Daily News

The French EPC company Groupement TEC-IEE has contracted Wärtsila to build a small-scale power project intended to boost the development of local industry in Equatorial Guinea. The new 38-MW plant, equipped with four 34DF dual-fuel engines, will be running primarily on gas supplied from the country’s offshore fields.

With the launch of P9394GSI S5, rated at 2,500 horsepower, GE Distributed Power is adding another model to its Waukesha VHP Series-5 family of rich-burn gas engines. The new S5 engine has an improved cylinder head, piston/ring design, Miller-cycle combustion and Waukesha’s latest ESM-2 engine controls.

Anglo-Swiss commodity trading and mining company Glencore has signed a financing deal with Limay LNG Power Corp. of the Philippines and China Energy Equipment Company to jointly realize an integrated LNG import and power generation facility. The project includes a floating storage and regasification unit (FSRU) that will supply to fuel a power plant with up to 1,100 MW installed capacit in Bataan, Luzon Island.

Toshiba Energy Systems & Solutions (ESS) has started a survey to develop applications and use of its hydrogen-based H2One energy supply system, targeting isolated regions on islands in Indonesia and the Philippines. H2One utilizes renewable energy and hydrogen-powered fuel cells to deliver CO2-free electricity and hot water supply.

MHI Compressor Korea Ltd. (MCO-K) has been launched as a Joint Venture by a group company of Mitsubishi Heavy Industries and Mitsubishi Corp. Operating out of Seoul as of October 1, MCO-K is tasked to “further cultivate the promising market in South Korea,” where the Japanese manufacturer already sold many compressors and drives.

Siemens and Southern Idaho Solid Waste (SISW) have recently commissioned SGE-56HM gas engines that drive a landfill gas-to-energy project at the Milner Butte Landfill in Burley. These two SGE-56HM engines, each rated at1,300kWe, can convert 1,000 tons of landfill waste daily into – enough electric to power for approximately 2,000 homes.

Ansaldo Energy, the Italian power engineering company, has shipped the first gas turbines from its new production facility near Genoa Cornigliano. Following final assembly, large heavy-weight turbines – including Ansaldo's flagship GT36 – can now be shipped directly from the port of Genoa to customers worldwide.

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.

Finland-based technology group Wärtsilä has decided to redesign its organization into two separate business areas – Wärtsilä Marine and Wärtsilä Energy, both covering new sales and services. With this change, Wärtsilä aims to deliver better value and serve to customers. The new structure will be in place as of 1 January 2019.

Net natural gas exports from the United States are spiraling up as more and more LNG export capacity comes into operation. From January through June of 2018, net gas exports averaged 0.87 billion cubic feet per day (Bcf/d), , which is more than double the average daily net exports during all of the previous year, at 0.34 Bcf/d.

Rolls-Royce, one of Britain’s leading engineering companies, has bought a stake in the Berlin-based energy storage and systems start-up Qinous. Marcus Wassenberg, CFO at Rolls-Royce Power Systems called the acquisition a “strategic investment” aimed at setting up a partnership to “develop of innovative energy storage solutions to meet tomorrow’s needs.”

Siemens and the Scottish energy company SSE work together to build the high-efficiency gas power station Keadby 2 in Lincolnshire. The consultancy Timera Energy, however, questioned the economic viability of SSE’s decision to invest £350 million in the 840 MW unit, considering the £8.40/kW clearing price in the 2018 UK capacity auction.

Singapore’s SP Group has contracted ABB to supply its DC fast-charging stations as part of an initiative in Singapore to accelerate the adoption of e-mobility in the city-state. In total, ABB will install 500 EV charging points across Singapore by 2020.  

Gazprom is forging ahead with construction of the Amur Gas Processing Plant – the world’s second largest gas processing facility and a critical part of Russia’s Power of Siberia pipeline. The first heat exchanger, produced by Linde and Severgroup, has just been delivered from St. Petersburg to the construction site near the city of Svobodny, Amur Region, close to the border with China.

Uncertainty looms large over what effect of battery electric and plug-in hybrid vehicles (EVs) will have on worldwide energy consumption in the long run. Technological change, state subsidies and consumer choices are the three key parameters to determine future demand, with EV sales forecast to double from low levels by 2040.

News in Brief

IEA reviews Brazilian gas market

Oct 15 – The International Energy Agency (IEA) has published a review of the opening of Brazil’s natural gas transportation system. Through its Gás para Crescer initiative, the Brazilian government sets a plan to liberalize the local energy market by enhancing the build-out of natural gas and electricity interconnectors, unbundling of TSOs and implementing of network codes.

Global GT market looses value

Oct 12 – Though Asia emerges as No.1 market for gas turbines, the overall value of the global gas turbine market  is forecast to decline over the coming five years. According to a Global Data report, the market value between now and 2022 will be $37.97 billion, down compared with $52.39 billion in the 2013-2017 period.

FERC approves $6bn CenterPoint/Vectren merger

Oct 11 – US Federal Energy Regulatory Commission (FERC) has approved the $6 billion merger of CenterPoint Energy and Vectren, whereby shareholders of the latter will be paid $72.00 in cash for each CenterPoint share. Vectren CEO Carl Chapman welcomed the ruling and added the companies “now anticipate a closing no later than the first quarter of 2019.”

Dürr buys part of Babcock & Wilcox

Oct 10 – Dürr Group, a Germany-based mechanical and plant engineering firm, has completed the acquisition Babcock & Wilcox’ (B&W) industrial environmental technology business. The takeover broadens Dürr’s portfolio on exhaust-air purification technologies, with a workforce of around 1,500 and estimated sales of € 400 million.

Azure achieves $12.50 per share

Oct 9 – India-based Azure Power Global Ltd has priced its underwritten public offering of 14,800,000 equity shares at a price of $12.50 per equity share. The company also granted underwriters a 30-day option to purchase up to an additional 1,200,000 shares at the same price, less underwriting discounts and commissions. The offering will close on October 10, 2018.

Global gas use grows at 2%/yr

Oct 8 – The International Gas Union (IGU) expects global gas consumption to grow by 1.6 to 2% per year in the coming decades. “Competitiveness, affordability, and eco-friendliness will remain essential in that regard,” said IGU President Joe M. Kang.

Financing agreed for EVM-II plant in Mexico

Oct 5 – A financing package of $740 million has been agreed for the Energias del Valle de Mexico II (EVM-II) combined-cycle power plant. Commercial banks involved in the financing were led by BNP Paribas, Citi, SMBC, and Mexico’s Banco National del Comercio Exterior. Milbank served as legal advisor.

MAN wins award for small-scale LNG paper

Oct 4 – A whitepaper by MAN Energy Solutions entitled ‘Small-scale LNG - powering the future of Asia’s island communities’ has won the Best Paper Award at this year’s Power-Gen Asia trade show. The paper ties in with MAN’s new strategy to deliver the entire value chain from small scale regas and import terminals to decentralized gas- and dual-fuel engine, and turbine-driven power plants. Carsten Dommermuth, International Business Development Manager, said “this setup is a real advantage for customers seeking to source a complete LNG-to-Power solution from the same provider.”

IEA laments steep drop in clean energy investment

Oct 3 – The latest steep drop in clean energy investment is “worrying,” according to Fatih Birol, head of the International Energy Agency (IEA). Official figures show spending on renewables fell to $298 billion worldwide in 2017, down from $318bn in the previous year, marking the biggest absolute fall on record.

Siemens closes Mendix acquisition

Oct 2 – The German engineering conglomerate Siemens has closed the Mendix acquisition, just eight weeks after the transaction was first announced. Part of Siemens’ Vision 2020+ strategy, the integration of Medix digital platform is aimed at creating new SaaS solutions and extensions, particularly for the Digital Enterprise Software, MindSphere.

Merger of BASF Wintershall and DEA goes ahead

Oct 1 – BASF Group has agreed to merge its German oil and gas business BASF Winterhall and with Deutsche Erdöl AG (DEA), owned by the Russian investor group LetterOne. The joint venture will operate under the name Wintershall DEA.

Toshiba splits R&D for Power and Industrial Systems

Sept 28 – Toshiba Corp has announced it completed all necessary steps to separate its Power and Industrial System Research and Development Center and transfer the R&D on electricity to Toshiba Energy Systems, while research on industrial systems will be taken over by the company’s infrastructure arm. The split take effect on October 1.  

Gazprom’s supply to Austria up 34%

Sept 27 – The Russian gas major Gazprom has delivered record volumes to its Austrian partner OMV after an existing longterm contract was extended in June to run through to 2040.  From January 1 through September 23, 2018, Gazprom delivered 7.8 billion cubic meters (Bcm) of gas to Austria, a 34.5% rise compared with the same period last year. Full-year 2017 export volumes amounted to 9.1 Bcm.

Keystone XL construction to start in 2019

Sept 26 – TransCanada has received a key permit for $8bn Keystone XL pipeline, with the U.S. State Department ruling the 1,900km pipeline will not have any significant impact to either water or wildlife. Construction is now slated to start next year.

ABB partners with UBC

Sept 25 – Zurich-based ABB has entered a 3-year partnership with the University of British Columbia (UBC), focusing on biometric sensing. ABB will provide a total of $300,000 in funding ($100,000 per year), which will be matched by the Government of Canada.

GE launches ServiceMax 18.3.

Sept 24 – GE Digital has launched Service Max 18.3., a new version of its Predix ServiceMax Field Service Management (FSM). The new solution is said to give service technicians greater autonomy, dispatchers with more robust decision-making tools which utilities to better plan and execute complex service projects.

Aramco collaborates with Schneider Electric

Sept 21 – Saudi Aramco has signed a Memorandum of Understanding (MoU) with Schneider Electric to work together on various advanced digital technologies, including virtual reality. The MoU is one of several accords to support the Aramco’s 2020 Transformation Programme and the kingdom’s own Vision 2030 economic blueprint.