Shell is close to signing Hong Kong’s first LNG supply deal with CLP Power, developer of a new unit at Black Point Power Station (2,500 MW). The new 600 MW unit is scheduled to start operations by 2020, according to CLP Power’s latest annual report, hence the utility is now keen strike a deal to import LNG via a floating storage and regasification unit (FSRU) to be moored just south of Hong Kong.
With quarrels between Pertamina and PLN about project requirements and sources of gas supply finally put aside, construction is about to start at the $2 billion Java-1 combined-cycle gas power project. PT Jawa Satu Power, a joint venture between Indonesia’s state energy company Pertamina, Marubeni and Sojitz, won a tender to build and operate the CCGT, and are now seeking to put the facility into operation by mid-2021.
Since the U.S. shale oil and gas revolution ended the need to import crude oil from Mexico, the trade balance shifted and U.S. energy exports have been exceeding imports from Mexico for each of the past three years. In 2017, overall U.S. energy exports to Mexico hit a record high of $25.8 billion in 2017, more than twice as much as the $11.1 billion value of imports from Mexico.
Malaysia’s energy giant Petronas has signed a heads of agreement (HOA) with its long-time business partner Tokyo Gas to supply LNG cargoes over a period of 13 years starting from April 2018. Tokyo Gas, Japan’s largest city gas provider, will be using most of this contracted gas import as a fuel at its power stations.
Summit Power, the largest independent power producer in Bangladesh, has signed a memorandum of understanding with Japan’s Mitsubishi and Diamond Gas to jointly develop a $3 billion LNG-to-power project at Matarbari. The project includes a regas terminal and a two-unit gas combined-cycle power project with a total capacity of 2,400 MW.
London-based SDX Energy Inc. has made a new onshore gas discovery in Morocco, at is SAH-2 well on the Sebou permit. The latest find helps advance the government’s policies to promote renewables and cleaner-burning natural gas while seeking to reduce dependence on seasonal LNG imports.
Turkey's Karadeniz Energy Group has selected Gas Enec of South Korea to supply LNG regasification systems to be installed on three of its power barges. Karpowership recently started to develop floating regas units (FRUs) to their existing Powerships to make them suitable for LNG intake directly from a storage vessel.
Low winter temperatures have caused a surge in Spain’s use of natural gas and demand from the power generation sector ended the month with an increase of 26.9%, to 4,520 GWh. Yet despite this firm domestic demand, the Spanish TSO Enagas on February 28 exported some 22 GWh of natural gas to neighbouring France.
Myanmar’s energy minister U Win Khaing has issued a “notice to proceed” to investors in four gas power projects which together will add 3,000 MW of capacity to the country’s electricity grid. Three of the projects will run on regasified LNG which Myanmar is looking to import via a floating storage and regasification units (FSRU) by 2020.
A staggering $240 billion overall investment, with $140 billion in upstream, would be needed in member states of the Gas Exporting Countries Forum (GECF), often called Gas-OPEC, over the next 5 years to meet the growing gas demand. Such money to be spent is highly unlikely, however, the GECF had to admit considering the slowing pace of global gas demand post 2025.