Page 11 - AsiaElec Week 14

AsiaElec GAS-FIRED GENERATION AsiaElec
AEMO warns of gas supply shortfalls
AUSTRALIA
AUSTRALIA’S East Coast gas market is on track to experience natural gas shortages within the next five or so years, a new report by the Aus- tralian Energy Market Operator (AEMO) has warned.
Supply from existing and committed gas developments is expected to meet forecast East Coast demand until at least 2023, AEMO said in its latest Gas Statement of Opportunities (GSOO) report on March 27.
It said: “Gas production from only existing and committed gas developments is forecast to provide adequate supply to meet gas demand until between 2023 and 2025 depending on sce- nario, provided cargoes of export LNG above contracted levels are diverted to meet domes- tic demand if needed.” The operator, however, warned that a slide in production from south- ern gas fields would require the development of either new production capacity or liquefied nat- ural gas (LNG) import terminals to avoid supply shortfalls in southern states from 2024.
Thereportsaid:“Southernsupplyfromexist- ing and committed gas developments will reduce
by more than 35% (163 petajoules) [4.25bn cubic metres] over the next five years, despite an increase in committed gas developments in the past year.” It noted that the development of anticipated gas field projects, which are not yet committed, would improve resource adequacy until at least 2026. However, final investment decisions (FIDs) for these projects face an uncer- tain future following the collapse of international oil and gas prices.
While local producers such as Beach Energy and Cooper Energy are upbeat about domes- tic-focused gas supply projects, changes on the international LNG market could have unex- pected consequences for the local gas scene.
The GSOO said: “Global oil and gas demand trends may see LNG demand varying from expectations and indirectly impacting prices and availability of domestic supply and LNG imports. Impacts of the COVID-19 coronavi- rus (not modelled) may lead to decreased levels of global LNG demand and domestic gas con- sumptionintheshortterm.”™
POLICY
Indian discoms forced
to meet take-or-pay
commitments
The Indian government has come to the rescue of electricity generating companies through a clarification on April 6 which stated that the distribution companies will have to continue meeting their payment obligations and pay fixed charges to the projects in case power is not being taken.
Power companies welcomed the clarification saying it will deter discoms from using wrong justification to invoke force majeure.
The Union power ministry in clarification to its March 28 order said, “The obligation
to pay for power within 45 days of the presentation of the bill or as provided in the PPA (power purchase agreement) remains unchanged,” and added that the obligation
to pay for capacity charges as per the PPA shall continue. The remains unchanged for transmission charges, the order said.
NEWS IN BRIEF
It said the late payment surcharge reduced by the central electricity regulator will apply to period between March 24 and June 30. Payments which were overdue before March 24 and will be due after June 30 will attract the delayed payment surcharge at rates given in the PPA/regulations, the clarification said.
ET on April 3 reported that the power companies have said that nationwide lockdown to prevent coronavirus spread is no premise for state electricity distribution utilities to invoke force majeure clause
and renege from contractual obligations under power purchase agreements (PPAs). Discoms of states like Delhi, Madhya Pradesh, Telengana, Punjab, Haryana and Uttar Pradesh have also invoked force majeure event as per their PPAs with many power plants citing reduction of electricity demand due to lockdown to prevent the spread of Covid-19.
“There has been some misconception regarding the interpretation of this order and queries have been received in this ministry. It is made clear that the obligation to pay for the power within 45 days of the presentation of bill (or the period given in the PPA) remains the same. Therefore, while for scheduling power the distribution companies will need to
either deposit or give LoC for 50 per cent of the cost of power they want to be scheduled, the remaining 50 per cent will have to be paid within the period given in the PPA, failing which the delayed payment surcharge will apply,” the clarification said.
Indonesia to electrify 433 remote eastern villages
The government has set a target of electrifying 433 remote villages in Indonesia’s four most impoverished provinces before the year-end as the country struggles to provide electricity for the entire population.
President Joko “Jokowi” Widodo has pledged to introduce regulations that boost funding for the village electrification programme, which will cost at least 1.26 trillion rupiah ($76.14mn).
State electricity firm PLN pledged to deploy new technology in mapping and electrifying the 433 remote villages in Papua, West Papua, East Nusa Tenggara and Maluku.
“The number is small compared with the total number of villages in the country
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