{"id":158785,"date":"2024-05-26T16:10:00","date_gmt":"2024-05-26T20:40:00","guid":{"rendered":"https:\/\/inspenet.com\/?p=158785"},"modified":"2024-05-24T22:47:50","modified_gmt":"2024-05-25T03:17:50","slug":"natural-gas-supply-liquid-gas-supply-agreement","status":"publish","type":"noticias","link":"https:\/\/inspenet.com\/en\/news\/natural-gas-supply-liquid-gas-supply-agreement\/","title":{"rendered":"Company Partners with Shell for Liquefied Natural Gas Supply"},"content":{"rendered":"\n

ArcelorMittal Nippon Steel (AMNS), a prominent steelmaker in India, has signed a liquefied natural gas (LNG)<\/strong> supply contract with Shell that will run for 10 years<\/strong>. LNG deliveries will begin in 2027, sources close to the deal said.<\/p>\n\n

Hazira receives 500k tons of liquefied natural gas<\/h2>\n\n

Under the terms of the contract, AMNS’s direct-reduced iron ore (DRI) plant, located at Hazira in the state of Gujarat, will receive 500,000 tons of LNG annually<\/strong>. The Hazira plant has a crude steel production capacity of 8.8 million tons per year, with up to 65% of this capacity based on direct reduction iron (DRI) technology.<\/p>\n\n

AMNS also holds a supply contract with TotalEnergies for a similar amount of LNG, which expires in 2026. The signing of this new agreement with Shell comes at a crucial time, as AMNS is in the process of expanding its steel production capacity to 20 million tons per year over the long term. This contract highlights a growing trend in the global steel industry towards the use of cleaner energy for steel production, commonly referred to as “green steel”.<\/p>\n\n

Currently, AMNS imports up to 75% of the 1.72 million tons of natural gas it imports. \n natural gas <\/a>\n<\/strong>of natural gas it needs annually, according to an internal source. The agreement signed with Shell sets a price based on 11.5% of Brent crude oil prices, which represents the lowest slope on record for a long-term LNG supply contract in India, trading companies reported.<\/p>\n\n

AMNS launches LNG tender for 2027<\/h2>\n\n

\n AMNS<\/a>\n<\/strong> launched a tender in mid-March to secure an LNG supply for a period of 5 to 10 years starting in 2027. The last time the company sought a long-term contract was in 2022, when it bid for 400,000 tons per year of LNG to be delivered between 2025 and 2030.<\/p>\n\n

Despite the decline in spot prices, Indian importers continue to seek long-term contracts to mitigate risks in a market that is still considered volatile. According to trading firms, the Argus price for LNG deliveries to India was assessed today at $11.50\/mn Btu, compared with $10.16\/mn Btu the previous week. In August 2022, this price peaked at $48.30\/mn Btu.<\/p>\n\n

The company has managed to reduce its carbon emissions by 32% by 2022 compared to 2015 levels, demonstrating its commitment to sustainability.<\/p>\n\n

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Source: argusmedia<\/a><\/strong><\/p>\n\n

Photo: Shutterstock<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

AMNS’s Hazira plant will produce steel with up to 65% of its capacity based on direct iron reduction technology.<\/p>\n","protected":false},"author":9014,"featured_media":158309,"menu_order":0,"comment_status":"open","ping_status":"open","template":"","meta":{"_acf_changed":false,"_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"footnotes":""},"categoria_noticias":[13026,13036],"etiqueta_noticias":[],"class_list":["post-158785","noticias","type-noticias","status-publish","has-post-thumbnail","hentry","categoria_noticias-energy","categoria_noticias-oil-and-gas"],"acf":[],"_links":{"self":[{"href":"https:\/\/inspenet.com\/en\/wp-json\/wp\/v2\/noticias\/158785","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/inspenet.com\/en\/wp-json\/wp\/v2\/noticias"}],"about":[{"href":"https:\/\/inspenet.com\/en\/wp-json\/wp\/v2\/types\/noticias"}],"author":[{"embeddable":true,"href":"https:\/\/inspenet.com\/en\/wp-json\/wp\/v2\/users\/9014"}],"replies":[{"embeddable":true,"href":"https:\/\/inspenet.com\/en\/wp-json\/wp\/v2\/comments?post=158785"}],"version-history":[{"count":0,"href":"https:\/\/inspenet.com\/en\/wp-json\/wp\/v2\/noticias\/158785\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/inspenet.com\/en\/wp-json\/wp\/v2\/media\/158309"}],"wp:attachment":[{"href":"https:\/\/inspenet.com\/en\/wp-json\/wp\/v2\/media?parent=158785"}],"wp:term":[{"taxonomy":"categoria_noticias","embeddable":true,"href":"https:\/\/inspenet.com\/en\/wp-json\/wp\/v2\/categoria_noticias?post=158785"},{"taxonomy":"etiqueta_noticias","embeddable":true,"href":"https:\/\/inspenet.com\/en\/wp-json\/wp\/v2\/etiqueta_noticias?post=158785"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}