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Policy & Regulatory

German government approves €4.3bn package for lignite plants operators

25 Jun 2020

The German government has endorsed a €4.3bn compensation package for power utilities RWE, Uniper, EnBW, Vattenfall, Steag and LEAG, which operate lignite-fired power plants in the country. Before the contracting parties can sign, the Bundestag (lower house of the Parliament) must pass the coal exit law and approve the compensation package. Aid approval from the European Commission is also required.

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SECI’s 2 GW ISTS solar tender attracts 4.35 GW in bids (India)

25 Jun 2020

The state-owned Solar Energy Corporation of India (SECI) has received bids for a total capacity of 4.35 GW for its 2 GW tender of interstate transmission system (ISTS) connected solar PV projects opened in March 2020. Some of the bidders included NTPC, Tata Power, Enel, ReNew Power, Azure Power, NLC, and SolarPack.

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Lithuania selects an area in the Baltic sea for a 700 MW wind project

25 Jun 2020

The Lithuanian government has selected a 137.5 km2 area in the Baltic Sea Economic Zone to locate a 700 MW offshore wind project. The Lithuanian Energy Agency will prepare the special plan, the strategic environmental impact assessment and the environmental impact assessment for the project, while the power transmission system operator Litgrid will be tasked with the preparatory work for the grid link to the future offshore wind project. The Ministry of Energy of Lithuania is currently working on a support scheme for offshore wind in coordination with the European Commission.

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Spain approves a decree to speed up renewable energy project development

24 Jun 2020

The Spanish government has approved a decree to promote the transition towards a 100% renewable electricity system by 2050, with an intermediate target of 74% renewable electricity by 2030. The text includes measures to combat speculation in the use of network access permits (successive administrative milestones with stricter time limits for permits), to cut red tape (measures to simplify and speed up the processing of renewable projects and the associated electrical infrastructure) and to introduce a new power auction system, based on the price of energy.

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Energy & Climate Markets

France’s GHG emissions declined by 0.9% in 2019 to 441 MtCO2eq

25 Jun 2020

According to preliminary figures from Citepa, France’s greenhouse gas (GHG) emissions declined by 0.9% in 2019, from 445 MtCO2eq in 2018 to 441 MtCO2eq in 2019. This is due to a decline in GHG emissions from the residential and tertiary sector (-2.7%, i.e. -2.2 MtCO2eq, with a 2.3% drop for households and a 3.2% decline for services), in the energy sector (-0.7%, including -1.5% for power generation), and in waste processing (-2.2%). In 2019, CO2 emissions dipped by 1%, from 331.5 Mt to 328.2 Mt (-3.3 Mt), while methane emissions contracted by 0.7% (-0.4 MtCO2eq).

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Hungary signs multiple gas supply contracts with Russia’s Gazprom

25 Jun 2020

Hungary has signed several gas supply agreements with Russia’s Gazprom. Hungary will receive 6 bcm/year of natural gas via an extension to the TurkStream gas pipeline, which should enter operations in October 2021. In the meantime, Gazprom will supply Hungary 2 bcm, with shipments already underway, and another 4.2 bcm between October 2020 and October 2021. In addition, the two parties will start negotiation on a long-term gas supply agreement.

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Infrastructure & Investments

Poland awards contracts for Polskie LNG import terminal extension

25 Jun 2020

Polskie LNG, the operator of Poland’s only LNG import terminal in Świnoujście on the Baltic Sea, has awarded contracts worth PLN1.9bn (€426m) to a consortium of Porr and TGE Gas Engineering for expanding the terminal capacity from 5 bcm/year to 8.3 bcm/year by the end of 2023. In addition, a new 180,000 m3 storage tank will be built on the site.

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Woodside reaffirms timeline for Sangomar oil project (Senegal)

25 Jun 2020

The Australian oil and gas company Woodside has reaffirmed that first oil from the Sangomar Field Development Phase 1 in Senegal remains on track for 2023. Earlier in June 2020, the Senegalese president stated that the country has been forced to postpone its first oil and gas projects by up to 2 years because of the COVID-19 crisis. In addition, the Australian oil and gas company FAR has not paid the most recent cash call due on the project. If FAR cannot pay its debts within six months, it will be forced to forfeit its stake in the Sangomar field without compensation.

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Oman awards contracts for the 230,000 bbl/d Duqm refinery project

25 Jun 2020

Mammoet has won two contracts as part of the 230,000 bbl/d Duqm refinery project in Oman. The refinery, which is located in the Duqm Special Economic Zone, will produce diesel, jet fuel, naphtha and LPG, in compliance with global operational and safety standards. Main contractors include a JV of Técnicas Reunidas and Daewoo Engineering & Construction Company, a joint venture (JV) of Petrofac International and Samsung Engineering and a JV comprising Saipem and CB&I.

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Companies

ADNOC (UAE) sells leasing rights to its gas transport network for US$10bn

24 Jun 2020

Abu Dhabi National Oil Company (ADNOC, United Arab Emirates) has signed a US$10bn gas infrastructure agreement to sell a 49% stake in ADNOC Gas Pipeline Assets to a consortium of investors comprising Global Infrastructure Partners, Brookfield Asset Management, Singapore’s sovereign wealth fund GIC, Ontario Teachers’ Pension Plan Board (Canada), South’s Korea NH Investment & Securities and Snam (Italy).

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