Rice University's Baker Institute. A joint study by the James A.
Baker III Institute for Public Policy's Energy Forum and Harvard University’s Kennedy School. Gas-Electric Integration “Swamps” All Other Issues. Panelists at the ELECTRIC POWER 2013 Keynote and Roundtable Discussion in Chicago in May were consumed by the need to ensure future reliability by more closely integrating the gas and electricity markets.
Acknowledged less directly were distortions created by renewable energy subsidies and mandates, onerous regulations affecting coal, and “irreversible” demand destruction caused by the success of energy efficiency and demand management programs. The elephant in the room was the continued demise of electricity markets. Ten years ago, the observation that a $1/MMBtu swing in natural gas prices would lead to a $4/MWh swing in electricity prices (in PJM in this case) would have been hailed as market volatility for merchant generators in robust electricity markets to capitalize on. Global gas price differentials.
‘Asian natural gas prices are four times prices in the US’.
This is a striking statement that has got a lot of airplay over the last two years. Pronounced inter-regional gas price spreads sit in stark contrast with a relatively narrow global price range for the other global energy commodities, crude oil and coal. Global price divergence in the gas market is a function of two main drivers: It is expensive to liquefy, transport and store gas as LNG.The LNG market is relatively immature, with a limited volume of destination flexible supply (flexibility is constrained by source to destination restrictions imposed by long term contracts). Physical and technological constraints mean it will always be a more expensive business moving gas than oil and coal.
Regional price drivers. Untitled. Faith shaken in grandfather Groningen. 13 May, 2013 The vast Groningen gas field in the Netherlands plays an important role in the delivery of both supply and flexibility to the North West European gas market.
Low level seismic activity has been directly associated with extraction of gas at Groningen for over 15 years. But a 3.4 magnitude quake in August 2012 has raised serious questions as to the consequences of maintaining current production levels. An investigation is underway, focused on (i) the increasing probability of higher magnitude quakes with further field depletion and (ii) the need for reductions in production to mitigate the risks associated with further quakes. Any reduction in the volume and flexibility of Groningen production schedules may have important implications for the EU gas market.
A pillar of European supply The Groningen gas field in the north east of the Netherlands is one of the key production resources around which the European gas market has evolved over the last 50 years. U.S. pipelines at a crossroads. The U.S. has enough oil and natural gas pipelines to circle the Earth 100 times, yet many Americans rarely see or even think about them.
That's partly because most pipelines are buried underground, and partly because of their "strong safety record," according to the federal Pipeline and Hazardous Materials Safety Administration, which regulates the industry. But not everyone is so impressed with that record. According to the PHMSA's own statistics, pipeline accidents kill or hospitalize at least one person in the U.S. every 6.9 days on average, and cause more than $272 million in property damage per year. Critics often blame weak regulations as well as lax enforcement.
Shale gaz. GNL - LNG. Nov8_2011_Study_Future_of_European_Gas_Supply_2011_Press_Conference_Paris_short.pdf (Objet application/pdf) Chiffres-stats366-prix-gaz-et-électricité-UE2011-novembre2012.pdf (Objet application/pdf) Benjaminleyre_exane.pdf (Objet application/pdf) Global Gas Glut. GasTerra virtual storage: a valuation case study. The GasTerra TTF virtual storage auction held in mid February failed to clear above the reserve price level.
GasTerra’s capacity auctions provide a useful benchmark for the market value of European gas storage and swing. They also provide an insight into the difference between the expected value and market value for capacity. GasTerra’s reserve price level for each auction is confidential, but the auction failure is indicative of the market’s current unwillingness to pay a significant premium above intrinsic value for seasonal storage capacity. An insight into the auction results. An introduction to spark spreads - Today in Energy. February 8, 2013 Source: U.S.
Energy Information Administration, based on SNL Energy. The spark spread is a common metric for estimating the profitability of natural gas-fired electric generators. The spark spread is the difference between the price received by a generator for electricity produced and the cost of the natural gas needed to produce that electricity. It is typically calculated using daily spot prices for natural gas and power at various regional trading points. The chart above shows spark spreads during 2012, calculated for four locations around the United States. There is also variation in average spark spread levels across regions: New York City tends to have relatively high average spark spreads, while in the Pacific Northwest, a low average spark spread reflects low average power prices (because of an abundance of low-cost hydropower, particularly in the late spring and early summer).
Spark spread calculation. Notebenchmarckingitm-14.pdf (Objet application/pdf) NG-71.pdf (Objet application/pdf) Energy and Climate Change Committee - Written Evidence. Un concurrent russe essaie de mettre fin au monopole d’exportation de Gazprom. U.K. Natural Gas Falls as Norwegian, Dutch Imports Rise. U.K. natural gas for same-day delivery fell as Norwegian flows increased to a nine-month high and imports from the Netherlands rose, leaving the delivery network with excess fuel.
The within-day contract slid as much as 0.9 percent, broker data compiled by Bloomberg show. Norwegian flows were at a rate of 132 million cubic meters a day, the most since Bloomberg started compiling the Gassco AS data in January. Dutch imports through BBL Co.’s pipeline rose to a rate of 39 million cubic meters a day, the most since April 14, according to National Grid Plc (NG/) data. Canada Week: Natural gas net imports from Canada continue to decline - Today in Energy. November 30, 2012 Sources: U.S.
Energy Information Administration, based on the Department of Energy, Office of Fossil Energy.Note: Data for 2012 reflect averages of all months from Jan-August, 2012. 00755640, version 1] Relations UE-Russie : les enjeux d'une nouvelle architecture gazière. r0412.pdf (Objet application/pdf) Statoil and Wintershall in natural gas deal. STAVANGER, Norway, Nov. 20 (UPI) -- Norwegian major Statoil announced Tuesday it signed an agreement with Germany's Wintershall to deliver natural gas to the regional European market.
Statoil said it will deliver 1.5 trillion cubic feet of natural gas to German and surrounding markets under the terms of a 10-year sales agreement. Wintershall Chief Executive Officer Rainer Seele said the agreement benefits both companies. "The agreement with Statoil, a long-term and reliable energy partner with Germany for decades, is a significant milestone for Wintershall," he said in a statement. "For us this means that we can also use the volumes we produce from the North Sea in Europe in the future without having to expand our own infrastructure. " Actuelle - Édito Énergie - Towards gas-on-gas competition in Europe from trends to reality? Last week Centrica announced having signed a three-year gas supply contract with Gazprom Marketing and Trading UK entirely priced against UK spot gas market (NBP).
This move follows other announcements in the sector, such as EON long-term gas supply contracts renegotiation, which allowed it to almost double its net-profit forecasts for 2012, or BP intention to sell Shaz Deniz II gas with spot-indexed contracts. All major European suppliers have been able to renegotiate long-term oil-indexed contracts with Gazprom lately and, more generally, contracts are increasingly being based on some spot-indexed price formula.
How could that happen and what does it mean? First, the economic and market context is one of the causes of this shift. Tarifs du gaz : la CRE veut plus d'indexation sur les prix spots du gaz. 30 septembre 2011 - La Commission de Régulation de l'Energie (CRE), autorité administrative indépendante en charge de la régulation des marchés de l'énergie, a remis son apport au gouvernement sur la formulaire tarifaire servant de base au calcul des tarifs réglementés du gaz naturel. Bernhardklocke_gelsenwasser.pdf (Objet application/pdf) La fixation des prix avec l'ouverture du marché du gaz- Altergaz. GAZELEC 2011, le meeting des décideurs de l'énergie - Paris, 27-28-29 Septembre 2011. Les flux d'énergie électrique sur le marché français tels qu'ils sont organisés par la loi NOME peuvent être schématisés comme suit : Avant la mise en place de la loi NOME, la consommation des clients finals est assurée principalement par des transactions hors marché (contrats aux tarifs réglementés).
Le marché de gros français est constitué par les pertes de réseaux, 12 % de la consommation finale et les exportations. La mise en place de la loi NOME ne va pas entraîner de mouvement majeur sur le marché de gros qui va rester sensiblement inchangé. La fin du TaRTAM puis progressive des tarifs verts et jaunes va réduire la part de la demande traitée hors marché au profit d'une demande traitée via l'ARENH. A compter de 2013, avec la possibilité d'acheter les pertes via l'ARENH, le marché de gros français sera amputé de 12% de sa taille. Web.mit.edu/mitei/research/studies/documents/natural-gas-2011/NaturalGas_Report.pdf. Coûts prévisionnels de production de l'électricité - Agence internationale de l'énergie. What If We’re Wrong About Natural Gas? Most analysts are incredibly bullish about the prospects of shale gas production in the United States. An early preview of the annual U.S. government energy projections, released last month, sees U.S. gas production rising steadily for decades.
Petrochemicals producers are building new plants, and other industrialists are conjuring schemes for exporting the fuel. Security hawks dream of compressing the gas and putting it into cars and trucks so that the United States can use less oil. Some environmentalists are relieved that gas will back out coal and thus cut carbon emissions. But what if we’re wrong? There’s one natural response to this possibility: So what? That’s true up to a point. Power Plant Regulation. What happens, though, if that gas turns out to be a mirage?
Some may think that this is still a good outcome – after all, aren’t coal plants dirty? La fiscalité du gaz naturel en France. 9 septembre 2008 (mis à jour le 27 août 2013) Taxe intérieure de consommation sur le gaz naturel (TICGN) Détail d'un texte. Contribution Tarifaire d'Acheminement (CTA) Marché du gaz - Marché de gros - Marchés. Définitions. Richardkatz_powernext.pdf (Objet application/pdf)