Daily News

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.

Enel, Italy's largest power company, said today the operational start-up of a 400-MW 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," Matteo de Zan, head of Enel's industrial development, generation and energy management division told 'Gas-to-Power Journal' in an interview today.

MetCap and General Electric energy unit have teamed up to realise a gas-fired power plants, named Dervish, based on GE's FlexEfficiency technology. Dervish - a 1,080-MW gas-fired power plant in Karaman in central Turkey - will start operations in 2016, Sera Geray, chief financial officer at Metcap Energy told 'Gas-to-Power Journal'.

The European Network of Transmission System Operators for Electricity (ENTSO-E) has alerted grid operators of the risk of reduced margins of available power generation overload in Europe this winter. ENTSO-E published its Winter Outlook 2011-2012 and Summer Review 2011 on Thursday this week, indicating that under severe conditions, December and January could be the most stressed months of the winter for security of electricity supply.

The power generation sector is forecast to be the main driver for global gas demand, according to projections of the International Energy Agency (IAE). "Global gas demand will be driven by power generation", IEA analyst, Warner de Kate, said at the EMART energy conference in Lyon.

Gas markets are a different animals than power markets, so the integration of European gas trading hubs cannot replicate the integration of European power markets, panalists at a gas trading session the EMART Energy conference agreed on today. "Financially, it has already happened; physically, however, gas market integration works different from electricity markets," APX-ENDEX CEO, Bert den Ouden, said at the conference in Lyon.

LNG exports from the U.S. are likely to go to China, where new U.S. LNG imports will be in a price competition with not-yet contracted gas from Russia via the proposed Altai pipeline and with LNG imports from upcoming Australian liquefaction projects, Thierry Bros, senior analyst at Societee Generale said.

The lack of incentive to build new gas-fired power plants may cause problems for balancing supply and demand in European electricity markets, Evariste Nyouki, head of economic research at GDF SUEZ Trading told 'Gas-to-Power Journal' at the sidelines of the EMART Energy conference in Lyon today.

"New gas-fired plants are needed but the market is not prepared to pay for it," Nyouki said, arguing it is only economical for upstream companies to invest in new gas plants at the current price levels. His reasoning is that Gazprom has the means to free up enough CAPEX in order to build new gas-fired power plants in Western Europe, while utilities currently do not have an incentive to do so.

Start-up of a 100-MW gas-fired 'peaker' plant, located near Santee in California , is imminent, after California Energy Commission (CEC) announced it has started a review and certification process of the 100-MW plant.

Dan Smith, Head of Corporate Development at Trayport, has cast doubt over the European Commission's drive to introduce more stringent financial regulation.

"The European Commission supports the creation of liquidity in the wholesale energy markets via the 3rd Energy Package. However, another potential outcome is that the introduction of financial regulation could have a negative impact on liquidity in the wholesale energy markets," said Smith told 'Gas-to-Power Journal' today.

David Cameron, the UK Prime Minister, has highlighted the vital role of natural gas for the British economy today, in a statement timed to coincide with a new gas supply contract between Centrica and Statoil over 5 Bcm/year in the period between 2015 and 2025.

"Today's agreement will help to ensure the continued security and competitiveness of gas supplies to Britain, from a trusted and reliable neighbour," UK Prime Minister David Cameron said.

Honeywell has introduced a new Safety Manager Field Device Unit (FDU), particularly designed to implement integrated safety measures for power plants.

"The module's small size makes it ideal for plants that need to quickly implement integrated safety measures for applications such as burner or boiler management systems," the US-based manufacturer said in a statement.

Siemens has inaugurated a new gas turbine factory in Charlotte, North Carolina, with a view to expanding its worldwide network of gas turbine manufacturing facilities. The German company has invested more than $350 million in a 42,000 square metre plant in Charlotte, creating 700 new jobs.

"Charlotte is the only Siemens plant that produces gas and steam turbines, as well as generators,” a company representative said. The facility also plays a key role in Siemens’ profitable power plant service business.

Bernard Anne, managing director of Bureau Veritas' (BV) Marine Division has signalled out LNG as one of the shipping sectors where the indicators are good and positive. "I do not see any good markets except for gas markets and consequentially LNG tankers. There are simply too many ships around," Anne said at the annual BV Beaujolais Party in London on Thursday evening.

Germany's E.ON and the Russian gas incumbent Gazprom are at loggerheads over the terms of gas supply. Arbitration proceeding on contract terms of oil-indexed long-term gas supply are still ongoing. "We can confirm that we have instituted arbitration proceedings in connection with our supply relationship with Gazprom," E.ON spokesman Sebastian Heindrichs told Gas-to-Power Journal.

News in Brief

Permian reserves revised upwards

Dec 13 – The Permian’s Delaware sub-basin contains more than twice the technically recoverable reserves of the Midland sub-basin. According to the US Geological Survey (USGS), the Wolfcamp play and overlying Bone Spring Formation hold an estimated mean of 46.3 billion barrels of oil, 281 tcf (8.0 tcm) of gas and 20 billion barrels of natural gas liquids (NGLs).

More buyers for Malampaya gas

Dec 12 – Two more electric utilities, in addition to First Gen and Ilijan, have expressed interest to buy Malampaya’s banked gas, valued at $700 million to $750 million, via a negotiated scheme. The Philippine National Oil Company (PNOC) is in talks with all four of them, but did not identify the two new bidders.

Surge in wind power new-builds

Dec 11 – More than 680GW of new wind power capacity will come online globally over the 10-year outlook, according to Wood Mackenzie research. Most upgrades occur in the medium-term, boosting annual capacity additions from 2020 to 2023 by an average of 2.7GW.

Hybrid power for Galapagos Island

Dec 10 – Siemens has inaugurated a hybrid power plant on the Galapagos island of Isabela after only ten months of planning and ten months of construction. The system runs carbon-neutral with biofuel and solar energy and supplies almost 900 households.

Tata unveils TCS Intelligent Power Plant

Dec 7 – Tata has presented it TCS Intelligent Power Plant at an U.S. trade show, combing its engineering knowledge with artificial intelligence (AI) to optimize operations of fossil power plants. The TCS Intelligent Power Plant builds on the digital twin concept and data-driven models.

Aker, Siemens to co-develop digital offerings

Dec 6 – Aker Solutions and Siemens have agreed to collaborate on creating software applications and joint service offerings, e.g. industrial digital twins that will drive efficiency throughout the entire plant lifecycle. Specific offerings for the oil and gas sector will be based on Siemens' Comos engineering platform.

Robot for remote inspection

Dec 5 – Sarcos Robotics is demonstrating their Guardian S mobile IoT inspection robot at POWER-GEN International in Orlando, Florida. The remote visual inspection tool that can carry multiple sensor payloads and is a quick-deploy inspection solution for pipes, boilers and tanks.

JERA still builds coal power plants

Dec 4 – JERA, Japan’s largest LNG importer, said it was still replacing ageing oil-fuelled power plants with coal-fired units, instead of gas, for economic reasons. Environmental permits have just been issued for two new coal power units at Yokosuka power station, south of Tokyo.

GE delivers grid solution to Pakistan

Dec 3 – GE Power has delivered a turnkey solution to DG Khan Cement Company (DGKCCL), for its new cement plant. Situated 30km northwest of Karachi, the new manufacturing facility is powered by GE’s advanced grid solutions including 132/6.3 kV gas insulated switchgear (GIS), 40MVA power transformers.

Rolls-Royce to showcase Bergen genset

Nov 29 – Rolls-Royce will showcase its new B36:45 Bergen gas genset at the 2018 Power-Gen International show next week in Orlando, Florida. This will be the first time the company introduced Bergen engines at a U.S.-based trade show.

Toshiba aggregates RES & energy storage

Nov 28 – Tokyo-based Toshiba will reinforce its green energy footprint by spending 100 billion yen ($175m) on a new biomass power plant near the thermal Mikawa power station in Omuta, Fukuoka prefecture. Going forward, Toshiba aims to aggregate all its renewable energy sources and storage batteries, creating a Virtual Power Plant (VPP).

Exmar helps Argentina export LNG

Nov 28 – Belgium's Exmar has signed a 10-year agreement with YPF to produce and export 500,000 tonnes per annum of LNG from Argentina via a floating liquefaction vessel named Tango FLNG. The deal advances Argentina’s ambitions of becoming a gas exporter.

ABB UPS tops 97% efficiency

Nov 27 – ABB latest uninterruptible power supply (UPS) module has a 97.6% efficiency rating. The DPA 250 S4 covers the power range 50 to 1,500 kW and is designed for critical, high-density computing environments such as data centers, hospitals, railway signaling stations and airports.

Europe still depends on Russian gas

Nov 26 – In the first ten month of 2018, there was a more than 100:1 disparity between Russian pipeline gas and U.S. LNG deliveries to European countries, according to Gazprom figures. The Russian gas giant sees still “a high level of uncertainty” in the long-term forecasts for U.S. shale gas production.

Enagas, Fluxys sell stake in Swedegas

Nov 23 – The Belgian and Spanish TSOs, Fluxys and Enagas, have sold their entire shareholding in Swedegas to First State Gas Transport AB, part of the infrastructure fund First State Investments. The two TSOs each owned a 50% stake in the operator of Sweden’s high-pressure gas grid.

Developing alternative fuels

Nov 22 – Wärtsilä, Finland’s Lappeenranta University of Technology and Nebraska Public Power District (NPPD) are developing a business case for the use of alternative fuels with Wärtsilä generating sets. In focus are methanol, dimethyl ether and ammonia, synthesised from hydrogen, CO2 and nitrogen.

UK will not incentivize new gas storage

Nov 21 – Rebuking warnings of gas supply shortages, the UK government said it will not give any regulatory support for new gas storage facilities. Insisting that “the benefits of more insurance are not worthwhile,” energy secretary Greg Clarke said, insisting the market was already providing sufficient gas security and optionality.