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Russia backs Cuba thermal power projects

  • Market: Electricity, Natural gas, Oil products
  • 21/10/15

Cuba's state-run utility UNE and Russian state-run power company Inter Rao pledged to start development of 800MW in new thermal generating capacity at two Soviet-era complexes in first quarter 2016, Cuban officials told Argus today.

The $1.6bn project has received a $1.36bn loan from the Russian government, and Cuba will provide the remaining funds, the officials said. The venture was agreed during a July 2014 visit to Cuba by Russian president Vladimir Putin.

The project involves three 200MW plants at the East Havana complex in the capital Havana, and a 200MW unit at the Maximo Gomez complex in Mariel, 40km west of Havana.

A date for commissioning of the plants "will be determined when construction begins," one official said. "These facilities will be designed to burn diesel and natural gas, allowing flexibility that will take advantage of variations in the availability and prices of the fuels."

The fuel source "will be subject to discussion by the parties, but we hope eventually that all the oil and natural gas for power generation will be produced locally."

Cuba produces around 50,000 b/d of liquids and 20,000 boe/d of gas from onshore and shallow water reservoirs. The island imports around 80,000 b/d of oil from Venezuela on preferential terms.

The domestic gas is used for power generation by the Energas consortium that is jointly owned by UNE, state-run oil company Cupet and Canada's Sherritt International. Energas has 506MW of Cuba's total operational generating capacity that UNE puts at 3,680MW. Sherritt International is the only foreign investor in Cuba's power sector.

In past years, Cupet has floated a proposal to import LNG for power generation through Cuvanpetrol, a Cuban-Venezuelan energy joint venture, at Cienfuegos on the southern coast, but the concept has not gained traction.

Cuba hopes to restart its stalled search for oil and gas in its waters in the Gulf of Mexico, Cupet said.

Spain's Repsol, Venezuela's PdV, Malaysia's Petronas and Russia's Gazpromneft were among foreign companies that failed to find commercial quantities of oil under a Cuban exploration campaign that ended in 2012 when the firms encountered dry holes.

The Maximo Gomez power complex was built by the Soviet Union and inaugurated in 1963. It was expanded in 1982 to rated capacity of 600MW, but has been subject to frequent breakdowns. Its capacity is now 320MW.

The East Havana plant was also built by the Soviet Union, and was planned with capacity of 1,200MW, but only three 100MW units were installed, and the facility's operating capacity is now 170MW.

This is the second agreement between Inter RAO and UNE to expand the Maximo Gomez complex. The companies created the Generación Mariel joint venture in 2009 that was to upgrade 400MW of the station's generators and add 200MW of new capacity. The project was never started.



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08/08/24

Australia’s 1H large-scale renewable approvals rise

Australia’s 1H large-scale renewable approvals rise

Sydney, 8 August (Argus) — Australia's Clean Energy Regulator (CER) approved 24pc more large-scale renewable energy capacity in this year's first half compared with a year earlier, while large-scale generation certificates (LGCs) held in the local registry also increased. The CER approved 1,175MW under the Large-scale Renewable Energy Target (LRET) scheme over January-June, up from 949MW in the same period of 2023 and the highest for a first half since 2020 when 2,146MW was accredited, CER data show. Total approved capacity in 2023 reached 2,206MW , slightly above 2022 but almost half of the record highs of 4,110MW in 2019 and 4,070MW in 2020. LRET-accredited plants can issue LGCs and sell them to liable entities under Australia's Renewable Energy Target, mainly electricity retailers that need to surrender the certificates to the CER on an annual basis. LGCs can also be sold to companies and individuals looking to support their emissions reduction claims. Total LGCs in the local renewable energy certificate registry reached 28.45mn at the end of June this year, or the equivalent of 28.45TWh, with each certificate representing 1MWh of renewable power. This is up from 24.66TWh in the same period of 2023, according to CER data. Accounts held by major utilities including Origin Energy, Alinta Energy, AGL and EnergyAustralia were among the largest LGC holders at the end of the first half of the year ( see table ). Total operational accredited capacity under the LRET reached 20,971MW in June. The CER also reported 7,853MW of committed capacity from large-scale renewable projects that received all development approvals and reached a final investment decision by the end of the first half. There was also 4,391MW of "probable" projects, or those that have announced power purchase agreements with strong counterparties or provided other evidence of funding. By Juan Weik Australia top 10 LGC account holdings* Origin Energy 4,247,730 AquaSure 1,772,066 Alinta Energy - GreenPower account 970,732 AGL HP2 933,377 EnergyAustralia 916,174 Synergy 843,747 Stanwell 719,831 Alinta Energy 652,988 Origin Energy - GreenPower account 635,489 Snowy Hydro - GreenPower account 628,376 Source: CER * as of 30 June 2024 Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Utah power plant takes Illinois basin coal


06/08/24
News
06/08/24

Utah power plant takes Illinois basin coal

New York, 6 August (Argus) — The Intermountain Power Project (IPP) in Utah further diversified its coal supply earlier this year to offset output declines from coal mines in the state. The plant took 12,315 short tons (11,351 metric tonnes) of coal from Alliance Resource Partners' Gibson mine in Indiana in April, operating data collected by the US Energy Information Administration (EIA) shows. It also has taken 270,824st of Powder River basin (PRB) coal from Arch Resources' Black Thunder mine in Wyoming, extending a trend started in 2023 as Utah coal supply was in earlier stages of dwindling. April's delivery of coal from the Gibson mine was the first time since at least 2008 that IPP has taken coal from the Illinois basin. Coal mined east of the Mississippi River typically does not travel west at least partly because of logistics challenges. It takes at least two railroads to take coal from the Illinois basin to Utah, and not all power plants can do that. According to EIA data, no other power plants in Utah and Colorado took any Indiana-sourced coal in at least ten years. IPP declined to comment on whether it will continue to take Illinois basin coal. Alliance Resource Partners did not respond to requests for comment. The coal received from the Gibson mine in April was part of a test burn. It is a higher heat content coal than the PRB supply and closer to what Utah producers produce, but also higher sulfur than coal from the PRB and Utah. Prior to last year, IPP only took coal from Wyoming, Colorado and Utah. IPP started receiving PRB coal in March 2023 as Utah coal producers struggled to meet contractual commitments. It also took coal from Colorado in 2023. Utah coal producers still are not supplying what they had previously agreed to, according to people familiar with the situation. This has forced IPP to idle one of its two generating units during non-peak seasons and to look further afield for fuel supply. Output from the Uinta basin dropped to a 38-year low in the second quarter partly because American Consolidated Natural Resources' Lila Canyon mine, which incurred a fire in September 2022, was closed in January. Wolverine Fuel's Skyline #3 - the largest active mine in Utah – decreased output by 71pc to 244,377st in the second quarter because of the longwall move. The delivery from the Gibson mine in April represents a fraction of that mine's output. In the first half of this year, the mine produced 2.89mn st, up from 2.67mn st a year earlier, MSHA data show. IPP's demand for PRB and Illinois basin coals may be short-lived. The power plant's owners expect to switch to natural gas in mid-2025, after operator Intermountain Power Agency (IPA) completes construction of an 840MW gas unit in 2025. IPP's largest customer, the Los Angeles Department of Water and Power, is required by the state law to stop using coal-fired generation by 2026. IPA declined to comment on fuel purchasing. In the first five months of 2024, IPP took 888,378st of coal from Colorado and Utah coal mines, according to EIA. That is up from 766,705st IPP has taken from the states' mines during the same five months last year. Shipments of PRB coal also increased compared with January-May 2023, when they had totaled 138,030st. By Elena Vasilyeva Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Harris selects Minnesota's Walz as running mate


06/08/24
News
06/08/24

Harris selects Minnesota's Walz as running mate

Washington, 6 August (Argus) — Democratic presidential candidate Kamala Harris has picked Minnesota governor Tim Walz (D) as her running mate, elevating a Midwestern voice who has championed ambitious policies on climate change and clean energy during his two terms as governor. Walz, who was a schoolteacher before serving in the US Congress and then as governor, only recently emerged on the national stage as a favorite of progressives who could take on Republicans. Harris said she chose Walz as her running mate based partly on his "convictions on fighting for middle class families" and his efforts to deliver for "working families like his own." Harris will appear with Walz today at a rally in Philadelphia, Pennsylvania, in the first event the campaign says will be a "five-day barnstorm" to introduce the Democratic ticket to voters in battleground states. The Harris campaign today touted Walz's service in the military and election in a conservative-leaning district as a sign of his broader political appeal. In 2021, Walz made Minnesota the first state in the Midwest to adopt California's tailpipe standards, and last year he signed a law requiring Minnesota utilities to switch entirely to wind, solar and other carbon-free electricity sources by 2040. Walz signed a separate law in June that would expedite the state's permitting process for renewable power projects. The campaign for Republican nominee Donald Trump today said Walz was a "West Coast wannabe" who as governor replicated California's policies on the environment. "From proposing his own carbon-free agenda, to suggesting stricter emission standards for gas-powered cars and embracing policies to allow convicted felons to vote, Walz is obsessed with spreading California's dangerously liberal agenda," Trump campaign press secretary Karoline Leavitt said. Minnesota does not produce any crude or natural gas and has no coal mines. As of 2022, coal-fired power plants represented 27pc of Minneosta's in-state electricity generation, nuclear generated 24pc of electricity and renewable resources supplied 31pc of electricity. Minnesota is the fifth-largest ethanol producer in the US and has a production capacity of 1,400mn USG/yr. Environmentalists applauded Walz's selection as a running mate who has sought ambitious policies related to climate change and clean energy, in addition to signing a law last year providing $2bn for environment, climate and energy. The Harris-Walz ticket "isn't afraid to tackle climate change head-on," Sierra Club executive director Ben Jealous said. Harris' vice presidential selection meant passing over Pennsylvania governor Josh Shapiro (D), who was also being vetted as someone who could help Harris win the battleground state. Democrats hope the selection of Walz will offer a contrast to Republican vice presidential nominee JD Vance, who Walz has criticized as "just weird" for positions such as faulting women for not having children. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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India to tweak law to ease doing upstream business


06/08/24
News
06/08/24

India to tweak law to ease doing upstream business

Mumbai, 6 August (Argus) — India has introduced legislation in the upper house of parliament to amend an existing law to enhance the ease of doing business in the exploration and production sector. The oil and gas ministry has proposed a "petroleum lease" for exploration and production of mineral oils. It has also expanded the definition of mineral oils to include crude, natural gas, petroleum, condensate, coal-bed methane, oil shale, shale gas, shale oil, tight gas, tight oil and gas hydrate. The legislation proposes to separate mining operations from petroleum operations, which were originally regulated together. It also proposes to grant the petroleum lease on stable terms where its terms will not be altered to the disadvantage of the lessee during the period of the lease, while allows sharing of production facilities and infrastructure. The proposed amendments also include effective dispute resolution, decriminalising some provisions by replacing imprisonment with financial penalties and allowing appeals against the orders of the ruling authority. It also aims to ease energy transition by enabling development of comprehensive energy projects for harnessing wind and solar energy, along with mineral oils at oil fields. It has provisions to use oil fields for production of hydrogen, carbon capture utilisation and storage or coal gasification. The bill has to be passed by both houses of parliament to become law. India has been trying to attract domestic and international investors in the exploration sector by working to promote the ease of doing business in the sector. It also wants to increase domestic output of oil and gas to meet the country's increasing energy demand and reduce dependence on imports. India's crude production during April-June fell by 2pc from a year earlier to 538,000 b/d, oil ministry data show. Its dependence on crude imports for this period eased to 88.3pc from 88.8pc a year earlier. India will offer 25 oil and gas blocks in the tenth upstream bidding round in August or September. It has extended the deadline for the ninth round three times, with the latest to 31 August. Foreign participants have raised key issues with the oil ministry, including those related to indemnity and compensation that are likely to be addressed in the new legislation. Hydrocarbon exploration has been lacking because of the slow implementation of policies. India's upstream licensing has largely been dominated by domestic participants. Indian state-controlled upstream firm ONGC in January won seven of the 10 areas in exploration blocks offered in the eighth upstream bidding round. A private-sector consortium of Reliance Industries and BP, state-controlled upstream firm Oil India and private-sector Sun Petrochemicals received one block each. By Roshni Devi Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Singapore's June base oil exports fall on weak demand


06/08/24
News
06/08/24

Singapore's June base oil exports fall on weak demand

Singapore, 6 August (Argus) — Singapore's base oil exports fell in June, GTT data show, as demand in China and India weakened. The decline mirrors the trend in South Korea , Asia's top base oils supplier. Exports dipped amid weakening demand from China and India, the two largest lubricant consumers in Asia. Chinese demand typically falls in June as severe weather conditions weigh on construction activity. Buyers also held back as prospects of an economic recovery remained uncertain. China's GDP grew by 4.7pc in the second quarter, below the government's target of 5pc for the year, according to official data. The country's economic performance continues to be plagued by weak consumption and persistent property market slump. Indian buying interest decreased as its monsoon season began in June, weighing on industrial and transportation activities. Overall southeast Asian demand held relatively stable. June volumes were down by 6pc on the month and 9pc on the year, but remained 19pc higher than the five year monthly average of 58,100t. By Tara Tang Singapore's base oil exports (t) Jun'24 m-o-m ± % y-o-y ± % Jan-Jun'24 y-o-y ± % India 26,432 -40.1 1.1 202,105 37.2 China 21,288 -50.9 -35.2 209,923 -23.2 Indonesia 31,619 -12.0 -5.2 188,899 1.0 Malaysia 13,598 -1.1 -15.6 77,234 12.8 Total 140,549 -24.9 -19.6 962,528 -4.9 Source: GTT Total includes all countries, not just those listed Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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