Daily News

South Korea’s sole gas importer Kogas is taking steps to source LNG at cheaper prices through its proprietary gas production. "We need to shift away from a conventional supply method of bringing LNG under high-priced long-term contracts from overseas,” CEO Lee Seung-hoon stressed.

Tuesday, 23 August 2016 09:00 / Markets

China’s oil major turns towards gas

CNPC has decided to step up investment in gas upstream as it seeks to nearly double its gas output to 180 Bcm/y by 2020. Hou Qijun, head of CNPC’s planning department, announced the gas proportion of CNPC's budget will continue to rise; he stressed the cleaner-burning fuel is "our top priority with high potential for profit growth."

Affordable storage is seen as the missing link between intermittent renewable power and reliable energy supply. McKinsey research anticipates costs could fall to $200 per kWh in 2020 – half of today’s price, which would help transform the energy mix of many nations. By 2025, costs of power storage are expected to fall to $160 kWh or less, making it affordable to use for utilities and grid operators.

The government of Gibraltar and Royal Dutch Shell have signed an agreement for the construction of a small FSRU that will receive LNG delivered by Shell for use in an adjacent gas-fired power plant, which is already being built.

Ivory Coast, Ghana and South Africa are tipped to become front-runners in setting up integrated LNG-to-power projects. Developers can arrange attractive import terms as a glut of new gas supply is entering global markets while demand from key Asian buyers remains subdued. 

India’s state-run North Eastern Electric Power Corporation (Neepco) has been forced to delay and downscale its combined-cycle gas power project at Monarchak after ONGC more than halved gas supply.  This meant that the 500 MW project could only be realized based on a 65.42 MW gas turbine and 36.25 MW steam turbine – ready to start as and when there'll be fuel.

Plans for several LNG-fuelled power plants in Chile have been shelved after none of the projects won contracts at the country’s latest electricity tender. A series of wind and solar power projects secured more than half of the contracts at auction.

Even though natural gas is less carbon-intensive than coal, the overall rise in gas-burn in the power sector – amid competitive fuel economics – has made related pollution levels surpass those of coal. The EIA expects emissions from gas will be 10% greater than those from coal over the course of 2016.

Advanced Power has struck a financing deal with BlackRock’s Alternative Solutions Group, who committed to shoulder 10% of the investment of the 1,000 MW Cricket Valley combined-cycle gas power plant. Construction of the CCGT is slated to start in Q4-2016.

Santos, Australia’s third largest gas producer, has spent billions to realise an LNG export project – but now it is struggling to pump enough gas and has to purchase expensive local supplies to feed its Gladstone LNG facility. Power producers down under, meanwhile are facing fuel shortages and call for restrictions on gas exports.

Charlotte-based Duke Energy plans to retrofit its two Cliffside coal power plants to enable them to also burn natural gas. If successful and cost-efficient, the utility will also make similar modification at most of its remaining coal-fired plant fleet by spring 2019.

Shougang Jingtang Iron & Steel Co. of China has awarded an order to Mitsubishi Hitachi Power Systems (MHPS) to deliver one train of blast-furnace-gas (BFG) fired gas turbine equipment for a CCGT that Shougang Jingtang plans to build in Hebei Province.

Offshore wind and gas power plants are expected to fill Britain’s capacity gap amid uncertainty over the future of the contested Hinkley Point nuclear project. The UK government approved plans by Dong Energy to expand a wind farm in the North Sea to a size that would produce nearly as much electricity as the two Hinkely Point reactors.

New technology and advanced software controls are changing the ability for gas plants to respond flexibly to demand and harness waste heat driving renewed profitability for operators. “As plant performance improvements are more and more often optimized through smarter software our solutions are increasingly focused on the integration of hardware and software across the plant,” Andreas Pickard from Siemens told Gas to Power Journal.

Natural gas production worldwide is projected to increase from 342 billion cubic feet per day (Bcf/d) in 2015 to 554 Bcf/d by 2040. According to EIA findings, the largest component of this growth will come from shale resources which will account for up to 30% of global gas production.

News in Brief

GE grid solutions at Cigré2016

Aug 24 – GE’s technical experts present industry’s first SF6-free 145 kV gas-insulated substation, 420 kV gas-insulated line and 245 kV current transformer at the Cigré' trade-show in Paris this week. Experts discuss how digital substations reduce material and maintenance costs, simplify substation design and optimise asset performance.

CB&I selected as contractor for Arden CCGT

Aug 23 – Charlotte-based Duke Energy has chosen Chicago Bridge and Iron to construct its 560 MW combined-cycle power project located in Arden, North Carolina. CB&I will be responsible for hiring sub-contracts through the duration this project.

Shift in trade lowers US industrial energy intensity

Aug 23 – Rising production and exports of goods in less energy-intensive industries are forecast to help reduce industrial energy intensity in the United States. In EIA's Annual Energy Outlook 2016 (AEO2016), industrial energy intensity is expected to decline by 15% from 2015 to 2040

EDF to profit from Hinkley-C even at 25% costs overrun

Aug 22 – EDF would generate a 7.2% rate of return of its proposed £12 billion investment in Hinkley Point C even if project would come in 25% over budget and was completed four years late (by 2029), Barclays analysts said. This is lower than EDF’s initially envisaged 9% rate of return, Barclay’s Stephen Hunt pointed out, but the bank’s assessment raised fresh concerns over DECC’s initial plans to guarantee the French utility a 35-years power offtake contract with subsidised prices at more than twice the current UK wholesale rate.

Dewa selects consultancy for Anweer H phase-4

Aug 22 – Dubai Electricity and Water Authority (Dewa) has awarded a consultancy contract  to help develop the fourth phase of the Aweer H power station. Built at a cost of Dh22.2 million ($6.04 million), phase-4 will add three gas turbines with a combined capacity of 700 MW by early 2020. Once expanded, Aweer H’s current 1,974 MW of generating capacity will rise to 2,674 MW.

Black & Veatch to undertake EPC for Tenaska project

Aug 19 – Black & Veatch has been selected to provide EPC services for the 925 MW Tenaska Westmoreland Generating Station. Construction works for the CCGT began in 2016 with commercial operation scheduled in 2018. Located near Pittsburgh, the plant will run on gas from the Marcellus and Utica Shale and operate in the PJM market zone.

Enerfab to help Gemma Power on Middleton CCGT

Aug 19 – Enerfab, a Cincinnati-based manufacturing and construction contractor, has won two contracts to serve Gemma Power Systems in its work at the Middletown Energy Center in Ohio. The 475 MW combined-cycle gas power plant is due operational in 2018.

IAGT workshop on hydrogen

Aug 18 – Hydrogen-based gas systems can help to solve many environmental objectives at once, with gas turbine facilities using a flexible combination of fuels in a range of small- and medium-sized applications for thermal and electrical energy. IAGT will hold a workshop on the topic on October 17-18, in Montreal, Canada.

Hydropower covers 70% of Brazil's power demand

Aug 18 – Brazil currently has 158 hydroelectric plants in operation, which total more than 89 GW, with 9 additional plants under construction and another 26 authorized. A three-year drought that was exacerbated by the strong 2015–16 El Niño event, so Brazil's hydroelectric output fell during this period, while generation from gas and liquid fuels increased. Brazil's drought situation improved in early 2016 with the arrival of the rainy season.

GE takes over Doosan E&C

Aug 17 – GE Power has completed a $250 deal to acquire the HRSG business of Doosan Engineering & Construction. The strategic move is meant to boost revenues from energy assets acquired last year from France's Alstom, a senior GE executive said.

Flexible conduit fitting launched

Aug 17 – Flexicon has launched a conduit fitting for electrical and data installations in the power generation industry that demand 24/7 continuous operation with no disruption to services. The patented fitting provides tensile strength of up to 70Kg and its anti-vibration and shock protection performance is tested to EN 613373 Cat 2.

Microturbine use helps curb gas flaring

Aug 16 – Capstone Turbine has been commissioned to install two microturbine for an oil and gas platform off the coast of California, due operational in December 2016.The associated gas-fuelled C1000S and C600S microturbines will run in a CHP application and operate using the onsite gas stream to relieve the flaring requirement for the platform.

Works on new CHP start in Kent

Aug 16 – Wheelabrator Technologies, the developer of a £340 million CHP project in Kent, has now reached an agreement with all parties so construction can commence this month. The facility will make use of 550,000 tons of waste per year and generate 43 MW of electricity at full capacity plus process steam for an adjacent paper mill.

MHPS integrates business in EMEA

Aug 15 – Mitsubishi Hitachi Power Systems (MHPS) has integrated its business operations subsidiaries in Europe, Middle East and Africa (EMEA) area, to form a combined unit in the thermal power plant business, while seeking to improve offerings in energy plant construction. Nearly 2,000 employees work for MHPS-EU companies, mainly out o London and Duisburg, with Oliver Klitzke having been appointed as CEO.

Green light for TNB to develop 1,000 MW project

Aug 15 – Malaysia’s Tenaga Nasional Bhd (TNB) has been granted regulatory permission to develop a 1,000 MW combined-cycle gas power plant in Pulau Indah at an estimated cost of RM 3 billion ($  ). TNB was given the option to participate in the future operation of the project, so it is now evaluating its commercial viability. TNB recently started operation of a 1,071 MW CCGT in Prai.

CIC selects SaskPower to build new CCGT

Aug 12 – SaskPower was selected to build and operate a new 350 MW combined-cycle gas power plant in Swift Current, Canada, which is scheduled to start up in the autumn of 2019. Crown Investments Corporation (CIC) had led an open evaluation process to examine IPP proposals as it was seeking to determine best value for ratepayers in the construction of a new plant.

EU approves French CHP scheme

Aug 12 – Regulators at the European Commission have rule in favour of a French scheme supporting gas-fired combined heat and power plants, saying the plans are in line with state aid rules. France seeks to support gas CHP operators by granting them either a feed-in premium on top of the market price or a feed-in tariff in relation to their electricity output.