Daily News

Despite most of the oil and gas production in the Gulf of Mexico being shut down following the landfall of Hurricane Issac, natural gas market in the US barely reacted. The abundance of shale gas supply has reduced the significant of offshore production, analysts say.

GE has been commissioned to install two of its aeroderivative gas turbines at a combined heat and power plant (CHP-1) in Yuzhno-Sakhalinsk, owned by OJSC (RAO Energy System of East). The total project cost is 3.3 billion rubles ($ 0.101 billion), GE said.

India's power ministry and the eight north Indian states, which were affected by prolonged blackouts after the collapse of the power grid on 30 and 31 July, have agreed on a 12-point resolution to avoid a similar crisis. "The Centre and the concerned states agreed to abide by a 12-point resolution to ensure that such breakdowns in the power grid do not recur," the ministry said in a statement.

Starting from 2013, E.on Russia will source its entire gas supply for its power plant fleet from Russia's second largest gas supplier Novatek instead of Gazprom. Under a $22 billion agreement, Novatek will supply gas to E.on Russia's plants at Smolensk, Surgutsk, Shatursk and Yaivinsk until 2027.

Alstom Poland has signed a contract worth close to €4 million (PLN 16 million) for the modernisation of a UK-50 type steam turbine at the Siekierki combined heat and power (CHP) plant, owned by PGNiG Termika SA, a subsidiary of state-controlled PGNiG. The retrofit is scheduled to be completed by September 2013.

The Indian government is not paying enough attention to smaller gas-based plants to cater for peak load demand as it focusses on large-scale coal-fired plants that provide base load capacity. The Indian power ministry recently awarded licenses for four Ultra Mega Power Projects with a capacity of 4,000 MW each. All plants are coal based.

The United States is currently facing its worst drought in decades which is likely to reduce power supply since electricity generation can be very water-intensive, the U.S. Energy Information Administration (EIA) warns.

Swiss power and automation group ABB has been awarded an order worth $60 million by American Electric Power (AEP) to replace a 30-year-old high-voltage direct current (HVDC)  converter station in Texas. The new station is scheduled to be operational in 2014.

Despite short term restraints in the market for gas-fired power generation, new analysis from Frost & Sullivan's Energy & Power Research expects "sound" medium- and long-term prospects and forecasts global gas-fired power plant orders to total 537 GW through 2020.

GE Energy Financial Services has served as lead arranger of an $107 million senior secured credit facility for two Illinois gas-fired peaker plants, managed by Tenaska Capital Management, LLC (TCM), an affiliate of Tenaska, one of the largest U.S. independent power producers.

The majority of the coal-to-gas switching activity in the U.S. is "permanent" as most utilities are not expected to revert investment decisions of converting coal plants to run on natural gas,  Moody's Investors Service said.

General Electric's (GE) has signed a 12-year, multimillion contractual service agreement (CSA) with Thailand's petrochemical company IRPC that includes the delivery of six GE Frame 6B gas turbines for a combined heat and power plant (CHP) in Rayong Province.

South Korea has risen high on the agenda of Siemens, Germany's engineering giant, who is targeting the country as a key growth market for gas turbine sales.

Sales prospects and revenue generated in Asia and the Middle East currently more than offsets reduced earnings in ailing European markets, says Lothar Balling, Head of Gas Turbine Power Plant Solutions in the Fossil Power Generation Division at Siemens Energy.

Germany's largest utility E.on said it has no intention of building additional gas or coal-fired capacity in western Europe until 2020 as it expects markets to be oversupplied with power generation capacity until the final shutdown of all German nuclear reactors.

Wärtsilä, a leading supplier of gas engines, has singled out the United States as a fast growing market for Smart Power Generation (SPG). "Ancillary services such as spinning reserve, frequency regulation and black start capability can all be sold in the market," Melle Kruisdijk, Director Market Development, Wärtsilä Power Plants told Gas to Power Journal.

News in Brief

Sparrow gets permit to work in Saudi Arabia

Aug 13 – Sparrows Group, a specialist equipment maker and integrated engineering services providers, has been granted commercial registration to operate in the Kingdom of Saudi Arabia. The commercial registration allows Sparrows Saudi Arabia LLC, a newly established entity in Dammam, to deliver services related to the extraction of oil and natural gas

Puerto Rico electricity sales almost back to normal

Aug 9 – Electricity sales on the island of Puerto Rico, part of U.S. territory, has returned to pre-hurricane levels as of April and May 2018 after the longest blackout in American history. However, residential electricity sales appear to continue to lag historical levels, reflecting some continued outages, EIA data shows. As of April 2018, around 95% of Puerto Rico’s electricity customers had restored power, while about 62,000 customers remained without power.

India’s solar PV market slumps

Aug 8 – India’s market for solar photovoltaic is forecast to experience negative growth this year after the Ministry of Finance imposed a safeguard duty on solar cells and modules for a period of two years, starting on 30th July 2018. The move exacerbates the effect of a slowdown in the China market, Wood Mackenzie commented.

Shell expects electricity to become “biggest game in town”

Aug 3 – By 2050, power consumption is expected to outstrip demand for Shell’s core business of oil and gas. The company’s most recent Future Energy scenarios foresees oil and gas demand to peak in the next 50 years, while reliance on electricity is expected grow from around 20% of energy consumption to closer to 50% by midcentury.

ADB funds power lines in Bangladesh

Aug 2 – The Asian Development Bank (ADB) has approved an assistance package of more than $357 million for a project to develop two power lines in Bangladesh. The grid extension supports Bangladesh’s national target of reaching electricity for all citizens by 2021.

Tadmax to develop CCGT in Selangor

Aug 1 – Malaysia-based Tadmax Resources has signed an accord with Worldwide Holdings to develop a combined-cycle gas power plant with up to 1,200 MW in Pulau Indah, Selagor. The deal comes as Worldwide seeks to acquire a 30% stake in Tadmax. Technical partner for the CCGT project is Korean Electric Power Corp.

Renewables hit new record

July 31 – Germany's electricity supply from renewables reached a record high in the first half of 2018, catering for an unprecedented 41.5 % of the country's electricity supply. A total of 113 terawatt hours (TWh) of electricity was generated by all renewable technologies, mainly consisting of biomass, wind and solar energy.

Dominion aims to add 3GW renewables by 2020

July 30 – Striving to add 3 GW of solar and wind capacity in the next two years, Dominion Energy has has filed its first set of the plans under Grid Transformation & Security Act (GTSA) to the Virginia State Corporation Commission (SCC) for the approval. Dominion VP Ed Baine said the GTSA legislation, effective from 1 July, would provide a roadmap for Virginia’s energy future.

GE to develop critical infrastructure in Lagos

July 27 – GE and the Lagos State Government have agreed to pool their resources for the development of critical infrastructure in the state in the areas of Power, Healthcare and Skills Development. This was announced during the signing of a Support and Cooperation Agreement by both parties during the France-Nigeria Business Forum held in Lagos.

Orbital Insight teams up with Energy Aspects

July 26 –Orbital Insight and Energy Aspects have teamed up, striving to transform how energy data is used for investing. The two research firms will integrate geospatial analytics, based on artificial intelligence and machine learning, with energy analysis with a view to giving customers unprecedented global oil storage level data.

Cost for US wind generation down 33%

July 25 – Capacity-weighted cost of wind installations in the United States have declined by one-third thanks to improving technology and manufacturing capability and a concentration of new-builds in the best-suited regions. Installation costs fell from $2,361 per kilowatt (kW) in 2010 to currently less than $1,587/kW, based on analysis by the U.S. Department of Energy’s office of Energy Efficiency and Renewable Energy(DOE/EERE).

Iran’s NISOC prepares tender

July 24 – National Iranian South Oil Company (NISOC) has announced plans to hold an international tender to purchase parts for G.E.C gas turbine. NISOC seeks to buy parts of the turbine type Centaur.

Chart reports full-year sales at $1.2bn

July 23 – U.S. equipment manufacturer Chart Industries has reported a 34% rise second-quarter sales, with the order volumes amounting to $360.3 million. “Strength in Asian orders was driven by packaged gas applications as well as respiratory and cryobiological product lines,” Charts said when posting the results.

ABB spends $30m on transformer factory in Sweden

July 20 – ABB is investing more than $30 million in a new manufacturing unit, under construction in Ludvika, Sweden. The new unit will increase production, expanding the capacity and the range of its high-voltage dry bushings offering.

Wärtsilä’s order intake up 14%

July 19 – The Finish equipment manufacturer Wärtsilä has seen its order increase 15% to €1,553 million in the second quarter, while net sales fell 4% to €1,246 million. Looking at the full year 2018, Wärtsilä said its Services and Solutions business will “improve somewhat from the previous year.” Good demand prospects are on the cards for Energy Solutions, as the global shift towards renewables and rising electricity demand in the emerging markets support the need for distributed power capacity.

NRG abandons Dunkirk coal-to-gas conversion project

July 18 – Shying away from having to pay $114 million in re-interconnection costs, NRG Energy has shelved plans to repower and convert its mothballed Dunkirk power plant in western New York from coal to natural gas. The company said in a statement that it has withdrawn its request to have New York ISO interconnect the Chautauqua County generating facility with the power grid.

Akwa Ibom, BlackRhino sign $1.6bn power deal

July 17 – BlackRhino, operator of the Qua Iboe Power Plant (QIPP), has agreed with the Akwa Ibom State Government to build a power plant and electricity transmission lines in the state. QIPP’s management  committed an investment of $1.1 billion for the facility, with an additional $500 million for gas.