Daily News

Growth in Europe’s gas demand has returned and stays underpinned by the power sector, with higher coal and carbon prices continuing to support the competitiveness of gas-fired power generation, says Murray Douglas, research director, Europe gas at Wood Mackenzie. Most importantly, in his view, is that national coal phase-out policies are being enacted throughout Europe which will boost gas demand through to the mid-2020s.

The French EPC company Groupement TEC-IEE has contracted Wärtsila to build a small-scale power project intended to boost the development of local industry in Equatorial Guinea. The new 38-MW plant, equipped with four 34DF dual-fuel engines, will be running primarily on gas supplied from the country’s offshore fields.

With the launch of P9394GSI S5, rated at 2,500 horsepower, GE Distributed Power is adding another model to its Waukesha VHP Series-5 family of rich-burn gas engines. The new S5 engine has an improved cylinder head, piston/ring design, Miller-cycle combustion and Waukesha’s latest ESM-2 engine controls.

Anglo-Swiss commodity trading and mining company Glencore has signed a financing deal with Limay LNG Power Corp. of the Philippines and China Energy Equipment Company to jointly realize an integrated LNG import and power generation facility. The project includes a floating storage and regasification unit (FSRU) that will supply to fuel a power plant with up to 1,100 MW installed capacit in Bataan, Luzon Island.

Toshiba Energy Systems & Solutions (ESS) has started a survey to develop applications and use of its hydrogen-based H2One energy supply system, targeting isolated regions on islands in Indonesia and the Philippines. H2One utilizes renewable energy and hydrogen-powered fuel cells to deliver CO2-free electricity and hot water supply.

MHI Compressor Korea Ltd. (MCO-K) has been launched as a Joint Venture by a group company of Mitsubishi Heavy Industries and Mitsubishi Corp. Operating out of Seoul as of October 1, MCO-K is tasked to “further cultivate the promising market in South Korea,” where the Japanese manufacturer already sold many compressors and drives.

Siemens and Southern Idaho Solid Waste (SISW) have recently commissioned SGE-56HM gas engines that drive a landfill gas-to-energy project at the Milner Butte Landfill in Burley. These two SGE-56HM engines, each rated at1,300kWe, can convert 1,000 tons of landfill waste daily into – enough electric to power for approximately 2,000 homes.

Ansaldo Energy, the Italian power engineering company, has shipped the first gas turbines from its new production facility near Genoa Cornigliano. Following final assembly, large heavy-weight turbines – including Ansaldo's flagship GT36 – can now be shipped directly from the port of Genoa to customers worldwide.

Finland-based technology group Wärtsilä has decided to redesign its organization into two separate business areas – Wärtsilä Marine and Wärtsilä Energy, both covering new sales and services. With this change, Wärtsilä aims to deliver better value and serve to customers. The new structure will be in place as of 1 January 2019.

Net natural gas exports from the United States are spiraling up as more and more LNG export capacity comes into operation. From January through June of 2018, net gas exports averaged 0.87 billion cubic feet per day (Bcf/d), , which is more than double the average daily net exports during all of the previous year, at 0.34 Bcf/d.

Rolls-Royce, one of Britain’s leading engineering companies, has bought a stake in the Berlin-based energy storage and systems start-up Qinous. Marcus Wassenberg, CFO at Rolls-Royce Power Systems called the acquisition a “strategic investment” aimed at setting up a partnership to “develop of innovative energy storage solutions to meet tomorrow’s needs.”

Siemens and the Scottish energy company SSE work together to build the high-efficiency gas power station Keadby 2 in Lincolnshire. The consultancy Timera Energy, however, questioned the economic viability of SSE’s decision to invest £350 million in the 840 MW unit, considering the £8.40/kW clearing price in the 2018 UK capacity auction.

Singapore’s SP Group has contracted ABB to supply its DC fast-charging stations as part of an initiative in Singapore to accelerate the adoption of e-mobility in the city-state. In total, ABB will install 500 EV charging points across Singapore by 2020.  

Gazprom is forging ahead with construction of the Amur Gas Processing Plant – the world’s second largest gas processing facility and a critical part of Russia’s Power of Siberia pipeline. The first heat exchanger, produced by Linde and Severgroup, has just been delivered from St. Petersburg to the construction site near the city of Svobodny, Amur Region, close to the border with China.

Uncertainty looms large over what effect of battery electric and plug-in hybrid vehicles (EVs) will have on worldwide energy consumption in the long run. Technological change, state subsidies and consumer choices are the three key parameters to determine future demand, with EV sales forecast to double from low levels by 2040.

News in Brief

Siemens opens Pittsburg Service Center

Nov 16 – Pittsburgh Service Center (PSC), a $32 million state-of the art facility spanning over 300,000 square feet, has been opened by Siemens in Mount Pleasant. The centre is home to Siemens Turbine Generator Specialty Services (TGSS) which belongs to the company’s large-scale turbine segment

Drax faces legal action over Repower project

Nov 15 – Britain’s power producer Drax is facing a law suit over plans to start converting two coal-fired units at the plant into four combined cycle gas turbines (CCGTs). Drax argues the move will help it exit coal by 2023, but environmentalist object the Repower project, arguing it would “risk locking in high-carbon energy onto the grid until 2050.”

U.S. turbine market to top 14GW by 2024

Nov 14 – The U.S. industrial gas turbine market is expected to exceed 14 GW by 2024. Federal government initiatives to expand the penetration of natural gas-fired station will augment the industry outlook, according to a Market Study Report.

Xcel snaps up Mankato Energy Center

Nov 13 – U.S. electric utility Xcel Energy has agreed to purchase Mankato Energy Center in Minnesota from Southern Power in a $650 million deal. A second gas-fired power unit is scheduled to come online in 2019, set to increase the plant’s total generating capacity to 760 MW.

Shell re-focuses on new energies

Nov 12 – Electricity and new green fuels have risen on the agenda of Royal Dutch Shell, with the company announcing plans to invest up to $2 billion a year through to 2020. “That might seem modest by oil and gas standards, but we can do a lot with it in this space,” commented Brian Davis, Shell’s VP energy solutions.

Kollsnes shut down

Nov 9 – A collision between the frigate Helge Ingstad and the tanker TS Sola off the Sture terminal near Bergen in western Norway has led to the closure of the Vestprosess pipeline and Kollsnes gas processing plant, the Norwegian TSO Gassco said in a market note.

MHPS to service Uzbekenergo’s power plants

Nov 8 – Mitsubishi Hitachi Power Systems, Ltd. (MHPS) has signed an accord with state-owned Uzbekenergo and Mitsubishi Corp to collaborate in a service and maintenance program (CSMP) for power plants in Uzbekistan. The agreement is meant to help grow the reach of Japanese companies in Central Asia.

Austria to import more Russian gas

Nov 7 – Russia’s gas giant Gazprom and OMV of Austria have signed Gazprom and OMV an amendment to their supply contract, stipulating deliveries to Austria will be increased by 1 Bcm/y beyond the contractual. In the first ten month of 2018, alone supplies of Russian pipeline gas have grown by a third compared to the previous year, reaching 8.8 Bcm.

UK launches 1st geothermal plant

Nov 6 – The UK’s first geothermal electricity plant has gotten underway today, backed by £18 million in funding. Drilling started using a rig from Helsinki. Once operational, demonstration plant will deliver up to 3 MW of electricity to the National Grid.

Germans register more EVs

Nov 5 – Electric vehicles (EVs) are gaining popularity in Germany: The share of pure EVs in s new car registrations climbed to 1.3% in October, as the total number of new EVs increased 55% year-on-year, according to the Federal Motor Transport Authority (KBA). Hybrid cars account for a 4.4% market share, diesel fell to 31.8% and the lion’s share of 62.3% is still taken by petrol models.

GE retrofits Wet FDG in India

Nov 2 – India’s largest energy conglomerate NTPC Ltd. has asked GE Power to supply and install Wet Flue Gas Desulphurization (Wet FDG) technology at four power plants in a deal worth US$247 million. The four facilities are the 2x660 MW Solapur power plant, the 2x660 MW Tanda Stage-II, the 1x500 MW Feroze Gandhi Unchahar project and the 2x660 MW Meja power project.

Floating power barge

Nov 1 – Siemens has developed barge-based, turnkey floating power solutions that take a critical part of an FLNG facility’s infrastructure — power generation — off a project’s critical path. According to the manufacturer, this helps reduce overall project execution time by as much as 25% or more, maximizing return on investment.

KBR posts 28% rise in profit

Oct 31 – U.S. engineering company KBR has reported a rise in net profits and voiced optimism to secure more mid-scale LNG and downstream projects with its joint venture partner ConocoPhillips. Third-quarter revenues rose by more than 23% to $1.27 billion, compared with $1.03bn in Q3-2017. Net profit was $58 million, up 28% from $45m in the year-ago period.

Togo: IPP gets go-ahead

Oct 30 – Eranove, a private equity-backed independent power producer (IPP), has received the green light for a $110 million power project in Togo. A concession agreement was signed for the combined-cycle power plant to be built in the area of Lomé port. The Spanish firm Grupo TSK was selected as EPC contractor for the 65-MW project.

Goldman, Cargill fined for avoiding tax on Teeside

Oct 29 – Goldman Sachs and Cargill have been hit with a £79 million fine for dogging tax on their ownership of a Teesside power plant. The two U.S. banking giants took over Teesside Power Ltd after the collapse of Enron in 2001, and HM Revenue and Customs just won a court case against the two trading houses over a tax avoidance scheme.

Gazprom to start production at Kovyktinskoye in 2019

Oct 26 –The Russian gas giant Gazprom has announced it will to start production drilling at the vast Kovyktinskoye field in 2019, with a view to start feeding gas from Kovyktinskoye into the Power of Siberia gas pipeline in late 2022. Situated in eastern Siberia near Lake Baikal, the field holds an estimated 2.7 Tcm of gas reserves, and 90.6 million tons of gas condensate, and 25 Bcm/y of planned design capacity.

MAN launches ETB blower in China

Oct 25 – A new Electrical Turbo Blower, the designated ETB40, has been launched by MAN Energy Solutions at a ceremony in Shanghai hosted by its two-stroke licensee, CSSC-MES Diesel Co. (CMD). The blower raises the exhaust-gas pressure in order to overcome the pressure difference between exhaust gas and scavenging air receiver.