Daily News

Vattenfall, Europe's fifth largest utility, is pessimistic about the prospects of gas as a fuel source in the future energy mix; so in the next few years it is unlikely that new investments (apart from already planned investments) in gas power plants will be forthcoming, said Gabrielle Seeling-Hochmuth, head of gas strategy at Vattenfall's gas competence centre at this year's FLAME gas conference in Amsterdam.

Natural gas consumption in Mexico is on the rise with the country's consumption increasing by 4 percent per year on average during the period between 2007 and 2011 due to growing demand in the industrial sector. Mexico also plans to add 28GW of gas-fired power generation capacity between 2012 and 2027 according to the Comisión Federal de Electricidad (CFE), Mexico's state-run electricity provider. CFE estimates that this could raise natural gas needs for power generation by 5.1 billion cubic feet per day (Bcf/d).

The gas market is not yet fully liberalized and things still needs time, but as the government we are committed to duplicating the efforts made when we liberalized the power market, Turkey's deputy minister for energy and natural resources, Hasan Murat Mercan, told a conference in Istanbul organized by Gas to Power Journal.

The hunger of Turkey's industry for natural gas is unabated, while new government incentives and tax breaks aim to put the use of domestic lignite resources at an advantage over natural gas as a fuel source for power generation.

"We are over reliant on gas imports and this dependency is set to rise in line with GDP growth," said Levent Özcan Caner, Strategy Department, Ministry of Energy and Natural Resources, suggesting that government regulation in favour of coal would help reduce Turkey's gas import dependency.

Keen to fast-track the liberalisation process of the Turkish energy market, the government has set a timeline for divestment of state-owned power generation assets.

"We hope to finish the privatization of Turkey's thermal power plants by 2015," Atif Kir, Head of Project Group, at the Turkish Ministry of Privatization Administration (OIB) told Gas to Power Journal in an interview.

Turkey's gas-fired power generation capacity will continue to expand until new nuclear capacity starts operation. "We believe 60 bcm is a viable figure for Turkey's total gas demand volume by 2020, as gas-fired capacity will defend its 45 percent levels of market share until new nuclear capacity starts operation, said Ali Güleç, Senior Consultant at Deloitte.

Falling energy demand, rising gas prices and the subsidised growth in the renewable electricity supply threaten the future of natural gas as a replacement for coal in Australia's national energy mix, Bret Harper, Associate Director of Research at RepuTex – an Australian specialist energy and carbon research firm – told Gas to Power Journal.

A combined heat and power (CHP) plant being built in Düsseldorf is to achieve new records in efficiency, power, output and heat extraction. "The new CHP power plant in Lausward (Düsseldorf), starting commercial operation in 2016, will be a landmark for the future of power generation in Germany and beyond and emphasizes the role of CHP combined cycle power plants as an engine of the energy system transition," said Lothar Balling, Head of Gas Turbine Power Plant Solutions, Europe, Africa, Asia, Australia at Siemens Fossil Power Generation Division.

Wood Group GTS has consolidated its heavy frame activities in Duncan, South Carolina, naming the facility there as its center of excellence for heavy frame industrial gas turbine fuel nozzle and combustor repairs, including standard and Dry Low NOx (DLN) systems.

Houston based FGE Texas LLC, a wholly owned subsidiary of FGE Power LLC, has announced plans to build a new 726MW gas-fired power station near the community of Westbrook in Mitchell County, Texas.

Alstom has signed a contract to supply Harbin Company Limited (HTC) with two sets of GT13E2 gas turbine generators for Huaneng Power International's (HPI) Suzhou gas-fired combined heat and power plant in the city of Suzhou in China's Jiangsu province. The new plant will have an installed capacity of 400MW to help meet the energy needs of the city's south-western areas.

GE will supply gas and steam turbines, generators and a plant-wide control system for a gas-fired combined-cycle power plant as part of Phase 2 of the expansion project at the Emirates Aluminium (EMAL) smelter complex in Abu Dhabi. When complete the plant will have the capacity to generate more than 1000MW of electricity for EMAL's operations.

News in Brief

Petronas to truck LNG to off-grid users

Sept 29 – Petronas Dagangan Group is gearing up to build a LNG truck delivery service for off-grid customers in Peninsular Malaysia. Trucks fitted with cryogenic tanks will bring the super-chilled fuel to remote industries and small-scale power generators with no access to the natural gas grid. Malaysia’s Peninsular Gas Utilisation (PGU) pipeline is only 2,500 kilometers in length and was initially built to export gas to Singapore.

Siemens to reduce emissions at NLNG

Sept 28 – Nigeria LNG has contracted Siemens Energy to provide a cryogenic boil-off gas (BOG) compression train for its liquefaction plant on Bonny Island. The new BOG train will be driven by an high-efficiency electric motor and includes two compressors. Manufactured in Duisburg, Germany, the equipment will be delivered in the fourth quarter of 2021.

Supercapcitors to replace batteries

Sept 25 – The global market for supercapacitors was valued at over $487 million last year and is forecast to top $1,570 millio by 2025, growing at an annual rate of 21.8%. Supercapacitor, an emerging technology for energy storage systems, can offer higher power density than batteries was may soon replace the latter.

Atos, Siemens expand digital partnership

Sept 24 – Atos, a global leader in digital transformation, has expanded its strategic partnership with Siemens AG for five years, helping the latter with data driven digital, cloud transformation and cybersecurity. The extension comes in the context of 5-year total €3 billion agreements which were separately signed with Siemens AG, Siemens Energy and Siemens Healthineers.

Rotterdam Port to store CO2 beneath the North Sea

Sept 23 – The Porthos project, a joint venture between the Port of Rotterdam Authority, Gasunie and EBN, seeks to transport CO2 from industry in the port to empty gas fields beneath the North Sea. In its early years, the Carbon Capture Utilisation and Storage (CCUS) will be able to store approximately 2.5 million tonnes of CO2 per year with plans to be operational by 2024.

German power sector to reach net zero in 2040s

Sept 22 – Revisions to Germany’s Renewable Energy Act (EEG) stipulate the power sector should become greenhouse-gas neutral in the early 2040s. Despite the gradual electrification of heating and transport, the German energy ministry is so far sticking to its estimate of 580 terawatt-hours (TWh) of power consumption in 2030 – close to current levels.

B&W to supply superheaters to Lumiant

Sept 21 – Babcock & Wilcox’s thermal segment has been contracted to design, manufacture and supply new superheater components for a high-efficiency boiler at Luminant’s Oak Grove Power Plant near Franklin, Texas. Material delivery to Oak Grove is scheduled for February 2021.

EC targets 55% emission cut by 2030

Sept 17 – The European Commission’s latest 2030 Target Plan stipulates a 55% cut in emissions by 2030, compared to 1990-levels. The lobby group COGEN Europe stressed the importance of combined heat and power generation (CHP) to reach that goal, calling for more stable policies and supportive regulation.

Rolls-Royce may sell ITP Areo

Sept 17 – Britain’s prime manufacturer Rolls-Royce confirmed it is looking to strengthen its balance sheet, possibly by disposing of ITP Aero which his hoped to generate proceeds of more than £2bn over the next 18 months. Further cost cutting is meant to deliver £1 billion and revamping of the company’s Civil Areospace business should save another £1.3 billion.

China’s GDP may grow 1.8%

Sept 16 – China’s GDP is forecast to grow 1.8% this year as the economy recovers from the Covid-19 pandemic. The government slashed electricity tariffs to support manufacturing but the Asian Development Bank (ADB) warns of mounting credit risk for banks. Fiscal revenue pressure also intensifies as 1.5% of China’s GDP growth in the first half of 2020 was based on bond-funded investment by local governments.

Zeebrugge goes for green hydrogen

Sept 15 – Colruyt Group (Eoly), Parkwind and Fluxys aim to spend up to 35 million Euros to develop a green hydrogen plant in Zeebrugge, Belgium, by 2023. The plan is to convert off-shore wind energy into green hydrogen which can then be injected in the high-pressure natural gas transmission grid.

Shale gas market to top $41bn

Sept 14 – Global markets for unconventional gas, mostly developed by shale fracking, is forecast to grow at an annual rate of 7% to reach $ 41.76 billion by 2024. According to Technavio, the Americas region will remain dominant with an 87% market share as hydraulic fracturing technologies evolve. Top players in the market are BP, Chevron, ConocoPhillips, Exxon Mobil, PetroChina, Gazprom, Shell, Santos, Saudi Arabian Oil Co., and YPF.

SNAM, Saipem join forces on hydrogen

Sept 11 – Two Italian energy companies, SNAM and Saipem, have agreed to develop initiatives for green hydrogen production and transport, as well as for carbon dioxide capture, transport and reuse or storage (CCRS). The move supports the European Commission’s Hydrogen Strategy to reach net-zero emissions by 2050.

MAN, Wasco to drive Power-to-Gas Tech in Asia

Sept 10 – MAN Energy Solutions and Wasco have signed a Memorandum of Understanding (MOU) to promote and commercialize Power-to-X (PtX) projects in South-East Asia. The technology in question converts electricity into carbon-neutral synthetic fuels, gas or liquid, for use as a clean, carbon-neutral energy source.

Romgaz, GSP to realise 200 MW gas and solar project

Sept 9 – Romania’s state gas company Romgaz has agreed to build 200 MW power generation capacity with the privately-owned Grup Servicii Petroliere (GSP) which is controlled by the local businessman Gabriel Comanescu. The project entails a 150 MW gas-fired power plant and a 50 MW solar photovoltaic park, to be built on the site of a disused coal power plant in southern Romania.

Alaska uses twice as much energy for transport as NY

Sept 8 – More energy is used per person for transportation in U.S. states with low population density. According to the U.S. Energy Information Administration’s (EIA), people in geographically large states with small populations, such as Alaska, Wyoming and North Dakota, are useing twice as much energy for transportation than the U.S. average on a per capita basis. That’s in stark contrast to states with higher population density, such as Rhode Island and New York.

Hydrogen Council launched in Kobe/Kansai area

Sept 7 – Mitsubishi Power, part of MHI, and various Japanese energy companies have set up the so-called ‘Kobe/Kansai Hydrogen Utilization Council’ to develop new utilization methods and establish a regional hydrogen supply chain. The aim is to help Japan shift to a carbon-free, hydrogen-powered society by 2030.

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