China will more than double its natural gas consumption over the next five years, the International Energy Agency (IEA) forecasts in its Medium-Term Gas Market Report 2012, released at the World Gas Conference 2012.
"As gas competes against other energy sources in all market segments, notably in the power sector, pricing conditions are a key element to keep it competitive everywhere," IEA Executive Director, Maria van der Hoeven, said at the official presentation of the report on Thursday.
Uncertainty surrounding China's future energy mix is alerting key global gas suppliers such as Qatar's Rasgas. "The Chinese power market is perhaps the biggest demand uncertainty in Asia. Coal has been the fuel of choice so far, but as environmental concerns increase, gas has a vast opportunity to have an increased role in the market," Al Mohannadi, general manager of the Qatari LNG producer Rasgas he told delegates at the World Gas Conference (WGC2012) in Kuala Lumpur on Wednesday.
To launch capacity payment schemes at a national level in EU countries makes "no sense", said Philip Lowe, Director General for DG Energy in the European Commission. Only pan-European mechanisms could make sense and would support investment in new gas-fired plants, he said at Eurelectric's annual conference in Malta on Tuesday.
Investments in carbon capture storage (CCS) for new-built and operational power plants has a softening effect the carbon price - albeit not a big one, Energy Brainpool's chief analyst Tobias Federico said. Gas-fired power plants are allowed to operate without CCS until 2045 in the U.K., the Department of Energy and Climate Change (DECC) confirmed.
Demand for natural gas is estimated to surge by more than 50% by 2035, provided that vast global resources of unconventional gas can be tapped in a profitable and environmentally friendly manner, the International Energy Agency (IEA) said in a special report.
The U.S. is experiencing a boom in shale gas production, with gas prices on record lows and power producers switching from coal to comparatively cheap and less carbon-intensive gas.
Hong Kong is running out of natural gas and is looking to augment its supply sources, Maggie Go, Business Engineer at Hong Kong power utility CLP said in Singapore today. "Demand for natural gas in power generation - a cleaner and more environmentally friendly alternative to coal - is burgeoning," Go told delegates at IBC Asia's 6th annual Gas Turbines Conference.
The dynamics of European energy prices are intertwined with those relative to the Euro area debt crisis. "As long as markets do not perceive a real turning point, there will continue to be a lot of volatility and – at times – some lack of strong direction coming from the fundamentals," the French investment bank Société Générale forecasts.
Turkey is close to importing natural gas from Iraq's autonomous Kurdish region with the buyer understood to have earmarked some of the volumes for gas-to-power generation. A deal could be struck soon: "A buyer is out there, right next door to Iraq," said Ibrahim Palaz, general manager of Botas International.
EU power demand is holding up better than anticipated despite declining gas consumption, Société Générale said today. Between January and April, EU gas consumption declined by 1.8% year-on-year (yoy) while electricity demand increased by 0.7%, respectively, figures in the bank's monthly demand report 'SG Energy Pulse' show.
Profitability of combined cycle power plants (CCGTs) in Spain is likely to deteriorate further on rising electricity supply from solar PV and wind power generation. “We may not have reached the bottom yet. No investment in new CCGTs is likely in the next 10 to 15 years,” James Cox, Principal Consultant, Poery Energy Consulting, said at the ‘Gas to Power conference’ in Valencia today.
The share of LNG re-exports from Spain has risen to a record 30% of import volumes in 2012 as shippers divert cargoes contracted on flexible terms to profit from high gas prices in Asia, lga Vedernikova, LNG Divisions Director at Clarksons said today. Spain gas demand is forecast to remain on low levels, leaving regas capacity underutilized.