Projects & Finance

RUE Vitebskenerg, a Belarusian state utility, has contracted Siemens to deliver the power generation equipment for two new peaking power stations. The new open-cycle gas turbine (OCGT) plants will be dispatched in connection with the existing Lukomlskaya and Novopolotskaya  power plants in northern Belaurs and are due operational by the end of 2021.

Göteborg Energi and Siemens will jointly test new turbines that enables the use of renewables fuels at the Rya combined heat and power (CHP) plant, which is currently powered by natural gas. As a first step, an SGT-800 test turbine was installed at the plant to validate 3D-printed burners that can run on various fossil-free fuels.

Mitsubishi Hitachi Power Systems (MHPS) has completed a shipment of J-Series Air Cooled (JAC) gas turbines to Thailand where they will be used in two combined-cycle gas power stations on the outskirts of Bangkok. The two CCGTs, with a combined output of 5,300 MW, are being developed by Thailand’s largest IPP Gulf Energy Development and Mitsui & Co.

Virginia-based AES Corporation has completed the steam purity run – one of the final commission phases of its Huntington Beach Energy Project (HBEP). With the initial turbine run well underway, AES said it plans to fully start up the unit in late January, or early February 2020.

Bayat Power-1 – Afghanistan’s first gas power project in four decades – has been commissioned, with the first of three Siemens SGT-A45 turbines now fully operational. Once all three turbines are up and running, the plant will generate more than 200 MW of electricity.

B2Gold, a Canadian public gold mining company, has contracted Wärtsilä to design and engineer a 17MW/15MWh energy storage. Wärtsilä's GEMS control system will optimise the hybrid solar power and energy storage unit at the Fekola Mine, situated in a remote region in southwest Mali.

At the latest China International Import Expo (CIIE) in Shanghai, Rolls-Royce Power System has signed five deals for the delivery of more than 500 MTU engines. Contracts were sealed with Cooltech, EPG, SUMEC Machinery & Electric Co., Tellhow and AFAI Southern Shipyard, with first delivery of MTU engines 4000-series due to start later this month.

Edison has committed to invest €370 million to build a combined-cycle power plant at Presenzano, in the southern Italian province of Caserta. The 760 MW unit will be driven by a GT36 H-class gas turbine, developed by Ansaldo Energia, and will reach an energy efficiency of about 63%.

Siemens has installed the world’s first HL-class gas turbine, a SGT6-9000HL, at Duke Energy’s new 402 MW simple-cycle unit at the Lincoln Combustion Turbine Station near Denver, North Carolina. During a four-year testing period the customer only pays some fuel costs. When testing is finished in 2024, Duke will receive the unit at a discount.

Wärtsilä has been awarded an engineered equipment supply contract for a 40 MW baseload power plant in Shwe Taung, south-central Myanmar. The plant will be equipped with four Wärtsilä 34SG gas engines and is due operational in April 2020.

EGE Haina, one of the largest utilities in the Dominican Republic, has contracted Wärtsilä to convert the Quisqueya 2 power plant to natural gas operation. The 215 MW Flexicycle plant, powered by twelve 50DF dual-fuel engines, used to run heavy fuel oil (HFO).

Northern German utility HanseWerk Natur has chosen INNIO, the Jenbacher engines maker, to install and commission a new gas-fired combined heat and power (CHP) unit at its district heating power plant near Segeberg, Schleswig-Holstein. Efficiency of the revamped CHP now exceeds 92%.

Britain’s prime manufacturer Rolls-Royce and VPower Group have signed a large deal for delivery of MTU gas gensets to China. Under the contract, Rolls-Royce will supply over 200 MTU Series-4000 gensets with a total power output of 430 MW, starting from October 2019.

C-Energy, an independent Czech power producer, has become the first user of Roll-Royce’s new medium-speed B36:45V20 gas engine at a cogeneration plant in Tabor, some 100km southeast of Prague. Both B36:45V20 engines were manufactured at Bergen Engines' facilities in Norway.

Austria-based INNIO, formerly part of GE Power, has supplied another four Jenbacher J320 gas engines to China Water Industry Group in Guangdong province, bringing the total number of installed engines to 104 units. China Water uses the J320 engines in landfills to generate energy from waste.

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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.