Markets

Hawaii Gas is gearing up to importing more LNG as it aims promote natural gas as an alternative fuel for power generation, taking advantage of declining gas prices in the U.S.

The Indian government is not paying enough attention to smaller gas-based plants to cater for peak load demand as it focusses on large-scale coal-fired plants that provide base load capacity. Rakesh Sarin, Managing Director of Wartsila India stressed that building up a flexible, reserve capacity of at least 20 to 25 GW, preferably based on gas generation, would be ideal for supplying peaking capacity.

South Korea's Doosan Heavy Industries & Construction is focusing on new business for its power plant section in growth markets such as India and the Middle East, shifting its focus away from its South Korean home market. "India has become the biggest growth market for us, followed by Vietnam and Indonesia," Doosan spokesman Gang Cheol SEO told 'Gas-to-Power Journal'.

Global gas and coal markets will be in a slight surplus for the remainder of the year and in 2013 as subdued demand is outweighed by ample supplies; however by 2014 gas markets are forecast to tighten, Barclays Capital said in its Global Energy Outlook.

Deutsche Bank analysts expect Japan's total thermal power generation requirement to rise to 90 GW in December 2012, provided that no further nuclear reactors will be restarted and overall demand pattern are consistent with the previous year. "This forecast implies that thermal power requirement will be 5 GW to 8 GW higher in January and February 2013 than it was this past winter," analysts Isabelle Curien and Mark Lewis said in an emailed report today.

Despite most of the oil and gas production in the Gulf of Mexico being shut down following the landfall of Hurricane Issac, natural gas market in the US barely reacted. The abundance of shale gas supply has reduced the significant of offshore production, analysts say.

The Indian government is not paying enough attention to smaller gas-based plants to cater for peak load demand as it focusses on large-scale coal-fired plants that provide base load capacity. The Indian power ministry recently awarded licenses for four Ultra Mega Power Projects with a capacity of 4,000 MW each. All plants are coal based.

India's power ministry and the eight north Indian states, which were affected by prolonged blackouts after the collapse of the power grid on 30 and 31 July, have agreed on a 12-point resolution to avoid a similar crisis. "The Centre and the concerned states agreed to abide by a 12-point resolution to ensure that such breakdowns in the power grid do not recur," the ministry said in a statement.

Starting from 2013, E.on Russia will source its entire gas supply for its power plant fleet from Russia's second largest gas supplier Novatek instead of Gazprom. Under a $22 billion agreement, Novatek will supply gas to E.on Russia's plants at Smolensk, Surgutsk, Shatursk and Yaivinsk until 2027.

The United States is currently facing its worst drought in decades which is likely to reduce power supply since electricity generation can be very water-intensive, the U.S. Energy Information Administration (EIA) warns.

Despite short term restraints in the market for gas-fired power generation, new analysis from Frost & Sullivan's Energy & Power Research expects "sound" medium- and long-term prospects and forecasts global gas-fired power plant orders to total 537 GW through 2020.

The majority of the coal-to-gas switching activity in the U.S. is "permanent" as most utilities are not expected to revert investment decisions of converting coal plants to run on natural gas,  Moody's Investors Service said.

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News in Brief

Oseberg upstream shifts from oil to gas

Nov 29 – Equinor has announced plans to invest 10 billion Norwegian crowns ($995M) to change the Oseberg field from primarily being an oil field to becoming a substantial natural gas producer with large remaining gas resources. Oseberg is the third-largest oil producing filed on the Norwegian Continental Shelf, and the operator has submitted and amended development plan to the energy ministry.

ABB, Metacon and Wärtsilä partner on hydrogen

Nov 26 – ABB, Wärtsilä, Metacon affiliate Helbio, and the classification society RINA are jointly working on delivering a power solution for marine application that is fuelled by hydrogen. The aim is to have a scalable solution that will exceed the IMO 2050 target for a 70% reduction in carbon intensity without the need for extensive investment in new infrastructure. Wärtsilä gas engines can already run on a mix of hydrogen and LNG, and the company strives run them 100% on hydrogen fuel in the near future.

Wärtsilä enters Belgian energy storage market

Nov 25 – Wärtsilä has been contracted to supply a 25 MW / 100 MWh energy storage system to a Belgium customer, marking its entry into the Belgian energy storage market. The order was booked to Wärtsilä’s order intake in October 2021, and the system is scheduled to start operating in the fourth quarter of 2022.

Triveni agrees with GEAE Tech to manufacture LM2500 turbine in India

Nov 25 – Triveni Engineering & Industries has signed a 10-year accord with GEAE Technology USA to produce the LM2500 gas turbine base and enclosure locally in India. The turbine is the chosen propulsion equipment for many surface combatant vessels of the Indian Navy.

Wärtsilä launches lighter IQ-Series scrubber

Nov 24 – Wärtsilä has launched a new IQ Series exhaust gas treatment system, designed by its Exhaust Treatment business unit in Moss, Norway. Designed with a smaller footprint, the new scrubber takes up 25% less space, is 30% lighter, and has 35% less volume which makes it particularly adapt for use on container ships, but also for stationary engines.

Afreximbank signs loan for Aba IPP in Nigeria

Nov 23 – African Export-Import Bank (Afreximbank) has signed a $50 million term loan facility for the Aba Integrated Power Project (IPP) in Nigeria, which comprises of a 141 MW gas-fired power plant and a 27-kilometer feeder pipeline and a distribution utility. Before greenlighting the loan, the bank advised projects sponsor Geometric Power on restructuring sol-called “gap capital” in the $332 million recapitalisation funds for the Aba IPP.

SiGreen tracks products’ emissions data

Nov 22 – Siemens has developed an ecosystem-based approach to calculate Product Carbon Footprint (PCF) with a with a view to track and reduce emissions. SiGreen helps exchange emission data along the supply-chain and combine it with data from a company’s own value creation to obtain a product’s true carbon footprint.

ELGi expands oil-free compressor series

Nov 19 – Belgium-based ELGi Compressors Europe has marketed introduced four new air compressors, the AB11, AB15, AB18 and AB22 that expand the company’s AB Series portfolio, ranging from 11KW to 110KW. The new the AB11-22 range helps customers optimize moisture separation, cooling and capacity control which directly translates into savings on electricity use.

Double-digit growth seen for GT market

Nov 18 – The market for gas turbines (GT) is forecast to witness a double-digit growth between 2021 and 2028, according to Global Market Vision projections. Leading manufacturers surveyed in the consultancy’s latest report include Doosan, Mitsubishi, MJB International, Siemens, GE, PW Power Systems, Solar Turbines, Dresser-Rand, Kawasaki, MAN Diesel & Turbo, OPRA Technologies, MTU Aero Engines, Wood Group and Chromalloy Gas Turbine.

Gazprom aims to increase contractual supply to VNG

Nov 17 – Russia’s Gazprom is in negotiations with VNG, one of Germany’s largest gas importers, to extending long-term gas supply contracts and “increase the supply volume thereunder.” Leipzig-based VNG imports and stores Russian gas in Germany’s eastern states and Berlin, and together with Gazprom it is building the Katharina underground gas storage (UGS) project with a design capacity of 650 million cubic meters (mmcm) of working gas volume and 26 mmcm daily withdrawal rate. The Katharina UGS is due completed in 2025.

Eaton offers IFPM73 fluid purifier with higher flow rate

Nov 15 – The Filtration Division of energy management company Eaton has added a higher volume flow rate system to its IFPM series of PLC-controlled, mobile, off-line fluid purifiers. Complementing the IFPM 33, which has a flow rate of 8 gpm (30 l/min), the new IFPM 73 has over double the flow rate of 20 gpm (70 l/min) for purifying oils and gas liquids stored in large tanks and reservoirs. 

General Fusion sets up new base in Tennessee

Nov 12 – General Fusion has set up a new operations base in Oak Ridge, Tennessee, as it seeks to commercialize fuson technology in collaboration with national laboratories, universities, and the U.S. government. This expansion will create up to 50  technical jobs. 

Bloom Energy delivers 1 MW renewable power from dairy farm waste

Nov 10 – Bloom Energy has been contracted to deploy a 1 MW fuel cell at Bar 20 Dairy Farms in Kerman, California, to produce on-site, renewable electricity from dairy cow manure. Dairy biogas contains up to 65% methane and the waste-to-energy project captures methane that would otherwise be released into the atmosphere. The installation marks Bloom’s first biogas project.

German TSOs want three phased-out coal plants as backup

Nov 9 – Three hard coal-fired power plants in Germany, due for phase-out and decommissioning next summer,  might have to stay onstream to ensure supply security after regional TSOs said the units were “system relevant”. It is now up to the federal grid agency BNetzA to decide whether the three plants, owned by Uniper, RWE and STEAG and situated in the state of North-Rhine Westphalia (NRW), will be given permission to stay operational or whether they need to be retrofitted or shuttered.

Wärtsilä to service GasLog LNG carriers

Nov 8 – Greek shipowner and operator GasLog has selected Wärtsilä to service and maintain ten of its very large LNG carriers. The agreement, signed in June, covers the vessels’ twin two-stroke dual-fuel main engines and includes AI-based condition monitoring and advanced asset diagnostic services.

EU CO2 price in focus of German climate policy

Nov 5 – Germany should think of its climate policy plans on a European and ultimately global level, economists Gabriel Felbermayr (Wifo Institute Kiel), Clemens Füst (Ifo Institute Munich) and Jens Südekum (University of Düsseldorf) said in a joint statement. The economists call for a Europe-wide CO2 price to act as a central instrument to reduce emissions whereby the EU emissions trading system should include all sectors, notably heavy industry and transport.

Transport sector struggles with 2030 climate goals

Nov 4 – Germany's new government must agree on a wide variety of policy instruments to achieve its 2030 climate target in the transport sector, a Prognos report says. "A high CO2 price alone is not enough to reach the tightened climate targets," analysts find, adding that "an ambitious mix of measures is necessary” to have a chance of meeting the new goals which are still subject to much controversy.