Projects & Finance

Alstom, the French engineering company, today reported a rebound in orders this quarter to €4.9 billion. Thermal power orders reached a value of €1.9 billion, benefiting from successes in Iraq and Poland.

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Eurelectric has warned that "reliable and flexible fossil power generation capacity is required as a back-up supply" to ensure security of energy supply and mitigate the risk of intermittent power generation from renewable energy sources. Eurelectric representative Julia Eichhorst told 'Gas-to-Power Journal' in an interview prior to today's conference in Brussels that "Capacity Remuneration Mechanisms (CRMs) could be needed to encourage power generators to invest in new fossil power generation".

Lithuanian utility Lietuvos Energija confirmed it will commence operations of a 455 MW combined cycle gas turbine (CCGT) power plant this autumn with a view of increasing do-mestic electricity supply. Lithuania has suffered from a net deficit in power supplies since the shut-down of the Ignalina nuclear reactor in 2009.

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.

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News in Brief

Siemens to service Kalamkas gas turbines

June 4 – JSC Mangistaumunaigaz, one of Kazakhstan’s largest oil and gas producers, has contracted Siemens to service two STG-800 gas turbines at a power plant, designed to meet the entire energy needs of the nearby Kalamkas oil and gas field. The nine-year contract covers turbine maintenance and eventual upgrades as well as remote monitoring of operations.

NamPower to invest $575m on grid expansion

June 3 – Namibia’s state-owned utility NamPower is planning to spend $575 million over the next three years in upgrading and extending its power transmission infrastructure. Namibia imports 60% of its total electrical energy requirement, primarily through bilateral contracts from South Africa’s Eskom and to a lesser extent, the Southern Africa Power Pool (SAPP).

UK TSOs call for £900m green gas investment

June 2 – Britain’s five gas network companies – Cadent, National Grid, NGN, SGN and Wales & West Utilities – have urged the Government to unlock over £900 million (€1bn) for new green gas infrastructure. Research by the Energy Networks Association (ENA) shows that if investment into zero-carbon hydrogen infrastructure started today, the UK could save energy bill payers £89 billion (€99.2bn) by 2044 – five years prior to its 2050 net-zero targets.

Exxon, INNIO about to launch gas engine oil

June 1 – ExxonMobil and INNIO have announced the imminent launch of their first co-engineered and co-branded natural gas engine oil. The U.S. oil major and the Austrian engine maker have just extended their global lubricant collaboration agreement for INNIO’s Jenbacher Type 2, 3, 4, 6 and 9 natural gas engines.

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.