Daily News

ExxonMobil has launched a next generation series of gas engine oils to keep up with the latest gas engine developments. The Mobil Pegasus 1100 Series was developed in cooperation with major OEMs to help them cope with severe engine conditions, and extend oil drain intervals. In fact, the Mobil Pegasus family of gas engine oils are now preferred lubricants for all new GE’s Jenbacher Type 2, 3 and 9 gas engines.

Powerphase has closed an initial investment from Energy Impact Partners (EIP), an infrastructure fund that controls over 170 GW of generation capacity in their combined portfolios. EIP’s latest funds come as the first institutional round of capital for Powerphase, which seeks to speed up the global roll-out of its gas turbine products.

Duro Felguera, together with consortium partner Romelectro, has awarded an order to GE to supply core technology for Romgaz’s new combined-cycle gas turbine power unit in Lernut, Romania. With a planned installed capacity of 430 MW, the Lernut project will be Southeastern Europe’s largest gas power project in five years. It is also Romania’s largest public investment in conventional power in 20 years, backed by €268 million funding from Romgaz.

The Caribbean island of Aruba’s main electric utility, WEB Aruba, has awarded a contract to ABB to supply an advanced microgrid in order to help integrate solar and wind energy through production forecasting and real-time optimization of operations.

PennWell Corp. today launches ‘Electrify Europe’, a new event dedicated to the convergence of power generation and transmission which is driven by trends like digitization and decentralization. According to Glenn Ensor, head of PennWell International, it is an “entirely new concept designed to foster information exchange between established and new players for the creation of advanced solutions across an entire electricity value network.” The launch event will be held in Vienna, Austria, in June 2018.

Fuel costs account for up to 80% of a power plant’s operating expenses but Wärtsilä Services Manager Markus Åbrant underlined “the financial rationale is not the only one that speaks for fuel and energy efficiency.” Enhanced operational efficiency, extended lifecycle of the equipment and a more sustainable brand image are, in his view, valid reasons for considering an energy efficiency improvement project.

Decentralized power units for flexible generation of electricity power generation are becoming increasingly important across Europe, explains Dr. Tilman Tütken, regional manager, Europe at MAN Diesel & Turbo's power plant section. "For example, just a few weeks ago, the German Federal Network Agency confirmed additional requirements for a total capacity of approximately 1.2 Gigawatt for southern Germany alone,” he said when opening MAN’s booth at the PowerGen Europe conference in Cologne today.

RWE Generation (RWE) has selected GE’s Power Services to upgrade the plant equipment of its 400-megawatt Great Yarmouth combined-cycle gas power station in Norfolk. As the age and fuel consumption of the plant increases, the retrofit with GE’s Fleet360 total plant solutions will help improve plant efficiency by up to 2% and output by up to 6%.

Wasteful flaring of natural gas is meant to be a thing of the past, yet the wasteful burning of gas at wellhead increased over the past few years – notably in the United States during the rush to tap hydrocarbon-rich shale rock formations. ‘Zero Routine Flaring by 2030’ is the explicit aim of the World Bank-led Global Gas Flaring Reduction (GGFR) initiative – but there is a risk that funding for gas-gathering initiatives runs dry because this goal is losing political traction under the Trump Presidency.

Mitsubishi Hitachi Power Systems (MHPS) and Sumitomo have been selected by Société Tunisienne de l'Electricité et du Gaz (STEG) to develop a 450-MW combined cycle gas turbine power plant in Tunisia. The two companies signed an EPC contract to build the CCGT in the harbour city of Radès, just nine kilometres southeast of the capital Tunis.

As the energy mix across the United States continues to shift towards renewables and gas, the carbon intensity of the overall electric power sector is now lower than that of gas-fired power generation. After averaging near 60kg CO2/MMBtu for decades, the combustion-weighted carbon intensity in the electric power sector fell to 48kg CO2/MMBtu in 2016 – slightly lower than that of natural gas, which produces 53kg CO2/MMBtu.

Benefiting from high demand for gas auxiliary products, Innova Global has won a total of 19 new design, supply and install contracts, worth over $52 million, for several gas-fired power projects throughout North America. One of the latest orders covers the supply and installation of a Selective Catalytic Reduction (SCR) & Catalytic Oxidation (CO) gas-turbine exhaust stack scrubbers for a power plant expansion in the United States.

Pulling the plug on the Kemper County Integrated Gasification Combined Cycle (IGCC) power project, the Mississippi state energy regulator has passed a motion instructing its legal counsel to propose a solution that would end the Mississippi Power’s gasification project following years of delays and cost overruns. The watchdog encouraged Mississippi Power, however, to re-license the plant and produce electricity based on natural gas instead.

UK Power Networks has awarded a contract to Siemens to equip parts of its overhead-line power cables with 600 Fusesaver vacuum circuit-breakers and 200 remote control units (RCU).  The order volume is €1.5 million, and according to Siemens, it is the largest order to date for Fusesavers in Europe and the first one from the U.K.

Though Centrica CEO Ian Conn told the BBC this morning that closure of its 3.4 Bcm Rough gas storage facility will not destabilize Britain’s gas supply – given the possibility to import LNG and source gas from Norway and the EU through several interconnectors – some analysts see it differently. Commenting on Centrica’s move, Wood Mackenzie analyst Graham Freedman said the decision not reopen Rough storage comes as “no surprise” and makes “good commercial sense” for Centrica. However, he believes the implications on the UK's future security of gas supply “will no doubt lead to a UK Government review of its position, particularly in light of current Brexit negotiations.”

News in Brief

GE to build four substations in Egypt

Sept 19 – Egyptian Electricity Transmission Company (EETC) and GE have closed a $250 million contract that will see GE build and install four Gas-Insulated Substations (GIS) across Egypt to connect 7 GW to the country’s national power grid by the end of 2018. The contract is fully financed through Deutsche Bank and HSBC France which helps secure smooth execution of the project.

Irma slashes energy demand in Florida

Sept 18 – Hurricane Irma has proved to be a demand-side event in Florida. At its trough, the state appeared to lose 1.9 bcf/d of demand versus pre-storm levels, mainly in the power sector. According to Energy Aspects figures, electricity demand on September12 dropped to 0.8 bcf/d, compared to a pre-storm baseline of 3.6 bcf/d.

Drax plans to convert two coal units to natural gas

Sept 15 – Drax Group has filed plans to the UK Planning Inspectorate to build a 200MW battery storage unit, and convert up to two coal units at the Drax power station to run on natural gas. If approved, the repowering could result in up to 3.6 GW of new flexible gas generation capacity. The utility stated its investment at Drax is backed by a 15-year capacity contract.

Azura Edo IPP ready to startup in early 2019

Sept 8 – Siemens-built Azura Edo Independent Power Project (IPP) is planned to add 459MW to the Nigerian national power grid by early 2019, Siemens Nigeria CEO Onyeche Tifase said. The Azura Edo IPP is an open-cycle gas turbine power plant project, which could potentially account for up to 20% of Nigeria’s installed capacity of 12.5MW by 2020.

Oman’s oil output hits new record

Sept 7 – Oil production in Oman has reached a new record, totalling 1 million barrel per day (b/d) in 2016. Dependent on revenues from oil and gas exports, Oman’s state finances have been hit by the plunge in oil prices which made 2016 oil and gas revenues plunge 67% compared with 2014 levels.

Petrofarc to build South Stream

Sept 6 – UK contractor Petrofarc won an engineering, procurement and construction (EPC) contract worth 340 million Euros ($404m) by the Gazprom-owned South Stream Transport company to build onshore pipelines and a gas receiving terminal near the Turkish town Kiyikoy.

Gas prices slowly return to normal after Harvey struck

Sept 5 – The price of natural gas and other petroleum products has surged in the aftermath of Hurricane Harvey. Yet as of Monday, key gasoline prices started to return to pre-Hurricane levels as key refineries and pipelines along the US Gulf Coast are resuming operation, easing supply concerns.

ACER to set deadline

Sept 4 – The European energy regulatory authority ACER is consulting until September 15 on an implementation date for harmonized prices in the EU's day-ahead and intraday power markets. Introducing maximum and minimum prices is meant to enhance market coupling.

Pöyry to review Shoaiba-4 plant

Sept 1 – The Saline Water Conversion Company (SWCC) has awarded Pöyry with the owner's engineer services assignment for the Shoaiba-4 desalination plant which will meet the potable water requirements of Saudi Arabia's second largest city and its five million people. Pöyry's scope includes review of contractor's engineering and supervision of construction, erection and commissioning.

Wärtsilä wins 220 MW power plant contract in Bangladesh

Aug 31 – Desh Energy Chandpur Power Company, an independent power producer (IPP) in Bangladesh, has contracted Wärtsilä of Finland to supply twelve 18-cylinder Wärtsilä 50 engines for a new 220 MW baseload power plant to be installed in Chandpur. The customer required a nine-month implementation time, with the plant due to be fully operational in May 2018.

Works start on Hickory Run CCGT

Aug 30 – Tyr Energy has started construction works on the Hickory Run Energy Center in Pennsylvania. The combined-cycle gas power plant has a nominal generating capacity of 1,000 MW.

Canadian Cats dealers merge

Aug 29 – Toromont Industries will acquire the businesses and net operating assets of fellow Canadian Caterpillar dealer Hewitt Group. The deal was agreed in turn for C$917.7 million cash plus the issuance of 2.25 million Toromont shares, the two companies said.

Ansaldo to service Thai cogen plant

Aug 25 – Glow Energy, one of Thailand’s private power producers, has contracted Ansaldo of Italy to service a 328 MW cogeneration plant, located in Map Ta Phut Industrial Park, 200km southeast of Bangkok. Apart from electricity, the plant produces 160 tonnes/hour of steam to support local industries. Ansaldo’s 15-year service deal covers maintenance, replacement capital parts and remote monitoring and diagnostics for the gas turbine.

Low voltage drives for China

Aug 24 – Siemens is to equip several Chinese aluminum factories with medium and low voltage drives. The value of the order is in the low tens of millions Euros. Commissioning will be completed in several stages between November 2018 and April 2019.

Oil price seen rebound toward $60/bbl

Aug 23 – Oil pricing dynamics will increase, through near-term $50-60 range, forecasts Wood Mackenzie principal analyst, Patrick Kirby. For olefins, and polyolefins, this means the global and particularly European view is sensitive to demand, particularly from China, given that the supply landscape is well defined.

GS EPS commissions 900 MW plant in Oman

Aug 22 – South Korea’s GS EPS and GS Holdings have completed the construction of Phase IV, a 900 MW combined-cycle plant in Muskat, Oman. The CCGT has a power efficiency rating of 64% and is run by imported LNG. As an independent associate of Oman Oil Company (OOC), the Korean power producer helped with knowledge transfer and now aims to realise renewable energy projects in Oman.

U.S. demand to eke out growth

Aug 21 – Energy Aspects says the total U.S. power sector is about to “eke out growth”, with balances for the week ending August 18 averaging 34.3 bcf/d, meaning demand was just 0.5 bcf/d higher week-on-week. Although cooler weather is forecast for the Western and Central US over the next 10 day, much warmth is set to emerge in the East, limiting energy demand.