Daily News

Gauging incremental gas demand, derived from new power plant projects worldwide, Energy Aspects says most of Asia’s new-build capacity drives "additional LNG demand,” while North American projects are “all likely to be fed by local shale gas. Analysts found there is over 37 GW of new gas-fired power generation capacity under construction in LNG importing countries which, upon start-up, will directly impact global LNG markets. 

Chart Industries, the US LNG and energy equipment maker, has returned to a first-quarter profit following  internal restructuring and amid a rise in its order-book. Order activity has risen 53%, or $111.4 million ($74.4 million excluding Hudson Products) above the first quarter of 2017, said Chart with reference to its acquisition of rival Hudson.

Iquitos, a city in Peru’s jungle region, has a new source of baseload electricity supply following the commissioning of seven MAN 32/44R engines at a power plant, operated Telemenia and V-Power. Logistic for the project had been very demanding, due to remote location of the port city of Iquitos – a gateway to jungle lodges in the northern Amazon.

Making its debut in the Mainland China market, Siemens has secured an order to supply two H-class gas turbines and other components for installation at the CHD Guangzhou Zengcheng combined cooling, heat and power plant (CCHP) project. The customer is Huadian Fuxin Energy, part of the state-owned utility China Huadian Corp, and start of the CCHP's commercial operation is scheduled before the end of 2019.

Energy companies, investors and policy makers in Germany need to move faster to not miss the tipping points in the energy transition, which would leave many conventional energy investments stranded and could see taxpayers picking up the bill, experts warned at an industry event in Berlin. Blackrock Vice President Sverker Akerblom said there was enough capital available and renewables were competitive, but there were simply not enough projects to invest in. "A global carbon price would be important to drive investment," he said.

Urging for quick action to smarten up electricity transmission networks, Enel CEO Franceso Starace has criticised the lack of support from regulators and policy makers. The need for digitalisation “is very difficult for regulators to understand,” he said at an industry conference in Berlin, but “if you forget the networks, dear ministers, they will not carry on.” For utilities, transiting from fossil fuels to renewables, the grids are seen as a “very sexy part” of the value chain but needed a lot of investment.

Dry natural gas production in the United States will keep growing over the next three decades, driven by demand from the industrial and electric power sectors. Beyond 2020, production is likely to grow faster than consumption, according to the EIA’s Annual Energy Outlook 2018, with excess volumes to be exported to Mexico or sold on global LNG markets.

To meet tomorrow’s market needs, Siemens has adapted the electrical and mechanical design of the Sinamics frequency converters, giving the units a smaller footprint and up to 60% lower width. The new Sinamics S120 Chassis-2 and Sinamics S120 Cabinet Modules-2, according to Siemens, address changing requirements in the field of high-performance drives.

Oil major Total today announced it will buy the majority stake (74.33%) in the French utility Direct Energie for €1.4 billion (US$1.73 billion). Total CEO Patrick Pouyanné said the deal “is part of the group’s strategy to expand along the entire gas-electricity value chain and to develop low-carbon energies.”

Synthetic fuels like hydrogen are vital for a successful energy transition, experts at the Berlin Energy Transition Dialogue agreed, calling for a regulatory framework to ensure large-scale development in Europe against competitors in Asia. “China has done solar, has done batteries… it’s over. There’s one thing where it’s not over: that’s hydrogen,” said Thierry Lepercq, executive vice president at ENGIE in charge of Research & Technology.

Eni, the Italian state-owned oil and gas producer, has set out the timeline for sanctioning its LNG project in Mozambique. Final investment decision (FID) on the Coral FLNG project is set to be made in 2019, or 2020, with Eni targeting first gas from its Mamba discovery in the Rovuma basin for the Coral FLNG plant by 2024. Investors hope supply from the Coral venture could revive South Africa’s subdued gas-based Independent Power Projects (IPPs).

Regulators in New Jersey have been approached by Diamond Generating Corp., a Mitsubishi subsidiary, with a proposal to build a 1,200 MW combined-cycle gas power plant in New Jersey and submarine cable that would connect to a substation in Manhattan. Diamond Generating said it is prepared to spend US$ 1.5 billion on the project which would eliminate the need for a new gas pipeline under the Hudson River.

Swiss technology group ABB has launched a single-phase device for Uninteruptible Power Supply (UPS), aimed at applications up to 30 kW. The new PowerValue 11T G2 employs ABB’s double conversion technology: incoming AC is first converted to DC, from which the output AC is then synthesized – giving a clean sinusoid.

Works to build the EU-funded H2FUTURE project, an EU-funded 6MW pilot plant, have kicked off in the Austrian town of Linz. The project consortium – Voestalpine, Siemens and the Austrian utility VERBUND – has now officially given the go-ahead for works on the world's largest pilot plant for the production of "green" hydrogen. The plant will be fully operational by spring 2019.

GE Power Services’ largest deal in Latin America, valued at more than $300 million, will see the US manufacturer improve maintenance inspections for gas turbine equipments in 11 Petrobras-owned power plants in Brazil. The fleet covered under the deal represents about 80% of Petrobras’ total installed capacity and generates 4.3 gigawatts (GW) of electricity.

News in Brief

Finning offers new Cat engine

June 20 – The new Cat C9.3B industrial engine, compliant with EU Stage V emissions standards, is now available from Finning UK and Ireland. The six cylinder, 9.3 litre engine builds on capabilities of previous Cat models that have logged more than 200 million operating hours.

GE risks €35m fine in France

June 19 – French government officials said GE will have to pay penalties if it fails to realise its pledge to create 1,000 jobs in France by the end of this year. GE made the promise in 2014 as part of the €12.4 billion takeover of Alstom’s power generation and grid business. "The contract called for a 50,000 euro penalty for every job not created," France’s labour minister Muriel Penicaud told BFM television.

MAN to deliver engines to Oman LNG

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.

CHP market to top $27bn by 2023

June 15 – Global market for combined heat and power is estimated to grow at an annual rate of 5.48% to reach $20.69 billion in 2018 and $27.01 billion by 2023. According to Markets and Markets, the main growth drivers are demand for energy efficiency and government incentives and programs to promote CHP.

Enel starts battery storage in the UK

June 14 – Enel Group’s first utility-scale, stand-alone battery energy storage - the 25 MW/12.5 MWh Tynemouth project - is about to start operations, supported by a four-year contract with British System Operator National Grid to provide grid-balancing services. Enel bought the storage venture from Element Power in May 2017, and invested about 20 million Euros in the overall project, including construction.

New Mach Gen files for bankruptcy

June 13 – U.S. power generator New Mach Gen has filed for bankruptcy, presenting a pre-packaged reorganisation plan. New Mach Gen operates three gas-fired power plants with a combined capacity of 2,500 MW in Athens, NY, Maricopa County, Arizona and Charlton, Massachusetts.

Siemens, Covestro partner on digitalization

June 12 – Siemens and Covestro Deutschland have agreed a Joint Business Development Plan that reinforces their longstanding, trust-based partnership in the field of digitalization. Siemens is developing predictive process data models for manufacturing through the use of its cloud-based IoT operating system, MindSphere, while Covestro will introduce its process technology and production expertise to generate joint marketing solutions.

U.S. hurricane season underway

June 11 – With June 1 marking the official start of the 2018 hurricane season in the United States, Dominion Energy has urged customers to prepare and emergency storm kit. The Virginia-based utility is continuing day-to-day preparations for a busy storm season.

EIA broadens energy survey

June 8 – For electricity, the number of end-uses estimated in the EIA’s Residential Energy Consumption Survey (RECS) has expanded from 4 to 26 by adding estimates for various types of equipment. Itemized estimates collectively cover 87% of residential electricity use.

Cost-effective transition towards CHP

June 7 – COGEN Europe, an industry lobby group, has underlined the sector’s commitment to a “cost-effective transition towards a sustainable future in Europe” by means of utilizing combined heat and power generation. CHP provides flexibility across heat, electricity and gas networks and sectors by relying on short, medium and long-term storage to balance energy supply and demand.

Europe’s largest battery operational

June 6 – With a capacity of 48 MW/50 MWh, Europe’s largest battery EnspireME has been in operation since the beginning of this month. Located in Jardelund, northern Germany, the battery will be used as a backup by the local grid operator and participate in the weekly auction of primary reserve capacity. It was built by the Dutch utility Eneco and Japan's Mitsubishi in eight months.

BlueVault powers offshore operations

June 5 – Siemens is applying its electrification experience in the marine industry to offshore oil and gas, focussing on reducing emissions and risk in harsh operational environments. BlueVault, Siemens’ advanced lithium-ion battery-based solution, is suited for both all-electric and hybrid energy-storage applications.

Duke Energy opens new CCGT unit at Lee Station

June 4 – U.S. utility Duke Energy has been continuously operating its new 750 MW combined-cycle gas power unit at the W.S. Lee Station in Anderson County, South Carolina, since the beginning of June. Construction of the $700 million gas power unit started in March 2015, creating more than 600 construction jobs. Now fully operational, the CCGT is expected to generate about $4.4 million in tax revenue for Anderson County in 2019.

Reliability risk in California, Texas

June 1 – California and Texas are two potential tight spots for reliability of electricity this summer, even as most regions seem prepared to meet peak summer demand, the US Federal Energy Regulatory Commission (FERC) notes. In its 2018 energy market and reliability assessment, the regulator predicts warmer than average temperatures which could stir record high gas-burn for power generation.

Siemens to roll-out energy monitoring system at Rexel

May 31 – Electrical wholesaler Rexel Austria has placed an order with Siemens to deliver a cloud-based energy monitoring system which is meant to achieve a 15% reduction in energy use at its logistics center in Weisskirchen. Siemens’ cope of supply includes 66 communication-capable 7KM PAC 1500 and 7KM PAC 4200 power measuring devices, powermanager energy monitoring software, and connection to its cloud-based operating system MindSphere.

MHI calls off tie-up with JTEKT

May 30 – Mitsubishi Heavy Industries (MHI) has discontinued talks to form a business partnership with JTEKT Corp after both parties terminated a basic partnership, agreed in December 2017 together with Mitsubishi Heavy Industries Machine Tool (MAT) that included capital participation in JTEKT. All these plans have now been abandoned.

Sembcorp hires Contact Energy CFO

May 29 – Singapore-based Sembcorp has hired Contact Energy CFO Graham Cockroft to be its new CFO as of September 3, 2018. Sembcorp’s current CFO, Koh Chiap Khiong has moved on to head of the group’s utilities business in Singapore, Southeast Asia and China.