Projects & Finance

Ukrainian agro-holding I&U Group has contracted KTS Engineering, INNIO’s authorized channel partner, to supply a power solution based on four Jenbacher biogas cogeneration units for a new zero-waste biogas plant. The biogas CHP will reduce I&U Group annual carbon footprint by 24,000 tons.

The French utility ENGIE has signed a deal to divest its entire coal-fired power generation assets in Germany and the Netherlands to Riverstone Holdings, a global energy-focused investment firm. The sale of the four units, with a combined capacity 2,345 MW, will reduce ENGIE’s net debt by approximately €200 million.

GE Power has completed the installation of Advanced Gas Path (AGP) upgrades on four 9E gas turbines at the West Damietta Power Plant (4x125MW), operated by the East Delta Electricity Production Company. The upgrades help enhance the turbines' fuel efficiency by 2.2% and generate up to 18 MW of additional output at the site.

Power Grid Corporation of India has chosen Siemens to modernize the country's 30-year old high voltage direct current (HVDC) link, the 550 MW Vindhyachal power line. By installing its latest HVDC components and replace the thyristor valves, Siemens will extend the useful life of the interconnector. The upgrade is due to be completed in 2021.

An Iraqi cement producer has awarded a repeat order to Wärtsilä to supply dual-fuel engines and related equipment for a 20 MW power plant that will serve the Najmat Al-Samawa factory. The equipment is scheduled for delivery in late 2019, for the plant to become fully operational in Q3-2020.

Bangladesh is getting ready to commission its second floating storage and regas unit (FSRU) in an effort to import more LNG for use in the power sector. Moored offshore the port of Cox’s Bazar, the FSRU vessel ‘Summit LNG’ has been chartered from Excelerate Energy in a project involving Summit Power.

MAN Energy Solutions is providing multiple MAN 18V48/60TS engines for two power plant projects, being built in stages in two remote districts in Bangladesh. Upon entering full operation, the two plants will feed a total of 170 MW into the national grid, helping to stabilize supply.

The Finish technology group Wärtsilä will supply an engine-based power plant, set to run primarily on regasified LNG, to a remote location in Nigeria. The plant will operated off-grid and was ordered by the BUA Group, following its decision to build a new cement line in Sokoto, northwest Nigeria.

State-owned Israel Electric has announced it will pay GE about 1 billion shekels ($280 million) to convert the Orot Rabin power station from coal to natural gas, which includes a 9HA.01 gas turbine retrofit. The same turbine was selected for another unit, and GE expects a contract by the end of 2019.

The U.S. private equity firm Starwood Energy Group has acquired the 309-MW combined cycle Garrison Energy Center in Delaware and the 503-MW RockGen Energy Center peaker facility in Wisconsin. Starwood Energy is part of Starwood Capital, funded by the American investor Barry Sternlicht.

Hokkaido Electric Power Co (HEPCO) has put its first LNG-fuelled power plant into full commercial operation. The 569-MW Ishikariwan-Shinko Unit 1, a combined-cycle plant, is powered by a GE 9HA gas turbine and a Toshiba steam turbine.

A Texan industrial gas company has contracted Siemens to supply three Dresser-Rand 5HHE-VL-3NL reciprocating compressors for a large steam methane reformer (SMR). Once operational as planned in 2021, the unit will be the largest high-purity hydrogen production unit in the United States.

Envision, whose AIoT Operating System EnOS manages 100 GW of energy assets globally, has signed a Memorandum of Understanding (MoU) help Thailand’s integrated energy company PTT with its digital transformation to make better use of distributed new energy sources.

India’s National Thermal Power Corporation (NTPC) has awarded a Rs142crore contract to GE Power to supply and install low-NOx combustion system upgrades for 10 GW of thermal power plant capacity across the country. The combustor retrofits will cut up to 40% of NOx emissions, helping India meet its national emissions reduction goals.

Braskem, the largest petrochemical company in Latin America, has contracted Siemens to upgrade a cogeneration power and steam plant at its ABC Petrochemical Complex in Sao Paulo, Brazil. The two SGT-600 turbines, deployed at the project, will feature third-generation dry low emissions (DLE) technology and run on residue gas with high concentrations of hydrogen. Completion of the project due in early 2021.

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News in Brief

Evol LNG helps power Australian gold mine

June 18 – Kirkalocka Gold Mine in Western Australia will use Evol LNG to fuel Zenith Energy’s 14.5 MW power station with regasified natural gas starting from September 2019. The mine is run by Adaman Resources and had been relying on diesel to cover its energy needs. Based on the current diesel price, Adaman Resources expects to reduce fuel costs by more than A$13 million (US$9 million) during the first six years of operation of the new onsite LNG-to-Power plant.

Shell Energy ordered to refund overcharged UK customers

June 17 – UK energy regulator Ofgem has ordered Shell Energy Retail to refund around 12000 customers who were overcharged after the Government’s cap on gas and electricity prices came into force in January. Shell Energy Retail s agreed to refund these customers by paying £29,000 in compensation (£5 per fuel), and also pay an additional £200,000 into Ofgem’s voluntary redress fund.

BASF enters battery market

June 14 – German chemical company BASF is using NGK Insulators’ sodium sulfur batteries as its entry point into the energy market. The Japanese manufacturer NGK is currently the only maker of the large-scale sodium sulfur (NAS) batteries, capable to store several hours of energy. A joint project in northern Germany uses NAS batteries that store energy for five hours, while a recently completed project in Abu Dhabi using 108MW / 648MWh of the systems with a full six hours storage duration.

CNPC boosts domestic gas production

June 13 – China National Petroleum Corp (CNPC), the largest Chinese oil and gas company, has announced plans for domestic natural gas output to reach 55% of overall domestic supply by 2025. Last year, CNPC managed to boost production by 5.9% to reach 138.02 billion cubic metres, while also increasing imports of pipeline gas and LNG.

Gazprom taps new gas deposits for Nord Stream 2

June 12 – Gazprom is fast-tracking hydrocarbon production in northwest Russia to boost reserves for export through the Nord Stream 2 pipeline (55 Bcm/y), currently being built through the Baltic Sea. At a meeting with Nord Stream shareholders, Gazprom noted that its Yuzhno-Russkoye field has yielded about 276 Bcm of natural gas, including 0.9 Bcm of hard-to-recover Turonian gas, since the start of operations. Turonian gas reserves, consisting of about 99% methane with no heavy residues, lie at a depth of 800–850 meters in reservoirs with low permeability. Commercial production at the Turonian deposit is scheduled to start in late 2019.

PG&E turns off electricity to avoid wild fires

June 11 – Pacific Gas and Electric Company (PG&E) has turned off electricity for some Californian communities at risk of a wildfire during the lastest heat wave. The authorized blackout started on Saturday in Napa, Solano and Yolo counties, with electricity being gradually restored over the course of Monday. Approximately 16,000 customers have been affected.

Gazprom to build power plants in Serbia

June 10 – Gazprom Energoholding has signed an Agreement of Intent (AoI) to build an upgrade several gas-fired power plants in Serbia. Together with Novi Sad, Gazprom Energoholding is already building a CCGT with some 200 MW capacity near a refinery in the Serbian town of Pancevo.

U.S. fund splashes out $4bn to buy El Paso Electric

June 7 – Infrastructure Investment Fund (IIF), a private investment vehicle within J.P. Morgan Inc., has agreed to acquire the U.S. utility El Paso Electric Co for $68.25 per share in a cash transaction. The enterprise value on the transaction is estimated at $4.3 billion. El Paso Electric customers will receive a total $21 million in bill credits over three years.

Caterpillar gensets back up Finnish data center

June 6 – The Swedish telecom giant Telia has ordered 12 Caterpillar gensets to provide standby emergency power to back up operations at its new data center in Helsinki. The Cat dealer Witraktor figured a system which includes eight Cat 3516B and four 3516E generator sets. The Telia Helsinki Data Center is the largest such facility in Finland, and its primary electric power supply comes from a combination of wind, hydroelectric and biomass.

Capstone wins orders in Iraq

June 5 – Micro-turbine producer Capstone has secured an order for two C600 Signature Series microturbines to provide 1.2 MW of energy to power a triethylene glycol (TEG) dehydration facility near Basra, in southern Iraq. The contract also includes Capstone’s new self-cleaning pulse filtration system, allowing the turbines to better withstand hot and sandy conditions with minimal maintenance.

Gas to supply record 43% of US power needs

June 4 – This summer, natural gas is forecast to cover between 40% and 43% of 2019 peak electricity demand in all U.S. states except Texas, according to projections by the Energy Information Administration (EIA). Gas demand soared to nearly 10,700 billion cubic feet (Bcf) last summer, a 16% rise from 2017 levels. Should there be another heat wave this year, that record may well be broken. Capacity wise, natural gas is on course to top its 45% share in the U.S. power mix.

Lukoil to upgrade CHP at Krasnodar

June 3 – Russia’s oil and gas company Lukoil has received government approval to modernize and expand three combined heat and power units in Krasnodar. The gas-fired CHP units have more than 400,000 hours and ran an average 74% utilization rate, the operator said. The upgrade will add 150 MW of power generation capacity and Lukoil said it expects the revamped power plant to be ready for commissioning as early as 2022.

GE commissions Al-Qudus CCGT in Iraq

May 31 – GE Power has installed and commissioned a new 9E gas turbine at the Al-Qudus combined-cycle gas power plant, run by the Iraqi Ministry of Electricity’s (MoE). The CCGT was previously capable of generating up to 1,125 MW and the turbine upgrade adds another 125 MW of capacity.

Groundbreaking takes place for Ohio CCGT project

May 30 – This Thursday morning, groundbreaking will take place for the $500 million Long Ridge Energy Generation Project in Hannibal, Ohio. Long Ridge, a 485 MW combined-cycle power project, is being developed by Fortress Transportation and Infrastructure Investors (FTAI). It will create up to 350 construction jobs and some 25 permanent jobs. The CCGT is expected to open in 2021.

Asia to spend more on renewables than oil & gas by 2020

May 29 – Utilities in Asia-Pacific region will invest more in renewables than on oil and gas exploration by 2020. Total capital expenditure in renewables will rise above $30 billion in the region by 2020, according to forecast of the consultancy Rystad Energy. India, Australia, Japan, Vietnam and South Korea will led the way in Asia’s green energy transition.

Ichthys LNG looses court claim against power sub-contractor

May 28 – JKC Australia LNG consortium, developer of the US$34 billion Inpex-built Ichthys LNG plant near Darwin, has lost a US$1.9 billion court case claim against a power station sub-contractor. Construction of the power station was subcontracted to UGL-led group which CIMIC took over in 2016 and subsequently cancelled the Ichthys power contract. The Western Australian Supreme Court in Perth now dismissed an application by JKC Australia LNG for upfront payment of damages. The power plant’s five gas turbines have already been handed over to Inpex, and KBR aims for the plant to be ready for commissioning this autumn.

San Miguel Energy claims $6.19bn subsidy for Ilijan plant

May 24 – South Premier Power Corp. (SPPC), San Miguel Energy’s development vehicle for the 1,200-MW Ilijan gas power project, has claimed that it already paid $6.19 billion in subsidies to state-run Power Sector Assets and Liabilities Management Corp (PSALM) for its financial obligations as independent administrator. The build-operate-transfer (BOT) contract for the Ilijan plant will expire in 2022; and by that time, SPPC will get ownership of the plant.