Weekly HEG Global Energy Digest

LNG:

Europe to Become “Massive” Buyer of U.S LNG, Trump Says

 

Europe will build more terminals to import U.S. liquefied natural gas, the head of the European Commission told U.S. President Donald Trump during a meeting aimed at averting a transatlantic trade war.

“They want very much to do that, and we have plenty of it,” Trump said, referring to the U.S. shale boom, which has unleashed record supplies of the heating and power-plant fuel. “They will be a massive buyer, and they will be able to diversify their energy supply.”

The comments were part of a bigger agreement in which Trump and Jean-Claude Juncker, the European Commission president, said they would suspend new tariffs while negotiating over trade. The two leaders also pledged to expand imports of soybeans and to lower industrial tariffs, excluding autos.

 

LNG imports to Europe are poised to rise almost 20 percent by 2040 from 2016 levels, according to International Energy Agency. While Russia has long been the region’s top supplier, it’s now facing significant challenges from both the U.S. and Qatar, rivals with vast natural gas reserves.

 

Trump and Juncker spoke to the media after meeting at the White House. The comments quickly sparked investor reaction for both Cheniere Energy Inc., America’s largest exporter of LNG, and Tellurian Inc., which is working to get its export project in Louisiana approved.

 

Cheniere climbed as much as 3 percent in late New York trading, while Tellurian gained as much as 2.9 percent. Cheniere and Tellurian weren’t immediately available for comment.

 

Liquefied Natural Gas Ltd., which has a fully permitted project in Louisiana, currently has a number of active discussions ongoing with potential European customers, according to spokesman Micah Hirschfield.

Article Source: https://www.energymarketprice.com/energy-news/europe-to-become-%E2%80%98massive%E2%80%99-buyer-of-u-s-lng–trump-says

 

Natural Gas:

Gazprom pipeline to China nearly completed

Russian natural gas company Gazprom said Wednesday that just over 90 percent of its Power of Siberia gas pipeline to China is completed.

“By now, a total of 1,214 miles, or 90.5 per cent of the linear section running from Chayandinskoye to the Chinese border in the Amur Region, is finished,” the company’s statement read. “The bulk of construction and installation work for this section will be completed this year.”

Gazprom said construction on the facilities for gas production from fields feeding the pipeline is about halfway completed. Pipeline testing and installation of a power supply is scheduled for 2019.

Gazprom has a 30-year sales agreement with China National Petroleum Corp. that calls for 1.3 trillion cubic feet of natural gas per year through the pipeline. The Kremlin described the 2,500-mile Power of Siberia as a way to tie the Russian energy sector to two poles of the economic world.

“By exploring gas reserves and creating gas transmission and processing capacities, the company works toward providing domestic consumers with reliable gas supplies in the long term, as well as strengthening Gazprom’s foothold in the Asia-Pacific region,” the company’s statement read.

Russia is one of the main energy suppliers to the European market, but has started to focus on the emerging and expanding economies in the Asia-Pacific. Last week, Russian energy company Novatek, the largest private gas company in the country, shipped its first batch of liquefied natural gas to China using a so-called Northern Sea Route.

The northern passageway is a shipping lane in Russia’s economic zone that runs along the Arctic coast to the Bering Strait. The shipment took 19 days, compared to 35 days using a traditional shipping lane.

Article Source: https://www.energymarketprice.com/energy-news/gazprom-pipeline-to-china-nearly-completed

 

Wind:

Europe adds 4.5 GW of Wind Energy in the first half of 2018

 

Europe added 4.5 gigawatts (GW) of wind energy capacity in the first half of 2018, according to WindEurope figures released Thursday.

“The figure is down on the same period last year (6.1 GW) though is in line with expectations,” WindEurope said in a statement.

 

According to the data, Germany, France and Denmark were the drivers for 3.3 GW of onshore wind, at 1.6 GW, 605 megawatts (MW) and 202 MW, respectively.

 

In addition, 1.1 GW of offshore wind was generated mainly from the U.K. with 911 MW followed by Belgium with 175 MW and Denmark with 28 MW.

 

Germany, which plans to install new offshore wind in the second half of the year, has seen the rate of new installations slow down.

 

Other countries, like Poland, Ukraine and Norway, also need to beef up and speed up their plans for offshore wind, the association said.

 

“For the whole of 2018, WindEurope expects to see 3.3 GW of new offshore wind and 10.2 GW of onshore wind. This will mean 13.5 GW of new wind capacity in total for the year,” WindEurope stated.

 

WindEurope Chief Policy Officer Pierre Tardieu said the sector is on track for a solid year in new wind farm installations but cautioned that growth is driven by just a handful of markets.

 

The figures also mask some worrying trends, most notably in France.

 

“France has installed a lot of new onshore wind this year but have not issued a single new permit for onshore wind in the last eight months because of an administrative issue – which has also resulted in their latest auction being under-subscribed. So there will be a drop-off in their new build now, creating uncertainty in the supply chain,” he explained.

Article Source: https://www.energymarketprice.com/energy-news/europe-adds-4-5-gw-of-wind-energy-in-first-half-of-2018

 

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