Daily News

Mitsubishi Heavy Industries, Ltd. (MHI) is gearing up to develop basic technologies for a triple combined cycle power generation system integrating solid oxide fuel cells (SOFC) and a gas turbine combined cycle (GTCC) power generation system.

GE Oil & Gas has been commissioned to service two GE gas turbine-driven compression trains and additional plant equipment at Angola LNG's liquefaction facility in Soyo, Zaire Province in Angola.

China will more than double its natural gas consumption over the next five years, the International Energy Agency (IEA) forecasts in its Medium-Term Gas Market Report 2012, released at the World Gas Conference 2012.

"As gas competes against other energy sources in all market segments, notably in the power sector, pricing conditions are a key element to keep it competitive everywhere," IEA Executive Director, Maria van der Hoeven, said at the official presentation of the report on Thursday.

Haldia Petrochemicals in India has plans to retrofit one of its gas turbines with "uprated" parts this year. "This will reduce the heat rate and increase the efficiency as well as enhance the life of the components," Nirmallya Sen, Deputy General Manager (Mechanical) at the plant, told Gas to Power Journal in an interview. Turbine capacity will also be enhanced by three to four megawatts, he added.

Germany's gas consumption could rise markedly in the medium term as a result of the nuclear phase out – it could impact prices across Europe, say analysts. Much depends, however, on whether Chancellor Merkel's energy policy – alias 'Energiewende' – will ultimately work out.

In an effort to alleviate Tanzania's power shortage, Japan's Sumitomo Corp. and the Tanzania's state-controlled Electric Supply Co. have joined forces to build a 240MW gas-fired power plant at Kinyerezi in the Dar es Salaam Region of Tanzania.

Uncertainty surrounding China's future energy mix is alerting key global gas suppliers such as Qatar's Rasgas. "The Chinese power market is perhaps the biggest demand uncertainty in Asia. Coal has been the fuel of choice so far, but as environmental concerns increase, gas has a vast opportunity to have an increased role in the market," Al Mohannadi, general manager of the Qatari LNG producer Rasgas he told delegates at the World Gas Conference (WGC2012) in Kuala Lumpur on Wednesday.

E.ON, Germany's largest utility, is facing a loss in the lower double-digit million euro range on deals of an ex-trader. E.ON did not disclose whether the losses were incurred by traded contracts of natural gas or electricity in the forward market.

Vattenfall Europe has applied to local authorities for planning permission build a new gas-fired power plant in the city of Wedel near Hamburg. The plant is scheduled to start operations by the end of 2016 and will to replace an existing coal plant built in the 1960s, the Sweden-based utility said.

Investments in carbon capture storage (CCS) for new-built and operational power plants has a softening effect the carbon price - albeit not a big one, Energy Brainpool's chief analyst Tobias Federico said. Gas-fired power plants are allowed to operate without CCS until 2045 in the U.K., the Department of Energy and Climate Change (DECC) confirmed.

To launch capacity payment schemes at a national level in EU countries makes "no sense", said Philip Lowe, Director General for DG Energy in the European Commission. Only pan-European mechanisms could make sense and would support investment in new gas-fired plants, he said at Eurelectric's annual conference in Malta on Tuesday.

As renewable, intermittent wind and solar energy replaces traditional base load coal-fired and nuclear energy in Europe, the need for substantial sources of cost-effective backup power will be great, forecasts Eleazar Rodriguez, Director of Sales for Spain, Portugal and Latin America at Pratt & Whitney Power Systems.

The European electricity industry stands by its commitment to achieve carbon neutrality by 2050, but struggles with investors' lack of confidence and the low carbon price, delegates learned at Eurelectric's Annual Conference. E.ON CEO Johannes Teyssen, however, criticized the preferential treatment of renewable energies, which widely profited from generation subsidy schemes across Europe, causing market distortion.

Alstom, the French turbine manufacturer, has launched turbine shaft welding shop at its turbine factory in Elbląg, Poland. "This is the biggest investment made by Alstom Power in Poland this year," the Levallois-Perret-based company said without revealing the exact capital expenditure.

Mitsubishi Heavy Industries (MHI) has been contracted to perform the Front-End Engineering and Design (FEED) services for the gasification and power island of the Hydrogen Energy California (HECA) project. The FEED effort is already underway, MHI said today, forecasting works will be completed by March 2013.

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.