Markets

Forward prices at the Dutch TTF gas trading hub could fall further over the summer as Europe runs out of storage capacity. Through most EU countries lifted coronavirus lockdowns, demand stays weak and Energy Aspects sees TTF prices remain too low to attract US LNG cargoes until April 2021.

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.

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.

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.

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.

April 2020 was the first month ever that renewables generated more electricity than thermal coal in the United States every single day. According to government data, coal’s market share in April declined to 15.3% amid a steep drop in power demand due to the pandemic.

Nationwide lockdowns in India have highlighted the financial risk of coal power plants – a technology increasingly uncompetitive compared with gas or renewables. In the first 33 days of the 2020/21 fiscal year, coal-fired generation was down just shy of 30 Terawatt-hours (TWh).

Asia’s Japan/Korea LNG (JKM) price marker is “potentially undervalued”, Energy Aspects says, pointing at a strong demand upswing in South Korea. Should KOGAS switch decisively from coal to gas generation, this would pull JKM prices above levels at the Dutch TTF starting from the fourth quarter.

Rising volumes of US LNG exports have boosted liquidity at traded gas markets, leading to greater price correlation of regional hubs and more integrated markets. Still, prices at the U.S. Henry Hub, Asia’s Japan/Korea LNG (JKM), and the UK National Balancing Point (NBP) show much less correlation than crude oil benchmarks.

U.S. electric carmaker Tesla has applied to the British energy regulator Ofgem to sell electricity in the UK. The purpose of the licence may be to introduce Tesla’s Autobidder energy trading platform in the UK, which is already running at Tesla’s Hornsdale Power Reserve in South Australia.

The rental market for mobile power gen equipment is seen grow at a 6% annual rate, expanding by $1.5 billion in the years through 2024. Growth is largely driven by infrastructure programs, as well as rising demand from mining and the oil and gas industry.

Page 10 of 224

News in Brief

Energy storage for LNG-powered vessels

Oct 21 – Louisiana-based Harvey Gulf has asked Wärtsilä to retrofit its energy storage system (ESS) on four LNG-fuelled platform support vessels. Once upgraded in early 2022, all vessels will be of full tri-fuel operation.

Mott McDonald starts construction on ALCP6

Oct 20 – US construction firm Mott McDonald has started building the ALCP6 waste to energy project in Krabi province, southern Thailand. The plant will incinerate 144,000 tonnes per year of municipal solid waste, and the heat obtained will be converted into 6 MW of electricity to be exported to the Thai national grid.

Brace for EU sustainable finance rules

Oct 19 – Sustainable finance practices, drawn up by the European Commission, could create a "bureaucratic monster" that smaller companies and energy investors would find overbearing, the Munich-based Institute for Economic Research (ifo) warned. The regulation should hence prioritise closer scrutiny of large and listed companies.

UK could become net power exporter

Oct 16 – Increased interconnection could provide a route for excess offshore wind power in Britain to be consumed elsewhere in Europe. National Grid Interconnector Register shows up to 16 GW of interconnection could be operational by 2025 and up to 25.4 GW by 2030.

Wärtsilä to deploy GridSolv in US city

Oct 15 – AEP OnSite Partners has contracted Wärtsilä to deploy its GridSolv Quantum energy storage in the city of Martinsville, Virginia. The system includes an UL9540A limiting 2-hour battery firewall and will help lower the city’s energy costs.

Rolls-Royce spends $13.9m in Mankato

Oct 14 – Britain’s engine maker Rolls-Royce has decided to invest nearly $14 million in its Power System business to build a new R&D centre at its MTU manufacturing plant in Mankato, Minnesota, US. The expansion will see 28,000 square foot added to the facility’s existing hall, making room for the production of high-power MTU gas gensets, enhanced product testing and the creation of 20 new manufacturing positions.

Clarke commissions Vitalait power unit in Tunisia

Oct 13 – Clarke Energy and INNIO Jenbacher have completed the commissioning of an onsite power plant of a milk producer in Tunisia. The installation of another Jenbacher gas engine has increased the plant’s output to 4 MW of electricity as well as 1,100 kW of hot water and 800 kW of steam.

Secondary battery market to top $55bn

Oct 12 – Technavio expects the secondary battery market to grow by $55.62 billion through 2024, rising at an 11% rate over the forecast period. Falling costs for lithium-ion batteries as well as growing demand in Asia Pacific allowed the market to grow 2.01% this year, despite adverse effects of the pandemic. Top battery suppliers are Tesla, Clarious, Exide, LG Chem, GS Yuasa and Samsung.

Shift to sustainable tech

Oct 9 – Three quarters of utilities, surveyed by EIT InnoEnergy, are considering adopting sustainable technology over the next 12-18 months. However, over one third of the respondents found it hard to recruit the skills they need.

Generator rentals slow

Oct 8 – The rental market for power generators has slowed down due to the pandemic, with genset rentals from the oil and gas industry forecast to grow by just $153.87 million this year. However, Technavio expects the market will return to a 3% annual growth rate by 2024.

GE upgrades Italian CHP

Oct 7 – GE has completed an axial fuel staging upgrade on its 9E gas turbine at an onsite combined heat and power (CHP) plant at the Milazzo refinery in Sicily. The entire electricity needs of the refinery, over 780 GWh in 2019, will soon be supplied by the upgraded and more flexible gas turbine.

Operating assets ‘from anywhere’

Oct 6 – GE Digital’s latest software gives electric utilities remote and mobile control over their power stations for remote start-up, external monitoring and operational fine-tuning. The goal is to safe cost through autonomous operation from any location.

Chart wins order from New Fortress Energy

Oct 5 – Chart Industries has secured a second leasing order, worth $7.7 million, for ISO containers for LNG applications from New Fortress Energy for a project in the Caribbean. The US equipment maker sees double digit near-term growth in its repair, service and leasing business, notably from growing demand for LNG equipment for infrastructure.

Siemens energises Togo

Oct 2 – Siemens Energy has delivered a SGT-800 gas turbine and other components for the Kékéli Efficient Power plant project. Located in the Togolese capital Lomé, the 65 MW plant will cover almost 40% of country’s expected electricity demand.

Batteries get cheaper

Oct 1 – Cost for battery production is falling rapidly as manufacturers bring large Gigafactories on-line. By 2030, Bloomberg New Energy Finance anticipates battery pack prices to drop to $73 per kilowatt-hour, down from a current volume-weighted average of below $270/kWh.

Barclays may help fund Rolls-Royce

Sept 30 – UK’s prime engine maker Rolls-Royce is understood to be close to getting fresh financing from Barclays Bank. The Derby-based company, however, insists no final decision has been taken on the precise amount that may be raised or any allotment of shares to any investor.

Petronas to truck LNG to off-grid users

Sept 29 – Petronas Dagangan Group is gearing up to build a LNG truck delivery service for off-grid customers in Peninsular Malaysia. Trucks fitted with cryogenic tanks will bring the super-chilled fuel to remote industries and small-scale power generators with no access to the natural gas grid. Malaysia’s Peninsular Gas Utilisation (PGU) pipeline is only 2,500 kilometers in length and was initially built to export gas to Singapore.

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