Projects & Finance

Bayat Power, part of Bayat Group – one of the largest privately-held investors in Afghanistan – has an order for Siemens’ SGT-A45 trailer-mounted, mobile power generation unit. The order will see Siemens deliver the first gas-fired power unit in the war-torn country since the 1970s, with first electricity supply planned for summer 2019, in just a few months time.

Following a multimillion investment, General Electric today launches its GT26 HE gas turbine at Uniper’s Enfield Power Station in greater London. GE's launch customer Uniper will retrofit its 400-MW Enfield combined-cycle power station with the new GT26 HE technology starting from in 2020, and subsequently upgrade of its 3-unit Grain combined-cycle plant (1,200 MW).

Chart Industries and Indian Oil Corp, owner of India’s first East Coast LNG import terminal at Kamarajar Port, Ennore, have entered a cooperation to promote LNG developments in India. In focus are modular liquefaction and regas technologies, which could spur new decentralized LNG-to-Power projects and alleviate gas shortage for some of India’s stranded power plants.

State-owned GAIL India, the country’s largest gas transmission operator, has contracted Siemens to install its remote diagnostic services at 29 gas turbines operating across GAIL’s Hazira-Vijaipur-Jagdishpur gas pipeline and the Vijaipur C2/C3 power plant.

The President of Serbia, Aleksander Vucic, has confirmed his government is evaluating ways to support the construction for four gas-fired power plants and several LNG import terminals in a bid to encourage the country’s re-industrialization.Gazprom Energoholding offered to build and partially finance most of the proposed power plants.

Singapore-based Sembcorp Industries has achieved first fire at it S$420 million (US$310m) Mandalay combined-cycle gas turbine power plant in Myanmar. With an installed capacity of 225 MW, the new Mandalay power plant is Myanmar’s biggest and most efficient CCGT, capable to generate up to 1,500 Gigawatthours (GWh) of electricity per year.

Works on $11 billion Nord Stream-2 twin pipeline project are 34% complete, with over 830km of pipes having been laid in the Baltic Sea to date, the Gazprom and Uniper chairmen, Alexey Miller and Bernhard Reutersberg said after a meeting in Moscow. Uniper is a key customer of Russian gas supplied through the 55 Bcm/y Nord Stream-2 interconnector.

Drax Power has secured regulatory approval for its Millbrook Power Station, a proposed 299-MW open cycle gas turbine (OCGT) power plant to be built in Bedfordshire County, England. Developed at a cost of up to £90 million, the new Millbrook OCGT could start generating electricity as soon as 2022, provided it secures a UK capacity contract.

Sorgenia has turned to GE to make its 765-MW Termoli combined-cycle gas turbine (CCGT) power plant more efficient, reliable and flexible by enhancing its digital capabilities. In this context, Sorgenia also extended the multiyear O&M agreement with GE through 2031.

Powergen Kyaukse Company has signed a 5-year operations and maintenance agreement with Wärtsilä to help its 145 MW power plant in Mandalay region meet its availability guarantees. The newly installed plant, driven by eight Wärtsilä 50SG gas fuelled engines, has been built to alleviate electricity shortages in Myanmar.

Finish technology group Wärtsilä has been contracted by Bahamas Power and Light (BPL) to supply an engine-driven power plant to help improve the grid reliability on the island. The 132 MW dual-fuel plant will be delivered and built on a fast-track basis as it is due to go into commercial operations in summer 2019.

The Italian utility A2A Group has contracted GE to deploy hardware and software solutions at its Chivasso, Sermide, Cassano and Monfalcone power plants with a combined capacity of 3,420 MW. A Predix upgrade at the 1,179-MW Chivasso plant allows the operator to start up the facility in a range from 90 to 120 minutes in every condition.

The American family-owned independent power producer NOVI Energy has selected two GE’s 7HA.02 gas turbines to drive its Charles City combined-cycle power plant. The 1,100-MW project is planned for construction in Charles City County, Virginia. 

Fortress Transportation and Infrastructure Investors has selected GE’s HA gas turbine technology for its Long Ridge Energy Generation project in Hannibal, Ohio. Kiewit Power Constructors will break ground on the project immediately, as the 458-MW plant is due for completion by November 2021.

South Korean conglomerate Hynix has announced plans to invest over 1.68 trillion won ($1.49 billion) to build LNG-fuelled power stations adjacent to its semiconductor plants in Icheon, Gyeonggi Province, and Cheongju, North Chungcheong Province. The two plants are scheduled to start up by 2022.

Page 8 of 148

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.