May 17, 2020

U.S. company plans innovative LNG export

Admin
2 min
Natural gas barge
[email protected] Make sure to check out the latest issue of Energy Digital magazine Last month a Texas company filed an application to the Departme...

Make sure to check out the latest issue of Energy Digital magazine 

Last month a Texas company filed an application to the Department of Energy seeking authorization to export up to 2 MTA (million tonnes per annum) of liquefied natural gas to free trade agreement and non-FTA markets.

Texas LNG recently executed an exclusive lease option agreement with the Port of Brownsville in South Texas, to secure a prime location to develop its innovative export project. 

The company will employ a toll processing business model whereby the LNG customer will pay Texas LNG a fee for converting natural gas into LNG. A tolling arrangement will proved off-takers flexibility through manageable volumes, maximum arbitrage between global gas markets, and freedom to determine its preferred source and pricing index for feed gas.

The 51 acre site located along the Port of Brownsville's deepwater channel provides an optimal location to develop an LNG export facility. The export facility concept involves a liquefaction barge to be fabricated offsite by an experienced and qualified shipyard. The barge will be permanently grounded so that it will no longer be a floating vessel.

Check out more stories on natural gas:

LNG may be used to power heavy hauler trucks

Shell floats hull for world's largest LNG ship

Natural gas, crude oil growth reshapes economy

LNG export could commence in early 2018 given its smaller scale and footprint, lower Capex requirements, and speed to market strategy. The company plans to make a request to the Federal Energy Regulatory Commission (FERC) to begin the pre-filing process by the end of 2014.

Commencement of construction is subject to regulatory approvals and a final investment decision (FID) contingent upon the company obtaining satisfactory construction contracts and long-term customer contracts sufficient to underpin financing of the project.

 “Our unique barge-based liquefaction solution enables Texas LNG to minimize complex onshore civil construction works, reduce the need to construct large LNG tanks onsite, reduce the overall local environmental and labor impact, and expedite speed to market,” said Vivek Chandra, CEO of Texas LNG.

Share article

Jul 26, 2021

Ofwat allows retailers to raise prices from April

Ofwat
Utilities
water
prices
Dominic Ellis
3 min
Ofwat confirms levels of bad debt costs across the business retail market are exceeding 2% of non-household revenue

Retailers can recover a portion of excess bad debt by temporarily increasing prices from April 2022, according to an Ofwat statement.

The regulator confirmed its view that levels of bad debt costs across the business retail market are exceeding 2% of non-household revenue, thereby allowing "a temporary increase" in the maximum prices. Adjustments to price caps will apply for a minimum of two years to reduce the step changes in price that customers might experience.

Measures introduced since March 2020 to contain the spread of Covid-19 could lead to retailers facing higher levels of customer bad debt. Retailers’ abilities to respond to this are expected to be constrained by Ofwat strengthening protections for non-household customers during Covid-19 and the presence of price caps.  

In April last year, Ofwat committed to provide additional regulatory protection if bad debt costs across the market exceeded 2% of non-household revenue. 

Georgina Mills, Business Retail Market Director at Ofwat said: “These decisions aim to protect the interests of non-household customers in the short and longer term, including from the risk of systemic Retailer failure as the business retail market continues to feel the impacts of COVID-19. By implementing market-wide adjustments to price caps, we aim to minimise any additional costs for customers in the shorter term by promoting efficiency and supporting competition.”  

There are also three areas where Ofwat has not reached definitive conclusions and is seeking further evidence and views from stakeholders:   

  1. Pooling excess bad debt costs – Ofwat proposes that the recovery of excess bad debt costs is pooled across all non-household customers, via a uniform uplift to price caps. 
  2. Keeping open the option of not pursuing a true up – For example if outturn bad debt costs are not materially higher than the 2% threshold. 
  3. Undertaking the true up – If a 'true up' is required, Ofwat has set out how it expects this to work in practice. 

Further consultation on the proposed adjustments to REC price caps can be expected by December.

Anita Dougall, CEO and Founding Partner at Sagacity, said Ofwat’s decision comes hot on the heels of Ofgem’s price cap rise in April.

"While it’s great that regulators are helping the industry deal with bad debt in the wake of the pandemic, raising prices only treats the symptoms. Instead, water companies should head upstream, using customer data to identify and rectify the causes of bad debt, stop it at source and help prevent it from occurring in the first place," she said.

"While recouping costs is a must, water companies shouldn’t just rely on the regulator. Data can help companies segment customers, identify and assist customers that are struggling financially, avoiding penalising the entire customer in tackling the cause of the issue."

United Utilities picks up pipeline award

A race-against-time plumbing job to connect four huge water pipes into the large Haweswater Aqueduct in Cumbria saw United Utilities awarded Utility Project of the Year by Pipeline Industries Guild.

The Hallbank project, near Kendal, was completed within a tight eight-day deadline, in a storm and during the second COVID lockdown last November – and with three hours to spare. Principal construction manager John Dawson said the project helped boost the resilience of water supplies across the North West.

“I think what made us stand out was the scale, the use of future technology and the fact that we were really just one team, working collaboratively for a common goal," he said.

Camus Energy secures $16m funding

Camus Energy, which provides advanced grid management technology, has secured $16 million in a Series A round, led by Park West Asset Management and joined by Congruent VenturesWave Capital and other investors, including an investor-owned utility. Camus will leverage the operating capital to expand its grid management software platform to meet growing demand from utilities across North America.

As local utilities look to save money and increase their use of clean energy by tapping into low-cost and low-carbon local resources, Camus' grid management platform provides connectivity between the utility's operations team, its grid-connected equipment and customer devices.

Share article