The re-balancing of global oil markets is viewed by the IEA as “a stubborn process” given that some producers, party to the OPEC’s output cut agreement, are "showing signs of weakening their resolve." The compliance rate fell again in July to a new low of 75% from June’s 77%. Still, IEA analysts believe “the market is re-balancing” as the price of Brent crude recently stabilised above $50/bbl.
Two offshore projects by China National Offshore Oil Corporation (CNOOC) – the Penglai 19-3 oil field and the Dongfang 13-2 gas field – will be powered by Dresser-Rand equipment. The business, now part of Siemens Power and Gas, won orders from CNOOC and from Harbin Guanghan Gas Turbine (HGGT).
Dirty king coal is still on track to surpass natural gas generation for 2017, with total shares of almost 32 % and 31%, respectively, the latest short-term energy outlook from the Energy Information Administration (EIA) shows. That near-tie comes after natural gas generated 34% of the nation’s electricity needs in 2016, with coal finishing at 30%.
Turning his back on former President Obama’s clean energy aspirations, the new FERC chairman Neil Chatterjee calls for coal to be “properly compensated” for baseload power and “recognized as an essential part of the fuel mix.” Asserting his commitment to the “resilience and reliability” of the US electric system, he said in a podcast released by FERC this week that ensuring security of supply would merit keeping even uneconomic coal and nuclear power plants operational. “These are essential to national security,” he claimed.
To restore deteriorating output, La Paloma Generating Company (LPGC) considered an upgrade of turbine components, but found a cheaper way: "After doing a net present value analysis of the money we would have to invest and how much power we would recover, fogging turned to be really, really good in terms of dollars per kW," said Pablo Cortes Oseguera, LPGC engineering and maintenance manager. "It made a lot of sense to our owners."
ComEd, a unit of Chicago-based Exelon Corp, has turned to ABB’s latest distribution and outage management systems in order to minimize the impact of outages for its customers across northern Illinois. ABB Ability, an integrated software platform, allows for real-time monitoring, network analysis and outage management.
A tender for the procurement of LNG for 500 MW decentralized power in Indonesia will be opened by Singapore in due course. Maritime minister Luhut Pandjaitan announced the LNG cargoes will be shipped to small-scale, decentralized power plants (25-50 MW) in seven locations in close proximity to Singapore.
Driven by falling costs, increasing investor confidence and policy support, renewable power and decarbonisation technologies are reshaping global energy markets. In Wood Mackenzie and GTM Research’s latest report ‘Future of renewables: a radical disruption,’ over 21% of all cars on the road are estimated to be electric by 2035 under the carbon-constrained scenario. Such a stark shift to EVs can displace up to 6.5 million barrels of oil demand.
Tenet, the Dutch-German transmission system operator, has handed a $39 million contract to ABB to to supply a stabilization solution that will enhance the reliability and quality of power as the grid absorbs more renewable energy. Germany’s “Energiewende” roadmap targets at least 80% renewable energy by 2050.
Excess growth in global LNG supply, notably through the ramp-up of US LNG through 2018 and into 2019, will make European gas prices “move through the coal floor [price]”. Fuel-switching in the Western European power market, according to Societe Generale, will ultimately be determined by short-term gas prices hinging at the variable cost of shipping a US LNG cargo to Europe.
Smart electrically-driven heating is a “valuable field in which to invest”, Delta-EE says, pointing at the substantial installed base of electrically-driven heating – 30 million units across Europe. Considering that European utilities have lost over €100 billion in value since 2008, Delta-EE industry recommends “stakeholders should take advantage of digitalisation” and try to extract value from the electrification of heat.
Cairo Electricity Production Company (CEPC) has entrusted Mitsubishi Hitachi Power Systems (MHPS) with the upgrade of module-1 of the Cairo North power station. The CCGT has a rated output of 750 MW and runs based on two M701F gas turbines. Delivery and start-up of the upgraded plant is scheduled for the second half of 2018.
The European Commission is to crack down on all Large Combustion Plants (LCPs), mandating that they conform with best practice. It adopted an implementing act to introduce "Best Available Technique" (BAT) conclusions for some 3,500 power plants of 50 MW or larger, irrespective of their fuel. Stricter emission standards for all LCPS are meant to be in place by mid-2021.
Tested and validated at customer site, Siemens has reached the next level of efficiency with its HL-class – an evolution of its proven SGT-8000H technology. At Duke Energy's Lincoln County site in North Carolina, the new engine reached 63% combined cycle efficiency during testing in June 2017. Siemens’ mid-term goal is to reach 65%.
New York State has an ambiguous relation with natural gas: Although manufacturers and power producers are benefitting from cheap shale gas from Marcellus, two major transmission pipeline projects – Constitution and Millennium Pipeline – have been halted by state regulators. Project developers pursue their options at the Federal Energy Regulatory Commission (FERC) and in court.
News in Brief
SCANA pulls the plug on two nukes
Aug 18 – Escalating costs, falling electricity demand, construction delays, and the bankruptcy of Westinghouse, have prompted South Carolina Electric & Gas Company, part of SCANA Corp, to pull the plug on two nuclear reactors at the V.C. Summer nuclear power plant. The project was launched back in 2009, and the reactors were scheduled to come online in 2019 and 2020.
HoA signed for 600MW plant in Indonesia
Aug 17 – Indonesia’s power producer ENMP, together with tenants of the Bantaeng Industrial Park has signed a Heads of Agreement (HoA) in Jakarta for the development of a 600MW combined-cycle power plant. The CCGT will be fuelled by LNG that will be sourced through Philippines-based AG&P, a specialist for bringing LNG to markets that are currently off-grid.
EIA’s expands drilling report
Aug 16 - To complete coverage of U.S. crude oil and natural gas production, the US Energy Information Administration (EIA) is expanding the Drilling Productivity Report (DPR) to cover the Anadarko region. This prolific area covers most of the production from the Anadarko Basin in 24 counties in Oklahoma and five counties in Texas.
US to stay ‘net exporter’ past 2018
Aug 15 – The United States’ status as a net exporter is expected to continue for the rest of this year and past 2018 because of growing U.S. natural gas exports to Mexico, declining pipeline imports from Canada, and increasing LNG exports the US Energy Administration (EIA) forecasts.
GE books $100m deal for hydro pumped storage in Israel
Aug 14 – GE Renewable Energy has booked a turnkey contract with Star Pumped Storage Ltd for the 344 MW Kokhav Hayarden hydro pumped storage station, the second to be installed in Israel. GE Renewable Energy is responsible for the design, manufacture, supply and installation of all electro-mechanical and hydro-mechanical equipment as well as complete balance of plant for the two 172 MW pumped-storage units. The project will be executed by a consortium led by Chinese EPC SinoHydro.
Ansaldo to service Thai power plant
Aug 4 – Italy’s Ansalso Energia has won a service agreement for the Glow Energy Phase-5 gas power plant, some 200km southeast of the Thai capital Bangkok. The 328 MW plant produces electricity and also up to 160 tonnes/hour of process steam that gets used by local industries.
DTE Energy files plan to build 1.1 GW plant at Belle River
Aug 3 – Detroit-based utility DTE Energy has filed plans with the Michigan Public Service Commission (MPSC) to build a 1,100-MW gas-fired power plant northeast of Detroit, near its existing Belle River power station. The August 1 certificate of necessity filed with the MPSC asks for construction of the new $1 billion gas power project to begin in 2019 with a view to starting commercial operation in early 2022.
Coiled turbine market at 7% CAGR
Aug 2 – The coiled turbine market, by service, is seen expanding at a compound annual growth rate (CAGR) of 6-7% to reach an estimated $4.4 billion in 2020. North America is the largest market for coiled turbine (CT), both by value and by active fleet count. The United States in 2013 held the major share of the active fleet count of more than 59%, spurred by the surge of shale gas drilling activities, with analyst seeing further growth potential for ultra-deep CT services.
Aliso Canyon cleared to resume operations
Aug 1 – Aliso Canyon, California’s largest underground natural gas storage facility, has been cleared by the California Public Utilities Commission (CPUC) and Division of Oil, Gas, and Geothermal Resources to increase injections above earlier imposed limits. The facility has been undergoing extensive testing since a leak was detected in October 2015 and stopped in February 2016
Need for fast-ramp, fast-cycle dispatch propels up OPEX
July 31 – Rising penetration of renewable electricity sources in California is forcing gas-fired power generators in the state to cycle more often, which incurs higher operating costs. Analysis of hourly data from the California Independent System Operator (CASIO) shows that intermittent electricity supply from wind and solar caused 21% of the cycling events for the system's 120 fossil-fuelled generators in 2013, up 7.1% from two years earlier. The study was compiled by Renewable Impacts.
ABB delivers power solution for Shanghai Stock Exchange
July 21 – Swiss-based ABB has signed a contract to provide more than 1,500 units of MNS low-voltage switchgear for the Shanghai Stock Exchange (SSE) before the end of the year. Dubbed the Jinqiao Technology Center project the MNS switchgear deployment is meant to support the safe, efficient and reliable operation of the stock exchanges’ data center. SSE is ranked #4 in the Shanghai market, and is ranked #26 in China.
TNB extends acquisition period for 51% stake in SPG
July 20 – Malaysia’s state utility Tenaga Nasional Bhd (TNB) has granted SIPP Energy an further 30 days to fulfil conditions set out in the May 3 acquisition agreement when TNB bought a 51% stake in SIPP Energy’s Johor-based unit SPG for RM51. Set up as a special purpose vehicle in august 2016, SPG was given regulatory approval last September to build a 2x720MW combined-cycle gas power plant in Pasir Gudang, Johor. The CCGT is scheduled to start full commercial operation at the start of July 2020.
TVA’s new plant produces 1 GW in first three months
July 19 – Tennessee Valley Authority’s (TVA) new combined cycle gas power plant in Muhlenberg County has produced over 1,025 MW of electricity in its first three months of operation. The cost of the project is estimated at about $850 million, but TVA senior vice president Bob Deacy underlined the new CCGT will give the operator the option of fuel switching to optimise its coal- and gas-burn which will ultimately save money.
Toshiba opens hydrogen application centre in Tokyo
July 18 – Toshiba has opened a new hydrogen application centre at its Fuchu complex in western Tokyo. Research at the centre focuses the company’s new H2Onesolution for hydrogen supply system business for fuel-cell vehicles, or fuel-cell forklifts within buildings. According to project manager Hiroyuki Ota, “This center showcases totally CO2-free operation, from hydrogen production through to application.”
Opening of Rhode Island plant delayed unit 2020
July 17 – Chicago-based Invenergy has delayed the start-up of its proposed natural gas-fired power plant in Rhode Island until “at least 2020,” citing “delays in permitting. The Chicago-based company had previously agreed to start selling power to the regional grid in 2019.
China’s energy efficiency sector tops $13bn in revenue
June 14 – The International Energy Agency (IEA) is supporting association member states in implementing energy efficiency measures. In China, government policy created a whole new sector for low-energy solutions, retrofits and services. This niche sector got started less than 20 years ago but already employs over 600,000 people and has annual revenues of over $13 billion.
Centrica starts building 50 MW unit
July 13 – UK energy supplier Centrica has announced that construction works are getting underway this week on its new 50 MW back-up power unit at Peterborough power station. The new gas-fired ‘peaking’ plant will be driven by five Wartsila-built reciprocating gas engines. The plant operator will dispatch the fast-ramp unit mostly on weekdays to cater periods of peak power demand or to provide back-up electricity when requested by the National Grid.
