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MILLIONS IN INVESTMENTSCHASING BILLIONS IN RETURN:

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OF THE EAST - MYANMARLNG OUTLOOK IN

SOUTH EAST ASIA

Not Finance On Wallstreet, But Biogas in Asia

26TH WORLD GASCONFERENCE 2015

EVENT & EXHIBITION:

VOL. 18 | MAY - JUNE 2014

2NGV Transportation Magazine Vol. 18 May - June 2014

UNITING THE INDUSTRY INTO THE PHILIPPINES - 5th MARKET TO JOIN SOUTH EAST ASIA LNG IMPORTERS' CLUB

www.lng-world.com

2nd

LNGFORUM SERIES

14 - 16 October 2014 | The Peninsula , Manila , Philippines

LNG SUPPLY, TRANSPORT & STORAGE PHILIPPINES

PROGRAM INTRODUCTION

For the Philippines – as the 5th market to join South East Asia LNG importers' club – importing liquefied natural gas (LNG) is only a question of when and how, no longer if. The Philippines is under way to become a major LNG hub and LNG terminal player in Southeast Asia and is a market which is hard to ignore for upcoming LNG businesses.

The 2nd Annual LNG Supply, Transport & Storage Philippines 2014 will continue to bring together key stakeholders to exchange perspectives on the emergent LNG sector as well as enable industry players to have input on the finalization of the new natural gas master plan focused on the development of LNG import infrastructures. This forum will once again bring together a balance of high-level and on-the-ground regulatory, technical and commercial perspectives to ensure sustainable LNG supply, establishing and speeding up the commercialization of your LNG businesses.

IN PARTNERSHIPWITH

For more information, please contact:ALL EVENTS GROUPLynn LimE: [email protected] P: +65 6506 0964F: +65 90303575

3 Vol. 18 May - June 2014 NGV Transportation Magazine

EDITOR’S TWO CENTS

Greetings all!

It has been a new year of many new beginnings and many more new developments in the natural gas market. Many Southeast Asian countries have begun to develop new infrastructure to facilitate the distribution and widespread use of LNG within the region. Biogas projects have also been attracting the attention of investors and plantation owners in Malaysia as the country recently reviewed its FiT scheme for renewable energy alternatives.

Numerous industry giants have been tying up long term supply deals across the globe such as Total and CNOOC while others are securing exploration deals in newly developing markets such as BG Group in Myanmar. Other companies of this calibre have also begun setting up shop in East African nations as large scale development is finally underway in light of the enormous gas reserve discoveries in Mozambique and Tanzania.

Myanmar is one of the last nations to rise up, out of Southeast Asia and is only just beginning to break out of its shell as the last few chapters of its tumultuous past have finally come to a close.

The possibilities for growth in these developing nations have the sky as their limit and it’s all about who establishes the framework first. Positioning of oneself in the market is the key for future success and should be seen as a top priority.

These are no longer subtle hints suggesting long term prospects of this clean source of energy, these are blatant red flags that are turning heads all across the world. Upstream and downstream sectors are buzzing with life as the competition heats up and players take their spots on the field. Nobody wants to get left behind and it’s our job here at NGV Transportation to ensure that you don’t.

There is an even greater need to stay informed as there are more and more ways to achieve the same goals. It is necessary that we provide a platform for discussion as technological advancements are plentiful and new companies are springing up through the floor boards each day. We understand that in a busy world, there is not always time to be neck deep in industry news and we hope to fill this role for you.

NATURAL GAS GLOBAL

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Managing Director Vincent Choy [email protected]

Chief Editor Rizal Rahman [email protected]

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Stefani Budiman Business Development Manager [email protected]

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Graphic Designer Puspo Aurum [email protected]

All rights reserved. No portion of this publication covered by the copyright herein may be reproduced in any form or means – graphic, electronic, mechanical, photocopying, recording, taping, etc – without the written consent of the publisher. Opinions expressed by contributors and advertisers are not necessarily those of the publisher and editor.

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UNITING THE INDUSTRY INTO THE PHILIPPINES - 5th MARKET TO JOIN SOUTH EAST ASIA LNG IMPORTERS' CLUB

www.lng-world.com

2nd

LNGFORUM SERIES

14 - 16 October 2014 | The Peninsula , Manila , Philippines

LNG SUPPLY, TRANSPORT & STORAGE PHILIPPINES

PROGRAM INTRODUCTION

For the Philippines – as the 5th market to join South East Asia LNG importers' club – importing liquefied natural gas (LNG) is only a question of when and how, no longer if. The Philippines is under way to become a major LNG hub and LNG terminal player in Southeast Asia and is a market which is hard to ignore for upcoming LNG businesses.

The 2nd Annual LNG Supply, Transport & Storage Philippines 2014 will continue to bring together key stakeholders to exchange perspectives on the emergent LNG sector as well as enable industry players to have input on the finalization of the new natural gas master plan focused on the development of LNG import infrastructures. This forum will once again bring together a balance of high-level and on-the-ground regulatory, technical and commercial perspectives to ensure sustainable LNG supply, establishing and speeding up the commercialization of your LNG businesses.

IN PARTNERSHIPWITH

For more information, please contact:ALL EVENTS GROUPLynn LimE: [email protected] P: +65 6506 0964F: +65 90303575

www.facebook.com/NGVTMag

www.linkedin.com/company/NGV-Transportation

@NGVTmag


CONTENT

NEWS AROUND THE WORLD

Millions in Investments Chasing Billions in Return:

Not Finance on Wall Street But Biogas in Asia

LNG Outlook In South East Asia

CNG is Said to be Safe, But How Safe is “Safe” Really?

The Last Burgeoning Gas Jewel of The East - MYANMAR

Bio-Methane For Transportation Virtual Pipeline For Biogas

25

22

28

18

30

FEATURE

SPECIAL REPORTS

UPCOMING EVENT:

0515

33

14

COULD LNG BE THE NGV FUEL OF THE FUTURE?

26TH WORLD GAS CONFERENCE



PTT plc has planned to use 20 billion baht (US$ 0.62 billion) to develop the 2nd phase of an LNG terminal and gasification plant. It recently granted an engineering, procurement and construction (EPC) contract for to South Korean, Daewoo Engineering Co and IHI Co. Construction is scheduled to begin soon nearby the existing terminal in Mab Ta Phut, Rayong.

Pailin Chuchottaworn said PTT will sign the EPC contract for the gasification capacity of 5 million tonnes. This is equivalent to the first terminal. The second phase is set to be operational by 2017. The first phase has been operating as of November 2011. Chuchottaworn said that PTT expects to import 1.4 to 2 million tonnes of LNG this year. This is a decrease compared to last year’s

In a bid to salvage the world’s biggest compressed natural gas industry, the Pakistani Government has announced that it will supply uninterrupted CNG in Punjab every single day of the week beginning April 1st 2014.

Federal Minister for Petroleum and National Resources Shahid Khaqan Abbasi has said that, “CNG filling stations would remain open from 10am to 4pm, Monday through Saturday and 6am to 12 midnight on Sundays.” The federal minister said that this decision is in aid of helping owners of 3.5 million CNG vehicles have shorter queues and waiting times at refilling stations. The decision will help more than 80 million commuters, reducing fares, increasing government income, saving gas and electricity while at the same time reviving the Rs 450 billion (US$ 4.66 billion) CNG industry in Pakistan.

- Dawn

PAKISTANMARCH 2014: CNG Outlets To Remain Open 7 Days A Week In Punjab

forecasted imports as Thailand is experiencing an economic slowdown. PTT however has still maintained that demand by 2016 it will still reach 5 million tonnes.

PTT currently has a long term purchasing contract with Qatar Gas Co at 2 million tonnes per annum for 20 years, which starts from next year. Chuchottaworn has said that, “Demand for natural gas in the Thai market is increasing every year but gas reserves in the Gulf of Thailand are slowly being depleted so LNG might become one of the backbones of energy sources in the future” PTT projects that in the next ten years, LNG will account for 55% of total gas supply in Thailand. This is quite an increase from last year’s figures of only 4%. This is expected to be the case as demand continues to

increase while gas supply from pipelines will decrease.

P T T s s u b s i d i a r y P T T Exploration and Production (PTTEP) p lans to deve lop LNG at its gas blocks located in Australia and Mozambique for local gas needs past 2019. Senior executive vice president Charcie Buranakanonda, said the company plans to purchase 70% of the total import value of LNG through long term contracts.

S p e a k i n g a t t h e g a s tech conference in Goyang, Chuchottaworn said that prices will drop significantly in the next few years because buyers from Japan, South Korea, China and Taiwan are planning to re-look their long term purchasing contracts from oil and gas firms.

- Bangkok Post

THAILANDMARCH 2014: PTT Signs EPC Deal With Korean Firms



Karachi Commissioner Shoaib Siddiqui has said that all school buses and vans fitted with faulty or substandard CNG kits would be impounded during a meeting to review the pace and progress

Due to the scarcity of CNG stations available in Vijayawada CNG fuelled rickshaw drivers are finding their lives somewhat difficult. The city currently has 8000 auto-rickshaws but only 4 filling stations. The stations are located at Pamulakalava, Ramavarapadu, Bhavanipuram a n d A j i t S i n g h N a g a r respectively. More than 16000 families depend on the supply of CNG for their livelihoods as each vehicle normally has two drivers who work in shifts.

The bunks run dry every a l t e r n a t e d a y a n d B u j j i o f V i j a y a w a d a C N G A u t o Assoc iat ion has sa id that , “Everyone has to wai t for hours in queue, and on most occasions, they return empty-handed, thanks to lack of stock. It is difficult to drive down to the other part of the city for refuelling. If one fails to plan, the whole day is wasted without any income”.

There have been reports of

PAKISTAN

INDIA

APRIL 2014: School Vans, Buses With Faulty CNG Kits To Be Impounded

APRIL 2014: Scanty, Dry Fuel Stations Hit CNG Autos

of the campaign against insecure public vehicles.

He stressed that the life of the public should never be put at risk under any pretext whatsoever and as such this required strict action to be taken. He said the ongoing spot checking must put equal attention towards school buses and vans adding that they would not succumb to any pressure in their endeavour.

144 vehic les have been challenged and Rs 164400 (US$ 1704) in fines was imposed while nine of the vehicles were

i m p o u n d e d . H y d r o c a r b o n Development Institute of Pakistan (HDIP) and the Regional Transport Authority (RTA) are part of several teams conducting these spot checks.

Regional Transport Authority Secretary, Ghazanfar Ali Qadri has said that drivers found to be in violation of safety standards would be strictly waned and given a minimum time bar for removal of the faulty or substandard kits.

- Pakistan Today

deaths of up to 8 drivers who have been bitten by snakes while waiting in line for fuel at night at the Pamulakalava filling station. To make matters worse the pumping also requires a high pressure pump and during power cuts which are fairly frequent the filling stations go idle as the generators are unable to provide sufficient power to run the pump. Narayan Prasad, vice-president, Consortium of Indian Petroleum Dealers Association, south zone has expressed his concerns over this as he feel it has become a major issue that needs to be dealt with.

One of these CNG rickshaw drivers speaking as one of the first few to switch over to CNG has said, “We were happy when we were running diesel autos. Initially, CNG was priced at Rs 18 (US$ 0.30), but now it has gone up to Rs 53 (US$ 0.88). And, on top of that we have to fill in engine oil, and together it comes to Rs 60 (US$ 0.99), which is close to the price of diesel. So, what is the use? We were told that the prices will not increase”.

- The Hindu



Mozambique’s proposed LNG project has the lowest upstream capital costs in the world. This is slowly garnering attention for the country as a highly attractive location for development. With 25 countries looking to start new LNG projects within the next 5 years, the race is on to become East Africa’s first LNG exporter.

According to the Royal Bank of Canada Capital Markets, “East Africa has emerged as an important hydrocarbon province in the wake of enormous natural gas discoveries made in Mozambique and Tanzania since 2010.” It added that, “This abundant resource picture has piqued the interest of Asian LNG buyers who are seeking to diversify their portfolios. “

The report went on to say that the total initial capital at an offshore greenfield project in Mozambique would cost between USD 1600 and US$ 2100 per ton per annum, compared to US$ 2,100 - 2,200 on the U.S. Gulf Coast and US$ 2100 - 2600 on the Canadian West Coast. It mentioned that, “As a greenfield project, Mozambique’s LNG export thrust will need to contend with its remote location, limited infrastructure, and reliance on imports of equipment and skilled labour.” The integrated supply cost for a Mozambique project is around US$ 11 - 13 per million cubic feet, similar to projects in Western Canada and Western Australia but cheaper than Eastern Australia. It was also stated that, “Gas discoveries offshore Mozambique have made up the largest and most regular source of exploration success over the last few years and recoverable resources.”

Major players such as Exxon Mobil Corp, Chevron Corp, BG Group and Asian national oil companies

The first CNG stations have arrived in Langlaagte, Joahnnesburg. Operators are hoping that this will help their profits boom as infrastructure expands and consumers take advantage of cheaper and cleaner fuel sources. CNG has the potential to reduce local fuel bills by up to 40%.

Internationally compressed gas was first taken up by the taxi industry, refuse removal vehicles and bus companies. NGV Gas a

MOZAMBIQUE

SOUTH AFRICA

APRIL 2014: Emerging As An LNG Front-Runner

MARCH 2014: CNG Filling Stations Arrive At Last!

are scouting various locations around the world such as Mozambique, Australia, the United States and Canada to build LNG export plants. Anadarko currently has a 26.5% stake in the East African assets and has discovered recoverable gas reserves of 45-70 trillion cubic feet along an area spanning 2.6 million acres. India’s Oil & Natural Gas Corporation (ONGC) teamed up with Oil India to buy a 10% stake in Anadarko’s Mozambique assets for US$ 2.5 billion. ONGC then acquired an additional 10% stake in the basin for US$ 2.6 billion. Eni also has 50% interest in an area that holds an estimated 85 trillion cubic feet which has had China National Petroleum Corporation buy a US$ 4.2 billion stake.

A recent law which is pending approval will provide a robust legal framework encompassing oil and gas investment including LNG. The Royal Bank of Canada has said that, “In cooperation with the Mozambique government, Eni and Anadarko plan to develop the US$ 50 billion onshore Mozambique North LNG project.” It went on to say that, “The companies are progressing discussions with potential LNG buyers in the Asia-Pacific region, are coordinating upstream gas development in their respective offshore blocks and are working with the Mozambique government to accelerate project approvals.” RBC estimates that the first two trains of the project could cost anywhere between US$ 8 billion - 10 billion. The plans are to set up 10 trains with a total capacity of 50 million tons per annum by 2030.

- Zawya

subsidiary of CNG Holding has recently launched its first flagship CNG station in Langlaagte. Stephen Rothman, managing director of CNG Holdings, says that, “as fuel becomes increasingly expensive, individuals who travel a lot will benefit significantly from a conversion.” NGV Gas currently supplies to 110 taxis and expects to increase to 1000 taxis by early next year.

A litre equivalent of CNG is

sold at R 9.99 (US$ 0.90), which includes VAT as well as R 1.26 (US$ 0.12) for the recovery of the conversion kits installed in the taxis. The initial conversion costs however are a little bit costly at R 20000 (US$ 1893.94). Also one bad thing is that drivers lose a third of their boot space as CNG cylinders need to be mounted at the back.

Most people who end up converting are sales representatives



and others who do not use their vehicles for family purposes. Conversion to CNG still allows for the use of normal petrol which can be activated by pressing a button. This is already happening in Asia, South America and Europe.

At this stage there are currently no government incentives for the taxi industry to convert to CNG. Rothman says that, “The National Treasury is still trying to determine how the taxing structure should

work. At the moment there is only value-added tax on gas.”

The Industrial Development Corporation who owns 38% of CNG Holdings decided to invest in the industry as it sees the potential to reduce the nation’s carbon footprint. NGV Gas plans to expand to include two retrofit (existing filling stations with the ability to supply gas) filling stations in Soweto as well as a satellite filling station in

Randburg. Rothman says that they are further looking at another two retrofit filling stations in Pretoria: one near Mahube in Mamelodi and one in Silverton. These five filling stations are expected to be operational by around June this year. Total funding for phase one of the expansion is estimated to be roughly R 120 million (US$ 11.36 million).

- The Citizen

BG has established a strong base in Myanmar after winning rights to explore for natural gas off Myanmar’s c o a s t l i n e . According to BG, “This has been granted in line with BG Group’s

strategy to focus on securing prospective frontier acreage and enter, on average, one new basin each year.” Estimates suggest that there are 23 trillion cubic feet available for exploitation.

Myanmar has had its doors closed to foreign investments for years due to sanctions that were set up by the country’s military regime and is only now opening up. The EU has recognised Myanmar’s transition away from military dictatorship after the government released thousands of political prisoners and eased rules on freedom of expression.

Finding new sources of energy has become a key concern for Myanmar in order to meet the needs of its rapidly growing economy and ever increasing population of 60 million people. Statoil and ConocoPhillips have both recently established a presence in the country.

According to the Energy Information Administration, natural gas is the world’s fastest growing fossil fuel market with annual consumption expected to increase to 185 trillion cubic feet by 2040, from 113 trillion cubic feet in 2010. In Asia, consumption is expected to climb by an average of 1.3pc a year through to 2040.

BG, who have already extended their global repertoire to include exploration and production in Tanzania and Brazil will operate two blocks in Myanmar. The company has mentioned that it has also secured a non-operated acreage in the Rakhine Basin.

BG has plans to carry out a 3D seismic programme with each search for exploitable amounts of gas in each block. Work is expected to begin sometime later this year.

- The Telegraph

“Shell and BP have signed deals with Kuwait to supply the country with LNG over the next few years,” said an official from Kuwait Petroleum Cvorp (KPC). Kuwait has been importing LNG since 2009 and signed deals with Shell and Vitol to supply it during its peak power periods which are from April to October.

According to Jamal Al-Loughani, deputy director of marketing at KPC, Shell and BP have been contracted to supply the Organization of the Petroleum Exporting Countries (OPEC) over the next 5-6 upcoming peak periods. He added that, “Total volume of gas to be delivered between the Shell and BP would be around 2.5 million tonnes per annum and that Kuwait is also set to sign another contract from a third company.”

The rising demand for air-conditioning in the Middle East during their summers coupled with a lack of domestic supply of gas means that Kuwait will need to import more gas each year to keep its power plants up and running.

- Reuters

MYANMAR KUWAITMARCH 2014: BG Wins Gas Exploration Deal APRIL 2014:

Shell, BP Sign Five-Six Year LNG Supply Deal



Singapore government says that because of Singapore’s political neutrality and English speaking workforce it will help it become an Asian hub for LNG trading. Seah Moon Ming, chairman of government trade promotion agency IE Singapore, has said that, “Singapore will become an LNG trading hub within the next five to ten years. Singapore’s location, financial system and common law system will also boost its chances of becoming a regional center.”

Singapore has spent SG$ 1.7 billion (US$ 1.4 billion) on its first LNG terminal. Asia has overtaken Europe as the world’s largest gas importer responsible for 46% of global trade according to the International Energy Agency (IEA). The IEA has cited Singapore as being best placed to become an LNG hub.

The country currently has the only LNG terminal in Asia that can reload cargo from storage. This allows for the storage of gas during low consumption periods and then being able to sell them during peak period seasons. The terminal is South East Asia’s largest receiving facility at a capacity of 6 million metric tonnes per annum.

- Bloomberg

SINGAPOREAPRIL 2014: Singapore Sees LNG Trading Hub Ambition Fulfilled After 2018

In order to boost natural gas consumption in Indonesia, the government is considering introducing a regulation that will require car makers to install CNG

INDONESIAMARCH 2014: Car Makers Will Be Required To Install Gas Converters

converter kits in all of their vehicles.According to Wiratmaja Puja, an

expert staff member for the Energy and Mineral Resources Minister, “There will be incentives for car makers, such as exemption from the luxury good tax so that cars with built in converters can be sold at competitive prices.”

“In the beginning we will prioritize public transportation and perhaps taxis. We hope that the plan works because there are already many stations supplying natural gas

but (motorists) have not been using them,” Wiratmaja added.

Car producers are also in support of this plan and have asked for a 12 to 16 month transition period. The government has been making efforts to reduce gasoline consumption through promoting the use of CNG as an alternative.

Due to aging fields and declining oil production Indonesia has become vulnerable to the volatility in global oil prices. Last years implementation of a subsidized fuel



price hike has increased the price of consumer goods in the domestic consumption driven economy which has led to a slowdown in economic growth.

Fuel prices are currently Rp 6500 (54 US cents) per liter for premium or low-octane gasoline and Rp 5500 (46 US cents) for diesel-fuel, while the price for public

transportation vehicles is set at Rp 3100 per liter. Critics feel that CNG prices should be set higher to attract businesses to the market.

Mohammad Hidayat Said, a director at the Energy and Mineral Resources Ministry’s downstream oil and gas division, has said that, “We, together with business players and the CNG association, are

working to determine a price that is attractive for business players but is also affordable for consumers.” Daniel Purba, vice president of technology at Pertamina, has said that a price of Rp 4000 (33 US cents) would be sufficient to attract business players.

The plan to convert cars to CNG and steer them away from oil fuel consumption dates back to 1988 but progress has been slow due to poor infrastructure and concerns over a sustainable supply.

Currently there are 30 CNG stations and one mobile refuelling unit (MRU) which are mostly concentrated inside Jakarta. Plans are in place to add another 29 gas stations and 8 MRUs by the end of the year.

- The Jakarta Post

T h e E n e r g y and Mineral R e s o u r c e s M i n i s t r y w i l l a l l o w I n d o n e s i a n e l e c t r i c i t y c o m p a n y ,

Perusahaan Listrik Negara (PLN) to import LNG in order to meet the country’s domestic demand.

Hendra Fadly, the director of upstream oil and gas at the ministry, has said that “Indonesia will not gush out natural gas forever” and that importing LNG was consequently indeed very likely. Hendra went on to say that it is a better option to import cheap LNG than to see their own at a higher price.

The price on the spot market in the US is somewhere around the region of US$4 – 5 per mmBtu while Indonesia can sell its supplies as high as US$16 per mmBtu. PLN has told Reuters that they are still significantly short on keeping up with domestic demand.

- Jakarta Globe

INDONESIAAPRIL 2014: PLN To Be Allowed To Import LNG For Power Generation

State owned electricity company PLN has teamed up with three separate Chinese companies; Technology Intern Shijiazhuang Enric Gas Equipment Co. Ltd, Ocean Engineering Design & Research Institute of CIMC and PT Enviromate Technology International Cui Li to develop marine transportation of CNG in Indonesia.

The project will involve the transportation of CNG from Gresik, East Java to Lombok in West Nusa Tenggara via a CNG vessel. This is the first project of its kind in the world.

The engineering, procurement, construction, installation (EPCI) and operation and maintenance (O&M) agreements are worth US$132 million and US$4 million respectively. The consortium is to set up compression facilities for 12 months in Gresik and for 24 months in Lombok.

The Chinese companies will manage the 20 million standard cubic feet (mmscf) capacity CNG vessel for 24 months as well as conducting the operation and maintenance of the facilities for three years.

A gas supply of 5 million mmscfd will be used to generate 90 MW of electricity for four to five hours during peak hours on the Island.

- The Jakarta Post

APRIL 2014: PLN Teams up With Chinese Firms on Marine Projects



Total has signed an LNG cooperation agreement with China National Offshore Oil Corporation (CNOOC), seeking to bolster the partnership between the two companies. Total has already supplied more than 8% of the Chinese market with 5 million tonnes of LNG which has been delivered since 2010. In addition to agreeing on a price review regarding this existing supply, the parties also set up the framework for an additional supply that would double existing amounts.

In the years ahead, the pact is expected to benefit from additional supply sources in Australia, Russia and the United States, complimenting existing Middle East and African sources in order to respond to China’s LNG demand.

According to Yves-Louis Darricarrère, president of Total’s upstream business, Total seeks to further establish itself as not only a world leader in LNG but also secure a strong position in Asia’s growing LNG markets of which China is one of the largest players with 20% annual growth. He added that, “This new agreement allows us to expand our LNG supply and reinforces our cooperation with Chinese companies.”

- Hydrocarbon Processing

CHINAMARCH 2014: Total To Partner On LNG With China’s CNOOC

According to Uzbekneftegaz, National Holding Company, Uzbekistan has increased its natural gas tariffs by 8.9% from 1st April onwards. The price has increased from 151.74 soums to 165.24 soums. The cost of 10m3 of gas used for heating will effectively increase from 1216.95 soums (US$0.53 cents) to 1325.25 soums (US$0.58 cents).

-Trend News

MARCH 2014: Uzbekistan Increases Natural Gas Tariffs for Households

Emissions coming from a sewage treatment plant in Dubai will be turned into biogas to fuel cars on Dubai roads in the near future. The project involves capturing and purifying waste gases from the Al Warsan plant. These gases are currently being flared off and in effect being wasted.

Mr. Fazal Ali Khan, CNG Development manager at Emirates Gas has said that the project should be up and running in a year. He also said that as well as utilising an unused source of energy, the project will provide vehicles with a fuel that is much cleaner than conventional fuels; petrol and diesel.

Mr Khan has stated that, “There are no ifs anymore; it is a question of when.” The final paperwork is being sorted out between Emirates National Oil Company (ENOC) and the Dubai municipality. He has said that the project should be up and running by March 2015.

The plant currently emits about 30000 cm3 a day of which a significant amount is methane. In order to be used as fuel in vehicles the gas needs to undergo purification processes to remove impurities such as hydrogen sulphide and carbon dioxide. After processing, this produces about 15000 cm3 of biogas ready for use in vehicles. It takes about 10 cm3 of biogas to fill a converted biogas vehicle.

The gas will be stored at a mother station at Al Aweer of which from there it will be compressed and distributed to smaller daughter stations across the emirates. Mr Khan has said that, “Although the price of Biogas will be set at a lower rate than petrol, the firm hopes to make a profit from the project.” Emirates gas currently supplies 20000 cm3 of natural gas a day to Dubai’s transport sector.

- The National

As of Apri l 9 th, Uzbekistan cabinet ministers have decided to adopt a new regulation to implement the investment project “Further development i n t h e S h u t a n F i e l d w i t h construct ion of BCS-2“ by drawing capital investments amounting to US$309.5 million which will provide for drilling of 18 development wells, overhaul of 16 wells, expansion of the current system of collection and transportation of natural gas with construction of a booster station to conserve capacity of 9 billion cubic meters of natural gas per year.

-UzReport

UAE

UZBEKISTAN

MARCH 2014: Gas Emissions From Dubai Sewage Plants Could Be Used To Fuel Vehicles

APRIL 2014: Uzbekistan to Increase Natural Gas Production



The sole supplier of natural gas to Malaysia’s non-power sector has obtained government approval to raise the natural gas tariffs in peninsular Malaysia from May 1st. The tariff adjustment comes following a 14.89 % rise in electricity charges which were announced in December as part of fulfilling the government objective to reduce its budget deficit.

According to a stock filing from Gas Malaysia, the price hike is not applicable to LPG or NGVs. The tariff for residential consumers and those consuming less than 600 mmBtu a year will remain unchanged. Other classes of consumers however, with consumption of 601 mmBtu and above the price hike ranges from 18 to 26 %.

It went on to say that, “Gas Malaysia is confident that its long-term profitability will remain healthy, and is poised for better position on the back of pent-up demand, which will result in higher overall gas consumption.” It also added that, “the purchase price of gas that Gas Malaysia procures from Petroliam Nasional Bhd will be adjusted upwards accordingly.”

- Reuters

Tohuku Electric Power Co has mentioned that they have signed a new contract to buy LNG from Malaysia’s LNG II project for 10 years beginning 2016. The existing 20 year contract is due to expire in March 2016 of which Japan was receiving half a million tonnes of LNG per year.

LNG imports to Japan have increased drastically since the Fukushima disaster and utility companies have been looking to diversify energy sources to lower prices. LNG supplies will be delivered to its Hachinohe LNG terminal in northern Japan, which will be operational in April 2015, and to its existing LNG terminal in Mizushima.

- The Star

MALAYSIAAPRIL 2014: Raise In Natural Gas Prices From May 1st

MARCH 2014: Japan’s Tohuku Signs 10 Year LNG Deal

Europe is slowly figuring out measures that will reduce its natural gas imports from Russia by over a quarter by 2020 as a result of the Ukraine crisis, loosening Moscow’s grip over the region’s energy.

Russia’s seizure of Ukraine’s C r i m e a r e g i o n h a s c o o l e d relations between Russia and the EU forcing governments across the bloc to search for ways to reduce demand and find alternative supplies such as coal and renewables.

According to Reuters this

RUSSIAAPRIL 2014: EU Gas Imports From Russia Could Drop A Quarter By 2020

could slash imports from Russia by around 45 bi l l ion cubic metres by 2020 which is an equivalent to US$ 18 billion per year, a quarter of what Russia currently supplies.

P a s t h o p e s o f e a s i n g Moscow’s hold has been dashed, n o t h e l p e d b y G e r m a n y ’ s decision to give up on nuclear power, with Russia’s share of EU supplies rising 10 percentage points to over a third since 2010, and before the current crisis Russia’s gas share in Europe was expected to remain stable

at its present amount.The crisis in Ukraine has

w o k e n u p s l e e p i n g p o l i c y makers across and several e m e r g e n c y m e e t i n g s h a ve been held in the past weeks. European Council President, Herman Van Rompuy has said that, “there is a need to have a new way to do energy business.” At the forefront of these plans are Germany, Italy and Poland, Russia’s biggest gas clients in the EU.

- Reuters



Japan has started releasing monthly average spot prices for LNG in aid of adding transparency to an opaque market amidst the concern of rising fuel costs in the aftermath of the Fukushima disaster.

Takashi Ishizaki, trade ministry official in charge of the initiative has said that, “This is probably the first time that an average spot price has ever been released based on actual transactions.”

Japan bears the weight of taking in about 1/3 of LNG shipments in the world, importing 87.73 million tonnes in a year. Japan has been importing record amounts of LNG to fuel their power stations following the nuclear meltdowns at Fukushima.

“First LNG surveys in March show prices for spot shipments to Japan averaged 18.30 per mmBtu on a delivered ex-ship basis”, said the Trade Ministry. At the end of March however, Asian spot prices were running around 15.50 per mmBtu. The survey looks at samples of fixed prices for LNG sold to power companies and utilities, and excludes spot deals linked to benchmark prices such as the U.S. natural gas Henry Hub index while excluding prices for long-term, mid-term and short-term contracts. The ministry has said that average prices will only be announced each month when there are at least two deals reported that meet the survey criterion. The release of the spot average price is meant to pave the way for an LNG futures contract that the Tokyo Commodities Exchange is looking to launch next year.

-Reuters

The government of Seoul has recently announced that the conversion of 8750 diesel fuelled buses to natural gas fuelled vehicles would be completed by replacing additional 13 this year. Since the project to replace diesel fuelled buses began in 2002, 10376 vehicles, inclusive of city buses, town buses, garbage trucks and tourist buses have been with replaced with natural gas models on a budget of 350 billion won (US$0.34 billion).

Each CNG bus is expected to have a life span of 10 years with savings up to 86 million won ($US86 thousand) when compared to the existing buses. The city government plans to provide priority to receive subsidies for operators upon purchasing CNG hybrid buses and other incentives.

When compared to conventional CNG buses, hybrid buses can reduce the fuel costs by 34.5 % and cut down the fuel cost by 108 million won for 9 years of operation. Carbon emissions are also reduced by 30 %. If 2235 CNG buses in Seoul were replaced with hybrids, it would amount to 240 billion won ($US0.23 billion) worth of savings over 9 years.

This year the Seoul city government plans to supply another 260 more vehicles. Seoul city government’s Eco-friendly Transportation manager, Kang Hui-eun has said, “CNG buses have contributed to improving the air quality in Seoul.” The Seoul government has said that it will continue to promote and provide eco-friendly vehicles.

- Korea Bizwire

The State Oil Company of Azerbaijan (SOCAR) has continued to expand its filling stations network in Georgia. SOCAR currently owns 110 petrol stations and 16 CNG

JAPAN KOREA

GEORGIA

APRIL 2014: Japan starts releasing monthly LNG Spot Prices

APRIL 2014: All Buses In Seoul Will Go Green

APRIL 2014: OCAR Brings Its Filling Station Net In Georgia To 126 objects

stations. This year, during the development of their filling station network preference will be given to CNG stations. 15 CNG stations are planned as compared to only 4 oil filling stations.

The resultant network will reach a total of 35 stations by the end of this year. The total extent of SOCAR filling station network in Georgia will exceed 130 stations.

- ABC.az



Tethys Petroleum Limited has announced the success of well AKK19, the third shallow exploration well of its 2014 programme. Analysis of the data indicates that it has a pay zone is twice as thick as the AKK15 well which tested gas at 7 million cubic feet per day.

The well was drilled to 800 meters and encountered an 8 meter interval of gas bearing Tasaran sand with an average porosity of 30%. The AKK 19 well will now be cased and prepared for production testing later in the year in conjunction with AKK17 and AKK18 to be cost effective with resources.

- Tethys Petroleum Limited

KAZAKHSTANAPRIL 2014: Third Successful Gas Well In Kazakhstan

UPCOMING EVENTJune October

November

September

02 - 04 3rd Biogas Asia Pacific Forum KUALA LUMPUR - MALAYSIA

24 - 25 1st Myanmar CNG For Transport, Industry and Power Forum YANGON - MYANMAR

14 3rd NGV Philippines Forum MANILA - PHILIPPINES

14 - 16 2nd LNG Supply, Transport & Storage Philippines MANILA - PHILIPPINES

20 -- 22 L-NGV Asia Forum 2014 CHONGQING, CHINA

06 - 07 Natural Gas As Transport Fuel in Mining, Plantation & Logistic Sector BALIKPAPAN - INDONESIA

12 -1 3 1st Gas & Transportation Georgia TRIBLISI - GEORGIA

16-19 Small LNG Shipping & Distribution Forum 2014 BALI - INDONESIA

* For more info please visit cngngv.com and lng-world.com


Current infrastructure and technologies favour the use of CNG as the default mechanism for powering NGVs around

the world. However, recently, there is an emergence of LNG fuelled vehicles, especially in long haul applications where the increased capacity and range in using LNG makes up for the increased complexity and costs.

First used in a vehicle in 1939, CNG’s select set of properties have made it stand out among other fuel alternatives. CNG is cleaner, experiences minimal fuel loss during storage, does not require complex pressure/temperature management and system designs can be easily manipulated to suit various applications. Its versatility makes it a rapidly growing fuel choice with over 17.7 million vehicles running on CNG in the world today.

The Issue Of SpaceOne issue does tend to rear its ugly head and has continued to prove to be an old nanny to CNG, nagging at every turn – storage space. This unresolved issue makes it such that NGVs can only travel a set distance before having to stop off and refuel. Increasing the size and/or number of storage tanks means that vehicles will hold less cargo and less cargo means higher transportation costs. This issue is not so prominent when looking at public service vehicles such as taxis and buses which do not need to travel such vast distances without the possibility of a refill. It is however, a real problem when looking at heavy transport vehicles used in exploration and mining sites.

The most viable solution to the problem at this time has been to look into LNG as the fuel for long haul transportation or applications

in remote sites with limited refilling capabilities. LNG is basically a more condensed version of CNG. The gas is brought down to extremely low temperatures of about -162°C. This reduces the storage space that is needed by almost half that of CNG and it can be stored in dual insulated tanks at densities similar to diesel fuel. Robert Transport’s Engineering Manager, Yves Maurais explained at Canada’s Natural Gas Vehicle Conference last year that there are two types of LNG; warm and cold. When using cold LNG, it is contained in liquid form and then pumped out of the tank, warmed up, and then turned to vapour, whereas warm LNG is doesn’t require a pump to get it out. Most long haul vehicles use the cold version as warm LNG does not hold particularly well in storage. Currently CNG vehicles only can accommodate reasonably small quantities of fuel allowing

Could LNG Be The NGV Fuel Of The Future?

FEATURE ARTICLE


FEATURE ARTICLE

them 240 – 480 kilometres of travel before having to refuel whereas existing LNG heavy trucks are able to travel up to 640 kilometres on a full tank.

LNG Truck Use On The RiseThough still an emerging and relatively immature market, LNG is slowly becoming the preferred choice for large conglomerates because it saves them operating costs and helps with their ability to adhere to increasing clean energy initiatives set by host nations. Regional bodies such as the European Commission are tying up with multinational companies like Shell. Plans are in the works to set up a network of LNG stations spanning 1400 kilometres in western Canada with LNG stations spaced out about every 400 kilometres along major tucking routes.

With LNG transportation picking up, Europe’s gas business is undergoing rapid changes to accommodate incoming demand. Finnish natural gas importer Gasum is set to absorb the larger half of Norweigian Skangass’ distribution operations from Lyse Corporation. Gasum’s Excecutive Vice President, Johanna Lamminen has said that, “The acquisition enables the creation of sufficient market coverage and distribution infrastructure in Nordic countries, giving Gasum the possibility to offer a much more competitive product for end users in the maritime industry and heavy transport sectors.” The acquisition is also expected to add to the delivery reliability of LNG to Gasum terminals as well as speeding up development of LNG infrastructure in Finland, Norway and Sweden.

Spanish natural gas utilities company, Gas Natural Fenosa has just recently opened an NGV refuelling station in Alovera, Guadalaraja along the Autovia A-2, which caters to both CNG and LNG refuelling. This is part of Gas Natural Fenosa’s master plan to create a network of natural gas refuelling points along Spain’s main transport routes. The service station

is the 17th LNG supply station of its kind and has an annual refuelling capacity of 12,000 LNG trucks.

Closer to home, Thailand is also increasingly looking at LNG as a possible transportation fuel. In Thailand, the Department for Energy Business is looking to grant licenses for LNG retail as an alternative for motorists who have to deal with long waiting times at CNG stations. They intend to emulate the success of LNG use in Japan, South Korea and China who have successfully implemented LNG as an alternative transportation fuel. Siam Gas and Shell are reportedly in talks with the Department for Energy Business about the retail of LNG.

One bright spark that has taken the industry by surprise was the sheer scale and depth of the development of LNG fleets in China. Embracing the new technology, China has the

world’s largest fleet of LNG buses and trucks and has applied the technology to river transportation on tugboats and barges too. Currently China has over 194,000 LNG vehicles and that number is expected to grow to 694,000 heavy duty LNG trucks by 2020. With over 5 million heavy duty trucks plying the roads, the potential for growth is enormous with huge conversion possibilities. The government intends to be the world leader in LNG fuelled vehicle technology.

Available TechnologyChina has even taken their LNG use to the seas and have been using LNG to fuel their LNG transport carriers. Originally making inferior ships to the South Koreans, China have surpassed the pioneers. Chinese research and ingenuity has led to the development of ship engines that are able to run on a combination


LNG buses can operate in the same way as diesel buses in that refuelling time is much closer to that of diesel refuelling and they are of the same height and can serve in all lines of the city unrestricted. LNG buses also have smaller and lighter fuel tanks located lower on the bus which gives much better handling and can be driven without the use of extra stabilizers. Refuelling is also much easier, it requires less investment and operational costs are only 10% of what it costs to run a CNG station. LNG pumps are also a much simpler and more reliable device compared to the CNG compressor. (Figure 1).

Once again, China is keeping the pace at every turn. In conforming to the newly introduced national policy of a strict PM 2.5 level control in China, Yongzhou public transport company is striving to take up 400 LNG Buses forthcoming Foton AUV’s announcement of their Green Bus Programme. Foton AUV intends to sell 1000 LNG buses this year. Southern Guangdong is also seeking to replace their LPG buses with LNG substitutes. Hopefully China will be able to set the trend for LNG buses in Asia as Poland has for Europe.

Different RolesThe development of LNG as a viable alternative fuel option is good news for the NGV market as it fills in the range gap that CNG will not be able to. Buses, Trucks and Long-Haul Logistics see LNG as the best alternative fuel for their needs and its development will complement CNG to make natural gas the fuel of choice. However, a lot more will still need to be done as it is still a growing market. Director of Fuel for C.R. England, a US trucking company, Allen Nielsen says that it is really up to the infrastructure availability, the decision of which type of truck to buy really comes down to available filling stations, if LNG is the only game in town then he would just have to go with that.

FEATURE ARTICLE

NTM

Figure 1: Adapted from Solbus LNG Buses – Economical & Ecological. Michal Slizak. September 2012

of fuels, including reliquefied LNG that is released during LNG storage. The engines can also be configured to use virtually any proportions of different fuel.

More and more companies are realising that LNG has its place in the NGV market and are increasingly developing better technology to ease the conversion from diesel to LNG. There are a number of options for diesel truck engine conversions available at the moment. They can be separated into 3 types; conversion to spark engine operation, conversion to dual fuel operation via intake injection of natural gas and high pressure direct injection (HPDI).

HPDI has been pioneered by Westport Innovations together with Cummins Inc. According

to the Pennsylvania Turnpike commission, HPDI is the most energy efficient solution for natural gas LNG engines. HPDI has recently been touted as an engine option on new trucks but has not yet been made available as an aftermarket retrofit kit for existing trucks. The engine boasts a 95% replacement of diesel fuel with LNG while being able to maintain equal horsepower, torque and efficiency characteristics of a similar diesel fuelled engine.

More Than Just For Long Haul?LNG has its trucking applications stemming from use in commercial buses. Solbus, a family owned polish bus manufacturer has been using LNG buses since 2008. Polish operators have expressed their preference for LNG use over CNG. By Ryan Pasupathy


SPECIAL REPORT

B eing a country whose history has been wrought with much violence and chaos, Myanmar

is steadily marching towards a brighter future. Its tumultuous past has in effect, resulted in stymied social and economic growth. In the last few years however, the country has made some very positive steps towards a more democratic political system. With the opening of its doors to foreign investment, in light of the numerous US and EU sanctions that have been suspended, the Union of Burma stands at the crossroads

of its future. According to EIA, the country has over 10 trillion cubic feet of natural gas reserves. Current estimates are that Myanmar’s economy is set to grow by 6.8% this year. Increasing economic growth is expected to bring along with it increasing demands for electricity and alternative fuels. This has opened the doors for a myriad of investment opportunities. The decision on how to best ride the wave of first world development is at hand. The nation’s large natural gas reserves have caught the attention of many western multi-nationals and how they handle being in the spotlight will determine the extent of Myanmar’s future prosperity.

Politics and PoliciesMyanmar’s Ministry of Energy is currently the governing body overseeing the Energy Planning Department (EPD). The EPD is then broken down in three separate arms which handle all energy related issues; Myanma Oil and Gas Enterprise (MOGE), Myanma Petrochemical Enterprise (MPE) and Myanma Petroleum Products Enterprise (MPPE). The government’s

The Last Burgeoning Gas Jewel of the East – MYANMAR


SPECIAL REPORT

current energy policy is aimed at sustainable energy development, wider use of renewable energy, energy efficiency and conservation, use of alternative fuels and fulfilling domestic energy requirements as a priority.

One of the directives that has come about through this policy is the CNG Conversion Programme. The programme seeks to substitute liquid fuels with natural gas in industrial and transport sectors wherever possible. The programme began in 1986 and was reactivated in 2004. Since then, the project has seen 45 CNG filling stations being set up and more than 27600 passenger cars being converted to NGVs. The government has also recently made the process of acquiring licenses to convert vehicles much easier, allowing for quicker grants. Strangely enough though, the government has decided to raise CNG prices, which has caused quite a stir with local CNG users. The government has mentioned that this price hike is due to sustainability issues. They feel that it is necessary to ensure that the resources that they control are consumed in an economical manner. The locals feel that as a country with ample reserves, the government should

not be increasing their CNG prices and should be more supportive of local consumers.

The local demand for CNG is on a steady rise and is expected to hit 900 million cubic feet per day. Currently this number is around 471 million cubic feet per day and only 50% of these demands have been met. This doesn’t seem to tally with the country’s production figures of 1.4 billion cubic feet per day though. Shouldn’t there be an abundant supply to meet the countries domestic demand? Well, there should be, however due to past commitments of its military regime, close to 75% of locally produced gas is exported to Thailand as part of a signed agreement between the two countries. Renegotiation of this contract could cause some political unrest between the two countries though and it would also not encourage other foreign investors seeking to enter the Myanmarese gas market.

It remains to be seen if Myanmar will truly be able to clean up its act and present to the world a much more transparent government. If the country is genuinely ready for change, they must ensure that transparency is a key issue to deal with in their reform. New systems will have to be developed to allow for monitoring. It will be an important step to help garner further attention from foreign investors.

Two Thousand Kilometres of PipelineMyanmar has also recently finished setting up gas pipelines to Chinas Yunnan province. The gas pipeline is set to have a capacity of 1.2 billion cubic feet per day. The pipeline stretches some 2520 kilometres and is set to deliver 423 billion cubic feet of natural gas per year. The pipeline begins at Kyaukpyu on Myanmar’s western coast, enters China at Ruili in Yunnan province and ends at Guigang. This seems to only put pressure on the countries already sky high energy demands. It does however, demonstrate that the government is keen on foreign


gas power plants in Hlaingtharyar Industrial Zone and in Thilawa Industrial Zone. They have also made plans with South Korea to set up another natural gas power plant in Thilawa Economic Zone.

Exploration Opportunities Industry giants such as Woodside, ExxonMobil, Shell, ConocoPhillips, BG Group, ENI and Chevron have recently participated in the countries first ever offshore licensing bidding round for oil and gas blocks. All previous licensing deals have been far from transparent and were settled behind closed doors. The licensing bidding round offered 11 shallow-water and 19 deep-water blocks. Shallow water blocks with successful bids are required to find a local partner whereas successful deep-water block bids are expected to invest on their own. Currently there are a total of 53 onshore blocks 51 offshore blocks. Woodside’s finance director, T.K. Ananth Kumar has told Bloomberg that he feels that the potential gas reserves hold the possibility of being much more plentiful than previously thought and that it is essential that Woodside is present in one of the last Asian countries to open up.

Despite a few hiccups The sheer amount of natural gas resources that the country is sitting on has them well prepared to face the future. There may be a few unresolved issues that remain but with so many opportunities surfacing in Myanmar, it is quite likely that there will be a lot of helping hands offering solutions to their existing problems. There will always be assistance to be found when there is money to be made. Issues such as poor power supply and questionable authority will be a nothing but a faint memory in Myanmar’s distant past. To keep your eye on the prize is to keep your eye on Myanmar.

SPECIAL REPORT

NTM

investment and is interested in working with other countries on infrastructure development. The government has plans to use this pipeline to also supply local urban areas and industrial plants with cheap fuel before crossing into China.

Hopefully the development of more pipelines will lead to the injection of new technology and practices. There are a plethora of opportunities here for growth in this sector as much of the initial framework is still in the very early stages. Much of the technology available for gas distribution, storage and vehicle conversions is relatively ancient. The technology that is currently available and what exists in Myanmar is aeons apart. This presents an opening for CNG to meet immediate natural gas transportation needs to poorly developed locations whilst pipeline infrastructure is being further developed.

A Nation Kept in the DarkElectricity is highly subsidised

in Myanmar and is extremely unreliable. As Myanmar relies quite heavily on hydroelectric power for electricity generation during the dry season, some households only experience one hour of access to electricity a day. Some industrial zones too, operate on just five hours of access to electricity a day. There has been little incentive to pour money into this area as currently the government provides electricity to the public as a service that incurs a net loss. This low cost of gas makes it highly unprofitable to set up further infrastructure. With reports that up to 70% of the country is still not on the electricity grid it gives some cause for concern for the country’s political agenda.

The poor supply of such a basic amenity has left a gaping chasm in Myanmar’s road to 21st century stardom, which is in dire need of a practical solution. Myanmar has begun to outsource for assistance on this matter. They have completed plans to work with Japan to set up two natural By Ryan Pasupathy


LNG Outlook in Southeast AsiaAs Southeast Asian countries begin relying on LNG to play a larger role in their energy sources, the race is on and the rest of the world watches in wonder in anticipation of the results.

SPECIAL REPORT



W here is the LNG market headed in Southeast Asia? This green energy

alternative is gaining more and more interest with each passing day. The outlook tends to vary from country to country but almost all of Southeast Asia has their hands in the LNG cookie jar in one way or another. With the regions domestic gas production in decline, the need for imports has been on a steady rise. Capacity is expected to grow exponentially until 2017 to around 51 mmtpa. This potential demand has garnered a significant amount of attention from pricing agencies looking to offer a region-specific benchmark with the potential to drive up use of LNG swaps. This

is in aim of g i v i n g

newer markets

access to s h o r t e r

term supply and and also to

the gas spot market. The proverbial cookie jar in

this instance is actually a number of supply sources, which are out of Asia. Australia and Qatar have been at the forefront of supplying gas to the South East Asian market. Australia is set to become the world’s largest producer of

LNG and is more than likely to continue to match its supply with the ever increasing demand. More localized sources include Pakistan, Malaysia, Indonesia and Myanmar.

A c c o r d i n g t o W o o d Mackenzie, combined Southeast Asian markets will account for a third of Southeast Asian LNG demand growth by 2025, growing at a rate of 45 mtpa. Imports into the Southeast Asian markets are expected to grow by almost 40%, from 5.5 mt in 2013 to 7.5 mt in 2014. This implies that there is going to be even more need for LNG supply. Even though many Southeast Asian countries already have numerous LNG deals with existing suppliers, the issue of energy security will create the desire for countries to diversify their LNG sources. Besides importing more gas from within the region, Russia, East Africa and the US are some possible supply options.

INDONESIAIndonesia is a net gas exporter but also has LNG facilities to receive imports. The country’s gas trade mainly exists within the archipelago itself but they do import if they can get a good price. Indonesia currently produces an approximately 19 mmtpa. The country’s own gas reserves are having difficulty in keeping up with domestic demand. Demand is expected to rise at an estimated 7% per year and reach 8.5 million barrels of oil equivalent per day by 2025. This poses some problems for Indonesia as production from Arun and Bontang is expected to fall by 17.3% this year. Pertamina, the country’s state owned energy company has recently signed a deal with American company Cheniere Energy Inc for an annual import of 800 thousand tonnes a year from 2018 onwards.

Indonesia currently has three segments of gas pipeline;

A r u n i n N a n g g r o e A c e h Darussalam, Bontang in East Kalimantan and Tangguh in Papwwua. Until recently these pipelines have been somewhat underused. Construction has begun on a fourth gas pipeline, Donggi Senoro, in the hopes of reviving the gas distribution in Semarang. There are also plans in place to build another gas pipeline to connect Belawan Point in North Sumtera to the Arun Regasification Plant in Aceh. Existing projects have been undermined by disputes over whether the gas should be exported or used for domestically. The country could use a lot more pipeline infrastructure as it is the only problem that is really preventing the country from fully reaping the rewards of its abundant natural gas reserves.

There have been reports recently that the government is going to allow their local electricity company to begin importing LNG for electricity generation.

MALAYSIAMalaysia, like Indonesia is a gas exporter that has LNG facilities to receive imports. Malaysia is the world’s second largest exporter of LNG. The country currently has three existing LNG export terminals in Sarawak. The plants have a combined liquefaction capacity of 24 mmtpa. The country has just one LNG import facility which is located in Malacca. The country has received imports from Norway, Nigeria and Algeria. At the moment Malaysia has three running import deals; with GDF Suez, Qatargas and Statoil which in total, amount to more than 5 mmtpa.

The country’s LNG imports are expected to increase in the near future and there are plans to receive imports from Australia’s Gladstone LNG project next year. A project is currently in the works to set up the country’s second regasification terminal at Pengerang in Johor. Petronas, the

SPECIAL REPORT



country’s state owned oil and gas company, has recently granted Technip-Daewoo Consortium a contract to develop a floating LNG facility which is expected to be operational sometime next year. The facility is expected to have a capacity of 1.2 mmtpa.

PHILIPPINESPhilippines is relatively new on the LNG scene and has plans to use LNG for electricity generat ion. As part of the Philippine Energy Plan from 2009, plans to increase electricity generation from 2700 MW to an ambitious 17750 MW by 2030 MW are underway. With the little reserves that the country has, it is thought that these gas fired plants will be relying heavily on imported LNG.

First Gen has recently set up the first of three power plants in Santa Rita, Batangas. It is expected to be up and running by 2016. The power plants plan to use LNG from their local Malampaya offshore project with the hopes of securing foreign import deals to fuel them in the future. Total has plans to supply LNG to the Philippines beginning 2016. Total has said that they will not be setting up a terminal themselves but will be looking to partner with local companies.

SINGAPORELNG currently makes up 20% of Singapore’s total natural gas demand. The country is looking to increase this number in light of the completion of their first LNG terminal earlier this year. The terminal is located at Jurong Island and has a capacity of 6 million mmtpa. A second terminal location is currently being searched for. The plan is to become an Asian LNG trading hub within the next ten years.

All gas previously imported has been through pipelines from Malaysia and Indonesia. The terminal will allow Singapore to start receiving LNG from

vessels coming from as far away as Trinidad and Tobago. The establishment of the terminal has also seen more than 20 LNG related foreign companies setting up office in the country. Singapore is also reportedly looking to sign contracts with a few more LNG importers to add to their current 3 mmtpa franchise with BG Group.

THAILANDThailand set up its first LNG deep-water port terminal in Map Ta Phut, Rayong, southeast of Bangkok in 2011 and began receiving shipments from Qatar. The terminal has a capacity of 5 mmtpa. The plant has however been under-used, operating at only 1/5th of its full capacity. PTT has signed a long-term deal with Qatargas to supply them with 2 mmtpa of LNG starting next year.

As Myanmar struggles to deal with their own ever increasing energy demands there is worry that Myanmar might stop supply. To deal with this problem, Thailand has recently settled a deal with IHI to construct another receiving terminal through a consortium with Marubeni and South Korea’s Posco Engineering and construction. This facility will be built in Rayong as well. This new terminal will have the capacity for another 5 mmtpa. There have also been reports of the government formulating some plans to secure a long term deal with Shell.

VIETNAMThings are really heating up in the LNG scene in Vietnam. The government has been expressing its interest since 2010. Vietnam is slowly paving its way for an LNG filled future. PV gas are about to begin construction on the Thi Vai LNG terminal in the southern province of Ba Ria, Vung Tau. The company is expected to receive its first LNG shipment by 2016. The

terminal is set to have a capacity of 1 mmtpa with potential to be increased to 2 mmtpa later on.

PV Gas is also expected to build a second 1.8 mmtpa terminal by 2018 and be able to double this within a few years of operation. The terminal would be built in Son My, in the central province of Binh Thuan. There are also further plans that will entail two phases of expansion; to a capacity of 6 mmtpa by 2023 and 9.6 mmtpa by 2030.

BRUNEIBrunei was the real LNG pioneer in the region. Brunei has owned and operated an LNG plant for over 40 years, having begun operations in 1973 following its discovery of large gas reserves ten years earlier. The LNG plant had an original capacity of 3.4 mmtpa and has since been upgraded to 7.5 mmtpa. The project was a joint venture between the local government, Shell and Mitsubishi Corp. The task for Brunei has since been to continually upgrade their facility, keeping it outfitted with the latest technologies and safety protocol. The country currently exports LNG to Japan and Korea on long term deals. The government has recently awarded Technip, a contract to modify the onshore facilities as well as the construct a new onshore pipeline at the Brunei LNG plant.

With the exception of East Timor and Cambodia, the Southeast Asian LNG market is all the rage at the moment. With so much potential opportunity in existing and emerging markets, it is not hard to understand why Southeast Asia is looking to LNG as a solution for its energy problems. The needs in each country differ tremendously, yet in one way or another, the entire region is seeing to it that they don’t get caught with their hands not in this cookie jar.

NTM

SPECIAL REPORT

By Ryan Pasupathy


FEATURE ARTICLE

M alaysian palm oil mills have p u t t o g e t h e r a n o t h e r R M 5 0 0 m i l l i o n

(US$ 150 million) this year to a total of RM 2 billion (US$ 600 million) to be invested into biogas projects. The application period has been extended for another three years, till 31 December 2015. According to Malaysia’s Green Technology Financing Scheme (GTFS), the maximum financing amount offered to green technology producers and users is RM 50 million for tenures up to 15 years and RM 10 million (US$ 3 million) for tenures up to 10 years per company.

The countries vast palm oil fields span some 5.23 million hectares and generate a whopping RM 850 million (US$ 255 million) per year. The industry has been steadily growing and looks like it is only going to continue to do so. Hidden within this economic powerhouse is an untapped biogas treasure trove that holds the potential for millions more in revenue.

The large amount of waste products that are generated from

MILLIONS IN INVESTMENTS

CHASING BILLIONS IN

RETURN: NOT FINANCE ON WALL STREET, BUT

BIOGAS IN ASIA.


the processing and harvesting of palm oil remains largely untapped. By-products such as palm oil mill effluent (POME), empty fruit bunches (EFB), palm kernel shells (PKS) and mesocarp fiber from the processing of palm oil from fresh fruit bunches (FFB) are produced in copious amounts. Only a fraction of these products however, are currently being used to generate Biogas.

Upcoming RegulationsIt is going to be a requirement by 2018 that all palm oil mills in Malaysia would need to be equipped with a methane capturing facility. Of the 426 existing palm oil mills, only 55 mills have completed biogas plants in their mills while

16 more are under construction. Over 80% of the mills still have not come up with concrete plans for methane capture and this represents a tremendous market for the construction, installation, and operation of anaerobic digesters and equipment.

Of course, with this regulation coming into place, many mills are also wondering what to do with the biogas generated.

Electricity GenerationA recent study conducted by Monash University estimated that a net profit of RM 3.8 million (US$ 1.14 million) per year can be obtained from a palm oil mill with a processing capacity of 60 tonnes per hour for electricity generation

using biogas produced from POME treatment. To date, two biogas plants are already connected to the grid with a total capacity of 3.25 MW located in Johor. However, according to the Malaysian Biotechnology Corporation, only 30% of the palm oil mills in Malaysia are within the profitable 10 km radius from the grid. SEDA, the Malaysian authorities have recognized this and has amended their Feed-In-Tariff systems to make power generation from biogas more profitable, and thus encourage greater connectivity.

As of 2014, the revised FiT rates are:On top of power generation, Malaysia is also increasingly recognizing that bio-methane generated from biogas is a valuable resource that can be tapped. (Table 1)

BioCNGSime Darby, Malaysia’s largest palm oil producer estimates that at least 80 mills have the scale and the volume to be made into profitable bioCNG plants. With subsidies for industrial natural gas being scaled back and the rising demand for natural gas in Asia, bioCNG produced from the mills can be transported profitably to centers where there is a demand for natural gas. According to Sime Darby’s estimates, the potential for bioCNG exceeds 25 MMSCFD and can generate RM 290 million per year at today’s gas prices.

Further IncentivesFurthermore, the government sees this to as an opportunity to meet their assigned targets set in their renewable energy and fuel diversification policies. In addition to GTFS, the Malaysian government also offers further incentives that include bearing 2% of the total interest rate of the loan approved as well as providing a guarantee of 60% on the financing amount, with the remaining 40% of the financing

BIOGAS PLANT.Table 1: FiT for Biogas Plants in Malaysia Sustainable Energy and Development Authority Malaysia (SEDA)

FEATURE ARTICLE

Figure 1: Renewable and Sustainable Energy Reviews 26 (2013) 717-726


risk to be taken on by participating financial institutions.

Bionexus StatusAs of 2005 the Malaysian government has had a dedicated biotechnology agency tasked to help facilitate the execution of its National Biotechnology Policy. The agency, BiotechCorp acts as the chief driver for biotechnology development by providing strategic direction, operational assistance for businesses and developing specialized infrastructure. They operate under the purview of Ministry of Science, Technology and Innovation (MOSTI) and are the one-stop center for all biotech related operation enquiries within the country including biomass and biogas projects.

The agency offers the possibility for companies to attain ‘Bionexus Status’, which will grant them the following in order to assist growth:

• 100% tax exemption from profit

for 10 years• 20% tax exemption for the

following 10 years• Eligibility to receive assistance

for international accreditation and standards

• Eligibility for competitive incentives and other assistance

• Freedom of ownership• Freedom to source funds

globally• Unrestricted employment of

workers• A strong intellectual property

regime• Access and availability to a wide

variety of shared facilities and services.

In addition to government support, there are a number of companies such as Sime Darby and Malaysian Biomass Industries Confederation (MBIC) that are offering partnerships for investors interested in the development, operation and technology of biogas and biomass plants.

Annual MeetingThere is annual meeting that is held in Malaysia from the 2nd

to the 4th of June 2014 at JW Marriott Kuala Lumpur. Each year the meeting aims to inform top industry executives on the changing regulations in the region as well as to act as the meeting place for the development of business partnerships and networks. As a platform to bring worldwide attention to Malaysia’s master plan for biogas development, it also seeks to provide commercial opportunities for suppliers to showcase their latest products and industry solutions. The forum is organized by the International Clean Energy and Sustainability Network (ICESN) in conjunction with BiotechCorp and major sponsors such as Air Liquide, BTS Biogas, Caterpillar and Xebec.

NTM

FEATURE ARTICLE

By Vincent Choy


FEATURE ARTICLE

W hile CNG continues to gain popularity, the question a lot of people are asking themselves is, is this stuff safe? Compressed gas seems to cause all sorts of obscure worries and doubts in the minds of the masses. Perhaps they’ve seen one too many Final Destination movies or read the backs of too many aerosol cans. In reality though, CNG is just as safe, if not safer than traditional fuels.

Physical PropertiesThe gas itself above all, is non-toxic, non-corrosive, odourless and has no risk of contaminating the environment in the event of a leak. The gas actually has an odorant added to it to give it a distinctive smell so that a leak would be easily detected. The odour makes the gas detectable at one fifth of the gas’ lower flammability limit. The gas also has a very peculiar range of flammability; it does not burn in concentrations of 5% or above 15% when mixed with air. Regular fuel not only burns and ignites at much lower concentrations and temperatures but it also takes much less energy to burn. The gas is lighter than air and will simply dissipate into the air after being released. Unlike conventional fuels there is

no pooling or puddling of the fuel on the ground.

Built Like a TankCNG is also stored in extremely durable tanks on board the vehicle. CNG tanks come in four different classes; Type 1 – 4. All types are of equivalent safety as they are required to meet the same standards; they only differ in material and weight. All are built to withstand severe trauma and temperatures. Tanks are normally equipped with an automatic relieve valves or pressure relief devices (PRD) which are pressure and temperature sensitive. The valve will release gas when triggered dropping the pressure within the tank allowing the gas to safely discharge from the container into the air well before the

CNG is Said To Be ‘Safe’, But How Safe is ‘Safe’ Really?


FEATURE ARTICLE

burst pressure. PRDs are fitted in such a way that they are not thermally shielded so they can appropriately respond to changes in temperature. The ports are also directed in such a manner that they do not cause damage to other nearby vehicles and pedestrians. In the event of a fire, if the gas is released into the open flame, jets of fire shoot out from the tanks much like the high flame on a Bunsen burner releasing pressure at a controlled rate, preventing the tank from exploding.

These tanks have been carefully designed to endure intense stresses that they would not experience within their lifetimes allowing them to survive just about anything you can throw at them. They are designed to sustain being fully fuelled six times a day, 365 days a year without rupturing. The cylinders undergo a battery of seemingly extreme tests to ensure that they are safe for use. These tests include a bonfire test, a drop test, hydraulic and low pressure tests, a gas permeation test, an environmental exposure test and even a 30 calibre gunfire test!

CNG engines are equipped with automatic engine

fire suppression systems. These are often used in conjunction with portable fire extinguishers stored aboard the vehicle. Certain engine exhaust systems are covered with a high temperature insulating blanket. These blankets also serve to protect operators from the heat during maintenance periods when working nearby.

NGVs are designed to be robust enough to endure regular road accidents. They undergo the same crash tests and are required to meet the same safety motor vehicle standards. This does not imply that NGVs are accident-proof. Fire outbreaks during NGV related accidents have been caused by gas leaks from damaged pipe connections or by usage of non-CNG cylinders and unauthorised electrical system modifications.

High StandardsEurope currently has safety standards in place for CNG components and systems installed in NGVs. These standards have been specified in UNECE (United Nations Economic Commission for Europe) Regulation 110. Most manufacturers supplying to world markets tend to get UNECE certification in order to be more readily accepted globally.

Many CNG related accidents are due to improper care and maintenance. In addition to UNECE standards most fleets and refuelling stations have their own internal standards that are closely kept to at all stages of CNG use. These entail monthly and yearly inspections on NGVs and also throughout all refuelling and storage facilities. The guidelines normally include specifications for cylinder mounting, piping, tube supports and tube contacts. Local regulatory bodies are normally an arm of government backed agencies.

ConclusionThrough careful handling and use, CNG will always be a safer and cleaner option to conventional fuel sources. CNG Safety technology is now in place and it is only getting better with each passing day. The notion that this fuel is unsafe needs to be expunged and henceforth rewritten on the psyche of the masses as what it truly is.

NTM By Ryan Pasupathy


FEATURE ARTICLE

D eteriorating air quality e s p e c i a l l y i n t h e urban environment over the last decade

has prompted a mass movement towards natural gas vehicles all over Asia. Countries including Thailand, Pakistan, India, China and Bangladesh have all embraced CNG as an alternative fuel, with increasing movements from the rest of the countries in Asia. Questions about energy security and the rising costs of petroleum further accelerated the adoption of CNG-NGVs.

Globally, there are now over 11.3 million natural gas vehicles with over 5.82 million of them in the Asia

Pacific alone. The number of natural gas vehicles in the Asia Pacific grew at an average of 51% over the last 9 years and the trend is expected to continue until 2020.

However, even with the mass adoption of CNG as a transportation fuel, emission levels from transportation still continue to climb in Asia. In a report by the World Bank, economic development and population growth by themselves were found to be the culprit of the rapid rise of carbon dioxide emissions in China, India, Indonesia, South Korea, Malaysia, Pakistan, Sri Lanka and Thailand. Road transport had the lion’s share of carbon emissions

in 2005, claiming 91.9 percent. Water transport followed with 4.8 percent. Air and rail transport accounted for 2.5 percent and 0.8 percent of carbon dioxide emissions respectively.

The initial emission gains achieved through the conversion of natural gas vehicles has

BIO-METHANE FOR TRANSPORTATION


FEATURE ARTICLE

been offset through an increase in the number of vehicles, the rapid growth of population and economic development.

Could the Solution be Biogas?Biogas typically refers to a gas produced by the biological breakdown of organic matter in the absence of oxygen. Biogas originates from biogenic material and is a type of bio-fuel.

One type of biogas is produced by anaerobic d igest ion or fermentation of biodegradable materials such as biomass, manure, sewage, municipal waste, green waste, plant material and energy crops. This type of biogas consists primarily of methane and carbon dioxide. The other principal type of biogas is wood gas which is created by gasification of wood or other biomass. This type of biogas is comprised primarily of nitrogen, hydrogen, and carbon monoxide, with trace amounts of methane.

The gases methane, hydrogen and carbon monoxide can be combusted or oxidized (in the presence of) oxygen. Air contains 21% oxygen. This energy release allows biogas to be used as a fuel. Biogas can be compressed, much like natural gas, and used to power motor vehicles and in the UK for example is estimated to have the potential to replace around 17% of vehicle fuel. Biogas is a renewable fuel, so it qualifies for renewable

energy subsidies in some parts of the world.

The utilization of biogas for transportation in Europe has produced significant results and tests showed a reduction in emissions of 21.5%. (Base-case scenario investigated included: utilization of electricity from the grid; over-sizing heated digestion tanks to hold digestate in the winter period; vehicular efficiency 82% of that of a diesel vehicle; and no allowance for carbon sequestration.) The system can be further improved; using electricity from wind, improving digester configuration, and by using a vehicle optimized for gaseous fuel, produces reduction of 54%. Furthermore allowing for 0.6 t carbon sequestration per hectare per annum, the reduction increased to 75%.

BioMethane Compared to Other FuelsThe production of biogas and its adoption for transportation will produce much savings in carbon emissions if implemented well across the countries that are already heavily reliant on NGVs.

The utilisation of biogas is being led by Europe, with the European Parliament (EP) on March 12, 2008, voting in favour of a proposal for the adoption of a directive on biogas. The European Commission was asked to prepare a proposal supporting injection of

bio-methane into the natural gas grid, and suggested that ’green gas’ should enjoy similar benefits as those applicable for ’green electricity’. The EP also stressed the need for R & D funding, and highlighted that bio-methane could be used not only for heat and power generation, but also as a fuel for use in the transport sector.

Countr ies with ongoing commercial projects for the supply of bio-methane as a vehicle fuel includes, Korea, China, India, Pakistan, Spain, France, Switzerland, Austria, Germany, United Kingdom, The Netherlands, Sweden, Norway, Iceland, Brazil and USA.

ThailandThailand was introduced to the biogas technology in 1950 by Kasetsart University (KU), which continues to be a cooperating agency even today. The legal and financial support frameworks to increase renewable energy utilization was launched in 1992 aiming for the country to depend less on imported energy, which at present accounted for 7% of GDP.

Biogas advisory unit (BAU) at Chiang Mai University, with a grant supported by the government under The National Energy Policy Office (NEPO), launched the National Biogas Dissemination Program for the medium and large scale livestock farms in October 1995. A target of 50,000 m3 biogas system within 6 years, starting from 3,000 and 7,000 m3 in the first and the second year, with another 10,000 m3 annually in the following years is the goal of the programme.

For the immediate future, a 70,000 m3 dissemination programme is planned to be implemented with support from the National Energy Policy Office (NEPO) in Thailand. The Energy Conservation Fund (through the Renewable Energy Programme) aims to provide financial incentives, as well as awareness campaigns, in order to promote the generation of methane gas from agricultural wastes.


VietnamBiogas has been applied in Vietnam since 1960, but has never taken off on any large scale. Currently, Vietnam is realising less than five percent of their agricultural biogas potential. Cattle and poultry discharge about 73 million tonnes of solid waste annually in Vietnam and it is estimated that every tonne of waste creates 0.24 tonnes of carbon dioxide emissions. Treating the waste will not only solve environmental problems but also create a large source of energy.

With the potential for creating 10 billion cubic metres of biogas from agriculture annually, Vietnam needs to develop the policies that favour the production of biogas. However, many challenges exist to the development of bio-gas on a large scale. One of the first things to address is people’s insufficient understanding of the environment and energy. Biogas R&D (research and development) activities also remain unsystematic and unplanned. There is also a need for the government to put in place laws and bylaws on renewable energy, which are a legal framework for biogas development. Particularly, the government needs to consider the policies on finance, price subsidization and preferential loans.

IndiaSince the introduction of bio-gas to India in the 1930s, over 2.5 million

biogas plants have been built in India, with the potential to deploy over 10 million more.

T h e g o v e r n m e n t v i e w s biogas technology as a vehicle to reduce rural poverty, and as a tool in part of a wider drive for rural development. Alternative energy options are promoted by The Indian Renewable Energy Development Agency (IREDA), which operates under the Ministry of Non-Conventional Energy Sources (MNES). To promote and disseminate information about biogas technology specifically, the government has organised the National Project on Biogas Development nation-wide, and several NGO’s have been active in implementing the programme on the ground. Active dissemination is also undertaken by the Khadi and Village Industries Commission (KVIC), in the context of rural development from small-scale income generating opportunities.

Biogas as an Alternative Transportation FuelThe technology exists today for the mass adoption of biogas as an alternative transportation fuel and we must continue to push for the implementation of

programmes to increase the supply of bio-gas in Asia. The burning of fossil natural gas, while cleaner as compared to petroleum, still places considerable strain on the

environment and is not sustainable in the long run. Many countries, including Pakistan and Bangladesh, are already facing the problem of gas shortages. One of the solutions technologically available now would be to create bio-methane to inject into the natural gas grid in order to boost supply.

One of the largest contributors to transportation emissions are commercial vehicles with high mileage, like those used in the trucking and freight industries. Conversion of these vehicles to gas or even dual fuel engines continue to offer the largest reductions in air pollution in urban areas. Operationally, dual fuel engines offer a very attractive choice in long haulage goods. It can reduce the cost of operations through a reduction in fuel costs, and still use diesel as an alternative when it is in areas with no natural gas stations. Carbon emission savings when running on bio-methane could be as high as 80%. Within Asia, many countries are already targeting this industry for CNG growth, with Japan taking policy actions towards the promotion of the use of CNG for long-haulage trucks. Thailand, Vietnam, Indonesia and China are also in the midst of considering or working out systems to encourage this growth.

FEATURE ARTICLE

NTM By Vincent Choy


EVENT & EXHIBITION

Growing Together Towards A Friendly Planet

NGV Transportation is pleased to announce our collaboration with World Gas Conference Paris 2015 as official marketing partners. We see the WGCP2015 as the perfect stage for open discussion of the industry’s most pressing issues. NGV Transportation will be

present and will be distributing our magazine at the event at two separate locations. As marketing partners NGV Transportation will be proudly promoting the World Gas Conference at all partnered events including “CNG-NGV Forum Series, “Asia Biogas Pacific Forum, and “LNG World Forum Series”. All WGC Paris 2015 news and updates will be followed closely and subsequently released in our newsletters, website and social media outlets. Exclusive pre-event updates will be featured in the magazine, keeping you up to date with all the latest developments.

Global gas and energy leaders from around the world will gather to

attend the prestigious 26th World Gas Conference (WGCPARIS2015) in Paris, France from 1-5 June 2015. Hosted by the French presidency and organised by the International Gas Union (IGU), the conference and exhibition will seek to address the recent developments in the energy sector, with a prime focus on the sustainable growth of the global gas industry.

Themed “Growing together towards a friendly planet”, WGCPARIS2015 will showcase major achievements and milestones accomplished by the global gas industry. It will also draw on critical inputs from an array of global gas professionals to chart new strategies for the natural gas industry.

“We are much honoured to be taking on the important responsibility of promoting the use of natural gas through such an established meeting place, being the World Gas Conference. We must continue to address the world’s challenges such as increasing global energy demand by educating the energy industry on the benefits of natural gas and its imperative role in our energy future,” said Jérôme Ferrier, President, IGU.

To address the continuous need for clean and efficient energy, WGCPARIS2015 team has identified four strategic pillars, to sustain future global growth.

26th World Gas Conference 2015:

May 2014


EVENT & EXHIBITION

As Daniel Paccoud, IGU Coordination Committee advised: “Growth must be sustainable and shared between continents. Sustainable growths aim to improve current conditions without comprising the ability of future generations to meet their own needs”.

Therefore the WGCPARIS2015 technical programme has been structured along critical themes for each day. Beginning with “Human resources for the future”, the conference progresses with “Natural gas available everywhere”, then “Natural gas for a sustainable development”, building up to “Combination with renewables and Electricity”, on the final day.

This will be the opportunity in 2015 for attendees to come together as a community with mutual interests to ensure continued excellence in the current global gas climate. It will offer five valuable days for networking, learning and sharing information on the latest developments in the global energy industry and adaptation to future universal innovations. The delegates will include major players and suppliers to the gas industry.

WGCPARIS2015 keynote speakers will comprise the top CEOs and captains of industry associations, International Gas Companies and National Gas Companies. These highly respected individuals from around the world represent a cross-section of the industry from upstream, midstream and downstream.

WGCPARIS2015 host sponsors are Total SA and GDF SUEZ. WGCPARIS2015 has as principal sponsors: Qatargas and Shell; as global sponsors: Chevron and Gazprom; as diamond sponsors: RasGas and American Gas Association; as gold sponsor: Woodside; as silver sponsor: GasTerra; as bronze sponsors: Cheniere, Technip and INPEX and as associate sponsor: KBR. WGCPARIS2015 is set to feature over 4,000 industry professionals from 100 different countries of the

globe, 500 international speakers, 50 local and international media, and more than 300 exhibitors.

Register online before 16 January 2015 to take advantage of the Early Bird Discount and save EUR 480. For further information, or to register, please visit www.wgc2015.org or join the LinkedIn group at http://bit.ly/wgcparis2015-linkedIngroup.

About WGCPARIS2015Since 1931, the International Gas Union has been organising the World Gas Conference once every three years. The triennial World Gas Conference and Exhibition is the biggest and most important global gas industry event, attracting 5,000 industry professionals from all over the world and showcasing the latest developments, with information on policies, strategies technologies, challenges and opportunities. The 26th World Gas Conference will take place in Paris, France, 1-5 June 2015 with the theme “Growing together towards a friendly planet”.

About IGUThe International Gas Union (IGU) was founded in 1931. It is a worldwide non-profit organisation whose objective is to promote the technical and economic progress of the global gas industry.

The members of the IGU are associations and entities of the gas industries in 77 countries which account for over 95% of the natural gas traded around the world, and maintain very close ties with many other international energy organisations. It consists a total of 118 members, of which 78 are charter members and 40 are associate members.

WGCPARIS2015 Contact:Geraldine HervelMarketing & Communications ExecutiveCWC Group Limited, London

Email: [email protected]

NGV Transportation is pleased to announce our collaboration with World Gas Conference Paris 2015 as official marketing partners. We see the WGCP2015 as the perfect stage for open discussion of the industry’s most pressing issues. NGV Transportation will be present and will be distributing our magazine at the event at two separate locations.

As marketing partners NGV Transportation will be proudly promoting the World Gas Conference at all partnered events including “CNG-NGV Forum Series, “Asia Biogas Pacific Forum, and “LNG World Forum Series”. All WGC Paris 2015 news and updates will be followed closely and subsequently released in our newsletters, website and social media outlets. Exclusive pre-event updates will be featured in the magazine, keeping you up to date with all the latest developments.

World Gas Conference Media Partners

NTM

NTM

THE GAS MARKETS IN C.I.S. ARE EVOLVING RAPIDLY! ARE YOU CATCHING UP?

Phone: +65 6506 0965 Fax: +65 6749 7293 Email: [email protected]

As gas markets in Georgia and the neighboring C.I.S. countries expand to meet increasing demand, don’t get left out!

Don’t miss this opportunity to cater to the needs of this increasingly complex and lucrative marketplace. Sponsoring and exhibiting GAS GEORGIA 2014 will increase awareness of your company brand, gain competitive edge and position your brand in front of hundreds of industry executives from all over Georgia and the C.I.S. countries. GAS GEORGIA 2014 is a valuable meeting place to network, conduct business and build strategic partnerships.


THE GAS MARKETS IN C.I.S. ARE EVOLVING RAPIDLY! ARE YOU CATCHING UP?

Phone: +65 6506 0965 Fax: +65 6749 7293 Email: [email protected]

As gas markets in Georgia and the neighboring C.I.S. countries expand to meet increasing demand, don’t get left out!

Don’t miss this opportunity to cater to the needs of this increasingly complex and lucrative marketplace. Sponsoring and exhibiting GAS GEORGIA 2014 will increase awareness of your company brand, gain competitive edge and position your brand in front of hundreds of industry executives from all over Georgia and the C.I.S. countries. GAS GEORGIA 2014 is a valuable meeting place to network, conduct business and build strategic partnerships.

www.naturalgasglobal.com

NGV Transportation

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