Demand from Asia is set to power the growth of the global gas industry over the next five years, the International Energy Agency (IEA) says, forecasting annual growth rates of over 4% in Asia and 1.6% worldwide until 2024. China’s policy drive to switch from coal-to-gas in the power sector plays a major role in driving demand in Asia-Pacific.
Eager to reduce fuel costs, Saudi Arabia has reigned it the use of crude oil in the electric power sector to an average 0.4 million barrels per day (b/d), mainly by burning associated gas or fuel oil instead. A steady population growth keeps driving electricity consumption, although the government seeks to dedicate most crude oil production for export and incentivises solar power.
General Electric has vowed to find ways to keep open its Belfort manufacturing site despite plans for downsizing and job cuts. Hugh Bailey, general manager of GE in France said the company is looking for alternatives such as building aeronautical parts at Belfort - instead of large turbines. “I want to be clear, Belfort will not close. It will remain GE Power’s number one industrial site in Europe,” he told French media.
Brazil, second-largest producer of hydropower in the world after China, is implementing policy measures to add more solar PV capacity to the country’s energy mix, backed up by flexible gas gensets and energy storage. As part of the government’s 10-year energy expansion plan, nonhydro renewables is intended to grow 3% per year and reach up to 28% of Brazil’s domestic energy mix by 2027.
Cyprus has been racking up a string of giant gas discoveries, notably ExxonMobil’s Glaucus and Eni’s Calypso find. In total Wood Mackenzie estimates 11 trillion cubic feet (Tcf) of recoverable gas resource was recently discovered in Cypriot waters but analysts question whether all discoveries can be commercialized. Building a pipeline to Egypt, or an FLNG plant off Cyprus, are the most viable options.
BP, one of the world's seven oil and gas supermajors, is understood to have agreed to pay around $10 billion to the private firm of the Romanian businessman Frank Timis after having purchased his stake in a gas field off the coast of Senegal for $250 million in 2017. BBC reporters uncovered this suspicious deal, but both BP and Mr. Timis deny any wrong doing.
Siemens has won a contract from an U.S. shale gas producer to supply three electric-drive centrifugal Dresser-Rand DATUM compression trains for two 250 million standard cubic feet per day (mmscf/d) cryogenic gas plants in the Delaware Basin, part of the greater Permian Basin in West Texas. The equipment will be commissioned in the latter part of 2020.
MAN Energy Solutions has won the "Africa Europe Award 2019" for its efforts in promoting German-African economic relations and establishing a sustainable and efficient local power supply on the continent. By 2050, Africa will be home to 25% of the world's population, hence sustainable power supply is vital to reach global climate goals.
Bruno Le Maire, the French finance minister, has pledged he would fight to save jobs at GE Power sites throughout the country. The minister’s comments come in reaction to GE's announcement it is seeking ways to lay off more than 1,044 employees at its Belfort manufacturing plant in eastern France, near the border with Switzerland.
Blackstone affiliate Zarou Ltd as well as Edra Power Holdings of Malaysia have both expressed interest to purchase three Siemens-build combined-cycle gas power stations in Egypt with a total capacity of 14.4 GW. A sale of the plants would ease the debt burden of state-run Egyptian Electricity Holding Company (EEHC), which owns and operates the three CCGTs.
Despite significant progress in energy access, the world is falling short of meeting the global energy targets set in the United Nations Sustainable Development Goals (SDG) for 2030. The global electrification rate is now just over 89%, but the International Energy Agency (IEA) warns there is still a “dramatic lack of access to reliable, modern and sustainable energy in certain parts of the world, especially in sub-Saharan Africa.”
Spreads for arbitrage trading are narrowing between the Dutch TTF and the US Henry Hub as well as the TTF and the Japan Korea Marker (JKM), so Energy Aspects warns "any further tightening could close the arb windows and lock-in US supply.” The coal-to-gas switching level is seen at $3.70/mmbtu, or €11.1/MWh – below the breakeven to ship cargoes from the US to Europe at current freight rates.
Con Edison, the largest utility in the New York City area, has imposed a moratorium on new natural gas connections in most of Westchester County, claiming it it cannot guarantee uninterrupted service to new connections. Despite rising shale gas production in the Northeast, the rise in demand and infrastructure bottlenecks in the NYC area is now jeopardizing supply security.