Ofgem Selects Hornsea One OFTO
UK energy regulator, the Office of Gas and Electricity Markets (Ofgem), has selected Diamond Transmission Partners as the preferred bidder for the offshore transmission of the 1200MW Hornsea Project One wind farm in the UK.Diamond Transmission Partners is a consortium of Mitsubishi Corporation and Chubu Electric Power. Hornsea One is an offshore wind farm is in 120km off the Yorkshire Coast. The project was commissioned in January when it became the world’s largest offshore wind…
Ofgem Rejects 600MW Shetland Cable Gig
Energy regulator Office of Gas and Electricity Markets (Ofgem) has been "unable to approve" plans for two huge subsea cables to take energy from the Scottish islands to the mainland.The transmission links from Shetland and the Western Isles were proposed by Scottish and Southern Energy Networks (SSEN) to connect planned new wind farms on the islands to the national grid.In March 2019 Ofgem said it was minded to approve the estimated £709 million link.The proposal from SSEN for a 600MW transmission link was based on the largest planned project…
ITC: Houston Petrochemical Blaze Extinguished
Firefighters on Wednesday extinguished a fire at a Mitsui & Co petrochemical storage site outside Houston that has been billowing acrid smoke for days, the company said.The blaze at Mitsui unit Intercontinental Terminals Co in Deer Park, Texas, was put out by 3 a.m., but fire crews continued to spray foam and water on the tanks to help keep them cool and prevent the fires from starting again, the company said in a statement.No serious injuries were reported, it said. Fire officials…
Mexico's Oil Reform a Boon for Hard-hit Oil Service, Seismic Firms
Oil service and mapping firms still emerging from an industry recession have received a boost from about $800 million of data sales to energy firms considering bidding for Mexican oil and gas blocks. Mexico will on Wednesday hold its most important auction since a 2013 reform ended the 75-year monopoly on the energy sector held by state-run oil firm Pemex. The government of President Enrique Pena Nieto hopes the deepwater sale will attract tens of billions of dollars of investment to turnaround a slump in the country's oil output. Seven previous auctions drew investment pledges of $61 billion.
Asian Floating Storage Declines as Crude Market Tightens
Strong demand is tightening the market but rising US output could sap efforts to rebalance market. The amount of oil stored on tankers around Singapore has dropped sharply in the last months, the latest indication that OPEC-led supply cuts are successfully tightening crude markets even as U.S. exports have soared. Shipping data in Thomson Reuters Eikon shows around 15 super-tankers are currently filled with oil in waters off Singapore and western Malaysia, storing around 30 million barrels of crude.
BG, Energy Transfer get Nod for Lake Charles LNG
BG Group and Energy Transfer Partners have gained approval from the U.S. energy regulator for their liquefied natural gas (LNG) production and export plant in Lake Charles, Louisiana, the companies said. The go-ahead is a key milestone for the project, one of an array of planned U.S. LNG export plants set to bring shale gas to gas-hungry consumers across the globe. The partners said they would take a final investment decision on the project, expected to export around 15 million metric tonnes of LNG a year, in 2016 and that first LNG exports from the plant could follow four years after construction starts. "Lake Charles LNG has the potential to create several thousand jobs during construction and if fully operational could result in approximately 250 long-term operational positions…
Canada PM Tells Minister to Modernize Energy Regulator
Prime Minister Justin Trudeau instructed his natural resources minister to "modernize" Canada's independent pipeline regulator, said a letter released on Friday that gave details on the newly elected leader's environmental plans. Trudeau asked Natural Resources Minister James Carr to ensure the Calgary-based National Energy Board (NEB) has a balanced representation from across the country, as well as sufficient expertise in environmental science, community development and indigenous traditional knowledge.
Syncrude Uncertain about Plant Fire Affecting Production
The operator of Canada's largest synthetic crude project said on Saturday it is investigating the causes of an early morning fire at an upgrading plant. Firefighters extinguished the blaze, at Syncrude Canada's Mildred Lake upgrading complex in northern Alberta, and no one was injured, said company spokesman Will Gibson in a phone interview. The fire broke out a few hours after the province's energy regulator announced it was shutting in 95 pipelines operated by Nexen, one of the partners in the project, because of safety issues identified following a large oil-related spill in July.
Alberta Investigating Bird Deaths at Oil Sands Site
Alberta's energy regulator said on Saturday it is investigating reports that about 30 blue herons have died at a Syncrude Canada oil sands mine site in the northern part of the Canadian province. The Alberta Energy Regulator said it sent investigators to the Syncrude Canada Mildred Lake site, which is about 40 km (25 miles) north of Fort McMurray. In 2010, Syncrude was fined C$3 million ($2.29 million) for negligence in the 2008 deaths of 1,600 ducks in a toxic waste pond, a case that fueled international concern about the environmental impact of developing Canada's oil sands.
Mexico Approves 5 Shallow Water Areas in Round One Oil Tender
Mexico has approved the terms for five shallow water areas containing around 355 million barrels of oil equivalent as part of its Round One tender to open up the country's oil fields, the country's energy regulator said on Friday. The whole of Round One covers areas including the Chicontepec basin and the Perdido area, as well as shallow and deep waters, and sees investment of up to $50.5 billion between 2015 and 2018, the energy regualtor said in November. (Reporting by Adriana Barrera, Ana Isabel Martinez, Christine Murray and Joanna Zuckerman Bernstein; Editing by Simon Gardner)
Cenovus to Develop Telephone Lake Oil Sands
Cenovus Energy Inc , Canada's No.2 independent oil producer, said on Friday it has received regulatory approval for its Telephone Lake oil sands project, a facility that could eventually produce more than 300,000 barrels of oil per day. The company said the Alberta Energy Regulator and the provincial government approved the thermal oil sands project, which will pump steam into oil sands deposits to liquefy the tar-like bitumen so it can flow to the surface. Cenovus said Telephone Lake will be developed in stages, with a 90,000 bpd initial phase, followed by expansions.
Quebec Eyes Exports of Oils Sand Crude, LNG
Canada's Quebec province could start exporting crude from oil sands and also liquefied natural gas to Asia and Europe from 2017-2018, as buyers search for alternative suppliers to Russia, Quebec's energy minister said. The standoff between Russia and the West over Ukraine has increased Europe's quest for alternative suppliers of oil and gas and Canada's exports to Europe have already started to pick up in the last few months. In September, oil sands giant Suncor exported its first-ever cargo of Western Canadian crude to Europe…
Brazil Setting-up Solar Parks
Brazil finally entered the solar power sector on Friday, granting contracts for the construction of 31 solar parks as it tries to diversify its sources of generation amid an energy crisis caused by the worst drought in eight decades. Brazil's energy regulator, Aneel, concluded its first exclusive solar power auction on Friday, clinching 20-year energy supply contracts with companies that will invest 4.14 billion reais ($1.67 billion) and start to feed the national grid in 2017.
Porter Voices Concerns Over Texas Pipelines
Commissioner David Porter of the Texas Railroad Commission (RRC) Tuesday visited several south Texas border oil and gas facilities and pipeline rights-of-way to meet with field staff, operators, law enforcement and security officials to examine the vulnerability of Texas’ critical industry infrastructure. "While oil and gas operators take every precaution to limit any threat to their equipment and product, the unfettered flow of illegal aliens complicates their efforts,” said Porter. Commissioner Porter recently sent a letter to U.S. Customs and Border Protection (CBP) Commissioner R.
Canada Revamps Pipeline Safety Rules Ahead Of New Projects
Canada unveiled new rules on Wednesday to enhance pipeline safety and spill response, ahead of the development of new projects proposed to carry crude from Alberta's oil sands to coastal ports for export. The new legislation will give Canada's energy regulator, the National Energy Board (NEB), more power to enforce compliance on safety and the authority to step in to lead spill response if a company is unwilling or unable to do so. Companies will also now be held liable, up to C$1 billion ($917 million), for all spills or incidents on their lines, whether or not they are at-fault or negligent, putting the onus on owners to ensure safe operations.
Ofgem to Link Offshore Wind to U.K Grid
U.K. energy regulator Ofgem on Wednesday launched a £400 million tender for linking offshore wind farms in the North Sea to Britain's national power grid. Ofgem is calling for firms to construct high-voltage transmission links to connect the Westermost Rough wind farm owned by WMR Limited, part of DONG Energy, and the Humber Gateway wind farm owned by E.ON., to the grid, Ofgem said in a statement. The two sites have a combined capacity of 425 megawatts, while the successful bidders will receive a guaranteed revenue stream for 20 years, Ofgem said. Offshore wind farm developers are required by the regulator to open their transmission assets for tender to encourage competition and lower prices.
EDF Will Win French Offshore Wind Projects: CEO
Electricite de France SA will win government contracts to build wind farms off the French coast, Chief Executive Officer Henri Proglio said during a press meeting in Paris, Bloomberg reports. The French government is scheduled to pick the winners of the off-shore wind farm contracts this week, Industry Minister Eric Besson said yesterday. France’s energy regulator recommended EDF, as well as Alstom SA and Denmark’s Dong Energy A/S to build four of the five planned offshore wind farms, Les Echos reported on March 31. EDF was very aggressive on the price, the newspaper said (Bloomberg).
U.K. Could Save $5.6 Billion by Linking Offshore Wind Farms: Report
Bloomberg reports that the U.K. could save as much as $5.6 billion by connecting offshore wind farms to each other, cutting down on construction and operating costs. As much as 15 percent of the cost could be knocked off the bill for building wind infrastructure, according to a report today from the Department of Energy and Climate Change and energy regulator Ofgem. The U.K. is seeking to have about 18 gigawatts of turbines at sea installed, up from 2 gigawatts at present, to meet climate change goals. A European “supergrid,” linking Britain’s electricity network to the continent, could reduce the cost of connecting offshore wind farms by a quarter, according to the U.K. parliamentary Energy and Climate Change Committee.
Statoil Criticizes British Gas Plan
Statoil said Britain risks losing out on gas imports if it does not change its pricing system for bringing natural gas onto the mainland from offshore fields. Rune Bjornson, managing director of Statoil (UK) Limited, said the recently introduced system of auctioning entry capacity, or access rights to the national pipeline system, produced very high, volatile prices. "We are not happy with the regime. We would like to have a predictable, stable regime which is more reflective of actual costs," Bjornson told Reuters in an interview. The erratic prices produced by the auction system will discourage producers like Statoil, one of Europe's main gas suppliers, from supplying gas into Britain where demand for natural gas is booming, he said.