The Chinese government is watering down its pledges to reign in climate change and focuses on stepping up energy imports instead. Over the past year, China’s has demand surged 15% and a big part of these additional needs will soon be met through the Russian ‘Power of Siberia’ pipeline project as well as more LNG.
U.S. Environmental Protection Agency (EPA) is about to initiate more rollback regulations in favour of coal in the power sectors. The proposals included loosening the New Source Performance Standards which mandate how much CO2 new power plants can emit. However, these rollbacks are unlikely to stop the demise of the U.S. coal industry as natural gas is outcompeting coal on cost.
Adamant to end coal-burn in Israel’s power sector, the energy minister Yuval Steinitz foresees natural gas to make up 83% of the country’s energy mix, and renewables account for the remainder. If implemented, Israel’s new energy policy would herald a quantum shift in the county’s resource use given that the transport sector is also meant to run entirely on gas.
Distributed energy sources will be tested as a way to restart of electricity supplies under a £11.7 million project, partly funded by the UK energy regulator Ofgem. The project will see National Grid, SP Energy Networks and TNEI explore how distributed gensets can be put to use to get the grid up and running again, should a ‘Black Start’ event occur.
German authorities want to test the country’s resilience to a severe natural gas shortage with a large-scale emergency drill held over two days, the energy regulator BNetzA and Federal Ministry for Economic Affairs & Energy (BMWi) announced. “Germany’s gas supply is very secure and reliable,” said BNetzA head Jochen Homann. “However, it is prudent to be also prepared for unlikely emergencies.”
The German Chancellor Angela Merkel has extended the deadline for a much-awaited report from the country’s coal exit commissions. Elections in three coal states in eastern Germany in 2019, as well as lobbying from utilities prompted her to effectively axe the opportunity of having a report on pre-2020 action ready before the COP24 climate meeting in Poland in early December.
Leaked drafts of a report of Germany’s coal commission show the country’s coal exist will likely be delayed to 2022, rather than starting in 2020. The pathway of the coal exit is now in focus, rather than the exit date. Forced plant closure should be avoided, the commission said, stressing shut-downs need to agreed with operators who will claim compensation.
Flexible gas power plants will have to fill the capacity gap after Toshiba abandoned its £15 billion Moorside nuclear power venture in Cumbria, and will start to wind up NuGen in January. Moorside could have covered 7% of the UK’s electricity needs by 2025 – a share that now needs to be filled by fossil fuels, notably natural gas.
Northern Indiana Public Service Co. (NIPSCO) has alerted state regulators about plans to retire four coal-fired power units by 2023, and another one by 2028. The utility’s latest Integrated Resource Plan details NIPSCO’s efforts to produce 65% of its electricity from renewables and at least 25% of its output from natural gas.
Weakened by losses in state elections in Hesse and Bavaria, the German Chancellor Angela Merkel has decided to give way for a new leader of her conservative CDU party. Merkel’s decision could help the ruling coalition regain focus and make important decisions on energy, climate and other key areas. Uncertainty abounds about the timeline for Germany's coal exit.
India's Prime Minister Narenda Modi has voiced concerns over excessive delays in joint venture projects with Sri Lanka. The neigbouring island nation is expected to fast-track a LNG-fuelled power plant after a coal power project was halted, just when the Indian JV was about to start construction. Despite approval for a $250 million LNG import terminal near Colombo, the Indian-Japanese JV has not yet followed through with the project.
Siemens and General Electric, two rival global engineering companies, are at loggerheads over a multi-million dollar power generation deal in Iraq. The Trump administration now intervened and put severe pressure on the Iraqi government to award part of a $15 billion contract – first discussed and pre-arranged with Siemens – to GE Power & Gas.
Though China’s energy market reform has made progress, and over 80% of gas consumed by industry is now being sold on market-orientated prices, leading economists are calling for further steps that reform the entire gas-value chain. “China could open the natural gas upstream and downstream markets and regulate the midstream pipeline transport market,” said ZhongXiang Zhang Professor at the Ma Yinchu School of Economics, Tianjin University.
Tender documents have been posted by the Public Gas Corporation of Cyprus (DEFA) in search for a counterparty that will supply and install a floating storage and regasification unit (FSRU) at the port of Vassilikos. The LNG import project comes at a cost of €300 million, with the imported volumes set to underpin the conversion of an oil-fired power station to run on natural gas.
Federal Energy Regulatory Commission (FERC) has approved Williams’ request to place its Atlantic Sunrise pipeline project into full service. Operations commenced as of Saturday, October 6, 2018, increasing design capacity of the Transco pipeline for natural gas from Marcellus Shale by 1.7 billion cubic feet per day (Bcf/d), or approximately 15%, to 15.8 Bcf/d.