NRG to suspend carbon capture operations at Petra Nova

Market: Coal, Electricity, Emissions, Natural gas
23/09/20

US merchant generator NRG Energy plans to suspend operations at the Petra Nova carbon capture coal unit in Texas late this year and will instead run an attached cogeneration facility on a seasonal basis.

NRG plans to mothball the facility, which is at its WA Parish plant near Houston, Texas, beginning 20 December and run it from just 1 June-30 September, according to a notice posted this week by the Electric Reliability Council of Texas (ERCOT).

The plant's carbon capture operations have been in a reserve shutdown status since May because low oil prices brought by the Covid-19 pandemic made it uneconomical. That status allowed the $1bn facility to be idled but available to ERCOT for generation if necessary or if economic conditions improved.

NRG said last month it will continue to make the 78MW natural gas cogeneration facility that is also at the WA Parish plant available to ERCOT for generating purposes.

NRG and ERCOT could not be reached for comment.

Petra Nova, a joint venture between NRG and global oil and gas company JX Nippon, was brought on line in late 2016. It captures CO2 emissions from the WA Parish coal plant and transports by pipeline to an oil field, where it is injected into mature reservoirs to release more oil.

The project was the only one in the US that was capturing carbon dioxide from a coal-fired electric power plant.

By Nick Georgiou

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19/05/25

EU gas stockbuild rises further in 1H May

London, 19 May (Argus) — Injections into EU gas storage facilities quickened in the first half of May from the second half of April, remaining above the previous two years' pace. Net injections across the EU averaged 3.42 TWh/d on 1-15 May, up from 2.7 TWh/d in the previous two weeks and 2.82 TWh/d over the same period of 2024, the most recent data from EU transparency body GIE show ( see injections graph ). The stockbuild was also slightly higher than on 1-15 May 2023, although below the 3.74 TWh/d average in 2018-22. The EU needs a strong stockbuild this summer to close the gap to the two-year average, as storage facilities entered this summer at a much lower base of 388TWh in store, or just 34pc of overall technical capacity. Stocks have since increased to 497TWh as of the morning of 16 May, but this remains 238TWh lower than the 16 May average in 2023-24, although much closer to the 2018-22 average of 503TWh ( see stocks graph ). The German government's recent decree lowering the country's storage target to 70pc by 1 November from 90pc previously reduces required injections in the EU's biggest storage market, although operator Sefe's continued failure to market significant capacity at Rehden may require a strong stockbuild late in the season. And European legislators' push to drop the EU-wide target to 83pc and to essentially abolish intermediary fill targets further decreases the pressure to inject immediately, but could lead to some firms taking a wait-and-see approach while the legislation is finalised. Prompt prices across major European hubs have dropped to significant discounts to the front-winter price so far this month, incentivising injections. The TTF day-ahead price averaged €34.32/MWh on 1-15 May and the balance-of-month €34.37/MWh, each well below the average for the winter 2025-26 contract of €35.92/MWh. An even larger gap opened up in Germany, with the day-ahead on average €2.32/MWh below the winter and the balance-of-month €2.25/MWh beneath it. Sendout from EU LNG terminals remained strong at 4.3 TWh/d on 1-15 May, slightly down from 4.4 TWh/d in the second half of April but well above 3 TWh/d over the same period of 2024. Chinese LNG demand has continued to hold much weaker on the year after a mild winter that left stocks high, along with booming domestic production and stronger pipeline imports from Russia. This has meant that Europe has faced less competition for marginal cargoes. Additionally, a slight drop in gas demand for power generation has left more gas available to add to storage than a year earlier. The EU's gas-fired power generation slipped to 23.1GW on 1-15 May from 23.7GW a year earlier, according to data from Fraunhofer ISE. By Brendan A'Hearn EU net injections GWh/d EU stocks TWh Send comments and request more information at [email protected] Copyright © 2025. Argus Media group . All rights reserved.

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US LNG developers brush off tariff concerns

19/05/25

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19/05/25

US LNG developers brush off tariff concerns

Houston, 19 May (Argus) — The US' biggest LNG developers have little worry over potential costs from President Donald Trump's 25pc steel and aluminum import tariffs as they prepare to spend billions building new export infrastructure. The top exporters of US LNG so far in 2025 — Cheniere, Venture Global and Sempra — are pushing ahead with plans for new terminals and expansions, dismissing concerns that Trump's protectionist trade policy could throttle projects that would help add more than 80mn t/yr (12bn cf/d) of capacity to the world's largest supplier of LNG by 2030. Sempra and Venture Global both estimate that just 1pc of capital expenditure for the first phases of their respective Port Arthur and CP2 projects is exposed to tariffs. Sempra plans to spend $13bn on the 13.5mn t/yr first phase of the Port Arthur, Texas, project. Venture Global expects to spend $27bn-28bn on both phases of the 28mn t/yr CP2 plant in Louisiana, but has yet to reach a final investment decision for phase 1. About 90pc of the Port Arthur project's spending is with domestic suppliers and contractors, Sempra chief executive Jeffrey Martin told investors in an earnings call on 8 May, with steel for the first liquefaction train fully sourced in the US. The two-train first phase is expected to have its trains on line in 2027 and 2028. Disruptions during the Covid-19 pandemic had already forced the company to identify and adapt to risks in the supply chain. "We expect those diversified sources to help us better manage and mitigate tariff risks," Sempra chief financial officer Karen Sedgwick said. She later added that the firm preemptively began importing materials for Port Arthur LNG into a foreign trade zone in February, a tactic that can reduce or delay duties payments . Neither of Venture Global's existing 12.4mn t/yr Calcasieu Pass and 27.2mn t/yr Plaquemines plants in Louisiana faces tariff risks, chief executive Mike Sabel told investors on 13 May. But up to $350mn of materials in the 20.2mn t/yr first phase of CP2 are subject to duties. The 26 prefabricated trains in phase 1 are being built in Italy and represent the largest exposure (see table) . Venture Global expects 12 of those trains to arrive in Louisiana by the end of the year. Inflation and high interest rates represent a bigger threat, Sabel said, calling it "probably the toughest environment to build our projects since the 1970s". "It's something we work and live every day because of the scale of construction we're doing," said Sabel, whose company has 73.8mn t/yr of capacity in development. Sempra expects to make a final investment decision on the 13.5mn t/yr second phase of Port Arthur LNG by the end of 2025. Venture Global is eyeing a decision on CP2's first phase by mid-2025. ‘Our best salesmen for US LNG' Cheniere, the largest LNG exporter in the US, faces no tariff risks at its 11.45mn t/yr Corpus Christi, Texas, stage 3 expansion. The seven-train project "is basically complete", chief executive Jack Fusco told investors on 8 May, with all materials on site and construction ongoing. The company expects to have the first four trains producing LNG by the end of the year and plans to reach an investment decision this year to add trains 8 and 9. The largest portion of spending for those trains will be on labor, and "a fair amount" of equipment and materials will be sourced domestically, limiting tariff exposure, Fusco said. The company has already spent $500mn in early procurement. Cheniere also plans to jump on what it sees as a friendly permitting window under the Trump administration and add about 17mn t/yr to its existing 33mn t/yr Sabine Pass plant in Louisiana. Fusco said he has been meeting with administration officials in Washington to discuss trade issues and how LNG fits in Trump's energy agenda. The first Trump administration "were some of our best salesmen for US LNG, and that's continued during the president's current administration", Fusco said. Since taking office in January, Trump's administration has worked to buttress the US LNG industry, quickly ending the Biden administration's pause on issuing licenses to export to countries that do not have free trade agreements with the US and making it easier for projects to receive extensions for such licenses. But the new projects by Cheniere, Venture Global and Sempra may benefit from having already been in at least preliminary development when Trump unveiled the metals tariffs in February. For developers in earlier phases who are just now procuring supplies, "it's a different story", Alex Whittington, director of international affairs at Cheniere, told a conference in April. By Tray Swanson Venture Global CP2 Phase 1 - Tariff Exposure Component Country of Origin Delivery Status Tariff Exposure Liquefaction trains Italy First module delivery in mid-2025 $145mn-255mn Pre-treatment modules Fabricated in US First module delivery in mid-2026 $10mn-20mn Power island components US, Europe, Vietnam Delivered, major equipment in US storage $3mn-5mn Piperack modules, structural steel and pipe Various Piperack and structural steel procured $6mn-10mn Balance of plant Various Major bulk materials procured $40mn-50mn LNG tanks Various 9pc nickel steel plate and pipe piles procured $6mn-10mn Total $210mn-350mn — Venture Global Send comments and request more information at [email protected] Copyright © 2025. Argus Media group . All rights reserved.

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EU, UK to ‘work towards’ linking carbon markets

19/05/25

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19/05/25

EU, UK to ‘work towards’ linking carbon markets

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Australian carbon lobby urges government program reform

19/05/25

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19/05/25

Australian carbon lobby urges government program reform

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US House panel votes down Republican megabill

16/05/25

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16/05/25

US House panel votes down Republican megabill

Washington, 16 May (Argus) — A key committee in the US House of Representatives voted today to reject a massive budget bill backed by President Donald Trump, as far-right conservatives demanded deeper cuts to clean energy tax credits and social spending programs. The House Budget Committee failed to pass the budget reconciliation bill in a 16-21 vote, with four House Freedom Caucus members — Ralph Norman (R-South Carolina), Chip Roy (R-Texas), Josh Brecheen (R-Oklahoma) and Andrew Clyde (R-Georgia) — voting no alongside Democrats. A fifth Republican voted no for procedural reasons. The failed vote will force Republicans to consider major changes to the bill before it comes up for a vote on the House floor as early as next week. Republican holdouts say the bill would fall short of their party's promises to cut the deficit, particularly because it would front-load increased spending and back-load cuts. The bill is set to add $3.3 trillion to the deficit, or $5.2 trillion if temporary provisions were permanent, according to estimates from the nonpartisan Committee for a Responsible Federal Budget. Some critics of the bill said the proposed cut of $560bn in clean energy tax credits is not enough, because the bill would retain some tax credits for new wind and solar projects. "A lot of these credits have been in existence for 30 or 40 years, and you talk about giveaways, we want to help those who really need help," Norman said ahead of his no vote. "That's the heart of this. Sadly, I'm a no until we get this ironed out." Negotiations will fall to House speaker Mike Johnson (R-Louisiana), who can only lose three votes when the bill comes up for a vote by the full House. But stripping away more of the energy tax credits enacted in the Inflation Reduction Act could end up costing Johnson votes among moderates. More than a dozen Republicans on 14 May asked to pare back newly proposed restrictions on the remaining clean energy tax credits. Ahead of the failed vote, Trump had pushed Republicans to support what he calls the "Big Beautiful Bill". In a social media post, he said "Republicans MUST UNITE" in support of the bill and said the party did not need "GRANDSTANDERS". The failed vote has parallels to the struggles that Democrats had in 2021 before the implosion of their push to pass their sprawling "Build Back Better" bill, which was later revived as the Inflation Reduction Act. Republicans say they will work over the weekend on a compromise. The House Budget Committee has scheduled another hearing at 10pm on 18 May to attempt to vote again on the budget package, but any changes to the measure would occur later, through an amendment released before the bill comes up for a vote on the House floor. By Chris Knight Send comments and request more information at [email protected] Copyright © 2025. Argus Media group . All rights reserved.

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