Daily News

Maturing resource plays in Southeast Asia are attracting a niche group comprising East Asian and Middle Eastern conglomerates, such as JXTG, Mitsubishi, POCO and Kufpec, together with Medco Energi, Saka Energu, KrisEnergy, Sapura Energy and other domestic independents.

Optimal power systems of the future will have “lots of renewable energy distributed all over the grid, and just the right amount of gas-fired power close to the centers of demand,” said De La Rey Venter, Shell's VP of Integrated Gas Ventures. Speaking at the World Gas Conference in Washington, he singled out low capital costs and scalability as "the beauty of gas-fired power."

‎Anticipating bright days ahead for the gas industry, the International Energy Agency (IEA) sees China’s hunger for gas grow by 60% which will keep global demand rising at a rate of 1.6% per year, reaching just over 4,100 billion cubic meters (Bcm) in 2023.

Dismissing investment in strategic natural gas pipelines as “an illusion of security of supply,” Peter Coleman, CEO of Woodside Petroleum, told the World Gas Conference in Washington that “sinking funds and time in laying a pipeline delivers dependence and limits choice.” Woodside has substantial stakes in three Australian LNG export plants.

‎EmberClear has been given the green light to build the 1,050 MW Harrison Power Project in Cadiz. The Ohio Power Sitting Board approved plans, paving the way for a start of construction in October. Commercial start-up of the combined-cycle power plant is slated for June 2021.

MAN Diesel & Turbo is embarking on a strategic and technological transformation, reflected in its rebranding to ‘MAN Energy Solutions’. In a strategic shift, the Augsburg-based company is now focusing on hybrid energy solution - gas genets plus renewable energies - that are meant to become its main source of revenues by 2030.

‎Dubai’s DEWA has awarded an order to Siemens to supply three SGT5-4000F gas turbines for Unit H Phase-4 of the Al-Aweer power plant complex. With a combined capacity of 815 MW, the three turbines will boost the total output of the Al-Aweer complex to more than 2.8 GW. Commissioning of the turbine trains is scheduled for spring 2020.

‎Cash-strapped GE has decided to sell its stake in the oil services company Baker Huges and spin off its healthcare section in a bid to slim down and cut costs. Focussing on aviation, power generation and renewable energy, GE said it aims to create a “simpler and stronger company.” The decision comes after GE had lost half of its market value in the past year, as the large gas turbine business has gone into disarray.

‎By 2025, there will be 29 GWh of second-life electric vehicle (EV) batteries available, far exceeding the size of today’s stationary storage market with 10 GWh available for storage application. For Hyundai Motor Group and Wärtsilä this presents “a blue ocean in the new energy business” they aim to capitalize on.

U.S. gas companies have been persistently waiting for new Appalachia takeaway capacity – notably the Rover Phase-2 pipeline – to come online this year so the region can provide the bulk of 2018’s dry production growth. Analysts at the consultancy Energy Aspects anticipate output gains in the Lower 48 will grow by 7.3 bcf/d year-on-year, of which 4.0 bcf/d is scheduled to come from Appalachia region.

Nearly two-thirds of oil and gas sector leaders, surveyed by the Norwegian classification society DNV GL, plant to boost spending on gas projects in 2018, with gas expected to overtake oil as the world’s primary energy source in the mid-2030s. Thereafter, the energy transition will enter its final phase-out of fossil fuels, with hydrogen and renewables set to gain momentum.

Mitsubishi Hitachi Power Systems (MHPS) announced a JAC-series gas turbine, using enhanced air cooling, has surpassed 8,000 cumulative hours of combined-cycle operation at the Takasago power plant in Japan. Exceeding this mark is taken as an industry benchmark for demonstrating a turbine's reliability.

Agreements reached by EU Institutions over the past fortnight on energy efficiency, energy governance and renewables “fall well short of a comprehensive approach,” according to COGEN Europe. The headline target of 32.5% energy efficiency by 2030 will be missed, the lobby group warns, in the absence of an “actionable framework”.

Following the release of three kidnapped Turkish workers on Sunday, the CEO of the General Electricity Company of Libya (GECOL) Ali Sassi is in talks with Turkey’s largest construction company ENKA about when to resume construction of the 660 MW Ubari gas power project. Sassi also reached out to South Korean EPC firms to return to work on suspended power plants in Tripoli.

The Australian Energy Market Operator (AEMO) no longer warns of an imminent gas shortage in southern and eastern Australia after government pressure has made LNG exporters commit to divert some cargoes to the local market. "No supply gaps are forecast before 2030,” AEMO said when releasing its annual gas outlook – a stark contrast to the body’s earlier concerns about shortages starting from mid-2018.

News in Brief

Sparrow gets permit to work in Saudi Arabia

Aug 13 – Sparrows Group, a specialist equipment maker and integrated engineering services providers, has been granted commercial registration to operate in the Kingdom of Saudi Arabia. The commercial registration allows Sparrows Saudi Arabia LLC, a newly established entity in Dammam, to deliver services related to the extraction of oil and natural gas

Puerto Rico electricity sales almost back to normal

Aug 9 – Electricity sales on the island of Puerto Rico, part of U.S. territory, has returned to pre-hurricane levels as of April and May 2018 after the longest blackout in American history. However, residential electricity sales appear to continue to lag historical levels, reflecting some continued outages, EIA data shows. As of April 2018, around 95% of Puerto Rico’s electricity customers had restored power, while about 62,000 customers remained without power.

India’s solar PV market slumps

Aug 8 – India’s market for solar photovoltaic is forecast to experience negative growth this year after the Ministry of Finance imposed a safeguard duty on solar cells and modules for a period of two years, starting on 30th July 2018. The move exacerbates the effect of a slowdown in the China market, Wood Mackenzie commented.

Shell expects electricity to become “biggest game in town”

Aug 3 – By 2050, power consumption is expected to outstrip demand for Shell’s core business of oil and gas. The company’s most recent Future Energy scenarios foresees oil and gas demand to peak in the next 50 years, while reliance on electricity is expected grow from around 20% of energy consumption to closer to 50% by midcentury.

ADB funds power lines in Bangladesh

Aug 2 – The Asian Development Bank (ADB) has approved an assistance package of more than $357 million for a project to develop two power lines in Bangladesh. The grid extension supports Bangladesh’s national target of reaching electricity for all citizens by 2021.

Tadmax to develop CCGT in Selangor

Aug 1 – Malaysia-based Tadmax Resources has signed an accord with Worldwide Holdings to develop a combined-cycle gas power plant with up to 1,200 MW in Pulau Indah, Selagor. The deal comes as Worldwide seeks to acquire a 30% stake in Tadmax. Technical partner for the CCGT project is Korean Electric Power Corp.

Renewables hit new record

July 31 – Germany's electricity supply from renewables reached a record high in the first half of 2018, catering for an unprecedented 41.5 % of the country's electricity supply. A total of 113 terawatt hours (TWh) of electricity was generated by all renewable technologies, mainly consisting of biomass, wind and solar energy.

Dominion aims to add 3GW renewables by 2020

July 30 – Striving to add 3 GW of solar and wind capacity in the next two years, Dominion Energy has has filed its first set of the plans under Grid Transformation & Security Act (GTSA) to the Virginia State Corporation Commission (SCC) for the approval. Dominion VP Ed Baine said the GTSA legislation, effective from 1 July, would provide a roadmap for Virginia’s energy future.

GE to develop critical infrastructure in Lagos

July 27 – GE and the Lagos State Government have agreed to pool their resources for the development of critical infrastructure in the state in the areas of Power, Healthcare and Skills Development. This was announced during the signing of a Support and Cooperation Agreement by both parties during the France-Nigeria Business Forum held in Lagos.

Orbital Insight teams up with Energy Aspects

July 26 –Orbital Insight and Energy Aspects have teamed up, striving to transform how energy data is used for investing. The two research firms will integrate geospatial analytics, based on artificial intelligence and machine learning, with energy analysis with a view to giving customers unprecedented global oil storage level data.

Cost for US wind generation down 33%

July 25 – Capacity-weighted cost of wind installations in the United States have declined by one-third thanks to improving technology and manufacturing capability and a concentration of new-builds in the best-suited regions. Installation costs fell from $2,361 per kilowatt (kW) in 2010 to currently less than $1,587/kW, based on analysis by the U.S. Department of Energy’s office of Energy Efficiency and Renewable Energy(DOE/EERE).

Iran’s NISOC prepares tender

July 24 – National Iranian South Oil Company (NISOC) has announced plans to hold an international tender to purchase parts for G.E.C gas turbine. NISOC seeks to buy parts of the turbine type Centaur.

Chart reports full-year sales at $1.2bn

July 23 – U.S. equipment manufacturer Chart Industries has reported a 34% rise second-quarter sales, with the order volumes amounting to $360.3 million. “Strength in Asian orders was driven by packaged gas applications as well as respiratory and cryobiological product lines,” Charts said when posting the results.

ABB spends $30m on transformer factory in Sweden

July 20 – ABB is investing more than $30 million in a new manufacturing unit, under construction in Ludvika, Sweden. The new unit will increase production, expanding the capacity and the range of its high-voltage dry bushings offering.

Wärtsilä’s order intake up 14%

July 19 – The Finish equipment manufacturer Wärtsilä has seen its order increase 15% to €1,553 million in the second quarter, while net sales fell 4% to €1,246 million. Looking at the full year 2018, Wärtsilä said its Services and Solutions business will “improve somewhat from the previous year.” Good demand prospects are on the cards for Energy Solutions, as the global shift towards renewables and rising electricity demand in the emerging markets support the need for distributed power capacity.

NRG abandons Dunkirk coal-to-gas conversion project

July 18 – Shying away from having to pay $114 million in re-interconnection costs, NRG Energy has shelved plans to repower and convert its mothballed Dunkirk power plant in western New York from coal to natural gas. The company said in a statement that it has withdrawn its request to have New York ISO interconnect the Chautauqua County generating facility with the power grid.

Akwa Ibom, BlackRhino sign $1.6bn power deal

July 17 – BlackRhino, operator of the Qua Iboe Power Plant (QIPP), has agreed with the Akwa Ibom State Government to build a power plant and electricity transmission lines in the state. QIPP’s management  committed an investment of $1.1 billion for the facility, with an additional $500 million for gas.