RIYADH: A third gas link between Spain and France is expected to be completed in two and a half years with the right push. Qatar and the UK sign a cooperation deal in the energy field. Also, natural gas in the US climbed over $9 for the first time since 2008. On another note, America’s Lucid Motors will launch one of three major electric vehicle plants in Saudi later this year. Meanwhile, the UK’s National Grid Plc has asked wind turbines to reduce output due to the lack of enough room for electricity storage.
Looking at the bigger picture:
· A third gas link between Spain and France that will be worth between 600 and 700 million euros ($640 and $746 million) is expected to be completed within two and a half years, if the correct procedures are facilitated, Reuters reported, citing the chief executive of Spain’s grid operator. This comes as interconnection projects have received great attention recently, as the EU attempts to drift away from Russian supplies.
· Qatar and the UK have signed a memorandum of understanding in the energy field, MEED reported, citing state-owned petroleum company QatarEnergy. The cooperation deal aims to strengthen the Gulf country’s gas supply in Europe. In addition to this, Qatar is aiming to invest as much as $12.5 billion in the UK over the next five years, according to a statement from the UK government.
· Natural gas in the US climbed over $9 per million British thermal units on Wednesday reflecting the highest increase since 2008. The increase in prices is mainly attributed to the low inventory, which is consequently pushing prices up. Small output growth, high liquified natural gas exports, and storage levels that are 17 percent below the five-year average are all contributing to the surge in prices, CNBC reported, citing the head of natural gas and power services for North America at Argus Media, David Givens.
· American electric vehicle manufacturer Lucid Motors, which is 60 percent wholly owned by Saudi Arabia’s sovereign wealth fund, is on track to construct an electric vehicle assembly plant in the Kingdom later this year. The plant, which is anticipated to be one of three potential electric vehicle plants in the Kingdom, will have the capacity to produce as many as 150,000 vehicles per year.
Through a micro lens:
· British multinational electricity grid operator National Grid Plc has asked several wind farms in Scotland that are connected to the local network to diminish output by 25 megawatts, Bloomberg reported. Despite record wind in Scotland, more electricity is being produced than the grid there can handle, also demonstrating that the UK is unable to deal with or store big amounts of electricity.