Tuesday, 06 November 2012 10:57

BHEL teams up with Shell to supply gas turbine generators

Nov 6 – Bharat Heavy Electricals Ltd (BHEL) said today has signed a five-year Enterprise Framework Agreement (EFA) with Royal Dutch Shell for the supply of gas turbine generator packages.

Under the accord, BHEL will provide gas turbine generator packages to select locations of Shell in the Asia Pacific, Middle East, Central Asia, Eastern Europe and Africa.

The agreement covers supply of Frame-5 (26 MW), Frame-6B (42 MW) and Frame-9E (126 MW) GTG packages by BHEL for power generation application and includes installation and commissioning services.

EFA is consistent with Shell's approach of collaborating with fewer suppliers and "work with high-potential suppliers from emerging countries who can bring long-term value to the company," BHEL said in a statement.

News in Brief

Caterpillar to deliver gas gensets to Mexican steelmaker

Aug 28 – Altos Hornos de Mexico (AHMSA), the largest steelmaking company in Mexico, has ordered 40 Cat CG260-16 natural gas generator sets to produce 160 MW of power from four onsite gas power plants in Monclova, Coahuila.
“With the power derived from these Cat units, we are producing energy that is 55% cheaper than the power supplied by the Federal Commission,” said Emigdio Valades, power plant area superintendent with AHMSA.

Eagle Ford to produce 2m bbl/d by 2020

Aug 27 – Production growth from the Eagle Ford – one of the largest US shale formations – is proving resilient to the slowdown, with crude/condensate output seen at 2 million barrels per day in 2020. According to WoodMackenzie, most companies have increased production beyond 2014 averages as active rigs are yielding more, which moderates the adverse impact of lower oil prices.

MRO market edges toward $14.5bn by 2018

Aug 27 – The global market for gas turbine maintenance, repair, and overhaul (MRO) in the power industry is expected to reach $14.48 billion by 2018, with moderate growth over the next five years. Lucintel consulting pointed out that the industry faces challenge to recruit and retain the skilled workers while the price of labour is increasing.

Denham Capital partners with Nexif Energy in Asia

Aug 26 –Private equity firm Denham Capital and Singapore-based Nexif have announced to develop, finance, construct and acquire conventional and renewable power generation assets across Southeast Asia.
During the last five years, the Nexif team managed InfraCo Asia, an infrastructure platform funded by several European government development finance institutions.

Testing of gas pipeline for Carrington Power Station

Aug 25 – Alstom and DF Energy, consortium partners for the construction of Carrington Power Station, are carrying out pneumatic testing of the gas pipeline to the 880 MW combined-cycle plant until 11 September 2015.

MEA gas engine market to grow 25.2%

Aug 25 – The gas engines market in Asia and the Middle East (MEA) is anticipated to grow at a combined annual growth rate (CAGR) of 25.2% from 2015 to 2022. It was valued at $283.6 million in 2013 and is expected to reach $2,137.7 million by 2022, according to Transparency Market Research.
Apart from the power sector, the fast growth is spurred by rising use of gas fired reciprocating engines at pipeline compressor and storage stations and at gas processing plants.

TVA hikes electricity rates

Aug 24 – Tennessee Valley Authority (TVA) on Friday adopted a $10.7 billion spending plan for fiscal 2016 that will raise electricity rates by 1.5 percent. The rate hike, the same as in each of the past two years, will raise an extra $200 million from customers in TVA's seven-state territory.

APR gets payment from Yemen

Aug 21 – Fast-track power solution provider APR Energy has received a payment of $8.4 million from its terminated project in Yemen, which covers the outstanding project balance. It also has gained access to the Yemen project sites and its equipment, which will result in a re-evaluation of the $24 million impairment taken in the second quarter due to its inability to safely enter the sites at that time.

Singapore: Power tariff to rise 7.5% in Q3

Aug 20 – Electricity tariffs in Singapore will increase by an average of 1.5cts/kWh, or 7.5%, rising up to 22.41 cts/kWh in the third quarter of this year. SP Services said the hike in the third quarter is due to a 15.1 per cent increase in the cost of natural gas for electricity generation from the second quarter.
Power tariffs consist of four components: energy cost, network cost, market support services fee, and the market administration and power system operation fee.

MTU Onsite to power dairy farm

Aug 20 – Rolls-Royce has won a contract from Wisconsin-based Statz Bros to provide an MTU Onsite Energy Series 4000 combined heat and power (CHP) system for its newly developed dairy facility in Sun Prairie. MTU Onsite Energy is part of Rolls-Royce Power Systems.

Sulzer wins $1m gas turbine repair contract

Aug 19 – The Piqua City Commission in Ohio has awarded contract worth $1 million to Sulzer Turbo Services for the inspection and repair of the #9 gas turbine. The Piqua Power System has two gas turbines, and the #9 gas turbine will be 50 years old in 2016.

RWE launches power-to-gas energy storage system

Aug 18 – RWE has officially launched its power-to-gas energy storage system in Ibbenbüren, North Rhine Westphalia. Test results of the PEM electrolyser system, delivered by ITM Power, measured an overall energy efficiency of 86%.

Korea’s turbine market to grow 6.4%

Aug 17 – Market research suggests that the turbine market in South Korea is poised to see a 6.4% annual growth rate over the period 2014-2019. Most new-builds are CCGTs as the government is incentivising cleaner-burning gas power over coal.

Edging closer to building Lordstown CCGT

Aug 14 – Clean Energy Future is one step closer to building an 800 MW gas-fired power plant in Lordstown, after an adjudicatory hearing this week in Columbus. The Ohio Power Siting Board still needs to give final approval for the $800 million project. Construction on the facility is meant to start in the coming months with a view to start operation in May 2018.

Underutilization of gas plant costs Ghana $219m/year

Aug 13 – The Atuabo gas processing plant is meant to provide cheap fuel for power generation but since its commissioning, the facility has run mostly one-third of its design capacity. Build at a cost of over $1 billion, the plant underutilisation is estimated to cost operators over $219 million per year.

RWG secures Siemens Industrial Avon maintenance dea

Aug 12 – AES UK & Ireland has awarded RWG a contract for inspection of eight Siemens Industrial Avon gas generators installed at Ballylumford Power Station, Northern Ireland’s largest power station. The scope of work involves a comprehensive inspection of each gas generator including video borescope of the engine compressor, combustion system and turbine section.

Gas price floor at $6/MBtu

Aug 11 – Steep drop in gas production from the Dutch Groningen field allows Russia’s Gazprom to pursue its longterm rent-maximisation process unchanged. Analysts at Societe General said “this has allowed the $6/MBtu (38p/th) floor to hold so far in Q3 15e.”