Projects & Finance

Emirates Water and Electricity Company (EWEC) has invited developers to come forward with expressions of interest (EoIs) to finance, build and operate a 2,000 MW combined-cycle gas power project at Fujairah, UEA. Bids need to be submitted by February 10.

General Electric and Japan’s Sumitomo Corp. will build Sharjah’s first combined-cycle power station in Hamriyah, UEA, under a public-private partnership with Sharjah Electricity and Water Authority (SEWA). The 1.8 GW project will consists of three blocks, the first of which is slated to come online in May 2021.

Oman’s Duqm Integrated Power and Water project (DIPWP) will be driven by Siemens gas and steam turbines, as well as digital solutions. The €200 million contract marks Siemens’ largest order win in Oman, with project completion due in 2022.

Trinidad & Tobago’s Cove Power Plant is now running on a new LM2500 aero-derivative turbine following a $132 million plant expansion. For GE, it was the first gas turbine to be supplied and commissioned in Tobago  – but it has already sold more than 2,200 units around the world.

Start-up of a new substation northwest of Baghdad reduces bottlenecks in electricity supply. The GE-built substation connects over 1,000 MW of installed capacity to the grid and is vital to reduce the risks of blackouts in the Iraqi capital.

The Texan arm of Entergy Corp has selected two Mitsubishi Hitachi Power Systems (MHPS) gas turbines of its Montgomery County Power Station near Willis, due to start operating in 2021. For MHPS the order is the third from Entergy in just 22 months.

The Finish technology group Wärtsilä will supply a gas engine-driven power plant to a leading petroleum company in Argentina. With an initial output of 57.4 MW, which can later be increased to 90 MW, the plant’s electricity output will primarily be used to power the local oil fields in the Manantiales Behr basin.

Protests raised by the Engineers’ Union has forced Ceylon Electricity Board (CEB) to stop construction at three cabinet-approved LNG-fuelled power projects. A China-led 400 MW project, a Japan-sponsored 500 MW project and an India-lead 500 MW project are all halted amid claims that private developers would force the government to buy electricity at higher prices.

Though a tender has been completed, the winning bidder for a 300 MW LNG-fuelled power project in Kerawalapitiya, in Sri Lanka’s western province, is not yet officially named. LTL Holdings submitted the lowest bid of US$ 160 million, but the offer is based on conditions that pile “maximum political pressure” on the government to decide in its favour.

The first application of a Siemens SGT-300 in Canada will take place for an established Montney shale gas producer in Alberta. The customer’s ECP firm ordered two SGT-300 industrial gas turbines for use at a gas processing plant northeast of Edmonton.

Qatar Power Company (QPower) has awarded Siemens a 15-year extension of a long-term service agreement for the Ras Laffan B combined-cycle power plant. The 1,025-MW Ras Laffan B plant, built in 2006, helps meet Qatar’s rising demand for power and water.

MAN Energy Solutions has commissioned six MAN 18V32/40 engines in Samara, Iraq, and delivered five more engines of the same type to a freshwater-treatment plant in Basra. The six engines in Samara will generate around 54 MW of electricity for a new cement plant owned by Kairat Al-Abar Iraqi.

Privately-held developer Invenergy has announced the start of commercial operations of its Lackawanna Energy Center. The 1,485-MW combined-cycle gas power plant, situated just outside of Scranton, Pennsylvania, is the largest project Invenergy has realized so far.

Jamaica’s electric utility Jamalco is striving to get its LNG-fuelled cogeneration power station ready for completion by February 2020. Works currently focus on the inland segment of the gas feeder pipeline for the $189 million power project, built by New Fortress Energy (NFE).

Start-up of Gibraltar’s first gas engine-driven power plant at North Mole is underpinned by fuel from a small-scale LNG shipment. A partial cargo has just been delivered by Shell on board the ‘Coral Methane’. Commissioning of the North Mole power project “is currently ongoing,” MAN Energy Solutions confirmed, with "several engines having had first fire.”

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News in Brief

Evol LNG helps power Australian gold mine

June 18 – Kirkalocka Gold Mine in Western Australia will use Evol LNG to fuel Zenith Energy’s 14.5 MW power station with regasified natural gas starting from September 2019. The mine is run by Adaman Resources and had been relying on diesel to cover its energy needs. Based on the current diesel price, Adaman Resources expects to reduce fuel costs by more than A$13 million (US$9 million) during the first six years of operation of the new onsite LNG-to-Power plant.

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.