Daily News

More money than ever is going to energy venture capital deals, but spread across fewer start-ups. Digital sensors, batteries, electric vehicles and smart algorithms are among the main recipients of the more than $4 billion of deals in 2019, the International Energy Agency (IEA) finds.

Nigeria’s BelemaOil Producing Ltd has contracted MAN Energy Solution to supply three MGT gas turbine heat and power systems for installation at BPL’s upstream operation, some 30 miles southwest of Port Harcourt.

PJSC Kazanorgsintez, one of Russia's largest chemical companies, has awarded Siemens a contract worth 290 million Euros to build 250 MW combined-cycle power plant at its manufacturing site in Tatarstan. Start of commercial operation is planned for 2023.

Regulators in Vietnam have approved the Son My 2 combined-cycle power plant, proposed by AES and PetroVietnam affiliate PV Gas. Built in Binh Thuan, south-central Vietnam, the 2,250 MW project is meant to reach financial close in 2021 and start up in 2024.

Tellurian is trying to sway Saudi Aramco to take an equity stake in the $30 billion Driftwood LNG export plant, after agreeing similar investor-buyer deals with Petronet and Total. Importing LNG could displace Saudi crude oil currently used for power generation.

Kobelco Power Moka, part of Kobe Steel, has commissioned and started up the first unit of its 1.25 GW Moka combined-cycle gas power project in Japan. The first of two 624 MW units is now supplying electricity to Tokyo Gas which said it set a target of procuring 5 million kW of electric power in the 2020s.

Germany’s lignite operator RWE is aspiring to become carbon neutral within 20 years as it shuts its coal power plants and focuses on wind, solar and storage. The strategic turnaround follows the takeover of the renewables activities of subsidiary Innogy and rival E.ON.

Sempra Energy has agreed to divest its Peruvian businesses to a unit of China Yangtze Power Co for $3.59 billion, in a move to exit the South American market and focus on its natural gas infrastructure and LNG export business in the United States.

South Korea’s Samsung C&T has secured a $630 million order from Reliance Bangladesh LNG & Power to build a combined-cycle gas power plant in Meghnaghat. Construction will start in October with a view to get the 718 MW plant commissioned in July 2022.

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.

Quinbrook Infrastructure Partners has questioned the profitability of peaking power stations in Australia, indicating its Lockyer project is unlikely to proceed without government support. The 132 MW Lockyer gas power unit is the first stage of a 1,000 MW development in Gatton, Queensland.

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.

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.

British energy companies are preparing for Brexit on October 31 amid uncertainty about future cross-border energy flows and carbon pricing. Cornwall Insight warns that with the risk of a depreciation of sterling, prices in both electricity and gas markets will go up.

Britain faces a difficult process of untangling its economic ties with the European Union which may put planned EU-UK gas interconnectors at risk. The Oxford Institute of Energy Studies (OIES) says the UK needs to “reshape its energy diplomacy” as it has to re-negotiate supplies with the EU and especially Norway, which covers some 39% of demand.

News in Brief

Rolls-Royce, 2G Energy cooperate on gas gensets

Nov 12 – British engine maker Rolls-Royce and the German power plant manufacturer 2G Energy have signed a cooperation deal to mutually purchase and promote each other’s gas generators. Rolly-Royce will buy gas gensets in the 250 - 550 kilowatt range from 2G Energy and re-sell them under its MTU brand, replacing the previously used MTU Series 400 engine. In return, 2G Energy agreed to buy MTU Series 4000 gas generators in the 776 - 2,535 kilowatt range from Rolls-Royce and market it to its German customer base.

Global gas glut may clear in 2021

Nov 11 – Economics of exporting American liquefied natural gas to Europe no longer add up. With Henry Hub spot prices around $2.7/MMBtu, moving LNG cargoes from the U.S. Gulf Coast to Europe is “not workable,” BP analysts said, indicating that production shut-ins could help clear the massive supply overhang towards the end of 2021.

Gazprom reassures Germany of Ukraine gas transits

Nov 8 – Alexey Miller, chairman of the Gazprom Management Committee, has been trying to reassure the German government commissioner Georg Graf Waldersee that Russia was ready to signing a new transit contract with Naftogaz if both companies mutually waive claims. Before gas flows can proceed, however, Ukraine will have to create an independent gas transmission operator by January 1, 2020.

GE makes gains in wind power

Nov 7 – GE Power is gradually turning away from its loss-making fossil power segment to focus on the fast-growing renewable business. This week, GE struck a deal for its new Haliade-X turbines to be used at Dogger Bank Wind Farms. The three 1.2 GW Dogger Bank projects, situated offshore the UK’s Yorkshire coast, are expected to trigger approximately £9 billion of capital investment between 2020 and 2026.

PetroVietnam eyes LNG-to-Power project

Nov 6 – PetroVietnam has signed an agreement with B.Grimm Power Public Company (BGRIM) to jointly study the development of an integrated LNG import and power generation project. The aim is to build a 3,000 MW gas-fuelled power plant and an adjacent LNG import terminal. The location of the project has not been disclosed.

ABB launches ‘Smart City’

Nov 5 – Electrification specialists of the Swiss manufacturer ABB have designed an interactive ‘Smart City’ that contains smart buildings, e-mobility, energy management and data centers. The use of smart technologies and digitalization are encouraged by the United Nations as a way to help decarbonize cities around the world.

Gazprom, BASF cooperate on sulfur separation

Nov 4 – The Russian major Gazprom and the German chemical company BASF have agreed to devise a comprehensive solution for separation of sulfur from natural gas. The aim is to  enhance eco-efficiency of the Astrakhan gas processing plant and improve operational efficiency of BASF’s amine gas treatment units at the Orenburg gas-fired power plant.

Germany’s emission fall ‘markedly’

Nov 1 – Germany is headed for second consecutive year of substantial reductions in carbon emissions, amid a sharp drop in coal-burn in the power sector and an overall decline in energy use in 2019. If this trend continues, the country could get much closer to its 2020 climate target than widely anticipated.

Exmar to refinance Tango FLNG

Oct 31 – Exmar, the Belgian shipping company, is trying to refinance the Tango FLNG vessel, moored offshore Argentina on behalf of YPF. The aim is to generate around $60 million in additional capital, Exmar said, suggesting a deal will likely be struck in the first months of 2020.

Petronet doubles net profit

Oct 30 – Indian LNG importer Petronet has nearly doubled its net profits in the third quarter although revenues fell by 13%. Net profits came in at 1,089 crore rupees ($153.6m), an increase of 90% on the same period in 2018 as the company benefited from India’s lower corporate tax rates. Third-quarter revenues, in contrast, fell to 9,449 crore rupees ($1.33 billion).

Wildfires spread around LA

Oct 29 – Thousands of Los Angeles residents have been evacuated as wildfires spread fast around the metropolis and power outages brought life close to a standstill. The risk of fires caused by overland transmission lines prompted Pacific Gas & Electric (PG&E) to prolong precautionary blackouts that could last up to three days.

Dominion embraces solar & storage

Oct 28 – Dominion Energy South Carolina has signed contracts for more than 1,000 MW of solar capacity. About half of that capacity has entered service. To complement intermittent solar energy supply, Dominion earlier announced several energy storage projects.

Wärtsilä downgrades outlook for its energy business

Oct 25 – Wärtsilä has downgraded the outlook of its Energy Business from “soft” to “weak” amid low equipment demand, although the its services activity “remains sound.” The current order book for 2019 deliveries is 1,708 million Euros, comprised mainly of equipment deliveries, Wärtsilä stated today when posting mixed Q3 results. Looking ahead, the company said its operating result for full-year 2019 will be approximately 100 million Euros lower than in the 2018 result of 577 million Euros.

Siemens names new CIO

Oct 24 – Hanna Hennig will be appointed as new Chief Information Officer (CIO) at Siemens starting from January 2020. The change at Siemens’ IT organization supports the execution of the company’s Vision 2020+.

GE to service Austrian CHP

Oct 23 – Sappi Austria, provider of sustainable woodfibre products, has handed GE Power a multi-year service agreement to for its 42 MW onsite power plant.  GE will carry out a cross-fleet turbine and combustor upgrade to help Sappi reduce costs through a maintenance interval extension and better plant performance.

Brookfield invest $2bn in Cove Point LNG

Oct 22 – Brookfield Asset Management, an investor in energy infrastructure and power storage, has agreed to take a 25% stake in Cove Point LNG for just over $2 billion in cash. The alternative investor also owns assets in hydro (7.9 GW), wind (4.9 GW), solar (1.7 GW), distributed generation (400 MW) and energy storage (2.7 GW).

Ansaldo appoints new CEO

Oct 21 – Ansaldo Energia’s board of directors has appointed Giuseppe Marino as new CEO. Together with the chairman, Giuseppe Zampini, he will decide on the company’s strategy particularly relating to the new Chinese joint ventures.