Southern California Gas Company (SoCalGas) and Aliso Canyon Technical Assessment Group have both voiced concerns that regional natural gas infrastructure issues in Southern California could affect electricity reliability this summer. Should these bottlenecks result in lower gas inflows into storage, there is a risk of significantly reduced gas availability in the upcoming winter.
Though the Pakistani government hailed the sudden surge in power production and supply, load-shedding still persists and cripples the local industry. Electric power supply jumped 48% to over 10,135 GWh in April, a substantial rise compared with 6,879 GWh in April last year, flowing the startup of three RLNG-fuelled power plants in Punjab province.
Crippling gas supply shortages will soon be a thing of the past in Bangladesh as the country is about to start importing LNG, with the first cargo scheduled to arrive by mid-April. Though LNG imports will bring some relief, increases in gas-fired power generation capacity are likely to be limited to 1.0 GW in 2018, and 1.4 GW in 2019.
British factories have been told to shut down parts of their operation to help National Grid avert a looming gas supply crisis. A ‘Gas Deficit Warning’ was issued early this morning, with National Grid stating it had experienced “gas supply losses overnight” which exacerbates pressure on the system as this week's cold snap continues.
The US Federal Energy Regulatory Commission (FERC) has approved the PennEast pipeline in a 4-1 vote, acknowledging the clear need for more gas transport infrastructure along the East Coast. The $1 billion PennEast interstate pipeline will bring up to 1 billion cubic feet of daily low-cost Marcellus gas to customers in southeast Pennsylvania and New Jersey.
Jan 23 – Robust winter demand has propelled up gas prices in Northern China, prompting the government to ease restrictions on coal-burn for power generation. Domestic gas production subsequently increased. In December alone, gas production stood at 13.61 Bcm, up 2.3% year on year - the highest monthly rise since 2010, according to the National Bureau of Statistics (NBS).
China’s new'2+26' cities policy – a pledge to cut emission in the country’s 28 northern cities by 15% year-on-year in the winter months – is limiting the use of coal for power generation and in industries. As an alternative to coal, gas demand could rise by 23 bcm this year compared to previous winters, according to WoodMackenzie projections. In fact, Chinese LNG imports almost doubled last month, surging 95.7% compared to October 2016, to reach 3.57 million tonnes, according to data from the General Administration of Customs.
The Iraqi Ministry of Electricity (MoE) has awarded GE Power a $400 million contract to develop 14 electric substations on a turnkey basis, including supply of transformers and circuit breakers to rehabilitate existing substations. The aim of the project is to bring electricity to remote areas in Iraq with crippling power shortages.
Alarmed about the scale of gas shortages in Australia, Prime Minister Malcolm Turnbull is considering restrictions on LNG exports from Australia’s eastern coast. Santos, Shell and ConocoPhillips have been urged to help plug an estimated shortfall of up to 17% of market demand in 2018.
EnergyAustralia, one of the nation’s three big power generators, is understood to have hired Morgan Stanley to advise on a bid for IFM Investor’s gas-fired power stations in Victoria. The sale of two Ecogen assets, with a combined capacity of 960 MW, comes amid heightened uncertainty over Australia’s clean energy policy which has propelled up gas and electricity prices.