Flagship India LNG project commissioning in April 2021
April 11, 2021
Singapore: India’s first floating storage and regasification unit-based liquefied natural gas import project is finally closing in on start-up with the unit destined for H-Energy’s Jaigarh scheme enroute from Keppel Shipyard in Singapore.The Hoegh Giant FSRU underwent minor modifications following its previous charter with Naturgy while Keppel also pre-completed the vessel’s five-year periodic class survey, originally scheduled for 2022, thereby improving efficiency and reducing costs.
The vessel departed Singapore last Thursday and is expected to arrive within the week at Jaigarh in Maharashtra on India’s west coast with commissioning to be performed in April, according to H-Energy.The FSRU terminal will allow for the replacement of coal consumption with natural gas at a scale which reduces carbon dioxide emissions by up to approximately 120 million tonnes, nitrous oxide emissions by approximately 97% and sulphur oxide emissions by approximately 99% over the 10-year period lease term, assuming average imports of 3 million tonnes per annum.
Hoegh Giant will be the first FSRU operating in India and will deliver natural gas to the 57-kilometre Jaigarh-Dabhol pipeline connecting the LNG import terminal to the national gas grid.The facility will also deliver LNG for onshore distribution through LNG truck loading facilities, as well as reloading LNG onto small-scale LNG vessels for downstream distribution or LNG bunker services.
H-Energy has chartered the FSRU for a 10-year contract that has annual termination options after year five.The 2017-built Hoegh Giant has storage capacity of 170,000 cubic metres and peak regasification capacity of 750 million cubic feet per day (equivalent to about 6 million tpa).
Joint development roadmap
“A roadmap with H-Energy also includes the joint development of the downstream small-scale LNG market in the region, using the FSRU as the terminal for storage and reloading to smaller vessels,” Hoegh LNG chief executive SveinungStohle recently said.
H-Energy’s Jaigarh LNG import project is to be implemented in two phases. Phase one consists of the 5 million tpa jetty-based FSRU, while the second phase envisages an onshore terminal with an ultimate capacity of 8 million tpa.The terminal will be implemented after the successful completion and stabilisation of phase one.
High growth market
“India is a high-growth market, and we see clear potential for Hoegh LNG to provide additional FSRUs and clean energy solutions to this market over the coming years,” added Stohle.
Source : https://www.upstreamonline.com/lng/flagship-india-lng-project-commissioning-in-april/2-1-990987
H-Energy Signed MOU with Syama Prasad Port, Kolkata for LNG Regasification Terminal Project
February 23, 2021
Syama Prasad Mookerjee Port and Hiranandani Group enters into an agreement to build LNG terminal
Kolkata Port Trust rechristened as Syama Prasad Mookerjee Port, has entered into an agreement with Mumbai based Hiranandani Group to build a jetty based liquefied natural gas (LNG) terminal at east Midnapur for storage and re-gasification of LNG with a maximum capacity of 5 MMTPA.
The proposed project entails an investment of around Rs 3900 crore and has an economic value of about Rs 6000 crore. The terminal is expected to provide direct employment to about 250 people and, indirect employment to 750 people, a press statement issued by the port on Monday stated. The project had already obtained environmental clearance and SMP has given its NOC on mutually agreed terms and conditions, the release added.
The project is coming up on 38 acres of land acquired from the Haldia Development Authority. However, the waterfront area comes under the jurisdiction of SMP, Kolkata. Apart from the onshore LNG storage and regasification terminal, the project envisages the development of a 125 km long pipeline from Kukrahati to Itinda in Bangladesh and 225 km long pipeline from Kanaichatta to Shrirampur.
Additionally, some 20 liquid to compressed natural gas (LCNG) stations will also get commissioned in West Bengal under this project. Once commissioned in July 2024, LNG can be used as bunker fuel for ships and barges in the Hooghly River. Also, it will cater to the requirements of West Bengal and nearby states.
Source : https://energy.economictimes.indiatimes.com/news/oil-and-gas/syama-prasad-mookerjee-port-and-hiranandani-group-enters-into-an-agreement-to-build-lng-terminal/81163806
Petroleum Minister lays foundation stone for the first 50 LNG fuelling stations
November 24, 2020
Shri Dharmendra Pradhan, Minister of Petroleum & Natural Gas and Steel today laid the foundation stone for the first 50 LNG fuelling stations, across the golden quadrilateral and major National Highways.This is part of a slew of initiatives of the Ministry of Petroleum and Natural Gas in realizing Hon’ble Prime Minister Shri Narendra Modi’s vision of transforming India into a Gas based economy.
Government hasidentified LNG as a transport fuel as a priority area considering the potential of manifold benefits in terms of reducing vehicular pollution, saving in terms of import bill of the country and wide ranging benefits that may accrue to fleet operators, vehicle manufacturers and other entities in the gas sector.
Speaking on the occasion, Shri Pradhan said that a well-thought strategy is being implemented to take the country towards the gas-based economy. In this regard, gas infrastructure is being set up, in terms of laying of pipelines, setting up of terminals, enhancing gas production, introduction of simple and rational tax structure. He said that LNG is going to be the fuel of the future for transport, and in this regard, retro-fitting of the vehicles as well as development by Original equipment manufacturers is being undertaken.
The Minister said that the LNG is not only almost 40% cheaper than diesel but also causes very less pollution. He said that the Government will set up LNG stations at the distance of 200-300 km on golden quadrilateral, and within 3 years, we will have 1000 LNG stations on all major roads, industrial hubs and mining areas. He expressed confidence that 10% of the trucks will adopt LNG as fuel.
Shri Pradhan said that the government is working to meet the commitment made by the Hon’ble Prime Minister in COP-21 to reduce pollution. He said that the government provided 8 crore poor households with LPG connections under PMUY, and during the pandemic, 14 crore free cylinders have been distributed to help support PMUY beneficiaries.
The Minister said that clean and affordable fuel has become an instrument of welfare of people. He said that the Government will continue to promote CNG vehicles, Electric vehicles, Auto-LPG, but at the same time, LNG as long-haul fuel will be pushed. 20-25 MMSCMD equivalent LNG will come to the country, and cheaper LNG is likely to be available in the global market. He said that increased LNG consumption in the country will reduce the country’s dependence on crude oil.
The Secretary, Ministry of Petroleum and Natural Gas Shri Tarun Kapoor said that the Government is making a long-term plan to promote LNG. The first trial of the fuel was started in 2015, and it is now ready to take off on the commercial scale. He expressed confidence that LNG’s use will increase and adopted for long haul trucks and buses.
These fifty LNG stations will be set up and commissioned in partnership by country’s Oil & Gas majors such as IOCL, BPCL, HPCL, GAIL, PLL, Gujarat Gas and their Joint Venture Companies and subsidiaries. Out of these 50 LNG stations, IOCL will set up 20 LNG Station, while BPCL and HPCL will set up 11 each LNG station. These 50 LNG stations are being put up at the nation’s Golden quadrilateral and major National highways where LNG is to be made available for heavy vehicles and buses.
Natural Gas, being an environment friendly clean fossil fuel, has potential to play a significant role in providing solutions to the environmental challenges as well as ever growing energy needs in a sustainable manner. Accordingly, Government of India has focused to promote the usage of natural gas as a fuel/feedstock across the country to increase the share of natural gas in primary energy mix from current level of 6.3 % to 15% by 2030.
LNG use in trucks can reduce SOx emissions by 100% and NOx emissions by 85% thus befitting society at large. Further, Heavy Duty vehicle segment is expected to grow significantly with increased highway development which is on-going across the country.LNG based truck operators can look forward to saving around Rs 2 Lakh per annum per truck which will result in higher upfront cost of LNG trucks being paid back in around 3 – 4 years. LNG as heavy vehicle fuel segment can also provide around 20-25 MMSCMD of new gas demand by 2035, and will be an important contribution towards our vision of 15% share of Natural Gas in India’s energy mix.
Source : https://pib.gov.in/PressReleasePage.aspx?PRID=1673998
Skyroot unveils India’s first pvt cryogenic rocket engine that runs on LNG
October 8, 2020
CHENNAI: Skyroot Aerospace today unveiled India’s first privately developed indigenous fully cryogenic rocket Dhawan-I engine running on high performance fully cryogenic rocket propellants- Liquid Natural gas (LNG) & Liquid Oxygen (LoX).The company announced this on the occasion of 100th birth anniversary of renowned Indian rocket scientist- Dr.Satish Dhawan.
The company said it is 100 per cent 3D Printed, uses 100 per cent cryo propellants – LNG/LoX and is 100 per cent ‘Made in India’, said Pawan Kumar Chandana. CEO, Skyroot.He added, “our engine is named ‘Dhawan-I’ in honour of eminent Indian rocket scientist Dr. Satish Dhawan who played an instrumental role in development of the Indian space programme”.
“Dhawan-I is a 100% 3D Printed cryogenic engine with regenerative cooling. This is first among a series of engines being planned with various thrust levels,” added Chandana.After successfully completing many tests to check the fuel flow and structural integrity, the company is building a dedicated test facility for hot fire testing of this engine.
“LNG (>90% Methane) is clean burning, low cost, highly reusable and safe cryogenic fuel which is also ideal for longer duration deep space missions carrying satellites or humans – perfectly aligned with the long-term vision of Skyroot,” said Chandana.“This engine is India’s first fully cryogenic engine running on futuristic fuel LNG ”, said V. Gnanagandhi, a former ISRO scientist, Padmashri awardee and a pioneer of cryogenic rocket propulsion in India. Gnanagandhi is currently the senior vice president at Skyroot and is leading their cryogenic propulsion team.
Source : https://www.business-standard.com/article/current-affairs/skyroot-unveils-india-s-first-pvt-cryogenic-rocket-engine-that-runs-on-lng-120092500433_1.html
India to launch 11th city gas licensing round soon: Dharmendra Pradhan
September 25, 2020
NEW DELHI : India will soon launch a bid round to give out licences for retailing gas in cities to help extend the coverage of environment-friendly fuel to about 500 cities, Oil Minister Dharmendra Pradhan said on Thursday.
During 2018 and 2019, sector regulator PNGRB gave out licences to retail CNG to automobiles and piped cooking gas to household kitchens in 136 geographical areas or GAs. This extended coverage of the city gas network to 406 districts and around 70% of the country’s population.
“The 11th city gas distribution (CGD) authorisation round will be launched very soon. PNGRB is preparing for it,” he said at a virtual event organised to commission 56 CNG stations in 13 states and one UT. “50-100 districts, particularly in Chhattisgarh, Madhya Pradesh, and Vidharba, will join the city gas network after the 11th round.”
The push for city gas expansion is part of the government plan for raising the share of natural gas in the country’s energy basket to 15% by 2030 from the current 6.3%.
Pradhan said gas is cheaper, convenient, and environment friendly and its greater use will help cut dependence on oil imports.The 11th bid round is being planned around a new pipeline being constructed from Angul in Odisha to Mumbai in Maharashtra to ferry natural gas between the east and west coast.
State-owned gas utility GAIL has started work on the Angul-Mumbai pipeline, he said adding 17,000-km of gas pipelines particularly in the eastern part of the country are being built to connect gas sources with consumption centres.Also, the capacity of liquefied natural gas (LNG) import terminals is being raised to meet rising domestic demand, he said.
Pradhan said retail outlets dispensing CNG have risen from 938 in 2014 to 2,307. “This number will rise to 10,000 in 4-5 years” after companies roll out operations in all the areas for which licences have already been given.Similarly, the number of households getting piped cooking gas is targeted to rise to 5 crore in coming years from the current 62.5 lakh, he said.
The government, he said, has liberalised norms for petrol and diesel retailing by removing the condition of ₹2,000 crore investment in the hydrocarbon sector.
Any entity with a turnover of ₹250 crore can now set up petrol pumps and retail auto fuels, he said asking city gas entities to look beyond CNG and set up outlets that can retail not just gas but also petrol and diesel as well as charge electric vehicles (EVs).
“Don’t get stuck at CNG station. Go for big retailing,” he said.
The government is also pushing for use of LNG as a fuel in trucks and buses and 100 LNG pumps are planned to be set up on the Golden Quadrilateral connecting the four metros as well as on the North-South, East-West highway corridors and in mining blocks, he said.In August 2019, Pradhan had stated that an investment of about ₹1.2 trillion was to be made by 2030 in the rollout of city gas network in almost 300 districts for which licences have been given for the 9th and 10th bid rounds.
During 2018 and 2019, the Petroleum and Natural Gas Regulatory Board (PNGRB) awarded licences for setting up city gas distribution networks in 136 GAs.While ₹70,000 crore investment was committed in 86 GAs awarded in the 9th city gas bid round in August 2018, another ₹50,000 crore was committed in the 50 GAs awarded in the 10th round in March 2019.
Less than 20% of the population was covered by city gas distribution network in 2014 and after the award of the 10th bid round, this reached 70%.
While 86 GAs, made up of 174 districts, were offered for bidding in the 9th round that concluded in August 2018, 50 GAs, comprising 124 districts, were offered in the 10th round.
With the completion of the 10th bidding round, CGD would be available in 228 GAs comprising 406 districts spread over 27 states and Union Territories covering approximately 70% of India’s population and 53% of its geographical area.
The 56 CNG stations commissioned on Thursday were set up mostly by Adani Gas and Indian Oil Corp (IOC).`
Source : https://www.livemint.com/industry/
World’s first CNG terminal to come up in Gujarat’s Bhavnagar
Gandhinagar: The Gujarat Chief Minister Vijay Rupani on Tuesday said Bhavnagar will become the first Compressed Natural Gas (CNG) terminal in the world, as the government has given its sanction to the Rs 1,900 crore brownfield project.The terminal will have a capacity of 15 lakh tons annually.
He said the state government has given the sanction and the Rs 1,900 crore project and will be developed by a Consortium of developers, including the Padmanabh Mafatlal Group and one from the Netherlands.
According to the information given by the government, Rs 1,300 will be invested in the first phase of the brownfield port project. The project is a part of an ambitious mega project of developing Bhavnagar, where a liquid cargo terminal having a capacity of 45 lakh Container and White cargo terminal and RO RO ferry services terminal, would be developed.
To develop this terminal, dredging and construction of two lock gates will be carried out in the channel and port basin. Infrastructural facilities will be set up on the shore for CNG transportation. Due to the project, Bhavnagar port’s annual cargo capacity will be raised to nine million metric tons (MMT).
The Chief Minister informed that Gujarat will be the only state in the country, which will have terminals for both CNG and LNG (with LNG terminals at Dahej and Hazira).
According to the state government, the project will create vast employment opportunities for Bhavnagar and adjoining area youth in logistics, transportation and warehousing
Source : https://energy.economictimes.indiatimes.com/news/oil-and-gas
PNGRB Act on Establishment of LNG Stations
June 4, 2020
“In a breakthrough decision by the PNGRB, the Hon’ble Board has clarified that the LNG Stations fall outside the purview of the CGD network under the PNGRB act. Accordingly, now any entity can set up an LNG Station in any GAs irrespective of the authorization for CGD network. This clarification will trigger a quick LNG Stations establishment in India which will promote the replacement of Diesel by LNG, as transport fuel in the high commercial vehicles and it will not only result into reducing the vehicular pollution significantly but also reduce the cost of road transportation in the country.
For detailed Public Notice, please click here“
GAIL un-bundling crucial for natural gas trading hub to work
September 17, 2019
New Delhi: The un-bundling of state-owned natural gas utility GAIL (India) must happen for the country’s plan to set up a gas trading hub to achieve its desired purpose, Darshan Hiranandani, Chief Executive Officer (CEO) and Managing Director (MD) of H-Energy, promoted by Mumbai-based realtor Hiranandani Group, has said. “Until the unbundling of GAIL happens, natural gas trading hub will not work. It will not take off. If the unbundling of GAIL happens, we will be among the first ones to participate in the hub,” Hiranandani told ETEnergyworld in an exclusive interview.
Talking about the company’s capital expenditure plans, Hiranandani said H-Energy plans to spend around Rs 4,000 crore over the next 3-4 years in order to set-up pipeline infrastructure and two Liquefied Natural Gas (LNG) terminals on the Eastern coast. According to Hiranandani, the 4 Million Tonne Per Annum (MTPA) LNG terminal in Jaigarh, Maharashtra is ready and only a small stretch of 60-Km natural gas pipeline connecting the terminal to Dabhol-Bangalore natural gas pipeline is pending, which is expected to be completed by December 2019.
On the Eastern side, H-LNG is setting up two terminals — a 3 MTPA terminal in Kukrahati in West Bengal and another 3 MTPA terminal in Kakinada, Andhra Pradesh. The company expects both the terminals to be completed by mid-2022. “By creating assets near the demand centre we are bringing efficiency as this will avoid the need for a long pipeline to connect with the demand centres. As another focus area, we are going around the world — like our recent agreement with Russian company Novatek — to try and find cost efficient gas to bring to India,” Hiranandani said.
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May 22, 2019
An outlook on “Accounting Hydrocarbons”, its importance and methodology to manage Hydrocarbon
accounting by Alpen Gandhi, General Manager, Commercial, has been featured in FIPI’s Journal, Jan-March
In the field of Oil & Gas, the commonality is a “hydrocarbon molecule”. How effectively and efficiently one monetizes this molecule, is the one who profits more. This paper is to explain, the importance of its accounting called – “Hydrocarbon Accounting-HCA”. This accounting is at times not properly understood or given less importance, which leads to losses, which are difficult to trace. A structured planning and deciding on the methodology of Hydrocarbon Accounting, helps the industry to avoid such leakages during operations.
Understanding Hydrocarbon Accounting (HCA):
I would take the illustration of a regasification terminal, however, HCA plays a key role in determining revenues in the entire oil & gas sector. HCA, now-a¬days, is taken up by both Finance and Commercial departments, independently and considered as one of the key contributors to the business revenue and profits.
HCA is defined as “the system by which ownership of oil, gas, gas liquids and produced water is determined and tracked from the point of production to a point of sale or discharge”. The terms allocation and production reporting are also commonly used to refer to this function.
The scope of this article is limited to a regasification terminal, receiving LNG from various suppliers under various contractual terms, storing in the cryogenic tanks, regasification and supplying natural gas (Regasified liquefied natural gas- RLNG) to end consumers through common carrier pipelines. The typical schematic is shown in Figurel.
Importance of HCA:
Used for reporting to various governmental authorities
– It helps to determine the ownership of the comingled product in the case of multiple users/titles of the hydrocarbons in one area.
– Provides important information to top management, finance and commercial team to ascertain whether value monetisation is done for that molecule.
Generally, HCA is done on energy units for ease of computation and understanding. Reason being in LNG/ gas industry, hydrocarbon molecules are bought and sold on energy terms (US$/mmbtu), though measurements primarily are done either on weight or volume. HCA has two essential elements to
focus on –
a) Accurate and timely measurement of LNG/ NG
b) Allocation of molecules
It has two essential elements: firstly, gathering and validating flow measurement data in order to establish the definitive record of hydrocarbon molecules purchased, unloaded, stored, regasified and transport to end consumers. In this entire chain, there is a need to measure the quantity of LNG procured, unloaded, stored, all in liquid phase. After processing to deliver to customers, need to be measured in gaseous phase. Another focus area is related to the molecules remained unaccounted, due to measurement uncertainties, flaring, process losses, aging of the product in tank or vessel, used in process, etc. Some organisations do focus on all these unaccounted losses and ensure to accurately measure them for HCA purpose.
… Secondly, it involves carrying out allocation of molecules on the flow measurements to derive quantities with price of purchase. Allocation procedures vary in complexity from the trivial to the highly complicated. In some cases, organisation do simple allocation wrt to the measured energy of unloaded LNG to the LNG owner, on whom the title is transferred. While at the other end of the complexity scale is the requirement to allocate based on the molecules sold to the end consumers.
Financial accounting of hydrocarbons purchased and sold can be either based on FIFO or LIFO based inventories in tanks. However, HCA enables organisation to predict the future deliveries and gives flexibility to allocate such molecules which are yet to arrive in inventories. This method is actually allowing to pool price, optimise the deals and continue to reap benefits of rolling margins, though a need remains is to reconcile the price with the financial accounting at the end of the year.
What is required to manage HCA successfully? An effective HCA system must include:
– A well defined allocation procedure, in which the input data and calculations are specified in detail, and which is approved by all stake holders.
– A robust software which can collect, store, run algorithm and perform calculations and generate the required results. Such system needs a high degree of controls over the access of data and calculations in multi-user environments. As the systems need adequate controls, excel spread sheets should be avoided.
– Needs clear identification of roles and responsibilities avoiding conflicts and ensuring audit trails.
What can go wrong in absence of inadequate HCA systems?
HCA can be a complicated business, so much that the accurate and reliable collection, calculation and presentation of data often present a challenge. When it comes to errors, the following recur and becomes difficult to justify:
– Failure to establish one view in the organisation. There must be a single database that is accepted as the definitive source of production and accessible to everyone in the organisation who needs it. This is essentially to avoid duplication of work and wastage of time to avoid reconciling efforts between different numbers.
– An important function of HCA system is to allow corrections to measured data. Insufficient control over numbers and its corrections, becomes difficult to resolve.
– Consistency overruns accuracy at times. The user of HCA shall always double check its numbers before sharing it with wider audience, else can lead to serious errors going undetected for long periods, due to errors or outdated data or equations.
– Confidence in HCA results depends on a well understood and accepted set of calculations being carried out reliably. Nothing erodes confidence more quickly than unexplained errors appearing in the calculations.
To view, E-copy of magazine, click here.
Page reference for this article is 38-39.
PM meets oil, gas sector experts
January 5, 2016
Prime Minister Narendra Modi held a two-hour meeting with oil and gas experts to discuss ways to infuse funds into exploration.
The meet also explored acquisition of global assets, amid falling oil prices and spending cuts being undertaken by domestic firms.
“The discussions focused on subjects such as increasing the share of gas in India’s energy mix, fresh investment in oil and gas exploration in India, regulatory frameworks, international acquisition of oil and gas assets, emerging areas such as shale gas and coal-bed methane, and the oil and gas sector related possibilities of ‘Make in India’,” according to a statement from the Prime Minister’s Office.
The share of natural gas in the energy mix of India, which was at 11 per cent in 2010, is expected to grow to more than 20 per cent by 2025, according to a report prepared by industry bodies for the Petroleum and Natural Gas Regulatory Board.
However, most of the country’s natural gas demand is projected to be met by imports, with domestic production falling well short of demand.
A report by the Ministry projected that domestic natural gas production will grow to 146.87 million metric standard cubic metres per day (mmscmd) in 2018-19, from 90.99 mmscmd in 2014-15. Demand, on the other hand is expected to balloon to 523 mmscmd by 2018-19. It was at 405 mmscmd in 2014-15.
India has been working towards procuring gas at reasonable prices. Petronet LNG, India’s biggest gas importer, signed a revised contract with RasGas of Qatar to import gas at a significantly lower price than was initially agreed upon. The need for additional investment in oil and gas exploration, and the subsequent production, is clear.
No major discovery has been brought to production in the last five years.
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