The Finish marine and energy technology company Wärtsilä has posted an 8% growth in net sales to €1,151 million for the period from January to March 2019, and a 6% rise in order intake to € 1,416 million. “Demand improved in the gas carrier segment but despite this positive development, reduced activity in the energy markets resulted in a decline in group order intake,” Wärtsilä CEO Jaakko Eskola said.
Energy trade between Mexico and the United States has undergone massive change. The value of U.S. exports of petroleum products nearly tripled from $10.4 billion in 2008 to a record high of $30.5 billion in 2018, while U.S. energy imports from Mexico stayed a near record low of $15.8 billion for a second year in a row.
The U.S.-based Fortune 500 power company AES Corp is divesting its interests in six power plants in Jordan and the United Kingdom for a total of $211 million. Andrés Gluski, AES’ President and CEO said the company decided to cut back the number of countries in which it operates and will shift its focus to renewables, energy storage and LNG.
Natural gas future prices for May at the U.S. benchmark Henry Hub have firmed to $2.535/MMBtu due to increased demand from the power sector and for feedgas for a growing number of liquefaction and export plants. Energy Aspects flow data shows Sabine Pass LNG is taking 3.4 bcf/d would indicate all five trains are operating.
Imports of liquefied natural gas to Japan have dropped for a fifth straight month as thermal coal imports is outcompeting gas in the power sector. In March, some 9.58 million tons of thermal coal was imported, up 3% on February, while LNG cargoes delivered in the same month totaled nearly 7.3 mt, down from 7.93 mt a month earlier, according to Japanese custom’s data.
The Indian government may give way to utilities’ demands and allow power plants running on regasified liquefied natural gas (RLNG) to sell electricity into the higher-priced spot market, without having to adhere to their power purchase agreements. The proposed e-RLNG scheme will likely require fewer subsidies than in past years due to the fall in global oil prices.
Working natural gas in storage in the Lower 48 United States ended the heating season on March 31 at 1,137 billion cubic feet (Bcf) – the lowest level since 2014. The 2018–19 heating season was characterized by periods of significantly colder-than-normal temperatures, particularly in the Upper Midwest, the EIA said in its latest Weekly Natural Gas Storage Report.
Chevron’s $33 billion takeover of Anadarko, one of the world’s largest independent oil companies, will boosts its lead in the Permian Shale, and grow its midstream and LNG export business. Chevron CEO, Michael Wirth commented: “The transaction underscores our commitment to short-cycle, higher-return investments.”
Demand for natural gas in the U.S. power sector keeps rising as the number of combined-cycle gas turbine (CCGT) power plants has overtaken coal-fired plants, making the power sector compete for fuel with LNG export projects. Thankfully, the production of U.S. dry gas is going from strength to strength.
The U.S. Energy Information Administration (EIA) expects natural gas prices at the benchmark Henry Hub will to fall to an average $2.82/MMBtu this year, and decline further in 2020. The bearish sentiment is caused by a continuous rise in U.S. dry gas production, forecast to expand by 7.6 billion cubic feet per day (Bcf/d) this year to reach around 91.0 Bcf/d.
In the wake of Egypt’s latest tender for exploration licenses in the Red Sea, the Petroleum and Mineral Resources Minister Tarek El-Molla has forecast the country's overall natural gas output will reach more than 5 billion cubic feet per day (bcf/d) by the early 2020s. Anticipating a substantial gas surplus, the Government aims to use these volumes to increase power generation and to meet Egypt's LNG export obligations.
Updated data for 2019 by the International Energy Agency (IEA) show Chinese-added power generation capacities in Sub-Saharan Africa will total 9 GW over the decade between 2014 and 2024. This does not include two large dams currently under construction – the 2,160 MW Cacula dam in Angola and the 3,048 MW Mambila dam in Nigeria, which are unlikely completed before 2024.
Saudi Arabia will become the largest Middle East wind power market, Wood Mackenzie finds, with developers expected to build 6.2GW of wind capacitry, or 46% of the region’s total wind capacity addition, between 2019 and 2028. Flexible gas turbine or engine-driven power plants will be an ideal backup for rising volumes of intermittent wind energy.