Spot price differentials between regional U.S. gas trading hub and the benchmark Henry Hub have narrowed in the first half of 2020 amid lower production and a Covid-19-related plunge in demand. Basis prices are set to stay narrow at most hubs, with Winter 2020/21 forward basis swaps for SoCal Citygate and Waha Hub averaging $1.11/MMBtu and -$0.47/MMBtu.
Pacific Gas & Electric (PG&E), California’s largest utility, has been cutting power starting from Tuesday due to high winds and heat that could exacerbate the spread of wildfires. An all-time record heat across Southern California keeps fuelling fires, with up to 3 million residents at the brink of power outages.
U.S. liquefaction plant developer Venture Global sees LNG-fuelled power generation as “a counter” to China’s building spree of new coal power units. By turning to LNG, utilities can “regain control of the energy transition in the post-Covid-19 era," Venture Global co-founder Michael Sabel told the Gastech Virtual Summit.
Carbon emissions will remain “stubbornly high” for another 15 years, the Norwegian classification society DNV GL says, though global emissions from energy use are forecast to fall 15% in the years through 2035. The oil & gas industry will still account for over 80% of energy-related emissions in 2050.
Global regasification capacity under construction is forecast to reach a 10-year high at 144 million tonnes per annum (mtpa) in 2020, with China accounting for over a third of the new-built capacity. Wood Mackenzie warned, however, the expansion of the Caofeidian and Rudong LNG terminals could be delayed to 2021.
Siemens Energy has laid out its post-spin-off strategy and set a target for an adjusted EBITA margin of 6.5 to 8.5% for fiscal year 2023. In its first phase, the company will focus on increasing profitability and cash flow by implementing a leaner cost structure, optimized logistics and centralized purchasing.