Daily News

Nigeria’s Indorama Eleme Petrochemicals Ltd (IEPL) is benefitting from an upgrade of the first two out of six GE 6B gas turbines at its onsite power plant in Rivers State. The upgrade increased the electricity output of Indorama's plant by 15% per gas turbine.

Global energy utilities are facing a growing risk of cyberattacks with potentially severe financial damage. A survey by Siemens and the Ponemon Institute finds that 54% of utility respondents fear an attack on critical infrastructure in the next 12 months. To mitigate this risk, utilities need to improve the interface between Operational Technology (OT) and IT systems.

Though Europe is currently well stocked with gas, Wintershall Dea CEO Mario Mehren has warned prices could spike in 2020 if Russia's Gazprom and Ukraine's Naftogaz fail to reach a transit agreement. The current transit contract will expire at the end of this year.

Japan’s energy giant JERA has agreed to pay $300 million to buy a 22% stake in Summit Power International with the aim of getting involved in major energy infrastructure projects in Bangladesh.The deal follows an agreement between Summit Corp and JERA to jointly develop a $500 million project in Cox’s Bazar, which will include various terminals for cargo and LNG.

Fast-falling technology costs and supportive renewable policies spur a rapid regional load growth of hydropower, wind and solar power sources. Collectively, renewables are forecast to contribute 49% of global electricity generation by 2050, up from 28% last year.

First oil from Johan Sverdrup – Norway’s sixth-largest discovery, with 2.7 billion barrels reserves – is a red-letter day for the operator Equinor and partners Lundin Norway, Petoro, Aker BP and Total. The field started two months ahead of schedule and 40 billion Norwegian Krone ($4.38 bn) below budget.

Atlantic basin LNG producers, notably at the US Gulf Coast, get a better netback value at the Spanish Virtual Balancing Point (PVB) than at other European hubs. However, offtake obligations for Algerian pipeline gas will limit how much extra LNG the Iberian market can absorb in 2020.

Enagas, the Spanish gas system operator, has been busy to match an “extraordinary demand” from both the power sector and industry, leading to a 16.9% surge in gas offtake to 294 TWh. Much of the demand increase was prompted by a fuel switch in the electric power sector.

General Electric has installed an evaluation of its HA turbine at Florida Power & Light Company’s (FPL) Dania Beach Clean Energy Center near Fort Lauderdale. The newly launched 7HA.03 has the lowest cost conversion of gas to electricity for 60-hertz customers.

Dubai-based Emirates Global Aluminium (EGA) has agreed to sell electricity from its onsite power units in Jebel Ali to Dubai Natural Gas Company (DUGAS) for use in industrial operations. The deal allows EGA to fully utilize its 2.8 GW Jebel Ali combined-cycle gas power plant.

Power system flexibility is a prerequisite of the clean energy transformation. Fossil power plants were for long deemed vital to ensure flexible supply and system inertia, but “if modern wind and solar power plants are technically able to provide frequency regulation, they should be allowed access to ancillary services, as was done in Spain,” said Enrique Gutierrez, energy analyst at the International Energy Agency (IEA).

High-tech firm Leonardo will provide cyber security solution for Ansaldo Energia’s ‘Lighthouse Plant’ for the production of gas and steam turbines. As the first of Italy’s four intelligent factories, the project will benefit from state funding under the Industry 4.0 plan.

More money than ever is going to energy venture capital deals, but spread across fewer start-ups. Digital sensors, batteries, electric vehicles and smart algorithms are among the main recipients of the more than $4 billion of deals in 2019, the International Energy Agency (IEA) finds.

Nigeria’s BelemaOil Producing Ltd has contracted MAN Energy Solution to supply three MGT gas turbine heat and power systems for installation at BPL’s upstream operation, some 30 miles southwest of Port Harcourt.

PJSC Kazanorgsintez, one of Russia's largest chemical companies, has awarded Siemens a contract worth 290 million Euros to build 250 MW combined-cycle power plant at its manufacturing site in Tatarstan. Start of commercial operation is planned for 2023.

News in Brief

Global gas glut may clear in 2021

Nov 11 – Economics of exporting American liquefied natural gas to Europe no longer add up. With Henry Hub spot prices around $2.7/MMBtu, moving LNG cargoes from the U.S. Gulf Coast to Europe is “not workable,” BP analysts said, indicating that production shut-ins could help clear the massive supply overhang towards the end of 2021.

Gazprom reassures Germany of Ukraine gas transits

Nov 8 – Alexey Miller, chairman of the Gazprom Management Committee, has been trying to reassure the German government commissioner Georg Graf Waldersee that Russia was ready to signing a new transit contract with Naftogaz if both companies mutually waive claims. Before gas flows can proceed, however, Ukraine will have to create an independent gas transmission operator by January 1, 2020.

GE makes gains in wind power

Nov 7 – GE Power is gradually turning away from its loss-making fossil power segment to focus on the fast-growing renewable business. This week, GE struck a deal for its new Haliade-X turbines to be used at Dogger Bank Wind Farms. The three 1.2 GW Dogger Bank projects, situated offshore the UK’s Yorkshire coast, are expected to trigger approximately £9 billion of capital investment between 2020 and 2026.

PetroVietnam eyes LNG-to-Power project

Nov 6 – PetroVietnam has signed an agreement with B.Grimm Power Public Company (BGRIM) to jointly study the development of an integrated LNG import and power generation project. The aim is to build a 3,000 MW gas-fuelled power plant and an adjacent LNG import terminal. The location of the project has not been disclosed.

ABB launches ‘Smart City’

Nov 5 – Electrification specialists of the Swiss manufacturer ABB have designed an interactive ‘Smart City’ that contains smart buildings, e-mobility, energy management and data centers. The use of smart technologies and digitalization are encouraged by the United Nations as a way to help decarbonize cities around the world.

Gazprom, BASF cooperate on sulfur separation

Nov 4 – The Russian major Gazprom and the German chemical company BASF have agreed to devise a comprehensive solution for separation of sulfur from natural gas. The aim is to  enhance eco-efficiency of the Astrakhan gas processing plant and improve operational efficiency of BASF’s amine gas treatment units at the Orenburg gas-fired power plant.

Germany’s emission fall ‘markedly’

Nov 1 – Germany is headed for second consecutive year of substantial reductions in carbon emissions, amid a sharp drop in coal-burn in the power sector and an overall decline in energy use in 2019. If this trend continues, the country could get much closer to its 2020 climate target than widely anticipated.

Exmar to refinance Tango FLNG

Oct 31 – Exmar, the Belgian shipping company, is trying to refinance the Tango FLNG vessel, moored offshore Argentina on behalf of YPF. The aim is to generate around $60 million in additional capital, Exmar said, suggesting a deal will likely be struck in the first months of 2020.

Petronet doubles net profit

Oct 30 – Indian LNG importer Petronet has nearly doubled its net profits in the third quarter although revenues fell by 13%. Net profits came in at 1,089 crore rupees ($153.6m), an increase of 90% on the same period in 2018 as the company benefited from India’s lower corporate tax rates. Third-quarter revenues, in contrast, fell to 9,449 crore rupees ($1.33 billion).

Wildfires spread around LA

Oct 29 – Thousands of Los Angeles residents have been evacuated as wildfires spread fast around the metropolis and power outages brought life close to a standstill. The risk of fires caused by overland transmission lines prompted Pacific Gas & Electric (PG&E) to prolong precautionary blackouts that could last up to three days.

Dominion embraces solar & storage

Oct 28 – Dominion Energy South Carolina has signed contracts for more than 1,000 MW of solar capacity. About half of that capacity has entered service. To complement intermittent solar energy supply, Dominion earlier announced several energy storage projects.

Wärtsilä downgrades outlook for its energy business

Oct 25 – Wärtsilä has downgraded the outlook of its Energy Business from “soft” to “weak” amid low equipment demand, although the its services activity “remains sound.” The current order book for 2019 deliveries is 1,708 million Euros, comprised mainly of equipment deliveries, Wärtsilä stated today when posting mixed Q3 results. Looking ahead, the company said its operating result for full-year 2019 will be approximately 100 million Euros lower than in the 2018 result of 577 million Euros.

Siemens names new CIO

Oct 24 – Hanna Hennig will be appointed as new Chief Information Officer (CIO) at Siemens starting from January 2020. The change at Siemens’ IT organization supports the execution of the company’s Vision 2020+.

GE to service Austrian CHP

Oct 23 – Sappi Austria, provider of sustainable woodfibre products, has handed GE Power a multi-year service agreement to for its 42 MW onsite power plant.  GE will carry out a cross-fleet turbine and combustor upgrade to help Sappi reduce costs through a maintenance interval extension and better plant performance.

Brookfield invest $2bn in Cove Point LNG

Oct 22 – Brookfield Asset Management, an investor in energy infrastructure and power storage, has agreed to take a 25% stake in Cove Point LNG for just over $2 billion in cash. The alternative investor also owns assets in hydro (7.9 GW), wind (4.9 GW), solar (1.7 GW), distributed generation (400 MW) and energy storage (2.7 GW).

Ansaldo appoints new CEO

Oct 21 – Ansaldo Energia’s board of directors has appointed Giuseppe Marino as new CEO. Together with the chairman, Giuseppe Zampini, he will decide on the company’s strategy particularly relating to the new Chinese joint ventures.

Slow start of STT pipeline

Oct 18 – U.S. gas exports to Mexico have not picked up substantially despite the start of the Sur de Texas-Tuxpan (STT) pipeline. Exports are still below 6.0 billion cubic feet per day (bcf/d), although there no current postings regarding maintenance on the Sistrangas pipeline that feeds from NET Mexico.