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The Swiss Parliament has approved a November 2017 agreement for linking the Swiss and EU emissions trading schemes (ETS). The EU and Swiss ETS both cover the 2013-2020 period (with negotiations under way to extend beyond 2021) and have similar structures. The Swiss ETS already meets two of the three fundamental requirements to link to the EU ETS, i.e. covering large and energy-intensive installations since 2013 (over 50 companies emitting around 5 MtCO2) and introducing an absolute emissions cap. The country will revise its CO2 Act and CO2 Ordinance, in order to include CO2 emissions from civil aviation and thermal power plants in the Swiss ETS, as it is already the case in the EU ETS.

The linking agreement must now be ratified by the President of the Federal Council of Switzerland and the EU before it can enter into force on 1 January 2020. Liking the ETS systems is expected to reduce Swiss emissions at a lower cost and improve trading and pricing. It will also enable Swiss companies to operate in the same emissions market as their business partners in the European Union and to have a greater flexibility in meeting their CO2 targets.

German energy group Uniper has agreed to sell its 48.2% stake in OLT Offshore LNG Toscana (Italy) to Australian fund First State Investments for about €400m. The transaction, which is still subject to the approval of the competent authorities and other customary conditions, will result in net proceeds of around €340m.

According to the US Energy Information Administration, US gas consumption rose by 10% to 82.1 bcf/d (2.3 bcm/d or 848 bcm/year), pulled by a dynamic demand from the power sector and by weather-related factors. The electricity sector accounted for 35% of gas demand in 2018, followed by industry (28%), households (17%), businesses (12%) and others (9%).

The shareholders of the Almaraz nuclear power plant in Spain – namely Iberdrola, Endesa and Naturgy – have agreed to apply for an operation license renewal before the 31 March 2019 deadline. Almaraz is the oldest nuclear plant in Spain, consisting of the two reactors, rated 1,011 MW and 1,006 MW and commissioned in 1981 and 1983. Their operating licenses will expire in June 2020.

Chinese oil and gas production has released its 2018 results, posting a 1% growth in hydrocarbon production to 475 mboe. The 1.3% decline in crude oil and liquids production (to 383 mbl) was more than offset by a 12% increase in gas production to 530 bcf (15 bcm). 65% of the Group production was made in China and 35% overseas.

The Abu Dhabi National Oil Company (ADNOC) has awarded the exploration rights for the Onshore Block 1 in Abu Dhabi (United Arab Emirates) to a 50-50 consortium of two Indian oil companies, namely Bharat Petroleum Corporation Limited (BPCL) and Indian Oil Corporation Limited (IOL).

The US Department of Energy (DOE) has finalised up to US$3.7bn in loan guarantees to continue the construction of two AP1000 units, Vogtle-3 and Vogtle-4, rated 1,117 MW each, at the delayed Vogtle nuclear power project in Georgia (United States). The loan guarantees will be divided between the shareholders of the project: project developer Georgia Power (part of the Southern Company group,…

The Ministry of Energy of Saudi Arabia and the governor of Mecca Province have signed a Memorandum of Understanding (MoU) for the development of a 2,600 MW solar complex in the Mecca region. The 2.6 GW Faisaliah solar power project would be built in phases, without any completion date specified.

Spanish power transmission system operator (TSO) REE (Red Eléctrica de España) has announced plans to invest over €3.2bn over the 2018-2022 period to support the energy transition through the development of the domestic high-voltage power transmission grid, in line with national renewable energy targets of 32% by 2030.