Projects & Finance

Siemens and the Nigerian company Scanpower have signed a technical partnership agreement for the construction of a 1,600 MW gas turbine power station at Lekki in Lagos state. The German engineering giant also announced it entered a strategic partnership with the Nigerian Federal Ministry of Power to support the financing of power plant projects "on a case-by-case basis".

Electricity Supply Board (ESB), Ireland's premier utility, plans to spend £750 million (US$1,207 million) to build a new 1,500 MW gas fired power plant in Britain. Operational start of the plant is scheduled for 2018, an EBS spokesman confirmed today.

Saudi Aramco has commissioned International Power and GDF SUEZ (IPR-GDF Suez) to expand the Tihama power plant sites, located in Saudi Arabia, by 532 MW. Long-term offtake contracts through to 2026 have been signed for this expansion, the two companies said today.

Investments in new combined cycle power plants  (CCGTs) in Germany are "highly problematic" without the introduction of capacity remuneration mechanisms as the internal rate of return (IRR) for such projects is close to zero, Reinhard Rümler, senior manager, energy advisory at PwC told Gas-to-Power Journal.

Operators of gas-fired power plants in Spain are confronted with slower repayments of loans taken out to build their assets as the run-time hours of plants are curtailed by preferential grid feed-in of renewable energy.

ABB, a power and automation technology group, will invest about $50 million to build new facilities in India to manufacture high-voltage products and transformers. "This decision supports our business philosophy to locate production facilities closer to markets," Bernhard Jucker, head of ABB's Power Products division said today.

Tianjin Electric Power Construction Company (TEPC), the project contractor of the Huaneng Yingkou Cogeneration project, is forging ahead with construction works at the plant, located in Beijing. TECP is close to finalising building the boiler for the plant, according to Huaneng Power International.

NRG Energy subsidiary Louisiana Generating  has abandoned plans to convert the 230 MW Big Cajun-I gas-fired power plant to coal generation. Declining natural gas prices prompted the operator to stick to gas-to-power as the more economic option of generating electricity.

Datang International Power Generation and Shaoxing Thermal Power Generation Company have joined forces to build the Jiangbin gas-fired power plant, located in Binhai New Town, southwest of Shanghai. The Shaoxing Jiangbin power plant project involves the construction of four gas-steam cycle thermal power cogeneration units. In the first project phase, two 452 MW generating units with a total installed capacity of 904 MW will be built, the operators confirmed today.

Datang International Power Generation, the Hong Kong Stock Exchange-listed entity of state-owned utility China Datang, has received the regulatory green light to build a gas-fired power project in Beijing.

Abu Dhabi National Energy Company (TAQA) has entered an accord with Mass Global Investments Company Limited (MGIC) to buy 50% stake in a gas-fired plant in Iraq's Kurdish region. Upgrade works are currently effectuated with a view to expanding the plant's existing capacity of 750 MW with an additional 250 MW, TAQA confirmed today. 

GE unit GE Energy Financial Services will auction 225 MWs of bi-directional electricity transfer capacity from its Linden variable frequency transformer (VFT) smart grid project at the intersection of the New York City and PJM power grids. The electricity originates at GE's 900 MW Linden cogeneration power plant, the operator said today.

Page 189 of 202

News in Brief

BelGAS launches new pressure regulator

May 29 – BelGAS has introduced its new P1098 High-Capacity Pressure Reducing Regulator, a large-volume regulator for natural gas, propane and other fuels. The pilot-operated device has a large-area actuator diaphragm, allowing for fast and accurate response to modulating gas flow conditions. It is adaptable for low to extra-high pressure—up to 400 psi main valve inlet.

GE to sell lightning business

May 28 – GE has signed a definitive agreement to sell its lighting business to Savant Systems, a provider of smart homes. CEO H. Lawrence Culp called the divestment “an important step in the transformation of GE into a more focused industrial company.” The transaction is expected to close in mid-2020.

China’s fuel demand recovers

May 27 – The Chinese government has lifted restrictions on private travel since April which pushed up demand for transport fuels. Gasoline demand has recovered particularly fast and is expected to return to last year’s levels by June 2020. Wood Mackenzie estimates gasoline consumption to reach 3.4 million barrels per day (b/d) in the second quarter, down just a 0.8% year on year. Diesel or gasoil demand is expected to reach 3.4 million b/d in Q2 2020, a 3% decline year-on-year. Overall, China’s oil demand is seen rise a “modest” 13.6 million bpd, or 2.3%, in the second half of 2020.

Wärtsilä to retrofit CHP in Spain

May 26 – The Finish engine maker Wärtsilä has bagged an order to supply and install a 34SG gas-fuelled engine generating set for Rofeica Energia's combined heat and power plant in Barcelona, Spain. The installation of the gas engine will allow Rofeica to switch the CHP from heavy fuel oil to gas-fuelled operation, reducing emissions.

New York body rejects William’s plans for gas pipeline expansion

May 21 – New York’s and New Jersey’s state bodies for environmental conservation have rejected Williams’ plans for the Northeast Supply Enhancement project, designed to transport 400 million cubic feet per day of gas from Pennsylvania to New York. The state bodies had already denied wetland permits in 2019, but Williams pipeline subsidiary Transco filed another application with the U.S. Federal Energy Regulatory Commission (FERC), arguing firm services under the project were agreed with UK’s National Grid for customers in New York City districts of Brooklyn, Queens, Staten Island and Long Island.

UK inflation at 4-year low amid falling energy costs

May 20 – The rate of inflation in the UK has fallen to a four-year low as the pandemic pushed down global oil and fuel prices which translate into lower wholesale power prices. The consumer price index fell to an annual rate of 0.8% in April, down from 1.5% in March, according to the Office for National Statistics.

Deficit grows in German green energy fund

May 19 – German regional grid operator TransnetBW has warned of a growing shortfall in the country’s fund for green energy sources, financed under the so-called renewable energy (EEG) levy. TransnetBW, the TSO in southwest Germany, said “due to the EEG cost allocations defined for 2020, we anticipate there will be a negative year end bank account balance in the high three-digit million euro range for 2020.”

Spanish gas companies ‘resilient’

May 18 – Spain’s regulated gas companies “should prove to be resilient” to external shocks arising from coronavirus containment measures, Standard & Poor’s analysis finds, calculating with an average drop in EBITBA at less than 3% in 2020. A new remuneration framework for 2021-2026, recently enacted by the Spanish government, provides enhanced visibility rated grid operators amid the pandemic.

German electricity prices second highest in EU

May 15 – Taxes and the renewable energy surcharge have pushed up Germany’s household electricity prices to the second highest level in Europe, topped only by prices in Denmark. While Danish households paid 29.2 Euros per 100 kWh on average in the second half of 2019, prices in Germany averaged 28.7 Euros, according to the EU statistics office Eurostat.

Calpine’s Q1 earnings fall

May 14 – Calpine, America’s largest generator of electricity from gas and geothermal, has reported a net income of $128 million for the first quarter of 2020, down from $175 million in the prior year period. Lower commodity margins and unfavourable change in income taxes were partially offset by earnings from hedge positions for the three month ending March 31.

Siemens to supply hybrid plant in the Philippines

May 13 – Berkley Energy has contracted Siemens Energy to build a hybrid power project on the island of Mindoro in the Philippines. The project links 16 MW wind power with battery storage, stabilizing energy supply in a remote location with a weak link to the grid and reducing its dependence on diesel.

U.S. energy emissions fall

May 12 – Energy-related carbon emissions in the United States have fallen more than energy consumption, down 2.8% over the course of last year to 5,130 million metric tons (MMmt). Power sector emissions were down 145 MMmt, due to a switch from coal to gas and renewables. In April 2020, emissions experienced another unprecedented fall in due to Covid-19 lockdowns.

MAN expands Omincare concept

March 11 – MAN Energy Solutions’ service brand has extended its ‘PrimeServ Omnicare’ concept from turbomachinery to the marine and power segments. The one-stop service solution is now also applicable for maintenance of third-party machinery, including engines, turbochargers and related auxiliaries.

MIVOLT launches cooling fluid

May 7 – MIVOLT, part of the British company M&I Materials, has launched two specialist fluids to improve cooling efficiency at data centres. The electricity demand of data centres is forecast to rise to 20% of global supply to accommodate lifestyle changes like 5G internet network, autonomous vehicles and bitcoin mining.

Germany adds 1,300 km to power grid

May 6 – Germany has made progress in expanding its strained power grid. According to the Federal Network Agency (BNetzA), over 1,300 kilometres of new power transmission lines have been built and another 830km approved. A further 3,600km are planned to be built by 2030 to alleviate grid bottlenecks and allow transporting rising volumes of offshore wind southbound.

 

 

 

Oman nationalizes first IPP

May 5 – Manah Power, the first privately-run Independent Power Project (IPP) in Oman, has been transferred to state ownership, following the expiry of a Power Purchase Agreement (PPA) between United Power Company and state-owned OPWP. Manah IPP was developed under Build-Own-Operate-Transfer (BOOT) model, which stipulates an eventual nationalization of the assets – a feature absent in subsequent IPPs.

U.S inventories at record highs

May 4 – Inventories for crude oil and natural gas have reached a new record high in the United States, as fuel demand declines both for transport and the electric power sector. From March 13 – when a national emergency was declared due to the Covid-19 pandemic – to April 24, U.S. commercial crude oil inventories increased by 74 million barrels, or 16%, according to government figures. The acute scarcity of crude storage on April 20 led to a sell-off of future contracts at negative prices.