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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...

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US government approval for the Freeport LNG Terminal on Quintana Island, Texas to export LNG to countries with which the US does not have a Free Trade Agreement (FTA) have brought Japan a step closer to realising cheaper supplies of natural gas for power generation. Osaka Gas and Chubu Electric have already signed liquefaction tolling agreements with Freeport LNG, back in July 2012, to each acquire a 2.2mtpa production capacity of the first train at Freeport, potentially as early as in 2017.

Toshiba Infrastructure South America Ltd (TIC-SA), the Brazilian arm of electronics multinational Toshiba has started producing electricity transformers in a newly launched $58 million (¥6.0 billion) manufacturing plant in the city Betim, which is part of the metropolitan area of Belo Horizonte.

Mitsubishi Heavy Industries (MHI) has legally completed the acquisition of Pratt & Whitney Power Systems (P&W PS), a manufacturer of small and medium-size gas aero engines. Following the takeover, the Japanese engineering conglomerate launched operations of its new aero-engine segment under the name of PW Power Systems.

EDF is planning to add 975MW of gas-fired power generation to its installed capacity in France, a spokesman for the company told Gas to Power Journal. The additions will come from the planned commissioning of a second 465MW combined-cycle gas turbine (CCGT) plant in Martigues in 2013 and the joint development with GE of a 510MW "new generation" CCGT plant on EDF's Bouchain site in Northern France, scheduled for late 2015.

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.

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News in Brief

Europe's gas in stock reaches record low

May 20 - Total gas in stock in Europe reached a record low of 15.9 bcm on 14 April 2013, compared with levels of 32.9 bcm a year ago, according to Gas Infrastructure Europe.

On 16 May 2013, stocks were still15 bcm below the level achieved on 16 May 2012.

"With stocks in Europe so low, the summer maintenance is going to limit any downside in gas prices," analysts at the French bank Société Générale forecast.

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.

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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.

In addition, our website tracks the commercial development of new natural gas power generation projects, through the planning, project finance and construction stages, and on to the procurement of gas supplies. Trading, pricing and product specification trends are highlighted, while regulatory and policy developments are tracked in related fields that may impact the security of natural gas power supply. Shifting demand patterns for natural gas power generation, as a part of global energy demand, are also covered, as part of our in-depth analysis.

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