Octávio Simões, Tellurian president and CEO, expects LNG demand will increase as the world electrifies and its population grows. To make the superchilled gas attractive, Tellurian offers volumes on JKM, TTF or blended price basis and has just sealed a 10-year supply deal with Vitol.

Industry, transport and the heating sector in Germany will need significantly more  hydrogen than the current 57 Terrawatt-hours (TWh) per year, produced almost entirely from fossil fuels. Come 2030, the demand for green hydrogen and derivatives will be around 80 TWh and could surge to 300 TWh by 2040, the Fraunhofer institute forecasts.

Argentina’s seasonal LNG imports are increasing following the arrival of Excelerate’s FSRU Exemplar at Bahia Blanca, just south of Buenos Aires. The first commissioning cargo already arrived at the FSRU which helps source additional supply for the southern-hemisphere 2021 winter season.

Strengthening economics of coal-to-gas switching has pushed up prices at the TTF, Europe’s most liquid gas trading hub. With carbon and coal prices up by 33% and 26%, respectively, TTF gas prices increased $3/MMBtu to nearly $9/MMBtu. Restriction to coal-burn also boosts the dispatch of gas-fired power plant in South Korea and Taiwan.

Japanese turbine maker Mitsubishi Power has set up the ‘Gas Turbine Combined Cycle EMEA Business Unit’ in Dubai to sell more J-series air cooled (JAC) turbines into Europe and the Middle East. JAC turbines can operate on a 30:70 fuel mix of hydrogen and natural gas, and are meant to run fully on hydrogen in the future.

Developers of LNG-to-Power projects are advised to secure flexible gas delivery terms through an aggregator before the market flips again and demand outstrips supply. According to Watson Farley & Williams, this is likely to happen by 2022 or 2023 as current Capex cuts delay new liquefaction projects.

Reaching Net Zero emission means reducing fossil fuel use, but gas-burn is still forecast rise through 2040 – amid a lack of alternatives. The phase-out of coal and nuclear power in Germany requires gas generation to change from providing baseload to backup power and meeting residual loads.

India’s spike in Covid19 cases has made utility buyers sell LNG cargoes heading to the country as energy demand dropped amid calls for another nationwide lockdown. Six to seven LNG cargoes are already diverted, Kpler ship tracking data shows, and four tankers switched to floating storage.

Rebounding spot prices at Henry Hub have prompted US utilities to switch from natural gas-fuelled power plants to renewables and thermal coal units. The Henry Hub spot price averaged $2.66 per million British thermal units (MMBtu) in April and is forecast to rise to $3.05/MMBtu later this year.

Japan’s Mitsubishi Power, part of MHI Group, has captured the top gas turbine market share (29%) by megawatt in the first quarter of 2021, according to McCoy data. It also secured 40.8% of the heavy-duty gas turbine segment, amid strong order intake for Series Air-Cooled (JAC) turbines.

Japan’s largest power producer JERA will be working with Yara to upgrade its Pilbara fertilizer plant in Australia to produce blue ammonia – a promising, emission-free fuel. Blue and green ammonia from Pilbara will be shipped to Japan, for co-firing JERA’s gas power plants.

US natural gas production has slowly recovered from a plunge in February when a record-breaking cold snap caused production freeze-offs at US oil and gas wells, sending wholesale electricity prices soaring. Texas suffered blackouts and fuel supply shortages, as the state’s gas production fell 4.3 billion cubic feet per day (Bcf/d), or 15%, to 21.5 Bcf/d.

Page 8 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.

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