Rumuji, a mini-LNG facility in River State, Nigeria, is being developed to monetize the country’s substantial stranded gas reserves. Set to be built with $500 million worth of private funds, gathered by Greenville Ltd., the project is underpinned by a gas supply agreement for the delivery of 74 mmscf of gas through NNPC, Total and the Gas Aggregation Company of Nigeria (GACN).
By 2040, coal and renewables will both contribute 31% to world electricity generation. In Europe, strong renewable energy expansion will eradicate the growth of gas use in the power sector over the next 10 years, according to the EIA’s just-released International Energy Outlook 2017 (IEO2017). Only after 2030, pipeline gas and LNG is seen regain market share in Europe, displacing nuclear power and lignite coal.
LNG imports to Spain have kept rising over the summer driven by record levels of gas-burn in the power generation sector. At the end of the peak summer season in August, Spain imported 19 LNG cargoes originating from Qatar, Nigeria, Algeria, Norway, Peru, Trinidad and the U.S.
Britain’s has embarked on a difficult process of untangling its economic ties with the European Union which may put the construction of three planned EU-UK gas interconnection pipelines at risk. Thierry Bros, OIES research fellow, pointed out the UK needs to “reshape its energy diplomacy” as it will have to negotiate gas supplies with both the EU and Norway, which supplies some 38% of its gas, in the future.
A draft policy paper published by South Korea’s energy ministry this week signals a strategy of adding between 5-10 GW to the county’s installed capacity, mostly from LNG-to-power projects and renewables. The envisaged new clean energy plants would expand Korea’s installed capacity by about 10%.
Gas-burn for power generation in Spain has ended the month of August with an increase of over 60% to reach 7,800 GWh – the highest figure for this month since 2011, according to Enagas figures. The steep increase in the contribution of gas in the Spanish power mix was caused by very low hydro power availability and a lower generation from wind power.
Indian LNG buyers have been courting the incumbent seller Qatar to invest in stranded gas-fired power station as a precondition for new long-term offtake agreements. "It won't be quid pro quo but mutual interest [...]" oil minister Dharmendra Pradhan commented; “They can share the profit of those power plants."
Aug 22 – South Korea’s GS EPS and GS Holdings have completed the construction of Phase IV, a 900 MW combined-cycle plant in Muskat, Oman. The CCGT has a power efficiency rating of 64% and is run by imported LNG. As an independent associate of Oman Oil Company (OOC), the Korean power producer helped with knowledge transfer and now aims to realise renewable energy projects in Oman.
Taiwan’s recent massive blackout raises questions of the government’s wider energy policy which, according to Dr. Guo Yu, principal Asia analyst at Maplecroft, “does not pose an immediate threat to government stability.” However, it may determine the political fortunes of President Tsai and the ruling Democratic Progressive Party as we approach the next election cycle in 2020.
SoCal’s inability this summer to fully utilize Aliso Canyon, California’s largest storage with a capacity of 86 Bcf, is impacting flow, pricing and storage dynamics in the U.S. Pacific Region. Peak summer demand conjured up fierce competition for gas between Northern and Southern California which let to tighter price spreads between the two regional gas trading hubs, SoCal and PG&E, this August.