Daily News

Spanish regulator CNMC has proposed to cut gas grid access fees for gas-fired power plants by 6.7%. According to traders, this could put pressure on wholesale power prices.

TC Energy Corp, formerly Trans Canada, has entered into an agreement through its wholly-owned subsidiary, TransCanada Energy, to sell interests in three Ontario natural gas-fired power plants for about C$2.97 billion.

India, home to the world's sixth largest solar PV capacity, needs backup to mitigate intermittency risks. Over $200 billion would have to be spent on energy storage, considering the IEA's Technology Roadmap ‘breakthrough scenario’ where capital costs for storage are assumed to be $1 200/kW and $30/kWh in 2050.

The Mozambican government has approved a 30-year concession for Beluluane Gas Company to build, own and operate the 2,000 MW Beluluane gas power near the capital of Maputo. The developer is also required to build a feeder pipeline to supply the power plant with regasified LNG form Mantola Port.

National Iranian Gas Transmission Company (NIGTC) claims its engineers have gained the necessary know-how to repair Siemens gas turbines. NIGTC chief executive Saeid Tavakoli said the company carried out overhauls of SGT600 turbines by solely relying on domestic contractors.

Siemens CEO Joe Kaeser has warned about a “significantly weaker” environment hitting profits in the company's key business units Digital Industries and Gas and Power. “Geopolitics and geoeconomics are harming an otherwise positive investment sentiment,” he said, stressing Siemens is still getting more orders that it executes.

Royal Dutch Shell has seen second quarter profits plummet 25% to $3.6 billion – way short of analysts’ forecast of $4.93 billion. Shell CEO Ben van Beurden blamed lower oil and gas prices and pointed out the company’s “good cash flow performance” not least due to the start-up of Prelude FLNG.

U.S. technology innovator Tesla has launched a huge battery, called Megapack, claiming it would be more cost-effective and faster to install than any fossil-fuelled power plant. The pilot utility-scale Megapack battery will be installed on behalf of the Pacific Gas and Electric Company (PG&E) for the Moss Landing project in California.

The European Investment Bank (EIB) is taking steps to stop funding new fossil fuel-reliant energy projects by the end of 2020. A draft of the EIB’s new leaning strategy states the bank will no longer support upstream oil and gas, coal mining and power generation from fossil fuel sources.

TC Energy, formerly known as TransCanada, has agreed to divest three gas-fired power stations in Ontario for around C$2.87 billion (US$2.18bn) to Ontario Power Generation (OPG). The proceeds will be used to pay for construction of the Coastal GasLink Pipeline that will deliver feedgas to the LNG Canada project in Kitimat, B.C.

Retirements of coal-fired power plants by U.S. utilities over fuel economics or environmental reasons is expected to reduce the country’s overall coal generating capacity by nearly 120 gigawatts (GW) by 2025. Several retired plants are getting repowered with combined-cycle turbine technology, as utilities shift to cheaper and cleaner burning natural gas.

Engas, the Spanish gas network operator, has reported record gas deliveries to the electricity sector. July demand grew by 45% compared to the same month last year due to a sharp rise in gas-burn compared to coal amid high temperatures and low hydroelectricity production.

Silent-Power Project, a Swiss technology start-up, is producing of CO2-neutral electricity from methanol. CEO Urs Weidmann told Gas to Power Journal the company aims to achieve an annual production of 1 million liters of carbon neutral methanol with its first synthesis plant by 2020.

Iain Conn, the Centrica CEO, has decided to step down 2020 after posting a statuary operation loss of £446 million, mainly due to the UK energy price cap. The departing CEO also announced Centrica will stop producing oil and gas to focus on customer-facing business such as supplying electricity and energy services.

International Finance Corp (IFC), part of the World Bank, has made a $2 million cost-sharing commitment to South Africa’s Transnet to develop a floating storage and regasification unit (FSRU) at the Port of Richards Bay by 2024. The aim is import LNG to fuel independent power projects.

News in Brief

Tohoku Electric tenders for LNG cargo

Aug 19 – Tohoku Electric Power, the fourth-largest electric utility in Japan in terms of revenue behind Tepco, Kepco and Chubu, is understood to be seeking an LNG cargo for delivery in September. A tender process is ongoing.

Cost for decarbonizing industry tops $21tr

Aug 16 – Total costs to fully decarbonize the four most polluting industries – cement, steel, ammonia and ethylene – are estimated to amount to $21 trillion between today and 2050. McKinsey said this could be lowered to about $11 trillion if zero-carbon electricity prices come down further compared to fossil fuel prices. In this event, industry could switch to using electricity for heating processes.

Co-firing Braskem plant with hydrogen

Aug 15 – Siemens is making fossil energy greener at the Braskem onsite power plant in Brazil. In this modernization project two SGT-600 gas turbines are co-fired up to 60% with hydrogen, enhancing efficiency for the production process of the adjacent the petrochemical complex.

Canada's CO2 tax to hit CCGTs

Aug 5 – Change in Canada’s carbon emissions tax regulation for new power plants has changed to also affect cleaner-burning, gas combined-cycle power stations starting from 2021. The move could significantly lower the profitability of gas generation and could prompt SaskPower reconsider its planned Moose Jaw gas power station.

GE CFO steps down

Aug 2 – Jamie S. Miller, General Electric’s chief financial officer, has decided to quit after two years in the job and 11 years with the company. Having overseen GE’s fiscal activities during a period of intense restructuring, Miller will remain in office while the GE board is looking for a successor.

Siemens HR boss quits

Aug 1 – Janina Kugel, Siemens chief HR officer, is leaving the company amid an apparently scattered working relationship and stark personal differences with CEO Joe Kaeser. Her contract will expire by mutual agreement on January 31, 2020.

ABB standardizes eBus chargers

July 31 – Zurich-based ABB, a member of the ASSURED consortium, is working on standardizing the specifications for automatic charging of heavy vehicles. The aim is to drive down the total cost of ownership for electric fleet operators, helping increase adoption of eBuses and eTrucks. Conformance and interoperability tests will be carried out in Q4-2019.

U.S. Senate helps fund EV charging stations

July 30 – The need for expanded electric vehicle charging infrastructure is greater than expected given that there had been over 1.75 million electric vehicles (EV) in North America at the end of 2018, a nearly 60% increase from the previous year. To help fund additional charging stations, among other things, the U.S. Senate approved the $287 billion America’s Transportation Infrastructure Act (ATIA).

PNOC, Lloyds to develop merchant LNG-to-Power projects

July 29 – Philippine National Oil Co. (PNOC) has signed a Memorandum of Understanding (MoU) with Lloyds Energy to develop a 1,200 MW LNG-fuelled power plant in partnership with Mitsubishi. Dubai-based Lloyds Energy is looking at ways to develop integrated LNG import facilities and gas power plants on a merchant basis in Bataan and Batangas provinces.

Macquarie finances CCGT in Mexico

July 26 – Macquarie Capital has chosen Credit Agricole, Natixis and SMBC to co-finance a $380 million combined-cycle gas power plant. The 560 MW plant is designated to be built in San Louis Potosi, a city in central Mexico.

Naturgy cashes in on gas network

July 25 – Spanish gas utility Naturgy has posted a 7% rise in core earnings for the first half of the year due to strong gains from its gas network business that helped offset falling revenues from power generation and slimmer LNG margins.

French court rejects appeal against Total CCGT

July 24 – Judges at an appeal court in Nantes have thrown out an appeal by environmentalist against Total’s planned Landivisiau combined-cycle gas power plant in Brittany. The 440 MW project, initiated by Direct Energy which was since acquired by Total, is over two years behind schedule. The French grid operator RTE has singled out the Landivisiau CCGT as “critical” in guaranteeing supply security in winter 2020/21 due to the planned shutdown of four coal power plants.

U.S. gas production falls in wake of ‘Barry’

July 23 – Shut-ins related to Hurricane Barry have scaled back U.S. gas production by 1.6 billion cubic feet per day, compared to last week, while power sector gas demand rose by just over 2.0 bcf/d. Consequently, there is significantly less gas available for storage so the injection rate has halved, according to Energy Aspects figures.

Blackout after fire at Madison substation

July 22 – Electricity is gradually being restored at Madison, Wisconsin, after 13,000 people experience a blackout following an explosion at a substation near Madison Gas & Electric’s 100 MW gas-fired Blount Generating Station. No injuries were reported.

Fuel switch could abate 1.2bn tons of CO2

July 19 – Some 1.2 billion tonnes of CO2 could be abated by switching to gas using existing infrastructure, if prices and regulation are supportive. According to the International Energy Agency (IEA), this would be enough to bring global CO2 emissions back down to where they were in 2013.

IEA launches methane tracker

July 18 – A new ‘methane tracker’, launched by the International Energy Agency (IEA), provides up-to-date estimates of current oil and gas methane emissions by drawing on the best available data. Analysts stressed methane emissions could be reduced by nearly half at no net cost.

Canada’s CO2 tax also affects gas power

July 17 – Change in Canada’s carbon tax regulation for new power plants has changed to also affect cleaner-burning, gas combined-cycle power stations starting from 2021. The move could cause SaskPower to reconsider its planned upcoming Moose Jaw gas power station.