New York approves ConEd storm hardening plan

: Electricity, Natural gas
15/02/06

ConEdison of New York will invest nearly $375mn this year to make its electric and natural gas distribution systems more storm-hardened and resilient under a plan state utility regulators approved this week.

The utility is making the investments to reduce the risk of the types of electric systems outages that hit New York City and other parts of the state in November 2012 in the wake of Superstorm Sandy. That storm flooded some substations and other grid infrastructure, causing electrical outages for more than two million people in the state.

ConEdison under the storm hardening plan will spend about $294mn this year on its electrical systems. The company plans to protect 16 substations from flooding and storm surges with reinforced perimeters, flood walls and raising the height of critical equipment above ground level. The New York Public Service Commission approved the storm hardening plan yesterday.

The utility will spend about $52mn this year to protect its natural gas systems by replacing gas mains in flood zones, installing remotely operated valves and hardening tunnels. It also will spend nearly $28mn to improve the resiliency of its steam generating systems used for heating.

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25/12/19

Australia needs electricity carbon policy: Commission

Sydney, 19 December (Argus) — The Australian government should introduce a national market-based policy to drive electricity sector decarbonisation, potentially modelled on the existing safeguard mechanism, economic research and advisory body the Productivity Commission (PC) said in a final report today. The PC had previously recommended applying the safeguard mechanism to electricity generators at the facility level, but it may be better to consider this issue separately, it noted in a final inquiry report into "investing in cheaper, cleaner energy and the net zero transformation". "Multiple policy options will need to be considered for the electricity sector, and even if a baseline-and-credit scheme is preferred, it may be better to keep this separate from the safeguard mechanism, at least at first, to avoid risks of uncertainty and disruption in the carbon credit markets that support that policy," the PC said. Currently there is little relationship between the emissions intensity of Australia's remaining coal-fired power plants and their announced retirement dates, according to the commission. Recognising the value of emissions reduction would pave the way for more emissions-intensive plants to retire earlier, it argued. Electricity excluded from safeguard mechanism Under the safeguard mechanism, facilities emitting more than 100,000t of CO2 equivalent (CO2e) in a compliance year across several sectors earn safeguard mechanism credits (SMCs) if they report scope 1 emissions below their baselines, and must surrender SMCs or Australian Carbon Credit Units (ACCUs) if their emissions are above the threshold. The electricity sector, Australia's largest emitter, is effectively excluded from the mechanism because the emissions reduction policy for the segment has been focused on renewable electricity targets. The mechanism applies a single sectoral baseline of 198mn t CO2e/yr across all electricity generators connected to Australia's main electricity grids, which is way above recent data — emissions from the electricity generation sector reached a combined 138.9mn t CO2e in the 2023-24 compliance year. A decision on whether to expand the mechanism to electricity may be considered in the upcoming safeguard mechanism review in 2026-27 . NEM review But any new policy will need to complement reforms arising from the National Electricity Market (NEM) review, which also received a final report this week . The decision will also need to be consistent with several policies and agreements already in place to support new investment or manage the exit of coal plants across Australia, the PC noted. While the existing Capacity Investment Scheme (CIS) and the proposed Electricity Services Entry Mechanism (ESEM) scheme mainly target renewable output or capacity, a least-cost emissions-reduction policy would help companies deciding when to retire coal and gas plants, according to the commission. This will be even more important if the Australian government prioritises firming auctions, which may support new gas-fired plants. Emissions policy uncertainty has been a major barrier to investment in gas-powered generation, the PC said. "Firming auctions will be more effective if project proponents know in advance how their emissions will be treated," it noted. Apart from a policy to drive electricity sector decarbonisation, the PC's final report urges the government to expand the safeguard mechanism , phase out fuel tax credits for on-road heavy vehicle operators, and reduce barriers to adopting low-emissions technology for heavy vehicles. And it also calls the government to phase out the fringe benefits tax exemption for electric vehicles (EVs), a recommendation that was criticised by industry body EV Council . By Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

W Australia's gas surplus outlook strengthens: Aemo

25/12/19

W Australia's gas surplus outlook strengthens: Aemo

Sydney, 19 December (Argus) — The Australian Energy Market Operator (Aemo) is forecasting a bigger gas supply surplus in Western Australia (WA) for most of 2026-30, according to its 2025 WA Gas Statement of Opportunities (GSOO) report released today. Aemo now projects that both gas supply and demand will be lower than previously expected in the period, because of cutbacks at major industrial users and downward revisions to its production forecasts. But its demand revisions were larger than its supply revisions, increasing its projected surplus. The state's gas supply will exceed demand over most of that period, except in 2028 and 2030 (see table) . It has increased its projections for the size of the surplus compared with those in its 2024 WA GSOO report. Supply side Aemo cut its WA gas supply forecast because of delays, gas reserve depletions, and decreased expected production at the Gorgon, Scarborough, and Pluto projects, it said. The market operator previously expected Australia producer Strike Energy to open its 87 TJ/d (2.3mn m³/d) West Erregulla project in 2026. But Strike only aims to make a final investment decision on the project in July-December 2026 , later than originally anticipated . Strike's West Erregulla delay lowered WA's expected gas production by 52 TJ/d in 2027 and 63 TJ/d in 2028, Aemo said. Aemo has also cut its production expectations for the Scarborough and Pluto gas fields by up to 24 TJ/d in 2030, it said. Australian developer Woodside Energy aims to process 7mn t/yr of Scarborough gas and 3mn t/yr of Pluto gas from early 2027, it said in November. Workers building a 5mn t/yr LNG train at the Pluto LNG terminal plan to launch a strike on 6 January. Their current enterprise bargaining agreement with Australian engineering firm Bechtel will expire on 19 December, Argus understands. Planned maintenance and lower utilisation at the Gorgon project contributed to a 16 TJ/d cut to Aemo's forecasts, it said. The project's owners — which include Chevron, ExxonMobil, Shell, Osaka Gas, Tokyo Gas and Jera — will modify its three-train Gordon LNG terminal as part of a A$3bn ($1.98bn) project, it said in December. Reserve downgrades and depletions at the Walyering, Beharra Springs, Macedon, and Varanus Island fields mostly account for the rest of the supply revisions, Aemo said. The Walyering and Beharra Springs field reserve downgrades cut Aemo's WA supply forecast by 5 TJ/d in 2026 and 23 TJ/d in 2029, it added. Demand side The closure of nickel mining and alumina refining operations cut Aemo's 2026-30 demand forecast, the operator said. But demand will still rise over that period, from 1,085 TJ/d in 2026 to 1,295 TJ/d, because of new mining and processing activity, it said. US producer Alcoa opted to permanently close its 2.2mn t/yr Kwinana alumina refinery on 30 September , after it paused the site in July 2024. It has not announced a full closure timeline yet, Alcoa Australia president Elsabe Muller told Argus at the time. Australian miner IGO has also paused its Forrestania and Cosmos nickel projects over recent years. Multiple developers including Australian producers Iluka Resources , Cobalt Blue , and RZ Resources will develop critical mineral mining or processing projects in WA over the coming years. By Avinash Govind WA projected gas surplus TJ/d Year Surplus (2024 WA GSOO) Surplus (2025 WA GSOO) 2026 4 54 2027 5 20 2028 -12 -89 2029 5 132 2030 -2 -11 *GSOO refers to Gas Statement of Opportunities Source: Australian Energy Market Operator Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Energy Transfer halts plans for Lake Charles LNG

25/12/18

Energy Transfer halts plans for Lake Charles LNG

Houston, 18 December (Argus) — US midstream firm Energy Transfer is suspending development of its planned 16.5mn t/yr (2.2 Bcf/d) Lake Charles LNG export terminal in Louisiana to focus on natural gas pipeline expansions, the company said today. The pivot allows the company to reallocate capital to gas pipeline projects that provide "superior risk/return profiles", Energy Transfer said. The company separately said it will increase the capacity of its planned Desert Southwest expansion of the Transwestern pipeline, allowing it to move more gas from west Texas' Permian basin to the southwestern US. The decision to scrap Lake Charles LNG follows a month of dissonance from company executives about moving forward with the facility. Energy Transfer co-chief executive Mackie McCrea told investors in early November that the company would not be able to reach a final investment decision (FID) until it sold off 80pc of equity shares in the project. But Amy Chen Davis, vice president of Lake Charles LNG, told an industry event on 10 December that the company was in talks with potential partners and would reach a final decision in early 2026. The company said earlier this year it planned an FID by the end of 2025. The midstream firm has sought for years to convert the existing Lake Charles import facility into an export terminal. Shell signed on with a 50pc stake in 2019 but pulled out the following year as part of cost-cutting measures during the Covid-19 pandemic. McCrea had signaled to investors that the company was being cautious with entering the LNG export industry. "When you're chasing billions of dollars in projects, several of which we've already announced, we've got to be careful stepping out on something like this," McCrea said on 5 November. "We're not an LNG company like we compete with. We're a pipeline company that has a regas facility converting part of it to LNG." Investor MidOcean Energy had signed a preliminary agreement to fund 30pc of Lake Charles LNG's construction costs in exchange for 30pc of offtake, but the firms never finalized the deal. Suspension of the project also may set back the efforts of Saudi Aramco, which holds a 49pc stake in MidOcean, to develop an LNG portfolio. MidOcean has a share in Peru's 4.45mn t/yr Pampa Melchorita LNG export plant and the Shell-led 14mn t/yr LNG Canada export terminal in British Columbia. Pipeline project in focus Meanwhile, Energy Transfer said it will upsize capacity on the Desert Southwest expansion. The company said it will increase the expansion's capacity by 800mn cf/d to 2.3 Bcf/d to satisfy additional demand in the southwestern US. Energy Transfer reached an FID on Desert Southwest in August. The expansion is one of several projects working to increase gas transportation capacity out of the Permian, where a steady increase in crude-driven activity — and commensurate rise in associated gas output — has outpaced the increase in gas takeaway capacity. This has created a local gas supply glut and some of the lowest gas prices in the US. By Tray Swanson Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US House passes bill to expedite permitting

25/12/18

US House passes bill to expedite permitting

Washington, 18 December (Argus) — The US House of Representatives on Thursday approved a bill designed to fast-track permitting for energy projects and reduce related litigation risks. But a last-minute change Republicans made to exclude some offshore wind and solar projects led some Democrats and a major clean energy group to withdraw support, complicating the bill's chances of passage in the Senate. The Republican-controlled House voted 221-196 to pass the SPEED Act, with 11 Democrats crossing the aisle to vote for what would be the most significant changes to federal permitting in years. The bill will now advance to the US Senate, where proponents will likely need to agree to make significant changes if they hope to pick up the votes of at least seven Democrats to avoid a filibuster. The bill "finally brings common sense by cutting red tape that dramatically increases the cost and, in some cases, just makes it economically unfeasible to do projects", House Republican majority leader Steve Scalise (R-Louisiana) said. The SPEED Act focuses on revising project reviews under the National Environmental Policy Act (NEPA), which is a source of delay and litigation risk for pipelines and renewable projects alike. The bill would require federal agencies to narrow those reviews and uphold those decisions even if federal courts find them to be inadequate. The bill would also provide permit "certainty" by limiting the government's ability to rescind prior approvals, averting a repeat of events like the cancellation of the Keystone XL pipeline. "We applaud the House for advancing the SPEED Act, a bipartisan, commonsense step toward fixing a federal permitting system that's long been broken," oil industry group the American Petroleum Institute said. Republican leaders were hoping 30-40 Democrats would join them to support the SPEED Act. The bill had broad bipartisan support when it was drafted because of provisions meant to prevent permitting delays that have plagued both oil and gas pipelines and renewable energy development. But Republican leaders, to satisfy far-right conservatives, made a change to the bill earlier this week that would prevent its expedited permitting procedures from benefiting any project that Trump's administration has blocked or revisited since 20 January. The Trump administration has targeted multiple offshore wind and solar projects this year and has ordered the developer of the nearly complete 704MW Revolution Wind project off the coast of Rhode Island to stop construction. That change fractured a bipartisan coalition that had spent months working on technology-neutral permitting language. The American Clean Power Association, the largest industry group for US renewable energy, on Wednesday withdrew its support of the bill , arguing the "poison pill amendment" that Republicans made eviscerated bipartisan language that gave expedited permitting treatment for all types of energy resources. A number of House Democrats who had backed the bill also withdrew their support. American Clean Power plans to work with both parties in the Senate to make changes. "This is not the final draft," representative Scott Peters (D-California) said during floor debate Thursday, vowing to work with his colleagues in the Senate to address House Democrats' concerns. By Chris Knight and Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Ithaca first to try new UK North Sea regime

25/12/18

Ithaca first to try new UK North Sea regime

London, 18 December (Argus) — UK-listed upstream producer Ithaca Energy has begun the approval process for a development in the North Sea, the first since the government softened its approach to the region. Ithaca has submitted a development summary and environmental statement for the Fotla field to the offshore regulator Opred. It outlines a two-well tie-back to the Britannia platform, which processes liquids from the Greater Britannia Area, including Ithaca's Alder field. Ithaca indicates that if the process is successful, drilling will begin in the first half of 2027, with first oil in the final quarter of that year. This is the first submission of an offshore proposal since the UK government published its 'North Sea Future Plan' alongside its budget in late November. That enables "limited oil and gas production in areas that are already part of an existing field, or in areas adjacent to already licensed fields, linked via a tieback, to help ensure they remain economically viable". Developers are not permitted to explore for oil and gas at these sites, and a ban remains on new oil and gas licensing. London's stance on North Sea development has delayed the Rosebank project, in which Ithaca holds a 20pc stake, and the company's west of Shetland Cambo project. Ithaca expects its production to average 119,000-125,000 b/d of oil equivalent (boe/d) this year. By Ben Winkley Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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