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Daily Energy News

Policy & Regulatory

Indonesia has initiated a bidding round on four oil and gas blocks, which have a combined estimated resources of 3,730 mbl of oil and 300 bcf (8.5 bcm) of gas. The tendered licences include the Sangkar block in offshore and onshore Central and East Java, the Bunga block in offshore East Java, the Peri Mahakam block in offshore and onshore East Kalimantan and the Bose block in onshore and offshore East Nusa Tenggara. The country aims to produce 1 mb/d of oil and 12 bcf/d (124 bcm/year) of natural gas in 2030.

The European Commission has adopted the Territorial Just Transition Plan (TJTP) for Slovakia that identifies territories facing specific challenges in their transition to a climate-neutral economy and directs investments from the Just Transition Fund (JTF) to these vulnerable regions.

Vietnam would be considering raising its coal power target for 2030 under an updated draft energy plan. Under this baseline scenario, coal would remain the largest source of energy in the country until 2030, with 11 new coal-fired power plants to be built, raising the coal-fired power capacity from over 21 GW in 2020 (nearly 24 GW in 2021) to 30 GW in 2025 and over 36 GW in 2030.

Energy & Climate Markets

The Danish Energy Agency and the Indian Ministry of New and Renewable Energy (MNRE) have released a conceptual plan with a pipeline identifying 15 locations for offshore wind projects in India, including further details on the exact locations of the first 4 GW in Tamil Nadu. The conceptual build-out plan proposes identification of 14 sites in Tamil Nadu (south east India) and 1 site in Gujarat (north west India) corresponding to the planned upcoming auctions announced in the Strategy Paper for Offshore Wind, released by Government of India in July 2022.

The US company ConocoPhillips has signed a 20-year agreement with the US energy infrastructure group Sempra to purchase 5 Mt/year (6.9 bcm/year) of LNG from the 13.5 Mt/year (18.6 bcm/year) Port Arthur LNG project, located in the US state of Texas. The contract is worth approximately US$10.5bn.

Energy Prices & Taxes

The British energy regulator Ofgem has announced its quarterly update to the energy price cap for the period 1 January – 31 March 2023. The price cap will rise by 21% from an annual level of £3,549 (€4,123) in August 2022 to £4,279 (€4,970) in January 2023, but bill-payers remain protected under the government’s Energy Price Guarantee (EPG) until the end of March 2024. The energy price cap level indicates how much consumers on their energy supplier’s basic tariff would pay if the EPG were not in place.

Infrastructure & Investments

The Department of Energy (DoE) of the Philippines has awarded a wind energy service contract to Shell Overseas Investment and Alternergy Holdings to study the feasibility of an offshore wind project in the Calavite Passage in the north-west of Mindoro, in Occidental Mindoro. The offshore wind project could have a potential capacity of 1 GW, as the Calavite Passage is estimated to have an offshore wind potential of up to 5 GW, and could cost US$5bn. In addition, Shell and Altenergy are looking at other offshore wind sites for potential developments.

Kibo Energy has signed a renewed Memorandum of Understanding (MoU) with Tanzania's national power utility Tanzania Electric Supply Company (TANESCO), setting guidelines and timelines for the conclusion of a Power Purchase Agreement (PPA), under the terms of which Kibo Energy will provide 300 MW from its Mbeya

Naturgy and Equinor have signed an agreement with the Canary Islands Maritime Cluster to promote offshore wind power in the Canary Islands (Spain). The two groups are jointly developing the 200 MW Floating Offshore Wind Canarias (FOWCA) project that would be located east of Gran Canaria and that would be connected to the transmission grid at the Barranco de Tirajana III substation. The FOWCA project should take part in an offshore wind power auction scheduled in 2023.

The Ecuadorian government intends to invest US$263m to increase its power interconnection capacity with Peru through a 500 kV line. The project, which should be operational within 5 years, comprises a 544 km high voltage line between the two countries, including 280 km of cables on the Ecuadorian side and a new substation. About 47.5% of the project will be funded by a loan from the Inter-American Development Bank (IDB) and another 47.5% by the European Investment Bank (EIB).