There are still people who believe that the price of oil must go up eventually. This is just a small snippet from an American news paper, they are starting to export LNG big time over there and that can only knock OPEC and Russian oil/gas off of their pedestal :- A San Diego energy company says it has federal permission to boost planned exports by 39 percent from a proposed expansion of the plant it’s building in southwest Louisiana. Sempra Energy said Monday that the U.S. Department of Energy approved exporting an additional 1.4 billion cubic feet of natural gas a day to countries outside U.S. free-trade agreements. According to a news release, that will bring Cameron LNG’s export capacity to 3.5 billion cubic feet a day, or 24.9 million tons a year.
Hinkley will go ahead but maybe not with Chinese money. 6 billion to find. 20 billion already committed to the EDF HPC project. Doesn't mean though that we won't need more gas to fuel our existing gas power stations and maybe new build. Balance of different sources is key. We have the biggest combined cycle Gas power station in Europe in Wales, Pembroke. Close by we have huge gas storage.
Reports in the press that someone connected with the Chinese Energy industry has been arrested in the USA on industrial espionage charges. Also the Australian govt has refused to allow a Chinese company to take over their national grid, on national security concerns. Maybe makes Hinckley slightly less likely. But on the other hand we will be losing 5GW of nuclear capacity between now and 2023 so the there is a national need for a replacement to get underway ASAP.
Why not build more gas fired stations - this is is why not according to Business Green...
The trouble is nobody wants to build new gas right now because they can't see enough spikes in the price to make it worth building new gas without some sort of incentive," ..... "My prediction is that government is going to have to come up with some mechanism beyond the capacity mechanism, to encourage gas build to bridge the gap."
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