Projects & Finance

ABB, the world's largest producer of power-distribution equipment, has won an order worth around $75 million from Iraq's Ministry of Electricity to connect a new 500 MW gas-fired power plant to the 400/132 kV (kilovolt) Amara substation.

U.K.-based Diageo plc has once again tapped Clarke Energy, a distributor of GE's Jenbacher gas engines, to install turnkey combined heat and power (CHP) plants at its Guinness breweries in Nigeria. GE said the ecomagination-approved Jenbacher J620 CHP units are scheduled to be fully installed, tested and in operation by the first quarter of 2013.

Saudi Electricity Company (SEC), one of the largest utility worldwide in terms of installed power generation capacity, has contracted Shaw Group to implement a fleetwide services program for its oil and gas-fired power plants. Shaw did not disclose the contract value but said it will be included in the orderbook for Q4 2012.

Rolls-Royce, the global power systems company, has won a contract to supply two industrial Trent 60 gas turbines to power Lukoil's Stavrolen Power Plant in Budennovsk, Russia. The equipment will be manufactured at Rolls-Royce facilities in Montreal, Canada, and Mount Vernon, U.S., ready for shipment from 3Q 2012 and entry into commercial service in 4Q 2013.

MAN Diesel & Turbo has been selected to build an 88 megawatt diesel power plant in Thika City, near Kenya's capital Nairobi. Construction works at the site have started and MAN Diesel & Turbo said it expects the plant to start operations in 2013.

Black & Veatch has won several contracts from Harbin Electric Company Ltd to deliver three combined cycle power plants in China. "We are entering a golden age for natural gas powered plants and we're seeing accelerated advances in China," Dr Suqing Wang, senior project manager for Black & Veatch's global energy business commented on the deal.

Austria's most efficient thermal power plant has started operations after Siemens Energy officially handed over the Mellach combined-cycle power plant (CCPP) to the Austrian utility Verbund Thermal Power on Friday. The plant's record district heating output of 400 MWth facilitates that more than 80 percent of the energy in the fuel is put to effective use, according to Siemens Energy.

Braden, an operating division of Global Power Equipment Group, has won a contract worth 8 million Euros to provide gas turbine exhaust systems to Siemens Energy for the Khormala phase I Combined Cycle Power Plant (CCPP).

Gama Energji is in talks with two potential partners about setting up a tolling agreement to market the electricity generated at its Kirikkale CCGT project with the aim of reducing financing costs.
"We want to have a tolling accord in place - as a hedging instrument - before we close project financing for Kirikkale, as it could give us a reduction in interest of about 150 basis points," Orkun Eyilik, Commercial Manager, Gama Energji told 'Gas to Power Journal' today.

Financing for new gas-fired power plant is getting tight in Turkey and fewer projects will come to fruition. "Combined-cycle gas turbine (CCGTs)  plants with less than 50% operational efficiency will not get financed in Turkey" Emre Hatem, Manager, Project and Acquisition Finance, Garanti Bank said at a conference organised by 'Gas to Power Journal' in Istanbul today. He forecast a reduction of the share of gas in Turkey's energy mix from currently 45% to 25% by 2020.

General Electric (GE) will supply the Japanes steel producer JFE Steel Co. with a heavy duty Frame 9E gas turbine system for a steel gas-to-energy recovery project at its East Japan Iron Works in Chiba City, east of Tokyo. GE said today it will start delivering the equipment to Japan in December 2013.

Karoo Sustainable Energy (KSE) has won the 2012 Africa Competitive Strategy Leadership award after it negotiated the first Power Purchase Agreement (PPA) with Botswana Power Corporation (BPC) as a step towards structuring the financing of a 180 MW gas-fired power plant project.

Sasol New Energy plans to start operations of its gas engine power plant project in Sasolbury, South Africa, before the end of the year. The 140 MW plant is currently under construction and is set to run on 18 Wärtsilä 20V34SG generating units, fuelled by natural gas imported from Mozambique.

Investment into new power generation capacity in the U.K. has ground to a halt as utilities and banks lack certainty about the U.K.'s future market design. "The uncertainty surrounding the Electricity Market Reform (EMR) has put a complete block on financing," Alan White, Head of Conventional Energy at Lloyds Bank Corporate Markets told delegates at PowerGen2012.

India's Reliance Power, the country's second-largest power utility by market value after state-run NTPC, has synchronized two of the gas turbines in India's largest gas-based project – the Samalkot Power Project. The 2,400 MW plant will be equipped with six gas turbines of 240 MW each. Two others have been tested at Full Speed No Load (FSNL), Reliance Power confirmed.

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News in Brief

SPIG wins contract for Al Dur Phase II

Sept 23 – Italy-based SPIG, part of Babcock & Wilcox Enterprises, has won a contract to provide seawater cooling tower system to SEPCOIII for the Al Dur Phase II project in Bahrain. The Al Dur Phase II is a combined-cycle gas-turbine plant to generate 1,500 MW of electricity and approximately 50 million gallons fresh water per day.

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.