Projects & Finance

The Finish technology group Wärtislä has built and handed over two gas engine-driven power plants in the Dominican Republic. The additional capacity is needed to meet rising electricity demand from the growing tourist industry on the island.

The heads of Gazprom and China National Petroleum Company (CNPC) have met in Beijing to fine-tune contractual terms and operational issues in preparations for first gas flows through the Power of Siberia interconnector. Gazprom CEO Alexey Milller said Russian pipeline gas deliveries to China "will start well in advance, as early as December 1, 2019” and would eventually challenge LNG shipments.

Mitsubishi Hitachi Power Systems (MHPS) has started trial operation of the gas turbines at the Jawa-2 Project. The 800 MW combined-cycle plant, built on behalf of Indonesia’s PT.PLN (Persero) is now in its final stage of completion, heading for a commercial start-up this May.

MAN Energy Solutions has handed over a new solution for combined heat and power generation (CHP) that includes a heat storage unit to EnBW Energie Baden-Württemberg, a regional utility in southern Germany. The 30-MW gas engine-driven plant in Gaisburg, near Stuttgart, produces electricity and district heating with an operational efficiency of up to 90%.

Global power sector engineering company Pöyry has completed its assignments for two combined-cycle power plants in Thailand. The Amata B. Grimm Power unit 4 and 5 (ABPR4 and ABPR5), with a capacity of 130 MW each, have started operation as scheduled.

Enka İnşaat, one of Turkey’s largest energy and construction firms, has halted operations of the loss-making Gebze and Adapari power plants. The two plants, with a combined capacity of 1,580 MW, were mothballed after a power sales agreement with state-run EÜAŞ came to an end.

Mitsubishi Hitachi Power Systems’ (MHPS) turbine, model M501 JAC, has been chosen to power what will become Virginia’s highest efficiency combined-cycle power stations. Developed by Gemma Power Systems and Balico, the Chickahominy CCGT will provide over 1,600 MW of electricity once completed in 2022.

Harrison Power is seeking to fast-tracking construction at its 1,100 MW combined-cycle power project in Cadiz, Harrison Country, Ohio. Though the groundbreaking date has been pushed back to Q1-2019, developers are seeking to get the CCGT into full commercial operation in the second quarter of 2021, providing electricity into the PJM Interconnection market.

Private equity firm Hull Street Energy has agreed to acquire the Bayswater and Jamaica Bay gas-fired power stations from a subsidiary of NextEra Energy (NEE) Resources. The two plants, situated in Far Rockaway, New York, provide some 110 MW of flexible, fast-start generating capacity to the region.

Paz Oil, the largest Israeli fuels company, has decided to move ahead with a plant to build a 700 MW gas-fired power plant in the port city of Ashdod. The proposed plant is estimated to cost up to $700 million, partly debt-financed, and is intended to start operating in 2023.

USC Iceberg Central Design Bureau, a Russian shipbuilding company based in St. Petersburg, has launched a tender for a 50-60 MW floating power plant. Potential bidders for the tender are asked to include both construction costs and long-term maintenance costs.

Dubai Electricity and Water Authority (DEWA) has announced it completed 98% of the Jebel Ali M-Station expansion project. The expansion is adding two gas-fired units with a combined 700 MW and will increase M-Stations total capacity to 2,885 MW.

The Austrian manufacturer INNIO has secured an order by Chongqing Energy Investment Group to supply eight Jenbacher J620 gas engines. The units will expand the capacity of Songzao Coal Mine’s on-site power plant, running on coal mine methane (CMM).

Delta Offshore Energy and GE are jointly developing an integrated LNG import terminal and 3,000 MW power plant in Vietnam. The project, situated in Bac Lieu province, is developed on a build, own and operate (BOO) basis and is funded by foreign direct investment.

Power traders have reserved, or firmly booked, over three-quarters of the 1,000 MW day-ahead transmission capacity at Nemo Link, the new interconnector between Belgium and the UK. The £560 million (€639m) project by National Grid and Elia was delivered on time and under budget.

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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.