The 2016 World Energy Outlook annual report published by the International Energy Agency states that renewables and natural gas are the chosen resources to reach energy demand growth through 2040. Per the report, natural gas will continue to expand while coal and oil usage will decrease, demonstrating that the challenge to meet more ambitious climate goals is within reach. In a separate report from the U.S. Department of Energy’s National Renewable Energy Laboratory, projections also indicate substantial growth in natural gas and renewables through the year 2050, as the cost of carbon-free sources declines and gas prices remain low in the mid-term.
Power Engineering magazine has named the Chesapeake Utilities Corp. Eight Flags Energy Combined Heat and Power Plant “Best CHP Project of the Year.” According to Chesapeake, the plant is a first-of-its-kind for the company and one of the nation’s most energy-efficient cogeneration power plants, with a target efficiency of 78 percent. Located on Amelia Island, the Eight Flags Energy CHP plant operates on natural gas provided by Chesapeake subsidiaries Florida Public Utilities Co. and Peninsula Pipeline Co., and produces three energy outputs: electricity, steam and heated water. Rayonier Advanced Materials purchases the steam and heated water for use in its cellulose specialties production facility; FPU purchases the electricity for distribution to its electric retail customers in the area; and the plant also generates approximately 20 megawatts of base load power, producing enough electricity to meet 50 percent of the island’s demand.
The U.S. Department of Energy has announced its decision granting authorization to LNG’s Magnolia project to export liquefied natural gas from the proposed Lake Charles, Louisiana, facility to countries with which the United States has not entered into a free trade agreement. LNG Managing Director and CEO Greg Vesey said of the approval: “Our Magnolia project team is very pleased to have successfully received this final piece of the regulatory framework enabling our Magnolia LNG project to export U.S.-produced natural gas to the global energy market.”
The future of U.S. liquefied natural gas exports received a further boost as Sempra Energy filed applications with the U.S. Federal Energy Regulatory Commission to accelerate the progress of exports and construction of the proposed Port Arthur LNG plant, based in southeast Texas. Sempra started the filing process with FERC in 2015 to export LNG sourced from U.S. reserves to FTA-approved countries. For U.S. allies in Europe, the wealth of natural gas from domestic shale basins could be used as a means to sever the Russian stronghold on the European economy. In 2015, European leaders stated that LNG sourced from U.S. shale basins may present a source of diversity with the right infrastructure in place. Service for the new plant is slated for 2023.
According to a Michigan Public Service Commission report, Michigan energy customers have enjoyed a savings of approximately $5.2 billion on their utility bills since 2009. Furthermore, in 2015 alone, the state’s energy optimization programs exceeded their own legally set targets by 17 percent for natural gas utilities and by 21 percent for electric utilities. The savings are the result of lowering overall demand through several efficiency upgrades at the individual level—such as adding insulation and replacing inefficient appliances with newer models.
Data from S&P Global Platts showed U.S. exports of natural gas consistently exceeded imports for the first time in almost 60 years in November 2016. During that month, U.S. natural gas imports were just under 7 billion cubic feet, while exports were at 7.4 bcf. Contributing factors include fewer imports from Canada and rising exports to Mexico. This may be a sign that supply and demand are leveling out in the U.S. gas market.
Thirty-three states, mostly in the Northeast and South, saw a reduction in carbon emissions and boosted economies from 2000–14 by making the switch from coal to natural gas and nuclear energy for electricity generation—a feat known as “decoupling,” according to a new study by the Brookings Institution’s Metropolitan Policy Program. Once thought to be nearly impossible because renewable energies were considered a detriment to economic growth, dozens of countries have now decoupled, the United States being the largest among them to experience it for multiple consecutive years, per findings by the World Resources Institute. However, the Brookings study is the first to examine the trend state by state.
The CME Group and Intercontinental Exchange both plan to launch products that would make it easier to trade liquefied natural gas. The increase in demand for LNG has created a market for short-term trading, as opposed to the current framework of multiyear contracts. It would seem CME and Intercontinental Exchange are making an attempt to strike while the iron’s hot, as more investors are interested in trading LNG over a short time frame. The U.S. Energy Information Administration projects world LNG trade to dramatically increase from 2012 levels to reach 29 trillion cubic feet in 2040.
Since 2009, Baltimore Gas and Electric Co. has been educating its customers on basic ways to reduce energy use and cost through its Smart Energy Savers Program. Last December, a major milestone was realized by the utility: BGE has performed 200,000 Quick Home Energy Checkups in its service area. These checkups entail a professional installing up to 22 energy-saving items, including energy-efficient light bulbs, water heater pipe insulation, faucet aerators, efficient-flow showerheads and smart power strips. “Since 2009, customers who scheduled a checkup have saved nearly 110,000 megawatt-hours,” said Chris Walls, manager of BGE’s residential energy efficiency programs. “Learning practical ways to save energy and money at home is easy and comes at no additional cost.”
The Michigan Public Service Commission recently approved a new electric and natural gas utility to service the state’s Upper Peninsula—a scenic but sparsely populated area recognized as having longstanding reliability concerns. The new company—Upper Michigan Energy Resources Corp.—will serve 35,000 electric customers and 5,000 natural gas customers formerly served by subsidiaries of Wisconsin-based WEC Energy Group.