Falling technology costs of solar power and heat have sparked a spree of new installations across India. The country now has the sixth largest installed capacity for solar thermal globally, according to IEA figures, however the rapid growth in solar PV deployment with its intermittent supply requires an adequate backup based on flexible gas generation and energy storage.
High-voltage direct current (HVDC) lines play a vital role in integrating renewable energy into the electric grid. Considering their cost effectiveness and lower electricity losses, HVDC lines could – if properly configured – help mitigate some operational issues associated with renewable generation.
Peak power demand in ERCOT, the Electric Reliability Council of Texas, can barely be met with installed capacity as reserve margins are less than 11%. This is not enough to meet peak summer demand, the North American Electric Reliability Corp (NERC) finds, considering that reserve margins in PJM Interconnection (PJM) are substantially higher at about 33%.
Natural gas, coal and petroleum account for at least 80% of energy consumption in the United States, even though the share of fossil fuels has fallen to the lowest level since 1902. Fossil fuel consumption in the U.S. dropped for the third consecutive year, according to EIA data, driven by slight decreases in coal and gas use in the power sector.
July has started with early and intense heat in the United States, which coincides with a new high in natural gas production. However, consumption from the power sector is soaking up any additional supply, as cooling demand skyrockets and a slate of new combined-cycle generators (CCGTs) have begun operation. Cash prices at Henry Hub are nearing the critical $3/mmbtu price threshold.
Today’s start-up of Shah Deniz Phase Two is a milestone for Azerbaijan and the BP-led consortium: a complex megaproject delivered on schedule and under budget. Around $28 billion was spent to produce the gas and transport it to the Georgia-Turkey border for onward shipment to Europe via the Southern Gas Corridor. In WoodMackenzie's view, “Azerbaijan's offshore still has plenty of volume and value to offer to international investors, most notably BP.”
Urban agglomerations, often called mega-cities, will make up more than 90% of the growth in global gas consumption through 2040, according to research by Snam, the International Gas Union (IGU) and the Boston Consulting Group. This transition will require infrastructure investment of between $35-55 billion per year, as clean-air policies in Asia and beyond herald a steep rise of gas use for power generation.
Optimal power systems of the future will have “lots of renewable energy distributed all over the grid, and just the right amount of gas-fired power close to the centers of demand,” said De La Rey Venter, Shell's VP of Integrated Gas Ventures. Speaking at the World Gas Conference in Washington, he singled out low capital costs and scalability as "the beauty of gas-fired power."
Dismissing investment in strategic natural gas pipelines as “an illusion of security of supply,” Peter Coleman, CEO of Woodside Petroleum, told the World Gas Conference in Washington that “sinking funds and time in laying a pipeline delivers dependence and limits choice.” Woodside has substantial stakes in three Australian LNG export plants.
MAN Diesel & Turbo is embarking on a strategic and technological transformation, reflected in its rebranding to ‘MAN Energy Solutions’. In a strategic shift, the Augsburg-based company is now focusing on hybrid energy solution - gas genets plus renewable energies - that are meant to become its main source of revenues by 2030.
Cash-strapped GE has decided to sell its stake in the oil services company Baker Huges and spin off its healthcare section in a bid to slim down and cut costs. Focussing on aviation, power generation and renewable energy, GE said it aims to create a “simpler and stronger company.” The decision comes after GE had lost half of its market value in the past year, as the large gas turbine business has gone into disarray.
U.S. gas companies have been persistently waiting for new Appalachia takeaway capacity – notably the Rover Phase-2 pipeline – to come online this year so the region can provide the bulk of 2018’s dry production growth. Analysts at the consultancy Energy Aspects anticipate output gains in the Lower 48 will grow by 7.3 bcf/d year-on-year, of which 4.0 bcf/d is scheduled to come from Appalachia region.
Nearly two-thirds of oil and gas sector leaders, surveyed by the Norwegian classification society DNV GL, plant to boost spending on gas projects in 2018, with gas expected to overtake oil as the world’s primary energy source in the mid-2030s. Thereafter, the energy transition will enter its final phase-out of fossil fuels, with hydrogen and renewables set to gain momentum.