Daily News

The trend of gas displacing coal has accelerated in the U.S. as "the differential between gas and coal economics in the power generation sector has widened further," Deutsche Bank said in a research report today.

Operational startup of Gigawatt Mozambique's 100 MW gas-fired power plant is scheduled for the end of next year. Costs for realising the power plant project are estimated to total US$ 230 million, the privately held energy company confirmed.

The shutdown of two power plants in Nigeria - due to a lack of gas to fuel the plants - has exacerbated the country's electricity shortage. Operators were forced to shut down two gas-fired plants at Sapele in Delta State and Oben in Edo state for an undetermined timeframe.

Siemens Energy said today it has received a first order to supply a SGT-750 industrial gas turbine to a buyer in North America. Energia MK KF, a subsidiary of Grupo Kaltex, purchased the 36 MW turbine to power its textile facilities in Mexico.

Representatives of Germany's four biggest utilities have highlighted the need for new conventional power generation capacity to underping the transition of Germany's energy sector at an "energy summit" with Chancellor Angela Merkel.

Vattenfall plans to start operations of three combined-cycle gas turbine plants (CCGTs) in the Netherlands by the end of the year, boosting its Dutch power generation capacity by 2,181 MW.

Øystein Løyseth, Vattenfall's president and CEO, said today the Swedish utility is reviewing the profitability of its entire European power plant fleet. He refrained, however, from revealing whether there will be any power plant closures due to adverse economics in the near future.

Shell has awarded a contract worth US$30 million to Rolls-Rocye to supply two RB211 gas turbines to increase gas output from its Malampaya deepwater natural gas project in the Philippines.

Massive energy-related infrastructure investments worth US$300 million are on the cards in Saudi Arabia with the aim of linking new economic cities to the national power grid. The Saudi Kingdom is undergoing a phase of massive industrial development with electricity demand is expected to reach up to 67,000 MW by 2020.

Operational start of the third unit (840 MW) at the McDonough-Atkinson combined-cycle gas turbine (CCGT) power plant is under construction and slated to start in November this year. The addition of the third unit will bring the plant's total capacity to over 2,500 MW, the operator Georgia Power said.

Early site works to realize Oman's first gas-fired power plant (120 MW) have started at the waterfront site Tibat in Whilayat Bukha, Musandam Governorate. To fast-track the project, developers were granted permission to "forego the usual competitive tender process", Oman's ministry of information confirmed.

Mass Global Investment Company has awarded a contract worth US$16 million to ABB to build a substation and a SVC Light system that will supply electricity for industrial infrastructure in Northern Iraq. ABB said it received the order in the first quarter.

A consortium consisting of GE and a CH2M HILL-UGL joint venture has been awarded an order to provide power generation for the Ichthys LNG power station. The order is worth more than US$900 million, GE said.

Rolls-Royce, a global provider of power systems, said today it has won a US$30 million order from Shell to supply two industrial RB211 gas turbines to boost the output from the Malampaya deepwater natural gas project in the Philippines.

Analysts at Société Générale are "not overly optimistic" on an upside for German power prices. Spark spreads are likely to remain unattractive, while overall power consumption dropped, the French investment bank said in a research note.

Combined marketed production from the top five natural gas producing states - Texas, Louisiana, Wyoming, Oklahoma, and Colorado – has risen about 7.5% in 2011, according to latest EIA statistics. Abundant domestic supplies and low gas prices reinforce the trend among U.S. power producers of switching from coal to gas.

News in Brief

China’s gas production up 2.3% in Dec-2017

Jan 23 – Robust winter demand has propelled up gas prices in Northern China, prompting the government to ease restrictions on coal-burn for power generation. Domestic gas production subsequently increased. In December alone, gas production stood at 13.61 Bcm, up 2.3% year on year - the highest monthly rise since 2010, according to the National Bureau of Statistics (NBS).

Electric vehicle market on the up

Jan 22 – Electric car deployment is swift in some markets: In Norway, electric cars had a 29% market share last year, the highest globally, followed by the Netherlands with 6.4%, and Sweden with 3.4%. Globally, the number of electric cars on the roads rose to 2 million in 2016, following a year of strong growth in 2015, according to of the International Energy Agency’s latest Global EV Outlook. China was the largest EV market in 2016, accounting for more than 40% of new sales.

Bahrain to commence tight gas drilling

Jan 19 – Bahrain’s oil ministry is in talks with Schlumberger, Haliburton and others to start the development of its tight gas reserves in the course of this year, notably large deposits within the onshore Kuff reservoir. The drive to tap its own gas reserves complement’s Bahrain’s ongoing construction of an LNG import terminal, designed to balance seasonal demand.

Siemens rebrands its HSRG arm

Jan 18 – Siemens has rebranded and renamed its full subsidiary NEM Energy into Siemens Heat Transfer Technology (HTT). Headquartered in the Netherlands, NEM Energy mainly designs, engineers and sells components for power plants: Heat Recovery Steam Generators (HSRG), Waste Heat Recovery Units (WHRUs), Exhaust & Diverter Systems and related equipment.

CPUC rules to replace gas plants with energy storage

Jan 17 – California Public Utilities Commission (CPUC) has ruled that Calpine needs to replace three gas-fired peaking power plants with energy storage facilities by 2019, “if feasible and at a reasonable cost to ratepayers.” Calpine had initially sought regulatory permission to maintain “must-run status” for the two 47-MW peaking plants in Feather River and Yuba and a 605-MW gas power plant in Metcalf.

Control System market to top 6.2bn by 2022

Jan 16 – As more and more emphasis gets placed on alternative energy production, the market for power plant control systems is set to grow at an annual growth rate of 5.78%, expanding from $4.70 billion in the past year to $6.22 billion by 2022. According to MarketsandMarkets, top players in this electricity management are ABB, Siemens, Schneider Electric, Emerson and GE.

California to close last nuke in 2025

Jan 15 – The Public Utility Commission has reached an agreement with Pacific Gas & Electric (PG&E) to close California's last nuclear power plant reactors at Diablo Canyon by 2025. As the state’s largest power plant, Diablo Canyon currently covers 9% of California’s electricity needs.

Halyard hands out EPC contract for Texas peaking plant

Jan 12 – Lauren Engineers & Constructors has been awarded the engineering, procurement and construction (EPC) contract for a 348MW natural gas-fired peaking power plant in Texas from Halyard Energy Wharton, a part of Halyard Energy Ventures.

Bord Gáis to develop battery storage, not OCGT in Kilkenny

Jan 11 – Kilkenny County Council is processing an application Greener Ideas, a joint venture set up in 2009 between Bord Gáis Energy and Mountside Properties,for the construction of a 100MW battery energy storage system. Initially the project partners intended to develop an open-cycle gas turbines power plant on the site which is now listed for the battery project.

L&T commissions 360-MW Bheramara plant

Jan 10 – Larsen & Tourbo, the India-based engineering firm, has commissioned and handed over the 360-MW Bheramara gas power plant to North West Power Generation Company, a subsidiary of Bangladesh Power Development Board. L&T said it had carried out EPC for the plant which was built on a turnkey basis for Marubeni, with gas and steam turbines supplied by Mitsubishi Hitachi Power Systems (MHPS).

Floating power market to hit $1.4bn by 2022

Jan 9 – The floating power plant market is expected to grow from an estimated $889.6 million in 2017 to $1,440.1 million by 2022, growing at an average annual rate of 10.11% through to 2022. According to MarketsandMarkets, growth in this sector is spurred rising electricity demand in remote areas combined with benefits of floating vs. land-based power projects, e.g. issues related to land acquisition.

Israeli refinery to build 135-MW captive power plant

Jan 8 – ORL, Israel's largest refining and petrochemicals group, has confirmed plans to build a 135-MW gas-fired heat and power plant that will eventually be expanded to 340-MW. The cogeneration plant will produce both steam and electricity to power ORL's own operations, replacing an old coal-fired unit. Gas supply for the new CHP will be sourced via Energean from two offshore Israeli gas fields.

JERA sells 6% stake in New York gas power plant

Jan 5 – Japan’s JERA, a fuel joint venture between Tepco and Chubu Electric, has sold 6% of its equity interest in Cricket Valley Energy Center, the operator of 1,100-MW combined-cycle gas power plant under construction in Dover, New York. The buyer of the JERA’s equity stake is the Development Bank of Japan which is already invested in the project.

Pipeline blast halves Nigeria’s power output

Jan 4 – A fire at the NNPC-operated Escravos-Lagos gas pipeline in Nigeria’s southern Edo state has halted gas supply to the 1,320-MW Egbin power plant and five others, according to a statement by the Nigerian Power, Works and Housing Ministry. In total, the pipeline blast interrupted gas supplies to utilities generating more than 3,000-MW. The sudden load change tripped Nigeria’s power grid.

US biodiesel output rises despite tax credits expiry

Dec 21 – Biodiesel production levels in the United States were slightly higher in the first nine month of 2017 than in the previous year, despite the expiration of a federal biodiesel blender's tax credit at the end of 2016. The EIA forecasts a continued increased of domestic US biodiesel production due to changes to import policies which will make it more difficult to import biodiesel from Argentina and Indonesia.

Aggreko to implement Q-Pulse in 200 sites

Dec 20 – Aggreko, a leading provider of modular mobile power gensets, will install Ideagen’s Q-Pulse software in 200 locations worldwide. Once implemented at Aggreko’s regional hubs, the Q-Pulse software will enable around 200 supplier surveillance audits per year. Live data from the system will also allow Aggreko to assess trends and potential risks from across the business quickly and efficiently.

TimkenSteel to use NextGen off-gas analysis system

Dec 19 – TimkenSteel has placed an order to install Tenova’s NextGen off-gas analysis system, iEAF dynamic process control and water detection at its Faircrest steel plant in Canton, Ohio. When fully implemented, the three technologies combined will help reduce energy consumption, improve water leak detection and increase the plant’s overall productivity.