Daily News

Strikingly, China has excluded LNG from a list of additional tariffs to be levied on U.S. imports despite the nascent trade war between the two super powers. Beijing’s move shows “LNG is clearly seen as an essential good," and in the event of an escalation Wood Mackenzie expects LNG to remain outside the bounds of any additional tariffs.

Published in Markets

Spain’s Gas Natural Fenosa (GNF) has renewed a natural gas supply contract with the Algerian incumbent Sonatrach until 2030. Price or volume details were not disclosed, but GNF stressed the deal guaranteed a stable cost structure for more than 40% of Spain’s overall gas procurement.

Published in Markets

Dry natural gas production in the United States is about to reach a fresh record of 81 Bcf per day, spurring LNG export growth and pushing down prices this year. According to the U.S. Energy Agency (EIA), Henry Hub prices are forecast to average $2.99/MMBtu for the full year 2018, but notch up to $3.08/MMBtu in 2019.

Published in Markets

National Grid has projected Britain’s de-rated power margin for winter 2017/18 projected will be 6.2 GW, or 10.3%, anticipating a net flow of electricity from Continental Europe to the UK at peak times. Considering the current price spread, the TSO also expects a net flow from the UK to Ireland, though this may be reversed in cases of high wind levels in Ireland.

Published in Markets

China’s LNG trucking capacity is set to double in medium term and WoodMackenzie analysts see trucked LNG and distributed generation have the potential to create synergies. Yet, few distributed generation is currently fuelled by trucked LNG because most of these power units are in areas with pipeline coverage and enjoy discounted gas prices already.

Published in Markets

China's National Development and Reform Commission (NDRC) will unify China’s residential and industrial city-gate natural gas pricing systems from June 10 to better reflect rising demand and costs. The new mechanism will allow gas prices to rise by no more than 20% from a benchmark price, NDRC stated, which is “more flexible” than the existing one which since 2010 kept a ceiling on residential gas prices at at 1.4 yuan (about $0.22) per cubic metres.

Published in Regulation & Policy

Competition is fierce for nuclear power in the United States as energy mix is being transformed by comparatively cheap natural gas, rising supply of renewable energy, and limited growth in overall electricity demand. Sensitivity analysis in the EIA’s Annual Energy Outlook 2018 (AEO2018) show the potential effect on the U.S. nuclear power fleet of different assumption for reactor operating cost, future gas prices and carbon policies.

Published in Markets

Bangladesh has become the first new LNG importing nation in 2018 with the arrival of Excelerate Energy’s FSRU Excellence at Moheshkhali Port on April 23, carrying a commissioning cargo from Qatar. “Bangladesh suffers from two crippling energy shortages: electricity and gas. This is the first step of a significant ramp up of LNG.” commented Wood Mackenzie's director of gas and LNG research, Nicholas Browne.

Published in Markets

Japanese utilities TEPCO and Chubu Electric, through their JERA joint venture, are planning to invest around $935 million on new power generation projects in the United States by 2030. JERA said it specifically targets to acquire stakes in gas-fired power units, as those are seen to become “increasingly price competitive.”

Published in Projects & Finance

Enel Generación Chile S.A., formerly known as Endesa Chile and Empresa Nacional de Electricidad, is now almost fully in the hands of the Italian utility group Enel. After minority shareholders, including Endesa, accepted Enel’s public tender offer to purchase their shares, Enel Chile managed to raise its shareholding in Enel Generación Chile to 93.55% from approximately 60%. The move is part of Enel’s business restructuring in Chile.

Published in Markets
Page 1 of 15

News in Brief

GE risks €35m fine in France

June 19 – French government officials said GE will have to pay penalties if it fails to realise its pledge to create 1,000 jobs in France by the end of this year. GE made the promise in 2014 as part of the €12.4 billion takeover of Alstom’s power generation and grid business. "The contract called for a 50,000 euro penalty for every job not created," France’s labour minister Muriel Penicaud told BFM television.

MAN to deliver engines to Oman LNG

June 18 – Oman LNG is seeking to develop a new gas engine-driven power plant at its Qalhat facilities. MAN Diesel and Turbo will deliver the gas engines and associated equipment, while KBR will manage the project execution, supply the generators and ensure safety requirements.

CHP market to top $27bn by 2023

June 15 – Global market for combined heat and power is estimated to grow at an annual rate of 5.48% to reach $20.69 billion in 2018 and $27.01 billion by 2023. According to Markets and Markets, the main growth drivers are demand for energy efficiency and government incentives and programs to promote CHP.

Enel starts battery storage in the UK

June 14 – Enel Group’s first utility-scale, stand-alone battery energy storage - the 25 MW/12.5 MWh Tynemouth project - is about to start operations, supported by a four-year contract with British System Operator National Grid to provide grid-balancing services. Enel bought the storage venture from Element Power in May 2017, and invested about 20 million Euros in the overall project, including construction.

New Mach Gen files for bankruptcy

June 13 – U.S. power generator New Mach Gen has filed for bankruptcy, presenting a pre-packaged reorganisation plan. New Mach Gen operates three gas-fired power plants with a combined capacity of 2,500 MW in Athens, NY, Maricopa County, Arizona and Charlton, Massachusetts.

Siemens, Covestro partner on digitalization

June 12 – Siemens and Covestro Deutschland have agreed a Joint Business Development Plan that reinforces their longstanding, trust-based partnership in the field of digitalization. Siemens is developing predictive process data models for manufacturing through the use of its cloud-based IoT operating system, MindSphere, while Covestro will introduce its process technology and production expertise to generate joint marketing solutions.

U.S. hurricane season underway

June 11 – With June 1 marking the official start of the 2018 hurricane season in the United States, Dominion Energy has urged customers to prepare and emergency storm kit. The Virginia-based utility is continuing day-to-day preparations for a busy storm season.

EIA broadens energy survey

June 8 – For electricity, the number of end-uses estimated in the EIA’s Residential Energy Consumption Survey (RECS) has expanded from 4 to 26 by adding estimates for various types of equipment. Itemized estimates collectively cover 87% of residential electricity use.

Cost-effective transition towards CHP

June 7 – COGEN Europe, an industry lobby group, has underlined the sector’s commitment to a “cost-effective transition towards a sustainable future in Europe” by means of utilizing combined heat and power generation. CHP provides flexibility across heat, electricity and gas networks and sectors by relying on short, medium and long-term storage to balance energy supply and demand.

Europe’s largest battery operational

June 6 – With a capacity of 48 MW/50 MWh, Europe’s largest battery EnspireME has been in operation since the beginning of this month. Located in Jardelund, northern Germany, the battery will be used as a backup by the local grid operator and participate in the weekly auction of primary reserve capacity. It was built by the Dutch utility Eneco and Japan's Mitsubishi in eight months.

BlueVault powers offshore operations

June 5 – Siemens is applying its electrification experience in the marine industry to offshore oil and gas, focussing on reducing emissions and risk in harsh operational environments. BlueVault, Siemens’ advanced lithium-ion battery-based solution, is suited for both all-electric and hybrid energy-storage applications.

Duke Energy opens new CCGT unit at Lee Station

June 4 – U.S. utility Duke Energy has been continuously operating its new 750 MW combined-cycle gas power unit at the W.S. Lee Station in Anderson County, South Carolina, since the beginning of June. Construction of the $700 million gas power unit started in March 2015, creating more than 600 construction jobs. Now fully operational, the CCGT is expected to generate about $4.4 million in tax revenue for Anderson County in 2019.

Reliability risk in California, Texas

June 1 – California and Texas are two potential tight spots for reliability of electricity this summer, even as most regions seem prepared to meet peak summer demand, the US Federal Energy Regulatory Commission (FERC) notes. In its 2018 energy market and reliability assessment, the regulator predicts warmer than average temperatures which could stir record high gas-burn for power generation.

Siemens to roll-out energy monitoring system at Rexel

May 31 – Electrical wholesaler Rexel Austria has placed an order with Siemens to deliver a cloud-based energy monitoring system which is meant to achieve a 15% reduction in energy use at its logistics center in Weisskirchen. Siemens’ cope of supply includes 66 communication-capable 7KM PAC 1500 and 7KM PAC 4200 power measuring devices, powermanager energy monitoring software, and connection to its cloud-based operating system MindSphere.

MHI calls off tie-up with JTEKT

May 30 – Mitsubishi Heavy Industries (MHI) has discontinued talks to form a business partnership with JTEKT Corp after both parties terminated a basic partnership, agreed in December 2017 together with Mitsubishi Heavy Industries Machine Tool (MAT) that included capital participation in JTEKT. All these plans have now been abandoned.

Sembcorp hires Contact Energy CFO

May 29 – Singapore-based Sembcorp has hired Contact Energy CFO Graham Cockroft to be its new CFO as of September 3, 2018. Sembcorp’s current CFO, Koh Chiap Khiong has moved on to head of the group’s utilities business in Singapore, Southeast Asia and China.

UK remains net electricity importer

May 25 – Great Britain remains a net importer of electricity via interconnectors at peak times in all of National Grid’s 2018 Future Energy Scenarios (FES). The UK grid operator consequently assumes and supports an expansion of the island’s interconnector capacity to reach up to 20 GW by 2050.