US oil firm are earning a growing share of their revenues from natural gas. During the first half of 2021, production outages after the February cold freeze in Texas and sharp rises in energy demand after the pandemic made Henry Hub gas prices briefly triple in price, which in turn boosted profits for upstream companies.
US and European markets face a further “bull run” in natural gas prices. According to Energy Aspects, markets have “nearly maximized their gas-to-coal switching potential,” and considering low storage inventories and a shortfall of US LNG deliveries from Freeport terminal, prices at US Henry Hub and the Dutch TTF could surge substantially with the onset of the winter season.
Exelon has presented its new leadership team as the company’s energy business is being carved out from the first quarter of 2022. Christopher Crane, Exelon CEO, will continue to lead the firm’s regulated utility business. Joseph Dominguez, currently CEO of ComEd, was appointed incoming CEO of the competitive energy business that will trade under the new name Constellation.
Austria-based INNIO, the maker of Jenbacher gas engines, and Clarke Energy have agreed to extend the latter’s distribution territory to Indonesia, focusing on Independent Power Producers (IPP) and Merchant Power Producers (MPP). From 2022, Clarke can offer Jenbacher gas engines with a “Ready for H2” option that can be converted to run fully on hydrogen.
New Fortress Energy (NFE) has chartered the floating storage and regasification unit (FRSU) ‘Höegh Gallant’ from New York-listed Höegh LNG Partners for a period of 10 years from the fourth quarter of 2021. The FSRU will be deployed to Jamaica, where NFE owns and operates an LNG regas terminal with adjacent gas-fired power plant.
German state secretary for environment, Jochen Flasbarth, has urged wealthy nations to do more on climate finance and proposed a plan to mobilise $100 billion per year between 2020 and 2025 for “climate action” projects in developing countries. The plan is meant to be finalised prior to the UN climate change conference COP26 in Glasgow in November.
US energy firm New Fortress Energy (NFE) has signed an agreement to invest in Sri Lanka’s first integrated LNG-to-power project. NFE confirmed it will take a stake in West Coast Power (WCP), the owner of a 310 MW Yugadanavi power plant in the Sri Lankan capital Colombo and developer of a nearby LNG regas terminal.
Traded natural gas prices at Europe’s main hubs, the British NBP and the Dutch TTF, have reached record levels. The UK NBP price for the end of the summer season has risen more than four-fold in six months to the equivalent of $25.95 per million British termal units (MMBtu) on September 21, while TTF prices soared to the equivalent of $25.80 per MMBtu the same day.
Quantifying the impact of Hurricane Ida, the US Department of Energy (DoE) said the storm initially left more than 1.2 million in the dark in Louisiana, Mississippi, and Alabama. Entergy still hasn’t restored power to all customers. By its estimates, full electricity supply may not be restored in certain southeastern Louisiana parishes until the end of September.
The German industry federation BDI has issued a stark warning against Government plans to bring forward the phase-out date for all coal power plants in the country from 2038. An early coal exit would undermine the security of electricity supply, BDI head Siegfrid Russwurm said, as gas-fired plants could not be built quick enough to make up for the lost capacity.