News Clipping Archive - Page 1228 of 1294

Oil & Gas ,
Others

Petronas LNG purchase deal with Cheniere to support sixth train at Sabine Pass

18 December 2018

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Malaysia

Houston — Malaysia’s Petronas will buy LNG from Cheniere Energy under a 20-year agreement that will support building a sixth liquefaction train at the exporter’s Sabine Pass terminal in Louisiana.

The long-term offtake deal for approximately 1.1 million mt/year of LNG will be shipped on a free-on-board basis beginning following the date of first commercial delivery from Train 6. Cheniere CEO Jack Fusco told S&P Global Platts in October that the company hoped to make a final investment decision on the train by early next year.

In a statement announcing the sale and purchase agreement with a unit of Petronas, Cheniere said the deal is expected to support the continued progress toward an FID in 2019. The purchase price for the LNG will be indexed to the monthly Henry Hub price, plus a fee.

“We think SPL6 is money-good, and the real questions are really at what price/contract structure and when,” Wells Fargo Securities analyst Michael Webber said in a note to clients after the announcement. “With execution of the EPC contract with Bechtel (November), the one milestone they now need to sort out over the next 3-4 months is financing.”

Despite market uncertainty and continuing US trade tensions with China, Cheniere has projected a confident market outlook in recent months, and on both the financial and commercial fronts it has managed to outmaneuver many of its US peers, thanks in part to being first to market among major US LNG exporters when Sabine Pass started up in 2016. Also, its one-stop shop for producing, marketing and delivering LNG around the world on a destination-flexible basis gives it a competitive advantage.

Cheniere has been stressing to the Trump administration the importance of US LNG in the global marketplace and encouraging it to ease tensions with Beijing. China imposed tariffs on imports of US LNG starting September 24, and with less than two weeks before the end of 2018 there is no sign of the duties being lifted anytime soon.

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Cheniere is currently operating five trains at Sabine Pass and one train at its export terminal near Corpus Christi, Texas. The facility in Texas recently shipped its first cargo, which is on its way to Greece. Two more trains are under construction at Corpus Christi.

While the agreement with Petronas is the first one announced by Cheniere that is directly tied to the proposed Train 6 at Sabine Pass, in general, other SPAs with investment grade counterparties can be used to support financing for new LNG capacity. Cheniere has reached several such deals this year, though early ones will support the third train at Corpus Christi.

“We think Cheniere had been looking to get one or more FOB contracts signed to help simplify the financing process (it’s simply easier to underwrite fixed-price FOB contracts and keep DES business at CMI) — with 1.8 mtpa (~38%) FOB commitments and the inclusion of one DES contract (1.45 mtpa PGNiG or 2 mtpa CPC) able to get them to ~70-81% (which should be more than sufficient coverage to take to its lenders),” Webber said.

The analyst added, “Given significant commercial progress and Cheniere’s investment grade rating, we don’t expect any major issues with financing.”

Renewables

Cambodia’s biggest hydropower dam now producing electricity

18 December 2018

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Cambodia

New Delhi: Cambodia‘s largest hydropower project officially began producing electricity Monday as the country tries to increase its energy capacity to reduce energy imports and help jump-start industrial expansion.

Prime Minister Hun Sen inaugurated the 400-megawatt Lower Sesan II hydropower dam in the northeastern province of Stung Treng. The project, constructed on a build-operate-transfer basis, will boost the country’s production of electricity by 20 percent, according to the Ministry of Mines and Energy.

It was built over four years at a cost of nearly $800 million and is a joint venture of China’s Hydrolancang International Energy, which has a 51 percent stake, Cambodia’s Royal Group with 39 percent and Vietnam’s EVN International with 10 percent.

The dam is expected to bring in almost $30 million in tax revenue yearly. Ownership will be handed over to the government after 40 years.

Bioenergy ,
Energy Economy

Bangchak sets $50m investment budget in bio, green-energy startups

17 December 2018

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Thailand

BANGCHAK will invest US$50 million in startups within the next five years in order to expand their core business and technologies with the goal to emerge as the leading innovative group of its kind in the Asean bloc.

The firm expects to generate revenue growth to more than double in the next five years. The firm also has plans to set up solar rooftops at 14 gas stations over the coming years.

Suwat Meemook, executive vice president of Bangchak Initiative and Innovation Centre (BIIC), a part of Bangchak Corporation, said the firm is heading toward a transformation its current “Green Energy Excellence” vision to one of ‘Evolving Greenovation’

He spoke to The Nation at the International Innovation Summit 2018 in Macau. To drive its transportation and new S-curve business, the firm will invest US$50 million (Bt1.64 billion) of corporate venture capital (CVC) during 2019-2024 targeting startups in the US, China and Europe, he said.

The firm will seek to invest in startups in two main areas – bio-based and green-energy startups. For bio-based investments, it is looking for startups developing innovative products such as bio-plastics, nutrition and batteries.

In the green energy sector, the firm will focus on solar roofs, wind-turbines and e-vehicle power plants.

“We want to expand businesses now in oil and gas into bio-based and green-energy businesses. Therefore, we will develop and produce high-value products to support both domestic and international market demand.

“We will also set up a corporate innovation framework, the Bangchak Innovation Culture Initiative and innovation activities, to support innovative business at every angle from the bottom to top management,” said Surawat.

Their approach has won Bangchak the “organisation and culture” award at the International Innovation Awards 2018 held by Enterprise Asia.

“I think that bio-based and green energy businesses will create new opportunities and have a high potential growth in the near future,” said Suwat.

However, the firm last year started to invest in four startups valued at $5 million in the US and South America, including a small wind-turbine that is able to produce green energy at home, and battery technology. The firm expects to come out new innovative and commercial products from its startups in the next couple of years.

Within the next five years, he said, the firm expects to double its current revenues.

Chokchai Atsawarangsalit, executive vice president for business marketing and oil terminal at Bangchak Corporation, said their strategy focuses on developing green experience and green innovation for customers of the modern generation.

To drive green energy and sustainability, the firm has invested Bt70 million to develop and pilot an unique smart modernised service station. The “green community energy management system” (GEMS) located at Bangchak Srinakarin, in Samuthprakarn province is a “greenergy” service station able to reduce building and retails costs as well as offering future promise for electricity trading.

The GEMS is composed of PV rooftop installations on the service station’s canopy, commercial buildings and carports. It has a combined capacity of 279 kW, as well as allowing 1MWh of storage using the largest operating lithium battery storage (NMC and LPF) and microgrid system.

The firm next year will invest to develop and implement solar rooftops at 14 gas stations, including Bang Bua Thong 2, Teparak km11 and AOT Suvarnabhumi.

Already, the firm has set up solar rooftops at 14 gas stations, including on Vibhavadi Rangsit Road, Ratchaphruek Road and Srinakarin Road.

Electricity/Power Grid ,
Oil & Gas

Pertamina enters construction phase of 1,760-mw steam power plant

17 December 2018

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Indonesia

Jakarta (ANTARA News) – State-owned oil and gas company Pertamina, through its subsidiary PT Pertamina Power Indonesia (PPI), entered the construction phase of a gas and steam power plant, with a capacity of 1,760 megawatts (MW), in December 2018.

Construction of Jawa-1 Independent Power Plant (IPP) signifies Pertamina`s efforts to support the provision of clean energy.

The project, known as Jawa-1 IPP Project, is integrated with a 170 thousand-cubic meter Floating Storage Regasification Unit (FSRU) that will be built simultaneously along with the power plant, according to a statement from Pertamina received by Antara here, Monday.

The project, considered to be the first LNG-to-Power integrated project in Asia, attained funding approval from an international lender on December 5, 2018. Hence, the construction will begin immediately.

“In this project, Pertamina Power Indonesia acts as the leader of a consortium comprising several Japanese companies, including Marubeni Corporation, Sojitz Corporation, and other firms, by establishing two project companies, specifically, PT Jawa Satu Power (JSP) and PT Jawa Satu Regas (JSR),” President Director of PPI Ginanjar stated.

JSP and JSR will execute this project by building and managing project infrastructure of the power plant and the FSRU.

Electricity generated from the power plant will be sold to the state-owned electricity company (PLN) for 25 years.

The process of building this integrated gas power plant will enter the construction period full-scale in December 2018, to be marked by a groundbreaking on December 19, 2018.

The Jawa-1 project is divided into three stages: Phase I, pre-project up to Financial Close (FC); Phase II, construction; and Phase III, operational. On December 5, 2018, the phase I of the project was completed.

The next challenge is to ensure that the construction phase can be carried out to achieve the target in December 2021 in line with the On Time, On Spec, and On Budget scheme.

Strong coordination of the inter-consortium (JSP-JSR) with the supporting partners and lenders, as well as other stakeholders is the key to the success of the project according to the target.

“We also have to ensure that all involved parties are committed to the quality and HSSE aspects,” Ginanjar emphasized.

“In addition to developing the gas power plant, Pertamina Power Indonesia also focuses on new and renewable energy businesses that include solar power plants, biogas, wind power, and development of other future energy sources,” Ginanjar added.

Others

Cambodia reaffirms commitment to United Nations Framework Convention on Climate Change

16 December 2018

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Cambodia

Cambodia has reaffirmed its commitment to the United Nations Framework Convention on Climate Change and express serious concern over the multi-faceted impacts of climate change.

Eang Sophalleth, secretary of state with the Ministry of Environment and head of the Cambodian delegation to the UNFCCC, said this week in Poland that after the historic agreement in Paris, the need for decisive and ambitious action on climate change has never been stronger.

He noted the recent Intergovernmental Panel on Climate Change pointed out serious
consequences if the objective to maintain global warming below 1.5°C is not delivered. Therefore, significant work has been done this year to develop mechanisms for the implementation of the Paris Agreement.

“The current policy platform to take stock of the efforts to develop Cambodia is the Rectangular Strategy Phase IV, in which sustainability and climate change action are one of the major pillars,” he said.

“With this regard, Cambodia has made progress in promoting renewable energy, particularly through solar farms,” he added. “We are also making progress in the establishment of protected areas and biodiversity corridors, which currently cover 41 percent of the total country land area.”

Electricity/Power Grid ,
Others ,
Renewables

Aboitiz Power to build $28 million battery storage

16 December 2018

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Philippines

MANILA, Philippines — SN Aboitiz Power Group (SNAP), the joint venture of SN Power of Norway and Aboitiz Power Corp., plans to construct a $28-million battery energy storage system (BESS) at its Magat hydro electric power plant (HEPP).

The facility will be used to boost the company’s ancillary services and standby power supply that can be tapped in case the regular supply falls short of the requirement.

In a statement, SNAP said its board approved to conduct a feasibility study in 2019 for BESS in Magat.

Construction will start in 2020 with commercial operations expected by 2022 once the National Grid Corp. of the Philippines (NGCP) approves the facility’s ancillary services procurement agreement (ASPA).

Ancilliary services (AS) are necessary to support the transmission of capacity and energy from resources to loads while maintaining reliable operation of the transmission system in accordance with good utility practice and the grid code.

AS is a system requirement to ensure grid system reliability, security and affordability of the supply.

“You can think of battery energy storage as a giant power bank,” SNAP president and CEO Joseph Yu said. “With BESS, we will have a battery facility that is connected to the grid where we can withdraw power from when necessary.”

The Energy Regulatory Commission classified BESS as a new source of frequency control ancillary services.

The company has included BESS in its scope because of the rise of variable renewable energy in the country, increasing frequency variability to the grid which requires more balancing power supply in the system.

SNAP has been providing the NGCP with AS from its impounding hydropower plants.

It owns and operates the 360-MW to 380-MW Magat hydro on the border of Isabela and Ifugao, the 8.5-MW Maris hydro in Isabela, the 105-MW Ambuklao hydro in Benguet and the 140-MW Binga hydro also in Benguet.

Electricity/Power Grid ,
Energy Cooperation

Laos, Thailand further cooperation, deepen friendship

15 December 2018

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Lao PDR ,
Thailand

Laos and Thailand will target new heights in deepening their relations as they head toward setting up a strategic partnership for growth and sustainable development.

The direction of deepening relations and enhancement of bilateral cooperation was agreed on at the Third Lao-Thai Joint Cabinet Retreat (JCR) held in Vientiane yesterday co-chaired by Prime Minister Thongloun Sisoulith and his Thai counterpart General Prayut Chan-o-cha.

After a two-hour meeting, the two prime ministers witnessed the signing of seven documents; namely the record of the JCR, memorandums of understanding (MOUs) on cooperation in the justice and legal sector, in transport, education, natural resources and environment, immigration management, and a MOU on power trade between Electricite du Laos and Electricity Generating Authority of Thailand.

In the natural resources and environment sector, the two sides have agreed on setting up a botanic garden in Naxon village, Pakngum district, Vientiane.

After the signing ceremony, Prime Minister Thongloun and Prime Minister Prayut together held a news briefing where the Lao prime minister conveyed that the JRC was held under the atmosphere of brotherhood and he hoped the meeting would lead to the implementation of various agreements which would bring development to both nations along with mutual visits that protect their friendly ties.

As mentioned by Mr Thongloun, the sides appreciated the implementation of various agreements which they said had brought productive results.

Regarding the persistent deepening relations between both nations, the Lao PM said “Our two countries will move forward together to bring prosperity to people’s lives”.

At the retreat meeting, the two sides reviewed achievements of past bilateral cooperation in various fields.

The two sides praised the Joint Border Committee for their work in addressing border issues and the progress made in surveying as related units from both sides enhanced their efforts to finish the survey and marker installation for the land border by 2020 and water border by 2021.

The two sides confirmed to continue the promotion of economic, trade and investment cooperation in electric power and other sectors that have the potential for more growth to benefit both sides and strengthen the building of the Asean Community.

The two sides agreed on targeting the doubling of trade volume by 2021 compared to that of 2016.

Prime Minister Thongloun, representing the Lao government and people, expressed gratitude to His Majesty the Thai King and royalty, the royal government and Thai people for their assistance to Lao people, especially following the collapse of the Xepian-Xenamnoy Hydropower project saddle dam in Attapeu province’s Sanamxay district.

“Thailand was among the foreign countries which offered timely assistance for the rescue and relief from the disaster and helped to reduce the losses,” he said.

During the visit of the high-level Thai delegation to Laos, Gen Prayut Chan-o-cha represented the Thai government and people in handing over additional grants valued at 75 million baht or around 19.5 billion kip for the restoration of livelihoods in Attapeu province.

The Thai government and people also presented 55 million baht or around 14.6 billion kip for the development of the Lao Physical Education College in Thongpong village, Vientiane.

At the briefing, Mr Thongloun conveyed Laos’ full support for and cooperation with Thailand in its rotating chairmanship of Asean next year, and the country’s full confidence in Thailand’s chairmanship in deepening the building of the Asean Community.

Laos and Thailand also agreed on activities to be organised to mark the 70th anniversary of the establishment of diplomatic relations between the two countries in 2020.

Speaking at the briefing, Thai Prime Minister Gen Prayut Chan-o-cha stressed the deepening relations between the two nations heading toward setting up the strategic partnership.

He noted the future cooperation in security, combating drug and human trafficking, as well as infrastructure development for facilitating mutual visits between people of the two nations and decreasing travelling time.

After the meeting, the Lao and Thai prime ministers joined the opening of an exhibition at the National Convention Centre in Vientiane to mark 50 years of Lao-Thai Energy relations under the theme “From the first transmission line to the secured presence and future”.

Renewables

Solar Energy Firm Reports Achieving Project Milestone

15 December 2018

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Philippines

UGE International Ltd. (UGE:TSX.V; UGEIF:OTC) announced in a news release it recently “achieved substantial completion” of projects in each of its three key markets: the U.S., Canada and the Philippines.

“When 2018 is complete, we will have installed our largest-ever annual volume of solar projects, taking our cumulative total over 380 megawatts,” Chief Operating Officer Ed Steins said in the release.

In Canada, UGE finished the first two sites of the 15-site Peterborough project, and should wrap up two more next week.

In the U.S., the company finished two of three rooftop installations in Massachusetts and the last of a four-part portfolio in Minnesota.

Finally, in the Philippines, UGE completed its largest project to date there, a 1.4 megawatt system for Nature’s Spring Mineral Water in Bulacan, last week. The solar solutions company also finished a rooftop system for Toys by Robin last month.

An upcoming catalyst for UGE, expected in Q1/19, is its completing the Peterborough contract. Also next year, the company will commence work on additional projects in the pipeline in the Philippines and the U.S.

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