Daily News

Deutsche Bank analysts expect Japan's total thermal power generation requirement to rise to 90 GW in December 2012, provided that no further nuclear reactors will be restarted and overall demand pattern are consistent with the previous year. "This forecast implies that thermal power requirement will be 5 GW to 8 GW higher in January and February 2013 than it was this past winter," analysts Isabelle Curien and Mark Lewis said in an emailed report today.

Siemens Infrastructure & Cities announced it has bought Australia's Kaon Holdings Pty Ltd,  effective as of August 31, 2012, with the aim of expanding its share of the global market in energy distribution solutions for overhead power lines. Siemens said it will "take over and continue to sell all of Kaon's existing products" and establish a centre of competence in Australia for medium-voltage products.

Alstom and Toshiba said today they have signed a Memorandum of Understanding (MoU) to establish complementary partnership in the smart grid business with the aim of developing systems that support wide scale integration of renewable energy sources into the grid and help to bring down the cost of power generation.

Wood Group GTS has secured a $10 million contract with Pasadena Water & Power (PWP) for repair and restoration of the GT-1 generating unit at their Glenarm Power Plant in Pasadena, California.

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.

News in Brief

DHIC partners with Dell EMC

Oct 16 – Doosan Heavy Industries & Construction (DHIC) has partnered with Dell EMC on digital energy, and the first joint project is to implement a digital solution at an Indian power plant. The Dell EMC system has a built-in power plant combustion optimizer, developed by DHIC based on the SAP platform.

IEA reviews Brazilian gas market

Oct 15 – The International Energy Agency (IEA) has published a review of the opening of Brazil’s natural gas transportation system. Through its Gás para Crescer initiative, the Brazilian government sets a plan to liberalize the local energy market by enhancing the build-out of natural gas and electricity interconnectors, unbundling of TSOs and implementing of network codes.

Global GT market looses value

Oct 12 – Though Asia emerges as No.1 market for gas turbines, the overall value of the global gas turbine market  is forecast to decline over the coming five years. According to a Global Data report, the market value between now and 2022 will be $37.97 billion, down compared with $52.39 billion in the 2013-2017 period.

FERC approves $6bn CenterPoint/Vectren merger

Oct 11 – US Federal Energy Regulatory Commission (FERC) has approved the $6 billion merger of CenterPoint Energy and Vectren, whereby shareholders of the latter will be paid $72.00 in cash for each CenterPoint share. Vectren CEO Carl Chapman welcomed the ruling and added the companies “now anticipate a closing no later than the first quarter of 2019.”

Dürr buys part of Babcock & Wilcox

Oct 10 – Dürr Group, a Germany-based mechanical and plant engineering firm, has completed the acquisition Babcock & Wilcox’ (B&W) industrial environmental technology business. The takeover broadens Dürr’s portfolio on exhaust-air purification technologies, with a workforce of around 1,500 and estimated sales of € 400 million.

Azure achieves $12.50 per share

Oct 9 – India-based Azure Power Global Ltd has priced its underwritten public offering of 14,800,000 equity shares at a price of $12.50 per equity share. The company also granted underwriters a 30-day option to purchase up to an additional 1,200,000 shares at the same price, less underwriting discounts and commissions. The offering will close on October 10, 2018.

Global gas use grows at 2%/yr

Oct 8 – The International Gas Union (IGU) expects global gas consumption to grow by 1.6 to 2% per year in the coming decades. “Competitiveness, affordability, and eco-friendliness will remain essential in that regard,” said IGU President Joe M. Kang.

Financing agreed for EVM-II plant in Mexico

Oct 5 – A financing package of $740 million has been agreed for the Energias del Valle de Mexico II (EVM-II) combined-cycle power plant. Commercial banks involved in the financing were led by BNP Paribas, Citi, SMBC, and Mexico’s Banco National del Comercio Exterior. Milbank served as legal advisor.

MAN wins award for small-scale LNG paper

Oct 4 – A whitepaper by MAN Energy Solutions entitled ‘Small-scale LNG - powering the future of Asia’s island communities’ has won the Best Paper Award at this year’s Power-Gen Asia trade show. The paper ties in with MAN’s new strategy to deliver the entire value chain from small scale regas and import terminals to decentralized gas- and dual-fuel engine, and turbine-driven power plants. Carsten Dommermuth, International Business Development Manager, said “this setup is a real advantage for customers seeking to source a complete LNG-to-Power solution from the same provider.”

IEA laments steep drop in clean energy investment

Oct 3 – The latest steep drop in clean energy investment is “worrying,” according to Fatih Birol, head of the International Energy Agency (IEA). Official figures show spending on renewables fell to $298 billion worldwide in 2017, down from $318bn in the previous year, marking the biggest absolute fall on record.

Siemens closes Mendix acquisition

Oct 2 – The German engineering conglomerate Siemens has closed the Mendix acquisition, just eight weeks after the transaction was first announced. Part of Siemens’ Vision 2020+ strategy, the integration of Medix digital platform is aimed at creating new SaaS solutions and extensions, particularly for the Digital Enterprise Software, MindSphere.

Merger of BASF Wintershall and DEA goes ahead

Oct 1 – BASF Group has agreed to merge its German oil and gas business BASF Winterhall and with Deutsche Erdöl AG (DEA), owned by the Russian investor group LetterOne. The joint venture will operate under the name Wintershall DEA.

Toshiba splits R&D for Power and Industrial Systems

Sept 28 – Toshiba Corp has announced it completed all necessary steps to separate its Power and Industrial System Research and Development Center and transfer the R&D on electricity to Toshiba Energy Systems, while research on industrial systems will be taken over by the company’s infrastructure arm. The split take effect on October 1.  

Gazprom’s supply to Austria up 34%

Sept 27 – The Russian gas major Gazprom has delivered record volumes to its Austrian partner OMV after an existing longterm contract was extended in June to run through to 2040.  From January 1 through September 23, 2018, Gazprom delivered 7.8 billion cubic meters (Bcm) of gas to Austria, a 34.5% rise compared with the same period last year. Full-year 2017 export volumes amounted to 9.1 Bcm.

Keystone XL construction to start in 2019

Sept 26 – TransCanada has received a key permit for $8bn Keystone XL pipeline, with the U.S. State Department ruling the 1,900km pipeline will not have any significant impact to either water or wildlife. Construction is now slated to start next year.

ABB partners with UBC

Sept 25 – Zurich-based ABB has entered a 3-year partnership with the University of British Columbia (UBC), focusing on biometric sensing. ABB will provide a total of $300,000 in funding ($100,000 per year), which will be matched by the Government of Canada.

GE launches ServiceMax 18.3.

Sept 24 – GE Digital has launched Service Max 18.3., a new version of its Predix ServiceMax Field Service Management (FSM). The new solution is said to give service technicians greater autonomy, dispatchers with more robust decision-making tools which utilities to better plan and execute complex service projects.