Markets

As Malaysia's government gears up to lifting subsidies on natural gas the market share of gas-fired power generation is bound to drop, forecasts Sarah Fairhurst of The Lantau Group. "Gas-fired power generation is likely to fall in Malaysia as it slowly lifts subsidies. Gas, which was heavily subsidized before, is now becoming more expensive and less economic," she told Gas to Power Journal.

Gas generation is expected play a bigger role in denting Brazil's need for peak load power supply, providing bottlenecks in the gas pipeline network will get resolved so that power companies can make full use of domestic gas reserves, according to a GlobalData report. Gas-fired power plants in Brazil are predominately dispatched as peaker plants, due to high fuel prices for natural gas compared with hydropower.

Singapore is on track to reach 90% gas-fired power generation capacity, Neil McGregor, chief executive at Singapore LNG Corporation forecast.

Power generation companies and industries in Singapore have committed to purchasing around 2.7 million tons per annum (mtpa) of LNG, S. Iswaran, second minister for home affairs and trade and industry said at the Asia Gas Summit. BG, appointed as the aggregator for importing the first 3 mtpa of LNG, has already achieved 90% of its franchise, he revealed.

Plans for an ASEAN power grid must proceed cautiously with one step at a time, says power analyst Sarah Fairhurst of The Lantau Group. "There are too many players trying to align too many interests," she told delegates at the Electricity Roundtable organised as part of the Singapore International Energy Week, referring to wide disparities among South-East Asian countries.

The share of gas generation in India, which at present is about 10%, is expected to rise as the government steps up efforts to form a national gas grid. Provisions in the Electricity Act such as open access to transmission and distribution network, recognition of power trading as a distinct activity, flexibility accorded to captive generating plants and provision of supply in rural areas will introduce and encourage competition in the electricity sector, an analyst with India's Central Power Research Institute (CPRI) told Gas to Power Journal.

Siemens plans to divest its lossmaking solar sector to focus its renewable energy activities on wind and hydro power. The German engineering giant confirmed it is currently in talks with potential buyers.

The market share of natural gas in Germany's power generation mix is estimated to rise to 19%, the regulator BNA's estimated in a mid-range scenario, deemed more likely than a bullish or bearish case. The mid-range scenario anticipates installed capacity from gas-fired plants to surge from 26.5 GW in 2011 to 32.9 GW in 2023.

Unconventional gas, due to its estimated abundance, has improved energy security in the United States and started a process of gas displacing coal as the dominant power generation fuel. Europe needs to adapt regulation to foster shale gas drilling, as it needs unconventional gas to make up for depleting indigenous gas production and supply new-build gas-fired plants, says Morgan Bazilian, deputy director of the Joint Institute for Strategic Energy Analysis in Colorado, USA.

South Korean energy companies, in line with the government's "Green Growth policy", have shifted towards generating more electricity from nuclear and renewable energy sources backed up by gas generation, analysts say. The government has also embarked on the liberalization of its electricity market to improve competition in the industry and encourage investment with the aim of increasing installed capacity.

Singapore has ruled out nuclear energy as an alternative for the near future despite concerns over energy security. The city-state is heavily reliant on imported natural gas for power generation and policy makers had mulled the nuclear option to complement its energy mix.

Turkey keeps getting the attention of players from every corner of the natural gas-based power generation industry, even though the government complains about the country's dependency on natural gas and pledges to bring it down from today's 70% market share.

Page 228 of 248

News in Brief

Cresta to fund Lapis Energy’s CCS projects

Jan 18 – Texas-based Cresta Fund Management has agreed to finance Lapis Energy’s CCS and clean hydrogen projects. The two partners are now looking to identify, design and develop projects for the permanent sequestration of CO2, targeting customers within the heavy industry and petrochemical companies.

GE to repower Long Lake plant

Jan 17 – GE will modernize four generors at the Long Lake hydropower plant in northwest US, operated by Avista Utilities. Once refurbished, the plant will have an installed capacity of more than 100 MW. The first modernized Long Lake unit is scheduled to go into operation at the end of 2024 and the last one in 2029

mtu to power Romania’s largest data center

Jan 14 – mtu Series 4000 gas generators will provide electricity heat and cooling for Romania’s largest data center. ClusterPower is building a 273,000-squaremetre technology campus near Craiova by 2025, where it will host five data centers with a Power Usage Effectiveness (PUE) of 1.1

Green hydrogen from Quebec

Jan 13 – Charbone has agreed to provide the US propane distributer Superior with green hydrogen from its Sorel-Tracy facility in Quebec, Canada, starting from the third quarter of 2022. The hydrogen will be delivered directly from Charbone’s H2 plant to Superior’s customers which include mining, power generation, transportation and industrial energy users. 

Cresta to fund Lapis Energy’s CCS projects

Jan 12 – Texas-based Cresta Fund Management has agreed to finance Lapis Energy’s CCS and clean hydrogen projects. The two partners are now looking to identify, design and develop project for the permanent sequestration of CO2, targeting customers within the heavy industry and petrochemical companies.

US rivals Australia as world’s largest LNG exporter

Jan 11 – Analysts at the US Energy Information Administration (EIA) are confident that the growth in US LNG exports could see America’s liquefaction and send-out capacity exceed that of Australia and Qatar – the world’s two largest LNG exporters. Looking ahead, the EIA expects US exports of the super-chilled gas will rise 17% from 2021 levels to average 11.1 Bcf/d from December through March.

Africa’s first FLNG plant arrives in Mozambique

Jan 10 – Coral Sul FLNG, Africa’s first-ever floating LNG facility has arrived in Mozambican waters. The plant is critical to develop the US$7 billion Coral South project, led by the Italian oil and gas company Eni. Some of the produced gas will be used for power generation in Mozambique, though most will be liquefied and sold to global markets.

GE snaps up Opus One Solutions

Dec 23 – GE Digital has agreed to acquire Opus One Solutions Energy Corp, a Californian software company that helps utilities integrate renewables and Distributed Energy Resources (DERs) at scale across the electric grid. The transaction is expected to close within 30 days, GE stated without disclosing what price was paid for the takeover.

Qatar invests in Rolls-Royce’s nuclear power business

Dec 22 – Qatar Investment Authority, the state’s sovereign wealth fund, has agreed to invest £85 million in Rolls-Royce SMR, the company’s new technology for small-scale, low carbon nuclear power. UK business and energy secretary Kwasi Kwarteng called the investment a “clear vote of confidence” in the UK’s nuclear innovation. It follows £210 million Qatari investment in the development in Small Modular Reactors. Now fully funded, Rolls-Royce SMR business also received £490 million through commercial equity and UK Research and Innovation (UKRI) grant funding. 

JERA helps Japanese film producer curb emissions

Dec 20 – Toho, a Japanese film producer and entertainment company, will get support from the country’s largest power producer JERA to reduce CO2 emission from film production. To that end, JERA will supply zero-emissions energy to Toho and draw up a roadmap to decarbonise the media company as a whole.

Tractebel develop concept to store H2 offshore

Dec 17 – Tractebel Overdick and partners have developed an offshore infrastructure and processing facilities concept that relies on the storage of hydrogen (H2) in offshore caverns. The design study outlines a scalable offshore platform for the compression and storage of up to 1.2 million cubic meters of hydrogen.

Ethatec uses CO2-free power to produce ethanol

Dec 15 – ESG Clean Energy has signed a letter of intent (LOI) with Ethatec to use ESG’s patented CO2-free gensets to its ethanol production. Ethatec uses waste from bakeries and pizza factories which is being crushed and then mixed with water and enzymes and heated in a multi-stage mashing process to saccharify the starch. It is then cooled and fed into fermentation tanks, where yeast is added. for alcoholic fermentation of the sugar. After 72 hours, the mixture is fed to a distillation system where ethanol is obtained.

Anax helps Magellan mine bitcoin under US$12m deal

Dec 16 – Ohio-based Magellan Scientific has entered a long-term accord, worth US$12 million, with Anax Power to generate zero-emission electricity from natural gas flows for Magellan’s distributed data centres, using 500 kW Anax turboexpanders. This green power will be used to lower the carbon-intensity of bitcoin mining and help US interstate pipeline operators and utilities accelerate their net-zero emission goals.

Cryogenic insulation market to top $4.6m by 2026

Dec 14 – The global market for cryogenic insulation is forecast to reach $4,659.85 million by 2026, expanding at an annual rate of 8.76% over the next five years. According to ResearchandMarkets, companies need to keep investing in R&D to deliver more efficient products at a lower cost and improve product durability.

Industry wary about new German energy policy

 Dec 13 – The German industry is closely watching how the new coalition government will implement its clean energy policies.  Security of supply is a major issue given that the coal exit date has been pushed forward by eight years to 2030, while electrification of transport and hard to abate industries is set to push up demand substantially. To decarbonise traffic, over 15 million electric cars are meant to be on the roads by the end of this decade.

ADNOC awards FEED contract to Technip

Dec 10 – Technip Energies has been awarded a Front-End Engineering Design (FEED) contract to integrate carbon capture technology to ADNOC’s Ghasha mega project in Abu Dhabi. The Ghasha Concession is the world’s largest offshore sour gas development, where ADNOC together with Eni, Wintershall Dea, OMV and Lukoil aim to develop up to 1.5 billion cubic feet per day (bcf/d) of natural gas, as well as condensate and oil.

US gas-burn down 3.6% on mild weather

Dec 9 – Natural gas used in the US power sector has fallen by 3.6%, or 1.0 billion cubic feet per day (Bcf/d) over the past week amid mild weather conditions, although industrial sector consumption was up 0.5%, or 0.1 Bcf/d over the same period. Natural gas exports to Mexico increased 3.6%, or 0.2 Bcf/d . Natural gas deliveries to U.S. LNG export facilities (LNG pipeline receipts) averaged 12.0 Bcf/d, or 0.3 Bcf/d higher week-on-week, according to government data.