Markets

Electricity generated from gas still has an important role to play over the coming decades as the U.K. transitions to a low carbon economy, Energy and Climate Secretary, Edward Davey, said. "We can't take our foot off the gas for some time yet," he said with reference to the closure of a fifth of the UK's ageing fleet of power stations this decade.

French investment bank BNP Paribas sees "little hope" that the U.S. gas industry will sell more gas to electric utilities during the upcoming peak summer month based on increased cooling requirements.

Demand for natural gas in the EU will reach pre-crisis levels only by 2018, the French investment bank Société Générale said in a recent report.

Alstom, the French manufacturer of power plant turbines, forecasts the market for power equipement in Russia to expand on the back of new-built capacity. "For the power generation market, it is a 12 billion to 13 billion euro market," Denis Cochet, head of sales and marketing at Alstom, said in an analyst presentation.

A surge in shale gas production in the U.S. is underpinning a boost of the market share of gas-fired power generation. Shale natural gas production in key shale plays in the U.S. grew from 1.6 trillion cubic feet (Tcf) per year to 7.2 Tcf/year between 2007 and 2011, Lippman Consulting said in a recent report.

Demand for daily electricity consumption in the Indian state of Andrah Pradesh is at an all-time high, surpassing the record mark of 13,000 MW and reached a daily record of 13,376 MW on Tuesday, figures published AP TRANSCO, the electricity transmission system operator of the Government of Andhra Pradesh, show.

Increasing price competitiveness of natural gas relative to coal for power generation has led to a plunge in the share of coal in the U.S. energy mix below 40 % in November and December, the Energy Agency (IEA) said in a market update.

hirohisa-yamada-iea80x109

The International Energy Agency (IEA) estimates under its BLUE Map scenario that around 20% of gas-fired power plants in China will include carbon capture storage (CCS) technology by 2050, Hirohisa Yamada, IEA energy analyst, told Gas-to-Power Journal today.

IEA's BLUE Map Scenario is based on the assumption that one third of overall global carbon emission reductions will need to come from the power generation to reach the global climate goals. In contrast, in IEA's Baseline Scenario, the use fossil energy will surge 82% which will lead to a rise of global temperatures by 6 degrees Celsius.

RWE, Germany's second-largest utility, has posted a 9% drop in its 2011 electricity generation volume to 205.7 billion kilowatt hours (kW). The decrease is attributable to outages of several gas-fired power plants in the Netherlands and in the U.K. as well as to the shut-down of the Biblis nuclear power station, RWE said today when presenting its 2011 annual results.

The volume of natural gas used for power generation in the U.S. surged by 27% this February compared with the same month last year, according to estimates of BENTEK Energy LLC, an energy market analytics company.

India is ready to import 5 GW of electricity from Iran as the two countries reached an agreement to export electricity instead of natural gas. Electricity exports will be "more cost-efficient" for Iran compared with exporting natural gas, Iran's energy minister Majid Namjou said on Sunday.

ETN Christer_Bjorkqvist

Christer Björkqvist

The challenges resulting from Spain's high volumes of intermittent power supply from renewable energy sources will not be solved by the Government's cut in renewable subsidies, Christer Bjorkqvist, Managing Director, ETN-European Turbine Network forecast.

"The cut will of course reduce the growth of renewables, but the problem is still there as Spain already has such a high amount of intermittent renewable energy production in the energy mix," he told Gas-to-Power Journal today.

Gavin Thompson

Gavin Thompson

The use of LNG in the power sector has developed despite the comparatively low average domestic gas price in China and the dominance of domestic coal in the power sector, Gavin Thompson, Head of Wood Mackenzie's China Gas & Power Research team in Beijing told 'Gas-to-Power Journal' today.

"We have something like an additional 30 GW of CCGT coming online in China by 2016 - this is named capacity, so pretty certain it is happening," Thompson said.

Franco-Belgian utility GDF Suez is in the process of restarting operations of its gas-fired power plant in Spem, France. The plant currently generates 47 MW but it is expected to be ramped up to full capacity of 435 MW by the end of today, a GDF Suez representative told 'Gas-to-Power Journal'.

Endesa, Spain's second largest utility, has reinforced its leading position the Spanish power generation market by hiking its electricity output in the country by 12 % to 74,249 GWh in 2011. Endesa has a 39.4% market share in the Spanish electricity market.

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News in Brief

AI predicts peak in power use

Nov 20 – ABB and Verdigris Technologies have developed machine-learning algorithms to predict unplanned peaks in electricity consumption and help avoid them. The Energy Forecasting app will enable users to reduce their electricity bills by reducing peak demand charges.

India’s first UHVDC link commissioned

Nov 19 – GE Grid Solutions has commissioned Pole-3 - the ultra high-voltage direct current (UHVDC) transmission line in India, capable to transmit 4,500 MW of electricity. Once completed the Champa-Kurukshetra UHVDC project will be expanded to transmit 6,000 MW of electricity at 800 kV, serving customers in the areas of Punjab, Haryana, Delhi, Uttar Pradesh.

COP25 urged to step up climate efforts

Nov 18 – The COP25 UN climate conference in Madrid is urged to enshrine greater commitments from the world's industrialised nations to curb their greenhouse gas emissions. “Europe will have to play a key role in this regard,“ environment minister Svenja Schulze said, adding Germany's recently announced climate package marks a "restart" in the country's climate policy.

Wärtsilä launches ‘Expertise Centre’ in Singapore

Nov 15 – The Finish technology group Wärtsilä has chosen Singapore as the location for its latest Expertise Centre (EC) that provides operational support and dynamic maintenance planning, both for marine and energy business customers. All of Wärtsilä’s Expertise Centres combined currently monitor some 900 installations with more than 2,000 engines around the world.

U.S. storage injection hits record high

Nov 14 – Near-record volumes of natural gas have been placed into storage in the United States in the current injection season. According to the U.S. Energy Information Administration (EIA), the amount of gas held in storage in 2019 surged from a relatively low value of 1,155 billion cubic feet (Bcf) at the beginning of April to 3,724 Bcf at the end of October.

SaskPower proceeds with Moose Jaw project

Nov 13 – Canadian utility SaskPower has taken a significant step towards realizing a 350 MW gas power plant at Moose Jaw. The project was first proposed in 2017, but in the Canadian federal government June last year introduced new regulations for gas generation coming online after January 1, 2021, which stalled the plans. Having completed its regulatory review, Sask Power was now granted permission to proceed from the municipality of Moose Jaw. Major Fraser Tolmie said “this $700-million investment into the city of Moose Jaw, will ensure we have base-load power in the province of Saskatchewan and to maintain our power independence.”

Sembcorp powers up first BESS unit in the UK

Nov 12 – Sembcorp Energy UK, part of Singapore-based Sempcorp Group, has started to operate the first 60 MW unit of its battery energy storage system (BESS) fleet, supplied by GE. Combined, the three storage units in Leicestershire and Cheshire will bring Sembcorp Energy UK’s total energy portfolio to 973 MW.

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.