Daily News

The rapid implementation of India's 'National Gas Grid for LNG', designed to accommodate rising gas supply from LNG import terminals on the western coast, will provide a fillip to gas-fired power generation. "The formation of the gas grid (12,000 km) in India is a great leap which is going to encourage the use of gas-based power generation over a wider geographical area," an analyst at India's Central Power Research Institute told Gas to Power Journal.

Mitsubishi Heavy Industries (MHI) will integrate two engine business sectors that are currently handled by its power systems and general machinery sector, effective October 1, in reaction to a global rise in demand for distributed power generation.

Siemens Energy has won an order worth over €100 million from KAR Construction and Engineering Company Ltd to supply gas turbines and generators for 640-megawatt Khormala gas turbine power plant in northern Iraq.

Alstom has developed a MXL2 upgrade for GT26 gas turbines, offering power plant operators to adapt production hours of their plants to fluctuating demand and to significantly extend inspection intervals and increase availability – key features in markets with a large share of intermittent wind generation such as Spain, says Leone Tessarini, product manager at Alstom's gas turbine services.

The autumn statement of the UK finance ministry, set for 5 December, will impact on the timing of the Government's update on the Electricity Market Reform (EMR), JP Morgan Cazenove said today. As both the EMR and the gas generation strategy paper need to be consistent with the Government's fiscal targets, the papers are „only likely to be published once the fiscal targets are known in December,"  says Edmund Reid, analyst at the bank.

While European power prices are will stay flat over the coming days they  are likely to increase in by the end of September on colder weather conditions, the Italian bank UniCredit forecast. Gas generation remained on low levels throughout Europe, while higher profit margins and subsequently higher utilisation of power generation have supported carbon prices in recent weeks, bank research shows.

Aggreko, a leading provider of temporary power generation services, has opened its first service centre in Walvis Bay, Namibia, to meet to power demand of the country's rapidly growing mining industry. Located next to the Port of Walvis Bay, the facility is also well positioned to supply backup power generation to Namibia's shipping and fishing industries.

At current prices, "gas is too expensive a fuel for Europe", Société Générale said in a report today. The bank remains more bearish than the forward curve and recommends selling the front year NBP Summer 13 contract.

The first power plant unit has been delivered to Emirates Aluminium's (EMAL) expansion project in Al Taweelah,  Abu Dhabi, U.E.A. The 1,000 MW expansion will boost the power generation capacity of the on-site plant to 3,000 MW.

Nigeria's federal government has spent about $8 billion on power intervention projects since 1999, to support the construction of 10 power plant projects with a combined capacity of 4,774 MW, James Olotu, owner of the National Integrated Power Project (NIPP), said in Lagos.

Hot-weather-driven electricity demand for air conditioning coupled with low natural gas prices has led to a 24% surge in U.S. gas demand for power generation in the period through August 15, according to the U.S. Energy Administration (EIA).

A surge in Japan's LNG imports for thermal power generation is on the cards as the party of Prime Minister Yoshihiko Noda is gearing up to adopting a zero-reliance policy on nuclear power to win voters' support in the forthcoming election.

The British government has proposed to set a cap "broadly equivalent to 1 GW" for new biomass-fired power plant capacity. Energy secretary Ed Davey said the cap will "ensure that the Renewables Obligation delivers value-for-money for the bill-payer while enabling shovel-ready projects to come forward."

RWE npower's, part of the German energy company RWE, will start-up the fifth and final unit at the 2,188-megawatt Pembroke combined cycle gas turbine (CCGT) plant before the end of  this month. Final commissioning works at the Pembroke plant in Wales are being carried out cover the coming two weeks.

UK gas exports have dropped this week, after the NBP Zeebrugge spread turned towards the zero or slightly negative level at the start of September. "UK gas flows shift early towards winter flow patterns," Deutsche Bank analysts said today, commenting "last year this shift did not occur until the start of December". 

News in Brief

Controversy about planned CCGT in California

Feb 22 – Environmentalist have filed a lawsuit against plans to build a 634 MW combined-cycle gas power plant in Palmdale, a city north of Los Angeles. The hybrid gas and solar plant had been approved by the California Energy Commission (CEC), although a developer has not been found yet.

GE installs and services 9E turbine in Iraq

Feb 21 – GE Power has delivered and installed a 9E gas turbine to Iraq’s Ministry of Electricity’s (MoE) Al Qudus power plant. Throughout 2019, GE will also service up to seven GE 9E gas turbines at the facility, helping to maintain a stable power output of up to 875 MW.

MHI to join Cybersecurity Charter

Feb 20 – Mitsubishi Heavy Industries (MHI) signed a letter of intent to join the Charter of Trust for cybersecurity by the end of September, expanding the charter’s reach into Asia. Initiated by Siemens, the charter calls for binding rules and standards on cybersecurity as digitalization advances. Other signatories include AES, Airbus, Allianz, Atos, Cisco, Daimler, Dell Technologies, Deutsche Telekom, Enel, IBM, NXP, SGS, Total and TÜV Süd.

Substation market grows at 9.4% rate

Feb 19 – The gas-insulated substation market, currently valued at $17.3 billion, is anticipated to grow at a rate of more than 9.4% in the years through to 2025. Analysts say rising demand for low maintenance and small power systems will boost the market, particularly for large infrastructure projects such as smart city where GIS substations are well-suited due to their high efficiency and compact size.

Amprion advances P2G project in Germany

Feb 18 – Amprion, together with Open Grid Europe (OGE), are striving to get a €150 million Power-to-Gas project in Germany into operation by 2023. The pilot plant includes a 100 MW electrolyser that converts renewable energy into hydrogen and methane for use in the district of Emsland, northern Germany.

MHPS leads on post F-class turbines

Feb 15 – Mitsubishi Hitachi Power System (MHPS) secured most orders in 2018 for newest-generation turbines, while GE booked most order for turbines of all classes amongst its rivals. For so-called post F-class turbines, MHPS reportedly achieved 49% of orders, compared with 34% for GE and 16% for Siemens.

UK inflation down amid fall in energy prices

Feb 14 – Falling energy bills and fuel prices have pushed down UK inflation to a two-year low in January, according the Office for National Statistics (ONS). Inflation had peaked at a five-year high of 3.1% in November 2017, and is currently at just 1.8% – below the Bank of England’s 2% inflation target.

Lahmeyer is now Tractebel

Feb 13 –The German engineering and consulting company Lahmeyer International is now operating under the Tractebel, with the new company name; Tractebel Engineering GmbH. Tractebel reached a turnover of €662 million in 2018, and is part of the French energy group ENGIE.

BECCS pilot project starts at Drax

Feb 12 – The 4,000-MW Drax Power Station has started using bioenergy carbon capture and storage (BECCS) technology, capturing up to 1 ton of CO2 per day. The Drax demo plant in Selby, North Yorkshire, moves Britain further ahead in the race to develop BECCS technologies

Demand for power ships up 3.6% through 2026

Feb 11 – The global market for floating LNG-fuelled power ships is forecast to grow at an annual rate of 3.6%, exceeding exceed $1,073 million by 2026, according to ResearchandMarkets estimates. Power ships with a capacity between 100 MW and 150 MW, and usually leased for short durations, will cover most of the demand growth which is centred in Asia Pacific, sub-Saharan Africa and the Americas.

Australia’s H2U uses NovaLT turbine

Feb 8 – H2U, an Australian hydrogen infrastructure developer, will use Baker Hughes NovaLT gas turbine at is hydrogen and ammonia supply chain demonstrating plant in Port Lincoln. The greentech project integrates a 15 MW electrolyser plant, a 10 MW hydrogen-fired gas turbine and a 5 MW fuel cell, all of which set to supply electricity to the power grid in South Australia.

EC rules out Siemens/Alstom mobility merger

Feb 7 –The European Commission has decided to prohibit the proposed combination of the Siemens and Alstom mobility businesses. As a result of this prohibition, the merger will not proceed.

PG&E seeks to re-organize

Feb 6 – Having just filed for Chapter 11 bankruptcy, California utility Pacific Gas and Electric (PG&E) now seeks to restructure and access up to $6 billion in financing to help it operate while under bankruptcy protection. In a filing to the U.S. Bankruptcy Court for the district of northern California, PG&E listed assets of $71.39 billion and liabilities of $51.69 billion.

Contigo enhances trading of DB Energy

Feb 5 – Contigo, together with the consulting firm Nevento, have introduced a new energy trading system at DB Energie of Deutsche Bahn. The system’s new functionality provides fast and easy access to business data and credit risk information, enabling effective decision making in energy trading.

ABB, Intel cooperate on digital substations

Feb 4 – ABB and Intel have agreed to jointly sell automation systems for utilities. At the core of the agreement is ABB Ability smart substation control for electrical systems, SSC600, powered by Intel Xeon processors.

Backup power for Hinkley Point C

Feb 1 – Rolls Royce will provide MTU diesel gensets to provide back-up power to the Hinkley Point C nuclear power station in Somerset. The generators, Type MTU 396 TB33 with 3600 kW output each, will provide emergency power in case of an outage of the site’s standing power supply

Gauging UK’s shift to green energy

Jan 31 – Engineering consultancy WSP has been selected to model the impact of low carbon technologies on the UK’s electricity networks. It will also work with the Energy Networks Association (ENA) on the Distribution Losses Mechanism Study.