Markets

Spanish manufacturer Himoinsa is opening a new 12,000 sqm factory in Santa Fe which has the capacity to produce 3,000 generator sets of between 8 kVA and 1745 kVA each year. Fitted with Cramaco alternators, these gensets will be wholly manufactured in Argentina for sale locally as well as in Chile, Uruguay, Paraguay and Bolivia.

The US oil major ExxonMobil has joined a group of eight International Oil Companies (IOCs), led by the European majors Shell and BP, to jointly put forward proposals to curb methane emissions from upstream operations, notably shale gas fracking. For Exxon, this is the first time the company joins an environmental initiative alongside industry peers.

Global petrochemical manufacturer INEOS has struck a long-term supply agreement with SP Chemicals which will see ethane, derived from US shale gas, being shipped to China for the first time. The deal also stipulates the construction of a 95,000cbm Very Large Ethane Carrier (VLEC) which is expected to be delivered in 2019.

The Polish Oil and Gas Company Group (PGNiG) has signed a five-year contract with Centrica for US LNG cargoes, delivered on a DES basis, from the Cheniere Energy’s Sabine Pass terminal in Louisiana starting from 2018.

Electricity demand and GDP growth used to be closely coupled but this link has been broken in several countries due to changes in economic makeup, electrification and income levels. Some OECD countries with sustained GDP growth, like the United States, Japan and the UK, have shifted from energy-intensive manufacturing toward service economies – using significantly less electricity per capita as a result.

Controversy is mounting in Australia over whether the lifetime of AGL Energy’s 2,051-MW Liddell power plant should be extended – as proposed by the Turnbull government – even though the operator wants to shut down the “costly and unreliable” unit in 2022. A new report finds the government’s stipulated lifetime extension would cost around $3.6 billion over five years, compared to $2.2 billion for a combination of wind power, demand side-response and energy efficiency measures.

Between 2017 and 2021, mircrogrids are expected to progress from the test-bed and demonstration-phase to commercializing projects. According to GlobalData analysis, the value of global microgrid market will almost double from $12 billion in 2016 to around $23 billion in 2021, growing at an annual rate of about 14%.

Siemens’ Power and Gas (PG) division will be most affected by the Group’s latest round of restructuring which will affect 6,900 jobs, or 2% of the company’s global workforce and 6,100 jobs at Siemens PG. Global demand for large gas turbines, generating more than 100-MW, "has fallen drastically" and is "expected to level out at around 110 turbines a year," the German OEM stated. By contrast, the technical manufacturing capacity of all producers worldwide is estimated at around 400 turbines.

Total energy-related carbon dioxide emissions are projected to continue falling for the second year in 2017 but rise slightly in 2018, according to the EIA’s latest Short-Term Energy Outlook. Utilities in Texas and the Midwest are leading the way in cutting emissions by burning less burning coal. In both states a record number of coal-fired power stations were retired, or converted to natural gas.

LNG imports to Spain jumped 45% in October, spurred by rising demand from industry and the power sector which propelled up the country's total gas imports 29% year-on-year to an equivalent of 37.8TWh. According to data from the Spanish TSO Enagas, most LNG cargoes in October were imported from Nigeria, followed by Algeria.

Germany’s largest utility RWE on Tuesday reported a recovery in Q3 profits but warned of a quick exit from coal power to further reduce carbon emissions and reach Germany’s climate target, as demanded by the Green Party. Just days earlier, RWE said it is de-mothballing another two gas power plants ahead of the coming winter.

The Government of South Australia has evaded questions in Parliament about the cost of its new mobile power generators that have been installed and tested at Elizabeth and Londsdale. Rumours have it the final price tag might exceed $400 million but Premier Jay Weatherill refused to provided details, pointing to a confidentially agreement with the generator’s operator APR Energy.

“The boom years for coal are over” in the absence of large-scale carbon capture, utilisation and storage (CCUS), according to the IEA’s World Energy Outlook (WEO-2017) just issued. Over the next 25 years, the world’s growing energy needs are met first by renewables and natural gas, as fast-declining costs turn solar power into the cheapest source of new electricity generation.

Reacting to pressure from investors, General Electric’s new CEO John Flannery announced plans to exit the locomotives and industrial lighting markets to focus on aviation, power generation and healthcare, while shedding 25% of its corporate staff. “Complexity has hurt us,” he said, adding GE needed “right-sizing” in its power segment to reduce costs.

China Energy Investment Corp has signed a Memorandum of Understanding (Mou) to invest up to $83.7 billion over the next 20 years in shale gas development and downstream gas markets in West Virginia. “Projects will focus on power generation, chemical manufacturing, and underground storage of natural gas liquids and derivatives," the U.S. Department of Commerce stated, adding planning for the projects "is underway."

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