Steel and other energy-intensive industries have “no future the UK,” lobbyists claim, blaming the government’s 2050 Net Zero emissions target for the rise in electricity prices. Figures by the industry association UK Steel indicate electricity prices in Britain are between 60% and 80% higher than those in France and Germany.
Western Gas is re-examining the idea of delivering natural gas from its Equus project in Australia at competitive prices to the East Coast via a transcontinental pipeline. The feasibility of that pipeline is being examined together with the infrastructure company APA Group, comparing the cost of transporting gas by pipeline versus LNG shipments.
Russia’s Gazprom is adding an auxiliary power plant to expand the output from its Chayandinskoye oil, gas and condensate field, put into operation in December 2019. Igor Krutikov, Director General of Gazprom Dobycha Noyabrsk announced the 72 MW auxiliary power plant is “ready for launch” and will help achieve “energy independence” for upstream operations.
Black Bear Transmission, headquartered in Houston, has completed the sale of gas gathering assets owned by BBT Alabama to an undisclosed buyer. The divesture comes just month after Black Bear bought NGT Assets from Third Coast Midstream in September 2020, in a move to streamline its business structure and save cost.
Risks of large-scale UK power generation units not being operational next winter have substantially increased National Grid’s procurement target in the latest capacity market auction. This, in turn, pushed up the clearing price in the T-1 auction Round 6 for deliver year 2021-22 to a record price of £45 per kW.
A sudden and critical drop in electrical frequency brought the EU power grid at the brink of collapse on January 8, 2021, when grid operators had to split up the integrated power system to avert blackouts. 4,000 fast-start Jenbacher gas engines helped TSOs to regain grid frequency within a few minutes.
US LNG export have notched up amid rising buying interest in Asia and Brazil, where more and gas peaking power plants are being dispatched as drought condition limits baseload hydropower generation. Several cargoes also set sail for Asia where the JKM price for North Asian spot cargoes for April increased to $6.000 per MMBtu, up from last week’s $5.805 per MMBtu.
Natural gas production across the United States has fallen by 1% over the course of 2020, despite rising output from Marcellus and Utica Shale where production kept growing despite low regional spot prices. Within the Appalachia region, West Virginia saw the largest rise in gas production, up by 1.2 billion cubic feet per day (Bcf/d), or 20%, to reach 7.1 Bcf/d.
The 2021 February cold freeze has claimed the first victim, with Brazos Electric Power Cooperative filing for Chapter 11 bankruptcy protection. Brazos said in a statement it was hit by “excessively high invoices” of $2.1 billion from the Electric Reliability Council of Texas (ERCOT) for purported cost electricity service during February 13 and 19.
US gas demand spiked in the mid-February cold freeze, was pushing up storage withdrawals to record highs. Weekly stocks fell by 338 billion cubic feet (Bcf) in the week ending February 19, 2021, according to EIA figures, and a record 156 Bcf of natural gas was withdrawn in the South Central region which includes Texas.