MET International to boost LNG trades by 50 to 100%
The Switzerland-based energy company, MET International AG, has announced its plans to increase trades on liquefied natural gas (LNG) in Europe in 2018.
The company’s Chief Executive, Gyorgy Vargha, reported that MET International aim to boost their trade by 50 to 100%.
They are currently trading on average one cargo, or 60,000 tonnes, of LNG per month, and expect this to rise between 1.5 and two cargos per month in 2018.
MET International, established in 2010 as the natural gas trading arm of Parent MET Group, already cover gas, oil, and power generation in Hungary, Croatia, Romania, Slovakia, Switzerland, and the UK, amongst others, with newer subsidiaries in Bulgaria and Italy.
As well as trying to expand its position in the LNG sector, MET International also hopes to further grow in pipeline gas trades.
“LNG traded volumes are roughly 25 percent of our physical gas deliveries yet below 5 percent of our traded gas volumes,” Vargha commented.
“We plan to keep this ratio with growing both significantly. LNG has a role in the region, even if the regional demand is not that high in total.”
Most central European countries economically rely on natural gas, and have been buying it from Russia’s Gazprom.
Poland has announced plans to make further investments in LNG infrastructure in order to long-term reduce dependence on Russia, whilst Hungary is talking with Russia about extending its long-term gas supply deal beyond 2021.
Vargha said that MET International had plans to enter the polish market, but the regulatory environment posed problems.
Drax advances biomass strategy with Pinnacle acquisition
The Group’s enlarged supply chain will have access to 4.9 million tonnes of operational capacity from 2022. Of this total, 2.9 million tonnes are available for Drax’s self-supply requirements in 2022, which will rise to 3.4 million tonnes in 2027.
The £424 million acquisition of the Canadian biomass pellet producer supports Drax' ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) and will make a "significant contribution" in the UK cutting emissions by 78% by 2035 (click here).
This summer Drax will undertake maintenance on its CfD(2) biomass unit, including a high-pressure turbine upgrade to reduce maintenance costs and improve thermal efficiency, contributing to lower generation costs for Drax Power Station.
In March, Drax secured Capacity Market agreements for its hydro and pumped storage assets worth around £10 million for delivery October 2024-September 2025.
The limitations on BECCS are not technology but supply, with every gigatonne of CO2 stored per year requiring approximately 30-40 million hectares of BECCS feedstock, according to the Global CCS Institute. Nonetheless, BECCS should be seen as an essential complement to the required, wide-scale deployment of CCS to meet climate change targets, it concludes.