology some 20 years ago, FPT Industrial has produced more than 50,000 natural gas engines, running on both CNG and LNG.

http://www.ngvjournal.com/s1-news/c3-vehicles/magirus-launches-worlds-first-natural-gas-fire-fighting-truck/

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LNG as a Marine Fuel/Shipping

B.C. hopes to build first LNG ship-refuelling facility on the West Coast

The Port of Vancouver is expected to become home to the first LNG ship-refuelling facility on North America’s west coast. The B.C. government, the Vancouver Fraser Port Authority and FortisBC are studying options for the facility,

 

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hoping future cargo ships and cruise ships will be powered by natural gas instead of heavy bunker fuel or diesel. Officials with the province and the Port of Vancouver said the exact location of the proposed facility has not been decided. It would be a full-service jetty that would fill up smaller refuelling vessels, which would in turn fuel the oceangoing vessels. However, a good bet for location is the Fortis LNG plant on Delta’s Tilbury Island in the Fraser River, which already fuels five B.C. Ferries vessels and two Seaspan cargo ferries. A statement from the Premier’s office said Fortis is partnering with WesPac to develop a full-service jetty on Tilbury Island in the Fraser River. WesPac, meanwhile, lists among the major projects on its website a proposal, still in the pre-application phase, for a marine jetty right next to Fortis’s existing LNG production and storage facility on a brownfield site previously home to the Northwest Hardwood Mill. The use of LNG as ship fuel is forecast to expand in the coming years, and B.C. is well-positioned to benefit from this growth, the Premier’s office said.

https://vancouversun.com/news/local-news/b-c-hopes-to-build-first-lng-ship-refuelling-facility-on-the-west-coast

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Yamal LNG tanker JV no longer under sanctions after ownership change

Teekay LNG’s liquefied natural gas (LNG) tanker venture, the Yamal LNG Joint Venture, is no longer subject to U.S. sanctions after a change of ownership at its partner China LNG Shipping (Holdings) Ltd,

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Teekay companies said late on Tuesday (Oct 22). Teekay LNG and China LNG Shipping each own half of Yamal LNG Joint Venture. The company owns four specialised Arc7 LNG tankers, or “ice class carriers”, which ship LNG from Yamal LNG, a massive production facility operated by Russian independent gas producer Novatek in the Russian Arctic. The joint venture was blocked in late September after the United States imposed sanctions on two units of COSCO Shipping Energy Transportation Co Ltd, including COSCO Shipping Tanker (Dalian) which owns China LNG Shipping. The sanctions caused shipping costs for oil and LNG to more than double across the globe. China LNG Shipping is no longer “classified as a “Blocked Person” under Office of Foreign Assets Control (OFAC) rules” after COSCO Shipping completed an ownership restructuring on arms-length terms, Teekay Corp and its subsidiary Teekay LNG said in a statement. Cosco Shipping could not be immediately reached for comment. “The four existing ARC7 LNG carriers are continuing to operate under their long-term contracts transporting gas from the Yamal LNG project and the remaining two ARC7 LNG carrier newbuildings are expected to deliver in the fourth quarter of 2019,” Teekay said. Teekay has a controlling stake in Teekay LNG, which is the world’s third-largest independent owner and operator of LNG carriers. (Reporting by Singapore energy team Editing by Jacqueline Wong)

https://finance.yahoo.com/news/yamal-lng-tanker-jv-no-030306339.html

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Wärtsilä retrofit will reduce ferry’s environmental impact

The technology group Wärtsilä will carry out an important retrofitting project aimed at lessening the environmental footprint of a ferry operating on the Wadden Sea, a UNESCO World Heritage listed area in the south eastern end of the North Sea.

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The area features high biological diversity and is important for breeding and migrating birds. The retrofit will enable the ‘Münsterland’, a RoPax ferry owned by German operator Aktien-Gesellschaft ‘Ems’ (AG Ems), to utilise liquefied natural gas (LNG) as fuel, thereby completely eliminating its emissions of sulphur oxides (SOx) and particulates, while significantly reducing its nitrogen oxide (NOx) emissions. The order with Wärtsilä was placed in July 2019. The work will take place at the Koninklijke Niestern-Sander B.V. yard in the Netherlands. The yard has facilities for shipbuilding and repairs under one roof, and will use these facilities to build a completely new aftship to accommodate the Wärtsilä LNGPac fuel storage, supply, and control system. This fitting of the new aftship is scheduled to commence in September 2020. A similar retrofitting project was carried out in 2015 on the ‘Ostfriesland’, a sister ship to the ‘Münsterland’, and the success of this project was cited as a prime consideration in the award of this subsequent contract. “There is no greater endorsement of customer satisfaction than repeat orders, and we are delighted to have again been selected to convert an AG Ems owned ferry to LNG fuel operation. The project is fully in line with our Smart Marine approach that emphasises greater efficiency and better environmental performance for customers, as we lead the industry’s transformation into a new era of opportunity,” says Matthias Becker, Managing Director, Wärtsilä Deutschland GmbH. “Operating our vessels in the most ecologically friendly way possible is of the utmost importance to us. Wärtsilä’s technology is already known to us, so we had no hesitation to contract them again to retrofit the ‘Münsterland’ to allow it to operate without restrictions in the SECA and NECA sulphur and nitrogen oxide controlled areas,” says Bernhard Brons, Managing Director of AG Ems. The vessel will be fitted with two Wärtsilä 20DF dual-fuel generating sets and a Wärtsilä LNGPac system. The scope of supply also includes Wärtsilä’s patented Cold Recovery system, which utilises the latent heat of LNG in the ship’s air conditioning, thus reducing electricity consumption. In addition to the environmental benefits, significant operational cost savings and an increase in overall vessel efficiency are the expected outcomes of the project. Delivery of the Wärtsilä equipment will commence in spring 2020, and completion of the retrofitting is anticipated during Q1 2021. In addition to the retrofitting of these two ferries, the owners have also earlier ordered via a subsidiary company, Cassen Eils, a full Wärtsilä dual-fuel package for LNG operation for the ferry ‘Helgoland’. The ship entered service in 2015.

https://www.maritime-executive.com/corporate/waertsilae-retrofit-reduces-ferry-s-environmental-impact

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World’s first LNG dual-fuel dynamic positioning shuttle tankers unveiled

AET, leading petroleum tanker owner and operator, on Wednesday (Oct 16) named its newest vessels, two of the world’s first LNG Dual-Fuel Dynamic Positioning Shuttle Tankers (DPSTs).

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The vessels, the cleanest DPSTs ever built, will emit 40-48% less carbon than equivalent vessels built in 2008, meeting the International Maritime Organization’s (IMO) target of reducing carbon (CO2) emissions by 40% against 2008 baselines by 2030, and halving CO2 emissions by 2050. These LNG Dual-Fuel DPSTs also emit 85% less SOx, 98% less NOx, 98% less particulate matter and 93% less black carbon particulates than DPSTs burning conventional fuel. The sister twin-skeg 123,100dwt shuttle tankers, Eagle Blane and Eagle Balder, were unveiled at a naming ceremony held at the Samsung Heavy Industries (SHI) Geoje Shipyard, South Korea. The vessels will serve Norwegian energy company Equinor on long-term charter for operations both in oilfields on the Norwegian Continental Shelf of the North Sea, Norwegian Sea and the southern Barents Sea, as well as on the UK Continental Shelf. Powered using liquified natural gas (LNG) as primary fuel, the LNG Dual-Fuel Dynamic Positioning Shuttle Tankers (DPSTs) will also be able to capture 100% of the harmful Volatile Organic Compounds (VOC) which escape into the air from crude oil cargoes during loading and voyage for reuse as a supplementary fuel. Utilising a more efficient system for dynamic positioning (the activity of ensuring the vessel remains stationary above a specified area of seabed while loading oil at sea), combined with the LNG Dual-Fuelling and VOC Recovery Systems, these vessels will save up to an estimated 3,000 tonnes fuel per year compared with conventional DPSTs of the same size. The vessels have been constructed by Samsung Heavy Industries (SHI), for AET Sea Shuttle AS (AETSS), a joint venture between Norwegian shipping company ADS Shipping and AET Tankers headquartered in Singapore, as the owner and commercial operator of the vessels. Project management for the newbuilds was provided by MISC Group’s marine services arm Eaglestar and Norwegian third-party ship management company, OSM Maritime.

https://seanews.co.uk/features/worlds-first-lng-dual-fuel-dynamic-positioning-shuttle-tankers-unveiled/[Edited]

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Shanghai shipyard launches Total LNG bunkering vessel

Total reports that its first large liquefied natural gas (LNG) bunker vessel has been launched. This follows the signing of a long-term charter contract between Total and Mitsui O.S.K Lines (MOL) in February 2018.

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After delivery in 2020, the bunker vessel will operate in Northern Europe, where it will supply LNG to commercial vessels, including 300,000 tons a year for CMA CGM’s nine ultra-large newbuild containerships for a period of at least 10 years. Total says that, in the context of IMO’s decision to drastically limit the sulfur content of marine fuels from January 1, 2020, “the transition from heavy fuel oil to LNG is a competitive, efficient and immediately available solution for maritime transportation.” Used as a marine fuel, notes Total, LNG sharply reduces emissions from ships, resulting in a significant improvement in air quality, particularly for communities in coastal areas and port cities. “Developing infrastructure like this giant bunker vessel is essential to allow LNG to become a widely used marine fuel,” said Momar Nguer, President for Total Marketing & Services. “This first ship demonstrates our commitment to offering our customers both more environmentally friendly fuels and the associated logistics. Thanks to this pioneering investment, Total is making a positive contribution to the sustainable evolution of global shipping.” Built by Hudong-Zhonghua Shipbuilding at its shipyard near Shanghai, the 18,600 cubic meter capacity bunker vessel is fitted with innovative tank technologies provided by the French company GTT. Designed to be highly maneuverable, the 135-meter-long vessel will be able to operate safely in the ports and terminals considered. Lastly, notes Total, “she meets the highest environmental standards thanks to the use of LNG as fuel and complete reliquefaction of boil-off gas.”

https://www.marinelog.com/news/shanghai-shipyard-launches-total-lng-bunkering-vessel/

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

Renault bets on hydrogen fuel cells for light commercial vehicle range

Groupe Renault announced the KANGOO and MASTER models will be available in hydrogen version soon. Tested since 2014, Renault’s hydrogen technology was developed in partnership with Symbio, a Groupe Michelin subsidiary.

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The vehicles are equipped with a range extender fuel cell providing electric and thermal power of 10 kW, increasing the range of Renault MASTER Z.E. Hydrogen and Renault KANGOO Z.E substantially. Another advantage of hydrogen is that refueling takes just five to ten minutes. Expected in first-half 2020, Renault MASTER Z.E. Hydrogen will triple the range from 120 km to 350 km and will be available in van (two versions) and chassis cab (two versions). Equipped with two hydrogen tanks located under the car body, the vehicle will gain in versatility with no compromises on the load volume from 10,8 m3 to 20 m3 with a reasonable additional weight of 200 kg. From the end of 2019, Renault KANGOO Z.E. Hydrogen will boast the best real-life range of any electric van on the market at 370 km. With a load volume of 3.9 m3, despite a reasonable additional weight of 110 kg, this vehicle will be available in France at €48,300 ex. VAT (including the battery purchase and not including ecological bonuses). “These vehicles provide professionals with all the range they require for their long-distance journeys as well as record charging times. And the advantages do not stop there, as Renault MASTER Z.E. Hydrogen and Renault KANGOO Z.E. Hydrogen can run on decarbonized energy that respects the environment while offering all the comfort of electric driving,” said Denis Le Vot, Alliance SVP, Renault-Nissan LCV Business Unit. These hydrogen vehicles operate with a fuel cell, which combines hydrogen from its tanks with oxygen from the air to produce electricity. The first advantage: these vehicles meet the new environmental challenges of urban mobility. In addition, they offer increased autonomy, fast hydrogen refueling and easy maintenance. These advantages make hydrogen light commercial vehicles particularly suitable for the intensive needs and uses of professionals in large urban areas up to the periphery of cities: transport and logistics, urban deliveries and multi-technical services, municipal and local authority services, express and special mail.

http://www.ngvjournal.com/s1-news/c7-lng-h2-blends/renault-bets-on-hydrogen-technology-for-its-light-commercial-vehicle-range/

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ENGIE forms alliance to deploy first hydrogen-fueled mining haul truck

Energy company ENGIE and mining industry player Anglo American announced their agreement to co-develop and fuel the world’s largest hydrogen-powered mining haul truck.

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This project is part of ENGIE’s strategy to promote renewable hydrogen to help its customers decarbonize their operations, and is aligned with Anglo American’s initiatives towards mining with zero climate impact. This collaboration between the two companies marks the first time a truck of this size and load capacity (300 metric tons) will be converted to run on hydrogen. ENGIE will provide the hydrogen generation solutions while Anglo American will develop the truck. The modifications to the existing truck include replacing the diesel tank with hydrogen tanks, and replacing the engine with hydrogen fuel cells and a battery pack. The hydrogen will be provided by the solar power generation capacity at the mining site.

First motion of the hydrogen powered truck is expected in 2020, followed by a testing and validation program at Anglo American’s Mogalakwena Platinum Group Metals mine in South Africa, after which additional trucks are expected to be rolled out at other Anglo American operations. The mining sector operates in challenging conditions and represents a high portion of the global energy consumption. Jointly developing the hydrogen-powered truck is the first step to achieving both companies’ common ambition to decarbonize the mining sector, one of the key sectors in the energy transition.

http://www.ngvjournal.com/s1-news/c7-lng-h2-blends/engie-forms-alliance-to-develop-first-hydrogen-powered-mining-haul-truck/[Edited]

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Biogas powers Ireland’s first carbon free truck delivering goods to Europe

Virginia International Logistics has become the first Irish hauler to complete a delivery to Europe with a zero carbon heavy goods vehicle (HGV). The truck was fueled by biomethane to transport freight to the continent.

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The first European load was a consignment of processed beef from Liffey Meats in Ballyjamesduff going to Caen in Northern France.  The total round trip is 1,121 km.  The journey was powered using certified CNG purchased from biomethane producers in Europe and delivered to Virginia International Logistics through Gas Networks Ireland. There is however significant potential to produce indigenous renewable natural gas in Ireland at a lower cost. The Government’s Climate Action Plan commits to setting of a target by the end of this year for biomethane on the network by 2030. Gas Networks Ireland has already successfully injected biomethane into the Irish network and a second gas injection facility is currently in the planning process in Co. Cork. This facility will produce biomethane for heating and transport, and support the country’s growing CNG fleet to switch renewable natural gas. Virginia International Logistics has been focused on reducing the emissions from their fleet since 2012, when they invested in dual fuel vehicles. Last year, they made the switch to CNG.  By December of this year, they are aiming to have 30 low carbon CNG trucks on their fleet. All of these trucks can run on biomethane. “This is the latest low carbon milestone for Virginia Transport. Transport is changing and we are proud to be leading the way in Ireland in moving to a cleaner energy future. We are proud to be able to deliver for Liffey Meats and other customers in the most sustainable way by offering zero carbon shipping, in Ireland, the UK and onto the continent,” commented Ray Cole, Transport Director, Virginia International Logistics. The expansion of Virginia Transport fleet and the installation of the refueling technology is supported by Gas Networks Ireland, which is developing a network of 150 CNG stations in Ireland. The first public CNG fueling station in Circle K Dublin Port opened earlier this year.  A further six public stations are in planning and development.

http://www.ngvjournal.com/s1-news/c3-vehicles/pioneering-biomethane-zero-carbon-truck-delivers-goods-from-ireland-to-france/

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Nordic logistics companies at the forefront of adopting biogas trucks

The Finnish transport sector has announced the goal to halve emissions originating in transport by 2030 from the level in 2005. Emissions reduction is particularly important in the transport and logistics industry

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since heavy-duty transport accounts for roughly a third of EU greenhouse gas emissions in road transport. Growing numbers of logistics companies are seeking to cut emissions by switching to more environmentally friendly fuels. PostNord, the leading logistics solutions provider in the Nordic countries, has brought into service four biomethane delivery vehicles in Finland during the summer. The use of biogas in transport can reduce greenhouse gas emissions over the lifecycle of the fuel by up to 85% compared with more traditional fuels. “Concern for the environment is everyone’s responsibility and we want to be a sustainability leader in the Nordic countries. We have set ourselves the goal of cutting the entire PostNord Group’s carbon dioxide emissions by 40% by 2020 compared with the 2009 level,” said Johanna Starck, CEO of PostNord Oy. By making low emission choices, PostNord has reduced the environmental loading in its operations despite a sharp rise in the numbers of parcels transported. The company also requires its partners to commit to environmental goals. PostNord’s subcontractor, transport company A2B, has been driving biomethane vehicles since back in 2011 and now has a fleet of 34 vehicles powered by this fuel. “Our deliveries are made using fully renewable fuel produced from Finnish biowaste. We’re supporting the circular economy and improving urban air quality at the same time,” commented Tero Kakko, CEO, A2B. The energy company Gasum is strategically building a network of natural gas stations in Finland and the other Nordic countries. “Demand for cleaner fuels is growing rapidly in the transport and logistics industry. We and our partners are focusing on developing the gas infrastructure and network of filling stations across the Nordic countries. Particularly for companies in this sector, LNG and bio-LNG are essential in the transition towards a carbon-neutral future. At the same time, they also result in significant savings in fuel costs,” added Jani Arala, Senior Sales Manager, Gasum.

http://www.ngvjournal.com/s1-news/c3-vehicles/nordic-logistics-companies-at-the-forefront-of-using-renewable-natural-gas-fleets/

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Paris transport operator will roll out more than 400 biomethane buses

IVECO BUS has won a record order to supply 409 Urbanway Natural Power (NP) buses to the Parisian Transport Authority, Ile-de-France Mobilités. The buses, which will run on renewable natural gas,

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will be deployed on the public transport network which covers both the inner and outer suburbs of the Paris Region and will play a major part in the city’s development plan for a diesel-free transport network. This significant order is the result of a partnership between IVECO BUS, Ile-de-France Mobilités and CATP (French Public Transport Central Purchasing Office) and was announced at the recent National Public Transport Exhibition held in Nantes, France. IVECO BUS will deliver the biomethane vehicles between 2020 and 2021. The Urbanway NP has a range of up to 400 kilometers and is therefore ideally suited to the requirements of the public transport network of the Greater Paris area. Fueled by biomethane derived from recycled organic waste, the Urbanway NP delivers major environmental benefits, noise reduction and improved air quality. Fine particle emissions are reduced to almost zero and NOx emissions by more than a third. Moreover, the Urbanway’s natural gas engine cuts noise level by 50% improving travelling conditions for drivers, passengers and residents alike. The use of this technology responds to the mobility challenges of tomorrow, today: air quality and climate protection are just two of the extra benefits obtained without compromising performance. IVECO further confirms its leadership in alternative propulsion technologies providing a mature, virtuous and sustainable solution from well-to-wheel.

http://www.ngvjournal.com/s1-news/c3-vehicles/paris-transport-operator-will-roll-out-more-than-400-biomethane-buses/

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Hydrogen-powered buses gather momentum in European cities

Agility Fuel Solutions, a Hexagon Composites business, has been awarded two orders from Portuguese bus manufacturer CaetanoBus and Solaris to supply two and 12 fuel storage systems

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respectively for their new hydrogen bus models. CaetanoBus’ new hydrogen fuel cell bus, H2.City Gold, is an addition to their clean bus portfolio. It is the first bus manufacturer in Europe to utilize Toyota’s leading fuel cell technology. “We’re pleased to leverage our extensive experience in lightweight, reliable and safe hydrogen storage systems to help CaetanoBus bring this exciting new product to the zero-emission public transport sector,” said Eric Bippus, Senior Vice President of Sales and Marketing at Agility Fuel Solutions. “We work every day to combine our growth with urban sustainability and to build the future of cities with our partners,” commented Jorge Pinto, CEO of CaetanoBus. “Adding the new hydrogen fuel cell bus to our clean bus portfolio is our best contribution to a future shaped by sustainable mobility solutions worldwide.” Moreover, the Italian city of Bolzano is investing strongly in clean public transportation and is the first customer to order the Solaris Urbino 12 Hydrogen, which had its world premiere in June this year. In addition, Régie Autonome des Transports Parisiens (RATP) has signed an agreement with Solaris for tests of the Urbino 12 hydrogen bus. The buses will be tested in regular passenger traffic during the second half of 2020. The Solaris Urbino 12 hydrogen bus will have a driving range of up to 350 km on a single fill. Thanks to the use of Agility’s Type 4 hydrogen fuel system, Solaris has reduced the mass of the fuel system by ca. 20% compared to the previous model. Hydrogen fuel cell vehicles stand out due to their long-range capabilities and the short time needed to refill. Deliveries of the Agility hydrogen bus systems are scheduled for the third quarter of 2020. “We are excited to continue our long partnership with Solaris adding hydrogen technology to the clean fuel portfolio. This is an important step in the expansion in the European hydrogen bus market – a market representing a major opportunity for zero-emission public transport,” added Bippus.

http://www.ngvjournal.com/s1-news/c7-lng-h2-blends/hydrogen-powered-buses-gather-momentum-in-europe/

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