European gas demand is set to increase by 6% year on year in 2016, reaching some 447.1 billion cubic meters.

This rise is partly due to increased demand for gas in power generation following signs of revival in industrial activity, as well as greater use of gas in transport, the European gas wholesale, retail and distribution sectors association Eurogas said in a recent report.

Electricity demand in Italy accounted for 26.3 GWh in September, down by 0.7% year on year, Italian power grid operator Terna said. Some 89% of the electricity consumed was generated domestically, while the remaining 11% was imported from foreign markets.

National production stood at 23.6 GWh in September, increasing by 1.4% year on year.

The International Energy Agency (IEA) has revised up its renewable capacity growth forecast, with global renewable electricity capacity now expected to increase by 42%, or 825 GW by 2021. That's 13% than what previously forecast, reaching a 28% share of the electricity generation mix by the end of the five-year period.

Aluminium of Greece has signed a long-term electricity supply agreement with Public Power Corporation (PPC), ending a long-running dispute between one of the country's biggest energy consumers and its dominant electricity producer.

Natural gas demand in Italy posted a strong year on year increase in September, rising by 13% to 4.6 million cubic meters. That was mostly due to a sharp rise in demand for power generation, which was up by 21.1% year on year at 2.2 million cubic meters, Italian gas and power exchange operator, Gestore Mercati Energetici said.

The president and CEO of Qatar Petroleum, and chairman of Qatargas, Saad Sherida Al-Kaabi concluded this week a series of meetings in Japan with senior executives of major Japanese energy companies. The visit was "designed to follow up on all issues that relate to the existing cooperation and business relationships and ways to enhance them" the company said.

A report carried out by a UK-based consultancy and published by electricity generator UK Power Reserve has found that the UK's electricity capacity market auctions (CMAs) might have been distorted in the past two years “by players able to bid at a lower level than others by using investment with special tax relief.”

Gas and electricity supplies in the UK are forecast to be sufficient to meet the expected demand this winter, on the back of improved electricity de-rated margins and diversification of gas supply sources, network operator National Grid said.

LNG bunkering and use of integrated small-scale power stations spurs a rise in gas demand in Southeast Asia that could gradually shift the energy mix towards the cleaner-burning fuel. Xunpeng Shi, researcher at Singapore University addresses “the paradox of ASEAN’s green energy aspirations in the absence of a blueprint for a unified regional energy market.”

A disconnect of wholesale electricity and gas prices has occurred in most European markets. Gas prices fell in line with low oil prices over the past year while average electricity prices recovered for the first time since 2008 in Spain and Belgium, and to a minor degree in France and the UK.

Turkey and Russia have sealed the strategic Turkish Stream gas pipeline agreement late on Monday which, according to President Putin, includes a “mechanism for providing a discount on gas [for Turkey].” Imported gas is having a hard time in Turkey to compete with domestic hard coal and lignite as a fuel for power generation. Yet, cheaper gas imports and implementation of a cut in Turkey’s industrial gas tariffs later this month could turn things around and help prop up spark spreads.

Tuesday, 11 October 2016 11:03 / Markets

Supply glut opens new LNG-to-power markets

Though Asian LNG prices for November delivery rebounded slightly over the past ten days, the oversupply persists and helps open new markets: Indonesia and Jamaica have chartered floating storage units (FSUs) to underpin power plant projects. Puerto Rico, Ghana, Bahrain and Bangladesh are tipped as the ‘next round of new importers.’

Unexpected shut-down of two of Nigeria’s power plants on Sunday has increased the number of idle plants to nine and made the nation’s electricity supply nosedive to just over 3,400 MW – a significant drop from last week’s average of 3,920 MW. The latest shut-downs, caused by gas shortages, affected the 625 MW Olorunsogo-II unit and the Trans-Amadi plant (25 MW).

“Unprecedented efficiencies” created by new technologies and more stringent energy policies will make per capita energy demand peak before 2030, according to projections by the World Energy Council (WEC). The “phenomenal rise of solar and wind energy” is seen to continue, while coal and oil will gradually fade out of the energy mix.

During the first six months of 2016, residential US electricity customers paid on average 12.4 cents per kilowatthour (kWh), or around 0.7% less than in the same period last year. If this trend continues for the rest of the year, EIA analysis shows that prices would decline for the first time since 2002.

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