As Russia shifts its outlook east and engages with China on a range of deals for oil, coal and power supply China, energy trade between the two neighbouring countries is likely to quadruple by 2025, according to Wood Mackenzie analysts. "If large projects are to be realised, Russia may have to allow deeper Chinese involvement," said Ian Thom, head of Russia upstream research, suggesting an gas supply deal will be reached in the next two years.
Gas-fired power will increase to account for 40 percent of the energy mix in the US market by 2035, spurring a growth in natural gas demand by one third, analysts with the consultancy ICF International forecast. Gas-fired power currently generates 1,000 Terawatt-hours per year (TWh/y) but new ICF figures expect this to double to 2,000 TWh/y.
The UK carbon floor price is not sufficient to encourage CCS-retrofitting in fossil plants in the short-term, says Heather Haydock, Practice Director, Energy & Climate Change at Ricardo-AEA. Neither has backloading of carbon permits in EU-ETS has helped to prop up carbon prices beyond €6/ton – too low to incentivise CCS or a switch from coal to gas generation in much of continental Europe.
Shale gas will bolster security of supply in the UK, displace a proportion of LNG imports and underpin new gas power generation projects. Substantial volumes of shale gas production, however, are not expected to be forthcoming until the mid-2020ies, delegates at the Gas to Power Britain conference learnt.
Chinese involvement in Brazil gas sector is set to grow, spurred by opportunities in upstream, power generation and transmission as well as knowledge transfer. Over 70% of China's direct investment in Brazil, or $18.2 billion from 2005 to 2012, was spent in the energy sector, and IEA analysts expect this share to grow despite current legal obstacles.
Japanese firms will help Turkmenistan convert parts of its abundant natural gas reserves into liquid form and export it to Japan as a fuel for power generation. Works are based on an energy development accord sealed by the two heads of state, Shinzo Abe and Gurbanguly Berdimuhamedov, in Tokyo late Wednesday.