A commonly accepted measure of market concentration and is calculated by squaring the market share of each firm competing in the market and then summing the resulting numbers.
The EU recommends that its member states have a market concentration in natural gas, as measured by HHI, lower than 2,000.
Emissions or emissions level – The mass of methane emitted into the atmosphere usually expressed in million tons.
Emission factor – The average rate of emissions from a specific source such as a piece of equipment, a facility or a country.
Emission intensity – The ratio of the volume of methane emitted to the volume of natural gas produced (upstream) or transmitted and distributed (downstream) expressed as a percentage.
Fugitive methane emissions – Occur from leakages that are not intended, for example because of a faulty seal or leaking valve.
Vented methane emissions – Emissions that are the result of intentional releases, often for safety reasons, due to the design of the facility or equipment, or because of operational requirements, such as venting a pipeline for inspection or maintenance.
Incomplete flaring methane emissions – These occur when natural gas that cannot be used or recovered economically is burned instead of being sold or vented. The vast majority of the natural gas is converted into CO2 and water, but some portion may not be combusted and is released as methane into the atmosphere.
Super emitters – These are emission sources within a sector or subsector that account for the majority of measured or estimated emissions. Definitions vary as to how to categorise super-emitters: studies have suggested anything between the top 5-15% of sources.
Environment – while the gas industry has portrayed itself as the cleanest fuel (in relations to emissions in general and carbon in particular) it is s till a fossil fuel. Three specific problems have been raised in relation to environmental claims by the gas industry:
A monthly cash settled Exchange Futures Contract based upon the mathematical result of subtracting the price of the NYMEX Henry Hub Natural Gas Futures Contract, from the monthly price published by Inside FERC for the location specified.
This is a monthly cash-settled derivatives contract listed on both Intercontinental Exchange and the Chicago Mercantile Exchange. It was launched in 2012 and reflects a standard lot size of 10,000 MMBtu.
The derivatives contract is settled on the Platts JKM daily physical spot price assessment for LNG cargoes delivered into Japan, South Korea, China and Taiwan, which import nearly 60% of the world’s LNG.
JKM futures are based on prices achieved in financial markets rather than on prices for physical cargoes achieved in commodity markets.
The JKM futures market is relatively illiquid beyond six months, compared to more mature derivatives markets, such as oil futures — which means the quotes may be less indicative of market expectations, although this market has been growing over recent years (2018) and this growth is expected to continue.
Entities that respond to market prices rather than attempt to influence prices by managing production
Coal switching price indicator
Tariff pancaking happens when gas flows across multiple – generally small – zones are charged with successive tariffs for each zone crossed. This can price new supply sources which have to cross several zones out of certain markets. The pancaking means that multiple tariffs are accumulated and become too expensive.
Rapac is building two IPPs in the north of Israel for 80 million. The stations are valued at 1.2 billion shekels.
The Ramat Gavriel IPP station in Migdal HaEmek has an exclusive agreement to sell electricity, steam and water to Nilit. The power station in the Alon Tavor industrial zone will sell its electricity and steam to Tnuva.
Energean is due to supply the natural gas to both stations.
Rapac and American fund Denham Capital bought 57% of the power stations in equal shares from Delek in August 2012 for $5 million in cash and an additional $4-$6 million payment upon financial closure. In January 2014, they acquired another 11.2% each for $3.7 million and later exchanged shares with a third station they owned, leaving Rapac with both stations together with its partner Gat Energy. The turbines are being built by Siemens at a cost of 700 million NIS.
The stations were due to be completed in H2 2018 but Rapac’s Q2 statement that was published on Tuesday indicates that construction will continue until Q2 2019. The company claims that the delays are mainly the result of “work vis-a-vis IEC and negotiations with Siemens regarding the responsibility for the setbacks in the completion of the project.” Rapac also claims that it is eligible for late fees from Siemens, although Siemens itself has demanded payments for excess costs “at a sum that exceeds the late fees.”
According to Rapac, the delays have increased the costs of the projects by 72 million NIS.
