Projects & Finance

Myanmar's government has abandoned plans to build a 4,000 MW coal-fired power plant in Dawai and is supporting gas-to-power projects instead to meet electricity demand in the country's special economic zone. "We will have a 500 MW gas turbine instead ... we will be able to get enough gas by about 2015," Myanmar's union minister U Khin Maung Soe said today.

Qatar's budget for 2011 and 2012 is "expansionary", with government spending on utilities forecast to double the $10bn spent over last decade. A special emphasis will be placed on infrastructure spending, including power generation capacity, Belton Financial forecasts with reference to the double digit growth rate of Qatar's electricity consumption.

Korea Western Power Co. (KOWEPO) has selected GE technology for the first integrated gasification combined-cycle (IGCC) power plant to be built in Taean, South Korea. The Taean IGCC project will be the first commercial gasification combined-cycle plant to be developed under South Korea's Renewable Energy Portfolio Standard (RPS).

E.ON and Brazil's MPX Energia have entered an agreement to create a 50/50 joint venture with a view to developing power generation and related supply and trading activities in Brazil. As part of the deal, E.ON will get a 10% share of Brazil's MPX Energia by investing R$ 850 million (€350 million) in MPX forthcoming move to raise R$ 1,000,000,063.00 (€ 423 million) through a capital increase.

Wärtsilä Cooperation, a supplier of flexible power plant solutions, has been awarded two contracts to deliver power plant generation equipment to two power plants in Bangladesh. "The orders are included in the fourth quarter 2011 order book," the company said.

Israel's Dalia Energy confirmed today it entered a $5 billion gas supply agreement with Delek Drilling and its partners to purchase natural gas produced at Israel's Tamar gas field over a period of 17 years. The gas supplied under the deal will be solely used for power generation, a Dalia Energy representative told 'Gas-to-Power Journal'.

Electricity of Vietnam (EVN) plants to invest in nine power generation projects in 2012 in an effort to boost domestic electricity supply to match rising electricity demand in the south-east Asian country.

India's TATA Power Company Limited (TPCL) will use natural gas, not coal, as a fuel to operate its proposed 2,000 MW power plant, located near Naraj Marthapur, Barang. TPCL decided to change the technology of its proposed plant towards using more environmentally friendly natural gas, following a row with green activists over potential fly ash generation from the proposed coal-fired plant on the wildlife in the Chandaka Dampada sanctuary.

Tokyo Electric Power (Tepco) said it will increase the power generation capacity of gas turbines at its Chiba power plant, located close to Tokyo. The move is part of efforts to boost the company's overall power generation capacity from gas-fired plants to counterbalance the loss in electricity generated from nuclear reactors after the Fukushima nuclear crisis.

Russia's Gazprom and the German utility RWE have ended negotiations on a potential joint venture (JV) for building and operating gas-fired power plants in Germany, the Netherlands and in the U.K., RWE confirmed. "We were unfortunately not able to agree on a framework for co-operation which would be sustainable for both parties," Jürgen Grossmann, RWE chief executive commented on the end of JV talks today.

Russia's gas export monopoly Gazprom is considering building gas-fired power plants in the southern German state of Bavaria, following the ratification of a roadmap for cooperation in power generation and gas supply. "The document sets out the intentions of Gazprom and the Federal State of Bavaria to cooperate on power production in Bavaria," Gazprom said today.

General Electric (GE) will upgrade two 9B gas turbines to GE 9E gas turbines in an E.ON power plant in Trapani, located in the west of the Italian island of Sicily. E.ON selected GE to upgrade Trapani's two gas turbine trains from 85 MW and 89 MW, respectively, to 107.8 MWs per unit.

China Machinery Engineering Corp (CMEC) has won a $1.19 billion contract to build a 1,260-MW gas-fired power station in Iraq. CMEC will construct the plant over a timeframe of 45 month in Salahuddin governorate north of Bagdhad, an Iraqi electricity ministery spokesman told local reporters during the signing ceremony in Baghdad on Thursday.

General Electric's LM6000 aeroderivative gas turbine technology was chosen for an expansion of a Russian power plant to meet growing electricity demand of the city of Yuzhno-Sakhalinsk, located on Sakhalin Island in eastern Russia.

China Gas has rejected a bid from China Petroleum & Chemical Corporation (Sinopec) and ENN Energy, saying the offer of $2 billion in cash to buy the entire company would not fully reflect its value. Sinopec and the Chinese gas distributor ENN Energy had made a joint bid of HK$3.50 ($0.45) a share for the Hong Kong-based gas distributor China Gas, they said in a regulatory filing to the Hong Kong stock exchange .

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News in Brief

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.

China eases ban on coal power

Aug 22 – The Chinese National Energy Administration (NEA) has allowed 11 provinces to resume building coal power plants in a move that lies bare the country’s dependency on thermal coal even after several hundred billion dollars were invested cleaner energy sources, notable wind, solar and natural gas. Areas earmarked by NEA for new coal power plants include Qinghai, Chongqing, Guangxi, Guangdong, Yunnan, Guizhou and Henan.

Blackout after Didcot demolition

Aug 21 – Yet another blackout hit thousands of British households early Sunday after the demolition of cooling towers at the disused Didcot-A power station in Oxfordshire. Moments after the explosion at 7am to bring down the cooling towers some nearby electricity poles and overhead transmission lines caught fire, causing a sudden loss of electricity that lasted for one hour and twenty minutes.

Fuel cell vehicle market gathers speed

Aug 20 – Sales revenue from fuel cell vehicles will soar to $255.2 billion in 2032, up from just $400 million last year, driven by fast growth in China and wider Asia. Hydrogen fuel cells achieve an energy conversion efficiency of 50% to 60% amid zero emissions and a low maintenance cost thanks to the engine’s modular design.

Tohoku Electric tenders for LNG cargo

Aug 19 – Tohoku Electric Power, the fourth-largest electric utility in Japan in terms of revenue behind Tepco, Kepco and Chubu, is understood to be seeking an LNG cargo for delivery in September. A tender process is ongoing.

Cost for decarbonizing industry tops $21tr

Aug 16 – Total costs to fully decarbonize the four most polluting industries – cement, steel, ammonia and ethylene – are estimated to amount to $21 trillion between today and 2050. McKinsey said this could be lowered to about $11 trillion if zero-carbon electricity prices come down further compared to fossil fuel prices. In this event, industry could switch to using electricity for heating processes.

Co-firing Braskem plant with hydrogen

Aug 15 – Siemens is making fossil energy greener at the Braskem onsite power plant in Brazil. In this modernization project two SGT-600 gas turbines are co-fired up to 60% with hydrogen, enhancing efficiency for the production process of the adjacent the petrochemical complex.

Canada's CO2 tax to hit CCGTs

Aug 5 – Change in Canada’s carbon emissions tax regulation for new power plants has changed to also affect cleaner-burning, gas combined-cycle power stations starting from 2021. The move could significantly lower the profitability of gas generation and could prompt SaskPower reconsider its planned Moose Jaw gas power station.

GE CFO steps down

Aug 2 – Jamie S. Miller, General Electric’s chief financial officer, has decided to quit after two years in the job and 11 years with the company. Having overseen GE’s fiscal activities during a period of intense restructuring, Miller will remain in office while the GE board is looking for a successor.

Siemens HR boss quits

Aug 1 – Janina Kugel, Siemens chief HR officer, is leaving the company amid an apparently scattered working relationship and stark personal differences with CEO Joe Kaeser. Her contract will expire by mutual agreement on January 31, 2020.

ABB standardizes eBus chargers

July 31 – Zurich-based ABB, a member of the ASSURED consortium, is working on standardizing the specifications for automatic charging of heavy vehicles. The aim is to drive down the total cost of ownership for electric fleet operators, helping increase adoption of eBuses and eTrucks. Conformance and interoperability tests will be carried out in Q4-2019.

U.S. Senate helps fund EV charging stations

July 30 – The need for expanded electric vehicle charging infrastructure is greater than expected given that there had been over 1.75 million electric vehicles (EV) in North America at the end of 2018, a nearly 60% increase from the previous year. To help fund additional charging stations, among other things, the U.S. Senate approved the $287 billion America’s Transportation Infrastructure Act (ATIA).

PNOC, Lloyds to develop merchant LNG-to-Power projects

July 29 – Philippine National Oil Co. (PNOC) has signed a Memorandum of Understanding (MoU) with Lloyds Energy to develop a 1,200 MW LNG-fuelled power plant in partnership with Mitsubishi. Dubai-based Lloyds Energy is looking at ways to develop integrated LNG import facilities and gas power plants on a merchant basis in Bataan and Batangas provinces.

Macquarie finances CCGT in Mexico

July 26 – Macquarie Capital has chosen Credit Agricole, Natixis and SMBC to co-finance a $380 million combined-cycle gas power plant. The 560 MW plant is designated to be built in San Louis Potosi, a city in central Mexico.

Naturgy cashes in on gas network

July 25 – Spanish gas utility Naturgy has posted a 7% rise in core earnings for the first half of the year due to strong gains from its gas network business that helped offset falling revenues from power generation and slimmer LNG margins.

French court rejects appeal against Total CCGT

July 24 – Judges at an appeal court in Nantes have thrown out an appeal by environmentalist against Total’s planned Landivisiau combined-cycle gas power plant in Brittany. The 440 MW project, initiated by Direct Energy which was since acquired by Total, is over two years behind schedule. The French grid operator RTE has singled out the Landivisiau CCGT as “critical” in guaranteeing supply security in winter 2020/21 due to the planned shutdown of four coal power plants.

U.S. gas production falls in wake of ‘Barry’

July 23 – Shut-ins related to Hurricane Barry have scaled back U.S. gas production by 1.6 billion cubic feet per day, compared to last week, while power sector gas demand rose by just over 2.0 bcf/d. Consequently, there is significantly less gas available for storage so the injection rate has halved, according to Energy Aspects figures.