Daily News

The fast growth of distributed energy resources – ranging from fuel cells to micro turbines, photovoltaic systems and reciprocating engine – fundamentally alters ways of power generation, transmission and storage.

SPX Corporation's Thermal Equipment and Services sector has won a contract worth $35 million to supply an air-cooled condenser (ACC) for Dalia Power Energies' new 835MW gas-fired combined cycle power plant (CCPP) which will be built in the Tel Tzafit region in Israel. The contract was awarded by Alstom - the engineering, procurement and construction (EPC) contractor for the plant.

MAN Diesel & Turbo has won an order worth €270 million to supply 14 18V48/60 diesel engines for the 194MW Zouk and 78 MW Jiyeh power plants located near Beirut, Lebanon. The scope of supply includes kits for converting the engines from diesel to gas-fired operation in the medium term. They are expected to be converted to run on liquid and gaseous dual-fuel capacity once the region's gas infrastructure is up and running.

Profits of Tuas Power of Singapore, a unit of Huaneng Power International of China has dropped 18.77 percent for the financial year ending 31 December 2012 as a result of new power generation capacity coming to the market.

Construction of Calpine Corporation's new 309MW gas-fired Garrison Energy Center in Dover, Delaware has begun, according to local media reports. The combined-cycle power plant (CCPP) is expected to become operational by June 1, 2015 and is designed to accommodate a further 309MW expansion, should market conditions be favourable.

Alstom has renewed a maintenance contract worth €90 million with Petrobas for seven years to service power generation equipment at their Governador Leonel Brizola (Termorio), Fernando Gasparian (Piratininga) and Celso Furtado (Termobahia) gas-fired combined cycle power plants (CCPPs) in Brazil.

AltaGas Ltd. has entered into a purchase and sale agreement with affiliates of LS Power Equity Advisors to buy Blythe Energy, LLC through its indirect wholly owned subsidiary AltaGas Power Holdings (U.S.) Inc. for $515 million. Blythe Energy owns the Blythe Energy Center, a 507MW natural gas-fired combined cycle power plant (CCPP), associated major spare parts and a related 230 kV 67-mile electric transmission line in Southern California.

Amid abating speculation of EU intervention to support the Emissions Trading System (ETS), UniCredit forecasts the price for carbon emissions allowances will "remain in a downward trend", which would have a negative impact on the profitability of clean-burning gas as a fuel for power generation compared with coal.

Yokogawa Middle East B.S.C., a subsidiary of Yokogawa Electric Corporation has been awarded a contract to supply its CENTRUM VP integrated production control systems to two gas-fired combined-cycle power plants (CCPP) in Egypt. The control systems will be supplied to the 750MW Banha CCPP and the 1500MW Giza North CCPP.

The Electric Reliability Council of Texas (ERCOT) at its March meeting on Monday approved a Weather-Sensitive Emergency Response Service pilot scheme prior to the upcoming summer that will expand its options to reduce electricity use during the peak summer season when power demand is high and supplies are tight.

The long-run trend in the U.S. of slowing growth in electricity use relative to economic growth will continue through 2040. The projected growth rate in electricity use is forecast to be less than half the rate of GDP growth, reference case projections in the EIA's annual energy outlook 2013 show.

Japan's Mitsubishi Heavy Industries, Ltd. (MHI) has confirmed shipment of 13 sets of power generation systems operated by diesel engine to the Yangon City Electricity Supply Board (YESB) of Myanmar. The generators are provided as part of emergency grant aid from the Japanese government in response to Myanmar's current power crisis.

Gazprom has confirmed its interest in buying combined-cycle gas-fired power plants in Europe, despite competition from cheap coal that makes burning coal more than burning coal in most western European markets.

The details of the government's new capacity mechanism will have an important impact on the future of gas-fired power generation in the UK, Chris Anastasi, Head of Government Affairs, Policy and Regulation at GDF Suez Energy told Gas to Power Journal at this year's IMech Steam Turbine and Generator User Group in Coventry. "We're looking to see what the rules and regulations are going to be because there are some models that work better than others," he said.

The UK government needs to provide more clarity on details of the Energy Market Reform (EMR) bill which is currently going through Parliament if investments in new plants are to be made in time to avoid energy shortages in the next few years, says Ignacio Galán, Chairman of Iberdrola and ScottishPower.

News in Brief

France imports more Russian gas

March 21 – Demand for Russian gas continues to grow in France, with Gazprom’s exports rising 5.4% last year to 12.9 billion cubic meters (bcm). The upward continued into early 2019 and provisional estimates show some 2.5 bcm of gas was exported to France from January 1 to March 14, 2019, a 1.9% increase on the previous year period, Gazprom CEO Alexey Miller noted when discussing contractual supplies with his counterpart at ENGIE, Isabelle Kocher.

Merger wave grips UK oil &gas sector

March 20 – Significant pressures are here to stay in the UK oil and gas sector, with the trade association Oil & Gas UK (OGUK) saying the industry is facing a “new reality” amid high levels of M&A activity and the related transfer of assets. The ongoing consolidation process forces the industry to embrace new forms of collaboration and business models.

Chevron Nigeria to supply gas to Dangote

March 19 – Chevron Nigeria has agreed to supply natural gas to Dangote’s fertilizer plant in Nigeria. The deal is part of the international oil major’s gas supply obligation to the domestic market under the Nigerian Gas Master Plan.

POSCO wins $100m CHP deal in Mexico

March 18 – POSCO Engineering & Construction, part of the leading South Korean steelmaker POSCO, has signed a $100 million agreement with Ener AB to build a 100-MW combined heat and power plant in Mexico. Situated in Coahila, the CHP will serve the energy needs of the nearby Magnelec chemical plant.

Wood to install Siemens turbine in North Carolina

March 15 – Wood Group has secured a contract from Siemens to install a HL-class gas turbine at a power plant in North Carolina. Construction works are estimated to involve 400 people and last for approximately 11 months, Wood Group said. Once installed, the turbine will add 400 MW to the plant's existing capacity 1,200 MW. Financial details of the deal were not disclosed.

J-series turbine passes 750000 hours

March 14 – Mitsubishi Hitachi Power Systems (MHPS) has announced their global fleet of J-Series gas turbines accumulated over 750,000 hours of commercial operation. The J-Series fleet now includes 39 turbines in commercial operation, with 28 of those exceeding 8,000 hours and the fleet leader having more than 45,000 hours of operation.

German gas prices up 9% in March

March 13 – Household energy prices in Germany have risen substantially in March 2019, compared to the same month in the previous year, according to the price comparison site Verivox.  Electricity prices increased 5% to a new record of 29.42 cents per kilowatt hour (ct/kWh) in March to date, up from 27.99 cents a year ago, while natural gas prices jumped 9% to 6.1 ct/kWh.

MAN turbines commissioned at Chinese CHP

March 12 – MAN Energy Solutions has installed and commissioned a MGT6000 gas turbine and a THM-series gas turbine at a combined heat and power (CHP) plant that replaces a coal-based power plant in Changsa, Hunan Province. Another MGT6000 just started commercial operation at a cogeneration plant, optimized to run on natural gas, at an industrial zone of Dongguan City in Guangdong Province.

Gazprom breaks ground on 200-MW CHP plant in Serbia

March 11 – Russia’s state-run Gazprom has started construction of a combined-cycle gas cogeneration plant near Pancevo Refinery in Serbia. The site is owned by Novi Sadpart, part of Gazprom Neft Group. The 200 MW plant will be Gazprom Energoholding Group’s first power project outside of the Russian Federation and is slated for commissioning in 2020

ABB pilots digital control rooms in Sweden

Jan 8 – Swiss-based ABB has launched a new digital solution for control centers that is being pioneered and tested in a pilot project by the Research Institutes of Sweden (RISE). The cloud-based application works in synergy with many other ABB Ability solutions, and provides a platform for information-sharing.

MHPS opens new office in Bangladesh in bid to boost sales

Jan 7 – Mitsubishi Hitachi Power Systems, Ltd. (MHPS) has opened a branch office in Dhaka, the capital of Bangladesh, to strengthen its regional sales capabilities for thermal power stations. With the economy growing 6% in recent years, the Bangladeshi government seeks to boost the nation’s power generation capacity from currently 17 GW to approximately 24 GW by 2021 and further to 40 GW by 2030. To reach this goal, Bangladesh has started importing LNG amid state supports for private sector investment in large scale LNG-to-Power projects.

Shell mulls sale of Mahanagar Gas stake

March 6 – Shell India, the local business of Royal Dutch Shell, is considering to exit its city gas distribution business by selling its 10% stake in Mahanagar Gas Ltd. Shell acquired the stake in connection with the BG takeover in 2016, and last year already offloaded most of shareholding two two bulk divestment deals.

Siemens buys KACO’s string inverter arm

Jan 5 – Siemens announced it will acquire the string inverter business of the KACO GmbH, a manufacturers of power electronics, for an undisclosed amount. Siemens said wants to integrate KACO in its new Smart Infrastructure Operating Company, and expects the deal to close in H1-2019.

Power gen dominates Rolls-Royce’s engine business

March 4 – For the first time, Rolls-Royce Power System has manufactured more engines for electric power generation than for marine propulsion, the UK-based company said when reporting solid full year results. Revenue surged 15% to a record €3.9 billion in 2018, with adjusted profit up at €358 million resulting in a 9.1% return on sales.

Siemens produces module batteries in Trondheim

March 1 – Siemens has invested in a battery module factory in Trondheim, northern Norway, equipping the factory with a robotizied and digitally supervised production line with eight 300 MWh stations. Up to 55 battery modules per shift can be assembled every day, for use mainly in the marine and offshore market.

GE CEO committed to reduce debt “soon”

Feb 28 – General Electric CEO Larry Culp, in his first letter to shareholders, has said the company has too much debt and needs to reduce it “thoughtfully and soon.” Seeking to rebuild the ailing manufacturer, Culp focuses on GE’s four core businesses: power, renewable energy, aviation and healthcare. By adopting a “disciplined financial policy,” he wants GE achieve an industrial net debt/EBITDA ratio of less than 2.5x and a dividend in line with peers over time.

IEA launches ESCOs directory

Feb 28 – The International Energy Agency (IEA) has launched a new web resource dedicated entirely to energy service companies (ESCOs). The value of the global ESCO market grew 8% to $28.6 billion in 2017, helped by an 11% expansion in China and continued strong growth in the U.S.