Projects & Finance

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.

Siemens CEO Joe Kaeser has signed the Nigeria Electrification Roadmap, paving the way for a three-phased approach to add 7 GW of generating capacity and debottleneck the power grid. The aim is to eradicate today’s stark mismatch between power supply and demand by boosting installed capacity to 25 GW in the long run.

Thüringer Energie AG (TEAG) has tasked MAN Energy Solutions and MMEC Mannesmann to build a new gas-engine driven cogeneration plant in Jena, Germany. The new CHP unit will expand an existing plant and is due to start operating in the 2021/22 heating period.

Mitsubishi Hitachi Power Systems (MHPS) has signed a preliminary deal with Uzbekistan’s energy ministry to expedite a Comprehensive Service and Maintenance Program (CSMP) for the country’s thermal power plants.

MAN Energy Solutions and China National Heavy Machinery Corporation (CHMC) have jointly won a contract to build a 200 MW power station in the Cambodian capital Phnom Penh. While CHMC will carry out engineering, procurement and construction, MAN will deliver and commission the plant’s eleven 18V51/60DF engines.

Two new steam turbine units have been commissioned at the Shirvan Combined Cycle Power Plant in North Khorasan Province, Iran. The two 320 MW units were built at a cost of $260 million, according Iran’s state news agency IRNA.

General Electricity Company of Libya (GECOL) has connected of the fourth unit of its Ubari Gas Power Station  (640 MW) to the public electricity grid. Unit-4 used to operate on crude oil but has been revamped to run on cleaner-burning natural gas instead.

Some 43 MAN gas engines – installed at EDF-run power plants on the French islands of Reunion, Martinique, Guadeloupe and Corsica – have surpassed the symbolic mark of one million hours’ running time. The record was reached at four power plants built by MAN between June 2012 and April 2015 on behalf of EDF Production Électrique Insulaire.

Mitsui O.S.K. Lines (MOL) is getting ready to deploy a floating storage and regas unit (FSRU) offshore Hong Kong to supply regasified LNG for the 2.5 GW Black Point and 3.7 GW Lamma Island Power Stations from 2021. The LNG cargoes will be delivered by Shell Eastern Trading.

MODEC’s latest floating production, storage, and offloading vessel – the ‘Eni Mexico Area 1 FPSO’ – will be powered by three Siemens  SGT-A35 gas turbine power generation packages. Due operational in 2021, the FPSO will operate some 6 miles off the coast of Mexico in a field owned by Eni and Qatar Petroleum.

The Iraqi developer Maisan Power Company (MPC) and CITIC Construction have selected Siemens to supply the entire power generation equipment for the 840 MW Maisan combined-cycle power plant in southern Iraq. According to Siemens, the contract is worth more than 284 million Euros and the Maisan CCGT is due fully operational in early 2022.

Page 10 of 157

News in Brief

ExxonMobil enhances turbine oils

Jan 17 – New high performance turbine oils, developed by ExxonMobil Lubricants, are  entering the market which are formulated to prevent build-up of lacquer, varnish and deposits. The oils are designed to protect against thermal and oxidative degradation, one of the root causes of deposit build-up.

Wärtsilä signs O&M deals in the Bahamas

Jan 16 – Following the commissioning of a Wärtsilä-built 132 MW power plant in Bahamas in December, the Finish manufacturer now signed a two-year operation and maintenance (O&M) accord with the plant owner, the Bahamas Power and Light Company (BPL). Wärtsilä will transition, train, and develop the owner’s Bahamian work force and provide key performance guarantees.

China, S'Korea curtail coal to tackle air pollution

Jan 15 – Beijing city government’s aggressive approach to tackling air pollution is working and South Korea’s spring coal-fired curtailments show some success in cutting seasonal emissions. According to Wood Mackenzie, this should benefit LNG, particularly while spot prices remain low.

Sri Lanka at brink of power shortages

Jan 14 – Sri Lanka could face power cuts by March, after plans for a large-scale coal power plant were been cancelled just prior to start of construction, and a tender for a 300 MW diesel plants ended up in court. On the demand side, pressure is building up as the region is moving into the dry season in February and March. Weather warnings say the island is likely to receive lower than average rainfall in the first quarter of 2020.

Caterpillar’s new genset comply with UK & German grid codes

Jan 13 – Caterpillar Inc. has launched a series of new generator sets that comply with the new G99 United Kingdom, VDE-AR-N 4110 German and Belgium C10/C11 grid codes. The following gensets – G3500H, CG132B, CG170, and CG260 (rated from 280-4,500kVA) – have been verified to be able to accommodate different reactive power modes, active power functions, and connection conditions for normal operation or reconnection after mains decoupling.

Transneft launches battery-based power supply for ILI tools

Jan 10 – Transneft Diascan, the largest Russian inspection service provider for pipelines, has developed and put into operation a power supply system for in-line inspection (ILI) tools based on rechargeable batteries. Flaw detectors performing inspections of trunk oil pipelines, gas pipelines and oil product pipelines can now use the energy from rechargeable batteries, which helps save time and reduces the cost of in-line inspection.

Pavilion starts trading LNG out of Madrid

Jan 9 – Singapore-based Pavilion Energy has completed the acquisition of all gas and LNG assets of the Spanish utility Iberdrola. From its new European headquarters in Madrid, Pavilion said has launched 2020 LNG trading operations with supplies focusing on Spain and the UK market.

Gazprom extends gas transits via Belarus until 2021

Jan 8 – Gazprom and Gazprom Transgaz Belarus have sealed additional agreements to extend the contracts for gas supplies to and gas transportation across Belarus until 2021. According to the newly-signed documents, the contractual supply and transit volumes in 2020 will remain at the level of 2019.

EastMed pipeline to take FID by 2022

Jan 7 – Greece, Cyprus and Israel have signed an agreement to build the 1,900-kilometre EastMed pipeline at an estimated cost of 6 billion Euros. The subsea pipeline, spanning over 1,900-kilometres would initially carry 10 Bcm of gas per annum from Israeli and Cypriot waters to Crete and then on to the Greek mainland and into the European gas network via Italy. A final investment decision (FID) is meant to be reached in 2022, given that the pipeline is scheduled for completion by 2025.

U.S. energy-related emissions drop over 2%

Jan 6 – Fewer emissions from coal consumption, combined with lower energy demand, have helped to significantly reduce the overall energy-related carbon emissions in the United States. According to government statistics, energy-related CO2 emissions fell 2.2 percent last year, and the downward trend is forecast to continue into 2020.

Brent crude prices surge

Jan 3 – North Sea Brent crude prices have risen to their highest level since September 2019, up nearly $3 per barrel because of Middle East tensions coupled with improved Chinese economic forecasts. Brent crude futures for March 2020 delivery were last seen trading at 69.21 per barrel the Intercontinental Exchange (ICE). This bullish price sentiment will feed through to oil-indexed natural gas contracts and LNG deliveries, linked to the Japanese crude cocktail (JCC) basket price.

IEA says coal’s fate tied to Asia

Dec 23 – Rapid rise of wind and solar power in many parts of the world has pushed coal-fired power generation into steep decline in most developed countries. "But this is not the end of coal, since demand continues to expand in Asia," analysts at the International Energy Agency commented: "The region’s share of global coal power generation has climbed from just over 20 percent in 1990 to almost 80 percent in 2019, meaning coal’s fate is increasingly tied to decisions made in Asian capitals."

Drop in coal-burn makes Germany edge closer to climate targets

Dec 20 – In 2019, Germany managed to increase its greenhouse gas emissions for the second year in a row, mainly due to a 20 percent drop of coal use for power generation and a growing contribution from renewables. Energy savings and efficiency increases also helped. According to calculations by energy research group AG Energiebilanzen (AGEB), Germany’s primary energy consumption declined by 2.3 percent this year, overall energy use fell more than 2 percent, and energy-related CO2 emissions fell by as much as 7 percent.

Glencore buys Orsted’s lgas business unit

Dec 19 – UK-listed mining company Glencore has agreed to take over a loss-making natural gas business from Orsted, including long-term import capacity at the Gate regas terminal in Rotterdam and five other LNG purchase agreements. “The transaction entails a payment from Orsted to Glencore and will result in a loss that exceeds our current provision related to the LNG activities,” stated Copenhagen-based Orsted without disclosing the value of the transaction.

Carbon-intensive firms may shed over 40% in value

Dec 18 – Energy- and carbon-emissions intensive companies could lose up to 43% of their value if national governments enact more stringent policies to reduce air pollution and tackle climate change. Companies using green energy, in contrast, could gain up to 33% in value, research by the United Nations-backed Principles for Responsible Investment (PRI) finds.

COP25 – a “lost opportunity”

Dec 17 – UN Secretary António Gutierrez has dismissed the outcome of the COP25 climate talks in Madrid as “disappointing” and “lost opportunity“. Some of the world’s largest emitters, including Australia, Brazil, China and Saudi Arabia had joined the U.S. in pushing for accounting loopholes to weaken commitments to reduce emissions in the transport and power generation sector.

Industry produces over 13% of Germany’s electricity

Dec 16 – Decentralized power generation at industrial sites keeps rising in Germany. According to the Federal Statistical Office (Destatis), industry produced 55 Terawatt-hours (TWh) of in 2018, meaning local units of mining and manufacturing generated 12.6 percent of the country's gross electricity output, mostly from gas-fired power units. The use of gas as a fuel for industrial power plants has consequently risen from around 35 percent to almost 50 percent over the last ten years.