Vowing to avoid shortages and price spikes, China’s National Development and Reform Commission (NDRC) is pushing through measures to expand both pipeline gas and LNG imports. Taking early action is meant to improve China’s gas reserve and helps to make pre-arrangements for peak demand. CNNOC just issued a tender for a strip of cargoes to be delivered between November 2018 and 2022.
Energy storage will play a growing role in the British power mix as the Brexit process is at a critical stage and the country seeks to reduce reliance on importing electricity through from mainland Europe. “Interconnectors are direct competitors in the flexibility marketplace,“ Wood Mackenzie said, suggesting Brexit could be good news for the UK storage market.
With the advent of utility-scale energy storage and hybrid power systems, traditional power producers are turning to system integrators to balance multiple generation assets and optimize the energy produced. Wärtsilä’s GEMS software helped ALTEO Group optimise an engine power plant with energy storage in Hungary, and on the Azores the software used a mircogrid form of AI to control and balance wind, solar and diesel gensets.
Swift and efficient completion of drilling at the Wolfcamp play has been driving up the overall hydrocarbon production in the Permian Basin. The Wolfcamp accounted for 1 million barrels of crude oil per day (b/d) and 4 Bcf/d of natural gas. Productivity gains were caused by drilling longer horizontal laterals and optimizing completions.
The offshore section of the TurkStream pipeline through the Black Sea is now complete after the Russian President Vladimir Putin and his Turkish counterpart Recep Erdogan gave the command to weld the final joint of the pipeline’s second string. The entire pipeline will be commissioned in late 2019.
Leaked drafts of a report of Germany’s coal commission show the country’s coal exist will likely be delayed to 2022, rather than starting in 2020. The pathway of the coal exit is now in focus, rather than the exit date. Forced plant closure should be avoided, the commission said, stressing shut-downs need to agreed with operators who will claim compensation.
Seeking to cash in on the shift from coal to gas, Saudi Aramco has made plans to expand its multi-billion natural gas business at home and abroad. “Saudi Aramco is on the way to becoming a gas powerhouse in addition to its huge strength in oil,” the company stated, indicating it plans to boost production from 14 billion standard cubic feet per day (bscfd) to 23 bscfd of natural gas.
Iran has expanded its fleet of power plants by adding about 1,000 MW of new-built capacity since March 2018, the energy ministry reported. Installed capacity amounts to 80,000 MW, with gas powering nearly a third of the total. The government aims to add 3GW to meet peak demand.
Soaring costs of LNG imports have increased the importance of a swift restart of Japan’s nuclear reactors to generate comparatively cheap baseload power. Total cost for imported gas topped 418 billion yen ($3.71bn) in October, compared to 280 billion yen ($2.48bn) a year earlier, according to an alert by the Japanese finance ministry.
Seeking to strengthen ties with Europe, the Russian gas giant Gazprom is fast-tracking works on the $11 billion Nord Stream 2 project with the aim of starting first gas flows to northeast Germany in the autumn or early winter of 2019. Poland and the United States adamantly oppose the project.
Despite the drop in rig count, the actual output of crude oil and natural gas keeps rising in the United States thanks to advances in technology and drilling techniques. Even with fewer wells U.S. natural gas gross withdrawals increased from about 78.7 billion cubic feet per day (Bcf/d) to 83.4 Bcf/d.
Siemens has started construction on a new energy center in Bolivia, designed to provide traditional and digital services to electric utilities in South America. Equipment from Siemens is being deployed to expand three combined-cycle gas power stations in Bolivia: Termoeléctrica del Sur, de Warnes and Entre Ríos.
“2018 is the year of electricity,” the International Energy Agency (IEA) noted given that electric power has been the fastest growing element of final demand, and will outpace all energy sources over the next 25 years. Digitalization of the global economy goes hand in hand with electrification, making it the “fuel of choice” for households and enterprises.
Hit by a triple-whammy of weak cash flows, meager profits and slumping stock values, CEOs in the oil and gas industry are vary about continuing to invest in increasingly risky fossil fuels. Looking for a quick return, investors want oil majors to prioritize profits over production growth. Some refocus on electricity markets.
MAN Energy Solutions has been contracted to provide a new combined-heat-and-power (CHP) solution for Ben Gurion Airport in Tel Aviv, Israel. A dual-fuel engine MAN 9L51/60DF will be vital to power the airport, with plant handover scheduled for the end of 2019.