More shale gas produced in Texas is expected to soon cross the border to Mexico after the U.S. Department of Energy (DOE) approved an application by Mexico Pacific Ltd (MPL) to export up to 1.7 Bcf/d to a planned liquefaction and export plant in the state of Sonora. MLP is developing a an LNG export facility of up to 12 mtpa in the Mexican state of Sonora, with the first phase planned to be in service in 2023.
Dominion Energy has agreed to sell its 100% interest in two combined-cycle gas power stations in Pennsylvania and Rhode Island to the private investment firm Starwood Energy for a cash consideration of about $1.23 billion. In addition, Dominion will get a further $700 from the divestment of 25% interest in a hydro power station in Louisiana.
A reconciliation of interest agreement has been sealed by Siemens and the company’s Cental Works Council, detailing where the axe will fall to save up to €500 million at the Power and Gas Division (PG). Nearly €270 million of this amount is meant to be saved in Germany where the number of job cuts has been reduced from 3,400, as initially announced, to around 2,900.
Initial water tests from Duke Energy's L.V. Sutton Plant in Wilmington confirm that discharges from the cooling lake to the Cape Fear River are not contaminating the water downstream. Flooding of the river, caused by Hurricane Florence had stirred up concerns over a potential coal ash contamination.
The Norwegian gas pipeline operator Gassco has reported a new peak for summer deliveries of natural gas to Europe, and will soon be opening its new Polarled pipeline to carry even more volumes from the Norwegian Continental Shelf. Gassco exported 36.8 billion cubic metres (scm) in May-August – a small rise from the same period in 2017 which was a record year for gas exports.
The U.S. Energy Information Administration (EIA) has developed an interactive dashboard showing daily and weekly updates on Lower 48 and regional storage activity, as well as market fundamentals that affect underground gas storage activity. Updates are published online and in the Weekly Natural Gas Storage Report (WNGSR).
As the US-China trade war escalates, Beijing is implementing a retaliatory 10% tariff on US LNG imports starting from September 24. In the twelve months up until June 2018 China used to be No.2 buyer of US LNG, accounting for about 3 mtpa mostly bought through Shell. Now, state-owned Chinese buyers started to snuff gas supplies from America, and PetroChina just entered a 22-year purchase agreement with Qatargas.
Global energy consumption is set to soar 28% between 2015 and 2040, according to the U.S. Energy Information Administration's latest International Energy Outlook 2017 (IEO2017). Countries with strong demand growth in non-OECD Asia – notably China and India – are seen to account for over two-thirds of the total rise in energy consumption through to 2040.
Most Japanese utilities that also operate nuclear power plants – such as Tokyo Electric, Kansai Electric and Kyushu Electric – have effectively stopped funding for the costly reprocessing of the nuclear fuel, their financial report shows. This move seems to indicate a long-term shift away from nuclear towards fossil fuels, notably natural gas.
As wholesale gas prices hit 10-year highs, Britain’s power producers are earning more by dispatching cheaper coal-fired power stations than their gas counterparts. If this trend continues, the UK may not be able to meet is emissions targets given that the extra coal-burn for power generation already increased emissions by 15% in September, analysts at the Imperial College London warn.
Growth in Europe’s gas demand has returned and stays underpinned by the power sector, with higher coal and carbon prices continuing to support the competitiveness of gas-fired power generation, says Murray Douglas, research director, Europe gas at Wood Mackenzie. Most importantly, in his view, is that national coal phase-out policies are being enacted throughout Europe which will boost gas demand through to the mid-2020s.