Daily News

The first application of a Siemens SGT-300 in Canada will take place for an established Montney shale gas producer in Alberta. The customer’s ECP firm ordered two SGT-300 industrial gas turbines for use at a gas processing plant northeast of Edmonton.

U.S. natural gas prices at Henry Hub have surged nearly 25% to top $3.60 per million British thermal units as a cold spell gripped the nation, pushing up domestic gas demand for power generation along with shale gas production. As a consequence, U.S. LNG exports were slightly lower this week.

VAKT, creator of a commodity post-trade processing system, has just won three new three new strategic investors: Chevron, Total and Reliance Industries. The oil majors will also become early users of VAKT’s blockchain-enabled platform.

Developing efficient aeromechanics analysis for gas turbines helps avoid blade damping or strains during operation. “The new aeromechanics analysis methodologies are at least 100 times faster than traditional methods which enable us to design their products faster, reducing time-to-market and also bring down the maintenance and operating costs substantially,” say researchers at the U.S. technology firm Ansys.

Japan’s Hitachi Group today decided to suspend construction works at its Horizon division’s Wylfa nuclear power plant in northern Wales. With the £20 billion Wylfa project shelved, Hinkely Point is now the only nuclear project left in Britain, so flexible gas power and renewables will have to fill the looming capacity gap.

The European Investment Bank (EIB) has embarked on a review of its lending criteria for energy infrastructure projects, notably a 550g CO2/kWh emissions performance standard. EU negotiators had adopted this limit just weeks earlier for a ban on capacity payments to power plants exceeding it.

Qatar Power Company (QPower) has awarded Siemens a 15-year extension of a long-term service agreement for the Ras Laffan B combined-cycle power plant. The 1,025-MW Ras Laffan B plant, built in 2006, helps meet Qatar’s rising demand for power and water.

MAN Energy Solutions has commissioned six MAN 18V32/40 engines in Samara, Iraq, and delivered five more engines of the same type to a freshwater-treatment plant in Basra. The six engines in Samara will generate around 54 MW of electricity for a new cement plant owned by Kairat Al-Abar Iraqi.

Privately-held developer Invenergy has announced the start of commercial operations of its Lackawanna Energy Center. The 1,485-MW combined-cycle gas power plant, situated just outside of Scranton, Pennsylvania, is the largest project Invenergy has realized so far.

2019 could be a “year of incongruity,” Energy Aspects says, pointing to a rush of supply FID for gas liquefaction and export terminals happening against a backdrop of a market in oversupply. Analysts expect four new LNG Trains to start up or ramp up in Q1-2019, and considering the mild Asian winter, this leaves some 5.7 Bcm y/y of incremental supply available for the European market that quarter.

Bacteria and microbes living in oxygen-deprived environments – deep within mines, at the bottom of lakes or in the human gut – have evolved way of breathing that involves excreting and pumping out electrons. These microbes can actually produce electricity and MIT researchers are striving to harness these microbial power plants to run fuel cells.

Jamaica’s electric utility Jamalco is striving to get its LNG-fuelled cogeneration power station ready for completion by February 2020. Works currently focus on the inland segment of the gas feeder pipeline for the $189 million power project, built by New Fortress Energy (NFE).

South Australia’s large-scale Hornsdale battery (100 MW) has helped save nearly $40 million in grid stabilization costs in its first year running, but the success of energy storage undermines the role of gas peaking plants. Flexible combined-cycle plants get dispatched less, also due to higher gas prices, leaving some at risk of mothballing.

Start-up of Gibraltar’s first gas engine-driven power plant at North Mole is underpinned by fuel from a small-scale LNG shipment. A partial cargo has just been delivered by Shell on board the ‘Coral Methane’. Commissioning of the North Mole power project “is currently ongoing,” MAN Energy Solutions confirmed, with "several engines having had first fire.”

As the global sentiment turns against coal, the Institute of Energy Economics Japan (IEE Japan) has modelled a case in which all new coal-fired power plant projects would be banned from 2020. If natural gas was to replace coal in the energy sector, global primary gas consumption would surge by 1.3 trillion cubic metres (Tcm) to reach 7.3 Tcm in 2050.

News in Brief

France imports more Russian gas

March 21 – Demand for Russian gas continues to grow in France, with Gazprom’s exports rising 5.4% last year to 12.9 billion cubic meters (bcm). The upward continued into early 2019 and provisional estimates show some 2.5 bcm of gas was exported to France from January 1 to March 14, 2019, a 1.9% increase on the previous year period, Gazprom CEO Alexey Miller noted when discussing contractual supplies with his counterpart at ENGIE, Isabelle Kocher.

Merger wave grips UK oil &gas sector

March 20 – Significant pressures are here to stay in the UK oil and gas sector, with the trade association Oil & Gas UK (OGUK) saying the industry is facing a “new reality” amid high levels of M&A activity and the related transfer of assets. The ongoing consolidation process forces the industry to embrace new forms of collaboration and business models.

Chevron Nigeria to supply gas to Dangote

March 19 – Chevron Nigeria has agreed to supply natural gas to Dangote’s fertilizer plant in Nigeria. The deal is part of the international oil major’s gas supply obligation to the domestic market under the Nigerian Gas Master Plan.

POSCO wins $100m CHP deal in Mexico

March 18 – POSCO Engineering & Construction, part of the leading South Korean steelmaker POSCO, has signed a $100 million agreement with Ener AB to build a 100-MW combined heat and power plant in Mexico. Situated in Coahila, the CHP will serve the energy needs of the nearby Magnelec chemical plant.

Wood to install Siemens turbine in North Carolina

March 15 – Wood Group has secured a contract from Siemens to install a HL-class gas turbine at a power plant in North Carolina. Construction works are estimated to involve 400 people and last for approximately 11 months, Wood Group said. Once installed, the turbine will add 400 MW to the plant's existing capacity 1,200 MW. Financial details of the deal were not disclosed.

J-series turbine passes 750000 hours

March 14 – Mitsubishi Hitachi Power Systems (MHPS) has announced their global fleet of J-Series gas turbines accumulated over 750,000 hours of commercial operation. The J-Series fleet now includes 39 turbines in commercial operation, with 28 of those exceeding 8,000 hours and the fleet leader having more than 45,000 hours of operation.

German gas prices up 9% in March

March 13 – Household energy prices in Germany have risen substantially in March 2019, compared to the same month in the previous year, according to the price comparison site Verivox.  Electricity prices increased 5% to a new record of 29.42 cents per kilowatt hour (ct/kWh) in March to date, up from 27.99 cents a year ago, while natural gas prices jumped 9% to 6.1 ct/kWh.

MAN turbines commissioned at Chinese CHP

March 12 – MAN Energy Solutions has installed and commissioned a MGT6000 gas turbine and a THM-series gas turbine at a combined heat and power (CHP) plant that replaces a coal-based power plant in Changsa, Hunan Province. Another MGT6000 just started commercial operation at a cogeneration plant, optimized to run on natural gas, at an industrial zone of Dongguan City in Guangdong Province.

Gazprom breaks ground on 200-MW CHP plant in Serbia

March 11 – Russia’s state-run Gazprom has started construction of a combined-cycle gas cogeneration plant near Pancevo Refinery in Serbia. The site is owned by Novi Sadpart, part of Gazprom Neft Group. The 200 MW plant will be Gazprom Energoholding Group’s first power project outside of the Russian Federation and is slated for commissioning in 2020

ABB pilots digital control rooms in Sweden

Jan 8 – Swiss-based ABB has launched a new digital solution for control centers that is being pioneered and tested in a pilot project by the Research Institutes of Sweden (RISE). The cloud-based application works in synergy with many other ABB Ability solutions, and provides a platform for information-sharing.

MHPS opens new office in Bangladesh in bid to boost sales

Jan 7 – Mitsubishi Hitachi Power Systems, Ltd. (MHPS) has opened a branch office in Dhaka, the capital of Bangladesh, to strengthen its regional sales capabilities for thermal power stations. With the economy growing 6% in recent years, the Bangladeshi government seeks to boost the nation’s power generation capacity from currently 17 GW to approximately 24 GW by 2021 and further to 40 GW by 2030. To reach this goal, Bangladesh has started importing LNG amid state supports for private sector investment in large scale LNG-to-Power projects.

Shell mulls sale of Mahanagar Gas stake

March 6 – Shell India, the local business of Royal Dutch Shell, is considering to exit its city gas distribution business by selling its 10% stake in Mahanagar Gas Ltd. Shell acquired the stake in connection with the BG takeover in 2016, and last year already offloaded most of shareholding two two bulk divestment deals.

Siemens buys KACO’s string inverter arm

Jan 5 – Siemens announced it will acquire the string inverter business of the KACO GmbH, a manufacturers of power electronics, for an undisclosed amount. Siemens said wants to integrate KACO in its new Smart Infrastructure Operating Company, and expects the deal to close in H1-2019.

Power gen dominates Rolls-Royce’s engine business

March 4 – For the first time, Rolls-Royce Power System has manufactured more engines for electric power generation than for marine propulsion, the UK-based company said when reporting solid full year results. Revenue surged 15% to a record €3.9 billion in 2018, with adjusted profit up at €358 million resulting in a 9.1% return on sales.

Siemens produces module batteries in Trondheim

March 1 – Siemens has invested in a battery module factory in Trondheim, northern Norway, equipping the factory with a robotizied and digitally supervised production line with eight 300 MWh stations. Up to 55 battery modules per shift can be assembled every day, for use mainly in the marine and offshore market.

GE CEO committed to reduce debt “soon”

Feb 28 – General Electric CEO Larry Culp, in his first letter to shareholders, has said the company has too much debt and needs to reduce it “thoughtfully and soon.” Seeking to rebuild the ailing manufacturer, Culp focuses on GE’s four core businesses: power, renewable energy, aviation and healthcare. By adopting a “disciplined financial policy,” he wants GE achieve an industrial net debt/EBITDA ratio of less than 2.5x and a dividend in line with peers over time.

IEA launches ESCOs directory

Feb 28 – The International Energy Agency (IEA) has launched a new web resource dedicated entirely to energy service companies (ESCOs). The value of the global ESCO market grew 8% to $28.6 billion in 2017, helped by an 11% expansion in China and continued strong growth in the U.S.