Daily News

Gazprom is considering laying down a third 27.5 Bcm/year pipeline leg of Nord Stream as it aims to increase gas supplies to Germany, Netherlands and the UK. "Investment decision will be made in a short time," the Russian energy minister Alexander Novak said at a press conference at the Gastech conference in London today.

China, the fastest growing gas market globally, is forecast to keep growing at annual rates of around 13 percent, Anne-Sophie Corbeau, senior analyst at the International Energy Agency (IEA) said today, but she cautioned that the two-tier pricing system, with high prices paid for LNG imports and regulated low domestic gas prices, will keep hampering the growth of gas generation.

Siemens has been awarded contracts for the combined cycle conversion of two gas-fired simple cycle power plants in Argentina by Unión Temporal de Empresas (UTE), a joint venture between Isolux Ingeniería and Inversora Andina Ibérica. The upgraded plants are scheduled to achieve commercial operation in the fall of 2014.

BG Group chief executive Frank Chapman has today said US LNG exports would add flexibility to global gas market, but he cautioned that exported volumes will not big enough to change the regionalized pricing structure of global LNG markets.

UK energy and climate change secretary Edward Davey has today urged the gas industry to step up investment, singling out gas generation with carbon capture storage (CCS) as "vital" to provide backup electricity supply as generation margins are seen dropping to close to zero by 2015/16.

Gas generation is poised to play a bigger role in denting Brazil's need for peakload power supply, providing bottlenecks in the gas pipeline network get resolved in order to allow the country's power companies make full use of domestic gas reserves. Gas generation in 2011 made up 59.1 percent, or 13,220 megawatt, of Brazils 22,368 MW installed thermal capacity, according to GlobalData.

An increasing share of variable renewable energy sources in the grid requires a market push for the development and demonstration of flexible conventional power generation, says Christer Björkqvist, Managing Director of the European Turbine Network (ETN).

Britain's energy regulator Ofgem today said the projected tightening of the spare power generation margin over the next four years would step up the urgency for the upcoming energy reform (EMR) package to encourage investment.

General Electric expects a surge in demand for gas turbines in Saudi Arabia, as the government supports plans to double power generation capacity to 60 GW by 2023 as it aims to meet demand growth of about 8 percent a year.

Investment in combined heat and power (CHP) generators is on the rise in the United States, with proposed new cogeneration capacity for 2013-2016 amounting to more than 3,700 MW, latest statistics from the U.S. Energy Information Administration (EIA) show.

Siemens is profiting from South Korea's growing demand for gas-fired power plants with high power density, Thomas Hagedorn, Sales Vice-President, who is heading the front office of Siemens Energy Solutions in Singapore, told Gas to Power Journal.

The UK Government has proposed capacity payments as a way to bridge the gap for gas fired generators, but EMR market interventions as proposed have the effect for many investors of replacing market risk with political risk, says Dr. Jim Fitzgerald, Associate Partner at The Advisory House.

"While CFD FiTs could mitigate political risk for low carbon generators, many gas-fired investors consider that without CFD FiTs, they will be less able to mitigate political risk as they may historically have done for market risks," he told Gas to Power Journal.

News in Brief

BelGAS launches new pressure regulator

May 29 – BelGAS has introduced its new P1098 High-Capacity Pressure Reducing Regulator, a large-volume regulator for natural gas, propane and other fuels. The pilot-operated device has a large-area actuator diaphragm, allowing for fast and accurate response to modulating gas flow conditions. It is adaptable for low to extra-high pressure—up to 400 psi main valve inlet.

GE to sell lightning business

May 28 – GE has signed a definitive agreement to sell its lighting business to Savant Systems, a provider of smart homes. CEO H. Lawrence Culp called the divestment “an important step in the transformation of GE into a more focused industrial company.” The transaction is expected to close in mid-2020.

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.