Mexican power outages enter fourth day

  • : Electricity, Metals, Natural gas, Oil products
  • 24/05/10

Mexican power grid operator Cenace issued its fourth consecutive day of operating alerts amid the heatwave gripping the country.

Net electricity demand reached 47,321MW early today, with deployed electricity capacity slightly below at 47,233 MW, according to Cenace.

Since 7 May, Cenace has declared emergency operating alerts as demand exceeded generation capacity during peak evening hours, prompting the grid operator to preemptively cut electricity supply across different states to maintain grid integrity.

Power outages have lasted up to several hours in Mexico City and in major industrial states as power demand has outstripped supply by up to 1,000MW. Peak demand this week hit 49,000MW, just below last year's historic peak of 53,000MW during atypical temperatures in June.

"We are very concerned about the unprecedented outages detected across 21 states, a situation that affects the normal functioning of Mexican companies," national business chamber Coparmex said.

Peak electricity demand typically rises in June-July but temperatures this week have risen as high as 48°C (118° F) across some states. Mexico City reported a record high of 34.3°C on 9 May and high temperatures are forecast to continue into next week, Mexico's national weather service said.

The inability of Mexico's grid to respond to increased demand is because of insufficient power generation capacity, non-profit think-tank the Mexican institute for competitiveness (Imco) said this week.

"Despite the energy ministry's forecast that 22,000MW of new power capacity would enter service by 2026, only 1,483MW had entered service as of 2022" since late 2018, Imco said.

President Andres Manuel Lopez Obrador's administration pledged to build new generation capacity, including five gas-fired, combined-cycle plants, but recognized this week that delays had contributed to the power outages.

"We have an electricity generation deficit because some of the combined-cycle plants were delayed, but we are working on it and it will soon be resolved," Lopez Obrador said on 9 May.

Lopez Obrador's government has also curtailed private sector power development during his administration.

Mexico needs to upgrade and expand its transmission network, industry associations say.

"In order to resolve this problem, we believe that a reopening of the electricity market to the private sector is imperative," Mexico's wind energy association, Amdee, said.

Mexico has 87,130MW of installed capacity, with 39.5pc from combined-cycle gas-fired power plants and 31pc in renewable power, including wind, solar, hydroelectric, geothermal and biomass, according to the latest statistics from the energy ministry.


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24/06/14

Venezuela to require appointments at some gas stations

Venezuela to require appointments at some gas stations

Caracas, 14 June (Argus) — Venezuelan drivers will need to schedule appointments in order to purchase gasoline from retail outlets selling government subsidized fuel, oil minister Pedro Tellechea told Argus on Friday. The subsidized gasoline is still inexpensive, at 2¢/liter, and plentiful, Tellechea said, despite drivers often waiting in line for hours for the fuel. But under a plan to modernize the stations selling the subsidized gas with new pumps and flat screen monitors, an appointment system will soon be required for purchases. Venezuela raised gasoline prices to 50¢/liter in 2020, to what the government has called a "international price," but then set aside stations meant just for members of the ruling party and other groups, where they could buy gasoline for much less. Today about 60pc of the country's 1,800 retail gas stations sell at unsubsidized prices. Half of Venezuela's gas stations will be refurbished this year, with pumps that can fill up an SUV in 20 seconds, supply 700 vehicles a day, and accept all forms of payment, Tellechea told reporters at a model station in Altamira, east Caracas, on Friday. "There aren't in South America gas stations right now just like the ones you are seeing today," he said. "Drivers won't have to wait in line at subsidized stations, they will have their appointments programmed to the second." Tellechea said Venezuelans are now using 95,000 b/d of gasolinebut he declined to say how much is being produced domestically. Tallecha said oil productionwas growing, reaching "above 950,000 b/d" on Friday, but that included about 40,000 b/d of condensates and natural gas liquids. By Carlos Camacho Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

FAA, EASA probe Boeing, Airbus Ti parts


24/06/14
24/06/14

FAA, EASA probe Boeing, Airbus Ti parts

Houston, 14 June (Argus) — The US Federal Aviation Administration (FAA) and the European Union Aviation Safety Agency (EASA) are investigating whether falsified documents were used to verify the authenticity of titanium used in parts manufactured by Spirit Aerosystems and others for Boeing and Airbus jets. The US probe arose after Boeing alerted the federal regulator that material was procured through a distributor "who may have falsified or provided incorrect records," the FAA told Argus . The FAA is looking into the scope and impact of the issue. The EASA was notified by the Italian Civil Aviation Authority (Enac) of the issue and has subsequently started an investigation to determine if the traceability issue also has safety implications, an EASA spokesperson told Argus . There is currently no evidence of a safety issue in the fleet, it added, but it will investigate the root cause and monitor new developments. "This is about titanium that has entered the supply system via documents that have been counterfeited," a Spirit spokesperson told Argus . Boeing added that the issue affected some titanium shipments received by a "limited set of suppliers," including its fuselage maker Spirit, and relates to a "very small number of parts" on any of its aircraft. Boeing declined to specify on which programs and for what components the titanium in question was used, but it said the correct titanium alloy was used. Affected parts were produced from 2019-2023, Spirit said. Boeing is removing suspect parts on its planes before delivering them to customers for compliance purposes, but confirmed its in-service fleet is safe to operate based on an internal analysis, it said. Airbus confirmed the airworthiness of its A220 aircraft after conducting "numerous tests" on parts coming from the same source of supply, and said it is working in close collaboration with its supplier, an Airbus spokesperson told Argus . Spirit removed the units from production and performed over 1,000 tests to ensure the "mechanical and metallurgical properties" of the titanium continued to meet airworthiness standards. Spirit supplies an array of parts to Airbus and Boeing including fuselages, pylons, and wing structures. Titanium alloys are typically used in engine components such as turbines and compressor blades, landing gears and fasteners. Aerospace companies including Airbus and Boeing earlier this year formed a coalition to help prevent unauthorized parts from entering the supply chain. It followed actions taken by CFM International, and its parent companies GE Aerospace and Safran Aircraft Engines, last years in response to engine parts sold by British distributor AOG Technics with forged documents. By Alex Nicoll and Samuel Wood Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Q&A: Phillips 66 to balance fossil and renewable fuels


24/06/14
24/06/14

Q&A: Phillips 66 to balance fossil and renewable fuels

Houston, 14 June (Argus) — With Phillips 66's Rodeo, California, refinery expected to ramp up to over 50,000 b/d of renewable fuels production by the end of this quarter, all eyes are on the refiner for what is next. Zhanna Golodryga , executive vice president of emerging energy and sustainability for Phillips 66, talked to Argus at the refiner's Houston headquarters about how the company looks at investments, its focus on sustainable aviation fuel (SAF) production and why Texas might be the Silicon Valley of the energy transition. The conversation has been edited for clarity and length. When Rodeo reaches full capacity, it will represent about 3pc of your overall output. What will your fleet look like longer-term and what will be the renewables/petroleum split? Not all the refineries in our portfolio are created equal, and when we look at them what I call them is "lower-carbon energy hubs". Not low, lower, because it's going to be a combination of everything. We're looking at the assets we have in the portfolio and what we can do to help bring in lower carbon solutions and what can we build out. Our focus is going to continue to be SAF. We understand the limitations of feedstocks and we have a very strong commercial organization that is now working on providing feedstocks just for Rodeo. But we're also thinking about what we can do to bring in different feedstocks. Energy transition opportunities aren't going to replace our traditional fossil fuel refining. It's an "and", not an "or". You've highlighted a future focus on SAF. Does that mean a move away from renewable diesel (RD)? I think we have flexibility to do both and it will be market driven going forward. We have to look at demand but there is demand for SAF globally, not just in the US. Demand for gasoline is not as strong as demand for diesel and sustainable aviation fuel. That is what our focus is and then we want to diversify the feedstock. What is your outlook for RD? I think RD is here for quite some time. It's hard to predict what's going to happen by 2050 but I think we will have the demand. It's going to take a long time to electrify all future transportation. I think we have a much better opportunity for now to focus on what we're really good at. That's fuels, renewable fuels. You have faced activist investor pressure calling for Phillips 66 to focus on its core refining business. How do investors feel about the Rodeo conversion and your future plans? We have taken a pragmatic approach to the energy transition. We have criteria that we follow prior to taking any projects over the line, specifically the energy transition type projects. They must meet five key prerequisites: the right returns, the right technology that has been proven at scale, the right regulatory environment, preferably involve a partnership and be done at the right time. We have to prove with Rodeo that this is, as I call it, our license to continue to grow the business. This is our license to operate additional energy transition business. This one is going to be done extremely well. What are the policy tailwinds and headwinds to your renewables investments? When we look at our opportunities in our energy transition portfolio, we are building our economic model for them to produce the right returns without any incentives. That is our starting point. On the other hand, the IRA [US Inflation Reduction Act] has been a bipartisan initiative and we think it's going to stand for the greater good of the planet. We have to think globally, as we have the Humber refinery in the UK. It's interesting for us to see what's possible in the US with the IRA incentives, versus more of a stick in Europe. But the challenge for us is permitting and timing. We probably could have brought Rodeo online sooner if we didn't have to wait for some permits. Our headquarters are in Texas and Texas is the "energy transition Silicon Valley". I'm repeating someone's words and those are the words of Bill Gates. But I believe that. We're perfectly positioned on the Gulf coast to go to the next phase and build something here. You've mentioned Phillips 66's 265,000 b/d Sweeny refinery in Old Ocean, Texas, as a low carbon energy hub. Does that mean it is a candidate for renewable fuel conversion or co-processing? It could be an option, maybe not at Sweeny, but in the Gulf coast, maybe Lake Charles. It's driven by our hardware, just like what we've done at Rodeo. By Nathan Risser Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

S Africa's ANC, DA agree to form government


24/06/14
24/06/14

S Africa's ANC, DA agree to form government

Cape Town, 14 June (Argus) — South Africa's African National Congress (ANC) and Democratic Alliance (DA) political parties today agreed to form a government while the first sitting of the new parliament was underway. The agreement, which includes the Inkatha Freedom Party (IFP), paves the way for ANC leader Cyril Ramaphosa to be re-elected president. The parties will assume various positions in government broadly in proportion to their share of seats. The government of national unity (GNU) agreement is the result of two weeks of intense negotiations after the ANC lost its long-held majority in the national election on 29 May. It secured 40.2pc of the vote, and the centre-right, pro-market DA retained its position as the official opposition with 21.8pc. The deal scuppers the possibility of an alliance between the ANC and the two largest left-wing parties, MK (uMkhonto weSizwe) and the Economic Freedom Fighters (EFF), which credit ratings agency Fitch warned could pose risks to macroeconomic stability . MK party unseated the EFF in the election to come third, winning 14.6pc of the vote. The EFF secured 9.5pc, and the IFP came a distant fifth with 3.85pc. The MK and EFF are populist parties that campaigned on agendas including wide-scale land expropriation without compensation, nationalisation of economic assets — including mines, the central bank and large banks and insurers — halting fiscal consolidation and aggressively increasing social grants. The GNU parties agreed the new administration should focus on rapid economic growth, job creation, infrastructure development and fiscal sustainability. Other priorities include building a professional, merit-based and non-partisan public service, as well as strengthening law enforcement agencies to address crime and corruption. Through a national dialogue that will include civil society, labour and business, parties will seek to develop a national social compact to enable South Africa to meet its developmental goals, they said. The GNU will take decisions in accordance with the established practice of consensus, but where no consensus is possible a principle of sufficient consensus will apply. By Elaine Mills Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Japan steps up effort to lower floating wind power cost


24/06/14
24/06/14

Japan steps up effort to lower floating wind power cost

Osaka, 14 June (Argus) — Japan is stepping up efforts to lower overall costs for offshore floating wind power generation, which can play a key role in boosting the country's renewable energy supplies. Japan's trade and industry ministry Meti and state-owned research institute Nedo said on 11 June that they have decided to support two pilot projects that will seek to bring down the overall costs for offshore floating wind power generation. Nedo plans to provide around ¥85bn ($539.8mn) from its green innovation fund over seven fiscal years from April 2024 to 31 March 2031. A consortium of nine Japanese companies led by Marubeni Offshore Wind Development, a wholly owned subsidiary of Japanese trading house Marubeni, has won a public tender to set up a project around 25km offshore south of Akita prefecture. The consortium plans to install two floating wind power facilities with capacity of over 15MW, targeting for operations to begin around autumn of 2029. Another consortium of five Japanese firms led by engineering firm C-Tech, a group company of utility Chubu Electric Power, is planning to build a floating power generator with over 15MW of capacity offshore Aichi prefecture. The projects assume relatively large capacity deployments of more than 10MW and aim to establish commercial technology for offshore wind to become globally competitive cost-wise by 2030. The project winners should set a cost target, referencing the US' cost target of $0.045/kWh by 2035, according to the government's wind power auction guidelines. This cost reduction is needed to accelerate a rollout of floating wind power facilities and help Japan achieve its 2050 net zero emission goal. Japan's purchase cost for electricity generated by offshore floating power facilities is set at ¥36/kWh for the April 2024-March 2025 fiscal year under the country's feed-in-tariff and feed-in-premium schemes. This can be compared with the lowest contract price of ¥3/kWh for bottom-fixed offshore wind projects in the latest public auction in December 2023, with the auction having secured a total of around 1.8GW bottom-fixed offshore wind capacity. Japan is aiming to install 23.6GW of wind power capacity by 2030, including 5.7GW offshore and 17.9GW onshore. It is eyeing the development of offshore wind farms, especially by promoting floating technology, given the country's geographical constraints. Tokyo aims to have offshore wind projects of 10GW by 2030 and 30-45GW by 2040. Tokyo has agreed to new legislation that will allow wind power facilities to be built in its exclusive economic zone, beyond its territorial and internal waters regulated under current laws, while striving to protect the marine environment. It is aiming to pass the amended legislation in an ordinary parliament session that will end on 23 June. Japan is under pressure to boost renewable power capacity to spur decarbonisation because the future of its nuclear industry is still unclear. But rising intermittent output from renewables will also prompt the country's power producers to secure sufficient thermal power capacity, including gas and coal, to help adjust power imbalances. Tokyo aims to generate 41pc of its electricity from thermal fuels in the April 2030-March 2031 fiscal year, which is higher than 36-38pc for renewables, under its current basic energy policy, which is due for a review this year. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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