For new gas pipelines, timing is everything. This especially applies to the new 38 Bcm/y ‘Power of Siberia (PoS)’ link that will elevate China to become Gazprom’s second largest export market. However, analysts say considering the cost of transporting Russian pipeline gas over thousands of miles towards Beijing and Shanghai, it is unlikely that CNPC will want to quickly ramp up PoS gas supply at the expense of imported LNG.
Sales of electric vehicles in Germany have jumped 49 percent, with over 97,000 electric cars sold in the months up to December. Consumers increasingly embrace e-cars – not least as a means to shield against Berlin’s latest hike of the entry-level price for CO2 emissions in the transport sector, which has just been raised to 25 Euros per tonne from 2021.
Southern California Gas Company’s (SoCalGas) has managed to improve its gas supply flexibility going into December, just before demand will peak in the latter half of the month. Working gas inventory currently stands at 74.4 billion cubic feet (Bcf), and though that’s similar to last winter SoCalGas stressed it enhanced withdrawal volumes and speed from its large Aliso Canyon storage.
With the opening of the ‘Power of Siberia’ interconnector, Russia’s Gazprom has shifted its focus on its new Chinese offtaker CNPC who agreed to import 38 Bcm annually over the next 30 years under a deal worth some $400 billion. As for 2019, Gazprom says Chinese gas demand will rise 10 percent and “considerably exceed 300 billion cubic meters (Bcm).”
The December clearing price for carbon emissions under the Regional Greenhouse Gas Initiative (RGGI) scheme has reached a fresh record due to a tighter emission cap. RGGI, the first mandatory emission trading scheme in 10 U.S. northeastern states, has cleared its latest auction at $5.61 per short ton for the 13.1 million tons of CO2 allowances sold.
Shares of Saudi Aramco have spiked after a historic market debut, rising 10% above the initial public offer price. The Saudi government listed a 1.5% stake in Aramco at Riyadh’s Tadawul stock exchange – raising $25.6 billion which gives the oil giant a market valuation of around $1.88 trillion, and liquidity to invest in LNG trading and power gen projects.
The latest U.S. Government Short-Term Energy Outlook (STEO) anticipates natural gas production will grow much less in 2020 because of the lag between changes in price and changes in future drilling activity. Low prices in Q3-2019 is likely to reduce gas-directed drilling in the first half of next year, with 2020 output seen average 95.1 billion cubic feet per day (Bcf/d).
Prices for Australian thermal coal remain on a downward trajectory amid oversupplied global markets and tepid demand – not least due to Europe’s rapidly falling coal-fired power production. In Asian markets, lower coal imports from South Korea and Taiwan adds further to the supply overhang, Morgan Stanley Research finds.
Three days ahead of the UK General Election on December 12, the Shadow Chancellor John McDonnell has pledged the Labour Party would kick-start the process of re-nationalizing Britain’s power and water companies within the first 100 days upon assuming office. Several UK utilities have already moved part of their ownership offshore to protect their assets.
Temperatures fell below freezing in 75 percent of the United States during a record cold-snap in early November, propelling up prices for both natural gas and electricity. In northeast Pennsylvania, gas prices at the Tetco M3 hub in surged from less than $2.00/MMBtu to $5.11/MMBtu while prices at Chicago Citygate hub in the MISO market zone reached $3.00/MMBtu.