Indonesia’s national oil company Pertamina plans to build an onshore regas terminal to power the country’s largest oil refinery on Java. As an island nation, Indonesia uses floating LNG terminals to distribute domestic gas supplies to where long-range pipelines are lacking.
German TSOs TenneT and 50Herz are building an electricity highway to transport over 2 Gigawatt of wind energy from the North Sea over 500 kilometres to southern Germany. Siemens Energy will deliver the HVDC converters to minimise electricity loss during transmission.
Russia’s gas giant Gazprom has built 260 km of a feeder pipeline between the huge Chayandinskoye field in Yakutia and the ‘Power of Siberia’ interconnector to China. Eager to boost exports, Gazprom is also building a link to connect the Kovyktinskoye field to the Power of Siberia pipeline in late 2022.
The German energy and transport ministries have chosen 62 large hydrogen projects that will be funded under a joint European investment scheme. To reach its 2045 climate target, Germany needs some 60 TWh of hydrogen by 2030 but domestic production can cover just a third of that demand.
Developers of LNG-to-Power projects are advised to secure flexible gas delivery terms through an aggregator before the market flips again and demand outstrips supply. According to Watson Farley & Williams, this is likely to happen by 2022 or 2023 as current Capex cuts delay new liquefaction projects.
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.
Two power projects in West Africa have received MAN engines, and the German manufacturer handed over two further plants in Gambia and Guinea. Eight MAN 14V51/60 engines drive a 110 MW plant in Mali, while six 9L51/60 engines supply a cement factory with 54 MW electricity in Senegal.
California-based Bloom Energy has agreed with Idaho National Laboratory to independently test the use of nuclear energy for electrolysis. Rather than ramping down baseload nuclear power plants, the surplus energy can be used cost-effectively to produce green hydrogen.
Falling costs for lithium-ion batteries and hydrogen electrolysers have rendered both technologies ready for mass commercialization. The International Energy Agency (IEA) projects the cost of 4-hour battery systems to fall to $220/kWh by 2040, so utility-scale battery deployment could reach nearly 220 GW by 2040.
Though green hydrogen, produced from variable wind and solar generation, can act as long-term energy storage – it is not economically viable yet. To get from 80,000 tonnes produced today to a required 35 million by 2035, governments will need to "heavily incentivise green hydrogen – and soon," analysts say, similar to past subsidies for renewables.
Reaching Net Zero emission means reducing fossil fuel use, but gas-burn is still forecast rise through 2040 – amid a lack of alternatives. The phase-out of coal and nuclear power in Germany requires gas generation to change from providing baseload to backup power and meeting residual loads.
India’s spike in Covid19 cases has made utility buyers sell LNG cargoes heading to the country as energy demand dropped amid calls for another nationwide lockdown. Six to seven LNG cargoes are already diverted, Kpler ship tracking data shows, and four tankers switched to floating storage.