Projects & Finance

Taiwan Power Co. (Taipower) is spending some $1.2billion to purchase two of GE’s H-class gas turbines for Tatan Power Plant unit 8 and 9. The turbines, each with 1,100 MW capacity, are meant to be put into service in 2021, and 2023.

Cypriot Natural Gas Public Company (DEFA) has extended a tender deadline to September for the supply of LNG cargoes to a floating regas terminal and a gas power project, under development near the town of Vasilikos. The European Union agreed to fund 40% of overall project costs.

Construction of Connecticut’s largest power project in a decade will start this autumn. NTE, developer of the Killingly Energy Center, a 650-MW dual-fuel, combined-cycle plant, has been given regulatory approval for the $700 project. All electricity from the plant will be fed into the grid of ISO New England.

Phoenix Petroleum of the Philippines seeking to develop $2.0-billion integrated LNG-to-power project together with China’s CNOOC and the Philippine National Oil Company (PNOC). The Tanglawan LNG project consists of a 2.3 mtpa regas and a 1,000 MW power plant. It is meant to start commercial operations in 2023, although construction has not yet started.

Mitsubishi Hitachi Power Systems (MHPS) has shipped a M701F gas turbine to Indonesia where it will form the core of a combined-cycle power plant, built on behalf of PT PLN (Persero). The 500 MW Muara Karang Power Plant, situated in western Java, is due for commission in October 2020.

Mission Rock Energy Center, part of Calpine Corp, has withdrawn its application to build a new gas-fired power plant in Ventura Country, California. Developers claim the project is no longer economic after a change in state regulations, restricting the use of ocean water for cooling.

Lansing Board of Water and Light (BWL) broke ground on a new $500 million power plant in Delta Township, Michigan, this week. The utility has vowed to complete the 250 MW unit by June 2021.

Unit-2 of the Mankato Energy Center has been completed and is now ready for start up, operator Southern Power announced. With a capacity of 345 MW, the second unit brings the plants’ overall capacity to 760 MW. Southern Power is selling the Mankato CCGT to Xcel Energy for $650 million.

Construction has commenced at the £350 million Keadby-2 combined-cycle gas power project, build by Siemens as a full turnkey solution on behalf of SSE. The CCGT will be one of Britain’s most efficient power units (63%) and is slated to start operations in 2022.

Oman-based Shinas Generating Company (SGC) has announced the completion of commissioning and the start of test operations and at the 1,710-MW Sohar Power Phase-3 unit. The CCGT unit had been built based on an investment of $ 1 billion (384bn Omani Rial) by a consortium of Japan’s Mitsui, Saudi Arabia's Acwa Power, and Oman’s Dhofar International Development & Investment Holding (Didic).

German chemical company BASF has awarded a contract to Siemens to modernize its industrial power plant in Schwarzheide, as part of the so-called Brownfield Exchange project. Works include replacing a gas turbine from another original equipment manufacturer (OEM) with a high-efficiency SGT-800 turbine and installing a SIESTART battery storage.

Mitsubishi Hitachi Power Systems (MHPS) has been awarded a contract to upgrade the Sidi Krir and El Atf combined-cycle gas power plants in Egypt. Both CCGTs operate with a rated output of 750 MW, based on two M701F gas turbines. Upgrade works are slated to start in the first half of fiscal 2021.

Sask Power has agreed to pay $120 million for buying all shares of its JV partner Canadian Utilities in the 260-MW Cory cogeneration plant in Saskatchewan province. The gas-fired CHP creates process steam for Nutrien’s potash mine while all electricity from the plant is fed into the regional grid. The deal coincides with ATCO’s move to divest its entire Canadian fossil power portfolio for around $835 million.

Gemma Power Systems, part of Argan Inc., has won a contract by ESC Harrison County Power LLC for engineering, procurement and construction services at a 652-MW combined-cycle gas power project in West Virginia. Construction is slated to start this summer, with completion due in 2022.

GE’s Grid Solutions has been awarded a $25-million contract by Engineering for the Petroleum and Process Industries (Enppi) to provide the Assiut Oil Refinery with gas-insulated switchgear (GIS) enabled substation for its new naphtha complex. The project set to be executed within 12 months. The average consumption of natural gas in Egypt expected to reach around 9 Bcf/d by 2021.

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News in Brief

Tohoku Electric tenders for LNG cargo

Aug 19 – Tohoku Electric Power, the fourth-largest electric utility in Japan in terms of revenue behind Tepco, Kepco and Chubu, is understood to be seeking an LNG cargo for delivery in September. A tender process is ongoing.

Cost for decarbonizing industry tops $21tr

Aug 16 – Total costs to fully decarbonize the four most polluting industries – cement, steel, ammonia and ethylene – are estimated to amount to $21 trillion between today and 2050. McKinsey said this could be lowered to about $11 trillion if zero-carbon electricity prices come down further compared to fossil fuel prices. In this event, industry could switch to using electricity for heating processes.

Co-firing Braskem plant with hydrogen

Aug 15 – Siemens is making fossil energy greener at the Braskem onsite power plant in Brazil. In this modernization project two SGT-600 gas turbines are co-fired up to 60% with hydrogen, enhancing efficiency for the production process of the adjacent the petrochemical complex.

Canada's CO2 tax to hit CCGTs

Aug 5 – Change in Canada’s carbon emissions tax regulation for new power plants has changed to also affect cleaner-burning, gas combined-cycle power stations starting from 2021. The move could significantly lower the profitability of gas generation and could prompt SaskPower reconsider its planned Moose Jaw gas power station.

GE CFO steps down

Aug 2 – Jamie S. Miller, General Electric’s chief financial officer, has decided to quit after two years in the job and 11 years with the company. Having overseen GE’s fiscal activities during a period of intense restructuring, Miller will remain in office while the GE board is looking for a successor.

Siemens HR boss quits

Aug 1 – Janina Kugel, Siemens chief HR officer, is leaving the company amid an apparently scattered working relationship and stark personal differences with CEO Joe Kaeser. Her contract will expire by mutual agreement on January 31, 2020.

ABB standardizes eBus chargers

July 31 – Zurich-based ABB, a member of the ASSURED consortium, is working on standardizing the specifications for automatic charging of heavy vehicles. The aim is to drive down the total cost of ownership for electric fleet operators, helping increase adoption of eBuses and eTrucks. Conformance and interoperability tests will be carried out in Q4-2019.

U.S. Senate helps fund EV charging stations

July 30 – The need for expanded electric vehicle charging infrastructure is greater than expected given that there had been over 1.75 million electric vehicles (EV) in North America at the end of 2018, a nearly 60% increase from the previous year. To help fund additional charging stations, among other things, the U.S. Senate approved the $287 billion America’s Transportation Infrastructure Act (ATIA).

PNOC, Lloyds to develop merchant LNG-to-Power projects

July 29 – Philippine National Oil Co. (PNOC) has signed a Memorandum of Understanding (MoU) with Lloyds Energy to develop a 1,200 MW LNG-fuelled power plant in partnership with Mitsubishi. Dubai-based Lloyds Energy is looking at ways to develop integrated LNG import facilities and gas power plants on a merchant basis in Bataan and Batangas provinces.

Macquarie finances CCGT in Mexico

July 26 – Macquarie Capital has chosen Credit Agricole, Natixis and SMBC to co-finance a $380 million combined-cycle gas power plant. The 560 MW plant is designated to be built in San Louis Potosi, a city in central Mexico.

Naturgy cashes in on gas network

July 25 – Spanish gas utility Naturgy has posted a 7% rise in core earnings for the first half of the year due to strong gains from its gas network business that helped offset falling revenues from power generation and slimmer LNG margins.

French court rejects appeal against Total CCGT

July 24 – Judges at an appeal court in Nantes have thrown out an appeal by environmentalist against Total’s planned Landivisiau combined-cycle gas power plant in Brittany. The 440 MW project, initiated by Direct Energy which was since acquired by Total, is over two years behind schedule. The French grid operator RTE has singled out the Landivisiau CCGT as “critical” in guaranteeing supply security in winter 2020/21 due to the planned shutdown of four coal power plants.

U.S. gas production falls in wake of ‘Barry’

July 23 – Shut-ins related to Hurricane Barry have scaled back U.S. gas production by 1.6 billion cubic feet per day, compared to last week, while power sector gas demand rose by just over 2.0 bcf/d. Consequently, there is significantly less gas available for storage so the injection rate has halved, according to Energy Aspects figures.

Blackout after fire at Madison substation

July 22 – Electricity is gradually being restored at Madison, Wisconsin, after 13,000 people experience a blackout following an explosion at a substation near Madison Gas & Electric’s 100 MW gas-fired Blount Generating Station. No injuries were reported.

Fuel switch could abate 1.2bn tons of CO2

July 19 – Some 1.2 billion tonnes of CO2 could be abated by switching to gas using existing infrastructure, if prices and regulation are supportive. According to the International Energy Agency (IEA), this would be enough to bring global CO2 emissions back down to where they were in 2013.

IEA launches methane tracker

July 18 – A new ‘methane tracker’, launched by the International Energy Agency (IEA), provides up-to-date estimates of current oil and gas methane emissions by drawing on the best available data. Analysts stressed methane emissions could be reduced by nearly half at no net cost.

Canada’s CO2 tax also affects gas power

July 17 – Change in Canada’s carbon tax regulation for new power plants has changed to also affect cleaner-burning, gas combined-cycle power stations starting from 2021. The move could cause SaskPower to reconsider its planned upcoming Moose Jaw gas power station.