Daily News

Wood Group GTS has secured a $10 million contract with Pasadena Water & Power (PWP) for repair and restoration of the GT-1 generating unit at their Glenarm Power Plant in Pasadena, California.

Despite most of the oil and gas production in the Gulf of Mexico being shut down following the landfall of Hurricane Issac, natural gas market in the US barely reacted. The abundance of shale gas supply has reduced the significant of offshore production, analysts say.

GE has been commissioned to install two of its aeroderivative gas turbines at a combined heat and power plant (CHP-1) in Yuzhno-Sakhalinsk, owned by OJSC (RAO Energy System of East). The total project cost is 3.3 billion rubles ($ 0.101 billion), GE said.

India's power ministry and the eight north Indian states, which were affected by prolonged blackouts after the collapse of the power grid on 30 and 31 July, have agreed on a 12-point resolution to avoid a similar crisis. "The Centre and the concerned states agreed to abide by a 12-point resolution to ensure that such breakdowns in the power grid do not recur," the ministry said in a statement.

Starting from 2013, E.on Russia will source its entire gas supply for its power plant fleet from Russia's second largest gas supplier Novatek instead of Gazprom. Under a $22 billion agreement, Novatek will supply gas to E.on Russia's plants at Smolensk, Surgutsk, Shatursk and Yaivinsk until 2027.

Alstom Poland has signed a contract worth close to €4 million (PLN 16 million) for the modernisation of a UK-50 type steam turbine at the Siekierki combined heat and power (CHP) plant, owned by PGNiG Termika SA, a subsidiary of state-controlled PGNiG. The retrofit is scheduled to be completed by September 2013.

The Indian government is not paying enough attention to smaller gas-based plants to cater for peak load demand as it focusses on large-scale coal-fired plants that provide base load capacity. The Indian power ministry recently awarded licenses for four Ultra Mega Power Projects with a capacity of 4,000 MW each. All plants are coal based.

The United States is currently facing its worst drought in decades which is likely to reduce power supply since electricity generation can be very water-intensive, the U.S. Energy Information Administration (EIA) warns.

Swiss power and automation group ABB has been awarded an order worth $60 million by American Electric Power (AEP) to replace a 30-year-old high-voltage direct current (HVDC)  converter station in Texas. The new station is scheduled to be operational in 2014.

Despite short term restraints in the market for gas-fired power generation, new analysis from Frost & Sullivan's Energy & Power Research expects "sound" medium- and long-term prospects and forecasts global gas-fired power plant orders to total 537 GW through 2020.

GE Energy Financial Services has served as lead arranger of an $107 million senior secured credit facility for two Illinois gas-fired peaker plants, managed by Tenaska Capital Management, LLC (TCM), an affiliate of Tenaska, one of the largest U.S. independent power producers.

The majority of the coal-to-gas switching activity in the U.S. is "permanent" as most utilities are not expected to revert investment decisions of converting coal plants to run on natural gas,  Moody's Investors Service said.

General Electric's (GE) has signed a 12-year, multimillion contractual service agreement (CSA) with Thailand's petrochemical company IRPC that includes the delivery of six GE Frame 6B gas turbines for a combined heat and power plant (CHP) in Rayong Province.

August 28 – ABB has been commissioned to launch the largest battery energy storage project of its kind in Switzerland together with EKZ, a power distribution utility.

ABB supplied EKZ with battery energy storage solution using Lithium-ion (Li-ion) batteries that can provide one megawatt of power during 15 minutes.

The storage facility is integrated into EKZ's power distribution network and is being used to evaluate
performance in key areas such as balancing peak loads and intermittent power supply, and the viability of the solution for grid optimization.

South Korea has risen high on the agenda of Siemens, Germany's engineering giant, who is targeting the country as a key growth market for gas turbine sales.

Sales prospects and revenue generated in Asia and the Middle East currently more than offsets reduced earnings in ailing European markets, says Lothar Balling, Head of Gas Turbine Power Plant Solutions in the Fossil Power Generation Division at Siemens Energy.

News in Brief

Quarrels over contract award

June 26 – Guam Power Authority’s decision to award a contract to finance, build and operate a new 180 MW power station on the island to Korea Electric Power has sparked protest by rival bidders. Four companies had submitted proposals – Korea Electric, Osaka Gas, Powerflex and Hanwha Energy Corp. Declining to comment on the quarrels over the contract awarding process, GPA said the deal with Korea Electric is expected to be closed by September 9, pending a related impact study.

PTT steps up power sector investment

June 25 – Thailand's state-run PTT Pcl has decided to boost investments in the retail and industrial power sectors to help insulate the energy company against the impact of a global economic slowdown on its oil refining and chemical businesses. Referring to the Sino-U.S. trade war as a global challenge, PTT chief executive Chansin Treenuchagron said the company is looking “how we can survive in the short term.”

APR helps power Libya’s recovery

June 24 – Libya’s state-owned GECOL has asked APR Energy to bring in temporary generators to provide a rapid 450 MW boost. Under the latest contracts, APR provided mobile gas turbines at four key sites in Libya (250 MW) as well as 200 MW of diesel generators at two sites.

GE supplies SCADA to New Zealand

June 21 – GE’s Renewable Energy Grid Solution’s business has won an order from two New Zealand utilities to upgrade their traditional Supervisory Control and Data Acquisition (SCADA) systems with GE’s Advanced Distribution Management Solutions (ADMS). The orders were placed by Top Energy Ltd with some 31,000 customers and Northpower serving over 60,000 customers, though the contract values were not disclosed.

Top 5 OEMs to rule two thirds of global wind market

June 20 – After a decade of fragmentation, the top 5 turbine OEMs are consolidating again and Wood Mackenzie anticipates key players will surpass a combined market share of 68% by 2020, up from 47% five years ago. Vestas, SGRE and GE remain the top 3 wind turbine producers wwhile the Chinese leaders, Goldwind and Envision, are becoming increasingly popular due to their product reliability and track record.

Keane to merge with C&J Energy

June 19 – Oil- and gasfield service providers C&J Energy Services and Keane Group have agreed a merger-of-equals in a $746 deal that will give the two companies the necessary uplift in an industry burdened by budget cuts of hydrocarbon producers. The 50:50 merger will create a company will create a company with a combined enterprise value of $1.8 billion, including $255 million in debt. The deal is expected to close in the fourth quarter of this year.

Evol LNG helps power Australian gold mine

June 18 – Kirkalocka Gold Mine in Western Australia will use Evol LNG to fuel Zenith Energy’s 14.5 MW power station with regasified natural gas starting from September 2019. The mine is run by Adaman Resources and had been relying on diesel to cover its energy needs. Based on the current diesel price, Adaman Resources expects to reduce fuel costs by more than A$13 million (US$9 million) during the first six years of operation of the new onsite LNG-to-Power plant.

Shell Energy ordered to refund overcharged UK customers

June 17 – UK energy regulator Ofgem has ordered Shell Energy Retail to refund around 12000 customers who were overcharged after the Government’s cap on gas and electricity prices came into force in January. Shell Energy Retail s agreed to refund these customers by paying £29,000 in compensation (£5 per fuel), and also pay an additional £200,000 into Ofgem’s voluntary redress fund.

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.