MODEC’s latest floating production, storage, and offloading vessel – the ‘Eni Mexico Area 1 FPSO’ – will be powered by three Siemens SGT-A35 gas turbine power generation packages. Due operational in 2021, the FPSO will operate some 6 miles off the coast of Mexico in a field owned by Eni and Qatar Petroleum.
Shale gas is now dominating the overall gas production in the United States and is forecast to reach an average 91.3 billion cubic feet per day (Bcf/d) in 2019, up 8.0 Bcf/d from the previous year. The gas glut is expected to push down Henry Hub spot prices to $2.50/MMBtu in the second half of this year and further increase gas-burn in the power sector.
France-based Ardian, formerly AXA Private Equity, has acquired a 41.9% stake in the gas-fired Hill Top Energy Center in Greene County, Pennsylvania, from funds held by the U.S. investment house Ares Management.
Long duration, grid-scale energy storage will be a game changer, allowing for more renewables integration. The industry is developing new batteries that will extend the current 2 to 4 hours of energy storage to up to 8 hours. These batteries are expected to be ready for use by 2030.
The Iraqi developer Maisan Power Company (MPC) and CITIC Construction have selected Siemens to supply the entire power generation equipment for the 840 MW Maisan combined-cycle power plant in southern Iraq. According to Siemens, the contract is worth more than 284 million Euros and the Maisan CCGT is due fully operational in early 2022.
Dubai-based Lloyds Energy has proposed to realize a 1,200 MW merchant power plant, fuelled by regasified LNG, in the Philippines. The integrated LNG-to-Power project is meant to be built in partnership with the Japanese turbine manufacturer Mitsubishi.
Australian-listed Energy World Corp (EWC) has added two gas compressors at its LNG regas plant at Kampung Baru to boost gas flows to its 315 MW power station at Sengkang, South Sulawesi. By ensuring flexible supply, EWC seeks to extend its power purchase agreement with the Indonesian national utility PT Perusahaan Listrik Negara beyond September 2022.
Generation costs for Germany’s fleet of combined-cycle power plants is getting cheaper than those for coal or lignite for the first time in over a decade, according to a report by BloombergNEF. Analysts find burning gas has become more profitable than lignite “for the first time ever” – a trend set to accelerate the country’s coal exit.
Chicago-based J-Power USA, part of Electric Power Development Co. of Japan, has started construction of the 1,200 MW Jackson Generation Project in Will County, Illinois. Once operational, the Jackson CCGT will feed all electricity into the PJM market zone.
Energy storage will play a growing role in the British power mix as the Brexit process is at a critical stage and the country seeks to reduce reliance on importing electricity through from mainland Europe. “Interconnectors are direct competitors in the flexibility marketplace,“ Wood Mackenzie said, suggesting Brexit could be good news for the UK storage market.
Transforming India to a “gas-based economy” has been President Narendra Modi’s vision for years but the country can ill afford subsidizing LNG imports to reduce fuel costs for power plants. Banks invested some Rs50,000 crores ($7.18bn) in these projects – many unable to repay their debt, leaving Indian public money at risk.
Striving to achieve its goals for carbon-free power, Xcel Energy’s resource plan finds that it will need more “dispatchable” generating capacity by 2030. Up to three fast-ramp gas power stations have to be added to balance Xcel’s plans of tripling its solar power production.
Volkswagen AG has tasked Mitsubishi Hitachi Power Systems Europe (MHPS Europe) to replace two coal-fired blocks at its ‘Heizkraftwerk West’ CHP plant, with a gas-fired double power block. The new units will be built on a turnkey basis on VW’s automotive factory grounds in Wolfsburg, northern Germany.
ExxonMobil and Global Thermostat, an R&D firm, are testing an agile solution of soaking up carbon dioxide emissions from the air – notably from industrial facilities and power stations – at a pilot plant in California. Once economically viable, the solution could help meet the world’s climate goals.
Fossil fuel consumption keeps rising in the United States, largely due to higher natural gas use in the power sector and petroleum consumption for transport. According to EIA figures, gas demand rose in 8 of the past 10 years, surging by 37% since 2005. Thermal coal, in contrast, keeps losing market share and fell by 4.3% in 2018, the fifth consecutive annual decline.