Projects & Finance

The Iraqi developer Maisan Power Company (MPC) and CITIC Construction have selected Siemens to supply the entire power generation equipment for the 840 MW Maisan combined-cycle power plant in southern Iraq. According to Siemens, the contract is worth more than 284 million Euros and the Maisan CCGT is due fully operational in early 2022.

Australian-listed Energy World Corp (EWC) has added two gas compressors at its LNG regas plant at Kampung Baru to boost gas flows to its 315 MW power station at Sengkang, South Sulawesi. By ensuring flexible supply, EWC seeks to extend its power purchase agreement with the Indonesian national utility PT Perusahaan Listrik Negara beyond September 2022.

Chicago-based J-Power USA, part of Electric Power Development Co. of Japan, has started construction of the 1,200 MW Jackson Generation Project in Will County, Illinois. Once operational, the Jackson CCGT will feed all electricity into the PJM market zone.

Dubai-based Lloyds Energy has proposed to realize a 1,200 MW merchant power plant, fuelled by regasified LNG, in the Philippines. The integrated LNG-to-Power project is meant to be built in partnership with the Japanese turbine manufacturer Mitsubishi.

Volkswagen AG has tasked Mitsubishi Hitachi Power Systems Europe (MHPS Europe) to replace two coal-fired blocks at its ‘Heizkraftwerk West’ CHP plant, with a gas-fired double power block. The new units will be built on a turnkey basis on VW’s automotive factory grounds in Wolfsburg, northern Germany.

GE Power was awarded the tender for supplying a variable speed drive system to Oman LNG as part of its debottlenecking project. Installation of new 18 MW two-pole motors and variable speed drives is set to increase Oman LNG’s overall production at project completion across three liquefaction trains.

J-Power USA Development has ordered two M501JAC power trains from Mitsubishi Hitachi Power Systems (MHPS) for the 1,298 MW Jackson Generation Project in Elwood, Illinois. The new combined-cycle gas power plant will also feature MHPS-TOMONI Very Low Load (VLL) technology which helps to balance intermittent renewable generation.

MAN Energy Solutions has commissioned three 14V51/60 gas and another three dual-fuel engines in a newly-built power plant on the North Mole in Gibraltar Harbor. Part of the waste heat from the engines will be used for regasifying liquified natural gas in the connected LNG terminal.

InterGen has started full commercial operations at its 300 MW Spalding extension gas power plant, situated next to the existing 880 MW Spalding power plant in the northeast of England. Built at a cost of £100 million ($126m), the open-cycle unit is backed by a 15-year capacity market contract.

Irish state-owned ESB has accumulated a pre-tax loss of £13 million in the past financial year on operating the 455 MW Coolkeeragh combined-cycle gas power station in Londonderry. Operating profits plunged 82% over the past three years to £4.4 million, with ESB blaming "significant increases in cost of sales for gas and carbon."

Noor Abu Dhabi – the world’s largest single solar power project with a capacity of 1,117 MW – has started commercial operation in Dubai, helping to make energy use in the Gulf State more sustainable. Intermittent electricity supply from the solar project is being backed up by flexible gas-fired generating capacity.

Helping to dent Cambodia’s urgent need for electricity, Wärtsilä is delivering a 20 MW flexible baseload on a fast track basis. Ordered in June 2019 by CGGC-UN Power Co, the Chinese EPC contractor, the plant is built on behalf of Electricite du Cambodge (EDC) near Phnom Penh and is due to start up in early 2020.

Japan’s leading utility Jera and JXTG Nippon Oil & Energy Corp have handed an engineering, procurement and construction (EPC) contract to two Toshiba affiliates to build three LNG-fuelled power plant units with a combined capacity of 2.34 Gigawatt (GW) power generation units adjacent to Goi coal power station in eastern Japan.

APR Energy has been awarded a contract by the Mexican private power producer Saavi Energía to provide and install three mobile gas turbines for nearly 80 MW peaking power plant in Mexicali, Baja California. The flexible gas peaking power unit will help alleviate the risk of regional power shortages that increased following a reduction in power imports from California.

Siemens will supply a power island for the new Yerevan-2 combined-cycle gas unit and operate the plant for 20 years. SFS, Siemens’s financing arm, provided funding and holds a 40% share in the project company ArmPower. Having reached financial close, construction is about to start with a view to get the CCGT unit commissioned by mid-2021.

Page 7 of 153

News in Brief

Slow start of STT pipeline

Oct 18 – U.S. gas exports to Mexico have not picked up substantially despite the start of the Sur de Texas-Tuxpan (STT) pipeline. Exports are still below 6.0 billion cubic feet per day (bcf/d), although there no current postings regarding maintenance on the Sistrangas pipeline that feeds from NET Mexico.

EIB defers ban on fossil projects

Oct 17 – Luxembourg-based European Investment Bank (EIB) has bowed to pressure from Germany and the European Commission and deferred its decision to ban loans to fossil-fuel projects until mid-November. Germany wants the bank to keep financing gas-fired power projects as it views the cleaner-burning fossil fuel as a vital backup for renewable energy sources.

Brexit will not impact UK gas supply

Oct 16 – Security of power and gas supply in the UK will not be jeopardized this winter by the country’s imminent departure from the European Union, even in the event of a hard Brexit, National Grid said. In its assessment, the TSO factored in a halt to flows via the Belgium and Dutch gas interconnectors “from EU exit day one”, but said ongoing deliveries from Norway, the UK Continental Shelf and storage will continue as usual.

Ferrybridge C gets demolished

Oct 15 – Four cooling towers at the Ferrybridge Power Station have been taken down as the coal-fired power station will make way to a new, high-efficiency gas power station. Operator SSE shut down the 500 MW Ferrybridge C unit in March 2016 and now started to tear it down.

Global energy storage tops 10 GW by 2025

Oct 14 – The global market for grid-connected energy storage will grow by 6,900 MW, or 16.6% to reach over 10,500 MW by the end of 2025, according to Reportlinker.com. Germany will add over 267 MW energy storage installations over the next five to six years, while 330 MW will come from other European markets. These numbers are dwarfed by China, where up to 1,200 MW energy storage units could be connected to the grid by 2025.

Wärtsilä services EDL plant

Oct 11 – Energy Developments Ltd (EDL) of Australia has awarded Wärtsilä a service contract for gas engine-based baseload power plant at the McArthur River zinc mine in Northern Territory. The maintenance approach for the 53 MW onsite power plant is no longer pre-planned and scheduled but has been changed to condition-based and predictive maintenance, with an advisory contract.

EPH buys CCGT in Galway

Oct 10 – The Czech energy company EPH has received regulatory approval to purchase an 80% stake in the 400 MW Tynagh Energy combined-cycle gas power plant in Galway, Ireland. Mountainside Partners will continue to own the remaining stake in the CCGT, which operates based on a security-of-supply contract from the Irish TSO based on guaranteed power prices.

ITM gets £38m boost from Linde

Oct 9 – Sheffield-based ITM Power, maker of electrolysers for hydrogen production, has been boosted by a £38 million cash injection, as Linde acquired a 20% stake in ITM at 40 pence per share. Looking ahead, ITM said it is seeking to raise £14 million from new and existing institutional investors.

Drax to convert two power units

Oct 8 – Drax Group has received government approval to convert up to two coal-fired generating units at its power station in North Yorkshire to run on natural gas. With this ruling, the UK regulator overturned objections by ClientEarth, stressing some fossil power is vital for the UK to backup intermittent renewable power source.

Storage use tops 80% in key U.S. regions

Oct 7 – Gas storage utilization in the United States is rising in the autumn, with net injections topping 112 billion cubic feet (Bcf) in the first week of October. According to EIA figures, underground storages are at least 80% full in the East, Midwest, and South Central non-salt regions, allowing for seasonal withdrawals to help meet peak-day gas demand throughout the upcoming winter.

Maine, NY aspire to 100% clean energy

Oct 4 – Three U.S. states—Maine, New York, and Ohio—have updated their renewable portfolio standards (RPS), since May 2019. As a result, Maine and New York joined California, Hawaii, Nevada, New Mexico, and the District of Columbia in requiring 100% clean electricity by 2050.

TransAlta to built CHP in Alberta

Oct 3 – Canada-based Transalta and SemCAMS Midstream have agreed to develop, construct and operate a new cogeneration facility at the Kaybob South No. 3 sour gas processing plant in Alberta. To be built at a cost of some 105 million, the CHP will have an installed capacity of 40 MW. Start of commercial operation is targeted for late 2021.

GE’s 100th HA turbine sold in Greece

Oct 2 – Greek industrial firm Mytilineos has ordered a GE 9HA.02 gas turbine to be the heart of the 826 MW Agios Nikolaos combined-cycle gas power plant. This deal also marks the 100th unit of GE’s HA gas turbine sold. Construction of the CCGT is due to start before the end of the year.

ABB launches M4M analyzer

Oct 1 – Swiss technology firm ABB has launches its first Bluetooth-equipped network analyzers, called M4M. The system gathers data from distribution grids and connects them to a cloud-based control system, allowing users to react on energy consumption and on-site power generation trends.

Microsoft invests in wind power

Sept 30 – Microsoft and ENGIE have entered a long-term solar and wind energy power purchase agreement (PPA) in the United States. The deal will see Microsoft purchase a total of 230 MW from two ENGIE projects in Texas, bringing Microsoft’s renewable energy portfolio to more than 1,900 MW.

Gazprom tackles issue of ownerless gas grid

Sept 27 – Gazprom, the main supplier of pipeline gas to Europe, is trying to settle the issue of ownerless gas pipelines – a relic of the former Soviet Union. Abandoned gas transmission pipeline spanned 6,651 kilometers as of March 1, with the issue seen as “especially acute” in the North Caucasus region where half of this infrastructure is located. If no owner registers these facilities within three months, Gazprom will take over to ensure reliability and safety.

Investors flock to Myanmar

Sept 26 – Fitch Ratings has singled out Myanmar’s power sector as one of the largest beneficiaries of foreign direct investments (FDI) worldwide. Nearly $21.2 billion was poured into power generation and energy infrastructure projects thus far in 2019, which is 27% of total FDI under the Myanmar Investment Law.