Daily News

Petronet, the operator of India’s Dahei and Kochi LNG import terminals, has managed to push down the price for LNG cargoes from the US Gulf Coast. Tellurian, developer of the Driftwood liquefaction terminal, agreed to deliver cargoes to India at a price of $6 per unit – a much lower price than the price cap for output from India’s Malampaya gas field.

Shell Eastern Trading will likely be Hong Kong’s first supplier of US LNG for use in the 2.5 GW Black Point and 3.7 GW Lamma Island power stations. CAPCO and Hong Kong Electric already struck an LNG supply deal with Shell which covers up to 1.2 million tonnes per annum for 10 years, starting from 2020.

Russia’s Gazprom seeks to end a dispute with Naftogaz Ukrainy before a crucial gas transit contract expires on December 31, 2019. Offering an out-of-court settlement, Gazprom chairman Alexey Miller said he could picture a “zero option” whereby all court proceedings would cease and all lawsuits would be withdrawn.

Siemens is applying its electrification experience in the marine industry to offshore oil and gas, focussing on reducing emissions and risk in harsh operational environments. BlueVault, Siemens’ advanced lithium-ion battery-based solution, is suited for both all-electric and hybrid energy-storage applications.

Emirates Water & Electricity Company (EWEC), part of Abu Dhabi Power Corp, has received six bids from potential developers of the 2,400-MW Fujairah F3 independent power project. The proposals are now being scrutinized and EWEC plans to announce the winning bidder in January 2020.

Kawasaki Heavy Industries has obtained Approval in Principle (AiP) from the classification society DNV GL for its floating LNG power plant, driven by a combined-cycle gas turbine. The approval is based on DNV GL’s latest ‘Gas Power Plant Rules.’

Anadarko’s recent FID on the $20 billion Mozambique LNG project will sweep substantial revenue into state coffers. From the early 2030s, royalties from Mozambique LNG alone will reach an estimated $3 billion per annum, doubling today’s state revenue and freeing up funds for integrated power projects.

Strike actions by workers at the French utility EDF in protest against the restructuring of the state-controlled company have curbed cumulative power output by 3.7 GW this morning. Production restrictions are expected to continue throughout the day.

Siemens AG, Europe’s largest engineering company, will create a new independent entity under the name ‘Siemens Energy’ that combines its conventional and renewable energy businesses. The spin-off will take effect as of April 2020 with a view to getting the new entity listed by September.

Flows of natural gas from the Appalachian Shale Basin to the rest of the U.S. surges as production reached over 16 billion cubic feet per day last month, pushing down prices in the Northeast. Meanwhile, demand rises in other states - both from the power sector and for liquefaction and export.

Russia’s Gazprom is preparing to feed first gas into the Power of Siberia pipeline for export to China. Production drilling is in full swing at the Irkutsk Region-based Kovyktinskoye field, which will start pumping gas into the 38 bcm/y gas interconnector with China in early 2023.

Australian-listed LNG Ltd, developer of the Magnolia LNG project in Louisiana, is striving to sign a full sales and purchase agreement (SPA) with Delta Offshore Energy. The first LNG cargo could set sail to the Mekong Delta in May, or early June 2020, for use in an integrated 3.2 GW combined-cycle power plant.

Germany’s renewable energy levy (EEG surcharge) that consumers pay with their electricity bills will rise up by 5% to 6.756 cents per kilowatt hour (ct/kWh) in 2020. It could be the surcharge’s last increase as the government promised to reduce the levy and other taxes on power prices from 2021.

Siemens has expanded Bolivia’s three largest thermal power plants to efficient combined-cycle mode, adding a total of 1 gigawatt (GW) of electric power output to the Bolivian grid. The three CCGTs, operated by Ende Andina, were commissioned within a few weeks in August and September.

Q Power, a Finnish pioneer in biomethanisation, has started to work with Wärtsila to develop and commercialise renewable and synthetic fuels. Q Power’s patented concept produces biomethane by taking CO2 from the air and combining it with hydrogen.

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.