Daily News

After a series of severe power shortages in Japan, the Tokyo metropolitan government is now gearing up to close the power generation gap by building 60 large-scale gas-fired power plants.

Retail power prices in China will rise starting Thursday this week, China's National Development and Reform Commission (NDRC) announced today.

International Energy Agency's Executive Director, Maria Van der Hoeven sees "golden prospects for natural gas. However she urged the gas industry in Riyadh today to step-up security standards in unconventional gas production.

Coal is forecast to increase in its competitiveness against gas, Société Générale said in a research note on Tuesday. "Demand for imports [of coal] will in our view keep on increasing, even if more slowly," analyst Emmanuel Fages said with reference to the expected recession in the Eurozone throughout 2012.

Norway's Statkraft Markets will decide on whether to shut down operations of two gas-fired power plants in Germany in February 2012, Jürgen Tzschoppe, head of the Norwegian utility's German subsidiary Statkraft markets told 'Gas-to-Power Journal' today.

Shell confirmed today it signed a final agreement to form a joint venture (JV) in Iraq with Basrah Gas Company to gather raw gas from three major oil fields. The gas production from these field (Rumaila, Zubair and West Qurna 1) is currently flared in Basrah, a Shell spokesperson told 'Gas-to-Power Journal' today.

The gas value chain is integrating as upstream companies such as Gazprom and Taqa have an incentive to venture beyond their midstream activities into gas-to-power. "Upstream players - producers of oil and gas – have an incentive to go downstream," Sybren Hettinga, head of European gas structuring at Cargill, told 'Gas-to-Power Journal' in an interview.

The Russian gas giant Gazprom and Essen-based RWE are in negotiations to form a joint venture (JV) on power generation, an RWE spokesperson confirmed to 'Gas-to-Power Journal' today. "We do not comment on the status of negations," he said, adding joint projects in gas-to-power would be "one of the options".

Matteo de Zan, head of Enel's industrial development, generation and energy management division said the operational start-up of a gas-fired power plant in Belgium is expected in early 2012. "We are waiting for the plant to start operations in the coming months; the plant is currently in its commissioning stage," he told 'Gas-to-Power Journal' in an interview.

Hyundai Engineering and Construction (HDEC) and Metka are set to build a gas-fired power plant in Basra, Iraq. The 1,500 MW gas-fired plant will be constructed near the southern Iraqi city of Basra in southern Iraq.

Enel, Italy's largest power company, said today the operational start-up of a 400-MW gas-fired power plant in Belgium is expected in early 2012. "We are waiting for the plant to start operations in the coming months; the plant is currently in its commissioning stage," Matteo de Zan, head of Enel's industrial development, generation and energy management division told 'Gas-to-Power Journal' in an interview today.

MetCap and General Electric energy unit have teamed up to realise a gas-fired power plants, named Dervish, based on GE's FlexEfficiency technology. Dervish - a 1,080-MW gas-fired power plant in Karaman in central Turkey - will start operations in 2016, Sera Geray, chief financial officer at Metcap Energy told 'Gas-to-Power Journal'.

The European Network of Transmission System Operators for Electricity (ENTSO-E) has alerted grid operators of the risk of reduced margins of available power generation overload in Europe this winter. ENTSO-E published its Winter Outlook 2011-2012 and Summer Review 2011 on Thursday this week, indicating that under severe conditions, December and January could be the most stressed months of the winter for security of electricity supply.

The power generation sector is forecast to be the main driver for global gas demand, according to projections of the International Energy Agency (IAE). "Global gas demand will be driven by power generation", IEA analyst, Warner de Kate, said at the EMART energy conference in Lyon.

Gas markets are a different animals than power markets, so the integration of European gas trading hubs cannot replicate the integration of European power markets, panalists at a gas trading session the EMART Energy conference agreed on today. "Financially, it has already happened; physically, however, gas market integration works different from electricity markets," APX-ENDEX CEO, Bert den Ouden, said at the conference in Lyon.

News in Brief

Sembcorp delivers ‘energy that makes a difference’

March 23 – Sembcorp Power, the electricity retail arm of Sembcorp Industries, has unveiled a series of initiatives that are meant to deliver Energy that Makes a Difference in Singapore. These measures include a commitment of S$100,000 to support social enterprises in energy, water and resource recovery over the next five years as well as competitive price plans to help businesses save money. For every new customer signed up, Sembcorp Power will give S$5 to selected beneficiaries to offset their electricity bills.

Siemens awards in-kind technology grant to UCF

March 22 – Siemens has entered the next phase of its 30-year academic partnership with the University of Central Florida (UCF), awarding researchers a major in-kind technology grant of its Product Lifecycle Management (PLM) software with a commercial value of $593 million. The software grant amplifies a similar 2016 grant that benefitted students in UCF's Center for Advanced Turbomachinery and Energy Research (CATER).

ABB creates virtual flow meters with Arundo Analytics

March 21 – Arundo Analytics, a Houston-based software developer, and ABB have worked together to create the first cloud-based virtual multiphase flow meters for the offshore oil and gas industry. Connecting ABB Ability and Arundo’s Composer and Fabric software, the virtual flow meter helps upstream companies gain real-time data to understand the constituent properties of any given stream of produced fluids.

ABB unveils energy solutions for smarter homes

March 20 – ABB is showcasing its latest innovations on energy management, digitalization, safety and security at the ‘Light + Building 2018’ trade show in Frankfurt, Germany, this week. On show are solar energy storage solutions, the ABB’s EQmatic Energy Analyzer and a new energy management solution that integrates the company’s cloud-based ABB Ability Electrical Distribution Control System.

Gazprom buys two Siemens turbines for Grozny project

March 19 – Gazprom has just announced it agreed to purchase two gas turbines from Siemens for installation at a 360-MW power plant under construction in Russia’s Caucasus Chechnya region. Gazprom Energoholding, one of Russia’s biggest power suppliers, plans to open power plant in the Chechnen capital Grozny in 2019.

Investment consortium buys Denmark’s largest biogas producer

March 16 – Nature Energy, the largest biogas producer in Denmark, has been privatised and sold to a consortium including the European private equity firm Pioneer Point Partners, the global investment fund Davidson Kempner, and the Danish pension fund Sampension. With an enterprise value of DKK 1.1 billion and debt facilities available from the Danish government’s Green Investment Fund and local banks, Nature Energy is expected to grow from five operational plants up to 17 domestically (including 2 under construction) within the next 5-10 years.

DCS market to top $20bn by 2022

March 15 – Distributed control system (DSC) market is forecast to grow at an annual rate of 4.97% from currently just over $16 billion to $20.33 billion in 2022, according to MarketsandMarkets estimates. Asia Pacific will dominate the global DCS market due to growing industrial infrastructure and increased investments in power generation in countries such as China, India, Indonesia, and Vietnam.

Gazprom allocates helium from Amur GPP

March 14 – Gazprom Export has allocated vast parts of the helium produced by the Amur gas processing plant. Amur GPP, with a capacity of 42 Bcf of feed gas, processes gas from the Yakutia and Irkutsk region whereby the natural gas gets exported to China via the Power of Siberia pipeline, while extracted components, primarily helium, ethane and LPG is sold to petrochemical industries.

Entergy gets nod for New Orleans power project

March 13 – Entergy has been granted regulatory approval for building a 128MW gas-fired power plant in New Orleans with an investment of approximately $210 million. The new power station is slated to start operation in January 2020.

Mobile power market to grow 4.56% through to 2022

March 12 – Demand for mobile power generators, segmented into 1-10MW, 11-20MW, 21-50MW, has been spurred by increasing investments in remote area electrification and instant power requirement after frequent natural disasters. RnR Market Research expects the global mobile power market will grow at a rate of 4.56% from now until 2022, to reach an estimated market size of $1.73 billion.

Capstone wins follow-up order in Russia

March 9 – Capstone Turbine has won a follow-on order for thirteen C65 microturbines to be deployed in CHP-application at an industrial park in west Russia. The order follows the delivery of eleven units in 2017. Darren Jamison, Capstone President and CEO said the Russian market accounted for $30 million in annual revenue for Capstone back in fiscal 2012 when the Kremlin introduced rules to limit the flaring of associated gas. In his view, the latest order is “is a good indicator that our efforts to re-establish the Russian market are beginning to pay dividends.”

Wind power drives up demand for turbine control

March 8 – The turbine control system market is expected to grow from an estimated $15.13 billion in 2018 to $19.00 billion by 2023, registering a CAGR of 4.66% during the forecast period. This growth is primarily due to the increasing emphasis on growth of wind power generation, and increase in operational productivity of the turbines, in turn improving the efficiency of the power plant.

National Grid publishes guide on secondary trading

March 7 – The window for secondary trading for the Delivery Year 2018-19 is still open following the conclusion of the latest T-1 Capacity Market Auction. Applicants are asked to refer to National Grid's latest set of guidelines and rules.

Floating power markets grows at 8.15%

March 6 – Globally, the floating power plant (FPP) market is projected to reach $1.45 billion by 2022 growing at a cumulated annual rate of 8.15% during the forecast period. According to ResearchFox, the oil & gas sector dominates the FPP market due to its ease of availability and lesser cost of installation compared to other sources of energy.

Birdboro (450MW) gets environmental nod

March 5 – Environmental regulators in Pennsylvania have signed on crucial permits, paving the way for construction of Birdsboro Power proposed 450 MW gas-fired power plant in Philadelphia. The regulator approved the gas power station and an associated electric transmission line, as well as feeder pipelines for natural gas and cooling water.

PPT strikes deal to sell Mozambique gas to EDF

March 2 – Thailand’s PTT Exploration & Production of and its partners in a Mozambique LNG processing plant have struck a gas offtake agreement with the French utility EDF. The 15-year deal will give PTT a longterm revenue stream from the Mozambique Rovuma offshore area 1 gas field, ensuring access to the European market. The investment of state-owned PTT in the Mozambique project is part of a plan to secure LNG for Thailand, which generates over 60% of its electricity from gas.

AIIB grants $60m loan for Bangladesh’s Bhola IPP

March 1 – Asian Infrastructure Investment Bank (AIIB) has agreed to provide a loan of up to $60m for the development of Bhola Independent Power Producer (IPP), a greenfield 220MW combined-cycle power plant located in Bhola island in the Barisal district of Bangladesh, India. The CCGT will be developed by ShapoorjiPallonji Infrastructure Capital company through NutanBidyut, a special purpose vehicle.