Daily News

The complexity of proposals to establish a Feed-in Tariff with a Contract for Difference (CfD) under the UK's draft energy bill is freezing new investment. "The proposal has now arguably become unworkable," the Common's energy and climate change select committee warned today.

The price of carbon emissions allowances is set to recover this week, Société Générale forecast, suggesting the Dec 12 EUA  contract is "very close to being oversold". As for gas, the bank sees more downside for prices all along the future curve.

Wainstones Energy, a subsidiary of Carlton Power, is evaluating suppliers as is close to purchase a flexible turbine for Carlton Power's 1,520MW gas-fired Trafford power plant project.

Aggreko, a UK-based interim power solutions provider, has commissioned and started power production at a 107.5 MW interim gas-fired power plant in Mozambique.

Abu Dhabi National Energy Company (TAQA) has received the requisite parliamentary approval and signing financing arrangements for the 110 MW expansion of the gas-fired Takoradi 2 power plant in Ghana. The expansion will be commissioned in 2015, operator TAQA said.

The introduction of a strategic reserve capacity is more effective and better compatible with the current energy-only market model than a capacity payment scheme, according to an Ecofys study published today on behalf to the German federal environmental ministry (UBA).

Turkey's top administrative court has suspended construction works at OMV's power plant project on farmland in the Black Sea province of Samsun.

Siemens Energy has won an order to build the 758 MW Panda Temple Power Plant in Texas, U.S., in consortium with its partner, Bechtel. The combined-cycle power plant (CCPP) is scheduled to come on line in 2014, at a time when the Texas market is predicted to be short of capacity.

Subsidies are not the right approach to encourage investment in new gas-fired power plant projects in Germany, environment minister Peter Altmaier told the business daily 'Handelsblatt' late Wednesday.

Turkey's electricity consumption saw an 11.3% year-on-year increase to 20.0 terrawatt hours (TWh) in June, data released by the Turkish statistical institute shows. The county's energy consumption almost doubled over the past ten years.

Russia's RAO Energy Systems has applied for a loan from the European Bank for Reconstruction and Development (EBRD) to build a new gas-fired combined heat and power (CHP) plant in Vladivostok.

French investment bank Societe Generale has revised down its 2013 gas price estimate as it expects a rising supply of already contracted Russian gas volumes amid tepid demand in Europe to weigh on gas prices. The bank recommends selling the NBP Summer 13 contract.

Alstom has won a contract to undertake a boiler study for Shanghai Waigaoqiao No.3 Power Generation Co, Ltd. The study will is scheduled to be completed by the end of August.

Wärtsilä, a supplier of diesel and natural gas engines, has won a contract to supply a 384 MW gas power plant to Azerbaijan's state-owned utility Azerenerji JSC. "In terms of output, the project is the largest single power plant order that Wärtsilä has received to date," the Helsinki-headquartered company said today. The order is included in Wärtsilä's second quarter 2012 order book.

Gas generating capacity in the U.S. has surged by 96% over the past twelve years period starting from 2000, as historically low gas prices increase the utilization rates of combined cycle plants at the expense of coal-fired units.

News in Brief

Floating power market to top $1.4bn by 2022

Sept 22 – The floating power plant market is expected to grow from an estimated $889.6 million in 2017 to $1,440.1 million by 2022, at a cumulated annual growth rate of 10.11%, from 2017 to 2022. Driving factors, according to MarketsandMarkets, are increasing demand for power, coupled with the lack of land-based power generation infrastructure.

ITM Power sells 1.1-MW power-to-gas plant to Gasunie

Sept 21 – UK hydrogen specialist ITM Power has sold a 1.1-MW power-to-gas electrolyser to EnergyStock, a subsidiary of Dutch gas grid operator Gasunie. The rapid-response PEM electrolyser will be deployed at the Zuidwending salt cavern storage; the generated hydrogen will be used on-site within EnergyStock's systems or dispensed into tube trailers for future hydrogen refuelling stations.

CCGT market to grow at 4.25% through to 2021

Sept 20 – The combined-cycle gas turbine market is forecast to grow at an annual rate of 4.24 % during the period from 2017 to 2021. Renewable energy’s high initial cost is still proving to be a major driver for the global CCGT market that offers a lower cost of power installation than renewable and nuclear energy.

GE to build four substations in Egypt

Sept 19 – Egyptian Electricity Transmission Company (EETC) and GE have closed a $250 million contract that will see GE build and install four Gas-Insulated Substations (GIS) across Egypt to connect 7 GW to the country’s national power grid by the end of 2018. The contract is fully financed through Deutsche Bank and HSBC France which helps secure smooth execution of the project.

Irma slashes energy demand in Florida

Sept 18 – Hurricane Irma has proved to be a demand-side event in Florida. At its trough, the state appeared to lose 1.9 bcf/d of demand versus pre-storm levels, mainly in the power sector. According to Energy Aspects figures, electricity demand on September12 dropped to 0.8 bcf/d, compared to a pre-storm baseline of 3.6 bcf/d.

Drax plans to convert two coal units to natural gas

Sept 15 – Drax Group has filed plans to the UK Planning Inspectorate to build a 200MW battery storage unit, and convert up to two coal units at the Drax power station to run on natural gas. If approved, the repowering could result in up to 3.6 GW of new flexible gas generation capacity. The utility stated its investment at Drax is backed by a 15-year capacity contract.

Azura Edo IPP ready to startup in early 2019

Sept 8 – Siemens-built Azura Edo Independent Power Project (IPP) is planned to add 459MW to the Nigerian national power grid by early 2019, Siemens Nigeria CEO Onyeche Tifase said. The Azura Edo IPP is an open-cycle gas turbine power plant project, which could potentially account for up to 20% of Nigeria’s installed capacity of 12.5MW by 2020.

Oman’s oil output hits new record

Sept 7 – Oil production in Oman has reached a new record, totalling 1 million barrel per day (b/d) in 2016. Dependent on revenues from oil and gas exports, Oman’s state finances have been hit by the plunge in oil prices which made 2016 oil and gas revenues plunge 67% compared with 2014 levels.

Petrofarc to build South Stream

Sept 6 – UK contractor Petrofarc won an engineering, procurement and construction (EPC) contract worth 340 million Euros ($404m) by the Gazprom-owned South Stream Transport company to build onshore pipelines and a gas receiving terminal near the Turkish town Kiyikoy.

Gas prices slowly return to normal after Harvey struck

Sept 5 – The price of natural gas and other petroleum products has surged in the aftermath of Hurricane Harvey. Yet as of Monday, key gasoline prices started to return to pre-Hurricane levels as key refineries and pipelines along the US Gulf Coast are resuming operation, easing supply concerns.

ACER to set deadline

Sept 4 – The European energy regulatory authority ACER is consulting until September 15 on an implementation date for harmonized prices in the EU's day-ahead and intraday power markets. Introducing maximum and minimum prices is meant to enhance market coupling.

Pöyry to review Shoaiba-4 plant

Sept 1 – The Saline Water Conversion Company (SWCC) has awarded Pöyry with the owner's engineer services assignment for the Shoaiba-4 desalination plant which will meet the potable water requirements of Saudi Arabia's second largest city and its five million people. Pöyry's scope includes review of contractor's engineering and supervision of construction, erection and commissioning.

Wärtsilä wins 220 MW power plant contract in Bangladesh

Aug 31 – Desh Energy Chandpur Power Company, an independent power producer (IPP) in Bangladesh, has contracted Wärtsilä of Finland to supply twelve 18-cylinder Wärtsilä 50 engines for a new 220 MW baseload power plant to be installed in Chandpur. The customer required a nine-month implementation time, with the plant due to be fully operational in May 2018.

Works start on Hickory Run CCGT

Aug 30 – Tyr Energy has started construction works on the Hickory Run Energy Center in Pennsylvania. The combined-cycle gas power plant has a nominal generating capacity of 1,000 MW.

Canadian Cats dealers merge

Aug 29 – Toromont Industries will acquire the businesses and net operating assets of fellow Canadian Caterpillar dealer Hewitt Group. The deal was agreed in turn for C$917.7 million cash plus the issuance of 2.25 million Toromont shares, the two companies said.

Ansaldo to service Thai cogen plant

Aug 25 – Glow Energy, one of Thailand’s private power producers, has contracted Ansaldo of Italy to service a 328 MW cogeneration plant, located in Map Ta Phut Industrial Park, 200km southeast of Bangkok. Apart from electricity, the plant produces 160 tonnes/hour of steam to support local industries. Ansaldo’s 15-year service deal covers maintenance, replacement capital parts and remote monitoring and diagnostics for the gas turbine.

Low voltage drives for China

Aug 24 – Siemens is to equip several Chinese aluminum factories with medium and low voltage drives. The value of the order is in the low tens of millions Euros. Commissioning will be completed in several stages between November 2018 and April 2019.