Daily News

South Korean operators of gas-fired power plants increasingly focus on the efficient operation of their plants as prices for importing LNG remain at high levels. Siemens Energy, a major seller of gas turbines, has singled out efficiency as the key selling point for selling turbines into Asian markets.

Toshiba Corporation, a major supplier of thermal power generation equipment, has won a contract from the U.S. engineering and construction company Fluor to supply a 195 MW steam turbine and generator for a gas-fired combined cycle power plant (CCGT).

Siemens and RWE are gearing up to expand a jointly-operated virtual power plant (VPP) with additional energy sources. In 2012, RWE plans to market about 20 MW of electricity and the cap will be increased tenfold to about 200 MW by 2015, the companies said today.

Dominion Energy is considering converting the 745 MW coal and oil-fired Salem Harbor Power Station in Massachusetts into a natural gas-fired power plant. The Virginia-based utility already had to scale down the operations of the plant in reaction to rising coal and oil prices in relation to gas prices.

The Bangladeshi utility Energy Bangla expects to complete its 150 MW Chandpur gas-fired power plant project by June this year. "90% of the works for the project have been completed," the utility said with reference to an assessment of the Bangladesh Power Development Board.

The new UK energy minister, Charles Hendry, has criticised proposals and time-schedules of the European Commission's (EC) energy infrastructure plan as "overly prescriptive".

Operators of gas-fired power plants in Spain have joined forces to lobby for higher capacity payments in return for providing vital backup capacity to stabilize the grid against rising fluctuations in electricity supply from renewable energy sources, Stephen Woodhouse, Director at Pöyry Energy Consulting said. "In a true market environment, the flexible plants would earn higher prices for this new mode of operating but if there is a surplus of capacity then some of the generation fleet will become uneconomic," Woodhouse told 'Gas-to-Power Journal' in an interview.

BG Group, U.K.'s third-largest natural-gas producer, has forecast a 40% surge in underlying profits on the back of higher oil and LNG prices. "The outlook for global gas and LNG demand is strong," BG Group's chief executive Sir Frank Chapman said this morning.

RWE sees fossil power plants as vital partners of renewable energy sources. Quick ramp rates are vital to provide flexible backup capacity and gas-fired plants still in the lead, outperforming coal-plants. "It takes RWE only 18 minutes to ramp the output of its 876 MW Lingen combined cycle gas turbine plant up or down by 600 MW," a RWE spokesman told Gas-to-Power Journal.

General Electric (GE) has launched a new GE TS1000 coalescer, a gas turbine filtration product that improves plant performance and lowers maintenance costs for power plants in harsh weather conditions near costal environments.

Fischer

Roland Fischer

Siemens Energy is expanding turbine sales based on the attractiveness of its H-class technology. "We believe our H-class technology is two to three years ahead of competition," Roland Fischer, CEO of the division Fossil Power Generation at Siemens told Gas-to-Power Journal in an interview.

 

Siemens now holds over 40% in the market segment of advanced gas turbines in terms of gigawatts (GW). In terms of unit sales, the number is slightly below 40%. "We will surely not rely on our lead as competition is tough and challenging. We will do our utmost not to allow any rival to take that position from us," Fischer said.

Trianel and Curenta, the operator of CHEMPARK, a chemical park in Krefeld-Uerdingen, plan to take Final Investment Decision (FID) on building a 1,200 MW combined cycle gas turbine (CCGT) power plant in Germany by late summer 2012.

Pratt & Whitney's aero-derivative industrial gas turbines can operate open cycle with fast start-up to back up renewable wind energy power drop-off, while simultaneously providing reactive power to stabilize the grid, Swift Tarbell, area director at Pratt & Whitney Power Systems said.

Siemens, the German engineering company, has received an order worth over US$1 billion to supply key components for the IPP Qurayyah combined cycle power plant (CCPP) in the Kingdom of Saudi Arabia. Commissioning of the total of six blocks is scheduled for 2014, Siemens said today.

ETN Christer_Bjorkqvist

Christer Björkqvist

Excessive subsidies for renewable energies have distorted the Spanish power market, forcing utilities to significantly curtail the operating hours of gas-fired power plants, Christer Björkqvist, Managing Director, ETN-European Turbine Network said today.

Now, the Spanish government has suspended all subsidies for new renewable energy installations in a move that is unlikely to prove a 'quick remedy' for the market distortion.

News in Brief

PG&E nears bankruptcy

Jan 18 – Northern California’s utility Pacific Gas & Electric (PG&E) has informed federal regulators that it expects to seek Chapter 11 bankruptcy protection by January. The San Francisco-based utility is under investigation for its shortcomings in the deadly 2018 wildfires. S&P this week downgraded PG&E’s gas and electric unit to ‘D’ to ‘CC’ after the utility failed to make a $21.6 million interest payment

Hitachi suspends work on Wales nuclear project

Jan 17 – Japan’s Hitachi is close to suspending construction works at its Horizon division’s Wylfa nuclear power plant in Wales. If the project gets shelved, EDF Energy's Hinkely Point-C will be the only nuclear project remaining hence flexible gas power will have to fill the capacity gap.

PG&E files for bankruptcy by Jan 29

Jan 16 – Northern California’s utility Pacific Gas & Electric has informed federal regulators that it expects to seek Chapter 11 bankruptcy protection by end of this month. The San Francisco-based utility is under investigation for its shortcomings in the deadly 2018 wildfires.

Gas engine market to top $4.4bn by 2020

Jan 15 – Global demand for natural gas engines is forecast to expand with the market set to exceed $4.4 billion in value by 2022, according to Zion Market Research. Key manufacturers include, GE, Rolls-Royce, Cummins, Caterpillar, Wärtsilä, Kawasaki, MAN, Deutz, Doosan and Yanmar.

Encana selects Siemens rotating equipment

Jan 14 – Siemens has been selected to provide one feed and sales gas train and one refrigeration compression train for Encana’s Pipestone Processing Facility in Grand Prairie, Alberta, Canada. The new unit, due to operational in 2021, will provide Encana with 19,000 barrels per day of net raw condensate processing capacity plus 170 million cubic feet per day of net inlet gas processing capacity.

Cheap U.S. LNG underpins power project in Panama

Jan 11 – AES Colón expects the entry of low-cost US LNG will transform the Central American energy sector, much as it has in the Panama. The utility in September started up an $1.15 billion LNG import terminal and adjacent combined-cycle power plant.

Rolls-Royce joins forces with OT industries

Jan 10 – Britain’s bellwether manufacturer Rolls-Royce has signed an accord with OT Industries to explore areas of joint work for the provision of Emergency Diesel Generators (EDGs) and Instrumentation and Control (I&C) systems for new units at the Paks nuclear power plant in Hungary. OT industries is majority owned by the MOL Group.

State-run utilities dominate energy spending

Jan 9 – Future investments in global energy supply largely rest in the hands of governments. In the power sector, a striking 95% of monies are spent by regulated utilities under schemes to minimize risk associated with variable prices on competitive markets. However, once China will have completed its power sector reform the share of countries that rely on competitive markets will rise from 54% to almost 80%.

Floating power market to top $1.4bn by 2022

Jan 8 – The market for floating power plants (<250MW capacity) is expected to grow at an annual rate of 10.11%, expanding from currently $889.6 million to reach $1,440 million by 2022. Main growth drivers, according to MarketsandMarkets, are cost advantages of floating over land-based power plants, particularly in regions with a lack of power infrastructure.

Energean to supply gas to Israel

Jan 7 – Energean Oil and Gas has agreed to supply 5.5 Bcm of natural gas Karish and Tanin fields over 19 years to the Israeli power producer I.P.M. Beer Tuvia. The deal is expected to $900 million in revenue for Energean over the contract duration.

Eranove builds 390 MW plant in Ivory Coast

Jan 4 – Ciprel, a subsidiary of Eranove Group of France, is preparing to construct a 390 MW power plant in Jacqueville near Abidjan, the capital of the Ivory Coast. Driven by one of GE’s F-class turbine the combined-cycle power plant will be similar to one that Ciprel already has in operation.

Works advance on Jawa-1 CCGT

Jan 3 – Construction works are forging ahead for Jawa-1, a 1,760 MW combined-cycle gas-fired power plant. Built at cost of $1.8 billion the facility will be built by PT Jawa Satu Power (JSP) and PT Jawa Satu Regas (JSR) in Karawang, West Java.

Grozny TPP due onstream in 2019

Jan 2 – Construction of Unit 2 of the Grozny Thermal Power Plant (TPP) is advancing fast with a view having the entire plant operational in mid-2019. The first 180 MW unit has been running uninterruptedly for a fortnight and once the second unit will start up, Grozny TPP will reach its design value of approximately 360 MW.

E&P profitable at $50/bbl

Dec 21 – Globally, Wood Mackenzie expects exploration budgets to remain steady in 2019. But with stronger prices, lower costs and a greater focus on commerciality, the exploration sector is now seen to be more resilient than ever, and “well positioned to generate positive full-cycle returns at oil prices of US$50/barrel or even lower.”

GE upgrades substation in Germany

Dec 20 – TransnetBW has asked GE Power to upgrade one of the substations in so-called ‘Badische Rheinschiene’, a highly loaded link in the transmission grid of southwest Germany. The project will deliver 22 bays of 400 kV GIS to reduce the substation’s footprint while increasing its capacity.

Burckhardt opens service centre for Central Europe

Dec 19 – Swiss-based Burckhard Compressions has opened a new service centre for Central Europe in Slovakia. Reciprocating compressors of any brand are serviced there for operators in Slovakia, the Czech Republic, Hungary and Poland.

Global CCS growth nears 10% per year

Jan 19 – A report from analysts Research and Markets says the global Carbon Capture and Storage (CCS) market will grow 9.18% per year between 2017 and 2021, with Babcock & Wilcox, ENGIE, GE Power, Linde and Mitsubishi Heavy Industries dominating developments.