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natural gas

FuturENERGY Dec. 18 - Jan. 2019

Since the arrival of natural gas in Spain almost half a century ago, no two years have been the same as regards market behaviour. After the calm of the previous year, 2018 has seen a sustained growth in demand, translating into a trend increase in European prices, which started with the minimums of the second quarter of 2017 (14 €/MWh) and reached a peak in the third quarter of 2018 (30 €/MWh). The price then fell due to the economic slowdown and continued uncertainty still felt today…By Javier Esteban, Chairman of GasINDUSTRIAL.

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MAN Energy Solutions has won the contract to provide a new combined-heat-and-power (CHP) solution for Ben Gurion Airport in Tel Aviv, Israel. As the future main energy source, a dual-fuel engine MAN 9L51/60DF will supply the airport with 9.2 MW of electrical energy. The engine will primarily run off a domestic natural-gas supply with plant hand-over – upon its construction by Israeli company, Telemenia – planned for the end of 2019.

The power-plant engine will not only generate electricity, but will also contribute to the airport’s air-conditioning system through combined-heat-and-power generation. Instead of a conventional, compression chiller powered by electricity, the air-conditioning system will exploit heat generated by the engine to provide cooling.

The cogeneration solution not only increases the plant’s efficiency to over 70%, but the airport will also save on the electricity that would otherwise have been required to operate the chiller.

An indispensible solution

With more than 16.5 million passengers a year, Ben Gurion Airport is the largest and most important airport in Israel, making a reliable energy supply indispensable. The operation of the new facility will mean that the airport will no longer draw its energy from the national grid but, rather, will operate independently of the public power supply.

In order to meet high safety standards, the airport’s energy supply must be assured in the event of any crisis. Accordingly, the reliability of the technology used is of great importance. Thanks to its dual-fuel capability, the MAN 9L51/60DF engine will remain fully operational, even during any disruption to its gas supply.

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At the end of October 2018, Rolls-Royce Power Systems opened a new Customer Care Center in Augsburg, Germany, focusing exclusively on customers of natural-gas-powered generator sets. This makes it one of the company’s five new customer service centers that have been in operation since the beginning of 2018. Experts from MTU work together at different locations, and across several time zones, to support customers around the world when it comes to keeping their MTU Onsite Energy systems on the go.

Rolls-Royce Power Systems is also pressing ahead with the expansion of digital services for its customers. The Digital Solutions team is set to double to 80 employees by the end of 2018.

MTU Go! products helping improve the digital monitoring of generator sets

The digital tools MTU Go! Act and MTU Go! Manage will soon be tested in the first power plants. They are replacing the data loggers previously used, and enable MTU experts and the customer to monitor the units remotely, plan maintenance and spare parts availability, analyze operator data and derive recommendations for improving product operation.

Prime Energia puts its trust in MTU’s digitally-assisted service capability

In Chile, five Prime Energia power plants featuring more than 200 MTU Onsite Energy gensets are to be connected to the public grid, providing a total output of 475 MW of reserve capacity to stabilize Chile’s power supplies. The gensets are digitally connected via data loggers to the MTU Go! Manage platform for monitoring and analyzing current system data. Prime Energia monitors the power plants in real time and controls them via the Network Operations Center in Santiago.

MTU Value Care Agreements safeguard system uptime

When the new service agreements are teamed with these new digital tools and the company’s Customer Care Center capability, the customer benefits in terms of reliability, efficiency and longevity of powergen systems are immense. Preventive maintenance work is planned efficiently, maintenance intervals are adjusted, an optimum, transparent cost structure is implemented, and system uptime is guaranteed.

Source: MTU Onsite Energy

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Italy derived most of its electricity from thermal power in 2017, contributing with a 50.7% of its installed capacity, and with natural gas alone accounting for 41%, according to GlobalData. The company’s latest report ‘Italy Power Market Outlook to 2030, Update 2018 – Market Trends, Regulations, and Competitive Landscape’ reveals that, government policy is oriented towards scrapping coal based capacity between 2025 and 2030, while renewable energy auctions, to be started by 2020, will help to compensate for this loss.

Renewable power is Italy’s fastest-growing energy source, owing to the 2011 referendum that closed any option for the government to restart nuclear power generation and a rising need to ensure energy security. Solar PV and wind power are the leading renewable sources.

Installed non-hydro renewable capacity increased from 1.7 GW in 2000 to 34.5 GW in 2017. Italy recorded notable progress with respect to the development of installed solar capacity, which grew from 19 MW in 2000 to around 19.7 GW in 2017. The onshore wind market also grew exponentially, from 364 MW to 9.8 GW, owing to strong policy support from the government in the form of FiTs. From 2018 to 2030, renewable installed capacity is expected to grow to 63.4 GW in 2030.

Continuous modifications to the support schemes deter long-term investment planning and hinder access to financing and unclear taxation rules are also a significant barrier, especially for biofuels.

GlobalData’s report also finds that gas and oil-based capacities are expected to remain stable in the country with some of its oil-based capacity expected to be converted to gas. Coal based capacity is expected to cease beyond 2024 due to the decommissioning of the existing coal based power plants.

Installed thermal capacity grew from 53.5 GW in 2000 to 58.8 GW in 2017 at a CAGR of 0.6%. Thermal capacity accounted for 50.7% of installed capacity in 2017, of which gas contributed 41%, while coal and oil contributed respective shares of 7.5% and 2.2%. From 2018 to 2030, installed thermal capacity is expected to decrease to 51.1 GW, at a negative CAGR of 1.1%.

Italy imports more than 90% of its coal requirement from South Africa, Australia, Indonesia, Colombia, and the US. It possesses small deposits of coal reserves, most of which are in South Sardinia. It also imports gas, primarily from Algeria and Russia. Although it possesses economically accessible gas reserves, a declining trend in gas production has been observed since the mid-1990s, caused by national energy policies formulated by the government that do not support gas production. However, the government is increasing the share of renewable energy sources over concerns over energy security.

Thermal power’s share is expected to be overshadowed by non-hydro renewable power, with its share in installed capacity declining to 36.9%. The share of non-hydro renewable capacity is expected to increase to 45.8% by 2030.

Source: GlobalData

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The technology group Wärtsilä has successfully handed over two new gas engine plants ordered by Centrica, a British multi-national energy and services company. The project is in line with the company’s strategy for de-centralised power production and will ease the integration of intermittent renewable capacity, notably solar and wind power. Wärtsilä was selected to deliver Engineering, Procurement and Construction (EPC) solutions for both sites, located at Brigg and Peterborough in the UK. The orders were booked in January 2017.

The two 50 MW plants will balance the stability of the grid and together will generate enough electricity to supply 100,000 homes. The two-minute fast-starting flexibility of the Wärtsilä solution will support local peaks in demand and the inevitable fluctuations in supply from renewable sources. Operational flexibility provided by Wärtsilä ensures having energy available when the supply from renewables drops.

These two new plants, which will help meet the UK’s changing energy needs and ultimately support the transition to a low carbon future by providing an important back up to renewable generation.

The UK is the leading country in shaping the electricity markets and Centrica is one of its leading operators. Today, renewable power sources provide roughly a quarter of the country’s total generation capacity, compared to five percent in 2006, and the share is increasing all the time. To support this trend, fast-starting, flexible generation is essential.

The two plants will each utilise five Wärtsilä 34SG engines running on natural gas and have now entered commercial operation.

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GE’s Power Services business announced the completion of an aeroderivative gas turbine exchange at COMETA’s Talosa plant in Soria, Spain. COMETA, owned by Grupo LOSAN, is a major European producer of wood-based panels and faced the need to modernize its natural gas-fired plant to keep its industrial processes competitive globally.

At our Talosa facility, we power our industrial process and sell the extra electricity produced by the turbine. Also, the exhaust gas is used to supply heat to the wood and chipboard factory and to a heat recovery steam generator that produces steam—delivering an additional 3,000 kilowatt-hours,” said José Luis Lázaro, deputy general manager, Losán Group, COMETA. “We needed an upgrade that provided us with more flexibility to balance the intermittent nature of the power grid. GE’s engine exchange with a new turbine was the best and most cost-effective solution for greater flexibility, reliability and performance to support our many industrial processes. Furthermore, the financing and leasing options included in GE’s exchange program met our requirements without impacting our own financing capacity.”

For the project, COMETA decided on a new GE LM2500 Base SAC aeroderivative gas turbine rather than a second overhaul of its existing engine, which had already reached 100,000 running hours. GE’s solution of a new engine rather than an overhaul for a third life cycle reduces the shutdown period and offsets the cost of a replacement engine. The new engine will result in an output increase of at least 2 percent, a heat rate improvement of at least 3 percent and increased electrical efficiency by at least 1 percent. The deal includes a multiyear service agreement through the end of 2023.

This project marks our continuous commitment in supporting customers with holistic service solutions, whether it be maintenance, repair, overhaul or engine exchange,” said Martin O’Neill, general manager of Aeroderivative Gas Turbines and Gas Turbine Cross-Fleet solutions for GE’s Power Services business. “GE’s engine exchange program is vital for companies like Grupo LOSAN with aging fleets that have the need to increase efficiency and output. This program is crucial—especially in Europe where flexible power and reliability are needed to ensure continuous industrial operations and balance the intermittency of the grid.

GE’s aeroderivative engine exchange program is specifically made for customers that seek to reduce overall life cycle costs and provide a lower-cost method for maintaining unit availability. Customers can improve site availability by leasing equipment from GE when their own equipment is at a depot for repair or when their equipment is being repaired on-site.

GE can exchange existing engines with a new engine, a refurbished engine or a partial-life engine on-site, which would require only a two-to-three-day outage. As the original equipment manufacturer, GE not only has the largest engine exchange pool available, but also has a steady supply of new engines that provide the latest and greatest technology improvements. Additionally, GE can offer fully refurbished engines as a lower-cost alternative.

Source: GE

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Gastech, the leading and longest running exhibition and conference for the international gas, LNG (liquefied natural gas) and energy industries, has been discussing predictions for a rise and onset of upstream and technical advances in the marketplace – enhancing projects and bolstering efficiencies at this year’s OTC.

Taking place in Barcelona, Spain from 17-20 September 2018, Gastech attracted in excess of 1,000 extremely high quality abstracts in its recent call for papers campaign. The Gastech Governing Body met on 23 and 24 May in Barcelona to review and select the abstracts where 200 were finally agreed upon to be presented at this year’s conference.

The selection of the abstracts for the Gastech 2018 conference also coincided with the second edition of the Gastech Roadshow at which market diversification, monetisation and growth potentials were discussed.

Conversations from the Gastech roadshow and Governing Body meeting have placed strong emphasis on the need for industry collaboration, new strategies and technological advancements.” Said Director of the Gastech Governing Body, Gavin Sutcliffe.

“From these conversations and the abstracts selected for the Gastech 2018 conference, we are seeing strong developments across the upstream industry especially in leading innovation and efficiency as the energy industry moves to lower carbon strategies.”

The full strategic and technical conference programme for Gastech 2018 is hence expected to be released this week.

With such strong emphasis on the upstream sector and technologies being discussed at the Governing Body meeting and the Gastech Roadshow, the Gastech team has continued these discussions at the Offshore Technology Conference in Houston, Texas from 30 April to 3 May.

After a successful two days, Gastech is continuing to exhibit on stand #1255. The team has already enjoyed meeting with key upstream industry partners and associates to learn more about their on-going developments and strategies and how these will impact the global gas, LNG and energy industries.

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Rolls-Royce will deliver two MTU Onsite Energy natural gas-fueled combined cooling, heating and power (CCHP) trigeneration systems to Richmond University Medical Center, a Level I trauma center in Staten Island, New York (USA).

The trigeneration project is being managed by Innovative Energy Strategies (IES) and is part of a multi-million dollar facility expansion adding a substantial increase in the center  capacity. As one of two Level I trauma centers on Staten Island, Richmond University Medical Center recognized the importance of alternative power supply solutions, especially after experiencing the devastation of Hurricane Sandy in 2012.

Stewart & Stevenson Power Products – Atlantic Division, an authorized MTU Onsite Energy distributor (part of Rolls-Royce Power Systems) , won a competitive bid to customize, supply, and deliver the two-natural gasfueled CCHP trigeneration systems.

“After we evaluated the equipment, installation and maintenance requirements for the project, IES selected MTU because of the fuel conversion efficiency and the extended maintenance periods that significantly reduce the total cost of ownership,” said Marty

Borruso, principal at IES. “Another major factor was the ability of the MTU engines to operate on low pressure gas, this feature is desirable in densely populated urban areas like New York City.”

Rated at 1,500 kWe each and guaranteeing performance under high ambient conditions, the CCHP units will provide clean and efficient continuous power to the 114-year-old trauma center. The two 50,000-pound units will be housed in a former laundry facility adjacent to the hospital, which has been renovated to comply with sound attenuation rules and regulations. The units will quietly blend into the background sounds of what is a highly concentrated residential area and will be protected inside the structure from external conditions.

“MTU Onsite Energy is a long-time partner to critical care facilities like the Richmond University Medical Center,” said Christian Mueller, senior sales engineer at MTU Onsite Energy. “These kinds of facilities have a year-round, 24/7 uptime obligation to patients, and we keep that top-of-mind when developing cogeneration solutions. MTU Onsite Energy is proud to offer peace of mind with the promise of cooling, heating and power to trauma centers when they need it most.”

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Gastech the global exhibition and conference at the forefront of the international gas, LNG and energy industries, has announced its preliminary programme ahead of the conference taking place in Barcelona this September, 17-20.

Gastech was delighted to have received the Presidency of Honour from His Majesty King Felipe VI of Spain that was further complemented by an official endorsement from the Spanish Secretary of State for Energy, Daniel Navia Simon.

The conference and exhibition, which will be opened by senior representatives from the host consortia, will include four days of panel discussions and presentations from the industry’s key global leaders, addressing the most current gas and LNG issues, whilst also looking into 2019 and beyond.

The multi streamed programme features ministerial and global business dialogue sessions and strategic panel sessions alongside 28 strategic sessions. The newly expanded technical conference, which includes 82 technical sessions, will address the complete value chain from exploration and production through to distribution. It will also highlight new technologies and industry developments.

Gastech conference director Jenny Kelly said: “Gastech has been held around the globe for the past 45 years and this is one of the strongest and most informative programmes to date. Speaking at the event will be some of the industry’s leading influencers and CEOs including Saad Sherida al-Kaabi, CEO, Qatar Petroleum, Luca de Meo, president, SEAT, Maarten Wetselaar, integrated gas and new energies director and member of the executive committee, Royal Dutch Shell, Alexander Medvedev, Deputy Chairman of the Management Committee, Gazprom, Lazlo Varro, Chief Economist, International Energy Agency and Steven L Edwards, Chairman & Chief Executive Officer, Black & Veatch.”

“The programme will allow us to hear from government officials and industry bodies as well as looking into the financial aspects of gas and LNG. It will also look to answer some of the key questions raised around the future of gas.”

Gastech 2018 will be the most predominant global gas and LNG event, bringing together upstream, midstream and downstream professionals to convene and do business.

For the first time this year, Gastech will collaborate with the European Association of Geoscientists & Engineers (EAGE), running an upstream/E&P zone in the exhibition as well as contributing to the technical conference stream.

The global professional organisation for geoscientists and engineers will share key insights into various topics including ‘reservoir surveillance technologies applied to gas field production, CO2 sequestration and underground gas storage’, ‘acoustic measurements and laboratory experiments’ and the ‘role of gas in the current energy transition and future energy landscape’.

Jenny added: “We are delighted to be collaborating with EAGE. The new partnership allows us to further strengthen our strategic and technical offering – providing a wealth of knowledge from EAGE’s expert members who are professionally involved in a range of engineering disciplines.”

“Alongside our co-location with GPEX 2018, we believe this collaboration will heighten Gastech’s reputation as the world’s leading gas, LNG and energy event and we look forward to a continued relationship with the professional body, EAGE.”

The event spans over 50,000sqm of exhibition space, showcasing over 700 international, regional and local exhibitors while gathering over 30,000 international professionals from across the global gas, LNG and energy industries. Over 3,500 delegates and 1,200 Ministers, government officials, presidents, managing directors, CEOs and chairmen will hear from 350 senior speakers from across all sectors of the industry.

Headline speakers have been released in the preliminary programme and organisers are currently seeking speakers for the strategic and technical conference. Industry professionals who are interested in presenting at the 2018 conference should submit their abstracts before 16 March 2018.

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Following its first roadshow in Madrid last year, Gastech 2018 is preparing to hit the road once again, this time gathering regional and international business leaders, government representatives and renowned influencers at the Fira Gran Via in Barcelona, Spain, on Tuesday, April 24, to discuss the continued evolution of the growing gas and LNG market.

The one-day free to attend event, to be held at the same venue as the upcoming Gastech Exhibition and Conference, will allow global delegates to hear insights from major Spanish energy company Repsol, leading energy industry consultancy Wood Mackenzie, as well as key stakeholders and supporters KBR, Baker Botts LLP, Gaztransport & Technigaz -GTT Pte Ltd and Macquarie Bank.

This second roadshow event will also be held in conjunction with the Gastech Governing Body’s conference programme voting meeting, at which it is expected that the full conference programme for Gastech 2018 will be confirmed and released.

The roadshow will attract 150 attendees ahead of the Gastech Exhibition and Conference, which will be held in September 2018. The industry leading conference, which this year will share the same location with GPEX (Global Power & Energy Exhibition), the new hub for the international power and energy community, will see more than 1,200 ministers, government officials, presidents, CEOs, chairmen and managing directors among 3,500 global conference delegates.

Gastech governing body and programme director Gavin Sutcliffe explained: “The Gastech roadshow in Madrid was a fantastic introduction to the key issues, topics and trends that we will be discussing at Gastech in September, and our Barcelona roadshow on April 24 will build on that success.”

“We’re especially excited that this second roadshow will be in the same venue where Gastech 2018 will be held in September. It will enable delegates, exhibitors and speakers to become familiar with the site and give them a real buzz for what is to come. The roadshow will also allow them to network in a focussed and productive environment while benefitting from expert insight into growth opportunities”.

“Not only that, but we are delighted to be announcing the full Gastech conference programme and share the presentations that will be featured at the conference next September.”

Presenters at Gastech 2018 will discuss topics at the forefront of the evolving gas industry, including new market opportunities for traditional and non-traditional gas market players, the largest consumers of gas and LNG by 2040, and the impact of energy landscape fragments and new ‘disruptors’ (in the form of renewables and innovative technologies) on the future of gas and LNG.

The Gastech 2018 conference will include four days of panel discussions and presentations from the industry’s key global leaders, which will address the key challenges facing the industry and discuss the most important topics that will shape the future of the world’s gas, LNG and energy industries for decades to come.

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