Daily News

Mass Global Investment Company has awarded a contract worth US$16 million to ABB to build a substation and a SVC Light system that will supply electricity for industrial infrastructure in Northern Iraq. ABB said it received the order in the first quarter.

A consortium consisting of GE and a CH2M HILL-UGL joint venture has been awarded an order to provide power generation for the Ichthys LNG power station. The order is worth more than US$900 million, GE said.

Rolls-Royce, a global provider of power systems, said today it has won a US$30 million order from Shell to supply two industrial RB211 gas turbines to boost the output from the Malampaya deepwater natural gas project in the Philippines.

Analysts at Société Générale are "not overly optimistic" on an upside for German power prices. Spark spreads are likely to remain unattractive, while overall power consumption dropped, the French investment bank said in a research note.

Combined marketed production from the top five natural gas producing states - Texas, Louisiana, Wyoming, Oklahoma, and Colorado – has risen about 7.5% in 2011, according to latest EIA statistics. Abundant domestic supplies and low gas prices reinforce the trend among U.S. power producers of switching from coal to gas.

ABB has won an order worth US$16 million from Qatalum, for upgrading the power network at its aluminum smelter in Mesaieed Industrial City, located about 50 kilometers south of Doha, Qatar. The order was booked in the first quarter, ABB said, with the project scheduled for completion by 2013.

MAN Diesel & Turbo will bring the prototype of a new 6 MW gas turbine family to the market shortly after development completion, Roland Herzog, Vice President, Material Technology at MAN Diesel & Turbo said today. "The first model of MAN's new 6 MW gas turbine will be commercially used at a CHP cogeneration unit at a chemical production plant in Rheinberg," he told 'Gas-to-Power Journal' at the sidelines of the 'Turbine Forum 2012' in Nice.

Japan's Tokyo Gas is considering building a third 400 MW gas-fired power plant unit at its Yokohama plant, Tokyo Gas president Tsuyoshi Okamoto said today.

The share of electricity production from gas-fired power plants has fallen to the lowest levels in 14 years due to "unfavourable market conditions and low demand," data published by the department of energy and climate change (Decc) shows.

Mitsubishi Heavy Industries (MHI) has won an order from TransAlta Generation Partnership, a subsidiary of TransAlta Corporation, to supply two M501GAC gas turbines for the proposed Sundance 7 power generation facility in Alberta.

Transco, a key gas transmission pipeline in the U.S., is preparing to increase gas transport capacity to satisfy rising gas demand for power generation. "Power generation is the driver behind about a third of the volumes in proposed projects in development on our Transco pipeline," Alan Armstrong, chief executive of Williams Partners' said.

Southern has burned more natural gas than coal for power generation during the first quarter of this year as plunging gas prices due to abundant domestic supply makes gas the cheapest fossil fuel in the U.S.

Entso-E, the representative body of European TSOs, is criticizing the lack of investment in power grid expansions to support the massive increase of renewable capacity throughout Europe. Gas-fired power plants are widely used to backstop the intermittency of electricity produced by renewable energy sources.

The impact of today's strike at E.ON's gas- and coal-fired power plants in France is expected to be "minimal" and will not curtail electricity output as the German utility is not planning to operate the affected plants.

The focus in hot section coatings is shifting from temperature to time. "It's all about coating durability," Carol Crowe, aftermarket coatings discipline chief at Pratt & Whitney said today.

News in Brief

France imports more Russian gas

March 21 – Demand for Russian gas continues to grow in France, with Gazprom’s exports rising 5.4% last year to 12.9 billion cubic meters (bcm). The upward continued into early 2019 and provisional estimates show some 2.5 bcm of gas was exported to France from January 1 to March 14, 2019, a 1.9% increase on the previous year period, Gazprom CEO Alexey Miller noted when discussing contractual supplies with his counterpart at ENGIE, Isabelle Kocher.

Merger wave grips UK oil &gas sector

March 20 – Significant pressures are here to stay in the UK oil and gas sector, with the trade association Oil & Gas UK (OGUK) saying the industry is facing a “new reality” amid high levels of M&A activity and the related transfer of assets. The ongoing consolidation process forces the industry to embrace new forms of collaboration and business models.

Chevron Nigeria to supply gas to Dangote

March 19 – Chevron Nigeria has agreed to supply natural gas to Dangote’s fertilizer plant in Nigeria. The deal is part of the international oil major’s gas supply obligation to the domestic market under the Nigerian Gas Master Plan.

POSCO wins $100m CHP deal in Mexico

March 18 – POSCO Engineering & Construction, part of the leading South Korean steelmaker POSCO, has signed a $100 million agreement with Ener AB to build a 100-MW combined heat and power plant in Mexico. Situated in Coahila, the CHP will serve the energy needs of the nearby Magnelec chemical plant.

Wood to install Siemens turbine in North Carolina

March 15 – Wood Group has secured a contract from Siemens to install a HL-class gas turbine at a power plant in North Carolina. Construction works are estimated to involve 400 people and last for approximately 11 months, Wood Group said. Once installed, the turbine will add 400 MW to the plant's existing capacity 1,200 MW. Financial details of the deal were not disclosed.

J-series turbine passes 750000 hours

March 14 – Mitsubishi Hitachi Power Systems (MHPS) has announced their global fleet of J-Series gas turbines accumulated over 750,000 hours of commercial operation. The J-Series fleet now includes 39 turbines in commercial operation, with 28 of those exceeding 8,000 hours and the fleet leader having more than 45,000 hours of operation.

German gas prices up 9% in March

March 13 – Household energy prices in Germany have risen substantially in March 2019, compared to the same month in the previous year, according to the price comparison site Verivox.  Electricity prices increased 5% to a new record of 29.42 cents per kilowatt hour (ct/kWh) in March to date, up from 27.99 cents a year ago, while natural gas prices jumped 9% to 6.1 ct/kWh.

MAN turbines commissioned at Chinese CHP

March 12 – MAN Energy Solutions has installed and commissioned a MGT6000 gas turbine and a THM-series gas turbine at a combined heat and power (CHP) plant that replaces a coal-based power plant in Changsa, Hunan Province. Another MGT6000 just started commercial operation at a cogeneration plant, optimized to run on natural gas, at an industrial zone of Dongguan City in Guangdong Province.

Gazprom breaks ground on 200-MW CHP plant in Serbia

March 11 – Russia’s state-run Gazprom has started construction of a combined-cycle gas cogeneration plant near Pancevo Refinery in Serbia. The site is owned by Novi Sadpart, part of Gazprom Neft Group. The 200 MW plant will be Gazprom Energoholding Group’s first power project outside of the Russian Federation and is slated for commissioning in 2020

ABB pilots digital control rooms in Sweden

Jan 8 – Swiss-based ABB has launched a new digital solution for control centers that is being pioneered and tested in a pilot project by the Research Institutes of Sweden (RISE). The cloud-based application works in synergy with many other ABB Ability solutions, and provides a platform for information-sharing.

MHPS opens new office in Bangladesh in bid to boost sales

Jan 7 – Mitsubishi Hitachi Power Systems, Ltd. (MHPS) has opened a branch office in Dhaka, the capital of Bangladesh, to strengthen its regional sales capabilities for thermal power stations. With the economy growing 6% in recent years, the Bangladeshi government seeks to boost the nation’s power generation capacity from currently 17 GW to approximately 24 GW by 2021 and further to 40 GW by 2030. To reach this goal, Bangladesh has started importing LNG amid state supports for private sector investment in large scale LNG-to-Power projects.

Shell mulls sale of Mahanagar Gas stake

March 6 – Shell India, the local business of Royal Dutch Shell, is considering to exit its city gas distribution business by selling its 10% stake in Mahanagar Gas Ltd. Shell acquired the stake in connection with the BG takeover in 2016, and last year already offloaded most of shareholding two two bulk divestment deals.

Siemens buys KACO’s string inverter arm

Jan 5 – Siemens announced it will acquire the string inverter business of the KACO GmbH, a manufacturers of power electronics, for an undisclosed amount. Siemens said wants to integrate KACO in its new Smart Infrastructure Operating Company, and expects the deal to close in H1-2019.

Power gen dominates Rolls-Royce’s engine business

March 4 – For the first time, Rolls-Royce Power System has manufactured more engines for electric power generation than for marine propulsion, the UK-based company said when reporting solid full year results. Revenue surged 15% to a record €3.9 billion in 2018, with adjusted profit up at €358 million resulting in a 9.1% return on sales.

Siemens produces module batteries in Trondheim

March 1 – Siemens has invested in a battery module factory in Trondheim, northern Norway, equipping the factory with a robotizied and digitally supervised production line with eight 300 MWh stations. Up to 55 battery modules per shift can be assembled every day, for use mainly in the marine and offshore market.

GE CEO committed to reduce debt “soon”

Feb 28 – General Electric CEO Larry Culp, in his first letter to shareholders, has said the company has too much debt and needs to reduce it “thoughtfully and soon.” Seeking to rebuild the ailing manufacturer, Culp focuses on GE’s four core businesses: power, renewable energy, aviation and healthcare. By adopting a “disciplined financial policy,” he wants GE achieve an industrial net debt/EBITDA ratio of less than 2.5x and a dividend in line with peers over time.

IEA launches ESCOs directory

Feb 28 – The International Energy Agency (IEA) has launched a new web resource dedicated entirely to energy service companies (ESCOs). The value of the global ESCO market grew 8% to $28.6 billion in 2017, helped by an 11% expansion in China and continued strong growth in the U.S.