Daily News

Siemens’ Power and Gas (PG) division will be most affected by the Group’s latest round of restructuring which will affect 6,900 jobs, or 2% of the company’s global workforce and 6,100 jobs at Siemens PG. Global demand for large gas turbines, generating more than 100-MW, "has fallen drastically" and is "expected to level out at around 110 turbines a year," the German OEM stated. By contrast, the technical manufacturing capacity of all producers worldwide is estimated at around 400 turbines.

Complying with Israel’s tighter health, safety and environment regulations, PAZ Ashdod Refinery had to revamp existing process gas compressors for hydrogen application. PAZ entrusted Burckhardt Compression to carry out this task which also saw a performance upgrade of compressors by another Original Equipment Manufacturer (OEM).

GE’s Power Services business has signed an agreement with Azito Energie to upgrade two gas turbines at the company’s combined-cycle power plant and help increase power output by up to 30 MW. The project at Azito’s CCGT, located in the Yopougon district of the Ivory Coast, marks GE’s first GT13E2 MXL2 gas turbine upgrade in Sub-Saharan Africa.

Total energy-related carbon dioxide emissions are projected to continue falling for the second year in 2017 but rise slightly in 2018, according to the EIA’s latest Short-Term Energy Outlook. Utilities in Texas and the Midwest are leading the way in cutting emissions by burning less burning coal. In both states a record number of coal-fired power stations were retired, or converted to natural gas.

Angela Merkel’s Christian Democratic Party (CDU) sees the much-debated option of a successive closure of coal power plants as a “last resort to meet Germany’s 2020 climate goals.” However, the timeline of such a coal exit is subject to fierce debate in the ongoing talks to form a coalition government, with the Conservatives stressing the importance of “reliable and reasonably priced power supply.”

LNG imports to Spain jumped 45% in October, spurred by rising demand from industry and the power sector which propelled up the country's total gas imports 29% year-on-year to an equivalent of 37.8TWh. According to data from the Spanish TSO Enagas, most LNG cargoes in October were imported from Nigeria, followed by Algeria.

ITM Power has secured funding from the Department for Business, Energy and Industrial Strategy (BEIS) to deploy large scale Power-to-Gas energy storage on the Northern Gas Networks’ (NGN) distribution grid. In a subsequent study, both partners will examine the potential and cost-effectiveness of such storage solutions, starting from the 50 MWh range.

Shortly after completing the project financing agreement for the Muara Tawar power plant upgrade, Indonesia’s PT. Perusahaan Listrik Negara (PLN) has give Doosan Heavy Industries & Construction notice to proceed (NTP) with works to convert and expand the plant from 1,150MW in open-cycle to 1,800MW in combined-cycle mode.

The Government of South Australia has evaded questions in Parliament about the cost of its new mobile power generators that have been installed and tested at Elizabeth and Londsdale. Rumours have it the final price tag might exceed $400 million but Premier Jay Weatherill refused to provided details, pointing to a confidentially agreement with the generator’s operator APR Energy.

Germany’s largest utility RWE on Tuesday reported a recovery in Q3 profits but warned of a quick exit from coal power to further reduce carbon emissions and reach Germany’s climate target, as demanded by the Green Party. Just days earlier, RWE said it is de-mothballing another two gas power plants ahead of the coming winter.

France’s leading power transmission utility, RTE has contracted the Swiss engineering company ABB to deploy its Ability Network Manager control system to help enhance the grid’s reliability and efficiency. RTE manages a network of more than 1,200 transformers, 2,800 substations and 3,500 delivery points.

Sri Lanka’s energy minister Ranjith Siyambalapitiya is seeking to push a proposal for an LNG-fuelled power plant project through Parliament. The 400 MW Hambantota project will be built by a joint venture between the China Machinery Engineering Corporation (CMEC), nominated by the Chinese government, and the Ceylon Electricity Board.

“The boom years for coal are over” in the absence of large-scale carbon capture, utilisation and storage (CCUS), according to the IEA’s World Energy Outlook (WEO-2017) just issued. Over the next 25 years, the world’s growing energy needs are met first by renewables and natural gas, as fast-declining costs turn solar power into the cheapest source of new electricity generation.

Reacting to pressure from investors, General Electric’s new CEO John Flannery announced plans to exit the locomotives and industrial lighting markets to focus on aviation, power generation and healthcare, while shedding 25% of its corporate staff. “Complexity has hurt us,” he said, adding GE needed “right-sizing” in its power segment to reduce costs.

Japan’s Mitsui has agreed with the Bangladesh government to develop an LNG-fuelled combined-cycle gas turbine (CCGT) power plant with a capacity of between 500 MW and 600 MW at Cox Bazar. A memorandum has been signed in this regard between the state-owned Coal Power Generation Company Bangladesh (CPGCBL) and the Japanese firm. The deal comes just days after the Bangladeshi government agreed with Siemens on a 3.6 GW LNG-to-power project.

News in Brief

AsiaPacific drives growth in global GT market

Nov 17– Urbanisation and rapid economic growth in Asia Pacific will dominate market during the forecast period, according to MarketsandMarkets. The global market for gas turbines is expected to grow from an estimated $17.51 billion in 2017 to $20.66 billion by 2022, at a CAGR of 3.36%.

Kepco, Tadmax to build 1.3-MW CCGT in Malaysia

Nov 16 – Malaysia’s listed developer Tadmax Resources, together with South Korea’s state-run utility provider Kepco, are planning to build 1,300-MW  combined-cycle gas turbine (CCGT) some 60km southwest of Kuala Lumpur. The overall project is expected to cost $1 billion. Kepco announced it will invest $50 million to hold a 25% stake, while Tadmax Resources will own the 75% majority share.

Siemens delivers mobile turbines to Afghanistan

Nov 15 – Siemens has signed a Memorandum of Understanding (MoU) with Bayat Power and the Government of Afghanistan to provide SGT-A45 mobile gas turbines for a three-phase energy project. Upon completion, it will provide more than 200-MW of electricity, enough to meet the needs of more than 700,000 Afghan homes and businesses.

Baker Huges to supply 150MW of power gen equipment to Iraq

Nov 14 – Baker Hughes, a GE company (BHGE), has won a contract by PetroChina International Iraq to deliver Frame 6B gas turbine electric generator trains , with a combined output of 150 MW, for production at the onshore Halfaya oilfield in Iraq.

Gazprom gets €700m loan from Unicredit

Nov 13 – Gazprom and Unicredit have signed a five-year loan agreement worth €700 million. The loan will be used by Gazprom for “corporate purposes,” the company said in a statement.

Emerson to retrofit at turbines Engie’s DK6

Nov 10 – Emerson Electric, an American multinational corporation, has won a contract to retrofit controls on two Alstom GT13 turbines at Engie’s DK6 combined-cycle gas power plant (800 MW) in Dunkirk, France. The upgrade is the first time a vendor other than the turbine OEM has been selected to retrofit GT13 combustion turbine controls, Emerson pointed out. The first retrofitted unit is due to be back operational in September 2018, and the second in July 2019.

Rolls-Royce’s trading outlook unchanged

Nov 9 – providing a brief update on its trading outlook, Rolls-Royce CEO Warren East reconfirmed the full year outlook. Looking beyond 2017, he added: “While markets for our Power Systems products continue to improve, we note the ongoing weakness in offshore oil and gas markets for Marine and timing changes to new export orders for Defence Aerospace.”

Public consultation starts for Drax’s coal-to-gas conversion

Nov 9 – Plans by Drax Power to upgrade two units at its 2,000 MW coal- and wood pellet-fired power station to run on natural gas have gone to public consultation. The operator said it also notified the UK planning inspectorate about its intention to build a new natural gas pipeline and a 200-MW battery storage at the site near Selby, North Yorkshire.

ABB to optimize its transformer manufacturing

Nov 8 – Swiss-based ABB has announced a strategic realignment of its global transformer manufacturing, engineering and service divisions. In the United States, ABB will consolidate its power transformers manufacturing footprint by investing in its South Boston and Crystal Springs units and discontinue production at its unit in St. Louis, Missouri, which will continue to focus on engineering and service activities.

Flow-Cal launches on-demand gas measurement software

Nov 7 – Flow-Cal Inc., a Houston-based a developer of measurement data management software, has launched CALCit.Cloud, a an on-demand measurement calculator for natural gas and petroleum liquids. It allows users to perform various spot calculations, including gas volume, plate size, liquid correction factors and speed of sound. The source code of the application is in C computer language, or as a DLL that can be integrated into other applications. 

Russia, Iran sign MoE on gas cooperation

Nov 6 – A number of documents, aimed at fostering Russian-Iranian cooperation in the gas sector, were signed in Tehran over the weekend during the visit of the Russian President Vladimir Putin to Iran. The parties will evaluate prospects in developing Iranian gas fields with subsequent monetization either through liquefaction and export or petrochemical production. Gazprom and National Iranian Oil Company (NIOC) also signed a MoU to work together on the Iran-Pakistan-India gas pipeline project.

MHI to launch new engineering company in 2018

Nov 3 – Mitsubishi Heavy Industries (MHI) will launch a dedicated engineering company on January 1, 2018, to be named Mitsubishi Heavy Industries Engineering, Ltd. The new company, to be formed under an absorption-type split, will take over MHI's engineering businesses relating to chemical plants, transportation systems and environmental technologies. Shigehisa Kobayashi will serve as the new company’s inaugural President and CEO.

AsiaPacific drives growth in global GT market

Nov 2 – Urbanisation and rapid economic growth in Asia Pacific will dominate market during the forecast period, according to MarketsandMarkets. The global market for gas turbines is expected to grow from an estimated $17.51 billion in 2017 to $20.66 billion by 2022, at a CAGR of 3.36%.

Global Power divests Mexico facility for $3.5m

Nov 1 – Global Power Equipment Group has completed the sale of its facility in Mexico and the auction of the remaining production equipment for net proceeds of $3.5 million – about $1.5 million of which will be used to reduce debt. Following the divestment of its Mechanical Solutions segment, Global Power will focus on Electrical Solutions and Services.

GE’s Predix to enhance performance at Energo fleet

Oct 31 – Pakistan-based utility Energy has contracted GE to roll out Predix across its power  generation fleet in Pakistan and Nigeria. Under the 10-year agreement, GE will implement its asset performance management solution, Predix, at Energy’s six power plants with combined capacity of 1,500 MW. The facilities include the 220MW Engro Powergen Qadirpur CCGT, Engro 660MW Thar power plant, 450MW Kolachi CCGT and two new-built wind power sites in Pakistan, as well as the GEL 75MW facility in Nigeria.

Cummins, Microsoft team up in fuel cell lab

Oct 30 – Columbus-based Cummins, a large US maker of diesel engines, has partnered with Microsoft and McKinstry by opening an Advanced Energy Lab in Seattle. The aim is to demonstrate that an enclosed facility, e.g. a data centre, can run without power from the grid by integrating fuel cells directly into the 20-rack data center.

Construction starts for Żerań CCGT in Warsaw

Oct 27 – PGNiG Termika and the consortium of Mitsubishi Hitachi Power Systems and Polimex-Mostostal have laid the foundation stone for a new combined-cycle gas turbine unit at the Żerań cogeneration power plant in Warsaw. The new unit (output 490 MWe, 326 MWt) will be build by the MHPS/Polimex consortium under an EPC contract; handover is scheduled for 2020.