Asia Pacific Energy Review: April 1-7
This weekly column focuses on energy events in Asia and the Pacific, and all that impacts markets in the region.
Bangladesh / Coal power
Coal will overtake natural gas as the country’s primary electricity source. Local power firms more than doubled coal-fired electricity generation in 2023 over 2022 levels to a record 17 TWh. In the same period, natural gas-fired electricity output only increased 4.7% to 47.44 TWh.
China / EV charging
Oil company Sinopec is installing thousands of battery recharging sites across China. EV sales in the world's largest auto market are expected to account for 40% of the 23 million sold this year. China's gasoline demand is expected to peak in 2025 and then halve by 2045.
China / Natural gas
GCL Holdings is rebuilding a natural gas business after selling hundreds of solar installations to set up gas import capacity. It will join the tier-two LNG players in China such as city-gas companies ENN and Beijing Gas Group that seek to ramp up imports.
China / Solar power
Consolidation in China's crowded solar power sector is pushing smaller players out of the market. Excess production capacity could keep global prices low for years. China accounts for 80% of solar module production capacity.
Global oil refining
More than 20% of global oil refining capacity might shut, claims Wood Mackenzie. Europe and China have the greatest number of high-risk sites – 11 in Europe, and 7 in China. This is based on estimates of net cash margins, cost of carbon emissions, strategic value, etc.
India / Hydropower
Main reservoirs hit their lowest March levels in five years, impacting hydropower availability this summer. Affected are major economic centers such as Bengaluru. The 150 reservoirs that supply water for hydro-electricity were filled to just 40% of capacity.
India / Renewable energy
Adani Green Energy exceeded 10 GW of operational renewable energy portfolio, India’s first company to do so.The capacity breaks down as 7.39 GW solar, 1.4 GW wind, and 2.14 GW wind-solar hybrid capacity.
Indonesia / Mining
The world’s top nickel producer will expand output despite a glut that’s forcing rivals to shut mines. Indonesia’s production capacity for battery-grade nickel is expected to quadruple to 1 million tons by 2030. This will keep prices low and protect long-term demand for the metal crucial to EV batteries
LNG / Spot prices
Asian spot LNG prices were unchanged this week, as demand from buyers continued shoring up prices. The average LNG price for May delivery into northeast Asia held at $9.50/mmBtu, the same as the previous week, which was its highest level since February 9.
Russia / LNG
The Chinese ship Hunter Star delivered the final liquefaction module for Novatek’s Arctic LNG 2 facility. Novatek, the Arctic LNG 2 project itself, and the Belokamenka construction yard near Murmansk have all been sanctioned by the U.S. The transfer of technology used for liquefaction of natural gas has also been banned by the EU.