Markets

February 2012 was an "outlier" in electricity consumption and should be considered as such, Societe Generale  analysts, led by Paolo Coghe and Thierry Bros, wrote in the Energy Pulse report issued today. The prolonged and record-breaking cold spell endured by Europe during the first half of February resulted in strong electricity  consumption – but just for the month itself.

Gas prices across Europe need to drop by 20% to make the fuel competitive with coal for power generation during hours of peak demand, Vitol's gas head David Gallagher said. At that level it would make economic sense for electricity producers to switch from burning coal to gas.

Reliance Industries, India's biggest company by market capitalisation,  has filed for arbitration this week, claiming the Indian government is restricting it from recovering cost on developing an offshore gas block. The dispute prompted Reliance to curtail gas supplies to Indian power plant operatiors, leaving India with a severe electricity shortage.

International Power (IP), a London-based energy group, has posted a 5% rise in  revenues to €4,257 million in the first quarter driven by strong growth in Asia and Lation America. In an interim management statement, IP said revenue in Asia surged 22% to Eur491 million while revenue in Latin America increase by and 16% to Eur1.021 billion.

Gains for gas demand in the power and industrial sector will offset a decline in gas demand for residential use, Howard Gruenspecht, acting administrator, U.S. Energy Information Administration (EIA) said today. The share of natural gas in the U.S. energy mix is forecast to rise 27% by 2035, from 24% in 2010, according to EIA forecasts.

Ofgem, the U.K. energy regulator, warns Britain might face a gap in power generation capacity as ageing plants are being retired while construction of new nuclear, gas-fired or offshore wind power projects are delayed. "Britain is facing pretty frightening times with regards to spare capacity," Alistair Buchanan, Ofgem CEO said today.

Except for Europe, the global gas-to-power sector is expanding rapidly driven by rising electricity demand in emerging markets. "Even if gas is regulated to death in Europe, the growth of gas-to-power generation will continue outside Europe," Stefan Judisch, chief executive of RWE Supply & Trading said today.

The share of gas-fired power generation is likely to rebound in the mid-term future in line with growing renewable power production. "The key driver for gas demand growth in Europe will come from the power generation sector," Klaus Schäfer, CEO, E.ON Trading & E.ON Ruhrgas forecast today.

Gas does not get to play its rightful role in the European energy mix, Rune Bjornson, senior vice president natural gas, Statoil said today. Adverse economics currently hamper the rise of gas in the energy sector, he said, suggesting "the price of carbon is far too low to incentivise a switch from coal to gas".

China is set to become "the engine of global gas demand" in the coming years, as opportunities for a greater share of gas in power generation arise due to Government concerns about air pollution, Fatih Birol, chief economist at the International Energy Agency (IEA) said today.

The Middle East has seen the highest growth rate globally of dry natural gas consumption, rising from 53 trillion cubic feet (Tcf) to 113 Tcf between 1980 and 2010, according to figures published by the U.S. Energy Information Administration (EIA). A key driver for the rise was the expanding in gas-fired power generation sector in the Gulf region.

Traded natural gas contracts in the U.S. need stay on low levels to motivate electricity producers to continue with coal-to-gas substitution in Powder River Basin coal-burning regions, investment bank Goldman Sachs said.

Page 238 of 245

News in Brief

CCUS market to reach nearly $3bn in 2025

Oct 25 – The global carbon capture, utilization, and storage (CCUS) market will grow from $1.30 billion in 2020 to $1.46 billion in 2021, according to ResearchAndMarket estimates. The rebound comes as companies return to normal operations and sales, after a pandemic-related slowdown. Analysts expect the market will keep growing at a rate of nearly 20% annually to reach $2.97 billion by 2025.

SDG&E accelerates drive towards Net Zero by 2045

Oct 20 – San Diego Gas & Electric Company (SDG&E) has set a new sustainability strategy, outlining new and accelerated goals to help meet its pledge to reach net zero greenhouse gas (GHG) emissions by 2045. SDG&E it now seeks to operate a 100% zero emissions vehicle fleet by 2035 – five years earlier than planned.

B&W develops biomass-to-hydrogen plant in Australia

Oct 19 – B&W's Renewable segment and Port Anthony Renewables Ltd have started to develop a biomass-to-hydrogen energy project in Victoria, Australia, based on B&W’s BrightLoop technology. When completed, the plant is expected to be part of the largest green hydrogen hub in south-eastern Australia.

LNG prices rise faster than oil

Oct 18 – Liquefied natural gas and pipeline supplies have experienced an even sharper increase in prices in 2021 than oil, driven by a combination of circumstances that included a strong recovery in demand in North Asia, southeast Asia and Europe, unseasonal weather and planned and unplanned capacity outages.

Wärtsilä shaft gensets to power two LNG carriers

Oct 14 – The Finish technology group Wärtsilä has been awarded a contract to supply four shaft generators to provide electricity take-off from the main engines of two LNG carriers. The ships are being built at the Hyundai Heavy Industries (HHI) shipyard in Korea on behalf of the Capital Gas Ship Management of Greece.

VoltH2 gets green light for large hydrogen plant

Oct 13 – Vision Hydrogen Corp has announced that its affiliate VoltHe has received building and environmental permits to realise its first large-scale hydrogen plant at the Dutch North Sea Port of Vlissingen. The 5 MW hydrogen plant is located near existing high voltage power and gas infrastructure as well as large wind power assets. Once operational, it will produce around 3,500 tons of green hydrogen per year and will be scalable to 100 MW or 14,000 tons.

Tesla overtakes German e-cars

Oct 12 – Sales of Tesla in Germany has overtaken that of leading German carmakers. In September, more electric Tesla Model 3s were registered in the country than leading domestic models, such as the BMW 3 Series, Audi A4 and Mercedes C-Class combined.

EnerMech spends £500k on crane training tech

Oct 11 – EnerMech has invested £500,000 in new crane simulator training systems at its Luanda (Angola), Doha (Qatar) and Great Yarmouth (UK) facilities. The British company recently formed a joint venture with 3t Energy Group to bring the KraneSIM-6000 equipment to both Qatar and Angola and offer in-country training across client organisations globally.  

Germany finances green hydrogen projects abroad

Oct 8 – The German government has agreed to support green hydrogen projects in other countries with up to €350 million by 2024, the economy ministry said when publishing a directive with relevant guidelines. Moreover, financial support is given to projects that produce and process green hydrogen for storage, transport and use in countries outside the EU through investment grants worth up to €15 million each.

UK e-car sales surge 186%

Oct 6 – Sales electric cars in the UK have surged 186% to a total of 108,000 in 2020 during the pandemic, up from just 38,000 in the previous year. Latest statistics show there were nearly 300,000 pure-electric cars on UK roads at the end of August 2021, and more than 600,000 plug-in models if including plug-in hybrids (PHEVs).

FogHorn deploys AI software at Chugoku Electric Power in Japan

Oct 4 – FogHorn, developer of Edge AI software, has deployed its Internet of Things (IoT) software at the Chugoku Electric Power hydroelectric power plant. The AI solutions will make the power gen process more efficient and enhances workplace safety. Chugoku Electric Power employs nearly 9,200 workers across 114 power units in the western part of Honshū, the largest island of Japan.

Rolls-Royce supplies MTU engines for ferry propulsion

Oct 1 – Rolls-Royce's new MT engines, automation system, and MTU Go! tool for remote service have future-proofed the high-speed catamaran Avemar Dos, run by the Spanish operator Balearia. Four MTU 20V1163 M84 units replaced the previous 1163 units, taking the vessel to a "new level of ecological soundness," the manufacturer says.

GES appoints former Puma Energy Chairman as NED

Sept 30 – Global Energy Storage (GES) has appointed the former Puma Energy Chairman, Graham Sharp, as an NED. Graham will support GES on its ‘new energies’ strategy for the energy transition, focusing on hydrogen fuels and hydrogen carriers space.

Aggreko reaches 2 GW of live power gen capacity

Sept 29 – Aggreko has today announced it has reached 2GW of live global gas power capacity and growth in flare gas to power and stranded gas projects. This new record follows a milestone of exceeding 1GW of delivered flare gas power projects in 2020.

Wärtislä renews O&M agreement with Lafarge Africa

Sept 28 – The Finish technology group Wärtsilä has renewed a long-term Operation & Maintenance (O&M) agreement with Lafarge Africa, a large producer of building materials in Nigeria. The agreement covers the 100 MW Lafarge Ewekoro power plant, which provides a dedicated supply of electricity to the company’s concrete and cement manufacturing processes.

Rolls-Royce supplies MTU engines to Sanlorenzo

Sept 27 – Rolls-Royce business unit Power Systems will become one of the leading engine suppliers for Sanlorenzo, delivering MTU 10V, 12V and 16V 2000 yacht engines with a compact IMO 3 solution. A framework contract from 2022 through 2024 has been signed at the Monaco Yacht Show.

Shell exits Permian Basin

Sept 24 – Royal Dutch Shell has sold all its upstream interested in US Permian Basin to ConocoPhillips for $9.5 billion in cash. Shell’s assets in the Permian include around 225,000 net acres with a current production of around 175,000 barrels per day equivalent.

House ad Jul2020