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India’s NTPC eyes more thermal power capacity

  • Spanish Market: Coal, Electricity
  • 10/06/24

Indian state-controlled utility NTPC plans to issue tenders for the construction of about 15GW of thermal power generation capacity by March 2027 to meet anticipated demand growth. Increased capacity typically boosts coal consumption.

"As part of our overall energy security plans, we are actively considering awarding thermal capacity of 15.2GW in [the] near future. This is in addition to 9.6GW thermal capacity already under construction," the company said.

Of the planned 15.2GW capacity, tenders for 10.4GW will be issued in the current April 2024-March 2025 fiscal year, NTPC said. Tenders for another 3.2GW will be issued in 2025-26, followed by 1.6GW in 2026-27, it added.

NTPC Group had an installed generation capacity of 76GW as of 31 March, up by 3.9GW from the year earlier. It plans to reach 130GW capacity by 2030 through a mix of conventional and renewable energy.

It is expanding thermal power capacity at a time when Indian private-sector utilities have largely stopped developing new coal-fired projects. Indian private-sector utilities, such as Tata Power and JSW Energy, have shifted from developing new thermal generation capacity to focusing on renewables.

NTPC also plans to step up its coal production to partly reduce a reliance on external supplies. It aims to raise coal output to 50mn t/yr over the next three years, up from 34.4mn t produced in 2023-24. It received a record 241mn t of coal in 2023-24, up by 7.6pc from a year earlier to meet rising demand. This also included 9.6mn t of imported coal, down by 34pc from a year earlier.

Government push

India's federal government plans to add about 80GW of thermal power generation capacity by 2031-32 to meet an anticipated increase in power demand, in a boost for future coal consumption.

The country's power demand has increased at an unprecedented rate because of its rapid economic growth. "India needs 24x7 power supply for growth and we are not going to compromise on its availability," India's power ministry said in November 2023. "This power cannot be achieved by renewable energy sources alone. Since nuclear capacity cannot be added at a rapid pace, we need to add coal-based thermal capacity." The ministry urged the power industry to plan for capacity additions over the next 5-7 years.

India will need to increase its coal-fired power generation capacity to 259.6GW by March 2032 from the current 211GW, according to the country's national electricity plan (NEP). The NEP, announced by the Central Electricity Authority (CEA) in May 2023, said India will need to raise its current coal-fired capacity to meet the country's projected peak electricity demand of 2,473.8TWh in 2031-32. The CEA also projects coal-fired capacity rising to 235.1GW by 2026-27.


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24/07/24

Repsol 2Q profit doubles but cash flow turns negative

Repsol 2Q profit doubles but cash flow turns negative

Madrid, 24 July (Argus) — Spanish integrated Repsol's profit more than doubled on the year in the second quarter, as lower one-time losses and better results in the upstream and customer divisions more than offset a weaker refining performance. But its cash flow turned negative as it completed the buyout of its UK joint venture with China's state-controlled Sinopec, raised investments and experienced weaker refining margins. Net debt was sharply higher, largely reflecting share buy-backs. Repsol has said it will acquire and cancel a further 20mn of its own shares before the end of the year, which will probably further increase its debt. It completed a 40mn buy-back in the first half of the year. Repsol's profit climbed to €657mn ($714mn) in April-June from €308mn a year earlier, when earnings were hit by a large provision against an arbitration ruling that obliged it to acquire Sinopec's stake in their UK joint venture. Excluding this and other special items, such as a near threefold reduction in the negative inventory effect to €85mn, Repsol's adjusted profit increased by 4pc on the year to €859mn. Repsol confirmed the fall in refining margins and upstream production reported earlier in July . Liquids output increased by 3pc on the year to 214,000 b/d, and gas production fell by 4pc to 2.1bn ft³/d. Adjusted upstream profit increased by 4pc on the year to €427mn. The higher crude production and a 13pc rise in realised prices to $78.6/bl more than offset lower gas production and prices, which fell by 6pc to $3.1/'000 ft³ over the same period. Adjusted profit at Repsol's industrial division — which includes 1mn b/d of Spanish and Peruvian refining capacity, an olefins-focused petrochemicals division, and a gas and oil product trading business — was down by 16pc on the year at €288mn. Profit fell at the 117,000 b/d Pampilla refinery in Peru after a turnaround and weak refining margins, and there was lower income from gas trading. Spanish refining profit rose on a higher utilisation rate and gains in oil product trading. Repsol's customer-focused division reported adjusted profit of €158mn in April-June, 7pc higher on the year thanks to higher retail electricity margins, a jump in sales from an expanded customer base, higher margins in aviation fuels and higher sales volumes in lubricants. Repsol swung to a negative free cash flow, before shareholder remuneration and buy-backs, of €574mn in the second quarter, from a positive €392mn a year earlier. After shareholder remuneration, including the share buy-backs and dividends, Repsol had a negative cash position of €1.12bn compared with a positive €133mn a year earlier. Repsol's net debt more than doubled to €4.595bn at the end of June from €2.096bn on 31 December 2023, reflecting the share buy-backs and new leases of equipment. By Jonathan Gleave Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Equinor 2Q profit supported by higher European output


24/07/24
24/07/24

Equinor 2Q profit supported by higher European output

London, 24 July (Argus) — Norway's state-controlled Equinor posted a small rise in profit on the year in the April-June period, as a lift in its European production offset lower gas prices. Equinor reported a profit of $1.87bn in the second quarter, up by 2.2pc on the year but down by 30pc from the first three months of 2024. The company paid two Norwegian corporation tax instalments, totalling $6.98bn, in the second quarter, compared with one in the first quarter. Equinor paid $7.85bn in tax in April-June in total. Its average liquids price in the second quarter was $77.6/bl, up by 10pc from the second quarter of 2023. But average gas prices for Equinor's Norwegian and US production fell in the same period by 17pc and 6pc, respectively. The company noted "strong operational performance and lower impact from turnarounds" on the Norwegian offshore, including new output from the Breidablikk field . Equinor's entitlement production was 1.92mn b/d of oil equivalent (boe/d) in April-June, up by 3pc on the year. The company cited "high production" from Norway's Troll and Oseberg fields in the second quarter, as well as new output from the UK's Buzzard field. But US output slid, owing to offshore turnarounds and "planned curtailments onshore to capture higher value when demand is higher", the company said. It estimates oil and gas production across 2024 will be "stable" compared with last year, while its renewable power generation is expected to increase by around 70pc across the same timespan. Equinor's share of power generation rose by 14pc on the year to 1.1TWh in April-June. Of this, 655GWh was renewables — almost doubling on the year — driven by new onshore wind capacity in Brazil and Poland. "Construction is progressing" on the UK's 1.2GW Dogger Bank A offshore windfarm , Equinor said. It is aiming for full commercial operations in the first half of 2025 at Dogger Bank A — a joint venture with UK utility SSE. Equinor was granted three new licences in June to develop CO2 storage in Norway and Denmark. The Norwegian licences — Albondigas and Kinno — together have CO2 storage potential of 10mn t/yr. The Danish onshore licence, for which Equinor was awarded a 60pc stake, has potential capacity of 12mn t/yr. Equinor has a goal of 30mn-50mn t/yr of CO2 transport and storage capacity by 2035. The company's scope 1 and 2 greenhouse gas (GHG) emissions amounted to 5.6mn t/CO2 equivalent (CO2e) in the first half of the year, edging lower from 5.8mn t/CO2e in January-June 2023. It also incrementally cut its upstream CO2 intensity, from 6.7 kg/boe across 2023, to 6.3 kg/boe in the first half of this year. Equinor has kept its ordinary cash dividend steady , at $0.35/share, and will continue the extraordinary cash dividend of $0.35/share for the second quarter. It will launch a third $1.6bn tranche of its share buyback programme on 25 July. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US House passes waterways bill


23/07/24
23/07/24

US House passes waterways bill

Houston, 23 July (Argus) — The US House of Representatives overwhelmingly approved a bill on Monday authorizing the US Army Corps of Engineers (Corps) to tackle a dozen port, inland waterway and other water infrastructure projects. The Republican-led House voted 359-13 to pass the Waterways Resources Development Act (WRDA), which authorizes the Corps to proceed with plans to upgrade the Seagirt Loop Channel near Baltimore Harbor in Maryland. The bill also will enable the Corps to move forward with 160 feasibility studies, including a $314mn resiliency study of the Gulf Intracoastal Waterway, which connects ports along the Gulf of Mexico from St Marks, Florida, to Brownsville, Texas. Water project authorization bills typically are passed every two years and generally garner strong bipartisan support because they affect numerous congressional districts. The Senate Environment and Public Works Committee unanimously passed its own version of the bill on 22 May. That bill does not include an adjustment to the cost-sharing structure for lock and dam construction and other rehabilitation projects. The Senate's version is expected to reach the floor before 2 August, before lawmakers break for their August recess. The Senate is not scheduled to reconvene until 9 September. If the Senate does not pass an identical version of the bill, lawmakers will have to meet in a conference committee to work out the differences. WRDA is "our legislative commitment to investing in and protecting our communities from flooding and droughts, restoring our environment and ecosystems and keeping our nation's competitiveness by supporting out ports and harbors", representative Grace Napolitano (D-California) said. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Idemitsu to start black pellet output in December


23/07/24
23/07/24

Idemitsu to start black pellet output in December

Tokyo, 23 July (Argus) — Japanese energy firm Idemitsu is planning to start black pellet production of 120,000 t/yr in Vietnam in December this year. Idemitsu has already completed construction of the black pellet plant in Vietnam's Binh Dinh province in July 2023 and is now carrying out test operations. The black pellets produced at this plant will be transported to Japan for consumers that include power generation companies operating coal and biomass co-firing. The Vietnamese plant is managed by Idemitsu Green Energy Vietnam, which has become a 100pc subsidiary of Idemitsu in March this year. Idemitsu is planning to increase its black pellet output to 300,000 t/yr within three years after the start-up of the first plant. It final target is 3mn t/yr by 2030 , with an aim to launch projects in Malaysia and Indonesia in addition to Vietnam. The company is also considering empty fruit bunches as feedstock for biomass fuels. Idemitsu has been carrying out studies of coal and biomass co-firing and confirmed that it is possible to burn 35pc of black pellets with coal. The company has provided utilities with samples for test runs. Black pellets also can be used in other sectors, such as steel mills and cement plants. Black pellets, which have a higher calorific value compared with typical white pellet biomass, are produced by the torrefaction of acacia and other feedstock. The advanced fuel has better water resistance and grindability than white pellets and can be used in a similar way as coal. By Takeshi Maeda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US House to vote on waterways bill


22/07/24
22/07/24

US House to vote on waterways bill

Houston, 22 July (Argus) — The US House of Representatives is expected to vote on 22 July on a waterways bill that would authorize new infrastructure projects across ports and rivers. The Water Resources Development Act (WRDA) is renewed typically every two years to authorize projects for the US Army Corps of Engineers (Corps). The bipartisan bill is sponsored by representative Rick Larsen (D-Washington) and committee chairman Sam Graves (R-Missouri). The full committee markup occurred 26 June, where amendments were added, and the bill was passed to the full House . A conference committee will need to be called to resolve the different versions of the bill. The major difference between the bills is that the House bill does not include an adjustment to the cost-sharing structure for the lock and dam construction and other rehabilitation projects. The Senate Committee on Environment Public Works passed its own version of the bill on 22 May, with all members in favor of the bill. The House version of the bill approves modifications to the Seagirt Loop Channel near the Baltimore Harbor in Maryland, along with 11 other projects and 160 feasibility studies. One of these studies is a $314.25mn resiliency study of the Gulf Intracoastal Waterway, which connects ports along the Gulf of Mexico from St Marks, Florida, to Brownsville, Texas. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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