LNG

Despite holding almost 9 percent of the world’s proven reserves of natural gas, Africa remains the most energy-poor continent while industries rely on expensive, inefficient and polluting sources of energy leaving hundreds of millions of households lacking modern energy access, according to a new International Gas Union report.

The past 12 months have been the most turbulent and testing year ever for the energy industry, in particular the natural gas sector and the markets, according to the International Gas Union President Li Yalan.

The IGU President also noted in the December issue of the IGU’s monthly publication that there had also been hard times in many other sectors of the economy and for populations in general.

“The global energy crisis continues and energy markets are rocked by conflict, high and volatile prices, low supply and demand destruction,” stated Li, who was nominated as head of the IGU from the Beijing Gas Group.

“Energy consumers are directly exposed to the energy crisis, with people struggling to pay their bills due to high energy cost,” she said.

“Many had to turn down their heat this winter, several regions have had to endure power shortages and others are walking through darker streets or working remotely to conserve energy,” she added.

Coal use

“Many factories were forced to stop producing, or close down faced with unaffordable energy and deficiency in raw materials. To navigate through the crisis, many countries had to prioritize energy security over energy transition as a result we see a growing number of countries adding coal-power capacity, and increased use of coal - the
most emitting fossil fuel - all across the world, rich and developing alike,” she explained.

The IGU President emphasized that there was an upside as there were positive signals that investments were increasing for natural gas projects and for renewables and that these trends needed to continue for the global energy balance to be restored.

“As we wrap up this year and reflect on its many stresses, I hope that a key lesson that can be learned from it is that energy systems cannot be changed overnight,” noted Li.

“In the recent years leading up to this crisis, energy security became forgotten and long-term planning for secure and reliable supply was seemingly forgotten with it,” she explained.

“This crisis reminds us that energy security should be brought back in balance with economic and environmental policy considerations,” Li declared.

LI added that it was imperative that the world arrives at a “real plan” for an achievable transition toward a clean, secure and affordable energy system.

“Most importantly, it will require an honest dialogue between all key players, including the gas industry,” she said.

The International Gas Union (IGU), a global voice of the pipeline natural gas and LNG industries with more than 150 members in over 80 countries, has published the latest annual edition of the IGU Wholesale Gas Price Survey.

Gaztransport and Technigaz (GTT), the French LNG storage technology company, has received an order to provide more full containment tanks for the new Nangang LNG import terminal being constructed by Beijing Gas at Tianjin port in northeast China.

GTT said the order was received from its partner company, China Huanqiu Contracting and Engineering Co. (HQC), for the design of four “very large” storage tanks.

This order is part of the new cooperation agreement related to the Tianjin Nangang LNG project signed in March 2021 between Beijing Gas and GTT.

It completes the order for two similar tanks signed in June 2020 with HQC.

GTT is  designing the tanks for all four phases and supplying the latest generation of membrane storage. Each tank will offer a net capacity of 220,000 cubic metres capacity.

The completed Nangang import regasification facilities will have a capacity to handle 12 million tonnes per annum of imports and an initial 2.5 MTPA of imports by 2022.

The French tech firm said the latest tanks order would be delivered in the third quarter of 2023 to the Tianjin South Port Industrial Zone in China.

The second and third phases of the Tianjin Nangang construction will include the building of a total of six additional storage tanks, each of 220,000 cubic metres capacity.

The original agreement was signed in March 2021 at a ceremony held at the French Embassy in Beijing in the presence of French Ambassador Laurent Bili, Chairman of Beijing Enterprises Group Tian Zhenqing and Li Yalan, Chairwoman of the board of Beijing Gas.

The first firm agreement for Nangang LNG followed a November 2019 accord between GTT and Beijing Gas on the occasion of the presidential visit to China of French President Emmanuel Macron for talks with his Chinese counterpart Xi Jinping.

GTT subsequently received an order in June 2020 for the design of two 220,000 cubic metres capacity membrane tanks.

“We are proud to continue the collaboration with HQC with this new order,” said Philippe Berterottière, Chairman and Chief Executive of GTT.

“The adoption of Full LNG Membrane technology by HQC and Beijing Gas is recognition not only of the technology's excellent performance, competitiveness and safety, but also of its positive impact in reducing the carbon footprint,” stated Berterottière.

Wei Yabin, Chairman of the Nangang project engineering firm HQC, said the contract was a boost for the company.

“Following the award of Phase I, we are proud to build four more Membrane Full Containment LNG tanks together with GTT,” said Wei.

Gaztransport and Technigaz, the French technology and engineering company for LNG storage, has signed an additional cooperation agreement related to the Tianjin Nangang LNG import terminal currently being developed in northeast China.

GTT and the developer, Beijing Gas Group, said their accord is for collaboration for the phase II and phase III parts of the terminal construction beyond phase 1 covered by the current agreement.

The second and third phases of the Tianjin Nangang construction will include building six additional storage tanks, each of 220,000 cubic metres capacity.

This agreement was signed at a ceremony held at the French Embassy in Beijing in the presence of French Ambassador Laurent Bili, Chairman of Beijing Enterprises Group Tian Zhenqing and Li Yalan, Chairwoman of the board of Beijing Gas, along with Adnan Ezzarhouni, General Manager of GTT in China.

“I am convinced that GTT, a company of excellence in the field of natural gas, has a great future in China, which has resolutely embarked on the path of energy transition,” state French Ambassador Bili.

The first firm agreement for Tianjin Nangang LNG followed a November 2019 accord between GTT and Beijing Gas on the occasion of the presidential visit to China of French President Emmanuel Macron for talks with his Chinese counterpart Xi Jinping.

GTT subsequently received an order in June 2020 for the design of two 220,000 cubic metres capacity membrane tanks.

Built as part of the Tianjin Nangang project, located east of the capital Beijing, these two tanks when completed will be the largest in China.

“In this new agreement, GTT will also support Beijing Gas in upgrading the National Standards of LNG onshore tanks,” explained GTT.

Beijing Gas Chairwoman Li Yalan said the Tianjin Nangang LNG project was progressing smoothly.

“I hope Beijing Gas and GTT continue to strengthen their cooperation and jointly promote the adoption of the lower carbon footprint membrane full containment technology among Chinese gas companies,” added Li.

The Tianjin Nangang terminal will be the third serving the northeast Chinese port supplying the gas needs of Beijing.

The existing facilities currently include the Tianjin North onshore terminal operated by China Petroleum and Chemical Corp. (Sinopec) and a separate floating terminal provided by Norway’s Höegh LNG in the form of a floating storage and regasification unit on long-term charter to China National Offshore Oil Corp. (CNOOC).

“We are very pleased to extend our partnership with Beijing Gas, proof that the membrane full containment technology meets expectations in terms of technological performance, cost competitiveness and level of safety,” stated Philippe Berterottière, Chairman and Chief Executive of GTT.

The Presidency of the International Gas Union (IGU) for 2018-2021 was officially assumed by South Korea at the start of the 27th World Gas Conference taking place in Washington DC from June 25-29.

China has won the election with a woman candidate for the Presidency of the International Gas Union to succeed the current US President of the leading policy body for the global LNG and natural gas industry.