Germany-based RWE and Tokyo Gas, one of the world’s largest LNG buyers, have partnered on gas sourcing, trading and shipping. The two players agreed a framework for reducing costs through optimized shipping of US LNG, procured by Tokyo Gas.
Dynamics of the global energy transition are driven by the speed of electrification and the competition between flexible gas power plants and renewables plus energy storage. Margins in the downstream power market are becoming more attractive, as price discrimination allows for better value capture downstream than in the generation business.
Construction works have started for SEE’s new 850-MW Keadby-2 combined-cycle gas power plant in North Lincolnshire. The £350 million project, built by Siemens as a full turnkey solution, will be Britain’s most fuel-efficient CCGT with an efficiency level of 63%.
The Asian Development Bank (ADB) agreed to give a $227.7 million loan to Gulf SRC Company to finance the construction and operation of a 2,500 MW combined-cycle gas power plant in Chonburi Province of Thailand. The technology of the CCGT is meant to achieve over 63% thermal efficiency.
Flexible gas power plants will have to fill the capacity gap after Toshiba abandoned its £15 billion Moorside nuclear power venture in Cumbria, and will start to wind up NuGen in January. Moorside could have covered 7% of the UK’s electricity needs by 2025 – a share that now needs to be filled by fossil fuels, notably natural gas.
Chevron’s gas aggregation company in Nigeria has agreed to extend gas deliveries to Egbin Power. Under the deal, Chevron will supply 145 million standard cubic feet per day (MMBtu/d) through the Nigerian Gas Company (NGC) to Egbin’s 1,320-MW power plant in Ikorodu. Kola Adesina, chairman of Egbin Power, said the additional gas supply should help boost Ikorodu's capacity to 5,000 MW over the coming five years.
Austria’s OMV is close to obtaining a stake in the development of Urengoyskoye, one of the world’s largest fields at the time of discovery in Russia’s Yamal region near the Arctic Kara Sea. A draft contract has been discussed by Gazprom chairman Alexey Miller and his counterpart at OMV, Rainer Seele that will see the Austrian utility participate in Urengoyskoye’s Blocks 4A and 5A.
As the world’s top oil company, ExxonMobil does not need to worry about size when it comes to snapping up assets. The Texas-based oil giant is tipped as a potential buyer of Endeavor Energy Resources, the largest privately-held oil and gas producer in the U.S. Permian basin – a takeover could cost over $10 billion.
Substations in the digital age are increasingly known as “the heart of the power supply system,” connecting parts of the grid that operate at different voltage levels. Siemens’ vision is a largely decarbonized energy system in a “near-to-all electric world”. The technology is already there, but utilities and grid operators still need to fully embrace it.
General Electric has signed a multiyear service agreement with GEL Utility to support the power generation unit at Nigerian National Petroleum Corps’s refinery in Port Harcourt. The aim is to achieve uninterrupted power supply at Nigeria’s largest refinery, which currently produces up to 210,000 barrels per day (bbl/d).
Rebounding oil prices are putting energy pricing reforms under pressure in some countries, with fuel subsidies creeping higher again after having fallen from a high in 2012 of more than a half trillion dollar. New IEA data for 2017 show a 12% increase in the estimated value of fuel subsidies, to more than $300 billion.
Natural gas production in the United States is hitting new records after output increased to an average 86.9 Bcf/d in October, and continues to rise. In its Short-Term Energy Outlook (STEO), the U.S. Energy Information Administration (EIA) said 2018 production will average 83.2 Bcf/d, and is seen to top 89.6 Bcf/d in 2019. This supply glut is likely to push down prices at Henry Hub.
Coal exports from New South Wales, Australia, are seen entering a phase of “terminal long-term decline” as key buyers are turning away. Exports of thermal coal out of the Port of Newcastle peaked three years ago and analysts now observe a steady decline as Asian markets transition towards cheaper more sustainable renewables.
Northern Indiana Public Service Co. (NIPSCO) has alerted state regulators about plans to retire four coal-fired power units by 2023, and another one by 2028. The utility’s latest Integrated Resource Plan details NIPSCO’s efforts to produce 65% of its electricity from renewables and at least 25% of its output from natural gas.
Advent International, a Boston-based private equity group, has acquired GE’s Distributed Power business and is now a stand-alone energy company, rebranded as INNIO. The transaction includes the Jenbacher and Waukesha product lines, with main operating sites in Austria, Canada and the U.S.