Bnetza consults on extended interruptible gas cap plans

  • Spanish Market: Natural gas
  • 23/09/20

German regulator Bnetza has launched a consultation on plans to apply higher discounts on interruptible gas transport capacity at domestic grid points once Germany's NCG and Gaspool market areas are merged.

Bnetza plans to increase the minimum discount granted on interruptible capacity at domestic network points — such as those linking storage sites, industrial consumers and local distribution systems to the grid — to 20pc following the merger, from 10pc previously.

It already earlier this month finalised regulatory changes that will lift the minimum discount to 20pc from 10pc at border connection points once the markets are merged, which is scheduled for 1 October 2021.

In response to these initial rule changes, market participants had called for the higher discounts to be extended to domestic points which prompted the new consultation. Restricting discounts to border connection points could lead to discrimination between different network users, market participants had said.

Bnetza had said larger discounts would better reflect increased uncertainties and a higher likelihood of interruptions once the market areas are merged. German system operators association FNB expects that entry capacity to the country's grid may fall sharply once the market areas are merged, consequently increasing the risk of bottlenecks.

Market participants have until 7 October to respond to Bnetza's consultation on the higher discounts at domestic points.


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21/05/24

Australia's Woodside plans CCS for Browse gas project

Australia's Woodside plans CCS for Browse gas project

Perth, 21 May (Argus) — Australian independent Woodside Energy is planning a carbon capture and storage (CCS) element for its Browse gas project offshore Western Australia (WA), but blamed stalled approval processes for the slow progress. The North West Shelf (NWS) life extension — which was first referred to regulators in 2018 — needed to be approved before Browse could progress further, chief executive Meg O'Neill said at the Australian Energy Producers conference held in WA's capital Perth this week. The life extension would allow the joint venture and third-party users to use the NWS project facilities until around 2070. WA's Environmental Protection Authority (EPA) recommended that the NWS life extension be approved in 2022, if it reduces its greenhouse gas (GHG) emissions to net zero by 2050. But the process remains incomplete, awaiting state and federal ministers' decisions and a final issuance of conditions for the project. WA's Office of the Appeals Convenor is still working through responses to the EPA's recommendation, which it must then report to the environment minister alongside its own recommendations, a process which was interrupted by the resignation of a senior bureaucrat last year. Woodside wanted to progress the CCS side of the Browse project before the end of 2024, O'Neill said, but the lack of certainty regarding approval timelines affected other elements of the project. "We've been working closely with the [federal government], state regulators and the Browse JV on the right approach to the environmental approvals, there are a couple of possible pathways that we are evaluating and we hope to be lodging the requests for approving that element of the project within this year," O'Neill said on 21 May. "But part of why we've been very disciplined in our work on Browse and not ramped up engineering work is because it is very difficult to get line of sight for when we'll get those approvals. With personnel changes at the appeals convenor we really don't have very good line of sight unfortunately." The 368bn m³ Browse development is considered critical to WA's future as a major LNG exporter and could provide long-term certainty for the 16.9mn t/yr NWS LNG, where partners have already signalled they will close a 2.5mn t/yr train later this year. Average gross GHG emissions from the three Browse fields are between 6.4mn-6.8mn t/yr with an additional 7.7mn t/yr once Browse gas is liquefied, resulting in total emissions of 14.1mn-14.5mn t/yr of CO2 equivalent, according to the environmental impact statement Woodside released in 2022. This necessitates a CO2 solution for it to progress under Canberra's net zero scope 1 emissions rule instituted last year. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Australia pauses pro-upstream offshore oil, gas reforms


21/05/24
21/05/24

Australia pauses pro-upstream offshore oil, gas reforms

Perth, 21 May (Argus) — Australia's federal resources minister Madeleine King acknowledges the political situation in the nation's upper house of parliament the Senate prevents any deal to clarify consultation requirements for the nation's offshore oil, gas, carbon capture and storage (CCS) and renewables sectors. The Senate last week passed the Labor party-led federal government's legislation on changes to deductions permitted under the Petroleum Resources Rent Tax (PRRT) and a new fuel efficiency standard for light commercial and passenger vehicles . But the deal struck with the Greens party and two independent senators meant the government withdrew amendments designed to specify which stakeholders must be consulted under law before receiving environmental permits. King blamed the Greens for her government removing the amendments from the agenda. "My disappointment is not for the industry but the community that will remain subject to inadequate and inappropriate consultation requirements for longer," King said on 21 May at the Australian Energy Producers conference in Perth. "The Greens political party and the crossbench independents and others promoted widespread misinformation in relation to the proposal that would ensure the community had the benefit of clarity and certainty in consultation." Environmental lawyers delayed field drilling and pipeline laying for Australian independent Santos' $4.6bn Barossa backfill project from late 2022 until early 2024, citing insufficient consultation with traditional owner groups, in a case ultimately dismissed by the Federal Court of Australia. Changes to offshore laws were promised by the federal government in January with concerns legal tactics could lead to further lawsuits aimed at driving up costs for LNG backfill, offshore wind power projects or CCS. Climate campaigners saw the changes as a vehicle for easing scrutiny on developers and its politicians promised to oppose any changes. But having dealt with the Greens instead of the Liberal-National coalition on legislation for fuel efficiency and the PRRT because of the latter's demands that the approvals process for oil and gas be expedited, Labor is less likely to now receive support for changes to consultation ahead of next year's federal election. The future gas strategy released by the federal government this month said new supplies are urgently needed, as gas-fired power generation will likely replace firming capacity provided by retiring coal-fired power plants. The report also found multiple reasons for Australia's low gas exploration investment, including difficulties with the approvals processes, legal challenges and market interventions that may lead international companies to focus on lower cost and lower risk fields in other jurisdictions. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Japan’s FEPC calls for clearer nuclear policy stance


20/05/24
20/05/24

Japan’s FEPC calls for clearer nuclear policy stance

Osaka, 20 May (Argus) — Japan's Federation of Electric Power Companies (FEPC) has called for a clarification of the country's nuclear power policy, to ensure stable electricity supply and alignment with its net zero emissions goal. The call comes as the government reviews its basic energy policy , which was formulated in 2021 and calls for the reduction of dependence on nuclear reactors as much as possible. But Japan's guidelines for green transformation, which was agreed in February 2023, states that Japan should make the most of existing nuclear reactors. Tokyo should clearly state in its new energy policy that it is necessary to not only restart existing nuclear reactors, but also build new reactors, said FEPC chairman Kingo Hayashi on 17 May. Hayashi is also the president of utility Chubu Electric Power. Hayashi emphasised that to utilise reactors, it would be necessary to have discussions regarding financial support, policy measures that would help ensure cost recovery, address back-end issues in the nuclear fuel cycle and conduct a review of nuclear damage compensation law. Japan's current basic energy policy is targeted for the April 2030-March 2031 fiscal year, when the country's greenhouse gas (GHG) emissions is forecast to fall by 46pc from 2013-14 levels. To achieve this, the power mix in the policy set the nuclear ratio at 20-22pc, as well as 36-38pc from renewables, 41pc from thermal fuels and 1pc from hydrogen and ammonia. Japan typically reviews the country's basic energy policy every three years. Nuclear, as well as renewables, would be necessary to reduce Japan's GHG emissions, although thermal power units would still play a key role in addressing power shortages. But Japan has faced challenges in restarting the country's reactors following safety concerns after the 2011 Fukushima nuclear disaster, with only 12 reactors currently operational. Japan's nuclear generation in 2023 totalled 77TWh, which accounted for just 9pc of total power output. Tokyo has made efforts to promote the use of reactors, after the current basic energy policy was introduced in 2021. The trade and industry ministry (Meti) has updated its nuclear policy, by allowing nuclear power operators to continue using reactors beyond their maximum lifespan of 60 years by excluding a safety scrutiny period in the wake of the 2011 Fukushima nuclear disaster. This could advance the discussion on Japan's nuclear stance, especially if the new basic energy policy includes more supportive regulations. The trade and industry ministry started discussions to review the energy policy on 15 May, aiming to revise it by the end of this fiscal year. It is still unclear what year it is targeting and what ratio will be set for each power source in the new policy. But the deliberation would form a key part of efforts to update the GHG emissions reduction goal, ahead of the submission of the country's new nationally determined contribution in 2025, with a timeframe for implementation until 2035. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Rio Grande do Sul remaneja fornecimento de gás


17/05/24
17/05/24

Rio Grande do Sul remaneja fornecimento de gás

Sao Paulo, 17 May (Argus) — O fornecimento de gás natural no Rio Grande do Sul teve que ser redistribuído em razão das enchentes históricas no estado, com o diesel potencialmente voltando como combustível a usinas de energia para deixar mais gás disponível para a produção de GLP (gás de cozinha). O gasoduto Gasbol, que abastece o Sul do Brasil, não tem capacidade para atender à demanda da refinaria Alberto Pasqualini (Refap), da usina termelétrica de Canoas — controlada pela Petrobras — e das distribuidoras de gás natural da região, disse Jean Paul Prates, o então presidente-executivo da Petrobras, no início desta semana. A distribuidora de gás de Santa Catarina ajustou sua própria rede local para atender aos picos de demanda no Rio Grande do Sul por meio da malha de transporte de gás. A usina térmica de Canoas está operando com geração mínima de 150 GW, sendo 61pc provenientes de sua turbina a gás. A usina foi colocada em operação para restabelecer o fornecimento adequado de energia depois que as linhas de transmissão no Sul foram afetadas pelas enchentes. A Petrobras planeja usar um motor a diesel para aumentar a geração de energia. O atual custo variável unitário (CVU) para o diesel na usina de Canoas é de R1.115,29/MWh. A companhia petrolífera também está operando a Refap a 59pc de sua capacidade instalada máxima. Fortes chuvas no Rio Grande do Sul desde 29 de abril trouxeram inundações sem precedentes ao estado, causando uma crise humanitária e danos à infraestrutura. O clima extremo deixou 154 mortos, 98 desaparecidos e mais de 540 mil deslocados, segundo a defesa civil do estado. Por Rebecca Gompertz Envie comentários e solicite mais informações em feedback@argusmedia.com Copyright © 2024. Argus Media group . Todos os direitos reservados.

Brazil's Rio Grande do Sul reallocates gas supply


17/05/24
17/05/24

Brazil's Rio Grande do Sul reallocates gas supply

Sao Paulo, 17 May (Argus) — Natural gas supply in Brazil's Rio Grande do Sul had to be redistributed because of the historic floods in the state, with diesel potentially making its way back as an power plant fuel to leave more gas available for LPG production. Gasbol, the natural gas transportation pipeline that supplies Brazil's south, does not have capacity to meet demand from the 201,000 b/d Alberto Pasqualini refinery (Refap), state-controlled Petrobras' Canoas thermal power plant and natural gas distributors in the region, according to Petrobras' then-chief executive Jean Paul Prates said earlier this week. The Santa Catarina state gas distributor has adjusted its own local network to meet peak demand in neighboring Rio Grande do Sul via the pipeline transportation network. The Canoas thermal plant is running at its minimum generation at 150GW, with 61pc coming from its gas turbine. The plant was brought on line to reinstate proper power supply after transmission lines in the south were affected by the floods. Petrobras plans to use a diesel engine to increase power generation. The current approved fuel cost (CVU) for diesel in the Canoas plant is of R1,115.29/MWh. Petrobras is also operating Refap at 59pc of its maximum installed capacity, at 119,506 b/d. Heavy showers in Rio Grande do Sul since 29 April brought unprecedented flooding to the state, causing a humanitarian crisis and infrastructure damage. The extreme weather has left 154 people dead, 98 missing and over 540,000 people displaced, according to the state's civil defense. By Rebecca Gompertz Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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