Daily News

Alan Finkel, Australia’s top scientist and author of a prominent energy market review, has urged the Government to set a clean energy target that does not be put any fuel-type at a disadvantage. His modelling work shows a scenario under which power prices could fall, if Australia’s stringent emission targets are lowered.

NNPC, Nigeria National Petroleum Corporation, has stepped up domestic gas supply to an average 7.32 million standard cubic feet per day (mmscf/d). This increased volume guarantees an average supply of 689 mmscf/d to national gas-fired power plants, allowing for a total power output 3,056 MW. Daily gas supply is up by nearly 100 mmscfd month-on-month from 582 mmcf/d, Ndu Ughamadu, NNPC Group spokesman said when presenting the group’s latest monthly report on finances and operations.

Australia’s Macquarie Group has agreed to acquire Cargill's North America power and gas business, for an undisclosed amount, just months after the bank bought the petroleum business of Cargill. The global commodities trader has streamlined its business over the past year, reacting to a nearly 3-years slump in global oil prices.

Three new gas pipelines between the US and Mexico are due to come in service in June, with a combined capacity of about 3.3 Bcf/d: their routes are Encino-to-Laguna, Guaymas-to-El Oro and Ojinaga-to-El Encin. Timely operational start of these lines, and how they work in conjunction with existing gas infrastructure, is critical for boosting supply of cheap U.S. shale gas to Mexico’s electric power utilities and industry.

Ansaldo Energy Group has been awarded new service agreements by IREN Energia for four combined-cycle gas turbine (CCGT) power plants in northern Italy. According to Ansaldo, the contract win, worth over €100 million shows there is further growth for its ability to service equipment produced by other OEMs. The deal comes shortly after another service contract win for units at the Taweelah Power and Water Complex in the United Arab Emirates (UAE).

Vattenfall has handed a 5-year contract to Capgemini that will see the latter implement a program to transform and manage Vattenfall’s finance and procurement services in the Nordics, Germany, the Netherlands and the UK.

Shares in E.on and RWE have risen up to 5% after news broke on Wednesday that Germany’s top court declared the country’s nuclear fuel tax as “unconstitutional”. This ruling opens up doors for litigation, and the country’s main operators of nuclear power stations – E.on, RWE and EnBW - are expected to claim back over €6 billion that they were made to pay between 2011 and 2016.

Los Angeles Department of Water and Power (LADWP), California’s largest public-owned utility, is reconsidering plans to spend over $2 billion on natural gas and power infrastructure. The company’s board confirmed it "has put on hold all planned local repowering projects until a system-wide, in-depth, and independent study/analysis is conducted." Falling costs for renewables, and rising green energy supply, has inspired the California Senate to propose a 100% renewable energy target by 2045.

China’s Guangdong Power Engineering Group, general contractor for a 470-MW project in Jordan, has asked Siemens to supply key components. Jordan is one of the driest countries in the world, and the power station will be built in in the desert at Attarat Um Ghudran. Consequentially, the operator asked Siemens to use air-cooled condensers to help save sparse drinking water resources. Start-up of the Attarat plant is envisaged for mid-2020.

The American arm of Fuji Electrics has supplied and installed a 125-MW steam turbine generator at Green Electron’s 300-MW combined-cycle gas turbine power plant in St. Clair Township of Ontario, Canada. The CCGT project is one of 30 power plants in the Canadian province that run on natural gas, and is  included in the province’s clean energy, “off coal plan.”

Ambitious plans, set out by South Korea’s newly instated Government, herald a U-turn away from coal and nuclear towards cleaner-burning natural gas and renewables. Responding to public concern over air pollution the administration of President Moon Jae-in, who took office in early May, is considering a construction stop for several coal and nuclear projects – a move poised to cause electricity prices spikes and medium-term capacity shortages.

Wednesday, 07 June 2017 08:02 / Markets

MAN buys 40% shareholding in Aspin Kemp

Germany’s MAN Diesel & Turbo has contractually agreed to acquire a 40% participation in Aspin Kemp & Associates, a Canadian specialist manufacturer. Based in Montague, Prince Edward Island, Aspin Kemp is a technologically leader the field of energy storage and hybrid power solutions. When announcing its share purchase, MAN D&T pointed out “Aspin Kemp has developed game changing technology for power, propulsion and drilling applications in the offshore oil and gas sector.”

In the absence of cost-effective, large-scale electricity storage, the North American Electric Reliability Corp (NERC) finds stark regional differences concerning grid stability in its 2017 peak power demand projections. Reserve margins, the estimated buffer of unused generating capacity, range from less than 15% in the grid area of ISO-New England to almost 29% in New York.

The Australian state of Queensland is helping Stanwell Corp to bring a mothballed power plant back into the market in an effort to lower energy prices. The state’s pre-Budget, disclosed yesterday, acts on the Government’s commitment to help re-dispatch a total AS$386 million worth of flexible gas generating capacity near Townsville – and proposes a AS$770 million subsidy to help drive down wholesale electricity prices.

Nymex-listed Ingersoll-Rand has started to offer three flexible service programs through its own expert technicians who provide and oversee onsite service, repair and maintenance of all compressed air assets. Named CARE, this tailored service programs is available for Ingersoll-Rand customers in North America, Europe, Middle East, Asia and India.

News in Brief

ABB delivers power solution for Shanghai Stock Exchange

July 21 – Swiss-based ABB has signed a contract to provide more than 1,500 units of MNS low-voltage switchgear for the Shanghai Stock Exchange (SSE) before the end of the year. Dubbed the Jinqiao Technology Center project the MNS switchgear deployment is meant to support the safe, efficient and reliable operation of the stock exchanges’ data center. SSE is ranked #4 in the Shanghai market, and is ranked #26 in China.

TNB extends acquisition period for 51% stake in SPG

July 20 – Malaysia’s state utility Tenaga Nasional Bhd (TNB) has granted SIPP Energy an further 30 days to fulfil conditions set out in the May 3 acquisition agreement when TNB bought a 51% stake in SIPP Energy’s Johor-based unit SPG for RM51. Set up as a special purpose vehicle in august 2016, SPG was given regulatory approval last September to build a 2x720MW combined-cycle gas power plant in Pasir Gudang, Johor. The CCGT is scheduled to start full commercial operation at the start of July 2020.

TVA’s new plant produces 1 GW in first three months

July 19 – Tennessee Valley Authority’s (TVA) new combined cycle gas power plant in Muhlenberg County has produced over 1,025 MW of electricity in its first three months of operation. The cost of the project is estimated at about $850 million, but TVA senior vice president Bob Deacy underlined the new CCGT will give the operator the option of fuel switching to optimise its coal- and gas-burn which will ultimately save money. 

Toshiba opens hydrogen application centre in Tokyo

July 18 – Toshiba has opened a new hydrogen application centre at its Fuchu complex in western Tokyo. Research at the centre focuses the company’s new H2Onesolution for hydrogen supply system business for fuel-cell vehicles, or fuel-cell forklifts within buildings.  According to project manager Hiroyuki Ota, “This center showcases totally CO2-free operation, from hydrogen production through to application.”

Opening of Rhode Island plant delayed unit 2020

July 17 – Chicago-based Invenergy has delayed the start-up of its proposed natural gas-fired power plant in Rhode Island until “at least 2020,” citing “delays in permitting. The Chicago-based company had previously agreed to start selling power to the regional grid in 2019.

China’s energy efficiency sector tops $13bn in revenue

June 14 – The International Energy Agency (IEA) is supporting association member states in implementing energy efficiency measures. In China, government policy created a whole new sector for low-energy solutions, retrofits and services. This niche sector got started less than 20 years ago but already employs over 600,000 people and has annual revenues of over $13 billion.

Centrica starts building 50 MW unit

July 13 – UK energy supplier Centrica has announced that construction works are getting underway this week on its new 50 MW back-up power unit at Peterborough power station. The new gas-fired ‘peaking’ plant will be driven by five Wartsila-built reciprocating gas engines. The plant operator will dispatch the fast-ramp unit mostly on weekdays to cater periods of peak power demand or to provide back-up electricity when requested by the National Grid.

Siemens sues Technopromexport

July 12 – Siemens has filed a lawsuit against the Russian state firm Technopromexport on Tuesday after two gas turbines it sold for use in Russia have been diverted to Crimea, a region subject to EU sanctions. Siemens said its Russian customer had acted in bad faith, after Reuters disclosed Technopromexport had moved the turbines to Crimea where ZAO Interautomatika, a firm part-owned by Siemens, had been hired to install them.

GE Power on the road in the Middle East

July 11 – Holding a series of road-shows in Dubai UAE, Muscat, Oman and Islamabad, Pakistan in the coming weeks, GE Power is demonstrate its digital industrial solutions and HA technology. The events will also over GE’s 9E and 13E2 gas turbines, as well as mobile solutions such as the TM2500 aeroderivative gas turbine genset.

Pakistan’s PM inaugurates 760-MW unit of Haveli CCGT

July 10 – The Prime Minister of Pakistan, Nawaz Sharif has inaugurated the first unit of the Haveli Bahadur Shah gas power plant in Jhang province on late Friday. The 670-MW unit is running on regasified LNG. Once all units are fully operational, the combined-cycle gas power station will have a total generating capacity of 1,230 MW.

Siemens partners with China on digitalization

July 7 – Siemens has entered into agreements with the Chinese government and Chinese enterprises to continue joint activities for exploring the potential of digitalization and for supporting measures to upgrade and transform China’s industrial sector. The documents were signed today in Berlin this week in the presence of German Chancellor Angela Merkel and Chinese President Xi Jinping.

Gas-burn continues to rise

July 6 - Consumption of natural gas has risen in 9 of the past 10 years, according to EIA figures. As recently as 2006, the United States consumed more coal than natural gas (in energy-equivalent terms), but as gas use has increased—particularly in the electric power sector, where gas-burn in 2016 was about twice that of coal.

 

Tepco to bid on Oz power plant tender

July 5 – South Australia energy plan, as set out in mid-March, stipulates running a tender to build a gas-fired power plant with adjacent battery energy storage. The federal state government plans to invest $360 million in new generating capacity and it now emerges that policymakers look favourably on the power plant site and project proposal of Tepko.

Orascom carries out EPC for $100m power project in Egypt

June 4 – Orascom Construction has secured a $100 million contract to build a power plant with a projected capacity of 650 MW in Walideya, Egypt. The scope of Orascom’s contract includes the full civil works package for the project. The contractor stated that the project’s proximity to an existing power station in Assuit is expected to “facilitate efficient mobilisation on the site.”

Ingersoll-Rand buys MB Air Systems

July 3 – Ingersoll-Rand announced today it has completed the acquisition of MB Air Systems Ltd. The transaction closed on June 30, 2017.

Mouchel rebrands to WSP

July 3 – Mouchel, an engineering services consultancy, has changed its name to WSP across all offices in the UK following the integration of the two businesses. Since January all employees have been working under a new structure across Britain, headed by UK CEO Mark Naysmith.

Fisterra Energy ready for $600m power project in Guadalajara

June 30 – Fisterra Energy, majority-owned by Blackstone, is forging ahead with its Tierra Mojada combined-cycle gas turbine (CCGT) power project in Guadalajara, Mexico, after having reached financial close. The greenfield project was financed with $600 million of construction facilities and letters of credit by six banks. Construction on the 875-MW greenfield project is due to be finalized by the end of 2019.
Once operational, the gas power plant will powered by a GE H-class turbine, and most of its electricity output will be sold under 20-year Power Purchase Agreement (PPA) to Comisión Federal de Electricidad (CEF), Mexico’s national utility.