Projects & Finance

Terna, the Italian power grid operator, has awarded Ansaldo Energy and ABB a €70 million order to design, supply and maintain of three asynchronous compensator sets to help enhance grid inertia. Commissioning will be completed in 2020.

Kuwait Authority for Partnership Projects (KAPP) will start selling half of its shares in the 1,500 MW Az-Zour North One Independent Water & Power Project (IWPP) to the public today. With this move, Kuwait is seeking to attract private investors to reduce the burden on state budgets.

Vietnam has asked Japan to help fund several LNG import terminals, trying to maximise its share from Japan’s committed $10 billion investment across Asia. Vietnam needs to import LNG from 2022 and annual demand is seen rise to 15 million tons by 2035, mainly spurred by the power sector.

US-based Excelerate Energy will proceed with developing a floating LNG import terminal in the Bay of Batangas, Luzon, having received the go-ahead from the Philippines. The FSRU will supply gas to power stations in the region, ensuring stable electricity for metropolitan Manila.

Specialty chemical group Evonik Industries has contracted Siemens to build a combined-cycle power plant as a turnkey project at the Marl Chemical Park in the German state of North Rhine-Westphalia. The two-unit CCGT will replace Evonik’s onsite coal power plant by 2022.

French power company EDF has admitted today that works for the Hinkley Point C nuclear power plant are running 15 months late and will cost nearly £3 billion more than the planned £22 billion. Critics dismiss new nuclear as expensive, compared with cheaper cost for gas gensets and offshore wind.

GE will carry out a GT26 HE gas turbine upgrade at Drax’s 420 MW Shoreham power station near Brighton. The upgrade will increase combined-cycle efficiency by about 2.5 % and add 44 MW of power at baseload operation, once implemented in 2021.

Britain’s energy giant Drax has been given the green light for a 299 MW open-cycle gas turbine (OCGT) at Abergelli in southern Wales. Developed at a cost of £90 million, the rapid-response power unit will run an average of 1,500 hours a year to help balance the grid.

Taweelah Asia Power Company (TAPCO) has awarded Ansaldo Energia a 10-year service agreement for their Taweelah New B Extension (TNBE) combined-cycle power plant in Abu Dhabi. The full-scope, turnkey service accord covers three Siemens SGT5-4000F turbines and related equipment.

Turning Bolivia into a regional energy hub, Siemens is converting three separate simple-cycle power plants into combined-cycle units, boosting output by more than 1 GW. Scope of delivery includes 23 SGT-800 gas turbines, 11 steam turbines and related equipment for a project value of 1 billion Euros.

Accelerating its clean energy transition, Duke Energy strives to curb carbon emission by at least 50% by 2030 with the aim of achieving net-zero CO2 from electric generation by midcentury. The company plans to at least double its portfolio of solar and wind by 2025, while deploying more low-cost gas power plants.

European-led Delta Offshore Energy is finalizing plans to develop an LNG import terminal and a 3,200 MW power station in Vietnam’s Bac Lieu Province. The integrated project is due to start up in 2023, underpinned by LNG cargoes from the Magnolia liquefaction project in the U.S. state of Louisiana.

Mass Energy Group Holding (MGH) and GE Power have won a contract to develop the third phase of Iraq’s largest power plant. Expansion of the Bismaya combined-cycle gas power station will add up to 1.5 GW by 2021, bringing its total capacity to 4.5 GW.

Iraq’s Ministry of Electricity has awarded a $1.3 billion contract to Siemens and Orascom Construction to rebuild Baiji 1 and 2 power units with a combined capacity of 1.6 GW. Works are meant to be completed 28 months after financial close.

Kogas and Energy Capital Vietnam (ECV) are forging ahead with a privately-funded LNG regas terminal, storage and gas supply system to underpin their 3,200 MW gas-fired power project near Mui Ke Ga, some 150 kilometres from Ho Chi Minh City. KBR will provide a feasibility study by the end of September.

Page 6 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.