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On November 10th, the National Development and Reform Commission and the National Energy Administration issued guiding opinions on promoting the consumption and regulation of new energy. The opinions emphasize promoting the integrated development of new energy and industry. They call for actively promoting the coordinated transfer of industries from the eastern region to the eastern region and the local consumption of new energy in industrial bases, and steadily and orderly promoting the transfer of energy-intensive industries to western regions with clean energy advantages. The opinions encourage traditional industries to innovate their processes and improve load flexibility, using more new energy in heating, cooling, and power sectors. They support the integrated development of strategic emerging industries such as information technology, high-end equipment manufacturing, and new materials with new energy in regions rich in new energy resources. The opinions also strengthen the coordinated planning, layout, and optimized operation of new energy and computing facilities, promoting the green development of computing facilities.On November 10th, the National Development and Reform Commission and the National Energy Administration issued guiding opinions on promoting the consumption and regulation of new energy sources. The opinions emphasize accelerating the improvement of system regulation capacity. This includes actively promoting the construction of leading reservoir power stations in river basins and the expansion and upgrading of hydropower capacity. It also calls for accelerating the construction of pumped storage power stations to fully leverage their multiple functions, such as peak shaving and valley filling. Furthermore, it advocates vigorously promoting the construction of technologically advanced, safe, and efficient new energy storage systems, exploring the potential for energy storage regulation in conjunction with new energy sources, and improving utilization levels. The opinions also recommend appropriately planning peak-shaving gas-fired power generation, constructing solar thermal power plants according to local conditions, promoting the transformation and upgrading of next-generation coal-fired power plants, and driving the replacement of coal-fired self-owned power plants with new energy sources. Finally, it emphasizes fully leveraging the role of virtual power plants in aggregating load-side regulation resources and expanding the large-scale application of vehicle-to-grid interaction.On November 10th, the National Development and Reform Commission and the National Energy Administration issued guiding opinions on promoting the consumption and regulation of new energy. The opinions propose innovating pricing mechanisms to promote the consumption of new energy. This includes establishing and improving mechanisms for the formation and adjustment of inter-provincial and inter-regional new energy power transmission prices, encouraging the formation of overall transmission prices for various power sources in new energy transmission bases. The opinions also aim to enhance the flexibility of inter-provincial and inter-regional transmission price mechanisms and study relevant pricing mechanisms for offshore wind power transmission projects. Furthermore, the opinions emphasize implementing and improving pricing mechanisms to promote the local consumption of new energy. They also call for improving and refining pricing mechanisms for regulatory resources such as coal-fired power, pumped storage, and new energy storage. Finally, the opinions stress accelerating the effective transmission of market price signals to end users, improving retail market pricing mechanisms that reflect time-of-use value differences, and studying and establishing a sound residential time-of-use electricity pricing mechanism.On November 10th, the National Development and Reform Commission and the National Energy Administration issued guiding opinions on promoting the consumption and regulation of new energy sources. The opinions emphasize optimizing the integrated development and consumption of hydropower, wind power, and solar power bases. Relying on large-scale hydropower bases in Southwest China, and fully considering the regulatory characteristics of hydropower, the opinions call for optimizing the allocation of new energy sources. For existing hydropower transmission channels with suitable conditions, the opinions recommend rationally increasing the allocation of new energy sources and improving the utilization level of these channels. The opinions also call for optimizing and demonstrating new energy allocation and transmission/consumption schemes in conjunction with the development of the Yaxia hydropower base.On November 10th, the National Development and Reform Commission and the National Energy Administration issued guiding opinions on promoting the consumption and regulation of new energy. The opinions emphasize the need to coordinate the transmission of new energy from desert and Gobi areas with local consumption. They call for the full implementation of the Party Central Committees decisions and plans for desertification control and the development and layout of new energy bases in these areas, promoting both external transmission and local consumption. The opinions prioritize the rational layout of transmission bases in desert, Gobi, wasteland, sandy areas, and salinized areas to improve their economic viability. A responsibility system for implementing national strategies will be established at both the transmitting and receiving ends, strengthening the responsibility of receiving end users for new energy consumption. Through integrated development of new energy, the gradient transfer of industries from eastern regions, and tapping the consumption potential of western regions, the opinions aim to promote large-scale local consumption of new energy from desert and Gobi areas.

Natural Gas Production Increases, but Prices Are Excessively High

Larissa Barlow

Apr 19, 2022 09:34

Natural gas prices have increased significantly. Deliveries of natural gas to LNG export facilities continued to increase. European sanctions against Russia increase the attractiveness of US gas.

 

Natural gas prices surged above $8 per MMBtu on Monday, capturing the attention of business channels. Prices of natural gas hit a 13-year high and closed near the day's highs. LNG demand continues to be high, as natural gas arrivals at LNG terminals increased to 12.74 billion cubic feet per day.

 

According to the National Oceanic and Atmospheric Administration, the weather on the East Coast is forecast to be warmer than typical. The temperature will then begin to fall over the next 8-14 days.

Technical Evaluation

Prices of natural gas jumped beyond $8 and were up 10% intraday, reaching a 13-year high. Prices increased by roughly 16% last week. Near the July 2008 highs of 13.68, the target resistance is visible. At 6.37, support is located near the 10-day moving average. The entire curve through 2022 is presently approaching $8 per MMBtu.

 

The short-term momentum has shifted to the upside after the fast stochastic generated a crossing buy signal. Prices are excessively high. The fast stochastic is printing a reading of 95, over the overbought threshold of 80. Additionally, the RSI is reading 87, which is higher than the overbought trigger threshold of 70.

 

The medium-term trend has shifted to the positive. The MACD (moving average convergence divergence) histogram is in positive territory with an upward sloping trend, indicating that the underlying price of natural gas is accelerating.

 

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