200 LNG-Powered Vessels Planned in Chongqing by 2020
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Number #110 April 2016 2016, APRIL 1 Asian NGV Communications is a publication of AltFuels Communications Group. China: 200 LNG-powered vessels planned in Chongqing by 2020 India Emirates 15,000 vehicles MAN showcases converted to CNG natural gas buses in Delhi this year in Dubai 2 ASIAN NGV COMMUNICATIONS 2016, APRIL 3 Summary April 2016 #110 COPIES DISTRIBUTION We print and mail to 24 Asian countries around 4,000 hard copies addressed to conversion pag 04 China: 200 LNG-powered vessels planned in Chongqing by 2020 centres, Oil & Gas companies, OEM NGVs, governmental related offices, filling station 11. MAN showcases natural owners, equipment suppliers, gas buses in Dubai related associations and industries. In addition, the 12. New collaboration electronic version of the magazine is sent to more than boosts LNG use as 15,000 global NGV contacts in marine fuel in Middle 94 countries. East pag 06 New LNG terminal project begins commercial This e-version is also available 13. 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USA ITALY ARGENTINA KOREA 1001 Texas Ave., Suite 1400 Vicolo Gonzaga 13 · 46045 Víctor Hugo 370 1er Piso n 300-5, Changchon-Ri · - PMB 174, Marmirolo (Mn) C.A.B.A. Namsan-Myun Chuncheon-Si · Houston, TX 77002, USA Tel.: +39 0376 294055 Phone/Fax: + 5411 5199 3102 / Kangwon-Do · 200-911 Tel: +1 713-490-5780 [email protected] + 54 911 6621 4257 Tel. +82 33 260 3419 Fax: +1 713-490-6781 www.thegvr.com [email protected] Fax. +82 33 260 3459 [email protected] 4 ASIAN NGV COMMUNICATIONS China: Chongqing plans to deploy 200 LNG-powered vessels by 2020 2016, APRIL 5 hina’s Chongqing government has set a target to Supply and bunkering C promote the use of 200 LNG-powered river cargo vessels along the Yangtze River by 2020, as part of As a result of increasing production and new sources of the province’s overall drive for environmental friendliness, supply, largely from developments in Russia, the United reports said. States and Australia, global supply is set to expand over the next few years. Although this boom will support the As part of the drive to use LNG-powered vessels, the growing demand for LNG as a bunker fuel, the short-term Chongqing government has already built one LNG picture is one of oversupply, particularly if current oil price refueling station in Banan district, south of Chongqing levels remain. province. The market for LNG as a bunker fuel will expand at a rate of more than 60% per year for the next 10 years, and has A secondary goal is to encourage the domestic already been embraced in Northern Europe and North shipowners to build and deploy 100 LNG-fuelled vessels America. by 2017 plus establishing four LNG bunkering stations at Expanding ECA regions is likely to be a large component various points along the middle and lower reaches of the of this increased demand, as is the growth of LNG Yangtze River crossing Chongqing province. bunkering in Asia due to tighter regulations on sulfur emissions. China has recently published an action plan By 2020, the provincial government aims to see the use that promotes LNG as a marine fuel and supports the of 200 LNG-powered vessels by its domestic shipowners, establishment of China’s own ECAs. Additional proposals supported by eight refuelling stations. have also been put forward to extend ECAs to Japan and Southeast Asia. 06 ASIAN NGV COMMUNICATIONS Sinopec’s second LNG project at Beihai begins commercial operations inopec, state-owned China Petroleum and Chemical phase. There were no replies to requests for clarification S Corp., received the first commercial cargo at its on the status of phase 2 of the project. newly commissioned Beihai LNG terminal in Guangxi province. The Methane Spirit, loaded with a 160,000 Most of the supply for the terminal will come from cubic meter cargo from the Australia Pacific LNG project, Australia, where Sinopec has already signed a 20-year docked at the terminal on April 19, marking the official sale and purchase agreement with APLNG for 7.6 million start of commercial operations of the first phase of the mt/year of LNG. As the 3 million mt/year terminal import project. capacity is currently well below the contracted volumes, Sinopec recently sold some of its term volumes to other In the first phase, the plant has a nameplate capacity of 3 buyers in the spot market. million mt/year of LNG that can meet the demand of 22 In the future, some contracted volumes would go to million households in Guangxi and the western part of the Sinopec’s existing LNG terminal in Qingdao, but given the neighboring Guangdong province. size of the contract, more volumes would most likely be sold, a source close to the company said. This phase has been delayed by close to a year. The plant had been scheduled to start commercial operations in The arrival of the first commercial cargo comes two weeks mid-2015. Sinopec had earlier stated that the second after the ship delivering the commissioning cargo to the phase of the project would see the terminal capacity facility left. The BW Pavilion Vanda, which also carried a increase to 9 million mt/year. cargo from the APLNG project, arrived at the Beihai plant on March 28, and left on April 5, cFlow Platts ship-tracking However, Sinopec has not stated a timeline for the second software, showed. 2016, APRIL 07 08 ASIAN NGV COMMUNICATIONS India: 15,000 vehicles converted to CNG in Delhi since January early 15,000 petrol and diesel vehicles have been and congestion, will be implemented from Friday till April N converted to natural gas in Delhi since the first 30. Owners of CNG conversion centres said the second odd-even restriction in January, according data round of odd-even has prompted an increase in the from the retrofitting centres across the city. There are 200 number of car owners choosing to switch fuel. authorised retrofitting centres in Delhi. In addition to cost saving and CO2 reductions, vehicles that run on CNG are Indraprastha Gas Limited (IGL), the sole supplier of CNG exempt from the rationing scheme. in Delhi-NCR, runs 324 refuelling stations in Delhi and NCR. To meet the rising demand for the fuel, IGL has The second round of odd-even, a plan to curb pollution opened 30 more stations in the past two months. 2016, APRIL 09 Officials said 20 more will be commissioned before the second phase of odd-even ends on April 30. To avail of the exemption from odd-even restriction, vehicles will need a special sticker declaring it runs on CNG. The stickers are being distributed at IGL’s CGO Complex station. Numbers at CNG workshops “The numbers of private vehicle owners coming for conversion has suddenly grown in the past 20-25 days. We are overloaded with requests. Average customers have a lot of enquiries, which started pouring in from March itself,” said Rajeev Sachdeva, who runs Sanbhav Corporation, a conversion centre in Okhla phase-I. “Around two years ago, we used to get one or two fittings per day. This has now gone up to 8-10 per day in the past month. Now, we have to keep customers in waiting. Because of odd-even there is almost an 80-90% increase in the number of customers,” said Sachdeva. Shishir Aggarwal, another retrofitting centre owner in Mahipalpur, said, “CNG is 50% cheaper than petrol and it used to be the only reason for people getting their vehicles converted. Now, exemption from odd-even has provided people another reason for getting their vehicles retrofitted with CNG kit,” said Aggarwal. He said these private cars were in addition to the over 25,000 commercial taxis that will have to be converted to CNG as per the court orders. The National Green Tribunal (NGT) had ordered all diesel taxis plying in the capital to convert to CNG by March 31. “Odd-even has given an impetus to CNG sales. There is a 7-8% overall increase in sales from January this year. In order to better infrastructure and increase capacity, we have already commissioned 50 stations to be in use soon.