Daily News

Investments in carbon capture storage (CCS) for new-built and operational power plants has a softening effect on carbon prices - albeit not a big one, Energy Brainpool's chief analyst Tobias Federico estimates.

"The scale of the price effect largely depends on how widespread the implementation of CCS technology will be implemented in the power generation sector," he told Gas-to-Power Journal in an interview.

Russia's Gazprom and the German utility RWE have ended negotiations on a potential joint venture (JV) for building and operating gas-fired power plants in Germany, the Netherlands and in the U.K., RWE confirmed. "We were unfortunately not able to agree on a framework for co-operation which would be sustainable for both parties," Jürgen Grossmann, RWE chief executive commented on the end of JV talks today.

Russia's gas export monopoly Gazprom is considering building gas-fired power plants in the southern German state of Bavaria, following the ratification of a roadmap for cooperation in power generation and gas supply. "The document sets out the intentions of Gazprom and the Federal State of Bavaria to cooperate on power production in Bavaria," Gazprom said today.

UK energy regulator Ofgem will foster the transparency between retail and wholesale energy prices by disclosing price reports more frequently than in the current 3-4 month timescale. "Ofgem is to move towards updating the report on a weekly basis in the New Year," it said in a statement today.

E.ON UK has begun commercial operations at its Holford gas storage plant in Cheshire in the north-west of England. Once completed, the projected gas withdrawal rate at the facility will be 16 MMcm/day – sufficient to qualify the Holford gas storage plant as vital backup infrastructure for supplying fuel to gas-fired power plants.

General Electric (GE) will upgrade two 9B gas turbines to GE 9E gas turbines in an E.ON power plant in Trapani, located in the west of the Italian island of Sicily. E.ON selected GE to upgrade Trapani's two gas turbine trains from 85 MW and 89 MW, respectively, to 107.8 MWs per unit.

Indonesia's state electricity company PT Perusahaan Listrik Negara (PTLN) is forging ahead with plans to increase LNG imports as a fuel for gas-fired power generation with the aim of denting the country's energy hunger. Nur Pamudji, PTLN's recently appointed president director, said a milestones in 2012 would be that "for the first time, we are going to utilize (LNG) in our electricity system".

BDEW, Germany's energy and water association, today released data on the country's power generation mix. Gas-fired generation was virtually unchanged at 14% in 2011. The share of renewable energies in the country's overall power generation mix surged by 20% in 2011, according to BDEW statistics. In 2011, renewable energies have already overtaken nuclear plants (18%) and coal-fired power generation (19%) in terms of market share.

China Machinery Engineering Corp (CMEC) has won a $1.19 billion contract to build a 1,260-MW gas-fired power station in Iraq. CMEC will construct the plant over a timeframe of 45 month in Salahuddin governorate north of Bagdhad, an Iraqi electricity ministery spokesman told local reporters during the signing ceremony in Baghdad on Thursday.

Societe Generale is anticipating that 2011 will be far worse than 2009 for gas demand. The year 2011 has so far seen a 9.3% yoy drop in gas consumption and a 1.9% decline in electricity demand, Societe Generale said in its latest SG Energy Pulse report.

General Electric's LM6000 aeroderivative gas turbine technology was chosen for an expansion of a Russian power plant to meet growing electricity demand of the city of Yuzhno-Sakhalinsk, located on Sakhalin Island in eastern Russia.

China Gas has rejected a bid from China Petroleum & Chemical Corporation (Sinopec) and ENN Energy, saying the offer of $2 billion in cash to buy the entire company would not fully reflect its value. Sinopec and the Chinese gas distributor ENN Energy had made a joint bid of HK$3.50 ($0.45) a share for the Hong Kong-based gas distributor China Gas, they said in a regulatory filing to the Hong Kong stock exchange .

BG Group will sell the entire volume of natural gas produced at Kazakhastan's vast Karachaganak gas condensate field to local utilities for use in CNG vehicles and power generation. "All raw gas produced from the Karachaganak field is sold locally and into Russia or it is re-injected into the reservoir to help maintain reservoir pressure," Mark Todd, spokesman for BG Group, told 'Gas-to-Power Journal' today.

Siemens Energy has received a first order for the supply of its SGT-750 industrial gas turbine. The buyer is Wingas, a joint venture of the BASF subsidiary Wintershall and the Rus-sia's Gazprom. Siemens is responsible for supply, installation and commissioning of the SGT-750 gas turbine together with the generator and auxiliaries, and for the electrical infrastructure for the grid connection.

Alstom, the French engineering company, has secured a contract worth €400 million to build the 728MW gas-fired power plant in Al Mansuriya, north east of Baghdad in Iraq's Diyala Governorate. The first unit of the plant is slated to start operations in early 2013.

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.