Latest Energy News
Policy & Regulatory
EU ETS MSR will withdraw another 330 million allowances by 2021
14 May 2020According to the European Commission, the total number of CO2 emission allowances in circulation on the European carbon market currently stands at nearly 1,385 million allowances. This level is nearly twice as high as the threshold of 833 million allowances set in the legislation. Consequently, more than 330 million allowances will be withdrawn from auction volumes from September 2020 to August 2021.
Read moreIndonesia seeks options to finance its biodiesel subsidy scheme
14 May 2020The government of Indonesia is reviewing options to finance its biodiesel support programme and to increase subsidies, as the fall in global crude oil price has more than doubled the gap between the costs of fatty acid methyl ester (FAME) and diesel between January and May 2020. FAME costs are now IDR8,494/l (US$57c/l), more than twice diesel costs (IDR3,083/l, i.e. US$21c/l), making biodiesel more expensive to subsidise for the government’s Estate Crop fund, which subsidises the cost difference between the two fuels.
Read moreGermany raises its offshore wind target from 15 GW to 20 GW by 2030
14 May 2020The Federal Ministry of Economy and Energy of Germany, the energy regulator Bundesnetzagentur (Federal Network Agency), the Federal Office for Shipping and Hydrography (BSH), the Ministries of Energy of the coastal states and three power transmission system operators (TSOs) – 50Hertz, Amprion and TenneT – have signed a joint offshore agreement, which raises the offshore wind capacity target in the North Sea and in the Baltic Sea from 15 GW to 20 GW by 2030.
Read moreLithuania will gradually liberalise residential electricity prices
13 May 2020The Lithuanian parliament (Seimas) has adopted a motion amending the Law on Electricity, which will gradually liberalise residential prices on the retail electricity market, with the objective to end regulated tariffs by 2023. The purchase and supply price of electricity, which makes 48% of the final price, will no longer be regulated. The other components of the price – electricity transmission, distribution, and public service obligation – will continue to be set by the government.
Companies
Colombia’s oil company Ecopetrol announces further cuts in investment
14 May 2020Colombia’s national oil and gas company Ecopetrol has reduced its 2020 investment plans for the second time in 2020, to US$2.5-3bn. Planned investment originally reached US$4.5-5.5bn. In March 2020, Ecopetrol reduced its capital expenditures to US$3.3-4.3bn. Consequently, the company cuts its 2020 production target from 750,000 bbl/d to 660,000-710,000 bbl/d.
Read morePTT (Thailand) cuts its 2020 investments by 10-15% and defers projects
13 May 2020Thailand’s oil and gas company PTT has decided to cut its 2020 investments by 10% to 15% and to defer non-priority investments (such as a US$1bn petrochemical project), due to quarterly losses in a context of falling oil prices and weak demand for petrochemicals. The group will reduce jet fuel production to reflect the lower demand from airlines and will rather produce diesel, whose demand has slightly increased. PTT EP, which had a target of 388,000 boe/d of oil and gas sales, expects to miss its target by 7%.
Energy & Climate Markets
US oil demand forecasted to decline by 11% in 2020
14 May 2020According to the US Energy Information Administration (EIA), US oil demand is expected to decrease by 2.2 mb/d (-11%) to 18.3 mb/d in 2020, and to rebound by 1.5 mb/d in 2021. Meanwhile, crude oil production will drop by 540,000 bbl/d (-4.4%) to 11.7 mb/d; it should slump again by 790,00 bbl/d to 10.9 mb/d in 2021.
Read moreUAE will further cut its crude oil production in June 2020
14 May 2020The United Arab Emirates plans to reduce its oil output by an additional 100,000 bbl/d in June 2020, on top of its commitments under the OPEC+ deal. Meanwhile, Iraq will curb its crude production by 700,000 bbl/d, a third less than required under the OPEC+ agreement, as oil majors, such as BP, Exxon Mobil, Eni and Lukoil, who are developing Iraq’s giant southern oilfields, refused to accept deeper reductions. The Iraqi government had to agree with limited cuts (300,000 bbl/d reduction) to avoid paying for the reduced output.
Infrastructure & Investments
Mexico’s renewable grid connection freeze affects 5.3 GW of projects
14 May 2020The recent decision by the Mexican power market operator CENACE to put on hold grid connections for new solar and wind power projects until further notice, citing intermittent power supply that could threaten the power grid stability in a context of sanitary emergency, is having impacts on renewable project developers.
Read moreEquinor, SSE plan FID on Dogger Bank offshore wind project (UK) by end-2020
14 May 2020Equinor and SSE Renewables plan to take the final investment decision (FID) on the Dogger Bank offshore wind project phase 1 (1,200 MW Creyke Beck A) and 2 (1,200 MW Creyke Beck B) in the United Kingdom by the end of 2020. FID on phase 3 (1,200 MW Teesside A) is scheduled in 2021. Total investments in the project reach £9bn (€10.1bn).
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