Daily News

Natural gas is bound to gain importance in the German power mix starting from the mid-2020s when coal-fired capacity is gradually being phased-out. Energy Aspects says Germany’s coal exit will help more of the global LNG oversupply find a home in Northwest Europe. The 2022 start-up of the Wilhelmshaven FSRU will support this trend.

Commissioned by grid operator Amprion, Siemens has built two reactive power compensation systems for the Kriftel grid node:  a mechanically switched capacitor with damping network (MSCDN) and a power-electronic static synchronous compensator (STATCOM). The two systems are running stable since December in test operation.

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).

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.

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.

Analysts say carbon prices in the European Emissions Trading System (EU-ETS) could exceed €38 per ton by 2020 as emission certificates taken out by Germany will get cancelled as it exits coal-fired power generation. A subsequent surge in carbon prices will accelerate coal-to-gas switching in Europe.

Texas could not solely rely on green energy sources without putting supply security at risk. Replacing all installed coal power capacity cost-effectively would only work with a combination of renewables, natural gas-fired generation and battery storage. Gas generally outcompetes coal generation in ERCOT if the price of gas falls below $3/MMBtu.

Freezing weather in the Midwest and a fire at a gas compressor station in southeast Michigan has forced local utilities to restrain gas supply. General Motors halted operations at 11 Michigan manufacturing plants and Fiat Chrysler also had to cancel shifts to conserve natural gas.

Rapidly evolving exports of LNG and liquid fuels will turn the United States into a net energy exporter next year. As gas demand grows in Asia and Henry Hub prices remain competitive, US LNG export capacity is expected to rise further before levelling off after 2030, when rival supplies are set to enter global markets.

Streamlining operations, General Electric has decided to consolidate all of its renewable and grid assets into a single, simplified Renewable Energy business. With this move, GE wants to offer more integrated solutions, simplify its structure, and improve performance.

Cummins is preparing to debut the HSK78G natural gas generator series during the 2019 Middle East Electricity (MEE) at the Dubai World Trade Centre, on March 5 – 7. With a power density of up to 2.0MW from a 78L engine, the HSK78G generator is suited for prime and peaking power applications.

Emirates Water and Electricity Company (EWEC) has invited developers to come forward with expressions of interest (EoIs) to finance, build and operate a 2,000 MW combined-cycle gas power project at Fujairah, UEA. Bids need to be submitted by February 10.

A new ‘Distributed Resource’ Desk, just launched by UK’s National Grid, allows for faster dispatch instructions to small gensets, battery storage and demand-side response. In the first 24 hours of operation, the number of bids and offers accepted from these aggregated providers was 87 MWh, up 113% on average.

Energy-related emissions in the United States are poised to fall as the country’s GDP growth is anticipated to slow from 2.9% in 2018 to 2.7% this year and down to 2.0% in 2020. According to EIA projections, industrial production will soon grow at a slower rate than overall GDP.

General Electric and Japan’s Sumitomo Corp. will build Sharjah’s first combined-cycle power station in Hamriyah, UEA, under a public-private partnership with Sharjah Electricity and Water Authority (SEWA). The 1.8 GW project will consists of three blocks, the first of which is slated to come online in May 2021.

News in Brief

France imports more Russian gas

March 21 – Demand for Russian gas continues to grow in France, with Gazprom’s exports rising 5.4% last year to 12.9 billion cubic meters (bcm). The upward continued into early 2019 and provisional estimates show some 2.5 bcm of gas was exported to France from January 1 to March 14, 2019, a 1.9% increase on the previous year period, Gazprom CEO Alexey Miller noted when discussing contractual supplies with his counterpart at ENGIE, Isabelle Kocher.

Merger wave grips UK oil &gas sector

March 20 – Significant pressures are here to stay in the UK oil and gas sector, with the trade association Oil & Gas UK (OGUK) saying the industry is facing a “new reality” amid high levels of M&A activity and the related transfer of assets. The ongoing consolidation process forces the industry to embrace new forms of collaboration and business models.

Chevron Nigeria to supply gas to Dangote

March 19 – Chevron Nigeria has agreed to supply natural gas to Dangote’s fertilizer plant in Nigeria. The deal is part of the international oil major’s gas supply obligation to the domestic market under the Nigerian Gas Master Plan.

POSCO wins $100m CHP deal in Mexico

March 18 – POSCO Engineering & Construction, part of the leading South Korean steelmaker POSCO, has signed a $100 million agreement with Ener AB to build a 100-MW combined heat and power plant in Mexico. Situated in Coahila, the CHP will serve the energy needs of the nearby Magnelec chemical plant.

Wood to install Siemens turbine in North Carolina

March 15 – Wood Group has secured a contract from Siemens to install a HL-class gas turbine at a power plant in North Carolina. Construction works are estimated to involve 400 people and last for approximately 11 months, Wood Group said. Once installed, the turbine will add 400 MW to the plant's existing capacity 1,200 MW. Financial details of the deal were not disclosed.

J-series turbine passes 750000 hours

March 14 – Mitsubishi Hitachi Power Systems (MHPS) has announced their global fleet of J-Series gas turbines accumulated over 750,000 hours of commercial operation. The J-Series fleet now includes 39 turbines in commercial operation, with 28 of those exceeding 8,000 hours and the fleet leader having more than 45,000 hours of operation.

German gas prices up 9% in March

March 13 – Household energy prices in Germany have risen substantially in March 2019, compared to the same month in the previous year, according to the price comparison site Verivox.  Electricity prices increased 5% to a new record of 29.42 cents per kilowatt hour (ct/kWh) in March to date, up from 27.99 cents a year ago, while natural gas prices jumped 9% to 6.1 ct/kWh.

MAN turbines commissioned at Chinese CHP

March 12 – MAN Energy Solutions has installed and commissioned a MGT6000 gas turbine and a THM-series gas turbine at a combined heat and power (CHP) plant that replaces a coal-based power plant in Changsa, Hunan Province. Another MGT6000 just started commercial operation at a cogeneration plant, optimized to run on natural gas, at an industrial zone of Dongguan City in Guangdong Province.

Gazprom breaks ground on 200-MW CHP plant in Serbia

March 11 – Russia’s state-run Gazprom has started construction of a combined-cycle gas cogeneration plant near Pancevo Refinery in Serbia. The site is owned by Novi Sadpart, part of Gazprom Neft Group. The 200 MW plant will be Gazprom Energoholding Group’s first power project outside of the Russian Federation and is slated for commissioning in 2020

ABB pilots digital control rooms in Sweden

Jan 8 – Swiss-based ABB has launched a new digital solution for control centers that is being pioneered and tested in a pilot project by the Research Institutes of Sweden (RISE). The cloud-based application works in synergy with many other ABB Ability solutions, and provides a platform for information-sharing.

MHPS opens new office in Bangladesh in bid to boost sales

Jan 7 – Mitsubishi Hitachi Power Systems, Ltd. (MHPS) has opened a branch office in Dhaka, the capital of Bangladesh, to strengthen its regional sales capabilities for thermal power stations. With the economy growing 6% in recent years, the Bangladeshi government seeks to boost the nation’s power generation capacity from currently 17 GW to approximately 24 GW by 2021 and further to 40 GW by 2030. To reach this goal, Bangladesh has started importing LNG amid state supports for private sector investment in large scale LNG-to-Power projects.

Shell mulls sale of Mahanagar Gas stake

March 6 – Shell India, the local business of Royal Dutch Shell, is considering to exit its city gas distribution business by selling its 10% stake in Mahanagar Gas Ltd. Shell acquired the stake in connection with the BG takeover in 2016, and last year already offloaded most of shareholding two two bulk divestment deals.

Siemens buys KACO’s string inverter arm

Jan 5 – Siemens announced it will acquire the string inverter business of the KACO GmbH, a manufacturers of power electronics, for an undisclosed amount. Siemens said wants to integrate KACO in its new Smart Infrastructure Operating Company, and expects the deal to close in H1-2019.

Power gen dominates Rolls-Royce’s engine business

March 4 – For the first time, Rolls-Royce Power System has manufactured more engines for electric power generation than for marine propulsion, the UK-based company said when reporting solid full year results. Revenue surged 15% to a record €3.9 billion in 2018, with adjusted profit up at €358 million resulting in a 9.1% return on sales.

Siemens produces module batteries in Trondheim

March 1 – Siemens has invested in a battery module factory in Trondheim, northern Norway, equipping the factory with a robotizied and digitally supervised production line with eight 300 MWh stations. Up to 55 battery modules per shift can be assembled every day, for use mainly in the marine and offshore market.

GE CEO committed to reduce debt “soon”

Feb 28 – General Electric CEO Larry Culp, in his first letter to shareholders, has said the company has too much debt and needs to reduce it “thoughtfully and soon.” Seeking to rebuild the ailing manufacturer, Culp focuses on GE’s four core businesses: power, renewable energy, aviation and healthcare. By adopting a “disciplined financial policy,” he wants GE achieve an industrial net debt/EBITDA ratio of less than 2.5x and a dividend in line with peers over time.

IEA launches ESCOs directory

Feb 28 – The International Energy Agency (IEA) has launched a new web resource dedicated entirely to energy service companies (ESCOs). The value of the global ESCO market grew 8% to $28.6 billion in 2017, helped by an 11% expansion in China and continued strong growth in the U.S.