Daily News

The Finish technology group Wärtsilä has signed an Engineering, Procurement and Construction (EPC) contract for a 100 MW/100 MW energy storage project in South East Asia. The energy storage, featuring the Greensmith GEMS software and GridSolv, will be used for grid balancing.

Summer gas prices in the United States are increasingly likely to fall to record lows not seen over the past 20 years due to high gas inventories and abundant new supply. For June, July and August, Henry Hub spot prices will average $2.37/MMBtu – some 19% lower than last summer’s average, the U.S. Energy Information Administration (EIA) forecasts.

French energy major Total has agreed to develop a floating LNG import unit in Benin, including an offshore gas pipeline to supply fuel to power plants in Maria Gléta. The Benin government seeks to develop a second gas power unit at Maria Gléta, just outside the large port city Cotonou.

National Grid and Energinet, the British and Danish TSOs, have signed contracts worth 1.1 billion Euros (£990 million), with suppliers for the 1.4 GW Viking Link. The two parallel HVDC cables will come from Prysmian Powerlink and NKT HV Cables, while Siemens will supply and install two converter stations.

Three partners – MAN Energy Solutions, Hydrogenious LOHC Technologies and Frames Group – have joint forces to design and build large energy storages, based on Liquid Organic Hydrogen Carrier (LOHC) technology. The companies already offer systems with hydrogen capacities of 5 and 12 tons per day.

US Well Services, a provider of well simulation for gas fracking, has mobilized PW Power System’s FT8 Mobilepac at its wellpads. The fast-ramp 30 MW aero-derivative gas turbines can balance large and sudden changes in power demand that are typical for hydraulic fracturing.

The sunny American Southwest is where gas peaking plants are losing out to solar-plus-storage projects, which pitch for tenders at less than $30/MWh. The cost for installing battery storage, based on a 20 MWh system with 4 hours of storage, plunged 40% over the past year to $357/kWh and Bloomberg New Energy Finance (BNEF) anticipates another 52% reduction by 2030.

Output of unit-1 at the 2,000 MW Sabia West combined-cycle power station has been boosted by more than 6%, or 35 MW, following GE Power's Advanced Gas Path (AGP) at two 9FA gas turbines. The extra output can be produced without any additional fuel.

Indiana-based Cummins has made an indicative offer to acquire MAN Energy Solutions, the large engine unit of Volkswagen Group. The German car maker reportedly also approached other MAN rivals to divest the engine maker before year-end, hoping to fetch some 3 billion Euros.

The French power grid operator RTE has halted operations of three nuclear power plants with a combined capacity of 3 GW amid a lack of cooling water as Europe’s latest heat wave unfolds. The onus is now on flexible combined-cycle gas power stations to balance the grid as demand for air conditioning surges amid scorching temperatures.

Northern Nigeria’s 215 MW Kaduna power plant will be fuelled by regasified LNG from Greenville’s import facility at Dufil Prima, Port Harcourt. A new gas pipeline will be built to deliver the fuel, and in the meantime, Greenville has committed to deliver the LNG by truck all the way to the power plant.

Siemens CEO Joe Kaeser has signed the Nigeria Electrification Roadmap, paving the way for a three-phased approach to add 7 GW of generating capacity and debottleneck the power grid. The aim is to eradicate today’s stark mismatch between power supply and demand by boosting installed capacity to 25 GW in the long run.

As Japan’s gas-burn in the power sector falls amid competition from coal, nuclear and renewables, the country is expected to lose its position as the world’s No.1 LNG importer to China by 2022. Despite sustained low LNG spot prices, it is cheaper for Japanese utilities to burn coal than natural gas.

With Europe’s gas demand seen surge nearly 30% to 400 Bcm by 2035, Russia is eager to grow its market share. Wood Mackenzie expects Gazprom will review its traditional, pipeline-based export model and turn to LNG instead, avoiding quarrels over new interconnectors like Nord Stream 2.

Jamaica’s Prime Minister Andrew Holness has confirmed the country is on track to generate half of its electricity from imported natural gas and renewables. The recent commissioning of New Fortress Energy's floating storage and regasification unit (FSRU) at Old Harbour helped boost the share of clean fuels to 44% of Jamaica’s energy mix.

News in Brief

Bonny Train-7 to cost $6.5bn

Sept 16 – Nigeria LNG is preparing to add a seventh processing train to Bonny LNG, bringing total capacity from 22 million tons per annum (mtpa) to 30 mtpa. Estimated to cost $6.5 billion, Bonny Train-6 will include a new liquefaction unit, a storage and a condensate tank as well as three gas turbine generators.

Schneider to complete L&T takeover by early 2020

Sept 13 – Venturing into India, Schneider Electric hopes to finalise the Rs 14,000 crore acquisition of Larsen & Toubro's electrical and automation business by early 2020. After the transaction is completed, Schneider will have a 65% stake in L&T, while the remainder will be held by Temasek.

MHI to advice China on energy conservation

Sept 12 – Mitsubishi Heavy Industries Thermal Systems, part of MHI, has set up a joint venture withan affiliate of State Grid Corporation of China (SGCC) to perform technical consulting for energy conservation projects in China. The focus of SGCC lies on building new decentralized power stations, biomass-derived power gensets and energy saving solutions.

Tender extended

Sept 11 – Turkmengas has extended a tender for the overhaul of the gas turbine engines of the NK-12ST and NK-14ST brands. Bidders need to pay to receive the tender documents, and then submit a written application to Turkmenistan’s state gas company.

Gas power units to buffer Germany’s coal exit

Sept 10 – Electricity output of Germany’s fleet of gas-fired power plants has risen to a over 13,5 billion kilowatt-hours in the three months from June to August, Fraunhofer ISE figures show. These productivity gains put CCGTs in pole position to balance supply swings in connection with the German coal exit.

Power of Siberia gas flows to start on Dec 1

Sept 9 – Russian gas supplies to China via the eastern route are going to start on December 1, 2019, Gazprom chairman Alexey Miller told his counterpart at CNPC in Beijing. The huge Chayandinskoye field, containing some 1.2 trillion cbm of gas, had already been connected to the 38 Bcm per year ‘Power of Siberia’ gas pipeline in August.

Hurricane Dorian causes havoc in the Bahamas

Sept 6 – In the aftermath of Hurricane Doran, a Category 5 storm, Bahamas Power and Light has said there is a total blackout in New Providence, the most populous island of the archipelago. Dorian made landfall twice on Sunday, ripping off roofs and electricity lines. In most parts, electricity has not been restored.

LNG cargoes via Bab-el Mandeb decrease

Aug 30 – Northbound LNG shipments via Bab el-Mandeb, a sea route chokepoint between the Horn of Africa and the Middle East, have fallen over the past three years as Egypt imports less natural gas from the Persian Gulf. In 2015 and 2016, both Jordan and Egypt imported up to 1.4 Bcf/d of LNG into Red Sea ports but these shipments fell sharply following the development of large gas finds in the Mediterranean.

Hokuriku Electric buys LNG cargo

Aug 29 – Japanese utility Hokuriku Electric has purchased an LNG cargo for delivery in November as soaring temperatures drew down gas in storage for the autumn. The cargo is understood to be scheduled for delivery in the second half of November from Malaysia’s Petronas and may well be destined for Hokuriku Electric’s first LNG-fired power generation unit,  the Toyama Shinko plant.

Technip spins off LNG activities

Aug 28 – TechnipFMC, has decided to spin off its European-based engineering and construction operations into a separate business, leaving the American half of the firm as an equipment supplier to the oil and gas sector. The split is due to be completed in the first half of 2020.

FLNG power market to top $930m by 2023

Aug 27 – The global market for floating LNG power vessel is projected to reach $ 931.6 million by 2023, up from $ 860.1 million seen last year, according to ReportsnReports. Major vendors of FLNG power vessels are Siemens, MAN, Wärtsilä, Caterpilar and GE which are targeting to use the technology to supply decentralized power to island nations in Southeast Asia and along the coast of sub-Saharan Africa and the Americas.

EIA monitors grid hourly

Aug 26 – The U.S. Energy Information Administration (EIA) has launched a beta release of its hourly electric grid monitor. The enhanced version analyses hourly generation by energy source and hourly sub-regional demand for certain balancing authorities in the Lower 48 states.

Hiroshima waste-to-energy plant gets upgrade

Aug 23 – Mitsubishi Heavy Industries (MHI) has been chosen to upgrade and refurbish the combustion facilities at a waste to energy plant in Hiroshima. The Naka plant in Minamiyoshijima, Naka-ku, has a total waste treatment capacity of 600 tonnes per day and generates 15.2 MW of electricity to power the equipment in the factory, while selling the remainder to the grid.

China eases ban on coal power

Aug 22 – The Chinese National Energy Administration (NEA) has allowed 11 provinces to resume building coal power plants in a move that lies bare the country’s dependency on thermal coal even after several hundred billion dollars were invested cleaner energy sources, notable wind, solar and natural gas. Areas earmarked by NEA for new coal power plants include Qinghai, Chongqing, Guangxi, Guangdong, Yunnan, Guizhou and Henan.

Blackout after Didcot demolition

Aug 21 – Yet another blackout hit thousands of British households early Sunday after the demolition of cooling towers at the disused Didcot-A power station in Oxfordshire. Moments after the explosion at 7am to bring down the cooling towers some nearby electricity poles and overhead transmission lines caught fire, causing a sudden loss of electricity that lasted for one hour and twenty minutes.

Fuel cell vehicle market gathers speed

Aug 20 – Sales revenue from fuel cell vehicles will soar to $255.2 billion in 2032, up from just $400 million last year, driven by fast growth in China and wider Asia. Hydrogen fuel cells achieve an energy conversion efficiency of 50% to 60% amid zero emissions and a low maintenance cost thanks to the engine’s modular design.

Tohoku Electric tenders for LNG cargo

Aug 19 – Tohoku Electric Power, the fourth-largest electric utility in Japan in terms of revenue behind Tepco, Kepco and Chubu, is understood to be seeking an LNG cargo for delivery in September. A tender process is ongoing.