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.
Jeremy Corbyn, the leader of the UK Labour Party, has set out plans to transform the British energy market and “kickstart a green jobs revolution” that is meant to create over 400,000 jobs. At his party’s annual conference, he also pledged to double the number of onshore wind farms, if Labour comes to power in case of a UK snap election.
US Energy Secretary Rick Perry has openly confronted Russia over its energy politics by claiming the Gazprom-led Nord Stream-2 project would distort European energy market. Perry said Nord Stream extension project “would concentrate two-thirds of the imports of Russian gas to Europe in a single pipeline, creating a choke point [exposed to potential] disruption."
At the UK's first Zero Emission Vehicle Summit, Prime Minister Theresa May has committed £106 million for R&D in green vehicles, new batteries and low carbon technology. May said the Britain will “lead from the front” on zero-emission cars to meet a target for UK roads to be free of petrol and diesel cars by 2050.
Construction on a disputed 303-mile stretch of the Mountain Valley Pipeline is proceeding after the U.S. Federal Energy Regulatory Commission (FERC) has modified its stop-work order and permitted works to resume. Next Era Energy and ConEdison Transmission, co-developers of the 2 Bcf/d interstate pipeline, now aim to have the overall project built and in service by late 2019.