Though Europe’s green energy transition is gaining pace, natural gas demand is seen grow significantly. Wood Mackenzie advises European utilities to share some cross-hub price risk with LNG producers, or else they risk losing market space to international oil companies or state-run energy majors like Gazprom.
Manila Electric Co. (Meralco) has warned the Philippine island of Luzon may face power shortages in the first week of October, when up to 900 MW of gas-fired capacity will be offline for maintenance. Repairs coincide with the four days maintenance shutdown of the huge Malampaya gas field.
New York-based Con Edison and eight other U.S. utilities have filed a legal challenge against the Trump administration’s Affordable Clean Energy (ACE) rule. The claimants say the rule undermines efforts to curb emissions by investing in renewables and energy efficiency.
The U.S. shale revolution and falling capital costs for renewables are reshaping the power mix both domestically and abroad, the International Energy Agency (IEA) noted. Future production growth and exports will depend on the complementary build-out of oil and gas pipelines, as well as LNG terminals.
German Chancellor Angela Merkel’s planned climate action measures could cost at least 40 billion Euros over the next four years. Protecting the climate is a “challenge for humanity” and needs “a real feat of strength" which will “of course cost money,” she said prior to the government’s launch of a climate package on September 20.
By 2030, new-build renewables will outcompete existing fossil fuel generation on energy cost in most regions. According to McKinsey analysts, the northwest of the United States is “the exception with tipping-points post 2035,” due to low gas prices and limited potential for solar photovoltalic.
Drone strikes have reduced Saudi Arabia’s oil output by half which is feared to have reverberations on global energy markets. An increase in oil prices is likely to lead to a corresponding rise in gas and electricity prices, which will be reflected in higher tariffs for customers in the UK and most western economies.
Kogas and Energy Capital Vietnam (ECV) are forging ahead with a privately-funded LNG regas terminal, storage and gas supply system to underpin their 3,200 MW gas-fired power project near Mui Ke Ga, some 150 kilometres from Ho Chi Minh City. KBR will provide a feasibility study by the end of September.
European-led Delta Offshore Energy is finalizing plans to develop an LNG import terminal and a 3,200 MW power station in Vietnam’s Bac Lieu Province. The integrated project is due to start up in 2023, underpinned by LNG cargoes from the Magnolia liquefaction project in the U.S. state of Louisiana.
Construction is being fast-tracked on the Thi Vai LNG import terminal and adjacent Nhon Trach unit-3 and 4 power units in the southeastern region of Vietnam. Samsung C&T and PetroVietnam seek to get the integrated LNG-to-Power project on stream by 2022 for an investment of about $286 million.
Mass Energy Group Holding (MGH) and GE Power have won a contract to develop the third phase of Iraq’s largest power plant. Expansion of the Bismaya combined-cycle gas power station will add up to 1.5 GW by 2021, bringing its total capacity to 4.5 GW.
Iraq’s Ministry of Electricity has awarded a $1.3 billion contract to Siemens and Orascom Construction to rebuild Baiji 1 and 2 power units with a combined capacity of 1.6 GW. Works are meant to be completed 28 months after financial close.
Emirates Water and Electricity Company (EWEC), the utility catering for Abu Dhabi, is about to launch tenders for a 2,400 MW combined-cycle power project at Fujairah as well as a 1,500 MW solar project. Up for grabs are development contracts worth some 4.4 Emirati dirham, or $1.2 billion.
Gas and variable renewables will be the only energy sources for which demand is higher in 2050 than today. Rapidly falling capital costs for solar photovoltaic will make the technology 25% to 50% cheaper than new gas-fired power projects, DNV GL analysts told Gas to Power Journal.
Malay property and industrial developer Tadmax Resources has received government approval to develop a 1,200 MW integrated gasification combined-cycle power plant (IGCC) on the island of Pulau Indah. Posco is building the plant, with a planned in-service date in January 2023.