To restore deteriorating output, La Paloma Generating Company (LPGC) considered an upgrade of turbine components, but found a cheaper way: "After doing a net present value analysis of the money we would have to invest and how much power we would recover, fogging turned to be really, really good in terms of dollars per kW," said Pablo Cortes Oseguera, LPGC engineering and maintenance manager. "It made a lot of sense to our owners."
ComEd, a unit of Chicago-based Exelon Corp, has turned to ABB’s latest distribution and outage management systems in order to minimize the impact of outages for its customers across northern Illinois. ABB Ability, an integrated software platform, allows for real-time monitoring, network analysis and outage management.
A tender for the procurement of LNG for 500 MW decentralized power in Indonesia will be opened by Singapore in due course. Maritime minister Luhut Pandjaitan announced the LNG cargoes will be shipped to small-scale, decentralized power plants (25-50 MW) in seven locations in close proximity to Singapore.
Driven by falling costs, increasing investor confidence and policy support, renewable power and decarbonisation technologies are reshaping global energy markets. In Wood Mackenzie and GTM Research’s latest report ‘Future of renewables: a radical disruption,’ over 21% of all cars on the road are estimated to be electric by 2035 under the carbon-constrained scenario. Such a stark shift to EVs can displace up to 6.5 million barrels of oil demand.
Tenet, the Dutch-German transmission system operator, has handed a $39 million contract to ABB to to supply a stabilization solution that will enhance the reliability and quality of power as the grid absorbs more renewable energy. Germany’s “Energiewende” roadmap targets at least 80% renewable energy by 2050.
Excess growth in global LNG supply, notably through the ramp-up of US LNG through 2018 and into 2019, will make European gas prices “move through the coal floor [price]”. Fuel-switching in the Western European power market, according to Societe Generale, will ultimately be determined by short-term gas prices hinging at the variable cost of shipping a US LNG cargo to Europe.
Smart electrically-driven heating is a “valuable field in which to invest”, Delta-EE says, pointing at the substantial installed base of electrically-driven heating – 30 million units across Europe. Considering that European utilities have lost over €100 billion in value since 2008, Delta-EE industry recommends “stakeholders should take advantage of digitalisation” and try to extract value from the electrification of heat.
Cairo Electricity Production Company (CEPC) has entrusted Mitsubishi Hitachi Power Systems (MHPS) with the upgrade of module-1 of the Cairo North power station. The CCGT has a rated output of 750 MW and runs based on two M701F gas turbines. Delivery and start-up of the upgraded plant is scheduled for the second half of 2018.
The European Commission is to crack down on all Large Combustion Plants (LCPs), mandating that they conform with best practice. It adopted an implementing act to introduce "Best Available Technique" (BAT) conclusions for some 3,500 power plants of 50 MW or larger, irrespective of their fuel. Stricter emission standards for all LCPS are meant to be in place by mid-2021.
Tested and validated at customer site, Siemens has reached the next level of efficiency with its HL-class – an evolution of its proven SGT-8000H technology. At Duke Energy's Lincoln County site in North Carolina, the new engine reached 63% combined cycle efficiency during testing in June 2017. Siemens’ mid-term goal is to reach 65%.
New York State has an ambiguous relation with natural gas: Although manufacturers and power producers are benefitting from cheap shale gas from Marcellus, two major transmission pipeline projects – Constitution and Millennium Pipeline – have been halted by state regulators. Project developers pursue their options at the Federal Energy Regulatory Commission (FERC) and in court.
Aluminium Bahrain (Alba), one of the world’s largest aluminum producers, has raised financing for a 1,792 MW combined-cycle gas turbine power plant in Bahrain – supported by GE Energy Financial Services. SERV, a Swiss Export Credit Agency (ECA), agreed to back $310.4 million and €314.3 million loans with reinsurance from BpiFrance and Italy’s SACE.
Unabated growth in energy consumption prevails in Texas: The Lone Star State has consumed the most energy in every year since 1960, the earliest year for which EIA has data. By year-end it is estimated to exceed 12,998 trillion Btu. California ranked second, consuming about 8% of U.S. total energy use.
Plans for another FRSU with 17 mtpa regas capacity and an onshore LNG terminal show the government of Bangladesh “is clearly in support to boost its LNG supply,” Wood Mackenzie comments. Already, private capital is being attracted to this sector with Summit Power, Reliance Power and Petronet looking to invest in these terminals.
UK Power Reserve said it is “on track to deliver its 2014 capacity market obligations” with nine power stations built so far in 2017 and another nine set for completion by the end of the year. Once all 18 are commissioned and fully operational, UKPR will contribute 364MW of fast-ramp, flexible gas generation to the UK power grid.
News in Brief
GE to build four substations in Egypt
Sept 19 – Egyptian Electricity Transmission Company (EETC) and GE have closed a $250 million contract that will see GE build and install four Gas-Insulated Substations (GIS) across Egypt to connect 7 GW to the country’s national power grid by the end of 2018. The contract is fully financed through Deutsche Bank and HSBC France which helps secure smooth execution of the project.
Irma slashes energy demand in Florida
Sept 18 – Hurricane Irma has proved to be a demand-side event in Florida. At its trough, the state appeared to lose 1.9 bcf/d of demand versus pre-storm levels, mainly in the power sector. According to Energy Aspects figures, electricity demand on September12 dropped to 0.8 bcf/d, compared to a pre-storm baseline of 3.6 bcf/d.
Drax plans to convert two coal units to natural gas
Sept 15 – Drax Group has filed plans to the UK Planning Inspectorate to build a 200MW battery storage unit, and convert up to two coal units at the Drax power station to run on natural gas. If approved, the repowering could result in up to 3.6 GW of new flexible gas generation capacity. The utility stated its investment at Drax is backed by a 15-year capacity contract.
Azura Edo IPP ready to startup in early 2019
Sept 8 – Siemens-built Azura Edo Independent Power Project (IPP) is planned to add 459MW to the Nigerian national power grid by early 2019, Siemens Nigeria CEO Onyeche Tifase said. The Azura Edo IPP is an open-cycle gas turbine power plant project, which could potentially account for up to 20% of Nigeria’s installed capacity of 12.5MW by 2020.
Oman’s oil output hits new record
Sept 7 – Oil production in Oman has reached a new record, totalling 1 million barrel per day (b/d) in 2016. Dependent on revenues from oil and gas exports, Oman’s state finances have been hit by the plunge in oil prices which made 2016 oil and gas revenues plunge 67% compared with 2014 levels.
Petrofarc to build South Stream
Sept 6 – UK contractor Petrofarc won an engineering, procurement and construction (EPC) contract worth 340 million Euros ($404m) by the Gazprom-owned South Stream Transport company to build onshore pipelines and a gas receiving terminal near the Turkish town Kiyikoy.
Gas prices slowly return to normal after Harvey struck
Sept 5 – The price of natural gas and other petroleum products has surged in the aftermath of Hurricane Harvey. Yet as of Monday, key gasoline prices started to return to pre-Hurricane levels as key refineries and pipelines along the US Gulf Coast are resuming operation, easing supply concerns.
ACER to set deadline
Sept 4 – The European energy regulatory authority ACER is consulting until September 15 on an implementation date for harmonized prices in the EU's day-ahead and intraday power markets. Introducing maximum and minimum prices is meant to enhance market coupling.
Pöyry to review Shoaiba-4 plant
Sept 1 – The Saline Water Conversion Company (SWCC) has awarded Pöyry with the owner's engineer services assignment for the Shoaiba-4 desalination plant which will meet the potable water requirements of Saudi Arabia's second largest city and its five million people. Pöyry's scope includes review of contractor's engineering and supervision of construction, erection and commissioning.
Wärtsilä wins 220 MW power plant contract in Bangladesh
Aug 31 – Desh Energy Chandpur Power Company, an independent power producer (IPP) in Bangladesh, has contracted Wärtsilä of Finland to supply twelve 18-cylinder Wärtsilä 50 engines for a new 220 MW baseload power plant to be installed in Chandpur. The customer required a nine-month implementation time, with the plant due to be fully operational in May 2018.
Works start on Hickory Run CCGT
Aug 30 – Tyr Energy has started construction works on the Hickory Run Energy Center in Pennsylvania. The combined-cycle gas power plant has a nominal generating capacity of 1,000 MW.
Canadian Cats dealers merge
Aug 29 – Toromont Industries will acquire the businesses and net operating assets of fellow Canadian Caterpillar dealer Hewitt Group. The deal was agreed in turn for C$917.7 million cash plus the issuance of 2.25 million Toromont shares, the two companies said.
Ansaldo to service Thai cogen plant
Aug 25 – Glow Energy, one of Thailand’s private power producers, has contracted Ansaldo of Italy to service a 328 MW cogeneration plant, located in Map Ta Phut Industrial Park, 200km southeast of Bangkok. Apart from electricity, the plant produces 160 tonnes/hour of steam to support local industries. Ansaldo’s 15-year service deal covers maintenance, replacement capital parts and remote monitoring and diagnostics for the gas turbine.
Low voltage drives for China
Aug 24 – Siemens is to equip several Chinese aluminum factories with medium and low voltage drives. The value of the order is in the low tens of millions Euros. Commissioning will be completed in several stages between November 2018 and April 2019.
Oil price seen rebound toward $60/bbl
Aug 23 – Oil pricing dynamics will increase, through near-term $50-60 range, forecasts Wood Mackenzie principal analyst, Patrick Kirby. For olefins, and polyolefins, this means the global and particularly European view is sensitive to demand, particularly from China, given that the supply landscape is well defined.
GS EPS commissions 900 MW plant in Oman
Aug 22 – South Korea’s GS EPS and GS Holdings have completed the construction of Phase IV, a 900 MW combined-cycle plant in Muskat, Oman. The CCGT has a power efficiency rating of 64% and is run by imported LNG. As an independent associate of Oman Oil Company (OOC), the Korean power producer helped with knowledge transfer and now aims to realise renewable energy projects in Oman.
U.S. demand to eke out growth
Aug 21 – Energy Aspects says the total U.S. power sector is about to “eke out growth”, with balances for the week ending August 18 averaging 34.3 bcf/d, meaning demand was just 0.5 bcf/d higher week-on-week. Although cooler weather is forecast for the Western and Central US over the next 10 day, much warmth is set to emerge in the East, limiting energy demand.
