Daily News

Wärtsilä Cooperation, a supplier of flexible power plant solutions, has been awarded two contracts to deliver power plant generation equipment to two power plants in Bangladesh. "The orders are included in the fourth quarter 2011 order book," the company said.

EU Commissioner Gunther Oettinger has advised RWE and E.ON to join forces and consider merging their businesses in order to become a truly competitive German player on international energy markets.

Israel's Dalia Energy confirmed today it entered a $5 billion gas supply agreement with Delek Drilling and its partners to purchase natural gas produced at Israel's Tamar gas field over a period of 17 years. The gas supplied under the deal will be solely used for power generation, a Dalia Energy representative told 'Gas-to-Power Journal'.

Denmark's DONG Energy has implemented the REMIT regulation and will publish production data from its power plants on its website "very soon", the Danish utility confirmed to Gas-to-Power Journal today.

Electricity of Vietnam (EVN) plants to invest in nine power generation projects in 2012 in an effort to boost domestic electricity supply to match rising electricity demand in the south-east Asian country.

India's TATA Power Company Limited (TPCL) will use natural gas, not coal, as a fuel to operate its proposed 2,000 MW power plant, located near Naraj Marthapur, Barang. TPCL decided to change the technology of its proposed plant towards using more environmentally friendly natural gas, following a row with green activists over potential fly ash generation from the proposed coal-fired plant on the wildlife in the Chandaka Dampada sanctuary.

Tokyo Electric Power (Tepco) said it will increase the power generation capacity of gas turbines at its Chiba power plant, located close to Tokyo. The move is part of efforts to boost the company's overall power generation capacity from gas-fired plants to counterbalance the loss in electricity generated from nuclear reactors after the Fukushima nuclear crisis.

Deutsche Bank today slashed its price projections of the German baseload power price for 2012 and 2013 on the back of an expected drop in demand of electricity, natural gas and carbon emission allowances in Europe in the prolonged recession.

Bis Enerji, the developer of one of Turkey's largest independent power plants has again selected General Electric (GE) as a supplier of a 48-megawatt (MW) LM6000-PC Sprint aeroderivative gas turbine and related services to independent power producer Bis Enerji Elektrik Uretim AS. The new LM6000-PC Sprint unit and an associated steam turbine–generator will increase the cogeneration plant's installed capacity from 410 MW to 495 MW when it enters commercial operation in August 2012.

The European Network of Transmission System Operators of Gas (entsog) has forecast that Europe has sufficient stocks of natural gas in storage to meet demand in the event of a cold-spell, when demand surges 10% above normal levels.

Investments in carbon capture storage (CCS) for new-built and operational power plants has a softening effect on carbon prices - albeit not a big one, Energy Brainpool's chief analyst Tobias Federico estimates.

"The scale of the price effect largely depends on how widespread the implementation of CCS technology will be implemented in the power generation sector," he told Gas-to-Power Journal in an interview.

Russia's Gazprom and the German utility RWE have ended negotiations on a potential joint venture (JV) for building and operating gas-fired power plants in Germany, the Netherlands and in the U.K., RWE confirmed. "We were unfortunately not able to agree on a framework for co-operation which would be sustainable for both parties," Jürgen Grossmann, RWE chief executive commented on the end of JV talks today.

Russia's gas export monopoly Gazprom is considering building gas-fired power plants in the southern German state of Bavaria, following the ratification of a roadmap for cooperation in power generation and gas supply. "The document sets out the intentions of Gazprom and the Federal State of Bavaria to cooperate on power production in Bavaria," Gazprom said today.

UK energy regulator Ofgem will foster the transparency between retail and wholesale energy prices by disclosing price reports more frequently than in the current 3-4 month timescale. "Ofgem is to move towards updating the report on a weekly basis in the New Year," it said in a statement today.

E.ON UK has begun commercial operations at its Holford gas storage plant in Cheshire in the north-west of England. Once completed, the projected gas withdrawal rate at the facility will be 16 MMcm/day – sufficient to qualify the Holford gas storage plant as vital backup infrastructure for supplying fuel to gas-fired power plants.

News in Brief

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.

Fuel-switch capability falls

Oct 22 – U.S. manufacturers’ capability to switch fuels keeps falling because the equipment onsite does not support it. The amount of commonly used fuels that could readily be switched in less than 30 days dropped from 24% in 1994 to currently less than 10%, according to EIA figures. This trend leaves manufacturers vulnerable and less able to adapt to changes in regulations, market conditions and fuel prices.

Gazprom Export joins tax monitoring

Oct 19 – As Gazprom Groups transitions to a new form of tax control – tax monitoring, Gazprom Export will be the first unit to join the new regime as of January 1, 2019. Russia’s Federal Taxation Service (FTS) will be given remote access to Gazprom Export's data mart, with the new cooperation intended to streamline tax administration practices, reduce audit costs, and bring tax disputes to a minimum.

Wärtsilä 31DF engine to power cruise ship

Oct 18 – Wärtsilä’s 31DF dual-fuel engine has been selected to power a polar ice-class cruise vessel, built for the French operator Ponant at the Vard Søviknes yard in Norway. The equipment is scheduled to be delivered in 2020, one year before the in-service date of the cruise ship.

U.S. navy bases mulled to handle coal, gas exports

Oct 17 – U.S. Secretary of the Interior Ryan Zinke has proposed using some West Coast naval facilities to handle U.S. coal or natural gas exports, thereby circumventing local opposition. In particular, the abandoned military base at on Adak Island could be an option as an LNG export hub, he said.

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.