Projects & Finance

South Korean conglomerate Hynix has announced plans to invest over 1.68 trillion won ($1.49 billion) to build LNG-fuelled power stations adjacent to its semiconductor plants in Icheon, Gyeonggi Province, and Cheongju, North Chungcheong Province. The two plants are scheduled to start up by 2022.

The Argentine utility Central Puerto has purchased the 280-MW Brigadier López power plant from state-owned Integración Energética Argentina for an estimated $165 million, effective April 1. The buyer said it aims to boost the installed capacity of the open-cycle gas power unit by adding a 140-MW steam turbine.

Boston-based Clean Energy Future has stepped up efforts to raise financing to start construction of the 940-MW Trumbull Energy Center in Lordstown, Ohio, this summer. The aim is to commission the plant in 2020. The project had been held up by a lawsuit with Macquarie, the majority owner of the nearby Lordstown Energy Center.

PTT Global Chemical (GC) has signed a 10-year extension to its service agreement with General Electric that will see the latter service six GE 6B and three Frame 5 gas turbines at GC’s Map Ta Phut Industrial Estate power plant in Rayong, Thailand.

ABB’s service team in the United Arab Emirates has installed Ekip UP circuit breakers – low-voltage digital monitoring and control units – in substations run by the Sharjah Electricity & Water Authority (SEWA). The retrofit lowered cost by 50% and dramatically improved the units’ operational flexibility.

The Australian government has agreed to support a second Bass Straight interconnector – the 1.2 GW Project Marlin – with up to A$65 million ($40m). The funding was granted based on a feasibility study by TasNetworks which shows the power cable, set to deliver renewable power from Tasmania to Victoria, is both technically feasible and economically viable.

Following a 9E gas turbine installation at Iraq’s Ministry of Electricity’s (MoE) Al-Quds power plant, GE Power now prepares to provide maintenance, supply part and rehabilitation services for up to seven 9E turbines at the 874-MW plant in 2019.

Novel, a Swiss-Italian joint venture between Alpiq and Geogreen, has turned to General Electric to modernize its gas combined-cycle cogeneration power plant in Novara, northwest Italy. The contract will see GE upgrade the gas turbine that drives the CHP to increase power output and steam for the industrial process at Radici Chimica’s chemical plant.

Taiwan Power Company has awarded a contract worth 130 billion Japanese Yen ($1.17bn) to GE and its EPC partner Marubeni for the DaTan 8&9 project. The upgrade will see GE equip the units with four HA turbines, boosting output to over 2,000 MW.

After more than a century in operation, Alabama Power’s 1,221 MW Plant Gorgas will be shut down as retrofits, mandated under Obama-era regulation, would be too costly to run it at a profit. Retrofits related to the handling of coal ash would cost around $300 million, said the operator, who now takes steps to shift to cleaner fuels.

To stabilize power supply in Guinea, MAN Energy Solution will install six 18V32/40 engines in a power plant near the capital city Conakry. The 53 MW power plant is being set up on behalf of Guinea’s Tè Power Company in collaboration with the Turkish EPC company Iltekno.

Mitsubishi Hitachi Power Systems (MHPS) has won an order to supply a turbine and other components for a blast furnace gas (BFG)-fired combined-cycle plant build to power operations of the Chinese steelmaker Maanshan. Operations of the 180 MW plant are scheduled to start at the end of 2020.

Electricity, not natural gas, will drive the compressors of the Annova LNG export project in a bid to lower the facility’s carbon footprint. Developers already signed an agreement with the South Texas Electrical Cooperative (STEC) for supplies of 405 MW of electricity to cool and liquefy up to 6 mtpa of LNG.

Ground has been broken on the Montgomery County Power Station, a 993-MW combined cycle gas turbine plant under construction next to the existing Lewis Creek Power Plant in Willis, some 46 miles north of Houston. For Energy Texas it is their first plant in 40 years, and due operational by mid-2021.

Bangladesh’s Ministry of Power, Energy and Mineral Resources and Siemens have signed a joint development agreement for the construction of an integrated LNG regas and power generation project. The 3,600 MW plant will be built at Payra, a small seaport in southern Bangladesh.

Page 6 of 145

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.