Projects & Finance

The Asian Development Bank (ADB) and KfW, the German state-owned development bank, have agreed to expand their cofinancing partnership in Asia-Pacific with an additional $2 billion over the next 4 years. The funds will be used to promote sustainable economic development, a cleaner environment, and renewable energy.

The first two Siemens HL-class turbines ordered from a customer in Asia will be supplied for a new combined-cycle power plant in Yeoju, South Korea. Running on regasified LNG, the projected CCGT will have a generating capacity of more than 1 Gigawatt (GW).

Evol is investing to expand its Kiwinana liquefaction plant south of Perth to meet rising demand from small-scale, decentralized power producers in Western Australia. The Kwinana LNG plant, built in 2008 and designed to produce 175 tons of LNG per day from North West Shelf gas, will be expanded to 250 tonnes per day from April 2020.

GE Power has signed a 5-year maintenance contract with the Bangladesh Power Development Board (BPDB). The deal includes procurement of spares and services of the two GE 6F.03 gas turbines installed at the 225 MW combined-cycle gas power plant in the Bhola island district of Bangladesh.

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.

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News in Brief

Zhonghua’s profits halve

April 1 – Hong Kong-listed Zhonghua Gas Holdings has recorded a staggering 46.7% fall in profit, citing a lower margin for LNG supplies and reduced subsidies, although full-year revenue rose by 7.3%. In December, Zhonghua partnered with Shanghai Shenergy to supply LNG in the Yangtze River Delta region, and also has strong business relationships with Tractebel Engineering and Tianjin Jinre Heat-Supply Group.

Endesa donates $28m to fight coronavirus

March 31 – Endesa has created a 25 million euros ($27.8 million) fund to help fight the coronavirus pandemic in Spain. The Spanish utility, subsidiary of Enel, said the fund will be designated for purchases of protective equipment for health-care workers.

 

MAN develops liquid methane terminal in Swedish port

March 30 – OxGas has commissioned MAN Energy Solutions to act as ‘owners engineer’ to develop and build a liquefied methane-based fuels terminal in the Swedish Port of Oxelösund. The terminal will feed both LNG and green methane derived from bio gas to SSAB ’s local steel production, and to re-distribute it via train and trailers to other parts of Sweden for use in the steel industry and decentralized power generation.

American ISOs to delay grid investments

March 27 – North America’s independent system operators (ISO) are considering delaying investments in grid upgrades and enhancement as electricity demand weakens due to industry shutdowns to contain the coronavirus pandemic. PJM Interconnection, the largest U.S. bulk power market which spans 13 Mid-Atlantic and Midwestern states, revised its daily forecast of about 100,000 MW of load but actual demand came in at 95,500 MW.

Wärtsilä starts combustion trials using ammonia

March 26 – The Finish technology group Wärtsilä has initiated combustion trials using ammonia in an effort to reduce emissions. Based on initial results, the tests will be continued on both dual-fuel and spark-ignited gas engines, followed by field tests in collaboration with ship owners from 2022, and potentially also with energy customers.

Xodus sees growth in cable services

March 25 – Xodus Group has stepped up services related to subsea power cables over the last twelve months. The number of new consulting assignments grew by more than 50%, resulting in more than 70 active work streams that are handled by more 30 permanent staff.

Electricity “more indispensible than ever”

March 24 – Disruptions caused by the coronavirus crisis lay bare how much modern societies rely on electricity, according to the International Energy Agency (IAE). Millions of people are mandated to stay home, causing a surge in teleworking, e-commerce and video streaming which pushes up domestic electricity use.

U.S. frackers cut Capex

March 23 – Sharp cuts in capital spending among Appalachian gas producers are now being replicated in other U.S. basis, with Energy Aspects anticipating the deepest impact on production and earnings to take place starting from the second half of 2020. So far, E&P companies just hedged 52% of this year’s expected production even though some Appalachian producers are seen “lock in some pure gas volumes at prices above the curve.”

EV makers face bankrupcy

March 20 – Electric vehicles (EVs) remain particularly exposed to the corona effect of supply-side constraints and demand erosion. Gigafactory facilities are likely to be delayed and fledging EV manufacturers could face bankruptcy, Wood Mackenzie warns. On the flip side, declines in EV sector demand may be gains for the stationary energy storage segment.

Manufacturing rebounds in Asia

March 19 – Asian-dominant supply chains for solar and energy storage are gradually rebounding after contractions in February. Moving forward, Wood Mackenzie expects near-term development activity and local logistics in leading European and North American markets will outweigh lingering supply issues.

Italy’s gas demand plunges

March 18 – Corona-struck Italy has seen demand for natural gas plunge 8% from the previous week, with similar declines likely in other EU countries as national governments impose lockdowns to contain the virus. Industrial demand is “particularly volatile,” while gas generators will bear the brunt of demand loss, Wood Mackenzie says, as a carbon price decline is bolstering thermal coal.

Nexif raises funds for Rayong CHP

March 17 – Nexif Energy, a joint venture between Singapore-based Nexif and Denham Capital, has raised project financing for the Rayong gas-fired cogeneration project in Thailand. The 92 MW plant is being developed project with Ratch Group, based on 25-year power purchase agreement with Electricity Generating Authority of Thailand (EGAT).

ADB provides $10m loan for Afghan IPP

March 16 – The Asian Development Bank (ADB) has agreed to provide $10 million in debt financing for a gas-fired power unit in Mazari Sharif with a capacity of nearly 60 MW. Phase-1 of the Independent Power Project (IPP) will get another $10 million loan from the Leading Asia's Private Sector Infrastructure Fund (LEAP).

IEA models 50% Carbon-Free Generation

March 13 – Analysts at the U.S. Energy Information Administration (EIA) have drawn up the 50% Carbon-Free Generation case - assuming a stark shift in state-level policies. In this event, the U.S. would have 19% more nuclear power generation, 10% more wind power and 17% more solar PV contribution than in its Annual Energy Outlook 2020 (AEO2020) reference case.

E-charging market to top $15bn by 2030

March 12 – By 2030, the U.S. market for energy-optimisation in support of charging electric-vehicles could be worth $15 billion per year, McKinsey finds. The consultancy expects high demand for home-charging appliances as residential power tariffs are comparatively cheap and most charging can happen overnight when off-peak electricity prices are lower.

Oversupply builds up

March 10 – Energy Aspects’ end-March forecast has added on another 100+ billion cubic feet of natural gas supply while demand remains subdued. In the U.S., the seasonal decline in heating degree days nearly halved the natural gas withdrawal rate. Gas-burn in the power sector and residential/commercial demand are forecast to fall by 1.7 billion cubic feet per day (bcf/d) and 4.0 bcf/d, respectively.

Small-scale LNG cuts cost for power plants

March 10 – Decentralized gas power plants in remote locations can source cheaper fuel from small-scale LNG regas terminals than from trucking the super-chilled gas across long distances. “Trucking LNG further inland would entail additional costs as well as logistical challenges,” IEA analysts noted. For example, a 100 MW baseload power plant would require, on average, around 20 daily deliveries from tanker trucks.