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This week

Low gas prices in Western Canada stifle upstream investment, impact power generation

Canada's natural gas industry is in a "holding pattern" as low prices of around $3.00/MMBtu in Western Canada are stifling new equity investment for gas producers, a report by Canada's National Energy Board (NEB) finds. Low gas prices have displaced "significant amounts" of coal-fired...

Daily News

A leading driver behind Mexico's rising natural gas consumption in recent years has been the substantial rise in the use of gas in the power sector, country analysis undertaken by the US Energy Information Administration (EIA) finds.

Industry in southern Germany could curb their electricity consumption at times of peak demand by up to 480MW in the course of an hour if Demand-Side Management (DSM) mechanisms were to be widely implanted, according to study presented by energy think thank Agora in Berlin this week.

Commercial operations have begun three months ahead of schedule at the $900 million gas-fired 800MW Sentinel Energy Project near Desert Hot Springs, Riverside County, California. The plant is co-owned by Competitive Power Ventures (CPV), GE Energy Financial Services and Diamond Generating Corporation (DGC). The general contractor for the construction of the project was Gemma Power Systems California.

The EU's Climate Action Commissioner Connie Hedegaard has called on the European Council and Parliament to approve the proposed back-loading of 900 billion carbon emission allowances (EUAs) in emissions trading scheme (EU ETS). Back-loading would reduce the surplus of emissions in the ETS, and the subsequent rise in carbon prices would encourage power producers to favour gas over coal.

Fortum's €130million ($167million) waste-fired CHP plant has started this week in the city of Klaipeda, Lithuania. It is the first of its kind in the Baltics, one of four such plants planned for the Baltic and Nordic region.

The contribution of gas to the UK's power generation mix has plunged by 32 percent in 2012 from 2011 level, comprising 28 percent of total generation, mainly due to the relative low cost of coal compared to gas and cheap coal imports mainly from Russia, Columbia and the United States, the latest country analysis done by the US Energy Information Administration (EIA) shows. The contribution of coal was 39 percent of UK's energy mix, rising by 32 percent.

GE has signed a frame agreement with Green Waste Energy (GWE) to supply its Jenbacher gas engines to power a series of Advanced Recycling and Energy Conversion (AREC) plants that GWE's development subsidiary Green Waste Energy Development (GWED) plans to build. Each Jenbacher engine will generate nearly 2MW of power using syngas produced at GWED's waste-gasification facilities.

Greece's METKA and General Electric have sealed a €92million ($118million) EPC contract with Société Algérienne de Production de l'Electricité (SPE) to build an open-cycle gas turbine (OCGT) plant with a capacity of 368MW at the country's physical gas hub Hassi R'mel.

The crux of renewable expansion lies in the choice of location: If installations were built at the sites in Europe that offer the highest power yields, some €45 billion of investment in renewables could be saved by 2030, a study carried out by Siemens together with the Technical University of Munich finds.

Billions of euros are being wasted every year as a result of "building and expanding renewable power sources in the wrong location" and as a result of "inefficiencies in worldwide energy systems and markets," Siemens board member and CEO, Dr. Michael Suess said when presenting the study in Brussels today.

Coincident summer peak electricity demand in 2013 for the Northeast Power Coordinating Council (NPCC) region – New England, New York, Ontario, Québec, and the Canadian Maritime Provinces – is forecast to be down 330MW over the previous year, due to the region's drive towards conservation, energy efficiency and demand side response, a recently released NPCC report shows.

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News in Brief

E.on, METRO partner on distributed energy wholesale in Germany and Russia

May 17 – E.on and METRO Cash & Carry have struck a partnership on distribute energy under which the former will install gas-fired micro combined-heat-and-power (CHP) units at two METRO Cash & Carry wholesale stores in Germany and two in Russia.

Depending on the size of the store, the units' electric capacity will range from 250 to 800 kilowatts.

Alstom supplies flue gas treatment and heat recovery system to Lithuanian CHP plant

May 15 – Alstom has supplied the flue gas treatment and heat recovery system for Fortum's new combined heat and power (CHP) plant in Klaipeda, Lithuania.

The 20MWe and 60MWth plant is fuelled by municipal waste, non hazardous industrial waste and biomass. The district heat produced at the plant will replace existing natural gas-based heat production capacity.

Alstom Grid to supply gas-insulated switchgear to Poland

May 13 – Alstom Grid has signed two contracts, each worth about €5 million, with Eltel Networks Rzeszów S.A. for the delivery of 110 kV and 220 kV gas-insulated switchgear (GIS) for the Kopanina project, owned by PSE S.A. PSE is the main electricity transmission service provider in Poland.

Commissioning of the 220 kV gas-insulated switchgear is planned for summer 2014 and the 110 kV substation, for spring 2015.

Ventus project to map world’s power plants

May 13 – A crowd sourcing initiative to map the world's power plants known as the Ventus Project has been launched by Arizona State University under the lead of Dr. Kevin Robert Gurney.


The initiative encourages users to contribute information about power plants including location, fuel type and CO2 emissions via pin placements on Google Maps and form filling.

US Senate panel passes bills on hydropower, energy efficiency

May 13 –The US Senate is likely to vote this month on an array of hydropower bills and an energy efficiency bill, according to Senator Ron Wyden.

The bills in questions were approved by the energy and natural resources committee on Wednesday and Wyden reportedly said Senate leaders have indicated these bills could ready for a full Senate vote before the congressional recess at the end of the month.

US coal-supply balance drops on accelerated gas production


May 10 – The coal supply-demand balance in the US has softened because of a multiyear acceleration in gas production while increasingly stringent air pollution restrictions will restrict coal-fired power generation over the next decade.

The resulting export push in 2011 and 2012 has become a decisive influence on global thermal coal markets.

"The subsequent shift in fossil fuel consumption for power generation had the most marked impact on thermal coal exports in 2012 as buyers on take-or-pay contracts sought an outlet for obligatory purchases," said Deutsche Bank analysts.

Plans for expansion of export capacity through 2020, if achieved, "could provide a wider outlet for Powder River Basin coal production", they added.

Port Hedland waste-to-energy project gets environmental permits

May 10 – Australia's Energy Corp has received environmental permits to realise the 18 MW Port Hedland Power Plant waste-to-energy project at a cost of $180 million.

The plant will be the first waste-to-energy project in Australia and will be constructed near major regional sources of waste in the Boundaries Industrial Estate in South Hedland, Western Australia.

Low US gas prices in 2012 slashed returns for oil, gas producers

May 10 – Low natural gas prices in the US have slashed returns on equity (ROE), a measure of profitability, for oil and natural gas producers in 2012, EIA analysis shows.

Wide differences in natural gas and oil prices affected the bottom line for upstream operators, prompting some developers to reconsider about where and how to deploy capital.

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Latest News on Natural Gas Power Generation, Plants and Generators

Gas to Power Journal is a specialist publication for the natural gas power generation industry, supplying analysis and insight on topics including combined cycle gas turbine technology and gas fired power plant efficiency, as well as developments in plant projects, financing and markets. Our daily updated journal provides insight into the UK, European and world energy markets for those seeking to explore the technical, strategic and commercial opportunities in natural gas power generation and its related topics.

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