EMEA Region to boost natural gas capacity
Europe, the Middle East and Africa (EMEA) are expected to build the most new natural gas-processing capacity over the coming years, increasing the overall region’s capacity by 10.1 trillion cubic feet (tcf) between 2013 and 2017, followed by the Americas and Asia-Pacific region, forecasts research and consulting firm GlobalData.
The company’s latest report states that in the EMEA region, Iran and Saudi Arabia will account for the majority of the planned capacity addition, with a share of 43 percent. Meanwhile, the Americas will add 4.4 tcf of new natural gas-processing capacity, with the U.S. having a share of more than 80 percent of this capacity. Asia-Pacific will build 2.4 tcf of capacity, of which Turkmenistan will contribute 635.4 billion cubic feet (bcf) by 2017, reaching 27 percent of the region’s total planned capacity.
Among all the players worldwide in natural gas processing, the National Iranian Gas Co. (NIGC) operates the most active capacity, reaching 7.9 tcf. Gazprom and Saudi Aramco have the second and third highest capacities, at 7.7 tcf and 6 tcf, respectively.
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“In the EMEA region, the Middle East will dominate the new capacity additions, assuming Iran can overcome international sanctions placed on the oil and gas industry,” said Gustavo Bianchotti, GlobalData’s senior analyst covering the EMEA region.
“The contribution of European countries, except Russia, to building new natural gas-processing capacity is very low, primarily because of slow gas reserves growth and decreasing gas production levels in the majority of the key gas-producing countries in Europe.”
As far as the American region, the rapid increase in natural gas production from U.S. shale has led to an increase in the amount of natural gas-processing capacity additions.
“While low prices on ethane and propane do not sound good for producers, they have provided an economic incentive for petrochemical firms to construct plants in the U.S. and/or to ramp up operations in the Americas in order to take advantage of the lower-priced feedstock,” Bianchotti said.
“With the current boom in shale gas production expected to last at least another 40 years, it would be a seemingly wise investment for petrochemical companies to continue processing natural gas in this region,” Bianchotti said.
Hydrostor receives $4m funding for A-CAES facility in Canada
Hydrostor has received $4m funding to develop a 300-500MW Advanced Compressed Air Energy Storage (A-CAES) facility in Canada.
The funding will be used to complete essential engineering and planning, and enable Hydrostor to plan construction.
The project will be modeled on Hydrostor’s commercially operating Goderich storage facility, providing up to 12 hours of energy storage.
Hydrostor’s A-CAES system supports Canada’s green economic transition by designing, building, and operating emissions-free energy storage facilities, and employing people, suppliers, and technologies from the oil and gas sector.
The Honorable Seamus O’Regan, Jr. Minister of Natural Resources, said: “Investing in clean technology will lower emissions and increase our competitiveness. This is how we get to net zero by 2050.”
A-CAES has the potential to lower greenhouse gas emissions by enabling the transition to a cleaner and more flexible electricity grid. Specifically, the low-impact and cost-effective technology will reduce the use of fossil fuels and will provide reliable and bankable energy storage solutions for utilities and regulators, while integrating renewable energy for sustainable growth.
Curtis VanWalleghem, Hydrostor’s Chief Executive Officer, said: “We are grateful for the federal government’s support of our long duration energy storage solution that is critical to enabling the clean energy transition. This made-in-Canada solution, with the support of NRCan and Sustainable Development Technology Canada, is ready to be widely deployed within Canada and globally to lower electricity rates and decarbonize the electricity sector."
The Rosamond A-CAES 500MW Project is under advanced development and targeting a 2024 launch. It is designed to turn California’s growing solar and wind resources into on-demand peak capacity while allowing for closure of fossil fuel generating stations.
Hydrostor closed US$37 million (C$49 million) in growth financing in September 2019.