The U.S. state of Pennsylvania has seen a record increase in natural gas production due to a rise in permitting and drilling activity, combined with the expansion of regional pipeline capacity. Production averaged 5 billion cubic feet per day (Bcf/d) in 2017, an increase of 3% and a record for the state, with output originating largely from shale gas plays in the Appalachian Basin.
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).
Black-start technology, supplied by Siemens, is providing 300MW critical backup power for San Francisco via the upgraded Trans Bay Cable (TBC). The project includes a 53-mile HVDC cable that runs under the San Francisco Bay, capable to swiftly restore power supply in the event of a network outage.
Fuel cell systems, typically producing hydrogen from fossil fuels, are used for a variety of applications in the United States such as providing backup energy at small facilities such as hospitals, or data centers. At the end of 2016, there were 56 large-scale fuel cell generating units installed, totaling 137MW of net summer capacity. Collectively, fuel cells provided 810,000MWh of electricity and made up 0.02% of total U.S. generation, according to the EIA’s Form EIA-860, Annual Electric Generator Report.
Australian commodities company BHP Billiton is continuing to exit its onshore assets in the southwest of the United States. “We expect to receive bids by June 2018, " BHP said, addding it aims to "proceed with negotiations to potentially announce one or several transactions in the first half of the 2019 financial year.”
Global installed capacity of aeroderivative gas turbine is forecast to surpass 21 GW by 2024, driven by mounting requirement for uninterrupted heat and electricity supply in remote off-grid areas. In the oil & gas upstream sector, in particular, there are numerous activities that can be supported by deploying small-scale aeroderivative gas turbines.
Golar Power, a venture between Golar LNG and Stonepeak Infrastructure Partners, has reached financial close on the 1.5GW Porto de Sergipe LNG-to-power project in northeast Brazil. The project company CELSE will receive $1.340 billion of non-recourse financing that will be used to fund the remaining Capex of the $1.74 billion project. Start-up is scheduled for January 2020.
Dominion Energy, owner of the Cove Point LNG facility in Maryland, is pulling out all the stops to acquire Scana Corp and its South Carolina natural gas and power assets. Regulatory approval for the merger is still pending. Now Dominion put forward a study, saying the merger would bring a $18.7 billion boost to the economy of South Carolina.
Gauging incremental gas demand, derived from new power plant projects worldwide, Energy Aspects says most of Asia’s new-build capacity drives "additional LNG demand,” while North American projects are “all likely to be fed by local shale gas. Analysts found there is over 37 GW of new gas-fired power generation capacity under construction in LNG importing countries which, upon start-up, will directly impact global LNG markets.
Chart Industries, the US LNG and energy equipment maker, has returned to a first-quarter profit following internal restructuring and amid a rise in its order-book. Order activity has risen 53%, or $111.4 million ($74.4 million excluding Hudson Products) above the first quarter of 2017, said Chart with reference to its acquisition of rival Hudson.
Iquitos, a city in Peru’s jungle region, has a new source of baseload electricity supply following the commissioning of seven MAN 32/44R engines at a power plant, operated Telemenia and V-Power. Logistic for the project had been very demanding, due to remote location of the port city of Iquitos – a gateway to jungle lodges in the northern Amazon.
Making its debut in the Mainland China market, Siemens has secured an order to supply two H-class gas turbines and other components for installation at the CHD Guangzhou Zengcheng combined cooling, heat and power plant (CCHP) project. The customer is Huadian Fuxin Energy, part of the state-owned utility China Huadian Corp, and start of the CCHP's commercial operation is scheduled before the end of 2019.
Energy companies, investors and policy makers in Germany need to move faster to not miss the tipping points in the energy transition, which would leave many conventional energy investments stranded and could see taxpayers picking up the bill, experts warned at an industry event in Berlin. Blackrock Vice President Sverker Akerblom said there was enough capital available and renewables were competitive, but there were simply not enough projects to invest in. "A global carbon price would be important to drive investment," he said.
Urging for quick action to smarten up electricity transmission networks, Enel CEO Franceso Starace has criticised the lack of support from regulators and policy makers. The need for digitalisation “is very difficult for regulators to understand,” he said at an industry conference in Berlin, but “if you forget the networks, dear ministers, they will not carry on.” For utilities, transiting from fossil fuels to renewables, the grids are seen as a “very sexy part” of the value chain but needed a lot of investment.
Dry natural gas production in the United States will keep growing over the next three decades, driven by demand from the industrial and electric power sectors. Beyond 2020, production is likely to grow faster than consumption, according to the EIA’s Annual Energy Outlook 2018, with excess volumes to be exported to Mexico or sold on global LNG markets.