Projects & Finance

Abu Dhabi has given the green light for the construction of a new 1,5000 gas-fired combined cycle power plant in Mirfa on a 'build own and operate basis.

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.

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News in Brief

SaskPower proceeds with Moose Jaw project

Nov 13 – Canadian utility SaskPower has taken a significant step towards realizing a 350 MW gas power plant at Moose Jaw. The project was first proposed in 2017, but in the Canadian federal government June last year introduced new regulations for gas generation coming online after January 1, 2021, which stalled the plans. Having completed its regulatory review, Sask Power was now granted permission to proceed from the municipality of Moose Jaw. Major Fraser Tolmie said “this $700-million investment into the city of Moose Jaw, will ensure we have base-load power in the province of Saskatchewan and to maintain our power independence.”

Sembcorp powers up first BESS unit in the UK

Nov 12 – Sembcorp Energy UK, part of Singapore-based Sempcorp Group, has started to operate the first 60 MW unit of its battery energy storage system (BESS) fleet, supplied by GE. Combined, the three storage units in Leicestershire and Cheshire will bring Sembcorp Energy UK’s total energy portfolio to 973 MW.

Global gas glut may clear in 2021

Nov 11 – Economics of exporting American liquefied natural gas to Europe no longer add up. With Henry Hub spot prices around $2.7/MMBtu, moving LNG cargoes from the U.S. Gulf Coast to Europe is “not workable,” BP analysts said, indicating that production shut-ins could help clear the massive supply overhang towards the end of 2021.

Gazprom reassures Germany of Ukraine gas transits

Nov 8 – Alexey Miller, chairman of the Gazprom Management Committee, has been trying to reassure the German government commissioner Georg Graf Waldersee that Russia was ready to signing a new transit contract with Naftogaz if both companies mutually waive claims. Before gas flows can proceed, however, Ukraine will have to create an independent gas transmission operator by January 1, 2020.

GE makes gains in wind power

Nov 7 – GE Power is gradually turning away from its loss-making fossil power segment to focus on the fast-growing renewable business. This week, GE struck a deal for its new Haliade-X turbines to be used at Dogger Bank Wind Farms. The three 1.2 GW Dogger Bank projects, situated offshore the UK’s Yorkshire coast, are expected to trigger approximately £9 billion of capital investment between 2020 and 2026.

PetroVietnam eyes LNG-to-Power project

Nov 6 – PetroVietnam has signed an agreement with B.Grimm Power Public Company (BGRIM) to jointly study the development of an integrated LNG import and power generation project. The aim is to build a 3,000 MW gas-fuelled power plant and an adjacent LNG import terminal. The location of the project has not been disclosed.

ABB launches ‘Smart City’

Nov 5 – Electrification specialists of the Swiss manufacturer ABB have designed an interactive ‘Smart City’ that contains smart buildings, e-mobility, energy management and data centers. The use of smart technologies and digitalization are encouraged by the United Nations as a way to help decarbonize cities around the world.

Gazprom, BASF cooperate on sulfur separation

Nov 4 – The Russian major Gazprom and the German chemical company BASF have agreed to devise a comprehensive solution for separation of sulfur from natural gas. The aim is to  enhance eco-efficiency of the Astrakhan gas processing plant and improve operational efficiency of BASF’s amine gas treatment units at the Orenburg gas-fired power plant.

Germany’s emission fall ‘markedly’

Nov 1 – Germany is headed for second consecutive year of substantial reductions in carbon emissions, amid a sharp drop in coal-burn in the power sector and an overall decline in energy use in 2019. If this trend continues, the country could get much closer to its 2020 climate target than widely anticipated.

Exmar to refinance Tango FLNG

Oct 31 – Exmar, the Belgian shipping company, is trying to refinance the Tango FLNG vessel, moored offshore Argentina on behalf of YPF. The aim is to generate around $60 million in additional capital, Exmar said, suggesting a deal will likely be struck in the first months of 2020.

Petronet doubles net profit

Oct 30 – Indian LNG importer Petronet has nearly doubled its net profits in the third quarter although revenues fell by 13%. Net profits came in at 1,089 crore rupees ($153.6m), an increase of 90% on the same period in 2018 as the company benefited from India’s lower corporate tax rates. Third-quarter revenues, in contrast, fell to 9,449 crore rupees ($1.33 billion).

Wildfires spread around LA

Oct 29 – Thousands of Los Angeles residents have been evacuated as wildfires spread fast around the metropolis and power outages brought life close to a standstill. The risk of fires caused by overland transmission lines prompted Pacific Gas & Electric (PG&E) to prolong precautionary blackouts that could last up to three days.

Dominion embraces solar & storage

Oct 28 – Dominion Energy South Carolina has signed contracts for more than 1,000 MW of solar capacity. About half of that capacity has entered service. To complement intermittent solar energy supply, Dominion earlier announced several energy storage projects.

Wärtsilä downgrades outlook for its energy business

Oct 25 – Wärtsilä has downgraded the outlook of its Energy Business from “soft” to “weak” amid low equipment demand, although the its services activity “remains sound.” The current order book for 2019 deliveries is 1,708 million Euros, comprised mainly of equipment deliveries, Wärtsilä stated today when posting mixed Q3 results. Looking ahead, the company said its operating result for full-year 2019 will be approximately 100 million Euros lower than in the 2018 result of 577 million Euros.

Siemens names new CIO

Oct 24 – Hanna Hennig will be appointed as new Chief Information Officer (CIO) at Siemens starting from January 2020. The change at Siemens’ IT organization supports the execution of the company’s Vision 2020+.

GE to service Austrian CHP

Oct 23 – Sappi Austria, provider of sustainable woodfibre products, has handed GE Power a multi-year service agreement to for its 42 MW onsite power plant.  GE will carry out a cross-fleet turbine and combustor upgrade to help Sappi reduce costs through a maintenance interval extension and better plant performance.

Brookfield invest $2bn in Cove Point LNG

Oct 22 – Brookfield Asset Management, an investor in energy infrastructure and power storage, has agreed to take a 25% stake in Cove Point LNG for just over $2 billion in cash. The alternative investor also owns assets in hydro (7.9 GW), wind (4.9 GW), solar (1.7 GW), distributed generation (400 MW) and energy storage (2.7 GW).