China has chosen April 1 as the date when two-digit reductions in Value-Added Tax (VAT) will have to be implemented by key industries, including electric power producers, in bid to lower fuel costs and ultimately reduce electricity prices. Manufacturing companies will benefit from 13% to 16% VAT cuts, while construction and transport firms will pay around 10% less VAT and industrial users of thermal coal, including power producers will see VAT drop by 3%.
Striving to streamline China’s energy market, the National Development and Reform Commission (NDRC) is advancing plans to create a single oil and gas pipeline company by mid-2019. The new China-wide TSO will integrate the pipeline assets of former competitors, notably CNPC and its listed arm PetroChina, Sinopec and CNOOC.
Global CO2 intensity has decoupled from electricity demand growth since the mid-2010s, and this trend intensified when China and other major Asian economies started to turn their back on coal use for power generation, while falling costs for wind and solar PV made clean energy more attractive.
Surface coating developer Hardide has announced that testing – commissioned by EDF Energy and carried out by the British National Physical Laboratory (NPL) – indicates nanostructured chemical vapour deposition (CVD) coating can extend the life of steam turbine blades. The CVD coating made the tested FV520B turbine blades more resistant to erosion and cracking.
Drax Power has secured regulatory approval for its Millbrook Power Station, a proposed 299-MW open cycle gas turbine (OCGT) power plant to be built in Bedfordshire County, England. Developed at a cost of up to £90 million, the new Millbrook OCGT could start generating electricity as soon as 2022, provided it secures a UK capacity contract.
MAN Energy Solutions has received the Storage Highlight award for its new energy management solution, offering scalable and CO2-neutral energy storage and sector coupling. The basic principle of MAN ETES is the reversible conversion of electrical energy into thermal energy via storage in form of hot water and ice.
Leading LNG players like ExxonMobil, Shell and Total, as well as the engineering contractor Bechtel, have all completed qualification studies on Mitsubishi Hitachi Power Systems' H-100 gas turbine (120 MW) for use as the mechanical driver together with MHI compressors. Encouraged by this customer acceptance, MHI group is now marketing their H-100-driven liquefaction solution in single, stand-alone 1x100% strings or multi-unit large scale trains.
The South African arm of AEP Energy is about to purchase two power plants in Nairobi from Iberafrica and considers converting these units from diesel to natural gas. In Kenya, diesel-generated electricity is about 3 times costlier than geothermal, wind and hydropower and about 2.5 times more expensive than gas power.
Powergen Kyaukse Company has signed a 5-year operations and maintenance agreement with Wärtsilä to help its 145 MW power plant in Mandalay region meet its availability guarantees. The newly installed plant, driven by eight Wärtsilä 50SG gas fuelled engines, has been built to alleviate electricity shortages in Myanmar.
Length in natural gas supply the U.S. Mid-Atlantic and Ohio region is building up amid rising production from the Marcellus and Utica Shale. Simultaneously, growing demand in the South Central region for feed-gas for LNG export facilities on the Gulf Coast has caused a reversal in gas flows on key interstate pipelines.
Latest earnings calls from publicly-traded U.S. gas producers show a slowdown in 2019 gas production as the role of private producers increase. The 25 firms sampled by Energy Aspects have a combined base output of 23.1 billion cubic feet per day (bcf/d), and said they expect 1.3 bcf/d annual production gains in 2019. This projected 6% uplift is less than their earlier growth 9% forecast.
As the second wave of the US shale revolution unfolds, the United States is forecast to account for 70% of the rise in global oil production and some 75% of the expansion in LNG trade over the next five years. On global oil markets, the U.S. has “essentially compensated for recent production shortfalls in Venezuela and Iran,“ commented Dr Fatih Birol, Executive Director of the International Energy Agency (IEA).
Sorgenia has turned to GE to make its 765-MW Termoli combined-cycle gas turbine (CCGT) power plant more efficient, reliable and flexible by enhancing its digital capabilities. In this context, Sorgenia also extended the multiyear O&M agreement with GE through 2031.
Spain’s gas network operator Enagás has agreed to pay $590 million for a 10.93% ownership interest in Tallgrass Energy (TGE), the operator of several U.S. interstate pipelines. To finance the deal, Enagás partnered with the private equity firm Blackstone and Singapore’s sovereign wealth fund GIC.
Finish technology group Wärtsilä has been contracted by Bahamas Power and Light (BPL) to supply an engine-driven power plant to help improve the grid reliability on the island. The 132 MW dual-fuel plant will be delivered and built on a fast-track basis as it is due to go into commercial operations in summer 2019.