Restricted Circulation October 2020

from the Editor the domestic price of gas to the popular benchmark Japan-Korea Marker that is used for LNG tariff in North Asia with a discount. This could have a very positive Time to bite the bullet on effect on the E&P industry and long term domestic gas availability. The setting up of Natural Gas for Economy the Gas Exchange could have eased matters but current trading volumes cannot be said to yield a price discovery for the market. Return to old times or a New Abnormal segment and consequent impact on CNG The Exchange will need a much greater sales. Across the media and all communication number of sellers Over time, perhaps this At the same time, there has been a flurry platforms, we still see the terms ‘recovery’ will improve or some real “out of the of developments and activity in the Gas ‘figures inching back to previous levels’. box” thinking and “bull by the horns” sector. The Gas Exchange has commenced And this is across the segments. But a determination in implementing may be functioning and is reporting some trades – return to old ‘normal’ is very unlikely. We required --- perhaps the Government could though much more are needed. now possibly live in a whole new world allocate some gas to the Exchange (After Other developments which need mention with the pandemic possibly setting a new discussions with the upstream companies, are the new CNG Stations commissioned standard for the direction and the pace of Gas sellers and CGD companies) and and what is really noteworthy is that some change in the country - may be a “New catalyse trading. of the newer CGD entities have taken the Abnormal”. No mention of developments can be lead in this. It is not very likely that volumes complete without a mention of the USAID A couple of events happened will be affected in the CGD sector with document on Roadmap for Developments simultaneously in the Indian gas sector the addition of new geographical areas. of Downstream Natural Gas Markets doing However, additional GAs will most likely Domestic gas prices began to drop the rounds recently. be the key driver of gas consumption in the making it tough for E&P players to commit It is not something entirely new. The CGD sector in the long term. Public sector additional investments in the development prescription has been known for quite some oil-marketing companies (OMCs) like of gas assets; several international and time. Following the Roadmap in India Bharat Petroleum, Hindustan Petroleum, local majors announced cut in spending, would require several policy decisions at and Indian Oil may consider entering CNG however, it is advantage gas consumers. Govt. level from a future Energy Strategy retail distribution. Today the price is at a historic low of $1.79 point of view. That is currently (and repeated Alongside has been the opening up of per MMBtu. for quite some time) possible only if there LNG retail: Both the public and private After the historic drop in spot LNG price is an Energy Policy which clearly lists the sector entities would benefit from opening in April, there has been a steady rise in spot role of Natural Gas in Power Generation as up of retail LNG distribution with the oil LNG price touching $ 6.90 per MMBtu also a level playing field for Natural Gas as marketing companies best placed to take for December delivery. This is a quantum fuel and a ban on all polluting fuel across advantage of the new regulation quickly, jump of $1.10 per MMBtu within a week. the country. ---- Too much to wish for! May however, the challenge will come from the The drop in Brent crude as compared to be, but its about time the country decided OEMs and conversion markets for heavy last year has further helped in easing of the to take the problem head on in pursuit of duty vehicles. Immense opportunities exist long term contracted LNG to India. the 15% gas share in the energy pie within in LNG retailing both for on-road and off- After one of the strictest lockdowns, the next 10 years. the easing of gas price has helped revive road vehicles including marine application. consumption in India, especially in the There has been a lot of discussion Vivek Joshi power sector. Significant increase in about alternate fuels- hydrogen, HCNG, Executive Director, NGS consumption has been witnessed in the bio-gas etc: Bio-gas is being encouraged sector in the last few months despite a throughout the country by incentivizing slow down in the economy. There has been landfill projects for bio-methanation in Contents a increase of over 10% in the sector as urban areas. Several projects are already Editorial 1 compared to last year due to a favourable on-line while many more are being Gas Statistics - pricing regime. developed. Renewable methane will be an Domestic and International 3 All of this had a positive impact on option for natural gas in the future.. Changing World of LNG - the gas consumption despite the gloom, Gas Price continues to remain a Coronavirus Play 8 however, the growth in the CGD sector contentious issue. It is understood that the has been slow mainly due to the transport Petroleum Ministry is considering pegging News Briefs 13

Please send your comments to: Afsir Ahmad +919818763429 [email protected] Deepika Lal +91999394488 [email protected] WE ARE THE GREEN FUTURE. WE ARE MGL The foundation of future lies in the present. At present, Mahanagar Gas Limitied (MGL) is an organisation that reaches over 10 lakh families everyday through its ever expanding Piped Natural Gas (PNG) network. Simultaneously, it also fuels over 6 lakh vehicles with clean fuel - Compressed Natural Gas (CNG). This reach concludes into lesser pollution withevery progressing day.

L Gas Statistics - Domestic and International

Gas Production/Consumption/Imports (mmscmd)

Trend in Gas Production/Consumption/Imports (MMSCMD)

140.00 70.00

60.79 120.00 60.00 55.57 52.90 52.90 52.38 52.90 51.83 51.67 51.43 51.95 50.91 56.07 52.61 54.29 100.00 50.00 47.12 48.52

80.00 40.00

60.00 30.00 % 91.91 76.49 95.74 90.15 91.07 93.27 91.17 86.29 88.90 90.61 95.80 64.90 76.86 89.10 95.59 mmscmd 120.70 40.00 20.00

20.00 10.00 85.97 85.84 85.25 85.12 84.23 83.03 82.88 83.19 81.91 81.61 77.84 75.06 68.77 71.45 75.01 76.43

0.00 0.00 Jul-19 Apr-19 Apr-20 Oct-19 Feb-20 Jan-20 Jun-19 Jun-20 Mar-20 Sep-19 Dec-19 Nov-19 Aug-19 July-20 May-19 May-20 Net gas production (mmscmd) LNG imports (mmscmd) Import dependency (%)

Sector-wise gas consumption of domestic gas and RLNG (July 2020)

50.00 40.00 47.55 Total gas consumption (July 2020) : 142.42 mmscmd 45.00 The fertilizer, power, refinery 33.39 Total RLNG consumption : 83.87 mmscmd 35.00 sectors did well in July as sales 40.00 Total domestic gas consumption : 58.55 mmscmd picked up and was above last 30.00 years average daily consumption; 35.00 CGD sector continued to struggle. 25.00 30.00 Low domestic gas and LNG price 22.49 32.03

helped improve the PLF factor mmscmd 25.00 20.00 in the power sector. CGD sector 31.19 20.00 witnessed a huge drop from 20.87 14.45 16.87 15.00 % 20.58 11.85 an average of 25 MMSCMD in 15.00 16.35 11.53 16.42 10.00 2019-20 to 16 MMSCMD in July 6.30 20. Pandemic and the subsequent 10.00 17.74 6.42 8.97 9.03 lockdowns across the country had 5.00 5.00 8.32 a significant impact on the sector 10.00 7.84 11.15 2.84 0.65 especially the transport segment. 0.00 0.00 Fertiliser Power Refinery CGD Petrochemicals Others

Total gas consumption by sector (mmscmd) 47.55 32.03 20.58 16.42 8.97 16.87 Consumption of domestic gas (mmscmd) 16.35 20.87 2.84 10.00 0.65 7.84 Consumption of LNG (mmscmd) 31.19 11.16 17.74 6.42 8.32 9.03 Sector’s share in total gas consumption(%) 33.39 22.49 14.45 11.53 6.30 11.85

Trend in Consumption of Petroleum Products

In ‘000 MT Apr-19 Apr-20 % Growth may-19 may-20 % Growth Jun-19 Jun-20 % Growth Jul-19 Jul-20 % Growth Aug-19 Aug-20 % Growth LPG 1900 2113 11 2054 2296 12 1793 2071 16 2219 2266 2 2402 2275 -5 Naphtha 949 820 -14 795 1022 29 987 1160 17 1465 1277 -13 1420 1073 -24 MS 2459 973 -60 2737 1771 -35 2639 2282 -14 2523 2260 -10 2575 2381 -8 HSD 7323 3253 -56 7788 5494 -29 7451 6305 -15 6841 5511 -19 6117 4849 -21 FO & LSHS 499 293 -41 515 469 -9 476 501 5 568 494 -13 479 499 4 Petroleum coke 2254 779 -65 2135 2502 17 1480 1546 4 1495 1616 8 1783 1376 -23

Source: PPAC, NGS Research

GAS STATISTICS REPORT 3 Gas Statistics - Domestic and International

Gas - Price & Analytics Crude price (Indian basket) Domestic gas price ($/mmbtu)

10 80.00 9.32 65.50 9 8.43 70.00 61.73 62.54 64.31 8 7.67 60.00 7 6.61 6.78 59.35 59.70 54.63 6.3 50.00 44.19 5.56 5.61 40.63 6 5.3 4.66 40.00 5

$/Barrel 43.35 33.36 30.60 3.82 3.69 4.06 30.00 4 3.36 3.23 3.06 2.5 2.48 2.89 3.06 2.39 20.00 3 19.90 1.79 10.00 2 1 0.00 0 0 0 Apr- Oct 15- Apr- Oct 16- Apr- Oct 17- Apr- Oct 18- Apr- Oct 19- Apr- Oct 20 - Sep 15 Mar 16 Sep 16 Mar 17 Sep 17 Mar 18 Sep 18 Mar 19 Sep 19 Mar 20 Sep 20 Mar 21 Jul-20 Apr-20 Oct-19 Feb-20 Jan-20 Jun-20 Mar-20 Dec-19 Aug-20 Sep-19 Nov-19 Aug-19 May-20 Domestic gas price (GCV basis) Price cap for deepwater, ultra deepwater, high temp high pressure areas

Brent/ WTI/ Japan oil import price ($/barrrel) After falling to a historic low in March end, Brent has recovered and is 80 currently at a level of 70 $40-44 per barrel. The

average Indian basket $/Barrel 60 price too recovered from a low of $19.90 per barrel 50 in April to $44.19 per barrel in August. Demand 40 destruction across the globe due to lockdowns 30 impacted oil consumption. Coming winter Brent is 20 unlikely to pick up given the slow demand growth 10 in China. 0 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20

Brent ($/barrel) 59.04 62.83 59.71 63.21 67.31 63.65 55.66 32.01 18.38 29.38 40.27 43.24 44.74 WTI ($/barrel) 54.81 56.95 53.96 57.03 59.88 57.52 50.54 29.21 16.55 28.56 38.31 40.71 42.34 Japan oil import price ($/barrel) 67.39 64.3 65.03 64.94 67.24 70.33 70.63 62.16 42.21 24.96 24.55 32.70

International Gas/LNG prices ($/mmbtu)

10

9 Gas price at Henry Hub witnessed a steady increase 8 since April, however, it dropped 7 in September by 15 cents per MMBtu. Inventory and demand 6 levels played a role. On the north east Asian front, spot 5 price continued to improve, 4 however, it still remained extremely attractive vis-a-vis 3 long term LNG. Spot deliveries for October has improved 2 further and is currently at 1 around $4.80 per MMBtu.

0 Aug-19 Sep-19 oct-19 Nov-19 Dec-19 Jan-20 Feb-20 mar-20 Apr-20 may-20 Jun-20 Jul-20 Aug-20 sep-20 2.47 4.04 5.14 5.37 5.02 3.84 2.92 2.75 1.97 1.54 1.67 1.79 2.82 3.81 European spot Indicator 2.216 2.53 2.26 2.61 2.27 2 1.87 1.75 1.69 1.71 1.58 1.70 2.30 2.15 Henry Hub 8.65 9.02 8.98 9.12 9.21 9.31 8.86 7.55 5.91 6.11 6.82 7.10 7.28 7.03 East Asian Delivered LNG indicator 5.3 5.4 5.5 5.5 6.4 5.9 3.4 3.4 2.4 2.2 3.80 4.20 3.40 Japan LNG contract price

Source: NGS Research, PPAC, EIA, LNG Journal

4 GAS STATISTICS REPORT Gas Statistics - Domestic and International

CNG / PNG CGD Factsheet

The significant growth in the CGD infrastructure was apparent, Gas Consumption by CGD (July 2020) (mmscmd) 16.42 with a huge increase in the CNG retail stations as well as piped gas connections to the residential segment. July consumption No. of authorised GAs 230 is a poor representation of the CGD sector potential, the No. of CNG stations (1.08.2020) 2291 lockdowns played havoc with sales in the industrial and transport segments. Consumption is likely to pick up in the No. of CNG vehicles (million) (1.05.2020) 3.2 coming months. No. of PNG connections (million) (1.08.2020) 7.24

CNG Stations (as on 1.8.2020)

State Entity operating GA / City No. of CNG Stations Andhra Pradesh Bhagyanagar Gas, Godavari Gas, Megha Engineering Kakinada, Vijayawada, East Godavari district (excluding area already authorized), West Godavari, Krishna district (excluding area already authorized) 65 Assam Assam Gas Company Limited Upper Assam (covering Tinsukia, Dibrugarh, Sivasagar, Jorhat & Golaghat) 1 Bihar GAIL (India) Limited Patna 8 Chandigarh IndianOil-Adani Gas Private Limited Chandigarh (UT) and Panchkula (part), SAS Nagar (part) & Solan (part) 6 Dadar & Nagar Haveli Gujarat Gas Limited, IndianOil-Adani Gas Private Limited UT of Dadra & Nagar Haveli & Daman & Diu 7 Delhi / NCR (inc Indraprastha Gas Limited NCT of Delhi 430 Noida/Ghaziabad) Goa Goa Natural Gas Private Limited North Goa 2 Gujarat Adani Gas Limited , Vadodara Gas Limited , Charotar Gas Ahmedabad City and Daskroi Area, Porbandar, Vadodara, Anand area including Sahakari Mandali Limited, Gujarat Gas Limited, Kanjari & Vadtal Villages (in Kheda District), Bhavnagar, Jamnagar, Kutch West, Hindustan Petroleum Corporation Limited, IRM Energy Amreli, Dahej Vagra Taluka, Dahod, Anand (excluding areas already authorized), Private Limited, Sabarmati Gas Limited Panchmahal, Surat, Bharuch, Ankleshwar , Nadiad, Navsari (part), Rajkot, Surendranagar (part), Hazira, Valsad (part), Narmada (Rajpipla), Gandhinagar (excluding areas already authorized), Ahmedabad (excluding areas already authorized), Ahmedabad CNG Stations, Banaskantha , Patan, Gandhinagar, Mehsana, Sabarkantha, Kheda (Except areas already authorized), Morbi (except area already authorized) & Mahisagar District GA, Surendranagar (Except areas already authorized), Barwala & Ranpur Talukas, Navsari (Except areas already authorized), Surat (Except areas already authorized), Tapi (Except areas already authorized) & the Dangs 665 Haryana Adani Gas Limited, GAIL Gas Limited, Haryana City Gas Nuh & Palwal, Faridabad, Sonipat (part), Gurugram, Ambala and Kurukshetra, Distribution Limited, HPOIL Gas Private Limited, IndianOil- Panipat, Rewari, Karnal, Bhiwani, Charkhi Dadri & Mahendragarh 85 Adani Gas Private Limited, Indraprastha Gas Limited Jharkhand GAIL (India) Limited Ranchi, East Singhbhum 8 Karnataka GAIL Gas Limited, IndianOil-Adani Gas Private Limited, Bengaluru Rural and Urban, Dharwad, Tumkur, Belgaum 31 Megha Engineering & Infrastructure Limited Kerala IndianOil-Adani Gas Private Limited Ernakulam 7 M.P. Think Gas Bhopal Private Limited, Aavantika Gas Limited, Bhopal & Rajgarh GA, Indore (including Ujjain City) (part), Gwalior (part), GAIL Gas Limited, Indian Oil Corporation Limited, Dewas (part), Vijaypur CNG Station, Dhar 67 Naveriya Gas Private Limited Maharashtra Gujarat Gas Limited, HPOIL Gas Private Limited, Palghar and Thane Rural, Kolhapur, Raigarh (excluding areas already authorized), Mahanagar Gas Limited, Maharashtra Natural Gas Limited, Mumbai & Greater Mumbai, Thane Urban and adjoining municipalities, Pune City Mahesh Gas Limited, Unison Enviro Private Limited including PimpriChiechwad & adjoining contiguous areas Hinjewadi, Chakan, Talegaon, Pune (excluding areas already authorized), Ratnagiri, Sindhudurg 388 Odisha GAIL (India) Limited, GAIL Gas Limited Khordha, Cuttack, Sundargarh & Jharsuguda, Ganjam, Nayagarh & Puri 19 Punjab Gujarat State Petronet Limited, IRM Energy Private Limited, Amritsar, Fatehgarh Sahib, Ludhiana (Except area already authorized), Barnala & Think Gas Ludhiana Private Limited, Torrent Gas Private Moga, Jalandhar (Except areas already authorized), Kapurthala & SBS Nagar, Limited, Bharat Gas Resources Limited SAS Nagar (Except areas already authorized), Patiala & Sangrur, Rupnagar, Bhatinda 54 Rajasthan Rajasthan State Gas Limited, Torrent Gas Private Limited Kota (part), Neemrana & Kukas CNG stations, Kota (except area already authorized), Baran & Chittontarh (Only Rawatbhata Taluka) 28 Telangana Bhagyanagar Gas Limited, Torrent Gas Private Limited Hyderabad, Medak, Siddipet & Sangareddy 57 Tripura Tripura Natural Gas Company Limited Agartala, West Tripura (Except areas already authorized) 10 U.P. Adani Gas Limited, Central UP Gas Limited, GAIL (India) Khurja, Jhansi (part), Bareilly (part), Kanpur (part), Varanasi, Meerut (part), Limited, GAIL Gas Limited, Green Gas Limited, Firozabad (Taj Trapezium Zone), Agra, Lucknow, Bulandshahr (part), Allahabad IndianOilAdani Gas Private Limited, Indraprastha Gas (part), Meerut (Except areas already authorized), Muzaffarnagar & Shamli, Gautam Limited, Sanwariya Gas, Torrent Gas Private Limited, Budh Nagar, Ghaziabad, Mathura (part), Moradabad (part), Auraiya, Kanpur Dehat & Bagpat Green Energy Pvt. Ltd. Etawah, Gorakhpur, Sant Kabir Nagar & Kushinagar, Moradabad (Except areas already authorized), Bagpat 339 UT of Daman & Diu IOC-Adani Gas Daman & Diu 4 Uttarakhand IndianOil-Adani Gas Private Limited, Haridwar Natural Gas Private Limited Udham Singh Nagar, Haridwar 6 West Bengal Great Eastern Energy Corporation Limited CNG stations at Asansol,Raniganj, Kultora, Durgapur 4 All India 2291 Source: PPAC / NGS Research

GAS STATISTICS REPORT 5 Gas Statistics - Domestic and International

PNG / LNG / PIPELINES PNG Connections (as on 1.8.2020) Total State Entity operating GA/City Domestic Commercial Industrial Andhra Pradesh Bhagyanagar Gas, Godavari Gas, Megha Engineering Kakinada, Vijayawada, East Godavari district (excluding area already authorized), West Godavari, Krishna district (excluding area already authorized) 131669 208 18 Assam Assam Gas Company Limited Upper Assam (covering Tinsukia, Dibrugarh, Sivasagar, Jorhat & Golaghat) 35075 1144 404 Bihar GAIL (India) Limited Patna 13280 8 0 Chandigarh, Haryana, IndianOil-Adani Gas Private Limited Chandigarh (UT) and Panchkula (part), SAS Nagar (part) & Solan (part) 110762 24 2 Punjab & Himachal Pradesh Dadar & Nagar Haveli Gujarat Gas Limited UT of Dadra & Nagar Haveli 6957 60 54 Delhi / NCR (inc Indraprastha Gas Limited NCT of Delhi 921700 2382 1392 Noida/Ghaziabad) Goa Goa Natural Gas Private Limited North Goa 3927 0 2 Gujarat Adani Gas Limited , Vadodara Gas Limited , Ahmedabad City and Daskroi Area, Porbandar, Vadodara, Anand area including Charotar Gas Sahakari Mandali Limited, Kanjari & Vadtal Villages (in Kheda District), Bhavnagar, Jamnagar, Kutch West, Gujarat Gas Limited, Hindustan Petroleum Amreli, Dahej Vagra Taluka, Dahod, Anand (excluding areas already authorized), Corporation Limited, IRM Energy Private Limited, Panchmahal, Surat, Bharuch, Ankleshwar , Nadiad, Navsari (part), Rajkot, Sabarmati Gas Limited Surendranagar (part), Hazira, Valsad (part), Narmada (Rajpipla), Gandhinagar (excluding areas already authorized), Ahmedabad (excluding areas already 2760892 23091 5591 authorized), Ahmedabad CNG Stations, Banaskantha , Patan, Gandhinagar, Mehsana, Sabarkantha, Kheda (Except areas already authorized), Morbi (except area already authorized) & Mahisagar District GA, Surendranagar (Except areas already authorized), Barwala & Ranpur Talukas, Navsari (Except areas already authorized), Surat (Except areas already authorized), Tapi (Except areas already authorized) & the Dangs Haryana Adani Gas Ltd, GAIL Gas Limited, Haryana City Gas Nuh & Palwal, Faridabad, Sonipat (part), Gurugram, Ambala and Kurukshetra, Distribution Ltd, HPOIL Gas Private Ltd, IndianOil- Panipat, Rewari, Karnal, Bhiwani, Charkhi Dadri & Mahendragarh 117667 196 570 Adani Gas Private Limited, Indraprastha Gas Limited Jharkhand GAIL (India) Limited Ranchi, East Singhbhum 14283 0 0 Karnataka GAIL Gas Ltd, IndianOil-Adani Gas Private Limited, Bengaluru Rural and Urban, Dharwad, Tumkur, Belgaum 182357 303 156 Megha Engineering & Infrastructure Limited Kerala IndianOil-Adani Gas Private Limited Ernakulam 41688 8 7 M.P. Think Gas Bhopal Private Limited, Aavantika Gas Bhopal & Rajgarh GA, Indore (including Ujjain City) (part), Gwalior (part), Limited, GAIL Gas Limited, Indian Oil Corporation Dewas (part), Vijaypur CNG Station, Dhar 86419 167 254 Limited, Naveriya Gas Private Limited Maharashtra Gujarat Gas Limited, HPOIL Gas Private Limited, Palghar and Thane Rural, Kolhapur, Raigarh (excluding areas already authorized), Mahanagar Gas Limited, Maharashtra Natural Gas Mumbai & Greater Mumbai, Thane Urban and adjoining municipalities, Pune City Limited, Mahesh Gas Limited, Unison Enviro including PimpriChiechwad & adjoining contiguous areas Hinjewadi, Chakan, 1774790 4326 321 Private Limited Talegaon, Pune (excluding areas already authorized), Ratnagiri, Sindhudurg Odisha GAIL (India) Limited, GAIL Gas Limited Khordha, Cuttack, Sundargarh & Jharsuguda, Ganjam, Nayagarh & Puri 10036 0 0 Punjab Gujarat State Petronet Ltd, IRM Energy Pvt Ltd, Amritsar, Fatehgarh Sahib, Ludhiana (Except area already authorized), Barnala Think Gas Ludhiana Private Limited, Torrent Gas & Moga, Jalandhar (Except areas already authorized), Kapurthala & SBS Nagar, Private Limited, Bharat Gas Resources Limited SAS Nagar (Except areas already authorized), Patiala & Sangrur, Rupnagar, Bhatinda 7528 28 24 Rajasthan Rajasthan State Gas Limited, Torrent Gas Private Kota (part), Neemrana & Kukas CNG stations, Kota (except area already Limited authorized), Baran & Chittontarh (Only Rawatbhata Taluka) 16652 17 46 Telangana Bhagyanagar Gas Ltd, Torrent Gas Private Ltd Hyderabad, Medak, Siddipet & Sangareddy 84687 27 51 Tripura Tripura Natural Gas Company Limited Agartala, West Tripura (Except areas already authorized) 45725 430 51 U.P. Adani Gas Limited, Central UP Gas Limited, GAIL Khurja, Jhansi (part), Bareilly (part), Kanpur (part), Varanasi, Meerut (part), (India) Limited, GAIL Gas Limited, Green Gas Ltd, Firozabad (Taj Trapezium Zone), Agra, Lucknow, Bulandshahr (part), Allahabad IndianOilAdani Gas Private Limited, Indraprastha (part), Meerut (Except areas already authorized), Muzaffarnagar & Shamli, Gas Limited, Sanwariya Gas, Torrent Gas Private Gautam Budh Nagar, Ghaziabad, Mathura (part), Moradabad (part), Auraiya, Limited, Bagpat Green Energy Pvt. Ltd. Kanpur Dehat & Etawah, Gorakhpur, Sant Kabir Nagar & Kushinagar, Moradabad (Except areas already authorized), Bagpat 803462 1463 2125 UT of Daman & Diu IOC-Adani Gas Daman & Diu 3479 25 20 Uttarakhand IndianOil-Adani Gas Private Limited, Haridwar Natural Gas Private Limited Udham Singh Nagar, Haridwar 20463 25 27 All India 7193498 33932 11115

Existing LNG terminals Gas pipeline network (as on 1.8. 2020) Location Promoters Capacity (mmtpa) Cap. Utilisation Company length design capacity (mmscmd) on 1.8.20 Apri-20 to Jun 20 (P)(%) GAIL 11,656 230 Dahej Petronet LNG 17.5 80.7 PIL 1784 71 Hazira Shell Energy 5 87.8 GSPL 2696 43 Dabhol* Konkan LNG 5 39.3 Kochi Petronet LNG 5 14.3 ARN^ 215 6 Mundra GSPC LNG 5 29.3 IOC 140 10 Ennore IOC 5 8 Total 16,491 360 Total capacity 42.5 Source: PPAC/NGS Research, Includes Mundra terminal Source: PPAC * to be increased to 5 mmtpa with breakwater ^excludes CGD pipeline network

6 GAS STATISTICS REPORT GAS STATISTICS REPORT 7 COVER STORY Changing World of LNG –

CoronavirusBy Afsir Ahmad play

ockdown measures and negative econom- in the last week of March in India, prices took a turn for ic outlook stemming from the coronavirus the worse after top buyers in India declared force majeure pandemic took its toll on the global econo- on LNG imports. Together with a drop in demand from my including Asia, resulting in the second Europe, which witnessed some of the highest number of consecutive year of sluggish LNG demand coronavirus cases in April-May, caused LNG supply to Lgrowth. Japan, the world’s largest LNG importer, saw LNG swell globally. Consequently the Asian spot prices sank demand decline in the first quarter of this year, and imports further due to dampened demand. The situation also forced continued to fall through April as the coronavirus outbreak buyers to push back cargo deliveries. LNG trade was began to spread. Lockdowns across Europe were as severe severely impacted. as Asia, but the total impact on gas demand was propor- tionally less due to the smaller share of gas used in the Record Low Price industrial sector, the resilience of gas use in the power In an unusual move, Royal Dutch Shell issued a five- sector and the largely unaffected demand from residen- year strip tender offering four cargoes a year from 2021 tial use. Although Europe’s total gas demand was down in onwards with an option to extend for another five years. comparison to last year, however, reductions in domesti- Prices for spot LNG cargoes imported into Japan, the cally produced gas and Russian pipeline imports created world’s biggest buyer of the fuel, fell in April to their more room for LNG to be absorbed. The single largest lowest since the country’s trade ministry started compiling fundamental difference from 2019 was Europe’s vast gas data in 2014. Demand for gas too started to erode because inventories. The poor margins and consequent drop in off- of the lockdowns due to coronavirus pandemic. The take resulted in the under-utilisation of US terminals which outbreak turned markets on their heads, with U.S. oil prices continued in the summer months. Demand continued slipping into negative territory in end March. Industrial to drop, the global LNG industry faced its first seasonal activity around the world slowed, as demand continued to demand contraction since 2012. In general, a return to be depressed, Asian spot LNG prices fell to a record low stronger growth is not expected until mid-2021. of below $2/MMBtu, with the average LNG price for June delivery into northeast Asia estimated at a new record low Pandemic Impact on demand of around $1.85 per MMBtu. Wide scale cancellation of Whilst LNG supply grew globally through the first three The LNG market showed further weakness from April as Asian months of 2020; however, around the same time demand spot LNG prices fell to a record low as a result of lockdowns started to react to the changing market conditions, much and lower industrial output. The average LNG price for May before COVID 19 was declared a pandemic by World delivery into northeast Asia fell to $2.30 per MMBtu below the Health Organization. The LNG market showed further previous low recorded in February when demand dropped in weakness from April as Asian spot LNG prices fell to a China, where the coronavirus first emerged. With the lockdown record low as a result of lockdowns and lower industrial in the last week of March in India, prices took a turn for the worse after top buyers in India declared force majeure on LNG output. The average LNG price for May delivery into imports. Together with a drop in demand from Europe, which northeast Asia fell to $2.30 per MMBtu below the previous witnessed some of the highest number of coronavirus cases in low recorded in February when demand dropped in China, April-May, caused LNG supply to swell globally. where the coronavirus first emerged. With the lockdown

8 GAS STATISTICS REPORT COVER STORY

LNG Exports LNG Imports 120.0 600.0 103.6 105.6 107.3 104.9 107.1 103.6 104.7 485.1 100.0 500.0 91.8 430.6 76.6 358.3 393.3 80.0 400.0 333.6 337.1 334.1 60.4 284.6 322.7 60.0 300.0 253.9 47.5 245.2 238.5 39.9 39.4 200.0 40.0 32.0 28.6 Billion cubic metres 24.9 Billion cubic metres 119.8 14.6 15.4 71.3 20.0 100.0 13.6 14.6 17.1 52.1 56.0 56.4 64.7 0.4 0.7 4.0 – – 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 US Russia Australia Qatar Europe Asia Pacific World cargoes from USA was witnessed which is usually the The average LNG price for July delivery into northeast cheapest source for gas. The average LNG price for June Asia increased to between $1.85 and $2.00 per MMBtu. delivery was almost half that for June a year ago. The low prices forced buyers of U.S. LNG to cancel Late April and early May, while some countries were up to 45 cargoes for July loading; this was after at least starting to ease lockdowns, secondary outbreaks in South 20 June cargoes being cancelled in the previous month. Korea and China raised fears that the pandemic may be Since demand from some Asian buyers was recovering, protracted, putting further pressure on commodity prices. buyers in Asia were taking advantage of low prices and And as lockdown restrictions reduced industrial demand were looking for cargoes for delivery from July onwards. prompted buyers to reschedule long-term LNG deliveries, The hot weather in the third quarter drove demand. Prices sellers were left with excess volumes, flooding the market. stayed stable for four continuous weeks with an average April also witnessed the worst week for producers/sellers of $2.20per MMBtu. Quite a few of the demand drivers of LNG; a cargo from Australia was available for loading came from the Turkey, Pakistan, Argentina and India. In in May at $1.70-$1.75 per MMBtu on a delivered ex- the first week of August, Asian spot LNG prices jumped ship basis. Nigeria Liquefied Natural Gas awarded a to a more than four-month high on the back of firmer gas tender for two June cargoes to U.S. producer Cheniere prices in Europe and the United States and with the onset and German’s Uniper; the prices were between $1.10 and of warmer-than-usual weather in Asia. With an improving $1.50 per MMBtu on an FOB basis. Global demand for market, Asian spot LNG prices rose to more than a six- LNG remained low, with only few buyers seeking cargoes. month high. Consequent to supply concerns, the average Europe became the epicentre of vessels used as floating LNG price for September delivery into northeast Asia storage as the coronavirus pandemic severely disrupted gas went up substantially to between $3.60 and $3.80 per demand, leading to delays in tanker discharges. Tankers MMBtu and for October delivery price was between $3.80 started to pile up off the shores of Europe. Asian spot prices and $4.00 per MMBtu. This was for the first time since for LNG were dragged further down by a sharp drop in end-January when prices increased to levels close to $4.00 European gas prices and global oversupply. The Dutch per MMBtu. Asian spot LNG prices jumped to a multi- market dropped by almost 30%, trading close to $1.00 month high in late August, although they eased slightly per MMBtu. The low price globally forced buyers of U.S. towards the end of the week on expectations of more LNG to cancel up to 45 cargoes for July loading as delivery supply from the United States. The average LNG price for became unprofitable, after at least 20 June cargoes were October delivery into northeast Asia rose to about $4.10 cancelled last month. However, demand from some Asian per MMBtu. buyers began to see some recovery. Supply side Issues Signs of Recovery The facility at Australia’s second-largest LNG plant was End May witnessed a slight recovery in Asian spot shut since May. In the United States, hurricane Laura halted prices amid easing of lockdown measures in some loadings at export facilities at Sabine Pass, Cameron and countries and expectations of reduced exports from the Louisiana. And the world’s largest floating LNG factory, United States this month. The average LNG price for July Prelude of Shell, continued to be shut since February. delivery into northeast Asia increased to an estimated at The recovery in prices since June of this year seems to $2.10 per MMBtu. There were also signs that Indian LNG be largely built on the idling of some LNG output in the demand was picking up as the government eased lockdown United States, which cut the flow of U.S cargoes to Asia. measures. Moving into summer, China faced with the On the Australian front, there have also been maintenance- daunting task of economic recovery. related shutdowns. In Gorgon, one of the trains had to be

GAS STATISTICS REPORT 9 COVER STORY

India’s imports were 2.19 MMT in August, up from 1.88 Asian LNG Imports MMT a year earlier, while its July purchases were 2.42 MMT, The Asian Refinitiv data showed 161.8 MMT of LNG was up from 2.04 MMT. delivered in the first eight months of 2020, up slightly on Asia’s biggest LNG buyer, Japan, has been relatively the 159.6 MMT for the same period in 2019. Since the price steady in its imports, with Refinitiv data showing 6.26 MMT recovery started from June onwards, it’s worth looking at in August, virtually unchanged from 6.29 MMT a year earlier, whether imports increased in July and August, and here the and July’s 6.0 MMT down a tad from 6.4 MMT in July last evidence is not convincing. year. Asia’s LNG imports in August were 19.78 MMT, down from South Korea, the third-ranked buyer, saw a marked drop in 20.34 million in the same month last year, while July’s were August cargoes to 2.20 MMT from 3.2 MMT a year ago, while 19.33 million, down from 20.29 million in July 2019. July imports were 2.21 MMT, down from 2.96 MMT in the However, two of Asia’s main buyers that purchase a same month in 2019. greater percentage of their cargoes on a spot basis have been However, South Korea’s January-August imports are only increasing imports. China imported 5.91 MMT in August, up slightly down at 25.9 MMT from 26.1 MMT in the first eight from 5.14 MMT in the same month last year, while its July months of 2019. imports were 5.27 MMT, up from 4.63 MMT in July 2019. Source: LNG Global

shutdown. Supply from Australia and USA was severely export plant in Mexico, developed by US-based Sempra impacted, and with an encouraging outlook from buyers, Energy . The outlook elsewhere in North America is not the Asian spot LNG prices rose. The average LNG price at all encouraging. In 2019 over 21 MMTPA of new US for October delivery into northeast Asia increased to about LNG capacity came on-stream and this year more than 16 $4.5 per MMBtu in the week ended September 4, an eight- MMTPA, the huge additional capacity contributed to the month high and some 143% above the record low of $1.85, global glut. We also saw Shell exiting the 16.45 MMTPA reached in two separate weeks at the beginning and end of Lake Charles project in the USA. May. Hope for the Future Asian Markets outperformed: So far COVID-19 pandemic is seen as a short term In Asia, despite the pandemic, volumes have held setback to the LNG demand. The fundamentals of the up, according to Refinitiv data, Asia’s imports in the long term demand remains strong supported by a growing first eight months of 2020 was 161.8 MMT which was population and energy demand. The economic growth in slightly up from 159.6 MMT for the same period last year. Asian developing economies is expected to see a steady However, the modest 1.4% rise in the first eight months increase in demand for LNG in the coming several decades. of 2020 indicates that demand was unlikely to have been On the supply side, US LNG exports have begun to come the major driver of spot LNG’s volatile price movement, on line and continue to increase. The coming winter season rather supply factors too have been driving prices. The (2020-21) could see a modest improvement in global LNG commissioning of new LNG trains in Australia, the United demand compared to the previous winter season. However, States and elsewhere had pushed the market into a supply the possibility of a second wave of the pandemic could surplus in 2019, and the coronavirus pandemic clearly dent the gas demand again. destroyed the hopes of a rapid demand growth. With the world seeking cleaner energy sources to reduce pollution and CO2 emissions, gas and LNG are expected to Financing of new projects – provide the impetus for a cleaner and clearer environment. A victim of the Pandemic LNG is and will remain a high-growth industry based on a After the COVID-19 pandemic drove down energy growing economy worldwide driven particularly by Asia. demand and knocked prices to all-time lows, it became The LNG industry is forecasted to grow in the next two difficult to procure financing for new projects. Weare decades. As the demand for natural gas grows and more yet to see financing of new LNG liquefaction approved LNG comes on-stream, traditional LNG trade flows and this year for the first time in at least two decades. In pricing will continue to be challenged. More importantly, stark contrast to last year’s record level of approvals the increasing appetite for spot LNG and transitions in for LNG production plants, 2020’s dramatic oil and gas pricing structures are likely to have significant positive price drop forced companies to delay decisions on new impact on global LNG markets. projects. However, there is still hope that one or two LNG Acknowledgements: export projects may get the final investment decisions 1. LNG Global/RefinitivData (FIDs). Given the current scenario, the only project with 2. energy.economictimes.indiatimes.com a chance of receiving an FID this year is the Costa Azul 3. www.hellenicshippingnews.com

10 GAS STATISTICS REPORT NEWS BRIEF NATIONAL NEWS

City Gas IRF urges India to establish technical requirements for retro-fitment of CNG CNG vehicle drive hits bumpy road Distribution kits: in Kochi: 56 New CNG stations opened: Out of over 1.8 million CNG light The Motor Vehicles Department The CNG stations are located in 13 vehicles which includes passenger statistics shows only 0.21 per cent states and one UT and most (17) are vehicles and light commercial vehicles of the total vehicles registered this owned by IndianOil-Adani Gas, fol- plying on the roads today, 60-65 per year opting for CNG-equipped in lowed by 10 outlets operated by Adani cent are retrofitted in the aftermarket. the state. Gas. IOCL and HPCL will be running International Road Federation (IRF), a As many 6 CNG stations each. In the last six global body dedicated to road safety, as 3,59,635 years, the number of CNG stations has has urged the Indian government to vehicles gone up from 947 to over 2,300; the adopt “technical requirements” for have been government aims to have 10,000 CNG retro-fitment of CNG kits in cars. . registered stations in the next five years. in the state in 2020, of which 779 Centre calls on cities to deliver were CNG-equipped. The figures Maharashtra: Digging norms eased on clean air goals in next three were 9,12,676 and 4,066 last year for gas pipelines along roads: years before the 2024 deadline for and 10,48,780 and 1,822 the year Digging has been eased for the national clean air programme before last. underground CNG, PNG and (NCAP): slurry pipelines along the roads. States and cities should try to MNGL’s green fuel project a hit in PNG/CNG and slurry pipelines achieve the target of reducing par- Nashik city: have also been included in the list ticulate matter (PM) concentra- Over 15,000 households in the city of the Forest (Conservation) Act, tions in non-attainment cities by have shown interest in getting piped 1980, and now they do not need up to 30% by 2024 over 2017 an- natural gas for their cooking needs. The to get separate clearances and nual average levels. There are 122 company is presently concentrating follow compensatory afforestation non-attainment cities out of which in localities such as Gangapur Road, norms. Instead, in case laying such 48 cities exceed the PM standard by Indiranagar, Rajiv Nagar, Prashant pipelines involves felling of any 100% and 35 cities by 50%. Nagar, etc. to create infrastructure trees, the user agency will have to plant 10 trees for each tree marked for removal in consultation with the Electric Mobility & Bio- Methane local forest department. 100% adoption of electric ride-hailing cars in India by 2030 can cut 12 Government mulls installing EV PNGRB issues fresh force majeure million tons of CO2 emissions a year: charging kiosks at around 69000 guidelines for city gas operators: Report: This could avoid consumption petrol pumps in the country: The guidelines came after a nationwide of 11 billion litres of fuel a year, According to news reports, the lockdown to contain the spread of according to a report launched by government is mulling setting COVID-19 from March 25 and state- the World Business Council for up at least one electric vehicle level lockdowns since June hampered Sustainable Development (WBCSD). charging kiosk each at nearly city gas projects. Following this, piped 69,000 petrol pumps across the gas suppliers are likely to save on GAIL eyes compressed biogas in country to induce people to go penalties for work delays triggered by strategic push beyond natural gas: for electric mobility. Besides, the pandemic. GAIL is looking to explore the government is also thinking opportunities in the compressed biogas of making it compulsory to sector, as it steps up efforts to expand install EV charging kiosks at all the business beyond natural gas, part Company-Owned, Company- of a push to embrace cleaner forms Operated (COCO) petrol pumps of energy. The state-run company of state refiners. recently signed an agreement with Carbon Clean Solutions Ltd.s.

GAS STATISTICS REPORT 11 NEWS BRIEF

Govt to focus on Indian cos for electric Delhi EV Policy 2020: bus tender: IOC, NTPC and SDMC inks MoU for Delhi approved Delhi Electric Vehicle The government would concentrate on waste-to-energy plant in Delhi: Policy 2020 with an objective to local companies for supplying and run- Under the MoU, IOC, SDMC (South establish it as the EV capital of India ning electric buses in the country. Out Delhi Municipal Corporation) and accelerate the pace of adoption of a total of 5,000 units tenders floated and NTPC will come together to across vehicle segments, especially by the government, the government develop a demonstration waste- in the mass category of two-wheelers, has received bids for around 2,500 to-energy plant at Okhla landfill public/shared transport vehicles and electric buses. At present, the electric site in Delhi, using gasification good carriers. The policy will remain bus segment of India is highly domi- technology. The plant will process valid for a period of three years. nated by foreign companies, particu- 17,500 tpa of Refuse Derived Fuel larly the Chinese players such as PMI (RDF) produced from combustible UP leads in setting up biogas plants: Electro Mobility Solutions and BYD. components of Municipal Waste to In the biogas plants being set up, 75 generate syngas which will in turn are being set up in Maharashtra, 59 EESL to source 250 electric vehicles be used to generate electricity. in Haryana, 35 in Andhra Pradesh, from Tata Motors, Hyundai: 24 in Punjab, and seven in Delhi. The EESL will procure Tata Nexon at Rs E-vehicle sales in Mumbai rise by 14.86 lakh each, Rs 13,000 cheaper 1,360% in 3 years, most for bikes: than its ex-showroom price of Rs The number of electric vehicles in 14.99 lakh, whereas Hyundai Kona Mumbai is miniscule, compared to will be procured at an 11 per cent petrol/diesel’s 11 lakh cars and 24 lower price band of Rs 21.36 lakh and lakh bikes. Over three years, electric government has issued 515 letters of with a standard three-year warranty. vehicle registrations grew by 407% in intent so far for setting up compressed These electric vehicles will replace Maharashtra and 1,360% in Mumbai. biogas (CBG) plants across the country the existing fleet of petrol and diesel Latest transport department statistics with a bulk of them - 126 - in Uttar vehicles of the central and state show that from 1,459 electric cars and Pradesh, according to official data. governments. scooters registered in 2017-18 in the The estimated cost for the 515 plants state, the figure rose to 7,400 in 2019- is about Rs 18,000 crore. India’s first lithium-sulphur battery 20. The figure jumped from 46 to 672 technology introduced for EVs: in Mumbai. Nitin Gadkari calls for modernising Shiv Nadar University, research- public transport, increasing use of focused university and an Institution of Suzuki, Toshiba, Denso EV battery biofuels: Eminence (IoE) introduced Lithium- plans go on the back burner due to the Road transport minister Nitin Gadkari Sulfur (Li-S) battery technology. The coronavirus pandemic: said there is a need to modernise the research aims to assist in the production The India joint venture of Suzuki public transport fleet and promote use of more cost-effective, safer, more Motor, Toshiba and Denso is likely to of green fuel like bio-CNG, ethanol, energy-efficient, and environment- put on hold plans for a second phase methanol as well as electricity. friendly Li-S batteries, as a viable of its project to manufacture batteries alternative to Lithium-ion batteries. for electric vehicles, even as the work Banas Dairy’s first bio-CNG outlet Li-S battery technology will be on the first phase is currently behind opened: schedule, people in the know said. The significantly cheaper and sustainable, Palanpur-based Banas Dairy opened joint venture, Automotive Electronics while offering up to three times higher its first bio-CNG refuelling outlet, Power (AEPPL), is going slow on the energy density with intrinsic flame- after it began generating bio-CNG second phase. retardant properties. from dung. The dairy has begun selling Hyderabad based EV startup launches electric bike Atum 1.0 at Rs 50,000: this CNG at Rs 50 a kg, lower than the A Hyderabad-based electric vehicles start-up, Atumobile prevailing market rate for the fuel. The Pvt Ltd has launched Atum 1.0, a new generation electric dairy collects over 40 tonnes of dung bike at a base price of Rs 50,000. The cost-effective café- every day from around 250 farms in 12 racer styled electric bike is available across India through villages. Farmers are paid one rupee Atumobile’s online portal. The bike consumes around 1 for every kilo of dung and the system unit per charge, which translates to Rs. 7-10 per day (for 100 km) as compared of payment is the same as that for milk to the traditional ICE bikes, which cost almost Rs. 80-100 a day (for 100 km). - money is credited into their accounts every fortnight.

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sector of the country are increasing Gas/Pipelines/ Company News their exposure in digital technology to sustain operations in COVID-19 Cost rationalisation: PNGRB set to the PNGRB proposal to rationalise time. GAIL is now in the process of release framework for unified gas transport tariffs on integrated gas implementing a 5000 km long pipeline transport tariff: pipeline networks such as those of in which every 200 km is being GAIL and Gujarat State Petronet Ltd, monitored individually by digital pointing out that the move to reduce technology. tariffs for customers further away from the source of gas would lead to Kakinada: NGT appoints panel to cross-subsidisation with customers check ONGC, GAIL pollution: near sources of gas having to pay The National Green Tribunal (NGT) more for in gas transport costs. has appointed a joint committee to ascertain air, sound, soil and water PNGRB is set to release a unified gas Energy E&P majors increasing use of pollution caused on account of the transport tariff framework to reduce digital technology in COVID time: oil and gas explorations of GAIL and the cost of transportation of gas. Major exploration and production ONGC along the Krishna – Godavari Many industry players had opposed (E&P) companies in the oil and gas Basin. Policy Matters/Gas Pricing/Others

India’s oil demand expected to and will contribute to ISA’s corpus be the worst hit among emerging fund towards focusing more on green India steps on gas as coal use for economies: energy investments going forward. power generation slows: JY Lim, S&P Global Platts: India’s Indian power plants used the most oil demand was down year-on-year PNGRB draft regulation caps gas in at least 3-1/2 years in the by 2.1 million b/d in April, and then individual stake in gas exchange to June quarter, as operators along improved in May and June, but still 15%: the west coast snapped up cheap down year-on-year by 1 million No shareholder can have more LNG imports that have become b/d and 335,000 b/d, respectively. than 15% stake in a natural gas competitive against coal. Power In July, demand dropped further exchange, as per the draft regulations producers say the trend is likely by 515,000 b/d year on year, by PNGRB. For a member of the to continue, providing a bright derailed by localized lockdowns exchange, the shareholding has been spot for LNG sellers as demand and flooding in some parts of the restricted to 5% of the equity share elsewhere falls due to a global country due to heavy monsoon capital, as per the draft, which caps economic slowdown. rains. the aggregate shareholding at 49% for all members. At least 51% equity Oil and natural gas PSUs to capital of an authorised clearing Gas producers seek pricing formula contribute to global solar fund: corporation shall always be held by review: Five companies ONGC,IOCL, one or more gas exchanges. But no Domestic gas prices are set to fall BPCL, HPCL and GAIL will clearing corporation can hold any significantly from October because become corporate partners of the stake or interest of any nature in the of a slump in global prices, raising a International Solar Alliance (ISA) gas exchange, as per the draft. question mark on the pricing formula as it challenges the operational viability of domestic oil firms. It NGT asks CPCB to ensure states, UTs is understood that gas producers ban use of petcoke, furnace oil: have sought a review of the pricing The National Green Tribunal (NGT) formula. The domestic prices are set has asked the Central Pollution to fall to about $1.80 per MMBtu Control Board (CPCB) to ensure that from October 1 for the next six states and UTs ban the use of petcoke months, the fourth straight cut. and furnace oil as fuel.

GAS STATISTICS REPORT 13 NEWS BRIEF

LNG Development and Shipping

Odisha’s Gopalpur port plans LNG down from over 88% in the previous GAIL issues swap tender to buy and terminal, petrochemical industries: month. Post first week of June when sell LNG in 2022: The Gopalpur Port Limited (GPL) in the lockdown was relaxed, the demand GAIL has issued a swap tender of- Odisha has planned to set up a LNG of RLNG has seen gradual recovery fering LNG cargoes for loading terminal and an investment of Rs and since then, PLL’s Dahej terminal in the US and seeking cargoes for 2,000 crore for setting up fertiliser is operating at its full capacity of 17.5 delivery into India, in 2022. It has and petrochemical industries. MMTPA. offered to swap one cargo a month in 2022 in a tender that closed in Petronet announced that it invoked Petronet renews investment deal with July. The cargoes it is offering will force majeure on 9 cargoes after Tellurian: load from the Sabine Pass plant on COVID-19 lockdown: Petronet LNG has renewed its initial a free-on-board (FOB) basis and the Petronet invoked the force majeure deal to consider investing $2.5 billion cargoes it is seeking will be deliv- on eight LNG cargoes of Qatar and in U.S LNG developer Tellurian ered into India on a delivered ex- one from Exxon for loading from Inc’s Driftwood project, according ship (DES) basis. March to May. Average gas send-out to industry sources, Petronet and from the Dahej terminal fell to less Tellurian now have time until the end Sri Lanka to become south than 60% of the capacity in April, of December to finalise the deal. Asia’s LNG hub: Indian Company, Pearl Petronet to set up 1,350 Energy (Pvt) Ltd., signed the LNG dispensing stations agreement with the Board of across major highways after Investment of Sri Lanka to the government allowed launch ‘Hambantota LNG marketing and distribution of Hub’ - a floating storage LNG LNG by any entity: trading facility at the Port of In the first phase, the company would put up 50 stations on five major Hambantota, bringing LNG highways, which include Western Corridor and Southern Corridor, to the doorstep of Sri Lanka, by 2021. In the second phase, it plans to set up around 300 LNG with a primary aim of trading dispensing stations on all highways and in the third phase it will set up LNG in the region utilizing 1,000 stations. the strategic location of Hambantota. INTERNATIONAL NEWS Natural Gas / Transnational Pipelines / Others Japan’s Sumitomo sells all of its stake newable energy tury. It includes three scenarios that in U.S. Marcellus shale gas project: while the coro- assume different levels of government Sumitomo bought a 30 per cent stake navirus epidemic policies aimed at meeting the 2015 in the project in 2010 from Rex leaves a lasting Paris climate agreement to limit glob- Energy Corp, which went bankrupt in effect on global energy demand, BP al warming to “well below” 2 degrees 2018. The project is now 70 per cent said in a forecast. BP expects global Celsius from pre-industrial levels. owned and operated by PennEnergy economic activity to only partially Resources. recover from the epidemic over the Saudi Arabia announces discovery of next few years as travel restrictions two new oil and gas fields: Fossil fuel demand to take historic ease. BP this year extended its out- The two fields, Hadat Al-Hajrah gas knock amid COVID-19 scars: look into 2050 to align it with the field in the Al-Jawf region and Abraq BP: Fossil fuel consumption is set company’s strategy to slash the car- Al-Talul oil field in the northern to shrink for the first time in modern bon emissions from its operations to border region, were discovered by history as climate policies boost re- net zero by the middle of the cen- Saudi Aramco.

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BP completes sale of Alaskan oil and Gas pipeline to China’s first major independent LNG terminal complete: gas producing properties to Hilcorp A delayed sub-sea pipeline connecting a Energy: terminal owned by private Chinese gas BP Plc completed the sale of its distributor ENN Group and a provincial gas grid Prudhoe Bay oil and gas producing has been completed, paving the way for more properties to closely-held Hilcorp imports into China’s first major independent Energy, ending 60 years as a top LNG terminal. The $848 million import facility Alaskan oil producer. The $5.6 billion located on Zhoushan Island in eastern China’s Zhejiang province started deal, including BP’s stake in the Trans operations in 2018 but the delay in the pipeline’s launch, meant to take Alaska Pipeline System which carries place last year, has limited its use. crude oil from Prudhoe Bay to Alaska’s southern coast, should wrap up soon. BHP to put its Australian Bass Strait Turkey finds energy in Black Sea as oil and gas assets up for sale: Erdogan vows a new era: PetroChina to sell major pipeline The Bass Strait joint venture is co- Turkey has discovered en- assets to PipeChina for $38 bln: owned and operated by Exxon Mobil ergy in the Black Sea, most The company would sell its Corp which has also put its 50% likely natural gas, two peo- major oil and gas pipelines and stake up for sale, which analysts have ple with direct knowledge storage facilities to the newly estimated could fetch up to $3 billion. of the matter said, but gave no indica- launched China Oil and Gas tion of the size and depth of the find, Pipeline Network for 268.7 Chevron’s interest in giant gas field nor how difficult it will be to extract. billion yuan ($38.36 billion). The led to $5 bln bid for Noble Energy: creation of the new company, Chevron Corp’s $5 billion offer to ac- Israel approves pipeline deal to sell also called PipeChina, marks the quire Noble Energy emerged after the gas to Europe: largest industry reshuffle in the U.S. oil major first proposed taking a The Israeli government approved an country in the past two decades, stake of at least 50% in Noble’s East- agreement with European countries for aimed at providing fair market ern Mediterranean natural-gas fields. the construction of a land/subsea 1900 access to infrastructure and If consummated, the all-stock merg- Km pipeline that would supply Europe boost investment in oil and gas er will boost Chevron’s U.S. shale oil with natural gas from the eastern production. Upon completion of holdings and give it vast natural gas Mediterranean. The Eastmed pipeline, the transactions, PipeChina will assets off the coast of Israel. Noble’s which has been in planning for several become an associate company Leviathan already is supplying gas to years, is meant to transport gas from of PetroChina, a listed arm of Israel, Egypt and Jordan. offshore Israel and Cyprus to Greece CNPC. and on to Italy.

nies with an LNG trading or business Global LNG Development development presence in Singapore, US LNG exports rise from coronavirus surged over 60% in Europe and Asia trade minister Chan Chun Sing told lows as global gas prices soar: last month, causing US LNG exports the Gastech virtual summit. US LNG exports were on track to to jump from a 21-month low of 3.1 increase for a second month in a row in billion cubic feet per day (bcfd) in July China starts trial run of online September for the first time since hitting to 3.7 bcfd in August and an expected international LNG trade: a record high in January as rising global 3.8 bcfd in September, according to Shanghai Petroleum and Natural Gas gas prices prompted buyers to reverse federal data. Exchange (SHPGX), a national energy some cargo cancellations. Gas prices trading center, started the trial run of its More firms setting up LNG desks in online platform for international LNG Singapore: trade minister: trading. China’s oil giants Sinopec More firms have set up LNG desks and CNOOC respectively reached in Singapore to capitalise on grow- LNG purchase deals with their foreign ing demand for gas in Asia, the city- counterparts through the trading state’s trade minister told a virtual platform, with total trading volume at conference in early September. Sin- 130,000 tonnes. gapore currently has over 50 compa-

GAS STATISTICS REPORT 15 NEWS BRIEF

LNG investments vanish in 2020 as coronavirus slashes oil and gas Natural Gas/LNG Utilization prices: No new LNG export projects could be UK: Primark commits to sustainable approved this year for the first time in at mobility with new LNG vehicles: least two decades, banking and industry Primark, the value fashion retailer, sources said, after the COVID-19 announced the introduction of a brand- pandemic drove down energy demand new fleet of 15 Longer Semi Trailers and knocked prices to all-time lows. (LSTs) which will help to significantly In a stark contrast to last year’s record reduce the environmental impact of the level of approvals for LNG production U.S. Energy Department funds near- company’s logistics operations in the plants, 2020’s dramatic oil and gas zero CNG technology for locomotives: UK. In addition, they confirmed that price drop has forced companies to The U.S. Department of Energy in a few weeks they will take delivery delay decisions on new projects and (DOE) has awarded over $7.1 million of 10 new Iveco Stralis AS440S46T/P write down investments in existing in funding to three projects advancing NP tractors which will be fueled by plants. The last year in which no new clean automotive transportation LNG. Each of these new trucks will LNG exports plants were approved was technologies supported by Southern cover approximately 200,000 kms per 1998, consultancy Wood Mackenzie California Gas Co. (SoCalGas). The year, enable quieter urban deliveries told Reuters, while the International utility’s Research, Development and further reduce the environmental Energy Agency estimated it was at least & Demonstration department will impact of the company’s logistics two decades ago. provide $730,000 in additional funding operations. for the projects which are led by Recovery in Asia spot LNG price more Cummins, Inc., GTI and West Virginia Florida: transit agency gets federal about supply than demand: University Research Corporation. grant to switch diesel buses to CNG: Russell: The spot price of LNG for delivery to north Asia is continuing New CNG instant refueling unit will to recover, but the increase appears reduce infrastructure barriers in US: to have more to do with supply issues Onboard Dynamics announced the than any rebound in demand. The spot launch of their new GoFill™ refueling price LNG-AS of cargoes for October system. It is an instant and nimble delivery rose to $4.50 per MMBtu in drying and dispensing unit for refueling the week ended Sept. 4, an eight-month CNG vehicles. The new product The U.S. Department of Transportation high and some 143% above the record eliminates infrastructure barriers and Federal Transit Administration low of $1.85, reached in two separate for fleet operators who immediately (FTA) announced that the Jacksonville weeks at the beginning and end of May. need an easy CNG station setup to Transportation Authority (JTA) is refuel their commercial trucks. The receiving an $11.9 million Bus & Bus Greece, Bulgaria hail deal targeting GoFill will be providing natural gas Facilities discretionary grant. With this Russia gas dominance: for refueling CNG into a Hyliion low- grant, the JTA will take eight diesel Greece and Bulgaria sought to reduce emission Class 8 truck for long and buses that have met FTA’s Useful Life their reliance on Russian gas with the heavy hauls. The program provides standards out of service, and replace signing of a agreement that will allow fleet operators a short-term, no-cost them with eight new CNG buses. Bulgaria to participate in a planned demo period to experience the vehicle LNG terminal in northeastern Greece. United States: Anheuser-Busch CNG The project, which has strong support Chinese manufacturer Shacman fleet expands with new 180 vehicles: from the US, is aimed at boosting brings CNG heavy trucks to Mexico: Agility® Fuel Solutions, a business energy diversification in southeastern Shacman, a Chinese world leader in of Hexagon Composites, received Europe, a region largely reliant on the production of cargo trucks, chose a substantial order from longtime Russian natural gas. Bulgaria’s state- Mexico to install a new production customer Anheuser-Busch. Over 180 controlled Bulgartransgaz will acquire plant and officially launched its range new trucks equipped with Agility’s a 20% stake in the Greek company, of trucks with natural gas engines ProCab® 175 CNG Fuel Systems will Gastrade that is developing the LNG (CNG and LNG) that generate fuel be joining the fleet. The estimated total terminal outside the Greek city of savings of up to 40%, as well as a value of the order is over USD 8.0 Alexandroupolis. maximum range of 1,200 km. million.

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IVECO obtains approval for the first has been possible thanks to the The company introduced its roof LNG-powered Stralis in Argentina: development of the Yellow Project, mount CNG fuel systems for refuse IVECO announced the homologation which has allowed the installation fleets in 2001, and since then, they certification for the new Stralis CNG of an Ultra-compact Gas Station. have been used widely by fleets large Cursor 13 and in its LNG configuration The service station is located in only and small across North America. in Argentina. The novelty of the brand 310m2, being completely passable by corresponds to the new heavy duty vehicles on 95% of its surface, thus Egypt’s president announces new car configurations of the Natural Power eliminating any impact on vehicle licenses will only be issued to NGVs: range, with CNG and LNG versions circulation flows and reducing the for the South American region. For aesthetic impact. these new products, developments and Hermes now runs UK’s largest CNG new approvals were made in Europe. fleet with 90 vehicles, all from IVECO: Hermes will be taking delivery of a Yellow Project: first European natural further seven 400HP IVECO Stralis gas station with buried tank: Natural Power (AS440S40T/P NG) 4×2 trucks into its 400 strong fleet of tractor units, and now runs the largest Egypt will grant licenses to new CNG powered fleet in the UK of 90 vehicles only if they can operate on the vehicles, all of which are IVECO. bi-fuel system. New gasoline vehicles will not be licensed, unless they Agility launches new roof mount CNG can also operate on natural gas. The fuel system for refuse trucks: country has adopted a plan to expand HAM Group has opened a service Agility® Fuel Solutions has introduced the use of natural gas as vehicle fuel station in HAM Irún, in Gipuzkoa its new third-generation roof mount and encourage motorists to convert (Spain), which is the first LNG-CNG CNG fuel system for Automated Side their cars to the bi-fuel system, which station in Europe with a buried tank. Loader, Rear End Loader and Front can run on both natural gas and The opening of this new facility End Loader refuse collection vehicles. gasoline.

As the global energy demand is LNG as a Marine Fuel/Shipping shifting to eco-friendly sources, the LNG bunkering expands to German and environmentally-advanced LNG- shipbuilding market is shifting its ports of Emden and Brunsbüttel: powered cruise vessels in its class, focus to LNG-powered ships from Titan LNG chartered the Engie and the first ever to be built in France. those powered by coal and oil. For Zeebrugge and loaded LNG in now, Korean shipbuilders have taken Rotterdam. Then the vessel arrived Shipowners line up for Total’s the lead in terms of LNG-powered in the port of Emden where Titan Mozambique LNG Project: ship order intake. However, Chinese LNG delivered just over 1,000 Some of the world’s biggest shipbuilders, who are enjoying full tons of LNG to the car carrier shipowners are lining up to move support from the Chinese government, Siem Confucius, owned by Siem natural gas from Mozambique are mounting a serious challenge. Car Carriers and chartered by as French energy giant Total SA Volkswagen. moves ahead with its $23 billion Germany prepares to commission East Africa liquefaction project. world’s first LNG-powered research Keel laying for one of the most eco- The project will involve use of at ship: advanced LNG-fueled ships-France: least 16 new LNG carriers worth A unique new research vessel A maritime coin ceremony tradition around $2.9 billion backed by is being built in Germany at took place at the Chantiers de multiyear charters. Fassmer shipyard in Berne/Motzen, l’Atlantique shipyard in Saint- Germany. The Atair, which will Nazaire, France when the keel Korea, China and Japan competing for be operated by Germany’s Federal was laid for MSC Cruises’ first LNG-powered vessel orders: Maritime and Hydrographic LNG-powered ship, MSC World Shipbuilders in Korea, China, and Agency (BSH), is the world’s first Europa. The 200,000-plus GT ship Japan are having fierce competition LNG-fueled research vessel and is scheduled to enter service in 2022 in order to take a bigger share of the will be the largest research vessel and be one of most technologically- global LNG-powered vessel market. operated by Germany.

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Technological Development for Cleaner total power production of 243.8 TWh, solar, wind, biomass and hydroelectric and Greener Environment Hydrogen & generation together produced 136.1 TWh in that six months, according to Bio-Methane/Renewable gas data from the Fraunhofer organisation cell vehicles in Northeast Asia has of applied science. nominated Hexagon Purus, a subsidiary of Hexagon Composites, for the serial NYC bus fleet will lower emissions supply of composite cylinders for their with renewable natural gas: current zero-emission fuel cell SUVs. Clean Energy Fuels Corp. has been World’s largest hydrogen plant will Hexagon Purus’ first prototypes of the contracted by New York Metropolitan supply carbon-free fuel for transport: 700 bar high-pressure cylinders are Transportation Authority (MTA) to Air Products, in conjunction with due to be delivered by year end. provide its Redeem™ renewable ACWA Power and NEOM, announced natural gas to power the MTA’s 800 the signing of an agreement for a $5 European Commission launches natural gas transit buses. billion world-scale green hydrogen- hydrogen strategy and alliance: based ammonia production facility To become climate-neutral by 2050, Biomethane connected to UK gas powered by renewable energy. The Europe needs to transform its energy network for first time-National Grid: project, which will be equally owned system, which accounts for 75% of the by the three partners, will be sited in EU’s greenhouse gas emissions. NEOM, a new model for sustainable living located in the North West corner Canada has big plans to use hydrogen of the Kingdom of Saudi Arabia. to cut emissions and produce more oil: Canada’s main crude-producing Renewable biomethane has been pro- France: province Alberta looks to use duced by Biocow Ltd’s Murrow anaer- Dijon deploys complete zero emission hydrogen to fuel expansion of its oil obic digestion plant in Cambridgeshire hydrogen mobility chain: ROUGEOT sands without increasing emissions, from cattle manure and straw. Britain’s Energie, operating as general contractor even as Prime Minister Justin Trudeau National Grid said that biomethane EPC on behalf of Dijon Métropole promises strong action against has been connected to the transmission Smart EnergHy (DMSE), has selected climate change, officials with the two system for the first time, as part of ef- McPhy’s hydrogen production, governments said. forts to decarbonise the gas network. compression and distribution solution to supply the metropolitan fleet of Scania Finland delivers biomethane Biomethane refueling for heavy duty heavy (buses, garbage trucks) and light buses to Hämeenlinna transit agency: trucks expands in southern Sweden: (utility and passenger cars) vehicles. Six new biogas-powered buses Gasum has opened its 11th natural of Vekka Group (Hämeenlinnan gas station in Sweden. The Ljungby Chile funds green hydrogen project to bussiliikenne) started service in facility is the first LNG station in decarbonize mining vehicles: Hämeenlinna, Finland. Supplied by Kronoberg County. It offers LNG and With the goal of achieving carbon Scania Finland, the vehicles will bio-LNG for heavy duty vehicles, and neutrality in Chile by 2050, the operate in the city’s public transport located in a logistic hub area, which Production Development Corporation services, the contract for which was means that the area already has a large (CORFO) will finance the “Hydra” awarded to the Vekka Group. existing customer base. project, led by the Australian applied research center CSIRO Chile, ENGIE Renewable energy’s share of German Fleet of 40 biomethane buses begin and the research center mining. power mix at 55.8 per cent in H1: operations in eastern Sweden: Renewable energy’s share of Solaris Sweden AB signed a contract Northeast Asia speeds up transition to Germany’s overall power supply mix for the supply of low- and zero- zero-emission hydrogen mobility: rose by 8.8 percentage points in the emission buses to transport operator A key automotive company for fuel January to June period to 55.8%. Out of Vy Buss AB in March 2019.

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