IOCL lays gas pipeline for 75km in district
Coimbatore The Indian Oil Corporation Limited (IOCL), which is implementing the city gas distribution network, has laid the underground natural gas pipeline for up to 75km in the district. IOCL won the licence for the city gas distribution network in the district in the ninth round of bidding that the Petroleum and Natural Gas Regulatory Board held in August 2018. Under the project, IOCL would lay the underground gas pipeline for 212km, develop 273 CNG stations and provide 9,12,783 domestic piped natural gas connections. H Suresh, manager, district chapter of IOCL, said they were working on laying the underground gas pipeline on Avinashi Road and Trichy Road, where the flyover work was underway. “We hope to supply piped natural gas to the households on Kurichi-Malumichampatti stretch by the end of this year.” Recently, IOCL had inaugurated a city gate station cum mother station for compressed natural gas at Pichanur. It is equipped with a pressure reduction-cum-regulating skid that has a capacity of 13,000 standard cubic metres per hour. After its inauguration, IOCL reduced the price for compressed natural gas by Rs5 in the district. According to Suresh, they have plans to expand the CNG network in the district to 41 stations by the end of the current fiscal. Referring to the customers converting their vehicles to CNG, he said the same must be done through an RTO approved retro fitment centre. “Later, they have to update their insurance and endorse their registration certificate.
Iran considering gas exports to Europe: official
Iran is considering the possibility of exporting gas to Europe, an oil ministry official said Sunday against the backdrop of soaring energy prices due to Russia’s war in Ukraine. “Iran is studying this subject but we have not reached a conclusion yet,” deputy oil minister Majid Chegeni was quoted as saying by the ministry’s official news agency, Shana. “Iran is always after the development of energy diplomacy and expansion of the market,” he added. Though Iran boasts one of the world’s largest proven gas reserves, its industry has been hit by US sanctions that were reimposed in 2018 when Washington withdrew from a landmark nuclear deal between Tehran and world powers. Talks aiming to revive the 2015 nuclear deal began last year in Vienna but have been on pause for weeks amid outstanding issues. Russia’s invasion of Ukraine in February sent global oil and gas prices soaring, with many European countries dependent on energy imports from Russia. The situation worsened Wednesday when Kyiv said Russia had halted gas supplies through a key transit hub in the east of the Ukraine, fueling fears Moscow’s invasion could worsen an energy crisis in Europe. Last year, the European Union received around 155 billion cubic meters of Russian gas, accounting for 45 percent of its imports. Iran’s deputy oil minister also confirmed that Tehran and Baghdad had signed a memorandum of understanding a few weeks ago that will see the Islamic republic increase gas exports to Iraq. “Gas exports from Iran increased and in this memorandum it was stated that Iraq’s debt of $1.6 billion to Iran will be paid by the end of May,” Chegeni added. Despite considerable gas reserves of its own, poor investment due to decades of war and sanctions have left Iraq dependent on imports from its eastern neighbor for a third of its gas needs. US sanctions on Iranian oil and gas, however, have complicated Iraq’s payments for the imports. Baghdad uses a complex payment method to comply with an exemption from US sanctions on Iran. Iraq is not allowed to simply hand over cash to Iran as payments must be used to fund imports of food and medicines.
Europe Looks To African Gas To Reduce Dependence On Russian Imports
Africa is conservatively forecast to reach peak gas production at 470 billion cubic meters (Bcm) by the late 2030s, equivalent to about 75% of the expected amount of gas produced by Russia in 2022, according to Rystad Energy research. In early March, the European Union announced it aims to reduce its dependence on Russian gas by two-thirds by the end of this year alone and is currently headed for a supply crunch that will reverberate around the globe. Even with the number of gas projects being developed or currently delayed, Africa still has significant production potential. The continent is forecast to increase its gas output from about 260 Bcm in 2022 to as much as 335 Bcm by the end of this decade. If oil and gas operators decide to up the ante on their gas projects on the continent, near and mid-term natural gas production from Africa could surpass the above conservative forecasts. Russia has historically been the dominant natural gas supplier to Europe, with an average of about 62% of overall gas imports to the continent over the past decade. Africa has also been a consistent gas exporter to Europe during that time, with an average of 18% of European gas imports coming from Africa. Projects in Africa are, however, historically seen as having increased risk and can be delayed or go unsanctioned due to high development costs, challenges accessing financing, issues with fiscal regimes and other above-the-ground risks. Recent signals from oil and gas majors such as BP, Eni, Equinor, Shell, ExxonMobil and Equinor indicate a shift, however, in strategy towards further investment in Africa, with several projects that were previously on ice – including liquefied natural gas (LNG) projects – as they consider restarting or accelerating previously shelved projects in response to rising global demand. “The geopolitical situation in Europe is changing the landscape for risk globally. While LNG flows from the US are substantial, demand is much higher. Asian and European importers will need to consider African priorities as they develop projects, as many African producers are focusing on supplying energy locally as well as to intra-African markets along with catering to global markets. Existing pipeline infrastructure from Northern Africa to Europe and historical LNG supply relationships make Africa a strong alternative for European markets, post the ban on Russian imports,” says Siva Prasad, senior analyst at Rystad Energy. African nations that have historically been gas suppliers to Europe are well placed to scale up their exports. Africa’s advantage is that it already has existing pipelines connected with the wider European gas grid. Current pipeline exports from Africa to Europe run through Algeria into Spain and from Libya into Italy. Talks of long-distance pipelines connecting gas fields in Southern Nigeria to Algeria via the onshore Trans Saharan Gas Pipeline (TSGP) and the offshore Nigeria Morocco Gas Pipeline (NMGP) have picked up in recent months. While the TSGP aims to utilize existing pipelines from Algeria to tap into European markets, NMGP aims to extend the existing West Africa Gas Pipeline (WAGP) all the way to Europe via West African coastal nations and Morocco. Further afield, African LNG exports have predominantly come from Nigeria and Algeria, with smaller volumes from Egypt, Angola, and a fraction from Equatorial Guinea. In addition, large-scale discoveries offshore in Mozambique, Tanzania, Senegal, Mauritania, and South Africa have the potential to yield additional natural gas exports once developed. Europe is now considering how gas-rich African nations can be helped to scale up production and exports in the years to come. The European Union’s decision earlier this year that all natural gas investments are equivalent to investments in “green” energy signal that African gas is considered sustainable. The supply crisis driven by security interests may push Europe to fund projects that will also help with energy affordability back home. For instance, Europe could be a key financer of the proposed $13-billion TSGP project. BP’s Russia exit: A boost for uncontracted gas in Senegal-Mauritania BP chief executive Bernard Looney has said the decision to exit Russia is not only the right thing to do but is also in the company’s long-term interests. The UK giant recently booked pre-tax charges of $24 billion and $1.5 billion in its first-quarter 2022 financial results due to its decision to pull out of Russia. The company is now looking to African projects to seize the opportunity to target European markets with gas supplies. BP has several big gas projects in Senegal and Mauritania – the Greater Tortue Ahmeyim (GTA), Yakaar-Terenga and BirAllah LNG projects. LNG volumes from the 2.5 million tonnes-per-annum (tps) GTA floating LNG (FLNG) Phase 1 have already been sold, and some gas from Yakaar will be used as feedstock for Senegal’s gas-to-power plant. Meanwhile, gas from GTA LNG Phase 2, the remaining gas from Yakaar–Teranga and BirAllah are still uncontracted and these volumes could benefit from what is expected to be a supply-constrained LNG market in the coming years. GTA FLNG Phase 2 has a planned capacity of 2.5 million tpa, while the Yakaar–Teranga and BirAllah LNG facilities could have capacity of 10 million tpa. However, front-end engineering and design (FEED) on Yakaar–Teranga, which was kicked off in November 2021, will determine the final capacity for the project, and BP is also currently carrying out studies to see whether to accelerate development of the Bir Allah project targeting sales to Europe. Like BP, other major companies might also look towards their African gas portfolios to address the likely gas supply deficit. Eni plans ramp up of African gas to Italy Italian major Eni has said that it can alleviate Europe’s dependence on Russian gas to an extent through supply from its African projects, including in Algeria, Egypt, Nigeria, Angola and Congo-Brazzaville. In the past month, Italy, in association with Eni, signed deals to boost gas imports from the North African nations of Algeria and Egypt, and then more recently, two more gas supply agreements with two Sub-Saharan African nations, Congo-Brazzaville and Angola. Other African nations
Energy Security Concerns Are Fueling A Renewable Boom
Back in 2013, an announcement by the Federal Reserve about pulling back on the central bank’s easy-money policies sent markets into a tizzy. Treasury bond yields skyrocketed, junk bond prices fell, emerging-markets stocks tumbled, and stock volatility was off the charts leading to the coining of a new phrase on Wall Street, “taper tantrum.” We are currently going through another phase of quantitative tightening, with the Fed aggressively hiking interest rates in its fight against a 40-year high in inflation. This time around, the market is taking things in stride–comparatively–avoiding an all-out meltdown. Nevertheless, an expensive stock market that was trading near record highs, higher interest rates, supply chain disruptions, and high inflation have all contributed to investors increasingly shunning growth stocks in favor of more defensive value companies. Among the first casualties has been the renewable energy sector. After enduring a torrid season in 2021, renewable energy stocks have continued to underperform in 2022, with the sector’s popular benchmark iShares Global Clean Energy ETF (NASDAQ:ICLN) down 21.2% in the year-to-date compared to a 36.5% gain by its fossil fuel equivalent, the Energy Select Sector SPDR Fund (NYSE:ARCAXLE). But don’t let the anemic returns by clean energy stocks fool you: the green energy sector is in the pink of health and enjoying robust growth. In fact, Russia’s invasion of Ukraine has lit a fire under the sector, with the International Energy Agency (IEA) predicting that renewable energy is on pace to set new records in 2022. According to the IEA, new capacity for generating electricity from solar, wind, and other renewables is set to hit new records this year as governments seek to take advantage of renewables’ energy security and climate benefits. Energy Security According to the IEA’s latest Renewable Energy Market Update, last year, a record 295 gigawatts of new renewable power capacity was added to the global power grid, a remarkable achievement considering the crippling supply chain challenges, construction delays, and high raw material prices that the industry has been grappling with. Renewable growth is expected to be even more impressive this year, with global capacity additions expected to clock in at 320 gigawatts – or nearly enough to match the European Union’s total electricity generation from natural gas. Solar PV is expected to be in the lead again, with the sector on course to account for 60% of global renewable power growth in 2022, followed by wind and hydropower. Global additions of solar PV capacity are on course to break new records both this year and next, with the annual market expected to reach 200 GW in 2023. Indeed, the IEA says the additional renewables capacity commissioned for 2022 and 2023 has the potential to significantly reduce the European Union’s dependence on Russian gas. About 16 percent of the EU’s total power demand is currently met via electricity generation with natural gas, a significant share of which is sourced from Russia. The EU’s natural gas-fueled electricity generation annually ranges from 340 TWh to 600 TWh, with Russian gas accounting for 100 TWh to 200 TWh of that. “Energy market developments in recent months–especially in Europe–have proven once again the essential role of renewables in improving energy security, in addition to their well-established effectiveness at reducing emissions. Cutting red tape, accelerating permitting and providing the right incentives for faster deployment of renewables are some of the most important actions governments can take to address today’s energy security and market challenges, while keeping alive the possibility of reaching our international climate goals,” IEA Executive Director Fatih Birol has said. To meet its goal of accelerated adoption of clean energy, the bloc will start allowing some renewable energy projects to receive permits within a year. The European Commission will propose rules requiring countries to designate “go-to areas” of land or sea suitable for renewable energy at next week’s meeting in Brussels. Overall, the IEA says that renewables’ growth so far this year in China, the European Union, and Latin America, has been more than compensating for slower-than-anticipated growth in the United States.
CNG price hiked by Rs 2 per kg in Delhi-NCR and other cities
The prices of Compressed Natural Gas (CNG) in Delhi and the National Capital Region (NCR) were hiked by Rs. 2 per kg with effect from Sunday 06:00 am. In a key development, the prices of Compressed Natural Gas (CNG) in Delhi and the National Capital Region (NCR) were hiked by Rs. 2 per kg with effect from Sunday 06:00 am. The Indraprastha Gas Limited (IGL) has hiked the CNG price in Delhi-NCR, with the fuel now priced at Rs. 73.61 per kg in New Delhi. With this new hike, CNG is now being sold at Rs. 76.17 per kg in Noida, and Rs 81.94 per kg in Gurugram. In addition to these cities, IGL has hiked CNG prices in other parts of the country as well. In Haryana, the price of CNG is retailing at Rs 84.07 per kg in Rewari and Rs. 82.27 per kg in both Karnal and Kaithal. Meanwhile, in Uttar Pradesh’s Kanpur, Hamirpur and Fatehpur, the price of CNG is now Rs. 85.40 per kg. The cost of CNG is Rs. 83.88 in Rajasthan’s Ajmer, Pali and Rajsamand after the surge. It is pertinent to mention here that the city gas distributors have been periodically increasing prices since October last year when domestic as well as international gas prices started to ascend. Notably, earlier in April, the prices of CNG in the national capital were hiked by Rs. 2.50 per kg and that of piped cooking gas by Rs. 4.25 per unit to record levels against the backdrop of the surge in raw material cost.