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Japan's Jera shuts Chiba gas-fired power unit

  • Market: Electricity, Natural gas
  • 22/04/24

Japan's largest electricity producer by capacity Jera has shut the 360MW No.1-4 combined cycle gas turbine (CCGT) units at its Chiba power complex because of a technical problem.

Jera closed on 22 April the CCGT units at the 4.38GW Chiba complex in east Japan's Chiba prefecture, according to a notice by Japan Electric Power Exchange (Jepx). It is unclear when the units will be brought back on line.

The unexpected shutdown is likely to have limited impact on Japan's power market as the country has experienced mild weather lately that has capped power consumption. Jera consumed 16.7mn t of LNG in April-December 2023, lower by 4.8pc compared with the same period a year earlier, according to the firm's latest financial results.

Japan's total power demand averaged 83GW during 15-21 April, down by 3pc from the previous week, data show from nationwide transmission system operator the Organisation for Cross-regional Co-ordination of Transmission Operators.

Japan plans to add 1.1GW of thermal capacity during the week to 28 April, with the addition of 11.5GW outstripping the closure of 10.4GW, according to Argus' survey based on a Jepx notice. The difference incorporates the net increase this week in gas-fired capacity of 2GW and the net drop in coal-fired capacity of 887MW.


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21/02/25

German power industry split on capacity market design

German power industry split on capacity market design

London, 21 February (Argus) — Stakeholders in the German power market are divided on how best to implement a capacity market in Germany, or whether it is needed at all, Argus heard on the sidelines of the E-World conference in Essen last week. Instead of entertaining the "misleading" debate over centralised versus decentralised mechanisms, in which the government tries to "delegate accountability for security of supply", what is really needed is "centralised accountability with decentralised assets", Stefan Joerg-Goebel, senior vice-president for Germany at utility Statkraft, said. "The market should be centrally organised but technologies bidding into the market should include, for example, decentralised demand-side response and batteries," he said. But "only the state can really secure supply". Transmission system operator Amprion prefers a centralised capacity segment with a "local component" over the combined capacity market proposal, according to Peter Lopion, consultant in the firm's international regulation management and market development team. He emphasised the importance of knowing "when and where" power plants will come on line. Amprion also stressed that "incentives for grid-serving behaviour" are needed for batteries in particular . In contrast, a decentralised capacity market — not too dissimilar to that of France — is the "best solution" for Germany, although it would first need to adapt to the "German reality", Davide Orifici, director of public and regulatory affairs at energy exchange Epex, said. Such a system would "better help to integrate flexibility" and "further develop demand response", he said, adding that the impression that a centralised system would be simpler is "false". And a decentralised element is "crucial" to "fully leveraging the potential of the demand side", according to Jan Bruebach, managing director at utility MVV. Nevertheless, the addition of the centralised element would add "long-term security" and thus the German energy ministry BMWK's combined proposal is "fine". And while not specifying a particular design, "something at least similar to a capacity market" is important for security of supply and to "provide incentives to hold capacity on stand-by" during periods of low renewable generation, said Andre Jaeger, senior vice-president of product management at trading and risk management firm Ion Commodities. Kerstin Andreae of energy and water association BDEW agreed at a press conference that Germany "needs" the transition to a capacity market. But Peter Reitz, chief executive of energy exchange EEX, does not see the introduction of a capacity market in Germany as being essential. "The same effect can be achieved much more cheaply by introducing the obligation to deliver into the energy-only market," he said, although a decentralised market would "interfere the least with liquidity". And the introduction of a capacity market in Germany would be "costly", Andy Sommer, head of fundamental analysis and modelling at utility Axpo, said. The costs would probably be absorbed by grid operators and the state, and eventually offloaded on to end-consumers, he said. Energy ministry BMWK in August opened a consultation on the country's future power market system, with four options to finance controllable power capacities: a capacity-hedging mechanism through peak price hedging, a decentralised capacity market, a centralised capacity market, and finally, the ministry's preferred option of a "combined capacity market". Despite the deadline for member states to incorporate the EU-mandated electricity market design having passed on 17 January, the design will "probably" be implemented by the next government, BMWK deputy director Andre Poschmann said at an industry event last month . The capacity market question is likely to draw the most political attention after the federal election on 23 February, Joerg-Goebel said, adding that the successful continuation of the coal phase-out — which is currently an "uncomfortable issue" for market participants — can be "fixed" only with new capacity. And without a capacity mechanism, it will be "very difficult" to invest in new peak generation plants, Bruebach said, with Lopion adding that the coal phase-out is "dependent on" new capacity mechanisms. A bidding zone split would harm liquidity And the decision over whether to split Germany into multiple bidding zones remains a concern, with Argus having heard a general consensus that a bidding zone split would negatively affect liquidity in power trading. Larger price zones acting as a "larger mass" are better for liquidity, according to Reitz, citing the German-Austrian bidding zone split and subsequent reduction in Austrian power liquidity. A split would cause "disruption" to the entire market, owing to regulatory changes and the loss in liquidity, agreed Joachim Bertsch, senior business development manager at utility RWE, while Bruebach said it would "crush" liquidity, disadvantage smaller market participants and drive up costs for industries in the south of the country. While BMWK in August rejected the "reconfiguration" of the single German-Luxembourg bidding zone , the "pressure" to introduce multiple bidding zones will intensify if grid expansion does not, according to Joerg-Goebel, while Parasram said he believes "some form of split" will happen. By Bea Leverett Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Uruguay eyes oil, gas E&P within energy transition


21/02/25
News
21/02/25

Uruguay eyes oil, gas E&P within energy transition

Montevideo, 21 February (Argus) — Uruguay's state-run Ancap has hopes for an offshore oil or gas discovery, even as the country gears up for its second energy transition. Uruguay has had only three exploratory wells drilled in its history, two in 1976 and one in 2017, and they all came up dry. Companies have completed 13,000 km² of 2D and 41,000 km² of 3D seismic testing this century. Today, its seven offshore blocks have contracts, plans are underway for a new round of seismic testing and one company, US-based APA, wants to spud an exploratory well in its wholly operated block 6 in late 2026 or early 2027. "For the first time in history, we have contracts in place for all the blocks and there is a great deal of interest that resources can be found" in Uruguay, Santiago Ferro, Ancap's energy transition manager, told Argus . A public hearing on seismic testing was held 13 February and the environment ministry is reviewing proposals for permits. Ferro said seismic testing will only be done in areas lacking data. "We want to take advantage of existing information and complement it with new data to encourage drilling," he said. The plan is for approximately 5,000 km² (1,930 mi²) of new seismic testing on two areas — block 1, operated by Chevron and UK-based Challenger Energy Group, and block 4, operated by Shell and APA. The work will likely happen in the final quarter of this year. Ancap's plans will unfold under the new left-wing government of president-elect Yamandu Orsi, who takes office on 1 March. The Oris administration is committed to deepening Uruguay's energy transition. It already has one of the greenest power grids, with 99pc of power coming from renewables, and the Orsi government wants to guarantee electrification of the transportation sector. He will arrive at his inauguration in an elective vehicle as a sign of the government's commitment. The administration wants to decarbonize transportation in 10 years, which will require incentives for vehicles and investment in additional renewable power, principally solar energy. It has not taken a public stand on oil and gas exploration or what it would do if recoverable resources were discovered. By Lucien Chauvin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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US cites 'energy emergency' to expedite water permits


20/02/25
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20/02/25

US cites 'energy emergency' to expedite water permits

Washington, 20 February (Argus) — President Donald Trump's administration is citing an "energy emergency" as the basis to fast-track nearly 700 water permits, including those tied to a tunnel for Enbridge's Line 5 pipeline, LNG infrastructure projects, solar farms and electric transmission lines. Trump declared a national energy emergency on his first day in office, unlocking permitting powers that are typically used in response to natural disasters. The US Army Corps of Engineers has subsequently reclassified hundreds of permit applications for review under expedited emergency procedures, in a move that environmentalists say they plan to challenge in court based on violations of the Clean Water Act and Endangered Species Act. "The Trump administration is planning to skirt legally-required review processes in order to fast-track permits for dirty energy projects under the guise of an energy ‘emergency'", Sierra Club policy director Mahyar Sorour said. The Corps is responsible for issuing water permits for projects that cross streams, rivers, wetlands and other water bodies. Issuing permits sometimes requires the agency to prepare a detailed environmental review that is open to comment and can take years to finish. The water permits classified for emergency treatment include a repair project for Sabine Pass LNG in Louisiana, dredging for Elba Island LNG in Georgia, temporary construction related to Port Arthur LNG in Texas, solar projects in dozens of states, and pipeline projects ExxonMobil is pursuing in Texas. Enbridge delayed construction of a protective tunnel for its Line 5 pipeline to 2026 because of water permitting delays . But environmentalists say the administration cannot cite an energy emergency — which they say does not exist — as justification to bypass permitting rules prescribed by the US Congress. The Corps has also provided emergency treatment to projects with no apparent connection to energy production, such as a housing project in southern California and a gold mine in Idaho, according to an online database. The Corps did not respond to detailed questions but said it was "in the process of reviewing active permit applications relative to the executive order." Congress is continuing to lay groundwork for a bipartisan permitting bill that supporters say could make it faster and cheaper to build pipelines, power plants, electric transmission lines, renewable energy projects and transportation infrastructure. But Democratic leaders are threatening to vote against such a bill so long as Trump continues to "pause" billions of dollars in funding for clean energy projects provided by the Inflation Reduction Act and other laws. "Until the administration shows it will honor its oath to faithfully and impartially execute the laws, we can have zero confidence that any legislative compromise on permitting reform will be executed lawfully," US senator Sheldon Whitehouse (D-Rhode Island) said at a permitting hearing on 19 February. Oil industry and renewable groups are continuing to push for a comprehensive permitting bill, which they say would bring down project costs and help the US meet surging electricity demand from data centers and manufacturers. Permitting changes are "needed for all technologies, and they are needed to meet our energy demand in the future," Business Council for Sustainable Energy president Lisa Jacobson said. "You can't walk away from those facts or that imperative." By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Rare SK-PL gas flows as Polish demand surges


20/02/25
News
20/02/25

Rare SK-PL gas flows as Polish demand surges

London, 20 February (Argus) — Gas has flowed from Slovakia to Poland over the past two days, a rare occurrence since the commissioning of the pipeline, as demand in the latter surged on the back of plunging temperatures. More than 13GWh flowed to Poland from Slovakia at the Vyrava interconnection point on 18 February, and nearly 23GWh on 19 February, transmission system data show. These were the first receipts in either direction at Vyrava since 22 April 2024, as the pipeline has been little-utilised since its commissioning in November 2022 . In addition, there was nearly 40GWh of inflows from Lithuania, the highest for any day since 3 December. This helped boost Polish net imports to 669GWh on 19 February, the highest for any day since 31 December. Stronger imports have been needed as a result of higher domestic consumption caused by plunging temperatures. Overnight lows in Warsaw began to dip below the long-term average on 8 February, but gas demand did not start to significantly increase until 10 February, when minimum temperatures in the capital dropped to minus 7.7°C. Polish high-calorie consumption has since jumped to 903 GWh/d on 10-19 February from 782 GWh/d earlier in the month and 768 GWh/d in January. Demand peaked at 949GWh on 17 February, the highest for any day since 10 January 2024, and not far from the all-time high of 1TWh on 18 January 2021. On 17 February, overnight lows in Warsaw dropped to minus 14.3°C, by far the lowest for any day this winter. In addition to imports from Slovakia and Lithuania in recent days, there were net inflows from Germany at Mallnow of 55 GWh/d on 15-17 February, which is also rare given the expensive nature of these receipts. Because the Yamal-Europe pipeline is not yet fully integrated into the national transmission system, importers have to pay a double tariff to bring gas in at Mallnow and then out into the domestic grid, making imports through this route particularly expensive and uncompetitive in most cases. That said, these flows halted again on 18-19 February. Poland also imported at maximum capacity from the Baltic Pipe each day over 15-19 February, while LNG sendout from Swinoujscie surged to 257 GWh/d out of a maximum capacity of 264 GWh/d on 18-19 February after the arrival of a Qatari cargo a day earlier ( see February imports graph ). Strong imports from almost all directions have been driven by large premiums on the Polish prompt compared with neighbouring markets, with the day-ahead price on the Polish TGE exchange holding €4.23/MWh higher than Argus' Slovak day-ahead market on 1-19 February, and a larger €5.45/MWh and €6.32/MWh to the Czech and German markets, respectively ( see price graph ). Despite the cold snap, Polish firms still exported 25 GWh/d toward Ukraine since 8 February, with flows rising as high as 45GWh on 19 February. Ukraine has been importing heavily from all directions as cold weather has driven storage withdrawals to near their maximum and attacks on production infrastructure have reduced domestic output. Tightness to continue in short term The weather is expected to remain particularly cold over the next three days, likely continuing to bolster demand, but from 24 February onward it is forecast to turn much milder. Minimum temperatures in Warsaw were most recently forecast to reach minus 7°C on 20 February and as low as minus 9°C a day later, before climbing to minus 6°C on 23-24 February. These are all well below the 10-year average for the period of minus 4°C. And along with the continued cold weather, upcoming unplanned maintenance at Swinoujscie will take around 61 GWh/d of the terminal's regasification capacity off line on the 23 February-12 March gas days, further tightening the market. However, from 24 February onward minimum temperatures in Warsaw are forecast to increase significantly to around minus 1°C, and rise above freezing the next day. Overnight lows are then expected to hold above the 10-year average on each day from 24 February-6 March, which should curb heating demand, bringing consumption down and in turn requiring lower imports. By Brendan A'Hearn Polish February net imports GWh Polish day-ahead prices vs neighbouring countries €/MWh Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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2025 will be ‘pivotal’ for ExxonMobil in Guyana


19/02/25
News
19/02/25

2025 will be ‘pivotal’ for ExxonMobil in Guyana

Houston, 19 February (Argus) — ExxonMobil said 2025 is shaping up to be "very pivotal" for the company's operations at the giant Stabroek offshore block in Guyana as the pace of projects speeds up. The US oil and gas producer has just submitted the draft environmental impact assessment for the Hammerhead project to Guyana's Environmental Protection Agency, ExxonMobil's Guyana president Alistair Routledge said today at the Guyana Energy Conference and Supply Chain Expo in Georgetown. "We target reaching final investment decision for that project in the middle of the year, subject, of course, to us completing the full environmental permitting process and the production license process," he said. Hammerhead is forecast to deliver up to 190,000 b/d when it is brought up to full capacity by the end of 2029. Next year, ExxonMobil plans to reach a final investment decision on Longtail, which will be the first to target non-associated gas in the southeast area of Stabroek. "We'll develop a significant resource base of gas, but also condensates, liquids," Routledge said. Gas output is pegged at up to 1.2 bcf/d when it starts at the end of the decade. Routledge acknowledged the government's impatience to move faster on gas development plans. "We want to move quickly," he told the conference. "But for those in the industry, you will understand the additional complexity and challenges that gas brings." This includes higher transport and storage costs than oil and lower energy density. That means it takes more effort to advance gas projects, especially in a country like Guyana that does not have an existing market. A $1bn pipeline that will ship gas from Stabroek to a planned power plant and natural gas liquids complex — the centerpiece of Guyana's promised gas-to-energy project — is already complete. "We're ready to deliver gas onshore to that very first domestic gas project that will deliver real benefits to Guyana," Routledge said. The Guyanase government has plans in motion to build a second power plant, and then a fertilizer plant, which will support the country's agricultural sector as part of a diversification drive. Routledge outlined other possible strategies to further develop the country's gas resources, including data centers like those spreading elsewhere to power artificial intelligence services. "We've had conversations with some potential investors," Routledge said. "That's on our radar." There is also the option of connecting Guyana's gas resources to world markets. "While it may be cost prohibitive to lay a pipeline all the way to Trinidad, there is still the possibility of using liquefied natural gas technology to connect us to global markets," Routledge said. "That is a further option that is on the table and being investigated." By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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