Projects & Finance

Ansaldo Energia has been selected by the German utility Uniper to build an open-cycle power plant on a turnkey basis. The 300 MW plant, driven by an AE94.3A gas turbine, will be installed in Irsching, southern Bavaria for grid balancing purposes.

General Electric has secured two orders for 6F.03 gas turbines in China with Guangdong Lee & Man Paper Manufacturing Ltd (Lee & Man) and China Huadian Corp (CHD) Xiangyang. These order wins come as the 6F turbine achieved 25 years of successful operations.

Siemens Gas and Power has carried out the first Brownfield Engine Exchange (BEX), replacing a the gas turbine section (V84.2) at PowerSouth’s McWilliams power plant in Covington County, Alabama with a newer, more efficient SGT6-2000E.

Mitsui OSK Lines (MOL) is to more than double its fleet of LNG regasification ships to tap into a construction boom for gas-fired power stations in developing regions, such as Southeast Asia. According to Reuters, the Japanese giant will add six FSRUs, bringing its total to 10, by 2025.

Spanish regulator CNMC has proposed to cut gas grid access fees for gas-fired power plants by 6.7%. According to traders, this could put pressure on wholesale power prices.

TC Energy Corp, formerly Trans Canada, has entered into an agreement through its wholly-owned subsidiary, TransCanada Energy, to sell interests in three Ontario natural gas-fired power plants for about C$2.97 billion.

The Mozambican government has approved a 30-year concession for Beluluane Gas Company to build, own and operate the 2,000 MW Beluluane gas power near the capital of Maputo. The developer is also required to build a feeder pipeline to supply the power plant with regasified LNG form Mantola Port.

International Finance Corp (IFC), part of the World Bank, has made a $2 million cost-sharing commitment to South Africa’s Transnet to develop a floating storage and regasification unit (FSRU) at the Port of Richards Bay by 2024. The aim is import LNG to fuel independent power projects.

Egypt’s National Electricity Technology company Kahraba has handed an engineering and equipment (EEQ) contract to Wärtsilä to install two 34SG engines at a power plant in Borg El Arab, an industrial city some 45km southwest of Alexandria. The upgrade will increase the plant’s capacity by two thirds.

The Florida Power Plant Siting Board has approved Tampa Electric's plan to build a combined-cycle gas power unit in replacement for a coal-fired block at its 1,700 MW Big Bend power station in Hillsborough County, Florida. Construction of the CCGT comes at a cost of $853 million, with works slated to start in August.

The Finish technology group Wärtsilä has signed an Engineering, Procurement and Construction (EPC) contract for a 100 MW/100 MW energy storage project in South East Asia. The energy storage, featuring the Greensmith GEMS software and GridSolv, will be used for grid balancing.

French energy major Total has agreed to develop a floating LNG import unit in Benin, including an offshore gas pipeline to supply fuel to power plants in Maria Gléta. The Benin government seeks to develop a second gas power unit at Maria Gléta, just outside the large port city Cotonou.

National Grid and Energinet, the British and Danish TSOs, have signed contracts worth 1.1 billion Euros (£990 million), with suppliers for the 1.4 GW Viking Link. The two parallel HVDC cables will come from Prysmian Powerlink and NKT HV Cables, while Siemens will supply and install two converter stations.

Output of unit-1 at the 2,000 MW Sabia West combined-cycle power station has been boosted by more than 6%, or 35 MW, following GE Power's Advanced Gas Path (AGP) at two 9FA gas turbines. The extra output can be produced without any additional fuel.

Northern Nigeria’s 215 MW Kaduna power plant will be fuelled by regasified LNG from Greenville’s import facility at Dufil Prima, Port Harcourt. A new gas pipeline will be built to deliver the fuel, and in the meantime, Greenville has committed to deliver the LNG by truck all the way to the power plant.

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News in Brief

Tohoku Electric tenders for LNG cargo

Aug 19 – Tohoku Electric Power, the fourth-largest electric utility in Japan in terms of revenue behind Tepco, Kepco and Chubu, is understood to be seeking an LNG cargo for delivery in September. A tender process is ongoing.

Cost for decarbonizing industry tops $21tr

Aug 16 – Total costs to fully decarbonize the four most polluting industries – cement, steel, ammonia and ethylene – are estimated to amount to $21 trillion between today and 2050. McKinsey said this could be lowered to about $11 trillion if zero-carbon electricity prices come down further compared to fossil fuel prices. In this event, industry could switch to using electricity for heating processes.

Co-firing Braskem plant with hydrogen

Aug 15 – Siemens is making fossil energy greener at the Braskem onsite power plant in Brazil. In this modernization project two SGT-600 gas turbines are co-fired up to 60% with hydrogen, enhancing efficiency for the production process of the adjacent the petrochemical complex.

Canada's CO2 tax to hit CCGTs

Aug 5 – Change in Canada’s carbon emissions tax regulation for new power plants has changed to also affect cleaner-burning, gas combined-cycle power stations starting from 2021. The move could significantly lower the profitability of gas generation and could prompt SaskPower reconsider its planned Moose Jaw gas power station.

GE CFO steps down

Aug 2 – Jamie S. Miller, General Electric’s chief financial officer, has decided to quit after two years in the job and 11 years with the company. Having overseen GE’s fiscal activities during a period of intense restructuring, Miller will remain in office while the GE board is looking for a successor.

Siemens HR boss quits

Aug 1 – Janina Kugel, Siemens chief HR officer, is leaving the company amid an apparently scattered working relationship and stark personal differences with CEO Joe Kaeser. Her contract will expire by mutual agreement on January 31, 2020.

ABB standardizes eBus chargers

July 31 – Zurich-based ABB, a member of the ASSURED consortium, is working on standardizing the specifications for automatic charging of heavy vehicles. The aim is to drive down the total cost of ownership for electric fleet operators, helping increase adoption of eBuses and eTrucks. Conformance and interoperability tests will be carried out in Q4-2019.

U.S. Senate helps fund EV charging stations

July 30 – The need for expanded electric vehicle charging infrastructure is greater than expected given that there had been over 1.75 million electric vehicles (EV) in North America at the end of 2018, a nearly 60% increase from the previous year. To help fund additional charging stations, among other things, the U.S. Senate approved the $287 billion America’s Transportation Infrastructure Act (ATIA).

PNOC, Lloyds to develop merchant LNG-to-Power projects

July 29 – Philippine National Oil Co. (PNOC) has signed a Memorandum of Understanding (MoU) with Lloyds Energy to develop a 1,200 MW LNG-fuelled power plant in partnership with Mitsubishi. Dubai-based Lloyds Energy is looking at ways to develop integrated LNG import facilities and gas power plants on a merchant basis in Bataan and Batangas provinces.

Macquarie finances CCGT in Mexico

July 26 – Macquarie Capital has chosen Credit Agricole, Natixis and SMBC to co-finance a $380 million combined-cycle gas power plant. The 560 MW plant is designated to be built in San Louis Potosi, a city in central Mexico.

Naturgy cashes in on gas network

July 25 – Spanish gas utility Naturgy has posted a 7% rise in core earnings for the first half of the year due to strong gains from its gas network business that helped offset falling revenues from power generation and slimmer LNG margins.

French court rejects appeal against Total CCGT

July 24 – Judges at an appeal court in Nantes have thrown out an appeal by environmentalist against Total’s planned Landivisiau combined-cycle gas power plant in Brittany. The 440 MW project, initiated by Direct Energy which was since acquired by Total, is over two years behind schedule. The French grid operator RTE has singled out the Landivisiau CCGT as “critical” in guaranteeing supply security in winter 2020/21 due to the planned shutdown of four coal power plants.

U.S. gas production falls in wake of ‘Barry’

July 23 – Shut-ins related to Hurricane Barry have scaled back U.S. gas production by 1.6 billion cubic feet per day, compared to last week, while power sector gas demand rose by just over 2.0 bcf/d. Consequently, there is significantly less gas available for storage so the injection rate has halved, according to Energy Aspects figures.

Blackout after fire at Madison substation

July 22 – Electricity is gradually being restored at Madison, Wisconsin, after 13,000 people experience a blackout following an explosion at a substation near Madison Gas & Electric’s 100 MW gas-fired Blount Generating Station. No injuries were reported.

Fuel switch could abate 1.2bn tons of CO2

July 19 – Some 1.2 billion tonnes of CO2 could be abated by switching to gas using existing infrastructure, if prices and regulation are supportive. According to the International Energy Agency (IEA), this would be enough to bring global CO2 emissions back down to where they were in 2013.

IEA launches methane tracker

July 18 – A new ‘methane tracker’, launched by the International Energy Agency (IEA), provides up-to-date estimates of current oil and gas methane emissions by drawing on the best available data. Analysts stressed methane emissions could be reduced by nearly half at no net cost.

Canada’s CO2 tax also affects gas power

July 17 – Change in Canada’s carbon tax regulation for new power plants has changed to also affect cleaner-burning, gas combined-cycle power stations starting from 2021. The move could cause SaskPower to reconsider its planned upcoming Moose Jaw gas power station.