Daily News

Further hesitation or reluctance to undertake much-needed investment in new power generation capacity could threaten Britain's energy security. "Our priority is to rebuilt the power sector. To put it bluntly, we need twice as much investment every year of this decade, as in the last decade," the UK energy minister Charles Hendry said.

Turkey is close to importing natural gas from Iraq's autonomous Kurdish region with the buyer understood to have earmarked some of the volumes for gas-to-power generation. A deal could be struck soon: "A buyer is out there, right next door to Iraq," said Ibrahim Palaz, general manager of Botas International.

The European Bank for Reconstruction and Development (EBRD) will take a decision on whether to provide a senior loan of up to US$ 200 million for the proposed Kirikkale combined-cycle gas turbine (CCGT) power plant in the autumn of this year.

Users of electricity storage facilities can take advantage of daily variations of the electricity prices to reduce their overall energy costs. The EIA is supporting the use of electricity storage technology as a step towards a more efficient utilisation of electricity.

 General Electric (GE) has been selected to supply two LM6000 aeroderivative gas turbines for the ALPEK Cogeneration project at its subsidiary Petrotemex's site in Cosoleacaque, Veracruz, Mexico. GE said the plant is slated to start commercial operations in the first quarter of 2014.

As the UK government is searching for a cheap and quick fix to avert a looming gap in power generation capacity, new gas-fired power plants are likely to emerge as the preferred solution, investment bank JP Morgan said today.

The introduction of a capacity payment market is needed to stop German utilities from closing gas-fired power plants due to low profitability, according to the head of the German energy agency Dena, Stephan Kohler.

EU power demand is holding up better than anticipated despite declining gas consumption, Société Générale said today. Between January and April, EU gas consumption declined by 1.8% year-on-year (yoy) while electricity demand increased by 0.7%, respectively, figures in the bank's monthly demand report 'SG Energy Pulse' show.

The long-awaited UK draft energy is expected to favour new gas-fired and nuclear plants over renewables, as the Government is set to introduce new support schemes - including contract for difference -  as a price guarantee for power companies. The Government will propose a new draft law later today.

SPX Corporation has won a contract to supply an air-cooled condenser (ACC) for the proposed 1.3 GW gas-fired, combined cycle power plant in Warren County, Virginia.

During 2013, a SPX Cooling Technologies' 60 Module (10x6) SRC A-frame ACC will be installed at the plant, SPX said. Operational sart of the Warren County plant scheduled for December 2014.

Saudi Electric Company (SEC) is fast-tracking construction of its 12th gas-fired power plant project located near the Saudi Arabian capital of Riyadh. SEC said it aims to get the plant ready for commissioning in the coming 36 months.  

Mitsubishi Heavy Industries (MHI) has delivered four diesel engine power generators to the Republic of Palau as part of an emergency grant aid by the Japanese government to alleviate power shortages. MHI said installation work on the generators is slated for completion by the end of this month.

Dresser-Rand, a global supplier of rotating equipment solutions, has been commissioned by Max Bögl Group to install an indirectly fired KG 2-3 G gas turbine at its new biomass cogeneration plant in Bavaria, Germany.

Israel Electric Corp (IEC) has fast-tracked a tender for buying five gas turbines in an effort to bolster electricity supply ahead of the summer demand peak. Bidders for IES’s tender to buy five used mobile gas turbines (25 MW each) were asked to submit their bids within only 14 days.

Investors in new cogeneration plants in Spain eagerly await the introduction of a new support mechanism.

“An extension of the cogeneration tariff could prompt new investments worth up to €2,000 million for about 5,000 MW of new capacity by 2015,” Jose Luis Garcia, associate partner at Energia Local forecasts.

News in Brief

Floating power market to top $1.4bn by 2022

Sept 22 – The floating power plant market is expected to grow from an estimated $889.6 million in 2017 to $1,440.1 million by 2022, at a cumulated annual growth rate of 10.11%, from 2017 to 2022. Driving factors, according to MarketsandMarkets, are increasing demand for power, coupled with the lack of land-based power generation infrastructure.

ITM Power sells 1.1-MW power-to-gas plant to Gasunie

Sept 21 – UK hydrogen specialist ITM Power has sold a 1.1-MW power-to-gas electrolyser to EnergyStock, a subsidiary of Dutch gas grid operator Gasunie. The rapid-response PEM electrolyser will be deployed at the Zuidwending salt cavern storage; the generated hydrogen will be used on-site within EnergyStock's systems or dispensed into tube trailers for future hydrogen refuelling stations.

CCGT market to grow at 4.25% through to 2021

Sept 20 – The combined-cycle gas turbine market is forecast to grow at an annual rate of 4.24 % during the period from 2017 to 2021. Renewable energy’s high initial cost is still proving to be a major driver for the global CCGT market that offers a lower cost of power installation than renewable and nuclear energy.

GE to build four substations in Egypt

Sept 19 – Egyptian Electricity Transmission Company (EETC) and GE have closed a $250 million contract that will see GE build and install four Gas-Insulated Substations (GIS) across Egypt to connect 7 GW to the country’s national power grid by the end of 2018. The contract is fully financed through Deutsche Bank and HSBC France which helps secure smooth execution of the project.

Irma slashes energy demand in Florida

Sept 18 – Hurricane Irma has proved to be a demand-side event in Florida. At its trough, the state appeared to lose 1.9 bcf/d of demand versus pre-storm levels, mainly in the power sector. According to Energy Aspects figures, electricity demand on September12 dropped to 0.8 bcf/d, compared to a pre-storm baseline of 3.6 bcf/d.

Drax plans to convert two coal units to natural gas

Sept 15 – Drax Group has filed plans to the UK Planning Inspectorate to build a 200MW battery storage unit, and convert up to two coal units at the Drax power station to run on natural gas. If approved, the repowering could result in up to 3.6 GW of new flexible gas generation capacity. The utility stated its investment at Drax is backed by a 15-year capacity contract.

Azura Edo IPP ready to startup in early 2019

Sept 8 – Siemens-built Azura Edo Independent Power Project (IPP) is planned to add 459MW to the Nigerian national power grid by early 2019, Siemens Nigeria CEO Onyeche Tifase said. The Azura Edo IPP is an open-cycle gas turbine power plant project, which could potentially account for up to 20% of Nigeria’s installed capacity of 12.5MW by 2020.

Oman’s oil output hits new record

Sept 7 – Oil production in Oman has reached a new record, totalling 1 million barrel per day (b/d) in 2016. Dependent on revenues from oil and gas exports, Oman’s state finances have been hit by the plunge in oil prices which made 2016 oil and gas revenues plunge 67% compared with 2014 levels.

Petrofarc to build South Stream

Sept 6 – UK contractor Petrofarc won an engineering, procurement and construction (EPC) contract worth 340 million Euros ($404m) by the Gazprom-owned South Stream Transport company to build onshore pipelines and a gas receiving terminal near the Turkish town Kiyikoy.

Gas prices slowly return to normal after Harvey struck

Sept 5 – The price of natural gas and other petroleum products has surged in the aftermath of Hurricane Harvey. Yet as of Monday, key gasoline prices started to return to pre-Hurricane levels as key refineries and pipelines along the US Gulf Coast are resuming operation, easing supply concerns.

ACER to set deadline

Sept 4 – The European energy regulatory authority ACER is consulting until September 15 on an implementation date for harmonized prices in the EU's day-ahead and intraday power markets. Introducing maximum and minimum prices is meant to enhance market coupling.

Pöyry to review Shoaiba-4 plant

Sept 1 – The Saline Water Conversion Company (SWCC) has awarded Pöyry with the owner's engineer services assignment for the Shoaiba-4 desalination plant which will meet the potable water requirements of Saudi Arabia's second largest city and its five million people. Pöyry's scope includes review of contractor's engineering and supervision of construction, erection and commissioning.

Wärtsilä wins 220 MW power plant contract in Bangladesh

Aug 31 – Desh Energy Chandpur Power Company, an independent power producer (IPP) in Bangladesh, has contracted Wärtsilä of Finland to supply twelve 18-cylinder Wärtsilä 50 engines for a new 220 MW baseload power plant to be installed in Chandpur. The customer required a nine-month implementation time, with the plant due to be fully operational in May 2018.

Works start on Hickory Run CCGT

Aug 30 – Tyr Energy has started construction works on the Hickory Run Energy Center in Pennsylvania. The combined-cycle gas power plant has a nominal generating capacity of 1,000 MW.

Canadian Cats dealers merge

Aug 29 – Toromont Industries will acquire the businesses and net operating assets of fellow Canadian Caterpillar dealer Hewitt Group. The deal was agreed in turn for C$917.7 million cash plus the issuance of 2.25 million Toromont shares, the two companies said.

Ansaldo to service Thai cogen plant

Aug 25 – Glow Energy, one of Thailand’s private power producers, has contracted Ansaldo of Italy to service a 328 MW cogeneration plant, located in Map Ta Phut Industrial Park, 200km southeast of Bangkok. Apart from electricity, the plant produces 160 tonnes/hour of steam to support local industries. Ansaldo’s 15-year service deal covers maintenance, replacement capital parts and remote monitoring and diagnostics for the gas turbine.

Low voltage drives for China

Aug 24 – Siemens is to equip several Chinese aluminum factories with medium and low voltage drives. The value of the order is in the low tens of millions Euros. Commissioning will be completed in several stages between November 2018 and April 2019.