The drop in LNG supply to Japan is negatively impacting on the utilisation of gas-fired power plants. „If we were to measure a 30 mcm/d fall in LNG supply against higher gas-fired generation in Japan, then the drop in LNG supply is equivalent to power generation from 7.3 GW of gas-fired capacity," Deutsche Bank analysts said.
Venezuela has seen a surge in new-built gas turbine and distributed power plants to cover rising demand, a study shows. Increment power generation capacity is mainly supplied by gas turbines and CCGTs (2,057 MW) and distributed generation plants (983 MW), in accordance with the policy of the Venezuelan government to decrease dependency from hydropower.
Alstom has refocused its sales strategy into the German market as the country's energy mix is undergoing a dramatic change to accommodate the nuclear exit. "Chances in renewables and in upgrading Germany's existing fossil power plants are clearly driving our business in Germany, which is a positive outcome of the nuclear phase-out," says Alf-Henryk Wulf, chief executive, Alstom Deutschland.
The German 'Energiewende' concept – a replacement of nuclear capacity mainly with renewables and some fossil power plants – is not technically impossible. Its implementation, however, requires "a great deal of coordination, time, money and public acceptance," Bernhard Fischer, chief executive, E.ON Generation said at PowerGen2012 in Cologne today.
Gas and wind is set to become "the backbone" of Germany's future power generation portfolio, Michael Süß, chief executive, Siemens Energy said today. "It is not about if and when. We have to combine renewable and fossil fuels - with gas as the backbone – to ensure security of energy supply," he said at PowerGen2012 in Cologne.
Gas is the "ideal backup" fuel for renewable energy sources (RES), key note speakers at PowerGen2012 agreed in Cologne today. "This is good news if you are building gas turbines because the capacity is needed. But this is not good news if you are investing in gas-fired plants as your return in investment is extremely unpredictable," said Laszlo Varro, Head of Gas, Coal and Power Market Division (GCP), International Energy Agency (IEA).
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.