Projects & Finance

US-Vietnamese joint venture Chan May is developing a $6 billion integrated LNG import and power plant in central Vietnam’s Hue province. The first 2,400 MW of generating capacity is meant to be operational by 2026, followed by an additional 1,600 MW by 2028.

Cummins has installed QSV91G gas generators at a new 16 MW power plant in the city of Dawei. Myanmar’s southern trade hub has been suffering from inadequate power supply and grid infrastructure, so the government asked Petro & Trans Co to install a fast-ramp power plant.

Targeting industrial customers, Siemens has worked with MW Storage, Fluence and Vibeco to develop a new virtual power plant (VPP) with energy storage, supported by financing. The first project will be installed at the Finnish brewery Sinebrychoff, part of Carlsberg Group, by summer 2021.

Swan Energy, an Indian conglomerate, is preparing to commission a floating LNG import terminal in Gujarat state in early 2021. The 5 mtpa Jafrabad FSRU will boost India’s imports beyond 350 cargoes a year, as more pipelines are constructed to supply gas to industry and power generators.

TGM, part of the manufacturer WEG Group, has replaced a steam turbine at the onsite power plant of a Brazilian milling company. The new multi-stage TGM turbine model BT 40 was installed instead of the TME 25000A turbine, boosting power output by 13% with the same amount of steam.

Mitsubishi Power has received an order to supply the first Solid Oxide Fuel Cell (SOFC) in Europe. The hybrid system will be put into operation at the Gas- und Wärme-Institut Essen (GWI) in Essen by March 2022 to research the use of hydrogen as a fuel gas.

US oil major ExxonMobil has agreed with Japan’s largest LNG importer JERA to evaluate the joint development of regas facilities and gas-fired power plants. The aim is to build an integrated LNG-to-Power project in the port city of Hai Phong in northern Vietnam.

Houston-based Eagle LNG will supply a full turn-key solution to the Barbuda Ocean Club, including a regas and storage unit, to allow the holiday resort switch to gas-fired power generation. The fuel switch will save the club millions of dollars in fuel relative to its existing petroleum-based power unit.

Maxim Power has turned to GE to help convert its Milner II coal-fired power plant to run on natural gas. GE re-powered the plant with one of its 7F.05 gas turbines, turning Milner II into the largest open-cycle gas power unit in the Canadian province of Alberta.

PT Freeport Indonesia has contracted Wärtsilä to supply and install a 128 MW power plant, based on fourteen 34DF dual-fuel generating sets. The new plant will provide the necessary electricity as the customer extends operations from open pit to underground gold and copper mining.

The expansion of the Nova Gas Transmission Ltd (NGTL) system has been approved by the Canadian federal government, paving the way for gas resources from Western Canada to be moved to market. TC Energy wants to progress swiftly and start building the pipeline in January 2021.

Work on one of the UK’s first grid stabilization units has been started by Siemens Energy, who will develop and install the site in South Wales on behalf of Welsh Power. The site is due to be operational in 2021, set to be commissioned in September.

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News in Brief

Mitsubishi produces methanol in Trinidad

Jan 20 – Mitsubishi Gas Chemical Company has launched commercial operations of a methanol and dimethyl ether plant in Trinidad and Tobago. The plant has an annual production capacity of one million tons of methanol and 20,000 tons of dimethyl ether, which can be used as an alternative fuel for cars and power generation.

First 8-cylinder B36:45 engine delivered

Jan 19 – Rolls-Royce has delivered the first 8-cylinder variant of its Bergen B36:45 gas engine to a tomato producer in Belgium. The medium speed genset is planned for delivery this spring and will drive an onsite power plant that generates 4700 kW electricity and 5520 kW heat. The new engine offers a 20% increase in power per cylinder and will replace an existing Bergen 12-cylinder B35:40 genset.

Moody’s upgrades Enel to Baa1

Jan 18 – Moody’s Investors Service has upgraded Enel’s long-term rating to Baa1, with a stable outlook. The upgrade reflects Enel’s progress in reducing its risk profile, analysts said, pointing at the Italian utilities ongoing investment in networks and renewables, growing geographical diversification and focus on centralised financing.

GE sues Siemens Energy

Jan 15 – General Electric has sued its German rival Siemens Energy over the alleged use of stolen trade secrets to win gas turbine contracts worth several billion dollars. GE told the US district court in Virginia that Siemens received the secret information from a Dominion Energy employee.

Orbital Energy launches Eclipse

Jan 14 – Nasdaq-listed Orbital Energy Group has launched a new subsidiary, Eclipse Foundation, a drilled shaft construction company. The new company specialises in providing services for power transmission and substations, communication tower and a disaster restoration through emergency power.

S’Korean coal and LNG imports slide

Jan 13 – South Korea’s imports of thermal coal and LNG have fallen 12% and 11%, respectively, as the government cracks down on fossil fuel usage to curb air pollution. Customs data shows that coal imports amounted to 10.2 million tons in December, down 1.4 million tons from the same month last year but up from November’s imports of 9.5 million tons.

SMC builds 1.7 GW CCGT in Batangas

Jan 13 – Excellent Energy Resources, part of SMC Global Power Holdings, is building a 1,700 MW combined cycle gas power plant in Barangay Dela Paz and Ilijan in Batangas City with investments of about 67.863 billion Philippine Pesos ($1.41bn). The project is estimated to be completed in 36 to 40 months.

UK’s National Grid issues supply warning

Jan 12 – Natural gas prices in the UK surged as National Grid issued warnings on supply deficit as LNG cargoes are being diverted to North Asia. Prices at the British NBP gas trading hub soared to the equivalent of $8.95 per MMBtu, while the JKM price for North Asian spot LNG cargoes for February 2021 was last at $19.700 per MMBt.

Fortistar invests in hydrogen

Jan 11 – Fortistar, a privately-held fund, has joined an equity investment of up to $157 million in hydrogen producer BayoTech. Cottonwood Technology Funds and the New Mexico State Investment Council also participated in the latest financing round. BayoTech’s systems produce local hydrogen close to the application, serving end users in the industrial gas and petrochemical segment as well as those who use of hydrogen to power fuel cells.

Ashtead appoints new CFO

Jan 5 - Ashtead Technology has appointed a chief financial officer (CFO) and five managers for newly created roles across its international team. The appointments are meant to cement the company’s position in the offshore energy market, including offshore wind and decommissioning of thermal power plants

NFE secures LNG for Puerto Rico, Mexico and Nicaragua

Dec 23 – New Fortress Energy (NFE) has agreed to purchase Henry-Hub-indexed LNG for its integrated gas and power businesses in Puerto Rico, Mexico and Nicaragua. The New York-based project developer said it now has covered 80% of its expected needs throughout Latin America, thus reducing its need for spot purchases and its exposure to changes in the market price for LNG.

China and Korea mandate coal-to-gas switch

Dec 22 – The Chinese government has launched a coal-to-gas boiler switching programme, targeting 7.1 million homes, which makes gas demand more weather-sensitive this winter. Similarly, South Korea mandated the closure of 15 coal-fired plants since the start of December in an effort to reduce air pollution. Analysts expect this will accelerate the drawdown of LNG terminal inventories going into Q1-2021.

GE repowers oil field in Brazil

Dec 21 – GE Power Conversion has been awarded a contract by Sulzer Pumps UK to supply motors for four water injection pumps of a Floating Production Storage and Offloading (FPSO) vessel. The 8,000 kW, two pole motors will run at 3,600 rpm with a limitation of the starting current at 300%, enabling the oil and gas field operator to optimise the generator which supplies electricity on the FPSO.

VELO distributes Sapphire Metal 3D-Printers in the US

Dec 18 – California-based VELO3D has formed a distribution partnership with GoEngineer for Flow pre-print software, Sapphire metal AM printer, and Assure quality assurance and controls. GoEngineer will be VELO’s only distributor in the United States.

Indian electric boats to achieve zero emissions

Dec 17 – Cochin Shipyard, India’s largest shipbuilder, has asked Siemens Energy to equip India’s first fleet of 23 boats with electric propulsion drive train, integrated with batteries and vessel automation. Combining the electric propulsion drive trains, energy storage, and automation systems is expected to significantly reduce fuel consumption.

Terna BESS auction six times oversubscribed

Dec 16 – A pilot auction, held by the Italian TSO Terna, for battery energy storage systems (BESS) to provide reserve grid services has been six times oversubscribed. The auction was held with an expectation that around 230 MW would be on offer, but Terna received 1,327 MW worth of bids and eventually awarded contracts for 249.9 MW.

New £150m link to UK’s Easington terminal

Dec 15 – National Grid has completed a gas pipeline under the River Humber, build in 18 months and at a cost £150 million, as new link to the import terminal at Easington. Following commissioning, the pipeline is now operational and can now transport between 70 to 100 million cubic metres - around a quarter of Britain's gas needs.

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