Projects & Finance

New Fortress Energy (NFE), the owner of gas liquefaction facilities in Florida, will work with the Philippine National Oil Company (PNOC) to accelerate the deployment of LNG and power generation units. Two rival regas projects are already under development by First Gen and World Corp.

Long Ridge Energy Terminal plans to transition its 485 MW combined-cycle power plant to run on carbon-free hydrogen. With commercial operations planned for November 2021, Long Ridge will be the first power plant in the U.S. to blend hydrogen in a GE H-class gas turbine.

McDermott and Saipem have selected Siemens Energy to supply six SGT-800 industrial gas turbines for an onsite power plant at Mozambique LNG. The Total-led venture develops offshore fields in Mozambique’s Area 1 with a view to liquefying over 12 million tons per year of natural gas.

Japan's largest power producer JERA is reinforcing efforts to reach net-zero carbon emissions by 2025. All inefficient (supercritical or less) coal power plants will be either retrofitted with ammonia co-firing or shut down, complemented by new offshore wind projects.  

The steel maker of Hyundai auto group has broken ground on a plant that will produce hydrogen from waste heat generated by steel mills and by-product gas. Situated in Dangjin, some 70km southwest of Seoul, the plant will supply 2,000 tons of hydrogen annually from early 2021.

US engine maker Cummins will invest more than $25 million at its Seymour Engine Plant (SEP) over the coming years to create or retain over 150 jobs. The investment will improve the plant manufacturing capabilities and prepare for the addition of a new engine platform in 2024.

Spin-off Siemens Energy and the state of Berlin are looking at the feasibility of locating the manufacturer’s new corporate headquarters in Berlin-Moabit, adjacent to Siemens’ gas turbine factory. CEO Christian Bruch and CFO Maria Ferraro intend to move to their new offices at the start of 2021.

Japan’s largest utility JERA has notified the government about plans to build new combined-cycle gas power Units 7 & 8 at the Chita Thermal Power Station. The two 650 MW units are designed to reach a gross thermal efficiency of 63% and will be fuelled by regasified LNG.

Rolls-Royce will deliver and install a Bergen gas engines in an onsite power unit at the Dhamra LNG terminal in India, based on an order from DLTPL, a joint venture between Adani Group and Total.  The Dhamra LNG terminal is due for commissioning towards the end of 2021.

Three GE 9E.03 gas turbines have been rehabilitated at power plants, operated by Niger Delta Power Holding Company (NDPHC) in Calabar and Sapele, Nigeria. The service interventions reduce the risk of unplanned downtime and ensure stable supply of 360 MW electricity to the grid.

Mitsubishi has signed a full turnkey EPC contract to build a combined-cycle plant near Bangkok on behalf of Hin Kong, an independent power producer (IPP). The 1,400 MW plant will be powered by two M701JAC gas turbines that are slated for commissioning in March 2024 and January 2025.

Turkish Karadeniz Energy Group has brought Indonesia’s first ever floating LNG-to-Power project into operation. The 125 MW Karpowership Zeynep Sultan burns regasified LNG, supplied via a floating storage regas unit (FSRU).

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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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