Includes News on Technology & Innovation

Weekly News 26 January 2018 Evonik, Siemens harness Germany’s excess green energy to produce speciality chemicals “Green chemistry” is what Evonik and Siemens are envisaging by using electricity from renewable sources and bacteria to convert carbon dioxide into specialty chemicals. Based on €2.8 million funding from Germany's Federal Ministry of Education and Research (BMBF), the two companies just launched a 2-year research project, called ‘Rheticus’, on electrolysis and fermentation processes. sing electricity to generate chemicals is an idea from the Power-to-X concept. The idea is to help convert and store re- newable, electrical energy efficiently. "With the Rheticus Uplatform, we want to demonstrate that artificial photosynthe- sis is feasible", said Dr. Thomas Haas, responsible for the project in Evonik's strategic research department Creavis. Artificial photosynthe- sis is where CO2 and water are converted into chemicals using a com- Copyright: Evonik Industries AG bination of chemical and biological steps, in a process similar to how In the fermentation process—here at lab scale— special bacteria are convert- ing CO-containing gases to valuable chemicals through metabolic processes leaves use chlorophyll and enzymes to synthesize glucose. up to 20,000 tonnes a year. There is also potential to manufacture other Tests to start in Marl by 2021 specialty chemicals or fuels, Siemens and Evonik said in a statement. The first test plant is scheduled to go on stream by 2021 at the Evonik Some 20 scientists from the two companies are involved in the project. facility in Marl, Germany which produces chemicals such as butanol and Ultimately, the new technology is meant to serve as an energy store, hexanol, both feedstocks for special plastics and food supplements, for capable to respond to power fluctuations and help stabilize the grid. example. The next stage could see a plant with a production capacity of Rheticus is linked to the Kopernikus Initiative for the energy transition continued on page 2 Cheap gas remains dominant fuel AGENDA source in US power sector TENDER Morocco to launch $4.6bn Low-cost natural gas has stayed the dominant source of power generation in the gas project tender 2 United States for the second year in a row. The US Energy Information Adminis- tration (EIA) estimates that gas-fired power plants covered an average of 32% of total U.S. electricity needs in 2017, compared with 30% from coal power plants. IMPORTS Japan’s LNG imports rise for the first year in three 3 lectricity markets throughout the United States benefited from TRADING relatively low gas fuel costs. Mexico to launch online gas trading platform by EThe monthly average price of mid-2018 4 gas delivered to electric generators peaked at $4.14 per million British ther- TECHNOLOGY mal units (MMBtu) in January 2017, but DVI solution save declined during the second half of the Ontario 1.1-GWh 7 year and stayed in a narrow range of $3.10/MMBtu to $3.30/MMBtu. REGULATION Low volatility in gas fuel prices in PennEast pipeline gets the green light 8 H2-2017 contributed to stable wholesale electricity in the eastern United States during 2017 were rela- prices, although late summer heat waves caused short- tively unchanged year-on-year, while average monthly PROJECTS term price spikes in some western electricity markets. wholesale prices in California and Texas increased by IFC helps finance EDM, Wholesale electricity prices at major trading hubs 18% and 27%, respectively. Sasol’s power project 9

continued on page 2 2 l TENDER GTP Journal 26 January 2018 Continued from page 1, top story in Germany which is seeking new solutions to research collaboration. Siemens is providing size – the chemical industry will be able to restructure the energy system. the electrolysis technology, which is used in adapt them flexibly to local conditions. In fu- "We are developing a platform that will the first step to convert carbon dioxide and ture, they could be installed anywhere where allow us to produce chemical products in a water into hydrogen and carbon monoxide there is a source of CO2 – power plant waste much more cost-effective and environmentally- (CO) using electricity. Evonik is contributing gas or biogas for instance. friendly way than we do today", explains Dr. the fermentation process, converting gases "Its modular nature and flexibility in terms Günter Schmid, project responsible of Siemens containing CO into useful products by of location, raw material sources and products Corporate Technology. "Using our platform, metabolic processes with the aid of special manufactured make the new platform attrac- operators will in future be able to scale their micro-organisms. tive for the specialty chemicals industry in plants to suit their needs." These two steps – electrolysis and fermenta- particular", Dr. Haas said. "We are confident tion – are then scaled up from the laboratory that other companies will use the platform and Electrolysis and fermentation and combined in a technical test facility. integrate it with their own modules to manu- Both partners, Siemens and Evonik, are con- Going forward, the Rheticus platform will facture their chemical products", Dr. Schmid tributing their own core competencies to this make it simple to scale plants to the desired forecasts. n Morocco gears up to launch $4.6bn gas project tender The Moroccan energy ministry is preparing to launch a tender for gas upstream projects worth $4.6 billion with most of the gas production earmarked for domestic power generation. The Moroccan government has already selected financial and technical consultants for the venture.

ome to some 1.44 billion cubic me- pany intends to replicate ters of natural gas, Morocco pro- its recent success at the duced less than 100 million cu m as Tendrara project where Hof 2015 but the governments aspires it discovered just over 1 to turn the country into an international player trillion cubic feet of gas on global gas markets, energy minister Aziz resources. The upcom- Rabbah told Bloomberg. ing period of back to back drilling in Eastern Tendrara acreage contains about Morocco, in his view, 1 Tcf of gas “has the potential to sig- Upstream projects in Morocco have been at- nificantly increase the tracting players like Sound Energy. This well- core value of our Mo- funded African and European upstream gas roccan acreage and to company has shifted its strategic focus on Mo- establish Eastern Mo- rocco, rather than Italy, unveiling plans for new rocco as a prolific but three-well exploration at its Moroccan acreage. low cost gas province, Giving details on its planned drilling pro- on the doorstep of large and growing energy projected regas terminal in the Moroccan port gramme in Eastern Morocco, Sound Energy markets." city of Jorf Lasfar. said its internally estimated volumes for the ex- Imports volumes are meant to start at ploration potential of the entire Tendrara and Qatari LNG imports to bridge 2 mpta and the government in Rabat aims to Meridja permit areas are 17 Tcf mid-case un- the supply gap have them stepped up eventually to 5 mpta to risked original gas in place. To bridge Morocco’s rising gas demand for underpin several combined-cycle gas turbine Sound CEO James Parsons said the com- power generation, until more domestic supply (CCGT) power projects. Should Jorf Lasfar from new upstream projects comes onstream, LNG imports commence as planned, Mo- Gas to Power Journal Qatar had been considering delivering LNG rocco’s power mix will shift to 13% gas gener- n Publisher from 2020. The cargoes will be shipped to a ation by 2025. Stuart Fryer Editor & Advertising Continued from page 1 Anja Karl Tel: +44 (0)7778 024 139 [email protected] Peak day-ahead wholesale electricity prices according to EIA figures. in regions controlled by the PJM Independent In California, meanwhile, hot summer tem- Senior Technology Reporter Malcolm Ramsay System Operator (ISO), which covers many peratures led to periods of high electricity de- Tel: +44 (0) 207 017 3413 parts of the Mid-Atlantic and Midwestern mand, which neared record hourly levels in the [email protected] states, averaged about $34 per megawatthour late summer. Wholesale prices during peak Subscriptions (MWh) during 2017, or about 1% lower than hours averaged $55/MWh in August, 42% Elena Fuertes Tel: +44 (0)207 253 3402 in 2016. higher than in the same month in 2016. On [email protected] Although prices in ISO New England September 1, day-ahead electricity market Layout & Production spiked to $75/MWh in December, the average prices in the California ISO were higher than Vivian Chee annual wholesale price of $38/MWh in 2017 $200/MWh for four hours and reached Tel: +44 (0) 208 995 5540 [email protected] was just 7% higher than the 2016 average, $770/MWh in one hour. n 26 January 2018 GTP Journal GAS IMPORTS l 3 Japan’s LNG imports rise to fill gap in power generation For the first year in three, Japan’s LNG purchases have risen as gas-fired power plants make up for the missing nuclear power supply. Delays in the restart of nuclear reactors also caused a 4.3% rise in thermal coal imports, while LNG purchases notched up 0.4% to 83.632 million tonnes in FY2017 – driven by a 5.4% rise in December. apan’s integrated utilities in December 2017 for their gas purchases, with 3,915 turned to LNG spot markets to stock up billion yen ($35.58bn) of expenditure their natural gas storages to prepare for versus 3,281bn yen ($29.81bn) in 2016 Jcolder weather in January. The rebound for its 83.34 million tonnes. in gas imports last month reveals Japan’s con- Thermal coal imports to Japan rose tinuing reliance on fossil fuels for baseload and more than LNG with 114.5 million mid-merit electricity supply. tonnes purchased, a rise of 4.3% over Nuclear power plants are intended to gradu- 2016. The costs of the imported coal rose ally return operational following their complete 45% from a year earlier. shutdown in the wake of the Fukushima disas- Future consumption of fossil fuels, ter almost seven years ago. Fierce public oppo- and especially LNG, in Japan’s power Tepco’s Futtsu LNG import terminal and power plant sition, however, have led to court order that sector hinges on the speed of the restart delay the nuclear restart hence only four out of of nuclear power plants as well as invest- 42 operable reactors are back on the grid. ments in renewable energy capacity. Given the financial year 2030, well down from the 2015 Relying on fossil fuel imports costs Japan lengthy nuclear restart process, analysts do not levels of 39.2% and 34%. The fall will, how- dearly. Preliminary trade figures from the expect a rapid decline in gas consumption. ever, depend on nuclear power output rising to Japanese Finance Ministry shows that the LNG and coal are forecast to account for 20-22% and renewables to 22-24% of Japan’s country’s LNG buyers paid 19.3% more in 27% and 26%, respectively, of total output in total output in electric power generation. n H-Energy, K-Line team up to build FSRU on the East Coast of India Darshan Hiranandani, the head of H-Energy, has forged a joint venture with the Japanese shipping company Kawasaki Kisen Kaisha, known as K-Line, striving to import LNG for power generation and industry customers in the Indian state of West Bengal and neighbouring Bangladesh. To that end, an FSRU is meant to be deployed in the offshore Digha region – the first facility on India’s East Coast. ndia is beset by chronic power shortages be attractive. Assertive Indian buyers have to adjacent power plants, H-Energy is looking given that much of its installed gas-fired been seeking to secure spot cargoes at US$5- to award an EPC contract for a pipeline to con- power generation capacity is lying idle. 6/mmBtu while the government in Delhi hopes nect with the regional gas distribution grid. IShortages of domestic gas supply are part to lock a price even lower than that in any new All other four of India’s LNG import and of the problem, so the government hopes that term deal with suppliers. regasification terminals are located on the West importing LNG could solve this issue. Coast. Three of them are near Mumbai at Gas demand in India is seen growing at a Start of Digha FSRU slated for 2020 Hazira, Dahej and Dabhol for use by importers rate 7% by 2020, driven by new gas infrastruc- As for the Digha FSRU, the H-Energy CEO Shell, Petronet LNG and Gas Authority of ture and increasing domestic production, ac- pointed out his company had achieved “key India respectively. The fourth regas terminal, cording to Wood Mackenzie. LNG imports milestones of the project and expects to start owned by Petronet, is at Kochi in the south- have increased from 14.4 mtpa in 2014 to an commercial operations by 2020.” The venture west state of Kerala. expected 19.6 mt at the end of 2017. benefits from “unstinting support” of the Gov- However, for regasified LNG to compete ernment of West Bengal and the Ministry of Embracing Japanese LNG shipper with coal as a fuel source in India’s competi- Shipping and the Government of India, he added. H-Energy, part of the Hiranandani Group, is tive power market, the price of LNG needs to To transport the regasified LNG from Dinga one of India’s largest conglomerates with busi- ness activities stretching from property invest- ment to energy and power generation. CEO Darshan Hiranandani said he greatly valued the relationship with K-Line and “[we] are happy that a global shipping company with vast expe- rience in LNG shipping operations is part of our East Coast LNG project.” H-Energy will own 74% of the West Bengal venture and K-Line will hold the remaining 26%. Both companies are planning future collab- oration sin areas such as LNG bunkering at major Indian ports and the supply of LNG ships. Hiranandani said “these [possible ven- tures] are currently under discussion and are expected to fructify shortly.” n 4 l COMPETING FUELS GTP Journal 26 January 2018 Mexico to launch online gas trading platform by mid-2018 Mexico, the largest offtaker of US pipeline gas and LNG importer from Peru, Nigeria and the US, is getting ready to launch an online gas trading platform by the summer of this year, at the latest. The Federal Electricity Commission (CFE), Mexico’s state-owned grid operator, also plans to set up several gas pricing points. “We'll have Henry Hub, too, as that's what we now have,” said Javier Gutierrez Becerril, director of operations at CFE Energy. efore the end of the next four pipeline interconnectors, currently quarter, we hope to have the under construction: Roadrunner (Phase II), NEWS online service operating, Comanche Trail, Presidio Crossing, and “Bwhich we have been working Nueva Era, with a total capacity of 3.5 Bcf/d. NUDGES on for a year,” Becerril disclosed in a speech. These four pipelines will supply gas to new Details are China’s gas production up being final- 2.3% in Dec-2017 ized, he said, Robust winter demand has propelled up adding the gas prices in Northern China, prompting online trading the government to ease restrictions on platform will in- coal-burn for power generation. Domestic clude day-ahead gas production subsequently increased. In pricing and monthly December alone, gas production stood at indexes available in other 13.61 Bcm, up 2.3% year on year - the markets. highest monthly rise since 2010, according “We envisage a combina- to the National Bureau of Statistics (NBS). tion of everything and we will do it in a conventional ways, flows-of-the-month Electric vehicle market and daily intra-day data. We're not trying on the up to re-invent the wheel,” Becerril stressed. Electric car deployment is swift in some Hubs for natural gas trading are envisaged to markets: In Norway, electric cars had a include Hermosillo, Encino and La Laguna, 29% market share last year, the highest all areas where several pipelines inter-con- power plants in the Mexican states of globally, followed by the Netherlands with nect, but the exact locations are still subject Chihuahua, Nuevo Leon, Sonora, and Sinaloa. 6.4%, and Sweden with 3.4%. Globally, the to approval. number of electric cars on the roads rose to 2 million in 2016, following a year of An efficient power generation market needs Awash with US shale gas imports strong growth in 2015, according to of the to be underpinned by reliable natural gas By the end of 2018, two additional pipelines – International Energy Agency’s latest Global pipeline transportation capacity, Becerril ar- KM Mier-Monterrey and Neuces-Brownsville, EV Outlook. China was the largest EV mar- gued, hence CFE is fostering a closer coopera- with 3.3 Bcf/d capacity, are scheduled to start ket in 2016, accounting for more than 40% tion with Mexico’s Natural Gas Control Centre exporting US gas to Mexico’s Northeast and of new sales. (Cenagas). Central regions, mainly from the Eagle Ford play in southern Texas. Bahrain to commence tight Aspiring for a ‘Mexican Henry Hub’ In the first week of December 2017, US gas drilling In the long-run CFE Energy is aspiring to es- gas export to Mexico – both by pipeline and Bahrain’s oil ministry is in talks with tablish a major gas trading benchmark, similar shipments of LNG cargoes – have reached Schlumberger, Haliburton and others to to the one in the United States. “We'll have an all-time high of just under 7.8 Bcf/d this start the development of its tight gas re- Henry Hub, too, as that's what we now have,” week, following record high Lower 48 gas serves in the course of this year, notably Becerril suggested. His goal may well seem production at around 77 Bcf/d at the start of large deposits within the onshore Kuff far-fetched – considering the daily trading vol- the week. reservoir. The drive to tap its own gas re- ume record for Henry Hub Natural Gas futures “This current picture sets up badly for the serves complement’s Bahrain’s ongoing on January 12, 2018, surpassed the 1 million bull balance argument in 2018, especially construction of an LNG import terminal, milestone – but he remains adamant about giv- given most of the LNG demand increases designed to balance seasonal demand. ing it a try. won’t come online until the end of 2018 and With the new Mexican trading hubs, CFE 2019,” analysts at HFI Research commented. California to close last nuke Energy seeks cover “both sides of the Mexi- “If producers do meet all the takeaway capac- in 2025 can-US border, Becerrill maintained, although ity that comes online in Q1-2018, then prices The Public Utility Commission has the actual online platform would concentrate will have to move lower over the injection sea- reached an agreement with Pacific Gas & mainly on the Mexican market. son (April to November) to accommodate for Electric (PG&E) to close California's last Mexico’s Energy Regulatory Commission higher power-burn demand.” nuclear power plant reactors at Diablo (CRE) already publishes a National Reference In terms of LNG imports, Mexico can cur- Canyon by 2025. As the state’s largest Index for Natural Gas Wholesale Prices once a rently land LNG cargoes at is its Altamira fa- power plant, Diablo Canyon currently month as an indicator. cility in the Gulf of Mexico, at Manzanillo on covers 9% of California’s electricity Exports of cheap US shale to Mexico are the Pacific Coast and at Costa Azul, north of needs. set to accelerate with the imminent start of the Pacific port of Ensenada. n 26 January 2018 GTP Journal COMPANIES l 5 GE expects another “though” year for power-gen in 2018 General Electric is bracing for 2018 to be another challenging period for its beleaguered power business. "We said '17 issues would carry over into '18 in power, but it's still a good franchise in power and we're going to make the most out of that," GE CEO John Flannery told investors on a conference call. elling gas turbines for power plants is admitted. GE is also facing a SEC review of its GE Power’s core business but the mar- accounting practices which sent the share price Siemens opens ket has turned sour as the world’s south 1% after the news broke late Wednesday. new MindSphere Slargest manufacturers of power genera- Going forward, Flannery said he wants to tion equipment have been underestimating the tackle four key issues: adjusting the size of GE center in Berlin speed and scope of renewable energy growth. Power's manufacturing footprint, improving Shifting focus on digitalization, Siemens In 2018, GE is prepar- cash and project execution, wringing more has opened a new MindSphere Application ing for having to face its value out of its installed base of equipment, Center for Power Generation Services in “worst year of gas turbine and improving management and processes. Berlin. With this new center, the German installations in about 15 Flannery, who took over the reins at GE on OEM seeks to set the stage for more co-cre- years,” Flannery said. Re- 1 August, 2017, said he was "looking for the ation in direct involvement with its energy structuring and job cuts soul of the company again" and would focus customers. The move is part of a strategic have been the answer as on "restoring the oxygen of cash and earnings refocusing of the company’s business. GE CEO the new man at the helm to the company." As for GE’s Digital unit, on Seeking to expand its digitalization ap- John Flannery of GE is seeking to down- which his predecessor Jeff Immelt spent bil- proach to customers around the globe, size and prepare for a retrenching orderbook to lions of dollars, Flannery wants to implement a Siemens will set up MindSphere Applica- as little as 30 GW – a steep drop after 2017 or- “more focused strategy” targeting core cus- tion Centers in multiple locations, strategi- ders came in at just under 35 GW. tomers in power, aviation and healthcare. cally placed near customers so that Profit margins in the power generation seg- Putting a brave face on it, he pointed out opportunities for co-creation and collabora- ments have fallen off a cliff, plunging 88% in that GE equipment to date generates about a tion are readily available. Next to the Berlin the fourth quarter of 2017, bogged down by third of the word’s electric power and the US digital center, Siemens announced it will difficult market conditions, mistakes in busi- company still holds 50% market share in ad- open centres in Orlando and Shanghai in ness execution and legal charges, executives vanced power technology. n the next few months. Featuring a broad portfolio of digital services and tools, theseMindSphere centre Artificial intelligence helps allows customers to explore the value- added by digital services tools and solu- empower Europe’s utilities tions. The open concept of the centre meant Facing disruptions on multiple fronts, Europe’s energy companies can to encourage “spirited collaboration”, harness artificial intelligence to adapt to smaller-scale, distributed Siemens said, and “creates an environment electricity generation by active energy “prosumers.” The age of utili- conducive to innovation and new ideas.” ties simply selling kilowatt-hours is coming to an end. To remain “rele- vant,” Thulium CEO Tamara McCleary recommends power providers to Siemens refocus business, become platforms, offering services to improve peoples' lives, as well cuts jobs as helping to regulate supply. The two rival turbine manufacturers General tilities are moving into the these,” she commented. Electric and Siemens have both announced people business. They’ll To share ideas and lessons across the full large-scale restructuring programmes that in- need to think beyond chasing length of the electricity value chain, including clude thousands of job cuts. “Uefficiency gains alone; in- the applicability of AI, Europe’s power profes- "The power generation industry is expe- stead applying emotional intelligence in every- sionals are invited to attend events like Elec- riencing disruption of unprecedented scope thing they do. After all, an optimally-efficient trify Europe. and speed. With their innovative strength grid is no good if it doesn’t fit around how “It’s exactly the type of leadership we need and rapidly expanding generation capacity, people want to live,” she said. if AI is truly to live up to its billing as the most renewables are putting other forms of In the near future, the power grid and infor- exciting development of our lifetimes – and power generation under increasing pres- mation grid may well merge to become one unlock a new age of empowerment,” McCleary sure,” Lisa Davis, member of Siemens’ and the same. And, according to McCleary, it is concluded. n Managing Board said when the company plausible that while the US and China produce first announced it will cut 6,900 jobs, or 2% technologies first, the first truly considered, of the company’s global workforce and ethically-sound and beneficial implementations 6,100 jobs at Siemens PG. could come from the European power sector. Demand for large gas turbines, generat- “Europe’s culture of innovation is a little ing more than 100-MW, "has fallen drasti- slower than that of the US and China. Not be- cally," and Siemens said it expects demand cause of a lack of talent or infrastructure, but to level out at around 110 turbines a year. because of an emphasis on perfecting a product By contrast, the technical manufacturing before release. It’s a slightly different mindset capacity of all producers worldwide is esti- but no less valuable. Especially in times like mated at around 400 turbines. n COMING IN 2018 - SAVE THE DATE 19 -21 JUNE 2018 MESSE WIEN | VIENNA | AUSTRIA

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Owned and Produced by: Presented by: 26 January 2018 GTP Journal TECHNOLOGY l 7 DVI solution helps Ontario achieve 1.1-GWh energy savings Dominion Voltage Inc. (DVI), a subsidiary of Dominion Energy and leader in Volt/VAR optimization "VVO" solutions, will work with energy companies in Ontario, Canada, to help avoid energy losses in power distribution systems in line with the government's Long-Term Energy Plan. Navigant estimates the inclusion of front of the meter conservation (IFMC) will reduce annual power demand by 185-MW and save up to 1,130 gigawatt hours (GWh), once implemented. ront of the meter conservation is one of savings without requiring several innovations stipulated in the up- any change in customer dated Long-Term Energy Plan, released behavior," Julie Lupinacci, by the Ontario Ministry of Energy in Chief Customer Officer, F Dominion's EDGE Analytics dashboard October. These IFMC technologies, including Hydro Ottawa com- VVO and phase balancing, are key for Ontario mented. DIV, part of Dominion Energy, has devel- to meets its aggressive goal to achieve energy On the technical side, DVI will provide oped Dominion's EDGE analytics technology reduction of seven terawatts by 2020. power producers and distribution companies to leverage advanced metering and distribution Leading utilities in Ontario, notably Hydro across Ontario with solutions to reach the en- automation technologies, bringing visibility to Ottawa, support the recent decision by the On- ergy saving goals. The Volt/VAR optimization grid operators and quick response to customer tario Ministry of Energy to allow in front of the "VVO" solution, is “an important building demands. Its Volt/VAR optimization technol- meter conservation such as CVR to count to- block in any long-term conservation program,” ogy provides solutions for energy efficiency, ward an electric distribution company's energy said Todd Headlee, executive director-DVI demand response, Volt/VAR control, and sys- savings targets. "We have been piloting smart with reference to evidence from enacted con- tem reliability. Hereby DIV plans, implement meter-enabled voltage reduction over the past servation programs at Hydro Ottawa. and validates utilities' grid optimization pro- year and while the final results aren't in, we ex- “The savings potential across all of Ontario grams, delivering significant savings to both pect we will see persistent, measurable energy is tremendous," Mr. Headlee underlined. utilities and their customers. n Contigo to showcase ETRM at E-World

Rapid changes in the energy landscape also drive businesses to adapt and update their existing trading platforms and systems. “We see a huge shift in digital innovation from aggregation of renewable generation, storage and emerging supply businesses that will significantly impact energy trading,“ said Tim Rogers, Contigo's head of sales and business development. Trayport affiliate Contigo, a vendor of Energy Trading and Risk Management (ERTM) software, will demonstrate its products at E-World, Essen in early February.

everal European power generators, placement of its n-house trading system with with a lower risk and faster implementation,” wholesale traders and retail suppliers Contigo’s enTrader product. A full end-to-end managing director, Adrian Bullock told Gas to are already using Contigo’s energy ETRM solution, the enTrader delivers auto- Power Journal. Ssoftware suite. Clients include Ecotric- mated trade capture, position management, risk Having introduced its secure SaaS offering ity, Hofor, Co-opera- management, credit in 2013, Contigo is leading the way with cloud tive Energy, NGF management and reg- hosted ETRM systems. This cloud service in- Nature Energy, MET ulatory reporting. cludes the provision and maintenance of both International, Energy “These clients have infrastructure and software within a single ten- Team, Invenergy, gone live with full anted environment. Bespoke customer adapta- BES Utilities and ETRM systems, with tions are supported, upgrades are scheduled by Centrica. fast and efficient im- customers and administered with minimal dis- Order-wins over plementations. We are ruption to the organisation. recent months came winning large ac- Over 80% of new customers opted for the from clients in clients counts across Europe, cloud based solutions in 2017 and Contigo said in the UK, Switzer- and this demonstrates this results from a wide acceptance of SaaS ad- land, Denmark and Germany, Contigo the success of our strategic direction and vantages, particularly in terms of security and said, pointing out the average time-to- technical capabilities. Businesses are mi- cost of ownership. market for an ETRM system implementations grating from their existing ETRM solution to “By adopting Contigo’s cloud service, cus- is only seven months. Denmark’s largest utility enTrader or moving away from spread-sheets tomers can eliminate CAPEX and in-house HOFOR, also known as Greater Copenhagen to enTrader because it is a more modern and technical experts are freed to be deployed to Utility, in December last year finalized the re- flexible solution that simplifies energy trading more valuable work,” Mr Rogers concluded.n 8 l REGULATION GTP Journal 26 January 2018 PennEast pipeline gets the green light, alleviates winter supply crisis The US Federal Energy Regulatory Commission (FERC) has approved the PennEast pipeline in a 4-1 vote, acknowledging the clear need for more gas transport infrastructure along the East Coast. The $1 billion PennEast interstate pipeline will bring up to 1 billion cubic feet of daily low-cost Marcellus gas to customers in southeast Pennsylvania and New Jersey. nce onstream, the PennEast "Benefits that the Pen- pipeline will deliver domestic US nEast Project will provide gas from the Marcellus Shale to to the market outweigh any Oload centers in New Jersey and adverse effects on existing New York, helping to ease gas shortages in the shippers, other pipelines US Northeast during the peak winter season. and their captive customers, Currently, such gas shortages cause price and on landowners and sur- spikes and require spot LNG or Canadian gas rounding communities," imports. FERC regulators wrote on “By delivering abundant local natural gas Friday, when granting a cer- reserves, PennEast will help the region ensure tificate of public conve- ample natural gas supplies are brought to mar- nience and necessity to the ket, and available for electric power generators PennEast pipeline. to meet existing and future use,” developers The proposed 118-mile said. NJR Pipeline Company, a subsidiary of pipeline of 36 inches in di- New Jersey Resources, is one of the five ameter had been opposed pipeline project partners. Other investors in- by environmentalist while clude SJI Midstream, Spectra Energy Partners the five companies in- and UGI Energy Services. volved in the PennEast joint venture pointed Last September, FERC overruled a New York Growth of natural gas-fired electricity is not out the project would help reduce energy costs decision to deny water permits to the Millen- only spurred by cheap fuel but also by its low- and support thousands of jobs. nial Pipeline, but earlier this month announced cost of construction compared to new coal, nu- “FERC’s approval process for pipelines is a it would not overrule a similar permit denial clear, or renewable technologies. In fact, the stringent one, as it should be,” commented for the Constitution Pipeline, also in New York. US Energy Information Administration (EIA) Stephen Westhoven, Chief Operating Officer at Ultimately FERC, as the federal agency, has forecasts natural gas-fired plants will account New Jersey Resources. He referred to route the final say over US interstate pipelines. for 58 percent of total capacity additions from modifications, stipulating that around 37% of "The Commission encourages cooperation 2013 to 2040. the proposed route has been located with other between interstate pipelines and local authori- rights of way. ties," FERC wrote. "However, this does not Green light after 3-year review mean that state and local agencies, through ap- Approval for the PennEast pipeline comes after a Opposition at state level plication of state or local laws, may prohibit or nearly three-year review process during which However, it remains unclear what action FERC unreasonably delay the construction or operation FERC instructed a series of mitigation measures. would take if the state denies the permit again. of facilities approved by this Commission." n

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United Kingdom GBP 750 Europe and Africa EUR 925 Asia and Americas USD 1150 For further information on subscribing please contact *Multiuser options under request* **new subscribers only [email protected] or + 44 20 7017 3416 26 January 2018 GTP Journal PROJECTS l 9 IFC helps finance EDM, Sasol’s power Mexico: GE strikes project in Mozambique $330m deal to service The International Finance Corporation (IFC), a member of the World Norte-III power plant Bank Group, is providing project finance for Central Térmica de Ressano Garcia (CTRG), a gas-fired power plant near Mozambique’s GE’s Power Services has signed a $330 mil- capital Maputo. The 175-MW facility is owned by the national utility lion deal with a consortium of Macquarie EDM and Sasol of South Africa, which already provided bridge financing Capital and Techint to deliver a multi-year for the plant’s construction. plant services solution for the 907MW Norte he conclusion of the project fi- III combined-cycle gas power plant in the nancing for CTRG marks an im- state of Chihuahua, Mexico. portant milestone not only for The contracts include fully integrated op- “TEDM and Sasol, but for the en- eration and maintenance (O&M) and con- tire electricity sector of Mozambique, who tar- tractual service agreements for 25 years. The gets to attract more private sector capital to Norte-III revamp aligns with Mexico’s min- fund its substantial needs going forward,” said istry of energy’s National Electric System CTRG chairman Adérito Sousa. Development Program (PRODESEN) 2017- Central Térmica de Ressano Garcia (175-MW) “IFC played a central role in getting this com- 2030 plan. plex transaction across the line,” he underlined. tructure gap in Africa. CTRG uses Mozam- “We’re sharing both the benefits and Located near Maputo and close to the South bique’s natural gas resources to generate power risks with Macquarie by guaranteeing the African border, CTRG is one of Mozambique’s for the country’s economic growth and to in- performance of the facility and sharing the first independent power producers (IPPs). Com- crease access to electricity,” said Cheikh impact of any unplanned maintenance,” pleted in early 2015, the plant is operated by Oumar Seydi, IFC Director for Sub-Saharan commented General Electric’s O&M busi- Wärtsila with all electricity being sold to EDM Africa. By supporting projects like CTRG, ness general manager Terrence Schoenborn. under a 20-year Power Purchase Agreement. IFC, Proparco and ABSA Bank seek to encour- Commissioned in 2015, the Norte III Investing in the Ressano Garcia gas power age other private investors to engage in power plant is intended to meet increasing plant, the IFC agreed to provide a $55 million Mozambique’s power sector. electricity demands in the Ciudad Juarez re- on its own account together with a syndicated As the largest global development institu- gion of Chihuahua state. The plant is pow- loan of $42 million from the Emerging Africa tion, IFC is focused on the private sector in ered by four GE 7F.04 gas turbines and two Infrastructure Fund and FMO, while Proparco emerging markets. In the financial year 2017, Toshiba steam turbines. and ABSA Bank (as arranger) provided parallel the bank delivered a record $19.3 billion in GE will use its Fleet360 platform of total loans. The club of lenders disbursed debt facil- long-term financing for developing countries, plant solutions for the plant, which offers an ities amount to a total of $189 million. leveraging the power of the private sector and entire suite of digital solutions and plant im- “IFC is committed to bridging the infras- boost electrification levels. n provement services. “Our total power plant services solution provides greatly improved CB&I breaks ground on Entergy’s 994-MW risk mitigation while offering capacity and efficiency guarantees tailored to meet the Lake Charles Power Station Macquarie-Techint Consortium‘s needs,” Engineering, procurement and construction company CB&I has broken Schoenborn explained. ground for the Lake Charles Power Station, a 994-MW combined-cycle In addition, GE will deploy asset perfor- gas power plant, built for Entergy in Lake Charles, Louisiana. Scheduled mance management (APM) and operations to start full commercial operation in 2020, the Lake Charles Power optimisation (OO) software applications that station is being built by CB&I under a full turnkey EPC contract. will utilise advanced analytics to predict and The future operator, Entergy Louisiana, expects the plant to cost avoid any unplanned downtime, as well as $872 million, including transmission costs. enhance the productivity of the plant. n he combined-cycle power unit will be the plant operator save between $1.3 billion driven by two Mitsubishi Hitachi Power and $2 billion in fuel costs over 30 years. Systems gas turbines and also use air- Tcooled versions of the MHPS G-series. Second of three projects High-efficiency turbines are expected to help The Lake Charles project is the second announced partnership between Entergy and MHPS in a year. “The groundbreaking for this Lake Charles Power Station is a significant milestone as it marks the second of three identically designed electricity to local industries and communities. power projects included in the strategic part- “This power plant will not only provide nership framework between Entergy and needed generating capacity for the fast-growing CB&I,” commented Patrick K. Mullen, CB&I's region,” he said, “but it's another step in our on- President and CEO. going effort to upgrade Entergy Louisiana's gen- Entergy Louisiana CEP, Phillip May, pointed erating fleet to provide power more efficiently, out the 994-MW power station will supply vital affordably and with fewer emissions." n Bird’s eye view of Lake Charles Power Station ASIA POWER WEEK 18-20 SEPTEMBER 2018 ICEICE I BSD CITYY I JAKAJAKARTAARTAA I INDONESIA SPEAK AT ASIA’S PREMIER POWER INDUSTRY EVENT CALL FOR PAPERS DEADLINE: 2 FEBRUARY 2018

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OwnedOOwned anand PrProducedoduced bybby:: Official Publications: 26 January 2018 GTP Journal CLIMATE CHANGE l 11 Does NYC's climate change suit: what's the measure? New York mayor Bill de Blasio on January 10, 2018, announced a lawsuit against ExxonMobil, Shell, Chevron, BP and ConocoPhillips, claiming the companies intentionally misled the public about the effects of climate change in order to protect their profits. Together with comptroller Scott Stringer, de Blasio submitted a resolution instructing the city's five pension funds to explore ways to divest their fossil fuel holdings. Between them, the funds hold $5 billion worth of securities in over 190 fossil fuel-related companies.

he lawsuit seeks damages to cover costs bil, the largest of the majors, reflecting the fact riety of other mitigation measures and shift out incurred by the city to adapt to the ef- that its upstream production portfolio is twice of emissions-intensive resource themes, such fects of climate change, both those al- the size of ExxonMobil's. Moreover, Cono- as oil sands. Tready observed and anticipated future coPhillips' absolute emissions from its upstream Of the five companies targeted, Shell and effects. New York has reportedly appropriated operations rank below those of Total and Eni, ConocoPhillips have already sold out of Cana- $20 billion towards infrastructure upgrades, which are both publicly owned. dian oil sands, and Total announced its inten- education campaigns and public health pro- Wood Mackenzie's data excludes emissions tions to exit the sector when market conditions grammes intended to protect the city against ris- from downstream operations, as well as from allow. ing seas, hazardous weather and extreme heat. combustion of the gas and refined products San Francisco and Oakland filed similar sold. However, as some of the largest, publi- Burden of proof lawsuits against the same five companies in cally-owned downstream and midstream oper- New York City will need to provide compelling September 2017, asking state courts to require ators, one would expect absolute emissions evidence as to why ExxonMobil, Shell, the companies to fund infrastructure the cities from the companies' integrated businesses and Chevron, BP and ConocoPhillips alone should say is necessary because of climate change. product sales to also rank amongst the largest be held accountable for damages, said Dr in the world. Again, ConocoPhillips is an ex- Gavin Law, head of Gas & Power Consulting, Assessing blame ception, having exited the refining business six and Amy Bowe, director, Upstream Consulting The lawsuit targets ExxonMobil, Shell, years ago. at Wood Mackenzie. Chevron, BP and ConocoPhillips, on the basis “Though they do represent some of the oil that they are the top five investor-owned com- Gauging performance and gas industry's largest emitters in absolute panies “measured by their contributions to In terms of gauging companies' emissions per- terms, other companies—both within the oil global warmings”. Mayor de Blasio provided formance, however, absolute emissions are per- and gas industry as well as in other, emissions- no details on how the city is measuring the haps not the best indicator. Instead, emissions intensive industries, such as power generation companies' contributions to global warming. intensity, which measures the amount of emis- and mining—with at least partial public share- "We are going after those who have prof- sions released per barrel of oil and gas pro- holdings have larger or equivalent emissions ited", he said which seems to indicate that the duced, controls for differences in size and footprints,” Dr Law and Ms Bow argue. city is trying to hold the companies account- provides a better benchmark by which to com- “Similarly, the companies rank comparably able for emissions resulting from the combus- pare companies. or better than other publicly owned oil and gas tion of the oil, gas and refined products they On this basis, many of the publicly owned companies on the basis of emissions intensity, produce, as well as their own direct emissions Large Caps have higher or equal emissions in- which is a more standardised metric by which from operations. ExxonMobil, Shell, Chevron tensities to the Majors targeted. Moreover, to measure companies' emissions perfor- and BP are all integrated companies that pro- Wood Mackenzie's projections suggest that the mance,” they added, underlining that most duce and sell refined products, as well as oil emissions intensities of all five companies' up- major oil & gas companies “are all starting to and gas, and ConocoPhillips did have down- stream portfolios will fall over the next seven take steps to reduce the emissions intensities of stream operations until it spun-off its refining years, as they address flaring, implement a va- their upstream portfolios.” n and retail business in 2012. Analysis by Wood Mackenzie of the companies' upstream oil and gas emissions, as part of our recently completed multi-client study, Posi- tioning for the future: benchmark- ing upstream corporate carbon emissions and value at risk, pro- vides a more nuanced perspective. Measured on the basis of absolute emissions, direct and indirect, ExxonMobil, Shell, Chevron and BP do rank as the largest emitters amongst fully publically owned oil and gas companies. However, Gazprom, which is a joint-stock company with just shy of 50% public ownership, is forecast to have emissions 20% higher on aver- age over 2016-2025 than ExxonMo- WWW.POWERGENAFRICA.COM

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