Daily News

Core inflation in Singapore has reached 1.9% – the fastest rise in four years – due to a surge gas and electricity tariffs. According to the Ministry of Trade and Industry (MTI), the uptick in energy prices was instated in July 2018 in reaction to a pickup in global oil prices in the preceding quarter.

Qatargas’commissioning cargo has berthed at Bangladesh’s first LNG import terminal, situated off Moheshkhali Island, has unloaded its commission cargo, received from Qatargas. Construction of the Moheshkhali Floating Storage and Regasification Unit (FSRU), developed by Exelerate, was finalized just 25 month after the project was first announced.

Israel Power Management (IPM) has appointed the British engineering services consultancy WSP as the Owner’s Engineer to support the delivery of a new 450 MW power plant at Be’er Tuvia, Israel. The $2 billion Shekel (US$0.5bn) project will be built by Siemens and is expected to be operating by the end of 2020.

With a 7.9 GW of America’s coal capacity due to retire, the U.S. Energy Information Administration (EIA) expects coal stockpile will decline through 2018 and remain low through 2019. This May, coal inventories, or stockpiles, in the electric power sector totaled 128 million short tons (MMst), 34 MMst or 21% lower than in the previous May – the lowest level for four years.

The Finish technology group Wärtsilä has delivered its first engine plus storage hybrid installation worldwide to Sinergy, part of ALTEO Group, in the Hungarian capital Budapest. The upgraded plant, running on three W34SG engines, was commissioned earlier this week and has a total output of 6 MW / 4 MWh.

Increasing the deployment of “volatile” renewable energies in Europe threatens power supply security across the continent, analysis the German Association of Energy and Water Industries (BDEW) shows. Surplus volume of secure power generation capacity will decline in the medium to long term throughout Europe.

Rebuking the Trump administration’s plan to roll back the Obama-era Clean Power Plan, California’s Gov. Jerry Brown called the proposal a "a declaration of war against America and all of humanity." Trump’s EPA new proposal gives states more freedom to set their own emissions standards at plants - a barely disguised favour for the coal industry.

More than two thirds of British people polled by YouGov would like to see a more decentralised, local model succeed the Big Six’s current monopoly. Three-quarters say they are prepared to join community energy schemes and many want their pension or banking investments to avoid fossil fuel projects.

Sembcorp Industries’ Gayatri power plant in India has won a tender, conducted by the Bangladesh Power Development Board (BPDB), to supply 250 MW of electricity to Bangladesh for 15 years. In a letter of intent BPDB stipulates the additional supply to Bangladesh upon completion of procedural requirements and government approvals. The plan is to add another unit to the Gayatri complex.

AES Colón – a $1.15 billion LNG import terminal and adjacent combined-cycle power plant – has just been inaugurated in Panama. The project comprises the first LNG regas terminal in Central America and a CCGT with 381 MW capacity. Start of commercial operation is slated for September 1.

Smart electrically-driven heating is a “valuable field in which to invest”, Delta-ee research finds, pointing at the substantial installed base of electrically-driven heating – 30 million units across Europe. In the UK, new business models are emerging providing heat-as-a-service, with the customer avoiding the need for buying fuel and appliances by simply buying the heat, and comfort that comes with it.

Agile, more efficient testing and product development for the marine, oil & gas and new energy sector will be facilitated at Wärtsilä’s new technology hub on Vaskiluoto island, near the Finish city of Vaasa. Wärtsilä will invest €83 million in modern testing and production technology for the hub, while total investment will amount to over €200 million.

Hazards of oversupply in oil and natural gas are preoccupying International Oil Companies (IOCs) as less carbon-intensive sources of energy compound the risk of future oil and gas oversupply. Still, Moody's analysts are convinced oil majors will tackle these new issues through a triad of conservative financial policies to strengthen balance sheets, capital discipline, and robust long-term planning that anticipates secular shifts – like the global trend towards renewables and energy storage.

Energy consumption per capita in Africa is forecast to rise up to 25% by 2040, but the African value is still projected to be one-half of the level in India, one-fourth of the level in Brazil, according to the International Energy Outlook 2018. The net effect of the IEO2018 Africa High Growth case on the rest of the world, because of trade and global supply chains, shows limited impacts on other countries in terms of output.

Analysts reckon Germany could still meet its 40% greenhouse gas reduction target by 2020, if several lignite-fired power plants are shut-down immediately and others curtailed in use, a study by the Fraunhofer Institute shows. “The technical possibilities aren’t lacking – only the political will,” commented Greenpeace energy expert, Anike Peters.

News in Brief

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.

Toshiba splits R&D for Power and Industrial Systems

Sept 28 – Toshiba Corp has announced it completed all necessary steps to separate its Power and Industrial System Research and Development Center and transfer the R&D on electricity to Toshiba Energy Systems, while research on industrial systems will be taken over by the company’s infrastructure arm. The split take effect on October 1.  

Gazprom’s supply to Austria up 34%

Sept 27 – The Russian gas major Gazprom has delivered record volumes to its Austrian partner OMV after an existing longterm contract was extended in June to run through to 2040.  From January 1 through September 23, 2018, Gazprom delivered 7.8 billion cubic meters (Bcm) of gas to Austria, a 34.5% rise compared with the same period last year. Full-year 2017 export volumes amounted to 9.1 Bcm.

Keystone XL construction to start in 2019

Sept 26 – TransCanada has received a key permit for $8bn Keystone XL pipeline, with the U.S. State Department ruling the 1,900km pipeline will not have any significant impact to either water or wildlife. Construction is now slated to start next year.

ABB partners with UBC

Sept 25 – Zurich-based ABB has entered a 3-year partnership with the University of British Columbia (UBC), focusing on biometric sensing. ABB will provide a total of $300,000 in funding ($100,000 per year), which will be matched by the Government of Canada.

GE launches ServiceMax 18.3.

Sept 24 – GE Digital has launched Service Max 18.3., a new version of its Predix ServiceMax Field Service Management (FSM). The new solution is said to give service technicians greater autonomy, dispatchers with more robust decision-making tools which utilities to better plan and execute complex service projects.

Aramco collaborates with Schneider Electric

Sept 21 – Saudi Aramco has signed a Memorandum of Understanding (MoU) with Schneider Electric to work together on various advanced digital technologies, including virtual reality. The MoU is one of several accords to support the Aramco’s 2020 Transformation Programme and the kingdom’s own Vision 2030 economic blueprint.