Kwasi Kwarteng, UK Business and Energy Secretary is reported to have said on 20 September that “My task is to ensure that any energy supplier failures cause the least amount of disruption to consumers”.

Wholesale day-ahead gas prices in the UK are reported to have jumped some 9% on 20 September alone. The rise is as a result of a number of factors including increased demand in Asia, lower supplies of gas from Russia and increase in demand as countries emerge from lockdown restrictions and economies start to pick up once more.

Such rapid and significant price increases typically disproportionately impact smaller suppliers and indeed it is widely anticipated that a number of the smaller suppliers will fall into insolvency over the coming weeks and months. The specific process is unique to the energy industry.

Continue Reading Testing times for the “Supplier of Last Resort” regime as UK gas prices continue to rise

The Public Utility Commission of Texas (PUCT) has issued draft regulations to implement new electric weather-related requirements set forth in Texas Senate Bill 3, which was enacted in response to what the PUCT described as the February 1-5, 2021, “Southwest Cold Weather Event.” This Legal Update discusses the two-phase approach the PUCT has proposed.

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On August 20, 2021, the National Hydrocarbons Commission (Comisión Nacional de Hidrocarburos,”CNH”) published in the Federal Official Gazette the Resolution CNH.E.22.008/2021 by which several provisions of the guidelines that regulate the Exploration and Development Plans for the Extraction of Hydrocarbons are modified, added and repealed (the “Resolution”).

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The UK’s Hydrogen Strategy landed this month, sending a strong message that the UK government is listening and willing to commit to private sector partners in order to reach short term and long term hydrogen market goals. However, the scale of the challenge remains huge, requiring the simultaneous development of hydrogen production capabilities and end users in a race against time to meet CB6 and net zero commitments.

Read this overview by Mayer Brown lawyers, Kirsti Massie and Katie Trim of the latest government issued timelines and overview of the Cluster Sequencing process.

 

On July 28, 2021, President Biden signed a national security memorandum that seeks to “significantly improve” the cybersecurity of critical infrastructure systems. The “National Security Memorandum on Improving Cybersecurity for Critical Infrastructure Control Systems” (the “Memorandum”) reflects the administration’s conclusion that “[t]he cybersecurity threats posed to the systems that control and operate the critical infrastructure on which we all depend are among the most significant and growing issues confronting our Nation.” It builds on President Biden’s May 2021 Executive Order on Improving the Nation’s Cybersecurity,1 which included a focus on operational technology systems and primarily addressed the security practices of government agencies and government contractors.2 With recent cyber attacks affecting a major pipeline, water systems and other critical infrastructure, the Memorandum describes two key actions the administration is taking to respond to this intensifying challenge..

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golden sunset in crude oil refinery with pipeline system

After a brief review before the Federal Regulatory Improvement Commission (Comisión Nacional de Mejora Regulatoria, “CONAMER”), on July 28, 2021, the Ministry of Energy (Secretaría de Energía, “SENER”) published in the Federal Official Gazette (Diario Oficial de la Federación, “DOF”) an Emergency Guideline for the Welfare of Liquefied Petroleum Gas Consumers (the “Guideline”) urging the Energy Regulatory Commission (Comisión Reguladora de Energía, “CRE”) to set a maximum price regulation for the sale of liquefied petroleum gas (“LP Gas”) to end users.

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We are excited to share with you our second edition of Working Capital, Mayer Brown’s Projects & Infrastructure newsletter. In this edition, we feature

  • Mayer Brown’s newly elected chair, Jon Van Gorp and his commitment to our clients;
  • Interviews with Houston laterals, Greg Matlock and Phil Lau, regarding carbon capture use and sequestration as well as an interview with John Tormey regarding Texas Storm Uri’s impact on financing renewable energy projects in Texas;
  • A special feature, “Writing Cheques We Can’t Cash? Critical Minerals and the Energy Transition” and
  • Several publications drafted by our Mayer Brown attorneys on topics covering US offshore wind, data centers as an investment asset class, Mexico’s new power regulatory framework, the EU Green Deal and more.

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On July 1, 2021, the US Internal Revenue Service (the “IRS”) released Revenue Ruling 2021-13 (the “Ruling”), which provides additional guidance on the definition of “carbon capture equipment” for purposes of the carbon capture tax credit under Section 45Q of the Internal Revenue Code of 1986, as amended (the “Code”). The Ruling also clarifies that a taxpayer need not own every piece of equipment within a single process train in order to claim the tax credit so long as the taxpayer owns at least one component. In addition, the Ruling provides helpful guidance on determining the placed-in-service date of the single process train for purposes of Section 45Q.

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On June 17, 2021, the United States Federal Energy Regulatory Commission (FERC) issued an order establishing a new Joint Federal-State Task Force on Electric Transmission, calling for nominations for state commission representation on it, setting forth preliminary details of it and identifying topics for it to consider. The Legal Update at the link below provides further detail.

https://www.mayerbrown.com/en/perspectives-events/publications/2021/06/us-ferc-announces-new-joint-federalstate-task-force-on-electric-transmission?utm_source=vuture&utm_medium=email&utm_campaign={vx:campaign%20name}

 

On June 9, 2021, North Carolina Governor Roy Cooper issued Executive Order 218, which targets 2.8 GW of offshore wind by 2030 and 8 GW by 2040 and anticipates the creation of 600,000 related jobs and an annual contribution to North Carolina’s economy of $70 billion. The Legal Update at the link below provides details on what the executive order requires.

https://www.mayerbrown.com/en/perspectives-events/publications/2021/06/north-carolina-a-little-late-to-east-coast-offshore-wind-race-goes-8gw-by-2040-large?utm_source=vuture&utm_medium=email&utm_campaign={vx:campaign%20name}