Singapore sets up standby generators amid power turmoil
Singapore is setting up standby fuel facilities for power generation companies to draw upon should gas supplies be affected, announced the country's Energy Market Authority (EMA) yesterday.
The authorities will direct generation companies to generate electricity using fuel from the standby facilities if necessary, to maintain system stability, said EMA, which has also informed companies to contract sufficient fuel to meet the retail demand. It declined to say which fuels would be used, citing citing "energy security sensitivities".
Describing these measures as pre-emptive and extraordinary, the EMA said they are necessary to secure fuel and electricity supply and that it will review the measures again by 31 March 2022.
These measures come as soaring gas prices globally have forced the exit of several electric retailers in the city-state, which relies predominantly on natural gas for electricity generation. The supply of natural gas is at higher risk of disruptions, said the EMA, as there are upstream production issues in Indonesia's gas field in the Greater Sarawak basin, which is likely to last until the end of this year
EMA said Singapore's overall gas supplies remain sufficient, but it is working to further secure fuel and electricity supply. Aside from the standby fuel facilities, the EMA has also informed power generation companies that they have to provide other power companies and EMA the first right of refusal before they sell any excess gas supplies to other companies.
EMA is working with the companies to track their fuel supply levels and generating capacity, and it will provide the standby fuel to them if gas supplies are affected.
EMA did not specify the type of fuels that would be used for the standby fuel facilities. Singapore uses a very small amount of petroleum products for power generation. Petroleum products, consisting mainly of fuel oil or gasoil, comprise about 0.36pc of the fuel mix used for electricity generation in 2020. The share of oil products in the electricity generation mix has fallen over the last decade, dropping below 1pc from 2014 onwards compared to about 20pc in 2010.
About 95.8pc of electricity is generated from imported natural gas, the latest available data from EMA show. Other products used for electricity generation include coal, solar energy, municipal waste and biomass.
Related news posts
EU adopts sustainability due diligence rules
EU adopts sustainability due diligence rules
Brussels, 24 April (Argus) — The European parliament has formally approved a Corporate Sustainability Due Diligence Directive (CSDDD), which will require large EU companies to make "best efforts" for climate change mitigation. The law will mean that relevant companies will have to adopt a transition plan to make their business model compatible with the 1.5°C temperature limit set by the Paris climate agreement. It will apply to EU firms with over 1,000 employees and turnover above €450mn ($481mn). It will also apply to some companies with franchising or licensing agreements in the EU. The directive requires transposition into different EU national laws. It obliges member states to ensure relevant firms adopt and put into effect a transition plan for climate change mitigation. Transition plans must aim to "ensure, through best efforts" that business models and company strategies are compatible with transition to a sustainable economy, limiting global warming to 1.5°C and achieving climate neutrality by 2050. Where "relevant", the plans should limit "exposure of the company to coal-, oil- and gas-related activities". Despite a provisional agreement, EU states initially failed to formally approve the provisional agreement reached with parliament in December, after some member states blocked the deal. Parliament's adoption — at its last session before breaking for EU elections — paves the way for entry into force later in the year. Industry has obtained clarification, in the non-legal introduction, that the directive's requirements are an "obligation of means and not of results" with "due account" being given to progress that firms make as well as the "complexity and evolving" nature of climate transitioning. Still, firms' climate transition plans need to contain "time-bound" targets for 2030 and in five-year intervals until 2050 based on "conclusive scientific" evidence and, where appropriate, absolute reduction targets for greenhouse gas (GHG) for direct scope 1 emissions as well as scope 2 and scope 3 emissions. Scope 1 refers to emissions directly stemming from an organisation's activity, while scope 2 refers to indirect emissions from purchased energy. Scope 3 refers to end-use emissions. "It is alarming to see how member states weakened the law in the final negotiations. And the law lacks an effective mechanism to force companies to reduce their climate emissions," said Paul de Clerck, campaigner at non-governmental organisation Friends of the Earth Europe, pointing to "gaping" loopholes in the adopted text. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
New ISO 8217 eyes wider scope for alternative fuels
New ISO 8217 eyes wider scope for alternative fuels
London, 24 April (Argus) — The 7th edition of ISO 8217, to be published in the second quarter of this year, will outline a broader integration of marine biodiesel blending, delegates heard at the International Bunker Conference (IBC) 2024 in Norway. Tim Wilson, principal specialist fuels of Lloyds Register's fuel oil bunkering analysis and advisory service (FOBAS), presented on the upcoming iteration of the ISO 8217 marine fuel specification standard, which will be released at IBC 2024. The new edition will incorporate specification standards for a wide range of fatty acid methyl ester (Fame)-based marine biodiesel blends up to B100, 100pc hydrotreated vegetable oil (HVO), as well as synthetic and renewable marine fuels. This will also include additional clauses to cover a wider scope, and briefly touch on biodiesel specifications that do not entirely align with road biodiesel EN-14214 specifications. This follows the emergence of widening price spreads for marine biodiesel blends because of specification differences and the lack of a marine-specific standard for the blends. The new edition of ISO 8217 is also expected to remove the limit of 7pc Fame when blended with distillate marine fuels such as marine gasoil (MGO) which was in place in the previous ISO 8217:2017. Other changes to distillate marine biodiesel blends include changes to the minimum Cetane Index, oxidation stability alignment to be connected to either ISO 15751 for blends comprising 2pc or more of Fame biodiesel and ISO 12205 for blends comprising a Fame component of under 2pc. Cold-filter plugging point (CFPP) properties will be determined by the vessel's fuel storage tanks' heating capabilities and requirements will be set in place to report the CFPP for distillate marine biodiesel grades, according to the new edition of the marine fuel specification standard. Wilson said that a minimum kinematic viscosity at 50°C will be in place for various forms of residual bunker fuel oil along with a viscosity control alerting suppliers to inform buyers of the exact viscosity in the supplied fuel. He said they have seen delivered fuel viscosity come in at much lower levels than ordered by the buyers, which was the reasoning behind the viscosity control monitoring requirement. By Hussein Al-Khalisy Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Peninsula eyes B100 marine fuel supply in Barcelona
Peninsula eyes B100 marine fuel supply in Barcelona
London, 24 April (Argus) — Marine fuel supplier and trader Peninsula has added a chemical tanker to its fleet in Barcelona, with a view to supply the port with B100 marine biodiesel. Aalborg meets chemical tanker regulations under the International Maritime Organisation (IMO)'s International Convention for the Prevention of Pollution from Ships (MARPOL) Annex II. This means the tanker can supply marine biodiesel blends containing up to 100pc fatty acid methyl ester (Fame), which conventional oil tankers are unable to do . Oil tankers and barges are limited to up to 25pc Fame. Peninsula added that the Aalborg is also used to supply conventional fossil bunker fuels such as very-low sulphur fuel oil (VLSFO) and marine gasoil (MGO). It is yet to complete a B100 delivery in Barcelona. Market participants pointed to limited demand for B100 in the Mediterranean, but regulatory changes such as the introduction of FuelEU maritime next year may help to support demand for marine biodiesel blends. By Hussein Al-Khalisy Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Oman latest to insist that oil, gas is 'here to stay'
Oman latest to insist that oil, gas is 'here to stay'
Muscat, 24 April (Argus) — Omani and Oman-focused energy officials this week joined a growing chorus of voices to reiterate the pivotal role that hydrocarbons have in the energy mix, even as state-owned companies scramble to increase their share of renewables production. Some producers cite the risk of leaving costly, stranded oil and gas assets as renewable energy alternatives become more favoured. "This is a common concern among producers who are focusing on short-term developments to maximize cash flow — [but] if we continue to do that, with the clean energy transition, will we be left with stranded assets in the long-term", state-controlled PDO's technical director Sami Baqi told the Oman Petroleum and Crude Show conference in Muscat this week. "We need to redefine and revamp our operation model to produce in a sustainable manner." "We are in an era where most of the production does not come from the easy oil but comes from difficult oil," Oman's energy ministry undersecretary Mohsin Al Hadhrami said. "It requires more improved and enhanced oil recovery (EOR) type technologies to extract it." Oman is heavily reliant on tertiary extraction technologies like EOR given its maturing asset base and complicated geology. "We know that most of the oil fields [in the region] are maturing and costs are going to escalate, so we need to be mindful of it while discussing cleaner solutions going forward," Hadhrami said. PDO, Oman's largest hydrocarbon producer, aims for 19pc of its output to come from EOR projects by 2025, and has said it is looking at 'cleaner' ways to implement the technology. PDO in November started a pilot project to inject captured CO2 for EOR at its oil reservoirs. Baqi's concerns were echoed by PDO's carbon capture, utilisation and storage (CCUS) manager Nabil Al-Bulushi, who said even solutions like CCUS can be expensive and come with their own challenges. There is a need for a proper ecosystem or regulatory policies to avoid delays in executing such projects, he said. When it comes to challenges associated with commercialising green hydrogen, Saudi state-controlled Aramco's head of upstream Yousef Al-Tahan said higher costs already make hydrogen more expensive than any other energy sources. "Not only should the costs go down, but the market has to be matured to take in the hydrogen," he said. "We also need pipelines and facilities that are able to handle hydrogen, especially when it gets converted to ammonia." Gas here to stay Oman, like many of its neighbors in the Mideast Gulf, insists gas needs to be part of the global journey towards cleaner energies. "Asia-Pacific is still heavily reliant on coal, this is an area where gas can play an important role," Shell Oman's development manager Salim Al Amri said at the event. "I think there is no doubt that gas is here to stay." Oman is a particularly interesting case as it "has moved from a position of gas shortage to surplus", Al Amri said, enabled by key developments in tight gas. "Output from fields like Khazzan and Mabrouk will continue to produce nearly 50pc of output even by 2025, which is indicative of how important tight gas developments are," he said. The Khazzan tight gas field has 10.5 trillion ft³ of recoverable gas reserves. Mabrouk North East is due to reach 500mn ft³/d by mid-2024. But even as natural gas is touted as the transition fuel, executives from major producers like state-owned OQ and PDO warned there are technical risks associated with extracting the fuel, including encountering complex tight reservoirs, water production and difficult geology. By Rithika Krishna Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Business intelligence reports
Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.
Learn more