Aksa Energji, a Turkish Independent Power Producer (IPP), has asked regulators to temporarily close a gas-fired power plant (147 MW) in the southeast province of Şanlıurfa. “It has become less possible to produce electricity at a competitive price,” Aksa said in a filing to the Istanbul Stock Exchange.
Dirty king coal is seen to shed 13 percent market share, accounting for just 22 percent of the global power mix in 2050 amid a massive build-out of renewables and some gas-fired backup power units. According to U.S. government analysis, wind and solar will rise 20 percent by mid-century and provide nearly half of the world’s electricity needs.
Importers of LNG to India strive to lower the per-unit-costs of natural gas to unlock the huge demand potential from fuel switching in the power sector. In eastern India, however, a severe lack of pipeline capacity hampers the distribution of regasified LNG, though works on the 2,655km Pradhan Mantri Urja Ganga (PMGU) pipeline are due completed by year-end.
China’s hunger for gas surpasses initial estimates, hence Gazprom is evaluating a second interconnector in the Far East. With the launch of the landmark ‘Power of Siberia’ pipeline, Gazprom’s focus shifted to its Chinese offtaker CNPC who agreed to import 38 Bcm annually over the next 30 years, under a deal worth some $400 billion.
Energy-related carbon dioxide (CO2) emissions in the United States are forecast to continue falling year-on-year through 2021. Coal-to-gas switching in the power sector led to a 10.8 percent fall in emissions in 2020, after plunging 12.7 percent in 2019 due to record-low gas prices. However, EIA analysts say this rate will be less this year and in 2021, at 2.7 percent.
Germany’s prime carmaker Volkswagen Group, producer of Audi and VW, has committed to invest €30 billion in battery-powered vehicles until 2023. Despite limited raw materials and few available e-car charging stations, there is "significant opportunity," analysts say, suggesting; "For auto manufactures, it could be a case of evolve or die out.”
The German finance ministry has made clear it will not pay more into the EU budget to bolster the Commission’s ambitious €1 trillion Green Deal. The ministry said if the EU budget remained at 1 percent of economic output, this would give "enough leeway for mustering the necessary funds through priority setting."
Bearish sentiment prevails at the U.S. benchmark Henry Hub where gas prices have tumbled to multi-year lows, dragging down wholesale electricity prices at several major hubs like PJM Interconnection and the ISOs in New England, and New York. In Texas, however, high demand and low reserve margins pushed up prices in the peak summer season.
Surging supply from the U.S. and stuttering demand growth in Asia means that in 2020, “Europe will again be called upon to save the day,” said Wood Mackenzie research director Robert Sims. With gas inventories at record highs, European gas buyers are looking for flexible supply, or increased demand creation from within the power sector.
Flow data shows U.S. natural gas output in the Lower 48 states has gained 7.0 billion cubic feet per day y/y to date in January, as shippers struggle with restrictions across the TETCO pipeline network in Appalachia. The return of cold weather this week, and long-term rig decline across Appalachia, starts to drag down production and pushes up gas prices.