The Russian gas export monopoly Gazprom, and owner of the expanding Sakhalin LNG plant, has fully re-entered the financial mainstream by signing a credit facility for €1 billion ($1.18 billion) with JP Morgan as well as Mizuho Bank and Sumitomo Mitsui Banking Corp (SMBC), two of the largest Japanese banks. “The agreement marks another step in Gazprom's successful long-term cooperation with the aforementioned credit organizations,” the Russian company stated at the signing ceremony.
Thailand's No.3 power producer Gulf Energy plans to invest over $4.6 billion across Southeast Asia – mostly in the acquisition of gas-fired power plants as well as in greenfield projects – the company’s CEO Sarath Ratanavadi announced shortly after his company had raised $733 on the Thai stock market. Shares of Gulf Energy will be listed on December 6.
Speedy approval of new mines in China has the potential to lower demand for seaborne coal imports by up to 50 million tons (Mt), sending down coal prices from levels above 80$/t towards to just 60$/t in 2018. EnergyAspects cautions, however, that such a dramatic fall in prices, caused by replacing higher-priced imported coal with cheap domestic production, is highly unlikely given that the government in Beijing had been content with higher prices as a driver for electric utilities to replace coal with cleaner-burning natural gas.
China’s new'2+26' cities policy – a pledge to cut emission in the country’s 28 northern cities by 15% year-on-year in the winter months – is limiting the use of coal for power generation and in industries. As an alternative to coal, gas demand could rise by 23 bcm this year compared to previous winters, according to WoodMackenzie projections. In fact, Chinese LNG imports almost doubled last month, surging 95.7% compared to October 2016, to reach 3.57 million tonnes, according to data from the General Administration of Customs.
Following a record supply of Russian gas to Europe last year, Gazprom touted it expects that its full-year 2017 exports will exceed the 179.3Bcm exported in the previous year by 13.3Bcm. Eager to cement its position as Europe’s largest gas supplier, Gazprom is creating new export routes such as the 32 Bcm TurkStream gas link through the Black Sea, for which works are already underway in Turkey’s economic zone.
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.
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.