Daily News

Alstom has developed a new nozzle design for gas turbines and is getting ready to put it to production. "We started to use them in production, now that we've solved an initial problem with nozzle life time," Sebastian Mihm, coating engineer at Alstom said today.

Robustness and increased thickness of thermal barrier coatings (TBC) of industrial gas turbines  is 'key' as the industry aims to ramp up firing temperatures and pressure ratio to boost turbine performance. "We need to spend more R&D money on TBC process robustness," Matthias Oechsner, professor for materials technology at the technical university of Darmstadt, Germany, told an industry forum in Nice today.

Danske Commodities has started to take on physical power generation assets by buying a 38 MW combined heat and power (CHP) plant outside Copenhagen from Dong Energy. The acquisition marks the first move  of the Danish energy trading house to get risk exposure to power generation assets. Other purchases may follow "if the price is right," Jakob Bendixen, head of power generation at Danske Commodities said. 

ABB has delivered in record time a Symphony plant automation system for a 500 MW supercritical unit at South Korea's largest thermal power plant in Boryeong. The speedy delivery enables the unit to start production 11 days ahead of schedule, ABB said today.

 A new gas-fired combined heat and power (CHP) plant could be on the horizon for the Milford Haven waterway, South Hook LNG has confirmed. The news comes after the UK Government announced its backing for a major expansion in gas generated electricity to avert a looming gap in power generation capacity.

Siemens and the Nigerian company Scanpower have signed a technical partnership agreement for the construction of a 1,600 MW gas turbine power station at Lekki in Lagos state. The German engineering giant also announced it entered a strategic partnership with the Nigerian Federal Ministry of Power to support the financing of power plant projects "on a case-by-case basis".

Electricity Supply Board (ESB), Ireland's premier utility, plans to spend £750 million (US$1,207 million) to build a new 1,500 MW gas fired power plant in Britain. Operational start of the plant is scheduled for 2018, an EBS spokesman confirmed today.

Saudi Aramco has commissioned International Power and GDF SUEZ (IPR-GDF Suez) to expand the Tihama power plant sites, located in Saudi Arabia, by 532 MW. Long-term offtake contracts through to 2026 have been signed for this expansion, the two companies said today.

February 2012 was an "outlier" in electricity consumption and should be considered as such, Societe Generale  analysts, led by Paolo Coghe and Thierry Bros, wrote in the Energy Pulse report issued today. The prolonged and record-breaking cold spell endured by Europe during the first half of February resulted in strong electricity  consumption – but just for the month itself.

Gas prices across Europe need to drop by 20% to make the fuel competitive with coal for power generation during hours of peak demand, Vitol's gas head David Gallagher said. At that level it would make economic sense for electricity producers to switch from burning coal to gas.

Reliance Industries, India's biggest company by market capitalisation,  has filed for arbitration this week, claiming the Indian government is restricting it from recovering cost on developing an offshore gas block. The dispute prompted Reliance to curtail gas supplies to Indian power plant operatiors, leaving India with a severe electricity shortage.

International Power (IP), a London-based energy group, has posted a 5% rise in  revenues to €4,257 million in the first quarter driven by strong growth in Asia and Lation America. In an interim management statement, IP said revenue in Asia surged 22% to Eur491 million while revenue in Latin America increase by and 16% to Eur1.021 billion.

Investments in new combined cycle power plants  (CCGTs) in Germany are "highly problematic" without the introduction of capacity remuneration mechanisms as the internal rate of return (IRR) for such projects is close to zero, Reinhard Rümler, senior manager, energy advisory at PwC told Gas-to-Power Journal.

Operators of gas-fired power plants in Spain are confronted with slower repayments of loans taken out to build their assets as the run-time hours of plants are curtailed by preferential grid feed-in of renewable energy.

Gains for gas demand in the power and industrial sector will offset a decline in gas demand for residential use, Howard Gruenspecht, acting administrator, U.S. Energy Information Administration (EIA) said today. The share of natural gas in the U.S. energy mix is forecast to rise 27% by 2035, from 24% in 2010, according to EIA forecasts.

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.