Daily News

National Grid projections show that growing use of electric vehicles in the UK could increase peak power demand by 3.5 GW by 2030 and 18 GW by 2050. Today, UK peak power demand is approximately 60 GW. Under the “Consumer Power Scenario,” National Grid anticipates electric vehicle (EV) sales to account for more than 90% of all cars by 2050.

Demand from the industrial sector becomes the main engine of gas consumption growth, replacing power generation, where gas is being squeezed by growing renewables and competition from coal, the International Energy Agency (IEA) says in its latest five-year forecast Gas 2017. Global gas demand is forecast to rise from 3,630 bcm today to nearly 4,000 billion cubic meters (bcm) by 2022.

The Finish technology group Wärtsilä will take full operations and maintenance responsibility for Pampa Energia's installation Central Térmica Parque Pilar located in the Buenos Aires province, Argentina. Under the 10-year operation and maintenance (O&M), Wärtsilä will ensure reliable output from the 100 MW power plant and service its six 50DF multi-fuel engines.

Suspension of the ambitious Kemper integrated gasification combined cycle (IGCC) has amplified concerns over the prospects of this technology, but IEA chief economist Lazlo Varro points out that “more promising developments of projects using IGCCs can be found in Japan.” The Osaki CoolGen project, in his view, has taken a “more measured approach to scaling-up IGCC deployment,” commissioning a 166 MW oxygen-blown IGCC plant in March.

GE’s second HA gas turbine order win in Mexico will see the American OEM provide equipment, services and digital solutions for the Tierra Mojada CCGT in Guadalajara, Mexico. Fisterra Energy, majority-owned by Blackstone Group, will be responsible for bringing power to the grid by December 2019 and selling it onto the new wholesale electricity market, created by Mexico’s Energy Reform.

Mitsui, and its Japanese consortium partners, are making progress in developing and building two Independent Power Projects (IPP) in Oman, Sohar III and Ibri, with a combined capacity of 3,219 MW. According to Oman Power and Water Procurement Company (OPWP), the future plant operator, the gas-fuelled Ibri IPP is due to start up in April 2018.

Spurred by the global expansion in LNG supply and trade, the growth of natural gas supply in absolute terms will outperform that of all other energy sources, notably coal and oil, CEDIGAZ said in its latest Medium and Long Term Natural Gas Outlook 2017. According to projections made by the Paris-based energy consultants, the share of gas in the world primary energy supply will rise from 21.2% in 2014 to 23.9% in 2035.

Aspiring to fully digitalize its infrastructure, Singapore is piloting 'MindSphere' – Siemens' open, cloud-based operating system for the Internet of Things (IoT). To that end, the German OEM inaugurated a digitalization hub in the city state, supported by the Singapore Economic Development Board (EDB), were it will develop IoT and Industry 4.0 solutions in collaboration with customers in Southeast Asia.

Supply-side overhang has made the energy component of the Standard and Poor’s Goldman Sachs Commodity Index (GSCI) shed 11% during the first half of 2017 – the largest drop in the index. Metals, lifestock and agriculture, by contrast, had higher end-of-June prices than those at the start of the year.

"General Electric’s LM6000 gas turbine has long been the sales champion of the GE aeroderivative fleet, but the LMS100 is now giving it a run for its money," independent consultant Mark Axford told Gas to Power Journal. The LMS100 beat the LM6000 in total orders for the first time in 2015. This included two installations on behalf of Exelon Medway in Massachusetts, five for Arizona Public Service, five for NRG Energy and four for LNG Canada in British Columbia.

Decarbonising heat is cheaper than tackling emissions in many other sectors, according to the Energy Technologies Institute (ETI) who calls on policy makers to adopt an “integrated systems approach” across Britain to show how low carbon heat provision delivers consumer-value. According to ETI chief engineer, Andrew Haslett, “the challenge is one of replacing natural gas-based heating in its present form, possibly by allowing consumers to buy low carbon heating packages.”

Finish technology group Wärtsilä has been contracted by two Iranian energy firms, Baran Niroo Beshel and Tamin Niroo Saam, to provide engineering and equipment deliveries for two baseload power plants. The gensets are expected to be delivered during the third quarter of 2017, the manufacturer said, stressing that once operational, the plants will be Iran’s “first decentralised power plants of its kind.”

Acute fuel shortages have halted the operation of eight new-built power stations in Nigeria with a combined capacity of 4,201 MW. All affected plants had been built under the National Integrated Power Project (NIPP) set up by the former President Goodluck Jonathan. At 6 am on Sunday, the actual power output supplied to the grid by the eight fuel-constaint plants was just 2,979.90 MW – less than two third of their installed capacity.

Seoul-based power utility GS Electric Power and Services (GS EPS), part of GS Group, has inaugurated unit 4 for its LNG-fuelled Dangjin combined-cycle gas turbine (CCGT) power plant. Huh Chang-soo, chairman of GS Group dropped hints at the inauguration ceremony that GS EPS is taking steps to directly import spot cargoes of US LNG through the Boryeong regas terminal as it is seeking to “increase the price competitiveness of its power supply.”

Arizona-based Tuscon Electric Power (TEP) has issued a request for proposals (RFP) in search for a contractor to design and build a power station that will house 10 reciprocating internal combustion engines with 200 MW combined capacity. TEP plans to bring half of the units online by mid-2019, and the remaining by mid-2021.

News in Brief

ABB delivers power solution for Shanghai Stock Exchange

July 21 – Swiss-based ABB has signed a contract to provide more than 1,500 units of MNS low-voltage switchgear for the Shanghai Stock Exchange (SSE) before the end of the year. Dubbed the Jinqiao Technology Center project the MNS switchgear deployment is meant to support the safe, efficient and reliable operation of the stock exchanges’ data center. SSE is ranked #4 in the Shanghai market, and is ranked #26 in China.

TNB extends acquisition period for 51% stake in SPG

July 20 – Malaysia’s state utility Tenaga Nasional Bhd (TNB) has granted SIPP Energy an further 30 days to fulfil conditions set out in the May 3 acquisition agreement when TNB bought a 51% stake in SIPP Energy’s Johor-based unit SPG for RM51. Set up as a special purpose vehicle in august 2016, SPG was given regulatory approval last September to build a 2x720MW combined-cycle gas power plant in Pasir Gudang, Johor. The CCGT is scheduled to start full commercial operation at the start of July 2020.

TVA’s new plant produces 1 GW in first three months

July 19 – Tennessee Valley Authority’s (TVA) new combined cycle gas power plant in Muhlenberg County has produced over 1,025 MW of electricity in its first three months of operation. The cost of the project is estimated at about $850 million, but TVA senior vice president Bob Deacy underlined the new CCGT will give the operator the option of fuel switching to optimise its coal- and gas-burn which will ultimately save money. 

Toshiba opens hydrogen application centre in Tokyo

July 18 – Toshiba has opened a new hydrogen application centre at its Fuchu complex in western Tokyo. Research at the centre focuses the company’s new H2Onesolution for hydrogen supply system business for fuel-cell vehicles, or fuel-cell forklifts within buildings.  According to project manager Hiroyuki Ota, “This center showcases totally CO2-free operation, from hydrogen production through to application.”

Opening of Rhode Island plant delayed unit 2020

July 17 – Chicago-based Invenergy has delayed the start-up of its proposed natural gas-fired power plant in Rhode Island until “at least 2020,” citing “delays in permitting. The Chicago-based company had previously agreed to start selling power to the regional grid in 2019.

China’s energy efficiency sector tops $13bn in revenue

June 14 – The International Energy Agency (IEA) is supporting association member states in implementing energy efficiency measures. In China, government policy created a whole new sector for low-energy solutions, retrofits and services. This niche sector got started less than 20 years ago but already employs over 600,000 people and has annual revenues of over $13 billion.

Centrica starts building 50 MW unit

July 13 – UK energy supplier Centrica has announced that construction works are getting underway this week on its new 50 MW back-up power unit at Peterborough power station. The new gas-fired ‘peaking’ plant will be driven by five Wartsila-built reciprocating gas engines. The plant operator will dispatch the fast-ramp unit mostly on weekdays to cater periods of peak power demand or to provide back-up electricity when requested by the National Grid.

Siemens sues Technopromexport

July 12 – Siemens has filed a lawsuit against the Russian state firm Technopromexport on Tuesday after two gas turbines it sold for use in Russia have been diverted to Crimea, a region subject to EU sanctions. Siemens said its Russian customer had acted in bad faith, after Reuters disclosed Technopromexport had moved the turbines to Crimea where ZAO Interautomatika, a firm part-owned by Siemens, had been hired to install them.

GE Power on the road in the Middle East

July 11 – Holding a series of road-shows in Dubai UAE, Muscat, Oman and Islamabad, Pakistan in the coming weeks, GE Power is demonstrate its digital industrial solutions and HA technology. The events will also over GE’s 9E and 13E2 gas turbines, as well as mobile solutions such as the TM2500 aeroderivative gas turbine genset.

Pakistan’s PM inaugurates 760-MW unit of Haveli CCGT

July 10 – The Prime Minister of Pakistan, Nawaz Sharif has inaugurated the first unit of the Haveli Bahadur Shah gas power plant in Jhang province on late Friday. The 670-MW unit is running on regasified LNG. Once all units are fully operational, the combined-cycle gas power station will have a total generating capacity of 1,230 MW.

Siemens partners with China on digitalization

July 7 – Siemens has entered into agreements with the Chinese government and Chinese enterprises to continue joint activities for exploring the potential of digitalization and for supporting measures to upgrade and transform China’s industrial sector. The documents were signed today in Berlin this week in the presence of German Chancellor Angela Merkel and Chinese President Xi Jinping.

Gas-burn continues to rise

July 6 - Consumption of natural gas has risen in 9 of the past 10 years, according to EIA figures. As recently as 2006, the United States consumed more coal than natural gas (in energy-equivalent terms), but as gas use has increased—particularly in the electric power sector, where gas-burn in 2016 was about twice that of coal.

 

Tepco to bid on Oz power plant tender

July 5 – South Australia energy plan, as set out in mid-March, stipulates running a tender to build a gas-fired power plant with adjacent battery energy storage. The federal state government plans to invest $360 million in new generating capacity and it now emerges that policymakers look favourably on the power plant site and project proposal of Tepko.

Orascom carries out EPC for $100m power project in Egypt

June 4 – Orascom Construction has secured a $100 million contract to build a power plant with a projected capacity of 650 MW in Walideya, Egypt. The scope of Orascom’s contract includes the full civil works package for the project. The contractor stated that the project’s proximity to an existing power station in Assuit is expected to “facilitate efficient mobilisation on the site.”

Ingersoll-Rand buys MB Air Systems

July 3 – Ingersoll-Rand announced today it has completed the acquisition of MB Air Systems Ltd. The transaction closed on June 30, 2017.

Mouchel rebrands to WSP

July 3 – Mouchel, an engineering services consultancy, has changed its name to WSP across all offices in the UK following the integration of the two businesses. Since January all employees have been working under a new structure across Britain, headed by UK CEO Mark Naysmith.

Fisterra Energy ready for $600m power project in Guadalajara

June 30 – Fisterra Energy, majority-owned by Blackstone, is forging ahead with its Tierra Mojada combined-cycle gas turbine (CCGT) power project in Guadalajara, Mexico, after having reached financial close. The greenfield project was financed with $600 million of construction facilities and letters of credit by six banks. Construction on the 875-MW greenfield project is due to be finalized by the end of 2019.
Once operational, the gas power plant will powered by a GE H-class turbine, and most of its electricity output will be sold under 20-year Power Purchase Agreement (PPA) to Comisión Federal de Electricidad (CEF), Mexico’s national utility.