U.S. Energy Information Administration (EIA) expects a rebound in Henry Hub spot gas prices due to falling production in the Appalachian and Permian Shale, where low oil prices led to shut-ins of wells. Dry gas production is seen average 84.9 Bcf/d in 2021, pushing up Henry Hub prices to $2.89/MMbtu.
Electricity demand across major European markets will fall nearly 8.1% this year as lockdown easing have no great impact yet, so Wood Mackenzie sees full recovery taking several years. Growth in renewables and a bearish outlook for fuel prices will keep a power prices low well beyond 2020.
Zhonghua Gas’ first quarter results have been “seriously impacted” by the Covid-19 outbreak. Total revenue for the three month ending March plunged 29.5% to HK$75.10 million, while net profit after tax fell 72.5%. Going forward, the Hong Kong-listed group strives to expand LNG sales in greater Shanghai.
Russia’s state gas company Gazprom seeks to boost gas production in Yakutia and enhance pressure as well as throughput at the ‘Power of Siberia’ pipeline. There is “plenty of supply,” Gazprom noted, to ramp up exports to China gradually to 38 Bcm/y, as planned, by 2025.
Stadtwerke Leipzig has contracted MAN Energy Solutions to deliver and install two steam turbines and a generator at the local combined heat and power plant (CHP) in the first quarter of 2021. The upgraded CHP will partially replace the supply of district heating from an ageing coal-fired plant by the end of 2022.
Construction companies in the Middle East are withstanding the negative economic impact of the coronavirus pandemic, with ACWA Power as well as Saudi’s Advanced Petrochemical and SK Gas winning multi-billion EPC contracts. Oman National Engineering and Investment Company (ONEIC), meanwhile, was contracted to build substations.
Low U.S. gas demand due to the pandemic and unseasonably mild weather has prompted a sharp rise in storage injection, in particular in the South Central region. EIA figures show net injection into storage increased 109 Bcf last week, some 35 Bcm more than typical levels.
Lower first quarter revenues have not hindered Entergy Corp. to issue a Request for Proposals (RFP) to build a 1,200 MW combined-cycle gas power plant in Texas, with proposals due in early August. The New Orleans-based utility posted earnings of $119 million in Q1-2020, down from $255m.
Energy demand patterns and grid dynamics have shifted dramatically since mid-March. In the absence of sufficient energy storage, Germany at times had to export 14 MW of excess renewable power at a loss of €80 MWh to countries like Norway and Austria, Wärtsilä’s energy tracking shows.
Business shutdowns in New York State to contain the coronavirus have slashed daily electricity demand on weekdays between 11% and 14% in March and April, according to government figures. Downtown New York, the NYISO Zone J, was hardest hit with demand up to 16% lower than temperature-comparable historical demand.
GE’s Grid Solution business has energized a dynamic reactive compensator, installed for UK’s National. The static synchronous compensator (STATCOM) delivers up to 975 Mvar, adding inertia to stabilize the grid to support operations of the 1 GW Nemo Link interconnector to Belgium.
Siemens expects “even stronger impacts” from the coronavirus pandemic in the coming weeks as it posted an 18% drop in profits during the second quarter. The German technology conglomerate withdrew its guidance for fiscal-2020 but confirmed the timeline for the spin-off of its energy business.