Investment in wind power is largely driven by China, where removal of regulatory restrictions in the country's northern provinces sparked a 2 GW, or 37%, rise in 2018 to a total installed capacity of 5.6 GW. Worldwide, nearly 52.2 GW of net wind power capacity was added last year – a 4% annual rise, according to Wood Mackenzie’s Global Wind Power Market Outlook Update: Q1-2019.
Fitch Group affiliate BMI Research expects natural gas will contribute more than half of the UK’s electricity needs in less than 10 years, up from currently about 45%. Gas gains importance in the UK power sector amid Government policies to exit coal power by 2025, and as private investors cancelled some new nuclear power projects.
Aspiring full electrification by 2030, the Government of Myanmar has vowed to fast-track several gas-fired power projects as it aims to add some 3,000 MW to effectively double the country’s installed capacity over the next two to three years. Realizing this plan comes with a price tag of $5.16 billion, according to estimates by Myanmar’s Ministry of Electricity and Energy (MOEE).
The South African arm of AEP Energy is about to purchase two power plants in Nairobi from Iberafrica and considers converting these units from diesel to natural gas. In Kenya, diesel-generated electricity is about 3 times costlier than geothermal, wind and hydropower and about 2.5 times more expensive than gas power.
Length in natural gas supply the U.S. Mid-Atlantic and Ohio region is building up amid rising production from the Marcellus and Utica Shale. Simultaneously, growing demand in the South Central region for feed-gas for LNG export facilities on the Gulf Coast has caused a reversal in gas flows on key interstate pipelines.
Latest earnings calls from publicly-traded U.S. gas producers show a slowdown in 2019 gas production as the role of private producers increase. The 25 firms sampled by Energy Aspects have a combined base output of 23.1 billion cubic feet per day (bcf/d), and said they expect 1.3 bcf/d annual production gains in 2019. This projected 6% uplift is less than their earlier growth 9% forecast.
As the second wave of the US shale revolution unfolds, the United States is forecast to account for 70% of the rise in global oil production and some 75% of the expansion in LNG trade over the next five years. On global oil markets, the U.S. has “essentially compensated for recent production shortfalls in Venezuela and Iran,“ commented Dr Fatih Birol, Executive Director of the International Energy Agency (IEA).
Electricity consumption in the United States will continue to grow but at a slower pace than in recent years, the EIA forecasts, as global trade tension have an adverse effect on economic growth and reduce electricity demand from the manufacturing sector. Though net U.S. electricity output rose 4% last year to a record high of 4,178 million MWh, the EIA attributes this to a one-off weather related effect.
Puerto Rico Electric Power Authority (PREPA) has agreed with NFEnergía, the local New Fortress Energy affiliate, to supply LNG and convert Units 5&6 of the San Juan power plant. The diesel-to-gas conversion of these two combined-cycle power units is expected to generate about $750 million in fuel cost savings.
Striving to achieve universal electricity access, utilities invested $500 million globally in off-grid energy access last year. Though investments in energy access grew another 22% in 2018, after surging 37% the year before, Wood Mackenzie says “total volumes still fall well short of the estimated financing needed to reach universal electricity access globally by 2030.”
Manila Electric Co. (Meralco) has filed to Energy Regulatory Commission (ERC) of the Philippines, requesting to end interim power supply agreements prior to the next Malampaya gas field maintenance – but the regulator wants utilities to keep producing electricity from condensate. The upcoming October shutdown will affect gas supply to three of Luzon’s major power plants: Santa Rita (1,000 MW), San Lorenzo (500 MW) and Ilijan (1,200 MW).
As Japanese utilities keep restarting shuttered nuclear power units, analysts say the return of cheap nuclear power will displace baseload generation from fossil sources, in particular natural gas. Japan has to import its entire gas demand as LNG, which is more costly than thermal coal, so a rise in nuclear power output is forecast to reduce LNG shipments by up to 10% this year.