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Producción y mercados energéticos 28/06/19

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Latest Energy News 28 June 2019
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The United Kingdom adopts net zero emissions law

The United Kingdom (UK) has adopted a law requiring to bring all greenhouse gas (GHG) emissions to net zero by 2050. This means that the UK will continue to cut its GHG emissions and that residual emissions will have to be balanced by schemes to offset an equivalent amount of GHG, such as planting trees or using technology like carbon capture and storage (CCS).

The new law amends the Climate Change Act 2008, which had set a legally binding GHG emissions reduction target of at least 80% by 2050 (1990 as baseline). The fifth carbon budget (2016) sets a 57% GHG emissions reduction target by 2030 (compared to 1990 levels).

In September 2018, the Scottish government unveiled an ambitious climate change plan targeting a 66% cut in GHG emissions by 2032, compared to 1990 (49% achieved in 2016). In May 2019, it set a legally binding target of net-zero GHG emissions by 2045 at the latest. 

Companies

ADNOC (UAE) completes the US$4bn sale of oil pipeline company to KKR and Blackrock

Abu Dhabi National Oil Company (ADNOC) (United Arab Emirates) has completed the sale of a 40% stake in a newly formed entity, ADNOC Oil Pipelines, to BlackRock and KKR.

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Policy & Regulatory

Indonesian government plans to amend coal mining rules

Indonesian coal producers are worried by upcoming amendments to coal mining rules that would add pressure to their operations, in a context of increasing competition from other energy sources and low prices.

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Saudi Arabia prequalifies 60 companies for 1.5 GW solar PV round

Saudi Arabia’s Renewable Energy Project Development Office (REPDO) has pre-qualified 60 bidders for the second round of the Saudi Arabia National Renewable Energy Program (NREP). Masdar, Acciona, Akuo Energy, China Machinery Engineering Corp., ACWA Power, EDF, First Solar, GCL, KEPCO, Marubeni, Sumitomo, TBEA and Total were among the shortlisted companies. …

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Uttar Pradesh (India) plans to commission 1.5 GW of solar projects by 2021

The Indian state of Uttar Pradesh plans to commission 1,500 MW of solar power by next year (fiscal year ending in March 2021), as part of a broader target to reach 10,700 MW of renewable capacity by 2022. So far, 150 MW of solar power plants are operational and tenders for 1,500 MW have been launched (these solar projects should be commissioned by 2021).

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Energy & Climate Markets

Renewables covered 44% of Germany’s power demand in the 1st half of 2019

According to the German energy industry association BDEW and the Centre for Solar Energy and Hydrogen Research Baden-Württemberg (ZSW), the share of renewable energies in the German electricity consumption reached 44% in the first half of 2019, up from 39% in the first half of 2018.

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Philadelphia Energy Solutions will close its 335,000 bbl/d refinery (US)

Philadelphia Energy Solutions has decided to permanently shut down its 335,000 bbl/d Philadelphia refinery in Pennsylvania (United States), after a massive fire blasted the refining complex and caused substantial damages earlier in June 2019.

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Infrastructure & Investments

Mexican CFE seeks arbitration over IEnova’s 27 bcm/year gas pipeline

Mexico’s Federal Electricity Commission (Comision Federal de Electricidad, CFE) has requested arbitration over the Sur de Texas-Tuxpan gas pipeline built by TransCanada (now renamed TC Energy) and IEnova in Mexico.

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Kenyan tribunal cancels environmental license of 981 MW Lamu coal-fired project

The National Environment Tribunal (NET) of Kenya has cancelled the Environmental Impact Assessment (EIA) license of the 981 MW Lamu coal-fired power project. The NET has considered that developers omitted engineering plans and failed to consult residents, and has consequently determined that the process for a new EIA should be carried out. …

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