Weekly HEG Global Energy Digest
First Shipment of gas from Yamal LNG project arrives in China
The first shipment of liquefied natural gas (LNG) from the Yamal LNG project in the Arctic arrived in Jiangsu Province in eastern China on Thursday, reports thepaper.cn.
The maiden voyage to China of the Vladimir Rusanov, a 172,000-cubic-meter LNG carrier, was commemorated by a ceremony attended by Nur Bekri, the director of the National Energy Administration of China, and Alexander Novak, Russia’s minister of energy.
The LNG carrier traveled to China via a 10,700-kilometer-long northern sea route, which is about 13,400 kilometers shorter than the traditional eastern shipping route via the Suez Canal and the Strait of Malacca. The new route could cut more than 20 days from the voyage, according to thepaper.cn.
The Yamal LNG project operated by JSC Yamal LNG is a joint-venture with Russia’s largest independent natural gas producer NOVATEK. The China National Petroleum Corporation and the Silk Road Fund are both major stakeholders.
The LNG extraction project on the Yamal Peninsula is still under construction. When fully complete, the gas it produces will be shipped to the Asia-Pacific and European markets. This includes more than three million tons of LNG that will be imported annual to China for the China National Petroleum Corporation starting next year.
Article Source: https://www.energymarketprice.com/energy-news/first-shipment-of-gas-from-yamal-lng-project-arrives-in-china
UK to scrap Feed-in Tariff scheme in April 2019
The UK Government has announced plans to axe the Feed-in Tariff (FiT) scheme from April next year.
It does not intend to replace the initiative and there will be no grace period for those projects in oversubscribed deployment caps queuing beyond the closure date of 31st March 2018.
The date has been set for both export and generation tariff.
The FiT scheme was established in 2010 and provides payments to owners of small-scale renewable generators at a fixed rate per unit of electricity produced and is funded through levies on suppliers, which are passed on to consumers.
BEIS says at the time the programme was introduced, it was estimated to add £440 million per year to consumers’ energy bills in 2020.
However, it suggests these projections are no longer correct – the latest estimate is £1,600 million per year at the end of the decade.
Impact assessment analysis found the closure of FiTs would save between £1.3 billion and £1.9 billion.
BEIS adds: “Since 2010, our support has driven down the cost of small-scale low carbon electricity generation significantly. As costs continue to fall and deployment without direct subsidy becomes increasingly possible for parts of the sector, it is right that the government acts to ensure continued value for money for billpayers over the longer term. That is why government took the decision in 2015 to close the generation tariff from end of March 2019.”
It is consulting on the proposals until 13th September 2018.
Article Source: https://www.energymarketprice.com/energy-news/uk-to-scrap-feed-in-tariff-scheme-in-april-2019
Vattenfall inks power deal with Novo Nordisk, Novozymes
Swedish utility Vattenfall announced Friday a long-term power purchase agreement with global healthcare company Novo Nordisk and bio innovator Novozymes, both based in Denmark.
“Novo Nordisk and Novozymes will source their power consumption from Vattenfall and its offshore wind farm Kriegers Flak, which is being developed in the Baltic Sea,” a press release read.
The deal will enter into force on Jan. 1, 2020, and cover approximately a fifth of the power produced at the farm, which will upon completion be Denmark’s largest wind farm with a production capacity of just over 600 megawatts, according to the statement.
Kriegers Flak is scheduled to be in full operation by the end of 2021. Between then and 2021, the power will be sourced from other Vattenfall wind farms in Denmark, it said.
Branislav Slavic, vice president of Business Sales Nordic at Vattenfall, noted an increasing demand from businesses to buy 100 percent renewable energy.
“This agreement is a result of that, and we are looking forward to cooperating with Novo Nordisk and Novozymes,” he said.
According to Dorethe Nielsen, head of corporate environmental strategy at Novo Nordisk, an important element in the cooperation with Vattenfall is the ability to supply renewable energy for its international production sites.
“The agreement with Vattenfall moves Novo Nordisk one step closer to reaching our ambition: That all Novo Nordisk production facilities worldwide will run on renewable power by 2020. With the Vattenfall agreement, all of Novo Nordisk European production will run on renewable power,” she said.
Novo Nordisk and Novozymes are independent companies and part of the Novo family, with the Novo Nordisk Foundation as a major shareholder through its holding company Novo Holdings A/S.
Article Source: https://www.energymarketprice.com/energy-news/vattenfall-inks-power-deal-with-novo-nordisk–novozymes