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Daily Energy News

Companies

RWE is considering selling its 70% interest in its 775 MW (797 MW gross) CCGT power plant in Honaz, in the Denizli region of Turkey, if potential buyers express interest in the power plant.

Abu Dhabi National Oil Company (ADNOC), through its subsidiary ADNOC Onshore, has awarded an AED1.8bn (US$490m) EPC contract to Greek construction company Archirodon to maintain the crude oil production capacity of Bab field at 485,000 bbl/d. The field is located 160 km southwest of Abu Dhabi city (United Arab Emirates).

Archirodon will build supporting facilities and infrastructure (oil-producing wells, water injection wells, artificial lift wells, well-bays, let down stations, water injection clusters...) in 39 months.

E.ON and RWE Renewables have signed a 2.5-year power purchase agreement (PPA), under the terms of which E.ON will buy around 3 TWh/year of power from wind parks operated by RWE in Great Britain (United Kingdom). This PPA will support E.ON's committment to provide all of its residential customers across Britain (3.3 million homes) power on all tariffs, with 100% renewable, at no extra cost.

Infrastructure & Investments

Saudi Arabian national oil company Saudi Aramco plans to supply LNG to the Bangladesh's national power utility Bangladesh Power Development Board (BPDB), following the signature of a US$3bn tripartite agreement with ACWA Power to develop a 3,600 MW LNG-fired power plant and a related LN

The Czech Republic plans to build a new reactor at the Dukovany nuclear power plant by 2036; the supplier should be selected by the end of 2022 in order to start construction in 2029. National power company ČEZ expects five bids (from EDF, KHNP, China General Nuclear Power, Westinghouse and Atmea (Areva-Mitsubishi joint venture) for the new reactor, which is expected to cost CZK 140-160bn (€5.5-6.2bn).

The Nawara gas field in Tunisia will enter production by the end of 2019. The field has been developed by a US$1.2bn joint venture between Austrian integrated oil and gas company OMV and Tunisia’s national oil corporation ETAP. It was first scheduled to come online in 2016, but it has been delayed due to social and technical issues. It is expected to produce nearly 1 bcm/year of gas, increasing the country’s total gas production by 50%.

 

Policy & Regulatory

Taiwan, where the 120 MW Formosa-1 Phase 2 offshore wind project has just been inaugurated, plans to develop an additional 10 GW of offshore wind capacity between 2026 and 2035. The island already targets to build 5.7 GW of offshore wind capacity by 2025, as the country aims to exit nuclear the same year. As of November 2019, Taiwan has only 0.9 GW of operational wind power capacity (including the new offshore wind project), but over 8 GW under development (mainly offshore wind).

The National Agency of Electric Energy of Brazil (ANEEL) has approved the next power transmission auction 02/2019 (Leilão de Transmissão 02/2019), which will be held on 19 December 2019.

Energy & Climate Markets

Algeria’s national oil company Sonatrach has signed an agreement with Edison, an Italian subsidiary of EDF, to renew their existing gas supply contract to the Italian market (2 bcm/year) for a period of 8 years. The Algerian company has already renewed its gas supply contracts with Enel, Galp Energia, Eni, Botas, and Naturgy, totalling almost 28 bcm/year. In 2018, Algeria exported 51 bcm of natural gas, with Spain and Italy receiving 2/3 of it.

The Ministry of Energy of Iran has announced the discovery of an oil field in the southwestern province of Khuzestan. The Naamavaran field is estimated to hold up to 22.2 Gbl of crude oil reserves but only a tenth (2.2 bbl) would be recoverable because of technological constraints. In October 2019, the National Iranian Oil Company (NIOC) had announced that it had discovered a large gas field in the southern province of Fars (Iran).