Markets

In early December, Gazprom will start supplying Russian gas to China via the ‘Power of Siberia’ pipeline. Pursuant to the $400 billion contract with CNPC, more than 1 trillion cubic meters (Tcf) of gas will be supplied over 30 year, Gazprom said, adding the aim is to build more interconnectors to China.

The Iranian energy ministry has said developments are on track to commission and start up over 4,800 MW of power generation capacity. The aim is to reach a total installed capacity of 85,695 MW by the end of the current Iranian calendar year, on March 20, 2020.

Seven days of a record heat-wave in Europe – with temperatures at over 44°C in northern Spain and southern France – have claimed lives, sparked wildfires and propelled up electricity demand to all-time-highs. However, temperatures are forecast to fall sharply today in northern Germany and the Netherlands, with hefty storms set to allow for wind power supply of up to 14.1 GW on Monday.

As Israel boosts domestic gas production it becomes cheaper for Jordan to import excess Israeli gas via a short pipeline, under construction, than buying LNG cargoes under a mid-term contract with Shell. Works on new 65-kilometre gas interconnector are ahead of schedule and could be completed in Q3-2019. First gas is expected at the start of 2020.

Monthly power output from renewables in the United States exceeded coal-fired generation for the first time in April, due to record wind power output and low demand amid moderate temperatures. According to EIA figures, wind and solar power sources provided 23% of total electricity generation, compared to 20% from thermal coal.

Sweden’s state-owned utility Vattenfall has issued a 500 million Euro green bond at Nasdaq, its first such issuance under a new Swedish law. The proceeds are dedicated for projects related to energy efficiency, electrification of transport, heat and industrial projects.

Electrification of the transport sector can help curb emissions substantially, Wood Mackenzie finds. A typical mid-size electric vehicle (EV) generates up to 67% fewer emissions than a gasoline internal combustion engine (ICE) car. But the crucial factor is the location where they are driven and the regional power generation mix.

California-based Sempra Energy is striving to take a leadership role in modernizing North America’s natural gas infrastructure to help incentivize power plant operators to switch from coal to gas. On a global scale, Sempra said its US LNG export terminal will supply affordable clean energy to Asia.

This year, for the first time since the Industrial Revolution, more of Britain’s electricity production will come from zero carbon energy sources, than fossil fuels. The landmark tipping point will be reached after National Grid invested £1.3 billion over the past decade in the clean energy transition, as well as £2 billion in new interconnectors such as the 1,400 MW North Sea Link to Norway.

Australian-owned liquefied natural gas trading platform GLX is now allowing European gas buyers and sellers to access its digital bid-offer system for global spot LNG cargo dealings. U.S. and Russian cargoes are increasingly traded at UK National Balancing Point (NBP) and Dutch Title Transfer Facility (TTF).

Malaysia offers some of the most material and attractive upstream investment opportunities in Southeast Asia, as the country needs additional gas supply for power generation. Time is of the essence, hence WoodMackenzie expects Petronas to ramp up its exploration efforts in deepwater Sarawak to prove up easier-to-develop resources.

The German government has been urged to keep the coal exit roadmap as flexible as possible. Andreas Kuhlmann, head of the German Energy Agency (dena) said rather than rigidly implementing the Coal Commissions’ proposals, there needed to be some leeway for key sectors – notably transport, buildings and industry.

German engineering giant Siemens has announced plans to cut 2,700 jobs at its Power & Gas (PG) unit that will be carved out and listed in a sweeping overhaul. Siemens said the measures were “necessary” to adjust capacities to reflect developments of the ailing global market for large gas turbines.

The Asian Development Bank (ADB) has entered a partnership with the United States Agency for International Development (USAID) to mobilize $7 billion worth of investment for energy projects in Asia and the Pacific. The explicit aim is to boost the capacity of clean energy systems by 6 Gigawatts (GW), and increase regional energy trade by 10% over the next five years.

French oil and gas giant Total and Germany’s Siemens have proposed to scale back the size of the 1,230 MW integrated Kanbauk LNG-to-Power project after unresolved talks with the Government of Myanmar over financial terms. Downsizing is hoped to save the project which is at risk to be suspended, or outright cancelled.

Page 5 of 155

News in Brief

Bonny Train-7 to cost $6.5bn

Sept 16 – Nigeria LNG is preparing to add a seventh processing train to Bonny LNG, bringing total capacity from 22 million tons per annum (mtpa) to 30 mtpa. Estimated to cost $6.5 billion, Bonny Train-6 will include a new liquefaction unit, a storage and a condensate tank as well as three gas turbine generators.

Schneider to complete L&T takeover by early 2020

Sept 13 – Venturing into India, Schneider Electric hopes to finalise the Rs 14,000 crore acquisition of Larsen & Toubro's electrical and automation business by early 2020. After the transaction is completed, Schneider will have a 65% stake in L&T, while the remainder will be held by Temasek.

MHI to advice China on energy conservation

Sept 12 – Mitsubishi Heavy Industries Thermal Systems, part of MHI, has set up a joint venture withan affiliate of State Grid Corporation of China (SGCC) to perform technical consulting for energy conservation projects in China. The focus of SGCC lies on building new decentralized power stations, biomass-derived power gensets and energy saving solutions.

Tender extended

Sept 11 – Turkmengas has extended a tender for the overhaul of the gas turbine engines of the NK-12ST and NK-14ST brands. Bidders need to pay to receive the tender documents, and then submit a written application to Turkmenistan’s state gas company.

Gas power units to buffer Germany’s coal exit

Sept 10 – Electricity output of Germany’s fleet of gas-fired power plants has risen to a over 13,5 billion kilowatt-hours in the three months from June to August, Fraunhofer ISE figures show. These productivity gains put CCGTs in pole position to balance supply swings in connection with the German coal exit.

Power of Siberia gas flows to start on Dec 1

Sept 9 – Russian gas supplies to China via the eastern route are going to start on December 1, 2019, Gazprom chairman Alexey Miller told his counterpart at CNPC in Beijing. The huge Chayandinskoye field, containing some 1.2 trillion cbm of gas, had already been connected to the 38 Bcm per year ‘Power of Siberia’ gas pipeline in August.

Hurricane Dorian causes havoc in the Bahamas

Sept 6 – In the aftermath of Hurricane Doran, a Category 5 storm, Bahamas Power and Light has said there is a total blackout in New Providence, the most populous island of the archipelago. Dorian made landfall twice on Sunday, ripping off roofs and electricity lines. In most parts, electricity has not been restored.

LNG cargoes via Bab-el Mandeb decrease

Aug 30 – Northbound LNG shipments via Bab el-Mandeb, a sea route chokepoint between the Horn of Africa and the Middle East, have fallen over the past three years as Egypt imports less natural gas from the Persian Gulf. In 2015 and 2016, both Jordan and Egypt imported up to 1.4 Bcf/d of LNG into Red Sea ports but these shipments fell sharply following the development of large gas finds in the Mediterranean.

Hokuriku Electric buys LNG cargo

Aug 29 – Japanese utility Hokuriku Electric has purchased an LNG cargo for delivery in November as soaring temperatures drew down gas in storage for the autumn. The cargo is understood to be scheduled for delivery in the second half of November from Malaysia’s Petronas and may well be destined for Hokuriku Electric’s first LNG-fired power generation unit,  the Toyama Shinko plant.

Technip spins off LNG activities

Aug 28 – TechnipFMC, has decided to spin off its European-based engineering and construction operations into a separate business, leaving the American half of the firm as an equipment supplier to the oil and gas sector. The split is due to be completed in the first half of 2020.

FLNG power market to top $930m by 2023

Aug 27 – The global market for floating LNG power vessel is projected to reach $ 931.6 million by 2023, up from $ 860.1 million seen last year, according to ReportsnReports. Major vendors of FLNG power vessels are Siemens, MAN, Wärtsilä, Caterpilar and GE which are targeting to use the technology to supply decentralized power to island nations in Southeast Asia and along the coast of sub-Saharan Africa and the Americas.

EIA monitors grid hourly

Aug 26 – The U.S. Energy Information Administration (EIA) has launched a beta release of its hourly electric grid monitor. The enhanced version analyses hourly generation by energy source and hourly sub-regional demand for certain balancing authorities in the Lower 48 states.

Hiroshima waste-to-energy plant gets upgrade

Aug 23 – Mitsubishi Heavy Industries (MHI) has been chosen to upgrade and refurbish the combustion facilities at a waste to energy plant in Hiroshima. The Naka plant in Minamiyoshijima, Naka-ku, has a total waste treatment capacity of 600 tonnes per day and generates 15.2 MW of electricity to power the equipment in the factory, while selling the remainder to the grid.

China eases ban on coal power

Aug 22 – The Chinese National Energy Administration (NEA) has allowed 11 provinces to resume building coal power plants in a move that lies bare the country’s dependency on thermal coal even after several hundred billion dollars were invested cleaner energy sources, notable wind, solar and natural gas. Areas earmarked by NEA for new coal power plants include Qinghai, Chongqing, Guangxi, Guangdong, Yunnan, Guizhou and Henan.

Blackout after Didcot demolition

Aug 21 – Yet another blackout hit thousands of British households early Sunday after the demolition of cooling towers at the disused Didcot-A power station in Oxfordshire. Moments after the explosion at 7am to bring down the cooling towers some nearby electricity poles and overhead transmission lines caught fire, causing a sudden loss of electricity that lasted for one hour and twenty minutes.

Fuel cell vehicle market gathers speed

Aug 20 – Sales revenue from fuel cell vehicles will soar to $255.2 billion in 2032, up from just $400 million last year, driven by fast growth in China and wider Asia. Hydrogen fuel cells achieve an energy conversion efficiency of 50% to 60% amid zero emissions and a low maintenance cost thanks to the engine’s modular design.

Tohoku Electric tenders for LNG cargo

Aug 19 – Tohoku Electric Power, the fourth-largest electric utility in Japan in terms of revenue behind Tepco, Kepco and Chubu, is understood to be seeking an LNG cargo for delivery in September. A tender process is ongoing.