Daily News

Norwegian state-owned utility Statkraft aims to start power production at the Knapsack II combined cycle power plant (430 MW) by this summer. "Operations of Knapsack II - a modern CCPP with a highly state of the art efficiency - will benefit from synergy effects with the already existing plant Knapsack I plant," Torsten Amelung, Managing Director and Senior Vice President Trading, Origination & Business Development, Statkraft Markets GmbH.

Siemens has posted an overall 3% decline in new orders in the first fiscal quarter of 2013 amid weakening industrial demand for products from its 'automation & drive' sector. Revenue from its 'energy' segment continues to grow.

In the face of persistently high oil-indexed gas prices in Asia, the Institute for Energy Economics in Japan (IEEJ) calls for demand-side response and urges operators to improve the efficiency of gas-fired power plants.

2013 could be the year in which the share of total European supply priced under oil-indexed formulas falls to less than 50%. "We believe this could be a tipping point," says SocGen analyst Thierry Bros.

Despite the quest of the Chinese government to fast-track developing domestic shale gas reserves to underpin new gas-fired power plant projects, analysts stay sceptical. 

"We remain cautious about the potential of shale gas in China," says Gavin Thompson, Principal Consultant, Asia Pacific Gas & Power at Wood Mackenzie. "The proven reserves in China are incredibly low, most of the terrain is very rough and challenging and the companies involved are inexperienced in terms of technological expertise in extracting gas," he told Gas to Power Journal by phone from Beijing today.

Malaysian state-controlled Tenaga Nasional Bhd (TNB) has sealed three agreements covering the development of a RM2.47 billion (US$810 million) combined cycle gas-turbine power plant (1,017 MW) in Seberang Prai, Penang.

Shell targets a growing engine oils segment with its new sour-gas compatible lubricating oil. "There could be a 10% sales growth in the stationary gas engine oils segment this year," Richard Holdsworth, Global Brand Manager for Shell Power Lubricants told Gas to Power Journal.

The UK Energy Bill in its current form is "unlikely to realise this potential" of Combined Heat and Power Generation, says Graham Meeks, director of the British Combined Heat & Power Association (CHPA). He called on policy makers to extend the small scale Feed-in Tariff capacity threshold in addition to the proposed Contracts for Difference (CfD).

Siemens Energy Service has signed a multi-year extension of a Long-Term Service Program (LTP) contract for Phu My 3 gas-fried combined-cycle power plant (740 MW).

The plant is Vietnam's first large-scale build-operate-transfer (BOT) financed power plant and is located in Ba Ria, Vung Tau Province. Since starting operations in 2004, it contributes reliable base load electricity supply to the Vietnam's power grid.

A cold spell in the US Northeast has propelled up forward gas prices in New England fourfold to levels rivalling north-western European prices, which could lead to an increase in LNG imports, the US Energy Information Administration (EIA) said.

GE will deliver and install five ecomagination-qualified, Jenbacher cogeneration systems at a new datacentre that China National Petroleum Corporation (CNPC) is building in the Beijing district of Changping.

Macquarie Group Ltd. (MQG), Australia's largest investment bank, has bought a second gas-fired power plants in the U.K., taking a long-term view that profitability of burning gas will improve.

Singapore conglomerate Keppel Corp's energy unit is mulled to consider taking a 30% stake in a cogeneration plant of Malaysia's oil and gas giant Petronas with a view to importing electricity.

The economics of gas generation in India hinge on peak production and buyers need to be prepared to pay higher prices for reliable power supply at times of peak demand, says Rajeev Mathur, executive director marketing at the Gas Authority of India Ltd (GAIL).

German investors eye new Combined Heat and Power (CHP) projects to benefit from upgraded support schemes and as public acceptance for new coal-fired power plants in densely populated areas reached a low point.

News in Brief

German coal plants “worthless” at CO2 of €45/t

Feb 16 – Coal power plants in Germany would have to be almost completely eliminated by 2030 in a scenario with a carbon price of €45/t, a study of Barclays bank finds. A total of 46,000-MW of black and brown coal-fired generation is currently in service in Germany.

Iran plans to add 40 decentralized gas gensets

Feb 15 – Off-grid, decentralized power supply will help avert electricity shortages in Iran’s northern provinces of Mazandaran and Golestan. To that end, the Iranian energy ministry launched a plan to build 40 small-scale power plants across with a combined capacity of 1,000 MW over the two provinces over the coming six years.

National Grid makes £1m for top projects

Feb 14 – The UK’s National Grid System Operator is reaching out to industry and academia to open up a discussion on priority investments across the GB gas and electricity systems. Up to £1 million is available for the top projects, National Grid said when opening the funding application process which closes on 28 February.

Wärtsilä renews O&M accord for Saudi power plant

Feb 13 –Saudi Arabia-based Hail Cement Company hasrenewing the three-year asset management agreement with Wärtsilä and for a power plant in Turbah, Saudi Arabia. Under the agreement, Wärtsilä provides guarantees for the performance of the 53 MW base load plant, equipped with seven Wärtsilä 32 gas engines.

Black & Veatch eyed as EPC contractor for £500m Wyre plant

Feb 12 – Wrye Power, a subsidiary of NPL Group, and China Machinery Engineering Corporation (CMEC) have hired Black & Veatch as EPC contractor for the £500 million Wyre power project. Black & Veatch will provide engineering and planning consultancy services to develop the 900 MW combined cycle gas turbine plant, which will be built at Fleetwood in Lancashire.

Lockyer Valley Energy Project gets environmental nod

Feb 9 – The Lockyer Valley Energy Project, a 1,000-MW gas-fired power plant formerly known as the Westlink Project, has received environmental approval from the US Federal Government. As part of the approval, Quinbrook Infrastructure Partners, the developer of the plant, has been ordered to commit up to $800,000 for an environmental offset plan.

GIP buys NRG Yield

Feb 8 – Global Infrastructure Partners (GIP), an independent infrastructure investor, has agreed to acquire NRG Energy’s US renewable energy platform for $1.375 billion in cash and provide backstop support for NRG Yield agreed purchase of the Carlsbad Energy Center project. NYLD is the second largest US power company by enterprise value and market capitalization, operating a total capacity of 5.1 GW, diversified across wind, solar, and natural gas technologies.

Rolls-Royce tests lean-burn combustion system

Feb 7 – Rolls-Royce has run a demonstrator engine featuring ALECSys (Advanced Low Emissions Combustion System) for the first time on a testbed in Derby, UK. Designed for future jet engine programmes, ALECSys may be adapted for the power generation segment at a later stage.

Just Energy takes over EdgePower

Feb 6 – US retail energy provider Just Energy Group announced today it has agreed to acquire all shares or EdgePower, a privately-held energy monitoring company. Based in Aspen, Colorado, EdgePower provides lighting and HVAC controls, as well as enterprise monitoring in hundreds of commercial buildings across North America

Pöyry to carry out EPC for cogen project in Finland

Feb 6 – The Finnish utility Pori Energia has selected Pöyry to carry out project management, basic and detail engineering and procurement services for 90-MW Aittaluoto combined heat and power (CHP) plant project. The construction of the new cogeneration power plant will be completed by mid-2020, and once operational Pöyry will replace some of the boiler capacity at Aittaluoto.

Kosmos advances FLNG offshore Senegal

Feb 5 – Kosmos Energy has completed drilling the Requin Tigre-1 exploration well in Senegal’s Saint Louis Offshore Profond block. Exploration of the deepwater Cretaceous petroleum systems offshore Mauritania and Senegal are part of Kosmos’ efforts to source more feedgas for a FLNG project, though some of the gas find will be reserved by local governments for power generation.

Eland gets involved in Innovate UK project

Feb 2 – Participating in a £1 million Innovate UK grant-funded project, Eland Cables will install its new long linear capacitor cable technology, dubbed the Capacitive Transfer System (CTS) to help reduce power loss in the national grid. The UK currently loses around 7.6% of the power it generates during transmission and distribution, which equates to an estimated £1.1 billion spent annually.

Floating power market to quadruple by 2023

Feb 1 – The global Floating Power Plant industry is expected to surge exponentially by 2023, registering a growth rate of 10.23% during between 2017 and 2023, according to Market Research Future. Gaining full viability as a technology, floating power plants are being rolled out to guarantee uninterrupted electricity supply in remote locations that are not connected to national distribution grids.

Ener-Core, Dresser-Rand grid synchronize CHP

Jan 31 – Ener-Core’s first two 1.75-MW power oxidizers, integrated with Dresser-Rand KG2-3G gas turbines have achieved electrical synchronization with the power grid at the Pacific Ethanol bio-refinery in Stockton, California. The oxidizers are replacing the traditional gas-fired combustion chamber within CHP gas turbines, allowing industry customers to convert their low-quality waste gases directly into clean power, heat and steam.

Gazprom’s curbs domestic gas debt

Jan 30 – Accumulation of overdue debt for gas supplies remains a problem for the Russian gas market. According to Gazprom data, the total outstanding debt reached RUB 170.7 billion ($3.03bn) by January 1, 2018, an increase of RUB 9.8 billion ($173m) from early 2017. Among the most problematic non-payers are heating suppliers, which account for about 35% of the debt and two-thirds of debt growth.

Global gas demand up 3%

Jan 29 – Spurred by China’s green energy policy, global gas demand increased 3% year-on-year in the first three quarters of 2017, according to Cedigaz figures. The Paris-based research institute criticized that investments made upstream and in liquefaction infrastructure have been “insufficient” in recent years, with Coral the only LNG export venture to take a final investment decision last year.

UKPR launches iGrid App for Android

Jan 26 – UK Power Reserve has launched an Android version of its iGridUK app, providing near real-time information about the energy market, such as generation by fuel type and peak demand. The release complements the popular iGridUK app for Apple.