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hence, many nations want to increase the proportion of gas in their energy mix. Its percentage of the energy mix is expected to rise from slightly over 23% in 2021 to almost 24.5% in 2045. After 2030, gas will overtake coal as the second-largest source of fuel.

In 2021, following a decline of approximately 4.5% in 2020, the demand for coal increased by over 3%, as the post-pandemic recovery raised energy consumption. In addition, rising crude oil prices in 2021 encouraged a transfer from crude oil to coal in the electrical industry in numerous regions, including the OECD Americas,

World liquid fuel consumption (million barrels per day) and Europe. Coal is widely seen as a readily available and low-cost baseload fuel, but its demand has been under pressure due to environmental and climate change policies that aim to phase out coal in favor of cleaner energy sources.

The worlds consumption of liquid fuels is projected to increase from 99.4 mb/d in 2022 to 100.9 mb/d in 2023. Upward revisions to global economic growth are primarily responsible for the increased consumption expectations. In 2023, it is anticipated that China will account for roughly half of the growth in global liquid fuel consumption. In 2023, Chinas consumption is expected to climb by 0.7 mb/d. It is expected that Indias consumption will increase by 0.2 mb/d, while non-OECD consumption will increase by an average of 0.5 mb/d. OECD consumption remains largely unchanged as the consequencesofinflation continue to constrain GDP and oil demand growth. It is anticipated that worldwide liquid fuel consumption will rise by 1.8 mb/d in 2024, with non-OECD nations accounting for 1.6 mb/d of the growth. However, there is a lot of uncertainty around the demand estimate since there is a broad range of probable outcomes for both the global economic circumstances this year and the travel and oil demand in China, after it shifted away from a zero-COVID goal.

The average global production of liquid fuel is projected to increase by an average of 1.6 mb/d in both 2023 and 2024. Despite upward adjustments to the global liquid fuel demand forecast, sustained global oil inventory buildup over the forecast period is still projected as global oil production continues to exceed consumption.

Global oil inventories will continue to increase throughout the forecast period; however, the high demand for crude oil from refineries due to elevated refining margins is expected to limit downward pressure on crude oil prices as refiners maintain high crude input levels to maximize distillate fuel production. Russia was an important supplier of distillate fuel to

Europe, but changes in distillate trade flows resulting from Europes lower imports of Russian distillate in recent months have kept distillate fuel margins substantially above their five-year averages. The Brent crude oil spot price is expected to decline from an average of US$ 101/b in 2022 to an average of US$ 85/b in 2023, and then to an average of US$ 81/b in 2024.

The global natural gas market experienced a significant shock in 2022 when Russia significantly lowered pipeline deliveries to Europe, resulting in unprecedented supply strain and a global energy crisis. Despite this, European countries were able to fill their underground gas storage sites substantially above historical averages, thanks to a combination of targeted policy initiatives, a record of liquefied natural gas (LNG), and a sharp decline consumption, especially in energy-intensive businesses. Russias pipeline shutdowns had repercussions for gas-consuming nations outside of Europe, resulting in record-high market prices, supply concerns, and a significant decrease in demand.

Global natural gas markets tightened further, despite global consumption falling by 1.6% in 2022.

Consumption is projected to stay steady in 2023, although the outlook is subject to a high level of uncertainty, particularly in terms of Russias future activities and the economic consequences of shifting energy prices.

Europes gas demand decreased by 13% as governments moved swiftly with emergency programs, industry trimmed back production, and consumers turned down their thermostats. Moreover, milder winter weather conditions reduced the requirement for space heating. Due to high liquefied natural gas (LNG) prices,

COVID-related interruptions in China, and continuously warm weather in northeast Asia, gas demand in Asia decreased by 2%.

During 2022, natural gas prices reached all-time high levels in Asian and European markets amid tight market conditions. Record high price levels were accompanied by excessive volatility and egion was 8%short-term price lowervariability. than anticipated In the United States, Henry Hub prices averaged US$ 6/MBtu in 2022, their highest level since 2008. Higher gas demand for power generation (supported by a sharp increase in coal prices) coincided with strong y-o-y growth in LNG exports and a relatively weak supply response from US producers. Gas prices moderated significantly in January 2023 across all key gas markets, although they remained well above historic averages in Asia and Europe.

In 2022, the global LNG trade grew by 5.4%, a growth rate that was slightly lower than in 2021. Europe led the growth in LNG imports in 2022 with a sharp 63% increase, compensating for a substantial decline in Russian pipeline gas imports. In the meantime, demand in the Asia-Pacific region was 8%

Due to sluggish economic growth and COVID-related disruptions, Chinas imports decreased by 21%, the steepest annual decline in absolute and percentage terms since the beginning of LNG imports in 2006.

LNG was a notably dynamic sector in 2022, when the value of LNG trade reached a record high of US$ 450 billion, doubling from the year before. Volumes traded increased by 5.5%, slightly slower than in 2021, highlighting once again the distorting effects of steep increases in energy prices on global economic activity. Europe was the primary generator of the increase in LNG demand as it shifted away from Russian pipelines. In 2022, deliveries of LNG to Europe increased by 63%.

LNG exports from North America increased by 11% in 2022 as a result of new liquefaction capacity additions and despite the extended outage at the Freeport LNG terminal in Texas since June 2022.

In 2022, Europe increased LNG imports by a sharp 63%, compensating for a substantial decline in Russian pipeline gas imports. In the meantime, demand in the

Asia-Pacific

Due to sluggish economic growth and COVID-related disruptions, Chinas imports decreased by 21%, the steepest annual decline in absolute and percentage terms since the beginning of LNG imports in 2006. Despite a modest 3% decline in LNG imports in 2022, Japan was once again the worlds largest LNG importer. In 2022, Korea imported the same quantity of LNG as in 2021.

In contrast, price-sensitive South Asian importers experienced significant declines: India and Bangladesh each saw a 17% decline in LNG imports, and Pakistan saw an 18% decline as high and volatile spot LNG prices depressed demand. Despite the high price environment,. Malaysia (up 45%), Thailand (up 28%),

Singapore (up 22%), Indonesia (up 6%), and Chinese Taipei (up 4%) all saw increasing LNG imports, which were fueled by strong power demand and economic activity and in some cases by declining domestic and pipeline gas supply. As a result of the recovery of hydroelectric reservoir levels following the historic drought of 2021, LNG imports in Central and South America decreased substantially by 38%. Imports of LNG into Brazil decreased by 72% compared to 2021.

Russias LNG exports grew by 10% in 2022, and approximately 43% of Russias LNG output landed in the European Union, as compared to 35% in 2021. It was in stark contrast to the decreasing trend in Russia-EU pipeline flows. Norways LNG exports returned to 2020 levels in 2022. Africa was the only exporting region whose output declined in 2022 by 6%.

The volume of global LNG trade is projected to increase by 4.3% in 2023. A rise in European imports to an all-time high of 180 bcm (billion cubic meters) due in part to new import infrastructure and a modest recovery in Asia following the regions demand decline in 2022 are driving the expansion of LNG demand.

As per the Gas Market Report for Q1 2023, oil prices reached their highest level since 2013 due to heightened geopolitical uncertainty and tightening supply. This, in turn, exerted upward pressure on oil-indexed LNG contract prices, which increased by 70% in 2022 to an estimated average of US$ 15 per million British thermal units. Consequently, the value of LNG traded under long-term oil-indexed LNG contracts rose by 90% to an estimated US$ 220 billion, accounting for approximately 60% of global LNG trade. Russias steep

Europe drove LNG import growth and North America led LNG export growth in 2022, a pattern expected to continue in 2023 supply cuts to the European Union drove European hub prices, and indirectly, Asian spot LNG prices to all-time highs in 2022. Asian spot LNG prices averaged US$ 34/MBtu in 2022, their highest level on record and more than five times their five-year average during 2016-2020.

The growth of US shale production and capital expenditures in 2022 is driven by the corporations construction and utilization of an integrated infrastructure. Natural gas production from oil-driven shale fields benefited from the estimated 620 kb/d increase in tight oil production in 2022. In the Permian

Basin, the largest associated gas-producing shale field and the second largest gas-producing basin after the Appalachian, daily average tight oil production increased by 14% in 2022, while associated natural gas production increased by 17% during the same timeframe. In 2022, drilling activity in the Permian Basin increased by 50% year-on-year, with the number of wells drilled increasing from 341 in January to 432 in December 2022. The monthly well completion rate remained above the number of wells drilled, resulting in a reduction of drilled but uncompleted wells from 1,381 in January 2022 to 1,061 in December 2022. The increase in the average gas-to-oil ratio (GOR) of Permian production was a result of a shift in drilling activity to Permian Basin regions with increased associated gas content.

The oil and gas industry forms one of Indias eight essential industries and has a significant impact on the economic decisions of all major sectors. The demand for oil and gas is expected to increase due to the correlation between Indias economic growth and its energy demand, making the sector quite attractive for investment. India maintained its position as the worlds third-largest energy consumer as of 2022.

With geopolitical and financialuncertainties anticipated in the next few years, oil and gas companies have been securing supply in the near term. On the basis of sustained, robust economic development, Indias energy demand is projected to grow faster than that of all other major economies worldwide. Indias primary energy demand is expected to nearly double to 1,123 MMT of oil equivalent, as Indias gross domestic product (GDP) is expected to increase to US$ 8.6 trillion by 2040.

The total crude oil and condensate output in India declined by 1.7% in FY23 to 29.2 MMT (million metric tons) compared to 29.7 MMT recorded in the same period previous year. India imported 232.4 MMT of crude oil in FY23, up from 212.4 MMT in FY22, an increase of 9.4% due to an increase in imports of all products except lubes/LOBS, fuel oil (FO), bitumen, etc. Crude oil imports from OPEC countries dropped to 59% of overall imports in FY23, down from 72% in FY22. During FY23, crude oil was imported mainly from the Middle East (55.3%), Africa (7.6%), North America (7.4%), South America (2.6%), and Eurasia (26.3%). In FY23, Indias consumption of petroleum products reached a new high, demonstrating robust demand for transportation fuels and other refined products.

Crude oil consumption witnessed a growth rate of 5.6%, growing from 241.7 MMT in FY22 to 255.2 MMT in FY23.

Natural Gas is used as a feedstock in a number of industries, including the production of fertilizers, polymers, and other commercially significant organic compounds, as well as a fuel for the production of electricity and heating in industrial and commercial buildings. Natural gas is also used for cooking and as a vehicle fuel in households. The overall gross natural gas production of 34,450 mmscm (million metric standard cubic meters) for FY23 was 1.3% higher than the corresponding period last year.

Indias natural gas consumption decreased by 6% in FY23 as rising prices dampened demand for gas in power generation, refineries, and the petrochemicals industry. Consumption in the fertilizer segment and other end uses, including agriculture, upstream operations, and other industries, grew modestly in 2022, but not nearly enough to offset the steep declines in the more price-sensitive sectors of the economy. The total natural gas consumption was 60,311 mmscm during the year under review, as compared to 64,159 mmscm recorded in FY22.

City Gas Distribution (CGD) is expected to be a growth driver for gas demand. After completion of 11 A CGD bidding round, 295 Geographical Areas (GAs) covering about 98% of the population and 88% of total geographical area of the country spread over around 630 districts in 28 States/UTs including all cities under these GAs, have been covered under the CGD network.

Indias imports of LNG have declined due to rising prices, both before and after Russias invasion of Ukraine. Cumulative LNG imports fell 14.1% YoY in FY23 to 26,647 million metric standard cubic meters (mmscm). Indias demand for LNG imports declined significantly due to high spot LNG prices and increasing domestic supply. The decline in LNG demand occurred in price-sensitive industries such as power and refining, where users can easily shift to cheaper alternative fuels. However, these sustained price levels have begun to impact demand in other industrial sectors where transitioning is a costly and time-consuming process.

According to the IEEFA (Institute of Energy Economics and Financial Analysis), in 2023, India plans to operate 12.5 GW of peaking gas units as part of a special program in which a state-owned gas Company will purchase gas supplies in advance. India is actively seeking new long-term LNG supply contracts with an array of suppliers. Globally, however, there are a limited number of long-term LNG supply contracts commencing before 2026. Existing contractors are unable to increase supplies in the short term; therefore, incremental growth in LNG demand may have to come from volatile spot markets until then.

Gas pipeline infrastructure is an economical and safe mode of transporting natural gas by connecting gas sources to gas-consuming markets. The gas pipeline grid determines the structure and growth of the gas market. To assure the adequate availability and equitable distribution of natural gas throughout the country, a National Gas Grid with interconnections has been envisioned.

The overall authorized length of natural gas pipelines as of December 2022 is 33,131 km, of which 12,002 km are under construction. Several new pipelines are planned, like the Kochi–Koottanad–Bangalore–Mangalore Phase II project, which is expected to commence operations in 2025 and will be owned by GAIL.

As of April 2023, India had 10,420 km of crude pipeline with a capacity of 147.9 million metric tons per year (mmtpa). Indian Oil Corporation Limited (IOCL) controls 50.8%, or 5,301 km, of the length of Indias petroleum pipeline network. To meet the market demand in Karnataka fed areas, BPCL is constructing a pipeline to meet the demand from its existing terminal at Irugur (Coimbatore). The pipeline shall originate from the existing pipeline receipt cum pumping station at Irugur to Devangonthi in the state of Karnataka.

U.S. crude oil production reached record highs, and production of natural gas and petroleum, and other liquids is rising amid growing demand for exports and industrial uses. Crude oil output in the U.S. is expected to average 12.53 mb/d in 2023, as compared to 11.9 mb/d in 2022. The EIA (U.S Energy Information Administration) expects crude oil production to reach 12.7 mb/d in 2024.

Short-term EIA – energy outlook May 2023, report estimates that the countrys dry gas production will reach 101.1 billion cubic feet per day (Bcf/d) in 2023 and 101.2 Bcf/d in 2024, up from a record-setting 98.1 Bcf/d in 2022. More pipeline infrastructure expansion projects have been scheduled, and these projects are expected to contribute to increases in dry natural gas production.

In 2023, U.S. Federal Offshore Gulf of Mexico (GOM) marketed natural gas production will average 2.3 Bcf/d, while in 2024, it will average to 2.1 Bcf/d. The associated natural gas production from new natural gas fields is anticipated to offset a portion of the production declines from aging natural gas fields. Seven projects are anticipated to come online in the GOM in 2023 and 2024. These new initiatives would contribute 6% of the total natural gas output.

Natural gas consumption in the U.S. is expected to average 87.5 Bcf/d in 2023, as against 88.5 Bcf/d recorded in 2022, due to mild winters and recent low natural gas consumption in the residential and commercial sectors.

A rise in U.S. LNG exports has been anticipated due to high global demand, as LNG continues to replace natural gas pipeline exports from Russia to Europe. Mild winter temperatures and above average storage have resulted in lower LNG prices so far this year, which could be an incentive for price-sensitive Southeast Asian nations to import more LNG. In 2023, U.S. LNG exports is expected to average at 12.1 (Bcf/d), an increase of 14% (1.5 Bcf/d) over last year. An increase of an additional 5% (0.7 Bcf/d) in LNG exports has been anticipated in 2024.

The restoration to service of the Freeport LNG export terminal and the commissioning of new LNG export projects by the end of 2024 would support the anticipated increase in exports. In 2023 and 2024, U.S. natural gas exports via pipeline are anticipated to increase by 0.5 Bcf/d, primarily due to increased exports to Mexico. A number of new pipelines in Mexico, including Tula-Villa de Reyes, Guaymas-El Oro, the Mayakan pipeline on the Yucat?n Peninsula, and a few minor interconnects, are scheduled to become operational by 2024. To supply the proposed floating liquefaction (FLNG) project off the east coast of Mexico, an increase in exports via the Sur de Texas-Tuxpan underwater pipeline has also been anticipated.

Rising global demand for natural gas is a growth opportunity for US LNG producers but delivering on the opportunity will depend on timely construction of natural gas pipelinet quarter of 2023 due to higher-than firs infrastructure to support new US LNG supplies. The Biden administration gave a green light for the 300-mile Mountain Valley Pipeline to run through the Jefferson National Forest. With a vast supply of natural gas from Marcellus and Utica shale production, the Mountain Valley Pipeline is expected to provide up to two million dekatherms per day of firm transmission capacity to markets in the Mid- and South Atlantic regions of the United States.

LNG imported into Central America and the Caribbean from October 2022 to February 2023 nearly doubled thanks to increased imports into Jamaica and Panama. During the period from October 2022 untill March 2023,

States increased by 30% (or LNG nearly 10 bcm) YoY to account for over 45% of Europes additional LNG supply. This further strengthened the United States position as Europes largest supplier, supplying over 40% of the regions total LNG imports and nearly 15% of its gas demand.

In 2022, Canadas gas consumption increased by close to 7%. Both residential, commercial, and wholesale customers including large industry and electricity generators, contributed to this growth. The transition away from coal in the generation of electricity has progressively increased the demand for natural gas.

The winter season began with an increase in residential and commercial natural gas consumption due to below-average temperatures, but this trend reversed average inthe temperatures and with the onset of summer season.

The natural gas consumption in the Middle-East would increase to 588 bcm in 2023 from 575 bcm as witnessed in 2022, thereby growing by 2%, primarily led by demand growth in Iran and Saudi Arabia. Natural gas production is expected to grow to 727 bcm in 2023 from the 712 bcm recorded in 2022.

Iran is expected to lead the Middle East in oil and gas trunk/transmission pipeline additions between 2022 and 2026. By 2026, natural gas and product pipelines will account for the vast majority of pipeline additions in Iran. The Iranian Gas Trunk line–IGAT XI is the main upcoming pipeline for transporting natural gas, with a total length of 1,200 km. More than 90 pipelines in Iran account for 35% of the total active (operational) trunk/ transmission pipeline length in the Middle East. As one of the foremost oil and gas producers in the region, the nation has constructed a robust transmission pipeline network. It is now planning to construct gas and petroleum product pipelines to meet both domestic and international demand.

Saudi Arabia had the highest annual growth rate among the worlds 20 biggest economies in 2022, according to the latest data from OECD and has plans for a huge growth in infrastructure projects. Presently, Saudi Arabia accounts for approximately 15% of the length of the Middle Easts 84 active pipelines. From 2022 to 2026, seven planned and announced initiatives would add 1,559 km to the length of the nations pipelines. These pipelines assist the nation in increasing its hydrocarbon and gas production. Saudi Arabia is expanding its "maximum sustainable" oil production capacity to 13 million bpd by 2027. In this regard, Saudi Aramco is greatly expanding the capacity of its offshore oilfields, which is a crucial element of its strategy to boost the countrys oil production. Its own capital expenditure this year is expected to be between US$ 45 billion and US$ 55 billion, with capex increasing through the decade.

Turkeys 45 pipelines account for approximately 14% of the Middle Easts active pipeline length. From 2022 to 2026, three natural gas pipelines totaling 620 km would be constructed, with two serving domestic demand and the remaining Igdir–Nakhchivan pipeline serving exports to Azerbaijan.

Iraq is one of the largest contributors to the active pipeline length in the Middle East, with an 11% share of 17 active pipelines. From 2022 to 2026, three proposed and announced initiatives are anticipated to add a total of 358 km. All three are primarily export-oriented hydrocarbon pipelines.

Other notable contributors to the active pipeline length in the Middle East include the United Arab Emirates with a 7% share, Oman with a 6% share, and Qatar with a 4% share. From nine upcoming pipelines, these nations are expected to contribute a total of 2,249 km of pipeline length.

During the period from October 2022 till March 2023, pipeline gas deliveries from North Africa decreased by

8%, or 1.4 bcm YoY, with flows to Iberia decreasing by 25%, or 1.3 bcm and flows to Italy remaining relatively unchanged. Compared to the previous heating season, gas deliveries from Azerbaijan via the Trans Adriatic Pipeline increased by 15%, or 0.80 bcm. The natural gas consumption in Africa would grow to 168 bcm in 2023 from the 164 bcm recorded in 2022. While Africas natural gas production is expected to grow to 262 bcm in 2023 from the 251 bcm recorded in 2022.

Leading energy producers in Africa are prioritizing cross-border cooperation to address inadequate or obsolete infrastructure, which has impeded the continents oil and gas resources full exploitation and commercialization to date. Consequently, a number of regional oil and gas pipeline projects have been announced, advanced, or will be expedited in the coming years.

In June 2022, the energy ministers and chiefs of national oil companies of Nigeria, Niger, and Algeria established a taskforce and roadmap for the development of the Trans-Saharan Gas Pipeline, a project that has been in the works for nearly half a century.

EquatorialGuineasMinisterofMinesandHydrocarbons, H.E. Gabriel Mbaga Obiang Lima, launched the Central African Pipeline System (CAPS) in September 2022. It will connect Central, East, and West African countries, including Cameroon, Central African Republic, Chad, Equatorial Guinea, Gabon, the Republic of the Congo, the Democratic Republic of the Congo, Rwanda, and Burundi, to combat energy poverty and reduce reliance on non-African energy imports. The infrastructure will include refineries, gas-fired power facilities, terminals for LNG, and international oil and gas pipelines. With seven countries signing a Memorandum of Understanding (MoU) to implement the project at the 2022 Central Africa Business Forum and the African Petroleum Producers Organizations support, the project is anticipated to reach new milestones in 2023. The projects completion is scheduled for 2030 and will support broader efforts to stimulate employment creation, improved energy access, and industrialization throughout the region.

In September 2022, MoU was signed between the Nigerian National Petroleum Corporation (NNPC),

Moroccos National Office of Hydrocarbons and Mines

(ONHYM), and the Economic Community of West African States (ECOWAS) for the construction of the 6,000-km, US$ 25 billion Nigeria-Morocco Gas Pipeline. It is expected to make substantial progress beginning in 2023.

The Trans-Saharan Gas Pipeline is anticipated to enter a new phase of accelerated rollout in 2023 as the three countries seek to increase their consumption of gas resources to boost regional energy security and exports to Europe. The 4,128-km pipeline will have an annual capacity of 30 bcm of natural gas and represents a strategic opportunity to diversify European gas supplies, especially in light of the sanctions presently in place against Russian gas.

The 1,443-km, US$ 10 billion East African Crude Oil Pipeline (EACOP) received approval from the East African Legislative Assembly (EALA) in November 2022, marking a significant project advancement. When finished in 2025, the pipeline will convey up to 2,46,000 barrels per day of crude oil from Uganda to the port of Tanga in Tanzania for export to global markets. In the meantime, regional cooperation and development are anticipated to reach new heights in 2023, with the governments of Tanzania and Uganda seeking to increase upstream activities and hydrocarbon extraction to fuel economic growth. energy consumption

The importance of the Australian Oil and Gas sector to the nations economic and green energy future has increased, and ensuring a reliable investment environment would provide greater benefits to the country. Australia is the largest exporter of liquefied natural gas in the world, with an extensive pipeline network spanning the entire country. Compared to crude oil pipelines, gas pipeline capacity dominates the landscape. Australias pipeline and gas industries will have numerous opportunities in 2023.

The Vali Gas field was constructed in the South

Australian Copper Basin to provide the country with a new source of gas. The project includes installing metering facilities at the Vali facility, flowlines connecting the fields three completed wells to the metering facility, and two export gas pipelines from the field to connect with the Moomba gas gathering network at the Becker gas field. The export pipelines installation and pressure testing were concluded in December 2022.

In 2021, the demand for hydrogen reached 94 million tons (Mt), recovering to pre-pandemic levels (91 Mt in 2019) and comprising approximately 2.5% of the

The majority of the worldsfinal growth was attributable to traditional applications in refining and industry, though demand for new applications increased to approximately 40 thousand tons, up 60% from 2020, though from a low base.

The use of hydrogen and ammonia is gaining traction in the power sector, with announced projects totaling nearly 3.5 GW of potential capacity by 2030.

The International Energy Agency (IEA) estimates that the demand for hydrogen will reach 115 MT by 2030, with less than 2 MT coming from new uses. This compares to the 130 MT that would be required to meet existing climate commitments made by governments around the world, and the nearly 200 MT that will be required by 2030 to achieve net zero emissions by 2050. A substantial proportion of projects are presently in the advanced planning phases, whereas only 4% are under construction or have reached the final investment decision (FID) stage. Although it is anticipated that the project pipeline will continue to expand in the future years, there is a need to provide early support for projects so that they can attain FID and scale-up.

This will require a massive infrastructure build-out as pipelines will be required to transport Hydrogen. Rystad Energy estimates that there are about 91 planned hydrogen pipeline projects in the world, totaling 30,300 km and due to come online by around 2035. Today, more than 4,300 km already exists for hydrogen transportation with more than 90% located in Europe and North America.

New hydrogen infrastructure is starting to materialize as the world seeks to accelerate its path to net-zero. Hydrogen has a high gravimetric energy density and a low volumetric energy density. This means that among options, hydrogen pipelines will be far better than vessels at moving hydrogen over short to medium range distances.

In cases where hydrogen will be shipped (as hydrogen or its derivatives), it will eventually be distributed on land using hydrogen pipelines, which makes transport via pipelines a critical transportation mode for the gas. Hydrogen pipelines are already used to supply industrial hubs (at petrochemical plants for example). As supply scales up and moves from areas with abundant and renewable energy to demand centers, long transmission lines will be a necessity and these pipelines would require larger diameters and higher pressure for cost effectiveness and consequently higher steel grades.

Globally, Europe is at the forefront of efforts to produce and import green hydrogen and its attention is now turning to building the necessary infrastructure to get it to demand centers. According to Rystad Energy research, Spain, France, and Germany are among the countries committed or considering cross-border tion Reduction Act pipelines to facilitate energy flows, while the UK with its extensive gasgridfindsitself in a strong position to switch from natural gas to hydrogen.

Several policies and guidelines have been established by India to promote green hydrogen, including the Green Hydrogen Policy, Harnessing Green Hydrogen by Niti Aayog, and the National Green Hydrogen Mission (NGHM). The NGHM aims to achieve a green hydrogen production capacity of at least 5 MMT per year, generate investments of over 8 lakh crore, and create over 6 lakh jobs. The government has taken significant steps, such as waiving inter-state transmission charges and providing GH2 plants with open access to the grid. The government has announced 19,744 crore in the latest budget for several programs to encourage green hydrogen, including domestic manufacturing of electrolysers and GH2 production.

CCUS (Carbon Capture, Utilization, and Storage) is a collection of technologies that can contribute significantly to global energy and climate objectives.

emission sources like power plants or industrial facilities can also be