Projects & Finance

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 .

BG Group will sell the entire volume of natural gas produced at Kazakhastan's vast Karachaganak gas condensate field to local utilities for use in CNG vehicles and power generation. "All raw gas produced from the Karachaganak field is sold locally and into Russia or it is re-injected into the reservoir to help maintain reservoir pressure," Mark Todd, spokesman for BG Group, told 'Gas-to-Power Journal' today.

Siemens has started to build a new combustion test center for gas turbines near Berlin, the German engineering company announced today. "We are investing 66 million euros to be able to study and validate the combustion processes in gas turbines in our own test center," said Roland Fischer, CEO of the Fossil Power Generation Division within the Siemens Energy Sector.

Alstom, the French engineering company, has secured a contract worth €400 million to build the 728MW gas-fired power plant in Al Mansuriya, north east of Baghdad in Iraq's Diyala Governorate. The first unit of the plant is slated to start operations in early 2013.

Stadtwerke Düsseldorf's board has approved the construction of a 400 MW combined cycle gas turbine (CCGT) plant in the city to come online in 2016. The German municipal utility took a final investment decision (FID) on the plant, taking into account projections on fuel costs and the expected balance between electricity supply and demand in Germany.

Germany's E.ON is on track to comply with the new regulation to power generation assets in the UK against the dangers of climate change such as flooding, Richard Busby, E.ON's Environment Manager said. E.ON has identified this risk at two of its power stations and has now introduced new Reverse Osmosis water treatment plants to tackle the problem. The Enfield power station doesn't have access to river water for cooling and has to use air for cooling.

Enterprise planning combined with project execution is deemed to be the way forward for unleashing the value of integrated power generation solution, Oracle – IFS Partner said in a White Paper emailed to 'Gas-to-Power Journal' today.

New Jersey goes it alone: A new 738 MW gas-fired power plant will be built in the U.S. state without any financial support from the U.S. federal government. LS Power Group announced it has secured funding to build the plant in West Deptford, New Jersey.

Siemens and Shanghai Electric have agreed on a strategic wind power alliance for China. Gas-fired power plants are required as a backup for the intermittency of wind power production. In Britain, the much-debated electricity market reform entails the plea for capacity payments to guarantee the availability of sufficient electricity supply at times of peak demand.

Doosan Power Systems has acquired a majority stake in AE&E Lentjes GmbH, formerly part of the AE&E Group. The company was formerly known as AE&E Lentjes GmbH. It was founded in 1927 and is based in Ratingen close to Düsseldorf in Germany. 

EDF and GE Energy signed a deal today to jointly build 510 MW combined cycle gas turbine (CCGT) at EDF's Bouchain site in the north of France, the companies announced today. Operational start of the plant is scheduled for 2015. The gas-to-power plant will replace a coal-fired unit due to be phased out by that date.

Republic Services Inc., Old Dominion Electric Cooperative and Fortistar LLC announced the start-up of 6.4-megawatt (MW) landfill gas-to-power plant, located in Richmond, Virginia, U.S. The plant is currently in its commissioning phase and will be operated by Fortistar.

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News in Brief

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.

Wärtsilä to service Argentinean power plant

May 1 – Wärtsilä has signed a 10-year maintenance and service agreement with one of Argentina’s upstream companies. Under the deal, Wärtsilä provides a guaranteed performance for a 57.6 MW onsite power plant in the southern part of Argentina, with excess power sold to the national grid.

Zink-Air batteries for NY

April 30 – Zinc8 Energy Solutions has entered a cooperation with the New York Power Authority (NYPA) to install a zinc-air battery energy storage, backed by $2.55 million in state funding over a three year period. The Zinc8 ESS units can deliver power in the range 20-50 MW, with capacity of 8 hours of storage duration. The project will help New York State achieve its goal of installing 3 GW of energy storage by 2030.

UK again ‘coal-free’

April 29 – The UK continues to break its coal-free record as thermal coal-fired power plants currently remain off the system, according to National Grid data. Faltering demand due to the pandemic and high renewable energy supply radically altered the energy mix in many developed countries, with power in-feed from solar PV reaching 10 GW in Britain at the start of this week. “Coal is due off the system by 2025 and renewables have shown they are cost competitive with a viable route to market,” Delta-EE director Andy Bradley commented.

China’s fuel demand to rebound in Q2

April 28 – China’s demand for refined fuel is forecast to rebound in the second quarter, nearly reaching year-ago levels, as lockdowns to contain the coronavirus get lifted. Analysts at SIA Energy in Beijing expect second quarter demand for the three main transportation fuels to increase by 1.1 million barrels per day compared with the first quarter of 2020.