California Independent System Operator (CAISO), the entity responsible for maintaining the balance between supply and demand for electricity throughout most of the state, had to resort to more power imports this summer as flexible gas generators could not fully balance the system amid fuel constraints.

Thursday, 15 September 2016 07:00 / Markets

SENER eyes growth for Mexican gas power

Engineering and technology group SENER expects opportunities in the Mexican gas power sector  to grow steadily in the medium term as it embarks on a number of major turnkey construction projects, Alejandro De la Rúa, Power, oil & gas director  at the firm in Mexico told Gas to Power Journal.

Caps on California’s gas-burn this summer, imposed due to a month-long leak at SoCalGas’ main storage, have significantly shifted the state’s energy mix this summer. Renewables and imported electricity offset the nearly 20% plunge in output from gas-fired power stations in June, July and August in the CASIO grid area.

Nine gas-fired power plants in southern India – currently stranded for lack of fuel – have been allocated approximately 10 million cubic meters a day of natural gas at auction. With a combined capacity of 5 GW, these plants are now contracted to  supply electricity at a price below Rs 4.7 per unit and will be restarted between October 1, 2016 and late March 2017.

As part of the Turkish Stream gas pipeline project, Gazprom CEO Alexey Miller has signalled interest in investing in the conversion of power plants to run on natural gas, or building new gas-fired power units. Russia pushes for Turkey to give the necessary permits to implement the strategic gas interconnector in the coming months.

The Electric Reliability Council of Texas (ERCOT) is anticipating a 9.5% year-on-year increase in peakload power demand for the upcoming autumn season, but reassured stakeholders it would have access to “sufficient capacity” installed system-wide.

Peak power demand this summer has opened a supply gap of 7,300 MW in Pakistan, forcing the energy ministry to mandate the diversion of 300 mmcf/d of natural gas to inefficient power plants before the start of summer 2017. The government seeks to add 10,000 MW of capacity to national grid. 

Thursday, 01 September 2016 09:00 / Markets

Meralco, Osaka ‘pause’ gas deal

Plans for an LNG venture between Manila Electric Company (Meralco) and Osaka Gas currently “take a pause”, the companies said, suggesting they need time to reassess the dynamics of the Philippines' electricity market. The JV was meant to help Meralco develop an LNG import facility in Atimonan, Quezon – yet the utility's power generation arm may have already shifted to coal technology on a nearby power plant.

Wednesday, 31 August 2016 09:43 / Markets

Abu Dhabi’s first FSRU opens new horizons

Low-cost LNG imports gains attractiveness in the United Arab Emirates (UAE) as gas-burn for power generation is outstripping domestic production, while upstream investment stalls. Abu Dhabi now resorted to chartering an FSRU in July – oil & gas analyst Priyank Srivastava expects cargoes to be imported on a spot basis to cover peak power demand between June and September.

Malaysia is cementing its position as the dominant player in issuing global and domestic sukuks – helped by the regional energy sector. "Power bonds have accounted for 39% of Malaysia's RM239 billion of infrastructure bond issues in the last decade," said Chong Van Nee, co-head of Infrastructure and Utilities at RAM Ratings.

Vacuum contactors, used in power plants and substations, are seen to grow from an estimated market value of $3.43 billion in 2015 to over $4.81 billion by 2020. MarketsandMarkets analysts reckon that a large number of transmission and distribution line upgrades, particularly in Asia Pacific, will spur 7.04% cumulated annual growth rates (CAGR).

Shale gas production in the United States is expected to reach 79 Bcf/d in 2040, while tight oil output could exceed 7 million b/d, according to EIA projections – provided that technological progress helps bring down drilling costs and oil prices stabilise.

South Korea’s sole gas importer Kogas is taking steps to source LNG at cheaper prices through its proprietary gas production. "We need to shift away from a conventional supply method of bringing LNG under high-priced long-term contracts from overseas,” CEO Lee Seung-hoon stressed.

Tuesday, 23 August 2016 09:00 / Markets

China’s oil major turns towards gas

CNPC has decided to step up investment in gas upstream as it seeks to nearly double its gas output to 180 Bcm/y by 2020. Hou Qijun, head of CNPC’s planning department, announced the gas proportion of CNPC's budget will continue to rise; he stressed the cleaner-burning fuel is "our top priority with high potential for profit growth."

The government of Gibraltar and Royal Dutch Shell have signed an agreement for the construction of a small FSRU that will receive LNG delivered by Shell for use in an adjacent gas-fired power plant, which is already being built.