Projects & Finance

Thailand-based Gulf Energy Development Public Co. has agreed with government of Vietnam to develop an integrated LNG import and power project in Ninh Thuan province. The $8 billion project includes a 6,000 MW combined-cycle gas power station and an adjacent LNG regas terminal.

Gazprom has completed feeding natural gas from the Chayandinskoye field in Yakutia into the Power of Siberia interconnector to China. Once fully operational, the 38 billion cubic meters per year pipeline will deliver Russian gas to CNPC under a 30 year offtake agreement starting from 2023.

Statera Energy, developer of fast-ramp power plants and energy storage, has contracted MAN Energy Solutions to deliver 24 reciprocating gas engines that will supply a total of 300 MW backup power to the UK grid. The recip engines will power six 50 MW plants to be built in the coming 18 months.

Ghana National Gas Company (GNCC) will start feeding first gas from the Atuabo Gas Processing to a Karpowership later today. The 470 MW Karendeniz Powership ‘Osman Khan’ is scheduled to commence full operation on October 31.

Dangote Cement has asked GE to modernize seven LM6000PC aeroderivative gas turbines and install its Asset Performance Management (APM) at Dangote’s cement plants in Obajana and Ibese, Nigeria. The upgrade will enhance performance of the onsite power station and help reduce unplanned downtime.

Pakistan’s K-Electric has contracted Siemens and Harbin Electric to build a new 900 MW combined-cycle power unit within 24 months at the Bin Qasim power complex in Karachi. Works on the CCGT, to be powered by two F-class gas turbines, will start before the end of this year.

Russia’s Gazprom has revised downward its investment program and budget for this year, slashing expenses by 3.142 billion Rubles ($49m) to 1,322.582 billion Rubles ($20.7bn) thanks to “project optimization”. Most capital-intensive are Gazprom’s upstream projects in the Yamal Peninsula and eastern Russia, as well as the Power of Siberia pipeline to China.

Biogas pioneer BENAS has enlarged its combined heat and power plant in Lower Saxony by adding two Jenbacher J620 gas engines. The new 3.05 MW engines add to the five installed J320 engines (5.24 MW each) and turn the complex into the largest biogas-based CHP in Germany.

Align Renewable Natural Gas (RNG), a new joint venture by Dominion Energy and Smithfield Foods, will capture methane emissions from hog farms in North Carolina and convert them into natural gas for use in decentralized power generation. The initiative is meant to help cut the JV’s emission 25% by 2025.

Golar Power is moving ahead with an integrated LNG-to-Power project in Brazil’s northern state of Para, after securing a 25-year power purchase agreement (PPA) from the Brazilian authorities. The 605 MW power unit is scheduled to start operations in January 2025.

Malaysia’s TNB Northern Energy, funding vehicle of TNB Prai, has received a triple-A rating when issuing Islamic securities (Sukuk) over 1.475 billion Malaysian Ringgit (US$0.35bn) to finance its latest power plant. The 1,072 MW Prai combined-cycle gas power plant in Penang receives only availability-based revenue.

MAN Energy Solutions has fully commissioned a combined heat and power plant on behalf of the municipal utility in Schwäbisch Hall, southern Germany. The new 12V35/44G TS gas engine increases cogeneration efficiency by 20%.

Saudi Arabia’s Acwa Power and Saudi Aramco have contributed nearly $3 billion in funding for an integrated LNG-to-Power project in Bangladesh. The 3,600 MW power plant and an integrated LNG regas terminal will be jointly build by the Bangladesh Power Development Board (BPDB) and its Saudi partners.

Financing has been agreed for the $868 million Taweelah independent power and water desalination project, the world’s largest reverse osmosis facility. The Emirates Water & Electricity Company (EWEC) and ACWA Power will build the new plant at the Taweelah complex in Abu Dhabi.

Emirates Water & Electricity Company (EWEC), part of Abu Dhabi Power Corp, has received six bids from potential developers of the 2,400-MW Fujairah F3 independent power project. The proposals are now being scrutinized and EWEC plans to announce the winning bidder in January 2020.

Page 4 of 157

News in Brief

ExxonMobil enhances turbine oils

Jan 17 – New high performance turbine oils, developed by ExxonMobil Lubricants, are  entering the market which are formulated to prevent build-up of lacquer, varnish and deposits. The oils are designed to protect against thermal and oxidative degradation, one of the root causes of deposit build-up.

Wärtsilä signs O&M deals in the Bahamas

Jan 16 – Following the commissioning of a Wärtsilä-built 132 MW power plant in Bahamas in December, the Finish manufacturer now signed a two-year operation and maintenance (O&M) accord with the plant owner, the Bahamas Power and Light Company (BPL). Wärtsilä will transition, train, and develop the owner’s Bahamian work force and provide key performance guarantees.

China, S'Korea curtail coal to tackle air pollution

Jan 15 – Beijing city government’s aggressive approach to tackling air pollution is working and South Korea’s spring coal-fired curtailments show some success in cutting seasonal emissions. According to Wood Mackenzie, this should benefit LNG, particularly while spot prices remain low.

Sri Lanka at brink of power shortages

Jan 14 – Sri Lanka could face power cuts by March, after plans for a large-scale coal power plant were been cancelled just prior to start of construction, and a tender for a 300 MW diesel plants ended up in court. On the demand side, pressure is building up as the region is moving into the dry season in February and March. Weather warnings say the island is likely to receive lower than average rainfall in the first quarter of 2020.

Caterpillar’s new genset comply with UK & German grid codes

Jan 13 – Caterpillar Inc. has launched a series of new generator sets that comply with the new G99 United Kingdom, VDE-AR-N 4110 German and Belgium C10/C11 grid codes. The following gensets – G3500H, CG132B, CG170, and CG260 (rated from 280-4,500kVA) – have been verified to be able to accommodate different reactive power modes, active power functions, and connection conditions for normal operation or reconnection after mains decoupling.

Transneft launches battery-based power supply for ILI tools

Jan 10 – Transneft Diascan, the largest Russian inspection service provider for pipelines, has developed and put into operation a power supply system for in-line inspection (ILI) tools based on rechargeable batteries. Flaw detectors performing inspections of trunk oil pipelines, gas pipelines and oil product pipelines can now use the energy from rechargeable batteries, which helps save time and reduces the cost of in-line inspection.

Pavilion starts trading LNG out of Madrid

Jan 9 – Singapore-based Pavilion Energy has completed the acquisition of all gas and LNG assets of the Spanish utility Iberdrola. From its new European headquarters in Madrid, Pavilion said has launched 2020 LNG trading operations with supplies focusing on Spain and the UK market.

Gazprom extends gas transits via Belarus until 2021

Jan 8 – Gazprom and Gazprom Transgaz Belarus have sealed additional agreements to extend the contracts for gas supplies to and gas transportation across Belarus until 2021. According to the newly-signed documents, the contractual supply and transit volumes in 2020 will remain at the level of 2019.

EastMed pipeline to take FID by 2022

Jan 7 – Greece, Cyprus and Israel have signed an agreement to build the 1,900-kilometre EastMed pipeline at an estimated cost of 6 billion Euros. The subsea pipeline, spanning over 1,900-kilometres would initially carry 10 Bcm of gas per annum from Israeli and Cypriot waters to Crete and then on to the Greek mainland and into the European gas network via Italy. A final investment decision (FID) is meant to be reached in 2022, given that the pipeline is scheduled for completion by 2025.

U.S. energy-related emissions drop over 2%

Jan 6 – Fewer emissions from coal consumption, combined with lower energy demand, have helped to significantly reduce the overall energy-related carbon emissions in the United States. According to government statistics, energy-related CO2 emissions fell 2.2 percent last year, and the downward trend is forecast to continue into 2020.

Brent crude prices surge

Jan 3 – North Sea Brent crude prices have risen to their highest level since September 2019, up nearly $3 per barrel because of Middle East tensions coupled with improved Chinese economic forecasts. Brent crude futures for March 2020 delivery were last seen trading at 69.21 per barrel the Intercontinental Exchange (ICE). This bullish price sentiment will feed through to oil-indexed natural gas contracts and LNG deliveries, linked to the Japanese crude cocktail (JCC) basket price.

IEA says coal’s fate tied to Asia

Dec 23 – Rapid rise of wind and solar power in many parts of the world has pushed coal-fired power generation into steep decline in most developed countries. "But this is not the end of coal, since demand continues to expand in Asia," analysts at the International Energy Agency commented: "The region’s share of global coal power generation has climbed from just over 20 percent in 1990 to almost 80 percent in 2019, meaning coal’s fate is increasingly tied to decisions made in Asian capitals."

Drop in coal-burn makes Germany edge closer to climate targets

Dec 20 – In 2019, Germany managed to increase its greenhouse gas emissions for the second year in a row, mainly due to a 20 percent drop of coal use for power generation and a growing contribution from renewables. Energy savings and efficiency increases also helped. According to calculations by energy research group AG Energiebilanzen (AGEB), Germany’s primary energy consumption declined by 2.3 percent this year, overall energy use fell more than 2 percent, and energy-related CO2 emissions fell by as much as 7 percent.

Glencore buys Orsted’s lgas business unit

Dec 19 – UK-listed mining company Glencore has agreed to take over a loss-making natural gas business from Orsted, including long-term import capacity at the Gate regas terminal in Rotterdam and five other LNG purchase agreements. “The transaction entails a payment from Orsted to Glencore and will result in a loss that exceeds our current provision related to the LNG activities,” stated Copenhagen-based Orsted without disclosing the value of the transaction.

Carbon-intensive firms may shed over 40% in value

Dec 18 – Energy- and carbon-emissions intensive companies could lose up to 43% of their value if national governments enact more stringent policies to reduce air pollution and tackle climate change. Companies using green energy, in contrast, could gain up to 33% in value, research by the United Nations-backed Principles for Responsible Investment (PRI) finds.

COP25 – a “lost opportunity”

Dec 17 – UN Secretary António Gutierrez has dismissed the outcome of the COP25 climate talks in Madrid as “disappointing” and “lost opportunity“. Some of the world’s largest emitters, including Australia, Brazil, China and Saudi Arabia had joined the U.S. in pushing for accounting loopholes to weaken commitments to reduce emissions in the transport and power generation sector.

Industry produces over 13% of Germany’s electricity

Dec 16 – Decentralized power generation at industrial sites keeps rising in Germany. According to the Federal Statistical Office (Destatis), industry produced 55 Terawatt-hours (TWh) of in 2018, meaning local units of mining and manufacturing generated 12.6 percent of the country's gross electricity output, mostly from gas-fired power units. The use of gas as a fuel for industrial power plants has consequently risen from around 35 percent to almost 50 percent over the last ten years.