Japan's ministry for economy, trade and industry (METI) will host an LNG conference in Tokyo on September 19 to evaluate the increasingly central role of gas supplies for power generation as the country considers a nuclear phase-out by 2030. METI is aiming to overhaul the current strict regionalization of Japan's main electric power utilities, which consume about 5 million tonnes per month of LNG for to fuel gas-fired power plants.
The rapid implementation of India's 'National Gas Grid for LNG', designed to accommodate rising gas supply from LNG import terminals on the western coast, will provide a fillip to gas-fired power generation. "The formation of the gas grid (12,000 km) in India is a great leap which is going to encourage the use of gas-based power generation over a wider geographical area," an analyst at India's Central Power Research Institute told Gas to Power Journal.
While European power prices are will stay flat over the coming days they are likely to increase in by the end of September on colder weather conditions, the Italian bank UniCredit forecast. Gas generation remained on low levels throughout Europe, while higher profit margins and subsequently higher utilisation of power generation have supported carbon prices in recent weeks, bank research shows.
The British government has proposed to set a cap "broadly equivalent to 1 GW" for new biomass-fired power plant capacity. Energy secretary Ed Davey said the cap will "ensure that the Renewables Obligation delivers value-for-money for the bill-payer while enabling shovel-ready projects to come forward."
UK gas exports have dropped this week, after the NBP Zeebrugge spread turned towards the zero or slightly negative level at the start of September. "UK gas flows shift early towards winter flow patterns," Deutsche Bank analysts said today, commenting "last year this shift did not occur until the start of December".