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Daily Energy News

Companies

The British energy group Scottish and Southern Energy (SSE) has unveiled its 2020 carbon reduction target: the company, which reported a carbon intensity figure of 304 kgCO2e/MWh in 2016, plans to reduce the generated carbon intensity by 50% in 2020, starting from 2006 levels (600gCO2e/kWh).

The Indian LNG importer Petronet LNG is currently in talks with Gujarat State Petroleum Corporation (GSPC) regarding the possible purchase of a 25% stake in the Mundra LNG import terminal in Gujarat (north-western India). GSPC first offered 50% but Petronet LNG is not willing to take more than 25%, for a total amount of Rs 4,500 crore (US$676m).

The Chinese State Grid Corporation has completed the purchase of a 24% stake in ADMIE (Independent Power Transmission Operator), Greece's power grid operator from Greece's state-held power utility Public Power Corporation (PPC).

Policy & Regulatory

The French Nuclear Safety Authority (Autorité de Sûreté Nucléaire or ASN) has reported that a generic incident is affecting the auxiliary systems of the diesel-powered emergency generators of the 1,300 MW reactors installed on 8 French nuclear power plants.

Energy Markets

Vietnam's national power utility Electricity of Vietnam (EVN) plans to import 5 Mt of coal from Indonesia in 2017, 11 Mt in 2020 and 19 Mt by 2025. These volumes will be used mostly for power generation, in particular for the Duyen Hai 3 coal-fired power plant, the first one which will use imported coal.

Iran has started to export natural gas to Iraq under the first of the two supply agreements which were signed between both countries in 2013 and 2015, respectively. Iranian authorities have announced that gas exports to Baghdad have reached approximatively about 7 mcm/d and should reach 35 mcm/d in the near future. The exports are conveyed through the Iran-Iraq pipeline, which was inaugurated in January 2017.

Energy Prices & Taxes

The China National Development and Reform Commission (NDRC) has announced that surcharges paid by coal-fired power producers will be reduced as of July 2017. Provincial authorities will be then able to raise wholesale power prices according to the grid operator.

Thermal plants operators pay surcharges to Chinese provincial governments in order to cover environmental protection programs. The main driver behind this legal change is the increasing difficulties power utilities encountered with the rising coal prices.

Technology

The European Commission (EC) has updated the construction schedule and the budget estimates of the ITER experimental nuclear reactor near Cadarache in France. Construction works started in August 2010, but the project is not expected to start the first experiments before 2025 and the full power operations are now scheduled for 2035. The published document does not make concrete financial commitments, which are expected to be finalized in 2019.

Infrastructure & Investments

LNG Croatia LLC (located on the island of Krk, Croatia) has announced it expects to sign terminal user agreements in Q1 2018.

The Australian government has unveiled new measures for reducing electricity and gas prices, which are expected to rise by 20% and 17%, respectively, in July 2017, including restrictions on gas exports, the abolition of limit merits review appeals mechanism and an extra funding for the Australian Energy Regulator. However, these measures will not apply immediately.