Electricity demand has plunged in China’s Hubei province, where factories and construction sites are dormant as workers are told to stay home to contain the coronavirus. Industry accounts for nearly 70 percent of electricity demand, so the quarantine in Hubei slashed peak power load to 22.5 GW, some 21 percent lower than planned.
All eyes are on China’s health crisis and its impact on economic and energy demand growth. Though a U.S.-China trade deal includes a promise for $52.4 billion in further purchases of American energy exports in 2020 and 2021, Beijing has left import tariffs in place. This could allow Russian pipeline gas to gain the upper hand over US LNG imports.
British utilities SSE and EDF Energy are among the winners of the latest T3 auction for capacity in 2022/23. Contracts for 45.06 gigawatts (GW) of back-up power generation capacity were awarded at a price of £6.44 per kilowatthour per year. SSE’s Keadby 1&2 gas power units as well as the Hinkley Point B nuclear reactor failed to get contracts.
Natural gas prices at Henry Hub are forecast to stay lower than $4 per million British thermal units (MMBtu) through 2050 amid an abundance of low-cost resources, primarily in the Permian Basin.“With continued technologically-enabled growth in production, we see the United States remaining a net exporter of energy for some time,” said the head of the U.S. Energy Information Administration (EIA), Linda Capuano.
Electricity generation from renewable energy sources in the United States is forecast to double between now and 2050. Declining capital costs, and higher renewable portfolio standards (RPS) targets in some U.S. states, will prolong the sharp growth in renewables seen during the past ten years while gas-fired generation stays rangebound.
LNG and pipeline gas have still a long way to go to reduce, let alone replace, the current “massive coal consumption” by Asian nations. In contrast to Europe, where gas is regarded as one of the fossil fuels amid strives for net-zero emissions, "coal-to-gas switching is important in Asia," the Institute of Energy Economics in Japan (IEEJ) noted.
Wärtsilä has missed Q4 expectations as order intake plunged 17 percent and the operating result fell to 202 million Euros, or 12 percent of net sales. Anticipating “soft” demand, Wärtsilä CEO Jaakko Eskola said “the year 2019 was characterised by a difficult environment and poor financial performance.”
Crude oil and associated gas production in the United States will keep growing, albeit at a much slower rate due to a decline in rigs. Projections of the U.S. government, revised in January, expect growth rates in crude oil production to slow down from 9 percent to just 3 percent by 2021, and remain subdued.
Germany's gas industry plans to establish a 5,900 kilometres pipeline network to enable the large-scale use of hydrogen use. FNB Gas, representing German gas TSOs, intends to use mainly existing infrastructure to transport hydrogen from future generation sites in the north of the country to industrial centres in the west and south.
Rising upstream spending, notably in unconventional oil and gas resources, will drive the related gas turbine market to an estimated $1.2 billion, growing at 3.5 percent annually through 2024. Major suppliers in this sector are GE, Siemens, Mitsubishi Heavy Industries, Solar Turbines, and Kawasaki Heavy Industries.
With solar PV set to become India’s largest power source by 2035, more energy storage capacity is needed to balance supply and demand when the sun is not shining. According to the International Energy Agency (IEA), battery storage will account for more than one-third of India’s total deployment by 2040.