Baltic Pipe, connecting the Polish gas grid with Norway, has secured construction permits through Sweden’s territorial waters - the final permits required before works can begin. The pipeline will have nearly 1 billion cubic feet per day (Bcf/d) of capacity and is due on stream by October 2022.
Investment in energy infrastructure is being slashed by one-fifth, or almost $400 billion, in 2020 due to lower energy demand and prices caused by the Covid-19 pandemic, the International Energy Agency (IEA) finds. Tracking of company announcements and investment-related policies before the crisis had suggested energy spent could grow by 2% worldwide.
The spin-off of Siemens Energy will go ahead in September, whereby shareholders will automatically receive one share of Siemens Energy for every two shares of Siemens AG. In the following 12 to 18 months, Siemens AG intends to further reduce its stake in Siemens Energy by a “significant” amount.
Rolls-Royce and Daimler Truck plan to cooperate on stationary fuel-cell generators for data centers, hospitals and other safety-critical infrastructure. These fuel-cell gensets will offer emission-free alternatives to diesel generators, currently used as emergency units to cover peak loads.
Uniper’s new Datteln 4 coal plant is running in test operation in North Rhine-Westphalia (NRW) despite the low demand for electricity on the market. Scheduled to go online this summer, Datteln 4 was repeatedly tested at full capacity which on some days pushed down prices to minus €80/MWh.
SSE chief executive Phillips-Davies has said it may take two to three years for UK power demand to recover from the pandemic. He expects a “slight recovery in prices” once industry and business resume operations, though demand will likely be around 10% less than normal throughout the summer.
U.S. oil and gas producers have sharply reduced output since mid-March, reacting to a plunge in energy demand due to lockdowns. Rigs fell by 433, or 56% since March 17, with most wells shut-in occurring in oil-focused shale plays like the Permian, Eagle Ford and the Bakken region.
EthosEnergy has been awarded a five-year, multi-million pound turbine maintenance contract by a major UK North Sea operator for its full fleet of gas turbines. The contract includes the support 37 units across 10 offshore production platforms covering a range of OEM equipment such as Siemens small-scale gas turbines, GE Frame and LM units and Solar gas turbines.
Thailand’s energy regulator has approved Gulf Energy’s application to import 0.3 million tons of LNG for use in 19 small-scale power plants, operated by the state-owned utility EGAT. Hin Kong Power Holding, 49% owned by Gulf Energy, also won a license to import 1.4 mtpa of LNG, bringing the total to 1.7 mtpa.
Atlantic, Gulf & Pacific Co. (AG&P) has advanced its technology for LNG carriers to help fuel decentralized power generators. The Philippines-based company designed a small-scale LNG carrier (LNGC) – a workhorse to meet delivery challenges posed by shallow rivers and restricted harbours.
Terms of natural gas sales are changing. In the power sector gas no longer competes with oil, but coal and renewables – making hub-indexation traders' preferential choice. In Asia, the Platts Japan Korea Marker (JKM) grows in popularity and several long-term gas supply contracts have come under review following the recent plunge in oil prices.
Fast adoption of floating LNG technology across Asia is opening up new gas markets in Indonesia, Malaysia, Singapore and the Philippines. According to Black & Veatch, gas-fired power projects are “attractive for emerging markets” due to advantages in price, reliability and fuel access over developing technologies such as battery storage.