Daily News

MAN Diesel & Turbo has been selected to build an 88 megawatt diesel power plant in Thika City, near Kenya's capital Nairobi. Construction works at the site have started and MAN Diesel & Turbo said it expects the plant to start operations in 2013.

The U.S. Energy Information Administration (EIA) has examined 29 alternate scenarios for the future U.S. energy market in its Annual Energy Outlook 2012 (AEO2012). In the EIA reference case scenario, the share of gas-fired power generation is forecast to rise from 24 percent in 2010 to 28 percent in 2035. "Uncertainty is inherent in long-term projections," EIA Administrator Adam Sieminski said when unveiling report.

GE will provide the Spanish utility Gas Natural Fenosa's (GNF) with advanced dry low NOx (DLN) 2.6+ combustion technology for a GE 9FA gas turbine operating at one of GNF's combined-cycle power plants.  The project is the first of its kind in Spain negotiated under a new GE contractual service agreement (CSA), GE said.

Austria's most efficient thermal power plant has started operations after Siemens Energy officially handed over the Mellach combined-cycle power plant (CCPP) to the Austrian utility Verbund Thermal Power on Friday. The plant's record district heating output of 400 MWth facilitates that more than 80 percent of the energy in the fuel is put to effective use, according to Siemens Energy.

Japan's Mitsubishi Heavy Industries has published a document entitled "MHI Environmental Vision 2030", setting out how to reach its economic targets while developing sustainable technology. One key objective is to strengthen efforts on developing technology for energy storage, MHI said.

Russia's Gazprom has entered talks with Italy' Enel, France's EDF and Denmark's Dong with the aim of purchasing a stake in one of their European gas-fired power plants, according to Gazprom CEO Alexei Miller.

Braden, an operating division of Global Power Equipment Group, has won a contract worth 8 million Euros to provide gas turbine exhaust systems to Siemens Energy for the Khormala phase I Combined Cycle Power Plant (CCPP).

Turkey has been an island of high energy demand in Europe, with electricity demand growing by just under 6% in Turkey in 2000-2007, compared to 2% in OECD Europe, Alexander Antonyuk, Energy Analyst at the International Energy Agency (IEA) said today.
"Turkey was one of the countries where power demand recovered fasted from the recession," he said cautioning that electricity demand growth has slowed down to 4.5% over the past two years. "This recent dip is mainly due to lower demand growth in energy-intensive industries," he told 'Gas to Power Journal' at the sidelines of a conference in Istanbul.

Gama Energji is in talks with two potential partners about setting up a tolling agreement to market the electricity generated at its Kirikkale CCGT project with the aim of reducing financing costs.
"We want to have a tolling accord in place - as a hedging instrument - before we close project financing for Kirikkale, as it could give us a reduction in interest of about 150 basis points," Orkun Eyilik, Commercial Manager, Gama Energji told 'Gas to Power Journal' today.

EMRA, Turkey's Energy Market Regulatory Authority, is considering introducing 'paid-in capital' criteria as a precondition for granting licences to power plant developers. By taking this step the regulator intends to limit so-called 'speculative licence applications', Muhammed Demir, Group Head, at EMRA's Electricity Market Department said in Istanbul today.

EnerjiSA, a Sabanci/Verbund joint venture, sees a growing need for LNG imports to Turkey as a flexible supply source of natural gas to underpin the growth of installed power generation capacity. "Gas-fired plants may well grow in number as LNG as a fuel is increasingly considered as an interim option by plant operators," Kivanc Zaimler, Commercial Director - Natural Gas, EnerjiSA said in Istanbul today.

Financing for new gas-fired power plant is getting tight in Turkey and fewer projects will come to fruition. "Combined-cycle gas turbine (CCGTs)  plants with less than 50% operational efficiency will not get financed in Turkey" Emre Hatem, Manager, Project and Acquisition Finance, Garanti Bank said at a conference organised by 'Gas to Power Journal' in Istanbul today. He forecast a reduction of the share of gas in Turkey's energy mix from currently 45% to 25% by 2020.

General Electric (GE) will supply the Japanes steel producer JFE Steel Co. with a heavy duty Frame 9E gas turbine system for a steel gas-to-energy recovery project at its East Japan Iron Works in Chiba City, east of Tokyo. GE said today it will start delivering the equipment to Japan in December 2013.

Karoo Sustainable Energy (KSE) has won the 2012 Africa Competitive Strategy Leadership award after it negotiated the first Power Purchase Agreement (PPA) with Botswana Power Corporation (BPC) as a step towards structuring the financing of a 180 MW gas-fired power plant project.

Investment bank Société Générale today questioned the affordability of natural gas as a fuel for European power plant operators. „At today's prices, gas is too expensive a fuel for Europe," the bank said today, suggesting the "overprice" in terms of the bill is $315/1,000cm or $153bn for 2012e.

News in Brief

MHI-MME to take over turbocharger production

Sept 20 – Mitsubishi Hitachi Power Systems will no longer produce MET turbochargers, the standard worldwide exhaust gas turbochargers used in stationary engines. Starting from January 1, 2020, these devises will be produced by Mitsubishi Heavy Industries Marine Machinery & Equipment (MHI-MME) instead.

Japan starts electricity futures trading

Sept 19 – Tokyo Commodity Exchange (TOCOM) has launched trading in electricity futures to advance price competition in Japan’s liberalized energy market. The East Area peakload electricity contract for October delivery first traded at 10.9 Yen per kWh, lower than the standard price of 11 Yen set by TOCOM in advance.

Duke to reduce rates in 2020

Sept 18 – Duke Energy Florida (DEF) customers will see lower bills in 2020. The utility filed a proposal with the Florida Public Service Commission to reduce rates for electricity and gas by more than 3% while adding more solar power and making grid improvements.

Myanmar approves three power projects

Sept 17 – Myanmar’s Ministry of Electricity and Energy has given the green light to plans for a 1,230 MW gas-fired power plant in Kanpauk, Taninthayi region, a 377 MW gas-fired unit in Ahlon, Yangon region and a 1,390 MW thermal plant in Milaunggyine in Ayeyawady region. The conflict-ridden country is currently producing electricity from 5,600 MW installed capacity, derived both from state- private-owned power stations.

Bonny Train-7 to cost $6.5bn

Sept 16 – Nigeria LNG is preparing to add a seventh processing train to Bonny LNG, bringing total capacity from 22 million tons per annum (mtpa) to 30 mtpa. Estimated to cost $6.5 billion, Bonny Train-6 will include a new liquefaction unit, a storage and a condensate tank as well as three gas turbine generators.

Schneider to complete L&T takeover by early 2020

Sept 13 – Venturing into India, Schneider Electric hopes to finalise the Rs 14,000 crore acquisition of Larsen & Toubro's electrical and automation business by early 2020. After the transaction is completed, Schneider will have a 65% stake in L&T, while the remainder will be held by Temasek.

MHI to advice China on energy conservation

Sept 12 – Mitsubishi Heavy Industries Thermal Systems, part of MHI, has set up a joint venture withan affiliate of State Grid Corporation of China (SGCC) to perform technical consulting for energy conservation projects in China. The focus of SGCC lies on building new decentralized power stations, biomass-derived power gensets and energy saving solutions.

Tender extended

Sept 11 – Turkmengas has extended a tender for the overhaul of the gas turbine engines of the NK-12ST and NK-14ST brands. Bidders need to pay to receive the tender documents, and then submit a written application to Turkmenistan’s state gas company.

Gas power units to buffer Germany’s coal exit

Sept 10 – Electricity output of Germany’s fleet of gas-fired power plants has risen to a over 13,5 billion kilowatt-hours in the three months from June to August, Fraunhofer ISE figures show. These productivity gains put CCGTs in pole position to balance supply swings in connection with the German coal exit.

Power of Siberia gas flows to start on Dec 1

Sept 9 – Russian gas supplies to China via the eastern route are going to start on December 1, 2019, Gazprom chairman Alexey Miller told his counterpart at CNPC in Beijing. The huge Chayandinskoye field, containing some 1.2 trillion cbm of gas, had already been connected to the 38 Bcm per year ‘Power of Siberia’ gas pipeline in August.

Hurricane Dorian causes havoc in the Bahamas

Sept 6 – In the aftermath of Hurricane Doran, a Category 5 storm, Bahamas Power and Light has said there is a total blackout in New Providence, the most populous island of the archipelago. Dorian made landfall twice on Sunday, ripping off roofs and electricity lines. In most parts, electricity has not been restored.

LNG cargoes via Bab-el Mandeb decrease

Aug 30 – Northbound LNG shipments via Bab el-Mandeb, a sea route chokepoint between the Horn of Africa and the Middle East, have fallen over the past three years as Egypt imports less natural gas from the Persian Gulf. In 2015 and 2016, both Jordan and Egypt imported up to 1.4 Bcf/d of LNG into Red Sea ports but these shipments fell sharply following the development of large gas finds in the Mediterranean.

Hokuriku Electric buys LNG cargo

Aug 29 – Japanese utility Hokuriku Electric has purchased an LNG cargo for delivery in November as soaring temperatures drew down gas in storage for the autumn. The cargo is understood to be scheduled for delivery in the second half of November from Malaysia’s Petronas and may well be destined for Hokuriku Electric’s first LNG-fired power generation unit,  the Toyama Shinko plant.

Technip spins off LNG activities

Aug 28 – TechnipFMC, has decided to spin off its European-based engineering and construction operations into a separate business, leaving the American half of the firm as an equipment supplier to the oil and gas sector. The split is due to be completed in the first half of 2020.

FLNG power market to top $930m by 2023

Aug 27 – The global market for floating LNG power vessel is projected to reach $ 931.6 million by 2023, up from $ 860.1 million seen last year, according to ReportsnReports. Major vendors of FLNG power vessels are Siemens, MAN, Wärtsilä, Caterpilar and GE which are targeting to use the technology to supply decentralized power to island nations in Southeast Asia and along the coast of sub-Saharan Africa and the Americas.

EIA monitors grid hourly

Aug 26 – The U.S. Energy Information Administration (EIA) has launched a beta release of its hourly electric grid monitor. The enhanced version analyses hourly generation by energy source and hourly sub-regional demand for certain balancing authorities in the Lower 48 states.

Hiroshima waste-to-energy plant gets upgrade

Aug 23 – Mitsubishi Heavy Industries (MHI) has been chosen to upgrade and refurbish the combustion facilities at a waste to energy plant in Hiroshima. The Naka plant in Minamiyoshijima, Naka-ku, has a total waste treatment capacity of 600 tonnes per day and generates 15.2 MW of electricity to power the equipment in the factory, while selling the remainder to the grid.