covid-19 impact on global lng ashvath: india’s first cng

Restricted Circulation

July 2021

Contents Gas Statistics - Domestic and International

Feature Story News Briefs - National and International5 1811

COVID-19 Impact on Global LNG

Adieu dear readers,By the time this issue is in your

hands, I would have long ceased to occupy the leadership of Natural Gas Society and the privilege of sharing thoughts with you on a quarterly ba-sis through this medium.

Having been associated with the setting up of NGS and also the commencement of the quarterly Gas Statistics Review, it is but natural to hark back to some of the main features in the evolution and development of our quarterly journal.

At a time when Nationally and internationally, the Energy discussion space is increasingly being dominat-ed by hydrogen, bio methane, bio CNG, RNG (renew-able natural gas), LNG, small scale LNG, renewable energy and meeting the climate control emission targets and commitments, it is very tempting and natural to re-

Dear readers, Namaste and a warm welcome to

this edition of the Gas Statistical Re-view!

As many of you are aware, I have taken over as Executive Director from Mr. Vivek Joshi on 2nd June, 2021.

First, I take this opportunity to ex-press my sincere gratitude to Mr. Joshi – the founder Executive Director for the outstanding work done by him in establishing NGS, nurturing it and bringing it to the present level through his passionate and dedicated efforts. I look forward to continue to work with similar zeal in taking the activities further for achieving the ob-jectives of NGS.

While the founder ED, in his message, has separately shared in detail about his long experience with NGS, I would, at the outset, like to share my profession-

D V SHAStRyVIVEk JoSHI

Ashvath: India’s first CNG Mobile Refuelling Unit (MRU) mounted on a truck

Please send your comments to: Deepika Lal +919999394488 [email protected]

Continued on page 3 Continued on page 3

25

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GAS STATISTICS REPORT 3

from the editor

flect on our beginnings and the journey. There are many ways to reflect. One is like looking at things from the wrong end of a telescope when you see small objects in the distance. or you can look at it as the quickly turned pages of a child’s illustrated picture book. the latter is more interesting!

one could go on and on but that would not be fair to the readers. Suffice it would be to say that the journal has lived through and recorded some of the most exciting times in the history of natural gas. And, it has been a sheer privilege to be in touch with you on a periodical basis through the publication as well as other events till the pandemic put a halt to all inter-action.

the industry landscape, including the structure, composi-tion, policy and regulatory is today a total sea change from the fledgling one of the 2013-14. And it has been our privilege to have been witness to and having written on the phenome-nal and utterly remarkable change in the industry landscape, more particularly the spread of the CGD network in the coun-try. By the time you read this, reforms would have gathered more speed. A tSo would probably be or about to be in place, gas trading volumes on the gas exchange would have shown a healthy growth and high petrol and diesel prices would bolster CNG consumption with more CNG vehicles hitting the roads than estimated earlier.

Another distinguishing feature of the quarterly has been its unstinting optimism and support and appreciation of the Gov-ernment (MoPNG) initiatives and the improved Regulatory scenario. In October 2015 when we finally launched the GSR after several dummy runs, we were quite happily surprised by the reception that we received. And while the CGD sector has always been the focus area, we have made great efforts to cov-er all related issues including LNG, FLNG , LNG transporta-tion and Infrastructure in subsequent issues. And from that day onwards, we have witnessed the natural gas scene evolve as never before. Whether it was the “Watershed year” of 2016, when first oil and then gas prices went for a free fall (price of gas below $4 for the first time), or the launch of the Gas4India initiative by the Hon’ble Minister, in which the industry (both private and public sector) participated along with CII and, of course, NGS which later also functioned as the Secretariat.

Events have a way of appearing to cascade. It was similar with the National scene. Naturally, there were ups and downs – but some of the biggest changes (some really bold) came about in the period 2017-2020, whether it was the PNGRB initiative and pro-active facilitation of the CGD industry or the bid for 100 cities which saw many new players emerge on the scene. Gradually, consumption did grow and eventually the CGD sec-tor emerged.

It had been NGS’ contention right from the beginning that the industry had to take up the issue of increasing the generic demand. However, it has remained a cherished desire although NGS had proposed several alternatives for this and even done a study on the various sectors which could help generate demand for higher gas consumption whether it be diesel replacement, LNG transportation or infrastructure.

2020 brought in its wake, to use an old Hollywood film ref-erence, “The Good, the bad and the ugly”. The first came in the

al background. My career started from oNGC for a brief spell whereafter I joined Gas Authority of India Ltd [now known as GAIL(India)Ltd] to which oNGC transferred its ongoing Hazira-Vijaipur-Jagdishur Nat-ural Gas Pipeline Project. HVJ has been the first cross country pipeline for supply of Natural Gas to 6 Fertil-izer and 3 Power Plants in Gujarat, Madhya Pradesh, Rajasthan and UP. I gained multifarious experience of 36+ years in Natural Gas Industry. During construction, commissioning and operation of HVJ Pipeline, I was posted in Madhya Pradesh. Later, GAIL afforded to me opportunity of multifunctional exposure in techni-cal and Managerial areas such as Project Management, o&M of Natural Gas Pipelines and Gas Processing Plant, Learning & Development, HR/HRD, R&D, Start Up, etc. I was among the founder members of erstwhile Gas training Institute (now called GAIL training Insti-tute) – GtI, Noida when it was established in 1997 with the support of Danish Govt. through DANIDA. I was deputed to Denmark for 16 weeks for curriculum devel-opment activity. I had a stint as Faculty member at GtI for 5 years. I was then given the challenging task of heading the project management team for construction & commissioning of Compressor Station at Vijaipur un-der Dahej-Vijaipur Pipeline (DVPL) Project. After suc-cessfully completing the same ahead of schedule, I was entrusted with yet another responsibility of heading the operations of Gas Complex, Vijaipur which included GPU (LPG Plant), Compressor Stations and associat-ed facilities. I remained posted at Vijaipur for 4 years. I was posted back at GtI, Noida; this time - as oIC. During this tenure of six years, I actively contributed to support the business of GAIL through capability build-ing - especially in the new/upcoming areas and was in-strumental in conceptualization and implementation of various knowledge Management initiatives – such as ASME certification courses in pipeline/asset integrity management, International Workshop on CGD & CNG for the participants from SAARC Countries.

Besides, I had the opportunity to lead the multi or-ganization team constituted by PNGRB for identifying the skill gaps in workforce in CGD sector. I was also a part of organizing team of Asia Gas Partnership Sum-mits, held in the past. Similar events were organised at GtI to support needs of various organizations including IoCL, HPCL, MRPL (oNGC), GSPC, torrent, think-Gas, etc. and the Joint Venture Companies (JVCs) of GAIL, etc. During 2012-13, I was placed at Corporate Office as CGM (HRD) and later on, elevated to the po-sition of ED in 2016. I worked in the domains of both HR and HRD. Consequent upon my selection by PESB and the approval of ACC, I was appointed as Director (Personnel) on the Board of Electronics Corporation of India (ECIL) – a Schedule ‘A’ CPSE under Department of Atomic Energy in 2018. though the appointment was up to the date of my retirement on attaining the age of superannuation, yet I chose to get repatriated to

Continued on page 4 Continued on page 4

GAS STATISTICS REPORT4

from the editor

form of the success of the tenth round of bidding and some growth in the consumption of natural gas. there was also the welcome foreign partici-pation in the gas sector- Brookefield in the Reliance pipeline and the total investment with Adani Gas. A slight jolt was the slew of incentives for the EV sector, with not even a bit of thought to the CNG segment. (Merciful-ly, as a later NGS study showed, the impact on CNG was not expected to be much in the short to medium run.)

then of course came the Ugly in the form of the pandemic letting loose all kinds of problems for businesses, specially high labour-oriented ones like CGD. on behalf of the industry, NGS presented the issues to the Regulator which did take note and later granted relief to some extent. the entire oil and gas industry the world over was badly impacted.

on another front, however, things were looking up. there were signs of some recovery and the market mechanism got a boost with the launch of the Indian Gas Exchange furthering hopes of a market price discovery if not immediately, some time ahead.

today, Governments the world over are funding projects or pumping money into facilitating infrastructure or carbon sequestering which would enable the transport/ industry sector to use green fuel which would con-siderably reduce emissions. Maybe India needs to take a leaf from this book and promote gas and LNG for transport, the latter, specially for long haul transport. It is also time to think at least a bit out of the box on this. thus far, its only the gas marketing companies which are being factored as the major players for setting up the stations on highways. Perhaps it may be faster for progress if the highway authority (the NHAI for exam-ple) were to set up the stations along its highways. Similarly, if organisa-tions like the Container Corporation which has its sites at various places, would set up the LNG stations, it would lead to a faster adoption of LNG for long-haul goods transport, specially containers transport.

However back to where we started. once again I would like to reiterate the absolute privilege and pleasure it’s been to be with you every once in a quarter if not more. We do hope you have enjoyed reading as much as we at NGS enjoyed producing it. We started with a few hundred copies in the beginning but the last print produced edition was around 1000. the circulation and readership is now of course much higher since the pandemic turned us digital and we put it on the website for easy access. I would like to thank all the readers for their continued encouragement and support. I would also like to thank the senior management personnel in the companies, including CEos who often gave their opinions and sug-gestions regarding contents. No publication like this (circulated free) can sustain without financial support and I would like to take this opportunity to express my sincere gratitude to our patrons for their advertisement sup-port and I hope they will continue to do so in the times ahead also. And as I come towards the end of this epilogue, I would like to thank all the edi-torial team, Afsir (who is no longer with NGS) and Deepika, and Udayan (our designer), in particular, the Consultants at NGS and the staff for their consistent dedication without which to bring out a quarterly of this quality and content on a regular basis would not have been possible.

As you all probably are aware by now, Mr. D V Shastry, my colleague and former ED, GAIL, has now assumed charge at NGS and I am sure that he will receive the affection and support that you have been giving the publication till now.

these have been hard times for most of us. So as I take leave from you, I hope and pray that each of you, your family and team members continue to remain safe and well.

Farewell and best wishes.Vivek Joshi Former Executive Director, NGS

GAIL in May 2019. on repatriation, I was as-signed responsibilities of heading GtI, R&D and Start Up on the position of ED with dual reporting to Director (HR) and Director (BD). thus, my experience is a blend of industry and academia, and in industry - a blend of line & staff management. Basically, I am a graduate in Mechanical Engg. from VU, Ujjain, M. tech. in Energy Systems Engg. from IIt Bombay besides having a Diploma in Management and Advanced Certification in HRM [ACHRM].

I have affiliation with several Professional Bodies such as ASME, Institution of Engineers (India), AIMA, FICCI, CII, ASSoCHAM, RGIPt, IIMs, FoRE Society, IStD, SHRM, NIPM, etc. and held/holding positions therein.

Also, I have had the opportunity of exten-sive participation in National and International level Conferences/Seminars/Workshops in the domain of Natural Gas Business, both within India and overseas.

Presently, the landscape of energy sector across globe is changing speedily. So is Nat-ural Gas Industry undergoing a phenomenal and rapid transformation in the Indian energy sector. It is evident from various policy deci-sions of Govt. of India and continuing measures taken by the regulator-PNGRB. With activities initiated in about 230 GAs by more than three dozen entities engaged in the CGD sector, there are tremendous opportunities for growth. At the same time, there are several issues and areas of concern which need to be addressed for ensur-ing growth of Indian Natural Gas/CGD Sector on a sustainable basis.

the complexity of business has been multi-plied due to CoVID 19 pandemic which has hit the entire world. As all are aware, Natural Gas Society, as a body of the Indian natural gas in-dustry, has been established to catalyze the de-velopment of the industry as a whole. In order to achieve the objective, it is necessary to have active participation of all entities/stakehold-ers on a common platform so that it becomes possible to share knowledge and experience as well as present before appropriate authorities/entities issues of concern with regard to policy (ies), rules and regulations.

once again, I look forward to function in as-sociation with Team NGS for fulfilling the ob-jectives of NGS for the benefit of Natural Gas Industry and all its stakeholders.

Hoping that the present difficult situation arising out of CoVID 19 pandemic shall get over soon, I wish that everyone remains safe & healthy.

D V ShastryExecutive Director, NGS


Gas Production/Consumption/Imports (mmscmd)

Trend In Gas ProduCTIon/ConsumPTIon/ImPorTs (mmsCmd)

Trend In ConsumPTIon of PeTroleum ProduCTs

seCTor-wIse Gas ConsumPTIon of domesTIC Gas and rlnG (2020-2021)

Source: PPAC, NGS Research

In ‘000 mT 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 (P)

LPG 15350 15601 16294 18000 19623 21608 23342 24907 26330 27591

Naphtha 11222 12289 11305 11082 13271 13241 12889 14131 14268 14257

MS 14992 15744 17128 19075 21847 23765 26174 28284 29975 27951

HSD 64750 69080 68364 69416 74647 76027 81073 83528 82602 72720

FO & LSHS 9307 7656 6236 5961 6632 7150 6721 6564 6302 5995

Petroleum coke 6138 10135 11756 14558 19297 23964 25657 21346 21708 18291

Total gas consumption by sector (mmscmd)

Sector’s share in total gas consumption(%)

Consumption of LNG (mmscmd)Consumption of domestic gas (mmscmd)

48.7217.9630.7631.69

21.674.8616.8114.10

8.421.137.295.47

29.6919.929.7619.31

25.2913.0812.2116.45

19.9610.139.8412.98

fertiliser RefineryPower CGd Petrochemicals others

15.00 %

10.00

5.00

60.00

50.00

40.00

30.00

20.00

10.00

0.00 0.00

30.00

35.00

25.00

20.00

mm

scm

d

Impacted by COVID-19, the total

gas consumption in 2020-21

was lower than that in 2019-20.

Looking at the last few years,

the lnG imports have been

increasing as a percentage of

total gas consumption due to the

declining or stagnant domestic

gas production. Gas output has

however risen recently due to the

start of production at reliance’s

KG Block field. Among consumers,

fertilizer was the top consumer of

gas during 2020-21 followed by

power. CGd took the third spot.

31.69

19.31

14.10

16.45

48.72

17.96

30.76 29.69

19.92 21.67

16.81

4.86

12.2

1

8.42

1.13

5.47

19.96

10.1

3

9.84

Total gas consumption (2020-2021) : 153.74 mmscmd Total rlnG consumption : 86.67 mmscmdTotal domestic gas consumption : 67.08 mmscmd

25.29

Gas statistics - domestic and international

2011

-12

2013

-14

2014

-15

2012

-13

2015

-16

2016

-17

2017

-18

2018

-19

2019

-20

2020

-21

LNG imports (mmscmd)Net gas production (mmscmd) Import dependency (%)

120.00

140.00

100.00

60.00

40.00

80.00

20.00

0.00

mm

scm

d

50.00

60.00

40.00

30.00

20.00

0.00

10.00

%

27.93 30.71

33.9936.27

40.73

46.38 47.27

52.8354.19

127.

27

108.

91

94.7

2

89.5

7

85.2

9

84.5

1

86.9

3

87.8

3

82.9

0

76.1

2

49.3

1

48.2

6

48.7

7

50.9

8

58.6

0 68.0

8

75.1

8

78.7

4.

92.8

4

90.0

3

13.0

8

7.29

44.62

9.76

12.98


Gas - Price & AnalyticsCrude PrICe (IndIan baskeT)

brenT/ wTI/ JaPan oIl ImPorT PrICe ($/barrrel)

InTernaTIonal Gas/lnG PrICes ($/mmbTu)

domesTIC Gas PrICe ($/mmbTu)

$/Ba

rrel

9

10

87654

3

210

3.82

6.61

5.3

2.5 2.48

5.56

2.89 3.06 3.363.69

6.36.78

7.67

9.32

8.43

5.61

0

Oct 15-Mar 16

Apr-Sep 16

Oct 16-Mar 17

Apr-Sep 17

Oct 17-Mar 18

Apr-Sep 18

Oct 18-Mar 19

Apr-Sep 19

Oct 19- Mar 20

Apr- Sep 20

Oct 20 - Mar 21

Apr-Sep 2021

$/Ba

rrel

70.00

80.00

60.00

50.00

40.00

30.00

20.00

10.00

0.00

Price cap for deepwater, ultra deepwater, high temp high pressure areasDomestic gas price (GCV basis)

Apr-2

0

May

-20

Jun-

20

Jul-2

0

Aug-

20

Sep-

20

Oct-2

0

Nov-

20

Dec-

20

Jan-

21

Feb-

21

Mar

-21

Apr-2

1

May

-21

80

40

50

60

70

30

20

20

18

14

10

6

2

16

12

8

4

0

10

0

Japan oil import price ($/barrel)

Brent ($/barrel)

WTI ($/barrel)

East Asian Delivered LNG indicator

Henry Hub

European spot Indicator

Japan LNG contract price

Source: NGS Research, PPAC, EIA, LNG Journal

30.6

19.9

40.63 43.35 44.19

41.35 40.66

43.34

49.84

54.79

61.22

64.73 66.9563.40

3.06 3.23 2.39

1.79 1.79

3.624.06

Gas prices registered a record

rise in beginning of the year

due to cold winters in asia and

europe and shortage of ships

for transporting lnG. european

and asian spot prices retreated

later as buying focus shifted to

the march and april shoulder

months. Moreover, temperatures

had warmed and nuclear

availability improved in Japan,

while supplies were creeping

up in Asia. Currently, global gas

prices are well supported by

low storage levels in europe and

strong asian lnG demand.


Crude prices have been

rising steadily since

the beginning of 2021

buoyed both by hopes of

improving demand due

to economic recoveries

across geographies as

well as supply cuts by key

oil-producing countries.

rising crude oil prices

have contributed to petrol

and diesel prices rising to

record high levels across

the country.

Jan 20 Feb 20 Mar 20 Apr 20 May 20 Jun 20 Jul 20 Aug 20 Sep 20 Oct 20 Nov 20 Dec 20 Jan 21 Feb 21 Mar 21 Apr 21 May 21

63.65 55.66 32.01 18.38 29.38 40.27 43.24 44.74 40.91 40.19 42.69 49.99 54.77 61.96 65.19 64.77 68.04

57.52 50.54 29.21 16.55 28.56 38.31 40.71 42.34 39.63 39.4 40.94 47.02 52 59.08 62.35 61.7 65.24

70.33 70.63 62.16 42.21 24.96 24.55 32.78 43.45 46.25 44.54 42.31 44.46 50.12 55.86 61.65 66.26

Apr 20 May 20 Jun 20 Jul 20 Aug 20 Sep 20 Oct 20 Nov 20 Dec 20 Jan 21 Feb 21 Mar 21 Apr 21 May 21 Jun 21

1.97 1.54 1.67 1.79 2.82 3.91 5.13 5.05 5.80 7.57 6.25 6.09 7.04 8.88 9.51

1.69 1.71 1.58 1.70 2.30 2.01 2.32 2.56 2.60 2.63 5.32 2.56 2.58 2.89 3.10

5.91 6.11 6.82 7.10 7.28 7.04 7.02 7.15 7.80 8.40 9.09 9.52 8.92 9.08 9.46

2.4 2.2 3.80 4.20 3.40 4.50 6.00 6.80 7.40 18.50 12.70 6.60


PNG CONNeCtIONS AND CNG StAtIONS ACROSS INDIA (NOS.), AS ON 31.03.2021 (P)


CnG / PnG

CNG stations Domestic Commercial Industrial

Kakinada Bhagyanagar Gas Limited 12 58,087 128 2West Godavari District Godavari Gas Private Limited 13 50,762 12 1East Godavari District (EAAA) Godavari Gas Private Limited 15 49,470 5 0Vijaywada Bhagyanagar Gas Limited 30 43,124 53 0Krishna District (EAAA) Megha Engineering & Infrastructure Limited 15 10,160 90 15

85 211,603 288 18Andhra Pradesh, Karnataka & Tamil Nadu

Chittoor, Kolar and Vellore Districts AGP City Gas Private Limited 0 0 0 1

0 0 0 1Upper Assam Assam Gas Company Limited 1 36,406 1,179 404Cachar, Hailakandi & Karimganj Districts Purba Bharati Gas Private Limited 0 285 0 0

1 36,691 1,179 404Patna District GAIL (India) Limited 9 30,336 11 0Begusarai District Think Gas Begusarai Private Limited 3 0 0 0Aurangabad, Kaimur & Rohtas Districts Indian Oil Corporation Limited 1 0 0 0

13 30,336 11 0Chandigarh (UT), Haryana, Punjab & Himachal Pradesh

Chandigarh Indian-Oil Adani Gas Private Limited 17 111,737 37 11

17 111,737 37 11Dadra & Nagar Haveli (UT) UT of Dadra & Nagar Haveli Gujarat Gas Limited 7 7,458 54 54

7 7,458 54 54Daman & Diu (UT) UT of Daman Indian-Oil Adani Gas Private Limited 4 4,817 30 29

4 4,817 30 29Daman and Diu & Gujarat Diu & Gir Somnath Districts IRM Energy Private Limited 9 0 0 0

9 0 0 0North Goa District Goa Natural Gas Private Limited 5 5,963 2 9South Goa District Indian-Oil Adani Gas Private Limited 2 0 0 0

7 5,963 2 9Surat, Bharuch, Ankleshwar Gujarat Gas Limited 108 684,828 9,187 1,010Ahmedabad City and Daskroi Area Adani Gas Limited 70 420,686 2,858 854Rajkot Gujarat Gas Limited 74 258,764 1,041 1,424Gandhinagar Mehsana Sabarkantha Sabarmati Gas Limited 113 208,551 909 366Vadodara Vadodara Gas Limited 20 178,119 2,635 7Gandhinagar Gujarat Gas Limited 14 127,460 541 30Valsad Gujarat Gas Limited 25 110,793 364 689Navsari Gujarat Gas Limited 23 105,580 261 52Nadiad Gujarat Gas Limited 32 64,646 391 20Anand District (EAAA) Gujarat Gas Limited 29 37,684 243 17Bhavnagar Gujarat Gas Limited 26 37,070 293 69Hazira Gujarat Gas Limited 1 36,320 132 17Anand area including Kanjari & Vadtal Villages (in Kheda District) Charotar Gas Sahakari Mandali Limited 7 34,867 674 142Banaskantha District IRM Energy Private Limited 30 25,900 107 11Surendranagar Gujarat Gas Limited 18 25,372 238 362Jamnagar Gujarat Gas Limited 19 23,206 171 108Panchmahal District Gujarat Gas Limited 25 16,666 94 84Patan District Sabarmati Gas Limited 22 13,244 25 6Amreli District Gujarat Gas Limited 13 5,318 30 1Dahod District Gujarat Gas Limited 11 2,983 10 21Kutch (West) Gujarat Gas Limited 12 1,916 25 2Dahej Vagra Taluka Gujarat Gas Limited 4 1,113 13 31

Goa

23. Status of PNG connections and CNG stations across India (Nos.), as on 31.03.2021 (P)

Andhra Pradesh Total

Andhra Pradesh, Karnataka & Tamil Nadu Total

Goa Total

Geographical Area/CGD Networks Authorized CGD Entity

Daman and Diu & Gujarat Total

Assam Total

Bihar Total

Chandigarh (UT), Haryana, Punjab & Himachal Pradesh Total

Dadra & Nagar Haveli (UT) Total

Daman & Diu (UT) Total

Bihar

Assam

PNG connections State/Union Territory

Andhra Pradesh

Gujarat

28 Snapshot of India's Oil Gas data - April, 2021


Geographical Area/CGD Networks Authorized CGD EntityPNG connections

State/Union Territory

Vadodara Adani Gas Limited 6 616 1 88Narmada (Rajpipla) District Gujarat Gas Limited 4 53 0 0Ahmedabad City (Only for CNG) Hindustan Petroleum Corporation Limited 22 - - -Kheda District (EAAA) & Mahisagar District Adani Gas Limited 13 0 0 0Junagadh District Torrent Gas Private Limited 12 0 0 0Ahmedabad District (EAAA) Gujarat Gas Limited 8 0 0 0Surendranagar District (EAAA) & Morbi District (EAAA) Adani Gas Limited 6 0 0 0Navsari District (EAAA), Surat District (EAAA), Tapi District (EAAA) & the Dangs District

Adani Gas Limited 5 0 0 0

Porbandar District Adani Gas Limited 4 0 0 0Barwala & Ranpur Talukas Adani Gas Limited 3 0 0 0

779 2,421,755 20,243 5,411Faridabad Adani Gas Limited 21 62,536 203 392Sonipat GAIL Gas Limited 18 25,750 42 172Gurugram Haryana City Gas Distribution Limited 29 22,694 142 167Panipat District Indian-Oil Adani Gas Private Limited 11 16,939 11 25Rewari District Indraprastha Gas Limited 15 10,477 27 73Kaithal District Indraprastha Gas Limited 5 10,426 0 0Karnal District Indraprastha Gas Limited 10 9,769 5 9Ambala & Kurukshetra Districts HPOIL Gas Private Limited 8 6,575 0 0Yamunanagar District Bharat Petroleum Corporation Limited 4 6,150 0 0Nuh and Palwal Distircts Adani Gas Limited 12 1,476 4 37Rohtak District Bharat Petroleum Corporation Limited 3 1,424 0 0Jhajjar District Haryana City Gas (KCE) Private Limited 3 24 0 0Bhiwani, Charkhi Dadri & Mahendragarh Districts Adani Gas Limited 12 0 0 0Sonipat District (EAAA) & Jind District Hindustan Petroleum Corporation Limited 8 0 0 0Hisar District HCG (KCE) Private Limited 2 0 0 0Gurugram Indraprastha Gas Limited 14 15,814 87 20

175 190,054 521 895Haryana & Himachal Pradesh Panchkula District (EAAA), Sirmaur, Shimla & Solan (EAAA) Districts Indian-Oil Adani Gas Private Limited 5 0 0 0

5 0 0 0Haryana & Punjab Sirsa, Fatehabad and Mansa (Punjab) Districts Gujarat Gas Limited 8 0 0 0

8 0 0 0Himachal Pradesh Bilaspur, Hamirpur & Una Districts Bharat Gas Resources Limited 1 1,000 0 0

1 1,000 0 0Ranchi District GAIL (India) Limited 4 18,010 0 0East Singhbhum District GAIL (India) Limited 4 15,078 0 0Giridih & Dhanbad Districts GAIL Gas Limited 7 5,948 0 0Seraikela-Kharsawan District GAIL Gas Limited 5 2,950 0 0Bokaro, Hazaribagh & Ramgarh Districts Indian Oil Corporation Limited 5 0 0 0

25 41,986 0 0Bengaluru Rural and Urban Districts GAIL Gas Limited 33 196,086 249 141Tumkur District Megha Engineering & Infrastructure Limited 0 15,724 97 35Dharwad District Indian-Oil Adani Gas Private Limited 5 13,387 5 0Belgaum District Megha Engineering & Infrastructure Limited 2 12,791 65 22Dakshina Kannada District* GAIL Gas Limited 13 7,848 0 0Ramanagara District Maharashtra Natural Gas Limited 7 1,203 0 1Ballari & Gadag Districts Bharat Gas Resources Limited 4 0 0 0Chitradurga & Davanagere Districts Unison Enviro Private Limited 3 0 0 0Udupi District Adani Gas Limited 2 0 0 0Mysuru, Mandya and Chamarajanagar Districts AGP City Gas Private Limited 2 0 0 0

Karnataka

Jharkhand Total

Gujarat Total

Haryana

Jharkhand

Haryana Total

Haryana & Himachal Pradesh Total

Haryana & Punjab Total

Himachal Pradesh Total






Puducherry & Tamil Nadu Karaikal & Nagapattinam Districts Torrent Gas Private Limited 2 0 0 02 0 0 0

Rupnagar District Bharat Petroleum Corporation Limited 6 4,950 0 0Amritsar District Gujarat Gas Limited 14 3,497 36 3Fatehgarh Sahib District IRM Energy Private Limited 7 1,432 18 48Bhatinda District Gujarat Gas Limited 5 970 0 0Ludhiana District (EAAA), Barnala & Moga Districts Think Gas Ludhiana Private Limited 11 110 0 0SAS Nagar District (EAAA), Patiala & Sangrur Districts Torrent Gas Private Limited 16 22 0 0Hoshiarpur and Gurdaspur Districts Gujarat Gas Limited 16 0 0 0Jalandhar District (EAAA), Kapurthala & SBS Nagar Districts Think Gas Ludhiana Private Limited 10 0 0 0Jalandhar Jay Madhok Energy Private Limited led Consortium 3 0 0 0Ludhiana Jay Madhok Energy Private Limited led Consortium 3 0 0 0Ferozepur, Faridkot and Sri Muktsar Sahib Districts Gujarat Gas Limited 2 0 0 0

93 10,981 54 51Ajmer, Pali and Rajsamand Districts Indraprastha Gas Limited 8 37,625 0 0Kota Rajasthan State Gas Limited 7 16,458 17 15Bhiwadi (in Alwar District) Haryana City Gas Distribution (Bhiwadi) Limited 1 2,087 0 53Barmer, Jaisalmer & Jodhpur Districts AGP CGD India Private Limited 6 37 1 2Kota District (EAAA), Baran & Chittorgarh (Only Rawatbhata Taluka) Districts Torrent Gas Private Limited 11 2 0 0Chittorgarh (Other than Rawatbhata Taluka) & Udaipur Districts* Adani Gas Limited 11 0 0 0Jalore and Sirohi Districts Gujarat Gas Limited 6 0 0 0Bhilwara & Bundi Districts Adani Gas Limited 5 0 0 0Dholpur District Dholpur CGD Private Limited 4 0 0 0CNG (DBS) NOC Rajasthan State Gas Limited 2 0 0 0

61 56,209 18 70Tiruppur District Adani Gas Limited 10 0 0 0Cuddalore, Nagapattinam & Tiruvarur Districts Adani Gas Limited 9 0 0 0Ramanathapuram District AGP CGD India Private Limited 2 0 0 0

21 0 0 0Hyderabad Bhagyanagar Gas Limited 83 143,248 28 45Medak, Siddipet & Sangareddy Districts Torrent Gas Private Limited 14 0 0 4

97 143,248 28 49Agartala Tripura Natural Gas Company Limited 5 42,541 491 62West Tripura (EAAA) District Tripura Natural Gas Company Limited 4 6,566 0 0Gomati District Tripura Natural Gas Company Limited 3 0 0 0

12 49,107 491 62Gautam Budh Nagar District Indraprastha Gas Limited 51 258,734 607 890Ghaziabad & Hapur Districts Indraprastha Gas Limited 56 244,682 304 390Kanpur Central UP Gas Limited 36 84,044 231 81Agra Green Gas Limited 25 79,094 61 17Lucknow Green Gas Limited 37 69,870 57 11Meerut GAIL Gas Limited 17 49,723 44 62Varanasi District GAIL (India) Limited 10 36,405 30 1Allahabad Indian-Oil Adani Gas Private Limited 6 36,142 30 6Bareilly Central UP Gas Limited 16 34,532 129 23Meerut District (EAAA), Muzaffarnagar & Shamli Districts Indraprastha Gas Limited 10 16,525 6 0Kanpur (EAAA) District, Fatehpur and Hamirpur Districts Indraprastha Gas Limited 7 14,404 0 0Moradabad Torrent Gas Moradabad Limited 6 9,346 13 85Saharanpur District Bharat Petroleum Corporation Limited 6 8,902 0 0Khurja Adani Gas Limited 6 7,080 4 232

Tamil Nadu

Tripura

Puducherry & Tamil Nadu Total

Punjab Total

Punjab

Rajasthan

Telangana

Rajasthan Total

Tamil Nadu Total

Telangana Total

Tripura Total















Karnataka

Jharkhand Total

Gujarat Total

Haryana

Jharkhand

Haryana Total

















Karnataka

Jharkhand Total

Gujarat Total

Haryana

Jharkhand

Haryana Total








Bidar District Bharat Gas Resources Limited 1 0 0 072 247,039 416 199

Ernakulam District Indian-Oil Adani Gas Private Limited 9 42,429 12 9Palakkad & Thrissur Districts Indian-Oil Adani Gas Private Limited 10 0 0 0Alapuzzha, Kollam and Thiruvananthapuram Districts AGP City Gas Private Limited 2 0 0 3Kozhikode & Wayanad Districts Indian-Oil Adani Gas Private Limited 3 0 0 0Malappuram District Indian-Oil Adani Gas Private Limited 3 0 0 0

27 42,429 12 12Indore (including Ujjain City) Aavantika Gas Limited 39 62,873 94 236Gwalior Aavantika Gas Limited 15 24,277 44 8Dewas GAIL Gas Limited 3 13,257 28 42Satna & Shandol Districts Bharat Gas Resources Limited 2 1,580 0 0Rewa District Indian Oil Corporation Limited 3 810 0 0Dhar District Naveriya Gas Private Limited 2 615 14 0Guna District Indian Oil Corporation Limited 1 506 0 0Raisen, Shajapur and Sehore Districts GAIL Gas Limited 4 44 0 0Bhopal & Rajgarh Districts Think Gas Bhopal Private Limited 16 1 1 1Ujjain (EAAA) District, Dewas (EAAA) District and Indore (EAAA) District Gujarat Gas Limited 6 0 0 0Gwalior (EAAA) District and Sheopur District Rajasthan State Gas Limited 2 0 0 0Shivpuri District Think Gas Bhopal Private Limited 1 0 0 0

94 103,963 181 287Madhya Pradesh and Rajasthan Jhabua, Banswara, Ratlam and Dungarpur Districts Gujarat Gas Limited 8 0 0 0

8 0 0 0

Madhya Pradesh and Uttar Pradesh Jhansi (EAAA) District, Bhind, Jalaun, Lalitpur and Datia Districts Adani Gas Limited 6 0 0 0

6 0 0 0Mumbai & Greater Mumbai Mahanagar Gas Limited 142 938,747 3,167 15Thane urban and adjoining Municipalities Mahanagar Gas Limited 112 623,804 943 67Pune City including Pimpri - Chichwad & adjoining contigeneous areas Hinjewadi, Chakan, Talegaon

Maharashtra Natural Gas Limited 87 358,058 377 225

Raigarh District (EAAA) Mahanagar Gas Limited 18 40,288 0 1Kolhapur District HPOIL Gas Private Limited 6 3,037 0 0Pune District (EAAA) Torrent Gas Pune Limited 28 1,488 0 4Sindhudurg District Maharashtra Natural Gas Limited 6 1,438 0 0Ratnagiri District Unison Enviro Private Limited 15 1,193 1 28Palghar District & Thane Rural Gujarat Gas Limited 17 468 14 54Sangli & Satara Districts Bharat Gas Resources Limited 9 455 0 0Ahmednagar & Aurangabad Districts Bharat Gas Resources Limited 13 0 0 0Latur & Osmanabad Districts Unison Enviro Private Limited 3 0 0 0

456 1,968,976 4,502 394Maharashtra & Gujarat Valsad (EAAA), Dhule & Nashik Districts Maharashtra Natural Gas Limited 32 25,023 0 0

32 25,023 0 0

National Capital Territory of Delhi (UT) National Capital Territory of Delhi Indraprastha Gas Limited 436 1,065,662 2,683 1,589

436 1,065,662 2,683 1,589Khordha District GAIL (India) Limited 10 17,152 0 0Cuttack District GAIL (India) Limited 6 8,009 0 0Ganjam, Nayagarh & Puri Districts GAIL Gas Limited 2 873 0 0Sundargarh & Jharsuguda Districts GAIL Gas Limited 2 756 0 0Balasore, Bhadrak & Mayurbhanj Districts Adani Gas Limited 4 0 0 0

24 26,790 0 0

National Capital Territory of Delhi (UT) Total

Odisha Total

Kerala

Maharashtra

Odisha

Karnataka Total

Kerala Total

Madhya Pradesh Total

Madhya Pradesh and Rajasthan Total

Madhya Pradesh and Uttar Pradesh Total

Madhya Pradesh

Maharashtra Total

Maharashtra & Gujarat Total




Source: PPAC, PNGRB; *Others-APGDC, HEPL, IGGL, IMC, Consortium of H-Energy

Gas pipeline network (as of 31.12. 2020)length in km & Capacity in mmscmd GAIL GSPL PIL IOC AGCL RGPL GGL DFPCL ONGC GIGL GItL Others* total

Operational Length 8241 2265 1460 132 105 312 73 42 24 12654 Capacity 171.6 43 85 20 2.4 3.5 5.1 0.7 6 337.3Partially commissioned Length 3643 23 442 364 4472 Capacity Total operational Length 11884 2265 1460 155 105 312 73 42 24 442 364 17126Under Construction Length 6242 1398 2335 1678 3780 15543 Capacity 23.2 157.7 Total Length 18126 2265 1460 1553 105 312 73 42 24 2777 2042 3780 32559

existing lnG Terminals Location Promoters Capacity (mmtpa) Cap. Utilisation on 1.5.21 apr 20- mar 21 (%)Dahej Petronet LNG 17.5 94Hazira Shell Energy 5 76.8Dabhol* Konkan LNG 5 75.6Kochi Petronet LNG 5 17.3Mundra GSPC LNG 5 34.8Ennore IOC 5 13total capacity 42.5 * to be increased to 5 mmtpa with breakwater

CGd faCTsheeTGas Consumption by CGD (2020-2021) (mmscmd) 25.3

No. of authorised GAs 232

No. of CNG stations (31.03.2021) 3101

No. of PNG connections (million) (31.03.2021) 7.86













Karnataka

Jharkhand Total

Gujarat Total

Haryana

Jharkhand

Haryana Total








Puducherry & Tamil Nadu Karaikal & Nagapattinam Districts Torrent Gas Private Limited 2 0 0 02 0 0 0

Rupnagar District Bharat Petroleum Corporation Limited 6 4,950 0 0Amritsar District Gujarat Gas Limited 14 3,497 36 3Fatehgarh Sahib District IRM Energy Private Limited 7 1,432 18 48Bhatinda District Gujarat Gas Limited 5 970 0 0Ludhiana District (EAAA), Barnala & Moga Districts Think Gas Ludhiana Private Limited 11 110 0 0SAS Nagar District (EAAA), Patiala & Sangrur Districts Torrent Gas Private Limited 16 22 0 0Hoshiarpur and Gurdaspur Districts Gujarat Gas Limited 16 0 0 0Jalandhar District (EAAA), Kapurthala & SBS Nagar Districts Think Gas Ludhiana Private Limited 10 0 0 0Jalandhar Jay Madhok Energy Private Limited led Consortium 3 0 0 0Ludhiana Jay Madhok Energy Private Limited led Consortium 3 0 0 0Ferozepur, Faridkot and Sri Muktsar Sahib Districts Gujarat Gas Limited 2 0 0 0

93 10,981 54 51Ajmer, Pali and Rajsamand Districts Indraprastha Gas Limited 8 37,625 0 0Kota Rajasthan State Gas Limited 7 16,458 17 15Bhiwadi (in Alwar District) Haryana City Gas Distribution (Bhiwadi) Limited 1 2,087 0 53Barmer, Jaisalmer & Jodhpur Districts AGP CGD India Private Limited 6 37 1 2Kota District (EAAA), Baran & Chittorgarh (Only Rawatbhata Taluka) Districts Torrent Gas Private Limited 11 2 0 0Chittorgarh (Other than Rawatbhata Taluka) & Udaipur Districts* Adani Gas Limited 11 0 0 0Jalore and Sirohi Districts Gujarat Gas Limited 6 0 0 0Bhilwara & Bundi Districts Adani Gas Limited 5 0 0 0Dholpur District Dholpur CGD Private Limited 4 0 0 0CNG (DBS) NOC Rajasthan State Gas Limited 2 0 0 0

61 56,209 18 70Tiruppur District Adani Gas Limited 10 0 0 0Cuddalore, Nagapattinam & Tiruvarur Districts Adani Gas Limited 9 0 0 0Ramanathapuram District AGP CGD India Private Limited 2 0 0 0

21 0 0 0Hyderabad Bhagyanagar Gas Limited 83 143,248 28 45Medak, Siddipet & Sangareddy Districts Torrent Gas Private Limited 14 0 0 4

97 143,248 28 49Agartala Tripura Natural Gas Company Limited 5 42,541 491 62West Tripura (EAAA) District Tripura Natural Gas Company Limited 4 6,566 0 0Gomati District Tripura Natural Gas Company Limited 3 0 0 0

12 49,107 491 62Gautam Budh Nagar District Indraprastha Gas Limited 51 258,734 607 890Ghaziabad & Hapur Districts Indraprastha Gas Limited 56 244,682 304 390Kanpur Central UP Gas Limited 36 84,044 231 81Agra Green Gas Limited 25 79,094 61 17Lucknow Green Gas Limited 37 69,870 57 11Meerut GAIL Gas Limited 17 49,723 44 62Varanasi District GAIL (India) Limited 10 36,405 30 1Allahabad Indian-Oil Adani Gas Private Limited 6 36,142 30 6Bareilly Central UP Gas Limited 16 34,532 129 23Meerut District (EAAA), Muzaffarnagar & Shamli Districts Indraprastha Gas Limited 10 16,525 6 0Kanpur (EAAA) District, Fatehpur and Hamirpur Districts Indraprastha Gas Limited 7 14,404 0 0Moradabad Torrent Gas Moradabad Limited 6 9,346 13 85Saharanpur District Bharat Petroleum Corporation Limited 6 8,902 0 0Khurja Adani Gas Limited 6 7,080 4 232

Tamil Nadu

Tripura

Puducherry & Tamil Nadu Total

Punjab Total

Punjab

Rajasthan

Telangana

Rajasthan Total

Tamil Nadu Total

Telangana Total

Tripura Total





Mathura Sanwariya Gas Limited 11 4,589 39 78Amethi, Pratapgarh & Raebareli Districts Bharat Gas Resources Limited 6 1,824 0 0Mirzapur, Chandauli and Sonbhadra Districts GAIL Gas Limited 7 1,308 0 0Jhansi Central UP Gas Limited 5 961 0 0Faizabad & Sultanpur Districts Green Gas Limited 2 841 0 0Moradabad (EAAA) District Torrent Gas Private Limited 15 674 0 1Auraiya, Kanpur Dehat & Etawah Districts Torrent Gas Private Limited 19 505 0 0Allahabad District (EAAA), Bhadohi & Kaushambi Districts Indian-Oil Adani Gas Private Limited 9 348 0 0Basti and Ambedkarnagar Districts Torrent Gas Private Limited 11 0 0 0Gonda and Barabanki Districts Torrent Gas Private Limited 11 0 0 0Azamgarh, Mau and Ballia Districts Torrent Gas Private Limited 9 0 0 0Farrukhabad, Etah and Hardoi Districts Hindustan Petroleum Corporation Limited 8 0 0 0Bareilly (EAAA) District, Pilibhit and Rampur Districts Hindustan Petroleum Corporation Limited 7 0 0 0Bulandshahr District (EAAA), Aligarh & Hathras Districts Indian-Oil Adani Gas Private Limited 6 0 0 0Shahjahanpur and Budaun Districts Hindustan Petroleum Corporation Limited 6 0 0 0Bulandshahr (part) District Indian-Oil Adani Gas Private Limited 5 0 0 0Mainpuri and Kannauj Districts Hindustan Petroleum Corporation Limited 4 0 0 0Bagpat District Bagpat Green Energy Private Limited 3 0 0 0Jaunpur and Ghazipur Districts Indian-Oil Adani Gas Private Limited 3 0 0 0Unnao (EAAA) District Green Gas Limited 1 0 0 0Gorakhpur, Sant Kabir Nagar & Kushinagar Districts Torrent Gas Private Limited 16 40 0 0

453 960,573 1,555 1,877Uttar Pradesh & Rajasthan Firozabad (Taj Trapezium Zone) GAIL Gas Limited 27 18,000 1 341

27 18,000 1 341Uttar Pradesh and Uttrakhand Bijnor and Nainital Districts Hindustan Petroleum Corporation Limited 6 0 0 0

6 0 0 0Haridwar District Haridwar Natrural Gas Private Limited 4 20,946 0 0Udham Singh Nagar District Indian-Oil Adani Gas Private Limited 6 10,196 33 40Dehradun District GAIL Gas Limited 6 7,845 0 0

16 38,987 33 40Burdwan District Indian-Oil Adani Gas Private Limited 10 0 0 0Kolkata Muncipal Corporation and Parts of Adjoining Districts Bengal Gas Company Limited 2 0 0 0Howrah (EAAA) District and Hoogly (EAAA) District Hindustan Petroleum Corporation Limited 2 0 0 0Nadia (EAAA) District and North 24 Parganas (EAAA) District Hindustan Petroleum Corporation Limited 1 0 0 0CNG Stations Great Eastern Energy Corporation Limited (GEECL) 7 0 0 0

22 0 0 03,101 7,820,387 32,339 11,803

Source- PNGRB & GEECLNote-1. All the GAs where PNG connections/CNG Stations have been established is considered as Operational. 2. Under normal conditions, operation of any particular GA commences within around one year of authorization.3. EAAA stands for Excluding/Except Area Already Authorized | * stands for Sub-Judice | # stands for authorization of GA cancelled

West Bengal

Uttrakhand

Uttar Pradesh

Uttrakhand Total

Uttar Pradesh Total

Uttar Pradesh & Rajasthan Total

Uttar Pradesh and Uttrakhand Total

West Bengal TotalGrand Total


CGd / lnG / PIPelInes


coVer storY

By Deepika Lal

Despite the ongoing pandem-ic, gas/LNG was one of the few commodities that showed growth in the year 2020. the LNG sector adjusted to great

demand fluctuations with incredible agility during 2020 and first half of 2021, navigating between huge drops in demand levels at the height of the pandemic lockdowns, through exceptional upward spikes of the winter deep freeze in the beginning of 2021.

Let’s take a look at what happened in LNG trade, liquefaction, regasification, LNG and CNG fuelling infrastructure, LNG shipping and its pricing since the beginning of the pandemic.

lnG Trade the global LNG trade during 2020 increased

to 356.1 million tonnes (MT), a small increase of 1.4 MT versus 2019, but another year of consecutive growth in LNG trade despite CoVID-19 related impacts on the supply and

Global LNG Trade (MT) (2020) 356.1

Liquefaction Capacity (MTPA) (2020) 452.9

Liquefaction capacity under construction (MTPA) (as of Feb 2021) 139.1

Regasification capacity (MTPA) (as of Feb 2021) 850.1

FSRU capacity (MTPA) (as of Feb 2021) 115.5

LNG Fleet (2020) (Number of vessels) 572

Largest exporter Australia

Largest importer Japan

demand sides. this was mostly supported by increased ex-

ports from the US and Australia, together adding 13.4 MT of exports. While the largest exporting region continues to be Asia Pacific, Australia overtook Qatar as the largest LNG exporter in the world. However, a significant number of markets exported less volumes in 2020 than they did in 2019, a result of a mix of technical

Impact on COVID-19

Global LNGkey Global sTaTIsTICs

lnG Trade beTween reGIons In 2020 (mT)

24 25

IGU World LNG report - 2021 Edition

Australia, 77.8 , 22% Qatar, 77.1, 22%

USA , 44.8 , 13% Russia , 29.6 , 8%

Malaysia , 23.9 , 7% Nigeria , 20.6 , 6%

Indonesia , 15.0 , 4% Algeria , 10.6 , 3%

Trinidad & Tobago , 10.1 , 3% Oman , 9.8 , 3%

Papua New Guinea , 8.3 , 2% Brunei , 6.2 , 2%

UAE , 5.7 , 2% Angola, 4.6 , 1%

Peru, 3.8 , 1% Norway , 3.2 , 1%

Equatorial Guinea, 2.6 , 1% Egypt ,1.3 , 0%

Cameroon , 1.1 , 0% Argentina , 0.2 , 0%

3.1

3.2

MT

Africa Asia-Pacific Europe FSU Latin America Middle East North America

USA

Australia

Russia

Angola

Argentin

a

Papua New G

uineaPeru UAE

Camero

on

Brunei

Equatoria

l Guinea

Nigeria

Indonesia

Oman

Qatar

Norway

AlgeriaEgyp

t

Malaysia

Trinidad &

Tobago-4

-2

0

2

4

6

8

10

12

China, 1.22, 47% Bangladesh, 0.18, 7%

USA, 0.16, 6% Japan, 0.15, 6%

India, 0.14, 5% Kuwait, 0.13, 4%

Jamaica, 0.07, 3% Greece, 0.07, 3%

Chinese Taipei, 0.07, 3% Mexico, 0.06, 3%

South Korea, 0.06, 2% Myanmar, 0.06, 2%

Sweden, 0.06, 2% Gibraltar, 0.05, 2%

Spain , 0.05, 2% Argentina, 0.04, 2%

Panama, 0.01, 0% Norway, 0.01, 0%

Singapore, 0.00, 0% France, 0.00, 0%

Netherlands, 0.00, 0% Netherlands, 0.00, 0%

3.3

3.4

3.5

3.6

Singapore , 1.08 , 42% France , 0.46 , 18%

Netherlands , 0.44 , 17% Belgium , 0.16 , 6%

Jamaica, 0.16 , 6% Malaysia , 0.14 , 5%

Dominican Rep. , 0.06 , 2% United States , 0.04 , 2%

South Korea , 0.03 , 1% Spain , 0.02 , 1%

Chi

na

Indi

a

Turk

ey

Chi

nese

Tai

pei

Sout

h Ko

rea

Thai

land

Kuw

ait

Jam

aica

Chi

le

Pola

nd

Can

ada

Mya

nmar

Arge

ntin

a

UAE

Ban

glad

esh

Swed

en

Gre

ece

Bra

zil

Col

ombi

a

Lith

uani

a

Finl

and

Dom

inic

an R

ep.

Isra

el

Nor

way

Gib

ralta

r

Port

ugal

Mal

ta

Egyp

t

Sing

apor

e

UK

Mal

aysi

a

Pana

ma

Spai

n

Net

herl

ands

USA

Jord

an

Paki

stan

Ital

y

Indo

nesi

a

Bel

gium

Japa

n

Fran

ce

Mex

ico

MT

Middle East Asia-Pacific Africa Latin America FSU Europe North America Asia

Japan, 74.43 , 21% China, 68.91, 19%

South Korea, 40.81, 11% India, 26.63, 7%

Chinese Taipei, 17.76, 5% Spain, 15.37, 4%

United Kingdom, 13.43, 4% France, 13.06, 4%

Turkey, 10.72, 3% Italy, 9.07, 3%

Pakistan, 7.42, 2% Thailand, 5.61, 2%

Netherlands, 5.33. 1% Bangladesh, 4.18, 1%

Portugal, 4.07, 1% Kuwait, 4.07, 1%

Belgium, 3.21, 1% Singapore, 3.19, 1%

Indonesia, 2.75, 1% Poland, 2.70, 1%

Chile, 2.69, 1% Malaysia, 2.57, 1%

Brazil, 2.39, 1% Greece, 2.20, 1%

Mexico, 1.88, 1% USA, 1.82, 1%

UAE, 1.46, 0% Lithuania, 1.44, 0%

Argentina, 1.37, 0% Dominican Rep. , 1.17 , 0%

Jordan, 0.82, 1% Jamaica, 0.72, 0%

Canada, 0.63, 0% Israel, 0.57, 0%

Sweden, 0.36, 0% Malta, 0.32, 0%

Colombia, 0.30, 0% Panama, 0.22, 0%

Myanmar, 0.18, 0% Finland, 0.15, 0%

Norway, 0.12, 0% Gibraltar, 0.05, 0%

-4

-2

0

2

4

6

8

3.3NET LNG IMPORTS BY MARKETMyanmar was a new addition to the list of global LNG net importers in 2020, importing 0.2 MT. Growth in net imports was dominated by long-standing importing giants China, India, Chinese Taipei and South Korea – adding a total of 11.7 MT of net imports in 2020 despite waves of COVID restrictions. Turkey also increased net imports by 1.35 MT. The largest increases in net imports was seen in Asia, growing net

Demand from Asia Pacific was supported through growth in net imports into Chinese Taipei, South Korea and Thailand, but was challenged by a significant decrease in net imports in Japan (-2.4 MT), Indonesia (-0.9 MT), and smaller decreases of 0.1 MT in both Malaysia and Singapore. These developments were likely driven by a colder early winter in Asia Pacific, the volatile price environment and changes in domestic energy mixes and demand.

Asia’s market share grew with support from China, India, Myanmar and Bangladesh – collectively adding 10.2 MT of net imports. While COVID-19 meant significant restrictions for some of these markets, they likely also benefited from the lower price period in 2020 and purchased additional short- term volumes, and expansion of regasification capacity in some cases.

European net imports declined by 4.3 MT in 2020 to 81.6 MT – a direct result of extended lockdowns in many Euopean markets, lowering activity levels, as well as the increased share of renewables in the energy mix. Market share was more or less maintained though, at 23%, supported by growth in net imports by Turkey (1.4 MT) and

Poland (0.2 MT). The largest decreases were seen in France (-2.5 MT) and Belgium (-1.9 MT).

Egypt and Argentina continue to be volatile import/export markets with domestic gas availability and international gas pricing influencing energy export strategies. While Argentina ramped up exports initially in 2020, it stopped exporting by middle of the year as domestic demand increased, and ultimately terminated the charter of Tango FLNG, instead importing 0.2 MT of LNG. Egypt’s Idku LNG was curtailed due to the price environment for parts of 2020, but ramped up exports again towards the end of the year. With Damietta also restarting, net imports into Egypt ceased in 2020.

Latin America imported an additional 0.8 MT of LNG, mostly supported by growths in net imports by Jamaica and Chile. North American net imports decreased by 3.4 MT, mostly as a result of Mexico importing 3 MT less than in 2019. Lastly, Middle Eastern net imports remained stable at 6.9 MT, with an increase in net imports seen in Kuwait (0.5 MT), while Jordan decreased imports by 0.6 MT.

Figure 3.5: 2020 LNG Imports and Market Share by Market (in MT)

Source : GIIGNL

3.4LNG INTERREGIONAL TRADEThe largest global LNG trade flow route continues to be intra-Asia Pacific trade (84.3 MT), driven mainly by continued ramp up in exports from Australia, into Japan (29 MT) and South Korea (8 MT). Most of the remaining supply out of Asia Pacific ended up in Asia, as was the case in 2019, being the second largest LNG trade flow in 2020 – 46.4 MT with 29.7 MT from Australia to China alone.

The third largest trade flow is from the Middle East to Asia Pacific at 33.9 MT – with most of those supplies being exported from Qatar. There also significant flows from the Middle East to Asia at 33.1 MT, driven mostly by volumes from Qatar and the UAE to India and Pakistan.

African exports flowed mainly to Europe and Asia (22.4 MT and 12 MT respectively), under pressure due to reduced exports from Cameroon, Equatorial Guinea, Nigeria, Algeria and Egypt in 2020. European imports from Africa had to compete with low cost imports from the US, which meant a reduction of flows. While India was still a big customer of African LNG, that volume also decreased compared to 2019, with India taking more volumes from Qatar instead, for example. China imported more volumes from Russia in 2020, and instead imported less from Africa. Imports into Asia Pacific from Africa increased however, to 3.7 MT, from 3.46 MT, mostly driven by a small increase of flows into Japan from Nigeria.

Figure 3.6: Incremental 2020 LNG Imports by Market & Incremental Change Relative to 2019 (in MT)

Table 3.1: LNG Trade Between Regions, 2020 (in MT)

Source : GIIGNL

Flows from North America went mostly into Europe (18.5 MT, up from 12.7 MT in 2019) and Asia Pacific (12.7 MT, up from 9.5 MT). A large chunk of the additional US exports into Europe went into Spain, the UK and Turkey. In Asia Pacific, additional exports from the US mostly went into Japan and South Korea due to the netbacks being favourable for part of 2020.

FSU/Russian exports were similarly focused on Europe (12.6 MT, a decrease from 15.1 MT in 2019) and Asia Pacific (10.7 MT, up from 8.8 MT in 2019). Chinese Taipei’s imports from Russia increased, while Russian exports to France, the Netherlands, Belgium all decreased compared to 2019.

With exports from Latin America slipping in 2020, as a result of reduced exports from Trinidad & Tobago, exports within Latin America decreased marginally (down to 2.2 MT from 2.6 MT in 2019), decreased into Europe (-1.9 MT), and decreased into North America (-0.5 MT). A small increase was observed into Asia Pacific (0.6 MT), mainly into South Korea.

Lastly, European volumes remained within Europe (3 MT), meaning Norway’s lowered exports were mainly imported into other European markets, with most of those volumes going into Lithuania, France, Spain and the Netherlands.

Exporting Region

Asia

-Pa

cific

M

iddl

e Ea

st

Afri

ca

Nor

th

Amer

ica

Form

er

Sovi

et

Uni

on

Latin

Am

eric

a

Euro

pe

Reex

port

s Re

ceiv

ed

Reex

port

s Lo

aded

Tota

l

Importing Region

Asia-Pacific 84.3 33.9 3.7 12.7 10.7 2.7 - 0.3 1.3 147.1

Asia 46.4 33.1 12.0 6.6 5.8 1.8 - 1.6 - 107.3

Europe - 21.9 22.4 18.5 12.6 4.0 3.0 0.2 1.1 81.6

Latin America 0.1 0.6 0.7 5.2 0.1 2.2 0.1 0.1 0.2 8.8

North America 0.3 - 0.4 0.8 - 2.6 0.1 0.2 - 4.3

Middle East - 3.1 1.7 1.0 0.4 0.7 - 0.1 - 6.9

Africa - - - - - - - - - -

Total 131.2 92.6 40.8 44.8 29.6 14.0 3.2 2.6 2.6 356.1

LNG Trade

imports by 10%, or 9.5 MT, compared to 2019.

The largest importing regions, consistent with 2018 and 2019, were Asia Pacific and Asia (147.1 MT and 107.3 MT respectively), although Asia Pacific’s market share of total net LNG imports declined by 1% compared to 2019.

Australia, 77.8 , 22% Qatar, 77.1, 22%

USA , 44.8 , 13% Russia , 29.6 , 8%





UAE , 5.7 , 2% Angola, 4.6 , 1%

Peru, 3.8 , 1% Norway , 3.2 , 1%



3.1

3.2

MT


USA

Australia

Russia

Angola

Argentin

a

Papua New G

uineaPeru UAE

Camero

on

Brunei

Equatoria

l Guinea

Nigeria

Indonesia

Oman

Qatar

Norway

AlgeriaEgyp

t

Malaysia

Trinidad &

Tobago-4

-2

0

2

4

6

8

10

12


USA, 0.16, 6% Japan, 0.15, 6%

India, 0.14, 5% Kuwait, 0.13, 4%

Jamaica, 0.07, 3% Greece, 0.07, 3%




Spain , 0.05, 2% Argentina, 0.04, 2%

Panama, 0.01, 0% Norway, 0.01, 0%



3.3

3.4

3.5

3.6






Chi

na

Indi

a

Turk

ey

Chi

nese

Tai

pei

Sout

h Ko

rea

Thai

land

Kuw

ait

Jam

aica

Chi

le

Pola

nd

Can

ada

Mya

nmar

Arge

ntin

a

UAE

Ban

glad

esh

Swed

en

Gre

ece

Bra

zil

Col

ombi

a

Lith

uani

a

Finl

and

Dom

inic

an R

ep.

Isra

el

Nor

way

Gib

ralta

r

Port

ugal

Mal

ta

Egyp

t

Sing

apor

e

UK

Mal

aysi

a

Pana

ma

Spai

n

Net

herl

ands

USA

Jord

an

Paki

stan

Ital

y

Indo

nesi

a

Bel

gium

Japa

n

Fran

ce

Mex

ico

MT


Japan, 74.43 , 21% China, 68.91, 19%




Turkey, 10.72, 3% Italy, 9.07, 3%






Chile, 2.69, 1% Malaysia, 2.57, 1%

Brazil, 2.39, 1% Greece, 2.20, 1%

Mexico, 1.88, 1% USA, 1.82, 1%

UAE, 1.46, 0% Lithuania, 1.44, 0%


Jordan, 0.82, 1% Jamaica, 0.72, 0%

Canada, 0.63, 0% Israel, 0.57, 0%

Sweden, 0.36, 0% Malta, 0.32, 0%




-4

-2

0

2

4

6

8

Source : GIIGNL


20 21


3.1OVERVIEWGrowth in exports were driven mainly by the US (+11 MT) and Australia (+2.4 MT). Australia overtook Qatar as the largest LNG exporter in the world, exporting 77.8MT in 2020 versus 75.4 MT in 2019, while Qatar exported 0.7 MT less in 2020 from 77.8 MT in 2019. The US remained the 3rd largest exporter of LNG at 44.8 MT, and Russia retains its spot as the 4th largest exporter with 29.6 MT of exports in 2020. The largest exporting region continues to be Asia Pacific with a total of 131.2 MT of export in 2020 which is a decrease of 0.6 MT versus 2019.

A significant number of markets exported less volumes in 2020 than they did in 2019, a result of a mix of technical issues, demand drops due to COVID-19 related restrictions, commercial challenges due to price developments, and feedgas challenges. The biggest drops in

Global LNG Trade LNG Exporters & Importers LNG Re-Exports

+1.4 MTGrowth of global LNG trade

Myanmar commenced LNG imports in 2020, and is therefore the 39th importing market1

+1 MTRe-exported volumes increased by 66%

YOY in 2020

Global LNG trade reached an all-time high of 356.1 MT in 2020, another year of

consecutive growth.

China provided 7.2 MT in new net import demand, and Asia increased net imports by

9.5 MT.

Contractions were largest in Mexico (-3 MT), France (-2.5 MT) and Japan (-2.4 MT).

China, India, Chinese Taipei, the United States (Puerto Rico), and Brazil increased net imports through expansion of import

capacity.

Growth in exports came from the United States (+11 MT) and Australia (+2.4 MT).

Re-export activity increased in 2020 to 2.6 MT (1.6 MT in 2019).

Asia received the largest volume of re-exports (1.59 MT), while Asia Pacific

re-exported the highest volumes (1.25 MT).

1 This report excludes those with only small-scale (<0.5 MTPA) regasification capacity but includes markets with large regasification capacity that only consume domestically-produced cargoes, such as Indonesia.

3.2LNG EXPORTS BY MARKET

All of the liquefaction capacity added in 2020 was from the US, and no new markets started exporting.

Australia overtook Qatar as the largest exporter in 2020, exporting 77.8 MT, an increase of 2.4 MT, while Qatar exported 77.1 MT, each capturing a 22% market share of exports. Australia’s increase was likely the result of the ramp up in volumes from Ichthys, and high uti-lization across existing projects for a large part of the year. The other notable increase in exports was from the United States, who remains

Figure 3.1: 2020 LNG Exports and Market Share by Market (in MT)

in third place, and exported 11MT more than in 2019, as a result of trains starting up at Freeport LNG, Cameron LNG and Elba Island. The US exported 44.8 MT in 2020, an increase of 33% compared to 2019, despite cargo cancellations as a result of COVID-19 demand impli-cations. Russia remains at fourth place, exporting a total of 29.6MT in 2019, a small increase of 0.3 MT versus 2019. Angola and Papua New Guinea benefited from improved feedgas availability with minor increases in exports: 0.2 MT and 0.1 MT respectively.

LNG Trade

export levels were seen by Trinidad & Tobago (-2.4 MT), Malaysia (-2.4 MT), Egypt (-2.1 MT), Algeria (-1.7 MT) and Norway (-1.6 MT).

While in 2019, increases in net imports were largely driven by Europe as a result of netbacks, in 2020 increases in net imports were driven mostly by key LNG buyers such as China, India, Chinese Taipei and South Korea, increasing their net imports by a total of 11.7 MT. Asia Pacific continues to be the largest net importing region at 147.1 MT, a slight drop of 1.2 MT versus 2019. Asia as a net importing region is still the second largest at 107.3 MT, an increase of 9.5 MT compared to 2019. This growth was driven by the increase in net imports by China (+7.2 MT) and India (+2.7 MT). The only new importing market in 2020 was Myanmar, who imported 0.2 MT of LNG in 2020.

Australia, 77.8 , 22% Qatar, 77.1, 22%

USA , 44.8 , 13% Russia , 29.6 , 8%





UAE , 5.7 , 2% Angola, 4.6 , 1%

Peru, 3.8 , 1% Norway , 3.2 , 1%



3.1

3.2

MT


USA

Australia

Russia

Angola

Argentin

a

Papua New G

uineaPeru UAE

Camero

on

Brunei

Equatoria

l Guinea

Nigeria

Indonesia

Oman

Qatar

Norway

AlgeriaEgyp

t

Malaysia

Trinidad &

Tobago-4

-2

0

2

4

6

8

10

12


USA, 0.16, 6% Japan, 0.15, 6%

India, 0.14, 5% Kuwait, 0.13, 4%

Jamaica, 0.07, 3% Greece, 0.07, 3%




Spain , 0.05, 2% Argentina, 0.04, 2%

Panama, 0.01, 0% Norway, 0.01, 0%



3.3

3.4

3.5

3.6






Chi

na

Indi

a

Turk

ey

Chi

nese

Tai

pei

Sout

h Ko

rea

Thai

land

Kuw

ait

Jam

aica

Chi

le

Pola

nd

Can

ada

Mya

nmar

Arge

ntin

a

UAE

Ban

glad

esh

Swed

en

Gre

ece

Bra

zil

Col

ombi

a

Lith

uani

a

Finl

and

Dom

inic

an R

ep.

Isra

el

Nor

way

Gib

ralta

r

Port

ugal

Mal

ta

Egyp

t

Sing

apor

e

UK

Mal

aysi

a

Pana

ma

Spai

n

Net

herl

ands

USA

Jord

an

Paki

stan

Ital

y

Indo

nesi

a

Bel

gium

Japa

n

Fran

ce

Mex

ico

MT


Japan, 74.43 , 21% China, 68.91, 19%




Turkey, 10.72, 3% Italy, 9.07, 3%






Chile, 2.69, 1% Malaysia, 2.57, 1%

Brazil, 2.39, 1% Greece, 2.20, 1%

Mexico, 1.88, 1% USA, 1.82, 1%

UAE, 1.46, 0% Lithuania, 1.44, 0%


Jordan, 0.82, 1% Jamaica, 0.72, 0%

Canada, 0.63, 0% Israel, 0.57, 0%

Sweden, 0.36, 0% Malta, 0.32, 0%




-4

-2

0

2

4

6

8

Shell’s Terminal at Hazira - Courtesy of Shell

Source : GIIGNL

Figure 3.2: 2020 Incremental LNG Exports by Market Relative to 2019 (in MT)

Source : GIIGNL

Australia, 77.8 , 22% Qatar, 77.1, 22%

USA , 44.8 , 13% Russia , 29.6 , 8%





UAE , 5.7 , 2% Angola, 4.6 , 1%

Peru, 3.8 , 1% Norway , 3.2 , 1%



3.1

3.2

MT


USA

Australia

Russia

Angola

Argentin

a

Papua New G

uineaPeru UAE

Camero

on

Brunei

Equatoria

l Guinea

Nigeria

Indonesia

Oman

Qatar

Norway

AlgeriaEgyp

t

Malaysia

Trinidad &

Tobago-4

-2

0

2

4

6

8

10

12


USA, 0.16, 6% Japan, 0.15, 6%

India, 0.14, 5% Kuwait, 0.13, 4%

Jamaica, 0.07, 3% Greece, 0.07, 3%




Spain , 0.05, 2% Argentina, 0.04, 2%

Panama, 0.01, 0% Norway, 0.01, 0%



3.3

3.4

3.5

3.6






Chi

na

Indi

a

Turk

ey

Chi

nese

Tai

pei

Sout

h Ko

rea

Thai

land

Kuw

ait

Jam

aica

Chi

le

Pola

nd

Can

ada

Mya

nmar

Arge

ntin

a

UAE

Ban

glad

esh

Swed

en

Gre

ece

Bra

zil

Col

ombi

a

Lith

uani

a

Finl

and

Dom

inic

an R

ep.

Isra

el

Nor

way

Gib

ralta

r

Port

ugal

Mal

ta

Egyp

t

Sing

apor

e

UK

Mal

aysi

a

Pana

ma

Spai

n

Net

herl

ands

USA

Jord

an

Paki

stan

Ital

y

Indo

nesi

a

Bel

gium

Japa

n

Fran

ce

Mex

ico

MT


Japan, 74.43 , 21% China, 68.91, 19%




Turkey, 10.72, 3% Italy, 9.07, 3%






Chile, 2.69, 1% Malaysia, 2.57, 1%

Brazil, 2.39, 1% Greece, 2.20, 1%

Mexico, 1.88, 1% USA, 1.82, 1%

UAE, 1.46, 0% Lithuania, 1.44, 0%


Jordan, 0.82, 1% Jamaica, 0.72, 0%

Canada, 0.63, 0% Israel, 0.57, 0%

Sweden, 0.36, 0% Malta, 0.32, 0%




-4

-2

0

2

4

6

8

coVer storY

While the industry grew overall, the LNG trade was heavily impacted by CoVID-19, as markets and cities across the globe wrestled with lockdowns and a multitude of other dis-ruptions. Significant reductions in levels of eco-nomic activity affected demand, which in turn had to be balanced by supply curtailments, a balancing act to reconcile demand shocks with contracting, operational and market dynamics.

The first impact of the virus was felt when Asian LNG imports started to fall towards the end of February 2020, as Japan, China and South korea experienced lower economic ac-

lnG exPorTs & markeT share by markeT (mT)

lnG ImPorTs & markeT share by markeT (mT)

24 25


Australia, 77.8 , 22% Qatar, 77.1, 22%

USA , 44.8 , 13% Russia , 29.6 , 8%





UAE , 5.7 , 2% Angola, 4.6 , 1%

Peru, 3.8 , 1% Norway , 3.2 , 1%



3.1

3.2

MT


USA

Australia

Russia

Angola

Argentin

a

Papua New G

uineaPeru UAE

Camero

on

Brunei

Equatoria

l Guinea

Nigeria

Indonesia

Oman

Qatar

Norway

AlgeriaEgyp

t

Malaysia

Trinidad &

Tobago-4

-2

0

2

4

6

8

10

12


USA, 0.16, 6% Japan, 0.15, 6%

India, 0.14, 5% Kuwait, 0.13, 4%

Jamaica, 0.07, 3% Greece, 0.07, 3%




Spain , 0.05, 2% Argentina, 0.04, 2%

Panama, 0.01, 0% Norway, 0.01, 0%



3.3

3.4

3.5

3.6






Chi

na

Indi

a

Turk

ey

Chi

nese

Tai

pei

Sout

h Ko

rea

Thai

land

Kuw

ait

Jam

aica

Chi

le

Pola

nd

Can

ada

Mya

nmar

Arge

ntin

a

UAE

Ban

glad

esh

Swed

en

Gre

ece

Bra

zil

Col

ombi

a

Lith

uani

a

Finl

and

Dom

inic

an R

ep.

Isra

el

Nor

way

Gib

ralta

r

Port

ugal

Mal

ta

Egyp

t

Sing

apor

e

UK

Mal

aysi

a

Pana

ma

Spai

n

Net

herl

ands

USA

Jord

an

Paki

stan

Ital

y

Indo

nesi

a

Bel

gium

Japa

n

Fran

ce

Mex

ico

MT


Japan, 74.43 , 21% China, 68.91, 19%




Turkey, 10.72, 3% Italy, 9.07, 3%






Chile, 2.69, 1% Malaysia, 2.57, 1%

Brazil, 2.39, 1% Greece, 2.20, 1%

Mexico, 1.88, 1% USA, 1.82, 1%

UAE, 1.46, 0% Lithuania, 1.44, 0%


Jordan, 0.82, 1% Jamaica, 0.72, 0%

Canada, 0.63, 0% Israel, 0.57, 0%

Sweden, 0.36, 0% Malta, 0.32, 0%




-4

-2

0

2

4

6

8

3.3NET LNG IMPORTS BY MARKETMyanmar was a new addition to the list of global LNG net importers in 2020, importing 0.2 MT. Growth in net imports was dominated by long-standing importing giants China, India, Chinese Taipei and South Korea – adding a total of 11.7 MT of net imports in 2020 despite waves of COVID restrictions. Turkey also increased net imports by 1.35 MT. The largest increases in net imports was seen in Asia, growing net

Demand from Asia Pacific was supported through growth in net imports into Chinese Taipei, South Korea and Thailand, but was challenged by a significant decrease in net imports in Japan (-2.4 MT), Indonesia (-0.9 MT), and smaller decreases of 0.1 MT in both Malaysia and Singapore. These developments were likely driven by a colder early winter in Asia Pacific, the volatile price environment and changes in domestic energy mixes and demand.

Asia’s market share grew with support from China, India, Myanmar and Bangladesh – collectively adding 10.2 MT of net imports. While COVID-19 meant significant restrictions for some of these markets, they likely also benefited from the lower price period in 2020 and purchased additional short- term volumes, and expansion of regasification capacity in some cases.

European net imports declined by 4.3 MT in 2020 to 81.6 MT – a direct result of extended lockdowns in many Euopean markets, lowering activity levels, as well as the increased share of renewables in the energy mix. Market share was more or less maintained though, at 23%, supported by growth in net imports by Turkey (1.4 MT) and

Poland (0.2 MT). The largest decreases were seen in France (-2.5 MT) and Belgium (-1.9 MT).

Egypt and Argentina continue to be volatile import/export markets with domestic gas availability and international gas pricing influencing energy export strategies. While Argentina ramped up exports initially in 2020, it stopped exporting by middle of the year as domestic demand increased, and ultimately terminated the charter of Tango FLNG, instead importing 0.2 MT of LNG. Egypt’s Idku LNG was curtailed due to the price environment for parts of 2020, but ramped up exports again towards the end of the year. With Damietta also restarting, net imports into Egypt ceased in 2020.

Latin America imported an additional 0.8 MT of LNG, mostly supported by growths in net imports by Jamaica and Chile. North American net imports decreased by 3.4 MT, mostly as a result of Mexico importing 3 MT less than in 2019. Lastly, Middle Eastern net imports remained stable at 6.9 MT, with an increase in net imports seen in Kuwait (0.5 MT), while Jordan decreased imports by 0.6 MT.

Figure 3.5: 2020 LNG Imports and Market Share by Market (in MT)

Source : GIIGNL

3.4LNG INTERREGIONAL TRADEThe largest global LNG trade flow route continues to be intra-Asia Pacific trade (84.3 MT), driven mainly by continued ramp up in exports from Australia, into Japan (29 MT) and South Korea (8 MT). Most of the remaining supply out of Asia Pacific ended up in Asia, as was the case in 2019, being the second largest LNG trade flow in 2020 – 46.4 MT with 29.7 MT from Australia to China alone.

The third largest trade flow is from the Middle East to Asia Pacific at 33.9 MT – with most of those supplies being exported from Qatar. There also significant flows from the Middle East to Asia at 33.1 MT, driven mostly by volumes from Qatar and the UAE to India and Pakistan.

African exports flowed mainly to Europe and Asia (22.4 MT and 12 MT respectively), under pressure due to reduced exports from Cameroon, Equatorial Guinea, Nigeria, Algeria and Egypt in 2020. European imports from Africa had to compete with low cost imports from the US, which meant a reduction of flows. While India was still a big customer of African LNG, that volume also decreased compared to 2019, with India taking more volumes from Qatar instead, for example. China imported more volumes from Russia in 2020, and instead imported less from Africa. Imports into Asia Pacific from Africa increased however, to 3.7 MT, from 3.46 MT, mostly driven by a small increase of flows into Japan from Nigeria.

Figure 3.6: Incremental 2020 LNG Imports by Market & Incremental Change Relative to 2019 (in MT)

Table 3.1: LNG Trade Between Regions, 2020 (in MT)

Source : GIIGNL

Flows from North America went mostly into Europe (18.5 MT, up from 12.7 MT in 2019) and Asia Pacific (12.7 MT, up from 9.5 MT). A large chunk of the additional US exports into Europe went into Spain, the UK and Turkey. In Asia Pacific, additional exports from the US mostly went into Japan and South Korea due to the netbacks being favourable for part of 2020.

FSU/Russian exports were similarly focused on Europe (12.6 MT, a decrease from 15.1 MT in 2019) and Asia Pacific (10.7 MT, up from 8.8 MT in 2019). Chinese Taipei’s imports from Russia increased, while Russian exports to France, the Netherlands, Belgium all decreased compared to 2019.

With exports from Latin America slipping in 2020, as a result of reduced exports from Trinidad & Tobago, exports within Latin America decreased marginally (down to 2.2 MT from 2.6 MT in 2019), decreased into Europe (-1.9 MT), and decreased into North America (-0.5 MT). A small increase was observed into Asia Pacific (0.6 MT), mainly into South Korea.

Lastly, European volumes remained within Europe (3 MT), meaning Norway’s lowered exports were mainly imported into other European markets, with most of those volumes going into Lithuania, France, Spain and the Netherlands.

Exporting Region

Asia

-Pa

cific

M

iddl

e Ea

st

Afri

ca

Nor

th

Amer

ica

Form

er

Sovi

et

Uni

on

Latin

Am

eric

a

Euro

pe

Reex

port

s Re

ceiv

ed

Reex

port

s Lo

aded

Tota

l Importing Region

Asia-Pacific 84.3 33.9 3.7 12.7 10.7 2.7 - 0.3 1.3 147.1

Asia 46.4 33.1 12.0 6.6 5.8 1.8 - 1.6 - 107.3

Europe - 21.9 22.4 18.5 12.6 4.0 3.0 0.2 1.1 81.6

Latin America 0.1 0.6 0.7 5.2 0.1 2.2 0.1 0.1 0.2 8.8

North America 0.3 - 0.4 0.8 - 2.6 0.1 0.2 - 4.3

Middle East - 3.1 1.7 1.0 0.4 0.7 - 0.1 - 6.9

Africa - - - - - - - - - -

Total 131.2 92.6 40.8 44.8 29.6 14.0 3.2 2.6 2.6 356.1

LNG Trade

imports by 10%, or 9.5 MT, compared to 2019.

The largest importing regions, consistent with 2018 and 2019, were Asia Pacific and Asia (147.1 MT and 107.3 MT respectively), although Asia Pacific’s market share of total net LNG imports declined by 1% compared to 2019.

Australia, 77.8 , 22% Qatar, 77.1, 22%

USA , 44.8 , 13% Russia , 29.6 , 8%





UAE , 5.7 , 2% Angola, 4.6 , 1%

Peru, 3.8 , 1% Norway , 3.2 , 1%



3.1

3.2

MT


USA

Australia

Russia

Angola

Argentin

a

Papua New G

uineaPeru UAE

Camero

on

Brunei

Equatoria

l Guinea

Nigeria

Indonesia

Oman

Qatar

Norway

AlgeriaEgyp

t

Malaysia

Trinidad &

Tobago-4

-2

0

2

4

6

8

10

12


USA, 0.16, 6% Japan, 0.15, 6%

India, 0.14, 5% Kuwait, 0.13, 4%

Jamaica, 0.07, 3% Greece, 0.07, 3%




Spain , 0.05, 2% Argentina, 0.04, 2%

Panama, 0.01, 0% Norway, 0.01, 0%



3.3

3.4

3.5

3.6






Chi

na

Indi

a

Turk

ey

Chi

nese

Tai

pei

Sout

h Ko

rea

Thai

land

Kuw

ait

Jam

aica

Chi

le

Pola

nd

Can

ada

Mya

nmar

Arge

ntin

a

UAE

Ban

glad

esh

Swed

en

Gre

ece

Bra

zil

Col

ombi

a

Lith

uani

a

Finl

and

Dom

inic

an R

ep.

Isra

el

Nor

way

Gib

ralta

r

Port

ugal

Mal

ta

Egyp

t

Sing

apor

e

UK

Mal

aysi

a

Pana

ma

Spai

n

Net

herl

ands

USA

Jord

an

Paki

stan

Ital

y

Indo

nesi

a

Bel

gium

Japa

n

Fran

ce

Mex

ico

MT


Japan, 74.43 , 21% China, 68.91, 19%




Turkey, 10.72, 3% Italy, 9.07, 3%






Chile, 2.69, 1% Malaysia, 2.57, 1%

Brazil, 2.39, 1% Greece, 2.20, 1%

Mexico, 1.88, 1% USA, 1.82, 1%

UAE, 1.46, 0% Lithuania, 1.44, 0%


Jordan, 0.82, 1% Jamaica, 0.72, 0%

Canada, 0.63, 0% Israel, 0.57, 0%

Sweden, 0.36, 0% Malta, 0.32, 0%




-4

-2

0

2

4

6

8

Source : GIIGNL

issues, demand drops due to CoVID-19 relat-ed restrictions, commercial challenges due to price developments, and feed gas challenges. the biggest drops in export levels were seen by trinidad & tobago and Malaysia. No new LNG exporting countries started exporting in 2020. 20 MMtPA additional exporting capaci-ty was added (all in the US).

Asia Pacific and Asia were also the biggest importer importing the most volumes in 2020, together accounting for more than 70% of glob-al LNG imports. the only new importing mar-ket in 2020 was Myanmar.

Source : GIIGNL

tivity. this was against the backdrop of a relatively warm winter and high in-ventory levels. As Chi-na went into lockdowns, many cargoes were di-verted to India and South korea. Supply remained healthy in the first quar-ter of 2020 as Qatar and Australia maintained pro-duction, and US producers still attempted to ramp up output. this excess supply was absorbed by Europe once many Asian markets went into lockdowns, with buyers taking advantage of low prices, substitut-ing some piped gas with LNG. However, Spain, It-aly and France – the larg-est importers in Europe – soon also announced lockdowns. By the end of March, Europe’s storage filled up, and buyers began using flexibility clauses in their US offtake contracts to cancel cargos for sum-mer deliveries, causing Gulf Coast LNG terminals to cut exports.

Reacting to the effects of CoVID-19 on Euro-

The biggest drops in export levels were seen by trinidad & Tobago and Malaysia. No new markets started exporting in 2020.

Source : GIIGNL

coVer storY

pean and Asian demand, coupled with seasonal demand fluctuations, US LNG exports fell by 70% from May to August. Trade flows towards Asia regained some ground in 3Q 2020 as demand in China and India out-weighed a decrease in shipments to Japan and South korea. this can be attributed to lower over-all utlisation rates in the larger importing nations due to an overall drop in global gas demand, allow-

lnG reGasIfICaTIon CaPaCITy and annual uTIlIsaTIon (mTPa)

82 83


7 Excludes Russia’s Kaliningrad and Bahrain’s LNG receiving terminals which have yet to reach commercial start-up after being commissioned in Jan-19 and Apr-20, respectively. Kaliningrad’s FSRU and Bahrain’s FSU were redeployed as LNG carriers under short-term charters in 2020.8 “Smaller Markets” includes (in order of size): Jordan, Argentina, Poland, Jamaica, Lithuania, Colombia, Israel, Ghana, Dominican Republic, Panama, Myanmar. Regasification utilisation figures are based on 2020 trade data and prorated regasification capacity based on terminal start dates in 2020. Prorated capacity in 2020 is displayed in this graph.

Four expansion projects were completed at existing regasification terminals in 2020. Chinese Taipei completed its expansion project at the Taichung terminal, which saw the addition of 1.5 MTPA of regasification capacity and three additional storage tanks. Over the second half of 2020, China successfully put three newly expanded terminals into operation at Qidong, Zhejiang Ningbo and Shanghai (Yangshan), adding 4.9 MTPA of regasification capacity in total. Combining the 12.6 MTPA added via new terminals and the 6.4 MTPA added through expansion projects, total regasification capacity added globally in 2020 reached 19.0 MTPA.

One new terminal came online in January 2021, adding 1.9 MTPA at Croatia’s Krk facility. As of February 2021, 147.3 MTPA of new regasification capacity is under construction. This includes 19 new onshore terminals, 10 FSRUs, and eight expansion projects at existing receiving terminals . Over 70% of the regasification capacity under construction is being carried out at new and existing LNG terminals in Asia and Asia Pacific, with China and India in the lead. China has nine new onshore terminals under construction in addition to five expansion projects at existing terminals. India, on the other hand, is set to experience a rapid ramp-up of LNG terminals as it is building five new terminals and one expansion project at an onshore terminal. India is showing strong appetite for floating terminals. Currently, all existing terminals are onshore, but three of the five new terminals under construction are FSRUs and are set to come online in early 2021. Seven new markets without existing regasification capacity are eyeing first LNG imports over the next five years as the construction of debut LNG terminals is underway. This includes markets such as

Ghana, El Salvador, Nicaragua, Cyprus, Vietnam, and the Philippines. In July 2020, Cyprus’ first terminal officially started construction with a ground-breaking ceremony at Vassilikos. It is expected to be operational by the end of 2022. This follows the contract award to a Chinese consortium for the construction of Cyprus’ first LNG regasification terminal. Through the construction of four floating and three onshore terminals, these seven new markets will add 11.2 MTPA of regasification capacity to the global LNG market. Additional terminal construction and regasification capacity expansion projects in existing markets are underway in Chinese Taipei, Indonesia, Japan, Kuwait, Mexico, Pakistan, Poland, Thailand, and Turkey. In February 2020, India’s Karaikal terminal held a ground-breaking ceremony, and it is set to commission the terminal by the end of 2021.

Average regasification utilisation levels across global LNG markets in 2020 remained unchanged at 43% when compared to 2019. Natural gas demand has grown proportionately to the expansion in regasification capacity in 2020, maintaining average global regasification utilisation rates at similar levels as a year earlier. Regasification terminal capacity generally exceeds liquefaction capacity to meet peak seasonal demand and ensure sufficient supply. On a monthly basis, utilisation rates across global regasification terminals fluctuated, reaching the highest utilisation during the peak period between November to January. The cyclical fluctuation in utilisation rates is likely a result of seasonality in LNG demand, as well as the geographical distribution of LNG importers, since winter months in the Northern Hemisphere drive the greatest demand for LNG regasification.

7.3 RECEIVING TERMINAL CAPACITY AND UTILISATION BY MARKETFigure 7.3: LNG regasification capacity by market (MTPA) and annual regasification utilisation, 20208

Source: Rystad Energy

As of February 2021, Japan had the highest global regasification capacity with 210.5 MTPA, representing 25% of global capacity. While Japan has not added new regasification capacity since 2018, it has plans to expand importing abilities through new terminals and expansion projects. The new 0.5 MTPA Niihama receiving terminal on the northern coast of Shikoku in Western Japan is scheduled for operation in February 2022. By year-end 2020, Japan’s regasification utilisation dipped slightly to 35% down from 36% in 2019.

With six existing import terminals contributing 136.8 MTPA of regasification capacity to the global LNG market, South Korea retained its position as the second-largest market by capacity in 2020. However, its place as the second-largest importer was overtaken by China in 2017. Natural gas anticipated to continue to play an essential role in power generation to sustain the security of supply and fulfil growing energy demand in South Korea, calling upon additional LNG import. Based on the 9th Basic Energy Plan for Long-term Electricity Supply and Demand published in May 2020, more coal-fired power plants will be phased out in South Korea in favour of gas and renewables sources. While South Korea does not have any terminals under construction currently, a handful of projects have been proposed which could expand regasification capacity gradually over the next decade. South Korea’s utilisation rate has stayed almost unchanged since 2019, standing at 30%.

With continuous and consistent clean energy policies aimed at improving air quality and reducing emissions, China is expected to see an increase in natural gas consumption in the industrial, residential, power and transportation sectors, in part driven by coal-to-gas switching. China has experienced very rapid growth in terms of regasification capacity among global LNG importers. Since China overtook South Korea as the second-largest LNG importer in 2017, it has expanded its total LNG receiving capacity from 48.3 MTPA before 2017 to 83.9 MTPA by end-2020. This expansion involved the commissioning of eleven new-builds and five expanded LNG import

terminals between 2017 and 2020, adding a total of 35.6 MTPA of import capacity. In 2020, expansion projects were successfully completed at three existing regasification terminals – Qidong, Zhejiang Ningbo and Shanghai (Yangshan), accounting for 4.9 MTPA of capacity combined. With nine new onshore terminals under construction and five existing terminals undergoing expansion, China is anticipated to add another 56.0 MTPA of regasification capacity over the next few years through 2024. Once these projects that are under construction come online, China will have expanded its regasification capacity by more than 70%. At least five of these projects, including both new terminal construction and expansion plans at existing terminals, were originally expected to be completed in 2020. However, the commissioning of these terminals was pushed back to 2021, in part due to COVID-19 disruption to construction schedules and financial difficulties experienced by Chinese companies. China is anticipated to experience strong regasification capacity growth in the near term and close in on the gap with South Korea and Japan. In 2020, China’s regasification utilisation was at a record 83%, up by over 7% from 2019 utilisation numbers. Despite lockdown measures, China’s increasing appetite for natural gas outstripped its rate of regasification capacity expansion. Peak season utilisation rates at China’s import terminals have consistently exceeded nameplate regasification capacities in recent years, with the highest average utilisation rate observed at 113% in December 2020. COVID-19 induced delays to China’s capacity expansion projects have contributed to additional tightness in its import value chain. Moreover, there is a need to ensure that newly built terminals are sufficiently connected to the local grid to support send-outs. As a temporary measure, some LNG buyers have started trucking LNG from regasification terminals to key demand centres, as they wait for infrastructure to be built or become accessible. However, while LNG demand in China is set to rise on the back of strong governmental support for increased consumption of the relatively cleaner fuel, LNG imports may fluctuate in response to economic conditions, coal use, pipeline imports and domestic gas production.

LNG Receiving Terminals

Figure 7.4: Monthly 2020 regasification utilisation by top five LNG importers

Source: Rystad Energy, Thomson Reuters Eikon

As the world’s fourth-largest importer, India has experienced exceptionally strong growth over the past decade, increasing its import capacity by more than 150%. Despite contributing only 39.5 MTPA of total regasification capacity by the end of 2020, India has another 27 MTPA of import capacity under construction as of February 2021. As of February 2021, India has a total of six operational import terminals. Only one LNG import terminal (Mundra) was commissioned in 2020, adding 5.0 MTPA of receiving capacity. India intended to commission its first FSRU-based terminal in 2020 but several factors including COVID-19 induced short-term financial strains and harsh weather conditions have contributed to slippages in construction schedules. Both the 6.0 MPTA Jaigarh and 5.0 MTPA Jafrabad terminals have postponed commissioning to early 2021. Jafrabad has already received its FSRU, which is temporarily operating as an LNG carrier while waiting for the completion of the terminal construction. Jaigarh’s FSRU is scheduled for delivery in the first quarter of 2021. In February 2020, a ground-breaking ceremony marking the start of construction was held at the Karaikal terminal, with a planned start-up for the fourth quarter of 2021. India’s utilisation rate remained relatively flat at 65%, a slight dip from 67% in 2019. This reflects the availability of spare capacity to support growth

in India’s LNG demand, which is expected to increase significantly due to increased gas demand in city gas distribution.

Despite a relatively low import capacity of 15.5 MTPA as of the February 2021, Chinese Taipei is among the top 15 importers of LNG globally, in part driven by its clean energy plan, targeting to phase out coal and nuclear in electricity generation. In fact, it has registered the highest annual regasification utilisation rate globally in 2020, reaching a high of 116%. Both its operational terminals were utilised above their nameplate regasification capacities in nine out of 12 months. In 2020, Chinese Taipei successfully expanded its Taichung terminal by 1.5 MTPA. To support further growth in LNG import, Chinese Taipei is also adding capacity through the construction of a third LNG import terminal (Taoyuan), set to come online in 2026, as well as a fourth terminal in Taichung. However, both regasification terminals have faced extensive opposition from environmental groups, causing repeated delays as terminal operators implement mitigation measures to mollify environmental concerns. Chinese Taipei’s regasification utilisation rate is likely to remain elevated in the near term.

Japan, 210.5, 35% South Korea, 136.8, 30%

China, 79.9, 83% United States, 45.8, 5%

Spain, 43.8, 37% India, 39.1, 65%

United Kingdom, 38.1, 38% France, 25, 66%

Turkey, 20.1, 51% Mexico, 16.8, 7%

Chinese Taipei, 15.4, 114% Singapore, 11, 36%

Italy, 11, 82% Thailand, 11.5, 49%

Pakistan, 9.8, 73% Brazil, 14.8, 12%

Netherlands, 9, 77% Indonesia, 8.6, 36%

Canada, 7.5, 8% Malaysia, 7.3, 37%

Belgium, 6.6, 90% UAE, 6, 25%

Bangladesh, 7.6, 59% Portugal, 5.8, 70%

Kuwait, 5.8, 73% Egypt, 5.7, 0%

Chile, 5.5, 45% Greece, 4.6, 49%

Smaller Markets, 27.3, 40%

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Indonesia, 0.9, 1% Mexico, 0.9, 1%

Thailand, 0.8, 1% Singapore, 0.8, 1%

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Chile, 0.5, 1%

Belgium, 0.6, 1% Netherlands, 0.5, 1%

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United Kingdom, 38.1, 38% France, 25, 66%

Turkey, 20.1, 51% Mexico, 16.8, 7%

Chinese Taipei, 15.4, 114% Singapore, 11, 36%

Italy, 11, 82% Thailand, 11.5, 49%

Pakistan, 9.8, 73% Brazil, 14.8, 12%

Netherlands, 9, 77% Indonesia, 8.6, 36%

Canada, 7.5, 8% Malaysia, 7.3, 37%

Belgium, 6.6, 90% UAE, 6, 25%

Bangladesh, 7.6, 59% Portugal, 5.8, 70%

Kuwait, 5.8, 73% Egypt, 5.7, 0%

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France, 1.4, 2% Turkey, 1, 1%

Indonesia, 0.9, 1% Mexico, 0.9, 1%

Thailand, 0.8, 1% Singapore, 0.8, 1%

Malaysia, 0.7, 1% Brazil, 0.7, 1%

Chile, 0.5, 1%

Belgium, 0.6, 1% Netherlands, 0.5, 1%

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ing for opportunistic buying. Balancing out the pandemic’s negative impact on demand, a very cold Northern hemisphere winter, together with a tighter freight market, spawned an LNG sup-ply squeeze towards the end of 4Q 2020.

LNG Regasification The global regasification capacity increased

by 19 MtPA in 2020 to reach a total of 850.1 MTPA as of February 2021. Offshore regasifi-cation capacity increased by 5.6 MtPA, bring-ing the global floating and offshore regasifica-tion capacity to 115.5 MtPA as of February 2021. There was 147.3 MTPA of regasification capacity under construction, of which 72.3 MtPA have communicated start-up dates in 2021, some of which is in new importing mar-kets such as Ghana, El Salvador, Vietnam and Nicaragua.

As of February 2021, 39 markets are equipped with LNG receiving capabili-ties. Myanmar and Croatia joined the ranks of LNG customers most recently. China, Chi-nese taipei, India and Myanmar added signif-icant regasification capacity in 2020, totalling 12.9 MtPA.

However, several terminals with planned start-up in 2020 being delayed to 2021. this was largely a direct result of the CoVID-19 outbreak, which caused worldwide supply chain disruptions along with potential delays

in investments and permitting processes. the affected projects in India included four large projects in India – the H-Gas LNG Gateway (6.0 MtPA), Jafrabad FSRU (5.0 MtPA), Ch-hara LNG (5.0 MtPA) and Dabhol LNG 2 (5.0 MtPA) – were delayed by a year each.

lnG liquefaction Global liquefaction capacity continued to

grow in 2020, adding 20.0 MtPA of capacity (all in the US) last year to reach 452.9 MTPA. However, start-up of several liquefaction trains in Russia, Indonesia, the US and Malaysia were delayed as a result of the pandemic. the aver-age global utilisation rate in 2020 was 74.6%, with December 2020 drawing most attention, as soaring Asian and European LNG prices drove utilisation rates to record heights in certain ex-port markets, such as the US.

this came on the heels of the preceding pe-riod when it appears nearly 160 cargoes were cancelled between April and November 2020, with the majority of these cancellations taking place between June and August – a seasonally softer period for gas demand.

As of February 2021, 139.1 MTPA of liq-uefaction capacity was under construction or sanctioned for development, but only 8.9 MtPA of that overall capacity increase is expected to come online in 2021.

For much of the year, CoVID-19 related

The average global utilisation rate in 2020 was 74.6%, with december 2020 drawing most attention, as soaring asian and european lnG prices drove utilisation rates to record heights in certain export markets, such as the us.

Source : Rystad Energy


28 29


44 45


United States, 35.1 MTPA Qatar, 32.0 MTPA

Russia, 22.2 MTPA Mozambique, 16.3 MTPA

Canada, 14.0 MTPA Nigeria, 8.0 MTPA

Indonesia, 4.3 MTPA

Mauritania, 2.5 MTPA Malaysia, 1.5 MTPA

Mexico, 3.3 MTPA

5.6

5.7

5.8

5.9

United States, 351.6 MTPA Canada, 227.8 MTPA

Australia, 50 MTPA Russia, 44 MTPA

Mozambique, 37.2 MTPA Iran, 36.8 MTPA

Nigeria, 26.6 MTPA MExico, 25 MTPA

Mauritania, 17.5 MTPA Qatar, 16 MTPA

Indonesia, 12.8 MTPA Papua New Guinea, 10.6 MTPA

Djibouti, 10 MTPA Tarzania, 10 MTPA

Iraq, 4.5 MTPA Peru, 4.5 MTPA

Israel, 3 MTPA Cyprus, 2 MTPA

Congo, 1.2 MTPACameroon, 1.4 MTPA

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Figure 5.6: Global sanctioned liquefaction capacity by market as of February 2021


Proposed

There is currently 892.4 MTPA of aspirational liquefaction capacity in the pre-FID stage. However, a large portion of the pre-FID projects are likely not to progress. Given the weak economic landscape in 2020, developers have pushed back on capital-intensive pre-FID liquefaction projects and reinstated their strategies. This puts small-scale LNG in the spotlight as it remains a growing segment within the wider LNG sector with significant potential.

Figure 5.7: Global proposed liquefaction capacity by market


LNG liquefaction plants

United States, 35.1 MTPA Qatar, 32.0 MTPA

Russia, 22.2 MTPA Mozambique, 16.3 MTPA

Canada, 14.0 MTPA Nigeria, 8.0 MTPA

Indonesia, 4.3 MTPA

Mauritania, 2.5 MTPA Malaysia, 1.5 MTPA

Mexico, 3.3 MTPA

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United States, 351.6 MTPA Canada, 227.8 MTPA

Australia, 50 MTPA Russia, 44 MTPA

Mozambique, 37.2 MTPA Iran, 36.8 MTPA

Nigeria, 26.6 MTPA MExico, 25 MTPA

Mauritania, 17.5 MTPA Qatar, 16 MTPA

Indonesia, 12.8 MTPA Papua New Guinea, 10.6 MTPA

Djibouti, 10 MTPA Tarzania, 10 MTPA

Iraq, 4.5 MTPA Peru, 4.5 MTPA

Israel, 3 MTPA Cyprus, 2 MTPA

Congo, 1.2 MTPACameroon, 1.4 MTPA

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Figure 5.5: Global operational liquefaction capacity by market

Under construction/FID

As of February 2021, 137.3 MTPA of liquefaction capacity was under construction or sanctioned for development. Approximately 25.6% of this capacity is in North America. The Energía Costa Azul LNG T1 (3.25 MTPA) in Mexico was the only liquefaction plant train that was sanctioned in 2020, while LNG giant Qatar Petroleum took the final investment decision for the development on the North Field East (NFE) project in February 2021, adding 32 MTPA to global sanctioned liquefaction capacity.

Several projects globally are currently under construction and progressing towards completion in 2021. Projects that are expected to begin commercial operations this year include Corpus Christi LNG T3 (4.5 MTPA) in the US, Portovaya LNG T1 (1.5 MTPA) and Yamal LNG

Out of the 892.4 MTPA of aspirational liquefaction capacity in the pre-FID stage, the United States accounts for 39.4% (351.6 MTPA), followed by Canada at 25.5% (227.8 MTPA) and Australia at 5.6% (50.0 MTPA). Russia follows closely behind with 44.0 MTPA. The large inventory of proposed US projects is primarily driven by the growth in shale gas output in the US over the past few years. While most operational US LNG projects are brownfield conversion projects, the currently proposed US LNG projects are mainly greenfield projects that consist of multiple small- to mid-scale LNG trains delivered in a phased manner. This provides flexibility in securing long-term off-takers and increases competitiveness in project economics through modular construction. One of the key examples of this is Plaquemines LNG (21.6 MTPA) in Louisiana, which plans to accommodate up to 36 liquefaction trains of 0.6 MTPA each, configured in 18 blocks. Another example is Driftwood LNG (27.6 MTPA), also in Louisiana, which consists of 20 liquefaction trains built in four phases. The facility will process feedgas from the existing interstate pipeline system of the Columbia Gulf Transmission, which interconnects about 14 interstate pipelines.

Out of the 227.8 MTPA of liquefaction capacity proposed in Canada, 179.3 MTPA sits along the Pacific west coast of British Columbia, which is closer to Asian markets than rival projects on the US Gulf Coast. This means that shipping costs from the west coast of Canada to Asia are lower than from the US Gulf Coast. This is a key driver for the increase in the number of proposed LNG export projects on the Canadian west coast, although most remain in early development stages. Due to strict environmental standards, these LNG export projects have adapted various strategies to reduce their carbon emissions to comply with environmental regulations. Both Kitimat LNG (18.0 MTPA) and Woodfibre LNG (2.1 MTPA) are powered by

T4 (0.9 MTPA) in Russia, Sengkang LNG T1 (0.5 MTPA) in Indonesia and PFLNG Dua (1.5 MTPA) in Malaysia. Meanwhile, several projects are signaling FID in 2021. These include the two-train Port Arthur LNG (13.5 MTPA) in Texas, where construction is expected to begin in 1Q 2022, following FID. Sempra aims to bring Port Arthur T1 online in 1Q 2026, followed by T2 in the latter half of 2026. Another project signaling FID in 2021 is Driftwood LNG Phase 1 (11.0 MTPA) in Louisiana, which involves the construction of eight liquefaction trains, each capable of producing 1.38 MTPA. Tellurian has delayed the timeline for FID to mid-2021 from 2020 as COVID-19 and challenging market conditions have made it more difficult to finalise commercial agreements. Similarly, targeted FIDs for the Canadian Goldboro LNG (10.0 MTPA), Woodfibre LNG (2.1 MTPA) and NextDecade’s Rio Grande LNG (27.0 MTPA) have also been delayed to 2021.

clean, renewable hydroelectricity. Similarly, LNG Canada T3-T4 (14.0 MTPA) has selected natural gas turbines for the liquefaction process to minimise fuel use and will be powering a portion of its liquefaction plant with renewable energy as well. There are also four proposed projects on Canada's east coast totaling 48.5 MTPA of liquefaction capacity. Bear Head LNG (12.0 MTPA), Saguenay LNG (10.95 MTPA) and AC LNG (15.5 MTPA) have yet to achieve much commercial momentum due to pipeline transportation and gas supply challenges while Goldboro LNG (10.0 MTPA) announced the delay of the targeted FID to mid-2021 instead of 3Q 2020.

In Australia, investments have recently been more focused on upstream backfill projects rather than new liquefaction projects. Woodside has proposed developing the Browse area fields for the existing North West Shelf LNG (16.7 MTPA), the Julimar field for Wheatstone LNG T1-2 (8.9 MTPA), the Pyxis field for Pluto LNG T1 (4.9 MTPA) and the Scarborough field for the proposed Pluto LNG T2 (5.0 MTPA). Pluto LNG T2 (5.0 MTPA) failed to reach FID in 2020 and the announced plan is now for the project to reach FID in the second half of 2021, with operations anticipated to start in 2025. Darwin LNG (3.7 MTPA) is expected to run at a lower utilisation from 2021 to 2025 owing to the end of life for the Bayu-Undan field, while FID for the Barossa field to backfill Darwin LNG is being postponed beyond 2020. Ichthys Phase 2 made some progress, with Inpex awarding FEED contracts to McDermott and Saipem. The Phase 2 development was originally expected to commence in the first half of 2020 with targeted completion in 2025. Developments of further coal seam gas to LNG projects are unlikely in the future, given that existing projects such as the Queensland Curtis LNG, Australia LNG and Gladstone LNG are already facing supply constraints.


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Australia, 87.6 MTPA

Papua New Guinea, 6.9 MTPAQatar, 77.1 MTPA

Yemen, 6.7 MTPAUnited States, 69.1 MTPA

UAE, 5.8 MTPAMalaysia, 30.5 MTPA

Angola, 5.2 MTPARussia, 26.8 MTPA

Peru, 4.5 MTPAIndonesia, 26.6 MTPA

Norway, 4.2 MTPAAlgeria, 25.5 MTPA

Equatorial Guinea, 3.7 MTPANigeria, 22.2 MTPA

Libya, 3.2 MTPATrinidad and Tobago, 14.8 MTPA

Cameroon, 2.4 MTPAEgypt, 12.2 MTPA

Oman, 10.4 MTPA

Brunei, 7.2 MTPA

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demand shocks and the oil and gas price envi-ronment had a material impact on LNG supply. LNG producers with high short-run marginal costs and flexible contract structures were faced with the decision to shut down individual trains, as liquefaction plants are generally designed to run at close to full capacity. Beyond short-term supply, CoVID-19 also severely impacted liq-uefaction development. Companies delayed

final investment decisions (FIDs) on projects up to 2021 and beyond, due to the uncertain economic cli-mate.

lnG Pricing Global LNG market

pricing experienced a tur-bulent 2020. Spot prices of cargoes trading in the Atlantic and Asia Pacific basins plummeted to record lows in the first six months of 2020, before reaching re-

Global lnG lIquefaCTIon CaPaCITy (mTPa)

cord highs at the start of 2021. Pricing respond-ed to CoVID-19 impacts on demand, an initial-ly well-supplied market, and high storage levels in some markets, followed by a cold winter and shipping constraints towards the end of 2020 and beginning of 2021. Prices retreated later in 2021 as buying focus shifted to the March and April shoulder months. Moreover, temperatures warmed and nuclear availability improved in

Gas/lnG PrICe Trends



coVer storY

Japan, while supplies eased out in Asia. Cur-rently, global gas prices are well supported by low storage levels in Europe and strong Asian LNG demand.

lnG shipping The LNG shipping fleet added 35 new ves-

sels to the total number of active vessels reach-ing 572 at the end 2020, including 37 FSRUs and 4 FSUs. The number of LNG voyages, however, only increased by 1%, largely due to demand impact of CoVID-19.

It was a challenging business environment for vessel owners and operators in the LNG shipping sector affected by significant demand disruption, subsequent sustained lower charter rates, the increased use of floating LNG stor-age, a shift towards new ways of working, and delays in newbuild deliveries.

the reduction in global gas consumption led to supply curtailments and hence demand dis-ruption for LNG freight. American exports of LNG became less economic for most compa-nies based on netback pricing, while virus-re-lated market conditions often caused vessels to change course mid-voyage. the consequence of this through the year was cargo cancellations

58 59


1 Only LNG carriers with capacity of 30,000 cm and greater were included in this report. 2 Floating LNG storage in this context refers to short-term slow steaming of vessels to maximize trading positions. For elaboration on COVID-19’s impact on LNG shipping, please refer to dedicated chapter.

LNG Shipping

LNG Carrier from Gorgon – Courtesy of Chevron

6. LNG ShippingWith the delivery of 35 vessels in 2020, the global LNG carrier fleet consisted of 572 active vessels1 at the end of last year, including 37 floating storage and regasification units (FSRUs) and four floating storage units (FSUs). This represents a 7% growth from 2019, which can be compared to a 1% growth in number of LNG voyages, a figure that was lower than expected, largely due to COVID-19 demand disruption. The virus has also resulted in increased use of floating LNG storage2, new ways of working, and delays in newbuild deliveries.

as LNG players balanced oversupply and un-certain global demand. this translated into ma-terial impacts on LNG charter rates for much of 2020.

Charter rates started the year at ~US$70,000-US$105,000 per day, trading thereabouts until August 2020. As the Northern Hemisphere experienced colder- than-normal temperatures during the fourth quarter, freight demand and charter rates rebounded, reaching record highs at the end of the year, peaking at ~US$112,000- US$177,000.

operations continued successfully despite extraordinary circumstances in part supported by the emergence of new ways of working in daily operations and amid an acceleration of broader trends such as digitalization and cloud computing. For example, terminal operations and cargo loading and unloading can now take place without human contact between vessel and external crews. Within the realm of digi-talization, a shift to acceptance of digital docu-ments has occurred while remote vetting and in-spections have become the norm. Cloud-based solutions have also allowed ship engineering training to take place in simulators and through remote learning.

american exports of lnG became less economic for most companies based on netback pricing, while virus-related market conditions often caused vessels to change course mid-voyage.

LNG Carrier from Gorgon - Courtesy of Chevron


coVer storY

CnG ConsumPTIon as road fuel

102 103


With the majority of global NGV fleet composed of light-duty vehicles, CNG is currently the primary fuel driving natural gas consumption in road transportation. CNG consumption levels grew to 55.7 Bcm in 2020, experiencing a CAGR of 5.4% over the last decade. CNG demand levels have kept pace with global NGV deployment and development of gas transmission and delivery infrastructure since 2000. This is especially so in markets with high NGV penetration and well-developed refuelling networks. Global CNG fuel consumption currently arises from a small group of markets in Asia (e.g., China and India), Latin America (e.g., Argentina and Brazil) as well as Europe (e.g., Italy), with observed regional differences where urbanized cities with better-connected infrastructure generally consume more CNG as road fuel. The favourable price differential between gasoline and CNG prices has historically been critical in driving NGV penetration and CNG consumption levels. Subjected to regional differences, favourable price differentials between natural gas and gasoline have ranged from 40 to 60% on an energy equivalent basis in markets with strong penetration of NGVs. The relatively lower CNG price at the pump arose from a mix of government-led incentives (e.g., subsidies on natural gas or taxation on gasoline) in markets such as China and Italy and advantageous market mechanisms in markets with a surplus of natural gas over oil such as in Brazil, Iran, and the United States.

LNG as road fuel has experienced a surge in demand in recent years, reaching a total of 11.7 million tonnes in 2020. This represents a doubling in consumption level since 2016. Among different types of natural gas as transportation fuel, LNG is generally used for long-range heavy-duty vehicles. To a large extent, this rapid expansion in fuel consumption owes to strong government efforts in markets across Asia and Europe to switch from diesel-based vehicles to alternatives in a bid to address eroding air quality. China has become the world’s largest market for LNG as road fuel since the introduction of LNG as an alternative fuel for heavy-duty vehicles in the early 2010s. LNG consumption as an automotive fuel is, to a large extent, correlated with the cost competitiveness LNG fuel has over diesel. This in turn plays a role in shaping the purchase decisions of the typically higher priced LNG-propelled vehicles by minimizing the payback period. Governmental policies were also critical in driving adoption of LNG vehicles and LNG consumptions. One significant driver of LNG heavy-duty vehicle uptake relates to the enforcement of upgraded national emission standards (China VI) in July 2019 which tightened emission standards for nitrogen oxide and particulate matter. A surge in LNG truck purchases was also observed during 2017 partly in response to a ban on diesel trucks at Northern ports such as Hebei and Shandong and in the city of Tianjin. Europe is another demand centre for LNG as road fuel, particularly in the high mileage heavy-duty vehicle sector where alternative fuel technology (e.g., hydrogen fuel cell) has yet to attain comparable levels of technology and commercial readiness. With a growing preference for an LNG-fuelled fleet from haulage, logistics and transportation sectors across European markets such as Belgium, France, and the UK, LNG consumption as a road fuel is anticipated to pick up in the near term. Notably, the number of new registrations for LNG-powered vehicles in Europe increased almost three-fold in 2019 from the previous year.

Figure 8.6: LNG consumption as a marine fuel, 2010-2020

Figure 8.7: CNG consumption as a road fuel, 2010-2020

Figure 8.8: LNG consumption as a road fuel, 2010-2020

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02010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Source: Rystad Energy



Natural Gas (LNG & CNG) as Fuel for Marine and Road Transportation

With stricter international and local environmental regulations as well as emission reduction ambitions, LNG consumption as a marine fuel has accelerated in recent years, achieving a five-fold volume growth in less than five years, reaching 1.5 million tonnes in 2020. The positive trajectory of LNG, often seen as a viable alternative fuel for the shipping industry, was on the back of a higher number of LNG-propelled vessels and development of LNG bunkering capabilities in recent years. On average, over 20 LNG-propelled vessels were added each year since 2017. With an operational fleet of 175 and order book of over 200, increasing interest in the adoption of LNG-powered vessels is anticipated to drive additional growth in demand for LNG as a marine fuel in the near term.

8.3 LNG & CNG DEMAND AS A TRANSPORTATION FUELGLOBAL NGV FLeet By ReGION (1996-2020)

98 99


Ports and terminals have either added to, or modified their facilities to offer LNG bunkering services gradually over the years in response to the expected increase in LNG bunkering demand. These shore-based facilities are often strategically located in regions with tighter emissions control regulations as well as at close proximity to LNG import terminals, enabling efficient distribution. Among LNG bunkering infrastructure, truck-to-ship is currently the most widely used configuration at terminals and ports due to its low capital investment and limited infrastructure required. This method is, however, restrictive in terms of its flow rates amongst other factors, which limit bunkering operations to smaller-sized LNG-fuelled vessels. Alternative options like STS and shore-to-ship (also known as terminal tank to ship) support larger storage capacity and higher bunkering rates. However, both methods require significantly higher capital investments in the form of bunker vessels and fixed infrastructure such as storage tanks and specialised loading arms.

Among markets near the North Sea and Baltic Sea, the development of LNG bunkering infrastructure is a relatively recent trend. The majority of the LNG bunkering facilities are part of a network of small-scale LNG terminals and ports, which expanded from 2010 onwards. This expansion was enabled by increasing small-scale LNG exports from Norway and reloading/trans-shipment services offered at large-scale LNG import terminals to small-scale LNG terminals and ports in the region. Several large-scale LNG terminals also offer truck-loading services and bunkering services directly from the terminal, which support the delivery of LNG to nearby ports to be loaded on vessels via truck-to-ship bunkering. Bunkering services became available at small-scale export terminals (Snurrevarden in 2004, Kollsnes in 2007, and Risavika in 2015), large-scale import terminals (GATE Rotterdam in 2013, Zeebrugge in 2015, Klaipeda in 2018) and small-scale import terminals (Pori in 2016, Lysekil in 2017, Tornio in 2019). The Risavika plant, one of Norway’s newest liquefaction facilities, saw the commissioning of a dedicated bunkering facility in 2015 for the Fjord Line ferries. The bunkering facility is linked to the plant’s 30,000 cubic metre LNG storage tank and supports direct shore-to-ship transfers through the region’s first loading arm dedicated solely to bunkering purposes. Finland’s Pori terminal, one of the small scale import terminals, was equipped with direct LNG bunkering (terminal-to-ship) and truck loading capabilities when it was commissioned in 2016. In 2019 another new small-scale receiving terminal in Finland, Tornio Manga, bunkered its first vessel, Polaris. Ships at the terminal can be filled via truck or directly from the terminal tanks by pipes.

As some of the first few terminals to offer road tanker loading and cargo reloading, Iberian terminals have also started to diversify into LNG bunkering services. With support from the CORE LNGas hive initiative aimed at building an Iberian LNG bunkering network, several

As of 2020, the global fleet of natural gas vehicles (NGVs) stands at 29.5 million units. Asia & Asia Pacific accounts for the largest share of the NGV market with 21.4 million operational units and a market share of 73%. This is followed by Latin America and Europe, each holding 19% (5.5 million units) and 7% (2.1 million units) market share respectively. Asia & Asia Pacific experienced an exponential surge in the adoption of NGV in the past two decades, more than doubling its NGV fleet from 2000 to 2010 and recording a remarkable CAGR of 12% between 2010 and 2020. In fact, the top three markets deploy over 50% of the world’s NGV fleet. They are, in order, China, Iran and India. In contrast, NGV adoption is still at a nascent stage in Africa and North America. Both regions currently account for 2% (or 0.5 million units) of total NGVs.

Asia & Asia Pacific saw a rapid adoption of natural gas in many transportation sectors and the development of natural gas infrastructure in markets such as Pakistan, China, and India. The switch from gasoline or diesel to natural gas as an automotive fuel in Asia & Asia Pacific was largely bolstered by an increasing appetite for cleaner fuels in response to heightened environmental concerns over emissions and air pollution, the need for energy security and economic incentives. Government policies have been key in driving the deployment of NGV in numerous markets. As the largest NGV market with more than 6 million vehicles, China has actively

Spanish ports have added truck-to-ship bunkering infrastructure. Furthermore, they are now implementing additional terminal enhancements to accommodate small-scale carriers and develop direct jetty-to-ship services for LNG-fuelled vessels. In 2017, the Cartagena LNG regasification terminal completed its first direct bunkering to an LNG-fuelled tanker with 370 cubic metres of LNG, utilising the facility’s tank-to-jetty pipework, hoses, and a dedicated jetty. In early 2021, Cartagena has completed another direct pipe-to-ship bunkering operation. The Bilbao terminal adapted its marine jetty to accommodate small-scale vessels ranging from 600 to 270,000 cubic metres in 2017 and carried out its first LNG bunkering operations through a five-hour truck-to-ship transfer in the same year. In a bid to encourage development of LNG bunkering at Spanish regasification terminals, a large reduction in reloading fees, especially for small-sized ships destined for ship-to-ship bunkering, has been implemented since September 2020 and will be applied for the next six years.

Within Asia Pacific, a growing number of markets, including Singapore, Japan, and South Korea, have plans to add LNG bunkering infrastructure, signifying an increased demand for LNG as a marine fuel in the region. Of the existing bunkering infrastructure available, Singapore’s port has been equipped with truck-to-ship bunkering services since 2017 and completed over 250 truck-based fuelling operations. In fact, the port can now provide STS bunkering with the delivery of its first LNG bunkering vessel (FueLNG Bellina) in early 2021. It is also set to open Singapore’s first dedicated LNG bunkering facility by the end of 2021, as part of an effort to develop Singapore into a global LNG bunkering hub. In Japan, the Port of Yokohama introduced truck-to-ship bunkering services in 2018 and has plans to offer STS bunkering. South Korea currently offers truck-to-ship bunkering at its Incheon port and has recently completed a bunkering trial involving a 7,500 cubic metres small scale LNG carrier between mainland and the Jeju Island, the SM JEJU LNG2.

The United States is also anticipated to become a significant player in the LNG bunkering market. Currently, its bunkering operations occur primarily at the Jacksonville port in Florida and Port Fourchon in Los Angeles. Jacksonville has conducted truck-to-ship operations since 2016 for two containerships and added STS bunkering services to the facility with the delivery of the Clean Jacksonville bunker barge in 2018. Port Fourchon completed the bunkering of its first LNG-fuelled vessel in 2016 and has plans to become a central LNG terminal in North America. With the arrival of the 4,000 cubic metres Q-LNG 4000 ATB unit and its dedicated tug Q-Ocean Service in early 2021, Port Canaveral in Florida is on track to be the United States’ first LNG cruise port. Q-LNG 4000 vessel will operate from Port Canaveral to provide LNG fuel to cruise ships after loading LNG from a fuel distribution facility on Elba Island, Georgia.

supported the deployment of NGVs through the establishment of nation- and municipal-wide clean vehicle programs since 1999. Efforts have been made to enforce clean fuel targets, roll out financial subsidies to support NGV uptake in public transportation and advance development in NGV technology. Additionally, the National Development and Reform Commission (NDRC) regulated the gas prices up to 2015, to boost its economic competitiveness versus diesel and gasoline. Applications in heavy-duty vehicles have also grown in recent years as LNG-powered buses and trucks were a better alternative to diesel for the environment considering the difficulties in electrifying heavy-duty vehicles. The NGV industry in Iran and India followed a similar growth trajectory as China, where the introduction of favourable government initiatives aimed at addressing air pollution caused by the transportation industry in the early 2000s drove a large-scale uptick of NGVs. Holding some of the world’s largest natural gas reserves, Iran has a strong business case to promote large-scale NGV deployment. Iran grew its NGV industry rapidly through a mix of subsidised infrastructure development and conversion facilities for gasoline cars to bi-fuel cars. NGV growth in India originated from its most urbanised cities, such as Delhi, which saw the mass conversion or replacement of the existing fleet of buses, taxis and autorickshaws to run on CNG as part of state-approved pollution mitigation policies.

8.2 ONSHORE LNG & CNG FUELLING INFRASTRUCTUREFigure 8.3: Natural gas vehicle (NGV) fleet by region, 1996-2020

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02010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

VLSFO 0.52-stroke SS-Diesel-DF

MGO 0.12-stroke SS-Diesel-DF

LNG +pilot2-stroke SS-Diesel-DF

LNG +pilot2-stroke SS-Otto-DF

104 584 688

23%23% GHG Reduction

111 566 677

123 410 533

127 467 594

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g CO2-eq/kWh engine output

Supply emissions (Well to Tank)2-stroke slow speed engines: WtW – GHG IPCC – AR5 – Tier II Combustion emissions (Tank to Wake)



TY bunkering at Jeju loading berth – Courtesy of Kogas

In shipbuilding too, the steep drop in LNG freight prices caused shipowners to exercise op-tions early in the year to defer delivery of new-builds when available.

onshore CnG & lnG fuelling infrastructure

As of 2020, the global fleet of natural gas ve-

hicles (NGVs) stands at 29.5 million units. Asia & Asia Pacific accounts for the largest share of the NGV market with 21.4 million operational units and a market share of 73%. This is fol-lowed by Latin America and Europe, each hold-ing 19% (5.5 million units) and 7% (2.1 million units) market share respectively.

Asia & Asia Pacific experienced an exponen-tial surge in the adoption of NGV in the past two de-cades, more than doubling its NGV fleet from 2000 to 2010 and recording a remarkable CAGR of 12% between 2010 and 2020. In fact, the top three mar-kets deploy over 50% of the world’s NGV fleet. They are, in order, China, Iran and India. the switch from gasoline or diesel to natural gas as an automotive fuel in Asia & Asia Pacific has largely been bolstered by an increasing appetite for cleaner fuels in response to heightened environmental concerns over emissions and air pollution, the need for energy security and eco-nomic incentives.

CnG as Transportation fuel

With the majority of global NGV fleet composed of light-duty vehicles, CNG is currently the primary fuel driving natural gas con-sumption in road transpor-tation. CNG consumption levels grew to 55.7 BCM in 2020, experiencing a CAGR of 5.4% over the last decade. Global CNG fuel consumption currently arises from a small group of markets in Asia (e.g., China

With the majority of global NGV fleet composed of light-duty vehicles, CNG is currently the primary fuel driving natural gas consumption in road transportation.




coVer storY

and India), Latin America (e.g., Argentina and Brazil) as well as Europe (e.g., Ita-ly), with observed regional differences where urban-ized cities with better-con-nected infrastructure gen-erally consume more CNG as road fuel. the favour-able price differential be-tween gasoline and CNG prices has historically been critical in driving NGV penetration and CNG con-sumption levels.

lnG as Transportation fuel

With stricter internation-al and local environmental regulations as well as emis-sion reduction ambitions, LNG consumption as a marine fuel has accelerated in recent years, achieving a five-fold volume growth in less than five years, reaching 1.5 million tonnes

lnG ConsumPTIon as a marIne fuel

lnG ConsumPTIon as road fuel

102 103







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8.3 LNG & CNG DEMAND AS A TRANSPORTATION FUEL

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8.3 LNG & CNG DEMAND AS A TRANSPORTATION FUEL

in 2020. With an operational fleet of 175 and order book of over 200, increasing interest in the adoption of LNG-powered vessels is antici-pated to drive additional growth in demand for LNG as a marine fuel in the near term.

LNG as road fuel has experienced a surge in demand in recent years, reaching a total of 11.7 million tonnes in 2020. this represents a doubling in consumption level since 2016. LNG as a road fuel is generally used for long-range heavy-duty vehicles. to a large extent, this rapid expansion in fuel consumption owes to strong government efforts in markets across Asia and Europe to switch from diesel-based vehicles to alternatives in a bid to address erod-ing air quality. China has become the world’s largest market for LNG as road fuel since the introduction of LNG as an alternative fuel for heavy-duty vehicles in the early 2010s. Europe

is another demand centre for LNG as road fuel, particularly in the high mileage heavy-duty ve-hicle sector where alternative fuel technology (e.g., hydrogen fuel cell) has yet to attain com-parable levels of technology and commercial readiness. With a growing preference for an LNG-fuelled fleet from haulage, logistics and transportation sectors across European markets such as Belgium, France, and the Uk, LNG consumption as a road fuel is anticipated to pick up in the near term. Notably, the number of new registrations for LNG-powered vehicles in Eu-rope increased almost three-fold in 2019 from the previous year.

Sources:1. IGU World LNG Report, 20212. Various news items

lnG as road fuel has experienced a surge in demand in recent years, reaching a total of 11.7 million tonnes in 2020. This represents a doubling in consumption level since 2016.



Gujarat added most CnG stations in India during April-January 2020-21:

the state accounted for 20% of the new CNG stations developed in the country during the period. the number of CNG stations in Gujarat increased to 738 by the end of January 2021 as compared to 636 CNG stations in April 2020.

AG&P Pratham opens the first two CNG stations in Alappuzha, kerala:

AG&P launched its first two CNG stations in Alappuzha, kerala, under its brand AG&P Pratham. the stations are co-located with BPCL St. Augus-tine Pump at Aroor, and HPCL VAVA Fuels in Eramalloor.

Indian oil opens two CnG retail outlets in Coimbatore, 15 more to come up:

IoC opened two CNG retail stores in Coimbatore (tamil Nadu). the company is building a city gate station or CGS and a steel pipeline network

naTIonal newsCity Gas Distribution

in various districts of Coimbatore, to bring piped gas connectivity.

1,300 boats to get new CNG engines in Varanasi:

the Varanasi district administra-tion has decided to replace old diesel engines by CNG engines in over 200 boats every month to achieve the target

of converting an estimated number of 1,300 boats.

Uttam Group of Companies, in partnership with Mahanagar Gas, launched ‘Ashvath’, an integrated CNG refueling unit. this is the first of its kind mobile compact fill-ing station mount-ed on a moving truck, which can be parked in designated areas allowing CNG access to fleets virtually any-where. Mahanagar Gas and Indraprastha Gas, among others, are piloting MRUs and have invited expressions of interest for setting up more units. These units are an effective way of reaching out to customers and will also accelerate the expansion plans of CGD companies.

Ashvath: India’s first CNG Mobile Refuelling Unit (MRU) mounted on a truck:

neWs Brief

dharmendra Pradhan inaugurates 201 CnG stations: the Union Min-

ister for Petroleum and Natural Gas and Steel Dhar-mendra Pradhan, inaugurated GAIL group’s 201 CNG stations spread across the country.

He also inaugurated the commencement of PNG supply in Jhansi.

Panchkula gets piped natural gas:

Haryana Speaker and local MLA Gian Chand Gupta laid the foundation stone of a natural gas pipeline in Panchkula on April 15. the work of laying the pipe-line will be carried out by Indian oil-Adani Gas Private Limited. A pipeline of 10.85 km would be laid in the city.


Electric Mobility & Bio- MethanebbmP signs pact with GaIl for biogas supply:

Bruhat Bengaluru Mahanagara Pa-like (BBMP) signed a memorandum of understanding (MoU) with GAIL India, according to which it will give the company around 300 tonnes per day (tPD) of organic waste to gen-erate compressed biogas (CBG). the plant will come up at a cost of around Rs 60 crore.

IoC inks pacts with Gujarat govt for implementing 24,000 crore projects:

the projects include plans to run buses across major cities fuelled by hydrogen blended with CNG. 50 buses in Delhi are plying on blended hydro-gen in CNG on a pilot basis.

FCeV: New breed of hydrogen-powered electric vehicles India plans to test:

National thermal Power Corpo-ration (NtPC), India’s largest power generator is planning to procure such vehicles for pilot projects. International automobile maker toyota and Hyundai Motor, and India’s tata Motors, Ashok Leyland and kPIt technologies have shown interest in the initiative.

ola electric to invest $2 bn in battery charging network:

ola Electric Mobility Pvt. Ltd, which is setting up a mega factory to produce e-scooters, will invest $2 billion in the next five years to build an electric two-wheeler charging net-work. According to the company, 100,000 EV chargers across 400 cities, of which 5,000 charging points will be installed in 100 cities in 2021-22.

NItI Aayog suggests govern-ment to provide incentives on eV purchase apart from subsidy under fame-II:

Government think tank Niti Aayog has suggested the government should provide incentives on electric vehicle (EV) purchase over and above the ex-isting subsidy under the Faster Adop-tion and Manufacturing of Hybrid and EV (FAME-II) scheme. the Aayog also recommended providing interest subvention on loans taken for EV pur-

chase. Mean-while, the two and three-wheeler m a n u f a c t u r -ers are upbeat about the pos-itive sentiment and enhanced

interest of the government in EVs shown by increasing the subsidy under FAME II. EVs are getting a major push in India. According to data provided by the Society of Manufacturers of Elec-tric Vehicles (SMEV), 2,36,802, elec-tric vehicles were sold in Fy2020-21, out of which 88,378 units were electric three-wheelers.

PlI scheme to help India develop as manufacturing hub for eV cells:

India approved a production linked incentive (PLI) scheme with an outlay of ₹18,000 crore to promote manufacturing, export and storage of lithium-ion cells, essential for developing EVs. through this scheme the Union government aims to install a man-ufacturing capacity of 50 gigawatt hour (GWh) of Advanced Chem-istry Cells (ACC) and 5GWh ca-pacity of “Niche” ACC. ACCs are essentially lithium-ion cells.

Gujarat Cm launches 50 Jbm electric air-conditioned buses in ahmedabad:

Chief Minister of Gujarat Vijay Rupani launched 50 JBM ECo-LIFE electric buses from Vastral BRtS De-pot virtually via web conferencing. This is the first batch, out of a total of 180 buses that JBM Auto will be sup-plying to Ahmedabad city.

neWs Brief

hero motoCorp ties up with Taiwan’s Gogoro Inc with focus on electric mobility:

Hero MotoCorp partnered with taiwan-based Gogoro Inc to collaborate in the field of electric mobility. the com-panies will establish a battery swapping joint venture to bring Gogoro’s industry leading bat-tery swapping platform to In-dia and will collaborate on electric vehicle development to bring Hero-branded, powered by Gogoro network vehicles to market.


India’s natural gas output rises 23% as RIL-BP fields start production:

Gas production jumped 22.7% in April after Reliance Industries Ltd and its partner BP Plc ramped up output from kG-D6 block. In-dia produced 2.65 billion cubic meters of natural gas in April, up from 2.16 bcm in the same month last year.

IGx introduced two new gas trading hubs at dabhol & Jaigarh in maharashtra:

the Indian Gas Exchange (IGX) commenced the gas trade from these two new physical hubs.

Confidence Petroleum to set up Rs 200 cr CNG cylinder making unit:

Confidence Petroleum India Lim-ited (CPIL) will set up a state-of-the art CNG cylinder manufacturing unit in Nagpur at an investment of Rs 200 crore. The company has identified a 30 acre piece of land in Umrer MIDC for its new unit.

adani Total Gas q4 results: Adani total Gas Ltd reported a 19

per cent rise in its March quarter net profit as the firm expanded operations in newer geographies, resulting in

neWs Brief

Natural Gas/Pipelines/Company News

MeIL makes India’s first hydraulic rigs:

Megha Engineering and Infrastructures Limited (MEIL) achieved another milestone by manufacturing rigs for the oil and gas sec-tor. the rigs designed with advanced hydraulic technol-ogy began operations in the Kalol oil field near Ahmed-abad, Gujarat. these rigs made with 1,500 HP capac-ity can easily drill oil wells to a depth of 4,000 meters (4 kilometers) from the sur-face. these rigs can work for the next 40 years.

appointment of director on GaIl’s board:

GAIL (India) a n n o u n c e d the appoint-ment of Dr. Navneet Mo-han kothari,

JS (Marketing), Ministry of Petroleum and Natural Gas on the Board of Directors of GAIL (India) w.e.f. 16 June 2021 for a period of 3 years on co-terminus basis or until further orders, whichever is earlier.

Reliance, affiliates buy 3/4 of KG-D6 gas volumes: Reliance Industries Ltd and its affiliates have picked up more

than three-fourths of the new gas volumes from the firm’s east-ern offshore KG-D6 block which at current government dictated price will cost it less than half of the imported rate. Reliance and its partner Uk’s BP Plc recently auctioned 5.5 million standard cubic meters per day of incremental gas from the newer discov-eries in the kG-D6 block.

higher sales volumes. Net profit in the January-March quarter of FY21 was Rs 145 crore com-pared to Rs 122 crore in the same period of the previous fiscal year.


low and stable gas prices result in huge gains for IGL, mGl:

Domestic gas prices have re-mained unchanged during a recent review for the April-September period. Rising prices of petrol and diesel have made CNG used by au-tomobiles as a cheaper fuel option. CNG is 45-60% cheaper than petrol and diesel. IGL and MGL are the biggest beneficiaries of lower do-mestic gas prices as they are more dependent on domestic gas.

oil minister Pradhan meets us Special envoy John Kerry:

oil Minister Dharmendra Prad-han discussed efforts to revamp strategic energy partnership be-tween India and the US with the visiting US Presidential Special Envoy for Climate John kerry. the

Policy Matters/Gas Pricing/others

LNG Development/Deals/Shipping

neWs Brief

discussions focused on collaborat-ing on technology and finance to further develop mutually beneficial low-carbon pathways in fast-grow-ing India’s energy market, including in gas, RE, biofuels & in hydrogen.

amendment in Central Motor Vehicles Rules to promote clean fuel in rural India:

the Ministry of Road trans-port and Highways has notified an amendment in the Central Motor Vehicles Rules, with an aim to promote clean fuel in ru-ral India. Following the amend-ment, agriculture tractors, power tillers and construction equipment vehicles that run on diesel and petrol can be retro-fitted with CNG, bio-CNG and LNG fuel engines.

India’s 1st fsru arrives in maharashtra:

India’s first Floating Storage and Regasification Unit (FSRU) has ar-rived at H-Energy’s Jaigarh terminal in Maharashtra.

total to supply LNG to arcelormittal’s plants in Gujarat:

French energy giant total has signed a deal to supply imported LNG to ArcelorMittal Nippon Steel’s steel and power plants in Gujarat. Under the

deal, total will supply up to 0.5 million tonnes of LNG per year until 2026.

Inoxcva ties up with Japan’s mitsui to expand lnG distribution business:

Inoxcva, which launched the first indigenously developed LNG dispens-ers, has entered into a tie-up with the Japanese conglomerate Mitsui & Co to expand its LNG distribution business through tankers.

Petronet lnG to invest $2.6 billion for expansion over 5 years:

Petronet LNG plans to invest 66.9 billion rupees to expand its 17.5 MtPA Dahej terminal in the West coast to 22.5 MtPA, build a new terminal in the east coast and building new jetty and LNG tanks at Dahej and kochi.

H-energy inks MoU with Petrobangla for lnG pipe link:

Achieving a major milestone for supply of regasified LNG from India to Bangladesh, H-Energy signed an MoU with Petrobangla on June 16, 2021. Supply of R-LNG to Bangladesh will take place through a cross-border nat-ural gas pipeline.


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Snapshot covers national & international news on City Gas

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InTernaTIonal news

US: SeMCO energy Goes Live with oaTI’s natural Gas Pipeline Transportation management system:

open Access technology Inter-national, Inc. (oAtI) went live with the oAtI webPipeline™ solution for SEMCo Energy Gas Company, a pub-lic natural gas utility headquartered in Port Huron, MI.

China Gas plans $1.5 bln share sale for gas projects, business development:

China Gas Holdings Ltd plans the

sale of Hk$11.66 billion ($1.50 bil-lion) worth of new shares to major shareholders, to raise capital for gas projects and expansion. It plans to ac-quire city gas projects in China and ex-pand and develop LPG and distribution heating businesses. the gas services provider has agreed to sell 392 million new shares.

SPAIN: IVeCO delivers largest ever NGV fleet to a Spanish logistics company:

With routes to more than 20 coun-tries, ESP Solutions has opted for IVE-Co’s natural gas technology to become

Natural Gas / transnational Pipelines / othersthe leader in sustainability in Europe. the transport company’s goal is that 50% of its fleet is sustainable by 2022; and 80%, within five years.

Spain: Naturgy puts into operation public natural gas station in Catalonia:

Naturgy has opened a new public CNG and LNG station in Manresa, allowing fast refueling of both light and heavy vehicles. the new facility has a 60m3 LNG tank and is designed to allow its expansion with another 80m3 tank. Naturgy plans to carry out new openings of this type of facilities throughout this year.

UK postal service company adds bio-CNG fleet: Royal Mail is expanding its use of low emission vehicles, with the

addition of 29 CNG trucks, which will run on biomethane. At 40 tons, the new trucks are a similar size to a typical Royal Mail heavy goods vehicle. they are well designed to carry mail and equipment of all shapes and sizes and can be used on most roads and highways.

Canada: federal Gov. gives $3M to build NGV stations on trans-Canada Highway:

Canada announced a $3 mil-lion investment to Envoy Ener-gy for the installation of three natural gas stations in northern ontario. the government has invested over $600 million to make alternative fuel infrastruc-ture more accessible. Also, Can-ada is investing more than $4.9 million, and the Government of British Columbia over $4.5 million in two projects through the Public transit Infrastructure Stream (PtIS) of the ‘Investing in Canada’ plan.

neWs Brief


neWs Brief

Global LNG Development

south korea: samsung opens test facility to develop and verify LNG technologies:

Samsung Heavy Industries (SHI) has opened a test facility at its shipyard in Geoje, Seoul, to develop and verify key technologies for LNG value chain from production to transportation, storage and supply.

one of europe’s largest bio-lnG plants under construction in Italy:

HAM Group is developing one of the largest facilities in Europe produc-ing 100% biomethane for transporta-tion, with an estimated annual capac-ity of 9 million kilos, equivalent to 140GWh/year. The project in Faenza, Italy starts from the biogas generated by two digesters owned by Caviro Spa, an Italian wine cooperative, where they recover by-products derived from the wine and agri-food chain, which is transformed into biogas. Also, HAM has developed the first 100% biometh-ane for vehicles project in Spain, which will allow customers to enjoy biofuel at the company’s service stations. the biogas plant is owned by Apergas.

uTa now operates the largest lnG refueling network in europe:

UtA’s LNG refueling infrastructure has grown to almost 170 service sta-tions at strategically important trans-port hubs in 10 countries, making it currently the largest LNG network in Europe. UtA cooperates with more

than 70 partners in the field of LNG.

russia: kamaz & Tatneft join forces to develop lnG station network:

kamaz PtC and tatneft are launching complexes with units

for refuelling with LNG in Russia. the project is planned to be implemented at tatneft’s existing retail and distribu-tion network facilities. USA:

tellurian signs 10-year LNG agreement with Vitol for 3 MtPA:

US LNG developer tellurian Inc had signed a 10-year sale and purchase agreement with commodity trader

Vitol for 3 MTPA of LNG. It is the second 10-year, 3-MTPA agreement tellurian has announced in a week, following a deal with commodity trad-er Gunvor Group. Each deal is worth about $12 billion in revenue over the contract period.

Singapore: Pavilion energy imports carbon neutral lnG cargo:

Pavilion Energy Singapore Pte. Ltd. has imported a carbon neutral LNG cargo into Singapore. In Novem-ber 2020, Pavilion Energy trading & Supply Pte. Ltd. and QP trading LLC signed a ten year LNG sale and pur-chase agreement for the supply of up to 1.8 million tons of LNG per year to Singapore from 2023.

Finland: Gasum’s Nordic NGV stations now open to DVK Central european clients:

Gasum’s natural gas refuelling in-frastructure will be available also for Central European customers, enabling cross-border corridors for natural gas-powered logistics, as the company and DkV agreed on cooperation that extends the network of LNG and CNG stations for DkV Card holders to Fin-land and Sweden. DkV Card is accept-ed at around 168 LNG and 1,788 CNG stations all over Europe.

Italy: IVeCO & Plus will build autonomous driving trucks powered by LNG:

IVECo and Silicon Valley-based Plus, a global self-driving truck tech-nology company, have signed an MoU to jointly develop autonomous trucks that will be deployed across Europe, China, and other geographies. Both

companies will integrate IVECo’s latest-generation S-WAy heavy-duty truck with the PlusDrive full-stack au-tonomous driving system.

US: Amazon’s fleet will refuel low & negative carbon biogas in 15 states:

Clean Energy Fuels Corp. has signed an agreement with Amazon to provide low and negative carbon renewable natural gas. the fuel will be supplied at 27 existing and 19 non-exclusive new/upgraded Clean Energy-owned stations that the company expects to be constructed by the end of the year. the new and existing facilities will provide biomethane in 15 differ-ent states.

USA: Bitcoin miners tout benefits of flared natural gas:

Bitcoin and other cryptocurrencies require masses of computers dedicat-

Natural Gas / LNG Utilization


south korea: shI unveils lnG fuel cell-powered wind turbine installation vessel:

Samsung Heavy Industries has re-ceived approval for a new LNG-fu-elled, fuel cell-powered wind turbine installation vessel. the new design will also have a new jack up system, engineered in partnership with Hy-osung Heavy Industries.

Spain: Baleària’s fast ferry completes first trip operating on 100% bio-lnG:

Baleària and Axpo Iberia have reached a new milestone in the de-carbonization of maritime transport by completing the first pilot trip on a fast ferry with 100% renewable fuel in Europe. The 133-mile jour-ney between the ports of Barcelona

ed its sea trials. the Dmitry Men-deleev is an Arc4 ice-class vessel which will be able to transport up to 5,800 cubic metres of LNG. the shipping sector is under pressure to reduce carbon emissions.

bermuda: flex lnG takes delivery of final LNGC:

Bermuda-based fleet owner Flex LNG has taken delivery of another LNG carrier (LNGC) from South korea’s Hyundai Samho Heavy Industries. the Flex Vigilant has a capacity of 174,000 m3. It will serve US LNG export Cheniere Energy under a three-year time charter deal.

China: Gtt to design cryogenic fuel tanks for 12 new container vessels:

Gtt has been chosen to design the cryogenic fuel tanks of twelve new LNG fuelled container vessels for the CMA CGM group. the con-struction of these container vessels has been entrusted to the Chinese shipyards Hudong-Zhonghua Ship-building (Group) Co. Ltd. and Ji-angnan Shipyard (Group) Co., who will each build six vessels, able to carry 13,000 and 15,000 containers respectively.

LNG as a Marine Fuel/Shipping

and Ciutadella (Menorca) was made by Baleària’s Eleanor Roosevelt. the use of biomethane as a renewable fuel on this journey avoided the emission of more than 50 tons of Co2 into the atmosphere.

Italy: MSC charters 11 LNG-fuelled container ships from ePs:

MSC is making a bet on natural gas. MSC is set to charter 11 LNG-fuelled container ships from Singapore-based Eastern Pacific Shipping (EPS). LNG is an increasingly popular alternative to bunker fuel.

Russia’s first LNG refuelling ship completes sea trials:

Russia’s first ship designed to run on liquefied natural gas (LNG) and fuel other vessels with LNG has complet-

ed to solving deliberately complicated equations that globally consumes more electricity than entire nations (US), but for which these start-ups say the jets of flaming gas placed next to oil wells are perfect power sources. CBE-CI estimates that the average global power cost for bitcoin mining is about US$0.05 per kilowatt hour. Lohstroh said that natural gas power could bring the kilowatt hour cost to below US$0.018.

neWs Brief

Japan’s Ministry of environment adopts compact lnG station project:

Mitsubishi Corporation (MC) and Air Water Inc. (Air Water) announced that their pilot project to help decar-bonize heavy-truck logistics has been adopted for inclusion in the Ministry of the Environment’s Low Carbon technology Research and Develop-ment Program. the project will fuel LNG-powered heavy trucks via a net-

work of compact filling stations.

Mexico, North America: More than 50% of querétaro urban transit system runs on CNG:

the Querétaro transport Insti-tute reported that six out of ten buses of Móvil Qrobús run on natural gas. Qrobús has renewed 50% of its vehi-cle fleet in the last three years and has chosen to be responsible with the en-vironment.


neWs Brief

technological Development for Cleaner and Greener Environment Hydrogen & Bio-Methane/Renewable gasuk: robotic wireless lead detection systems are gaining prominence among natural gas distribution market trends:

the A6 oMD robot developed by SMP Robotics is used to detect under-ground pipeline gas leaks. It uses GPS to frame a map to locate the gas leak for a pipeline of any length, which is helpful in the LNG market. this tech-nology provides reliable results and a reduced amount of data to be processed in detection to plug gas leakages.

Italy: Snam will help boost biomethane & hydrogen mobility in emilia romagna:

the Region of Emilia-Romagna and Snam signed a MoU according to which they will work together to de-velop coordinated and effective initia-tives, identifying hydrogen, biometh-ane, sustainable mobility and energy

efficiency as the main areas of devel-opment.

South Korea: Doosan Heavy Industries & Construction accelerates the development of eco-friendly hydrogen gas turbines:

the company signed a business agreement with Ulsan Metropolitan City, korea East-West Power Co., Ltd and SK Gas on June 3 to promote gas hydrogen turbine demonstration proj-ects. Under this agreement, Ulsan City will support the administration to build hydrogen gas turbine business infra-structure.

finland: finnish government supports growth of biomethane as vehicle fuel:

Gasum’s new biogas plant locat-ed in Munkkaa, Lohja has opened in Finland. the new facility will process around 60,000 tons of bio-degradable waste from the Helsin-ki region each year to produce 40 GWh of biomethane to be used as transport fuel. the amount is equiv-alent to the annual consumption of 4,000 cars. Use of biogas as a vehi-cle fuel can help to reduce lifecycle emissions by up to 90%.

saudi arabia: International energy Forum Launches Methane measurement Project to address Climate Change:

the IEF has launched a new initia-tive to develop a measurement meth-odology for methane emissions from the energy industry, allowing its mem-ber countries to collect standardized data to address a major cause of cli-mate change.

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