Latest Energy News
Policy & Regulatory
Mexico plans to merge energy regulator CRE with two other parastatals
15 Jun 2020
The Mexican government is considering merging the energy regulator CRE, the antitrust agency Federal Economic Competition Commission (COFECE), and the telecoms regulator IFT. The new parastatal would be named the National Institute of Markets and Competition for Wellbeing and would allow a MXN500m (US$22m) reduction in public spending.
The CRE is in charge of regulating the gas and electricity sectors since 1995. The hydrocarbon sector is regulated by CNH, the National Hydrocarbons Commission (Comisión Nacional de Hidrocarburos).
Vietnam will extend FiTs for wind projects until December 2023
15 Jun 2020
The Prime Minister of Vietnam has approved the extension of the feed-in tariffs (FiTs) for wind power projects. The FiTs applied to wind projects that are scheduled to enter commercial operations before November 2021 will be extended until the end of December 2023.
Germany adopts the final version of its national energy and climate plan
12 Jun 2020
The German government has adopted the final version of its national energy and climate plan (NECP). According to the plan, Germany intends to reduce greenhouse gas (GHG) emissions by at least 55% by 2030 compared to 1990, to cut primary energy consumption by 30% by 2030 compared to 2008 and to increase the share of renewables in gross final energy consumption to 30% by 2030.
Papua New Guinea plans to launch a production sharing regime from 2025
12 Jun 2020
Papua New Guinea has adopted a new regulation with the objective to boost benefits to the country from oil, gas and mine developments. Existing exploration and development contracts would not be broken but the government will seek to get a larger share of revenues from energy and mineral explorations. The government plans to implement a production sharing regime to take effect from 2025.
Companies
South Africa approves the creation of a national oil company
15 Jun 2020
The government of South Africa has approved the merger of three oil and gas subsidiaries of the state-owned Central Energy Fund (CEF) into a National Oil Company. The three companies are namely the Strategic Fuel Fund (SFF), which manages the country’s strategic crude oil stockpile, the gas development company iGas and PetroSA, which operates the Mosel Bay gas-to-liquid (GTL) refinery and explores for petroleum. PetroSA operates the FA-EM, South Coast and F-O gas fields that supply the 45,000 bbl/d Mossel Bay GTL plant.
Forecasts
Indonesia anticipates a 5% decline in coal production in 2020
15 Jun 2020
According to the Indonesian government, the country is expected to produce 550 Mt of coal (down from 582 Mt in 2019), while exports should reach 435 Mt, which is 40 Mt higher than the previous target of 395 Mt but will remain lower than 2019 exports (459 Mt). As domestic coal demand is forecasted to fall from 133 Mt in 2019 to 100 Mt in 2020, Indonesia intends to increase its coal exports to Vietnam, Pakistan and Bangladesh.
Infrastructure & Investments
New South Wales (Australia) supports Santos’s Narrabri gas project
15 Jun 2020
The Independent Planning Commission (IPC) of New South Wales (Australia) has recommanded Santos’s Narrabri coal seam gas project for approval. The AUD3.6bn (US$2.45bn) Narrabri Gas Project comprises the development of a coal seam gas field over two decade and supporting infrastructure. According to the NSW’s IPC, the project’s production could cover half of the state’s gas demand for about 20 years and help meet the forecast gas shortfall from 2024, while supporting the transition away from coal.
Turkey aims to comission the 540 MW Yusufeli hydropower plant in 2021
15 Jun 2020
Turkey has held an opening ceremony for the 540 MW Yusufeli hydropower plant, built on the Çoruh River. The TRY1.5bn (€220m) project is expected to be completed in April 2021 and to generate around 1.9 TWh/year.
Andhra Pradesh (India) approves plan to add 10 GW of solar capacity
15 Jun 2020
The state government of Andhra Pradesh (India) has approved a proposal to create 10 GW of solar power plants. To do so, Andhra Pradesh will create an affiliate of its AP Power Generation Corporation, named Andhra Pradesh Green Energy Corporation. The objective is to supply farmers with quality power and ensure that they get nine hours of free electricity per day. The plan was presented in February 2020.
The Cyprus LNG import terminal project securs a €150m credit from the EIB
15 Jun 2020
The Natural Gas Public Company of Cyprus DEFA, through its affiliate Natural Gas Infrastructure Company (ETYFA), has secured a 20-year, €150m loan from the European Investment Bank (EIB) for its LNG import terminal project worth €289m. The company has secured already a €101m sponsorship from the European Commission through the Connecting Europe Facility (CEF) and €43m from the Electricity Authority of Cyprus’s participation in ETYFA.
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