EU considers capping natural gas prices to curb electricity costs. World’s first 630℃ thermal power unit completes commissioning
（2026/3/9—2026/3/15）
Author: Shu-Xin Zhang
International Energy News
1. EU considers capping natural gas prices to curb electricity costs
Armed conflict between the US, Israel, and Iran has caused natural gas prices to soar, disrupting oil and LNG shipments through the Strait of Hormuz, a critical maritime route. Before the war, the European benchmark TTF gas price stood at €31 per megawatt-hour in late February. Following the escalation, prices surged by 100%, exceeding €62 per megawatt-hour this week. Currently, prices remain above €51 per megawatt-hour.
Energy costs account for over 56% of electricity bills. The European Commission President emphasized the need to mitigate the impact when gas dictates electricity prices. “We are preparing various strategies: enhancing power purchase agreements and contracts for difference, state aid measures, and exploring subsidies or price caps on gas,” he stated.
2. Russia pressures US on oil sanctions amid soaring prices
On March 13, Russia warned that global energy markets “cannot remain stable” without its oil, intensifying pressure on the US to ease further sanctions as the Middle East conflict disrupts supplies.
The US has already relaxed some oil sanctions imposed on Russia over the Ukraine war, drawing sharp criticism from Western allies urging continued restrictions as the conflict enters its fifth year. Meanwhile, US-Israeli strikes on Iran and Iranian retaliatory attacks in the Gulf region have paralyzed maritime transport through the strategically vital Strait of Hormuz, severely impacting global energy and logistics.
On March 12, the US Treasury announced a temporary authorization for seaborne Russian oil sales—Russia being one of the world’s largest producers and exporters—as nations scramble to boost supplies and curb prices. Oil prices hit nearly $120 per barrel this week, the highest since the full-scale Ukraine conflict began in 2022.
3. South Africa’s 240MW Mooi Plaats Photovoltaic EPC project officially operational
The 240MW Mooi Plaats Photovoltaic EPC project in South Africa, implemented by China Energy Engineering Corporation’s Gezhouba Electric Power Company, has officially entered commercial operation. It is the largest single solar plant built by a Chinese enterprise in South Africa, marking a significant milestone in Sino-South African clean energy cooperation.
Located near the town of Naauwpoort in South Africa’s Northern Cape Province, the project includes a 240MWac solar farm, step-up substations, switching stations, and an 11.2km transmission line. Over 410,000 high-efficiency 680Wp N-type bifacial modules maximize the region’s abundant solar resources.
Once fully operational, the plant is expected to generate approximately 700 million kWh of green electricity annually—enough to power 200,000 local households—significantly alleviating South Africa’s chronic power shortages and bolstering energy security for industries and residents. It will also cut CO₂ emissions by around 400,000 tons per year, contributing to the country’s transition from a coal-dominated energy mix toward a greener, low-carbon future.
Domestic energy news
1. World’s first 630℃ thermal power unit completes commissioning
On March 10, the world's first 630℃ ultra-supercritical secondary reheat national power demonstration project, the Datang Yuncheng project, completed its unit commissioning. This milestone marks a significant stage achievement in the project’s construction, which is about to transition into the unit ignition and startup phase.
It is reported that the Datang Yuncheng project integrates multiple world-first technologies: it marks the first engineering application of China’s independently developed G115 new heat-resistant steel, overcoming the “bottleneck” problem of long-term reliance on imported high-temperature materials. It globally pioneers raising the steam temperature of coal-fired power units to the 630℃ level, pushing the power generation thermal efficiency beyond the 50% threshold. With a main steam pressure of 35.5 MPa and a power supply coal consumption as low as 256.28 g/kWh, it is currently the world’s highest pressure, highest temperature, most efficient, and lowest coal consumption single-shaft million-kilowatt secondary reheat thermal power unit.
Once operational, compared to conventional million-kilowatt thermal power units, it is expected to save approximately 208,000 tons of standard coal and reduce carbon dioxide emissions by about 540,000 tons annually, offering significant energy savings and carbon reduction benefits.
2. China’s largest coalbed methane field’s annual capacity exceeds 4 billion cubic meters
On March 5, the annual production capacity of China’s largest coalbed methane field, PetroChina’s Daji Gas Field, exceeded 4 billion cubic meters, with its output accounting for over three-quarters of the nation’s total coalbed methane production. It has become a crucial replacement resource for China’s natural gas production growth.
Coalbed methane is an unconventional natural gas resource adsorbed in or free within deep underground coal seams, typically buried deeper than 1,500 meters, offering broad exploration and development prospects. The Daji Gas Field, the site of the nation's first coalbed methane demonstration project, is located in southwestern Shanxi Province. Since the beginning of this year, PetroChina Coalbed Methane Company has drilled 16 new wells and built a new production capacity of 250 million cubic meters, boosting the field’s daily gas output to exceed 11 million cubic meters, a year-on-year increase of 32%.
From 2023 to 2025, the Daji Gas Field has achieved rapid, stepwise growth in coalbed methane production in just three years, consistently leading the development of China’s coalbed methane industry. Since starting gas supply for the winter heating season last year, the field has produced a record-high cumulative total of 1.05 billion cubic meters of natural gas. Currently, the company is steadily advancing the phase II capacity construction project of the Daji Gas Field, which will add an annual production capacity scale of 1.5 billion cubic meters upon completion, injecting strong momentum into ensuring national energy security.
3. Asia’'s largest! Domestically designed cylindrical “Offshore Oil & Gas Plant” construction begins
On March 6, construction began in Qingdao on the cylindrical Floating Production Storage and Offloading (FPSO) unit for the Kaiping South oilfield development project, Asia's largest domestically designed and built cylindrical “offshore oil and gas plant.” The FPSO, integrating functions of offshore oil and gas extraction, processing, storage, and offloading, is known as an “offshore oil and gas plant.”
The cylindrical FPSO commencing construction has a fully loaded displacement of over 170,000 tons and a maximum oil storage capacity of 122,000 cubic meters. Its process deck has an outer diameter of 110 meters, with a deck area equivalent to 23 standard basketball courts. Both the hull weight and deck outer diameter rank first among similar equipment globally. Upon completion, it will become Asia’s largest cylindrical “offshore oil and gas plant” in terms of dimensions and weight, with the strongest oil and gas processing capacity and the highest level of intelligence.
As a new type of high-end offshore oil and gas equipment, the cylindrical FPSO offers higher space utilization and oil storage efficiency compared to traditional equipment, providing distinct advantages for oil and gas development in harsh deep-sea conditions. During the “14th Five-Year Plan” period, China’s oil and gas production has steadily increased, with offshore crude oil becoming a crucial “growth pole,” accounting for over 60% of the nation’s new annual oil production for five consecutive years.
(Main news sources: CCTVNEWS APP, Xinhua New Media, International Energy Network, China Energy Network, National Energy Administration)
