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.
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.
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.
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).
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."