Projects & Finance

Taiwan Power Co. (Taipower) is spending some $1.2billion to purchase two of GE’s H-class gas turbines for Tatan Power Plant unit 8 and 9. The turbines, each with 1,100 MW capacity, are meant to be put into service in 2021, and 2023.

Cypriot Natural Gas Public Company (DEFA) has extended a tender deadline to September for the supply of LNG cargoes to a floating regas terminal and a gas power project, under development near the town of Vasilikos. The European Union agreed to fund 40% of overall project costs.

Construction of Connecticut’s largest power project in a decade will start this autumn. NTE, developer of the Killingly Energy Center, a 650-MW dual-fuel, combined-cycle plant, has been given regulatory approval for the $700 project. All electricity from the plant will be fed into the grid of ISO New England.

Phoenix Petroleum of the Philippines seeking to develop $2.0-billion integrated LNG-to-power project together with China’s CNOOC and the Philippine National Oil Company (PNOC). The Tanglawan LNG project consists of a 2.3 mtpa regas and a 1,000 MW power plant. It is meant to start commercial operations in 2023, although construction has not yet started.

Mitsubishi Hitachi Power Systems (MHPS) has shipped a M701F gas turbine to Indonesia where it will form the core of a combined-cycle power plant, built on behalf of PT PLN (Persero). The 500 MW Muara Karang Power Plant, situated in western Java, is due for commission in October 2020.

Mission Rock Energy Center, part of Calpine Corp, has withdrawn its application to build a new gas-fired power plant in Ventura Country, California. Developers claim the project is no longer economic after a change in state regulations, restricting the use of ocean water for cooling.

Lansing Board of Water and Light (BWL) broke ground on a new $500 million power plant in Delta Township, Michigan, this week. The utility has vowed to complete the 250 MW unit by June 2021.

Unit-2 of the Mankato Energy Center has been completed and is now ready for start up, operator Southern Power announced. With a capacity of 345 MW, the second unit brings the plants’ overall capacity to 760 MW. Southern Power is selling the Mankato CCGT to Xcel Energy for $650 million.

Construction has commenced at the £350 million Keadby-2 combined-cycle gas power project, build by Siemens as a full turnkey solution on behalf of SSE. The CCGT will be one of Britain’s most efficient power units (63%) and is slated to start operations in 2022.

Oman-based Shinas Generating Company (SGC) has announced the completion of commissioning and the start of test operations and at the 1,710-MW Sohar Power Phase-3 unit. The CCGT unit had been built based on an investment of $ 1 billion (384bn Omani Rial) by a consortium of Japan’s Mitsui, Saudi Arabia's Acwa Power, and Oman’s Dhofar International Development & Investment Holding (Didic).

German chemical company BASF has awarded a contract to Siemens to modernize its industrial power plant in Schwarzheide, as part of the so-called Brownfield Exchange project. Works include replacing a gas turbine from another original equipment manufacturer (OEM) with a high-efficiency SGT-800 turbine and installing a SIESTART battery storage.

Mitsubishi Hitachi Power Systems (MHPS) has been awarded a contract to upgrade the Sidi Krir and El Atf combined-cycle gas power plants in Egypt. Both CCGTs operate with a rated output of 750 MW, based on two M701F gas turbines. Upgrade works are slated to start in the first half of fiscal 2021.

Sask Power has agreed to pay $120 million for buying all shares of its JV partner Canadian Utilities in the 260-MW Cory cogeneration plant in Saskatchewan province. The gas-fired CHP creates process steam for Nutrien’s potash mine while all electricity from the plant is fed into the regional grid. The deal coincides with ATCO’s move to divest its entire Canadian fossil power portfolio for around $835 million.

Gemma Power Systems, part of Argan Inc., has won a contract by ESC Harrison County Power LLC for engineering, procurement and construction services at a 652-MW combined-cycle gas power project in West Virginia. Construction is slated to start this summer, with completion due in 2022.

GE’s Grid Solutions has been awarded a $25-million contract by Engineering for the Petroleum and Process Industries (Enppi) to provide the Assiut Oil Refinery with gas-insulated switchgear (GIS) enabled substation for its new naphtha complex. The project set to be executed within 12 months. The average consumption of natural gas in Egypt expected to reach around 9 Bcf/d by 2021.

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News in Brief

Shell Energy ordered to refund overcharged UK customers

June 17 – UK energy regulator Ofgem has ordered Shell Energy Retail to refund around 12000 customers who were overcharged after the Government’s cap on gas and electricity prices came into force in January. Shell Energy Retail s agreed to refund these customers by paying £29,000 in compensation (£5 per fuel), and also pay an additional £200,000 into Ofgem’s voluntary redress fund.

BASF enters battery market

June 14 – German chemical company BASF is using NGK Insulators’ sodium sulfur batteries as its entry point into the energy market. The Japanese manufacturer NGK is currently the only maker of the large-scale sodium sulfur (NAS) batteries, capable to store several hours of energy. A joint project in northern Germany uses NAS batteries that store energy for five hours, while a recently completed project in Abu Dhabi using 108MW / 648MWh of the systems with a full six hours storage duration.

CNPC boosts domestic gas production

June 13 – China National Petroleum Corp (CNPC), the largest Chinese oil and gas company, has announced plans for domestic natural gas output to reach 55% of overall domestic supply by 2025. Last year, CNPC managed to boost production by 5.9% to reach 138.02 billion cubic metres, while also increasing imports of pipeline gas and LNG.

Gazprom taps new gas deposits for Nord Stream 2

June 12 – Gazprom is fast-tracking hydrocarbon production in northwest Russia to boost reserves for export through the Nord Stream 2 pipeline (55 Bcm/y), currently being built through the Baltic Sea. At a meeting with Nord Stream shareholders, Gazprom noted that its Yuzhno-Russkoye field has yielded about 276 Bcm of natural gas, including 0.9 Bcm of hard-to-recover Turonian gas, since the start of operations. Turonian gas reserves, consisting of about 99% methane with no heavy residues, lie at a depth of 800–850 meters in reservoirs with low permeability. Commercial production at the Turonian deposit is scheduled to start in late 2019.

PG&E turns off electricity to avoid wild fires

June 11 – Pacific Gas and Electric Company (PG&E) has turned off electricity for some Californian communities at risk of a wildfire during the lastest heat wave. The authorized blackout started on Saturday in Napa, Solano and Yolo counties, with electricity being gradually restored over the course of Monday. Approximately 16,000 customers have been affected.

Gazprom to build power plants in Serbia

June 10 – Gazprom Energoholding has signed an Agreement of Intent (AoI) to build an upgrade several gas-fired power plants in Serbia. Together with Novi Sad, Gazprom Energoholding is already building a CCGT with some 200 MW capacity near a refinery in the Serbian town of Pancevo.

U.S. fund splashes out $4bn to buy El Paso Electric

June 7 – Infrastructure Investment Fund (IIF), a private investment vehicle within J.P. Morgan Inc., has agreed to acquire the U.S. utility El Paso Electric Co for $68.25 per share in a cash transaction. The enterprise value on the transaction is estimated at $4.3 billion. El Paso Electric customers will receive a total $21 million in bill credits over three years.

Caterpillar gensets back up Finnish data center

June 6 – The Swedish telecom giant Telia has ordered 12 Caterpillar gensets to provide standby emergency power to back up operations at its new data center in Helsinki. The Cat dealer Witraktor figured a system which includes eight Cat 3516B and four 3516E generator sets. The Telia Helsinki Data Center is the largest such facility in Finland, and its primary electric power supply comes from a combination of wind, hydroelectric and biomass.

Capstone wins orders in Iraq

June 5 – Micro-turbine producer Capstone has secured an order for two C600 Signature Series microturbines to provide 1.2 MW of energy to power a triethylene glycol (TEG) dehydration facility near Basra, in southern Iraq. The contract also includes Capstone’s new self-cleaning pulse filtration system, allowing the turbines to better withstand hot and sandy conditions with minimal maintenance.

Gas to supply record 43% of US power needs

June 4 – This summer, natural gas is forecast to cover between 40% and 43% of 2019 peak electricity demand in all U.S. states except Texas, according to projections by the Energy Information Administration (EIA). Gas demand soared to nearly 10,700 billion cubic feet (Bcf) last summer, a 16% rise from 2017 levels. Should there be another heat wave this year, that record may well be broken. Capacity wise, natural gas is on course to top its 45% share in the U.S. power mix.

Lukoil to upgrade CHP at Krasnodar

June 3 – Russia’s oil and gas company Lukoil has received government approval to modernize and expand three combined heat and power units in Krasnodar. The gas-fired CHP units have more than 400,000 hours and ran an average 74% utilization rate, the operator said. The upgrade will add 150 MW of power generation capacity and Lukoil said it expects the revamped power plant to be ready for commissioning as early as 2022.

GE commissions Al-Qudus CCGT in Iraq

May 31 – GE Power has installed and commissioned a new 9E gas turbine at the Al-Qudus combined-cycle gas power plant, run by the Iraqi Ministry of Electricity’s (MoE). The CCGT was previously capable of generating up to 1,125 MW and the turbine upgrade adds another 125 MW of capacity.

Groundbreaking takes place for Ohio CCGT project

May 30 – This Thursday morning, groundbreaking will take place for the $500 million Long Ridge Energy Generation Project in Hannibal, Ohio. Long Ridge, a 485 MW combined-cycle power project, is being developed by Fortress Transportation and Infrastructure Investors (FTAI). It will create up to 350 construction jobs and some 25 permanent jobs. The CCGT is expected to open in 2021.

Asia to spend more on renewables than oil & gas by 2020

May 29 – Utilities in Asia-Pacific region will invest more in renewables than on oil and gas exploration by 2020. Total capital expenditure in renewables will rise above $30 billion in the region by 2020, according to forecast of the consultancy Rystad Energy. India, Australia, Japan, Vietnam and South Korea will led the way in Asia’s green energy transition.

Ichthys LNG looses court claim against power sub-contractor

May 28 – JKC Australia LNG consortium, developer of the US$34 billion Inpex-built Ichthys LNG plant near Darwin, has lost a US$1.9 billion court case claim against a power station sub-contractor. Construction of the power station was subcontracted to UGL-led group which CIMIC took over in 2016 and subsequently cancelled the Ichthys power contract. The Western Australian Supreme Court in Perth now dismissed an application by JKC Australia LNG for upfront payment of damages. The power plant’s five gas turbines have already been handed over to Inpex, and KBR aims for the plant to be ready for commissioning this autumn.

San Miguel Energy claims $6.19bn subsidy for Ilijan plant

May 24 – South Premier Power Corp. (SPPC), San Miguel Energy’s development vehicle for the 1,200-MW Ilijan gas power project, has claimed that it already paid $6.19 billion in subsidies to state-run Power Sector Assets and Liabilities Management Corp (PSALM) for its financial obligations as independent administrator. The build-operate-transfer (BOT) contract for the Ilijan plant will expire in 2022; and by that time, SPPC will get ownership of the plant.

Evolve approved as energy storage for VPPs

May 23 – Eguana Technologies’ new Evolve system has been officially approved as an energy storage system for Simply Energy’s Simply Extra VPP (virtual power plant) offer in South Australia. Customers who purchase an Evolve system can sign up for the Simply Extra VPP offer and receive up to $5,100 in VPP Access Credits. These credits will be calculated on a daily basis at $3.49 per day to a maximum of A$5,100, credited over a five year period.