Projects & Finance

Profitability of new-build gas fired power plants in Germany hinges on selling district heating; hence dispatch of two projected combined heat and power (CHP) plants in Cologne and Düsseldorf will be driven by heat rather than power production, operators confirm.

E.ON has bought Verbund's stake in the Turkish utility Enerjisa in a move to gain access to power generation capacity and electricity distribution in the fast-growing Turkish energy market. The transaction will provide E.ON with an platform for growth beyond its existing European markets,  E.ON chief executive Johannes Teyssen said today.

Joint venture partners E.ON and Brazil's MPX are fast-tracking a gas generation project at Maranhão under a joint venture set to realise a project pipeline of 10,000 MW of new power generation capacity in Brazil and Chile. "We believe the natural gas projects at Maranhão, as well as wind farms at Rio Grande do Norte, have a big potential for development in the coming years," MPX representative Carla Assemany told Gas to Power Journal.

German regional utility RheinEnergie has taken the final investment decision (FID) to spend around 350 million euros on building a 450 MW combined-cycle, gas-fired power plant in Cologne Niehl.

Entergy Corp, a US-based integrated energy company, has increased its overall power generation capacity by 1,070 MW through the purchase of two gas-fired plants in Mississippi and Arkansas.

Gazprom, the Russian gas export monopoly, is reviving plans to build a power plant in northeast Germany to increase gas sales to its biggest export market via the Nord Stream pipeline.

Louisiana Generating, a wholly owned subsidiary of NRG Energy, Inc., will convert one of the three units at the Big Cajun II Electrical Generating Station from coal to natural gas in compliance with tightened environmental requirements.

Centrax Gas Turbine technicians from the UK are preparing to install and commission 17 generating set packages to power an expansion of production at three major oil fields in Russia.

Pursuing a strategy of integrated gas use, OMV aims to operate its 870 MW Samsun combined-cycle power plant project in Turkey in the long-term on 'equity gas', similar to the new Brazi plant in Romania which runs 100% on gas produced by the company's upstream arm, Hans-Peter Floren, OMV board member responsible for Gas & Power, said in London today.

Siemens has started the first of three H-Class gas turbines at Florida Power & Light Company's (FPL) Cape Canaveral Next Generation Clean Energy Center in Port St. John in the US state of Florida.

Swiss utility Alpiq will divest its planned Havelland gas-fired power plant (400 MW) to EDF Deutschland as part of a restructuring programme to reduce company debt, a spokesman confirmed today.

Turkey's largest power producer Elektrik Üretim A.Ş. (EÜAŞ) has awarded a contract to Alstom Power for the repair, overhaul and rewind of the steam turbine generator of the Afşin-Elbistan A thermal power plant unit 3.

Tokyo Gas is expanding its power generation capacity as Japan's energy mix shifts away from nuclear towards gas generation, Yasushi Sakakibara, Tokyo Gas' deputy general manager for LNG contracts, has told Gas to Power Journal.

Tokyo Gas plans to start-up a third gas-fired 400 MW unit at its Yokohama power plant in 2015.

UAE-based Dolphin Energy has awarded a $250 million contract to Larsen & Toubro (L&T) to install three new Rolls Royce Trent gas turbine compressors to upgrade the gas processing plant at Ras Laffan by end-2014.

EDF Energy has pushed back the date to start commercial operations of unit 3 at its new British 1,300 megawatt West Burton gas-fired combined-cycle power plant to early 2013, dismissing plans to fully commission the entire plant before the end of this year.

Page 129 of 151

News in Brief

MHI-MME to take over turbocharger production

Sept 20 – Mitsubishi Hitachi Power Systems will no longer produce MET turbochargers, the standard worldwide exhaust gas turbochargers used in stationary engines. Starting from January 1, 2020, these devises will be produced by Mitsubishi Heavy Industries Marine Machinery & Equipment (MHI-MME) instead.

Japan starts electricity futures trading

Sept 19 – Tokyo Commodity Exchange (TOCOM) has launched trading in electricity futures to advance price competition in Japan’s liberalized energy market. The East Area peakload electricity contract for October delivery first traded at 10.9 Yen per kWh, lower than the standard price of 11 Yen set by TOCOM in advance.

Duke to reduce rates in 2020

Sept 18 – Duke Energy Florida (DEF) customers will see lower bills in 2020. The utility filed a proposal with the Florida Public Service Commission to reduce rates for electricity and gas by more than 3% while adding more solar power and making grid improvements.

Myanmar approves three power projects

Sept 17 – Myanmar’s Ministry of Electricity and Energy has given the green light to plans for a 1,230 MW gas-fired power plant in Kanpauk, Taninthayi region, a 377 MW gas-fired unit in Ahlon, Yangon region and a 1,390 MW thermal plant in Milaunggyine in Ayeyawady region. The conflict-ridden country is currently producing electricity from 5,600 MW installed capacity, derived both from state- private-owned power stations.

Bonny Train-7 to cost $6.5bn

Sept 16 – Nigeria LNG is preparing to add a seventh processing train to Bonny LNG, bringing total capacity from 22 million tons per annum (mtpa) to 30 mtpa. Estimated to cost $6.5 billion, Bonny Train-6 will include a new liquefaction unit, a storage and a condensate tank as well as three gas turbine generators.

Schneider to complete L&T takeover by early 2020

Sept 13 – Venturing into India, Schneider Electric hopes to finalise the Rs 14,000 crore acquisition of Larsen & Toubro's electrical and automation business by early 2020. After the transaction is completed, Schneider will have a 65% stake in L&T, while the remainder will be held by Temasek.

MHI to advice China on energy conservation

Sept 12 – Mitsubishi Heavy Industries Thermal Systems, part of MHI, has set up a joint venture withan affiliate of State Grid Corporation of China (SGCC) to perform technical consulting for energy conservation projects in China. The focus of SGCC lies on building new decentralized power stations, biomass-derived power gensets and energy saving solutions.

Tender extended

Sept 11 – Turkmengas has extended a tender for the overhaul of the gas turbine engines of the NK-12ST and NK-14ST brands. Bidders need to pay to receive the tender documents, and then submit a written application to Turkmenistan’s state gas company.

Gas power units to buffer Germany’s coal exit

Sept 10 – Electricity output of Germany’s fleet of gas-fired power plants has risen to a over 13,5 billion kilowatt-hours in the three months from June to August, Fraunhofer ISE figures show. These productivity gains put CCGTs in pole position to balance supply swings in connection with the German coal exit.

Power of Siberia gas flows to start on Dec 1

Sept 9 – Russian gas supplies to China via the eastern route are going to start on December 1, 2019, Gazprom chairman Alexey Miller told his counterpart at CNPC in Beijing. The huge Chayandinskoye field, containing some 1.2 trillion cbm of gas, had already been connected to the 38 Bcm per year ‘Power of Siberia’ gas pipeline in August.

Hurricane Dorian causes havoc in the Bahamas

Sept 6 – In the aftermath of Hurricane Doran, a Category 5 storm, Bahamas Power and Light has said there is a total blackout in New Providence, the most populous island of the archipelago. Dorian made landfall twice on Sunday, ripping off roofs and electricity lines. In most parts, electricity has not been restored.

LNG cargoes via Bab-el Mandeb decrease

Aug 30 – Northbound LNG shipments via Bab el-Mandeb, a sea route chokepoint between the Horn of Africa and the Middle East, have fallen over the past three years as Egypt imports less natural gas from the Persian Gulf. In 2015 and 2016, both Jordan and Egypt imported up to 1.4 Bcf/d of LNG into Red Sea ports but these shipments fell sharply following the development of large gas finds in the Mediterranean.

Hokuriku Electric buys LNG cargo

Aug 29 – Japanese utility Hokuriku Electric has purchased an LNG cargo for delivery in November as soaring temperatures drew down gas in storage for the autumn. The cargo is understood to be scheduled for delivery in the second half of November from Malaysia’s Petronas and may well be destined for Hokuriku Electric’s first LNG-fired power generation unit,  the Toyama Shinko plant.

Technip spins off LNG activities

Aug 28 – TechnipFMC, has decided to spin off its European-based engineering and construction operations into a separate business, leaving the American half of the firm as an equipment supplier to the oil and gas sector. The split is due to be completed in the first half of 2020.

FLNG power market to top $930m by 2023

Aug 27 – The global market for floating LNG power vessel is projected to reach $ 931.6 million by 2023, up from $ 860.1 million seen last year, according to ReportsnReports. Major vendors of FLNG power vessels are Siemens, MAN, Wärtsilä, Caterpilar and GE which are targeting to use the technology to supply decentralized power to island nations in Southeast Asia and along the coast of sub-Saharan Africa and the Americas.

EIA monitors grid hourly

Aug 26 – The U.S. Energy Information Administration (EIA) has launched a beta release of its hourly electric grid monitor. The enhanced version analyses hourly generation by energy source and hourly sub-regional demand for certain balancing authorities in the Lower 48 states.

Hiroshima waste-to-energy plant gets upgrade

Aug 23 – Mitsubishi Heavy Industries (MHI) has been chosen to upgrade and refurbish the combustion facilities at a waste to energy plant in Hiroshima. The Naka plant in Minamiyoshijima, Naka-ku, has a total waste treatment capacity of 600 tonnes per day and generates 15.2 MW of electricity to power the equipment in the factory, while selling the remainder to the grid.