The New Northern Policy, launched by the South Korean president Moon Jae-in, is seeking new growth drivers in Russia and Northeast Asia. The Korean energy ministry announced Korea Electric Power Corp (KEPCO) will sign a memorandum of understanding with Russia's energy firm Rosseti later this year. The aim is to create a multinational power grid interconnection in the Northeast Asia region that also includes China and Japan.
Acceleration of Europe’s announced gas-fired power projects is likely after 2020, as many EU countries step up efforts to retire nuclear, lignite and hard coal-fired generation. According to Energy Aspects, there are 17 GW of proposed projects in the UK alone while across Europe that figure is 51 GW.
More rigs have been drilled for natural gas than for oil in Saudi Arabia for the first time in seven years, marking a quiet but swift shift to gas and renewables in power generation. The Saudi Kingdom is accelerating its drive to reduce dependence on crude oil exports, while direct burning of heavy fuel oil (HFO) in the power sector has reached multi-year lows.
Noble Energy and Delek Drilling and Noble Energy, partners in developing Israel’s Tamar and Leviathan gas fields, confirmed they signed a $15 billion deal to export up to 64 billion cubic meters (Bcm) of natural gas over 10 years to Egypt’s Dolphinus Holding. Hurdles of how to export the gas to Egypt have not been solved yet, but the Arab nation urgently needs the more gas supply to fuel three 4.8 gigawatt combined-cycle power plants, currently under construction.
Substitution of Australia’s ageing coal- with gas power plants would be ideal to comply with the National Emission Reduction target but gas prices are very high and availability is tight which leads to “constrained electricity generation,” according to the IEA's latest Australia 2018 Review. "Relatively high-cost production from unconventional gas” impact on the expansion of LNG projects in Western Australia and the start of LNG exports from Queensland. At the same time, domestic gas consumption has surged 70% over the past decade, notably in power generation.
Perth-based Global Energy Ventures (GEV) is seeking to step up shipments of compressed natural gas (CNG) to the Indian subcontinent. “They’ve got major issues in terms of fuel supply,” GEV chief executive Maurice Brand said but cautioned “it's easier to just supply the fuel than build a power plant.
BP has just started producing natural gas from the Atoll Phase-1 offshore Egypt, fostering hopes of Egyptian policymakers that domestic gas supply can reduce, and ultimately end, the country’s dependence on importing LNG to meet seasonal demand swings.
US President Donald Trump has made reforms of the environmental permitting process for pipelines a key part of his $1.5 trillion infrastructure plan. Speeding up regulatory approvals will help fast-track both gas export pipelines to Mexico and interstate pipelines to transport cheap, domestic shale gas to the second wave of US LNG export projects.
Strong seasonal gas demand from the US power sector has pushed the country’s total consumption of natural gas by 13% this week, according to PointLogic Energy data. Exports to Mexico were rangebound, averaging 4.5 Bcf/d while six LNG vessels departed the Sabine Pass liquefaction facility from January 31 to February 7.
Reacting to recurring power outages, South Africa is taking steps to reduce its reliance on aging coal-fired plants. Over the next five years, the Government plans to replace some out-dated coal capacity with nearly 10-GW of supercritical coal units. It seeks to attract investment to realize up to 4 GW of gas-fired independent power projects (IPPs) that would be supplied by imported LNG from floating terminals at Richards Bay and Port Coega starting in 2020.