As Japan’s gas-burn in the power sector falls amid competition from coal, nuclear and renewables, the country is expected to lose its position as the world’s No.1 LNG importer to China by 2022. Despite sustained low LNG spot prices, it is cheaper for Japanese utilities to burn coal than natural gas.
With Europe’s gas demand seen surge nearly 30% to 400 Bcm by 2035, Russia is eager to grow its market share. Wood Mackenzie expects Gazprom will review its traditional, pipeline-based export model and turn to LNG instead, avoiding quarrels over new interconnectors like Nord Stream 2.
Jamaica’s Prime Minister Andrew Holness has confirmed the country is on track to generate half of its electricity from imported natural gas and renewables. The recent commissioning of New Fortress Energy's floating storage and regasification unit (FSRU) at Old Harbour helped boost the share of clean fuels to 44% of Jamaica’s energy mix.
Thüringer Energie AG (TEAG) has tasked MAN Energy Solutions and MMEC Mannesmann to build a new gas-engine driven cogeneration plant in Jena, Germany. The new CHP unit will expand an existing plant and is due to start operating in the 2021/22 heating period.
CNPC, Eni, Socar and commodities trader Trafigura are striving to win a LNG tender for 240 cargoes over 10 years from Pakistan LNG, which seeks to secure stable gas imports for power generation. Analysts said the tender is likely to cost up to $6 billion at today’s prices, or $25 million per cargo.
German Chancellor Angela Merkel has thrown her political weight behind the introduction of a price on CO2 emissions in the transport and buildings sector, although her climate cabinet will have the last say on September 20. “I advocate such a price,” Merkel said, stressing new paths had to be tried to reach the country’s climate targets.
Diversifying supply sources, Pakistan strives to secure attractively-priced LNG for power generation. Qatar is currently the country’s main supplier but the Pakistani government hopes to buy LNG from Australia and the U.S. at a price of around $3.5 per million British thermal units in the near future.
MAN Energy Solutions' new digital platform CEON collects and evaluates operating and sensor data to enables real-time monitoring of power-plant engines, turbines and compressors. Integrating data from MAN machinery and its operational environment, the new digital platform uses intelligent analysis tools for evaluation and forecasting.
China Energy Group has decided to build 6 gigawatts (GW) of ultra-low emission coal-fired capacity this year. In regions with poor renewables potential, the government supports the use of coal as a “practical measure,” the utility said, as “gas is still too expensive.”
In the Permian, the gas-to-oil ratio keeps rising at mature shale plays. The mismatch between surging gas production and constrained takeaway pipelines has pushed down gas prices into negative territory, forcing well shut-ins from producers like Apache and Chevron.
Chart Industries, the US LNG and energy equipment maker, has posted a rise in net income and revenues after receiving orders across all sectors from large liquefaction plants to small-scale LNG-to-Power installations and completed the acquisition of Harsco Air-X-Changers.
Mitsubishi Hitachi Power Systems (MHPS) has signed a preliminary deal with Uzbekistan’s energy ministry to expedite a Comprehensive Service and Maintenance Program (CSMP) for the country’s thermal power plants.
Wärtsila’s energy segment has lost market share as the performance in the second quarter was burdened by fewer power plant deliveries, as well as an unfavourable project and equipment mix. “We still need some orders to come through in the energy sector, but the sales pipeline is good and we expect those orders to be signed,” said Wärtsilä CEO Jaakko Eskola.
MAN Energy Solutions and China National Heavy Machinery Corporation (CHMC) have jointly won a contract to build a 200 MW power station in the Cambodian capital Phnom Penh. While CHMC will carry out engineering, procurement and construction, MAN will deliver and commission the plant’s eleven 18V51/60DF engines.
Switching from coal to existing gas-fired plants could help avoid up to 1.2 Gigatonnes (Gt) of carbon emissions, lowering global power sector emissions by 10%, the International Energy Agency finds. Most potential for fuel switching is seen in the United States and in Europe.