World non-renewable energy discussion

tphuang said:

- As such, American NG (Henry Hub) is at $6 per MM BTU

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- Europe is at $50 and Asia is at $40.
- So cheap energy in America and really expensive energy everywhere else.

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This statement is not accurate.

Most of China's energy production is from coal, then hydro and other renewables.
Natural gas only accounts for 3% of electricity production in China.
For heating purposes, it is still mostly coal as well.

And even in the USA, we can see that electricity produced by Natural Gas is more expensive than coal. See below


So China still has access to cheap energy.

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We can also see that China is massively ramping up installations of renewable energy this year to record levels AND also reopening coal mines to ensure there are no electricity shortages. Given the disruptions in Europe, production is going to shift to China and therefore there should be more demand for electricity in China. But the rampup of Chinese wind/solar/batteries/electric vehicles continues to boom, so hopefully coal production can start dropping next year.

FairAndUnbiased said:

Gazprom manufactures it's own pipes. Russia also has a large steel fittings industry including oil and gas grade fittings.

What Russian industry might have a hard time with are the latest electronics like well monitors, flow meters, etc.

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Yeah, it is kind of a win-win situation. Building out the new infrastructure gives the Russians cheapest transportation cost to the 2 largest gas markets. The Chinese OEM suppliers would also have a field day supplying to such a large market and build a big track record for sales into other markets to challenge the existing manufacturers.
Would be funny 20 years down the track that we end up selecting Chinese OEM kits for US gas jobs over the likes of Honeywell and Rotork, though this wouldn't surprise me one bit if it happens.

FairAndUnbiased said:

What Russian industry might have a hard time with are the latest electronics like well monitors, flow meters, etc.

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Does China have this technology and can it produce it in sufficient capacity to service PoS-2?

FairAndUnbiased said:

Gazprom manufactures it's own pipes. Russia also has a large steel fittings industry including oil and gas grade fittings.

What Russian industry might have a hard time with are the latest electronics like well monitors, flow meters, etc.

Click to expand...

these products. Russia also developed lithium battery with 2600 charge cycles working in extreme weather. quality should match the products it will be installed.

ZeEa5KPul said:

Does China have this technology and can it produce it in sufficient capacity to service PoS-2?

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Yes, that stuff is relatively easy for China. You can buy it on Alibaba in vast (pipeline scale) quantities. The unknown is the pumps. Reciprocating pumps for oil is A-OK but not sure if turbine pumps for natural gas are OK.

FairAndUnbiased said:

Yes, that stuff is relatively easy for China. You can buy it on Alibaba in vast (pipeline scale) quantities. The unknown is the pumps. Reciprocating pumps for oil is A-OK but not sure if turbine pumps for natural gas are OK.

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I am curious about it too. I’ve used solar turbines which is a caterpillar company, and Siemens and GE ones but never heard of any Chinese equivalent. I know they used to use GE ones in China for distribution but that was like 8 years ago.

This keeps getting more interesting.

Russia is now dropping the hammer on EU.

So the EU solution is to announce that they will double imports from Azerbaijian to drumroll 20 bcm by 2027. I guess that extra 10 bcm is really going to cover the 155 bcm they are losing.

surprise, surprise, POS 1 is carrying record amount of natural gas to China

If they can actually build 100 bcm pipeline to China and then export more to India/Pakistan and maybe export more via LNG, that can entirely offset the losses to EU. I'd still be surprised if they stop EU delivery entirely. Maybe, this is to get EU to drop that non-sensical price cap on oil shipments.

I am a little surprised on this news from India

Again, the idea of oil price cap is ridiculous. Only people like Janet Yellen can come up with it.

tphuang said:

This keeps getting more interesting.

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Russia is now dropping the hammer on EU.

So the EU solution is to announce that they will double imports from Azerbaijian to drumroll 20 bcm by 2027. I guess that extra 10 bcm is really going to cover the 155 bcm they are losing.

surprise, surprise, POS 1 is carrying record amount of natural gas to China

https://twitter.com/i/web/status/1548993480977940481

If they can actually build 100 bcm pipeline to China and then export more to India/Pakistan and maybe export more via LNG, that can entirely offset the losses to EU. I'd still be surprised if they stop EU delivery entirely. Maybe, this is to get EU to drop that non-sensical price cap on oil shipments.

I am a little surprised on this news from India

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Again, the idea of oil price cap is ridiculous. Only people like Janet Yellen can come up with it.

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Weird the article mentions that the Gazprom entity GAIL is dealing with is part of Gazprom Germania, doesn't it mean that Germany defaulted on gas delivery and not Russia?

On the Asian side, Japan is paying its highest ever for gas also.
Still lower than the $50/mmbtu that the Europeans are paying, but this is the highest ever they are paying with a vastly depreciating Yen.

Looks like Russia still likes to make money from the Europeans, just at lower volume and higher prices.

Godzilla said:

I am curious about it too. I’ve used solar turbines which is a caterpillar company, and Siemens and GE ones but never heard of any Chinese equivalent. I know they used to use GE ones in China for distribution but that was like 8 years ago.

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I wonder if the Siemens compressor was specified by Germany. Russia makes their own compressors actually so it isn't necessarily a limitations.


It is a bit hard to find since Google seems to censor Russian websites.

I believe Russian compressor, Russian pipeline, Russian fittings, Chinese construction equipment, Chinese instrumentation can create a fully sanctions resistant Power of Siberia 2.