Daily News

Privatisation of three electric generation companies (Gencos), built Niger Delta Power Holding Company (NDPHC), has been approved by the Nigerian government. Up for sales are now the 634-MW Calabar, the 1,076-MW Alaoji CCGT, and 506-MW Geregu power plant.

Investing in Indonesia, ABB has just opened a new manufacturing factory for high-voltage switchgear in Tangerang, on the outskirts of Jakarta. According to projections by PLN, Indonesia’s state owned generator and distributor, the country’s electricity demand is growing at 8.5% per annum through to 2025.

Encouraged by a seismic survey of Atlantic coast acreage, Argentina has announced it will auction offshore oil and gas exploration rights near its northeastern sea border next year. The energy ministry hopes the subsalt basin off Brazil continues south which could lead to discovery of attractive conventional fields that help reverse Argentina’s energy deficit.

The Trump administration is adamant about dismantling former President Obama’s signature plan to reduce emissions from power plants. Rather than mandating states to change their energy mix by imposing emission quotas, President Trump is expected to give utilities some guidance on how to operate their power plants more efficiently.

The conversion Sasol’s coal-to-liquids plant in Secunda, South Africa, to a gas-to-liquids facility is one of two large-scale projects that drive the global GTL market. Sasol, an integrated energy and chemicals company, is working on getting its GTL plant started up by 2024, while a delayed GTL project in Uzbekistan is hoped to come online by 2021.

German multinational Siemens the US firm Chromalloy Gas Turbine Corp. will be offering 350 new jobs at a manufacturing plant in Hillsborough county, Florida, Gov. Rick Scott announced. The advanced airfoil JV, set up in May this year, will create turbine blades and vane cast components for use in power generation in the United States. Production is due to start by the end of 2018.

The Finnish energy group Fortum, a shareholder in the Russian regional power company TGC-1, has entered negotiations with Gazprom about a possible closer cooperation in the power sector.

Growth in renewable power generation is forecast to be twice as large as that of natural gas and coal combined. According to projections by the International Energy Agency (IEA), the share of renewables in power generation will rise from 24% last year to exceed 30% by 2022.

Central Térmica Pilar plant is the first of two 100 MW multi-fuel power plants built by Wärtsilä that are coming online this year. Since its inauguration on 31 August, Pampa Energía was able to flawlessly operate the plant, using the entire electricity output for the Pilar Industrial Complex near Buenos Aires.

Rising exports of “abundant US natural gas” is estimated to support up to 452,000 new jobs and give a $73 billion boost to the economy by 2040 – at a “minimal impact on the natural gas prices,” according to a study by the American Petroleum Institute (API). The resource base is now seen as “larger, less expensive and more price responsive,“ API Chief Strategy Officer Marty Durbin commented.

CEOs of the three gas liquefaction and export facilities near Gladstone in Queensland, Australia, have struck a deal with Prime Minister Malcolm Turnbull, promising to fill the expected shortfall and address any additional needs by offering gas on “secure and affordable” to domestic customers.

Finland’s technology group Wärtsilä has reached an agreement to acquire Puregas Solutions for €29 million. The Swedish provider of turnkey biogas upgrading solutions utilises a CApure process to convert raw biogas to biomethane and renewable natural gas.

Siemens has received an order from Pakistan for a power island for the Jhang combined-cycle gas power plant. The LNG-operated plant is being built 250 kilometers southwest of Lahore and will provide a power generating capacity of 1.3 gigawatts.

Ineos Group, the operator of Scotland’s Grangemouth oil refinery, has condemned a decision to ban shale extraction in Scotland saying the government “turned its back on a potential manufacturing and jobs renaissance.” Operations director Tom Pickering warned Scottland will miss out on an estimated 3,100 jobs – and “it will be England that reaps the benefits.”

Integrating North America’s abundant shale gas resources into global markets keeps prices subdued: NBP averaged at $10/mmBtu in 2011-14 and by 2016 lost more than half of its value, hovering around $4.63/mmBtu. According to Societe Generale analysis, natural gas is now in a unique position to help regions transition away from coal- and oil-fuelled power generation.

News in Brief

SimoticsIQ connects MindSphere and open IoT systems

Nov 22 – With Simotics IQ, the new IoT-compatible drive concept from Siemens, the Simotics SD low-voltage motors are fitted with a compact sensor box which captures important operating and condition parameters and transmits them by WiFi to the cloud. The operating data can then be stored and analyzed by the Simotics IQ MindApp on MindSphere.

CT market worth $4.4bn by 2020

Nov 21 – The Coiled Turbine (CT) market, by service, is projected to grow at an annual rate of 6-7% from an estimated value of $3.2 billion in 2015 to around $4.4 billion by 2020. According to MarketsandMarkets analysis, North America accounted for nearly half of the total revenue in 2013, driven by demand in the ultra-deep CT service sector as shale gas drilling activities keeps expanding.

ADB continues to finance TAPI project

Nov 20 – The Asian Development Bank’s (ADB) said it will continue to support the Turkmenistan-Afghanistan-Pakistan-India (TAPI) natural gas pipeline project. The bank’s latest 5-year country partnership with Turkmenistan includes the possibility of financing shareholder equity in the TAPI pipeline company, non-sovereign loans, and credit enhancement.

AsiaPacific drives growth in global GT market

Nov 17– Urbanisation and rapid economic growth in Asia Pacific will dominate market during the forecast period, according to MarketsandMarkets. The global market for gas turbines is expected to grow from an estimated $17.51 billion in 2017 to $20.66 billion by 2022, at a CAGR of 3.36%.

Kepco, Tadmax to build 1.3-MW CCGT in Malaysia

Nov 16 – Malaysia’s listed developer Tadmax Resources, together with South Korea’s state-run utility provider Kepco, are planning to build 1,300-MW  combined-cycle gas turbine (CCGT) some 60km southwest of Kuala Lumpur. The overall project is expected to cost $1 billion. Kepco announced it will invest $50 million to hold a 25% stake, while Tadmax Resources will own the 75% majority share.

Siemens delivers mobile turbines to Afghanistan

Nov 15 – Siemens has signed a Memorandum of Understanding (MoU) with Bayat Power and the Government of Afghanistan to provide SGT-A45 mobile gas turbines for a three-phase energy project. Upon completion, it will provide more than 200-MW of electricity, enough to meet the needs of more than 700,000 Afghan homes and businesses.

Baker Huges to supply 150MW of power gen equipment to Iraq

Nov 14 – Baker Hughes, a GE company (BHGE), has won a contract by PetroChina International Iraq to deliver Frame 6B gas turbine electric generator trains , with a combined output of 150 MW, for production at the onshore Halfaya oilfield in Iraq.

Gazprom gets €700m loan from Unicredit

Nov 13 – Gazprom and Unicredit have signed a five-year loan agreement worth €700 million. The loan will be used by Gazprom for “corporate purposes,” the company said in a statement.

Emerson to retrofit at turbines Engie’s DK6

Nov 10 – Emerson Electric, an American multinational corporation, has won a contract to retrofit controls on two Alstom GT13 turbines at Engie’s DK6 combined-cycle gas power plant (800 MW) in Dunkirk, France. The upgrade is the first time a vendor other than the turbine OEM has been selected to retrofit GT13 combustion turbine controls, Emerson pointed out. The first retrofitted unit is due to be back operational in September 2018, and the second in July 2019.

Rolls-Royce’s trading outlook unchanged

Nov 9 – providing a brief update on its trading outlook, Rolls-Royce CEO Warren East reconfirmed the full year outlook. Looking beyond 2017, he added: “While markets for our Power Systems products continue to improve, we note the ongoing weakness in offshore oil and gas markets for Marine and timing changes to new export orders for Defence Aerospace.”

Public consultation starts for Drax’s coal-to-gas conversion

Nov 9 – Plans by Drax Power to upgrade two units at its 2,000 MW coal- and wood pellet-fired power station to run on natural gas have gone to public consultation. The operator said it also notified the UK planning inspectorate about its intention to build a new natural gas pipeline and a 200-MW battery storage at the site near Selby, North Yorkshire.

ABB to optimize its transformer manufacturing

Nov 8 – Swiss-based ABB has announced a strategic realignment of its global transformer manufacturing, engineering and service divisions. In the United States, ABB will consolidate its power transformers manufacturing footprint by investing in its South Boston and Crystal Springs units and discontinue production at its unit in St. Louis, Missouri, which will continue to focus on engineering and service activities.

Flow-Cal launches on-demand gas measurement software

Nov 7 – Flow-Cal Inc., a Houston-based a developer of measurement data management software, has launched CALCit.Cloud, a an on-demand measurement calculator for natural gas and petroleum liquids. It allows users to perform various spot calculations, including gas volume, plate size, liquid correction factors and speed of sound. The source code of the application is in C computer language, or as a DLL that can be integrated into other applications. 

Russia, Iran sign MoE on gas cooperation

Nov 6 – A number of documents, aimed at fostering Russian-Iranian cooperation in the gas sector, were signed in Tehran over the weekend during the visit of the Russian President Vladimir Putin to Iran. The parties will evaluate prospects in developing Iranian gas fields with subsequent monetization either through liquefaction and export or petrochemical production. Gazprom and National Iranian Oil Company (NIOC) also signed a MoU to work together on the Iran-Pakistan-India gas pipeline project.

MHI to launch new engineering company in 2018

Nov 3 – Mitsubishi Heavy Industries (MHI) will launch a dedicated engineering company on January 1, 2018, to be named Mitsubishi Heavy Industries Engineering, Ltd. The new company, to be formed under an absorption-type split, will take over MHI's engineering businesses relating to chemical plants, transportation systems and environmental technologies. Shigehisa Kobayashi will serve as the new company’s inaugural President and CEO.

AsiaPacific drives growth in global GT market

Nov 2 – Urbanisation and rapid economic growth in Asia Pacific will dominate market during the forecast period, according to MarketsandMarkets. The global market for gas turbines is expected to grow from an estimated $17.51 billion in 2017 to $20.66 billion by 2022, at a CAGR of 3.36%.

Global Power divests Mexico facility for $3.5m

Nov 1 – Global Power Equipment Group has completed the sale of its facility in Mexico and the auction of the remaining production equipment for net proceeds of $3.5 million – about $1.5 million of which will be used to reduce debt. Following the divestment of its Mechanical Solutions segment, Global Power will focus on Electrical Solutions and Services.