Daily News

Norway’s Equinor and Russia’s Gazprom have lost market share in Europe for the first time in four years as LNG shipments to the region tripled over the past 10 months. Sluggish spot demand from Asia made shippers divert excess cargoes to Europe instead.

Kahraba, a part of the Egypt Kuwait Holdings (EKH) Group has contracted Wärtsilä to supply gas engines to boost the capacity of a power plant in Borg El Arab, an industrial city some 45km southwest of Alexandria.

The Indonesian President Joko Widodo is proposing to remove a freeze on fuel and power prices, with the 2020 budget proposing to halve diesel subsidies and allot less for LPG and electricity. Having won the general election, Widodo uses his reaffirmed position to partly reverse his earlier ruling to keep energy prices flat throughout this and last year.

To raise electrification levels in Asian island nations, utilities are looking at small-scale LNG receiving terminals with integrated gas generators. Collocating LNG regas and power projects can curb Capex significantly, Black & Veatch finds, but operators need to ensure a steady stream of LNG shipments.

MAN Energy Solutions has been commissioned to build two combined heat and power (CHP) plants in Chemnitz on behalf of the municipal utility eins energie in sachsen. The two CHPs will be driven by a total of 12 MAN 20V35/44G TS gas engines, each with an output of 12.6 MWe.

Realism has set in as California regulators start watering down the state’s 100% renewables target by approving the repowering of the Grayson gas power plant. The nearby city of Glendale is at risk of blackouts and fast-ramp gas power units will help prevent this.

Widespread blackouts across Britain eleven days ago were caused by a lightning strike. This led to almost simultaneous outages of two generators, taking 1,500 MW off the grid – much more than the 1,000 MW of back-up power available, National Grid told UK energy regulator Ofgem.

Natural gas deliveries to U.S. LNG export plants set a monthly record in July, although gas use for power generation spiked to 44.5 billion cubic feet (Bcf) on July 19. Healthy shale gas output drove down spot gas prices at the Chicago Citigate – the regional price benchmark for Midwestern states to levels lower than those at Henry Hub.

Japan’s JERA; the country’s largest LNG importer and power generator, has completed works to replace 13 gas turbine units at the 5,040 MW Futtsu Power Station. The revamped CCGT has already resumed commercial operation.

GE's share price keeps recovering fast after investigator Harry Markopolis made the stock plunge over 11% in one day, alleging $38.1 billion in potential losses that were hidden through a “bigger fraud than Enron.” Reacting swiftly, GE CEO Larry Culp bought shares worth $2 billion and dismissed the claims as "meritless, misguided and self-serving speculation."

Refusing to take the sole blame for the UK’s unprecedented power outage on August 9, National Grid said power generators were responsible for the faults at the Hornsea offshore windfarm and the Little Barford gas power station. The regulator Ofgem is investigating whether the grid operator should have done more to limit in the scale of the blackout.

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.

Critics have questioned the commercial viability of a new 300 MW ‘emergency reserve’ power plant at Irsching, Bavaria. Uniper is preparing to build an open-cycle gas power unit even though it is seeking to mothball two combined-cycle power units at the same site. Asked about this seemingly paradox situation, Uniper told Gas to Power Journal that the new OCGT project has, in fact, been stipulated by the German lawmaker.

After breakthroughs in curbing energy related emissions, industrial decarbonisation is the next frontier. At zero-carbon electricity prices below $50/MWh, using electricity for heat in industrial processes becomes more economical than carbon capture and storage (CCS), McKinsey finds.

Hot weather and low gas prices have pushed up the share of gas-fired generation in PJM Interconnection to its second highest all-time daily average. Coal-to-gas switching mainly occurred in the western part of the grid, where gas was priced nearly $0.50/MMBtu lower year-on-year.

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.