Projects & Finance

Pratt & Whitney's aero-derivative industrial gas turbines can operate open cycle with fast start-up to back up renewable wind energy power drop-off, while simultaneously providing reactive power to stabilize the grid, Swift Tarbell, area director at Pratt & Whitney Power Systems said.

Siemens, the German engineering company, has received an order worth over US$1 billion to supply key components for the IPP Qurayyah combined cycle power plant (CCPP) in the Kingdom of Saudi Arabia. Commissioning of the total of six blocks is scheduled for 2014, Siemens said today.

Shanxi Ruiguang Heat & Power Company has started commercial operations of the second unit of its 2x300 MW Ruiguang power plant, located in China's Jiangsu province.

American Electric Power (AEP) has started commercial operation of the 580 MW combined-cycle gas power plant in Dresden, near Ohio, U.S. The operational start-up of the Dresden plant is "another step in the transformation of AEP's generating fleet", said Nicholas K. Akins, AEP president and CEO.

GE Energy plans to complete works to upgrade two 30-year-old 9B Gas Turbines at an Italian power plant in Trapani to GE 9E Gas Turbines in 2013, the company's Italian division told Gas-to-Power Journal today.

Utilities in Europe currently have access to a lot of natural gas, but it is cheaper for them to use their coal-fired plants for generating electricity, Albrecht Müller von Blumencron, director project finance Bayern LB said today. Nonetheless, he foresees a "brighter future" for the gas-to-power sector in Europe in the mid-term, provided utilities will have to more flexible gas supply.

The U.K. will face a capacity gap at the end of this decade. Investors in new flexible gas-fired power generation capacity will have to find a way to handle the risks posed by ambitious renewable targets and uncertainties surrounding the implications of the Energy Market Reform, Clare Duffy, General Manager, ESB International, said in London today.

Uncertainty about the liberalization process of the Turkish natural gas market may hamper investors to commit to realizing large gas-fired power plant projects in Turkey, Robert Selim Hill, researcher at Energy Brainpool said today. "For the near future it will especially be difficult to plan and realize large natural gas power plant projects," he told Gas-to-Power Journal.

TLT-Bancock India said today it will open a new manufacturing facility near Bangalore, in April 2012. The components produced at the facility will be sold to power producers in the growing Indian market. "When production begins in a few months, TLT-Babcock will have fully arrived in support of India's electric power expansion and general growth plans," David Klossner, President of TLT-Babcock said.

The European Investment Bank (EIB) is supporting a 216 MW gas-fired power plant project in Cameroon with 29.5 million euro in long-term funding. Kribi will be the first gas-to-power plant in Cameroon.

Fortum, a Finland utility with power generation assets in the Nordic and Baltic countries, Poland and Russia, is at the brink of commissioning a biomass-fired Combined Heat and Power (CHP) plant in Järvenpää in early 2013. The proposed 130 GWh plant will run on biomass as a replacement for natural gas.

Wartsila, the Finnish producer of lifecycle power solutions for the marine and energy markets, today posted a 15% decrease in net sales to EUR 1,238 million, down from EUR 1,462 in the previous quarter, mainly due to a backlog in power plant deliveries. "After a very strong fourth quarter, we managed to fulfill our order intake target and reached 11.1% profitability. Due mainly to delayed power plant deliveries, our net sales decreased slightly more than expected," Wartsila's president and CEO, Bjorn Rosengren said.

Australia's ERM Power confirmed it has received development approval to build and operate a 500MW gas-fired power plant at Braemar, around 240 kilometres west of Brisbane. "The next stage in the development of the Braemar 4 project is finalising fuel supply and electricity take-off agreements, which will allow us to make a final investment decision on this development," Philip Baker, managing director and CEO at ERM Power said.

In North-West Europe, investments in new gas-fired power plant projects will be in the money post 2018 at the earliest, Thomas Birr, VP corporate development & strategy at RWE Group forecast. "In Turkey and Eastern Europe, where power demand is rising, things are looking better," he said at the Gas-to-Power Europe Forum in Berlin.

If the spark spread stays below 10 Euro/MWh at times of peak electricity demand, building new gas-fired plants in Germany does not make economic sense, Torsten Amelung, senior vice president Trading and Origination at Statkraft Markets said today. "The only way out is ramping down capacity simply by shutting down power stations, until peak electricity prices are sufficiently high to sustain operations of the remaining gas-fired plants," he told Gas-to-Power Journal at the sidelines of a conference in Berlin.

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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.