Despite Europe's sub-par gas demand growth, with indigenous supply collapsing and global LNG supply diverting to Asia, suppliers like Gazprom "regain the whip hand" in Europe, Deutsche Bank analysts warn.
"A market that should be in the doldrums looks poised to see prices breaking to the upside," they forecast, singling out US LNG exports as a panacea to avert the risk of high-priced oil-indexed Russian gas that threaten to further undermine the profitability of gas power generation.
A new independent, cross-party report urges the UK Government to clarify its energy policy beyond 2020. "The Government should work with industry to narrow the debate by identifying 'low regrets' investments for the power sector beyond 2020," finds the report which will be presented in Parliament today.
Myanmar's state-owned power producer has awarded Wood Group GTS a $13million contract to overhaul and upgrade three GE Frame 6B gas turbines in operation at a plant near the city of Yangon. "The order is our first major contract win in Myanmar," a Wood Group representative said, adding the retrofit is expected to increase the utility's revenue by $1million per year.
Mitsubishi Heavy Industries (MHI), jointly with Taiwan's largest EPC company CTCI Corporation, has won a full-turnkey order from Taiwan Power Company to build a gas-fired combined cycle plant, consisting of three power islands with a combined capacity of 2,600MW. The mega plant, located in Tunghsiao Township about 150 kilometers southwest from Taipei, will be powered by M501J gas turbines.
MHI said the latest order from Tawain brings the number of sold 60 hertz M501 gas turbines up to 22, including four successive orders for 10 units in total from South Korea.
The 'Energiewende' (energy turnaround) is profoundly reshaping the energy landscape in Germany: Regulatory changes, financial incentives and technological developments are the driving factors for transforming a previously centralized, hierarchical energy system to an ever-more distributed conundrum with a rapidly-increasing share of renewables at its heart, says Frank Reichenbach, manager at The Advisory House (TAH).
US engineering major GE has joint forces with China Xian Electric Group (XD Electric) with the aim to double sales of digital power transmission produces to $4 billion over the next decade. GE is understood to have paid 3.38 billion yuan ($552 million) to acquire a 15 percent stake in XD Electric.
Denmark's largest utility, Dong Energy, reportedly considers selling its 832MW gas-fired Severn Power Station - one of Britain's most modern gas-fired power plants for up to £500 million, though the UK Big 6 power producers are deemed unlikely to purchase the asset. A Dong representative declined to comment on banking speculation about a possible divestment of the asset but stressed the company's focus on wind power in the UK.
Nine out of ten businesses in the UK believe the government's flagship energy policy under the Electricity Market Reform (EMR) will burden the industry by making cost more difficult to predict, shows research released today by Npower. The £10 billion EMR programme guarantees a fixed price for green energy production, which is feared to increase electricity prices and reduce competitiveness of the UK economy.
Chinese investors are gearing up to spend close to $4 trillion on building and commissioning 88GW of new power generation capacity every year between now and 2030 – mainly hydro, renewables and gas-fired plants. A report compiled by Bloomberg New Energy Finance (BNEF) forecasts that China may annually start-up the equivalent of the UK's total generating capacity, boosting supply by more than 1,500GW in the coming 18 years.
French power generation conglomerate Alstom will supply a flue gas cleaning and heat recovery system for a new €120 million (SEK1,050 million) waste-to- energy CHP plant in the city of Linköping, Sweden. It is set to generate 80MW of power.
Emera, a privately-owned Canadian utility, is spending $541 million to acquire American generator Capital Power Corporation's combined-cycle gas-fired (CCGT) power stations on the US East Coast. Capital Power simultaneously announced it would wind down its commodity and energy trading business outside Alberta before year end. It said "operating complexity is significantly reduced by the divestiture of the northeast US plants."
Saudi state-owned oil company, Saudi Aramco is boosting its energy independence and cost control with plans to build a three combined heat and power (CHP) facilities, with a combined value of 650 million USD in Saudi Arabia, each at a different oil processing and refinery facility.