Coal is likely to be the largest application of carbon capture, utilisation and storage (CCUS), expects Laszlo Varro, chief economist at the International Energy Agency (IEA). Around 85% of the reduction in coal plant emissions came from efficiency and renewables, leading to fewer coal plants running less hours and only a minority from capturing the emissions from continuous operation.
For January, another 250 billion cubic feet (bcf) is likely to be lost in gas demand amid unseasonably warm weather, erasing fears about a storage deficit. On the contrary, if the mild weather continues Energy Aspects expects end-March inventories to remain north of 1.55 trillion cubic feet (tcf).
Power producers in Europe, as well as parts of the U.S. and Australia, have been feeling the pinch due to a decline in wholesale energy prices brought about by stagnant demand, low gas prices and higher output of generation with low marginal costs, notably renewables. New-builds are no longer profitable which puts reserve margins at risk, hence the International Energy Agency (IEA) calls for a re-design of competitive power markets.
Mitsubishi Hitachi Power Systems (MHPS) chief executive Kenji Ando has used his New Year address to warn of a difficult business environment in 2019, with “turbid conditions” in the thermal power generation sector. “Our competitors are also seeing sharp declines in business results,” he said, stressing MHPS will forge ahead with business restructuring.
Wärtsilä has stared site work for a 378 MW power plant being supplied under an EPC contract in El Salvador. Ordered by Energía del Pacífico, the facility will be one of Central America’s first LNG-fuelled power plants, with a floating regas terminal being built nearby.
The spread in natural gas spot prices between the Henry Hub in Louisiana and the Appalachian region continued to narrow over the year just past. Prices fell at Henry Hub throughout December, and as of January 2, 2019, they were at around $2.79/mmBtu while Appalachian prices kept trading at a discount due to pipeline constraints.
By 2024, China’s market for flow vanadium energy storage is likely to exceed $3 billion. The new technology is based on domestic resource and offers virtually unlimited storage capacity, long duration, and rapid response time. A 200MW/800MWh vanadium flow battery is under development in Dalian, with the batteries made in a nearby factory of Rongke Power.
Following eight years of global economic growth, economists agree a downturn is simply a matter of when and how deep. The worst case scenario, according to Wood Mackenzie, would be a recession occurring in 2020 or 2021 – just after 60-100 mtpa of LNG has taken FID.
Aspiring to build a 5,700 km gas pipeline from Nigeria to Morocco, Nigerian National Petroleum Corporation (NNPC) has awarded the first phase of a Front End Engineering and Design (FEED) contract to Phenspen. FEED Phase I entails a detailed design of the pipeline system, its route and project economics.
Idled power plants in India that are stranded due to a lack in gas supply might soon get regasified LNG at a subsidized rate, financed the government-run Power System Development Fund. The aim is to revive flexible gas power plants through an e-bid RLNG scheme.
SeaFloat, a barge-mounted power plant based on SGT-800 gas turbine, will be provided by Siemens and the maritime arm of ST Engineering for Bermuda-based Seaboard Corp. The 145 MW power barge, dubbed Estrella del Mar III, will supply the Dominican Republic with electricity at a lower cost than a land-based plant staring from spring 2021.
The spot energy index in the S&P Goldman Sachs Commodity Index (GSCI) has ended the year 21% lower than at the beginning of 2018, despite a 25% rise between January and October. The plunge of the index in the fourth quarter was caused by steep declines in crude oil and petroleum product prices.
Russia’s gas giant Gazprom, the largest supplier to the EU, is accelerating efforts to export gas to China. Construction of the ‘Power or Siberia’ pipeline to northern China via the Altai pass is now more than 91% complete. In pre-developing the huge Chayandinskoye field, Gazprom said it is “acting in strict compliance” with the start of Russian gas deliveries to China due on December 20, 2019.
Britain’s energy firm Drax has completed the £702 million acquisition of a 2.6GW portfolio of gas, hydro power and energy storage assets operated by Scottish Power from its parent company Iberdrola. Now, Drax aims to expand the Cruachan pumped storage plant by up to 600 MW and maximise the flexibility of the four CCGTs with a combined capacity of 2 GW.
Gas-burn in the electric power sector is forecast to peak around 2035 and start declining from 2040, by when wind and solar are set to become the dominant energy sources. Data by the classification society DNV GL shows that gas demand in Europe already peaked in 2010, and will do so in North America by 2020, whereas in South-East Asia and China it will only peak in the mid-2030s.