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NGV Transportation

VOL. 31 | JUL - SEPT 2017 | USD 30

NGV

TRANSPORTATION MAGAZINE

SPECIAL REPORTS:

SEAWATER FREEZE DESALINATION PROTOTYPE SYSTEM UTILIZING LNG COLD ENERGY

FEATURES:

NATURAL GAS SUPPLY DIVERSIFICATION OPTIONS FOR THE EUROPEAN UNION:

U.S. LNG IMPORTS AND THE EAST MED PIPELINE THE INTERNAL COMBUSTION ENGINE

IS NOT DEAD, BUT IT MORPHS


EVENT CALENDAR

DATES

CITY

EVENT

13 – 14 FEB 2017

MANILA, PHILIPPINES

DECENTRALISED ENERGY & CO-GENERATION FORUM

13 – 15 MAR 2017

JAKARTA, INDONESIA

FSRU & SMALL LNG SHIPPING FORUM

13 – 15 MAR 2017

JAKARTA, INDONESIA

CNG-NGV INDONESIA FORUM

13 – 15 MAR 2017

JAKARTA, INDONESIA

BIOGAS INDONESIA FORUM

APR 2017

PORT OF SPAIN, TRINIDAD

CNG-NGV CARRIBEAN FORUM

18 – 19 APR 2017

TEHRAN, IRAN

IRAN METHANOL TRADE SUMMIT

18 – 19 MAY 2017

KUALA LUMPUR, MALAYSIA

BIOGAS ASIA PACIFIC FORUM

15 – 16 JUN 2017

YANGON, MYANMAR

LNG SUPPLY, TRANSPORT, STORAGE INDOCHINA

06 – 07 JUL 2017

NAIROBI, KENYA

BIOGAS AFRICA FORUM

11 – 12 JUL 2017

JOHANNESBURG, SOUTH AFRICA

CNG-NGV AFRICA FORUM

24 – 25 JUL 2017

HO CHI MINH, VIETNAM

CNG-NGV VIETNAM FORUM

03 – 04 AUG 2017

MANILA, PHILIPPINES

BIOGAS AND WASTE TO ENERGY PHILIPPINES FORUM

13 – 15 SEP 2017

BALI, INDONESIA

LNG TRANSPORT, STORAGE, HANDLING INDONESIA

17 – 18 OCT 2017

BANGKOK, THAILAND

BIOGAS AND WASTE TO ENERGY THAILAND FORUM

10 – 12 OCT 2017

KUALA LUMPUR, MALAYSIA

ASIA PACIFIC ROUNDTABLE ON SUSTAINABLE CONSUMPTION & PRODUCTION

25 – 27 OCT 2017

MANILA PHILIPPINES

LNG SUPPLY, TRANSPORT, STORAGE PHILIPPINES

25 – 27 OCT 2017

KUALA LUMPUR, MALAYSIA

WORLD METHANOL FORUM

22 – 23 NOV 2017

SINGAPORE

HYDROGEN ENERGY STORAGE FORUM

06 – 08 DEC 2017

JAKARTA, INDONESIA

GAS TO POWER

CLEAN ENERGY | SUSTAINABLE ENERGY

NATURAL GAS | LNG | CNG

METHANOL

For more information, please visit: www.alleventsgroup.com | www.cngngv.com | www.icesn.com www.lng-world.com | www.naturalgasglobal.com

ORGANIZED BY:

NGV TRANSPORTATION MAGAZINE

IN CONJUNCTION WITH:

LNG FORUM SERIES

ICESN


EDITOR’S TWO CENTS

Greetings all! The LNG scene continues to become more interconnected with each passing day though not free from upsets. As more international supply deals are constantly being struck between nations as the oversupply is steadily dealt with, other previous projects are experiencing blockades and barriers preventing them from coming to light. One big project that has recently met with its demise is the Prince Rupert project in Canada. Malaysia has finally hung up its boots and rescinded on their decision to go ahead with the LNG export facility after more than a year of deliberation and discussion. Other projects have also faced problems such as the LNG facility in Bataan, Philippines which has seen the government go back on some of its promises. The real root cause for all of this are the current low prices. Everyone wants to ensure their profits are guarded and everyone makes their fair share of gains, which in the current market is significantly more challenging. Despite these upsets however, the natural gas industry trudges onwards and terms like LNG and CNG are being used more and more by the average person on the street. As always we also need to remind you that the current low prices are not going to last forever and it’s merely a phase in natural gas’ journey towards its goal of becoming the most widely used fuel of the future. In this issue there’s an interesting technical article on the use of LNG cold energy for freeze desalination. Not an entirely new concept but researchers have been making headway with the development of a prototype that has significant advantages over current methods. There’s also another technical article on the best approach for obtaining MID approval for measuring instruments. On top of those, there’s a very nice look at natural gas supply diversification options for the EU and a look at the future version of the internal combustion engine that’s powered by our favourite sub-zero gas. We hope to show you what we can in the latest developments of the natural gas industry and give you an honest view of where everything is headed from the brightest minds involved in the natural gas space. Do provide us with feedback on how we can do better to serve your needs and if you are keen to partner with us and we’ll be happy to see what we can do. Till the next issue, all the best!

NGV

TRANSPORTATION MAGAZINE Published by:

NATURAL GAS GLOBAL

Managing Director Vincent Choy vincent@naturalgaslobal.com Chief Editor Rizal Rahman

rizal.rahman@naturalgasglobal.com

Editor Ryan Pasupathy

ryan@naturalgasglobal.com

Business Development Samuel Tan

samuel.tan@naturalgasglobal.com

Marketing Manager Chloe Lee

chloe@naturalgasglobal.com

Graphic Designer Puspo Aurum puspo@olifen.co.id

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Vol.31 Jul - Sep 2017 NGV Transportation


CONTENTS

03 NEWS AROUND THE WORLD EDITOR’S TWO CENTS ANALYSIS OF NATIONAL POLICIES AND ITS IMPACT ON NGV GROWTH IN THE CZECH REPUBLIC

01 39

FEATURES:

THE INTERNAL COMBUSTION ENGINE IS NOT DEAD, BUT IT MORPHS

22

SPECIAL REPORTS: SEAWATER FREEZE DESALINATION PROTOTYPE SYSTEM UTILIZING LNG COLD ENERGY

16

MODULAR EVALUATION: AN EFFICIENT APPROACH TO OBTAIN AN MID APPROVAL FOR MEASURING INSTRUMENTS

26

31 NGV Transportation Vol.31 Jul - Sep 2017

11 FEATURE:

NATURAL GAS SUPPLY DIVERSIFICATION OPTIONS FOR THE EUROPEAN UNION: U.S. LNG IMPORTS AND THE EAST MED PIPELINE

EVENT& EXHIBITION: 2nd ANNUAL NATURAL GAS & CNG AFRICA FORUM 2017 EVENT REPORT 2


NEWS AROUND THE WORLD

Philippines

Russia

August 2017: LNG Project Faces Delay as Government Flip-flops

July 2017: Russia May Break Gazprom Monopoly To Stimulate LNG

Gregorio Araneta Inc. (GAI), a company involved in the $2 billion LNG facility in Bataan, is disappointed over the government’s flipflopping stance on the project after rejecting the group’s proposal and saying it would instead open the matter to other interested parties. The chairman Gregorio Araneta said, “I’m surprised they are now saying they have to look for somebody else. We’ve been working on the project since 2014. We have given P38 million in deposits already and we have spent substantial amounts on the project”. The ambitious Energy City LNG project, to be located in the Bataan industrial park of PNOC-Alternative Fuels Corp. (AFC), was submitted for approval as far back as 2012 to supply the power needs of Luzon in time when the Malampaya gas thins out in 2022. In a meeting on June 25, 2015, the board of PNOC-AFC, the now defunct subsidiary which owns the Bataan land, formally approved the lease arrangement proposed by GAI, which was forwarded to parent firm PNOC for final approval. But through 2015 to 2016, there was still no final approval of the lease arrangement. Energy Secretary, Alfonso Cusi now wants to solicit proposals from other parties to develop the LNG hub when Cusi himself last year said he is happy with GAI’s proposal, which is in partnership with the MVP Group and other foreign investors. But after the meeting with Alfonso Cusi and in stark contrast to earlier discussions, PNOC said the group must lease all the available lots in the industrial park at commercial rates.

A Russian security council commission has recommended the breaking up of Gazprom’s gas export monopoly in a move to improve the competitiveness of Russia’s gas market. The commission has stated that global rise in LNG has posed a threat to Russia’s energy security and deems that Moscow needs to take immediate action to turn Russia into a major exporter of LNG. The commission has said that the global structure of fuel demand is changing and new LNG is creating waves of intense competition in Europe and Asia which are key markets for Russia’s natural gas. In order to tackle this issue, the commission has proposed prioritizing development of the LNG industry in Russia through a coordinated strategy for gas deliveries to key markets and liberalizing gas exports. Currently Gazprom is the sole exporter of pipeline natural gas. There is a single LNG plant in Russia with an annual capacity of 9.6 million tons, which is operated by Sakhalin Energy, of which Gazprom is a majority shareholder. Companies other than Gazprom can export LNG, however, as long as they were licensed by 2013 to develop gas deposits with the option of building liquefaction trains there.

- The Philippine Star

- Oilprice.com

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NEWS AROUND THE WORLD

Canada

August 2017: Giant LNG Project Finally Admits Failure in BC

In late July, Malaysian state owned oil giant finally shelved its plans to build a large LNG export facility at Lelu Island in British Columbia. The Pacific Northwest Project was one of several proposals clustered in the Pirnce Rupert vicinity. The USD 36 billion project would

have produced 18 million tons of LNG per year. The Canadian federal government approved the Pacific Northwest LNG project in September 2016 but the project was riddled with unsettled plans an non-agreements between local authorities and the other major players involved.

In a press release, the projects’ chairman said, “We are disappointed that the extremely challenging environment brought about by the prolonged depressed prices and shifts in the energy industry have led us to this decision.” As LNG prices currently remain low, this project is just one of the nearly 20 over projects that have been stalled in BC. At today’s prices there is simply no way that the projects would be able to turn a profit. The stark market realities have not stopped the industry from attempting to blame the death of Pacific Northwest LNG on the prerequisite that LNG projects comply with environmental safeguards, but the fact is that even the BC LNG projects with the deepest pockets and biggest hopes are uncompetitive in the current market. - Sightline Institiute

Thailand

Lithuania

August 2017: PTT Exploration Snaps-Up Stake in Malaysian LNG Project

August 2017: Lithuania Becomes First Ex-Soviet State to Buy US Natural Gas

Thailand’s PTT Exploration will invest $500 million in a Malaysian liquefied natural gas production base, seeking new sources of the fuel as Thai reserves become depleted. In the company’s first foray into LNG production, a PTTEP subsidiary will acquire a 10% stake in the operator of the site from Malaysian state-owned oil company Petroliam Nasional, or Petronas. The facility, which started operating in January, has an annual output capacity of 3.6 million tons. The Thai resource developer’s parent, stateowned oil and gas giant PTT, is also bolstering LNG imports, rushing to build new facilities that can receive larger quantities of the fuel. PTT aims to almost quadruple its current annual import capacity to 19 million tons by 2023. The parent company also owns a stake in the subsidiary involved in the Malaysian LNG project.

Lithuania is currently already importing LNG from Norway but they are keen to broaden their energy security options and getting their LNG from the US is a bold statement to Russia. The country looks to cement ties and backing with the US following Russia’s annexation of Crimea in 2014. Lithuania’s energy minister Zygimantas Vaiciunas said, “We are happy to reach a point where importing gas from U.S. is not only politically desirable but also commercially viable”. Vaiciunas added that the shipment from Cheniere Energy’s export terminal on the US Gulf Coast to the floating Klaipeda terminal was done at a price that was competitive with gas delivered on Russian pipelines, without revealing terms. Both parties have been in talks about raising further shipments in the near future. - Financial Times

- Nikkei Asian Review

NGV Transportation Vol.31 Jul - Sep 2017

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NEWS AROUND THE WORLD

United States July 2017: Will U.S. Liquefied Natural Gas Find A Market In Asia?

The short answer according to Forbes is Yes. It has been 18 months since the US first started exporting LNG and 35% of all US LNG has reached Asia. The Asian giants have decided to reduce their coal over-reliance by making more use of natural gas. The time for diversification is now because Asian gas prices are almost as low as those in the US. The new ‘sweet spot’ for building demand is $6 per MMBTU. This combined with the questionable ability of the Asian giants to produce their own LNG is in

serious doubt. They are hampered by issues such as limited water shortages, low prices, physical remoteness of resources and uncertainties in foreign experts dealing with their precarious state owned enterprises. Other issues such as ending of long-term contracts, price controls and inflexible markets also make matters worse for them. It would seem that US LNG is more than just ready to regularly find a home in Asia. - Forbes

Germany August 2017: First Containership Retrofitted for LNG Begins Operations

The world’s first container ship retrofitted with an LNG engine has undergone initial bunkering at the Kühlhauskai in the Port of Bremerhaven. The Wes Amelie belonging to Wessels Reederei underwent the LNG

bunkering operation conducted by Hamburg-based Nauticor after the 1,000 teu vessel had undergone an LNG engine conversion at the German Dry Docks in Bremerhaven. The bunkering was

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conducted using four trucks of LNG delivered to the port and then transferred to the vessel. Sonja Neßhöver, director of LNG at Nauticor, dubbed the operation “a complete success” on account of the smooth cooperation between all parties involved. The conversion was supported by the Federal Ministry of Transport and Digital Infrastructure, and will likely be extended to other ships in the fleet. Nautica, owned by The Linde Group, also carries out ship-to-ship LNG bunkering; the company says it will start operations with a second bunker vessel serving customers in Northwest Europe and the Baltic next year. - Seatrade Maritime News

Vol.31 Jul - Sep 2017 NGV Transportation


NEWS AROUND THE WORLD

Indonesia Coordinating Maritime Minister Luhut Pandjaitan has said that Singapore will supply LNG for power generation in several locations in Indonesia. “Singapore has offered LNG to fuel power plants in seven places, including in Nias, North Sumatra, in Lhouksemawe, Aceh, and in Riau, to name a few,” Luhut said. He added that the LNG would be supplied for small power plants with the capacity between 25 megawatt to 50 megawatt. “The total capacity would be almost 500 megawatt, but it would be divided in several remote places,” he said. Luhut also said that the government would open a tender for the procurement, but he refused to confirm which Singapore companies would participate.

August 2017: Singapore to Supply LNG for Indonesia’s Power Plants

- The Jakarta Post

August 2017: Philippine Engineering Firm to Build LNG Plant in Indonesia

Philippine multinational engineering firm Altantic, Gulf and Pacific Co. (AG&P) has entered into a partnership with a group of Indonesian firms on the development a $980-million liquefied natural gas (LNG) terminal and power plant complex in Indonesia. AG & P has said that it has already signed agreements with PT Energi Nusantara merah Putih (ENMP) as well as a group of tenants in Bantaeng Industrial Park in South Sulawesi. “AG&P is thrilled to support this nationally important project in Bantaeng,” AG&P chief financial officer Abhilesh Gupta said in a joint

NGV Transportation Vol.31 Jul - Sep 2017

statement. “We look forward in short order to LNG being available for the power plant and to industry and consumers throughout Southern Sulawesi and nearby regions,” Gupta added. The power plant project is currently in the initial engineering phase and is expected to reach financial closing within a year. Once funding has been obtained, construction should start immediately. The modular components of the terminal will be constructed at AG&P’s manufacturing facilities in Batangas. - Inquirer.net

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NEWS AROUND THE WORLD

China August 2017: China’s natural gas consumption to increase at an average 10% over next 5 years Copyright © 1998-2016, RFA. Used with the permission of Radio Free Asia, 2025 M St. NW, Suite 300, Washington DC 20036

China’s natural gas consumption is set to increase at an average of 10% over the next 5 years according to BMI research. China’s apparent natural gas consumption rose 11% y-o-y in H1, 2017, supported by government efforts to increase the share of the cleaner-fuel in the national energy mix, as Beijing seeks to reduce carbon intensity and improve air quality in its urban centres, BMI

Research has said. A large number of key industrial sectors such as glass, ceramics, textiles, appliances and building materials have more aggressively switched over to gas from coal in order to comply with the next government environmental directives. This brings its forecast closer to that of the National Energy Administration (NEA), which anticipates

domestic gas demand to hit 230 bcm this year. Thereafter, BMI expects consumption to average annual growth of 10%, reaching 297.5 bcm by 2020. Despite growing production, China will continue to require imports to meet about 45% of domestic demand. Appetite for LNG will remain especially strong in the short-term. - Hellenic Shipping News

India August 2017: GAIL Seeks Reworking of US LNG Price Deal GAIL India is seeking to renegotiate the price of the LNG that it has contracted from the United States following having renegotiated a similar contract with Australia so as to properly reflect current market realities. The company’s largest gas transporter has deals to buy 5.8 million tons per annum for 20 years from the US. “We need to be in sync with the market, whether it is buyer or seller. So, if market dynamics has changed and there is a glut of gas the world over

with falling rates, the same should also reflect in our prices,” a source told the Economic Times. GAIL had agreed to pay Cheniere a price of USD 3 per million British thermal unit (mmBtu) plus 115 per cent of the final settlement price for the New York Mercantile Exchange Henry Hub natural gas futures contract for the month in which the relevant cargo is scheduled. - Economic Times

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NEWS AROUND THE WORLD

Singapore

Japan

August 2017: Pavilion Energy Secures Access Rights to Singapore LNG Terminal

August 2017: Japan and Singapore to Study LNG Bunkering for Car Carriers

Pavilion Gas, subsidiary of Pavilion Energy has secured access right to the LNG terminal on Jurong Island. Pavilion Energy said that the rights to access tank capacity on a segregated basis at the Singapore LNG (SLNG) terminal over the next 24 months, will support higher volumes of LNG trading activities, small scale LNG opportunities, LNG breakbulk and vessel cool-down services. Seah Moon Ming, chief executive of Pavilion Gas and Pavilion Energy, said that the firm is delighted to partner SLNG on LNG storage and reload services at the terminal. “With increased spot trading volume, this will strengthen Singapore’s position as an Asian LNG hub,” he said. “We will work closely with SLNG to facilitate multi-user access of the SLNG Terminal for LNG trading activities. Pavilion Gas is well-positioned to expand and grow its LNG trading presence regionally and globally.”

Ports and Harbours Bureau of Japan’s Ministry of Land, Infrastructure, Transport, and Tourism (MLIT) is teaming up with Singapore’s Maritime and Port Authority to help drive LNG bunkering in Asia. The two organisations announced at the inaugural Singapore and Japan Port Seminar on Monday that they will helm a working group to conduct a feasibility study on LNG bunkering for car carriers plying between Japan and Singapore. he working group will include Japan’s big three shipping companies - Kawasaki Kisen Kaisha (K Line), Nippon Yusen Kaisha (NYK) and Mitsui OSK Lines (MOL). The study will focus on the technical details such as fuel tank capacities and refuelling requirements to assess the feasibility of running LNGfuelled car carriers between Japan and Singapore.

- The Business Times

- The Straits Times

South Korea August 2017: S-Oil to import 700,000 Tons of LNG per Year From Malaysia Pavilion Gas, subsidiary of South Korean refiner S-Oil signed a 15-year liquefied natural gas supply contract with Malaysia’s Petronas, the company said Friday. Under the contract, S-Oil will start importing 700,000 tons of LNG per year from April 2018 to April 2033.

NGV Transportation Vol.31 Jul - Sep 2017

“With the latest deal, the company has secured fuel for facilities in Ulsan, which previously used Bunker C as their main fuel sources. The company plans to substitute Bunker C with LNG so that a larger amount of Bunker C can be spared to produce more lucrative products,” an

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S-Oil spokesperson said.S- Oil previously invested a total of some 4.8 trillion won ($4.25 billion) for the project involving the residue upgrading and olefin downstream complexes. The construction is expected to be completed in April next year. - Korea Herald


NEWS AROUND THE WORLD

Pakistan August 2017: LNG Terminal Will Help Resolve Energy Crisis

Fehmida Jamali, founder president Quetta Women Chamber of Commerce and Industry and the Executive Committee of the FPCCI member and former vice

president federation, said inauguration of LNG terminal at Port Qasim will help to resolve energy crises to masses which could also transform the industrial economy.

In a statement issues on today, Fehmida said “we are moving towards the energy resolve which was vital for our growth” “This was an unthinkable scenario just a few years ago as despite the LNG policy being enacted in 2006 there had been no practical move to develop the LNG ecosystem,” Jamali said. Pakistan is saving around 1.7 billion dollars each year due to fuel arbitrage savings between diesel and LNG alone She also said with the supply of LNG, more than 2300 megawatts power generation capacity has been brought online or switched from more expensive liquid fuels. RLNG also energised close to a dozen projects, generating billions of dollar economic activity in the country. - Daily Times

Ghana

Mozambique

August 2017: Ghana & Equatorial Guinea Presidents to Sign LNG Deal

August 2017: Air Products Wins Contract for Floating LNG Project in Africa

Ghana’s President Nana Akufo-Addo plans to sign an agreement to import liquefied natural gas (LNG) from Equatorial Guinea during his threeday visit to the Gulf of Guinea petroleum producer due to begin on Monday, his office said. Though an oil and gas producer in its own right since its flagship Jubilee field came on stream in 2010, Ghana has in the past struggled to ensure reliable power production for a growing domestic market.Equatorial Guinea, meanwhile, is exploring the possibility of selling a portion of its LNG cargos to its African neighbours. The statement from Akufo-Addo’s communications director said the president was expected to sign a framework document with his counterpart President Teodoro Obiang Nguema to import LNG from Equatorial Guinea for five years.

A new floating liquefied natural gas facility off the shore of Mozambique in southern Africa will rely on Air Products technology and equipment. Air Products said that it will supply its heat exchanger technology to a new facility in the Indian Ocean, and it has won a liquefaction process license to do so. The moored floating plant will operate above 6,500 feet of water in the Coral natural gas field. Mozambique will become the 20th country using Air Products’ liquefied natural gas (LNG) technology. It’s the company’s first deep-water floating LNG project in Africa. “We believe our involvement with other FLNG efforts in different parts of the world gives us unparalleled experience in the floating LNG market,” said Samir J. Serhan, executive vice president at Air Products.

- The Africa Report

- The Morning Call

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Vol.31 Jul - Sep 2017 NGV Transportation


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FEATURE ARTICLE

NATURAL GAS SUPPLY DIVERSIFICATION OPTIONS FOR THE EUROPEAN UNION:

U.S. LNG IMPORTS AND THE EAST MED PIPELINE

O

ver the past decade natural gas supply diversification has increasingly moved to the forefront of the EU’s political agenda. Europe’s natural gas market is dominated by imports from Russia. The natural gas pipeline infrastructure has evolved gradually over the past fifty years. Russia has been a reliable supplier to European markets for most of this time period. Over the past decade however, relations with Russia have become more complex. In 2006 and 2009 disputes between Russia and gas transit countries (Ukraine, Belarus) have led to supply interruptions in several European countries. Additionally, the ongoing conflict between Russia and the Ukraine that started in 2013 further deteriorated Russia’s political relations with the EU. European Union gas imports Natural gas accounts

for

roughly 24% of the EU-28’s Total Primary Energy Supply and is expected to remain unchanged throughout 2050. As the projected decline in European natural gas production is stronger than the decrease in consumption, import dependency is expected to increase from 73% in 2015 to 80% in 2035. In 2016 the major

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extra-EU importers of natural gas are Russia accounting for 38% followed by Norway with 36% and Algeria with 14%. Together these three countries account for 88% of imports of natural gas from outside the EU. Natural gas accounts for 85% of total EU-28 gas imports while LNG amounts to 15%.

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FEATUREARTICLE ARTICLE FEATURE

Divergent market developments in the EU and Russia Over the past decades the energy sectors of the EU and Russia have developed in very different ways. Through the introduction of various reforms and the implementation of The Third Energy Package in 2009, the EU succeeded to make its energy markets more competitive and sustainable. Russia’s energy sector has however remained highly concentrated and the supply chain shows a high degree of vertical integration. While EU energy market reform aimed at increasing energy supply security, it did not automatically lead to natural gas import supply diversification. In 2016 the share imports from Russia in total extra-EU natural gas imports amounted to 75-100%

NGVTransportation TransportationVol.31 Vol.31Jul Jul- -Sep Sep2017 2017 NGV

in countries like Bulgaria, the Czech Republic, Estonia, Latvia, Austria, Poland, Rumania, Slovenia, Slovakia and Finland . Options to improve gas supply security Options to improve gas supply security include, on the one hand the construction of additional pipelines, connecting new resources to the EU pipeline network and on the other hand an increased reliance on LNG imports. Increasing the share of LNG imports requires the construction of additional receiving terminals and the further development of the EU pipeline network through additional inner EU pipeline connections. Poland and Lithuania, have built LNG terminals in recent years and thereby reduced dependency

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on Russian imports. These terminals were subsidized by the EU and national governments. Alternatively, imports of natural gas via the so-called East-Med pipeline project that has been classified as Project of Common Interest by the EU, would allow to diversify away from Russian imports and away from major zones of conflicts and instability on the EU’s northern and southern borders. The Eastern Mediterranean Offshore Oil and Gas discoveries Over the past two decades major oil and gas discoveries off the shore of Egypt, Israel, Cyprus and Lebanon are gradually transforming the region into an energy hub. Table 1 provides an overview of natural gas and oil reserves in the four countries. While


FEATUREARTICLE ARTICLE FEATURE

proved natural gas discoveries currently amount to around 84 Trillion Cubic Feet (Tcf) in Egypt and Israel, estimated reserves for Egypt, Israel, Cyprus and Lebanon reach up to 166 Tcf. Forecasted domestic consumption needs and prospective export volumes Forecasts of domestic natural gas consumption needs show that total cumulative natural gas consumption for Egypt, Israel, Cyprus and Lebanon over the period 2017-2042 is projected to reach 94 Tcf, which potentially allows for large volumes of gas to be exported. Furthermore, total yearly consumption needs in the four countries will reach around 5 Tcf in 2042. The East Med pipeline The East Med pipeline has an estimated length of 1700 km

and spans from the Eastern Mediterranean Sea’s Levantine Basin to Cyprus, Crete and the Greek mainland where it joins the Poseidon pipeline. The East Med pipeline’s onshore segments only account for 500 km of its total length, the remaining 1200 km will be offshore. For a pipeline capacity of 32.5 Bcm with a yearly average gas volume flow of 25 Bcm, estimated capital costs amount to roughly $ 5 million per kilometer while total capital cost for the East Med pipeline are estimated at $ 8.6 billion. Transmission costs in Million British Thermal Units per 100 km reach roughly $ 0.25. If pipeline quality gas is fed into the East Med pipeline offshore Cyprus at a cost of $ 3 per MMBtu it could be offered at destination for $ 7.22 per MMBtu. For prices in the day ahead market at major European trading hubs ranging between $ 6.814 and $ 7.551,

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such as was the case in February 2017 natural gas deliveries through the East Med pipeline will be marginally competitive in Southern Europe. To fully appreciate the energy security benefits of the East Med pipeline it should be noted that this project provides an alternative, not only to Russian gas but that it also constitutes a superior option to offshore Eastern Mediterranean gas being delivered through Turkey to the EU. European political relations with Turkey have significantly deteriorated over the past decade and the country has become increasingly unstable. Egypt, Israel and Lebanon have traditionally had very good relations with the European Union and Cyprus is itself an EU member state. The offshore location of gas resources presents an additional security advantage. Furthermore, the East Med

Vol.31 Jul Jul -- Sep Sep 2017 NGV Transportation Transportation Vol.31 2017 NGV


FEATURE ARTICLE ARTICLE FEATURE pipeline would allow Europe to foster economic development within its borders along the Southern Gas Corridor. The development of a southern European energy hub would allow to further develop inner EU natural gas infrastructure and thereby increase the penetration rate of natural gas in the region which could boost economic growth. Importing U.S. LNG The second major option for natural gas supply diversification in the EU are increased LNG imports. The International Energy Association’s 2016 World Energy Outlook forecasts an increase in EU LNG imports, rising from 10% in 2014 to over 30% in 2040. The majority of the increased LNG imports is expected to come from North America and Qatar. The U.S. shale gas boom has led to a steady increase in U.S.

gas production over the past decade and gas production from unconventional resources has reached 50% of total gas production in the U.S. in 2016. Assuming a Henry Hub price of $ 3 per MMBtu, U.S. LNG could be delivered to Europe’s Zeebrugge Terminal for a price in the range of $ 5.8 to $ 8.21 per MMBtu. According to the U.S. Department of Energy Federal Regulatory Commission estimates, landed prices for LNG averaged $ 5.03 in Zeebrugge in April 2017 which indicates that under current market conditions U.S. LNG exports might not be competitive. However, the International Energy Agency in its 2016 World Economic Outlook, forecasts natural gas prices in Europe to increase to $ 9.2 per MMBtu by 2025 and to $ 11.5 per MMBtu by 2040 indicating that U.S. LNG exports could become an economically attractive

alternative for supply diversification in the near future. Conclusion Given the forecasted rise in natural gas import dependency of the EU to reach 80% by 2035 a combination of new pipeline projects, with access to more diversified supply sources and increased LNG imports are likely to materialize. Both options require substantial infrastructure investments for access to new resources and for a more competitive gas market within the EU that would allow for greater energy security. Note: A more detailed treatment of this subject titled ‘European Union energy supply security: The benefits of natural gas imports from the Eastern Mediterranean authored by Isabella Ruble appeared in Energy Policy 105 (2017) pp.341-353, June.

NTM

By Isabella Ruble

Isabella Ruble Isabella Ruble is an energy economist and a Senior Research Fellow at the U.S. Department of Energy in Washington, DC. As an academic Isabella held both research and teaching positions at Georgetown University in Washington DC, and the American University of Beirut in Lebanon. Isabella also held visiting positions, at Vienna University in Austria and at the American University in Washington DC. Isabella is a microeconomist and her research focuses on energy economics and policy, and public finance. Her research interests are: oil and natural gas markets, upstream oil and gas sector development, electricity and transportation sector issues, energy conservation, as well as energy supply security and geopolitics. Her research has been published in well regarded academic journals. As an associate professor Isabella has taught numerous courses at the graduate (Energy Economics and Policy, Price Theory, Economic Development, International Economics) and undergraduate (Intermediate Macro- & Microeconomics, Money & Banking, International Economic Policy, International Trade) levels at major US universities. Isabella also has extensive experience in curriculum development for graduate degrees and certificates. Isabella worked as a senior energy expert in consulting overseas and is fluent in French and German.

NGV NGVTransportation TransportationVol.31 Vol.31Jul Jul- -Sep Sep2017 2017

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S

EAWATER FREEZE DESALINATION PROTOTYPE SYSTEM UTILIZING

LNG COLD ENERGY

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resh water has always been an essential resource for humans and it is through access to fresh potable water that human beings are allowed to thrive. Yet, 783 million people around the globe, do not have access to clean water. With the current state of population growth seen in the world today, people have been increasingly turning to desalination – that is taking seawater and turning it into potable water. Desalination methods are usually classified into three categories: distillation, membrane and freezing method. Freeze desalination (FD) refers to the process in which freshwater is extracted by harvesting and melting the ice crystals from the chilled feed (seawater or brackish water). The main advantages of the freezing process are the low theoretical energy consumption and low temperature operation compared to thermal desalination. Other advantages are less scaling or fouling and

NGV Transportation Vol.31 Jul - Sep 2017

fewer corrosion problems, ability to use inexpensive plastics or low-cost material, and absence of pretreatment. [1] As freeze desalination has superior advantages, a significant amount of research has been conducted more recently. Various different methods have

been tested to try to increase efficiency and productivity of the process. This is because the power consumption of freeze desalination is relatively high, so people have been trying to utilize renewable energy in the desalination process to reduce power consumption of which the

“A Seawater Freeze Desalination Prototype System Utilizing LNG Cold Energy”, Wensheng Lin, Meibin Huang and Anzhong Gu, Institute of Refrigeration and Cryogenics, Shanghai Jiao Tong University, Shanghai, 2017.

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SPECIAL REPORT

bulk of this consumption, comes from its use in the refrigeration system. Cold energy from LNG is something that has gained some attention recently as a wonderful source of energy to reduce the energy consumption for the refrigeration process. Cold energy from LNG is energy that is often wasted during the regasification process at transfer terminals. It is estimated that that about 830 kJ per kg are released during transfer of LNG. The idea of using this cold energy for water desalination is not new and was actually first proposed in the 1970s but there has been little work done passed the theoretical analysis and simulation. The Institute of Refrigeration and Cryogenics at Shanghai Jiao Tong University has recently developed a prototype seawater desalination

system whereby LNG cold energy utilization is designed, manufactured and tested. The System Previous works summarized the freeze desalination approaches could be divided into three broad classes: direct contact freezing, indirect contact freezing and vacuum freezing. Researchers at the University found that the indirect-contact freezing was the most advantageous. The crystallizer in the indirect contact system was found to be very similar to an icemaking machine, which is a commercially available product. The ice produced in this system is easily separated from the seawater. Furthermore, the ice contains less salt because of the large size of the ice block, instead of the smaller crystals that are produced in the direct-

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contact system. The prototype works whereby LNG is sent into the heat exchanger, where it vaporizes and it’s cold energy is transferred to the intermediate fluid. The gasified natural gas is then sent out to its users. The refrigerant R410A is chosen as the intermediate fluid (secondary refrigerant), which is an environmentally friendly, azeotropic mixture of the refrigerants R32 and R125 (50%/50%), and which has a freezing point of -155oC. The thermal properties of R410A ensures that it may condense when getting cold energy from LNG and then vaporize to transfer cold energy to the seawater. Both the vaporizing and condensing temperatures are suitable for this application, and at the same time, the pressure may be maintained at

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SPECIAL REPORT

relatively low level during the whole circulation. The intermediate fluid R410A, in the gaseous state is then introduced into the heat exchanger, where it condenses to liquid while LNG vaporizes

at the same time. The liquid R410A is then pumped at a slightly higher pressure to overcome the circulation flow resistance. The liquid is then flowed through a valve, which can control the outlet

“A Seawater Freeze Desalination Prototype System Utilizing LNG Cold Energy�, Wensheng Lin, Meibin Huang and Anzhong Gu, Institute of Refrigeration and Cryogenics, Shanghai Jiao Tong University, Shanghai, 2017.

NGV Transportation Vol.31 Jul - Sep 2017

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temperature and pressure of the fluid. The liquid is then sent into the seawater crystallizer, where R410 vaporizes, and at the same time, the seawater is cooled and a portion of it is crystallized to form ice. In the study, flake ice maker is adopted as the crystallizer, in which a rotary ice blade is used to scrape an ice layer off the sub-cooled surface of a cylindrical heat exchanger. Such machines tend to exhibit high heat transfer efficiencies. They are also relatively simple and easy to operate. They utilize a mechanical method to remove ice instead of hot gas defrosting, eliminating the requirement for an additional heat source in other ice makers such as tube icemakers. The Prototype The prototype system includes three parts of fluid flow: liquid nitrogen, refrigerant R410A and seawater. In the process of liquid nitrogen, the liquid nitrogen in the storage tank is self-


SPECIAL REPORT

pressurized. It flows through regulating valve 26 before going into the low temperature heat exchanger 10. In the heat exchanger, liquid nitrogen gets heat from refrigerant R410A. Then the gasified nitrogen is discharged into the air. The gaseous refrigerant R410A in heat exchanger 10 condenses to liquid. The liquid flows into the cycling barrel 1 for short time storage. After being pressurized by pump 3, it flowsinto the flake ice machine, where refrigerant R410A absorbs heat from the warm seawater. The vaporized R410A leaves the ice-making bucket and flows back to heat exchanger 10, where it condenses to liquid again. The supplying seawater is pumped into ice-melting tank In the ice-melting tank, the seawater is cooled down while the produced ice melts. The seawater is then sent into the mixing tank, where it is further cooled by mixing with the water which has just washed the flake ice. The cooled seawater is drawn

by pump 18 from the mixing tank and sent to the top of the ice-making bucket system. The water is sprayed onto the inner wall of the ice bucket with the help of water distribution disk 20. The seawater is partially frozen when transferring heat to the cold R410A liquid. The unfrozen part of the seawater is concentrated with salt, and it is discharged out of the system. The ice on the wall is scraped down into the ice-washing chamber, where some of the salt contained in the ice is taken away by part of the produced fresh water. The ice is then sent into the icemelting tank, where it melts into fresh water with the heat from the supplying seawater. The fresh water is separated into two parts. The small part plays the role of washing water, and the large part is the product fresh water. Conclusions The prototype system found that, utilization of cold energy from LNG is allows for freeze

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desalination energy costs to be significantly reduced as it is normally extremely cheap or even free. The LNG cold energy utilization could reach an efficiency 2 kg of fresh water per kg of LNG. It was however found that the salt removal rate was only about 50%. Further cycles of freeze desalination or assisted reverse osmosis are required to produce potable water. While the foundation work has been done here, further work is still needed to take this novel use of LNG cold energy from prototype to actual realworld use. [1] “A Seawater Freeze Desalination Prototype System Utilizing LNG Cold Energy�, Wensheng Lin, Meibin Huang and Anzhong Gu, Institute of Refrigeration and Cryogenics, Shanghai Jiao Tong University, Shanghai, 2017.

NTM

By Ryan Pasupathy

Based On Research Paper By: Wensheng Lin, Meibin Huang, Anzhong Gu, Institute of Refrigeration and Cryogenics, Shanghai Jiao Tong University

Vol.31 Jul - Sep 2017 NGV Transportation


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FEATURE ARTICLE

A

recent issue of the Economist newspaper ran a feature article called “The death of the Internal Combustion Engine”. And let’s be frank - since news of the German diesel scandal (which really is a worldwide diesel scandal) broke, there is ever more momentum towards a world full of Electric Vehicles. Or so it would seem. Multiple cities have already declared to ban diesel altogether at some point in the not too distant future. France has announced a ban from 2040 onwards and other countries explore the option of following suit. Even in the US, the country that was taken out of the Paris accords by President Trump, there is a coalition of city and local politicians that are willing and able to press ahead with abolishing the combustion of hydrocarbons. Germany just had its meeting of auto-industry managers and officials called the Diesel summit and the world watched in disgust how auto companies got off lightly for cheating everyone. At the same time, not a day goes by with triumphant news on how much cheaper solar and wind are compared to anything else and some venerable institutions already see a Demand Peak for oil in the near future. Volvo has announced that they will go all electric by 2019 and even Ford has announced that their monster F-150 pickup and the iconic Mustang will be available in a hybrid version. And to top it all, Elon Musks wonder car, the model

NGV Transportation Vol.31 Jul - Sep 2017

THE INTERNAL COMBUSTION ENGINE is not dead, but it morphs 22


FEATURE ARTICLE

point of view. Gases produce less CO2 as their carbon chains are shorter but that is not the punch line. The real reason for the fundamental difference is the very nature of their combustion process. Liquid fuels such as diesel and gasoline have to be mixed with air in order to burn efficiently. Liquids, if left in a jar and ignited just burn on the surface and it’s not even the liquid that burns. The heat of the flame vaporizes and part of the fuel then mixes with air through convection making it a combustible mixture. In the combustion chamber of an engine, the fuel needs to burn instantly - in a flash - and not like a wooden log on the surface. As liquids burn only on the surface, the liquid must be converted in a mist that is mixed with air and then sucked into the combustion chamber where it burns.

3, was released to feast on the markets of those hydrocarbon dinosaurs. Is the Internal Combustion Engine really doomed then? Most of the journalists and commentators are not very specific on what they mean with the Internal Combustion Engine (ICE) so we must assume that they target all fuels that are combustible in principle. This would include all forms of diesel and gasoline as well as Autogas and Natural

Gas as fuels plus exotics such as DME, Methanol, and hydrogen if combusted instead of used in a fuel cell. A pretty broad brush by any standard and I have the feeling that many of those same officials have no idea that they are throwing out the baby with the bathwater. There is a fundamental difference between liquid fuels engines and gaseous fuels engines (both of them being ICE’s) from an environmental

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In the combustion chamber and after having been mixed with air, the fuel is still a liquid and not a gas. Which means that the fine mist which the fuel now is contains countless tiny droplets of fuel in the ambient air. That’s what a mist really is - droplets in the air. This increases surface which guarantees a much more instantaneous burn. It’s a finely tuned process by today that runs very efficiently but it has a nasty side effect. Those same droplets when they combust - still burn from the surface layer by layer until the residue forms a kernel. This incinerated kernel constitutes particulate matter which then moves through the exhaust treatment system. The

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FEATURE ARTICLE

combustion process happens in a fraction of a second but its nature is unaltered. Gas is very different here as there are no droplets. Ambient air is a gas, Natural Gas is a gas so those two substances just intermix as their aggregate state is the same. It’s a bit like mixing water with orangesyrup. Both are liquids so they form a homogenous liquid pretty rapidly. No droplet and hence no kernel. Enough science. What I want to say is that the differences between gas fuelled engines and liquid fuelled engines are almost as big as between electric vehicles and internal combustion engine vehicles. Liquid fuel engines and gaseous fuel engines are very different beasts - at least

NGV Transportation Vol.31 Jul - Sep 2017

from an environmental point of view. Diesel and gasoline engines are by their very nature not only much dirtier than Natural gas engines, they also produce some of the most potent toxins we find in our ambient air today. But let’s come back to the real world of everyday drivers. The diesel debate creates the impression that the whole transportation world consist of small personal vehicles only. However, most of the vehicle emissions today are produced by heavy vehicles such as trucks, buses, construction machines, waterborne vehicles and airborne vehicles as well as other high horsepower applications. Just imagine one of the

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above with a battery! Besides, Electric Vehicles still command a heft price premium and governments will not extend their lavish support once numbers swell as this will raid public coffers and fuel taxes constitute an important element in any states revenues. Governments will have to drop support and start to meaningfully tax EV’s in time. This means that the CAPEX premium EV buyers have to pay as compared to an ICE vehicle will take even longer than the assumed 8 years to amortize. EV’s start to look at the mass market as opposed to some very tech heavy, well heeled early adopters and show offs. And the masses care more about economics than cool factor. On this count, the EV still performs very badly. Pull subsidies out


FEATURE ARTICLE and adoption numbers drop abysmally. Norway, the country with the highest adoption rates, also pays the highest bribes to EV enthusiasts. China is going for massive gasification of their own transport system. They push the envelope on electrification as well but not for the big vehicles. No other country on earth puts that many gas vehicles in service. And China knows why it does so. Because gas is clean and because gas works just fine. No unsolved mysteries for a performance that’s pretty much equal to diesel. India also has a huge gasification program in place. The two biggest population centers on earth go for Natural Gas and even if the US gasification drive has somewhat slowed with cheaper liquid fuels, a lot of infrastructures have been built that will not be undone just because competing fuels are a bit cheaper now. However, let’s push this further - China not only goes for gasification of its domestic vehicle fleet. It also pushes the envelope on methane hydrates

and really wants to make Shale Gas and Coal bad Methane work. They go for domestic sources of fuel in the long run instead of the imported LNG or oil. This shows us how serious they are. Their real problem is smog and as Natural Gas engines don’t cause smog, they are just fine with them. The EV market is going to grow - massively so. But from a very low base and it’s going to stick in the corner of the small vehicle for a long while. Anything that’s bigger and that needs to go longer distances will have to stick with the internal combustion engine and the cleanest of all of them is the Natural gas engine. Natural Gas as a fuel can be rolled out quickly and without much of a change of behavior required from owners and drivers - and fleet managers. That’s important as one does not want to immobilize trucks and buses multiple times a day in order to charge the batteries. One fill per day and the fill shall not take more than 5 minutes. That’s what they are used to form diesel and that what they want from anything else. EV’s

RUDOLF HUBER

Rudolf is an entrepreneur and consultant active in the “methane based fuels and energy” industry. He is the founder of countless initiatives all with the aim to promote a methane based economy and affordable environmental protection. He is a professional business developer and negotiator who is involved in all aspects of the LNG business. He is also very actively promoting green technologies that work well with methane based technologies. Rudolf has helped secure first Regasification capacity for his former employer EconGas at the GATE terminal in 2007 and holds a Masters degree in Commercial and Taxation law from the Jean Monnet faculty in Paris. He also runs a number of blogs, among them www.lng.guru and www.lng.jetzt.

cannot deliver that. Diesel vehicles are produced in huge quantities so economies of scale kick in. Those same economies of scale will also hit the Natural Gas vehicle world once they go big. And as the Natural Gas engine is inherently simpler than the diesel engine and exhaust gas after-treatment is not really a big deal anymore, they must become cheaper than diesel vehicles in the long run as well. So, China and India are kicking the bucket - can we afford to sit on our hands doing nothing? Not quite. Natural Gas as a fuel has no lobby (or a very weak one) as it’s still lumped together with the fossil fuels such as diesel. It gets the bad name of diesel without deserving it. The Natural Gas industry has so far not really looked at the vehicle fuels market as a way to sell meaningful amounts of their stuff. However, with the current oversupply situation, they must find new markets if they are to survive. Not convinced? Then allow me to throw you another bone to chew on. Natural Gas engines can be emissions free. Yes, that’s right. If you use biogas or synthetic gas as a feedstock you are carbon neutral, there are no particulates to worry about and the small whiff of NOx can be canceled out by a simple threeway catalytic converter. Then it’s as strong, longdistance-beating, cheap and capable as a diesel engine while being as clean as an EV. And we can start this now. Deal?

NTM

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By Rudolf Huber

Vol.31 Jul - Sep 2017 NGV Transportation


SPECIAL REPORT

MODULAR EVALUATION AN EFFICIENT APPROACH TO OBTAIN AN MID APPROVAL FOR MEASURING INSTRUMENTS

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or manufacturers, the time to market for their measuring instruments can be crucial, particularly during massive and time-limited rollout programs, as are currently taking place for smart meters in several European countries. Typically, a considerable fraction of the time to market for measuring instruments is taken up by the MID approval process. A modular evaluation

NGV Transportation Vol.31 Jul - Sep 2017

approach, based on the employment of Evaluation and Parts Certificates for single parts, has great potential in efficient, cost-saving MID approval of complete measuring instruments. Measuring Instrument Directives In Europe the legal basis for measuring instruments is set in the Measuring Instrument Directives (MID) of the

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European Parliament, dating from February 2014. The MID covers the whole approval process, initial verification and putting into use of 10 different types of measuring instruments; for instance, electricity, gas, heat and water meters. Before a measuring instrument is brought to the European market, its compliance with the MID must be verified by a Notified Body in an extensive approval procedure.


SPECIAL REPORT

Figure 1: Part evaluation results in either an Evaluation Certificate (EC) or a Parts Certificate (PC).

Modular Evaluation Approach The MID describes the legal approval of complete measuring instruments. However, in practice most of today’s measuring instruments consist of several individual parts from

Figure 2: Modular evaluation approach offers benefits for all parties involved: saving of time and costs and increased trust in single parts.

different producers. This has led to the need for a modular evaluation approach of single parts that will allow efficient MID approval of complete measuring instruments. WELMEC (Western European Legal Metrology

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Cooperation), which aims to establish a harmonized and consistent approach to European legal metrology, has recognized the necessity of such a modular evaluation approach. One of its working groups has established the WELMEC

Vol.31 Jul - Sep 2017 NGV Transportation


SPECIAL REPORT Guide 8.8, which describes the approval of individual parts that perform a defined function inside complete measuring instruments. A part evaluation results in either an Evaluation Certificate (EC) or a Parts Certificate (PC). In fact, both documents are identical, except that a PC and the corresponding technical documentation can be used freely, whereas the use of an EC requires the permission of the owner. Benefits for All Players If a part has an EC or PC, it means that the essential requirements of the MID for this particular part are fulfilled. ECs and PCs of built-in parts can be used during evaluation of a complete measuring instrument. Only those aspects not covered by the EC or PC must be evaluated in order to obtain MID approval of the complete measuring instrument. The modular approval procedure offers many benefits for all players involved: in particular, savings in costs and time, since certain aspects of the MID, already covered by ECs and PCs of single parts, do not need to be repeated for the complete measuring instrument. In addition, it assures manufacturers that they are using a certified MIDcompliant part in their device. Example: Evaluation Certificate for Gas Meter Modules Sensirion has achieved an EC for its SGM70xx gas meter modules in accordance with the harmonized standard EN14236 and the normative document OIML R 137 for natural gas types H and L. The EC was issued by NMi, one of the leading Notified Bodies in Europe for type approval examination and certification of measuring instruments. The EC

NGV Transportation Vol.31 Jul - Sep 2017

Figure 3: Sensirion’s SGM70xx have achieved an Evaluation Certificate according to EN14236 and OIML R137 for H and L gas.

covers all metrological aspects of the MID for a microthermal gas meter. The EC enables easier MID approval for gas meter manufacturers that use the SGM70xx microthermal sensor module as the core metrological unit. The costs and time required for MID approval of complete gas meters are reduced significantly, which can result in valuable short time to market. Summary The modular evaluation approach, described in WELMEC guide 8.8, has great potential for efficient MID approval of complete measuring instruments. It can help to save costs and time since certain aspects of the MID, already covered by ECs and PCs of single parts, do not need to be repeated for the complete measuring instrument. Furthermore, it assures manufacturers that they are using a certified MIDcompliant part in their device. INTERVIEW WITH HENRI SCHOUTEN, SENIOR APPROVALS

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EXPERT AT NMI How long has the modular approach been used by NMi? NMi had invented the modular system before the MID was implemented; that is, before 2006 when the national legal systems were still in place in Europe. After the introduction of the MID, NMi encouraged the use of the modular approach, in conformance with the system laid down in WELMEC 8.8. I can honestly say that NMi is the Notified Body in Europe that issues the most Evaluation Certificates, but other European Notified Bodies also make use of the modular evaluation approach. It has become increasingly popular. Can every Notified Body issue an Evaluation or Parts certificate? In principle, yes, since an Evaluation or Parts certificate is not a legal document as such. However, once it is implemented in an EU-type examination certificate – in an MID approval – then it becomes legal. The modular approval is a voluntary system based


SPECIAL REPORT

Figure 4: Henri Schouten, Senior Approvals Expert at NMi

on a gentleman’s agreement among Notified Bodies. They can make use of Evaluation or Parts certificates to issue EUtype examination certificates for complete measuring instruments. Notified Bodies also have an agreement that they will accept only Evaluation and Parts certificates issued by Notified Bodies that also act as a Notified Body for a particular complete measuring instrument. What challenges have you experienced with the modular approach? We deal with parts producers that are sometimes not used to legal metrology. The moment they enter this world, more explanations are needed than if we collaborate with, for instance, meter manufacturers that typically are well aware of the legal aspects. Overall, the modular approach opens a lot of doors to new certifications and new connections between producers and manufacturers that can help to simplify collaboration. So, in our experience, the advantages of the modular evaluation approach clearly outnumber the challenges.

Figure 5: Moritz Mattmann, Product Manager Gas Metering, Sensirion AG

Is the modular approach the future trend? Yes, in my opinion the modular approach is really the future in several areas. Of course, there will always remain manufacturers of the total measuring instrument. In some areas, the modular approach does not have quite so many advantages – such as in the world of electricity meters. However, in the field of gas and volume conversion devices, it has a lot of advantages. This area has many different producers in various sectors; for instance, mechanics and electronics. And for gas meters, where we see gas meter measuring parts, indicator parts and pressure and temperature sensors, the modular evaluation approach is really interesting for all players involved. About Sensirion Sensirion is a leading manufacturer of high quality sensors and sensor solutions for the measurement and control of gas and liquid flows, humidity and temperature. Sensirion is an expert and innovative pioneer in microthermal gas metering, and its microthermal

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modules have been a largescale success in Europe. More than 500,000 Sensirion gas meter modules provide reliable and real-time monitoring of gas consumption in Europe. Founded in 1998, the company is based in Staefa near Zurich, Switzerland, and employs people in the US, South Korea, Japan, China, Taiwan and Germany. The headquarters in Switzerland is responsible for research, development and production. Millions of Sensirion’s sensor components and solutions are used all over the world, including in the smart energy, building technology, automotive and medical technology sectors. Sensirion’s success is based on the innovative CMOSens® Technology, which combines sensor and analysis electronics in a single semiconductor chip. Thus, large unit numbers can be produced at high quality and low cost. About Henri Schouten and NMi Henri Schouten has more than 20 years of experience with utility meters. He participates in a number of international working groups, including IEC, CENELEC and OIML. He is one of the authors of the OIML R 137 for gas meters. As a member of WELMEC 11, which interprets the MID for utility meters, he plays an important role as chairman of the gas meters subgroup. As Senior Approvals Expert at NMi, he is responsible for the implementation of standards and legislation required for the certification of utility meters.

NTM

By Dr. Moritz Mattmann

Vol.31 Jul - Sep 2017 NGV Transportation


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EVENT & EXHIBITION

2nd ANNUAL NATURAL GAS & CNG AFRICA FORUM 2017 EVENT REPORT

Developing Opportunities For A Cleaner Environment With A Sustainable CNG/ NGV Market In South Africa 12 July | Emperor’s Palace | Johannesburg, South Africa

F

or the second year running the natural gas and CNG Africa Forum took place in Africa. This year the event was held in Johannesburg, South Africa. The event was an amazing success and saw the coming together of key stakeholders from government agencies, transport and fleet operators, natural gas companies and CNG/NGV technology providers to discuss the challenges the natural gas industry is facing in South Africa. Welcome remarks were given by Omphi Aphane, Deputy Director General of Policy

Planning and Clear Energy of the Department of Energy South Africa. He opened the event speaking about the natural gas outlook and utilization for transport in South Africa. Omphi’s presentation was focused on the transport issues that South Africa is facing. It was made clear that the large 4.4 million population of Johannesburg is spread over a large area of about 2700 square Km. This type of urban spread means that most areas have a low density of people which requires them to travel a lot to get from one place to another.

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This results in a large percentage of household earning to be paid towards transportation costs. He mentioned that South Africa has been taking steps in moving towards an affordable greener fueled transportation system. They are currently working working on converting more buses of the Johannesburg’s public transport fleet of which 30 buses currently run on diesel dual

Vol.31 Jul - Sep 2017 NGV Transportation


EVENT & EXHIBITION

fuel with a capacity for 30/70 diesel/gas application. Carel Synman, was next to take the morning stage and presented on the updates and future look of natural gas vehicles in South Africa. Carel is the Senior Manager at the South African Energy Development Institute (SANEDI). Carel spoke firstly about SANEDI’s Cleaner Mobility Programme which has its focus on finding sustainable energy solutions for transportation in South Africa. Their objectives are to move away from paying forex for imported energy, reduce energy consumption and emissions like CO2, develop local energy supply and stimulate local industrial development. Carel explained that currently South Africa’s

NGV Transportation Vol.31 Jul - Sep 2017

energy supply is very reliant on coal – about 67%. Only about 2% of the country’s energy needs come from natural gas. It was also mentioned that natural gas is significantly cheaper in South Africa compared to other fuels such as LPG, gasoline and diesel and should prioritized. The last of the morning session talks, was given by Tommy Svensson of Landi Renzo who spoke on vehicle conversion and Landi Renzo’s expertise in conversion. He explained that the global car market will be impacted by environmental protection awareness, the development of new technologies, GDP growth in developing countries and the cost of ownership and changing consumer habits. He said that these factors will contribute

34

significantly to a mindset switch over to cleaner fueled vehicles in the near future which creates the potential of a huge market for LPG and CNG conversion. Resuming sessions after lunch was Andri Hugo, CEO of Novo Energy who gave a presentation on Novo Energy’s experiences in establishing a CNG industry in South Africa can Mozambique. He explained that Novo Energy has 22 years of CNG and NGV experience in South Africa and have also been behind the establishment of more than 12 CNG refueling stations. The company entered the CNG market in Mozambique in 2005 in its capital city – Maputo. The company has successfully developed an eco-system of NGV minibus taxis which amount


EVENT & EXHIBITION

to more than 3000 today. He covered numerous other projects that Novo has completed and indicated the company also has significant experience in biogas for transportation. He then went on to explain that through their experience, Novo has broken down the key drivers for NGV markets to be the source of energy, the business environment and the economics. He mentioned that it was also found that key success determinants of success were highly dependent on government support and benefits to stakeholders. He also noted that it was necessary for the various challenges faced such as; awareness and education, safety, the refueling network, CNG sales price, gas supply, availability

of skilled workers and vehicle conversion costs were issues that had to be dealt with and then overcome in order for the industry to succeed in any given market. Following that was a presentation by Filippo Munna of Mobile Pipeline at Hexagon Lincoln who spoke on the benefits of lightweight composite cylinders for automobile and mobile pipelines. It was explained that composite cylinders could be used to store CNG up to a pressure of 200 bar for anything from light vehicles to rail transport systems. The composite cylinders, through their extreme lightweight design also allow for optimal use of space and their transport modules offer the highest possible transport volumes in the world. Composite

35

cylinders are already being used in South Africa in the Metrobus Dual Fuel CNG Gauteng Project. Eddie Cooke, Director of the South African Gas Association was next to present on renewable natural gas as clean and sustainable fuel for transport. Eddie’s presentation focused on the importance of biogas and its potential to be used as compressed biogas (CBG) for transportation. It was SAGA’s view that the natural gas supply in South Africa is limited by it’s pipeline network whereas biogas is available via biomass in large amounts all over the African continent. He also felt that the technology is already present to produce CBG from biogas and that it is a renewable and environmentally friendly vehicle

Vol.31 Jul - Sep 2017 NGV Transportation


EVENT & EXHIBITION

fuel alternative. He said that there are challenges that needed to be overcome, such as the lack of awareness and the need for complex administrative processes for project development and authorization of CBG projects, on top of a lack of dedicated financing options for such projects and the absence of a skilled labour force. Opening for final session, Mark Templeton of Scania South Africa spoke on Sustainability for South Africa. Mark explained that majority of CNG in South Africa is brought into the country via the Sasol/Mozambique pipeline with some shale gas and other low volume CBG deposits. On top of this, there are only 4 main distributors in the local market (CNG Holding, Nova Gas, SpringLight and Renergen). This has presented a unique opportunity for CBG in the country, he says. Combined with the paradigm shift away from diesel to cleaner fuels, there is huge market potential from the 824 waste treatment plants in South Africa of which there are 300 small scale digesters. Mark also went on to say that despite the potential it is essential to find the right supply partner with regards to fuel and network

NGV Transportation Vol.31 Jul - Sep 2017

infrastructure which can make or break any project venture. Stephen Rothman, Managing Director of CNG Holdings, then gave a presentation on developing CNG in South Africa. He said that there are numerous fleet and industrial applications that could be tapped through further development of CNG network infrastructure. This includes development of standalone filling stations as well as retrofitting of existing petrol stations. This would in turn allow for more people realizing the benefits of converting to CNG and leading to eventual job creation, skills and development transfer and the overall development of a much larger CNG industry in South Africa. Leading up to the end of the conference, Joao Das Neves, General Director at Autogas SA Mozambique, spoke about the utilization for gas for transport in Mozambique. Joao explained that Mozambique is becoming a large producer of natural gas with about 5 tcf in Buzi and Temane and another 200 tcf in Bacia do Rovuma. These vast amounts of reserves have given rise to CNG development in Mozambique which started

36

in 2010. Currently there are 6 natural gas filling stations in the Maputo and Matola with another 6 CNG conversion centers which support a fleet of 2100 vehicles which include 153 municipality buses. There are also another 3 new filling stations on the way which will be completed in 2017 – 2018. Joao also mentioned that petrol and diesel prices in the country are also becoming unaffordable, making natural gas seem ever more attractive. Combined with an interested government who has reduced their subsidies and set a target for 5% of total vehicles in Mozambique to be run on natural gas (this amounts to about 60,000 vehicles) by 2025, the potential for growth of the industry in the country looks immense. Ending off the last session was Vusimuzi Zwane, Managing Director of the National Energy Regulators of South Africa (NERSA), who spoke on licensing of CNG and biogas in South Africa. Vusimuzi gave a breakdown of how the upstream, midstream and downstream sectors of the industry are linked and how they operate. He explained that NERSA’s role was in overseeing licensing, registration of business activities, transmission and storage tariffs and regulating the maximum prices for distributors. He went through the various items that were required for registration and licensing applications while noting several challenges that are faced such as a lack of adequate local gas resources, the fact that the industry is dominated by a single dominant supplier – SASOL, current gas infrastructure capacity is inadequate for many areas and that there is limited access to financing for projects.

NTM

By Ryan Pasupathy


ANALYSIS OF NATIONAL POLICIES AND ITS POTENTIAL IMPACT ON

NGV GROWTH IN THE CZECH REPUBLIC Superior Growth The Czech Republic, or the region formerly known as Czechoslovakia has been pressing on the NGV scene by force. In a span of about just 10 years the country has increased its road usage of natural gas by more than 40 times. Pumping their road vehicles with CNG has been an objective of the Ministry

of Environment in the Czech Republic for quite some time and they have taken matters into their hands to reduce air pollution one way or another. The government already has in place under their National Action Plan that provides benefits for CNG vehicles such that they have zero road tax, availability of cheap CNG

CNG seller with most CNG refuelling station

No. of public CNG stations in CZ

(about half the cost of petrol) and they are allowed entrance to environmental zones in city centers. The ministry’s goals were carried out under the ‘LVII Alternative Transport’ in line to fulfil the objectives for CNG targets that were laid out in the EU Directive on alternative fuel infrastructure.

CNG consumption in 2015 (thousand m3)

Bonnet Gas Investment

18

6419

RWE Energo

13

5141

E.ON Energie

14

2647

Pražskáplynárenská

5

2248

Vitkovice Machinery Group

17

2245

VEMEX

15

2039

Total

20766

Selected CNG sellers (The Czech Gas Association corporate members) Credit to: http://www.cng4you.cz/en/cng-info/press-release.html

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Vol.31 Jul - Sep 2017 NGV Transportation


250,000 CNG vehicles by 2030. The Czech Gas Association has also been a huge supporting body throughout the country’s explosive NGV growth and have been holding a yearly gas conference that brings together thought leaders from all the major stakeholders together to discuss the direction of the industry. The conferences help facilitate dialogue between the government and private sectors so that all parties may benefit and the whole industry move towards meeting the objectives set out by the EU for the region.

CNG sales in the Czech Republic (in thousand m3) Credit to: http://www.cng4you.cz/en/cng-info/press-release.html

Government Action The main boost for the sector has come due to to a €40 million subsidy scheme offered by the Ministry. Various cities in the Czech Republic were targeted and local public operators were given the opportunity to submit tenders for upgrading projects. The scheme supported the conversion of public transport vehicles whereby old buses are swapped out for new CNG ones. Majority of the funding from this came from the EU Cohesion Fund. The result of this scheme was that in 2014-2015, the number of CNG vehicles grew by 4000 during this period

NGV Transportation Vol.31 Jul - Sep 2017

reaching a total of 13000 NGVs in total. This was a growth spurt of 47% from year to the next which represented the country’s highest ever growth of NGVs in a single year. Of these, about 880 vehicles are public transport buses in 45 separate towns. The subsidy scheme also included the construction of new filling stations of which 25 new stations were added that year take their total to 110 CNG filling stations across the country. It is estimated that continuing in the current manner would result in a boom to around 300 CNG stations in the country and more than

40

All the Right Ingredients The Czech Republic has done a superb job at growing their NGV industry. It would appear that the Czechs have studied in detail what paves the way for successful growth of NGVs and exactly what needed to be done to get there. The government made itself committed to follow through with the EU directives to reduce its emissions and then laid out plans to achieve the end goal. By making available subsidies, developing supporting infrastructure, ensuring a competitive fuel price and establishing private supporting associations; all the perfect ingredients for success were there. Where many other countries fall off, the Czech Republic has stood strong and achieved in 10 years what many other take much longer to do. Meticulous in their actions and undying dedication to the cause are two must have values to keep an industry headed toward it’s intended destination. It’s truly wonderful to see something like this unfold and it’s inspiring to see what can be accomplished when something is done extremely well.

NTM

By Ryan Pasupathy


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