New U.S. LNG Export Projects Risk Delays Due to Stricter Pollution Rules
New U.S. LNG projects risk delays amid the Biden Administration’s push for lower emissions and the ongoing reviews about the environmental impact of the planned export facilities. After President Joe Biden halted new LNG project approvals in January for a review of the current permitting process, the U.S. Administration is looking to implement stricter rules on pollution the export facilities are allowed to emit in the community. These new requirements are holding back projects, one being Venture Global’s CP2 LNG in Louisiana, and the company’s second such project in Cameron Parish, Louisiana. Last week, the Federal Energy Regulatory Commission (FERC) asked Venture Global to provide more details to prove its emissions would be below the stricter threshold. Venture Global criticized FERC’s move as an “eleventh hour data request” that would “encourage further baseless claims,” the company said in a letter to the regulator seen by the Financial Times. Venture Global says its project is in line with standards and has filed new information with FERC. Cheniere Energy, the top U.S. LNG exporter, also has projects that need approvals. Cheniere is working closely with FERC to progress the permitting approval process for trains 8 and 9 at Corpus Christi, CEO Jack Fusco said on the Q1 earnings call earlier this month. “We expect to receive our environmental assessment soon and remain confident that we will receive all necessary regulatory approvals to be able to sanction the project in 2025,” Fusco said. The halt of new LNG project approvals has been criticized by the U.S. oil and gas industry while environmentalists are pressuring the Administration to reject new project approvals. “We trust that when the government reviews the climate and environmental justice harms, they will fully reject all LNG export projects, because anything less would reveal this pause to be nothing more than a strategic and self-serving PR campaign,” Candice Fortin, 350.org US Campaign Manager, said. Charlie Riedl, Executive Director at the Center for LNG (CLNG), responded to the halt in permits saying “This is a short-sighted and damaging action that weakens U.S. relations with our allies. It undermines U.S. energy leadership in the world without any benefit to our shared climate goals and with considerable risk to the U.S. economy by endangering future projects and the jobs associated with them, as well as destabilizing international energy markets.”
Amlekhgunj-Lothar petroleum pipeline set for extension
The work of extending the petroleum pipeline from Amlekhgunj in Bara to Lothar in Chitwan will start soon. According to Nepal Oil Corporation, after the completion of the Motihari-Amlekhgunj pipeline, it will be extended to Lothar. Binitmani Upadhyay, head of Amlekhgunj, Madhesh regional office of the Corporation, said that a technical team is studying to start the pipeline work on Amlekhganj-Lothar 69 km. “Studies are being conducted by high-level technical teams from both Nepal and India,” he said, “Work will start after receiving the report of the teams.” One hundred thousand liters of petroleum products will be stored in Lothar by extending the pipeline. More than 70 percent of the second phase of the Motihari-Amlekhgunj pipeline project has been completed. According to Upadhyay, in the second phase, Indian Oil Corporation has installed two ‘petrol tanks’ of 4,100 kiloliters capacity, two ‘transmix tanks’ of 250 kiloliters capacity, 24 fully automatic ‘loading way-refillers’, ‘pump house’ and laboratory at the depot at Amlekhgunj in Bara. An agreement has been reached with the Indian Oil Corporation to build two transmix tanks for storing mixed fuel, which can be both petrol and diesel, and a firewater tank with a capacity of 3,000 kiloliters for security inside the depot. Although it is possible to import petrol and kerosene through the same pipeline, due to the lack of storage capacity, petroleum products have to be brought by tankers. When petroleum products are imported through pipelines, the technical loss will be zero, transportation costs will be avoided and environmental pollution will be reduced.
India greenlights massive green hydrogen and electrolyser production projects
India has taken a significant step in green energy by awarding tenders for 412,000 tonnes of green hydrogen production and 1.5 GW of electrolyser manufacturing, according to the Ministry of New & Renewable Energy (MNRE). Speaking at the World Hydrogen Summit 2024 in the Netherlands, MNRE Secretary Bhupinder S Bhalla highlighted India’s progress under the Strategic Interventions for Green Hydrogen Transition (SIGHT) program. He emphasised India’s advantages as a green hydrogen producer, particularly due to its low-cost renewable energy sources. Launched last year, the National Green Hydrogen Mission aims to establish a robust electrolyser manufacturing base and green hydrogen production facilities. Under SIGHT’s Component 1, the MNRE has allocated ₹44.40 billion for electrolyser manufacturing from FY26 to FY30. Component 2 includes ₹130.50 billion for green hydrogen production during the same period. The total financial incentive under SIGHT is ₹174.90 billion. The Solar Energy Corporation of India (SECI) will implement these projects, aiming to make India a global hub for green hydrogen production, usage, and export. The mission targets 5 million tonnes of annual green hydrogen production and 125 GW of associated renewable energy capacity, significantly reducing fossil fuel imports and CO2 emissions. By 2030, India expects to avert nearly 50 million tonnes of CO2 emissions and reduce ₹1000 billion in fossil fuel imports. In August 2023, the government set standards for green hydrogen production, ensuring it is derived from renewable energy with minimal carbon emissions.
Hydrogen-enriched CNG may come to India soon
Fossil-fuel powered vehicles are seen as a major culprit for air pollution despite its small contribution. The whole world is already undergoing a complete overall due to COVID and some new changes may be seen in the transport sector in India soon. The current BS6 emission norms were tough to comply by and now the government is thinking of one step ahead. EVs are still in their budding stage in terms of charging infrastructure so they want to modify the already successful alternative, the CNG. Find everything below about Hydrogen enriched CNG India also known as HCNG. What has the department told? The Ministry of Road Transport and Highways of India has issued a new draft. The new draft requires suggestion on the inclusion of HCNG. HCNG is also known as hydrogen-enriched CNG. If the draft receives positive feedback it could lead to an amendment to the Central Motor Vehicle Rules 1979. CNG is already better than any other fossil fuel-powered car. The fuel is available cheaply as well is more environmentally friendly. Thanks to the Indian Government CNG infrastructure is quite good in the Indian market. No official price details are available for HCNG as of now. HCNG, however, has undergone testing and initial results show lower emissions compared to CNG. Scientifically speaking HCNG produces lower CO (Carbon Monoxide), methane and THC (Total hydrocarbon emissions). The test results also showcase that HCNG is better than any other fossil fuel in terms of fuel consumption. Cost is a major deciding factor and reports suggest that it will be meagre. HCNG can be easily installed into CNG pipelines and bus depots. Test phase of this new fuel may take place in Delhi due to its better CNG infrastructure. First 50 busses fitted with HCNG kit will be tested for practicality.
IOCL exports premium fuel to Sri Lanka
Indian Oil Corporation Ltd. (IOCL) on Saturday exported its first-ever consignment of 100 octane premium fuel, XP100 to Sri Lanka. The product is tailored for premium high-end vehicles. Flagging off the shipment at the Jawaharlal Nehru Port Trust in Mumbai, V. Satish Kumar, Director (Marketing), Indian Oil said this was the third time the Company was taking a product offshore, showcasing its potential to send quality products from India to the world. “This marks a momentous occasion as another one of our products moves out to conquer new markets in Sri Lanka,” he said. Sujoy Choudhary, Director (Planning & Business Development) and Chairman Lanka IOC, said, “This is a historic day as we flag off our premium product XP100 to Sri Lanka. We have drawn up comprehensive promotional schemes to ensure this product gets wider visibility and acceptability.” The XP100 is domestically developed, leveraging IndianOil’s indigenous Octamax Technology. Designed with anti-knock properties, it is engineered to enhance engine performance, faster acceleration, smoother drivability and improved fuel economy. The formulation is said to reduce engine deposits and emissions in high compression ratio engines, optimising vehicle performance and longevity while minimizing maintenance. It is also eco-friendly fuel with significantly reduced tailpipe emissions, said a press release here.
As Russian discounts fall, Indian state and private refiners join hands to negotiate better terms
With discounts on Russian crude oil dwindling, India, in a first such effort, has brought together state-owned and private oil refiners to jointly negotiate for higher discounts and better terms with Russian suppliers, including Russia’s largest oil company Rosneft PJSC. The government-led joint sourcing strategy involves leveraging India’s position as the world’s third-largest crude oil buyer to get better discounts on Russian oil, which have dropped to about $3 per barrel from a high of $10 earlier, said two people aware of the development.