Daily News

Poweo, an independent French power and gas company, today posted a net loss of €63.4 million in 2011, incurred primarily by losses in its power generation business. Revenue from power generation revenue dropped from €185 million in 2010 to €124 million last year due to unfavourable profit margins at its CCGT power plant at Pont-sur-Sambre (412 MW).

Natural gas consumption in India and China has witnessed annual growth rates of 14% and 18%, respectively, over the last five years. Inaugurating the 7th Asia Gas Partnership Summit, in New Delhi today, India's Prime Minister, Dr. Manmohan Singh highlighted the role of gas as "an efficient fuel for power generation".

Operators of gas-fired plants should be allowed to resell natural gas hubs back to virtual trading hubs as a way of offering demand-side responses on balancing platforms, Eurelectric said in a gas strategy paper today.

Mitsubishi Heavy Industries (MHI) has received orders for ten M501J gas turbines for installation at four power plants in South Korea. The order from South Korea marks the first for the J-Series gas turbine from overseas, MHI said today.

The board of directors of Poweo, a French independent power distributor, and its peer Poweo have approved a merger, the two companies announced late Wednesday.

Electricity prices in Turkey have surged as markets are concerned about a looming reduction in Russian gas supply as well as bottlenecks in the country's gas transmission infrastructure, energy traders told ‘Gas-to-Power Journal’.

Tata Power has emerged as India's largest private sector power generating company as the start-up of the second unit (525 MW) of its Maithon Mega Power Project in Dhanbad lifts the company's overall power generation to 5,297 MW.

E.ON, the world’s largest utility by sales, is not planning to mothball any of its gas-fired power plants in Germany, despite the negative impact of oil-indexed gas purchase on the economics of operating power plants, a spokesman said today.

International Power proposes to close the 210 MW Shotton Combined Heat & Power (CHP) plant by the end of 2012. The 210 MW plant is no longer competitive in the U.K. wholesale electricity market, the operator said today.

Austria’s Verbund is going ahead with works to start-up the proposed 412 MW Toul gas-to-power plant as planned in 2013, despite loss-making operations at the Poweo’s Pont-sur-Sambre combined cycle gas turbine plant (CCGT). “The Toul CCGT does not have a gas contract with Eni,” Verbund spokeswoman Ines Schurin told ‘Gas-to-Power Journal’, implying operations of the Toul plant are expected to be profitable.

Mitsubishi Heavy Industries (MHI) announced today it has won an order from Virginia Electric and Power Company (VEPCO) to supply three M501GAC gas turbines and one steam turbine for VEPCO's Brunswick County Power Station, located some 60 miles south of Richmond, Virginia, U.S.

Electricity generated from gas still has an important role to play over the coming decades as the U.K. transitions to a low carbon economy, Energy and Climate Secretary, Edward Davey, said. "We can't take our foot off the gas for some time yet," he said with reference to the closure of a fifth of the UK's ageing fleet of power stations this decade.

Karachi Electric Supply Company (KESC), the sole vertically integrated utility in Pakistan, has failed to restart operations at its Bin Qasim Power Plant II due to a lack in gas supply for the plant. Operational start of the plant depends on Sui Southern Gas Company (SSGC) supplying an additional 130 million cubic feet per day (Mmcf/day) to the plant.

French investment bank BNP Paribas sees "little hope" that the U.S. gas industry will sell more gas to electric utilities during the upcoming peak summer month based on increased cooling requirements.

Demand for natural gas in the EU will reach pre-crisis levels only by 2018, the French investment bank Société Générale said in a recent report.

News in Brief

ABB enhances power supply for Canadian data centre

May 25 – Zurich-headquartered ABB will supply an integrated substation to the Canadian IT solutions provider Hypertec to support the expansion of one of its existing data center. As part of the upgrade, the existing 25 kilovolts (kV) power supply will be enhanced to 120kV to meet growing electricity demand. The turnkey project includes the design, supply, installation and commissioning of the 120kV Gas Insulated Switchgear (GIS) substation with 25kV distribution. ABB said the project is expected to be completed by the end of 2017.

German gas, coal-burn up in Q1

May 24 – Germany’s total primary energy consumption dropped 1.4% yoy in the first quarter of 2017. But despite lower demand for electricity, the use of natural gas for power generation increased by 1%, while use of hard coal and lignite were 2.6% and 0.4% higher respectively, according to figures by the energy industry think tank AG Energiebilanzen (AGEB).

Siemens wins 3D printing award

May 24 – An award in category "3D Printing application of the year" was given to Siemens for the worldwide first successful test of gas turbine blades manufactured with Additive Manufacturing. At the start of 2017, a multi-location Siemens team successfully tested the performance of the first gas turbine blade, produced through AM, under full-load conditions

Wolf Power, Myriad start CHP cooperation

May 23 – Wolf Group, a German supplier of combined heat and power systems, has entered a cooperation with Myriad Power Products, an equipment supplier based in Leicestershire, UK. Myriad can supply chip, pellet and gas heat only/ CHP systems from 10kW to 10MW; it is about to bid for public sector contracts in the UK and some other smaller clients.

Verisk acquires MAKE

May 23 – Verisk Analytics, part of Wood Mackenzie, has announced its latest acquisition of MAKE, an advisory that specializes in wind power. This latest acquisition follows WoodMac’s takeover of Greentech Media in July 2016.

OPEC’s net oil revenues on 12-year low

May ‎22 – Members of the Organization of the Petroleum Exporting Countries (OPEC) net oil revenues have plunged to $433 billion in 2016, the lowest since 2004. In real dollar terms, the 2016 revenue represents a 15% decline from the $509 billion earned in 2015. The EIA projects that OPEC’s 2017 net oil export revenues will rise to about $539 billion dollars (nominal), based on a slight recovery in average crude oil prices, as well as higher OPEC output during the current year.

Burckhardt to help modernize MOL petchem plant in Hungary

May 19 – Burckhardt Compression has won an order to modernize MOL Petrochemicals’ third-party Hyper Compressor at its LDPE plant in Tiszaújváros, Hungary, that has been operating since 1991. Burckhardt Compression is well-known for its Hyper Compressors and the MOL Group already has positive experiences working with the Swiss manufacturer at another LDPE site. The project scope includes the Burckhardt Hypropack cartridge system, plungers and central valves for two second-stage cylinders.

Pumps, motor market to top $100bn by 2021

May 19 – Upgrades of ageing power infrastructure, a rise in renewable energy investment and a progressing urbanisation is driving the markets for pumps and motors to reach $100.66 billion by 2021, up from 71.01 billion last year. According to MarketsandMarkets, growth of notably the market for ‘permanent magnet synchronous motors’ is spurred by power plant modernization, as well as demand for energy-efficient motors and use of low-cost ferrite permanent magnets.

MHPS opens new Warsaw office

May 18 - Mitsubishi Hitachi Power Systems (MHPS) is opening a new office in Warsaw, to strengthen its relationships with local customers and bolster orders for advanced coal power generation systems and Air Quality Control Systems (AQCS). The new branch office centralizes MHPS' corporate and business development function for Poland in one single location.

Low utilisation of US oil peaking plants

May 18 – Monthly generation from petroleum-fired generators has totalled 1 million to 2 million MWh in recent years, according to EIA figures. Most of the 36.4GW installed oil-fired generators in the United States, either turbines or internal combustion engines, only supply peak-load electricity. Capacity factors for oil-fired steam turbines are about 10% and approach 20% only in the summer months. Capacity factors for oil-fired combustion turbines and internal combustion engines are lower, remaining well below 5%.

Wärtsilä wins 5-year O&M deal in Pakistan

May 17 – Helsinki-based technology group Wärtsilä has signed a 5-year full operations and maintenance (O&M) agreement with Pakistan’s Technomen Kinetics Private Ltd (TKL) for two of the latter’s gas-fired power plants. Wärtsilä’s installed base in Pakistan totals around 2.2 GW power generating capacity, with 600 MW of power output under service agreements.

MAN helps CNOOC tap offshore gas in South China Sea

May 17 – CNOOC China’s branch in Zhanjiang, a city in south-western Guangdong province, has commissioned MAN Diesel & Turbo to supply six compressor trains for the Dongfang 13-2 gas field development project. Manufactured by in Switzerland by MAN, the compressor trains will be used for gas reinjection at new platforms in the Dongfang field, located in the Yinggehai Basin of the South China Sea.

New man at the helm of COGEN Europe

May 16 – COGEN Europe has appointed Hans Korteweg as new managing director. His leadership starts at a time of ongoing debate about the EU’s Clean Energy Package, aimed at ensuring a safe and cost-effective energy transition.

Wärtsilä snaps up Greensmith

May 16 – Wärtsila has agreed to buy Greensmith Energy Management System, an US energy storage technology provider, for an undisclosed amount. The acquisition of Greensmith is still subject to US regulatory approvals; it will allow Wärtsilä to expand its latest focus on energy storage. The Finish turbine manufacturer stated it expects the takeover to take legal effect no later than July 2017.

Dresser-Rand supplies compressor trains for Thai pipeline

May 15 – Dresser-Rand, part of Siemens Power and Gas, will supply three SGT-400 gas turbine-driven turbocompressor trains for Thailand’s Wang Noi compressor station, located 70 kilometers from Bangkok. The station is currently being built by Samsung Engineering; it is owned by PTT Public Company, Thailand’s state oil & gas company. The compressor station project is expected to be completed in 2018; it will enhance the capacity of the Ratchaburi - Wang Noi pipeline to meet the increasing natural gas demands of nearby power plants.

Turbocompressor markets grows 6.5% per year

May 12 –Global turbocompressor market is seen expand at a rate of 6.5% per year to reach $18,424 million by 2022, up from $11,703 million in 2015.Turbocompressors are highly used in dirty and corrosive applications such as petrochemical plants, refineries, natural gas processing, coal gasification & power stations due to their longer life, low maintenance, and continuous service. According to Allied Market Research, the oil & gas sector is currently dominating end-user demand for turbocompressors.

Energy storage market to hit $16bn by 2020

May 11 – Advanced energy storage systems market is estimated to be worth $15.96 billion by 2020, growing at a CAGR of 4.4% during the forecast period, according to MarketsandMarket estimates. Technologies included pumped hydro energy storage as well as battery power storage. The dominant manufacturers – such as Toshiba, ABB, Siemens, Voith, Alstom and Dominion Energy – are trying to penetrate developing economies to grab a bigger market share.