Despite strong global growth in renewables, fossil fuel-based electricity is set to cover 45% of additional power demand in 2021 and 40% in 2022, the IEA said this week. Gas-fired generation growth lags behind coal, as it plays a smaller role in the energy hungry Asia Pacific region and faces competition from renewables in the US and Europe.
Mozambique / Rwanda – Rwanda has sent 1,000 soldiers and police officers to the troubled Cabo Delgado province in northern Mozambique to help combat an Islamist insurgency which has put the development of TotalEnergies’ LNG megaproject on hold.
China – Shell and state-owned giant PetroChina have announced the signing of the “world’s first term contract for carbon neutral LNG,” with Shell set to supply carbon neutral cargoes to the Chinese firm for a five-year period.
Japan – The country’s central bank has said it will provide zero interest loans to Japanese financial institutions investing in efforts to tackle global warming, with a view to driving the growth of Japan’s green bond market.
South Korea – State-run KOGAS has signed its first 20-year SPA in nine years, penning a deal with QP for 2 mtpa, which will partially replace a 25-year agreeement the pair currently have in place scheduled to expire in 2024.
Australia – Woodside has identified a corrosion issue at the Karratha Gas Plant, part of the North West Shelf LNG plant, and while the scope of the problem remains unclear, the company is reportedly repairing Train 4 and inspecting other liquefaction trains.
Separately, Woodside has launched the formal sell-down process for stakes in its proposed integrated Scarborough field and Pluto Train 2 development, the firm’s acting CEO Meg O’Neill announced last Thursday.
A consortium led by InterContinental Energy has announced plans for a USD 74 billion renewables mega project in Western Australia that could produce 50 GW of renewable power and 3.5 mtpa of green hydrogen or 20 mtpa of ammonia.
TotalEnergies has unlocked USD 750 million from the Gladstone LNG project thanks to a 15-year deal, under which investment fund Global Infrastructure Partners will receive tolling fees for gas that the French major’s subsidiary processes at the plant's downstream facilities.
EU – The European Commission has published its “Fit for 55” package of proposals to help the bloc cut GHG emissions by 55% from 1990 levels by 2030 using the world’s first carbon border tariff and effectively ending the sale of new diesel and petrol cars by 2035.
The European Court of Justice has rejected an appeal by Germany over restricted access to the OPAL pipeline which brings gas from Nord Stream 1 onwards through Germany to the Czech border.
UK – Eni and Edinburgh-based offshore wind developer Red Rock Power formed a 50:50 JV to bid in the ScotWind leasing round that closed on 16 July, making Eni the latest IOC to enter the race for offshore wind assets in Scotland.
Separately, ScottishPower and Shell have launched a joint bid for the ScotWind seabed leasing round to develop “the world’s first large-scale floating offshore windfarm in the north-east of Scotland.”
US-based infrastructure developer 8 Rivers Capital and a UK subsidiary of Singapore-based Sembcorp Industries have announced plans to develop a 300 MW gas-fired plant with carbon capture and storage (CCS) in the north of England.
United Arab Emirates – The Abu Dhabi National Oil Company has awarded three drilling services contracts worth over USD 760 million as part of its aim to increase its oil production to 5 million barrels/d by 2030 and achieve gas self-sufficiency for the UAE.
Canada – Shell is planning a carbon capture and storage (CCS) facility at its Scotford refinery and chemicals plant in Alberta which could store 300 million tonnes of CO2 over the project’s lifetime, the company said last week.
Mexico – BP was scheduled to deliver its first carbon offset LNG cargo to Sempra’s Energia Costa Azul terminal in Mexico last week, with the cargo marking the first ‘carbon neutral’ LNG for Sempra, Mexico and North America.
US – Tellurian has terminated a proposed stock and LNG purchase agreement with French major TotalEnergies, leaving the US LNG developer with one less offtaker for its planned Driftwood LNG plant.
Mountain Valley Pipeline has announced plans to use the world’s biggest “coal mine methane abatement project” with a view to offsetting a decade’s worth of emissions from its long-delayed MVP pipeline project.
In the first year of the Biden administration, new federal drilling permits could hit a 20-year high, which threatens to undermine Biden’s green credentials amid mounting pressure from environmentalists and left-wing Democrats to advance the energy transition.
The US’ largest LNG exporter Cheniere has secured further feedgas for the proposed third phase expansion of the Corpus Christi LNG plant by signing a long-term supply agreement with Canada’s largest gas producer Tourmaline.
Sri Lanka – New Fortress Energy has signed an MoU with the country’s largest independent power producer Ladakhanavi to jointly develop a 350 MW gas-fired plant at the Kerawalapitiya Power Complex near capital city Colombo.