Daily News

General Electric (GE) could potentially win a substantial share of multi-billion dollar contracts to rebuild Iraq’s electricity system, after the U.S. government intervened on behalf of the company. In April, the Iraqi Prime Minister had said Siemens was “well-placed to win the bulk of future deals.”

French oil and gas giant Total and Germany’s Siemens have proposed to scale back the size of the 1,230 MW integrated Kanbauk LNG-to-Power project after unresolved talks with the Government of Myanmar over financial terms. Downsizing is hoped to save the project which is at risk to be suspended, or outright cancelled.

Operational test runs are being carried out at the 640-MW Ubari gas-fired power plant, operated by the General Electricity Company of Libya (GECOL). GE is working towards getting the plant ready for service by early July to help rein in Libya’s persistent shortfall in electricity supply.

Japan’s power generation mix is changing, as the world’s largest LNG importer prefers cheaper thermal coal over regasified natural gas. By 2030, the Ministry of Economy, Trade and Industry (METI) projects coal will have a 26% share of Japan’s energy mix, just behind natural gas with 27%. Nuclear is seen account for 20% to 22% and renewables will cater for about a quarter of overall electricity supply.

Edesur, one of Argentina’s leading TSOs, has been struggling to restore electricity after a “massive failure” left nearly 50 million inhabitants in mainland Argentina and Uruguay in the dark since early Sunday. The blackout was described by Edesur as “totally unpredicted” and its exact cause is still unclear.

Aggreko, a UK-based provider of mobile power solutions, has agreed to support Wärtsilä with the launch of its new Modular Block solution. This pre-fabricated, modular enclosure – based on medium-speed W32 and 34 engines – is mobile and can be re-deployed at various sites which enables operators new financing models, such as power as a service or rentals.

Kawasaki Heavy Industries of Japan is advancing the development of a floating power plant that will operate on regasified LNG, targeting utility customers in remote areas of Southeast Asia. The barge-based LNG-to-Power solution will be the first of its kind able to generate 100,000 kilowatts of electricity.

Wells drilled horizontally into shale formations - in contrast to vertical wells - have surged in number over the past few years and now account for nearly all of U.S. tight oil and gas production. Horizontal wells in 2004 still made up about 15% of shale oil and 14% of gas production, but this share has risen to well over 97% for both.

Controllability has still been a major issue at two large combined-cycle gas power plants in the United States, the responsible plant manager told Gas to Power Journal. Large natural gas swings caused large boiler pressure swings, which "created a situation where the load was swinging around a lot more than it needed to be."

‘Ready-to-go’ power supply is on offer from Wärsilä’s Modular Block - a modularly configured, and expandable enclosure for Wärtsilä medium-speed 34SG gas engine generators. The pre-fabricated solution reduces on-site installation time from several months to a few weeks.

Taiwan Power Co. (Taipower) is spending some $1.2billion to purchase two of GE’s H-class gas turbines for Tatan Power Plant unit 8 and 9. The turbines, each with 1,100 MW capacity, are meant to be put into service in 2021, and 2023.

In a world first, Siemens Gamesa has commissioned an electric thermal energy storage in Hamburg-Altenwerder. The system can store 130 MWh of energy for up to one week – target is storage capacity in the Gigawatt-hour range. Storage helps decouple electricity generation and use, reducing the intermittency challenge of wind and solar power supply.

The 22MW/34.8MWh Cremzow battery energy storage in northeastern Germany has started full commercial operation, underpinned by Wärtsilä's GEMS control platform. Built by Enel, Enertrag and Leclanché at a cost of about 17 million Euros, the storage provides frequency regulation services for the regional power grid.

Tight oil and gas production in the United States could soon become less sensitive to price as super-majors like Chevron and ExxonMobil increase their shale acreage and commit to development spending. BP’s chief economist Spencer Dale said “cash-rich supermajors can smooth through price variations” and just keep fracking regardless.

Dirty king coal is still a stronghold in the American energy mix, and nearly all the coal consumed is produced domestically. Of the more than 755 million short tons (MMst) of coal produced in the United States last year, the electric power sector burnt 636 MMst, while industry consumed 50 MMst and another 115 MMst went for export.

News in Brief

APR helps power Libya’s recovery

June 24 – Libya’s state-owned GECOL has asked APR Energy to bring in temporary generators to provide a rapid 450 MW boost. Under the latest contracts, APR provided mobile gas turbines at four key sites in Libya (250 MW) as well as 200 MW of diesel generators at two sites.

GE supplies SCADA to New Zealand

June 21 – GE’s Renewable Energy Grid Solution’s business has won an order from two New Zealand utilities to upgrade their traditional Supervisory Control and Data Acquisition (SCADA) systems with GE’s Advanced Distribution Management Solutions (ADMS). The orders were placed by Top Energy Ltd with some 31,000 customers and Northpower serving over 60,000 customers, though the contract values were not disclosed.

Top 5 OEMs to rule two thirds of global wind market

June 20 – After a decade of fragmentation, the top 5 turbine OEMs are consolidating again and Wood Mackenzie anticipates key players will surpass a combined market share of 68% by 2020, up from 47% five years ago. Vestas, SGRE and GE remain the top 3 wind turbine producers wwhile the Chinese leaders, Goldwind and Envision, are becoming increasingly popular due to their product reliability and track record.

Keane to merge with C&J Energy

June 19 – Oil- and gasfield service providers C&J Energy Services and Keane Group have agreed a merger-of-equals in a $746 deal that will give the two companies the necessary uplift in an industry burdened by budget cuts of hydrocarbon producers. The 50:50 merger will create a company will create a company with a combined enterprise value of $1.8 billion, including $255 million in debt. The deal is expected to close in the fourth quarter of this year.

Evol LNG helps power Australian gold mine

June 18 – Kirkalocka Gold Mine in Western Australia will use Evol LNG to fuel Zenith Energy’s 14.5 MW power station with regasified natural gas starting from September 2019. The mine is run by Adaman Resources and had been relying on diesel to cover its energy needs. Based on the current diesel price, Adaman Resources expects to reduce fuel costs by more than A$13 million (US$9 million) during the first six years of operation of the new onsite LNG-to-Power plant.

Shell Energy ordered to refund overcharged UK customers

June 17 – UK energy regulator Ofgem has ordered Shell Energy Retail to refund around 12000 customers who were overcharged after the Government’s cap on gas and electricity prices came into force in January. Shell Energy Retail s agreed to refund these customers by paying £29,000 in compensation (£5 per fuel), and also pay an additional £200,000 into Ofgem’s voluntary redress fund.

BASF enters battery market

June 14 – German chemical company BASF is using NGK Insulators’ sodium sulfur batteries as its entry point into the energy market. The Japanese manufacturer NGK is currently the only maker of the large-scale sodium sulfur (NAS) batteries, capable to store several hours of energy. A joint project in northern Germany uses NAS batteries that store energy for five hours, while a recently completed project in Abu Dhabi using 108MW / 648MWh of the systems with a full six hours storage duration.

CNPC boosts domestic gas production

June 13 – China National Petroleum Corp (CNPC), the largest Chinese oil and gas company, has announced plans for domestic natural gas output to reach 55% of overall domestic supply by 2025. Last year, CNPC managed to boost production by 5.9% to reach 138.02 billion cubic metres, while also increasing imports of pipeline gas and LNG.

Gazprom taps new gas deposits for Nord Stream 2

June 12 – Gazprom is fast-tracking hydrocarbon production in northwest Russia to boost reserves for export through the Nord Stream 2 pipeline (55 Bcm/y), currently being built through the Baltic Sea. At a meeting with Nord Stream shareholders, Gazprom noted that its Yuzhno-Russkoye field has yielded about 276 Bcm of natural gas, including 0.9 Bcm of hard-to-recover Turonian gas, since the start of operations. Turonian gas reserves, consisting of about 99% methane with no heavy residues, lie at a depth of 800–850 meters in reservoirs with low permeability. Commercial production at the Turonian deposit is scheduled to start in late 2019.

PG&E turns off electricity to avoid wild fires

June 11 – Pacific Gas and Electric Company (PG&E) has turned off electricity for some Californian communities at risk of a wildfire during the lastest heat wave. The authorized blackout started on Saturday in Napa, Solano and Yolo counties, with electricity being gradually restored over the course of Monday. Approximately 16,000 customers have been affected.

Gazprom to build power plants in Serbia

June 10 – Gazprom Energoholding has signed an Agreement of Intent (AoI) to build an upgrade several gas-fired power plants in Serbia. Together with Novi Sad, Gazprom Energoholding is already building a CCGT with some 200 MW capacity near a refinery in the Serbian town of Pancevo.

U.S. fund splashes out $4bn to buy El Paso Electric

June 7 – Infrastructure Investment Fund (IIF), a private investment vehicle within J.P. Morgan Inc., has agreed to acquire the U.S. utility El Paso Electric Co for $68.25 per share in a cash transaction. The enterprise value on the transaction is estimated at $4.3 billion. El Paso Electric customers will receive a total $21 million in bill credits over three years.

Caterpillar gensets back up Finnish data center

June 6 – The Swedish telecom giant Telia has ordered 12 Caterpillar gensets to provide standby emergency power to back up operations at its new data center in Helsinki. The Cat dealer Witraktor figured a system which includes eight Cat 3516B and four 3516E generator sets. The Telia Helsinki Data Center is the largest such facility in Finland, and its primary electric power supply comes from a combination of wind, hydroelectric and biomass.

Capstone wins orders in Iraq

June 5 – Micro-turbine producer Capstone has secured an order for two C600 Signature Series microturbines to provide 1.2 MW of energy to power a triethylene glycol (TEG) dehydration facility near Basra, in southern Iraq. The contract also includes Capstone’s new self-cleaning pulse filtration system, allowing the turbines to better withstand hot and sandy conditions with minimal maintenance.

Gas to supply record 43% of US power needs

June 4 – This summer, natural gas is forecast to cover between 40% and 43% of 2019 peak electricity demand in all U.S. states except Texas, according to projections by the Energy Information Administration (EIA). Gas demand soared to nearly 10,700 billion cubic feet (Bcf) last summer, a 16% rise from 2017 levels. Should there be another heat wave this year, that record may well be broken. Capacity wise, natural gas is on course to top its 45% share in the U.S. power mix.

Lukoil to upgrade CHP at Krasnodar

June 3 – Russia’s oil and gas company Lukoil has received government approval to modernize and expand three combined heat and power units in Krasnodar. The gas-fired CHP units have more than 400,000 hours and ran an average 74% utilization rate, the operator said. The upgrade will add 150 MW of power generation capacity and Lukoil said it expects the revamped power plant to be ready for commissioning as early as 2022.

GE commissions Al-Qudus CCGT in Iraq

May 31 – GE Power has installed and commissioned a new 9E gas turbine at the Al-Qudus combined-cycle gas power plant, run by the Iraqi Ministry of Electricity’s (MoE). The CCGT was previously capable of generating up to 1,125 MW and the turbine upgrade adds another 125 MW of capacity.