Daily News

Rolls-Royce Power Systems plants to replicate is recently commissioned gas power station in Mozambique in other African countries, as it seek to expand its presence across the continent. Rising power demand in southern Africa and low electrification levels make it a prime market for small-scale gas engine- or turbine-driven power solutions. 

Decentralized power generation is high on the agenda to in Tanzania, with the Rural Energy Agency (REA) pleading support for individuals or companies that intend to supply ‘mini-grid electricity’. This helps to close Tanzania's 1,290 MW power deficit and give more of its rural population access to electricity.

U.S. crude oil prices have been pushed below $30/bbl, largely due to high inventory levels of crude oil, uncertainty about global economic growth, volatility in equity and non-energy commodity markets, and the potential for additional crude oil supply to enter the market. Crude oil and petroleum product inventories have been growing since mid-2014 and are above five-year averages for this date.

Gas power plants not only generate electricity – they also need to consume it to function safely. At SPE’s Boufarik site in Algeria, Benning installed uninterruptible power supply units on a DC system to ensure continuous functionality of the plant’s control & monitoring systems.
So how is it possible for power plant operators to achieve the reliable, clean, tightly-conditioned power they want, while accommodating a suitable range of AC and DC inputs, outputs and power capacities? 
David Bond, Managing Director at Benning explains...

India’s Supreme Court has permitted Gas Authority of India (GAIL) to build the controversial Kochi-Mangalore gas pipeline, paving the way for more LNG imports to fuel idled, or underutilized gas-fired power plants in southern India.

Utility-scale renewable power plants across the US are seen to step up their supply of electricity to the grid by 9% in the course of this year. EIA analysts expect much of the growth to come from new wind and solar power installations as well as from rising hydro power contribution a relatively dry 2015.

Anticipated savings from a new CCGT and lower gas prices have made Florida Power & Light (FPL) seek to reduce power rates starting from April. The decrease would cut $1.64 off a typical residential customer’s bill and, if approved, would coincide with the start-up of the 1,250 MW Port Everglades Next Generation Clean Energy Center.

By summer 2017, power reserve margins in the Electric Reliability Council of Texas (ERCOT) are anticipated to rise substantially as over 5 GW of new capacity will come to the market, followed by another 4.3 GW in 2018.
“We are seeing planning reserve margins to top 20% percent in the next several years, [but] some of this growth could be offset by unit retirements as changing environmental rules begin to take effect,” Warren Lasher, ERCOT’s Director of System Planning commented.

Flexible gas power is vital for a decentralized and increasingly renewable-driven energy future, according to Manuel Aguilera, gas product manager at Himoinsa. “If we consider all the technology available, not only engines, but turbines, fuel cells, etc. – all of them will become key players in the distributed energy mix,” he told Gas to Power Journal.

Efforts to stop the methane leak at Aliso Canyon have shown little respite, prompting EIA analysts to warn this may impact the reliability of California’s energy system. Gas withdrawal from flexible storage largely depends on dispatch of combined-cycle plants to meet peakload power demand.

Bob Place, president of Genesis Power has confirmed that the utility will “not continue [to] pursue plans to build Amwell Energy Center in Hillsborough.” The decision to drop the $1 billion combined-cycle power plant project came following fierce opposition from the Township Committee.

Works on the $800 million Wildcat Point turbine expansion project are ‘on schedule’, according to the operator. Old Dominion Electric Cooperative said it aims for the upgraded CCGT to start up in June 2017 with an enhanced capacity of nearly 1,000 MW.

News in Brief

Glut in oil and gas markets drain BG earnings

Feb 5 – BG Group has issued its final earnings just before the company will be folded into Shell later this month in a £36 billion deal. As all international oil companies, BG has been hit by the slump in global oil and gas prices.
For the quarter of 2015, earnings were 54% lower at $423 million, equalling £291 million. CEO Helge Lund said the company's performance would be “in line with or ahead of expectations.” Pre-tax profits for the full year recovered to $3 billion, after a loss of $2.3 billion in 2014.

Dominion to invest more than $10 million in operations facility

Feb 5 – Dominion is committed to investing $10.9 million and relocating their Dominion Carolina Gas Transmission (DCGT) headquarters and operations to Columbia, South Carolina. DCGT owns and operates nearly 1,500 miles of interstate natural gas transmission pipelines in South Carolina and southeastern Georgia.

Dresser-Rand exclusive supplier of Guascor engines for Kohler

Feb 4 – Siemens-owned Dresser-Rand has been named the exclusive supplier of Guascor gas engines for Kohler Power Systems’ (KPS) new line of large gas generators. 
These new gensets were specifically designed for prime or standby power applications, with nodes ranging from 425 kilowatts (kW) to 1,300 kW.

ABB to upgrade US power transmission link

Feb 4 – US power producer Great River Energy has awarded a $130 million order to ABB to upgrade an HVDC (high-voltage direct current) grid link. The ± 400 kilovolt HVDC interconnector helps transfer 1,000 MW of electricity between Underwood, North Dakota and Buffalo, Minnesota, a distance of 700 kilometers.
As part of the project scope, ABB will undertake the upgrade and life extension of the converter valves, valve cooling systems, control and protection systems.

DomRep to build gas pipeline to underpin new power projects

Feb 3 – AES Dominicana president Edwin de los Santos has announced plans to build a gas pipeline to the east of the island nation that is meant to underpin up to 1,000 MW of new gas-fired power generation capacity. Switching from fuel oil and diesel to natural gas has helped the utility save over RD$1.8 billion ($39m) in the past ten years.

Mosenergo investment program completed

Feb 3 –Start of full commercial operation of the CCGT-420 in Moscow has marked the completion of Gazprom’s Mosenergo investment program. The scheme saw construction of seven CCGT units with an aggregate capacity of 2.9 GW – more than 21% of the Gazprom’s total installed capacity.
Siemens gas and steam turbines, partly manufactured in Russia, were used at the latest CCGT-420 unit at the CCPP-20 of Mosenergo as well as at the Serov SDPP of OGK-2.

Georgia Power seeks to reduce peak demand by 1.9 GW

Feb 2 – Efficiency saving targets, set out by Georgia Power, seek to reduce peak demand by approximately 1,900 MW, which is 12% of the utility’s current load. 
In its 2016 Integrated Resource Plan (IRP), the generator also asked the regulator for the decertification of one coal power unit and two small oil-fired combustion turbines. Georgia Power also said it is seeking to divest its stake in an oil-fired unit in Intercession City, Florida to the majority owner Duke Energy Florida.

EBRD helps finance clean power gen in Kazahkstan

Feb 2 – The European Bank for Reconstruction and Development (EBRD) has agreed to provide a 5-year loan worth $5.9 million to Sagat Energy to finance the completion of construction and grid connection of cogeneration plant in Atyrau, Kazakhstan. The 11-MW facility will be powered by a gas-fired engine. 
Sagat Energy, a Kazakhstan registered project company, is fully owned by First Montana Capital.

Pipeline blast impacts Khor Mor power plant

Feb 1 – Dana Gas said on Sunday that a pipeline blast has temporarily halted gas supply to power plants in Iraq’s Kurdistan region, including the Khor Mor facility. The rupture occurred on a transmission pipeline between the Chemchemal and Erbil power stations, which also halved the output of these two plants for a few hours, Dana Gas said in a filing to the Abu Dhabi stock market.
Oil and gas production in the Khor Mor field has grown to reach 70,000 barrels of oil equivalent per day (330mm cbf/d of gas and 15,000 bbl/d of condensates), with total investment to date approaching $1 billion.

Decentralised diesel gensets to supply on-site power in Bangladesh

Feb 1 – Walton Group, a Bangladesh-based electronics and automotive producer, has asked Clarke Energy to supply three GE 616 diesel engines to generate on-site power for its manufacturing site in Gazipur district. Two of the 2.5-MW diesel engines are already on-site and the third is scheduled to be delivered in March 2016 and will be commissioned in April 2016.

Siemens snaps up CD-adapco for $970m

Jan 29 – Focusing on growth in its digital business, Siemens has bought the engineering simulation company CD-adapco. In 2015, the revenue of CD-adapco had 900 employees and achieves almost $200 million in revenue for its software solutions that include from Fluid Dynamics (CFD), Solid Mechanics (CSM), heat transfer, particle dynamics, reactant flow, electrochemistry, acoustics and rheology.

Trent turbine to return from UEA to Tasmania in March

Jan 29 – New Zealand’s Hydro Tasmania has rebuked claims that is paying $1 million to speed up the return of a gas turbine which is currently being repaired in the Middle East. The turbine was shipped to the UEA in September and was repaired there under warranty. 
It is due to return to Tasmania in early March and will resume operation in early April with the aim of adding another 58 MW of generating capacity to the gas-fired 210 MW Tamar Valley Power Station in Tasmania.

Mexico: Capstone wins order for two C1000 microturbines

Jan 29 – DTC Ecoenergía, Capstone’s distributor in Mexico, has secured two orders for C1000 microturbines. One of them will be installed in CHP application in an industrial plant, while the other one will be used to generate electricity as well as produce hot and chilled water at the facility. Once installed, the gas-fuelled microturbines are expected to save up to 50% in operational costs.

SSE cuts gas prices 5.3%

Jan 28 – As the last of the UK’s Big Six energy firms, SSE today cut its gas prices, announcing an average 5.3% reduction in its standard tariff, effective from March 29.

Forecasts for US gas futures ‘narrowed’

Feb 28 – Market expectations on US gas price future contracts have declined and narrowed, according to EIA figures. The upper and lower bounds of the 95% confidence interval for April 2016 natural gas contracts at Henry Hub are $3.52/MMBtu and $1.61/MMBtu, respectively.
A year back, the interval for April 2015 gas futures was as wide as between $1.90/MMBtu and $4.36/MMBtu. Henry Hub gas prices fell to a record low of $1.93/MMBtu in December but are anticipated to recover gradually as domestic US production slows and gas demand from the petchem sector increases.

Siemens reaches 1.21 book-to-bill ratio

Feb 28 – Major contract wins in Europe and Africa have driven Siemens’ first-quarter orders up 27% year-over-year, at €22.8 billion. Revenue is 8% higher at €18.9 billion, for a book-to-bill ratio of 1.21. 
The German OEM said it continues to address “structural challenges in the company” in a bid to strengthen its “innovation power".

Grid repair drives global switchgear market

Jan 27 – The global switchgear market is forecast to expand from $49.7 billion in 2015 to just under $84 billion by 2020, according to GlobalData. This 11% growth rate is driven primarily by TSOs’ need to repair or replace aging grid infrastructures and/or accommodate rising supply from renewable power sources.