Exhilarated by the success of bringing electricity to every village in India, Prime Minister Narenda Modi has now moved the target of achieving ‘universal household electricity access’ to the end of this year. This next “last mile” challenge will not be easy to meet but will bring huge rewards: it will improve the lives of over 230 million people.
Regardless of soaring costs, LNG imports by India increased 16.8% in March compared with the year-ago period. Supply from Qatar and Nigeria was complemented by the first shipment of US LNG on March 30 – the start of a 20-year supply contract between Cheniere Energy and Gas Authority of India (GAIL).
Uranium concentrate production in the United States has fallen to a record low of 2.44 pounds in 2017, down 16% from the previous year. The steep drop in domestic production comes in reaction to historically low prices, and alternate supply sources from various clean-up sites and plant conversions.
Japan’s prime gas importer JERA, in consortium with Marubeni, is evaluating options of shipping LNG to the Australian east coast where to supply a new gas-fired power plant. With this move, JERA is seeking to divert excess supplies under longterm import contracts by selling it as spot LNG to high-priced markets around Sydney and Melbourne. FID on a floating LNG regas project with up to 2 mtpa will be taken later this year.
The February 2018 futures contract for natural gas on the New York Mercantile Exchange (NYMEX) is trading at a discount to the current spot price. This pricing pattern provides economic incentives to withdraw natural gas from storage to avoid exposure to the spot market.
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.
Wärtsilä has entered into a 10-year operation and maintenance agreement with Emerging America, a private investment firm jointly owned by Mexican investors and the Abraaj Group of Dubai, to ensure reliable operations of a 110 MW gas power plant in Chihuahua, Mexico. The facility, currently under construction, will be the first engine-driven power plant built specifically to serve the Mexican spot market.
Nov 7 – Flow-Cal Inc., a Houston-based a developer of measurement data management software, has launched CALCit.Cloud, a an on-demand measurement calculator for natural gas and petroleum liquids. It allows users to perform various spot calculations, including gas volume, plate size, liquid correction factors and speed of sound. The source code of the application is in C computer language, or as a DLL that can be integrated into other applications.
Several major US energy companies plan to accompany US President Donald Trump and Commerce Secretary Wilbur Ross on a visit to Beijing, starting November 8. The aim is to close deals on selling US LNG to China, along with other American-made products, in order to close the widening trade deficit between the world’s two biggest economies.
Consumption of natural gas in China is anticipated to tripple to reach 57 billion cubic feet per day (Bcf/d) by 2040, and emboldened buyers are turning to spot LNG as the cheapest supply option except for the winter months. “PetroChina and CNOOC are actively purchasing spot in addition to their contracted volumes,” says Wen Wang, senior consultant, Asia gas and power, Wood Mackenzie. Sinopec has already ventured in to gas trading, she told Gas to Power Journal, signalling it out as “the only company that are diverting cargoes among the three NOCs.”