Daily News

Canadian oil and gas producer Encana has a made its boldest move yet, buying all shares of Newfield Exploration for US$5.5 billion and assuming US$2.2. billion of Newfield’s net debt. The takeover gives Encana premium positions in three of North America’s highest-quality, oil and liquids-weighted shale plays – the Permian, STACK/SCOOP and the Montney.

India has just completing the electrification of all its villages, and worldwide over 120 million people gained access to electricity. This means that for the first time ever, the total number of people without access fell below 1 billion according to new data from the International Energy Agency’s (IEA) World Energy Outlook 2018.

Silent-Power Project, a Swiss technology start-up, is producing of CO2-neutral electricity from methanol. CEO Urs Weidmann told Gas to Power Journal the company aims to achieve an annual production of 1 million liters of carbon neutral methanol with its first synthesis plant by 2020.

A rebound in global oil and gas prices has helped Royal Dutch Shell’s quarterly profit to reach $5.6 billion, the highest level in four years – but still short of analysts’ expectations. "Good operational delivery produced one of our strongest-ever quarters with cash flow from operations of $14.7 billion," CEO Ben van Beurden commented.

Indian LNG buyers have been courting the incumbent seller Qatar to invest in stranded gas-fired power station as a precondition for new long-term offtake agreements. If Qatargas or Qatar Petroleum agrees to supply fuel to some stranded power plants, they are offered a profit share.

Siemens has committed to invest up to 600 million Euros at its industrial estate in Berlin Spandau, a future R&D hub. A new world of working and living will be built on an area of 70 hectares to strengthen selected key technologies and innovations. Research will focus on distributed energy, electric vehicles, digitalization, and 3D printing.

Switching from coal to cleaner-burning gas for power generation has led to a 28% decline in carbon dioxide emissions in the U.S. power sector. Slower growth of electricity demand also contributed to the decline, with the U.S. Energy Information Administration (EIA) calculating that power generation-related CO2 emission fell to a near 30-year low at 1,744 million metric tons (MMmt).

Disruptions in gas supply and greater gas and electricity price volatility will have a critical negative impact on UK business in the next 10 years, a survey of the British Gas Security Group (GSG) finds. With 80% of Britain’s gas needs set to be imported in 2030, and in the face of the closure of Rough storage, the industry is vary about being overexposed to the volatility of international gas markets.

Hydrogen, as an energy carrier and feedstock, has gained momentum amid falling cost of wind and solar power. Once mass-produced at very low cost in places like Argentina, Australia, Chile, the Middle East or South Africa, green hydrogen could become a game-changer, the same way LNG linked previously disconnected regional gas markets.

State regulators have narrowly approved Minnesota Power’s strategic move to take a stake in a $700 million gas-fired power project, rebuking concerns from ratepayers and a state law judge. The 525-MW combined-cycle plant will now be built in the town of in Superior, Wisconsin, by Minnesota Power and Dairyland Power Coop. Start-up is slated for 2025.

Wednesday, 31 October 2018 / Markets

GE to split its power business

Cash-strapped General Electric has curtailed its quarterly dividend and announced plans to split its Power business into two units. First, the unified Gas business will combining GE’s gas product and services groups, and a second unit will other assets including Steam, Grid Solutions, Nuclear, and Power Conversion.

Weakened by losses in state elections in Hesse and Bavaria, the German Chancellor Angela Merkel has decided to give way for a new leader of her conservative CDU party. Merkel’s decision could help the ruling coalition regain focus and make important decisions on energy, climate and other key areas. Uncertainty abounds about the timeline for Germany's coal exit.

Predix ServiceMax, just launched by GE Digital, is an Asset Service Management (ASM) system designed to increase equipment uptime and improve maintenance outcomes for industry and power plant operators. Combined with performance management, the new offering helps customers transform their maintenance process from a break-fix model to a predictive service model.

Seeking to balance a steady decline in domestic gas production, European buyers have been increasing their LNG imports for the third consecutive year to cater for growing demand from the power sector. Low hydroelectric output in Spain, Italy, and Portugal as well as unplanned nuclear plant shutdowns in France in 2017 led to greater gas use for power generation, and higher LNG import.

French utility ENGIE has deployed a 150 kW/90 kWh energy storage system in Rotterdam that is made up entirely by second-hand batteries from Renault electric vehicles. The E-STOR system, developed by Connected Energy, is supporting the Tennet electricity distribution grid.

News in Brief

PG&E nears bankruptcy

Jan 18 – Northern California’s utility Pacific Gas & Electric (PG&E) has informed federal regulators that it expects to seek Chapter 11 bankruptcy protection by January. The San Francisco-based utility is under investigation for its shortcomings in the deadly 2018 wildfires. S&P this week downgraded PG&E’s gas and electric unit to ‘D’ to ‘CC’ after the utility failed to make a $21.6 million interest payment

Hitachi suspends work on Wales nuclear project

Jan 17 – Japan’s Hitachi is close to suspending construction works at its Horizon division’s Wylfa nuclear power plant in Wales. If the project gets shelved, EDF Energy's Hinkely Point-C will be the only nuclear project remaining hence flexible gas power will have to fill the capacity gap.

PG&E files for bankruptcy by Jan 29

Jan 16 – Northern California’s utility Pacific Gas & Electric has informed federal regulators that it expects to seek Chapter 11 bankruptcy protection by end of this month. The San Francisco-based utility is under investigation for its shortcomings in the deadly 2018 wildfires.

Gas engine market to top $4.4bn by 2020

Jan 15 – Global demand for natural gas engines is forecast to expand with the market set to exceed $4.4 billion in value by 2022, according to Zion Market Research. Key manufacturers include, GE, Rolls-Royce, Cummins, Caterpillar, Wärtsilä, Kawasaki, MAN, Deutz, Doosan and Yanmar.

Encana selects Siemens rotating equipment

Jan 14 – Siemens has been selected to provide one feed and sales gas train and one refrigeration compression train for Encana’s Pipestone Processing Facility in Grand Prairie, Alberta, Canada. The new unit, due to operational in 2021, will provide Encana with 19,000 barrels per day of net raw condensate processing capacity plus 170 million cubic feet per day of net inlet gas processing capacity.

Cheap U.S. LNG underpins power project in Panama

Jan 11 – AES Colón expects the entry of low-cost US LNG will transform the Central American energy sector, much as it has in the Panama. The utility in September started up an $1.15 billion LNG import terminal and adjacent combined-cycle power plant.

Rolls-Royce joins forces with OT industries

Jan 10 – Britain’s bellwether manufacturer Rolls-Royce has signed an accord with OT Industries to explore areas of joint work for the provision of Emergency Diesel Generators (EDGs) and Instrumentation and Control (I&C) systems for new units at the Paks nuclear power plant in Hungary. OT industries is majority owned by the MOL Group.

State-run utilities dominate energy spending

Jan 9 – Future investments in global energy supply largely rest in the hands of governments. In the power sector, a striking 95% of monies are spent by regulated utilities under schemes to minimize risk associated with variable prices on competitive markets. However, once China will have completed its power sector reform the share of countries that rely on competitive markets will rise from 54% to almost 80%.

Floating power market to top $1.4bn by 2022

Jan 8 – The market for floating power plants (<250MW capacity) is expected to grow at an annual rate of 10.11%, expanding from currently $889.6 million to reach $1,440 million by 2022. Main growth drivers, according to MarketsandMarkets, are cost advantages of floating over land-based power plants, particularly in regions with a lack of power infrastructure.

Energean to supply gas to Israel

Jan 7 – Energean Oil and Gas has agreed to supply 5.5 Bcm of natural gas Karish and Tanin fields over 19 years to the Israeli power producer I.P.M. Beer Tuvia. The deal is expected to $900 million in revenue for Energean over the contract duration.

Eranove builds 390 MW plant in Ivory Coast

Jan 4 – Ciprel, a subsidiary of Eranove Group of France, is preparing to construct a 390 MW power plant in Jacqueville near Abidjan, the capital of the Ivory Coast. Driven by one of GE’s F-class turbine the combined-cycle power plant will be similar to one that Ciprel already has in operation.

Works advance on Jawa-1 CCGT

Jan 3 – Construction works are forging ahead for Jawa-1, a 1,760 MW combined-cycle gas-fired power plant. Built at cost of $1.8 billion the facility will be built by PT Jawa Satu Power (JSP) and PT Jawa Satu Regas (JSR) in Karawang, West Java.

Grozny TPP due onstream in 2019

Jan 2 – Construction of Unit 2 of the Grozny Thermal Power Plant (TPP) is advancing fast with a view having the entire plant operational in mid-2019. The first 180 MW unit has been running uninterruptedly for a fortnight and once the second unit will start up, Grozny TPP will reach its design value of approximately 360 MW.

E&P profitable at $50/bbl

Dec 21 – Globally, Wood Mackenzie expects exploration budgets to remain steady in 2019. But with stronger prices, lower costs and a greater focus on commerciality, the exploration sector is now seen to be more resilient than ever, and “well positioned to generate positive full-cycle returns at oil prices of US$50/barrel or even lower.”

GE upgrades substation in Germany

Dec 20 – TransnetBW has asked GE Power to upgrade one of the substations in so-called ‘Badische Rheinschiene’, a highly loaded link in the transmission grid of southwest Germany. The project will deliver 22 bays of 400 kV GIS to reduce the substation’s footprint while increasing its capacity.

Burckhardt opens service centre for Central Europe

Dec 19 – Swiss-based Burckhard Compressions has opened a new service centre for Central Europe in Slovakia. Reciprocating compressors of any brand are serviced there for operators in Slovakia, the Czech Republic, Hungary and Poland.

Global CCS growth nears 10% per year

Jan 19 – A report from analysts Research and Markets says the global Carbon Capture and Storage (CCS) market will grow 9.18% per year between 2017 and 2021, with Babcock & Wilcox, ENGIE, GE Power, Linde and Mitsubishi Heavy Industries dominating developments.