The pandemic has cut daily peakload in PJM, the largest US regional power network, by 13.5 GW and demand is unlikely to recover before 2023. Researchers at the Applied Economics Clinic warn of a “capacity surplus," suggesting the network is “over-reliant” on gas peaking power plants.
Success of the global energy revolution – the shift from fossil to low-carbon power generation – hinges on the quality of the cable that underpins. Yet an estimated 20% of all cables in the UK are either substandard, counterfeit or non-approved.
Intermittency issues of wind and solar power supply are feared to jeopardize the stability of the U.S. power grid. To remedy this issue scientist at the Massachusetts Institute of Technology (MIT) have developed an “air-breathing” battery storage that, at the cheapest, run about $100/kWh and functions only in certain locations.
Japanese utility buyers have been busy to snap up US LNG, importing a total of 18 cargoes in both August and September, ahead of South Korea with 15 cargoes. Generating electricity from LNG remains vital for Japan, though Kyushu Electric aims to restart units 1&2 at its Sendai nuclear plant.
Wholesale power prices will increasingly hinge on zero marginal cost generators, such as variable renewables, which undermine the profitability of thermal power units. Cornwall Insight proposes to guarantee each generator at least their floor price for each MWh produced. The value would be determined in a competitive tender.
Japan’s largest utility JERA has notified the government about plans to build new combined-cycle gas power Units 7 & 8 at the Chita Thermal Power Station. The two 650 MW units are designed to reach a gross thermal efficiency of 63% and will be fuelled by regasified LNG.
Slowing oil and gas consumption as a result of the global green energy transition may lower the credit profile of national oil companies (NOCs). Oil majors can reduce this risk, according to Moody’s, by increasing their exposure to LNG assets and less carbon-intensive energy sources.
Rolls-Royce will deliver and install a Bergen gas engines in an onsite power unit at the Dhamra LNG terminal in India, based on an order from DLTPL, a joint venture between Adani Group and Total. The Dhamra LNG terminal is due for commissioning towards the end of 2021.
AES Corp, a global Fortune 500 energy provider, is preparing to operate its power stations at Alamitos and Huntington Beach remotely to ensure continuity and leverage staffing. The Virginia-based utility will employ GE software at a new central control centre due to be built by early 2021.
US oil and gas major ExxonMobil has been given regulatory approval to build a LNG import terminal and power project at the northern Vietnamese port city of Haiphong. The project is meant to start generating electricity by 2026, though ExxonMobil has yet to confirm it is going ahead.
Thailand’s B.Grimm Power gained approval from the Provincial Electricity Authority to service more industrial customers near the Map Ta Phut LNG regas terminal. The Thai IPP is building 700 MW of gas-fired capacity, and arranged two LNG licences with a view to start importing as early as 2022.
Siemens has launched an artificial intelligence (AI)-based Managed Detection and Response (MDR) service that helps shield the energy industry from cyber-attacks. Powered by Eos.ii, the solution gathers real-time energy asset intelligence to monitor, detect and uncover attacks before they occur.
News in Brief
First 8-cylinder B36:45 engine delivered
Jan 19 – Rolls-Royce has delivered the first 8-cylinder variant of its Bergen B36:45 gas engine to a tomato producer in Belgium. The medium speed genset is planned for delivery this spring and will drive an onsite power plant that generates 4700 kW electricity and 5520 kW heat. The new engine offers a 20% increase in power per cylinder and will replace an existing Bergen 12-cylinder B35:40 genset.
Moody’s upgrades Enel to Baa1
Jan 18 – Moody’s Investors Service has upgraded Enel’s long-term rating to Baa1, with a stable outlook. The upgrade reflects Enel’s progress in reducing its risk profile, analysts said, pointing at the Italian utilities ongoing investment in networks and renewables, growing geographical diversification and focus on centralised financing.
GE sues Siemens Energy
Jan 15 – General Electric has sued its German rival Siemens Energy over the alleged use of stolen trade secrets to win gas turbine contracts worth several billion dollars. GE told the US district court in Virginia that Siemens received the secret information from a Dominion Energy employee.
Orbital Energy launches Eclipse
Jan 14 – Nasdaq-listed Orbital Energy Group has launched a new subsidiary, Eclipse Foundation, a drilled shaft construction company. The new company specialises in providing services for power transmission and substations, communication tower and a disaster restoration through emergency power.
S’Korean coal and LNG imports slide
Jan 13 – South Korea’s imports of thermal coal and LNG have fallen 12% and 11%, respectively, as the government cracks down on fossil fuel usage to curb air pollution. Customs data shows that coal imports amounted to 10.2 million tons in December, down 1.4 million tons from the same month last year but up from November’s imports of 9.5 million tons.
SMC builds 1.7 GW CCGT in Batangas
Jan 13 – Excellent Energy Resources, part of SMC Global Power Holdings, is building a 1,700 MW combined cycle gas power plant in Barangay Dela Paz and Ilijan in Batangas City with investments of about 67.863 billion Philippine Pesos ($1.41bn). The project is estimated to be completed in 36 to 40 months.
UK’s National Grid issues supply warning
Jan 12 – Natural gas prices in the UK surged as National Grid issued warnings on supply deficit as LNG cargoes are being diverted to North Asia. Prices at the British NBP gas trading hub soared to the equivalent of $8.95 per MMBtu, while the JKM price for North Asian spot LNG cargoes for February 2021 was last at $19.700 per MMBt.
Fortistar invests in hydrogen
Jan 11 – Fortistar, a privately-held fund, has joined an equity investment of up to $157 million in hydrogen producer BayoTech. Cottonwood Technology Funds and the New Mexico State Investment Council also participated in the latest financing round. BayoTech’s systems produce local hydrogen close to the application, serving end users in the industrial gas and petrochemical segment as well as those who use of hydrogen to power fuel cells.
Ashtead appoints new CFO
Jan 5 - Ashtead Technology has appointed a chief financial officer (CFO) and five managers for newly created roles across its international team. The appointments are meant to cement the company’s position in the offshore energy market, including offshore wind and decommissioning of thermal power plants
NFE secures LNG for Puerto Rico, Mexico and Nicaragua
Dec 23 – New Fortress Energy (NFE) has agreed to purchase Henry-Hub-indexed LNG for its integrated gas and power businesses in Puerto Rico, Mexico and Nicaragua. The New York-based project developer said it now has covered 80% of its expected needs throughout Latin America, thus reducing its need for spot purchases and its exposure to changes in the market price for LNG.
China and Korea mandate coal-to-gas switch
Dec 22 – The Chinese government has launched a coal-to-gas boiler switching programme, targeting 7.1 million homes, which makes gas demand more weather-sensitive this winter. Similarly, South Korea mandated the closure of 15 coal-fired plants since the start of December in an effort to reduce air pollution. Analysts expect this will accelerate the drawdown of LNG terminal inventories going into Q1-2021.
GE repowers oil field in Brazil
Dec 21 – GE Power Conversion has been awarded a contract by Sulzer Pumps UK to supply motors for four water injection pumps of a Floating Production Storage and Offloading (FPSO) vessel. The 8,000 kW, two pole motors will run at 3,600 rpm with a limitation of the starting current at 300%, enabling the oil and gas field operator to optimise the generator which supplies electricity on the FPSO.
VELO distributes Sapphire Metal 3D-Printers in the US
Dec 18 – California-based VELO3D has formed a distribution partnership with GoEngineer for Flow pre-print software, Sapphire metal AM printer, and Assure quality assurance and controls. GoEngineer will be VELO’s only distributor in the United States.
Indian electric boats to achieve zero emissions
Dec 17 – Cochin Shipyard, India’s largest shipbuilder, has asked Siemens Energy to equip India’s first fleet of 23 boats with electric propulsion drive train, integrated with batteries and vessel automation. Combining the electric propulsion drive trains, energy storage, and automation systems is expected to significantly reduce fuel consumption.
Terna BESS auction six times oversubscribed
Dec 16 – A pilot auction, held by the Italian TSO Terna, for battery energy storage systems (BESS) to provide reserve grid services has been six times oversubscribed. The auction was held with an expectation that around 230 MW would be on offer, but Terna received 1,327 MW worth of bids and eventually awarded contracts for 249.9 MW.
New £150m link to UK’s Easington terminal
Dec 15 – National Grid has completed a gas pipeline under the River Humber, build in 18 months and at a cost £150 million, as new link to the import terminal at Easington. Following commissioning, the pipeline is now operational and can now transport between 70 to 100 million cubic metres - around a quarter of Britain's gas needs.
US emissions fall 11%
Dec 14 – Energy sector-related emissions in the US are expected to fall 11% this year, largely due economic and behavioural effects the coronavirus pandemic. According to the EIA's December Short-Term Energy Outlook (STEO), emissions in 2020 are forecast fall by 19% for coal, by 13% for petroleum, and by 2% for natural gas.
