Daily News

Promising new shale gas prospects of a “substantial size” have been identified by China National Administration of Coal Geology (CNACG) both in Hubei and in Guizhou Province. CNACG will now develop the prospects, seeking to efficiently tap domestic unconventional reserves for the fast-growing Chinese gas market.

Global gas demand is on the rise, erasing talk of a glut as China emerges as a giant consumer. Already the world's biggest oil and coal importer, China will also become the largest buyer of natural gas with net imports approaching the level of the European Union by 2040, according to International Energy Agency (IEA) estimates.

Taiwan Power Company has awarded a full-turnkey order to Mitsubishi Hitachi Power System (MHPS) to refurbish and upgrade its Nanpu and Datan gas-fired power plants. The contract stipulates low-NOx enhancements of seven M501F gas turbines, and the roll-out of the digital service MHPS-TOMONI. Works are due to be completed in August 2019.

MAN Energy Solutions has been contracted to supply an LNG regasification terminal to Forchem in Rauma, Finland. The chemical company wants to convert the boiler for generating steam for the refinery process to natural gas, or bio-gas, and asked MAN to deliver a tailor-made solution with an offloading skid for LNG trailors.

Closure of the large Rough storage has left the UK in a “precarious position” and “vulnerable” to gas supply shortages, Wood Mackenzie finds. Spot LNG cargoes can help cover demand at a short notice – but it would be imprudent to rely on flexible gas imports through the Interconnector, particularly as UK gas demand is bound to increase due to the government’s coal phase-out policy.

Additive manufacturing, or 3D printing, has evolved significantly and today develops turbine components that, in most cases, perform better than their conventionally manufactured counterparts. In the energy field, Siemens is aspiring to qualify 200 components for manufacture via 3D printing by 2025.

An online auction will be held for the sale of an almost complete gas-fired power station that was originally built as an energy-from-waste project at Teeside, in northeast England. The auction will be staged between November 15 and 29, accompanied by a separate private treaty sale process.

Operators in the energy sector are struggling to cope with rising threats to the security of their generating assets. Digitalisation helps ensure a save and stable operating environment to allow for flexible dispatch of power units. Wärtsilä solutions build up an active resistance to cyber threats that guarantees electric utilities a steady return on their assets.

Germany-based RWE and Tokyo Gas, one of the world’s largest LNG buyers, have partnered on gas sourcing, trading and shipping. The two players agreed a framework for reducing costs through optimized shipping of US LNG, procured by Tokyo Gas.

Dynamics of the global energy transition are driven by the speed of electrification and the competition between flexible gas power plants and renewables plus energy storage. Margins in the downstream power market are becoming more attractive, as price discrimination allows for better value capture downstream than in the generation business.

Construction works have started for SEE’s new 850-MW Keadby-2 combined-cycle gas power plant in North Lincolnshire. The £350 million project, built by Siemens as a full turnkey solution, will be Britain’s most fuel-efficient CCGT with an efficiency level of 63%.

The Asian Development Bank (ADB) agreed to give a $227.7 million loan to Gulf SRC Company to finance the construction and operation of a 2,500 MW combined-cycle gas power plant in Chonburi Province of Thailand. The technology of the CCGT is meant to achieve over 63% thermal efficiency.

Flexible gas power plants will have to fill the capacity gap after Toshiba abandoned its £15 billion Moorside nuclear power venture in Cumbria, and will start to wind up NuGen in January. Moorside could have covered 7% of the UK’s electricity needs by 2025 – a share that now needs to be filled by fossil fuels, notably natural gas.

Chevron’s gas aggregation company in Nigeria has agreed to extend gas deliveries to Egbin Power. Under the deal, Chevron will supply 145 million standard cubic feet per day (MMBtu/d) through the Nigerian Gas Company (NGC) to Egbin’s 1,320-MW power plant in Ikorodu. Kola Adesina, chairman of Egbin Power, said the additional gas supply should help boost Ikorodu's capacity to 5,000 MW over the coming five years. 

Austria’s OMV is close to obtaining a stake in the development of Urengoyskoye, one of the world’s largest fields at the time of discovery in Russia’s Yamal region near the Arctic Kara Sea. A draft contract has been discussed by Gazprom chairman Alexey Miller and his counterpart at OMV, Rainer Seele that will see the Austrian utility participate in Urengoyskoye’s Blocks 4A and 5A.

News in Brief

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.

IEA and China collaborate on energy efficiency

Oct 24 –The International Energy Agency (IEA) and China’s National Development and Reform Commission (NDRC) have agreed to work together on energy efficiency. The IEA acknowledged China has made strong progress on energy efficiency in recent years, and led energy intensity improvements globally.

ABB relays help protect Brussels power grid

Oct 23 – Sibelga, the distribution system operator (DSO) of the Brussels metropolitan area, implements ABB’s Relion 615 series relays to ensure a protected power supply for 700,000 citizens. The agreement will see ABB add medium-voltage control relays to remote terminal units (RTUs), most of which will be retrofitted.