Daily News

Swedish-Swiss technology group ABB has completed the first delivery of switch- and control gear for Aruba’s Global Cloud Data Center, situated near Bergamo in northern Italy. To guarantee stable operations of this large modular site – stretching over 200,000m² – ABB used it Relion 615 series switchgear which facilitates uninterrupted power supply.

Centrica, Britain’s largest energy supplier, has commissioned two new Wärtsilä-built gas engine power plants. Hand-over was completed this week. The two plants at Brigg and Peterborough now help balance the stability of the UK power grid and add to Centrica's decentralized energy portfolio that also includes the Roosecote battery storage.

Tender documents have been posted by the Public Gas Corporation of Cyprus (DEFA) in search for a counterparty that will supply and install a floating storage and regasification unit (FSRU) at the port of Vassilikos. The LNG import project comes at a cost of €300 million, with the imported volumes set to underpin the conversion of an oil-fired power station to run on natural gas.

Bioenergy is spurring the rapid growth in renewable energy resources between 2018 and 2023. According to the International Energy Agency’s (IEA) latest market forecast renewables will cover 40% of global energy consumption growth with another 1.3 Terrawatt of clean energy set to be installed by 2023.

Additional supply of natural gas through Nord Stream-2, the second leg of the Russian-German interconnector through the Baltic Sea, can contribute to security of power supply in during the Germany’s coal exit, said Ronald Pofalla, co-chair of the government’s coal commission.

New flexible supply source are transforming the global gas market and will lead to a growth in demand by about 300 billion cubic meters (Bcm) by 2022, McKinsey analysis fins. Asia, and notably China will make up nearly half of that additional demand.

The President of Argentina, Mauricio Marci, has welcomed the Emir of Qatar Tamim Bin Hamad Al Thani on a state visit, expressing confidence that “the trade volume between the two countries will increase rapidly in the coming years.” Argentina is trying to limit LNG imports, and become an energy exporter by effectively exploiting the country’s massive reserves of tight oil and shale gas at the Vaca Muerte formation at the Neuquén Basin.

Heads of Gazprom and Linde have met in St Petersburg to discuss ways of intensifying Russian-German technological collaboration, notably on the Amur Gas Processing Plant (GPP) project. Linde supplies equipment for cryogenic recovery of substances from gas, and Gazprom noted construction is progressing according to schedule for the plant to start up 2021.

Federal Energy Regulatory Commission (FERC) has approved Williams’ request to place its Atlantic Sunrise pipeline project into full service. Operations commenced as of Saturday, October 6, 2018, increasing design capacity of the Transco pipeline for natural gas from Marcellus Shale by 1.7 billion cubic feet per day (Bcf/d), or approximately 15%, to 15.8 Bcf/d.

Terna, the Italian transmission system operator (TSO), has awarded an €70 million order to a consortium of Ansaldo Energia and ABB to increase the security and support the quality of the Italian electric power system.

Much ado has been made over an oxidation issue at GE HA turbine blades at Exelon’s Colorado Bend power plant near Houston. Keen to limit the reputational damage, the top management of GE Power underlined the issue is limited to 9FB and HA gas turbine Stage 1 Blades. Not impacted are Advanced Gas Path (AGP) upgrades for the B/E/F-fleets, and the new HA or 9F.05 order.

In the first half of 2018, both natural gas supply and demand in the United States have increased by 12% compared to the first half of the previous year. Consumption and exports of U.S-produced gas averaged 93.4 billion cubic feet per day (Bcf/d), while total supply averaged 93.3 Bcf/d, according to the EIA’s September issue of Natural Gas Monthly.

Capstone Turbine Corp, the California-based manufacturer of microturbines, has seen its produce revenue increase 22% to reach $14.9 million in the second quarter of fiscal 2019. CEO Darren Jamison said the company made “progress towards fiscal 2019 strategic objectives” and recorded its second consecutive growth in product shipments.

UK Power Reserve (UKPR) has awarded the second phase of its battery-based energy storage contracts to Fluence, a Siemens and AES company. The 120-MW project is underpinned by capacity contracts secured in 2016, and UKPR is now tapping Fluence technology to enhance grid flexibility with all new storage projects scheduled to be in operation by winter 2020.

Growth in Europe’s gas demand has returned and stays underpinned by the power sector, with higher coal and carbon prices continuing to support the competitiveness of gas-fired power generation, says Murray Douglas, research director, Europe gas at Wood Mackenzie. Most importantly, in his view, is that national coal phase-out policies are being enacted throughout Europe which will boost gas demand through to the mid-2020s.

News in Brief

IEA reviews Brazilian gas market

Oct 15 – The International Energy Agency (IEA) has published a review of the opening of Brazil’s natural gas transportation system. Through its Gás para Crescer initiative, the Brazilian government sets a plan to liberalize the local energy market by enhancing the build-out of natural gas and electricity interconnectors, unbundling of TSOs and implementing of network codes.

Global GT market looses value

Oct 12 – Though Asia emerges as No.1 market for gas turbines, the overall value of the global gas turbine market  is forecast to decline over the coming five years. According to a Global Data report, the market value between now and 2022 will be $37.97 billion, down compared with $52.39 billion in the 2013-2017 period.

FERC approves $6bn CenterPoint/Vectren merger

Oct 11 – US Federal Energy Regulatory Commission (FERC) has approved the $6 billion merger of CenterPoint Energy and Vectren, whereby shareholders of the latter will be paid $72.00 in cash for each CenterPoint share. Vectren CEO Carl Chapman welcomed the ruling and added the companies “now anticipate a closing no later than the first quarter of 2019.”

Dürr buys part of Babcock & Wilcox

Oct 10 – Dürr Group, a Germany-based mechanical and plant engineering firm, has completed the acquisition Babcock & Wilcox’ (B&W) industrial environmental technology business. The takeover broadens Dürr’s portfolio on exhaust-air purification technologies, with a workforce of around 1,500 and estimated sales of € 400 million.

Azure achieves $12.50 per share

Oct 9 – India-based Azure Power Global Ltd has priced its underwritten public offering of 14,800,000 equity shares at a price of $12.50 per equity share. The company also granted underwriters a 30-day option to purchase up to an additional 1,200,000 shares at the same price, less underwriting discounts and commissions. The offering will close on October 10, 2018.

Global gas use grows at 2%/yr

Oct 8 – The International Gas Union (IGU) expects global gas consumption to grow by 1.6 to 2% per year in the coming decades. “Competitiveness, affordability, and eco-friendliness will remain essential in that regard,” said IGU President Joe M. Kang.

Financing agreed for EVM-II plant in Mexico

Oct 5 – A financing package of $740 million has been agreed for the Energias del Valle de Mexico II (EVM-II) combined-cycle power plant. Commercial banks involved in the financing were led by BNP Paribas, Citi, SMBC, and Mexico’s Banco National del Comercio Exterior. Milbank served as legal advisor.

MAN wins award for small-scale LNG paper

Oct 4 – A whitepaper by MAN Energy Solutions entitled ‘Small-scale LNG - powering the future of Asia’s island communities’ has won the Best Paper Award at this year’s Power-Gen Asia trade show. The paper ties in with MAN’s new strategy to deliver the entire value chain from small scale regas and import terminals to decentralized gas- and dual-fuel engine, and turbine-driven power plants. Carsten Dommermuth, International Business Development Manager, said “this setup is a real advantage for customers seeking to source a complete LNG-to-Power solution from the same provider.”

IEA laments steep drop in clean energy investment

Oct 3 – The latest steep drop in clean energy investment is “worrying,” according to Fatih Birol, head of the International Energy Agency (IEA). Official figures show spending on renewables fell to $298 billion worldwide in 2017, down from $318bn in the previous year, marking the biggest absolute fall on record.

Siemens closes Mendix acquisition

Oct 2 – The German engineering conglomerate Siemens has closed the Mendix acquisition, just eight weeks after the transaction was first announced. Part of Siemens’ Vision 2020+ strategy, the integration of Medix digital platform is aimed at creating new SaaS solutions and extensions, particularly for the Digital Enterprise Software, MindSphere.

Merger of BASF Wintershall and DEA goes ahead

Oct 1 – BASF Group has agreed to merge its German oil and gas business BASF Winterhall and with Deutsche Erdöl AG (DEA), owned by the Russian investor group LetterOne. The joint venture will operate under the name Wintershall DEA.

Toshiba splits R&D for Power and Industrial Systems

Sept 28 – Toshiba Corp has announced it completed all necessary steps to separate its Power and Industrial System Research and Development Center and transfer the R&D on electricity to Toshiba Energy Systems, while research on industrial systems will be taken over by the company’s infrastructure arm. The split take effect on October 1.  

Gazprom’s supply to Austria up 34%

Sept 27 – The Russian gas major Gazprom has delivered record volumes to its Austrian partner OMV after an existing longterm contract was extended in June to run through to 2040.  From January 1 through September 23, 2018, Gazprom delivered 7.8 billion cubic meters (Bcm) of gas to Austria, a 34.5% rise compared with the same period last year. Full-year 2017 export volumes amounted to 9.1 Bcm.

Keystone XL construction to start in 2019

Sept 26 – TransCanada has received a key permit for $8bn Keystone XL pipeline, with the U.S. State Department ruling the 1,900km pipeline will not have any significant impact to either water or wildlife. Construction is now slated to start next year.

ABB partners with UBC

Sept 25 – Zurich-based ABB has entered a 3-year partnership with the University of British Columbia (UBC), focusing on biometric sensing. ABB will provide a total of $300,000 in funding ($100,000 per year), which will be matched by the Government of Canada.

GE launches ServiceMax 18.3.

Sept 24 – GE Digital has launched Service Max 18.3., a new version of its Predix ServiceMax Field Service Management (FSM). The new solution is said to give service technicians greater autonomy, dispatchers with more robust decision-making tools which utilities to better plan and execute complex service projects.

Aramco collaborates with Schneider Electric

Sept 21 – Saudi Aramco has signed a Memorandum of Understanding (MoU) with Schneider Electric to work together on various advanced digital technologies, including virtual reality. The MoU is one of several accords to support the Aramco’s 2020 Transformation Programme and the kingdom’s own Vision 2030 economic blueprint.