“2018 is the year of electricity,” the International Energy Agency (IEA) noted given that electric power has been the fastest growing element of final demand, and will outpace all energy sources over the next 25 years. Digitalization of the global economy goes hand in hand with electrification, making it the “fuel of choice” for households and enterprises.
Hit by a triple-whammy of weak cash flows, meager profits and slumping stock values, CEOs in the oil and gas industry are vary about continuing to invest in increasingly risky fossil fuels. Looking for a quick return, investors want oil majors to prioritize profits over production growth. Some refocus on electricity markets.
MAN Energy Solutions has been contracted to provide a new combined-heat-and-power (CHP) solution for Ben Gurion Airport in Tel Aviv, Israel. A dual-fuel engine MAN 9L51/60DF will be vital to power the airport, with plant handover scheduled for the end of 2019.
Hazards of oversupply in oil and natural gas are preoccupying International Oil Companies (IOCs) as less carbon-intensive sources of energy compound the risk of future oil and gas oversupply. Still, Moody's analysts are convinced oil majors will tackle these new issues through a triad of conservative financial policies to strengthen balance sheets, capital discipline, and robust long-term planning that anticipates secular shifts – like the global trend towards renewables and energy storage.
Taiwan Power Company has awarded a full-turnkey order to Mitsubishi Hitachi Power System (MHPS) to refurbish and upgrade its Nanpu and Datan gas-fired power plants. The contract stipulates low-NOx enhancements of seven M501F gas turbines, and the roll-out of the digital service MHPS-TOMONI. Works are due to be completed in August 2019.
Sinolam Smarter Energy (SSE), part of Shanghai Gorgeous Group, has awarded a long-term service agreement to Siemens for the SGT-800 gas turbines at the Gas to Power Panama project by Martano. The power plant will operate with LNG and is scheduled for commission in the autumn of 2020.
Withdrawal of water by U.S. thermal power stations, mostly for cooling purposes, continues to decline over the past four years and has fallen to a low of 52.8 trillion gallons. The water intensity – the average amount of water used per unit of total net electricity generated – fell from 15.1 gallons per kilowatthour (kWh) in 2014 to currently 13.0 gal/kWh.
General Electric is accelerating plans to divest most of its interest in the oil services firm Baker Hughes (BHGE). The cash-strapped American engineering giant announced a complex agreement to offload up to 166 million shares in BHGE in a deal expected to raise about $4 billion.
Promising new shale gas prospects of a “substantial size” have been identified by China National Administration of Coal Geology (CNACG) both in Hubei and in Guizhou Province. CNACG will now develop the prospects, seeking to efficiently tap domestic unconventional reserves for the fast-growing Chinese gas market.
Global gas demand is on the rise, erasing talk of a glut as China emerges as a giant consumer. Already the world's biggest oil and coal importer, China will also become the largest buyer of natural gas with net imports approaching the level of the European Union by 2040, according to International Energy Agency (IEA) estimates.
MAN Energy Solutions has been contracted to supply an LNG regasification terminal to Forchem in Rauma, Finland. The chemical company wants to convert the boiler for generating steam for the refinery process to natural gas, or bio-gas, and asked MAN to deliver a tailor-made solution with an offloading skid for LNG trailors.
Closure of the large Rough storage has left the UK in a “precarious position” and “vulnerable” to gas supply shortages, Wood Mackenzie finds. Spot LNG cargoes can help cover demand at a short notice – but it would be imprudent to rely on flexible gas imports through the Interconnector, particularly as UK gas demand is bound to increase due to the government’s coal phase-out policy.
Additive manufacturing, or 3D printing, has evolved significantly and today develops turbine components that, in most cases, perform better than their conventionally manufactured counterparts. In the energy field, Siemens is aspiring to qualify 200 components for manufacture via 3D printing by 2025.
An online auction will be held for the sale of an almost complete gas-fired power station that was originally built as an energy-from-waste project at Teeside, in northeast England. The auction will be staged between November 15 and 29, accompanied by a separate private treaty sale process.
Operators in the energy sector are struggling to cope with rising threats to the security of their generating assets. Digitalisation helps ensure a save and stable operating environment to allow for flexible dispatch of power units. Wärtsilä solutions build up an active resistance to cyber threats that guarantees electric utilities a steady return on their assets.