Nigeria's government is eager to fast-track its long debate 'Gas Master Plan' by backing the creation of public private partnerships (PPP) as investment vehicles for the construction thermal power plants in the Niger Delta and western Nigeria. The minister of petroleum, Diezani Alison-Madueke today reinforced the government's commitment of "Repositioning Nigeria as the regional hub for gas based industrialisation.
European utilities are profiting from a rebound in a power prices and production margins, Societe Generale commodity analysts said, estimating that between 20% and 50% of hedge for 2012 has been achieved by higher generation margins post Fukushima. "Some utilities have delayed their hedging strategy and will thus benefit from higher margins post-Fukushima that should flow into the accounts as soon as 2012," the bank said in a recent report.
General Electric (GE) will supply Russian power plant with a 109FA combined-cycle system under an upgrade and long-term service agreement. The expansion will add 400 MW of electricity output to the gas-fired plant, GE said.
Britain's first large-scale pilot coal-fired power project with subsequent carbon capture storage technology – has been launched late Wednesday in Ferrybridge, West Yorkshire. Coal + CCS is seen as an alternative to gas-fired power generation.
RWE/Turcas' Denizli power plant is expected to be commissioned by the end of 2012 as planned, Dr. Ralph Jaeger, CFO of RWE Turkey said today. Speaking on site, Jaeger gave an updated on the progress of the Denizil natural gas combined cycle power plant (CCGT) and said the construction was "on schedule".
After a series of severe power shortages in Japan, the Tokyo metropolitan government is now gearing up to close the power generation gap by building 60 large-scale gas-fired power plants.
Retail power prices in China will rise starting Thursday this week, China's National Development and Reform Commission (NDRC) announced today.
International Energy Agency's Executive Director, Maria Van der Hoeven sees "golden prospects for natural gas. However she urged the gas industry in Riyadh today to step-up security standards in unconventional gas production.
Coal is forecast to increase in its competitiveness against gas, Société Générale said in a research note on Tuesday. "Demand for imports [of coal] will in our view keep on increasing, even if more slowly," analyst Emmanuel Fages said with reference to the expected recession in the Eurozone throughout 2012.
Norway's Statkraft Markets will decide on whether to shut down operations of two gas-fired power plants in Germany in February 2012, Jürgen Tzschoppe, head of the Norwegian utility's German subsidiary Statkraft markets told 'Gas-to-Power Journal' today.
Shell confirmed today it signed a final agreement to form a joint venture (JV) in Iraq with Basrah Gas Company to gather raw gas from three major oil fields. The gas production from these field (Rumaila, Zubair and West Qurna 1) is currently flared in Basrah, a Shell spokesperson told 'Gas-to-Power Journal' today.
The gas value chain is integrating as upstream companies such as Gazprom and Taqa have an incentive to venture beyond their midstream activities into gas-to-power. "Upstream players - producers of oil and gas – have an incentive to go downstream," Sybren Hettinga, head of European gas structuring at Cargill, told 'Gas-to-Power Journal' in an interview.
The Russian gas giant Gazprom and Essen-based RWE are in negotiations to form a joint venture (JV) on power generation, an RWE spokesperson confirmed to 'Gas-to-Power Journal' today. "We do not comment on the status of negations," he said, adding joint projects in gas-to-power would be "one of the options".
Matteo de Zan, head of Enel's industrial development, generation and energy management division said the operational start-up of a gas-fired power plant in Belgium is expected in early 2012. "We are waiting for the plant to start operations in the coming months; the plant is currently in its commissioning stage," he told 'Gas-to-Power Journal' in an interview.
Hyundai Engineering and Construction (HDEC) and Metka are set to build a gas-fired power plant in Basra, Iraq. The 1,500 MW gas-fired plant will be constructed near the southern Iraqi city of Basra in southern Iraq.
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.
