Daily News

Heat rates of gas-fired power plants in the U.S., and notably of combined-cycle units, have decreased 7% between 2006 and 2015 – indicating more efficient generation, because less fuel is needed per kilowatthour. In contrast, heat rates of coal power plants remained stable, according to EIA data, showing no improvement.

DILO, a German manufacturer of sulfur hexafluoride (SF6) gas handling equipment, has launched a SF6 multi-analyser that allows users to simultaneously check three key gas quality parameters- SF6 concentration, humidity and quantity of decomposition products. SF6 quality of gas insulated equipment needs be checked to determine if the gas still complies with the IEC Standard 60480 (SF6 reuse) or whether it needs purification.

KAR Group in Iraq has extended Siemens’ service agreement to provide operations and maintenance (O&M) for two newly added units at the Khormala gas power plant in Kurdistan. The 930 MW plant covers nearly 30% of the region’s electricity demand and supplies more three million people with reliable electricity.

Taiwan’s recent massive blackout raises questions of the government’s wider energy policy which, according to Dr. Guo Yu, principal Asia analyst at Maplecroft, “does not pose an immediate threat to government stability.” However, it may determine the political fortunes of President Tsai and the ruling Democratic Progressive Party as we approach the next election cycle in 2020.

A massive blackout recently revealed the fragility of Taiwan’s power grid, and prompted the resignation of Chen Chin-te, chairman of Taiwanese gas supplier CPC Corp. Now, the Ministry of Science is considering the launch of a power storage system from Tesla.

SoCal’s inability this summer to fully utilize Aliso Canyon, California’s largest storage with a capacity of 86 Bcf, is impacting flow, pricing and storage dynamics in the U.S. Pacific Region. Peak summer demand conjured up fierce competition for gas between Northern and Southern California which let to tighter price spreads between the two regional gas trading hubs, SoCal and PG&E, this August.

Bangladesh’s Summit Group has contracted Wärtsilä to supply equipment for a power plant with a capacity of 300 MW. Located in Gazipur, the plant will run on eighteen Wärtsilä 46 engines, operating on heavy fuel oil, and possibly gas at a later stage. Start-up of the fast-track project is envisaged for March 2018.

The re-balancing of global oil markets is viewed by the IEA as “a stubborn process” given that some producers, party to the OPEC’s output cut agreement, are "showing signs of weakening their resolve." The compliance rate fell again in July to a new low of 75% from June’s 77%. Still, IEA analysts believe “the market is re-balancing” as the price of Brent crude recently stabilised above $50/bbl.

Two offshore projects by China National Offshore Oil Corporation (CNOOC) – the Penglai 19-3 oil field and the Dongfang 13-2 gas field – will be powered by Dresser-Rand equipment. The business, now part of Siemens Power and Gas, won orders from CNOOC and from Harbin Guanghan Gas Turbine (HGGT).

Dirty king coal is still on track to surpass natural gas generation for 2017, with total shares of almost 32 % and 31%, respectively, the latest short-term energy outlook from the Energy Information Administration (EIA) shows. That near-tie comes after natural gas generated 34% of the nation’s electricity needs in 2016, with coal finishing at 30%.

Turning his back on former President Obama’s clean energy aspirations, the new FERC chairman Neil Chatterjee calls for coal to be “properly compensated” for baseload power and “recognized as an essential part of the fuel mix.” Asserting his commitment to the “resilience and reliability” of the US electric system, he said in a podcast released by FERC this week that ensuring security of supply would merit keeping even uneconomic coal and nuclear power plants operational. “These are essential to national security,” he claimed.

To restore deteriorating output, La Paloma Generating Company (LPGC) considered an upgrade of turbine components, but found a cheaper way: "After doing a net present value analysis of the money we would have to invest and how much power we would recover, fogging turned to be really, really good in terms of dollars per kW," said Pablo Cortes Oseguera, LPGC engineering and maintenance manager. "It made a lot of sense to our owners."

ComEd, a unit of Chicago-based Exelon Corp, has turned to ABB’s latest distribution and outage management systems in order to minimize the impact of outages for its customers across northern Illinois. ABB Ability, an integrated software platform, allows for real-time monitoring, network analysis and outage management.

A tender for the procurement of LNG for 500 MW decentralized power in Indonesia will be opened by Singapore in due course. Maritime minister Luhut Pandjaitan announced the LNG cargoes will be shipped to small-scale, decentralized power plants (25-50 MW) in seven locations in close proximity to Singapore.

Driven by falling costs, increasing investor confidence and policy support, renewable power and decarbonisation technologies are reshaping global energy markets. In Wood Mackenzie and GTM Research’s latest report ‘Future of renewables: a radical disruption,’ over 21% of all cars on the road are estimated to be electric by 2035 under the carbon-constrained scenario. Such a stark shift to EVs can displace up to 6.5 million barrels of oil demand.

News in Brief

Enagas net profit tops €332m

Oct 20 – Spurred by a 9.3% rise in gas demand across Spain, Enagas stand alone net profit was up 1.6% to reach €322.5 million for the first nine months of this financial year. Gas demand was driven by a 60% growth from the industrial sector, combined with a 33.2% rise from the power sector mainly due to lower hydroelectric and wind power supply.

Capstone assigns Russian distribution rights

Oct 20 - Capstone has agreed to grant Turbine International and its affiliate, MTE Service, the sole distribution rights for Capstone products and services in the Russian oil and gas sector in exchange for $6.4 million in cash.

Pemex orders GE’s TM2500 for refinery

Oct 19 – While recovery efforts continue in Mexico after the recent earthquake, GE Power and its partner APR Energy will supply Pemex with TM2500 mobile power plant solutions for refinery some 5km northeast of the city of Salina Cruz. Operations of the refinery will benefit from nearly 70 MW of urgent power generation as regular supply via the national grid is being restored.

Surging energy use in India’s buildings

Oct 18 – India is forecast to see the fastest growth in building energy consumption through 2040. In the IEO2017 Reference case, delivered energy consumption for residential and commercial buildings in India is expected to increase by an average of 2.7% per year between 2015 and 2040, more than twice the global average increase.

Dong to remotely operate UK peaking plants

Oct 17 – Denmark’s Dong Energy has agreed with GAM Capital and its project development arm in the UK, Gas Power Developments, to manage the remote control and market optimization of three 6 MW gas power stations. The three gas peaking plants are Prestige House, Newhouse and Clay Flatts, located in Lancashire and Cumbria.

'Generation Energy' debate launched in Canada

Oct 16 – ‘Generation Energy’ has been kickstarted at a forum in Winnipag as a society-wide debate on the pathways to an affordable, low-carbon energy future for Canada. The share of renewables in Canada’s power mix exceeded 65% last year, with 90% of the total derived from hydropower. Prior to the event, Canada’s Minister of Natural Resources Jim Carr met bilaterally with IEA head Dr Fatih Birol to provide input to Canada’s Presidency of the G7 in 2018.

MHPS starts manufacturing turbines in Dammam

Oct 13 – MHPS Saudi Arabia, a subsidiary of Mitsubishi Hitachi Power Systems, has opened its new Turbine Rotor Repair Facility in Dammam today. The Japanese manufacturer announced plans to plans to manufacture its most advanced gas turbines in the Saudi kingdom, and use the new facility to service compressors and turbines used in petroleum and chemical plants.

Azura-Edo IPP to startup 8 months early

Oct 12 – Azura Power Holdings has announced that its 450 MW Auzura-Edo Independent Power Project (IPP) will be ready to start operations eight months ahead of schedule. First fire is planned in December this year, for commissioning to be finalised for a start-up in May 2018.

Evaluating GT owners take on dry air injection

Oct 11 – Sargent & Lundy has been hired by gas turbine (GT) owners to analyze the impact of Turbophase dry air injection system at different site conditions. Turbophase installed on multiple gas turbine frames over the past years, clocking up thousands of run-time hours.

Gas turbine market tops $24bn by 2022

Oct 10 – The global market for gas turbine is growing at an annual rate of 5.3% to reach $24.12 billion by 2020, according to htfmarketreport. Increasing demand distributed power generation, technology advancement, and more stringent regulations on carbon emissions are fuelling the market growth.

Trump nominates pro-coal lawyer as EPA deputy

Oct 9 – US President Donald Trump has nominated Andrew R. Wheeler, a lawyer whose clients include the coal mining firm Murry Energy, as the deputy administrator of the Environmental Protection Agency (EPA). Wheeler opposes Obama’s Clean Power Plan and supported the US coal industry’s opposition to the Paris Climate Agreement.

Tokyo Engineering to finish new Azeri CCGT by May 2018

Oct 6 – Japan’s Tokyo Engineering Corp is building a new combined-cycle gas power unit at the Shimal power plant in Baku. The 409-MW unit is schedule to start full commercial operation in May 2018. Project costs, estimated to exceed $330 million, are partly covered by a $275 million loan from the Japan Bank for International Cooperation (JBIC).

Spain’s gas demand up 13% in September

Oct 5 – Demand for natural gas in Spain has increased by 13% to 26,153 GWh in September, the highest level in the past five years. Gas-burn in the power sector was up 44% month-on-month, reaching 7,085 GWh.

Capstone to deliver C1000s to Italy

Oct 4 – Capstone Turbine Corp has received an order for a C1000 Signature Series microturbine to provide combined cooling, heat and power (CCHP) for a large cured meat company in Veneto, Italy. IBT Group, Capstone’s Italian distributor, secured the order for the plant, which is due to be commissioned in early 2018.

Marubeni invests in biomass co-fired plant

Oct 3 – Marubeni Thermal Power has signed a shareholder agreement with Tokuyama and Tokyo Century Corp to invest in the latter’s the construction and operation of a biomass co-firing power project in Shunan City. Preparation for construction works are getting underway this month, for a start of commercial operation in 2022.

Puerto Rico powered by fuel oil in the wake of Hurricane Maria

Oct 2 – Puerto Rico Electric Power Authority (PREPA) is busy trying to restart power plants as well as transmission and distribution lines after Hurricane Maria hit the island earlier this month. In the absence of firm natural gas supply, PREA turned to Puma Energy to purchase fuel oil for emergency power generators.

Wärtsilä helps boost offgrid power in India

Sept 29 – Wärtsilä’s Indian office is supporting Arkay Energy (Rameswarm) to boost electrical output and productivity of its 150 MW baseload power plant in Ramanathapuram, Tamil Nadu, in southern India. An O&M deal for the plant's 16 Wärtsilä 34SG engines was renewed in June 2017 for another five years.