Daily Energy News
Policy & Regulatory
India launches tender for 21 oil and gas blocks
9 Aug 2021
The Indian Ministry of Petroleum and Natural Gas has launched the Open Acreage Licensing Programme (OALP) Bid Round VI, offering 21 blocks, with an area of approximately 35,300 km2, to investors. The blocks are located across 11 sedimentary basins and comprises 15 onshore blocks, 4 shallow water blocks and two ultra deep water blocks. The country expects to generate US$300-400m of immediate exploration work commitment. Under the previous OALP Bid Round I, II, III, IV, and V, India awarded 105 blocks, including 51 to Vedanta, 25 to Oil India and 24 to ONGC.
Colombia unveils rules for its third renewables auction
9 Aug 2021
Colombia has released rules for its third auction for renewables projects. Under the double auction system, suppliers and buyers will present offers for 15-year power purchase agreements, which will come into force from 1 January 2023, and offers will be matched up. The total volume awarded will be determined through the auction process. Project developers can register until 28 August 2021 to participate in the auction and bids are open until 26 October 2021, with contracts signed by 20 December 2021. The country’s first and second auction awarded 1.7 GW of wind capacity.
New York (US) launches new solicitation for existing renewable projects
9 Aug 2021
The State of New York (United States) has launched the second solicitation under the large-scale renewable energy procurement program known as Competitive Tier 2. The New York State Energy Research and Development Authority (NYSERDA) is seeking proposals to procure Tier 2 eligible RECs from existing privately-owned hydropower and onshore wind plants in New York State that were commissioned before 1 January 2015. The deadline to submit bids is 9 September 2021.
Russia will auction 17 oil and gas blocks in Western Siberia by end-2021
6 Aug 2021
Russia aims to award 17 state-held oil and gas blocks in Western Siberia through auctions in September and October 2021. The planned auctions would include 20 five-year exploration and development licences for seven blocks in the Yamal-Nenets region and similar licences for 10 blocks in Khanty-Mansiysk region.
Bulgaria may phase-out most of it coal-fired capacity by 2025
6 Aug 2021
Bulgaria could phase out most of its coal-fired power capacity by 2025, as the country plans to convert BEH’s 1,450 MW Maritsa East 2 coal-fired power plant to natural gas. A new 1 GW gas-fired power plant worth €850m could be built on this site.
Companies
India’s Tata Power targets 25 GW of renewables capacity by 2030
9 Aug 2021
The Indian power electric utility Tata Power targets 15 GW of renewables capacity by 2025 and 25 GW by 2030. The company has a domestic capacity of 12.8 GW (May 2021), of which 4.1 GW at the Mundra first UMPP (Ultra Mega Power Project), a supercritical coal-fired power plant, as well as around 3.8 GW of renewables (including hydro). Tata also has 480 MW abroad.
HollyFrontier and Sinclair merge their downstream businesses in the US
9 Aug 2021
HollyFrontier Corporation and Holly Energy Partners (HEP) have entered into a definitive agreement with The Sinclair Companies to acquire Sinclair Oil Corporation and Sinclair Transportation Company in the United States for a combined value of US$1.8bn. HollyFrontier will form a new entity named HF Sinclair Corporation, which will feature seven refineries in the Rocky Mountains, Mid-Continent, Southwest and Pacific Northwest regions and will have a combined crude oil processing capacity of 678,000 bbl/d.
Energy Prices & Taxes
Ofgem (UK) will raise energy price caps by 12-13% in October 2021
9 Aug 2021
The UK independent energy regulator Ofgem will increase the energy price cap for a dual fuel bill over the 2021-2022 winter period (October 2021-March 2022) due to surging global fossil fuel prices (+50% over the last 6 months with gas prices hitting record highs). Those on default tariffs paying by direct debit will see an increase of £139 (€164) from £1,138 (€1,343) to £1,277 (€1,507, +12%). Prepayment customers will see an increase of £153 (€181) from £1,156 (€1,364) to £1,309 (€1,544, +13%).
Infrastructure & Investments
Vattenfall starts building its 240 MW South Kyle wind project (UK)
9 Aug 2021
Vattenfall has started to lay foundations for its 240 MW South Kyle onshore wind plant in Scotland (United Kingdom). In April 2020, the Swedish state-owned power company took the final investment decision (FID) to build the project and reached an agreement with the infrastructure fund Greencoat UK Wind, which will acquire the project for £320m (€380m) once the project enters commercial operations. In May 2020, Vattenfall selected Nordex Group to supply 50 N133/4.8 turbines for the project and to maintain the machines for a period of 10 years. Commissioning is scheduled in early 2023.
New Zealand’s only oil refinery (7 Mt/year) should close in 2022
9 Aug 2021
The shareholders of Refining NZ have approved the conversion of the 135,000 bbl/d (6.8 Mt/year) Marsden Point refinery into a fuel import terminal from mid-2022, using 80% of the existing tank capacity. The decision is conditional on entry into final agreements with customers, lender consents, and a final investment decision by the Refining NZ Board (expected in the third quarter of 2021), based on front end engineering and design (FEED) work by management.
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