South Korea, the world’s third-largest LNG importer, will likely see natural gas demand rise 15% over the next 12 years as the country transitions from coal to gas generation and renewables. The energy ministry forecasts gas demand will amount to 41.7 million this year, and grow to 47.9 mt by 2034.
If the world takes decisive actions to limit global warming to 2°C by 2050, the scale of change is likely to unravel the energy industry. “Progressive electrification will squeeze the most polluting hydrocarbons out of the energy mix,” Wood Mackenzie says, forecasting oil demand will take a hit while gas demand remains resilient.
New York-based New Fortress Energy (NFE) today has posted first-quarter net loss of $39.5 million as it strives to complete LNG import projects for the local power sector in Mexico and Nicaragua in the next two months. “Developments are advancing on budget and schedule,” the company said, adding the terminals are due operational in Q2-2021.
Energias de Portugal (EDP) is preparing to install a Power-to-Hydrogen system at its Ribatejo combined-cycle gas power plant (3 x 392 MW), situated some 30 kilometers northeast of Lisbon. The three units, powered by Siemens V94.3A gas turbines in single shaft configuration, have a combined capacity of 1.176 MW. Trial runs are due to start in March 2023.
Schlumberger New Energy, the energy transition unit of the US oilfield service giant, is developing a lithium extraction pilot plant in response to growing demand for utility-scale battery storage in the transport and power sector. To be built through NeoLith Energy in Clayton Valley, Nevada, the pilot plant is due operational before the end of 2021.
Electricity Supply Board‘s (ESB), Ireland’s largest utility, has ordered a grid stabilizing system from Siemens Energy for Moneypoint power station where ESB launched a ‘Green Atlantic’ project. The coal power site in County Clare will be transformed into a green energy hub, based on renewables and hydrogen with a view to powering 1.6 million homes.
The rapid build-out of Philippine LNG import and power project puts many assets at risk of becoming stranded. The total investment in ports, LNG regas facilities, pipelines and power plants is estimated at over $13.6 billion (PHP 653.5bn), but much might be underutilized, analysts warned, as renewables become cheaper.
The Port of Rotterdam plans to take a financial investment decision on its H-Vision project this year, with a view to producing hydrogen from natural gas and refinery fuels gas by the end of 2026. Such fossil fuel-based, “blue” hydrogen projects, however, do not enjoy the same support as “green” hydrogen projects, based on renewables.
Siemens Energy today posted a substantial rise in second quarter orders, up 39% to €10.5 billion, driven by the wind turbine segment. However, the German OEM lowered the upper end of its revenue growth forecast for fiscal 2021 to 3-8%, amid weaker-than-expected demand and project delays.
Singapore-based utility Nexif Energy, backed by Denham Capital, has reached financial close on its 154 MW Snapper Point power plant, under construction at Outer Harbour, South Australia. The peaking plant is powered by five converted GE gas turbines, leased for 25 years.
Energy Australia, part of Hong Kong-listed CLP Holdings, has decided to invest A$300 million ($232m) to expand its Tallawara power plant after having received A$83 million in state funding. The plant will be upgraded to hydrogen co-firing and help balance a looming capacity deficit when AGL retires its large Liddell coal power unit in 2023.
Siemens Energy, together with the Spanish EPC contractor TSK, will supply and install an F-class gas turbine at Atinkou’s new combined-cycle power plant, under construction in Jacqueville, Ivory Coast. Owned by Atinkou, part of Eranove Group, the CCGT will have an installed capacity of 390 MW and is due operational in late 2022.
News in Brief
Growing production puts a lid on oil price
June 18 – Rising crude oil production – driven by OPEC, Russia and the United States – will limit price rises for global crude oil benchmarks Brent and West Texas Intermediate (WTI), which impacts long-term natural gas prices. In the June Short-Term Energy Outlook (STEO), US government analysts expect the Brent crude oil price will average $68 per barrel in the third quarter of 2021, fall to $64/bbl in the fourth quarter and decline further to average $60/bbl in 2022.
CPH2 to install 1 MW electrolyser in Belfast
June 16 – Clean Power Hydrogen (CPH2), together with B9 Energy, has won an order from Northern Ireland Water for a MFE220 1-MW membrane-free electrolyser via its main contractor LaganMEICA. Oxygen, generally regarded as a by-product of hydrogen production is used to more efficiently treat wastewater at NI Water’s Belfast plant. Due to be installed by September this year, the MFE220 electrolyser will produce up to 451 kilograms of hydrogen and up to 3609 kg of medical-grade oxygen per day.
MTU subsidiaries to bear Rolls-Royce brand name
June 15 – As of today, Rolls-Royce's Power Systems has implemented a new brand architecture for its five MTU subsidiaries. MTU Friedrichshafen GmbH, for example, will become Rolls-Royce Solutions GmbH. German subsidiaries in Augsburg and Ruhstorf, as well as regional companies in America and Asia will be renamed with geographical references. All others will be rebranded by the end of September 2021.
KBC adopts BakerHughes AI simulation
June 11 – Yokogawa Electric subsidiary KBC will deploy artificial intelligence (AI) technology from the BakerHughesC3.ai (BHC3) alliance to better simulate its oil and gas processes. The AI solution will continuously update physics-based simulations through a flexible modelling, scalable to any industry. KBP anticipates customers’ improved will yield more than $0.65 per barrel.
OneSubsea selects Siemens sensors for deepwater project in Brazil
June 10 – Houston-based OneSubsea has selected Siemens Energy to provide pressure and temperature sensors for the subsea production system for the Bacalhau oil and gas condensate field in Brazil’s Santos basin. The sensors will provide monitoring data for the production system on the seabed at a water depth of 6,726 feet. Installation and commissioning of the equipment is slated for 2022 and 2024.
Wärtsilä to service Malta power plant
June 9 – Wärtsilä has signed a second long-term service agreement renewal for the Delimara Power Plant 3 (D3) in Malta. The accord covers four 50DF dual-fuel engines and four 50SG gas engines. The flexible Delimara plant is vital to ensure stability of power supply for Malta’s island grid.
BV launches digital simulation tool
June 8 – Classification society Bureau Veritas (BV) has launched Opera, its new digital simulation tool for testing and certifying floating power units. The integrated modelling can inspect all components, e.g. those of a floating wind turbine, from mooring systems to blades.
Linde selected to build Russian GPP
June 7 – Linde and Renaissance Heavy Industries have been contracted by Gazprom to carry out the design works, equipment supplies, construction, and commissioning of gas processing plant (GPP) and off-site facilities at the Gas Processing Complex near Ust-Luga. The consortium intends to start construction this June.
Start-up of Tema LNG delayed
June 4 – Ghana sees LNG as a “relatively quick and inexpensive way” to meet growing gas demand for power generation but country’s aspirations to become sub-Saharan Africa's first LNG importer is being delayed to later in June. The commissioning cargo was meant to arrive at Ghana’s new Tema LNG terminal by the end of May, but our data indicates the FSU Torman II is still at Singapore’s Sembawang shipyard.
ACWA sources biofuel to power tourism
June 3 – Saudi developer, investor and operator ACWA Power has teamed up with the Gulf’s largest biofuel producer Neutral Fuels to supply green energy for Saudi Arabia’s most ambitious regenerative tourism project on the Red Sea coast.
CNE sets up Houston offices
June 2 – Carbon Neutral Energy (CNE) is setting up in Houston due to the huge demand for mobile energy storage systems to mitigate the risk of emergencies like the Texas blackout earlier this year. CNE raised $420 million funding in the UK and is now seeking to strengthen its foothold in the US.
AEG equips Swedish hydrogen plant
June 1 – Amsterdam-based AEG Power Solutions has supplied components for a high-pressure electrolysis process at a pilot plant, built by Hydrogen Pro on behalf of the metal research institute Swerim. The electrolysis process selected by Swerim is an alkaline electrolyser with a high level of dynamics driven by Thyrobox DC2, industrial DC power supply.
Li-ion batteries lose their lead
May 31 – Li-ion batteries have dominated the energy storage field, but are expected to lose their leading role in stationary applications. According to IDTechEx findings, Redox flow batteries are gaining traction and likely to overtake the installed Li-ion battery energy capacity before the end of 2030.
Kuwait Petroleum supports Jenbacher S engine oil
May 21 – The Austrian engine maker INNIO and Q8Oils, part of Kuwait Petroleum, have launched the Jenbacher S Oil 40 gas engine oil designed to lubricate engines that run on biogas and landfill gas. The new product is based on INNIO’s high-performing oil for stationary gas engines and provides very long drain intervals, reduces oil consumption and extends oil filter life.
J320 engine powers pasta factory
May 19 – Clarke Energy and INNIO have commissioned a Jenbacher gas engine to power a new Pasta factory in Cameroon. The gas-fuelled J320 engine installed is now delivering a resilient on-site power supply to the manufacturing facility, situated in the town of Douala.
Magma delivers composite riser pipe to HWCG
May 17 – Houston-based Magma Global has delivered the world’s first high-pressure composite riser pipe to HWCG’s gas storage location on the U.S Gulf Coast. HWCG is one of two deepwater oil and gas emergency response consortiums, set up after the Macondo blowout in 2010. It provides a capping stack within 7-14 days and the restart of contingent hydrocarbon flow and capture operations within 18 days of an incident
SynCraft orders J412 engines for biomass plant
May 14 – INNIO Jenbacher has received orders to supply two J412 gas engines, with 500 kW electrical output, for SynCraft biomass power plants in Austria. Each year the two units will process 6,000 metric tons of residual wood into 7,000,000 kWh of renewable power and 10,000,000 kWh of process heat.
