Daily News

Analysts at the World Bank expect energy and metal prices will continue to decline in 2020, following sharp drops this year amid weaker global growth and consequent softer demand. Prices of oil, natural gas and coal are forecast almost 15% lower in 2019 than in the previous year, and to fall further in 2020.

By 2035, over half of the world’s energy will come from renewables while power consumption doubles due to fast-progressing electrification. By shaping energy ecosystem across buildings, industry and the grid, Siemens supports cities and businesses with their sustainability goals.

Nearly all utility-scale battery systems installed in the United States over the past five years use lithium-ion technology, according to government findings. Provided all battery system additions will be completed as planned, and no capacity is retired, the total battery storage capacity in the U.S. could exceed 2,500 MW by 2023.

China-Australian Maoneng Group has been selected by AGL Energy to install four batteries with a total capacity of 200MW/400MWh in New South Wales by 2023, underpinned by a 15-year offtake agreement. The aim is to ensure stable supply and power prices at times of peak demand.

In its 2019 World Energy Outlook, the International Energy Agency (IEA) is looking beyond 2030 targets of achieving electricity and clean cooking facilities for all. Offshore wind, in particular, will lead sustainable energy production as the sector is forecast to become a $1 trillion industry.

Payouts of about £1 billion under the GB capacity market scheme are due in November. But this is “likely to prove problematic,” analysts warned, as some suppliers may not have been billing large customers – particularly those on “pass-through” contracts – during the EU’s earlier suspension of the scheme.

GE Power has signed a 5-year maintenance contract with the Bangladesh Power Development Board (BPDB). The deal includes procurement of spares and services of the two GE 6F.03 gas turbines installed at the 225 MW combined-cycle gas power plant in the Bhola island district of Bangladesh.

Mitsubishi Heavy Industry (MHI) Group has updated its midterm business plan to focus on decarbonization through hydrogen co-firing, electrification and artificial intelligence. Reacting to lower demand for steam turbines, the group also cut its revenue target of 5,000 yen to 4,700 billion by end of fiscal 2020.

Thailand-based Gulf Energy Development Public Co. has agreed with government of Vietnam to develop an integrated LNG import and power project in Ninh Thuan province. The $8 billion project includes a 6,000 MW combined-cycle gas power station and an adjacent LNG regas terminal.

Just weeks before the UK goes to the polls on 12 December, the government has suspended fracking as analysts found it is not possible to predict the size and frequency of earthquakes caused by this practice. Activity by Cuadrilla had resulted in a 2.9 magnitude tremor at its site in Lancashire in August.

Italgas, Europe’s third largest gas distributor, has contracted Turboden to install 650 kWe gas expanders to increase the efficiency of gas pressure reduction stations at Rome’s main pipeline network. The expanders produce electricity from the pressure differentials between mainline and transmission pipelines.

Only large scale and intelligent energy storage can solve the issue of variable renewable electricity generation. There is little political will for a fresh wave of subsidies for storage – as there was for renewables – hence market observers say a carefully crafted market design is needed to incentivise both flexibility and storage.

Start-up of two liquefaction trains - Cameron LNG Train 1 and Corpus Christi LNG Train 2 - have pushed total U.S. net gas exports to 4.1 billion cubic feet per day (Bcf/d) in the first half of this year, more than double pre-year levels. Apart from LNG, pipeline gas is exported to Canada and Mexico.

Today’s data centers consume about 3% of the total energy generated globally, and INNIO’s new gas generator delivers that electricity in a more reliable way. The fast-start Jenbacher J620 genset can power up to 3 MW in less than 45 seconds.

Royal Dutch Shell has reported a third quarter net income of $4.767 billion and a 15% slump in profits, citing lower sustained lower oil and gas prices and chemicals margins. The oil giant also launched the next $2.75 billion tranche of its share buyback program that totals $25 billion.

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.