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LNG’s share of Indian gas demand to rise to 70% by 2030

News Fig Kochi

The share of LNG in India’s gas consumption could rise to 70% from the present 50% in 10 yr, and new import terminals are needed, according to LNG import terminal operator Petronet LNG Ltd. Prime Minister Narendra Modi has set a target to raise the share of natural gas in the country’s energy mix to 15% by 2030 from 6.3% to cut its carbon footprint.

To meet that target, India’s gas consumption must rise to 640 MMsm3d from 155 MMsm3d. Indian companies are investing billions of dollars to strengthen gas infrastructure, including laying 15,000 km of pipelines to supply cleaner fuel to households and industries. India has 17,000 km of gas pipeline network at present.

Furthermore, LNG projects with a collective capacity of 19 metric MMtpy are under construction, and plans are in the works to increase the use of LNG in trucks and buses. Replacing approximately 30% of India’s crude oil imports with LNG would save $10 B at a global oil price of $74/bbl.

Excelerate Energy FSRU Returns to Bahia Blanca

News Fig Bahia

Excelerate Energy LP’s floating storage and regasification unit (FSRU) Exemplar has begun operations in Bahia Blanca, a port city located 400 mi south of the Argentine capital Buenos Aires. The Exemplar, with a storage capacity of 150,900 m3, will deliver LNG for the 2021 winter season in Argentina, providing reliability and stability to the country’s energy system despite operating in the challenging conditions of the South Atlantic.

The return of Excelerate’s FSRU comes after the company won an international, competitive tender for seasonal regasification service in Bahia Blanca. In 2008 Excelerate developed the Bahia Blanca GasPort, South America’s first LNG import terminal, and has also operated GNL Escobar, an LNG import terminal along the Paraná River, since 2011.

Panama announces $1-B gas plant

Panama intends to construct a $1-B plant for electricity generation, using natural gas, as the Central American country seeks to increase its share of cleaner energy. Consortium Consorcio Group Energy Gas Panama, made up of private companies InterEnergy Group and AES Panama, as well as the government, will be responsible for the construction, development and operation of the plant.

Called Gatun, the plant will be located at Isla Telfers near the port of Colon and have the capacity to produce 670 MW. The plant will start operations in late 2023 or early 2024.

Pembina Pipeline to buy 50% stake in Cedar LNG

Pembina Pipeline Corp. has agreed to buy a 50% stake in Canada’s proposed $2.4-B, 3-MMtpy Cedar LNG project to develop the floating LNG facility in British Columbia in partnership with indigenous group the Haisla Nation. The FID is expected in 2023.

Pembina, which will acquire the equity interests in Cedar LNG from PTE Cedar LP and Delfin Midstream Inc., will operate the project going forward. Haisla will own the remaining 50% stake. Cedar LNG lies within the traditional territory of the Haisla Nation and aims to provide LNG to Asia-Pacific markets.

U.S. approves Enable’s Louisiana Gulf Run pipeline

The U.S. Federal Energy Regulatory Commission (FERC) approved Enable Midstream Partners’ request to build the Gulf Run natural gas pipeline in Louisiana, according to a filing. However, in what has become a recurring theme in pipeline approvals, the FERC commissioners differed on how the Commission should consider greenhouse gas emissions from proposed projects.

FERC Chairman Richard Glick and Commissioner Allison Clements said they dissented on the Gulf Run decision, in part because they said the FERC should have prepared a supplemental environmental impact statement to examine the effect that greenhouse gas emissions caused by the project will have on climate change.

Most of the gas transported on Gulf Run will go to Qatar Petroleum/ExxonMobil Corp.’s Golden Pass LNG export plant under construction in Texas. The first liquefaction train at Golden Pass is expected to enter service in 2025. The Gulf Run project includes about 134 mi (216 km) of new pipe and other facilities that will provide about 1.7 Bft3d of transportation service from Enable’s existing Westdale compressor in Red River Parish, Louisiana, to an interconnect with the Golden Pass Pipeline near Starks, Louisiana.

Enable previously estimated the cost of Gulf Run at $540 MM and anticipated the project could be placed into service in late 2022, subject to FERC approval. In its filing, the FERC estimated the cost of the project at $1.2 B.

LNG trade rises to record in 2020

Global LNG trade volumes rose to a record last year, led by Asia, although growth was marginal as demand was slammed by COVID-19-induced restrictions, according to a report by the International Gas Union (IGU). Overall, LNG trade increased to 356.1 metric MMt in 2020, up by 1.4 metric MMt, or about 0.4%, from 2019, mostly driven by increased exports from the U.S. and Australia. This was smaller than the growth of 40.9 metric MMt, or 11.5%, in 2019. However, LNG was one of the few commodities that saw an increase in trade in 2020.

Extended lockdowns and the increased share of renewables in the energy mix reduced LNG net imports into Europe by 4.3 metric MMt. COVID-19 also severely impacted liquefaction development, with companies delaying FIDs on projects to 2021 and later because of the uncertain economic climate. A total of 87.3 metric MMtpy of liquefaction capacity were expected to be sanctioned in 2020, but only one project of 3.25 metric MMtpy in Mexico was approved.

New regasification projects in China and India will continue to support gas demand, while new projects under construction in Ghana, El Salvador, Cyprus and Nicaragua are expected online over the next 2 yr.

Saipem awarded gas plant project

Saipem received a letter of award from ADNOC Sour Gas, a subsidiary of Abu Dhabi National Oil Co. (ADNOC), for a new contract related to the Optimum Shah Gas Expansion (OSGE) and Gas Gathering project in the UAE. The $510-MM EPC contract covers the expansion and upgrade of the existing Shah gas plant.

The project will increase the daily gas treatment capacity of the Shah gas plant by 13%, from the current production capacity of 1.28 Bsft3d to 1.45 Bsft3d, representing a cumulative increase to 145% of the original design capacity of the plant.

The Shah gas plant is the largest sour gas plant in the world. Due to a higher sulfur content, the plant requires specific technologies to ensure safety and respect for the environment. The technologies utilized also will ensure continuity of production during maintenance work and minimize downtime. GP


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FEATURED COLUMNS

Editorial Comment
-Adrienne Blume
Worldwide, small-scale LNG liquefaction capacity is expected to expand by 30% over the next 4 yr, increasing from 33.9 MMtpy in 2021 to 43.92 MMtpy in 2025.
Industry Focus: LPG sector poised for sustainable fuel transformation
-Gordon Feller
Like virtually all industries, the liquified petroleum gas (LPG) sector was challenged by the COVID-19 pandemic throughout 2020.


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