Daily Energy News
Danish energy group DONG Energy has signed an agreement with INEOS to divest its upstream oil and gas activities to INEOS for an unconditional payment of US$1.05bn (DKK 7bn, €941m) on a cash and debt free basis, a contingent payment of US$150m (DKK 1bn, €134m) related to the Fredericia stabilisation plant and a contingent payment of up to US$100mn (DKK 0.7bn, €94m) subject to the development of the Rosebank field.
Policy & Regulatory
The European Commission has cleared reductions granted to energy-intensive companies on surcharges to finance support for cogeneration (CHP) in Germany, and reductions on surcharges to finance support for cogeneration and renewables in Italy, considering that these measures helped EU energy and climate targets while ensuring the global competitiveness of energy-intensive industries.
Bangladesh has decided to introduce a carbon tax on the carbon content of fuel as early as 1 June 2017, as part of a larger "green" measure package. The measure, supported by the World Bank, will be included in the next budget, that will be presented in Parliament in June. The introduction of a carbon tax in a context of low oil prices will enable the government to boost its revenue collections while promoting objectives of climate change policy.
BP has completed its Quad 204 project in the west of Shetland region, offshore United Kingdom and has started crude oil production from the redeveloped Schiehallion Area. BP owns a 33% stake in the Schiehallion field, in partnership with Shell (55%) and Siccar Point Energy (12%).
Infrastructure & Investments
Indian state-owned power transmission grid company PowerGrid has started works on the Raigarh-Pugalur line project, a 1,800 km-long electricity transmission line that will deliver power to 80 million people.
The project will stretch over 1,830 km to connect Raigarh in Central India to Pugalur in the southern state of Tamil Nadu. It will consist of an 800 kV ultra-high-voltage direct current (UHVDC) line, with a transmission capacity of 6,000 MW. The two-way link will integrate thermal and wind energy for transmission of power to high consumption centers.
Indian state-run engineering company Bharat Heavy Electricals Ltd (BHEL) has commissioned the third and last 660 MW unit at the 1,980 MW Prayagraj supercritical thermal power project, located in Bara tehsil in Allahabad district of Uttar Pradesh (India).
The Presidents of Tanzania and Uganda have signed an agreement to go ahead with the construction of the East African Crude Oil Pipeline (EACOP) project, a 1,400-km-long crude oil pipeline. The US$4bn project will stretch between the western region near Hoima, where large oil reserves have been discovered (estimated between 2.6 and 6.5 Gbl), and the existing port of Tanga, in north-eastern Tanzania. When completed in 2020, it will be the first major oil pipeline in East Africa.
Australian independent gas producer Woodside plans to make a final investment decision (FID) on its Browse gas project in 2019.
TransCanada Mexico, the Mexican subsidiary of Canadian energy network group TransCanada, has officially started building the US$2.1bn Sur de Texas-Tuxpan gas pipeline in Mexico.
The company was awarded the construction and operation in June 2016 by Mexico's state-owned power utility, the Federal Electricity Commission (Comision Federal de Electricidad, CFE). The 800 km-long gas pipeline project will deliver 2.6 bcf/d (nearly 27 bcm/year) of gas, from offshore gas fields in the Gulf of Mexico, at the border point near Brownsville, Texas to Tuxpan, in the state of Veracruz.