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Shell plans to write down the value of oil and gas assets by US$3.5bn to US$4.5bn, due in part to impairments on its Appomattox field in the US Gulf of Mexico, the closure of refineries and LNG contracts. The group had already written down US$16.8bn in the second quarter of 2020 and a further US$1bn of LNG assets in October 2020 (with a focus on its Prelude LNG project in Australia).

Energy & Climate Markets

In 2019, renewables covered 19.7 % of energy consumed in the EU

According to Eurostat, the share of renewables in gross final energy consumption at the European Union level reached 19.7% in 2019, compared with 9.6% in 2014 and only 0.3% short of the 2020 target of 20%. Sweden had by far the highest share among the EU Member States in 2019 (56.4%), followed by Finland (43.1%), Latvia (41.0%), Denmark (37.2%), and Austria (33.6%). The lowest proportions of renewables were recorded in Luxembourg (7.0%), Malta (8.5%), the Netherlands (8.8%), and Belgium (9.9%).

Reliance and BP get first gas from the R Cluster in KG D6 block (India)

Reliance Industries Limited (RIL) and BP have started to produce natural gas from the R Cluster, ultra-deep-water field in block KG D6 off the coast of India, which is expected to reach a plateau of 12.9 mcm/d (4.7 bcm/year) in 2021. RIL is the operator of KG D6 with a 66.67% stake and BP holds the remaining 33.33%. Partners are developing three deep-water gas projects in block KG D6, namely R Cluster, Satellites Cluster and MJ. The Satellites Cluster is expected to come onstream in 2021 followed byt he MJ project in 2022.

Infrastructure & Investments

The Bradwell B nuclear project gets power generating licence (UK)

The UK’s Gas and Electricity Markets regulator Ofgem has granted an electricity generating licence to the 2.2 GW Bradwell B nuclear project in Essex (United Kingdom). The Bradwell B project is developed by General Nuclear Services (GNS), a joint venture between French energy group EDF (33.5%) and Chinese state-owned corporation China General Nuclear Power Group (CGN) (66.5%). It will consist of up to two Chinese-designed Hualong One (HPR1000) reactors, rated 1.1 GW each.

RWE’s Kaskasi offshore wind project gets planning permission (Germany)

The German Federal Maritime and Hydrographic Agency (BSH) has granted planning permission for RWE’s 342 MW Kaskasi offshore wind project, located 56 km north of the German island of Heligoland. The project will include 38 Siemens Gamesa Renewable Energy wind turbines rated nearly 9 MW each. RWE took the final investment decision for the project in April 2020 and has already signed contracts worth more than €500m for the project. Offshore construction is expected to start in the third quarter of 2021, and the project is scheduled for commissioning in the summer of 2022.

GE selected to supply wind turbines for Dogger Bank C offshore project (UK)

SSE Renewables and Equinor have selected GE Renewables Energy as preferred turbine supplier for their Dogger Bank C offshore wind project, i.e. the 1.2 GW third phase of the 3.6 GW Dogger Bank offshore wind project, located in the British North Sea (United Kingdom). The contract will be finalised in the first quarter of 2021. The agreement will be subject to Dogger Bank C reaching financial close in late 2021. Installation of the turbines for Dogger Bank C is set to begin in 2025 ahead of completion of the overall project in 2026.