Electricity demand outpaces GDP growth, impacting LNG imports
Through 2030, global electricity consumption will grow at least 2.5 times as fast as overall energy demand, the International Energy Agency (IEA) forecasts, with emerging Asian economies accounting for near 80% of incremental electricity and related LNG demand to fuel gas peaking power stations.
Pakistan seeks four Qatari LNG cargoes to avert power crunch
Pakistan and Qatar are in advanced talks to get at least four LNG cargoes routed through the Strait of Hormuz, as Pakistan faces an acute LNG crunch of about 400 million cubic feet per day (mmcf/d). That supply gap already caused electricity shortages and load-shedding.
EU weighs gas price cap amid LNG supply disruption
The European Commission is considering introducing gas price caps, enhanced power purchase agreements (PPA) or contracts for difference (CfD) to shield industry and households from soaring energy costs caused by the halt in Middle Eastern LNG deliveries.
Vietnam urged to enhance LNG-to-Power incentives
Investors are seeking better incentives for integrated LNG and power projects in Vietnam as guaranteed electricity offtake levels are still too low to make projects break even. Developers said Power Purchase Agreements (PPAs) with 25-year tenures or a higher minimum offtake level, ideally 85-90%, would help secure predictable cash flows and attract international lenders.
AI energy needs could flip LNG glut into shortage by 2030
Soaring electricity demand from AI data centres could transform the upcoming global LNG glut into a shortage by 2030, QatarEnergy CEO Saad al-Kaabi said at the LNG2026 conference in Doha. If demand overshoots expectations and the LNG build-out cannot keep pace, prices may spiral.
Japan’s LNG-burn falls again on nuclear power rebound
Energy import-dependent Japan has again lowered LNG-burn for power generation to the lowest levels in a decade due to high fuel prices and robust recovery of nuclear baseload power. Japan’s nuclear reactors generated the highest electricity output since the 2011 Fukushima disaster while gas-fired generation fell 25% in the first half this year.
Vietnam inaugurates first two LNG-fuelled power plants
Nhon Trach 3&4, Vietnam’s first two LNG-fired power plants were inaugurated on Sunday. The US$1.4 billion, 1.6 GW project secured US$1.1 billion in financing – without state guarantees.
NFE withholds LNG shipments to Puerto Rico in tactical move
New Fortress Energy (NFE) is withholding shipments to Puerto Rico over disputed payment terms. The withheld cargoes undermine the island’s ability to meet electricity demand, raising the risk of blackouts during the peak summer season.
Iraq in talks with Excelerate on buying US LNG
Iraq is nearing completion on its first ever LNG purchase agreement, as the country struggles to meet growing electricity demand amid recurring power outages. Excelerate Energy is one of the leading bidders in a competitive tender and currently in advanced talks with Iraq’s state-run South Gas Company.
Tapping Finland’s cheap energy to produce synfuels at Oulu
Verso Energy has reserved a site for a new plant to produce hydrogen (H2) and biogenic synthetic fuels at the Port of Oulu, in northern Finland. Similar production sites exist in various parts of France, and Verso's synfuels production process combines green H2 with carbon dixoide (CO2) recovered from nearby paper and pulp mills.
Electricity in Finland is among the cheapest in Europe: In the first half of 2024, the price of electricity for non-household customers in Finland was the lowest in the European Union at just €0.0939 per kilowatt-hour (€/kWh), given that most of it is derived from hydropower plants.
Using this electricity to produce H2 and related biogenic synfuels is becoming a lucrative business, not least because offtaker are situated very close to northern Finland - just a short shipping distance away across the Baltic Sea in Germany, Poland and Denmark, as well as in the Netherlands and the UK.
Cheap electricity, large talent pool
Asked why Verso chose Oulo as a location for its latest hydrogen plant, CEO Antoine Huard said "the region around the Finish port town is attractive because it provides an abundance of affordable renewable energy and biogenic carbon dioxide.”
In addition, experienced chemical researchers at Oulo University alongside large R&D investments in the area, ensure a “sufficient talent pool,” the Verso CEO said, and this offers the French company potential customers and subcontractors.
And last but not least, the Port of Oulu, with its rail and road links, provides good connections to the rest of the world.
H2-derivative projects already set up
Several other hydrogen production and H2 derivative projects have already been initiated in the greater Oulu region: Gasgrid Finland is planning to establish a hydrogen transport infrastructure to connect Oulu’s hydrogen production with the rest of Finland and other countries in northern Europe.
Verso Energy is hence keen to get its project off the ground, though Mr Huard cautioned the latest “land reservation is only a preliminary decision,” – a final investment decision (FID) will be taken at a later stage.
