Daily News

General Electric (GE), the US-based engineering company, has signed contracts totalling nearly $300m with the Saudi Electricity Company (SEC) to expand six power plants in Saudi Arabia. The contract stipulates GE to provide 13 gas turbines and associated services to the plants with the aim of increasing electricity supply in Saudi Arabia by 800MW by summer 2013.

Vogt Power International, a subsidiary of Babcock Power, announced it will supply heat recovery steam generators (HRSG) to Siemens Energy Inc. for the Termozulia power plant project in La Canada de Urdaneta, Venezuela. The primary fuel for the plant will be oil with moderate natural gas firing.

RWE has confirmed to 'Gas-to-Power Journal' today that is considering divesting stakes in German power plants and splitting-off and selling of parts of the company.

Annual gas demand of natural gas in seven core European countries - UK, Germany, Italy, France, Spain, Netherlands and Belgium – is forecast to plunge by fall by 44 Bcm year –on-year, or 10.7%, to 370 Bcm in 2011, Deutsche Bank said in a report.

Siemens has won an order to supply a natural gas-fired Tuaspring combined-cycle power plant (CCPP) in north-western Singapore to Hydrochem Ltd, a subsidiary of Hyflux. The 411 MW gas-fired power plant is scheduled to start operations 2014, is part of the largest seawater desalination facility Tuaspring in Singapore, Siemens told 'Gas-to-Power Journal' today.

Nigeria's government is eager to fast-track its long debate 'Gas Master Plan' by backing the creation of public private partnerships (PPP) as investment vehicles for the construction thermal power plants in the Niger Delta and western Nigeria. The minister of petroleum, Diezani Alison-Madueke today reinforced the government's commitment of "Repositioning Nigeria as the regional hub for gas based industrialisation.

European utilities are profiting from a rebound in a power prices and production margins, Societe Generale commodity analysts said, estimating that between 20% and 50% of hedge for 2012 has been achieved by higher generation margins post Fukushima. "Some utilities have delayed their hedging strategy and will thus benefit from higher margins post-Fukushima that should flow into the accounts as soon as 2012," the bank said in a recent report.

General Electric (GE) will supply Russian power plant with a 109FA combined-cycle system under an upgrade and long-term service agreement. The expansion will add 400 MW of electricity output to the gas-fired plant, GE said.

Britain's first large-scale pilot coal-fired power project with subsequent carbon capture storage technology – has been launched late Wednesday in Ferrybridge, West Yorkshire. Coal + CCS is seen as an alternative to gas-fired power generation.

RWE/Turcas' Denizli power plant is expected to be commissioned by the end of 2012 as planned, Dr. Ralph Jaeger, CFO of RWE Turkey said today. Speaking on site, Jaeger gave an updated on the progress of the Denizil natural gas combined cycle power plant (CCGT) and said the construction was "on schedule".

After a series of severe power shortages in Japan, the Tokyo metropolitan government is now gearing up to close the power generation gap by building 60 large-scale gas-fired power plants.

Retail power prices in China will rise starting Thursday this week, China's National Development and Reform Commission (NDRC) announced today.

International Energy Agency's Executive Director, Maria Van der Hoeven sees "golden prospects for natural gas. However she urged the gas industry in Riyadh today to step-up security standards in unconventional gas production.

Coal is forecast to increase in its competitiveness against gas, Société Générale said in a research note on Tuesday. "Demand for imports [of coal] will in our view keep on increasing, even if more slowly," analyst Emmanuel Fages said with reference to the expected recession in the Eurozone throughout 2012.

Norway's Statkraft Markets will decide on whether to shut down operations of two gas-fired power plants in Germany in February 2012, Jürgen Tzschoppe, head of the Norwegian utility's German subsidiary Statkraft markets told 'Gas-to-Power Journal' today.

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.