Canberra backs Australia power link to Singapore

  • Market: Electricity, Natural gas
  • 07/30/20

The Australian government plans to accelerate the planning process for the A$22bn ($15.7bn) project to build a 3,000MW high-voltage power cable to Singapore to transmit electricity generated from a 10,000MW solar farm proposed for the Northern Territory.

Major project status has been granted to Australian-Singaporean private investment firm Sun Cable's proposed Australian-Asean Power Link (AAPL), supported by the battery and solar farm in the Barkly region near Tennant Creek, Australian energy minister Angus Taylor said.

The AAPL project's transmission cable has the capacity to deliver up to a third of Singapore's current electricity demand. Around 95pc of Singapore's electricity is generated by gas-fired plants. The project was previously known as the Australia-Singapore Power Link.

There are also plans to build a 15,000MW solar and wind power project in the Pilbara region of Western Australia, supplying Indonesia and 3,000MW dedicated to mining projects in the Pilbara.


Sharelinkedin-sharetwitter-sharefacebook-shareemail-share

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News
02/23/24

CEE countries ask EU to protect internal gas market

CEE countries ask EU to protect internal gas market

London, 23 February (Argus) — Five central and eastern European countries have issued a joint call for the EU to better protect the internal gas market, as storage levies in neighbouring countries could distort regional trade. The Czech industry and trade ministry is leading the initiative, in which Hungary, Austria, Poland and Slovakia are all taking part. The European gas market is "threatened by the introduction of new charges" for transporting gas across borders, which could "distort its functioning, create barriers to trade and hinder cross-border co-operation", the Czech ministry said. The five countries on 20 February asked the Belgian presidency of the EU to place the subject on the agenda of the 4 March energy ministers' meeting so that the issue can be discussed on an EU-wide basis. Europe has done a "tremendous job" in getting rid of its dependence on Russian gas supply, and it should "avoid taking steps that will undermine the work we have done, [and] damage our unity", Czech industry and trade minister Jozef Sikela said. The main target of criticism is the German storage levy, charged on all gas exiting the German grid and currently set at €1.86/MWh for the first half of this year. The levy creates barriers to the free trade of gas between EU countries, creating an "uneven playing field for national economies, increased energy costs for households and reduced cross-border cooperation", the minister said. The Italian regulator recently proposed a similar measure and "other countries" are also considering such levies, "suggesting a possible negative trend towards the extension of such charges across Europe", Sikela said. Levies "undermine efforts to diversify gas sources and favour gas supplies from Russia, which is contrary to the EU's geopolitical and energy security objectives", the minister said. These five countries call for "better protection" of the European gas market and the need for a "co-ordinated European solution". Energy Traders Deutschland expects German levy to rise further The storage levy has led to higher costs within Germany as well, the head of the gas taskforce of Energy Traders Deutschland Joachim Rahls emphasised on the sidelines of the E-World conference in Essen this week. Even within Germany, lower cross-border flows as a result of the levy are raising transport tariffs, as the same costs have to be distributed across less booked capacity, Rahls said, adding a higher storage levy would exacerbate the problems. Rahls "firmly expects" the storage levy to rise further in the next six-month period as current cross-border flows and revenues remain below the ones projected in the most recent setting of the levy. By Brendan A'Hearn and Till Stehr Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Read More
News

'Huge demand' ahead of carbon exchange: Australia’s CER


02/23/24
News
02/23/24

'Huge demand' ahead of carbon exchange: Australia’s CER

Sydney, 23 February (Argus) — Demand for Australian carbon credits and renewable energy certificates is expected to continue increasing rapidly over the coming years, including voluntary markets, officials at the country's Clean Energy Regulator (CER) said today as they unveiled details about the planned Australian Carbon Exchange. Cancellations of Australian Carbon Credit Units (ACCUs) are estimated to have reached around 1mn in 2023 in the voluntary market, a new high and up from approximately 855,000 in 2022, while those for large-scale generation certificates (LGCs) rose to an estimated 4.9mn last year from 3.4mn the previous year, CER's general manager Jane Wardlaw said during a webinar organised by the Australia-based industry group Carbon Market Institute. While most of the demand for both products comes from compliance obligations under Australia's Renewable Energy Target and Emission Reduction Fund, including the revamped Safeguard Mechanism , companies can also make cancellations against voluntary certification programmes such as the federal government-backed Climate Active or under organisational emissions or energy targets. The CER is expecting "huge demand" in the voluntary market stemming from Australia's planned stricter mandatory emissions reporting , especially for LGCs, executive general manager Mark Williamson said on 23 February. Demand for ACCUs in the compliance market has been already increasing on the back of new safeguard obligations starting from the July 2023-June 2024 financial year, Wardlaw said. The regulator has been working closely with the Australian Securities Exchange (ASX) and technology solutions provider Trovio Group on its planned Australian Carbon Exchange . Trovio as a first step is developing a new registry for the Australian National Registry of Emissions Units, which is expected to come on line in the second half of 2024, with the exchange itself set to be launched between the end of 2024 and early 2025. "We think it's time to move to an exchange-based market where participants can trade anonymously," CER chair David Parker said, noting the buying side of the market has become much more diversified in recent years. "That's not intended to lock out the over-the-counter [OTC] arrangements," Parker said, adding the regulator hopes OTC trades will be cleared on the exchange. Companies that operate existing trading platforms will be able to connect their systems to the new registry. But the CER will require them to "release some data transparency" such as volumes and prices, Wardlaw said. New options The registry and exchange will incorporate other existing certificates like LGCs and small-scale technology certificates, as well as new ones such as the proposed guarantees of origin for hydrogen and renewable electricity . It will also include the new Safeguard Mechanism credit units (SMCs), which will be issued by the government to facilities that reduce their emissions below their baselines. The CER plans to publish information about which facilities are issued SMCs. While the exchange works with the CER on the new spot exchange, ASX's senior manager of issuer services Karen Webb said it is developing its own separate carbon futures contracts, which it is planning to launch in July 2024. The physically settled contracts will consist of ACCUs, LGCs and New Zealand units, for delivery up to five years ahead. By Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Jera to invest $1.4bn in Australia's Scarborough gas


02/23/24
News
02/23/24

Jera to invest $1.4bn in Australia's Scarborough gas

Osaka, 23 February (Argus) — Japanese LNG importer Jera has decided to invest $1.4bn in the Scarborough gas project being developed by Australian independent Woodside Energy off the northwest coast of Western Australia, in a deal that will give it up to 1.2mn t/yr of LNG. Jera on 23 February agreed with Woodside Energy through its subsidiary Jera Australia to acquire a 15.1pc stake in the Scarborough gas field. The $1.4bn is Jera's biggest investment in any gas field by monetary value. The transaction is likely to be completed in the latter half of 2024, subject to conditions including obtaining permits and approvals. The Scarborough gas project aims to produce 8mn t/yr of LNG at Woodside's 4.9mn t/yr Pluto LNG facility from 2026, where it is building a second 5mn t/yr train 2 facility. Jera plans to secure LNG for around 20 years on an fob basis, basically for its own use. It could consider chartering a new LNG vessel in the future, while leveraging its existing fleet, the company said. Jera has decided to get involved in the Scarborough gas development, as the project is in relatively close proximity to Japan and has already passed its final investment decision in November 2021. The percentage of CO2 in gas in the field is at less than 0.1pc, which has also encouraged the company to invest. Jera will not consider installing carbon capture and storage (CCS) technology in the project. It could purchase carbon credits, if CO2 emissions rise above the baseline set for the project. Jera also agreed on 23 February to buy six LNG cargoes per year (around 400,000 t/yr) from Woodside's portfolio over 10 years beginning in April 2026. The deal is on a des basis, with the price formula undisclosed. Combined LNG quantities in the last two deals account for around 4.6pc of Jera's current LNG handling volumes of 35mn t/yr. It is unclear whether handling quantities would increase in the future, which is dependent on demand, Jera said. But the company sees LNG playing a vital role in Asia to balance stable energy supply, to support economic growth with decarbonisation and back up unstable renewable power output. Jera looked for a new LNG supply source, while the US in late January decided to temporarily pause new licences for gas export . Jera said it is monitoring the US situation, without clearly adding that this has influenced its recent investment decisions. Jera and Woodside also agreed on 23 February to explore collaboration in areas such as ammonia, hydrogen and CCS. More details such as timelines for discussion are yet undisclosed. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Single entity scrapped from EMD reform: Epex Spot


02/22/24
News
02/22/24

Single entity scrapped from EMD reform: Epex Spot

Essen, 22 February (Argus) — The pan-European single legal entity (SLE) proposed by the European Commission will not be included in the final electricity market design (EMD) reform, Paris-based power exchange Epex Spot representatives told Argus . "From what we have seen, in the final version of the text, the reference to 'single entity' has been completely taken out from the relevant articles in the European electricity directive," Epex Spot said at the sidelines of the E-world conference in Essen. In the text seen by Epex Spot, the SLE has been replaced by "different governance options", although the exchange has no information on the concrete meaning of that concept. "That wording is the result of diplomatic negotiations and has on purpose remained broad," Epex Spot said. The exchange, together with other nominated electricity market operators, convinced the European Parliament to adopt amendments against the SLE in July, and wrote a joint letter with power exchange Nordpool in November , arguing that the new entity could increase operational risks and would not be able to support local requirements for market coupling. In addition, the exchange representatives told Argus that Epex Spot's pipeline of projects was already long. The vote on the European market design is expected to take place next month. By Tatiana Serova Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

India’s Gail seeks to add LNG tanker for US project


02/22/24
News
02/22/24

India’s Gail seeks to add LNG tanker for US project

Mumbai, 22 February (Argus) — Indian state-controlled gas distributor Gail plans to add an LNG tanker to ship cargoes from the US, two persons with knowledge of the matter told Argus . Gail is seeking delivery of the tanker between October 2024 and September 2025 for a minimum period of seven years, which can be extended by another two years, a source in a shipping firm said. The tanker would have a capacity of 159,000m³ to 181,000m³ to transport the fuel from the US. Gail has a term deal for 3.5mn t/yr of LNG from the US' Sabine Pass terminal and 2.3mn t/yr from Cove Point, valid till 2038. The firm currently has four LNG tankers to bring the super-chilled fuel from the US, which includes two-time charter agreements with Japan's Mitsui O.S.K Lines and the rest with NYK Line. The new tanker will help Gail bring more US LNG cargoes to the country instead of swapping cargoes. It will also provide more operational flexibility to the firm, keep its downstream consumers adequately supplied and at the same time reduce supply uncertainty stemming from geopolitical conflicts like the continuing Red Sea tensions. Gail has sold some LNG cargoes sourced from Cheniere Energy's terminal in the Gulf of Mexico to an unnamed highest bidder in Europe, Argus had reported quoting Gail's director of marketing Sanjay Kumar on the sidelines of the India Energy Week in Goa on 9 February. Gail used the proceeds from the sale to source spot cargoes from Gulf countries — shipments which do not have to transit through the Suez Canal to reach India. The firm is likely to issue more LNG tenders to swap US term cargoes with supplies closer to India as cargoes face difficulty in transiting the Suez Canal, Kumar added. The conflict in the Red Sea since December 2023 has disrupted shipping operations as tankers heading to India have been taking the longer route around the Cape of Good Hope. An inability to take the shorter Suez Canal route adds up to seven days in delays for Gail's US LNG shipments to reach the 17.5mn t/yr Dahej LNG import terminal on the west coast of India, Kumar said. Gail offered several LNG cargoes from the Cove Point LNG export terminal in 2017, in order to overcome the problem of a shortage of tankers that could deliver supplies to India. The swap deal resulted in shorter and more efficient deliveries as the swapped cargo ideally would come from a terminal closer to India as compared to the US, and the Cove Point cargo would go to a destination nearer to the US as compared to India. But swap tenders from the US have declined because of availability of four LNG tankers to bring cargoes to India. Gail originally planned to bring all its US cargoes into the country this year, but the conflict in the Red Sea prompted the firm to change tack and issue swap tenders instead, a source with knowledge of the matter said. By Rituparna Ghosh Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.