Britain will be able to cover its power and gas demand this winter even in the event of an extreme cold snap, National Grid said, forecasting total gas demand at 46.6 Bcm, slightly lower than last winter. “As global gas prices have risen, it is likely that coal will replace gas in the generation merit order for some of the winter,” the TSO said in its Winter Outlook 2018/19.
The Appalachian Basin, home to some of the most prolific U.S. shale gas plays, has attracted more than $25 billion with of new investment in gas power infrastructure. A total of 29 new plants with a capacity of 475-MW or above are in operation, under construction or in the permitting process in Ohio, Pennsylvania and West Virginia.
Growth prospects for gas-distribution utilities are at risk in several American states, as decarbonization policies on state level and rising cost-competitiveness of renewables undermine the role of gas. According to McKinsey analysis, this could pose a challenge to gas distributors in some states as early as 2026, and in most of them by 2030.
Royal Dutch Shell will keep investing in global gas projects as demand is anticipates to grow at a rate of 2% per year, twice the rate to worldwide energy demand. “Our core business is, and will be for the foreseeable future, very much in oil and gas… and particularly in natural gas,” Shell CEO Ben van Beurden told a conference in London, warning about the risks of an LNG "supply crunch" by the mid-2020s.
Global demand will increase by 17%, or 635 billion cubic meters, until 2025 and most incremental demand growth will be driven by China, Gazprom CEO Alexey Miller said at St. Petersburg International Gas Forum. China is a market with enormous potential with annual imports forecast to reach 120 Bcm, but Miller stressed “the key market for us is undoubtedly Europe.”
Working natural gas stocks in the Lower 48 United States are at a low that has not been seen for the past thirteen years, down at 2,866 billion cubic feet (Bcf) as of end-September. Net injections of 474 Bcf or above during October would be needed to reach the projected threshold level at 3,270 Bcf, the U.S. Energy Information Administration says, warning of winter shortages.
Bioenergy is spurring the rapid growth in renewable energy resources between 2018 and 2023. According to the International Energy Agency’s (IEA) latest market forecast renewables will cover 40% of global energy consumption growth with another 1.3 Terrawatt of clean energy set to be installed by 2023.
The President of Argentina, Mauricio Marci, has welcomed the Emir of Qatar Tamim Bin Hamad Al Thani on a state visit, expressing confidence that “the trade volume between the two countries will increase rapidly in the coming years.” Argentina is trying to limit LNG imports, and become an energy exporter by effectively exploiting the country’s massive reserves of tight oil and shale gas at the Vaca Muerte formation at the Neuquén Basin.
In the first half of 2018, both natural gas supply and demand in the United States have increased by 12% compared to the first half of the previous year. Consumption and exports of U.S-produced gas averaged 93.4 billion cubic feet per day (Bcf/d), while total supply averaged 93.3 Bcf/d, according to the EIA’s September issue of Natural Gas Monthly.
Capstone Turbine Corp, the California-based manufacturer of microturbines, has seen its produce revenue increase 22% to reach $14.9 million in the second quarter of fiscal 2019. CEO Darren Jamison said the company made “progress towards fiscal 2019 strategic objectives” and recorded its second consecutive growth in product shipments.
UK Power Reserve (UKPR) has awarded the second phase of its battery-based energy storage contracts to Fluence, a Siemens and AES company. The 120-MW project is underpinned by capacity contracts secured in 2016, and UKPR is now tapping Fluence technology to enhance grid flexibility with all new storage projects scheduled to be in operation by winter 2020.
The French EPC company Groupement TEC-IEE has contracted Wärtsila to build a small-scale power project intended to boost the development of local industry in Equatorial Guinea. The new 38-MW plant, equipped with four 34DF dual-fuel engines, will be running primarily on gas supplied from the country’s offshore fields.