Anatol Feygin, Chief Commercial Officer (CCO) at Cheniere Energy, is bullish on forward margins for LNG shipments this spring. Asian buyers are expanding regas terminals and pipelines, he noted, with gas-fired power generation set to become the second-highest growth segment in China, India and Southeast Asia after renewables in terms of capacity additions.

Trucking LNG to remote demand centres has surged in China amid a policy push to switch from coal to natural gas in power generation. Pipeline networks take years to develop, hence LNG trucking increased to 8.8 million tons in the first quarter of 2021, up 45.2% year-on-year.

South Korea, the world’s third-largest LNG importer, will likely see natural gas demand rise 15% over the next 12 years as the country transitions from coal to gas generation and renewables. The energy ministry forecasts gas demand will amount to 41.7 million this year, and grow to 47.9 mt by 2034.

If the world takes decisive actions to limit global warming to 2°C by 2050, the scale of change is likely to unravel the energy industry. “Progressive electrification will squeeze the most polluting hydrocarbons out of the energy mix,” Wood Mackenzie says, forecasting oil demand will take a hit while gas demand remains resilient.

The rapid build-out of Philippine LNG import and power project puts many assets at risk of becoming stranded. The total investment in ports, LNG regas facilities, pipelines and power plants is estimated at over $13.6 billion (PHP 653.5bn), but much might be underutilized, analysts warned, as renewables become cheaper.

Siemens Energy today posted a substantial rise in second quarter orders, up 39% to €10.5 billion, driven by the wind turbine segment. However, the German OEM lowered the upper end of its revenue growth forecast for fiscal 2021 to 3-8%, amid weaker-than-expected demand and project delays.

The amount of debt and equity issued by US exploration and production (E&P) companies has surged to $4.4 billion in March 2021, the highest level since last August. Analysts say upstream players want to cash in on higher oil prices which bounced back from less than $40/bbl in spring 2020 to currently over $65/bbl.

Delek Drilling, owned by the Israeli billionaire Yitzhak Tshuva, has announced plans to divest a large share of its Tamar offshore gas field to an UAE-based company for an estimated $1.1 billion. Delek confirmed a memorandum was signed with Mubadala Petroleum, and the Israeli government has been notified about the proposed sale.

UK power prices have risen considerably above summer 2020 lows. Industry demand rebounded once Covid-19 lockdowns were lifted, which together with a bullish gas market will likely keep the May 2021 baseload power contract at £60/MWh – twice the value of the May 2020 contract this time last year.

The US economy has been badly hit by the Covid-19 pandemic, with gas consumption in 2020 falling to 1.9 Bcf per day below the 2019 high of 85.1 Bcf/d. Analysts expect gas demand for power generation will continue to fall in 2021 and 2022 amid greater renewable energy built-out.

Connected climate control expenditure in the European Union has grown to over €718 million, up 10% from pre-year levels, according to Delta-EE findings. Despite the negative effects of Covid-19 at the start of last year, the lockdown catalysed investment in house improvements which pushed up customer spending on climate controls from €670 million to €760 million.

Virta, a supplier of electric vehicle chargers, has closed a €30 million investment round led by Jolt Capital and two co-investors, Tesi and Vertex Growth. The funding helps Virta expand its e-charging business, with e-vehicles exceeding 20% market share in parts of Asia, Europe and the US.

Page 9 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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