Daily News

The lack of incentive to build new gas-fired power plants may cause problems for balancing supply and demand in European electricity markets, Evariste Nyouki, head of economic research at GDF SUEZ Trading told 'Gas-to-Power Journal' at the sidelines of the EMART Energy conference in Lyon today.

"New gas-fired plants are needed but the market is not prepared to pay for it," Nyouki said, arguing it is only economical for upstream companies to invest in new gas plants at the current price levels. His reasoning is that Gazprom has the means to free up enough CAPEX in order to build new gas-fired power plants in Western Europe, while utilities currently do not have an incentive to do so.

Start-up of a 100-MW gas-fired 'peaker' plant, located near Santee in California , is imminent, after California Energy Commission (CEC) announced it has started a review and certification process of the 100-MW plant.

Dan Smith, Head of Corporate Development at Trayport, has cast doubt over the European Commission's drive to introduce more stringent financial regulation.

"The European Commission supports the creation of liquidity in the wholesale energy markets via the 3rd Energy Package. However, another potential outcome is that the introduction of financial regulation could have a negative impact on liquidity in the wholesale energy markets," said Smith told 'Gas-to-Power Journal' today.

David Cameron, the UK Prime Minister, has highlighted the vital role of natural gas for the British economy today, in a statement timed to coincide with a new gas supply contract between Centrica and Statoil over 5 Bcm/year in the period between 2015 and 2025.

"Today's agreement will help to ensure the continued security and competitiveness of gas supplies to Britain, from a trusted and reliable neighbour," UK Prime Minister David Cameron said.

Honeywell has introduced a new Safety Manager Field Device Unit (FDU), particularly designed to implement integrated safety measures for power plants.

"The module's small size makes it ideal for plants that need to quickly implement integrated safety measures for applications such as burner or boiler management systems," the US-based manufacturer said in a statement.

Siemens has inaugurated a new gas turbine factory in Charlotte, North Carolina, with a view to expanding its worldwide network of gas turbine manufacturing facilities. The German company has invested more than $350 million in a 42,000 square metre plant in Charlotte, creating 700 new jobs.

"Charlotte is the only Siemens plant that produces gas and steam turbines, as well as generators,” a company representative said. The facility also plays a key role in Siemens’ profitable power plant service business.

Bernard Anne, managing director of Bureau Veritas' (BV) Marine Division has signalled out LNG as one of the shipping sectors where the indicators are good and positive. "I do not see any good markets except for gas markets and consequentially LNG tankers. There are simply too many ships around," Anne said at the annual BV Beaujolais Party in London on Thursday evening.

Germany's E.ON and the Russian gas incumbent Gazprom are at loggerheads over the terms of gas supply. Arbitration proceeding on contract terms of oil-indexed long-term gas supply are still ongoing. "We can confirm that we have instituted arbitration proceedings in connection with our supply relationship with Gazprom," E.ON spokesman Sebastian Heindrichs told Gas-to-Power Journal.

Alstom, the French engineering giant, did neither confirm nor deny a statement from the Iraqi energy ministry that it has won a $540m contract to construct a 182-MW gas-fired power plant in Iraq. "We are expecting to sign the contract with the Iraqi energy ministry any time soon", an Astom spokesman told Gas-to-Power Journal.

Minera Mexico, a unit of Grupo Mexico, has awarded a contract to Siemens Energy to supply of a 250 MW combined cycle gas turbine (CCGT) power plant. Siemens Energy is signing responsible for the full turnkey supply of the plant, named 'La Caridad II', which includes plant engineering, procurement and construction.

Siemens Energy told Gas-to-Power Journal that the main equipment to be installed at the plant includes an SGT6-5000F gas turbine, an SST-900 steam turbine, an SGEN6-1000A generator, a heat-recovery steam generator, and the complete electrical and SPPA-T3000 in-strumentation & control equipment.

The World Energy Council (WEC) has published its 2011 assessment of country energy and climate policies, including the annual global "Energy Sustainability Index". WEC urges policymakers to address the "Energy Trilemma" – a triple whammy of Energy Security, Social Equity and Environmental Impact Mitigation.

Doosan Heavy Industries, Korea's leading power plant manufacturer, has secured a 513 billion won ($455 million) order to build a power plant in South Korea.

News in Brief

Growing production puts a lid on oil price

June 18 – Rising crude oil production – driven by OPEC, Russia and the United States – will limit price rises for global crude oil benchmarks Brent and West Texas Intermediate (WTI), which impacts long-term natural gas prices. In the June Short-Term Energy Outlook (STEO), US government analysts expect the Brent crude oil price will average $68 per barrel in the third quarter of 2021, fall to $64/bbl in the fourth quarter and decline further to average $60/bbl in 2022.

CPH2 to install 1 MW electrolyser in Belfast

June 16 – Clean Power Hydrogen (CPH2), together with B9 Energy, has won an order from Northern Ireland Water for a MFE220 1-MW membrane-free electrolyser via its main contractor LaganMEICA. Oxygen, generally regarded as a by-product of hydrogen production is used to more efficiently treat wastewater at NI Water’s Belfast plant. Due to be installed by September this year, the MFE220 electrolyser will produce up to 451 kilograms of hydrogen and up to 3609 kg of medical-grade oxygen per day.

MTU subsidiaries to bear Rolls-Royce brand name

June 15  As of today, Rolls-Royce's Power Systems has implemented a new brand architecture for its five MTU subsidiaries. MTU Friedrichshafen GmbH, for example, will become Rolls-Royce Solutions GmbH. German subsidiaries in Augsburg and Ruhstorf, as well as regional companies in America and Asia will be renamed with geographical references. All others will be rebranded by the end of September 2021.

KBC adopts BakerHughes AI simulation

June 11 – Yokogawa Electric subsidiary KBC will deploy artificial intelligence (AI) technology from the BakerHughesC3.ai (BHC3) alliance to better simulate its oil and gas processes. The AI solution will continuously update physics-based simulations through a flexible modelling, scalable to any industry. KBP anticipates customers’ improved will yield more than $0.65 per barrel.

OneSubsea selects Siemens sensors for deepwater project in Brazil

June 10 – Houston-based OneSubsea has selected Siemens Energy to provide pressure and temperature sensors for the subsea production system for the Bacalhau oil and gas condensate field in Brazil’s Santos basin. The sensors will provide monitoring data for the production system on the seabed at a water depth of 6,726 feet. Installation and commissioning of the equipment is slated for 2022 and 2024.

Wärtsilä to service Malta power plant

June 9 – Wärtsilä has signed a second long-term service agreement renewal for the Delimara Power Plant 3 (D3) in Malta. The accord covers four 50DF dual-fuel engines and four 50SG gas engines. The flexible Delimara plant is vital to ensure stability of power supply for Malta’s island grid.

BV launches digital simulation tool

June 8 – Classification society Bureau Veritas (BV) has launched Opera, its new digital simulation tool for testing and certifying floating power units. The integrated modelling can inspect all components, e.g. those of a floating wind turbine, from mooring systems to blades.

Linde selected to build Russian GPP

June 7 – Linde and Renaissance Heavy Industries have been contracted by Gazprom to carry out the design works, equipment supplies, construction, and commissioning of gas processing plant (GPP) and off-site facilities at the Gas Processing Complex near Ust-Luga. The consortium intends to start construction this June.

Start-up of Tema LNG delayed

June 4 – Ghana sees LNG as a “relatively quick and inexpensive way” to meet growing gas demand for power generation but country’s aspirations to become sub-Saharan Africa's first LNG importer is being delayed to later in June. The commissioning cargo was meant to arrive at Ghana’s new Tema LNG terminal by the end of May, but our data indicates the FSU Torman II is still at Singapore’s Sembawang shipyard.

ACWA sources biofuel to power tourism

June 3 – Saudi developer, investor and operator ACWA Power has teamed up with the Gulf’s largest biofuel producer Neutral Fuels to supply green energy for Saudi Arabia’s most ambitious regenerative tourism project on the Red Sea coast.

CNE sets up Houston offices

June 2 – Carbon Neutral Energy (CNE) is setting up in Houston due to the huge demand for mobile energy storage systems to mitigate the risk of emergencies like the Texas blackout earlier this year. CNE raised $420 million funding in the UK and is now seeking to strengthen its foothold in the US.

AEG equips Swedish hydrogen plant

June 1 – Amsterdam-based AEG Power Solutions has supplied components for a high-pressure electrolysis process at a pilot plant, built by Hydrogen Pro on behalf of the metal research institute Swerim. The electrolysis process selected by Swerim is an alkaline electrolyser with a high level of dynamics driven by Thyrobox DC2, industrial DC power supply.

Li-ion batteries lose their lead

May 31 – Li-ion batteries have dominated the energy storage field, but are expected to lose their leading role in stationary applications. According to IDTechEx findings, Redox flow batteries are gaining traction and likely to overtake the installed Li-ion battery energy capacity before the end of 2030.

Kuwait Petroleum supports Jenbacher S engine oil

May 21 – The Austrian engine maker INNIO and Q8Oils, part of Kuwait Petroleum, have launched the Jenbacher S Oil 40 gas engine oil designed to lubricate engines that run on biogas and landfill gas. The new product is based on INNIO’s high-performing oil for stationary gas engines and provides very long drain intervals, reduces oil consumption and extends oil filter life.

J320 engine powers pasta factory

May 19 – Clarke Energy and INNIO have commissioned a Jenbacher gas engine to power a new Pasta factory in Cameroon. The gas-fuelled J320 engine installed is now delivering a resilient on-site power supply to the manufacturing facility, situated in the town of Douala.

Magma delivers composite riser pipe to HWCG

May 17 – Houston-based Magma Global has delivered the world’s first high-pressure composite riser pipe to HWCG’s gas storage location on the U.S Gulf Coast. HWCG is one of two deepwater oil and gas emergency response consortiums, set up after the Macondo blowout in 2010. It provides a capping stack within 7-14 days and the restart of contingent hydrocarbon flow and capture operations within 18 days of an incident

SynCraft orders J412 engines for biomass plant

May 14 – INNIO Jenbacher has received orders to supply two J412 gas engines, with 500 kW electrical output, for SynCraft biomass power plants in Austria. Each year the two units will process 6,000 metric tons of residual wood into 7,000,000 kWh of renewable power and 10,000,000 kWh of process heat.

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