Projects & Finance

Kogas and Energy Capital Vietnam (ECV) are forging ahead with a privately-funded LNG regas terminal, storage and gas supply system to underpin their 3,200 MW gas-fired power project near Mui Ke Ga, some 150 kilometres from Ho Chi Minh City. KBR will provide a feasibility study by the end of September.

Emirates Water and Electricity Company (EWEC), the utility catering for Abu Dhabi, is about to launch tenders for a 2,400 MW combined-cycle power project at Fujairah as well as a 1,500 MW solar project. Up for grabs are development contracts worth some 4.4 Emirati dirham, or $1.2 billion.

Malay property and industrial developer Tadmax Resources has received government approval to develop a 1,200 MW integrated gasification combined-cycle power plant (IGCC) on the island of Pulau Indah. Posco is building the plant, with a planned in-service date in January 2023.

The Palestinian Energy Authority and Massader are about to agree on terms to start construction of a much-needed power plant in Jenin. The 450 MW combined-cycle gas power plant will be the largest of its kind in the conflict-ridden country, fuelled by gas from the Gaza Marine field.

Hungary’s CHP Erömü, a subsidiary of Veolia, has awarded Wärtsilä a 5-year extension to a power plant service agreement for the combined heat and power station. High plant availability of more than 95% had led to the deal.

Mitsubishi Hitachi Power Systems (MHPS) has received an order from Hongkong Electric to supply power generation equipment for Lamma Power Station's Unit 12. The 380 MW combined-cycle gas power unit will be built with a view to start full commercial operations in early 2023.

Caithness Energy, a privately-held American Independent Power Producer, is preparing to start construction of the 1,864 MW Guernsey Power Station in Ohio in 2022. The CCGT project, to be powered by GE 7HA.02 gas turbines, is moving to the next phase after having just secured $1.6 billion in financing.

MAN Energy Solutions has commissioned three power plants in Indonesia, equipped with dual fuel engines that can be operated with low-emission LNG. Ten gensets with a combined capacity of 140 MW were installed in the provinces of West Nusa Tenggara and on Flores island.

New Fortress Energy (NFE), the sole gas supplier to Jamaica, has completed the first phase of its $180 million bond issue to finance the completion of its LNG-fuelled cogeneration project in Carendon. The bond issue was fully subscribed, according to NCB Capital Markets.

Japan’s largest LNG importer and power plant operator JERA has chosen to buy a 49% stake in a Reliance-led combined-cycle gas power plant project in Bangladesh. The 750 MW Meghnaghat CCGT is being built based on a long-term power purchase agreement (PPA).

International law firm Milbank has advised Gas Natural Açu (GNA) on the development and financing of a 1.3 Gigawatt LNG-to-Power project at Açu Port in São João da Barra, Brazil. The financing includes a credit facility from the Brazilian development bank BNDES, guaranteed by KfW-IPEX bank and Euler Hermes, as well as a loan from the International Finance Corporation.

Orbital Gas System, a wholly-owned Energy subsidiary of CUI Global, Inc, has received orders to supply GasPTi systems for deployment across multiple natural gas plants from one of the largest US-based producers and transporters of energy. 

SeaFloat, Siemens-made power barges equipped with SGT-A65 gas turbines, will be installed at the Upper Bay of Brooklyn in New York City. Two SeaFloats, with a capacity of 300 MW each, will replace existing power barges at Gowanus Generating Station.

One of INNIO’s Jenbacher gas engines, together with a wood gasifier, helps achive over 90% efficiency at EnergieWerk Ilg’s wood-fired power plant in Vorarlberg, Austria. Built by SynCraft three years ago, the plant now gets expanded through the J412 engine generating an output of 500 kilowatts (kW).

Tenaska Pennsylvania Partners has closed on the retail syndication of its amended commercial financing on its 940 MW gas-powered Tenaska Westmoreland Generating Station. The deal reduced the total loan from $780 million to $760 million, while extending the maturity by two years. 

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News in Brief

Slow start of STT pipeline

Oct 18 – U.S. gas exports to Mexico have not picked up substantially despite the start of the Sur de Texas-Tuxpan (STT) pipeline. Exports are still below 6.0 billion cubic feet per day (bcf/d), although there no current postings regarding maintenance on the Sistrangas pipeline that feeds from NET Mexico.

EIB defers ban on fossil projects

Oct 17 – Luxembourg-based European Investment Bank (EIB) has bowed to pressure from Germany and the European Commission and deferred its decision to ban loans to fossil-fuel projects until mid-November. Germany wants the bank to keep financing gas-fired power projects as it views the cleaner-burning fossil fuel as a vital backup for renewable energy sources.

Brexit will not impact UK gas supply

Oct 16 – Security of power and gas supply in the UK will not be jeopardized this winter by the country’s imminent departure from the European Union, even in the event of a hard Brexit, National Grid said. In its assessment, the TSO factored in a halt to flows via the Belgium and Dutch gas interconnectors “from EU exit day one”, but said ongoing deliveries from Norway, the UK Continental Shelf and storage will continue as usual.

Ferrybridge C gets demolished

Oct 15 – Four cooling towers at the Ferrybridge Power Station have been taken down as the coal-fired power station will make way to a new, high-efficiency gas power station. Operator SSE shut down the 500 MW Ferrybridge C unit in March 2016 and now started to tear it down.

Global energy storage tops 10 GW by 2025

Oct 14 – The global market for grid-connected energy storage will grow by 6,900 MW, or 16.6% to reach over 10,500 MW by the end of 2025, according to Reportlinker.com. Germany will add over 267 MW energy storage installations over the next five to six years, while 330 MW will come from other European markets. These numbers are dwarfed by China, where up to 1,200 MW energy storage units could be connected to the grid by 2025.

Wärtsilä services EDL plant

Oct 11 – Energy Developments Ltd (EDL) of Australia has awarded Wärtsilä a service contract for gas engine-based baseload power plant at the McArthur River zinc mine in Northern Territory. The maintenance approach for the 53 MW onsite power plant is no longer pre-planned and scheduled but has been changed to condition-based and predictive maintenance, with an advisory contract.

EPH buys CCGT in Galway

Oct 10 – The Czech energy company EPH has received regulatory approval to purchase an 80% stake in the 400 MW Tynagh Energy combined-cycle gas power plant in Galway, Ireland. Mountainside Partners will continue to own the remaining stake in the CCGT, which operates based on a security-of-supply contract from the Irish TSO based on guaranteed power prices.

ITM gets £38m boost from Linde

Oct 9 – Sheffield-based ITM Power, maker of electrolysers for hydrogen production, has been boosted by a £38 million cash injection, as Linde acquired a 20% stake in ITM at 40 pence per share. Looking ahead, ITM said it is seeking to raise £14 million from new and existing institutional investors.

Drax to convert two power units

Oct 8 – Drax Group has received government approval to convert up to two coal-fired generating units at its power station in North Yorkshire to run on natural gas. With this ruling, the UK regulator overturned objections by ClientEarth, stressing some fossil power is vital for the UK to backup intermittent renewable power source.

Storage use tops 80% in key U.S. regions

Oct 7 – Gas storage utilization in the United States is rising in the autumn, with net injections topping 112 billion cubic feet (Bcf) in the first week of October. According to EIA figures, underground storages are at least 80% full in the East, Midwest, and South Central non-salt regions, allowing for seasonal withdrawals to help meet peak-day gas demand throughout the upcoming winter.

Maine, NY aspire to 100% clean energy

Oct 4 – Three U.S. states—Maine, New York, and Ohio—have updated their renewable portfolio standards (RPS), since May 2019. As a result, Maine and New York joined California, Hawaii, Nevada, New Mexico, and the District of Columbia in requiring 100% clean electricity by 2050.

TransAlta to built CHP in Alberta

Oct 3 – Canada-based Transalta and SemCAMS Midstream have agreed to develop, construct and operate a new cogeneration facility at the Kaybob South No. 3 sour gas processing plant in Alberta. To be built at a cost of some 105 million, the CHP will have an installed capacity of 40 MW. Start of commercial operation is targeted for late 2021.

GE’s 100th HA turbine sold in Greece

Oct 2 – Greek industrial firm Mytilineos has ordered a GE 9HA.02 gas turbine to be the heart of the 826 MW Agios Nikolaos combined-cycle gas power plant. This deal also marks the 100th unit of GE’s HA gas turbine sold. Construction of the CCGT is due to start before the end of the year.

ABB launches M4M analyzer

Oct 1 – Swiss technology firm ABB has launches its first Bluetooth-equipped network analyzers, called M4M. The system gathers data from distribution grids and connects them to a cloud-based control system, allowing users to react on energy consumption and on-site power generation trends.

Microsoft invests in wind power

Sept 30 – Microsoft and ENGIE have entered a long-term solar and wind energy power purchase agreement (PPA) in the United States. The deal will see Microsoft purchase a total of 230 MW from two ENGIE projects in Texas, bringing Microsoft’s renewable energy portfolio to more than 1,900 MW.

Gazprom tackles issue of ownerless gas grid

Sept 27 – Gazprom, the main supplier of pipeline gas to Europe, is trying to settle the issue of ownerless gas pipelines – a relic of the former Soviet Union. Abandoned gas transmission pipeline spanned 6,651 kilometers as of March 1, with the issue seen as “especially acute” in the North Caucasus region where half of this infrastructure is located. If no owner registers these facilities within three months, Gazprom will take over to ensure reliability and safety.

Investors flock to Myanmar

Sept 26 – Fitch Ratings has singled out Myanmar’s power sector as one of the largest beneficiaries of foreign direct investments (FDI) worldwide. Nearly $21.2 billion was poured into power generation and energy infrastructure projects thus far in 2019, which is 27% of total FDI under the Myanmar Investment Law.