Gas boom risks 'perfect storm' for climate, economy: report

PARIS, France — Global natural gas capacity under construction has doubled in a year according to new analysis that warned Tuesday the investment boom in the world's fastest-growing fuel risks a "perfect storm" of climate chaos and stranded assets.

Capital expenditure on liquefied natural gas (LNG) facilities has surged from $82.8 billion to $196.1 billion over the last 12 months, according to a report by Global Energy Monitor.

Following a string of divestments from high-profile LNG funders, the report warned that at least two dozen projects were recently cancelled or are in serious financial difficulty.

"LNG was once considered a safe bet for investors," said Greg Aitken, research analyst at Global Energy Monitor.

"Not only was it considered a climate-friendly fuel, but there was substantial governmental support to make sure that these mega-projects were shepherded to completion with all the billions they needed.

"Suddenly the industry is beset with problems," Aitken said.

As the coronavirus pandemic squeezes investors and a growing social movement against new gas projects gathers pace, the report said troubled projects were facing a range of difficulties in sustaining finance.

In the past year Berkshire Hathaway and the governments of Sweden and Ireland were among financiers to drop several billion dollars worth of gas project funding, it noted.

'Economically unsound decision'
While its proponents push LNG as a "bridge fuel" because it is less polluting than coal, a new gas-fired power plant has roughly the same environmental impact as a new coal plant, given the leakage of methane throughout the supply line.

Methane is dozens of times more potent a greenhouse gas than carbon dioxide over a 100-year time scale.

The landmark 2015 Paris climate deal enjoined nations to limit global temperature rises to "well below" two degrees Celsius (3.6 Fahrenheit) over pre-Industrial Revolution levels.

The accord also commits countries to work towards a safer warming cap of 1.5 degrees Celsius.

According to the Intergovernmental Panel on Climate Change (IPCC), the safest and surest way to reach the 1.5 degrees Celsius goal would require a 15 percent decline in gas use by 2030 and a fall of 43 percent by 2040.

Global Energy Monitor said that any new gas infrastructure "directly contradicts the Paris climate goals".

The European Investment Bank (EIB) — the world's largest multilateral lender — said last year it was ceasing funding for nearly all new fossil fuel projects.

EIB vice-president Andrew McDowell said investing in new LNG capacity "is increasingly an economically unsound decision".

"We need to take advantage of opportunities that put us firmly on the path to reaching net-zero by 2050 whilst securing more jobs in the short and long term," he told AFP.

"This will undoubtedly be challenging, and it can't be instant. But it must happen."

Agence France-Presse

Canadian firm looking for PH partners to introduce carbon-capture technology

MANILA - Canada's SaskPower International Inc plans to introduce in the Philippines technology that promises to reduce coal plant emissions.

Brad Wall, premier of the Canadian province of Saskatchewan, told InterAksyon.com that the state-run power company will look for local partners interested in putting up carbon capture facilities.

"We've actually developed a consortium. It is an offer for companies, electrical utilities, to join us. We'll share the engineering expertise that we have, share whatever technological transfer there is," he said.



SaskPower is putting up a carbon capture facility beside a 100-megawatt coal plant in Sasketchawan. The facility is expected to bring down carbon and sulfur dioxide emission by up to 90 percent.

The facility will allow the company to "trap" said emissions, which could then be sold to industries.

"We've sold all the CO2 -- the million tons per year that we'll capture -- we've sold it all to the oil companies," Wall said.

The carbon capture facility, which should operate commercially by April next year, is the first of its kind in the world.

"We're very excited. It actually works. SaskPower is the name of the power company. In addition to that, the consortium will also be run by SaskPower, potentially to transfer the technology in their markets," Wall said.

Michael J. Monea, SaskPower president, said the company's carbon capture technology would make coal plants competitive with natural gas facilities cost-wise at about $80 per megawatt.

SaskPower invested $1.2 billion for its showcase carbon capture facility, but the amount needed to put up succeeding ones should go down by over 30 percent, he said.

The technology would also reduce emissions even though natural gas emits less than half what coal plants discharge, Monea said.

SaskPower is Saskatchewan's primary power producer with a portfolio of natural gas, coal, hydro and wind plants.

At present, coal accounts for over a third of the Philippines' power generation mix. Coal's share in the mix is expected to shoot up as it fuels many of the power plants in the pipeline.

source: interaksyon.com

Gas prices turn upward after long skid

(CNN) -- U.S. gasoline prices have gone up by nearly a dime a gallon in the past two weeks, reversing a three-month slide amid an increase in crude oil costs, according to a new nationwide survey.

The average prices of a gallon of regular gasoline at filling stations in the continental United States jumped about 9.6 cents per gallon, to just under $3.51, according to the latest Lundberg Survey. Gas prices had been falling since April 6, skidding downward by 56 cents a gallon by mid-July, survey publisher Trilby Lundberg said Sunday.

The price of crude oil -- the largest single component of gasoline -- on the New York futures market went up about $3 a barrel in the past two weeks, closing Friday at more than $90. That helped drive prices upward, Lundberg said. But she said motorists may see "a comparative period of stability" at the pump.

"Weakness in demand around the world from economic conditions is keeping the price from rising further, while the Middle East tensions and a great deal of noise in the currency markets about the possibility of printing more money in Europe and the United States is having the effect of raising the price of crude," she said.

The Lundberg Survey samples prices at about 2,500 gas stations across the Lower 48 every two weeks, most recently on Friday. Lundberg said the current price is still 46 cents below the April peak and down more than 10 cents from a year ago.

Jackson, Mississippi, had the cheapest average prices in the latest survey, at $3.14 a gallon. The highest were on Long Island, New York, at $3.83.

A sampling of prices in other U.S. cities:

Atlanta: $3.49

Baton Rouge. Louisiana: $3.30

Boston $3.62

Cleveland: $3.45

Denver: $3.47

Phoenix: $3.21

Portland, Oregon: $3.58

San Francisco: $3.80

source: CNN

US Crude Oil Supplies Shrank by 100,000 Barrels

NEW YORK (AP) — The nation's crude oil supplies fell slightly last week, the government said Wednesday.

Crude supplies declined by 100,000 barrels, to 384.6 million barrels, which is 4.2 percent above year-ago levels, the Energy Department's Energy Information Administration said in its weekly report.

Analysts expected a drop of 1 million barrels for the week ended June 1, according to Platts, the energy information arm of McGraw-Hill Cos.

Gasoline supplies grew by 3.3 million barrels, or 1.7 percent, to 203.5 million barrels. That's 5.1 percent less than year-ago levels. Analysts expected gasoline supplies to increase by 500,000 barrels.

Demand for gasoline over the four weeks ended June 1 was 4 percent lower than a year earlier, averaging 8.8 million barrels a day.

U.S. refineries ran at 91 percent of total capacity on average, up 2.9 percentage points from the prior week. Analysts expected capacity to rise to 88.7 percent.

Supplies of distillate fuel, which include diesel and heating oil, rose by 2.3 million barrels to 120 million barrels. Analysts expected distillate stocks to grow by 600,000 barrels.

Benchmark U.S. crude rose $1.57 to $85.86 a barrel in New York.

source: nytimes.com