Daily News

Investment in US wind power is expected to plunge this year in spite Congress agreeing to a one-year extension of the wind energy Production Tax Credit (PTC) and Investment Tax Credits (ITC), analysts warn. Gas power generation at record low costs and a flurry of wind capacity start-ups in Q4-2012 is set to put a lid on new projects.

Development of Pratt & Whitney Power Systems (PWPS) new 60 megawatt (MW) class models is likely to be accelerated under the new ownership by Mitsubishi Heavy Industries (MHI), industry sources told Gas to Power Journal. PWPS' new 60 MW model will complement the proven 30 MW machines.

Wärtsilä, a global gas engine manufacturer, has won a contract worth €184 million to engineer, supply and install a 200 megawatt (MW) dual-fuel power plant in Jordan.

The newly sworn-in Japanese government is considering taking a U-turn on nuclear power, overthrowing the 2030 nuclear exit policy of the former administration, with the greater market share of nuclear curtailing poised to curtail gas generation.

Germany will realise merely half of the 10,000 MW in offshore wind capacity it plans by 2020, according to wind energy association BWE, with the slow expansion in wind capacity requiring more fossil capacity.

GE has won an order to supply Frame 6B gas turbines to Spain’s Technicas Reunidas, the engineering, procurement and construction contractor for the upgrade of the Izmit refinery.  The order is part of a $2.3 billion investment by refinery owner Turkish Petroleum Refineries Corporation (Tupras), to upgrade its 1960s era refinery to meet the latest EU environmental and emission standards.

A deal to design, develop, own and operate a new natural gas fuelled power plant has been agreed between Canadian energy company TransCanada Corp. and Ontario Power Authority.

Florida Power and Light has ordered three SGT6-8000 gas turbines and generator packages, for its Port Everglades power plant. This new order for Siemens technology is part of it $1billion modernization of a 1960’s era power plant.

Origin Energy has started operations of a new 550 MW gas peaking plant in the Australian state of Victoria with a view to expanding the plant's capacity to 1,000 MW, if required. Located at Mortlake, some 220 km west of Melbourne, the new power plant costs investors some $810 million.

The British government has just given the go-ahead, after an 18 month suspension, for the resumption of exploration of unconventional gas by the energy company Cuadrilla, using the fracking process. Energy and Climate Change Secretary Edward Davey gave the go-ahead, subject to stringent new controls to mitigate possible seismic activity.

Monday, 17 December 2012 / Markets

NRG merger with GenOn completed

Texas-based NRG Energy completed a $1.7 billion merger with New England’s GenOn Energy last Friday. The merger unites two former rivals companies which in 2011 generated some 107 TWh of electricity, sufficient to power about 40 million homes in the US.

A 450MW combined cycle heat and power (CHP) plant is to be built by Alstom in Cologne, at a cost of €350 million, for German power utility RheinEnergie.

Mozambique plans to build its biggest ever gas fuelled power plant. Wartsila has signed a €138 million  deal with joint-venture Central Termica de Ressano (CTR). CTR is a joint-venture owned by South Africa’s integrated chemical and energy giant SASOL Energy, and Mozambique’s state owned electricity company Electricidade de Mozambique (EDM).

Power prices in Singapore are recovering from a plunge in late October caused by a record increase in registered power generation capacity of combined cycle gas turbines (CCGTs) and low fuel prices.

Gas-fired combined-cycle power plants (CCPPs) will dominate the US power generation market, as economics of low-cost gas generation and more stringent emissions regulation continue to erode the competitiveness of coal-fired plants, forecasts John Wilson, vice president for product sales Americas at Siemens.

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."