Daily News

‎June 27 – Houston-based KBR has won a project management consultancy services contract from Oman LNG for a new gas engine power plant. The 120 MW plant is meant to reduce fuel gas consumption and emissions while maintaining liquefaction processes at Oman LNG's existing export facility in Sur.

Published in Brief news

Nearly two-thirds of oil and gas sector leaders, surveyed by the Norwegian classification society DNV GL, plant to boost spending on gas projects in 2018, with gas expected to overtake oil as the world’s primary energy source in the mid-2030s. Thereafter, the energy transition will enter its final phase-out of fossil fuels, with hydrogen and renewables set to gain momentum.

Published in Markets

The Australian Energy Market Operator (AEMO) no longer warns of an imminent gas shortage in southern and eastern Australia after government pressure has made LNG exporters commit to divert some cargoes to the local market. "No supply gaps are forecast before 2030,” AEMO said when releasing its annual gas outlook – a stark contrast to the body’s earlier concerns about shortages starting from mid-2018.

Published in Regulation & Policy

Global gas trade expanded last year by 63 billion cubic metres, or 6.2%, with growth in LNG outpacing growth in pipeline trading, according to the latest BP Statistical Review of World Energy. The apparent absence of a glut shows, according to analysts, that any surplus LNG resulted in bouts of unsustainably low prices rather than a build-up of idle capacity.

Published in Markets

Strikingly, China has excluded LNG from a list of additional tariffs to be levied on U.S. imports despite the nascent trade war between the two super powers. Beijing’s move shows “LNG is clearly seen as an essential good," and in the event of an escalation Wood Mackenzie expects LNG to remain outside the bounds of any additional tariffs.

Published in Markets

Spain’s Gas Natural Fenosa (GNF) has renewed a natural gas supply contract with the Algerian incumbent Sonatrach until 2030. Price or volume details were not disclosed, but GNF stressed the deal guaranteed a stable cost structure for more than 40% of Spain’s overall gas procurement.

Published in Markets

June 18 – Oman LNG is seeking to develop a new gas engine-driven power plant at its Qalhat facilities. MAN Diesel and Turbo will deliver the gas engines and associated equipment, while KBR will manage the project execution, supply the generators and ensure safety requirements.

Published in Brief news

Chart Industries has named Jillian C. Evanko as chief executive and president to replace incumbent William C. Johnson. The U.S. LNG equipment-maker reiterated its full-year 2018 guidance of $1.15 billion to $1.20 billion of revenue.

Published in Markets

Dry natural gas production in the United States is about to reach a fresh record of 81 Bcf per day, spurring LNG export growth and pushing down prices this year. According to the U.S. Energy Agency (EIA), Henry Hub prices are forecast to average $2.99/MMBtu for the full year 2018, but notch up to $3.08/MMBtu in 2019.

Published in Markets

Australia’s biggest gas pipeline company, APA Group, has allowed CKI of Hong Kong access its books after the Chinese consortium made a A$13 billion (US$9.8bn) takeover bid. The suitor will, however, have to win over regulators on Canberra who view the massive offer with some critical restraint.

Published in Markets
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News in Brief

ABB relays help protect Brussels power grid

Oct 23 – Sibelga, the distribution system operator (DSO) of the Brussels metropolitan area, implements ABB’s Relion 615 series relays to ensure a protected power supply for 700,000 citizens. The agreement will see ABB add medium-voltage control relays to remote terminal units (RTUs), most of which will be retrofitted.

Fuel-switch capability falls

Oct 22 – U.S. manufacturers’ capability to switch fuels keeps falling because the equipment onsite does not support it. The amount of commonly used fuels that could readily be switched in less than 30 days dropped from 24% in 1994 to currently less than 10%, according to EIA figures. This trend leaves manufacturers vulnerable and less able to adapt to changes in regulations, market conditions and fuel prices.

Gazprom Export joins tax monitoring

Oct 19 – As Gazprom Groups transitions to a new form of tax control – tax monitoring, Gazprom Export will be the first unit to join the new regime as of January 1, 2019. Russia’s Federal Taxation Service (FTS) will be given remote access to Gazprom Export's data mart, with the new cooperation intended to streamline tax administration practices, reduce audit costs, and bring tax disputes to a minimum.

Wärtsilä 31DF engine to power cruise ship

Oct 18 – Wärtsilä’s 31DF dual-fuel engine has been selected to power a polar ice-class cruise vessel, built for the French operator Ponant at the Vard Søviknes yard in Norway. The equipment is scheduled to be delivered in 2020, one year before the in-service date of the cruise ship.

U.S. navy bases mulled to handle coal, gas exports

Oct 17 – U.S. Secretary of the Interior Ryan Zinke has proposed using some West Coast naval facilities to handle U.S. coal or natural gas exports, thereby circumventing local opposition. In particular, the abandoned military base at on Adak Island could be an option as an LNG export hub, he said.

DHIC partners with Dell EMC

Oct 16 – Doosan Heavy Industries & Construction (DHIC) has partnered with Dell EMC on digital energy, and the first joint project is to implement a digital solution at an Indian power plant. The Dell EMC system has a built-in power plant combustion optimizer, developed by DHIC based on the SAP platform.

IEA reviews Brazilian gas market

Oct 15 – The International Energy Agency (IEA) has published a review of the opening of Brazil’s natural gas transportation system. Through its Gás para Crescer initiative, the Brazilian government sets a plan to liberalize the local energy market by enhancing the build-out of natural gas and electricity interconnectors, unbundling of TSOs and implementing of network codes.

Global GT market looses value

Oct 12 – Though Asia emerges as No.1 market for gas turbines, the overall value of the global gas turbine market  is forecast to decline over the coming five years. According to a Global Data report, the market value between now and 2022 will be $37.97 billion, down compared with $52.39 billion in the 2013-2017 period.

FERC approves $6bn CenterPoint/Vectren merger

Oct 11 – US Federal Energy Regulatory Commission (FERC) has approved the $6 billion merger of CenterPoint Energy and Vectren, whereby shareholders of the latter will be paid $72.00 in cash for each CenterPoint share. Vectren CEO Carl Chapman welcomed the ruling and added the companies “now anticipate a closing no later than the first quarter of 2019.”

Dürr buys part of Babcock & Wilcox

Oct 10 – Dürr Group, a Germany-based mechanical and plant engineering firm, has completed the acquisition Babcock & Wilcox’ (B&W) industrial environmental technology business. The takeover broadens Dürr’s portfolio on exhaust-air purification technologies, with a workforce of around 1,500 and estimated sales of € 400 million.

Azure achieves $12.50 per share

Oct 9 – India-based Azure Power Global Ltd has priced its underwritten public offering of 14,800,000 equity shares at a price of $12.50 per equity share. The company also granted underwriters a 30-day option to purchase up to an additional 1,200,000 shares at the same price, less underwriting discounts and commissions. The offering will close on October 10, 2018.

Global gas use grows at 2%/yr

Oct 8 – The International Gas Union (IGU) expects global gas consumption to grow by 1.6 to 2% per year in the coming decades. “Competitiveness, affordability, and eco-friendliness will remain essential in that regard,” said IGU President Joe M. Kang.

Financing agreed for EVM-II plant in Mexico

Oct 5 – A financing package of $740 million has been agreed for the Energias del Valle de Mexico II (EVM-II) combined-cycle power plant. Commercial banks involved in the financing were led by BNP Paribas, Citi, SMBC, and Mexico’s Banco National del Comercio Exterior. Milbank served as legal advisor.

MAN wins award for small-scale LNG paper

Oct 4 – A whitepaper by MAN Energy Solutions entitled ‘Small-scale LNG - powering the future of Asia’s island communities’ has won the Best Paper Award at this year’s Power-Gen Asia trade show. The paper ties in with MAN’s new strategy to deliver the entire value chain from small scale regas and import terminals to decentralized gas- and dual-fuel engine, and turbine-driven power plants. Carsten Dommermuth, International Business Development Manager, said “this setup is a real advantage for customers seeking to source a complete LNG-to-Power solution from the same provider.”

IEA laments steep drop in clean energy investment

Oct 3 – The latest steep drop in clean energy investment is “worrying,” according to Fatih Birol, head of the International Energy Agency (IEA). Official figures show spending on renewables fell to $298 billion worldwide in 2017, down from $318bn in the previous year, marking the biggest absolute fall on record.

Siemens closes Mendix acquisition

Oct 2 – The German engineering conglomerate Siemens has closed the Mendix acquisition, just eight weeks after the transaction was first announced. Part of Siemens’ Vision 2020+ strategy, the integration of Medix digital platform is aimed at creating new SaaS solutions and extensions, particularly for the Digital Enterprise Software, MindSphere.

Merger of BASF Wintershall and DEA goes ahead

Oct 1 – BASF Group has agreed to merge its German oil and gas business BASF Winterhall and with Deutsche Erdöl AG (DEA), owned by the Russian investor group LetterOne. The joint venture will operate under the name Wintershall DEA.