U.S. major ExxonMobil, together with Qatar Petroleum, has made a gas discovery of 5-8 trillion cubic feet (Tcf) its Glaucus-1 well off Cyprus. The find adds another giant discovery to the East Mediterranean but a lack of subsea pipelines hamper the use of this gas in the local power sector, so Exxon considers teaming up with other majors to monetize the find through a new LNG venture.
Electric load at the MISO grid in the Midwest of the United States was pushed to its limits during the recent period of extreme cold weather in late January. According to EIA figure, day-ahead gas spot prices reached $7.42/MMBtu) at Chicago, the main hub in the region, while MISO day-ahead electricity prices surged to $120/MWh.
Enagas, the Spanish gas network and LNG terminal operator, has announced construction of the Trans Adriatic Pipeline (TAP) - part of Europe’s Southern Gas Corridor - is 85% complete. Enagas saw a 1% rise in its 2018 annual profit to 442.6 million Euros amid a 4.5% increase in conventional gas demand.
Spanish-owned Scottish Power has unveiled its “biggest ever investment in the UK in a single year," announcing to splash out £2 billion on green energy in 2019. Programmes include building giant batteries to store excess energy at wind farms, investing in smart grids for customers to buy and sell electricity, and charging points for electric cars.
U.S. engineering company McDermott International has posted a fourth-quarter loss, largely due to $2.2 billion in charges related to works on Cameron LNG and Freeport LNG and higher construction costs for Calpine’s York 2 Energy Center. The Houston-based McDermott today reported a net fourth quarter loss of $2.8 billion – a stark contrast to its $26 million profit in Q4-2017.
Natural gas will become the fastest-growing energy source in the coming decade, displacing coal as a fuel for power plants and heavy industries, Royal Dutch Shell said in its 2019 LNG Outlook 2019. Global energy demand is seen grow 18% by 2035, spurred by clean-air policies in China and India, with gas set to meet 40% of that largely through expanding LNG trade.
Economic growth, combined with a rapidly expanding population, has led to an investment boost in the Indonesian power sector which is forecast to quadruple in size over the coming decade, growing at a 18.7% rate to reach $63.6 billion in market value by 2022. Coal-fired power will retain its leading position while decentralized LNG-fuelled projects also gain attractiveness.
Reciprocating internal combustion engines – typically used for backup, standby, or emergency power – are playing a fast advancing role in utility-scale power generation applications, according to EIA findings. In Texas alone, the share of gas-fired recip engines surged 20% to over 4,600 MW largely as a reaction to the state’s rapid growth in installed wind power capacity.
The Japanese energy majors JERA and Tepco Power Grid have agreed to jointly invest up to $32.68 billion (£25 million) in Zenobe Energy, a UK-based battery storage company. Zenobe owns and operates some 73 MW of batteries and is currently looking to use its technology in related business areas, notably the charging of electric vehicles.
The Japanese trading house Itochu has pulled the plug on investments in thermal coal mines and coal-fired power projects. Having just sold its stake in the Rollestone mine in Queensland, the Japanese firm said it seeks to increase the renewables ratio in its power plant portfolio to over 20% by the end of fiscal 2031.
Abundant supply of cost-competitive shale gas, combined with technological advances, has led to an ever-increasing average size of a combined-cycle gas power block in the United States. While the average CCGT had about 500 MW installed capacity before 2014, the power block capacity has since then increased to an average 820 MW, according to the EIA’s electric generator report.
Indonesia's upstream regulator SKK Migas has announced a significant gas discovery at the Repsol-operated Sakakemang PSC onshore Central Sumatra, Indonesia. If pre-drill estimates are realised, it would be the largest discovery in the country since ExxonMobil's Cepu find in 2001. The latest discovery has the potential to alter Indonesia’s gas supply balance and power generation mix.
New hybrid energy sources, consisting of a combination of renewabes and flexible gas generators, will cover up to 85% of the world’s energy demand growth through 2040, according to BP’s latest Energy Outlook. Fast-developing countries in Asia are expected to push up global energy demand by a third from today’s levels.
Production and use of refined coal – processed to reduce emission when burned – has reached record highs the United States, particularly in the power sector. According to EIA estimates, refined coal’s share of total coal tonnage consumed for U.S. electricity generation will have increased from 15% in 2016 to more than 18% through October 2018.