Siemens Energy will slash 30% of its management positions and reduce hierarchy layers from eleven to six as the structure will get "broader and flatter,” CEO Christian Bruch announced today. The full takeover of Siemens Gamesa is hoped to close in the second quarter, while the new Gas Services units is meant to achieve an 10-12% EBITA margin.
PTT Exploration & Manufacturing (PTTEP) is struggling to supply enough fuel for Thailand’s power sector, Fitch Options warns. TTTEP took over the Yadana gas field in Myanmar from Total and Chevron in 2021, and analysts reckon the company may not have enough financial resources to upgrade pipelines and ensure steady gas flows from the field to its Thai home market.
The Polish government has adopted a resolution to terminate an agreement with Gazprom to receive Russian gas via the Yamal pipeline. “We prepared ourselves to end the contract with Gazprom at the end of 2022 and buy no more gas from Russia,” Poland’s climate minister Anna Moskwa said, stressing the move would not affect flows to Germany.
Siemens Energy has offered to buy all outstanding shares in Siemens Gamesa Renewable Energy (SGRE) with the intention to delist the loss-making unit. Siemens Gamesa had issued multiple profit warnings as supply chain issues hampered the ramp-up of its 5.X platform. After full integration, the combined group is hoped to achieve cost synergies of up to €300 million within three years.
ACWA Power has posted a 19.5% rise in operating income for the first three month of 2022. The Saudi developer, project sponsor and plant operator brought three water and seven power projects that came into operation between February and December 2021, including the Jazan IGCC with 3,800 MW installed power gen capacity.
Offshore wind, combined with energy storage, will cover a fast-rising share of the world’s energy mix as power generators seek to limit their reliance on fossil fuels. Capex spending on offshore wind could reach $1 trillion worldwide by 2031, Wood Mackenzie finds, calling on investors to look beyond bid prices and lease fees when scaling up projects.
About two dozen European gas importers have opened accounts with Gazprombank, preparing to pay for Russian gas imports in roubles as demanded by President Vladimir Putin. Another 14 clients are understood to be asking the bank for the paperwork to set up such accounts to ensure a new payment scheme is in place prior to a deadline later this month.
Though Europe’s drive to diversify gas sources has spurred a rush of new LNG projects, demand is expected to outstrip supply by year-end, constraining gas-fired power generation. Construction timelines mean material relief is unlikely before 2024, Rystad Energy said, forecasting global LNG demand will hit 436 million tonnes in 2022 while available supply stands at just 410 million tons.
Texas’ electricity grid operator ERCOT has prolonged its supply warning until the end of this week, requesting power plant operators to hold off planned maintenance and keep their generators operational amid blistering temperatures and rising demand. San Antonia’s municipal utility CPS Energy was quick to point out its six plants were running at full capacity.
The International Energy Agency (IEA) anticipates new generating capacity from wind, solar and other renewables to rise to a record 320 GW in 2022, despite higher costs for raw materials and supply-chain constraints. In the EU, annual green energy additions jumped by nearly 30% to 36 GW, lowering the bloc’s dependence on Russian gas in the power sector.
Japan’s largest power producers JERA wants to invest 1.4 trillion yen ($11 billion) to decarbonise fossil power stations at home and to expand its assets overseas in a bid to boost net profits. The announced Capex includes 250 billion yen for upgrading gas power plants to hydrogen co-firing and for sourcing green fuel from abroad.