Oil and gas giant Royal Dutch Shell has underwhelmed expectations by posting a Q2 net income of $4.69 billion – less than even the lowest analyst forecast. The launch of a $25 billion share buyback, however, is seen as a signal that Shell has recovered from a three-year downturn in the energy sector.
Speedy development of Argentina’s Vaca Muerta shale gas play is hope to accelerated plans to restart exports of pipeline gas to Chile and end imports of LNG cargoes within in a few years’ time. Repsol-YPY, the Spanish Argentine joint venture, just signed a contract to supply gas via the Andes to Chile’s southern province of Biobio.
The Swiss arm of MAN Diesel & Turbo and ABB Switzerland have started to jointly develop, produce and commercialize a three-way Electro-Thermal Energy Storage system (ETES). Based on so-called ‘charging cycle,’ the ETES uses surplus renewable-electricity to generate heat and cold for storage in insulated reservoirs. The stored heat and cold can then be converted back into electrical energy on demand.
Assessing the link between economic growth and energy demand, the U.S. Energy Information Administration (EIA) expects that China, India and Africa – three heavily populated parts of the world – will account for 36% of global energy consumption in 2040. “How these regions develop economically is likely to have important implications for global energy markets because of increased demand from the production and provision of goods and services,” the EIA said in its International Energy Outlook 2018 (IEO2018).
Eager to gain proprietary turbine technology, State Power Investment Corporation (SPIC) of China has signed a Memorandum of Understanding (MoU) with Ansaldo Energia this week to achieve mutually beneficial results in the heavy duty gas turbine area. The accord comes just weeks after Siemens and SPIC struck a technology cooperation in early June to enhance their heavy duty gas turbine programme.
South Korea has called off plans to phase out nuclear power after a summer heatwave exposed security of supply issues. Eager to avert the risk of blackouts, the Administration of President Moon Jae-in mandated five nuclear power plants to restart operations in order to support LNG and coal-fired power generation during the peak demand period of August.
The ‘Egypt Megaproject’ – three power stations at Beni Suef, Burullus and New Capital with a total capacity of 14.4 GW – have been completed and commissioned in record time. With this milestone, Egypt and Siemens and its consortium partners, Orascom Construction and Elsewedy Electric, have set a new world record for execution of modern, fast-track power projects.
Deployment of large-scale battery storage is rapidly increasing across the United States, but capital costs of energy storage systems vary greatly, dependent on the technology uses. Energy-oriented batteries systems, used for peakload shaving, are designed for longer durations and consequently have higher average costs per kilowatt and lower costs per kilowatthour. This type is mostly used in the California Independent System Operator (CAISO) area.
China’s State Power Investment Corp (SPIC) and the Italian turbine manufacturer Ansaldo Energia have signed a Memorandum of Understanding (MoU) to cooperate on developing a new gas turbine. The two partners stated the technical cooperation will focus on heavy-duty gas turbines and is aimed at setting up a “win-win partnership”.
Lacklustre rewards and regulatory risk is weighing down the oil, gas and coal sector, hence the Institute for Energy Economics and Financial Analysis (IEEFA) sees a growing rationale for divesting from the fossil fuel industry. “Future returns from the fossil fuel sector will not replicate past performance,” IEEF analysts warned.
General Electricity Company of Libya (GECOL) is gearing up to adding 500 MW of gas power generation capacity to the national power grid. The additional supply comes from the start-up of unit-1 at the Gulf Power Plant in Sirte and Unit-2 of the Al-Sareer Power Plant.
Fivesgroup, an Italian industrial engineering group, has opened up its European test centre based in the Italy’s northern province of Piacenza. Claimed to be the largest combustion research centre in Europe, the centre will help Fives to reduce time-to-market of new systems through digital design processes.
Reacting to soaring global coal prices, the Malaysian government continues to levy a surcharge on electricity rates for industrial customers for the second half of 2018. With this move, the Energy Commission for Peninsular Malaysia is factoring in the surge in Australian thermal coal prices to nearly US$120 per ton and helps power generators to hand down fuel costs to end-customer.
Energy SRS and partners have secured £727,000 in funding from Innovate UK to develop phase-2 of a gravitational energy storage. Dubbed GENSSIS, this prototype bundles the knowledge of industry and academia to deliver a gravitational storage prototype, ready for testing in 2019.
Major American utilities, representing about 70% of total U.S. electric load, have nearly doubled their capital investment in power distribution systems. Spending on grid expansions and upgrades has risen 54% over the past two decades, rising from $31 billion to reach $51 billion annually.