Daily News

The German car makers BMW and Porsche have teamed up with Siemens in the ‘FastCharge’ research project, working with Allego and Phoenix Contact E-Mobility, to create super-fast chargers for electric vehicles. The prototype of a charging station with a capacity of up to 450 kW was inaugurated in Jettingen-Scheppach, a small town in southwest Bavaria.

Manila Electric Co. (Meralco) has filed to Energy Regulatory Commission (ERC) of the Philippines, requesting to end interim power supply agreements prior to the next Malampaya gas field maintenance – but the regulator wants utilities to keep producing electricity from condensate. The upcoming October shutdown will affect gas supply to three of Luzon’s major power plants: Santa Rita (1,000 MW), San Lorenzo (500 MW) and Ilijan (1,200 MW).

Andrew Cuomo, the Democratic Governor of New York, has proposed to phase out less efficient gas peaking plants to meet the state’s target of reducing greenhouse gases by 40% by 2030, and achieve zero-carbon electricity supply by 2040. The new rules lower the NOx emission threshold, with more stringent controls set to start in five years’ time.

As Japanese utilities keep restarting shuttered nuclear power units, analysts say the return of cheap nuclear power will displace baseload generation from fossil sources, in particular natural gas. Japan has to import its entire gas demand as LNG, which is more costly than thermal coal, so a rise in nuclear power output is forecast to reduce LNG shipments by up to 10% this year.

The Argentine utility Central Puerto has purchased the 280-MW Brigadier López power plant from state-owned Integración Energética Argentina for an estimated $165 million, effective April 1. The buyer said it aims to boost the installed capacity of the open-cycle gas power unit by adding a 140-MW steam turbine.

Norway’s Golar LNG has started to unload the first commissioning cargo at its Golar Nanook FSRU (floating storage and regas unit) offshore Sergipe, northeastern Brazil. The supply is designated for the Porto de Sergipe-I Power Project, a 1.5GW combined-cycle gas power plant, developed by Golar in a joint venture with Stonepeak Infrastructure Partners.

U.S. major ExxonMobil, together with Qatar Petroleum, has made a gas discovery of 5-8 trillion cubic feet (Tcf) its Glaucus-1 well off Cyprus. The find adds another giant discovery to the East Mediterranean but a lack of subsea pipelines hamper the use of this gas in the local power sector, so Exxon considers teaming up with other majors to monetize the find through a new LNG venture.

Nearly half of the German public wants a nuclear exit to happen before a coal phase-out: 49.5% of respondents of a Verivox survey say closing the last nuclear plant by 2022, and the last coal plant by 2038, is ‘the right order’. But 44.1% of respondents say nuclear closures are ‘wrong’ from a climate perspective.

Boston-based Clean Energy Future has stepped up efforts to raise financing to start construction of the 940-MW Trumbull Energy Center in Lordstown, Ohio, this summer. The aim is to commission the plant in 2020. The project had been held up by a lawsuit with Macquarie, the majority owner of the nearby Lordstown Energy Center.

Electric load at the MISO grid in the Midwest of the United States was pushed to its limits during the recent period of extreme cold weather in late January. According to EIA figure, day-ahead gas spot prices reached $7.42/MMBtu) at Chicago, the main hub in the region, while MISO day-ahead electricity prices surged to $120/MWh.

Enagas, the Spanish gas network and LNG terminal operator, has announced construction of the Trans Adriatic Pipeline (TAP) - part of Europe’s Southern Gas Corridor - is 85% complete. Enagas saw a 1% rise in its 2018 annual profit to 442.6 million Euros amid a 4.5% increase in conventional gas demand.

Pakistan’s Economic Coordination Committee (ECC) has approved the terms of a power purchase agreement (PPA) and a gas supply deal for what will be the fourth LNG-fuelled power project in Punjab province. Built by a Chinese EPC company near the city of Jhang, the start-up of the 1,263 MW plant is being fast-tracked to help avert a regional energy crisis this summer.

From 2025, Clean Energy Fuels Corp. will make Redeem renewable natural gas (RNG), produced organic from waste, available at all of its fueling stations in North America. By transitioning exclusively to RNG, the California-based supplier wants to achieve zero-carbon intensity to outcompete fossil fuels and electric vehicles, which are unlikely to hit that mark unit 2045.

PTT Global Chemical (GC) has signed a 10-year extension to its service agreement with General Electric that will see the latter service six GE 6B and three Frame 5 gas turbines at GC’s Map Ta Phut Industrial Estate power plant in Rayong, Thailand.

ABB’s service team in the United Arab Emirates has installed Ekip UP circuit breakers – low-voltage digital monitoring and control units – in substations run by the Sharjah Electricity & Water Authority (SEWA). The retrofit lowered cost by 50% and dramatically improved the units’ operational flexibility.

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.