Genesis secures more gas to curb New Zealand shortages
New Zealand upstream firm and utility Genesis Energy has secured emergency gas supplies for its dual gas- and coal-fired Huntly power station on the North Island.
Genesis has secured 3.2PJ (86mn m³) of gas to allow the 400MW No.5 unit at Huntly to reach full capacity for the first time this winter, it said on 13 August, describing the electricity grid as facing "unprecedented pressure".
An agreement has been reached with Canadian methanol manufacturer Methanex, which will shut its Motunui plants in the North Island's Taranaki province until the end of October to allow for more gas-fired power generation, Genesis said.
The commercial arrangements regarding the gas transfer are structured to provide Methanex with a base price for each unit of gas delivered, with further incremental value shared between the parties depending on electricity pricing over the period, it said on 12 August. Methanex's 1.72mn t/yr plant in Motunui has paused production in the past, also diverting feedstock natural gas to support electricity generation in the winter of 2021.
The 953MW Huntly — New Zealand's largest power station by capacity and the country's only coal-fired unit, has been under significant strain as dry, cold conditions have led to increased demand during winter as hydroelectricity inflows remain low. New Zealand has also experienced light winds cutting expected wind-powered generation this winter, with Genesis planning coal imports for the first time since 2022 in response to lower domestic gas output and rapidly falling coal stocks.
LNG imports investigated
New Zealand energy minister Simeon Brown told parliament on 7 August his administration was investigating two separate options to ease the gas shortfall in the short to medium term.
Industry body the Gas Industry Company (GIC) is studying the feasibility of importing LNG, while also considering policies to increase investment in flexible gas-fired generation, Brown said. Data from upstream firms released earlier this year show a significant drop in proven plus probable reserves, falling from 1,635PJ to 1,300PJ, he added.
Gas production into open access pipelines was 58.8PJ during January-June, GIC said in its April-June quarterly report, 20pc down on 73.7PJ a year earlier, while gas-fired power demand grew by 10pc against April-June 2023.
New Zealand's National Party-led government is aiming to overturn a 2018 ban on new oil and gas exploration with legislation to be introduced to parliament later this year.
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India’s energy transition hinges on power sector
India’s energy transition hinges on power sector
Mumbai, 17 September (Argus) — India's rapid economic growth has led to surging power demand, which the country aims to meet through expanded renewable energy capacity. But for now, coal remains firmly in its energy mix. Indian GDP grew by 6.7pc last year, according to energy watchdog the IEA, with emissions growing at a slightly faster 7pc, or about 190mn t, to 2.8 gigatonnes of CO2. Accelerating the transition to cleaner power generation is imperative for the country to meet its development and climate goals. But it is still heavily reliant on coal for energy security. India's coal-fired capacity stands at almost 218GW for the 2024 fiscal year, according to government think-tank Niti Aayog, accounting for a 49pc share of the country's total installed power mix. And it aims to add 80GW more coal-fired capacity by April 2031-March 2032. Coal-based power makes up 94pc of India's thermal power generation at present, and is likely to account for at least a 60pc share by 2030, reducing only slightly to 50pc by 2040, state-controlled producer Coal India business development director Debasish Nanda says. India's thermal power generation also includes natural gas, naphtha and diesel. India and more than 200 other countries reiterated a pledge to accelerate "efforts towards the phase-down of unabated coal power" at the UN Cop 28 climate summit in Dubai last year. To reduce its reliance on coal, the Indian government has outlined plans to become a gas-based economy. It aims to increase the share of gas in its energy mix to 15pc by 2030 from about 6pc in 2022. And it plans to expand its renewable energy capacity to 500GW by 2030 from 197GW now. Solar power currently makes up the highest share of this, with 43pc or 81GW, followed by wind power with 46GW. India is set to add a further 6GW of solar-based capacity and 1.2GW of wind-based power by March 2025, according to Niti Aayog. The power sector accounted for more than half of the increase in India's total emissions in 2023, the IEA says. Accelerating the transition is essential, but progress in individual states is highly uneven, according to a report by US-based think-tank the Institute of Energy Economics and Financial Analysis and UK think-tank Ember. States such as Karnataka and Gujarat have effectively integrated renewable energy into their power sectors, but others have not. India has many central and state-level policies to encourage energy independence, but implementation has not been adequate or transparent, the report says. Power move Firms are taking steps to boost renewable capacity. India's largest power producer, NTPC, primarily relies on coal but its 2032 plan to become a major diversified energy supplier includes renewable and nuclear power generation, chairman and managing director Gurdeep Singh says. It expects to have about 60GW of renewable energy capacity by 2032, and is looking to add 10GW of nuclear capacity, with an additional 4GW in a joint venture with a nuclear power corporation, Singh says. India also aims to electrify as much of its industrial sector as possible. State-controlled power transmission company Powergrid has set a target to meet 50pc of its internal energy needs through renewables by 2025 and achieve net zero emissions by 2047. Industry experts predict India's energy-related emissions are likely to increase up to 2028 and recede thereafter. But funding still poses a challenge, especially for a country so large. India earlier this year submitted to UN climate body the UNFCCC a call for developed countries to provide at least $1 trillion/yr in climate finance to developing countries from 2025, in reference to the so-called new collective quantified goal. The government says India alone requires $70bn-80bn/yr to fund its green energy goals. By Rituparna Ghosh and Prethika Nair CO2 emissions by sector, India, 2021 India power capacity sources Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
East Timor takes stake in Bayu-Undan gas field
East Timor takes stake in Bayu-Undan gas field
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Washington voters waver on GHG repeal: Poll
Washington voters waver on GHG repeal: Poll
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