Markets

Anglo-Swiss commodity trading and mining company Glencore has signed a financing deal with Limay LNG Power Corp. of the Philippines and China Energy Equipment Company to jointly realize an integrated LNG import and power generation facility. The project includes a floating storage and regasification unit (FSRU) that will supply to fuel a power plant with up to 1,100 MW installed capacit in Bataan, Luzon Island.

MHI Compressor Korea Ltd. (MCO-K) has been launched as a Joint Venture by a group company of Mitsubishi Heavy Industries and Mitsubishi Corp. Operating out of Seoul as of October 1, MCO-K is tasked to “further cultivate the promising market in South Korea,” where the Japanese manufacturer already sold many compressors and drives.

Ansaldo Energy, the Italian power engineering company, has shipped the first gas turbines from its new production facility near Genoa Cornigliano. Following final assembly, large heavy-weight turbines – including Ansaldo's flagship GT36 – can now be shipped directly from the port of Genoa to customers worldwide.

Net natural gas exports from the United States are spiraling up as more and more LNG export capacity comes into operation. From January through June of 2018, net gas exports averaged 0.87 billion cubic feet per day (Bcf/d), , which is more than double the average daily net exports during all of the previous year, at 0.34 Bcf/d.

Finland-based technology group Wärtsilä has decided to redesign its organization into two separate business areas – Wärtsilä Marine and Wärtsilä Energy, both covering new sales and services. With this change, Wärtsilä aims to deliver better value and serve to customers. The new structure will be in place as of 1 January 2019.

Rolls-Royce, one of Britain’s leading engineering companies, has bought a stake in the Berlin-based energy storage and systems start-up Qinous. Marcus Wassenberg, CFO at Rolls-Royce Power Systems called the acquisition a “strategic investment” aimed at setting up a partnership to “develop of innovative energy storage solutions to meet tomorrow’s needs.”

Singapore’s SP Group has contracted ABB to supply its DC fast-charging stations as part of an initiative in Singapore to accelerate the adoption of e-mobility in the city-state. In total, ABB will install 500 EV charging points across Singapore by 2020.  

U.S. equipment maker Chart Industries has acquired VRV Spa., a leading niche manufacturer of cryogenic equipment, to complement its offerings and extend its foothold in the European market. Integrating VRV’s business will complement Chart’s Distribution & Storage and Energy & Chemicals technologies.

Uncertainty looms large over what effect of battery electric and plug-in hybrid vehicles (EVs) will have on worldwide energy consumption in the long run. Technological change, state subsidies and consumer choices are the three key parameters to determine future demand, with EV sales forecast to double from low levels by 2040.

Unlike other parts of the U.S., in the Southwest Power Pool (SPP) some coal-fired generators are operated similar to natural gas-fired units and are used to balance fluctuations in wind output throughout the day. The SPP covers all or part of fourteen Midwestern states and has some of the highest contribution of wind power supply.

The Australian power producer AGL has reiterated its commitment to close its 1,680-MW Liddell power station as planned in 2022, rebuking government opposition by saying the decision was made based on “simple economic” given that the plant is no longer profitable.

More shale gas produced in Texas is expected to soon cross the border to Mexico after the U.S. Department of Energy (DOE) approved an application by Mexico Pacific Ltd (MPL) to export up to 1.7 Bcf/d to a planned liquefaction and export plant in the state of Sonora. MLP is developing a an LNG export facility of up to 12 mtpa in the Mexican state of Sonora, with the first phase planned to be in service in 2023.

Research by the International Energy Agency (IEA) has found 40 to 50% of current oil and gas related methane emissions could be avoided at no net cost. If implemented, the volume of methane abatement would be equivalent to shutting down every coal plant active in China today.

Dominion Energy has agreed to sell its 100% interest in two combined-cycle gas power stations in Pennsylvania and Rhode Island to the private investment firm Starwood Energy for a cash consideration of about $1.23 billion. In addition, Dominion will get a further $700 from the divestment of 25% interest in a hydro power station in Louisiana.

A reconciliation of interest agreement has been sealed by Siemens and the company’s Cental Works Council, detailing where the axe will fall to save up to €500 million at the Power and Gas Division (PG). Nearly €270 million of this amount is meant to be saved in Germany where the number of job cuts has been reduced from 3,400, as initially announced, to around 2,900.

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