Russia’s ability to meet Europe’s growing gas demand seems hampered by infrastructure bottlenecks across the continent, creating room for LNG exporters to grab market share. Gazprom targets to deliver 200 Bcm of piped gas to Europe this year but Wood Mackenzie forecasts the continent will need a further 77 Bcm/y by 2025.
Steep decline in coal use in the American power sector has drastically reduced emissions. Coal-fired generation peaked at 2,026 million MWh in 2007 and dropped to less than 1,200 million MWh today, according to the U.S. Energy Information Administration (EIA). As a consequence, energy-related emissions of sulfur dioxide (SO2) and nitrogen oxides (NOx) fell by 88% and 76%, respectively.
Strong, sustained growth in U.S. gas production is putting downward pressure on Henry Hub spot and futures prices. Dry gas production increased to 83.3 Bcf/d in 2018, according to figures by the U.S. Energy Information Administration (EIA), which forecasts a subsequent fall in Henry Hub spot gas prices to $3.11 per MMBtu on average in 2019.
Japan’s largest LNG importer JERA will also become the nation’s biggest power producer as of April 2019 when it will take control of TECPO and Chubu Electric’s domestic power business. Rated ‘A-minus by Standard & Poor’s, analysts caution that over the next three years JERA plans to invest in high-risk upstream LNG concessions and unregulated power projects overseas.
The world’s advanced economies will see an uptick in their emissions, bucking a five-year long decline. Energy-related CO2 emissions in North America, the EU and industrialized countries in Asia Pacific grew by around 0.5% in 2018, as higher oil and gas use more than offset declining coal consumption, according to the International Energy Agency (IEA).
Princeton University researchers have proposed a U.S. pipeline network that would capture, transport and store underground up to 30 million metric tons of emissions each year – an amount equal to removing 6.5 million cars from the road. The pipeline would transfer CO2 waste from ethanol refineries in the American Midwest to oilfields in West Texas for use in enhanced oil recovery (EOR).
A bitter early cold in the U.S. has propelled up the Henry Hub Dec-18 contract prior to its expiry, raising questions about how much higher the Jan-19 contract can go. “The market is searching for a sweet spot in pricing,” according to Energy Aspects, “[whereby] enough power demand is being redirected away from gas and that deliverability concerns do not arise in the first half of Q1-2019.”
UK-based Turbine Efficiency Group (TEG) has agreed to pay almost $3 million for the acquisition of Gas Turbine Applications (GTA), an after-market service provider in Oklahoma. The takeover broadens TEG’s service offering for include industrial gas turbines, notably for SGT-100, SGT-200, SGT-300, TA, TB, Saturn and Centaur.
Qatar has announced to withdraw from the Organization of the Petroleum Exporting Countries (OPEC) effective January 1, 2019. Following a long feud with Saudi Arabia – the de facto leader of the oil cartel – Qatar now wants to focus efforts on increasing its gas production by over a third to nearly 110 million tons in a bid to boost LNG exports.