Daily News

Global ECP contractor Worley, in partnership with the software company Arundo, has launched DataSee as one of the initial products of its wider Data Refinery technology that brings new speed and accuracy to processing engineering diagrams for energy infrastructure projects.

Austria-based INNIO, formerly part of GE Power, has supplied another four Jenbacher J320 gas engines to China Water Industry Group in Guangdong province, bringing the total number of installed engines to 104 units. China Water uses the J320 engines in landfills to generate energy from waste.

Ratings agency Moody’s has raised its forecast for German wholesale power prices by €5, reflecting higher carbon emissions prices. Wholesale power prices are seen to vary in a range of €40-50/MWh through 2022, and will also "become more volatile” as the share of renewables increases.

The European Network of Transmission System Operators for Gas (ENTSOG) has listed 17 renewable Power-to-Gas (P2G) projects to be built by 2025, and 19 such projects by 2032. For the first time, ENTSO’s latest development plan includes P2G and acknowledges them as ‘Projects of Common Interest’.

To test Power-to-Gas systems locally, Fraunhofer ISE installed a modular hydrogen injection system in the local gas distribution network in Freiburg, southwest Germany. Researchers coupled an electrolyzer with 120 kW electric connection power with a small hydrogen unit that is capable of storing 300 kWh of chemical energy.

Hungarian utility Tatabanya Erömu has contracted Wärtsilä to upgrade the automation and UNIC engine control system of utility’s 18 MW grid balancing power plant, running on three 34SG gas engines. The extended maintenance accord includes performance guarantees of 95% plant availability, and the ability to run at 10% load.

Siemens has been contracted to supply the complete electrification for a new paper production line at Palm’s paper mill in Aalen, southwest Germany. The order includes three SGT-800 gas turbines – at the latest 62 MW rating – and a SST-300 steam turbine for the client's new-built cogeneration plant.

The Asian Development Bank (ADB) has granted a $180 million loan to Gulf PD, a joint venture of Gulf Energy Development and Mitsui, to build and operate a combined-cycle gas power plant in Rayong, Thailand. Total development costs for the 2,500 MW power project are estimated at $1.6 billion.

Energy demand in Africa, home to the fastest growing and youngest population on the planet, will be “critical for the world’s energy future, according to the International Energy Agency’s (IEA). In its latest World Energy Outlook (WEO2019), the Paris-based agency urged African leaders to tap the continent’s huge potential from solar, wind and natural gas.

Natural gas production in the United States is going from strength to strength, as is domestic gas use and export. According to Government figures, dry gas output surged 12% to 83.8 Bcf/d in 2018 and is on course to a fresh record this year. Consumption rose 11% over the same period, driven by demand from the power sector.

Germany first major climate law passed Parliament on Friday and is now being debated by the Bundesrat. The federal state council needs to give consent to parts of the reforms, notably tax support of energy-efficient modernisation of buildings, the rise in commuter allowance related to a new national CO2 price on transport emissions, and a cut in VAT tax on train tickets.

Chart Industries has installed and commissioned Europe’s largest LNG fuelling station near the northern German city of Bakum. Using cleaner-burning LNG as a transport fuel will help reduce sector emissions before Germany’s new national emission trading system (ETS) for transport comes into effect in 2021.

SRP, a large community-based utility in greater Phoenix metropolitan area, has decided go ahead with the Sonoran Energy Center – a 250 MW / 1,000 MWh battery project to be built south of Buckeye by 2025. Tapping Arizona’s abundant solar resources, the hybrid project will help SRP meet peak summer demand while saving fuel costs.

Amid growing needs for grid balancing, manufacturers of battery-based energy storages systems are struggling to source enough cobalt, lithium, and nickel. Analysts warn that the current low price for these raw materials defers the expansion of mining activity which could cause a supply crunch by mid-2020.

Siemens has completed an extensive overhaul of the 794 MW Dunamenti combined-cycle power station in Százhalombatta, Hungary, in 51 days – “a short time for such a big project,” according to Vinod Philip, CEO of Siemens Service Power Generation. Works included a rotor exchange of the gas turbine and a control system upgrade to SPPA-T3000.

News in Brief

ExxonMobil enhances turbine oils

Jan 17 – New high performance turbine oils, developed by ExxonMobil Lubricants, are  entering the market which are formulated to prevent build-up of lacquer, varnish and deposits. The oils are designed to protect against thermal and oxidative degradation, one of the root causes of deposit build-up.

Wärtsilä signs O&M deals in the Bahamas

Jan 16 – Following the commissioning of a Wärtsilä-built 132 MW power plant in Bahamas in December, the Finish manufacturer now signed a two-year operation and maintenance (O&M) accord with the plant owner, the Bahamas Power and Light Company (BPL). Wärtsilä will transition, train, and develop the owner’s Bahamian work force and provide key performance guarantees.

China, S'Korea curtail coal to tackle air pollution

Jan 15 – Beijing city government’s aggressive approach to tackling air pollution is working and South Korea’s spring coal-fired curtailments show some success in cutting seasonal emissions. According to Wood Mackenzie, this should benefit LNG, particularly while spot prices remain low.

Sri Lanka at brink of power shortages

Jan 14 – Sri Lanka could face power cuts by March, after plans for a large-scale coal power plant were been cancelled just prior to start of construction, and a tender for a 300 MW diesel plants ended up in court. On the demand side, pressure is building up as the region is moving into the dry season in February and March. Weather warnings say the island is likely to receive lower than average rainfall in the first quarter of 2020.

Caterpillar’s new genset comply with UK & German grid codes

Jan 13 – Caterpillar Inc. has launched a series of new generator sets that comply with the new G99 United Kingdom, VDE-AR-N 4110 German and Belgium C10/C11 grid codes. The following gensets – G3500H, CG132B, CG170, and CG260 (rated from 280-4,500kVA) – have been verified to be able to accommodate different reactive power modes, active power functions, and connection conditions for normal operation or reconnection after mains decoupling.

Transneft launches battery-based power supply for ILI tools

Jan 10 – Transneft Diascan, the largest Russian inspection service provider for pipelines, has developed and put into operation a power supply system for in-line inspection (ILI) tools based on rechargeable batteries. Flaw detectors performing inspections of trunk oil pipelines, gas pipelines and oil product pipelines can now use the energy from rechargeable batteries, which helps save time and reduces the cost of in-line inspection.

Pavilion starts trading LNG out of Madrid

Jan 9 – Singapore-based Pavilion Energy has completed the acquisition of all gas and LNG assets of the Spanish utility Iberdrola. From its new European headquarters in Madrid, Pavilion said has launched 2020 LNG trading operations with supplies focusing on Spain and the UK market.

Gazprom extends gas transits via Belarus until 2021

Jan 8 – Gazprom and Gazprom Transgaz Belarus have sealed additional agreements to extend the contracts for gas supplies to and gas transportation across Belarus until 2021. According to the newly-signed documents, the contractual supply and transit volumes in 2020 will remain at the level of 2019.

EastMed pipeline to take FID by 2022

Jan 7 – Greece, Cyprus and Israel have signed an agreement to build the 1,900-kilometre EastMed pipeline at an estimated cost of 6 billion Euros. The subsea pipeline, spanning over 1,900-kilometres would initially carry 10 Bcm of gas per annum from Israeli and Cypriot waters to Crete and then on to the Greek mainland and into the European gas network via Italy. A final investment decision (FID) is meant to be reached in 2022, given that the pipeline is scheduled for completion by 2025.

U.S. energy-related emissions drop over 2%

Jan 6 – Fewer emissions from coal consumption, combined with lower energy demand, have helped to significantly reduce the overall energy-related carbon emissions in the United States. According to government statistics, energy-related CO2 emissions fell 2.2 percent last year, and the downward trend is forecast to continue into 2020.

Brent crude prices surge

Jan 3 – North Sea Brent crude prices have risen to their highest level since September 2019, up nearly $3 per barrel because of Middle East tensions coupled with improved Chinese economic forecasts. Brent crude futures for March 2020 delivery were last seen trading at 69.21 per barrel the Intercontinental Exchange (ICE). This bullish price sentiment will feed through to oil-indexed natural gas contracts and LNG deliveries, linked to the Japanese crude cocktail (JCC) basket price.

IEA says coal’s fate tied to Asia

Dec 23 – Rapid rise of wind and solar power in many parts of the world has pushed coal-fired power generation into steep decline in most developed countries. "But this is not the end of coal, since demand continues to expand in Asia," analysts at the International Energy Agency commented: "The region’s share of global coal power generation has climbed from just over 20 percent in 1990 to almost 80 percent in 2019, meaning coal’s fate is increasingly tied to decisions made in Asian capitals."

Drop in coal-burn makes Germany edge closer to climate targets

Dec 20 – In 2019, Germany managed to increase its greenhouse gas emissions for the second year in a row, mainly due to a 20 percent drop of coal use for power generation and a growing contribution from renewables. Energy savings and efficiency increases also helped. According to calculations by energy research group AG Energiebilanzen (AGEB), Germany’s primary energy consumption declined by 2.3 percent this year, overall energy use fell more than 2 percent, and energy-related CO2 emissions fell by as much as 7 percent.

Glencore buys Orsted’s lgas business unit

Dec 19 – UK-listed mining company Glencore has agreed to take over a loss-making natural gas business from Orsted, including long-term import capacity at the Gate regas terminal in Rotterdam and five other LNG purchase agreements. “The transaction entails a payment from Orsted to Glencore and will result in a loss that exceeds our current provision related to the LNG activities,” stated Copenhagen-based Orsted without disclosing the value of the transaction.

Carbon-intensive firms may shed over 40% in value

Dec 18 – Energy- and carbon-emissions intensive companies could lose up to 43% of their value if national governments enact more stringent policies to reduce air pollution and tackle climate change. Companies using green energy, in contrast, could gain up to 33% in value, research by the United Nations-backed Principles for Responsible Investment (PRI) finds.

COP25 – a “lost opportunity”

Dec 17 – UN Secretary António Gutierrez has dismissed the outcome of the COP25 climate talks in Madrid as “disappointing” and “lost opportunity“. Some of the world’s largest emitters, including Australia, Brazil, China and Saudi Arabia had joined the U.S. in pushing for accounting loopholes to weaken commitments to reduce emissions in the transport and power generation sector.

Industry produces over 13% of Germany’s electricity

Dec 16 – Decentralized power generation at industrial sites keeps rising in Germany. According to the Federal Statistical Office (Destatis), industry produced 55 Terawatt-hours (TWh) of in 2018, meaning local units of mining and manufacturing generated 12.6 percent of the country's gross electricity output, mostly from gas-fired power units. The use of gas as a fuel for industrial power plants has consequently risen from around 35 percent to almost 50 percent over the last ten years.