Daily News

Anglo-Russian oil and gas producer TNK-BP is close to strike a $6 billion gas supply contract over 18 years with Russian power generator TGK-5, dealing yet another blow to Gazprom.

Coal, in contrast to gas generation, has limited prospects to expand its global marked share amid a decline in coal quality and tightening environmental legislation, according to asset management group Axa Investment Managers.

German's largest utility Eon has confirmed it will shut-down 1,037 MW of gas-fired power generation capacity, mothballing both it the 622 MW Staudinger 4 plant unit and the 415 MW Irsching 3 unit by the end of this year. The plants will operate as winter reserve, once E.on has transferred responsibility to the regulator BNA.

Norwegian oil and gas major Statoil has selected Siemens' PostCap process for phase-3 in the technology qualification program for the carbon capture and storage (CCS) plant at the combined-heat and power plant at the refinery in Mongstad. The final phase of the qualification process will come to an end in April 2013.

Deployment of carbon capture storage (CCS) technology will allow for more coal and gas to be used than without CCS, Sean McCoy, analyst at the International Energy Agency (IEA) told Gas to Power Journal.

"More than two thirds of today's fossil fuel reserves would have to remain un-burnt and in the ground in the absence of CCS," he said referring to the IEA's World Energy Outlook 2012.

The City watchdog, the Financial Services Authority (FSA) is investigating claims by a whistleblower that price assessments of Britain's £300bn wholesale gas market have been "regularly manipulated" by some big power companies.

Germany's federal energy network regulator (BNA) should urgently improve compensation for operators of flexible power plants that have to ramp up or down to maintain grid stability, the German energy industry association BDEW told Gas to Power Journal.

While Iraq's energy sector competes with a host of other spending needs in Iraq, one urgent priority for the government is to catch up and add new power generation capacity to keep pace with rising electricity demand, say analysts from the International Energy Agency (IEA).

UAE-based Dolphin Energy has awarded a $250 million contract to Larsen & Toubro (L&T) to install three new Rolls Royce Trent gas turbine compressors to upgrade the gas processing plant at Ras Laffan by end-2014.

Japanese utilities are gearing up to add about 18 GW of gas-fired capacity over the coming ten years, boosting the country's capacity by 30 percent to counterbalance for lost nuclear capacity and cater for rising electricity demand, analyst forecast.

Natural gas is the only fossil fuel for which global demand grows in all scenarios, showing that it "fares well under different national policy condition", the International Energy Agency (IEA) said in its 2012 Outlook, released today.

EDF Energy has pushed back the date to start commercial operations of unit 3 at its new British 1,300 megawatt West Burton gas-fired combined-cycle power plant to early 2013, dismissing plans to fully commission the entire plant before the end of this year.

FirstEnergy Corp. and American Municipal Power Inc. (AMP) have signed a non-binding Memorandum of Understanding (MoU) to site, build and operate a natural gas peaking plant at a brownfield site on the grounds of FirstEnergy's operational Eastlake plant in Ohio.

Panda Power Funds has started construction works for the 758-megawatt (MW) gas-fired combined-cycle power plant in Sherman, Texas. Financing of the Sherman project was underpinned by a term loan.

Siemens, Europe's largest engineering company, plans to slash costs by 6 billion euros ($7.7 billion) in two years to counterbalance estimates of lower profits in the coming year. "We didn't fully succeed in significantly boosting our performance vis-a-vis competitors," chief executive Peter Loescher said today. "We know what we have to do, and we are doing it."

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.