Daily News

Japan will require significant investment in its natural gas infrastructure to cope with the increase in demand following the Fukushima nuclear incident which propelled up the power sector's share in national gas demand from 60 percent to 65 percent, according to a report by the International Energy Agency (IEA), published under the lead of Warner ten Kate, Senior Gas Expert.

Growth in the Asia-Pacific gas turbine market is driven by rising demand for eco-friendly cogeneration combined cycle power plants (CCPPs) as utilities and independent power producers are increasingly concerned about global warming and greenhouse gas emissions, analysis from Frost & Sullivan finds.

Emerson Process Management has replaced the controls on the Nikiski Generation Plant's GE Frame 6B gas turbine with its Ovation control technology. The replacement of the controls was part of phase one of a two phase initiative to increase generation capacity with a minimal increase in fuel consumption by converting the 40MW simple-cycle power plant into a 60MW combined-cycle facility.

A decrease in the use of coal and an increase in the use of gas for electric power generation due to cheaper natural gas prices has played a significant role in reducing US SO2 and NOx emissions in recent years, according to the US Energy Administration (EIA). Between 1990 and 2012, SO2 emissions from electrical power generation fell from over 15 million short tons to about 3 million short tons, while COx emissions dropped from about 6 million short tons to less than 2 million short tons.

GE has supplied two Frame 6B 3-series gas turbine generators for the currently under construction UBE Batam Power Plant, owned by PT Medco Power Indonesia, a subsidiary of PT Saratoga Power and PT Medco Energi Internasional. Once operational, the gas-fired plant, located on Indonesia's Batam Island, will reduce the company's dependency on burning oil to generate electricity by adding about 80MW of gas-fired capacity.

India's power sector is slowing down in the midst of a supply crunch of both coal, the dominant source for generating electricity, and natural gas which is seen as a cleaner alternative.

Sam Laidlaw, Chief Executive of Centrica has warned of an imminent "energy gap" in the UK, suggesting "the loss of [old coal-fired] power stations will seriously reduce our capacity to generate electricity." Renewables will help but they're intermittent, so he suggested the only realistic option to solve the problem would be new gas-fired power stations.

The emergence of a harmonised pan-European capacity market design is "unlikely" and efforts may come "too late", says Håkan Feuk, Chairman of TF Market Design for Renewable Energy Integration at Eurelectric, adding that some common denominators for national CRM schemes need to be established to ensure a level playing field for investors and consistency with the integration process of European energy markets.

The cogeneration industry helps save Europe's energy-intensive industry around 15 million tonnes of oil equivalent (Toe) of energy imports each years, allowing them to reduce costs to work their way out of the economic crisis.

The oil and gas-fired Dhuvaran power station (534 MW) in the Indian state of Gujarat was shut down following a severe shortfall in gas requirements. Gas supply allocated by the central government covered only 46.71 percent of its total gas needs in 2011-12.

Regulations favourable for free contracting of thermoelectric power plant projects, together with lower potential for new hydropower plants, will boost to the Brazilian natural gas power plant market to reach over $1,200 million by 2017, Frost & Sullivan analysts forecast.

Unison Industries has signed an agreement with Turbine Technics Inc. to act as a worldwide distributor for their marine and stationary land-based gas turbine engine components and services.

Spain's power producers are calling for new regulatory support mechanisms to help cover investment costs of existing fossil plants.

"It is vital to establish a mechanism to reward the backup service of existing gas-fired plants to assure the reliability of the system" says Carmen Vindel, Head of International Regulation, Gas Natural Fenosa.

Enhancing the complementary use between renewables and gas is crucial to achieve Europe's targets on ensuring sustainable, secure and affordable energy supply, Dong Energy, Shell, GE and First Solar have formed an Energy Partnership, Jasper Vis, Head of Regulatory Affairs, DONG Energy said in Brussels today.

Alstrom Grid has set a new record for a High Voltage Direct Current (HVDC) circuit breaker by interrupting currents exceeding 3000 amperes in less than 2.5 milliseconds at a testing facility in France. The new circuit breaker helps pave the way for so-called "meshed" smart grids for direct current that will require the interconnection of several points.

News in Brief

Wärtsilä wins contract in Barbados

Jan 24 – Barbados Light & Power Company Ltd (BLPC) has contracted Wärtsilä to fast-track the supply of a 33 MW flexible power plant, as an EPC project. The plant, set to run on four Wärtsilä-32 engines, will be built at a site adjacent to BLPC’s 10 MW solar photovoltaic plant at Trents, St. Lucy, located on the northwestern coast of Barbados.

Azito power plant takes FID

Jan 23 – Globeleq and IPS have reached financial close on a 253 MW expansion of the Azito gas-fired power plant near Abidjan. An MXL3 upgrade will boost the capacity of the combined-cycle plant from 460 MW currently to 713 MW, equaling about 30 percent Ivory Coast’s total capacity installed.

Climate risks become urgent

Jan 22 – Adaptation to climate change is now “urgent,” McKinsey claims, suggesting there would be “many adaptation opportunities.” Climate science shows that the risk from further warming can only be stopped by achieving zero net greenhouse gas emissions through renewable built-out and energy storage.

India’s electricity demand may triple, IEA finds

Jan 21 – Energy demand in India is set to double by 2040, and its electricity demand may triple, according to the International Energy Agency (IEA). Oil consumption in India is seen grow faster than that of any other major economy, making energy security a key priority, the IEA said in its first in-depth review of India’s energy policies. Amid strong growth, renewables now account for almost 23 percent of India’s installed capacity, while energy efficiency improvements helped avoid 15 percent of India’s additional energy demand, oil and gas imports, and air pollution.

Regulators approve CCGT in Wisconsin

Jan 20 – State regulators have approved a permit for Dairyland Power Cooperative to build a $700 million combined-cycle gas power plant in northwestern Wisconsin. The Nemadji Trail Energy Center will produce 625 MW and is scheduled to begin operations by 2025.

ExxonMobil enhances turbine oils

Jan 17 – New high performance turbine oils, developed by ExxonMobil Lubricants, are  entering the market which are formulated to prevent build-up of lacquer, varnish and deposits. The oils are designed to protect against thermal and oxidative degradation, one of the root causes of deposit build-up.

Wärtsilä signs O&M deals in the Bahamas

Jan 16 – Following the commissioning of a Wärtsilä-built 132 MW power plant in Bahamas in December, the Finish manufacturer now signed a two-year operation and maintenance (O&M) accord with the plant owner, the Bahamas Power and Light Company (BPL). Wärtsilä will transition, train, and develop the owner’s Bahamian work force and provide key performance guarantees.

China, S'Korea curtail coal to tackle air pollution

Jan 15 – Beijing city government’s aggressive approach to tackling air pollution is working and South Korea’s spring coal-fired curtailments show some success in cutting seasonal emissions. According to Wood Mackenzie, this should benefit LNG, particularly while spot prices remain low.

Sri Lanka at brink of power shortages

Jan 14 – Sri Lanka could face power cuts by March, after plans for a large-scale coal power plant were been cancelled just prior to start of construction, and a tender for a 300 MW diesel plants ended up in court. On the demand side, pressure is building up as the region is moving into the dry season in February and March. Weather warnings say the island is likely to receive lower than average rainfall in the first quarter of 2020.

Caterpillar’s new genset comply with UK & German grid codes

Jan 13 – Caterpillar Inc. has launched a series of new generator sets that comply with the new G99 United Kingdom, VDE-AR-N 4110 German and Belgium C10/C11 grid codes. The following gensets – G3500H, CG132B, CG170, and CG260 (rated from 280-4,500kVA) – have been verified to be able to accommodate different reactive power modes, active power functions, and connection conditions for normal operation or reconnection after mains decoupling.

Transneft launches battery-based power supply for ILI tools

Jan 10 – Transneft Diascan, the largest Russian inspection service provider for pipelines, has developed and put into operation a power supply system for in-line inspection (ILI) tools based on rechargeable batteries. Flaw detectors performing inspections of trunk oil pipelines, gas pipelines and oil product pipelines can now use the energy from rechargeable batteries, which helps save time and reduces the cost of in-line inspection.

Pavilion starts trading LNG out of Madrid

Jan 9 – Singapore-based Pavilion Energy has completed the acquisition of all gas and LNG assets of the Spanish utility Iberdrola. From its new European headquarters in Madrid, Pavilion said has launched 2020 LNG trading operations with supplies focusing on Spain and the UK market.

Gazprom extends gas transits via Belarus until 2021

Jan 8 – Gazprom and Gazprom Transgaz Belarus have sealed additional agreements to extend the contracts for gas supplies to and gas transportation across Belarus until 2021. According to the newly-signed documents, the contractual supply and transit volumes in 2020 will remain at the level of 2019.

EastMed pipeline to take FID by 2022

Jan 7 – Greece, Cyprus and Israel have signed an agreement to build the 1,900-kilometre EastMed pipeline at an estimated cost of 6 billion Euros. The subsea pipeline, spanning over 1,900-kilometres would initially carry 10 Bcm of gas per annum from Israeli and Cypriot waters to Crete and then on to the Greek mainland and into the European gas network via Italy. A final investment decision (FID) is meant to be reached in 2022, given that the pipeline is scheduled for completion by 2025.

U.S. energy-related emissions drop over 2%

Jan 6 – Fewer emissions from coal consumption, combined with lower energy demand, have helped to significantly reduce the overall energy-related carbon emissions in the United States. According to government statistics, energy-related CO2 emissions fell 2.2 percent last year, and the downward trend is forecast to continue into 2020.

Brent crude prices surge

Jan 3 – North Sea Brent crude prices have risen to their highest level since September 2019, up nearly $3 per barrel because of Middle East tensions coupled with improved Chinese economic forecasts. Brent crude futures for March 2020 delivery were last seen trading at 69.21 per barrel the Intercontinental Exchange (ICE). This bullish price sentiment will feed through to oil-indexed natural gas contracts and LNG deliveries, linked to the Japanese crude cocktail (JCC) basket price.

IEA says coal’s fate tied to Asia

Dec 23 – Rapid rise of wind and solar power in many parts of the world has pushed coal-fired power generation into steep decline in most developed countries. "But this is not the end of coal, since demand continues to expand in Asia," analysts at the International Energy Agency commented: "The region’s share of global coal power generation has climbed from just over 20 percent in 1990 to almost 80 percent in 2019, meaning coal’s fate is increasingly tied to decisions made in Asian capitals."