Projects & Finance

Shell confirmed today it signed a final agreement to form a joint venture (JV) in Iraq with Basrah Gas Company to gather raw gas from three major oil fields. The gas production from these field (Rumaila, Zubair and West Qurna 1) is currently flared in Basrah, a Shell spokesperson told 'Gas-to-Power Journal' today.

Matteo de Zan, head of Enel's industrial development, generation and energy management division said the operational start-up of a gas-fired power plant in Belgium is expected in early 2012. "We are waiting for the plant to start operations in the coming months; the plant is currently in its commissioning stage," he told 'Gas-to-Power Journal' in an interview.

Hyundai Engineering and Construction (HDEC) and Metka are set to build a gas-fired power plant in Basra, Iraq. The 1,500 MW gas-fired plant will be constructed near the southern Iraqi city of Basra in southern Iraq.

Enel, Italy's largest power company, said today the operational start-up of a 400-MW gas-fired power plant in Belgium is expected in early 2012. "We are waiting for the plant to start operations in the coming months; the plant is currently in its commissioning stage," Matteo de Zan, head of Enel's industrial development, generation and energy management division told 'Gas-to-Power Journal' in an interview today.

Start-up of a 100-MW gas-fired 'peaker' plant, located near Santee in California , is imminent, after California Energy Commission (CEC) announced it has started a review and certification process of the 100-MW plant.

Siemens has inaugurated a new gas turbine factory in Charlotte, North Carolina, with a view to expanding its worldwide network of gas turbine manufacturing facilities. The German company has invested more than $350 million in a 42,000 square metre plant in Charlotte, creating 700 new jobs.

"Charlotte is the only Siemens plant that produces gas and steam turbines, as well as generators,” a company representative said. The facility also plays a key role in Siemens’ profitable power plant service business.

Bernard Anne, managing director of Bureau Veritas' (BV) Marine Division has signalled out LNG as one of the shipping sectors where the indicators are good and positive. "I do not see any good markets except for gas markets and consequentially LNG tankers. There are simply too many ships around," Anne said at the annual BV Beaujolais Party in London on Thursday evening.

Alstom, the French engineering giant, did neither confirm nor deny a statement from the Iraqi energy ministry that it has won a $540m contract to construct a 182-MW gas-fired power plant in Iraq. "We are expecting to sign the contract with the Iraqi energy ministry any time soon", an Astom spokesman told Gas-to-Power Journal.

Minera Mexico, a unit of Grupo Mexico, has awarded a contract to Siemens Energy to supply of a 250 MW combined cycle gas turbine (CCGT) power plant. Siemens Energy is signing responsible for the full turnkey supply of the plant, named 'La Caridad II', which includes plant engineering, procurement and construction.

Siemens Energy told Gas-to-Power Journal that the main equipment to be installed at the plant includes an SGT6-5000F gas turbine, an SST-900 steam turbine, an SGEN6-1000A generator, a heat-recovery steam generator, and the complete electrical and SPPA-T3000 in-strumentation & control equipment.

Doosan Heavy Industries, Korea's leading power plant manufacturer, has secured a 513 billion won ($455 million) order to build a power plant in South Korea.

E.ON said it plans to "systematically grow its power generation business" while Q3 results show that net debt stood at EUR34.5 billion at the end of September 2011. Russia remains an important focus of the German energy major.

In Germany, E.ON is planning to start operations of its Datteln-4 power plant in 2013 while the pilot project Irsching-4 is already fully operational, E.ON spokesman Dr. Sebastian Heindrichs, told Gas-to-Power Journal.

The Asian Development Bank (ADB) is providing $170 million in financing to support the construction of a new 1,600 megawatt (MW) natural gas-fired power plant in Thailand. Commercial operation of the plant, located in the Nong Saeng district north of Bangkok, is slated to start by 2014.

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News in Brief

Wärtsilä launches ‘Expertise Centre’ in Singapore

Nov 15 – The Finish technology group Wärtsilä has chosen Singapore as the location for its latest Expertise Centre (EC) that provides operational support and dynamic maintenance planning, both for marine and energy business customers. All of Wärtsilä’s Expertise Centres combined currently monitor some 900 installations with more than 2,000 engines around the world.

U.S. storage injection hits record high

Nov 14 – Near-record volumes of natural gas have been placed into storage in the United States in the current injection season. According to the U.S. Energy Information Administration (EIA), the amount of gas held in storage in 2019 surged from a relatively low value of 1,155 billion cubic feet (Bcf) at the beginning of April to 3,724 Bcf at the end of October.

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+.