Daily News

Seasonal imports of LNG help meet peakload gas demand in New England’s industrial and power sector. During the freeze in the first week of February, more than 800,000 million cubic metres per day of gas was imported via Excelerate’s Northeast Gateway floating regas facility offshore Boston.

Though EU member states decided to tighten unbundling rules on gas interconnectors, parliamentarians agreed to a French-German compromise for the €9.5 billion Nord Stream-2 pipeline. The deal places the controversial project “under European control”, but with Germany as the lead negotiator with Russia's Gazprom.

Mitsubishi Hitachi Power Systems’ (MHPS) turbine, model M501 JAC, has been chosen to power what will become Virginia’s highest efficiency combined-cycle power stations. Developed by Gemma Power Systems and Balico, the Chickahominy CCGT will provide over 1,600 MW of electricity once completed in 2022.

Harrison Power is seeking to fast-tracking construction at its 1,100 MW combined-cycle power project in Cadiz, Harrison Country, Ohio. Though the groundbreaking date has been pushed back to Q1-2019, developers are seeking to get the CCGT into full commercial operation in the second quarter of 2021, providing electricity into the PJM Interconnection market.

Private equity firm Hull Street Energy has agreed to acquire the Bayswater and Jamaica Bay gas-fired power stations from a subsidiary of NextEra Energy (NEE) Resources. The two plants, situated in Far Rockaway, New York, provide some 110 MW of flexible, fast-start generating capacity to the region.

Price will largely determine the share of gas-fired generation in the future power mix of the United States. Scenario analysis in the EIA’s latest Annual Energy Outlook (AEO2019) shows that natural gas could provide between 21% and 54% of all U.S. electricity generation, dependent on fuel prices and relative technology costs.

Implementing the German coal exit will see 12.5 GW of coal-fired capacity being closed by 2022, pushing up the country’s gas demand. To fully replace these shuttered coal plants with gas-fired generation would create a need for additional 81 TWh in gas supply, equating to an 8% rise of German gas demand, says the lobby group Zukunft Erdgas.

Paz Oil, the largest Israeli fuels company, has decided to move ahead with a plant to build a 700 MW gas-fired power plant in the port city of Ashdod. The proposed plant is estimated to cost up to $700 million, partly debt-financed, and is intended to start operating in 2023.

For F-class turbine operators demanding fuel flexibility retrofits, Ansaldo Energia offers a tested and commercially proven combustion system for gas turbines originally manufactured by GE, Siemens-Westinghouse and MHPS. The sequential combustor is designed specifically for the use of hydrogen (H2).

USC Iceberg Central Design Bureau, a Russian shipbuilding company based in St. Petersburg, has launched a tender for a 50-60 MW floating power plant. Potential bidders for the tender are asked to include both construction costs and long-term maintenance costs.

The UK government’s Department for Business, Energy and Industrial Strategy (BEIS) is inviting applications for funding under a new £320 million Heat Networks Investment Project (HNIP). Designated as ‘gap funding,’ the monies will be is offered through a combination of grants and loans over a period of up to three years.

Bentley System, together with Siemens, has launched a new digital solution for substations to grid-integrate distributed energy sources. OpenUtilitiesDER Planning & Design Assessment Solutions creates a digital twin for utilities that allows operators to more efficiently model, plan and approve rising request for supply of distributed power to the grid.

If the asset swap of RWE and E.ON goes ahead, the resulting companies would have “unprecedented market power”, say Ines Zenke from energy law firm Becker Büttner Held. In 2018, E.ON agreed to buy RWE's subsidiary innogy and the two utilities agreed to exchange large parts of their assets. The swap will leave E.ON focused on regulated distribution grid with stable returns, while RWE takes on E.ON's and innogy's renewable business, on top of fossil power plants.

Dubai Electricity and Water Authority (DEWA) has announced it completed 98% of the Jebel Ali M-Station expansion project. The expansion is adding two gas-fired units with a combined 700 MW and will increase M-Stations total capacity to 2,885 MW.

General Electric will have to pay a €50 million fine to the French government after creating just 25 out of a promised 1,000 jobs in the country in connection with the Alstom takeover.

News in Brief

France imports more Russian gas

March 21 – Demand for Russian gas continues to grow in France, with Gazprom’s exports rising 5.4% last year to 12.9 billion cubic meters (bcm). The upward continued into early 2019 and provisional estimates show some 2.5 bcm of gas was exported to France from January 1 to March 14, 2019, a 1.9% increase on the previous year period, Gazprom CEO Alexey Miller noted when discussing contractual supplies with his counterpart at ENGIE, Isabelle Kocher.

Merger wave grips UK oil &gas sector

March 20 – Significant pressures are here to stay in the UK oil and gas sector, with the trade association Oil & Gas UK (OGUK) saying the industry is facing a “new reality” amid high levels of M&A activity and the related transfer of assets. The ongoing consolidation process forces the industry to embrace new forms of collaboration and business models.

Chevron Nigeria to supply gas to Dangote

March 19 – Chevron Nigeria has agreed to supply natural gas to Dangote’s fertilizer plant in Nigeria. The deal is part of the international oil major’s gas supply obligation to the domestic market under the Nigerian Gas Master Plan.

POSCO wins $100m CHP deal in Mexico

March 18 – POSCO Engineering & Construction, part of the leading South Korean steelmaker POSCO, has signed a $100 million agreement with Ener AB to build a 100-MW combined heat and power plant in Mexico. Situated in Coahila, the CHP will serve the energy needs of the nearby Magnelec chemical plant.

Wood to install Siemens turbine in North Carolina

March 15 – Wood Group has secured a contract from Siemens to install a HL-class gas turbine at a power plant in North Carolina. Construction works are estimated to involve 400 people and last for approximately 11 months, Wood Group said. Once installed, the turbine will add 400 MW to the plant's existing capacity 1,200 MW. Financial details of the deal were not disclosed.

J-series turbine passes 750000 hours

March 14 – Mitsubishi Hitachi Power Systems (MHPS) has announced their global fleet of J-Series gas turbines accumulated over 750,000 hours of commercial operation. The J-Series fleet now includes 39 turbines in commercial operation, with 28 of those exceeding 8,000 hours and the fleet leader having more than 45,000 hours of operation.

German gas prices up 9% in March

March 13 – Household energy prices in Germany have risen substantially in March 2019, compared to the same month in the previous year, according to the price comparison site Verivox.  Electricity prices increased 5% to a new record of 29.42 cents per kilowatt hour (ct/kWh) in March to date, up from 27.99 cents a year ago, while natural gas prices jumped 9% to 6.1 ct/kWh.

MAN turbines commissioned at Chinese CHP

March 12 – MAN Energy Solutions has installed and commissioned a MGT6000 gas turbine and a THM-series gas turbine at a combined heat and power (CHP) plant that replaces a coal-based power plant in Changsa, Hunan Province. Another MGT6000 just started commercial operation at a cogeneration plant, optimized to run on natural gas, at an industrial zone of Dongguan City in Guangdong Province.

Gazprom breaks ground on 200-MW CHP plant in Serbia

March 11 – Russia’s state-run Gazprom has started construction of a combined-cycle gas cogeneration plant near Pancevo Refinery in Serbia. The site is owned by Novi Sadpart, part of Gazprom Neft Group. The 200 MW plant will be Gazprom Energoholding Group’s first power project outside of the Russian Federation and is slated for commissioning in 2020

ABB pilots digital control rooms in Sweden

Jan 8 – Swiss-based ABB has launched a new digital solution for control centers that is being pioneered and tested in a pilot project by the Research Institutes of Sweden (RISE). The cloud-based application works in synergy with many other ABB Ability solutions, and provides a platform for information-sharing.

MHPS opens new office in Bangladesh in bid to boost sales

Jan 7 – Mitsubishi Hitachi Power Systems, Ltd. (MHPS) has opened a branch office in Dhaka, the capital of Bangladesh, to strengthen its regional sales capabilities for thermal power stations. With the economy growing 6% in recent years, the Bangladeshi government seeks to boost the nation’s power generation capacity from currently 17 GW to approximately 24 GW by 2021 and further to 40 GW by 2030. To reach this goal, Bangladesh has started importing LNG amid state supports for private sector investment in large scale LNG-to-Power projects.

Shell mulls sale of Mahanagar Gas stake

March 6 – Shell India, the local business of Royal Dutch Shell, is considering to exit its city gas distribution business by selling its 10% stake in Mahanagar Gas Ltd. Shell acquired the stake in connection with the BG takeover in 2016, and last year already offloaded most of shareholding two two bulk divestment deals.

Siemens buys KACO’s string inverter arm

Jan 5 – Siemens announced it will acquire the string inverter business of the KACO GmbH, a manufacturers of power electronics, for an undisclosed amount. Siemens said wants to integrate KACO in its new Smart Infrastructure Operating Company, and expects the deal to close in H1-2019.

Power gen dominates Rolls-Royce’s engine business

March 4 – For the first time, Rolls-Royce Power System has manufactured more engines for electric power generation than for marine propulsion, the UK-based company said when reporting solid full year results. Revenue surged 15% to a record €3.9 billion in 2018, with adjusted profit up at €358 million resulting in a 9.1% return on sales.

Siemens produces module batteries in Trondheim

March 1 – Siemens has invested in a battery module factory in Trondheim, northern Norway, equipping the factory with a robotizied and digitally supervised production line with eight 300 MWh stations. Up to 55 battery modules per shift can be assembled every day, for use mainly in the marine and offshore market.

GE CEO committed to reduce debt “soon”

Feb 28 – General Electric CEO Larry Culp, in his first letter to shareholders, has said the company has too much debt and needs to reduce it “thoughtfully and soon.” Seeking to rebuild the ailing manufacturer, Culp focuses on GE’s four core businesses: power, renewable energy, aviation and healthcare. By adopting a “disciplined financial policy,” he wants GE achieve an industrial net debt/EBITDA ratio of less than 2.5x and a dividend in line with peers over time.

IEA launches ESCOs directory

Feb 28 – The International Energy Agency (IEA) has launched a new web resource dedicated entirely to energy service companies (ESCOs). The value of the global ESCO market grew 8% to $28.6 billion in 2017, helped by an 11% expansion in China and continued strong growth in the U.S.