Daily News

Siemens and the Nigerian company Scanpower have signed a technical partnership agreement for the construction of a 1,600 MW gas turbine power station at Lekki in Lagos state. The German engineering giant also announced it entered a strategic partnership with the Nigerian Federal Ministry of Power to support the financing of power plant projects "on a case-by-case basis".

Electricity Supply Board (ESB), Ireland's premier utility, plans to spend £750 million (US$1,207 million) to build a new 1,500 MW gas fired power plant in Britain. Operational start of the plant is scheduled for 2018, an EBS spokesman confirmed today.

Saudi Aramco has commissioned International Power and GDF SUEZ (IPR-GDF Suez) to expand the Tihama power plant sites, located in Saudi Arabia, by 532 MW. Long-term offtake contracts through to 2026 have been signed for this expansion, the two companies said today.

February 2012 was an "outlier" in electricity consumption and should be considered as such, Societe Generale  analysts, led by Paolo Coghe and Thierry Bros, wrote in the Energy Pulse report issued today. The prolonged and record-breaking cold spell endured by Europe during the first half of February resulted in strong electricity  consumption – but just for the month itself.

Gas prices across Europe need to drop by 20% to make the fuel competitive with coal for power generation during hours of peak demand, Vitol's gas head David Gallagher said. At that level it would make economic sense for electricity producers to switch from burning coal to gas.

Reliance Industries, India's biggest company by market capitalisation,  has filed for arbitration this week, claiming the Indian government is restricting it from recovering cost on developing an offshore gas block. The dispute prompted Reliance to curtail gas supplies to Indian power plant operatiors, leaving India with a severe electricity shortage.

International Power (IP), a London-based energy group, has posted a 5% rise in  revenues to €4,257 million in the first quarter driven by strong growth in Asia and Lation America. In an interim management statement, IP said revenue in Asia surged 22% to Eur491 million while revenue in Latin America increase by and 16% to Eur1.021 billion.

Investments in new combined cycle power plants  (CCGTs) in Germany are "highly problematic" without the introduction of capacity remuneration mechanisms as the internal rate of return (IRR) for such projects is close to zero, Reinhard Rümler, senior manager, energy advisory at PwC told Gas-to-Power Journal.

Operators of gas-fired power plants in Spain are confronted with slower repayments of loans taken out to build their assets as the run-time hours of plants are curtailed by preferential grid feed-in of renewable energy.

Gains for gas demand in the power and industrial sector will offset a decline in gas demand for residential use, Howard Gruenspecht, acting administrator, U.S. Energy Information Administration (EIA) said today. The share of natural gas in the U.S. energy mix is forecast to rise 27% by 2035, from 24% in 2010, according to EIA forecasts.

Ofgem, the U.K. energy regulator, warns Britain might face a gap in power generation capacity as ageing plants are being retired while construction of new nuclear, gas-fired or offshore wind power projects are delayed. "Britain is facing pretty frightening times with regards to spare capacity," Alistair Buchanan, Ofgem CEO said today.

Except for Europe, the global gas-to-power sector is expanding rapidly driven by rising electricity demand in emerging markets. "Even if gas is regulated to death in Europe, the growth of gas-to-power generation will continue outside Europe," Stefan Judisch, chief executive of RWE Supply & Trading said today.

The share of gas-fired power generation is likely to rebound in the mid-term future in line with growing renewable power production. "The key driver for gas demand growth in Europe will come from the power generation sector," Klaus Schäfer, CEO, E.ON Trading & E.ON Ruhrgas forecast today.

Gas does not get to play its rightful role in the European energy mix, Rune Bjornson, senior vice president natural gas, Statoil said today. Adverse economics currently hamper the rise of gas in the energy sector, he said, suggesting "the price of carbon is far too low to incentivise a switch from coal to gas".

China is set to become "the engine of global gas demand" in the coming years, as opportunities for a greater share of gas in power generation arise due to Government concerns about air pollution, Fatih Birol, chief economist at the International Energy Agency (IEA) said today.

News in Brief

U.S. turbine market to top 14GW by 2024

Nov 14 – The U.S. industrial gas turbine market is expected to exceed 14 GW by 2024. Federal government initiatives to expand the penetration of natural gas-fired station will augment the industry outlook, according to a Market Study Report.

Xcel snaps up Mankato Energy Center

Nov 13 – U.S. electric utility Xcel Energy has agreed to purchase Mankato Energy Center in Minnesota from Southern Power in a $650 million deal. A second gas-fired power unit is scheduled to come online in 2019, set to increase the plant’s total generating capacity to 760 MW.

Shell re-focuses on new energies

Nov 12 – Electricity and new green fuels have risen on the agenda of Royal Dutch Shell, with the company announcing plans to invest up to $2 billion a year through to 2020. “That might seem modest by oil and gas standards, but we can do a lot with it in this space,” commented Brian Davis, Shell’s VP energy solutions.

Kollsnes shut down

Nov 9 – A collision between the frigate Helge Ingstad and the tanker TS Sola off the Sture terminal near Bergen in western Norway has led to the closure of the Vestprosess pipeline and Kollsnes gas processing plant, the Norwegian TSO Gassco said in a market note.

MHPS to service Uzbekenergo’s power plants

Nov 8 – Mitsubishi Hitachi Power Systems, Ltd. (MHPS) has signed an accord with state-owned Uzbekenergo and Mitsubishi Corp to collaborate in a service and maintenance program (CSMP) for power plants in Uzbekistan. The agreement is meant to help grow the reach of Japanese companies in Central Asia.

Austria to import more Russian gas

Nov 7 – Russia’s gas giant Gazprom and OMV of Austria have signed Gazprom and OMV an amendment to their supply contract, stipulating deliveries to Austria will be increased by 1 Bcm/y beyond the contractual. In the first ten month of 2018, alone supplies of Russian pipeline gas have grown by a third compared to the previous year, reaching 8.8 Bcm.

UK launches 1st geothermal plant

Nov 6 – The UK’s first geothermal electricity plant has gotten underway today, backed by £18 million in funding. Drilling started using a rig from Helsinki. Once operational, demonstration plant will deliver up to 3 MW of electricity to the National Grid.

Germans register more EVs

Nov 5 – Electric vehicles (EVs) are gaining popularity in Germany: The share of pure EVs in s new car registrations climbed to 1.3% in October, as the total number of new EVs increased 55% year-on-year, according to the Federal Motor Transport Authority (KBA). Hybrid cars account for a 4.4% market share, diesel fell to 31.8% and the lion’s share of 62.3% is still taken by petrol models.

GE retrofits Wet FDG in India

Nov 2 – India’s largest energy conglomerate NTPC Ltd. has asked GE Power to supply and install Wet Flue Gas Desulphurization (Wet FDG) technology at four power plants in a deal worth US$247 million. The four facilities are the 2x660 MW Solapur power plant, the 2x660 MW Tanda Stage-II, the 1x500 MW Feroze Gandhi Unchahar project and the 2x660 MW Meja power project.

Floating power barge

Nov 1 – Siemens has developed barge-based, turnkey floating power solutions that take a critical part of an FLNG facility’s infrastructure — power generation — off a project’s critical path. According to the manufacturer, this helps reduce overall project execution time by as much as 25% or more, maximizing return on investment.

KBR posts 28% rise in profit

Oct 31 – U.S. engineering company KBR has reported a rise in net profits and voiced optimism to secure more mid-scale LNG and downstream projects with its joint venture partner ConocoPhillips. Third-quarter revenues rose by more than 23% to $1.27 billion, compared with $1.03bn in Q3-2017. Net profit was $58 million, up 28% from $45m in the year-ago period.

Togo: IPP gets go-ahead

Oct 30 – Eranove, a private equity-backed independent power producer (IPP), has received the green light for a $110 million power project in Togo. A concession agreement was signed for the combined-cycle power plant to be built in the area of Lomé port. The Spanish firm Grupo TSK was selected as EPC contractor for the 65-MW project.

Goldman, Cargill fined for avoiding tax on Teeside

Oct 29 – Goldman Sachs and Cargill have been hit with a £79 million fine for dogging tax on their ownership of a Teesside power plant. The two U.S. banking giants took over Teesside Power Ltd after the collapse of Enron in 2001, and HM Revenue and Customs just won a court case against the two trading houses over a tax avoidance scheme.

Gazprom to start production at Kovyktinskoye in 2019

Oct 26 –The Russian gas giant Gazprom has announced it will to start production drilling at the vast Kovyktinskoye field in 2019, with a view to start feeding gas from Kovyktinskoye into the Power of Siberia gas pipeline in late 2022. Situated in eastern Siberia near Lake Baikal, the field holds an estimated 2.7 Tcm of gas reserves, and 90.6 million tons of gas condensate, and 25 Bcm/y of planned design capacity.

MAN launches ETB blower in China

Oct 25 – A new Electrical Turbo Blower, the designated ETB40, has been launched by MAN Energy Solutions at a ceremony in Shanghai hosted by its two-stroke licensee, CSSC-MES Diesel Co. (CMD). The blower raises the exhaust-gas pressure in order to overcome the pressure difference between exhaust gas and scavenging air receiver.

IEA and China collaborate on energy efficiency

Oct 24 –The International Energy Agency (IEA) and China’s National Development and Reform Commission (NDRC) have agreed to work together on energy efficiency. The IEA acknowledged China has made strong progress on energy efficiency in recent years, and led energy intensity improvements globally.

ABB relays help protect Brussels power grid

Oct 23 – Sibelga, the distribution system operator (DSO) of the Brussels metropolitan area, implements ABB’s Relion 615 series relays to ensure a protected power supply for 700,000 citizens. The agreement will see ABB add medium-voltage control relays to remote terminal units (RTUs), most of which will be retrofitted.