Daily News

Though China’s natural gas production are likely to double to 325 billion cubic metres by 2040, the country’s gas import dependency keeps growing largely due to rising demand and lower than expected domestic production of shale gas and coal bead methane (CBM).

General Electric has completed the upgrade to the entire fleet of LM6000 turbines at the Ubungo power plant ahead of schedule. The plant, operated by Sonagas, provides over 20% of the grid-connected electricity supply in Tanzania.

The cost of producing hydrogen gas from renewables is forecast to fall sharply over the next decade, providing an affordable fuel to decarbonise the energy and transport sectors. In Germany and Texas, RES hydrogen costs could fall to $1.40 a kilogram by 2030 from the current range of $2.50 to $6.80, according to research published in Nature Energy.

The Japanese government has granted a $44 million loan to Mozambique to finance retrofits and maintenance works at a gas-fired power plant in the capital Maputo. Due to be upgraded by 2020, the plant will add 110 MW to the national grid which is hoped to end crippling electricity shortages.

Genscape, a global provider of real-time energy markets data, will be acquired by the data analytics provider Verisk which also owns the consultancy Wood Mackenzie. Versik agreed to buy Genscape for $364 million in cash to enhance WoodMac’s intelligence in energy data and analytics.

The Lebanese government is preparing to open tenders in September, inviting bidders to compete for EPC contracts to build four gas-fired power plants on a turnkey basis. The new independent power projects (IPPs) are meant to be built in the cities of Zahrani and Selaata.

Falling technology cost and supportive policies are seen pushing up the American grow from currently $400 million to top $4 billion by 2024. According to Global Market Insights, power storage could become a “market disruptor”, having nearly doubled in 2018 by adding yet another 1,000 MWh of capacity.

Ansaldo Energia has been selected by the German utility Uniper to build an open-cycle power plant on a turnkey basis. The 300 MW plant, driven by an AE94.3A gas turbine, will be installed in Irsching, southern Bavaria, for grid balancing purposes. EPC works are about to start.

Graz’s Large Engines Competence Center (LEC) and INNIO, formerly part of GE, have been researching and developing regenerative fuels like hydrogen and hydrogen carrier gases such as synthetic natural gas, methanol or ammonia. The aim is to build gas engines that are virtually emissions free.

Statisticians at the U.S. Energy Information Administration (EIA) have developed two novel ways to compare electricity use from noncombustible renewables with other energy sources: the fossil fuel equivalence approach and the captured energy approach.

U.S. presidential candidate Bernie Sanders is campaigning to launch a Green New Deal as a 10-year federal “mobilization” that would raise $16.3 million to allow the U.S. to generate 100% of its electricity from renewables by 2030.

SoftBank Vision Fund is investing $110 million in the Swiss startup Energy Vault which developed an innovative technology to store energy in stacked concrete blocks. This method is more economical than lithium-ion batteries, Energy Vault claims, simply because cement and sand are cheap materials.

The first of 14 industrial gas turbines have been shipped to Bolivia to expand the capacity of the Entre Rios combined-cycle plant. The Bolivian government has tasked Siemens, and its Spanish consortium partner TSK, to increase the country’s power generation capacity by more than 1 Gigawatt.

Royal Dutch Shell has made its first foray into the Australian electricity sector by launching a A$617 million (£345.4 million) takeover offer for the retailer ERM Power. The offer is understood to be a 43% premium on the ERM’s market value. Trevor St Baker, the founder of ERM, already endorsed the offer.

The U.S. fracking sector “disappoints yet again” is the bleak verdict of IEEFA’s second quarter earnings review of oil and gas companies. Only 11 of the 29 scrutinized companies achieved positive free cash flows, and together they generated $26 million free cash flows – “ too little” to dent their $100 billion in long-term debt.

News in Brief

Bonny Train-7 to cost $6.5bn

Sept 16 – Nigeria LNG is preparing to add a seventh processing train to Bonny LNG, bringing total capacity from 22 million tons per annum (mtpa) to 30 mtpa. Estimated to cost $6.5 billion, Bonny Train-6 will include a new liquefaction unit, a storage and a condensate tank as well as three gas turbine generators.

Schneider to complete L&T takeover by early 2020

Sept 13 – Venturing into India, Schneider Electric hopes to finalise the Rs 14,000 crore acquisition of Larsen & Toubro's electrical and automation business by early 2020. After the transaction is completed, Schneider will have a 65% stake in L&T, while the remainder will be held by Temasek.

MHI to advice China on energy conservation

Sept 12 – Mitsubishi Heavy Industries Thermal Systems, part of MHI, has set up a joint venture withan affiliate of State Grid Corporation of China (SGCC) to perform technical consulting for energy conservation projects in China. The focus of SGCC lies on building new decentralized power stations, biomass-derived power gensets and energy saving solutions.

Tender extended

Sept 11 – Turkmengas has extended a tender for the overhaul of the gas turbine engines of the NK-12ST and NK-14ST brands. Bidders need to pay to receive the tender documents, and then submit a written application to Turkmenistan’s state gas company.

Gas power units to buffer Germany’s coal exit

Sept 10 – Electricity output of Germany’s fleet of gas-fired power plants has risen to a over 13,5 billion kilowatt-hours in the three months from June to August, Fraunhofer ISE figures show. These productivity gains put CCGTs in pole position to balance supply swings in connection with the German coal exit.

Power of Siberia gas flows to start on Dec 1

Sept 9 – Russian gas supplies to China via the eastern route are going to start on December 1, 2019, Gazprom chairman Alexey Miller told his counterpart at CNPC in Beijing. The huge Chayandinskoye field, containing some 1.2 trillion cbm of gas, had already been connected to the 38 Bcm per year ‘Power of Siberia’ gas pipeline in August.

Hurricane Dorian causes havoc in the Bahamas

Sept 6 – In the aftermath of Hurricane Doran, a Category 5 storm, Bahamas Power and Light has said there is a total blackout in New Providence, the most populous island of the archipelago. Dorian made landfall twice on Sunday, ripping off roofs and electricity lines. In most parts, electricity has not been restored.

LNG cargoes via Bab-el Mandeb decrease

Aug 30 – Northbound LNG shipments via Bab el-Mandeb, a sea route chokepoint between the Horn of Africa and the Middle East, have fallen over the past three years as Egypt imports less natural gas from the Persian Gulf. In 2015 and 2016, both Jordan and Egypt imported up to 1.4 Bcf/d of LNG into Red Sea ports but these shipments fell sharply following the development of large gas finds in the Mediterranean.

Hokuriku Electric buys LNG cargo

Aug 29 – Japanese utility Hokuriku Electric has purchased an LNG cargo for delivery in November as soaring temperatures drew down gas in storage for the autumn. The cargo is understood to be scheduled for delivery in the second half of November from Malaysia’s Petronas and may well be destined for Hokuriku Electric’s first LNG-fired power generation unit,  the Toyama Shinko plant.

Technip spins off LNG activities

Aug 28 – TechnipFMC, has decided to spin off its European-based engineering and construction operations into a separate business, leaving the American half of the firm as an equipment supplier to the oil and gas sector. The split is due to be completed in the first half of 2020.

FLNG power market to top $930m by 2023

Aug 27 – The global market for floating LNG power vessel is projected to reach $ 931.6 million by 2023, up from $ 860.1 million seen last year, according to ReportsnReports. Major vendors of FLNG power vessels are Siemens, MAN, Wärtsilä, Caterpilar and GE which are targeting to use the technology to supply decentralized power to island nations in Southeast Asia and along the coast of sub-Saharan Africa and the Americas.

EIA monitors grid hourly

Aug 26 – The U.S. Energy Information Administration (EIA) has launched a beta release of its hourly electric grid monitor. The enhanced version analyses hourly generation by energy source and hourly sub-regional demand for certain balancing authorities in the Lower 48 states.

Hiroshima waste-to-energy plant gets upgrade

Aug 23 – Mitsubishi Heavy Industries (MHI) has been chosen to upgrade and refurbish the combustion facilities at a waste to energy plant in Hiroshima. The Naka plant in Minamiyoshijima, Naka-ku, has a total waste treatment capacity of 600 tonnes per day and generates 15.2 MW of electricity to power the equipment in the factory, while selling the remainder to the grid.

China eases ban on coal power

Aug 22 – The Chinese National Energy Administration (NEA) has allowed 11 provinces to resume building coal power plants in a move that lies bare the country’s dependency on thermal coal even after several hundred billion dollars were invested cleaner energy sources, notable wind, solar and natural gas. Areas earmarked by NEA for new coal power plants include Qinghai, Chongqing, Guangxi, Guangdong, Yunnan, Guizhou and Henan.

Blackout after Didcot demolition

Aug 21 – Yet another blackout hit thousands of British households early Sunday after the demolition of cooling towers at the disused Didcot-A power station in Oxfordshire. Moments after the explosion at 7am to bring down the cooling towers some nearby electricity poles and overhead transmission lines caught fire, causing a sudden loss of electricity that lasted for one hour and twenty minutes.

Fuel cell vehicle market gathers speed

Aug 20 – Sales revenue from fuel cell vehicles will soar to $255.2 billion in 2032, up from just $400 million last year, driven by fast growth in China and wider Asia. Hydrogen fuel cells achieve an energy conversion efficiency of 50% to 60% amid zero emissions and a low maintenance cost thanks to the engine’s modular design.

Tohoku Electric tenders for LNG cargo

Aug 19 – Tohoku Electric Power, the fourth-largest electric utility in Japan in terms of revenue behind Tepco, Kepco and Chubu, is understood to be seeking an LNG cargo for delivery in September. A tender process is ongoing.