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Daily Energy News

Companies

The US Federal Trade Commission (FTC) has cleared the proposed merger of US pipeline and midstream company Spectra Energy with Canada's largest pipeline company Enbridge. The merger agreement, under which Enbridge will acquire Spectra Energy in a stock-for-stock merger transaction which will value Spectra Energy at approximately C$37bn (US$28bn), was announced in September 2016.

Finnish power company Fortum has just released its 2016 results, posting a 5% increase in sales to €3.6bn. This was pushed by a 20% increase in revenues from its City Solutions segment (€1.4bn), while revenues from its Generation business decreased by 4% to €1.7bn.

Forecasts

The National Energy Administration (NEA) of China expects domestic production to soar by nearly 1/4 (+24%), from 136.8 bcm in 2016 to 170 bcm in 2017, in a context of lower coal consumption and declining crude oil production.

Infrastructure & Investments

German energy group EnBW Energie Baden-Württemberg has agreed to sell a 49.9% stake in the nearly 500 MW Hohe See offshore wind project to Canadian energy infrastructure company Enbridge; EnBW will retain the remaining 50.1%. Both partners will jointly finance the implementation of the offshore wind farm from construction through to commissioning. Total investment is estimated at €1.8bn.

The city of Kitakyushu (Kyushu Island, Japan) has selected the Hibiki consortium led by Kyuden Mirai, the fully-owned renewable subsidiary of Japanese power utility Kyushu Electric, and including J-Power, Saibu Gas and engineering firm Kyudenko to develop a Yen 175bn (US$1.5bn) offshore wind project near the port of Kitakyushu.

The Hibiki consortium was selected through an auction process, launched in October 2016, aimed at boosting the offshore wind sector in the region. The 700 MW wind project will include up to 44 turbines

Indian oil and gas company Oil and Natural Gas Corp (ONGC) plans to invest Rs 29,300 crore (US$4.4bn) in fiscal year 2017-2018 (April 2017-March 2018) to develop its offshore oil and gas fields. The company will maintain its investment level to that of 2016-2017, benefiting from a decreasing cost of services to intensify its physical activity.

This capital expenditure don't include the Rs 8,000 crore (US$1.2bn) that ONGC will pay to take over Gujarat State Petroleum Corp's stake in the KG Basin; the company will use internal resources to meet its funding requirement.

The European Union member states have agreed on the Commission's proposal to invest €444m in priority European energy infrastructure projects. The 18 selected electricity, smart grids and gas projects will contribute to achieving the Energy Union's goals by connecting European energy networks, increasing security of energy supply, and contributing to the sustainable development by integrating renewable energy sources across the EU.

Policy & Regulatory

The European Parliament has approved plans to reduce the number of carbon credits (emission allowances) by 2.2% each year and to double the capacity of the 2019 market stability reserve (MSR) to absorb the excess of allowances on the market.

The French Parliament has approved a draft law aimed at inciting electricity auto-consumption for households or companies generating electricity, usually from solar panels. The draft had been finalised by a joint committee, to set up a regulatory framework for auto-consumption.

The Directorate General of Hydrocarbons (DGH, part of the Ministry of Oil) of India has approved the award of operating licenses for 31 small oil and gas blocks (44 fields) to 23 companies, as part of an auction for 67 small oil and gas fields (46 contract areas) opened in May 2016. India received bids for 34 of 46 oil and gas fields. This will raise Rs 46,000 core in revenues (US$6.9bn), of which Rs 9,600 crore (US$1.4bn) in government revenues, over 15 years.