Rising energy prices unsustainable: EU chief

 

Brussels, DEC 10: The EC president has touted renewables on Thursday as a way forward in dealing with unsustainable, rising energy prices in the EU block which she says is “way too dependent on gas.”

During her speech at the European Economic and Social Committee Plenary debate, Ursula von der Leyen said Europe’s future energy security “clearly depends on clean home-grown energy” and she called on member states to invest in renewable energy, support businesses and consumers through state aid and to cut energy taxes and bills.

Fossil fuels have become more and more expensive over the last years and this has impacted the EU which is highly dependent on gas, 90% of which is imported.

“Rising energy prices concern all of us. They tell us that we are way too dependent on gas. We have seen it in the last few weeks. Rising energy prices are because of rising gas prices. This is not sustainable,” she said.

To help deal with this issue in the medium term, she explained that the block is discussing a European strategy on gas reserves and the possibility of common procurement.

However, in the long term, she recommended that renewable energy, which has bucked the trend in rising energy prices, offers a solution for the block to become more energy independent by investing in home-grown renewable energies.

“It is better for the climate, it is better for the people, it is better for our resilience and our independence,” she said, adding that the EU has the necessary funds to make that possible.

The EU will invest round about €500 billion in the green transition as part of its NextGenerationEU, its Recovery Plan, and the EU budget, she said.

The EU plans to speed up the development of renewable energy in Europe, by assigning at least €36 billion to clean hydrogen, wind and solar energy investments in national recovery plans.

The EU chief also confirmed that over €50 billion has been earmarked for building renovations and energy efficiency due to intense energy loss in less energy-efficient buildings.

“I am sure that you agree with me that every Euro spent on renewables is not only good for the planet, but it is also an investment in affordable energy for households and businesses, and it is an investment in the resilience of our societies and economies,” she said.

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Courtesy Anews

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Pakistan accepts costliest-ever LNG cargo amid gas crisis

 

ISLAMABAD, NOV 7: Pakistan on Saturday accepted an LNG cargo at the highest-ever price of $30.6 per Million British Thermal Units (mmbtu) from Qatar Petroleum on the grounds of averting a possible gas crisis in the upcoming peak winter month.

The Pakistan LNG Limited (PLL) had floated emergency bids for two cargoes to be supplied in November, as the firms involved, Gunvor and ENI, had defaulted on their commitments.

The PLL has short- and long-term agreements with Gunvor and the ENI for one LNG cargo each every month, but both suppliers refused to honour their part of the agreements. As a result, the state-owned firm had to call a tender on emergency basis for two LNG cargoes for the months of December and January.

While the bids were called for cargoes to be supplied between Nov 19-20 and Nov 26-27, the PLL decided not to entertain the first bid for the middle of November.

PLL FLOATED EMERGENCY BIDS FOR TWO CARGOES AFTER GUNVOR AND ENI DEFAULTED ON THEIR COMMITMENTS

For the delivery in the last week of the current month — Nov 26-27 — the lowest tender was filed by Qatar Petroleum Trading at $30.65 per mmbtu, followed by Total Energies at $30.96 and Vitol Bahrain at $31.05 per mmbtu.

Sources in the Petroleum Division said the first tender for supply on Nov 19-20 was scrapped as the country was facing gas shortage in December.

Therefore, the lowest bidder for the supply on Nov 26-27 was Qatar Petroleum at $30.65 per mmbtu, as re-gasification and supply of LNG into the system would be done in December, the sources added.

The PLL has been facing criticism for lacking proper strategies and ensuring LNG supplies when its prices were low in the international market. At the same time the state-owned entities had restricted the private sector from importing LNG as it could challenge the monopoly enjoyed by the public sector.

“The government has already floated the policy to allow the private sector to import LNG for their consumption and sale to various industries and sectors, but some government departments are creating hurdles in the implementation of this policy,” said All Pakistan CNG Association Chairman Ghiyas Paracha.

He said the Petroleum Division and the Oil and Gas Regulatory Authority (Ogra) had to take notice of this situation because the national economy and most importantly consumers were suffering due to expensive imports.

“We fear that the price of Compressed Natural Gas (CNG) will go up by Rs8-9 per kg in December because of the single cargo being brought at the cost of $30.65 per mmbtu,” Mr Paracha added.

Though the impact would be faced by industries, it is unlikely that the government may increase gas rates for domestic consumers.

The move to allow the private sector to import LNG independently had been on the cards since 2011. After passing through various stages, Ogra, in December 2018, approved the gas network code for use of pipelines of the Sui Southern Gas Company and Sui Northern Gas Pipelines Limited by any third party. However, the third party would have to obtain licences from the regulator and other relevant authorities and pay the pipeline use charges to the companies.

In November 2020, the Cabinet Committee on Energy (CCoE) had stressed on creating competitive market in the gas sector to end the monopoly enjoyed by both the state-owned gas utility companies – SNGPL and SSGC – and called on the private sector to perform an active role.

However, the idea could not materialise due to lack of planning and approvals by the state-run gas utility firms.

Meanwhile, the PLL has recently floated a tender to allocate idle capacity of LNG terminals on short notice for the supply of LNG equivalent to 385 million cubic feet daily (mmcfd) gas for December, 240 mmcfd for January 2022 and 275 mmcfd for February 2022.

The last date to file the application to obtain idle capacity at the existing terminals is Nov 18. At the same time, the PLL has said the available re-gasification capacities may vary both on a daily and a month-average basis based on the available berthing slots and requirement of the PLL’s own customers.

Replying to the query about the offer by the PLL to utilise idle capacity at LNG terminals, one of the private sector-licensed importers said the time to respond was too short.

On the other hand, analysts believe that the whole system needs revamping as it is not easy to determine the demand on a long-term basis to assess the idle capacity at LNG terminals.

“There is a continuous demand from the power sector and there are other long-term customers, therefore, determining the idle capacity for a period of four to six months in advance seems difficult for the PLL,” Head of Research and Development at Pak-Kuwait Investment Company Samiullah Tariq said.

Pakistan LNG Limited (PLL) is a public-sector company and is a wholly owned subsidiary of Government Holdings (Private) Limited (GHPL) which is 100pc owned by the Government of Pakistan (GOP).

The PLL imports LNG at the LNG terminal located in Port Qasim and supplies regasified LNG (RLNG) into the network of gas utility companies.

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Courtesy Dawn News

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Zonergy puts renewable energy transformation at heart of sustainable future for Pakistan

ISLAMABAD, OCT 30: When people think about energy and development, especially in a developing country’s context, they typically think about providing access to electricity or fuel for clean cooking.

But renewable energy goes beyond and underpins all forms of development, and its contribution can be measured through a variety of indicators including jobs, agriculture production, economic growth, etc. 

Renewable energy also supports development by ensuring energy sovereignty, freeing up financial resources for infrastructure development, healthcare, education, among others.

Leading such an enormous change, Zonergy is pleased to place the dream of completely renewable energy within reach of businesses and sectors of all sizes across Pakistan. The company and their team of experienced technicians are committed to helping their community take the next step in the future by converting to green renewable energy.

The company's connection with Pakistan started with a $1.5 billion project. It is the world's largest centralized utility-scale PV power plant with a combined installed capacity of 900 megawatts, which is located in Bahawalpur, eastern Pakistan's Punjab province. 

As of the end of March this year, the cumulative generation capacity of the PV station reached 2.4 billion kilowatt-hours. This is enough to satisfy the electricity demands of more than 200,000 local households, the company figures show.

Pakistan’s economy is getting stronger, and it’s in large part thanks to the tremendous efforts of businesses and sectors adopting renewable energy. Over the same channel, Zonergy is pioneering the renewable energy future for Pakistan, attracting many industries with its performance and efficiency. 

Zonergy has recently completed the massive 520 KW Alfatah Rice Mill Project in Kasur drawing attention of other businesses to take part in green energy agenda.

With the signing of 500kW EPC Project in Balochistan, Zonergy has translated another promise of renewable energy into action and achieves another major milestone on its journey towards a clean, green Pakistan. This energy breakthrough in Balochistan is Government’s thrust on renewables and the target to build self-sustained state. 

With ever increasing energy costs due to IMF conditionalities, Government and local are turning towards renewable energy solution to uplift economy. Zonergy is taking lead in helping local industry and Government to meet growing demand at lowest cost. 

This is the right time for all to foray into solar energy, Zonergy’s solar project in Balochistan is both a significant step for the company towards a balanced energy portfolio and a giant leap towards better future for us a nation. 

“Economies across the world are gradually transitioning to cleaner energy sources and now is the time to invest in a better future”, said Richard Guo, President of Zonergy. “Government policies and investment choices can create the necessary momentum to enact systemic change and deliver the energy transformation away from fossil fuels. Driving a structural shift towards cleaner energy systems and more resilient economies and societies is more urgent than ever. Most of all, this is a global agenda, and we must leave no one behind."

Today, renewable energy sector is witnessing a positive momentum. The sector is committed to provide sustainable and affordable energy for all. Zonergy believes if Pakistan’s renewable potential is unlocked, it can transform the country’s energy architecture to be dominated by clean energy sources. 

Zonergy looks forward to continuing partnership with the Government, Stakeholders and people and thereby contributing to the country’s energy security. More important than this is that it’s not only about energy solutions but people, world and the future.

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Gas prices rise sharply as Russia refuse to sell more to Europe

MOSCOW, OCT 19: Russia opted against supplying more gas to Europe yesterday, sending prices rocketing again as it put further pressure on Germany to sign off on its controversial new Nord Stream 2 pipeline.

Gazprom, the Kremlin-controlled gas giant, refrained from booking extra volumes for gas transit via Ukraine for next month at an auction that traders watched for signs of increased supply.

The news sent wholesale gas prices in Europe up by 18pc.

It came shortly after Nord Stream 2 announced that the first of the project’s two lines from Russia to Germany had been filled with technical gas and was ready to go, pending German approval.

The moves fuelled further speculation that Moscow is contributing to an ongoing gas supply crunch in order to force through approval of Nord Stream 2, which has split Europe and faced resistance from the United States.

Critics say the new pipeline is a way to punish Ukraine for a conflict that began in 2014.

Ukraine is a major gas transit hub and could become obsolete once Nord Stream 2 is fully operational.

Russian President Vladimir Putin last week said Russia stood by its commitments to send gas through Ukraine at least until 2024.

But he suggested that the shabby state of the pipeline could potentially cause disruptions.

Global gas prices hit record highs earlier this month.

This came as markets grappled with an unexpectedly large demand from recovering economies amid a limited supply of gas.

Gazprom, which is majority state-owned, yesterday indicated that it was prepared to help Europe out – but only on its own terms.

The Russian gas monopolist said in a statement that the first branch of Nord Stream 2 has now been tested and is viable.

“There is enough pressure in the pipeline to start gas transit in future,” it said in a statement.

Russia has said it has limited capacity to respond to a growing demand for gas in Europe because its own domestic consumption is at a record high due to the cold autumn.

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Courtesy independent.ie

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Statement on recent developments in natural gas and electricity markets

ANKARA, OCT 18: The steep rise in European gas prices has been driven by a combination of a strong recovery in demand and tighter-than-expected supply, as well as several weather-related factors. These include a particularly cold and long heating season in Europe last winter, and lower-than-usual availability of wind energy in recent weeks.

European prices also reflect broader global gas market dynamics. There were strong cold spells in East Asia and North America in the first quarter of 2021. They were followed by heatwaves in Asia and drought in various regions, including Brazil. All of these developments added to the upward trend in gas demand.

In Asia, gas demand has remained strong throughout the year, primarily driven by China, but also by Japan and Korea. On the supply side, liquefied natural gas (LNG) production worldwide has been lower than expected due to a series of unplanned outages and delays across the globe and delayed maintenance from 2020.

“Recent increases in global natural gas prices are the result of multiple factors, and it is inaccurate and misleading to lay the responsibility at the door of the clean energy transition,” said IEA Executive Director Fatih Birol.

Going forward, the European gas market could well face further stress tests from unplanned outages and sharp cold spells, especially if they occur late in the winter. Gas storage levels in Europe are well below their five-year average but not markedly below their previous five-year lows, which were reached in 2017.

Based on the available information, Russia is fulfilling its long-term contracts with European counterparts – but its exports to Europe are down from their 2019 level. The IEA believes that Russia could do more to increase gas availability to Europe and ensure storage is filled to adequate levels in preparation for the coming winter heating season.

This is also an opportunity for Russia to underscore its credentials as a reliable supplier to the European market.

European electricity prices have climbed to their highest levels in over a decade in recent weeks, rising above 100 euros per megawatt-hour in many markets. In Germany and Spain, for example, prices in September have been around three or four times the averages seen in 2019 and 2020.

This increase has been driven by the surge in gas, coal and carbon prices in Europe. The strong rise in gas prices led electricity providers in a number of European markets to switch from gas to coal for power generation – a trend that would have been more pronounced if it had not been for the increase in the price of carbon emission allowances on the European market.

“Today’s situation is a reminder to governments, especially as we seek to accelerate clean energy transitions, of the importance of secure and affordable energy supplies – particularly for the most vulnerable people in our societies,” Dr Birol said. “Well-managed clean energy transitions are a solution to the issues that we are seeing in gas and electricity markets today – not the cause of them.”

The links between electricity and gas markets are not going to go away anytime soon. Gas remains an important tool for balancing electricity markets in many regions today.

As clean energy transitions advance on a path towards net zero emissions, global gas demand will start to decline, but it will remain an important component of electricity security. This is especially the case in countries with large seasonal variations in electricity demand.

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COURTESY iea.org

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