A tender for the procurement of LNG for 500 MW decentralized power in Indonesia will be opened by Singapore in due course. Maritime minister Luhut Pandjaitan announced the LNG cargoes will be shipped to small-scale, decentralized power plants (25-50 MW) in seven locations in close proximity to Singapore.
Excess growth in global LNG supply, notably through the ramp-up of US LNG through 2018 and into 2019, will make European gas prices “move through the coal floor [price]”. Fuel-switching in the Western European power market, according to Societe Generale, will ultimately be determined by short-term gas prices hinging at the variable cost of shipping a US LNG cargo to Europe.
Falling costs for renewables and energy storage will squeeze out gas-fired generation in South Australia as early as 2025, Wood Mackenzie and GTM Research find. By then, wind, solar and battery costs are seen decline by 15%, 25% and 50% respectively – hence they offer a “lower cost alternative” to CCGTs, which cover the bulk of South Australia’s base load power today.
At events, particularly major sporting shows, there is need to fast-track power solutions and maintain a stable, continuous supply. RnRMarketResearch has singled out the sector as the growth driver for rental power solution: Expanding at over 8% per annum, the global power rental market is estimated to be worth $20.64 billion by 2022.
Demand from the industrial sector becomes the main engine of gas consumption growth, replacing power generation, where gas is being squeezed by growing renewables and competition from coal, the International Energy Agency (IEA) says in its latest five-year forecast Gas 2017. Global gas demand is forecast to rise from 3,630 bcm today to nearly 4,000 billion cubic meters (bcm) by 2022.
Spurred by the global expansion in LNG supply and trade, the growth of natural gas supply in absolute terms will outperform that of all other energy sources, notably coal and oil, CEDIGAZ said in its latest Medium and Long Term Natural Gas Outlook 2017. According to projections made by the Paris-based energy consultants, the share of gas in the world primary energy supply will rise from 21.2% in 2014 to 23.9% in 2035.
Dubbed a ‘Test of German power’ by the Financial Times, the construction of the second pipeline arm of North Stream 2 has sparked protest by 13 EU member states but German energy majors, including BASF, Wintershall and E.on are adamant that implementation of the project is vital for Europe’s energy security. Boosting Russian gas exports to Greifswald may bolster the German-Russian relations but it looks going against the principle of the ‘Energy Union’, an aspirational project launched by the European Commission to diversify supply sources.
The Asian Development Bank’s (ADB) focus on financing infrastructure in India’s lagging states helped promote inclusive economic growth, spurred the development of some power generation projects to help increase electrification rates. During the year 2016-17, total energy availability increased by 4.1% over the previous year and the peak met increased by 5.7%, according to India’s Central Electricity Authority (CEA).
Reliance Power still faces uncertainty over the source of LNG supply for its 718-MW gas-fired power plant project in Bangladesh, and is awaiting a government decision on the matter. The Indian energy company is the first to build a power plant that will run on regasified LNG in neighbouring Bangladesh; but to operate the plant near full capacity Reliance needs around 110 million cubic feet per day (mmcf/d) of natural gas as fuel.
California ISO, the state power grid operator, has been given the regulatory green light from the California Energy Commission (CEC) to carry out a review to consider alternatives to the Puente Power Project (P3), proposed by NRG Energy. In its regulatory order, the CEC said it "understands development of such a study is normally a complex and intensive undertaking, but is hopeful that the California ISO will be able to derive a simplified set of assumptions that will allow the ISO to provide meaningful results within the Committee’s timeline."