Wärtsilä today reported a lower than expected quarterly profit due to a slowdown in services while order-intake in its power plant business remained stable. “Net sales developed well in the third quarter, thanks to the strong growth in newbuild marine and energy deliveries. This, in combination with slower development in transactional service volumes, is affecting the group sales mix and burdening profitability,” said Wärtsilä CEO Jaakko Eskola.
India's Prime Minister Narenda Modi has voiced concerns over excessive delays in joint venture projects with Sri Lanka. The neigbouring island nation is expected to fast-track a LNG-fuelled power plant after a coal power project was halted, just when the Indian JV was about to start construction. Despite approval for a $250 million LNG import terminal near Colombo, the Indian-Japanese JV has followed through with the project.
A banking consortium led by JBIC, the state-owned Japan Bank for International Cooperation, has agreed to lend US$1.31 billion for a LNG-fuelled power generation project on the Indonesian island of Java. With a capacity of 1,760 MW, the power station will build and operated by Marubeni, Sojitz and Persero, while LNG supply will be arranged by Mitsui O.S.K. Lines. Start-up is scheduled for 2021.
Annual capacity factors for gas-fired power generators in the PJM Interconnection – the largest competitive wholesale electricity market in the United States – have increased in recent years, reflecting greater use of competitively priced shale gas in the region. The role of combined-cycle gas power plants (CCGTs), in particular, has shifted from load-following to frequently providing baseload power supply, instead of coal.
Siemens and General Electric, two rival global engineering companies, are at loggerheads over a multi-million dollar power generation deal in Iraq. The Trump administration now intervened and put severe pressure on the Iraqi government to award part of a $15 billion contract – first discussed and pre-arranged with Siemens – to GE Power & Gas.
Qasim Al-Fahdawi, the Iraqi electricity minster has signed a milestone agreement with Siemens CEO Joe Kaeser over the weekend to implement the company’s ‘Roadmap for repowering Iraq.’ Plans are to add 11 GW new gas-fired power plants in Iraq within four years, which would effectively boost existing capacity by almost 50%.
The pipeline rupture in early October at Enbridge’s BC gas interconnector still affects electricity markets and petroleum refining in the U.S. Pacific Northwest. Imports averaged 1.1 billion cubic feet per day (Bcf/d) in the first half of this year, but fell to zero after the rupture and the pipeline now operates only at 80% capacity.
The global energy transition moves faster than expected Wood Mackenzie says, suggesting a "sustainability tipping point" – when the world shifts from the ‘Age of Oil & Gas’ to the ‘Age of Renewables’ – will arrive by 2035, less than 18 years from now. Renewables and the use of electric vehicles are seen underpinning the pace and intensity of the transition.
As decommissioning of coal plants and grid-integration of renewables lead to rising variability of power supply in the area of the Midcontinent Independent System Operator (MISO), GE and Clarke Energy have been asked to supply a turnkey combined heat and power (CHP) plant to Sebewaing Light & Water (SL&W), a municipal utility. The CHP is slated to start operating in Q1-2019.
Striving to roll-out battery storage, Duke Energy has announced to invest $500 million in several projects spread across North and South Carolina over the next 15 years. In total, the storage projects will have a combined capacity of 300 MW.
Iran’s MAPNA Group has been selected to supply turbines and generators to the Jandar combined-cycle gas power plant, under construction in Western Syria. Turbine delivery to the Jandar CCGT is part of a wider contract that will see MAPNA supply generating equipment to a total of 65 power units with a combined capacity of over 9,600 MW.
TenneT, Thyssengas and Gasunie Deutschland have announced plans to build a power-to-gas plant, designed to turn renewable energy into gas for industrial use in the Ruhr region. With an output of 100 MW, it will be the largest P2G plant of its kind in Germany, and is scheduled to be operational by 2022.
PW Power Systems, part of MHPS Americas, has signed up its first customer active in oil & gas upstream. U.S. Well Services (USWS) ordered 30-megawatt FT8 MOBILEPAC aero-derivative gas turbine generators to power its new electric frack fleet. USWS said its first two new-build fleets will be deployed for two of its customers during the first quarter of 2019.
Alexey Miller, Gazprom Chairman and CEO, stays adamant in arguing China will prefer stepping up pipeline gas imports over incremental LNG supplies to meet the country’s rising energy demand. “Pipeline gas supplies from Russia will always be more competitive than LNG deliveries from any other part of the world,” Miller said, pointing out that Gazprom’s annual gas exports to Chinese buyers will reach 120 billion cubic meters this year alone.
Substantially less nuclear power supply has been available throughout the U.S. this autumn, mainly because the 2018 seasonal maintenance and refueling cycle began earlier. According to the U.S. Energy Information Administration (EIA), the total nuclear outages averaged 14.5 GW in the last week of September, prompting utilities to fire up gas-fuelled power stations to balance supply and demand.