Daily News

Tokyo Gas is expanding its power generation capacity as Japan's energy mix shifts away from nuclear towards gas generation, Yasushi Sakakibara, Tokyo Gas' deputy general manager for LNG contracts, has told Gas to Power Journal.

Tokyo Gas plans to start-up a third gas-fired 400 MW unit at its Yokohama power plant in 2015.

Siemens, the German engineering giant, is hopeful to break ground in Singapore for its H-class gas turbines as it builds on the market penetration of its F-class technology, says Thomas Hagedorn, Vice-President, Sales, GT Power Plant Solutions Asia Pacific.

Anglo-Russian oil and gas producer TNK-BP is close to strike a $6 billion gas supply contract over 18 years with Russian power generator TGK-5, dealing yet another blow to Gazprom.

Coal, in contrast to gas generation, has limited prospects to expand its global marked share amid a decline in coal quality and tightening environmental legislation, according to asset management group Axa Investment Managers.

German's largest utility Eon has confirmed it will shut-down 1,037 MW of gas-fired power generation capacity, mothballing both it the 622 MW Staudinger 4 plant unit and the 415 MW Irsching 3 unit by the end of this year. The plants will operate as winter reserve, once E.on has transferred responsibility to the regulator BNA.

Norwegian oil and gas major Statoil has selected Siemens' PostCap process for phase-3 in the technology qualification program for the carbon capture and storage (CCS) plant at the combined-heat and power plant at the refinery in Mongstad. The final phase of the qualification process will come to an end in April 2013.

Deployment of carbon capture storage (CCS) technology will allow for more coal and gas to be used than without CCS, Sean McCoy, analyst at the International Energy Agency (IEA) told Gas to Power Journal.

"More than two thirds of today's fossil fuel reserves would have to remain un-burnt and in the ground in the absence of CCS," he said referring to the IEA's World Energy Outlook 2012.

The City watchdog, the Financial Services Authority (FSA) is investigating claims by a whistleblower that price assessments of Britain's £300bn wholesale gas market have been "regularly manipulated" by some big power companies.

Germany's federal energy network regulator (BNA) should urgently improve compensation for operators of flexible power plants that have to ramp up or down to maintain grid stability, the German energy industry association BDEW told Gas to Power Journal.

While Iraq's energy sector competes with a host of other spending needs in Iraq, one urgent priority for the government is to catch up and add new power generation capacity to keep pace with rising electricity demand, say analysts from the International Energy Agency (IEA).

UAE-based Dolphin Energy has awarded a $250 million contract to Larsen & Toubro (L&T) to install three new Rolls Royce Trent gas turbine compressors to upgrade the gas processing plant at Ras Laffan by end-2014.

Japanese utilities are gearing up to add about 18 GW of gas-fired capacity over the coming ten years, boosting the country's capacity by 30 percent to counterbalance for lost nuclear capacity and cater for rising electricity demand, analyst forecast.

News in Brief

China’s fuel demand recovers

May 27 – The Chinese government has lifted restrictions on private travel since April which pushed up demand for transport fuels. Gasoline demand has recovered particularly fast and is expected to return to last year’s levels by June 2020. Wood Mackenzie estimates gasoline consumption to reach 3.4 million barrels per day (b/d) in the second quarter, down just a 0.8% year on year. Diesel or gasoil demand is expected to reach 3.4 million b/d in Q2 2020, a 3% decline year-on-year. Overall, China’s oil demand is seen rise a “modest” 13.6 million bpd, or 2.3%, in the second half of 2020.

Wärtsilä to retrofit CHP in Spain

May 26 – The Finish engine maker Wärtsilä has bagged an order to supply and install a 34SG gas-fuelled engine generating set for Rofeica Energia's combined heat and power plant in Barcelona, Spain. The installation of the gas engine will allow Rofeica to switch the CHP from heavy fuel oil to gas-fuelled operation, reducing emissions.

New York body rejects William’s plans for gas pipeline expansion

May 21 – New York’s and New Jersey’s state bodies for environmental conservation have rejected Williams’ plans for the Northeast Supply Enhancement project, designed to transport 400 million cubic feet per day of gas from Pennsylvania to New York. The state bodies had already denied wetland permits in 2019, but Williams pipeline subsidiary Transco filed another application with the U.S. Federal Energy Regulatory Commission (FERC), arguing firm services under the project were agreed with UK’s National Grid for customers in New York City districts of Brooklyn, Queens, Staten Island and Long Island.

UK inflation at 4-year low amid falling energy costs

May 20 – The rate of inflation in the UK has fallen to a four-year low as the pandemic pushed down global oil and fuel prices which translate into lower wholesale power prices. The consumer price index fell to an annual rate of 0.8% in April, down from 1.5% in March, according to the Office for National Statistics.

Deficit grows in German green energy fund

May 19 – German regional grid operator TransnetBW has warned of a growing shortfall in the country’s fund for green energy sources, financed under the so-called renewable energy (EEG) levy. TransnetBW, the TSO in southwest Germany, said “due to the EEG cost allocations defined for 2020, we anticipate there will be a negative year end bank account balance in the high three-digit million euro range for 2020.”

Spanish gas companies ‘resilient’

May 18 – Spain’s regulated gas companies “should prove to be resilient” to external shocks arising from coronavirus containment measures, Standard & Poor’s analysis finds, calculating with an average drop in EBITBA at less than 3% in 2020. A new remuneration framework for 2021-2026, recently enacted by the Spanish government, provides enhanced visibility rated grid operators amid the pandemic.

German electricity prices second highest in EU

May 15 – Taxes and the renewable energy surcharge have pushed up Germany’s household electricity prices to the second highest level in Europe, topped only by prices in Denmark. While Danish households paid 29.2 Euros per 100 kWh on average in the second half of 2019, prices in Germany averaged 28.7 Euros, according to the EU statistics office Eurostat.

Calpine’s Q1 earnings fall

May 14 – Calpine, America’s largest generator of electricity from gas and geothermal, has reported a net income of $128 million for the first quarter of 2020, down from $175 million in the prior year period. Lower commodity margins and unfavourable change in income taxes were partially offset by earnings from hedge positions for the three month ending March 31.

Siemens to supply hybrid plant in the Philippines

May 13 – Berkley Energy has contracted Siemens Energy to build a hybrid power project on the island of Mindoro in the Philippines. The project links 16 MW wind power with battery storage, stabilizing energy supply in a remote location with a weak link to the grid and reducing its dependence on diesel.

U.S. energy emissions fall

May 12 – Energy-related carbon emissions in the United States have fallen more than energy consumption, down 2.8% over the course of last year to 5,130 million metric tons (MMmt). Power sector emissions were down 145 MMmt, due to a switch from coal to gas and renewables. In April 2020, emissions experienced another unprecedented fall in due to Covid-19 lockdowns.

MAN expands Omincare concept

March 11 – MAN Energy Solutions’ service brand has extended its ‘PrimeServ Omnicare’ concept from turbomachinery to the marine and power segments. The one-stop service solution is now also applicable for maintenance of third-party machinery, including engines, turbochargers and related auxiliaries.

MIVOLT launches cooling fluid

May 7 – MIVOLT, part of the British company M&I Materials, has launched two specialist fluids to improve cooling efficiency at data centres. The electricity demand of data centres is forecast to rise to 20% of global supply to accommodate lifestyle changes like 5G internet network, autonomous vehicles and bitcoin mining.

Germany adds 1,300 km to power grid

May 6 – Germany has made progress in expanding its strained power grid. According to the Federal Network Agency (BNetzA), over 1,300 kilometres of new power transmission lines have been built and another 830km approved. A further 3,600km are planned to be built by 2030 to alleviate grid bottlenecks and allow transporting rising volumes of offshore wind southbound.

 

 

 

Oman nationalizes first IPP

May 5 – Manah Power, the first privately-run Independent Power Project (IPP) in Oman, has been transferred to state ownership, following the expiry of a Power Purchase Agreement (PPA) between United Power Company and state-owned OPWP. Manah IPP was developed under Build-Own-Operate-Transfer (BOOT) model, which stipulates an eventual nationalization of the assets – a feature absent in subsequent IPPs.

U.S inventories at record highs

May 4 – Inventories for crude oil and natural gas have reached a new record high in the United States, as fuel demand declines both for transport and the electric power sector. From March 13 – when a national emergency was declared due to the Covid-19 pandemic – to April 24, U.S. commercial crude oil inventories increased by 74 million barrels, or 16%, according to government figures. The acute scarcity of crude storage on April 20 led to a sell-off of future contracts at negative prices.

Wärtsilä to service Argentinean power plant

May 1 – Wärtsilä has signed a 10-year maintenance and service agreement with one of Argentina’s upstream companies. Under the deal, Wärtsilä provides a guaranteed performance for a 57.6 MW onsite power plant in the southern part of Argentina, with excess power sold to the national grid.

Zink-Air batteries for NY

April 30 – Zinc8 Energy Solutions has entered a cooperation with the New York Power Authority (NYPA) to install a zinc-air battery energy storage, backed by $2.55 million in state funding over a three year period. The Zinc8 ESS units can deliver power in the range 20-50 MW, with capacity of 8 hours of storage duration. The project will help New York State achieve its goal of installing 3 GW of energy storage by 2030.