Daily News

Transco, a key gas transmission pipeline in the U.S., is preparing to increase gas transport capacity to satisfy rising gas demand for power generation. "Power generation is the driver behind about a third of the volumes in proposed projects in development on our Transco pipeline," Alan Armstrong, chief executive of Williams Partners' said.

Southern has burned more natural gas than coal for power generation during the first quarter of this year as plunging gas prices due to abundant domestic supply makes gas the cheapest fossil fuel in the U.S.

Entso-E, the representative body of European TSOs, is criticizing the lack of investment in power grid expansions to support the massive increase of renewable capacity throughout Europe. Gas-fired power plants are widely used to backstop the intermittency of electricity produced by renewable energy sources.

The impact of today's strike at E.ON's gas- and coal-fired power plants in France is expected to be "minimal" and will not curtail electricity output as the German utility is not planning to operate the affected plants.

The focus in hot section coatings is shifting from temperature to time. "It's all about coating durability," Carol Crowe, aftermarket coatings discipline chief at Pratt & Whitney said today.

Alstom has developed a new nozzle design for gas turbines and is getting ready to put it to production. "We started to use them in production, now that we've solved an initial problem with nozzle life time," Sebastian Mihm, coating engineer at Alstom said today.

Robustness and increased thickness of thermal barrier coatings (TBC) of industrial gas turbines  is 'key' as the industry aims to ramp up firing temperatures and pressure ratio to boost turbine performance. "We need to spend more R&D money on TBC process robustness," Matthias Oechsner, professor for materials technology at the technical university of Darmstadt, Germany, told an industry forum in Nice today.

Danske Commodities has started to take on physical power generation assets by buying a 38 MW combined heat and power (CHP) plant outside Copenhagen from Dong Energy. The acquisition marks the first move  of the Danish energy trading house to get risk exposure to power generation assets. Other purchases may follow "if the price is right," Jakob Bendixen, head of power generation at Danske Commodities said. 

ABB has delivered in record time a Symphony plant automation system for a 500 MW supercritical unit at South Korea's largest thermal power plant in Boryeong. The speedy delivery enables the unit to start production 11 days ahead of schedule, ABB said today.

 A new gas-fired combined heat and power (CHP) plant could be on the horizon for the Milford Haven waterway, South Hook LNG has confirmed. The news comes after the UK Government announced its backing for a major expansion in gas generated electricity to avert a looming gap in power generation capacity.

Siemens and the Nigerian company Scanpower have signed a technical partnership agreement for the construction of a 1,600 MW gas turbine power station at Lekki in Lagos state. The German engineering giant also announced it entered a strategic partnership with the Nigerian Federal Ministry of Power to support the financing of power plant projects "on a case-by-case basis".

Electricity Supply Board (ESB), Ireland's premier utility, plans to spend £750 million (US$1,207 million) to build a new 1,500 MW gas fired power plant in Britain. Operational start of the plant is scheduled for 2018, an EBS spokesman confirmed today.

Saudi Aramco has commissioned International Power and GDF SUEZ (IPR-GDF Suez) to expand the Tihama power plant sites, located in Saudi Arabia, by 532 MW. Long-term offtake contracts through to 2026 have been signed for this expansion, the two companies said today.

February 2012 was an "outlier" in electricity consumption and should be considered as such, Societe Generale  analysts, led by Paolo Coghe and Thierry Bros, wrote in the Energy Pulse report issued today. The prolonged and record-breaking cold spell endured by Europe during the first half of February resulted in strong electricity  consumption – but just for the month itself.

Gas prices across Europe need to drop by 20% to make the fuel competitive with coal for power generation during hours of peak demand, Vitol's gas head David Gallagher said. At that level it would make economic sense for electricity producers to switch from burning coal to gas.

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.