Daily News

Gas generation is poised to play a bigger role in denting Brazil's need for peakload power supply, providing bottlenecks in the gas pipeline network get resolved in order to allow the country's power companies make full use of domestic gas reserves. Gas generation in 2011 made up 59.1 percent, or 13,220 megawatt, of Brazils 22,368 MW installed thermal capacity, according to GlobalData.

An increasing share of variable renewable energy sources in the grid requires a market push for the development and demonstration of flexible conventional power generation, says Christer Björkqvist, Managing Director of the European Turbine Network (ETN).

Britain's energy regulator Ofgem today said the projected tightening of the spare power generation margin over the next four years would step up the urgency for the upcoming energy reform (EMR) package to encourage investment.

General Electric expects a surge in demand for gas turbines in Saudi Arabia, as the government supports plans to double power generation capacity to 60 GW by 2023 as it aims to meet demand growth of about 8 percent a year.

Investment in combined heat and power (CHP) generators is on the rise in the United States, with proposed new cogeneration capacity for 2013-2016 amounting to more than 3,700 MW, latest statistics from the U.S. Energy Information Administration (EIA) show.

Siemens is profiting from South Korea's growing demand for gas-fired power plants with high power density, Thomas Hagedorn, Sales Vice-President, who is heading the front office of Siemens Energy Solutions in Singapore, told Gas to Power Journal.

The UK Government has proposed capacity payments as a way to bridge the gap for gas fired generators, but EMR market interventions as proposed have the effect for many investors of replacing market risk with political risk, says Dr. Jim Fitzgerald, Associate Partner at The Advisory House.

"While CFD FiTs could mitigate political risk for low carbon generators, many gas-fired investors consider that without CFD FiTs, they will be less able to mitigate political risk as they may historically have done for market risks," he told Gas to Power Journal.

Deutsche Bank has reduced its forecast for German base and peakload power prices again by €2-3/MWh for the 2012-2015 period, amid a 21,500 MW rise in net capacity over the forecast period and subdued electricity demand growth.

Siemens has won its fifth order for a South Korean buyer to deliver H-class turbine technology for the 415-MW combined-cycle power plant Daegu Innovation City, located about 240 km south-east of the capital Seoul. Commissioning is scheduled for late 2014.

RWE AG, starting from 1 January 2013, will bundle its entire power generation capacity of 50,000 MW in Germany, UK and the Netherland in a new entity.

GE will supply eight gas turbine-generators for the expansion of Saudi Electricity Company's (SEC) Riyadh Power Plant 12 (PP12). Once operational in 2015, the combined-cycle plant will be the first application of GE's 7F-5 series gas turbine technology in Saudi Arabia, adding  nearly 2,000 megawatts of electricity to help  meet the Kingdom's future energy demand.

Revenues in the Russian market for diesel and gas generators (gensets) are estimated to rise to $614.9 million in 2015 – a steep increase from $428 million in 2011, Frost & Sullivan research manager Malavika Tohani forecast.

Gas demand in Europe is forecast to remain fairly stable but could see a 1% year-on-year decrease in 2012, mainly due to subdued demand from the power generation sector, latest statistics published by gas industry association Eurogas show.

Mitsubishi Heavy Industries (MHI) effective October 1st has launched a new company in Singapore, named Mitsubishi Heavy Industries Engineering & Services Private Ltd. (MIES). The new entity, capitalized at 15 million Singapore dollars (SGD), integrates the business of 3 local affiliated companies including Mitsubishi Power Systems (Asia Pacific) Private Ltd.

RWE's decision as to which gas turbine vendor to use for its newly opened Pembroke Power Station has been largely driven by Alstom's service agreement, according to Andy Smith, project development manager at RWE.
"In the UK, the market for building new combined-cycle plants is EPC-based and we were therefore exposed to the equipment choices that the different turbine manufacturers have on offer," he told Gas to Power Journal at a conference organised by the publication in London.

News in Brief

PG&E files for bankruptcy by Jan 29

Jan 16 – Northern California’s utility Pacific Gas & Electric has informed federal regulators that it expects to seek Chapter 11 bankruptcy protection by end of this month. The San Francisco-based utility is under investigation for its shortcomings in the deadly 2018 wildfires.

Gas engine market to top $4.4bn by 2020

Jan 15 – Global demand for natural gas engines is forecast to expand with the market set to exceed $4.4 billion in value by 2022, according to Zion Market Research. Key manufacturers include, GE, Rolls-Royce, Cummins, Caterpillar, Wärtsilä, Kawasaki, MAN, Deutz, Doosan and Yanmar.

Encana selects Siemens rotating equipment

Jan 14 – Siemens has been selected to provide one feed and sales gas train and one refrigeration compression train for Encana’s Pipestone Processing Facility in Grand Prairie, Alberta, Canada. The new unit, due to operational in 2021, will provide Encana with 19,000 barrels per day of net raw condensate processing capacity plus 170 million cubic feet per day of net inlet gas processing capacity.

Cheap U.S. LNG underpins power project in Panama

Jan 11 – AES Colón expects the entry of low-cost US LNG will transform the Central American energy sector, much as it has in the Panama. The utility in September started up an $1.15 billion LNG import terminal and adjacent combined-cycle power plant.

Rolls-Royce joins forces with OT industries

Jan 10 – Britain’s bellwether manufacturer Rolls-Royce has signed an accord with OT Industries to explore areas of joint work for the provision of Emergency Diesel Generators (EDGs) and Instrumentation and Control (I&C) systems for new units at the Paks nuclear power plant in Hungary. OT industries is majority owned by the MOL Group.

State-run utilities dominate energy spending

Jan 9 – Future investments in global energy supply largely rest in the hands of governments. In the power sector, a striking 95% of monies are spent by regulated utilities under schemes to minimize risk associated with variable prices on competitive markets. However, once China will have completed its power sector reform the share of countries that rely on competitive markets will rise from 54% to almost 80%.

Floating power market to top $1.4bn by 2022

Jan 8 – The market for floating power plants (<250MW capacity) is expected to grow at an annual rate of 10.11%, expanding from currently $889.6 million to reach $1,440 million by 2022. Main growth drivers, according to MarketsandMarkets, are cost advantages of floating over land-based power plants, particularly in regions with a lack of power infrastructure.

Energean to supply gas to Israel

Jan 7 – Energean Oil and Gas has agreed to supply 5.5 Bcm of natural gas Karish and Tanin fields over 19 years to the Israeli power producer I.P.M. Beer Tuvia. The deal is expected to $900 million in revenue for Energean over the contract duration.

Eranove builds 390 MW plant in Ivory Coast

Jan 4 – Ciprel, a subsidiary of Eranove Group of France, is preparing to construct a 390 MW power plant in Jacqueville near Abidjan, the capital of the Ivory Coast. Driven by one of GE’s F-class turbine the combined-cycle power plant will be similar to one that Ciprel already has in operation.

Works advance on Jawa-1 CCGT

Jan 3 – Construction works are forging ahead for Jawa-1, a 1,760 MW combined-cycle gas-fired power plant. Built at cost of $1.8 billion the facility will be built by PT Jawa Satu Power (JSP) and PT Jawa Satu Regas (JSR) in Karawang, West Java.

Grozny TPP due onstream in 2019

Jan 2 – Construction of Unit 2 of the Grozny Thermal Power Plant (TPP) is advancing fast with a view having the entire plant operational in mid-2019. The first 180 MW unit has been running uninterruptedly for a fortnight and once the second unit will start up, Grozny TPP will reach its design value of approximately 360 MW.

E&P profitable at $50/bbl

Dec 21 – Globally, Wood Mackenzie expects exploration budgets to remain steady in 2019. But with stronger prices, lower costs and a greater focus on commerciality, the exploration sector is now seen to be more resilient than ever, and “well positioned to generate positive full-cycle returns at oil prices of US$50/barrel or even lower.”

GE upgrades substation in Germany

Dec 20 – TransnetBW has asked GE Power to upgrade one of the substations in so-called ‘Badische Rheinschiene’, a highly loaded link in the transmission grid of southwest Germany. The project will deliver 22 bays of 400 kV GIS to reduce the substation’s footprint while increasing its capacity.

Burckhardt opens service centre for Central Europe

Dec 19 – Swiss-based Burckhard Compressions has opened a new service centre for Central Europe in Slovakia. Reciprocating compressors of any brand are serviced there for operators in Slovakia, the Czech Republic, Hungary and Poland.

Global CCS growth nears 10% per year

Jan 19 – A report from analysts Research and Markets says the global Carbon Capture and Storage (CCS) market will grow 9.18% per year between 2017 and 2021, with Babcock & Wilcox, ENGIE, GE Power, Linde and Mitsubishi Heavy Industries dominating developments.

BAE switches to gas power

Dec 18 – BAE Systems has received a U.S. Army contract worth $158 million to replace the coal-fired power supply at Holston Army Ammunition Plant in Kingsport, Tennessee, with a natural gas steam facility. The modernization project will replace an existing coal-fired plant and significantly reduce the facility’s overall carbon footprint.

Silver Lake buys 90% in ServiceMax

Dec 17 – GE Digital has agreed to sell a majority stake in Service Max, a provider of cloud-based software tools, to Silver Lake, a global technology investor. Under the agreement, GE will retain a 10% equity ownership in ServiceMax. The divestment comes as GE Group seeks to reduce its debt.