Daily News

Gas generation is the quickest way to dent India's energy hunger and underpin economic growth, but "what matters is the delivered price of gas in India," says B.C. Tripathi, chairman and managing director at GAIL, India's largest gas transmission and marketing company.

ExxonMobil is developing a coal-seam gas (CSG) acreage in Indonesia that could provide natural gas for two combined-cycle power plants in Java or feed-gas for the country's LNG production complex at Bontang, Steve Buck, exploration manager at ExxonMobil Exploration said at the 2012 Gastech conference in London.

Wärtsilä, in a consortium with South Korea-based Lotte Engineering & Construction, has been awarded a turnkey contract to build a 573 MW tri-fuel power plant in Jordan. The overall contract is valued at $552 million of which Wärtsilä's share is $334 million, the Helsinki-headquartered company said.

Austria's Econgas foresees no imminent growth in Germany's gas demand, according to Norbert Kint, head of trading at the Austrian utility. "In 2013, renewable energy supply will continue to eat into consumption levels of gas for power generation," he said in a panel session at the Gastech conference in London.

Are European regulators toothless tigers? Gunnar Streck, regulatory manager at E.on Energy Trading has criticized the "lack of ambition on the regulatory side to enforce rules that could ultimately lead to an integrated European energy market".

Coal has been displacing gas generation in Europe since 2009 and the International Energy Agency expects this trend to continue: "We will have a Golden Age of Coal in Europe, at least over the next five years," says Anne-Sophie Corbeau, senior gas analyst for the International Energy Agency (IEA).

SSE, formerly known as Scottish & southern Energy, has completed the acquisition of Endesa Ireland Ltd for a total cash consideration of 308m plus an estimated 53m for working capital, the UK utility said on Tuesday. Once completed, the acquisition makes SSE the third largest generation capacity owner in Ireland's all-island Single Electricity Market (SEM) with 1,568 MW, or around 13% of installed capacity, in operation.

Gazprom is considering laying down a third 27.5 Bcm/year pipeline leg of Nord Stream as it aims to increase gas supplies to Germany, Netherlands and the UK. "Investment decision will be made in a short time," the Russian energy minister Alexander Novak said at a press conference at the Gastech conference in London today.

China, the fastest growing gas market globally, is forecast to keep growing at annual rates of around 13 percent, Anne-Sophie Corbeau, senior analyst at the International Energy Agency (IEA) said today, but she cautioned that the two-tier pricing system, with high prices paid for LNG imports and regulated low domestic gas prices, will keep hampering the growth of gas generation.

Siemens has been awarded contracts for the combined cycle conversion of two gas-fired simple cycle power plants in Argentina by Unión Temporal de Empresas (UTE), a joint venture between Isolux Ingeniería and Inversora Andina Ibérica. The upgraded plants are scheduled to achieve commercial operation in the fall of 2014.

BG Group chief executive Frank Chapman has today said US LNG exports would add flexibility to global gas market, but he cautioned that exported volumes will not big enough to change the regionalized pricing structure of global LNG markets.

UK energy and climate change secretary Edward Davey has today urged the gas industry to step up investment, singling out gas generation with carbon capture storage (CCS) as "vital" to provide backup electricity supply as generation margins are seen dropping to close to zero by 2015/16.

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.

News in Brief

BASF enters battery market

June 14 – German chemical company BASF is using NGK Insulators’ sodium sulfur batteries as its entry point into the energy market. The Japanese manufacturer NGK is currently the only maker of the large-scale sodium sulfur (NAS) batteries, capable to store several hours of energy. A joint project in northern Germany uses NAS batteries that store energy for five hours, while a recently completed project in Abu Dhabi using 108MW / 648MWh of the systems with a full six hours storage duration.

CNPC boosts domestic gas production

June 13 – China National Petroleum Corp (CNPC), the largest Chinese oil and gas company, has announced plans for domestic natural gas output to reach 55% of overall domestic supply by 2025. Last year, CNPC managed to boost production by 5.9% to reach 138.02 billion cubic metres, while also increasing imports of pipeline gas and LNG.

Gazprom taps new gas deposits for Nord Stream 2

June 12 – Gazprom is fast-tracking hydrocarbon production in northwest Russia to boost reserves for export through the Nord Stream 2 pipeline (55 Bcm/y), currently being built through the Baltic Sea. At a meeting with Nord Stream shareholders, Gazprom noted that its Yuzhno-Russkoye field has yielded about 276 Bcm of natural gas, including 0.9 Bcm of hard-to-recover Turonian gas, since the start of operations. Turonian gas reserves, consisting of about 99% methane with no heavy residues, lie at a depth of 800–850 meters in reservoirs with low permeability. Commercial production at the Turonian deposit is scheduled to start in late 2019.

PG&E turns off electricity to avoid wild fires

June 11 – Pacific Gas and Electric Company (PG&E) has turned off electricity for some Californian communities at risk of a wildfire during the lastest heat wave. The authorized blackout started on Saturday in Napa, Solano and Yolo counties, with electricity being gradually restored over the course of Monday. Approximately 16,000 customers have been affected.

Gazprom to build power plants in Serbia

June 10 – Gazprom Energoholding has signed an Agreement of Intent (AoI) to build an upgrade several gas-fired power plants in Serbia. Together with Novi Sad, Gazprom Energoholding is already building a CCGT with some 200 MW capacity near a refinery in the Serbian town of Pancevo.

U.S. fund splashes out $4bn to buy El Paso Electric

June 7 – Infrastructure Investment Fund (IIF), a private investment vehicle within J.P. Morgan Inc., has agreed to acquire the U.S. utility El Paso Electric Co for $68.25 per share in a cash transaction. The enterprise value on the transaction is estimated at $4.3 billion. El Paso Electric customers will receive a total $21 million in bill credits over three years.

Caterpillar gensets back up Finnish data center

June 6 – The Swedish telecom giant Telia has ordered 12 Caterpillar gensets to provide standby emergency power to back up operations at its new data center in Helsinki. The Cat dealer Witraktor figured a system which includes eight Cat 3516B and four 3516E generator sets. The Telia Helsinki Data Center is the largest such facility in Finland, and its primary electric power supply comes from a combination of wind, hydroelectric and biomass.

Capstone wins orders in Iraq

June 5 – Micro-turbine producer Capstone has secured an order for two C600 Signature Series microturbines to provide 1.2 MW of energy to power a triethylene glycol (TEG) dehydration facility near Basra, in southern Iraq. The contract also includes Capstone’s new self-cleaning pulse filtration system, allowing the turbines to better withstand hot and sandy conditions with minimal maintenance.

Gas to supply record 43% of US power needs

June 4 – This summer, natural gas is forecast to cover between 40% and 43% of 2019 peak electricity demand in all U.S. states except Texas, according to projections by the Energy Information Administration (EIA). Gas demand soared to nearly 10,700 billion cubic feet (Bcf) last summer, a 16% rise from 2017 levels. Should there be another heat wave this year, that record may well be broken. Capacity wise, natural gas is on course to top its 45% share in the U.S. power mix.

Lukoil to upgrade CHP at Krasnodar

June 3 – Russia’s oil and gas company Lukoil has received government approval to modernize and expand three combined heat and power units in Krasnodar. The gas-fired CHP units have more than 400,000 hours and ran an average 74% utilization rate, the operator said. The upgrade will add 150 MW of power generation capacity and Lukoil said it expects the revamped power plant to be ready for commissioning as early as 2022.

GE commissions Al-Qudus CCGT in Iraq

May 31 – GE Power has installed and commissioned a new 9E gas turbine at the Al-Qudus combined-cycle gas power plant, run by the Iraqi Ministry of Electricity’s (MoE). The CCGT was previously capable of generating up to 1,125 MW and the turbine upgrade adds another 125 MW of capacity.

Groundbreaking takes place for Ohio CCGT project

May 30 – This Thursday morning, groundbreaking will take place for the $500 million Long Ridge Energy Generation Project in Hannibal, Ohio. Long Ridge, a 485 MW combined-cycle power project, is being developed by Fortress Transportation and Infrastructure Investors (FTAI). It will create up to 350 construction jobs and some 25 permanent jobs. The CCGT is expected to open in 2021.

Asia to spend more on renewables than oil & gas by 2020

May 29 – Utilities in Asia-Pacific region will invest more in renewables than on oil and gas exploration by 2020. Total capital expenditure in renewables will rise above $30 billion in the region by 2020, according to forecast of the consultancy Rystad Energy. India, Australia, Japan, Vietnam and South Korea will led the way in Asia’s green energy transition.

Ichthys LNG looses court claim against power sub-contractor

May 28 – JKC Australia LNG consortium, developer of the US$34 billion Inpex-built Ichthys LNG plant near Darwin, has lost a US$1.9 billion court case claim against a power station sub-contractor. Construction of the power station was subcontracted to UGL-led group which CIMIC took over in 2016 and subsequently cancelled the Ichthys power contract. The Western Australian Supreme Court in Perth now dismissed an application by JKC Australia LNG for upfront payment of damages. The power plant’s five gas turbines have already been handed over to Inpex, and KBR aims for the plant to be ready for commissioning this autumn.

San Miguel Energy claims $6.19bn subsidy for Ilijan plant

May 24 – South Premier Power Corp. (SPPC), San Miguel Energy’s development vehicle for the 1,200-MW Ilijan gas power project, has claimed that it already paid $6.19 billion in subsidies to state-run Power Sector Assets and Liabilities Management Corp (PSALM) for its financial obligations as independent administrator. The build-operate-transfer (BOT) contract for the Ilijan plant will expire in 2022; and by that time, SPPC will get ownership of the plant.

Evolve approved as energy storage for VPPs

May 23 – Eguana Technologies’ new Evolve system has been officially approved as an energy storage system for Simply Energy’s Simply Extra VPP (virtual power plant) offer in South Australia. Customers who purchase an Evolve system can sign up for the Simply Extra VPP offer and receive up to $5,100 in VPP Access Credits. These credits will be calculated on a daily basis at $3.49 per day to a maximum of A$5,100, credited over a five year period.

EIA launches State Energy Portal

May 22 – The U.S. Energy Information Administration (EIA) has released a new State Energy Portal, providing interactive energy data and customizable views of more than 150 charts, tables, and maps. The new portal gives users access to more than 1,700 state- and regional-level data series from more than 50 data sources.