CenterPoint upgrades grid to serve Freeport LNG

Spanish Market: Coal, Electricity, Natural gas
24/02/15

Electricity transmission and distribution company CenterPoint Energy will spend $80mn to upgrade the coastal Texas transmission grid to supply 656MW of electricity to the Freeport LNG export project on Quintana Island about 70 miles (113km) southwest of Houston.

CenterPoint Energy will build a new 345kV Jones Creek substation and upgrade and reconfigure the 138kV network in the Freeport area by mid-2017 to meet sizable new load from the LNG export facility expected to start service in 2018.

The 656MW increase in power demand from the facility is the equivalent of the projected load growth for all of New England in the next three years. The projected load equals the consumption of 328,000 new Texas homes during mild weather.

While other proposed LNG export projects plan to use pipeline gas to fuel on-site operations, a majority of the power needed to supply Freeport LNG will come from the power grid to comply with Houston-area emission restrictions.

GE Oil & Gas is supplying electric-drive compressors and six, 75MW motors, along with other electric equipment for two of the project's liquefaction trains.

The board of the Electric Reliability Council of Texas (ERCOT) endorsed the plan earlier this month without discussion.

Freeport LNG started construction for two initial liquefaction and loading facilities in late November. Freeport said the first of three export trains from the $14bn facility will be on line in September 2018, with more trains following five and 10 months later.

The export terminal also will require 146MW to serve a gas pre-treatment facility off Quintana Island. About 82MW of that will be self-supplied.

Round-the-clock Houston power assessments average $36/MWh for Calendar 2018, a 10pc increase from 2016. Spark spreads at the Houston hub in the same period increase by 4pc.

More infrastructure and generation may be needed along the Gulf coast to serve industrial demand from LNG facilities and chemical manufacturers seeking to take advantage of soaring US natural gas production from shale formations.

CenterPoint officials said new load created by Freeport LNG underscores a need for investment in a new 345kV line, called the Houston Import Project, to move additional power from north Texas to the Houston area.

NRG Energy and Calpine, two of the state's largest power producers with generation in Houston, oppose the $590mn transmission line project, which has also been supported by ERCOT.

The US Department of Energy has authorized Freeport LNG to export up to 13.2mn t/yr of LNG, equivalent to 1.8 Bcf/d (51mn m³/d) of gas, to all international markets.

Freeport expects to export more gas to customers in countries that have free trade agreements with the US, including South Korean utility SK E&S. The 2.2mn t/yr of capacity owned by SK E&S could be exported under a license valid only for export to countries that have preferential trade terms with the US in natural gas trade, for total exports of 15.4mn t/yr.

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17/04/25

India's ONGC wins 15 blocks in upstream oil, gas bid

Mumbai, 17 April (Argus) — Indian state-controlled upstream firm ONGC has won 15 of the 28 blocks offered for bidding in the ninth round under the Hydrocarbon Exploration and Licensing Policy's (HELP's) Open Acreage Licensing Policy (OALP). Three of these were with ONGC's joint venture with state-run Oil India, while another was in a consortium with BP and private-sector refiner Reliance Industries (RIL). This is the first time BP, RIL and ONGC have partnered and won a shallow-water block in the Saurashtra basin. ONGC has a 40pc stake in the consortium, with RIL and BP having 30pc each, a trading source said. RIL-BP had jointly won an ultra-deepwater block in the Krishna Godavari basin in the eighth round. Private-sector Vedanta, which had bid for all 28 oil and gas blocks, won seven blocks. Oil India won six blocks on its own and three in collaboration with ONGC. Private-sector firm Sun Petrochemicals, which had bid for seven blocks in this ninth round, did not secure any blocks. Interest from the private sector was relatively higher in this bidding round, but it remains mostly dominated by state-controlled firms. Foreign participation in the Indian exploration sector remains low. The ninth round saw 28 blocks auctioned(https://direct.argusmedia.com/newsandanalysis/article/2524414) across an area of 136,596.45 km². India has awarded 144 exploration and production blocks comprising a total area of 242,055 km² in eight previous rounds. India in March passed the Oilfields (Regulation and Development) Amendment Bill 2024 , which aims to simplify regulations, attract investment, and enhance exploration and production capabilities. It also allows granting oil leases on stable terms, along with sharing of production facilities and infrastructure. It also scrapped the windfall tax on domestic crude oil production in December 2024. The ministry said it is working on new frameworks to address challenges related to the upstream sector. India imports around 89pc of its crude requirements, despite efforts to reduce its dependency on imports. Crude imports in January-February rose by over 1pc on the year to 5.01mn b/d, oil ministry data show. During the same period, its total crude production fell by over 1pc from a year earlier to 539,000 b/d. By Roshni Devi India OALP blocks ninth bidding round Basin Type Block Area (km²) Awardee Cauvery Basin Ultra-deepwater CY-UDWHP-2022/1 9,514.63 ONGC Cauvery Basin Ultra-deepwater CY-UDWHP-2022/2 9,844.72 ONGC Cauvery Basin Ultra-deepwater CY-UDWHP-2022/3 7,795.45 ONGC Cauvery Basin Ultra-deepwater CY-UDWHP-2023/1 5,330.49 ONGC Saurashtra Basin Shallow water GS-OSHP-2022/1 5,585.61 ONGC Saurashtra Basin Shallow water GS-OSHP-2022/2 5,453.96 ONGC - BPXA – RIL Saurashtra Basin Onland GS-ONHP-2023/1 2,939.56 Vedanta Saurashtra Basin Shallow water GS-OSHP-2023/1 ,5408.79 ONGC Saurashtra Basin Ultra-deepwater GS-UDWHP-2023/1 7,699.00 ONGC Saurashtra Basin Ultra-deepwater GS-UDWHP-2023/2 8,446.28 ONGC Saurashtra Basin Onland GS-ONHP-2023/2 2,977.28 Vedanta Saurashtra Basin Onland GS-ONHP-2023/3 2,793.08 Vedanta Cambay Basin Onland CB-ONHP-2022/2 7,13.92 ONGC- OIL Cambay Basin Shallow water CB-OSHP-2023/1 1,873.66 Vedanta Cambay Basin Onland CB-ONHP-2023/1 446 OIL Cambay Basin Onland CB-ONHP-2023/2 636 Vedanta Cambay Basin Onland CB-ONHP-2023/3 416 ONGC Cambay Basin Shallow water CB-OSHP-2023/2 477 Vedanta Mahanadi Basin Ultra-deepwater MN-UDWHP-2023/1 9,466.85 ONGC - OIL Mahanadi Basin Ultra-deepwater MN-UDWHP-2023/2 9,425.84 OIL Mahanadi Basin Ultra-deepwater MN-UDWHP-2023/3 9,831.48 OIL Krishna-Godavari Basin Ultra-deepwater KG-UDWHP-2023/1 9,495.16 OIL Krishna-Godavari Basin Ultra-deepwater KG-UDWHP-2023/2 9,223.22 OIL Mumbai Offshore Shallow water MB-OSHP-2023/1 2,935.19 ONGC Mumbai Offshore Shallow water MB-OSHP-2023/2 1,749.74 Vedanta Assam Shelf Basin Onland AS-ONHP-2022/2 784 ONGC - OIL Assam Shelf Basin Onland AS-ONHP-2022/3 2,168.09 OIL Kutch Basin Shallow water GK-OSHP_x0002_2023/1 3,164.61 ONGC Source: Oil ministry Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Taiwan poised to import more LNG this summer

17/04/25

Taiwan poised to import more LNG this summer

Singapore, 17 April (Argus) — Taiwan is likely to import more LNG to meet growing demand for gas-fired power generation, as its third LNG import terminal comes on line in time for summer. Taiwan's 3mn t/yr Guantang import terminal in Taoyuan, located in the northwest of the country, has successfully received its first delivery of 63,780t of LNG from the 145,000m³ Methane Rita Andrea on 7 April, according to vessel tracker Kpler. This third importing terminal will increase Taiwan's total import capacity to 19.5mn t/yr, alleviating high utilisation at existing import terminals . Pivoting to gas Taiwan's CPC will require at least one more cargo each month for the new 913MW Datan unit 7 power plant, which is due to come on line in June. The third LNG import terminal would ease the importing process. Assuming a 55pc efficiency rate, the power plant is estimated to burn about 75,260 t/month (166,780 m³/month) of LNG, equivalent to about one standard-sized cargo. Gas-fired power generation accounted for an average of about 41pc of Taiwan's total power generation over 2023-24. Gas fired-power generation reached 29.6TWh for the second quarter of 2024, which was 10pc higher from 26.9TWh over the same quarter in 2023. Taipower planned to install up to 14 gas-fired power plants over 2025-30, according to the firm's 2024 power development plan which was last updated on 9 August 2024 (see table) . Taiwan has a total of 21,196MW of gas-fired power capacity fuelled on LNG as of February 2025. CPC has issued nine tenders seeking spot deliveries over the first quarter of 2025, four more than a year earlier. This latest increase in importing capacity will be crucial to support the increased reliance on gas-fired power generation, especially after Taiwan phases out its last nuclear power facility in July. A gradual nuclear phase-out Nuclear output has also been on a downward trajectory since 2023 and only made up 1pc of Taiwan's overall power mix over the last quarter of 2024. The 951MW Maanshan nuclear unit 2 is planned for decommissioning and will be taken fully off line on 17 May . The Maanshan unit 1 was [shut down last July](https://direct.argusmedia.com/newsandanalysis/article/2581822). Taiwan's annual LNG imports rose by 2pc on the year in 2023, and increased by 5pc on the year in 2024. Taiwan imported a total of 21.5mn t of LNG in 2024, of which 10pc of the volumes were from the US. By Naomi Ong Taipower gas-fired additions Year Units 2025 913MW Tatan unit 7 1,300MW Taichung unit 1 1,300MW Hsinta unit 1 1,300MW Hsinta unit 2 2026 1,300 Taichung unit 2 1,300MW Hsinta unit 3 2028 650MW Talin unit 1 650MW Talin unit 2 650MW Tunghsiao unit 4 650MW Tunghsiao unit 5 2029 650MW Tunghsiao unit 6 650MW Tunghsiao unit 7 2030 1,300MW Hsiehho unit 1 650MW Tunghsiao unit 8 Taipower Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

AD Ports Group pioneers LNG bunkering at Khalifa Port

17/04/25

AD Ports Group pioneers LNG bunkering at Khalifa Port

Dubai, 17 April (Argus) — Abu Dhabi's AD Ports Group has conducted its first ship-to-ship (STS) LNG bunkering operation at Khalifa Port. The operation, executed with marine fuels provider Monjasa, involved the container vessel MSC Thais , berthed at Abu Dhabi Terminals, receiving LNG from the dedicated bunker vessel Green Zeebrugge during a simultaneous cargo transfer. "By ensuring reliable access to low-carbon fuels like LNG, we are enabling shipowners to meet their sustainability goals while aligning with global environmental objectives," said Abu Dhabi Maritime chief executive Saif Al Mheiri. LNG offers lower greenhouse gas emissions, sulphur oxide, nitrogen oxide, and particulate matter than conventional marine fuels. AD Ports Group and Monjasa plan to expand LNG bunkering services across Abu Dhabi's commercial ports, including Zayed Port's cruise liners. Monjasa facilitated the first delivery of LNG bunker fuel in Dubai earlier this year. The firm brought the 5,100m³ Green Zeebrugge in 2024 from northwest Europe to be stationed in the UAE. By Elshan Aliyev Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Japan to develop geothermal power under net zero plan

16/04/25

Japan to develop geothermal power under net zero plan

Osaka, 16 April (Argus) — The Japanese government is gearing up to develop geothermal energy, as the clean power can help to decarbonise the power sector with stable output, unlike weather-dependent renewables such as solar and wind. The trade and industry ministry Meti on 14 April launched a public-private council to discuss the development of next-generation geothermal energy, aiming to formulate a draft guideline, including capacity and cost targets, by around October this year. The new technology could lift the country's potential geothermal capacity to at least 77GW, compared with 23.5GW based on conventional methods, according to the council. The draft plan aims to establish the next-generation geothermal technology as early as the 2030s, to expand the use of the clean energy with competitive prices toward 2040, while tacking geological challenges, such as fault and complex geology, in Japan. Should the next-generation technology, such as closed-loop and supercritical geothermal, prove practical, Japan could utilise its potential, said Meti minister Yoji Muto on 15 April. Japan could consider exporting the next-generation technology globally, as it has around 70pc global share in conventional geothermal turbines, he added. The geothermal strategy is in line with the country's new strategic energy plan (SEP) , which was published in February, as well as prime minister Shigeru Ishiba's push to develop geothermal capacity. Ishiba had focused on less-utilised and high potential geothermal, as well as micro-hydropower, during his [campaign for the ruling Liberal Democratic Party presidential election](https://direct.argusmedia.com/newsandanalysis/article/2608517) last year. The SEP assumes geothermal will account for 1-2pc of Japan's power mix in the April 2040-March 2041 fiscal year, which is relatively marginal compared with other renewables such as solar at 23-29pc, wind at 4-8pc, hydroelectric at 8-10pc and biomass at 5-6pc. But even the small share would be much higher compared with its actual share of 0.3pc of total power generation in 2023-24. Diversification of renewable power sources would be necessary to achieve Japan's plan to reduce its greenhouse gas emissions by 60pc in 2035-36 and by 73pc in 2040-41, respectively, against the 2013-14 level, before achieving its net zero goal in 2050. Under the SEP, Tokyo aims to reduce its dependence on thermal power to 30-40pc in 2040-41 from 71pc in 2024. Japanese private firms are already involved in further developing domestic and overseas geothermal projects. Japanese utility Hokkaido Electric Power and construction firm Obayashi said on 16 April that they will study potential geothermal resources in Hokkaido during April 2025-February 2026, taking advantage of subsidies provided by state-owned energy agency Jogmec. Japanese battery maker Panasonic Energy said on 8 April that it has signed a power purchase agreement with regional utility Kyushu Electric Power's renewable arm Kyushu Mirai Energy to secure around 50GWh/yr of geothermal-based electricity from 1 April. The stable geothermal supplies, unaffected by weather, could double a renewable ratio in its domestic power consumption to around 30pc, Panasonic said. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Dozens of US coal plants eligible for MATS extension

15/04/25

Dozens of US coal plants eligible for MATS extension

Cheyenne, 15 April (Argus) — The White House has identified more than 60 fossil fuel-fired power plants that will have two extra years to comply with the more stringent mercury and air toxics standards (MATS) finalized in 2024. Under a proclamation signed by US president Donald Trump last week, the plants on the list will be able to operate under whatever existing mercury and air toxics standards they currently are subject to until 8 July 2029. That is two years after the compliance deadline put in place in May 2024. The Environmental Protection Agency (EPA) rules finalized last year tightened mercury and air toxics standards for coal- and oil-fired units by 67pc, included new emissions-monitoring requirements and added standards for lignite-fired coal plants that put them in line with those for other coal plants. EPA in March said it was reviewing the new standards and said companies could seek exemptions to the mercury rule and other emissions rules. Trump followed that up last week with a proclamation that certain generating facilities would be given a two-year exemption in complying with the 2024 rule. The White House released the list of exempt power plants late on 14 April. Most of the plants on the list are coal-fired generators, some of which were scheduled for retirement by the end of 2027. These include Tennessee Valley Authority's Kingston plant and one unit of its Cumberland plant, as well as Vistra Energy's Kincaid, Baldwin and Newton plants and two coal units of Vistra's Miami Fort plant. The two coal units at Southern Company's Victor J Daniel plant in Mississippi also have been exempted from the new mercury and air toxics rules for two years. Southern had planned on retiring those units by the end of 2027, but in February, the Mississippi Public Service Commission approved two special contracts that were expected to need unit 2 of the Daniel plant and possibly a unit of a natural gas plant to run into the 2030s. Some other coal plant units owned by Southern, TVA and Vistra also are now exempt from the July 2027 mercury and air toxics compliance deadline. So are some plant units owned by East Kentucky Power Cooperative (EKPC), NRG, Ameren and Entergy. At least two natural gas plant units — unit 5 of Southern's Plant Barry and City Utilities of Springfield's John Twitty Energy Center, which has coal and natural gas generation — are exempt from the July 2027 deadline. So is unit 5 of Entergy's RS Nelson plant, which runs on petroleum coke. Essentially all of the other units in the White House's list are coal units, including Otter Tail Power's Big Stone and Coyote Station plants in North Dakota. Otter Tail said it had requested the exemptions "to avoid making unnecessary expenditures" if EPA decides to roll back the 2024 rule. EKPC said it was "grateful" its request to exempt the Spurlock and Cooper coal-fired power plants in Kentucky was granted and that the company "will continue to operate the plants in accordance with all market and environmental rules." NRG said it was still reviewing the order, but did not expect it to have any effect on its plans. TVA, Southern, Vistra and owners of other power plants given compliance extensions did not respond to requests for comment. By Courtney Schlisserman Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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