Daily News

China-Australian Maoneng Group has been selected by AGL Energy to install four batteries with a total capacity of 200MW/400MWh in New South Wales by 2023, underpinned by a 15-year offtake agreement. The aim is to ensure stable supply and power prices at times of peak demand.

In its 2019 World Energy Outlook, the International Energy Agency (IEA) is looking beyond 2030 targets of achieving electricity and clean cooking facilities for all. Offshore wind, in particular, will lead sustainable energy production as the sector is forecast to become a $1 trillion industry.

Payouts of about £1 billion under the GB capacity market scheme are due in November. But this is “likely to prove problematic,” analysts warned, as some suppliers may not have been billing large customers – particularly those on “pass-through” contracts – during the EU’s earlier suspension of the scheme.

GE Power has signed a 5-year maintenance contract with the Bangladesh Power Development Board (BPDB). The deal includes procurement of spares and services of the two GE 6F.03 gas turbines installed at the 225 MW combined-cycle gas power plant in the Bhola island district of Bangladesh.

Mitsubishi Heavy Industry (MHI) Group has updated its midterm business plan to focus on decarbonization through hydrogen co-firing, electrification and artificial intelligence. Reacting to lower demand for steam turbines, the group also cut its revenue target of 5,000 yen to 4,700 billion by end of fiscal 2020.

Thailand-based Gulf Energy Development Public Co. has agreed with government of Vietnam to develop an integrated LNG import and power project in Ninh Thuan province. The $8 billion project includes a 6,000 MW combined-cycle gas power station and an adjacent LNG regas terminal.

Just weeks before the UK goes to the polls on 12 December, the government has suspended fracking as analysts found it is not possible to predict the size and frequency of earthquakes caused by this practice. Activity by Cuadrilla had resulted in a 2.9 magnitude tremor at its site in Lancashire in August.

Italgas, Europe’s third largest gas distributor, has contracted Turboden to install 650 kWe gas expanders to increase the efficiency of gas pressure reduction stations at Rome’s main pipeline network. The expanders produce electricity from the pressure differentials between mainline and transmission pipelines.

Only large scale and intelligent energy storage can solve the issue of variable renewable electricity generation. There is little political will for a fresh wave of subsidies for storage – as there was for renewables – hence market observers say a carefully crafted market design is needed to incentivise both flexibility and storage.

Start-up of two liquefaction trains - Cameron LNG Train 1 and Corpus Christi LNG Train 2 - have pushed total U.S. net gas exports to 4.1 billion cubic feet per day (Bcf/d) in the first half of this year, more than double pre-year levels. Apart from LNG, pipeline gas is exported to Canada and Mexico.

Today’s data centers consume about 3% of the total energy generated globally, and INNIO’s new gas generator delivers that electricity in a more reliable way. The fast-start Jenbacher J620 genset can power up to 3 MW in less than 45 seconds.

Royal Dutch Shell has reported a third quarter net income of $4.767 billion and a 15% slump in profits, citing lower sustained lower oil and gas prices and chemicals margins. The oil giant also launched the next $2.75 billion tranche of its share buyback program that totals $25 billion.

Sun-soaked Australia is seen as a future giant producer of hydrogen that could be exported to places like Germany for use in power generation and transport. The German industry is expected to import renewable hydrogen from Down Under in large quantities as early as 2025 to decarbonise their activities.

Gazprom has completed feeding natural gas from the Chayandinskoye field in Yakutia into the Power of Siberia interconnector to China. Once fully operational, the 38 billion cubic meters per year pipeline will deliver Russian gas to CNPC under a 30 year offtake agreement starting from 2023.

Striving to meet China’s hunger for gas, the government in Beijing is stepping up subsidies to boost domestic production and reduce the country’s dependency on imported pipeline gas and LNG. New incentives are set for producing gas from tight formation through to 2023.

News in Brief

Norway’s oil fund starts investing in renewables

Dec 11 – The Norwegian Government Pension Fund Global (GPFG), traditionally heavily exposed to the oil and gas industry, has been permitted to shift its strategy. Acknowledging heavy losses of the world’s largest pension fund, worth an estimated $1 trillion, the government in Oslo has allowed GPFG fund managers to also invest in unlisted infrastructure, notably renewable energy sources and alternative fuels, including hydrogen.

ENGIE invests in wind energy in Italy and France

Dec 10 – France’s largest energy company ENGIE has completed the acquisition of Renvico from Macquarie Infrastructure and Real Assets and KRR. The move contributes to utility’s ambition of boosting its renewable energy assets to 3 GW in Europe and 9 GW worldwide by 2021. The Renvico takeover comprises 329 MW of operating wind farms of which 142 MW in Italy and 187 MW in France. It also includes a 300 MW greenfield portfolio of various fossil power assets.

Dominion issues Scammer Alert

Dec 9 – Dominion Energy Ohio has reminded customers they will begin receiving the next U.S tax credits automatically, beginning in April 2020, in their monthly bills. Customers were warned not to provide banking details to scammers who claim such data is required to receive the federal tax credits.

BOL finances entire 220 MW plant in Nassau

Dec 6 – Bahamas Power and Light (BPL) has agreed to cover the entire costs to build a 220 MW power plant at the Clifton Pier site in Nassau, and transfer the assets to Shell North America. BPL and Shell had agreed to jointly develop a 220 MW power plant plus LNG regas terminal, but the Bahamas state utility later signed a $95 million contract with Wärtsilä to install a 132 MW engine-driven power plant at the same site.

Kepco to operate CCGT in Uruguay

Dec 5 – Kepco KPS has been awarded a contract to operate and maintain the recently commissioned combined cycle gas turbine (CCGT) power plant in Punta del Tigre, Uruguay. Under the O&M contract, Kepco said it expects to earn 17 billion Won in sales every year, for a maximum eight years.

Siemens to create thermal twin for Bajaj Energy plant

Dec 4 – Lalitpur Power Generation Company Ltd (LPGCL), part of Bajaj Group, has contracted Siemens to create a complete twin for its fossil power plant in Uttar Pradesh, India. The thermal twin, powered by thermodynamic analysis and machine learning, allows power plant operators to diagnose performance gaps for every asset in the cycle in real time.

Talks between Gazprom and Naftogaz continue

Dec 3 – Russia’s Gazprom and Naftogaz Ukrainy have continued difficult negotiations about an extension of Russian gas supplies and transit after the current contract expires on December 31, 2019. The two state-run companies are embroiled in a legal dispute that still needs resolving, however, they confirmed talks are underway and focus on the technical aspects of transiting Russian gas to Europe from 2020 onwards.

Asia seen add 400 GW by 2030

Dec 2 – Asian nations are expected to add more than 400 gigawatts (GW) of electrical capacity to the grid over the next decade — equaling about twice the installed capacity of Germany. Much of the new capacity will be renewables, backed up by some 140 GW of dependable gas-fired capacity, according to GE Energy findings. Hence, the U.S. turbine manufacturer decided to invest up to US$60 million to convert its Singapore repair center into a HA engineering and development center.

Total starts up hybrid plant with energy storage

Nov 29 – Total Quadran has started up the largest hybrid power plant combined with energy storage to harness the ample solar power potential of New Caledonia, a French overseas territory. With an installed capacity of 16 MW-peak, the plant also features a 10 MW lithium-ion energy storage system. Combining of hybrid solar PV units and possibly gas-powered generator sets with energy storage balance out supply swings and enhances the reliability of the electricity grid.

Rolls-Royce, AVK partner on standby gensets

Nov 28 – AVK, Britain’s largest supplier of critical power solutions for data centres and the financial sector, has partnered with Rolls-Royce’s MTU brand for standby gensets in UK and Ireland. The deal covers MTU Series 2000 and 4000 diesel systems in a range from 825 to 4,000 kVA. In the past 30 years, AVK has developed into the largest solutions provider in the UK’s critical power market and has to date supplied gensets equipped with MTU engines with a total capacity of more than 3.5 GW.

Golar suffers setback amid restructuring

Nov 27 – Golar LNG, owner of a fleet of 27 vessels, has seen operating revenues plunge 20% to $98.67 million, in the first nine month of this year, while net losses amounted to over $236 million. Bermuda-registered Golar in May 2019 announced plans to spin off its LNG carrier fleet with the aim of becoming a gas project developer. It recently won a contract for the Barcarena power project (605 MW) in northeastern Brazil.

Burckhardt buys remaining share of Arkos

Nov 26 – Burckhardt Compression’s subsidiary in North America has purchased the remaining 60% of Arkos Group. The US has the world’s largest installed base of reciprocating compressors, and the integration of Burckhardt and Arkos Field Services, will turn the company into the only independent one-stop provider for equipment and service in the upstream, midstream and downstream business.

Gazprom’s exports to Austria reach fresh record

Nov 25 – Supplies of Russian gas to Austria and transits to Western Europe have already exceeded record levels set last year. From January 1 through November 21, 2019, Gazprom delivered over 12.7 billion cubic meters of natural gas – 33.5% more than in the same period in 2018. Austria’s OMV imports Russian gas under a long-term contract that was recently extended until 2040.

OGUK responds to Labour Party Manifesto

Nov 21 – The UK North Sea industry association Oil & Gas UK (OGUK) has warned of an investment hiatus in reaction to Labour’s pledge to introduce a windfall tax on oil and gas companies, if it wins the General Election on December 12. Responding to this, OGUK said any increase in tax rates would drive investors away, damage the competitiveness of the UK’s offshore oil and gas industry, and could potentially increase the country’s reliance on imports. OGUK underlined it has put in place a ‘Roadmap 2035 a blueprint for net zero emission’ and is investing in technology to achieve this goal.

France, Germany and UK led on demand-side flexibility

Nov 21 – France, Germany and the UK are leading on demand-side flexibility (DSF) and grid-integration of decentralized energy sources while Sweden, Spain and Portugal are lagging behind the rest of Europe, the consultancy Delta-EE and SmartEN finds. Areas covered by their new DSF monitoring tool include availability and accessibility of demand-side response, and its monetization across the gas value chain.

AI predicts peak in power use

Nov 20 – ABB and Verdigris Technologies have developed machine-learning algorithms to predict unplanned peaks in electricity consumption and help avoid them. The Energy Forecasting app will enable users to reduce their electricity bills by reducing peak demand charges.

India’s first UHVDC link commissioned

Nov 19 – GE Grid Solutions has commissioned Pole-3 - the ultra high-voltage direct current (UHVDC) transmission line in India, capable to transmit 4,500 MW of electricity. Once completed the Champa-Kurukshetra UHVDC project will be expanded to transmit 6,000 MW of electricity at 800 kV, serving customers in the areas of Punjab, Haryana, Delhi, Uttar Pradesh.