Projects & Finance

Stadtwerke Frankfurt (Oder), the municipal utility of the German-Polish border town, has tasked MAN Energy Solutions to plan and deliver a new combined heat and power (CHP) plant. Powered by five MAN 20V35/44G gas engines, the CHP will produce 51 MW electrical energy and 50 MW district heating.

The UK Planning Inspectorate has granted permission to Sembcorp Utilities, part of the Singapore-based energy infrastructure developer Sembcorp Industries, to build a 1,700 MW combined-cycle gas turbine power station at Wilton in Teeside, northeast England.

General Electric’s energy grid solutions business has been awarded two contracts from the Governments of Benin and Cote d’Ivoire to upgrade the distribution grid and improve the power capacity of substations to reduce energy losses. Electrification rates lie below 45% in many countries in Sub-Saharan Africa, making grid-development a key issue energy security of households and businesses.

Entergy Corp.’s affiliated utilities in Louisiana, Arkansas, Texas and Mississippi are in the final stages of building and about to acquire a total of 4 GW gas-fired generation capacity by the end of 2020, the utility said in its Integrated Resources Report. The first new CCGT to start operating will be the 980 MW St. Charles Power Station in Montz, slated for commissioning this summer.

The International Finance Corporation (IFC), a multilateral development agency and part of the World Bank Group, has said it provided a 15-year loan over $228 million to fund LNG-to Power project in Porto do Açu, Brazil. GNA also received BRL1.76 billion ($457 million) in financing from the development banks of Brazil and Germany, BNDES and KfW Ipex-Bank.

Mitsubishi Hitachi Power Systems (MHPS), in consortium with Elsewedy Electric, has won two major orders from Sharjah Electricity & Water Authority (SEWA): a $550 million EPC contract to expand the 2,850 MW Al-Layyah power plant as well as a turnkey construction contract for 1,026.3 MW combined-cycle gas power plant, due to start up in mid-2021.

ARGE Netz, a German green energy provider, is cooperating with MAN Energy Solution and the Swedish utility Vattenfall to realize the first industrial-scale Power-to-Gas project in Brunsbüttel, northern Germany. Called HySynGas, the project will turn renewable energy from nearby wind parks into hydrogen and syngas, usable as a vehicle fuel or for power generation.

Gás Natural Açu (GNA) has selected Siemens for the turnkey construction of the ‘GNA 1’ integrated LNG-to-Power project (1.3 GW), situated at Port of Açu northeast of Rio de Janeiro, Brazil. There is substantial scope for expansion, Siemens said, as developers already won licences to implement a second CCGT unit, ‘GNA 2’, which will bring the overall capacity to 3 GW.

Emirates Global Aluminum (EGA) and Siemens have entered the first power services agreement for an H-class gas turbine in the United Arab Emirates (UAE). The AED1 billion ($272 million) power unit is being realized by a joint venture between Mubadala and Dubai Holding adjacent the smelter of EGA, which pledge to buy all electricity from the plant for 25 years.

Jordan’s National Electric Power Company (NEPCO) has put its Zarqa combined-cycle power plant (485 MW) into full commercial operation. The CCGT, realized as an independent power project (IPP) by ACWA Power, reaches up to 51% combined-cycle efficiency.

Mitsubishi Heavy Industries (MHI) has signed an agreement to deliver equipment for Eni's and ExxonMobil’s Rovuma LNG export joint venture in Mozambique. Subject to FID on the project, Mitsubishi Heavy Industries Compressor Corp (MCO) will supply the main liquefaction compressors and Mitsubishi Hitachi Power Systems (MHPS) will provide dual-shaft, H-100 gas turbines (120 MW) as mechanical drivers.

GE has helped China Power Hub Generation Company’s (CPHGC) to grid-synchronize two steam turbines at a 1,320 MW power plant in Pakistan in only 27 months after notice to proceed. The plant is a joint-venture project between China Power International Holding (CPIH) and Pakistan’s Hub Power Company (HUBCO).

INNIO, a carve-out from GE following Advent International’s takeover of GE’s Distributed Power, won an order to supply six Jenbacher gas engines for the LEMENE microgrid project in Finland. LEMENE will be the largest energy self-sufficient business district, using renewable energy and J416 and J420 gas engines for backup. The entire system is due commissioned by summer 2019.

Siemens has inaugurated Qatar’s second largest power station – the 2.5 GW Umm Al Houl combined-cycle gas turbine (CCGT) plant. First fire at the plant took place in April 2017 with first power delivered in August 2017, and combined-cycle running began in May 2018.

Asian Development Bank (ADB) and the International Finance Corporation (IFC) have entered the first-ever cofinancing of an infrastructure project in Indonesia by granting loans of $70 million and $50 million, respectively, for a 275-MW combined-cycle gas turbine power project in Riau, central Sumatra. Another $82 million will come from the commercial lenders Sumitomo Mitsui Banking and MUFG Bank.

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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.