Daily News

Anglo-Swiss commodity trader Glencore is understood to partner with Limay LNG Power Corp. on realizing a LNG-fuelled power plant in Batan, Luzon Island, with a capacity of 1,100 MW. Glencore could provide project financing and help with LNG procurement, adding to supplies from the Philippines’ depleting Malampaya field.

Mitsui O.S.K. Lines (MOL) has agreed a financing deal for the 1,760 MW Jawa-1 gas power plant and an accompanying floating storage and regasification unit (FSRU). The integrated LNG-to-power project will be built at a cost of $1.8 billion by PT Pertamina, Marubeni and Sojitz and is due operational in December 2021.

Deployment of large-scale battery storage is rapidly increasing across the United States, but capital costs of energy storage systems vary greatly, dependent on the technology uses. Energy-oriented batteries systems, used for peakload shaving, are designed for longer durations and consequently have higher average costs per kilowatt and lower costs per kilowatthour. This type is mostly used in the California Independent System Operator (CAISO) area.

Dynamics of the global energy transition are driven by the speed of electrification and the competition between flexible gas power plants and renewables plus energy storage. Margins in the downstream power market are becoming more attractive, as price discrimination allows for better value capture downstream than in the generation business.

The world’s advanced economies will see an uptick in their emissions, bucking a five-year long decline. Energy-related CO2 emissions in North America, the EU and industrialized countries in Asia Pacific grew by around 0.5% in 2018, as higher oil and gas use more than offset declining coal consumption, according to the International Energy Agency (IEA).

Carbon capture and hydrogen are interdependent; hence the resurgence of strategic interest in hydrogen is strongly connected with carbon capture in multiple ways. “The most basic is the source of hydrogen: today it is fossil fuels with over 10 tons of CO2 emitted for a ton of H2,” said IEA chief economist Laszlo Varro.

Princeton University researchers have proposed a U.S. pipeline network that would capture, transport and store underground up to 30 million metric tons of emissions each year – an amount equal to removing 6.5 million cars from the road. The pipeline would transfer CO2 waste from ethanol refineries in the American Midwest to oilfields in West Texas for use in enhanced oil recovery (EOR).

Carbon capture, utilisation and storage (CCUS) is one of a few options that can significantly reduce emissions from coal and gas power generation as well as from industrial processes such as steel, cement and chemicals manufacturing. “Without CCUS as part of the solution,” said IEA head Dr. Fatih Birol, “reaching our international climate goals is practically impossible.”

Utilities around the global are understood to have halted operations of at least 18 of GE’s HA turbines at power plants following blade oxidation corrosion issues. The technical issues are reportedly very similar to a recent GE turbine blade failure at Exelon’s Colorado Bend power plant near Houston.

Boosting upstream investment, Chevron has set aside $3.6 billion for fracking in the Permian Basin out of a total $20 billion of capital spending in 2019. The decision comes as U.S. recoverable shale oil and gas reserves have been assessed at a record high.

U.S. Environmental Protection Agency (EPA) is about to initiate more rollback regulations in favour of coal in the power sectors. The proposals included loosening the New Source Performance Standards which mandate how much CO2 new power plants can emit. However, these rollbacks are unlikely to stop the demise of the U.S. coal industry as natural gas is outcompeting coal on cost.

Indonesian state-owned energy firm Pertamina, together with Marubeni and Sojitz, has reached financial close for a $1.8 billion integrated LNG regas and power generation project. The 1,760 MW Jawa-1 combined-cycle power plant (CCGT), as well as an adjacent floating storage and regasification unit (FSRU), is slated to start operation in December 2021.

Japan’s Kawasaki Heavy Industries has spent $175 million to develop a floating gas-fired power plant, fuelled by LNG, and aimed at Southeast Asian market. The power ships will be offered to utility customers on remote islands and in isolated locations with underdeveloped gas pipeline infrastructure.

The Japanese utility Hokkaido Electric Power has started loading trucks with LNG at its Ishikari import facility to supply industry and a decentralized gas power plant at Ishikari Bay New Port. The 3x569 MW power plant is set to start operations in February 2019.

Momentum for GE’s flagship HA gas turbine “continues to be strong,” the manufacturer said when announcing two order wins in the third quarter. The customers are Florida’s Tampa Electric (TECO) and the Taiwanese independent power producer (IPP) Chiahui Corp.

News in Brief

More buyers for Malampaya gas

Dec 12 – Two more electric utilities, in addition to First Gen and Ilijan, have expressed interest to buy Malampaya’s banked gas, valued at $700 million to $750 million, via a negotiated scheme. The Philippine National Oil Company (PNOC) is in talks with all four of them, but did not identify the two new bidders.

Surge in wind power new-builds

Dec 11 – More than 680GW of new wind power capacity will come online globally over the 10-year outlook, according to Wood Mackenzie research. Most upgrades occur in the medium-term, boosting annual capacity additions from 2020 to 2023 by an average of 2.7GW.

Hybrid power for Galapagos Island

Dec 10 – Siemens has inaugurated a hybrid power plant on the Galapagos island of Isabela after only ten months of planning and ten months of construction. The system runs carbon-neutral with biofuel and solar energy and supplies almost 900 households.

Tata unveils TCS Intelligent Power Plant

Dec 7 – Tata has presented it TCS Intelligent Power Plant at an U.S. trade show, combing its engineering knowledge with artificial intelligence (AI) to optimize operations of fossil power plants. The TCS Intelligent Power Plant builds on the digital twin concept and data-driven models.

Aker, Siemens to co-develop digital offerings

Dec 6 – Aker Solutions and Siemens have agreed to collaborate on creating software applications and joint service offerings, e.g. industrial digital twins that will drive efficiency throughout the entire plant lifecycle. Specific offerings for the oil and gas sector will be based on Siemens' Comos engineering platform.

Robot for remote inspection

Dec 5 – Sarcos Robotics is demonstrating their Guardian S mobile IoT inspection robot at POWER-GEN International in Orlando, Florida. The remote visual inspection tool that can carry multiple sensor payloads and is a quick-deploy inspection solution for pipes, boilers and tanks.

JERA still builds coal power plants

Dec 4 – JERA, Japan’s largest LNG importer, said it was still replacing ageing oil-fuelled power plants with coal-fired units, instead of gas, for economic reasons. Environmental permits have just been issued for two new coal power units at Yokosuka power station, south of Tokyo.

GE delivers grid solution to Pakistan

Dec 3 – GE Power has delivered a turnkey solution to DG Khan Cement Company (DGKCCL), for its new cement plant. Situated 30km northwest of Karachi, the new manufacturing facility is powered by GE’s advanced grid solutions including 132/6.3 kV gas insulated switchgear (GIS), 40MVA power transformers.

Rolls-Royce to showcase Bergen genset

Nov 29 – Rolls-Royce will showcase its new B36:45 Bergen gas genset at the 2018 Power-Gen International show next week in Orlando, Florida. This will be the first time the company introduced Bergen engines at a U.S.-based trade show.

Toshiba aggregates RES & energy storage

Nov 28 – Tokyo-based Toshiba will reinforce its green energy footprint by spending 100 billion yen ($175m) on a new biomass power plant near the thermal Mikawa power station in Omuta, Fukuoka prefecture. Going forward, Toshiba aims to aggregate all its renewable energy sources and storage batteries, creating a Virtual Power Plant (VPP).

Exmar helps Argentina export LNG

Nov 28 – Belgium's Exmar has signed a 10-year agreement with YPF to produce and export 500,000 tonnes per annum of LNG from Argentina via a floating liquefaction vessel named Tango FLNG. The deal advances Argentina’s ambitions of becoming a gas exporter.

ABB UPS tops 97% efficiency

Nov 27 – ABB latest uninterruptible power supply (UPS) module has a 97.6% efficiency rating. The DPA 250 S4 covers the power range 50 to 1,500 kW and is designed for critical, high-density computing environments such as data centers, hospitals, railway signaling stations and airports.

Europe still depends on Russian gas

Nov 26 – In the first ten month of 2018, there was a more than 100:1 disparity between Russian pipeline gas and U.S. LNG deliveries to European countries, according to Gazprom figures. The Russian gas giant sees still “a high level of uncertainty” in the long-term forecasts for U.S. shale gas production.

Enagas, Fluxys sell stake in Swedegas

Nov 23 – The Belgian and Spanish TSOs, Fluxys and Enagas, have sold their entire shareholding in Swedegas to First State Gas Transport AB, part of the infrastructure fund First State Investments. The two TSOs each owned a 50% stake in the operator of Sweden’s high-pressure gas grid.

Developing alternative fuels

Nov 22 – Wärtsilä, Finland’s Lappeenranta University of Technology and Nebraska Public Power District (NPPD) are developing a business case for the use of alternative fuels with Wärtsilä generating sets. In focus are methanol, dimethyl ether and ammonia, synthesised from hydrogen, CO2 and nitrogen.

UK will not incentivize new gas storage

Nov 21 – Rebuking warnings of gas supply shortages, the UK government said it will not give any regulatory support for new gas storage facilities. Insisting that “the benefits of more insurance are not worthwhile,” energy secretary Greg Clarke said, insisting the market was already providing sufficient gas security and optionality.

PG&E uses SF6-fee switchgear

Nov 20 – California’s Pacific Gas and Electric (PG&E) has contracted Siemens to supply SF6-free dead-tank circuit breakers and gas-insulated switchgear (GIS). They are destined for California’s 115-kilovolt (kV) high-voltage grid.