Gas prices expose Europe’s energy vulnerability

2021 ◽  
Keyword(s):  
Natural Gas ◽  
Central Banks ◽  
Liquefied Natural Gas ◽  
Electricity Price ◽  
Energy Prices ◽  
Content Type ◽  
Indigenous Production ◽  
Europe Today ◽  
The Cost

Significance The cost of gas-fired generation sets the electricity price in much of Europe today. Falling indigenous production has left Europe reliant on gas imports and exposed it to global liquefied natural gas (LNG) prices set by fast-recovering China. This has left retail-only electricity suppliers vulnerable and increases the risk that falling disposable incomes will undermine post-pandemic recovery. Impacts EU carbon allowance prices will stay strong. Higher energy prices will stoke inflation amid a fragile recovery, posing a dilemma for central banks. Rising gas prices have had ancillary but potentially alarming impacts as some fertiliser and CO2 producers have shut in production.

Papua New Guinea politics will enter brittle stability

2018 ◽  
Keyword(s):  
Economic Growth ◽  
Natural Gas ◽  
Papua New Guinea ◽  
Prime Minister ◽  
New Guinea ◽  
Liquefied Natural Gas ◽  
Infrastructure Investment ◽  
Content Type ◽  
The Government ◽  
The Cost

Subject The outlook for politics and the economy in Papua New Guinea. Significance Prime Minister Peter O’Neill has consolidated his government since winning elections in mid-2017. However, economic growth in Papua New Guinea (PNG) has slowed, forcing the government to rein in its spending plans. A 19-billion-dollar liquefied natural gas (LNG) project has not generated the expected fiscal windfall, with most of the revenue still needed to repay the cost of the earlier infrastructure investment. Impacts Links with China are likely to strengthen after President Xi Jinping's visit next month. O'Neill will consolidate his position through the courts and police. Bougainville cannot afford independence unless it can negotiate with mining firms to reopen the Panguna copper mine.

Cost saving allocation of horizontal cooperation in restructured natural gas distribution network

Kybernetes ◽  
2018 ◽  
Vol 47 (6) ◽  
pp. 1217-1241 ◽  
Author(s):  
Jafar Razmi ◽  
Anis Hassani ◽  
Ashkan Hafezalkotob
Keyword(s):  
Natural Gas ◽  
Cooperative Game ◽  
Distribution Network ◽  
Cost Savings ◽  
Gas Distribution ◽  
Content Type ◽  
Horizontal Cooperation ◽  
Gas Market ◽  
Yazd City ◽  
The Cost

Purpose Over the past two decades, in developed countries a trend towards the liberalization and restructuring of the gas market has been observed. Today, restructuring is an ongoing process. In this study, a restructured natural gas market has been considered in which several regional distribution companies have ownership of the network and are competing against each other to gain more benefits. The main purpose of this study is to achieve efficiency and economic rationality in such a market through horizontal cooperation. Design/methodology/approach A restructured natural gas distribution network is modeled as a cooperative game to estimate the potential cost savings for various collaboration scenarios. In addition, the cost savings’ allocation among collaborating companies is evaluated using the cooperative game theory. Findings The results reveal validity and efficiency of the solution of the proposed model and capabilities of the cooperative game theory for reduction in gas distribution costs and improvement in the service level. Research limitations/implications This study is limited to natural gas in one region of Yazd City in Iran. Moreover, one segment of the natural gas network (i.e. distribution network) is modeled. Moreover, long-term cooperation between companies relies on fair distribution of cooperation benefits to the participants. Practical implications For the purpose of comparison and to get an insight into properties of the cost savings game, the real case study of one region of Yazd city in Iran is implemented. Originality/value This study contributes to the competitive models in the restructured gas market, particularly, in gas distribution network. The main contribution is to provide potential benefits for the participants via the horizontal cooperation.

Algeria-Morocco pipeline closure could add to tensions

2021 ◽  
Keyword(s):  
Natural Gas ◽  
Liquefied Natural Gas ◽  
East Mediterranean ◽  
Content Type

Significance The pipeline transit agreement is set to expire at the end of October. It comes as tensions between Morocco and Algeria have escalated, with the latter cutting diplomatic ties with Rabat and closing its airspace to Moroccan airplanes. Impacts Algeria will argue that trans-Morocco gas can be replaced with extra volumes via the Medgaz line and with liquefied natural gas. The supply implications mainly affect Spain and Morocco, and will have little relevance for other European gas projects. In the East Mediterranean, the costs of a pipeline to Europe remain prohibitively high.

New Tanzanian government’s focus may shift

2021 ◽  
Keyword(s):  
Civil Society ◽  
Natural Gas ◽  
Rare Earths ◽  
Liquefied Natural Gas ◽  
Content Type ◽  
Development Agenda

Significance Magufuli and the ruling Chama Cha Mapinduzi (CCM) have entered 2021 on a high, having swept the October 31 elections and essentially removed all vestiges of opposition to their power. They now need to deliver on their ambitious development agenda. Impacts Crackdowns against the opposition, civil society and other critics will intensify. Persistent bottlenecks in government suggest progress towards a flagship USD30bn liquefied natural gas project may remain slow. Reports that Tanzania is close to finalising a deal for its first ever rare earths mine could give Magufuli’s agenda an early boost.

Will Australian liquefied natural gas demand soar under the 21st Annual Conference of the Parties (COP21) targets?

2017 ◽  
Vol 57 (2) ◽  
pp. 556
Author(s):  
Francois Tibi ◽  
Nicolas Reid ◽  
Whitney Skinner ◽  
Rob Grosvenor ◽  
Anthony Smith
Keyword(s):  
Natural Gas ◽  
Ghg Emissions ◽  
Liquefied Natural Gas ◽  
Annual Conference ◽  
Cost Curve ◽  
Future Success ◽  
Bridge Fuel ◽  
Primary Focus ◽  
Natural Gas Demand ◽  
The Cost

The ambitious 21st Annual Conference of the Parties (COP21) targets of over 200 countries to limit global warming require a significant reduction in green house gas (GHG) emissions by signatories; these reductions will require major shifts in the way that countries think about their supply mix. Although renewables are often the primary focus of emissions reductions, the role of natural gas in GHG emissions warrants consideration. Gas is ‘triple A’: affordable, abundant and available. It is also lower in GHG than other fossil fuel alternatives. The future success and price stability of liquefied natural gas (LNG) projects is intrinsically linked to the success of natural gas as a bridge fuel to a lower carbon future; although there was initial optimism about the potential of natural gas as a bridge fuel under COP21, further analysis shows that forecast demand for natural gas and LNG in new policy scenarios is likely lower than original forecasts, placing Australian producers’ existing and future projects in a challenging position; moving down the cost-curve where possible is the best way to ensure resilient demand even in a slower growth future environment.

Impact of fossil fuel prices on electricity prices in Mexico

2019 ◽  
Vol 46 (2) ◽  
pp. 356-371 ◽  
Author(s):  
Bruno Bernal ◽  
Juan Carlos Molero ◽  
Fernando Perez De Gracia
Keyword(s):  
Natural Gas ◽  
Crude Oil ◽  
Fossil Fuel ◽  
Positive Impact ◽  
Electricity Price ◽  
Electricity Prices ◽  
Content Type ◽  
Fuel Prices ◽  
Electricity Rates ◽  
Domestic Electricity

Purpose The purpose of this paper is to examine the impact of fossil fuel prices – crude oil, natural gas and coal – on different electricity prices in Mexico. The use of alternative variables for electricity price helps to increase the robustness of the analysis in comparison to previous empirical studies. Design/methodology/approach The authors use an unrestricted vector autoregressive model and the sample covers the period January 2006 to January 2016. Findings Empirical findings suggest that crude oil, natural gas and coal prices have a significant positive impact on electricity prices – domestic electricity rates – in Mexico in the short run. Furthermore, crude oil and natural gas prices have also a significant positive impact on electricity prices – commercial and industrial electricity rates. Originality/value Two are the main contributions. First, this paper explores the nexus among crude oil, natural gas, coal and electricity prices in Mexico, while previous studies focus on the US, UK and some European economies. Second, instead of using one electricity price as a reference of national or domestic electricity sector, the analysis considers alternative Mexican electricity prices.

Russia will increase covert Baltic interference

2015 ◽  
Keyword(s):  
Natural Gas ◽  
Liquefied Natural Gas ◽  
Lightning Strike ◽  
Baltic States ◽  
Content Type ◽  
The Past ◽  
The Baltic ◽  
Military Exercise

Significance In line with such concerns, Estonia held a large military exercise, Hedgehog, on May 4-15, involving 13,000 troops. On May 6, Lithuania launched Lightning Strike, a military exercise involving 3,000 troops in a simulated defence of the country's new liquefied natural gas (LNG) terminal at Klaipeda. In December, Latvia said Russian submarines had approached its maritime borders more than 50 times in the past year. However, Russia's more overt activities also pose a major risk to the Baltics. Impacts Russian intelligence will continue to target not just Baltic secrets but, through them, NATO and EU ones. Russian operations will aim to create division by playing on discontent within sizeable ethnic Russian minorities who feel marginalised. NATO will increase the rate and size of Baltic drills to reassure the Baltic states.

Mozambique juggles new interests and old problems

2015 ◽  
Keyword(s):  
Natural Gas ◽  
Liquefied Natural Gas ◽  
Traditional Agriculture ◽  
Short Term ◽  
Content Type ◽  
Electoral Support ◽  
Debt Stress ◽  
Fiscal Risks

Subject Mozambique's new government. Significance President Filipe Nyusi on January 17 unveiled his first cabinet. The line-up marks a break with the administration of former President Armando Guebuza, but balances competing factions within the ruling FRELIMO party. The new government's main focus will be to turn offshore natural gas discoveries into liquefied natural gas (LNG) exports. Declines in FRELIMO's electoral support indicate pressure to demonstrate more inclusive benefits than has been the case with previous mega-projects. Impacts Lower prices for traditional (agriculture) and megaproject exports (coal, aluminium) will continue; last year exports fell by 8.4%. With mining under stress, companies may delay production expansion planned to take place after the completion of the Nacala railway. For the short term, fiscal risks are greater than debt stress -- particular given 2014 election-related spending.

Russia's Asian gas pivot will progress slowly

2015 ◽  
Keyword(s):  
Natural Gas ◽  
Liquefied Natural Gas ◽  
East Siberia ◽  
Gas Industry ◽  
Content Type ◽  
Oil Pipeline ◽  
Price Discounts ◽  
The Past ◽  
Vladimir Putin

Subject Outlook for Russia-Asia gas ties. Significance Last year, Russia's President Vladimir Putin signed a 30 year deal worth 400 billion dollars to sell 38 billion cubic metres (bcm) yearly of natural gas to China, starting in 2018-19. Gazprom will have to build the 4,000 kilometres 'Power of Siberia' pipeline. The deal is the cornerstone of Russia's pivot towards Asia. Other elements include the East Siberia Pacific Oil Pipeline, the liberalisation of liquefied natural gas (LNG) exports and the planned second pipeline to China via the Altai Western route. However, the past year's events are frustrating Moscow's ambitions. Whether Russia succeeds or not bears implications for the global gas industry. Impacts By 2035, over 30% of Russia's gas exports will go to Asia. Liquefaction technologies are not on the sanctions list, but they might be if sanctions were widened. To seal the Altai deal, Russia will have to grant price discounts to make the offer too good to refuse.

Latin America's LNG drive could quickly lose momentum

2016 ◽  
Keyword(s):  
Energy Source ◽  
Natural Gas ◽  
Electricity Generation ◽  
Low Cost ◽  
Gas Storage ◽  
Gas Production ◽  
Liquefied Natural Gas ◽  
Content Type ◽  
Weather Phenomenon ◽  
Gas Balance

Subject Energy diversification efforts. Significance The El Nino weather phenomenon has laid bare the vulnerabilities of South America's dependence on hydropower. Gas has been the primary back-up, and liquefied natural gas (LNG) import capacity a strategic necessity (one which the northern part of the continent lacks). However, a recovery in Argentine gas production could eventually change the region's current gas balance, while the growth of renewables offers a new, indigenous, low-cost energy source. Impacts Investment in LNG import capacity and gas storage will continue. However, facilities face the threat of low utilisation as renewables capacity and domestic gas production increases. As one of the cheapest forms of electricity generation with a large amount of unexploited resource, hydropower will expand. States will gradually look towards other forms of system flexibility and grid resilience.

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