Daily News

Industries which require high temperature heat are particularly hard to electrify, not to mention decarbonise. Still, hydrogen could soon become an attractive fuel in the steel industry, analysts at the International Energy Agency (IEA) find, while carbon capture, utilisation and storage (CCUS) could help decarbonizes cement, steel and chemical production.

Siemens has won a contract from an U.S. shale gas producer to supply three electric-drive centrifugal Dresser-Rand DATUM compression trains for two 250 million standard cubic feet per day (mmscf/d) cryogenic gas plants in the Delaware Basin, part of the greater Permian Basin in West Texas. The equipment will be commissioned in the latter part of 2020.

Deployment of electric vehicles so far has fallen short of expectations hence penalizing policy measures, like London’s new Emissions Surcharge, or T-Charge, have been introduced to spur growth. Penalising offending vehicles is one part of the solution, finds Jacob Klimstra, Senior Energy Consultant and Member of the Advisory Board for Electrify Europe. He highlighted plans by the Dutch government for all new cars to be zero-emissions vehicles by 2030 – others, including Paris, are already following suit.

Uncertainty about future battery technology, government policies, consumer preferences make it difficult to predict the long-term effects that both battery electric and plug-in hybrid vehicles (EVs) may have on worldwide energy consumption. According to EIA, analysisi, global EV sales is forecast to almost double from 1.2 million worldwide in 2015 to 2.35 million by 2040.

Pennsylvania Power Company (PennPower), part of FirstEnergy Corp., is installing 120 new ‘TripSaver’ automated reclosing devices on its transmission lines across Crawford, Lawrence and Mercer counties in an effort to limit the frequency and duration of service interruptions. The device works like a circuit breaker and can also re-energize the power line within seconds.

Bruno Le Maire, the French finance minister, has pledged he would fight to save jobs at GE Power sites throughout the country. The minister’s comments come in reaction to GE's announcement it is seeking ways to lay off more than 1,044 employees at its Belfort manufacturing plant in eastern France, near the border with Switzerland.

German chemical company BASF has awarded a contract to Siemens to modernize its industrial power plant in Schwarzheide, as part of the so-called Brownfield Exchange project. Works include replacing a gas turbine from another original equipment manufacturer (OEM) with a high-efficiency SGT-800 turbine and installing a SIESTART battery storage.

MAN Energy Solutions has won the "Africa Europe Award 2019" for its efforts in promoting German-African economic relations and establishing a sustainable and efficient local power supply on the continent. By 2050, Africa will be home to 25% of the world's population, hence sustainable power supply is vital to reach global climate goals.

Mitsubishi Hitachi Power Systems (MHPS) has been awarded a contract to upgrade the Sidi Krir and El Atf combined-cycle gas power plants in Egypt. Both CCGTs operate with a rated output of 750 MW, based on two M701F gas turbines. Upgrade works are slated to start in the first half of fiscal 2021.

Australian energy company Santos is about to launch the world's first battery project at its Darwin LNG export plant. It will integrate batteries at the liquefaction facility's integrated gas power unit to ensure they run more effectively and with less emissions. The project is about to enter FEED phase and is due completed in mid-2020.

Blackstone affiliate Zarou Ltd as well as Edra Power Holdings of Malaysia have both expressed interest to purchase three Siemens-build combined-cycle gas power stations in Egypt with a total capacity of 14.4 GW. A sale of the plants would ease the debt burden of state-run Egyptian Electricity Holding Company (EEHC), which owns and operates the three CCGTs.

Despite significant progress in energy access, the world is falling short of meeting the global energy targets set in the United Nations Sustainable Development Goals (SDG) for 2030. The global electrification rate is now just over 89%, but the International Energy Agency (IEA) warns there is still a “dramatic lack of access to reliable, modern and sustainable energy in certain parts of the world, especially in sub-Saharan Africa.”

Sask Power has agreed to pay $120 million for buying all shares of its JV partner Canadian Utilities in the 260-MW Cory cogeneration plant in Saskatchewan province. The gas-fired CHP creates process steam for Nutrien’s potash mine while all electricity from the plant is fed into the regional grid. The deal coincides with ATCO’s move to divest its entire Canadian fossil power portfolio for around $835 million.

Spreads for arbitrage trading are narrowing between the Dutch TTF and the US Henry Hub as well as the TTF and the Japan Korea Marker (JKM), so Energy Aspects warns "any further tightening could close the arb windows and lock-in US supply.” The coal-to-gas switching level is seen at $3.70/mmbtu, or €11.1/MWh – below the breakeven to ship cargoes from the US to Europe at current freight rates.

Johannes Teyssen, CEO of the European energy giant E.ON, is supporting plans for a CO2 price to be levied on all sectors of the German economy: power generation, transport and housing. “We propose a cross-sector CO2 tax of 30 Euros starting from next year, which could be gradually increased to 35 Euros,” he told German media.

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.