Global Energy Wrap, July 17 - July 23
Here's a summary of last week’s top global energy news that have the potential to impact global energy supply and demand.
Brazil/ Oil production
Next month, state-run oil company Petrobras will update its 2024-2028 business plan. Analysts expect capital expenditures similar to the $78 billion in the 2023-2027 plan. There have been market concerns of a spending spree under the new leftist government.
Baltic States/ Power grid
In early 2025, the Baltic States will decouple from the Russian power grid. Three decades after splitting from the USSR, and 19 years since joining the EU, Estonia, Latvia and Lithuania still depend on Russia to ensure a stable power system.
China/ Oil imports
Oil refineries will increase Brazilian crude imports in Q3 to replace some of the lost Saudi supply. China, the world's top crude importer, has booked nearly 1 mbpd of Brazilian crude for August and September delivery.
Global power demand
The energy crisis and global economic downturn is expected to slow the growth of global power demand in 2023, but a probable rebound in 2024 means more renewable capacity must be developed, said the IEA. The global growth rate for energy consumption is set to slow to less than 2% in 2023, down from 2.3% in 2022.
Europe/ Solar power
A heat wave is pushing solar electricity output to new highs. Electricity generation from solar sources in Europe climbed 11% in the first half of the year, (YoY), to a record 129 TWh, according to energy think tank Ember.
Morocco/ Natural gas
Shell will supply Morocco with an annual 0.5 bcm of LNG under a 12-year deal signed with utility ONEE. The gas will be transported from Spanish ports using a pipeline until Morocco builds LNG terminals. The LNG will help ONEE operate two power stations in northern and eastern Morocco that used to operate on Algerian gas.
Netherlands/ Green hydrogen
Strict controls on nitrogen emissions undermine EU climate change efforts, jeopardizing €10 billion of green tech investment in Rotterdam. The projects include green hydrogen and biofuels plants, and would reduce CO2 emissions by 10 million tons a year.
Poland/ Nuclear power
KGHM Polska Miedź and South Korea's Samsung C&T Corp will cooperate on low and zero-emission technologies, including small modular reactors. Also, Daewoo Engineering & Construction signed an MoU with Poland’s ERBUD to build new projects, including nuclear power plants.
South Africa/ Renewables
Nearly half of the projects awarded under the relaunch of South Africa's renewable power purchase program have failed, undermining plans to use wind and solar to ease the nation's power crisis. President Cyril Ramaphosa said the country needs to fill a 4 to 6 GW electricity production deficit.
U.S./ Geothermal power
Houston-based Fervo made a breakthrough with a full-scale, 30-day well test at its Project Red site in north Nevada that generated 3.5 MW of electricity. Project Red will connect to the grid later this year and power Google's data centers in Nevada.
Vietnam/ EVs
Automaker VinFast, a unit of Vietnam's largest conglomerate, Vingroup, will start work on a $4 billion EV factory in the state of North Carolina next week. The plan calls for the start of production in 2025, a year later than initially planned.