Welcome to Grid Brief! Here’s what we’re looking at today: China greenlights six nuclear reactors, US LNG deliveries are on the rise, Pakistan’s energy woes continue, and more.

China Approves 6 Nuclear Reactors

China has approved construction for six new nuclear reactors.

These approvals mark the first Chinese nuclear power projects for 2023. The total investment for the projects is $17 billion.

“China has the world’s third-largest nuclear fleet behind France and the US and accounts for 23 of the 55 reactors currently under construction globally, according to the World Nuclear Association,” reports Bloomberg. “The country permitted 10 new reactors in 2022, and BOCI Research Ltd. analyst Tony Fei said Monday’s approvals might not be the end for this year, as several other coastal power plants are ready to start new construction.”

In 2022, a total of 10 new reactors were given the green light for development. China possesses the world's third-largest nuclear fleet, trailing only France and the US. Out of the 55 reactors currently under construction worldwide, China is responsible for 23 of them.

According to Bloomberg, the new reactors may increase the price of uranium.

US LNG Deliveries Hit Record High

Revved up by the return of the Freeport LNG terminal, LNG feed gas deliveries to US LNG export facilities have been surging, hitting an impressive average of 12.8 billion cubic feet per day (Bcf/d) in the first half of 2023.

“Over this period, LNG feed gas averaged 8%, or 1.0 Bcf/d, more than the 2022 annual average and 4%, or 0.5 Bcf/d, more than the same six-month period in 2022,” reports the Energy Information Administration. “LNG feed gas set a monthly record in April 2023 at 14.0 Bcf/d, supported by high international demand for U.S. LNG exports, particularly in Europe. LNG feed gas declined slightly in May and June and averaged 13.0 Bcf/d and 11.5 Bcf/d, respectively, primarily because of maintenance at several U.S. LNG export facilities, including Sabine Pass and Cameron.”

The EIA forecasts US LNG exports to average around 12.0 Bcf/d in 2023 and 13.3 Bcf/d in 2024, as it expects two new LNG liquefaction projects—Golden Pass and Plaquemines—to come online. If American LNG flows continue to replace Europe’s Russian pipeline gas, then higher US exports should continue to rise.

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Pakistan Faces Potential Winter Gas Crunch

Pakistan took a pass on a pricey long-term LNG deal, leaving it vulnerable to another energy crunch.

“The country’s latest request for LNG shipments received two offers from Trafigura Group for January to February delivery at a roughly 30% premium to market prices,” reports Bloomberg. “Pakistan LNG Ptd. decided on Monday not to procure the cargoes due in part to the high cost, according to traders with knowledge of the matter.”

Pakistan has been consistently priced out of the LNG market since the beginning of the Ukraine War. Without this deal, Pakistan may see more blackouts and industry stoppages this winter.

Despite the $3 billion in aid the country has recently won to bail out its ailing economy, creditors still see Pakistan as a credit risk.

Conversation Starters

• The White House has proposed reforms on environmental reviews. “The White House’s Council on Environmental Quality on Friday proposed measures that could speed up permitting for clean energy and other projects on federal land,” reports Utility Dive. “Besides setting deadlines for project reviews, the proposed National Environmental Policy Act rule encourages “programmatic” environmental reviews that cover multiple projects or categories of projects, which can speed up development of clean energy, transmission and other infrastructure, CEQ said. “These reforms to federal environmental reviews will deliver better decisions, faster permitting, and more community input and local buy-in,” Brenda Mallory, CEQ chair, said.”

• Niger’s coup has jacked up uranium prices. “The price of uranium has risen only slightly since a military coup in Niger last week as mining operations have continued in the world's seventh largest producer of the radioactive metal, but a consultancy said prices may rise in coming weeks,” reports Reuters. “The spot price of uranium, widely used for nuclear energy and treating cancer, crept up to $56.25 a pound on Monday from $56.15 a week earlier, market research firm and consultancy UxC said on Tuesday. The price has doubled over the past three years, but is well down from a peak of $140 touched in 2007.”

• India’s Russian crude imports fall. “In July, crude imports from Russia into India, the world’s third-largest oil importer, dropped to 2.09 million barrels per day (bpd), down from 2.11 million bpd in the previous month, Viktor Katona, head of crude analysis at Kpler,” reports Oilprice.com. “This month, India’s crude oil imports could further decline and fall to 1.6 million bpd, Katona added. If the projection is correct, India’s imports of Russian oil in August could drop to their lowest level since January 2023.”

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