Markets

NASDAQ-listed New Fortress Energy has signed a Memorandum of Understanding (MoU) with the Angolan Ministry of Mineral Resources and Petroleum to fund, build and operate an LNG regas terminal to supply gas for use in Angola’s industrial and power generation sectors.

Events, particularly major sporting shows, require fast-track power solutions that can maintain a stable, continuous energy supply. RnRMarketResearch sees the market expand at over 8% per annum, and forecasts it will be worth nearly $20.7 billion by 2022.

Eager to reduce fuel costs, Saudi Arabia has reigned it the use of crude oil in the electric power sector to an average 0.4 million barrels per day (b/d), mainly by burning associated gas or fuel oil instead. A steady population growth keeps driving electricity consumption, although the government seeks to dedicate most crude oil production for export and incentivises solar power.

General Electric has vowed to find ways to keep open its Belfort manufacturing site despite plans for downsizing and job cuts. Hugh Bailey, general manager of GE in France said the company is looking for alternatives such as building aeronautical parts at Belfort - instead of large turbines. “I want to be clear, Belfort will not close. It will remain GE Power’s number one industrial site in Europe,” he told French media.

Brazil, second-largest producer of hydropower in the world after China, is implementing policy measures to add more solar PV capacity to the country’s energy mix, backed up by flexible gas gensets and energy storage. As part of the government’s 10-year energy expansion plan, nonhydro renewables is intended to grow 3% per year and reach up to 28% of Brazil’s domestic energy mix by 2027.

Cyprus has been racking up a string of giant gas discoveries, notably ExxonMobil’s Glaucus and Eni’s Calypso find. In total Wood Mackenzie estimates 11 trillion cubic feet (Tcf) of recoverable gas resource was recently discovered in Cypriot waters but analysts question whether all discoveries can be commercialized. Building a pipeline to Egypt, or an FLNG plant off Cyprus, are the most viable options.

BP, one of the world's seven oil and gas supermajors, is understood to have agreed to pay around $10 billion to the private firm of the Romanian businessman Frank Timis after having purchased his stake in a gas field off the coast of Senegal for $250 million in 2017. BBC reporters uncovered this suspicious deal, but both BP and Mr. Timis deny any wrong doing.

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.

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.

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.

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.”

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.

Con Edison, the largest utility in the New York City area, has imposed a moratorium on new natural gas connections in most of Westchester County, claiming it it cannot guarantee uninterrupted service to new connections. Despite rising shale gas production in the Northeast, the rise in demand and infrastructure bottlenecks in the NYC area is now jeopardizing supply security.

Infigen Energy, an Australian listed renewable energy developer, has surprised market observers by announcing it will buy a 159 MW gas peaking power plant in New South Wales. The utility claims the Smithfield gas peaking plant will serve as a backstop, and allow it to invest in “up to 400 MW more cheap renewables.”

Page 7 of 155

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.