nigeria likely to suffer power shortages until may

10
R WE has only committed to keeping the 426 MW Moerdijk II plant operational until January 2018.The Essen-based utility said its decision to restart the plant came due to the “relatively positive development of spark spreads during winter season.” Moerdijk II will be dispatched on a flexible basis, supplementing baseload power at times of high demand which allows it to benefit from spikes in electricity prices. The operator RWE said that the CCGT had been restarted previously to help cover demand peaks dur- ing the winter. In January 2014, Moerdijk II was mothballed, but in October 2015 and during the winter of 2014/2015, it went back into operation temporarily. Moerdijk I, meanwhile, is a combined heat and power plant with 339 MW of electricity generating capacity plus a maximum of 200 tonnes of steam per hour, of which 150 tonnes per hour is supplied to the nearby Shell Chemie plant. Selling steam has helped Moerdijk Iremain in continuous operation. V ice President Yemi Osinbajo called the damage done to the Forcados terminal “the chief reason for the poor power supply that has affected the country recently.” Vandalism at Forcados forced upstream companies to halt oil production, curtailing the availability of associated gas. Repairs have started, however, they are un- likely to be finalised before May, prolonging seri- ous domestic gas and power shortages. Concerned about rolling blackouts, Mr Osinbajo has urged Shell, the operator of the Forcados plant, to fast- track repair works. Alternative measures to ameliorate the gas supply deficit seem hard to come by. Despite handling around 80% of Nigeria’s proven gas re- serves, Shell has been accused by the government as not being forth- coming with measures to help improve supply to the domestic market. Nigeria’s state revenues from hydrocarbon sales are seriously affected by the Forcados sabotage, the Vice President said, referring to the loss of gas supply to power plants and the loss of potential foreign exchange earn- ing arising from the inability to produce over 250,000 barrels of oil per day. Weekly News 22 April 2016 AGENDA RWE to revive mothballed Dutch CCGT on Oct 1 Producing electricity from natural gas is profitable again in the Netherlands for the first time in four years, incentivising RWE to restart parts of its mothballed 426 MW Moerdijk II combined-cycle gas power plant in early October. Record low fuel prices make previously unprofitable units economically viable again. Ongoing repairs at the sabotaged Forcados Export Plant not only restrict Nigeria’s oil exports but also affect about 40% of the country’s domestic gas supply, causing major fuel shortages for power generators. DEMAND High inventories, low prices incentivise US gas burn 2 TECHNOLOGY Air injection boosts F-Class turbine output, operating at 55ºC 3 PLANT DISPATCH Output of UK gas power plants more than doubles in Q1 4 MARKETS Ghana set to buy FSRU to source LNG for idle power plants 5 PROJECTS Israel approves West Bank’s first power project 9 Includes News on Technology & Innovation continued on page 2 continued on page 2 Nigeria likely to suffer power shortages until May Moerdijk plant south of Rotterdam Qua Ibo Terminal Bonny Terminal Brass River Export Terminal Forcados Terminal Escravos Terminal Umusadege farm-out area Oil field Gas field Export oil pipeline Terminals

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RWE has only committed to keeping the

426 MW Moerdijk II plant operational until

January 2018.The Essen-based utility said

its decision to restart the plant came due to

the “relatively positive development of spark spreads

during winter season.” Moerdijk II will be dispatched

on a flexible basis, supplementing baseload power at

times of high demand which allows it to benefit from

spikes in electricity prices.

The operator RWE said that the CCGT had been

restarted previously to help cover demand peaks dur-

ing the winter. In January 2014, Moerdijk II was

mothballed, but in October 2015 and during the winter

of 2014/2015, it went back into operation temporarily.

Moerdijk I, meanwhile, is a combined heat and

power plant with 339 MW of electricity generating

capacity plus a maximum of 200 tonnes of steam per

hour, of which 150 tonnes per hour is supplied to the

nearby Shell Chemie plant. Selling steam has helped

Moerdijk Iremain in continuous operation.

Vice President Yemi Osinbajo called the

damage done to the Forcados terminal

“the chief reason for the poor power

supply that has affected the country

recently.” Vandalism at Forcados forced upstream

companies to halt oil production, curtailing the

availability of associated gas.

Repairs have started, however, they are un-

likely to be finalised before May, prolonging seri-

ous domestic gas and power shortages. Concerned

about rolling blackouts, Mr Osinbajo has urged

Shell, the operator of the Forcados plant, to fast-

track repair works.

Alternative measures to ameliorate the gas supply deficit seem hard

to come by. Despite handling around 80% of Nigeria’s proven gas re-

serves, Shell has been accused by the government as not being forth-

coming with measures to help improve supply to the domestic market.

Nigeria’s state revenues from hydrocarbon sales are seriously affected

by the Forcados sabotage, the Vice President said, referring to the loss of

gas supply to power plants and the loss of potential foreign exchange earn-

ing arising from the inability to produce over 250,000 barrels of oil per day.

Weekly News 22 April 2016

AGENDARWE to revive mothballed DutchCCGT on Oct 1Producing electricity from natural gas is profitable again in the Netherlands forthe first time in four years, incentivising RWE to restart parts of its mothballed426 MW Moerdijk II combined-cycle gas power plant in early October. Record lowfuel prices make previously unprofitable units economically viable again.

Ongoing repairs at the sabotagedForcados Export Plant not only restrict Nigeria’s oil exports but alsoaffect about 40% of the country’sdomestic gas supply, causing majorfuel shortages for power generators.

DEMAND High inventories, low prices incentivise US gas burn 2

TECHNOLOGY Air injection boosts F-Class turbine output, operating at 55ºC 3

PLANT DISPATCHOutput of UK gas power plants more thandoubles in Q1 4

MARKETSGhana set to buy FSRU to source LNG for idlepower plants 5

PROJECTS Israel approves West Bank’s first power project 9

Includes News

on Technology

& Innovation

continued on page 2

continued on page 2

Nigeria likely to suffer power shortagesuntil May

Moerdijk plant south of Rotterdam

Qua IboTerminal

BonnyTerminal

Brass River Export Terminal

ForcadosTerminal

EscravosTerminal

Umusadege farm-out areaOil fieldGas fieldExport oil pipelineTerminals

At the end of the storage-withdrawal

season, natural gas inventories

stand almost 900 bcf above the

five-year average, pushing prices

lower. Healthy gas supplies keep gas prices on

very low levels.

Although front month futures prices

for gas delivery at Henry Hub increased

by $0.28/MMBtu from March 1 to settle

at $2.02/MMBtu on April 7, futures are still

57 cents/MMBtu lower than the April 2015

average. “Increased gas burn should help

reduce excess gas storage inventories in the

spring and summer months,” EIA analysts

suggest.

“A similar dynamic occurred in 2012, after

mild temperatures during the preceding winter

pushed natural gas inventories higher and

prices lower, with prices then recovering grad-

ually throughout the spring, summer, and fall,”

they said.

Implied volatility for front month futures

contracts settled at 45% on April 7, the lowest

point since the winter heating season started.

Historical volatility also settled at 45%, near

the lowest point of the year.

With the winter heating season coming to

an end,” EIA analysts suggest that “lower

volatility in natural gas markets likely reflects

the market’s expectation that prices will stay

low in the near future to help reduce high

inventory levels.” �

Just a few month ago, Nigeria managed to

increase power supply to an unprecedented

5,000 MW peak, but output has dwindled sig-

nificantly as an array of power plants are now

laying idle due to fuel shortages.

Tenfold expansion of gas gridneeded Nigeria is estimated to need up to 10,000 kilo-

metres of gas pipelines to transport fuel across

the country to widespread power plants. Cur-

rently, it can count on only 1,000 km of gas

grid. The government already created a $1 bil-

lion sovereign wealth fund back in 2014 to

build new pipelines, though not much work

was carried out on new projects. Private sector

spending up $ 3.5 billion per year would be re-

quired to achieve 40,000 MW of power genera-

tion capacity by the year 2020 – yet it is

doubtful if the government’s far-flung plans

will ever become reality.

Though Nigeria has an abundance of domes-

tic gas, with proven reserves totalling 187 trillion

cubic feet (Tcf) and another 600 Tcf of unproven

gas, the country faces domestic gas shortages.

Investment in Nigeria's domestic gas sector

used to be uneconomical given the govern-

ment's artificial tariff of $0.25 per million

British thermal unit (Btu), while market rates

for the same gas when liquefied by NLNG can

fetch over $3/mmBtu on long-term supply

agreements.

"Export-parity pricing" for natural gas sold

within Nigeria has been debated for the past

two years but conflicting interests make it hard

to implement a new pricing regime. �

� DEMAND GTP Journal 22 April 20162Continued from page 1, top story

Gas to Power Journal

PublisherStuart Fryer

EditorAnja Karl

Tel: +44 (0)207 017 3417

[email protected]

Senior ReporterMalcolm Ramsay

Tel: +44 (0) 207 017 3413

[email protected]

Asia CorrespondentRamadas Rao

Tel: +91 80 4219 0096

[email protected]

AdvertisingNarges Jodeyri

Tel: +44 (0)207 2533406

[email protected]

Subscriptions Nikolett Kecskemeti

Tel: +44 (0)207 253 3402

[email protected]

ProductionVivian Chee

Tel: +44 (0) 208 995 5540

[email protected]

Fuel cost for gas fall more than for coalThe decline in European gas prices has outpaced

that of coal, making gas-fired power generation

– particularly for peakload power – profitable

again since the end of last year. In the Nether-

lands, gas futures for delivery in 2017 plunged

39% over the past year, vs. a 27% price drop in

the comparable coal contract.

In the UK, the carbon floor price gives

cleaner-burning gas power plants a further

competitive advantage over coal power. UK

baseload spark spreads have been positive for

the last two years, while gas generation on the

continent tends to be only viable for peakload.

In Q1-2016, gas-fired plants generated 32%

more electricity in Britain than in the previous

quarter while the contribution of coal genera-

tion fell by 18%.

Positive profit margins have incentivised

SSE to reopen gas power units at Keady and

Peterhead already in November last year, after

they had been mothballed for 2.5 years and

18 months, respectively. �

Continued from page 1

High inventories, low prices incentiviseUS gas burnWith Henry Hub futures $0.75/MMBtu below the April 2015 averageafter a mild winter left gas inventories on record highs, US power producers now have even greater incentive to burn gas compared to previous years, EIA’s Short Term Energy Outlook finds.

U.S. natural gas prices and storage

22 April 2016 GTP Journal TECHNOLOGY � 3Air injection boosts F-Class turbine output, operating at 55ºCIn just 4 month, PowerPhase has installed an advanced upgradeon a 7FA Gas Turbine in the Middle East. The system demon-strated as high as 99.3% availability in ambient conditions up to 55ºC, while boosting output by almost 32 MW, Peter Perri,PowerPhase VP told Gas to Power Journal.

The upgrade, called 'Turbophase', was

completed well ahead of time to meet

2016 summer peak load requirements.

During commissioning, it demonstrated

capability for 5.0% fuel efficiency improve-

ment and over 31.5 MW power increase on the

7FA gas turbine.

Fuel efficiency is being increased base-load

and part-load operating conditions, Perri stressed.

The Turbophase Dry Air Injection system is

modular and additive; allowing gas turbine

manufacturers, like GE, Siemens or Mitsubishi,

to meet a specific megawatt target, either

alone, or as an addition to any combination of

OEM upgrade or inlet conditioning.

“The same Turbophase system installed in

the Middle East would operate on every

gas turbine in the world, providing simi-

lar output and fuel efficiency benefits, includ-

ing all GE 7EA & GE 7FA gas turbines,

Siemens & Mitsubishi 501F gas turbines,

aeroderivative gas turbines and advanced G, H

and J gas turbines,” Perri stressed.

CCGT upgrades help shift awayfrom burning fuel oilDuring summer in Saudi Arabia, demand for fuel

oil in power generation can reach up to 430,000

barrels per day. The Saudi kingdom is the

world’s largest user of crude oil for generating

power, followed by Iraq, Kuwait and the UAE.

Upgrading the region’s gas turbine fleet

would step up clean power output at substan-

tially lower fuel costs, according to Bob Kraft,

President & CEO of Powerphase. Turbophase

upgrades can boost fuel efficiency by over 5%

-- at a substantially cheaper cost than building

a new plant.

“If implemented across the gas turbine fleet

in the region, the Turbophase system would

add more than more than 5 GW of power and

would save more than 18 million barrels of oil

equivalent (boe) per year,” Kraft said, which

would free up billions in potential savings for

the region. �

ORC research supports new turbo-expander designsNew analysis of the operating profile of Organic Rankine Cycle (ORC) systems suggests that the use of radial turbo-expander technology for low power systems could improve efficiency and boost heat recovery.

Research was carried out by a team

from the Department of Mechanical

and Aerospace Engineering at the

University of Rome and include stud-

ied simulations of ORC systems as well as pre-

liminary work to create prototype designs for a

turbo-expander.

Improving waste heat recovery processesThe ORC process is one of the leading ap-

proaches for waste energy recovery and is used

in many low to medium industrial facilities to

harness heat output. It works on similar methods

as the conventional Rankine Cycle which con-

verts heat into mechanical work. This process

underpins the operation of Combined Cycle

plants where hot exhaust gases from a gas tur-

bine are used to drive a secondary steam turbine.

An ORC engine in comparison uses an or-

ganic fluid instead of steam to absorb heat and

then transport it around the system. This in prin-

ciple allows it to convert low temperature heat

into electric energy where required but there are

a wide variety of suitable fluids, all with different

parameters and operating profiles, which often

translate to poor performance in the real world.

“In the present market, most ORC systems

are designed and manufactured for the recovery

of thermal energy from various sources operating

at ‘large power rating’,” Roberto Capata, lead re-

searcher on the project explained. “Applications

for small nominal power sources, as well as the

exhaust gases of internal combustion engines or

small heat exchangers, are very limited.”

Although some work has been carried out to

design and build such small scale devices none of

these have seen widespread commercial adoption

or are particularly suited for placement in small

or restricted places often required in practice.

The researchers therefore set out to design a

turbo-expander that would meet diverse system

requirements such as low pressure, small size

and low mass flow rates. In particular, research

was concerned with the design of a radial ex-

pander as opposed to more typical screw or

scroll based configurations.

The turbo-expander forms a key part of the

ORC system and in this case consists of a radial

centripetal turbine through which high pressure

gas is expanded to produce work. Turbines of the

sort studied are characterized by high efficiency,

ease of production and operative reliability.

In the preliminary stage of research the

team simulated performance for an ORC sys-

tem using the PRO/II software. These simula-

tions were carried out using R-134a, R245fa

and water as working fluids and varying the

main operating parameters.

“The whole design was based on the Rohlik

procedure for radial turbine design,” Capata

said. “The 3-D geometry of the turbine was

created using dedicated commercial software

(ANSYS Blademodeler) in which all the geo-

metrical data is inserted.”

The team then proposed a design for a

turbo-expander based on their calculations and

carried out Computational fluid dynamics

(CFD) calculations to test the effectiveness of

their design procedure.

The main objective of these studies was to

verify the general performance of the chosen

geometries, and to determine if the pressures,

temperatures, densities and velocities assumed

and obtained by the procedure, match the real

values.

Ultimately the researchers were able to pre-

dict that the R134a working fluid would allow

for the smallest turbine design whereas the

R245fa working fluid gave the greatest amount

of power output. �

Turbophase GT Supercharger

Simulated system layout

BOILEREXPANDER

CONDESERPUMP

S1

S2

S3

S4

S5

S6

S7

S8

Output of UK gas power plants more than doubles in Q1Falling gas prices and UK coal power stations, such as Eggborough and Ferrybridge, exiting the market hassparked a sharp rise in electricity generated from CCGTs in the first quarter of 2016. According to Enappsysanalysis, gas-fired plants generated 32% more power than in the previous quarter while the contribution ofcoal generation fell by 18%.

Marginal cost of gas-fired power

stations going down in line with

falling gas prices, displacing

more expensive generation such

as coal. As a consequence, wholesale prices

dropped during Q1 2016 by 13% in the day

ahead market and 14% in the within day mar-

ket from the previous quarter; an overall 15%

reduction in price compared with Q1-2015.

The UK carbon floor price adds to the wors-

ening economic conditions of coal-fired power

plants in the country, in addition to tight profit

margins due to rising fuel costs and more strin-

gent environmental requirements.

The falling market share of coal power in

Britain is in stark contrast to Q1-2015 when

coal generated 13.3 GW against a power output

of 9.1 GW for CCGT plants as low coal prices,

high gas price and lower carbon costs meant

that coal had continued to be the dominant fuel

type in 2015. However, in the following year,

an array of plant closures meant that the contri-

bution of coal-fired generation went down 66%

from Q1-2012 levels.

Drop in baseload power supplyThe demise of coal power sees National Grid

having to balance the system with a greater

share of intermittent power sources rather

than baseload units. In this quarter, 35.4%

of electricity generation came from gas-fired

plants, 22.4% from renewable sources, 19.0%

from nuclear plants, 16.2% from coal-fired

plants and 7.1% via imports from Ireland

and continental Europe.

Though the rise in wind generation is slow-

ing, the overall renewable sector continues to

grow with an 82% increase in solar and a 22%

growth in hydro generation against the last

quarter. In the quarter, 46.1% of renewable

generation came from wind farms, 33.2% from

biomass plants, 13.5% from hydro plants and

7.2% from solar farms.

System margin down 8% yoyWeather patterns are significant for power

demand, particularly during the winter season.

While Q4 2015 had been unusually mild, tem-

peratures were colder towards the beginning

of 2016.

Availability levels increased by 20% which

facilitated higher levels of margin, with the

average system margin up by 25%, though this

tightened on certain days as large payments

were made to generators to remain active on

tight days and not go offline. The margin was

however 8% shorter than Q1 2015 identifying

the reduced availability within the market.

Levels of availability were relatively high in

Q1 with the exception of March 10th when low

wind reduced the margin to 2.06 GW, creating

a system price of £517MWh and resulting in

large payment to generators that provided addi-

tional capacity in the evening.

In general, Q1 2016 saw a well-supplied

system causing system prices to, on occasion;

turn negative overnight, with a minimum sys-

tem price of -£78MWh over the quarter. �

� PLANT DISPATCH GTP Journal 22 April 20164

Merchant power plants in US struggle with low gas pricesFurther fall in US natural gas prices could lead to the closure of several large-scale power plants, Moody’swarned. “Persistently low natural gas prices” have put several coal and nuclear plants at risk of closure,while merchant generators scramble to cut costs.

With combined-cycle gas power

plants often in the role as swing

producers, gas prices have a sig-

nificant effect on the unregu-

lated power sector in the United States.

"Low natural gas prices have devastated most

of the US merchant power sector because gas-fired

power plants often serve as the marginal plant

during times of peak power demand," Moody's

said in a recent report. "Lower natural gas prices

have effectively driven down wholesale power

prices for all generators, regardless of whether

they are using natural gas, coal, nuclear power or

renewable resources to generate their electricity."

Negative cash flowsWhile this trend is harmful to all merchant gen-

erators, the rating agency said it is "most harm-

ful to coal-based generators and to a lesser

extent to nuclear-based generators."

At current market conditions, most unregu-

lated coal and nuclear plants are generating little

or negative cash flows," Moody's said. "We be-

lieve that if the current gas price environment of

$2/MMBtu to $3/MMBtu does not improve in

the next 12-18 months, there could be more

large-scale coal and nuclear plant closures, espe-

cially in regions without a forward capacity

market, such as Texas and the Midwest.

Moody’s analysis suggests that coal power

plants such as NRG Energy 1,689-MW Lime-

stone plant in Texas and the Dynegy 1,230-

MW Newton plant in Illinois are "particularly

vulnerable because the market is designed

without a forward capacity payment from the

independent system operator." Some coal

plants in Pennsylvania and Maryland are at risk

of either shutting down or being converted to

natural gas

Looking at the forward curve, analysts an-

ticipate that gas prices will recover slowly but

steadily which would help improve utilities’

revenue streams. �

22 April 2016 GTP Journal MARKETS � 5

“Even though we have the power

plants there, we are not able to

run them because we don’t

have gas; those plants run only

on gas,” President John Dramani Mahama

commented.

Lack of supply through West AfricaGas PipelineThese gas power plants, notably the Tema unit,

should be supplied through the West Africa

Gas Pipeline but Ghanaian operators cannot get

enough supply through that line. A lack of fuel

means that the Tema plant is left idle most of

the time, causing shortages of power supply in

the eastern region of Ghana.

Phase 2 of the Asogli power plant has just

been built and will be commissioned next

month. The first phase of 180 MW is already

operational – but can be rarely used as it is

only capable to run on natural gas.

“Anytime gas does not come through the

West Africa Gas Pipeline, then it means that al-

most 500-600MW of power is not available to

us,” Mr Mahama said, stressing that

a floating LNG import facility is ur-

gently needed to remedy these gas

supply shortages.

FSRU meant to in placebefore year-endTo tackle gas shortages and double

generating capacity, the Ghanaian

government has appointed BMT

Asia Pacific as owners engineer

and lead design consultant for de-

veloping a LNG regas facility. At

current low LNG prices, snapping

up cargoes on the spot market is hoped to

reduce the cost of producing electricity from

natural gas.

By the end of 2016, the Government hopes

to have the FSRU in place. Moreover the full

operational start of the Atuabo gas processing

plant is also meant to supply about 100 million

cubic feet a day.

The Atuabo gas processing plant is meant to

provide cheap fuel for power generation but

since its commissioning, the facility has run

mostly one-third of its design capacity. Build at

a cost of over $1 billion, the plant underutilisa-

tion is estimated to cost operators over $219

million per year.

Power barges, such as a 225 MW Karpow-

ership, has arrived in Tema Harbour in late No-

vember and started to supply emergency power

to Ghana’s national power grid starting from

the start of this year. �

Ghana set to buy FSRU to source LNG for idle power plantsThe Government of Ghana has signed an accord to acquire a floating storage and regasification unit (FSRU) toenable supply of LNG to power plant in the eastern part of thecountry where around 600 MW of gas-fired capacity is stranded.

India: LNG-to-power imports surge

“We now expect 2.8 Mt

(19%) of incremental

imports as a result of

low hydro generation,

lower LNG prices, a policy of power subsidy

auctions, expanding networks and industrial

demand,” analysts led by Trevor Sikorski

wrote in a recent report.

For 2017, Energy Aspects forecasts another

2.1 million ton (11%) increase y/y of gas im-

ports, although that is dependent on either the

completion of the Kochi pipeline or the addi-

tion of new regasification capacity.

Auction-based subsidy for RLNGPolicies to improve the utilisation of India’s

gas-fired power plants have seen the launch of

an ‘empowered pool management committee’

that introduced the ‘power system development

fund’ (PSDF). An auction-based subsidy mech-

anism gives plant operators access to cheaper

regasified LNG, helping to overcome chronic

fuel shortages.

The auctioning mechanism distinguishes

between partially stranded or domestic gas-

based plants (DGP), which are allocated do-

mestic gas and account for around 10 GW of

the 24 GW of gas plant in the country.

Stranded gas plants (SGP), on the other hand,

get no domestic gas allocation and make up the

remaining 14 GW.

At auction, the winners are the plants that

bid for the lowest subsidy support per MWh.

Different auctions are held for the two different

categories of plant.

Gas supply under the auction mechanism

helped improve the average utilisation of

India’s gas power plant fleet by 1.25 %over

the April 2015 to February 2016 period.

Further auctions were held in March 2016,

to support the import of 10 mcm/d of gas

(2.7 mtpa).

Gas generation balances weak hydropowerMore gas demand from the power sector is the

key driver for India’s LNG buying spree. The

contribution of hydropower is currently low as

water levels in India’s most important reservoirs

now stand at only 29% of total storage capacity,

well below the 10-year average levels.

Total power output increased 8 TWh, or

10%, with gas-fired generation making up 1.1

TWh, or 40%, of that increase. Coal genera-

tion, meanwhile, saw a smaller growth in mar-

ket share albeit from higher levels, up 7.8

TWh, or 12%.

Coal continues to be a cheap and reliable

fuel source for India: The load factor for coal

plants has remained fairly stable at around

65%, with installed capacity rising to 169.5

GW at the end of February 2016. By compari-

son, installed gas power capacity has remained

at 24.45 GW. �

Prevailing low global gas prices and weak hydropower availability have stimulated LNG demand in India,where the market share of gas-fired power generation surged by 1.1 TWh, or 40% in February. Ship trackingdata indicates a 22% rise in imports in March; hence Energy Aspects has revised its 2016 forecast of IndianLNG imports upwards.

Gas-fired Tema plant

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22 April 2016 GTP Journal PROJECTS � 7

Mohamed Mustafa, chairman of

the Palestinian Investment Fund,

said the envisaged power project

in the West Bank would come at

a cost of $500 million, but it is estimated to

save the Palestinian Authority around $750

million for importing electricity from Israel.

“Building up a power plant in the West

Bank has political implications and will be

purely funded by Palestinian investors,”

Mustafa stressed, pointing out the large num-

ber of job opportunities in the conflict-ridden

region.

Qatar to fund a new gas pipelineThe power plant is set to be run purely on natu-

ral as Qatar already proposed to help with gas

supplies both to the West Bank and to the Gaza

Strip some months ago.

Qatar has offered to build a pipeline from

Ashdod to the Gaza Strip to supply natural gas

from the offshore Tamar field with the aim of

boosting output of Gaza’s sole power plant.

Some of the gas transported to Gaza could be

shipped further to the West Bank.

The Palestinians have only one power plant

in operation, located at Nusaira in the Gaza

Strip. The facility can currently cater for only

eight hours of electricity each day to end-users.

Though barely ever at full capacity, the plant

used to supply Gaza with 30% of its electricity

needs, when operating at 400 MW.

The head of Qatar’s committee for rehabili-

tating Gaza, Muhammad al-Ahmadi, has vis-

ited the region several times in recent weeks

and proposed Qatar would pay NIS38.6 million

($10 million) toward infrastructure costs such

as laying the gas pipeline. The gas itself would

be paid for by the Palestinian Authority and

private funders.

The Electricity Authority stressed it would

be willing to continue purchase fuel, paid for

by the monthly earnings of the power distribu-

tion company, provided that the Israeli fuel tax

is cancelled and the gas is sold for its original

price only. �

Israel approves West Bank’s first power projectNegotiations between Israel and the Palestinian Authority on realising the first ever power plant project in the West Bank have reached an advanced stage, with the chairman of the Palestinian Investment Fundsuggesting that Israel approved the building of such a facility.

Capstone wins order for six C1000microturbines in Colombia

The first phase,

comprised of

two gas-fueled

C1000s, will be

installed in a com-

bined cooling, heat

and power (CCHP)

application and oper-

ate in stand-alone

mode. The microturbines will provide electric-

ity and distribute cooling for a hospital and a

hotel that are currently under development.

The second and third phases, involving four

C1000s, will be rolled out soon afterwards.

The energy requirement of the project could

reach a total of 10 MW, which would require

four additional C1000s.

The Customer selected Capstone microtur-

bines due to their high reliability, low mainte-

nance and demonstrated total system efficiency

when deployed in a cogeneration capacity.

Colombia’s gas consumption is rising

steadily and the country can draw on domestic

reserves that make it an entirely self-sufficient

country with its natural gas supply. “Colombia

has become our largest market within South

America over the last year and continues to

provide strong growth opportunities, specifi-

cally in the industrial CHP market,” Capstone

CEO Darren Jamison commented.

Geographic diversification is one of Cap-

stone’s strategic initiatives, and Mr. Jamison

pointed to “significant new bookings from

areas that include Mexico, South America,

Eastern Europe, Australia, China, Africa and

the Middle East.”

“Concurrently, the energy efficiency and

CHP market vertical continues to show steady

growth and is offsetting the downturn we have

been experiencing in the oil and gas markets,”

he added. �

One of Capstone’s repeat customers in Cartagena, Colombia, has ordered six C1000 microturbines which will be installed in three phases starting from January 2017.

Siemens, Indone-sia sign energycooperationIn connection with the visit of Indonesia’s

President Joko Widodo to Germany,

Siemens has signed to agreements with

state power company Perusahaan Listrik

Negara (PLN) for the development of 500

MW distributed power plants and related

electricity grids.

Siemens sees Indonesia as “an ambi-

tious country with big potential,” given that

the country’s GDP is growing at a rate of

5% to 7% per year.

Faced with an growing population and

rising energy demand, the Indonesian

government has developed an infrastruc-

ture program that foresees to expand the

country’s power generation capacities by

35 GW by 2019. The scheme also targets

an expansion of the power transmission

and distribution grid to secure the power

supply of urban areas and improve the

electricity access in Indonesia’s remote

regions.

"Siemens is ready to support Indonesia's

ambitious energy infrastructure program.

With our broad portfolio and expertise we

can help to develop a sustainable, afford-

able and modern power system," said

Siemens board member, Roland Busch.

“Our expertise for project financing can

provide further support,” he added, “and

we are ready to expand our manufacturing

capabilities in the country."

In fiscal 2015, Siemens Indonesia gen-

erated sales of €263 million with approxi-

mately 1,500 employees. Several projects

like the Jawa Power's Paiton II plant in

East Java or the Simangkuk project at the

Sumatera grid support Indonesia's energy

supply. Siemens has been actively en-

gaged in supporting Indonesia's infra-

structure with innovative technologies

since 1855. �

DISCOVER THE POTENTIAL FOR YOUR BUSINESS IN EUROPE’S EVOLVING ENERGY SECTORThe changing European power sector is seeing established forms of generation being

repurposed and innovative technologies become mature. Discover how the two come

together – and where your business fits in – at

POWER-GEN Europe and Renewable Energy World Europe in Milan this June.

• Tap into the strategic debate in the conference rooms and the technological innovation on the exhibition • Identify what the latest trends are, where growth is expected – and who will need your expertise.

Come to Milan and realize your business opportunities in Europe’s new energy landscape.

MICO - MILANO MILAN, ITALY

21-23 JUNE 2016

CONFERENCE & EXHIBITION

EUROPE

Visit www.powergeneurope.com to find out more

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Under the Patronage of the Italian Ministry of Economic Development

The two power links are being im-

proved as the Chinese govern-

ment seeks to source more

electricity out of Inner Mongolia

via long-distance transmission lines,

rather than transporting millions of tons

of coal to distant generating sites.

China’s centres of energy demand are

in its eastern regions, while its energy

resources are in the west and northwest.

Keen to clean up air pollution in China’s

coastal cities, the government seek to transport

electricity from coal-fired power plants over

long distances while obliging utilities in cities

like Beijing and Shanghai to switch to burning

natural gas.

“This latest breakthrough of transmitting 10

GW of power over a single 800 kV UVDC link

underlines ABB’s Next Level strategy of deliv-

ering innovative solutions for the integration of

renewables and efficient bulk power transmis-

sion to urban centres,” said Claudio Facchin,

president of ABB’s Power Grids division. “Our

ultra-high-voltage technologies are enabling

countries like China to transmit ever increasing

amounts of power over greater distances, with

minimal losses and uncompromising reliability.”

Under the contract, ABB will supply ad-

vanced converter transformers for two long-

distance ultra-high-voltage direct current

(UHVDC) transmission links capable of trans-

porting up to 10,000 MW of power at the 800

kV voltage level, setting a new world record in

terms of capacity.

Recent advances in key technologies like the

509 megavolt ampere (MVA) converter trans-

formers make it possible to increase the power

transmission capacity of UHVDC links to an

“unprecedented level,” according to ABB.

Transmitting large amounts of power at higher

voltages is significantly more efficient. �

ABB wins orders over $300m to strengthenChina’s power grid

Oldest UK hospital gets new gas enginefor onsite powerA trigeneration power plant at one of Europe’s oldest hospitals, St. Bartholomew’s in Barts, was recently put operational. Clarke Energy, GE’s authorised distributor, supplied one 1.4-MW JenbacherJ420 gas engine to provide electricity, heat and cooling for the hospital.

St. Bartholomew’s Hospital was founded

in 1123 by a former courtier of King

Henry I. The latest onsite cogeneration

plant will increase the hospital’s energy

security and efficiency while reducing fuel

costs, GE said.

Apart from the J420 gas engine to drive the

power plant, Clarke Energy also supplied a

250-kilowatt absorption chiller, which delivers

needed cooling water for the hospital and bal-

ance of plant equipment.

Barts Health NHS Trust, through the con-

struction group Skanska, selected Clarke En-

ergy to install the new energy system.

“Our new trigeneration plant will play a

vital role in helping us increase the energy effi-

ciency, resilience and availability of Barts

Health NHS Trust while also promoting greater

financial savings,” Fiona Daly, associate

director of sustainability for Barts Health

NHS Trust commented.

Haydn Rees, managing director of

Clarke Energy added that a rising num-

ber of more industrial customers in the

UK and in wider Europe are installing

advanced cogeneration technologies to

comply with national and EU energy

efficiency and environmental policies. �

China’s 1,609-km long Ximeng-Taizhou and 1,231-km long Shanghaimiao-Shandong 800 kV transmission linkswill deliver 25% more electricity compared with recent 800 kV UHVDC links, once upgraded by ABB with advanced converter transformers. The Swiss company will carry out the upgrades after having won ordersworth over $300 million.

22 April 2016 GTP Journal PROJECTS � 9

UHVDC transformer at ABB's manufacturing site

NEWS NUDGESIndonesian shipyards developsfloating power plantPT PAL, an Indonesian shipyard group, is

developing a floating power plant in an

effort to electrify remote island as the

government support a programme of

building 35 MW barge-based power

plants. Floating generators have already

been used in Aceh after the 2004 tsunami

and also in some remote islands in In-

donesia, which are not connected to the

central power grid.

Gas engine market to grow7.85% by 2019The global gas engine market is forecast to

grow at a CAGR of 7.85% over the period

2014-2019, according to a Sandler Re-

search report. Vendors have made signifi-

cant R&D efforts over the past decade to

improve gas engine shaft efficiency in a

bid to achieve fuel savings, while improv-

ing combustion processes and after-treat-

ment of the exhaust reduced NOx and

UHC emissions.

Japan: Utilities gas usedrops in 2015/16Japan’s former power monopolies con-

sumed 52.29 mtpa of LNG for power gen-

eration in the business year ended March

31, 2016, down 7.6 % from a year ago.

According to the Federation of Electric

Power Companies of Japan, the fall in fos-

sil fuel consumption over the past year re-

flects a restart of some nuclear reactors

and sluggish power demand.

FPL commissions Port Ever-glades CCGT Florida Power & Light Company (FPL)

has started operations of tis its 1,277 MW

Port Everglades Next Generation Clean

Energy Center – the third in a series of

such facilities powered by American-pro-

duced natural gas. As was the case with

the company's CCGTs at Riviera Beach

and Cape Canaveral, the Port Everglades

facility replaces a 1960s-era, oil-fired

power plant that was demolished in

mid-2013. �

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BE PART OF ASIA’S PREMIER POWER INDUSTRY EVENTCovering every aspect of the power generation industry, POWER-GEN Asia, Renewable Energy World Asia and the POWER-GEN Asia Financial Forum will converge at KINTEX, Seoul, South Korea in 2016 for Asia Power Week.

We invite you to exhibit at this prestigious event, delivering a platform for the power industry to meet, share information and discuss solutions for advancing Asia’s energy future. For further information on exhibiting and sponsorship opportunities please contact:

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Kelvin MarlowPOWER-GEN AsiaT: +44 (0) 1992 656 610C: +44 (0) 7808 587 764E: [email protected]

Tony B. MoyoRenewable Energy World AsiaT: +44 (0) 1992 656 658C: +44 7985 229 324E: [email protected]