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The market for gas turbines (GTs) in the worldwide oil and gas industry will see significant expansion thanks to rapid growth in demand for floating production, storage, and offloading (FPSO) vessels used in offshore oil and gas exploitation projects, according to Forecast International (FI).
The growth of the oil and gas industry, especially LNG, has resulted in the use of complex mechanical drive turbomachinery for pumping, compressor and refrigeration service. Expansion of the oil and gas segment is forecast to reach a 12% growth rate by the end of the decade. However, that increased mechanical drive capacity will not be reflected by parallel growth in the number of machines procured, since power output per turbine is increasing faster than the aggregate demand for added power.
FI’s Platinum Forecast System projects the sales value of mechanical drive industrial gas turbines delivered between 2016 and 2030 to total $27.8 billion. Approximately 4,220 turbines will be sold during this period, with a per-unit price of $6.5 million. These GTs will be used for pipeline compression and pumping, and in LNG applications, as well as in refineries and in the chemical and petrochemical industries.
“Gas turbines used as compressors or pump drives meet the requirements for reliability, availability, efficiency, and environmental compatibility, providing low life-cycle costs and the best possible return on investment,” said Stuart Slade, FI’s Senior Industrial and Marine gas turbine analyst.
Increasing use of natural gas as fuel for industrial applications is also accelerating demand for mechanical drive GTs, according to Slade. The share of the market held by natural gas will grow to over 19% in 2017 to more than 21% by 2020, and to 23.5% by 2025. GTs are now the drivers of choice for the oil and gas industry, particularly the LNG industry, said Slade.
The annual production of gas turbines for mechanical drive duty will increase steadily through the coming decade, he said. This projection is predicated on the worldwide potential for oil and gas production and transport. The market will be driven by large-scale, high-capacity pipeline and FPSO construction, fostering continued demand for high-powered aeroderivative machines.
Production is expected to reach a high of 295 units in 2025, before leveling off slightly in the following years. In terms of value of production, Solar Turbines will lead the field with a 37.4% share, followed by Siemens (23.2%) and GE Energy (20.7%).
APR Energy has renewed its alliance with GE to provide mobile turbine technology for power rental. APR Energy has exclusivity around the globe as the rental provider of GE mobile gas turbines (GTs) under 50 MW. It will acquire new GE TM2500+ mobile turbines and both companies will collaborate on business leads.
Parker acquires Clarcor
Parker Hannifin is acquiring Clarcor for about $4.3 billion in cash. Headquartered in Franklin, TN, Clarcor, is a manufacturer of mobile, industrial and environmental filtration products with annual sales of approximately $1.4 billion and 6,000 employees worldwide. It adds industrial air and liquid filtration products and technologies to Parker’s filtration portfolio.
The ordinary general shareholders’ meeting of Ansaldo Energia voted to renew the company’s top management team, appointing Giuseppe Zampini as the new Chairman and Filippo Abba’ as a new board director. The subsequent Board Meeting then resolved to appoint Abba’ as new CEO and to assign strategic responsibilities to Zampini. Zampini, who has been CEO for almost sixteen years, will replace Umberto della Sala, who will continue to be a member of the Board of Directors.
EthosEnergy has been awarded a seven-year contract for full operations and maintenance (O&M) services by Rockland Capital in support of Michigan Power for a 1x1 GE 7EA natural gas-fired combined cycle CHP plant in Ludington, Michigan. This includes installation of EthosEnergy’s Ecomax auto combustion tuning technology. The contract is for full care, custody and control operations.
EthosEnergy has been awarded a five-year contract for O&M by Quantum Utility Generation for their Nevada Cogeneration Associates #2 plant in Clark County, Nevada. The contract is for care, custody and control operations, and maintenance including mobilization. EthosEnergy’s operations and management system focuses on maximizing plant performance and availability, mitigating risk, complying with all regulatory requirements, transparent and regular communication, reliability, cyber security and risk management expertise.
University of California, Irvine (UCI) engineers have successfully implemented the first power-to-gas (P2G) hydrogen pipeline injection project in the U.S., demonstrating the use of excess clean electricity that would otherwise go to waste. P2G is a technique for converting surplus energy from solar panels or wind farms into hydrogen, which can be blended with natural gas and used in everything from home appliances to power plants. The renewable fuel can also be stored in containment vessels for later use, such as in hydrogen fuel cell vehicles.
“One of the big challenges we’ve faced in adding wind and solar to the grid is what to do with the excess electricity,” said Jack Brouwer, associate director of UCI’s Advanced Power & Energy Program. “We’ve shown you need not halt renewable power generation when demand is low. Instead, the excess electricity can be used to make hydrogen that can be easily integrated into existing natural gas pipeline infrastructure.”
The pilot project began last summer with funding from the Southern California Gas Co. and the participation of Proton OnSite, provider of an electrolyzer that produces hydrogen from electricity and water. APEP engineers worked with Facilities Management technicians to install the equipment adjacent to the campus power plant. P2G systems are currently in place in Germany and Canada. The central component of the process is the electrolyzer, which takes in water and uses excess electricity to power an electrochemical reaction that splits it into hydrogen and oxygen. The latter is released into the atmosphere, and the hydrogen is compressed and sent about 60 feet through a stainless steel tube to an injection point in UCI’s natural gas pipeline. The hydrogen is mixed with natural gas and burned in the GT power plant to generate electricity and heat for the campus.
LA Turbine digest
Premium Energy and L.A. Turbine received their fifth turboexpander order from Gazprom. The L3000 turboexpander-compressor for a Russian processing plants is a flange-to-flange unit including a PLC-based control system. Premium Energy will provide the skid mounting including the lube oil and seal gas systems, and complete the packaging of the unit. Shipment is scheduled for February 2017.
A Chinese-based engineering and procurement company (EPC) selected L.A. Turbine for the manufacture of an L2000 turboexpander-compressor. The unit will be installed in a gas processing and LPG recovery plant in Pakistan. The turboexpander design is in compliance with API 614, 617 and 670 standards and shipment is scheduled for February 2017.
L.A. Turbine announced four orders for turboexpander-compressor units designed for cryogenic processing from an EPC provider. The orders include two L2000 expander-compressors each engineered for a plant capacity of 60MMSCFD; and two L3000 expander-compressors, both designed for a plant capacity of 200MMSCFD. Units will be shipped throughout 2017.
Capstone Turbine has received a sixteen-unit order for a C800, two C600s, and multiple C65 and C30 microturbines totaling more than 2.6 MW for a repeat oil and gas customer in the Mancos and Gallup shale plays, situated in the San Juan Basin in the Southwest U.S. Horizon Power Systems, Capstone’s distributor for the Eagle Ford, Permian, Barnett, Mancos, San Juan and Wattenberg shale plays, placed the order, which is expected to be commissioned in three phases beginning in December 2016. The dual-mode microturbines will be installed at various locations within the San Juan basin to help boost production using a growing microgrid system. They will drive artificial lifts and assist with the transfer of oil and water.
Capstone received an order from a food retailer for a C1000 Signature Series microturbine with five integrated hot water heat recovery (HRM) modules. RSP Systems, Capstone’s distributor for greater New York area and Connecticut, secured the order, which is scheduled to ship in March and to be commissioned in late 2017. The natural gas-fueled microturbines will be installed in a CHP configuration and operate in parallel with the main electrical distribution system to power the facility. The thermal energy generated will offset the use of gas-fired boilers to make hot water for the onsite cleaning system. Additionally, the microturbine will provide about 700 kW of backup power in the event of a utility outage.
MAN in Iran
MAN Diesel & Turbo will deliver two turbomachinery trains of its ReTPac concept (Refinery Train Package) to a refinery about 450 km south of the Iranian capital of Tehran. The machinery has been ordered by Iranian EPC Nargan Company and will be operated by Esfahan Oil Refining Company (EORC). The ReTPac trains will serve the process of hydrotreating, ensuring an efficient production of ultra-low sulfur fuels. MAN also received several spare part orders from the Iranian Oil Pipelines and Telecommunication Company, where MAN supports the client with service and upgrading of turbomachinery equipment along the Marun-Isfahan oil pipeline. This includes delivery of spare parts 9 gas turbines of the S-Series, a heritage brand of MAN Diesel & Turbo. As part of reentering the Iranian market, the company reopened its local branch, MAN Iran Power, based in Tehran.
Blossoming GT services
The GT services market is projected to reach $18.45 billion by 2021, growing annually by 4.1% from 2016 to 2021, according to research firm Research and Markets. A rise in the number of combined cycle plants, along with upgrades to the existing fleet are two of the main drivers in the power generation segment.
Doosan Škoda steam
A Doosan Škoda Power steam turbine (ST) model DST-S10, generator, heat exchangers, oil system, feed water tank, steam and heating piping, and other related equipment is being supplied for the Amagerværket CHP plant in Copenhagen. Doosan Škoda will also assemble and commission the equipment. The rated output of the single body back-pressure DSTS10 ST is 150 MW, with the maximum power for heating of 617 MWt. The new block will burn biomass.
Doosan Škoda Power will also supply a 183 MW turbine set to expand the Hussein Thermal Power Station, located near Amman, Jordan. That will take the CCPP up to a total output of 485 MW. The EPC contractor is SEPCOIII.
Toshiba has won an order to supply three sets of 44 MW hydroelectric generating equipment for the Nam Ou 4 Hydro Power Plant in Luang Phabang Province, Laos. Equipment delivery will start in March 2018, and the plant is scheduled to start commercial operation in 2020. Laos, rich in water resources, including the Mekong, is known as “the battery of Southeast Asia” for exports of hydro-generated electricity to neighboring China, Thailand and Vietnam. Hydro power plants account for most of Laos’ 3.27GW generation capacity, expected to increase to 11.0GW by 2020.
National Grid has awarded RWG a framework agreement to maintain its fleet of Siemens aero-derivative gas generators. This five-year agreement provides continuity of support for scheduled maintenance and field services for National Grid’s Industrial Avon and Industrial RB211 gas generators.
RWG has secured a separate contract for the overhaul of three Siemens Industrial Avon gas generators. Each engine is subjected to a condition-based work scope, tailored to National Grid’s operational requirements. Engine refurbishment is nearing completion at RWG’s OEM-approved Industrial Avon overhaul facility in Aberdeen, UK. National Grid has a large fleet of Siemens aero-derivative industrial gas generators, including 30 Industrial Avon and 13 Industrial RB211 engines.
Turbine Efficiency Group
Turbine Efficiency Group has received investment from Core Capital, a new majority shareholder. Turbine Efficiency is a specialist engineering company based in Lincoln, England. It is a provider of maintenance, repair and overhaul services for industrial gas turbines.
Marine turbine report
Rolls-Royce will dominate the naval GT market during the 2016-2030 period, according to data contained within Forecast International’s Platinum Forecast System. During this time, manufacturers of marine GTs are forecast to produce 1,020 engines worth $8.5 billion. Rolls-Royce will hold 31.4% of the marine gas turbine market in terms of market value, followed by Zorya- Mashproekt of Ukraine with 29.1% and GE Power with 28.9%. Together, these three companies will account for almost 90% of marine GT sales for the next 15 years. Zorya’s UGT GTs, made by Ukrainian company Zorya-Mashproekt, remain largely confined to the home markets and its licensees in India and China. Thus, the GT propulsion market continues to be largely driven by the GE LM2500 and the Rolls Royce MT30, with the Rolls-Royce MT7 now having a near-monopoly on known demand for smaller turbines. A fully integrated electric drive is becoming the powertrain configuration of choice for future naval vessels.
“Gas turbine-powered electric drive offers significant benefits for warships in terms of reducing ship life-cycle costs and increasing ship stealth, payload, survivability, and the amount of power available for non-propulsion uses,” said Stuart Slade, Senior Analyst for Forecast International. While marine GTs now dominate naval warship construction, they have failed to make a significant impact on the civilian sector, where diesels dominate. One exception is the cruise ship market, where GE Marine Engines’ GE LM2500+ COGES (combined GT and ST integrated electric drive system) plant powers Royal Caribbean International’s Brilliance of the Seas cruise ship. Gas turbines have a significant advantage in this sector, Slade says, since “the LM2500+ COGES ships operate on clean distillate fuel to significantly reduce emissions of most airborne pollutants and other particulates, as compared to a diesel-electric power system operating on distillate fuel oil. This is important inshore, where cruise ships spend much of their time.”
The UK’s Hayward Tyler Group said its Peter Brotherhood subsidiary has delivered a ST generator to an S-Oil refinery in South Korea. The 22.6 MW extraction back-pressure ST was manufactured and tested in accordance with American Petroleum Institute (API) 612 standards. It includes an API 614 lubrication and control oil system, as well as an API 613 gearbox. Competitive recips In recent years, reciprocating engines have begun to compete in larger power plant and CHP projects. A good example is Wärtsilä supplying a 100 MW CHP plant to Kraftwerke Mainz-Wiesbaden in Germany. The Smart Power Generation power plant, consisting of ten Wärtsilä 34SG engines running on natural gas, is scheduled to be fully operational by the end of 2018. Wärtsilä’s scope covers EPC, as well as a 15-year service agreement with performance guarantees. “Unlike traditional CHP power plants based on coal-fired units or GTs, the Wärtsilä gas engines can be started and stopped without limitations within two minutes,” said Lars Eigenmann, CEO at Kraftwerke Mainz-Wiesbaden. “This allows us to operate in the balancing markets, since we can adjust the power output quickly to respond to the fluctuations in power demand as signaled by the electricity price,” As part of the German climate action plan, the country has committed to increasing the share of electricity produced by CHP power plants to 25% of the total electricity production by 2025. To meet this target, the renewed CHP Act favors flexible and environmentally friendly CHP power plants that can operate in the balancing markets, while at the same time generating heat for the community.
Siemens signed an agreement with Sudanese Thermal Power Generating Company (STPGC) to supply five SGT5- 2000E GTs. These machines will deliver a combined capacity of 850 MW for the Sudanese national grid. All five units are scheduled to commence commercial operation at the end of 2017. Siemens’ scope of supply also comprises five associated SGen5-100A generators as well as Siemens’ SPPA-T3000 control systems. Three of the machines are destined for Garri Power Station in Khartoum, while the remaining two units will generate power further east in Port Sudan. All five of these turbine-generator sets will be initially commissioned as simple cycle GT power plant units. STs will be added later to expand the units to combined cycle configurations.
Siemens has received orders from Argentina for a total of seven SGT-800 industrial gas turbines and two Industrial Trent 60 gas turbines. They will provide 500 MW. This includes two SGT-800s to each of the power plants in Rio Cuarto and San Miguel de Tucuman. Three of the turbines will be installed in Ezeiza. The two aeroderivative turbines will generate electricity in the gas-fired power plants in El Salto and Rio Tercero. Siemens will produce all seven SGT-800 turbines in its factory in Finspong, Sweden, and the two Industrial Trent 60 turbines in Mount Vernon, U.S., and Montreal, Canada. Siemens is planning to acquire Mentor Graphics Corp. for $4 billion, its latest play in the race to digitize heavy industry. Mentor, located in Wilsonville, Oregon, sells software and hardware design-automation tools for the development and testing of advanced electronic systems. Siemens wants to use the tools to digitize old-line factories.
Siemens and Panda Power Funds commissioned the Panda Patriot Power Project in Clinton Township, Pennsylvania. This 829 MW natural gas-fueled power plant features Siemens’ Hclass GTs. With the Liberty Power Project in Bradford County dedicated in October, Patriot is the second of two new Panda Power Funds generating stations to be commissioned in Pennsylvania this fall. These two power plants are the first in the nation to employ the Siemens SGT6-8000H single shaft configuration. These two natural gas power projects will use Marcellus Shale gas.
Siemens has shipped its first Industrial Trent 60 gas turgbine package from its manufacturing facility in Mount Vernon, Ohio, to Abu Dhabi Marine Operating Company’s (ADMA-OPCO) Satah Al-Razboot offshore oil field project on Zirku Island. This will be the first of five Trent 60 packages for ADMA-OPCO. The Trent 60 generates up to 66 MW in simple-cycle service at 42% efficiency.
Siemens is filling an order from Macquarie Infrastructure Corporation (MIC) for the installation of aeroderivative GTs at the Bayonne Energy Center (BEC), which delivers power through a dedicated 6.5-mile underwater transmission cable to the Consolidated Edison Gowanus substation in New York City. BEC can produce full power from a standing start in less than ten minutes of receiving a request from the power distributor. These two Industrial Trent 60 Wet Low Emission (WLE) GTs and two generators expands Siemens existing support for the BEC plant. BEC previously purchased Trent 60s.
Dresser-Rand (D-R) will supply three SGT-400 GTs and associated generators to Egypt-based Petrobel for what the companies call the largest natural gas field in the Mediterranean Sea. Petrobel is developing the Zohr gas field, located about 200 km off Egypt’s Mediterranean coastline. The accompanying service package includes spare parts supply and on-site maintenance. The turbine-generator sets are slated for delivery in early 2017. D-R received an order for the supply of five GT-driven compressor trains for two pipelines in Mexico. Mexican project developer, Fermaca Enterprises, placed the order. The trains are expected to be commissioned in the winter 2017 to begin commercial operation in early 2018. The parties also signed a 25-year service agreement for the units. Each compressor train consists of an STC-SV single shaft compressor, driven by a Siemens SGT-400 GT. The equipment will provide compression power for a 1,500-km pipeline that will transport natural gas from the north to the center of the country.
BHEL (Bharat Heavy Electricals Ltd.), India’s largest manufacturer of auxiliary fans for power and industrial applications, has switched to SoftInWay AxSTREAM for the design of axial and centrifugal fans (both single-stage and multi-stage). BHEL deals in industries such as power, railways, renewable energy, oil and gas, and defense.
Dominion Virginia Power broke ground for its Greensville County Power Station, which will use three M501J GTs from Mitsubishi Hitachi Power Systems (MHPS). It also features an ST to provide the largest CCPP in North America (1,588 MW). The GTs were manufactured at MHPS’s Savannah Machinery Works in Georgia and have been delivered to site. The plant will harness digital analytics to optimize plant performance and anticipate potential maintenance needs.
MHPS has received an order for two CCPPs for the 900 MW Turakurgan Thermal Power Plant Construction Project Uzbekistan. The order includes M701F GTs and STs. The equipment will be used at the Turakurgan thermal power plant in eastern Uzbekistan.
A consortium led by MHPS has received orders for integrated coal gasification, combined-cycle (IGCC) plant facilities from Nakoso IGCC Power GK and Hirono IGCC Power GK. Both Japanese plants will have a generating capacity of 540 MW, with operations slated to commence in September 2020 and September 2021, respectively. In an IGCC system, coal is gasified in a high-temperature, high-pressure furnace, and power is generated using a combined- cycle format integrating gas and steam turbines. CO2 emissions are 15% lower than in a conventional coal plant.
MHPS has received an order from China Shenhua Guohua Power Co. to supply GT preventive detection services. The service is scheduled to begin in April 2017 for a CCPP supplying electricity to the Beijing area. The detection services will be provided for the Shenhua Beijing Guohua Gas-fired Thermal Power Plant. The 950 MW plant began commercial operations in 2015 using two M701F GTs delivered by Dongfang Turbine.
GE has secured an order with Centrais Elétricas de Sergipe S.A. (CELSE) for Brazil’s Porto de Sergipe CCPP. With a generating capacity of 1,516 MW, the facility will be the largest gas power plant in Latin America and can deliver an efficiency rate of over 62%, said GE. It will incorporate three of GE’s 7HA gas turbines and a D654 ST, as well as a heat recovery steam generator (HRSG) and other related equipment added to the GE portfolio through the Alstom acquisition. The contract also includes a transmission system provided on a turnkey basis by GE Energy Connections. This system incorporates a high-voltage, step-up substation at the power plant, transmission lines and a bay at an existing substation.
GE Digital has acquired Bit Stew Systems to bring its data intelligence capabilities to Predix and other industrial solutions. Bit Stew applies its machine learning and artificial intelligence (AI) capabilities to automate the process of data modeling, mapping and ingestion. This help GE organize large amounts of data through efficient data organization at the source. GE Digital also acquired Wise.io, another machine learning and intelligent systems company. This will enable GE Digital to accelerate development of machine learning and data science offerings in the Predix platform.
GE Oil & Gas has signed an agreement with Trans Austria Gasleitung, a pipeline operator with stations across Austria, to install its new Tuning Maintenance Software (TUMAS) digital solution across their fleet of 16 PGT25 GTs. TUMAS software improves reliability and availability by increasing the elapsed time between mapping activities so the turbine can run longer at a set level and not require further adjustments.
GE Marine now offers electric start systems for its aeroderivative marine GTs. Along with lower life cycle costs and improved reliability, military and commercial marine customers will enjoy 60% less in acquisition costs with GE’s electric start system compared to a hydraulic start system. GE scaled the electric start system technology to match the requirements for its LM2500 series. The initial application is on the LM500 GTs that power the Republic of Korea’s PKX-B patrol boats. GE’s LM6000PC and LM6000PG GTs also are available with an electric start system. Such a system includes an integrated clutch design included. The electric start system requires only a single cooling interface on the module with the option for either fresh water or mineral oil cooling mediums.
Steam turbine market
The global steam turbine market is expected to reach $15.48 billion by 2025, according to a new report by Grand View Research. STs have been a key part of the global power generation systems from past. However, factors such as limited primary energy sources and increasing awareness regarding environmental pollution has resulted in rising need towards developing efficient STs. The global ST market capacity was 103.16 GW in 2015 and is expected to reach 121.27 GW, growing at a CAGR of 1.6% from 2016 to 2025. Fastest growing segment STs with <120 MW capacity are expected to be the fastest growing segment based on increasing demand for small capacity CHP units. Power & Utilities are expected to emerge as the largest application segment and account for over 70% of total capacity in 2015. The industrial application segment is expected to witness the highest growth of 3.3% in terms of revenue over the forecast period. Asia Pacific was the leading regional market with capacity share exceeding 50% in 2015. Asia Pacific is also expected to witness the fastest growth of 3.2% over the forecast period owing to rapid industrialization and increasing focus on thermal power plants to fulfill increasing electricity demand. Siemens is expected to emerge as the largest player in the industry and is anticipated to hold over 20% of the market share. Other companies operating in the market space include GE, Mitsubishi Heavy Industries Ltd., Toshiba, Ansaldo and Hitachi. Flare gas recovery Dynamic expansion of the oil and gas industry, followed by boosted investments, will continue to fuel the demand for flare gas recovery systems (FGRS) globally. The global FGRS market is predicted to take a leap from $ 1,087.5 million in 2015, according to a report by Persistence Market Research (PMR). The most prominent factor identified to drive consumption of FGRS is surging use by various end-use industries for captive or co-generation of power. This will continue to propel the near-future demand. Increasing environmental concerns about energy use and carbon emissions during natural gas production processes are also likely to impact positively on the global FGRS market condition. Several environmental organizational guidelines regarding the same will continue to support the market. A number of manufacturers will remain major consumers of FGRS for reinjection into production wells, boosting the market growth throughout the forecast period. Increasing implementation of FGRS by oil and natural gas companies for the optimum energy-efficiency, will also support market growth. Based on capacity, the market will witness a shift from small and medium capacity FGRS to large and very large capacity FGRS over the forecast period. By component, the compressors segment will continue to attract the maximum revenue to the FGRS market. Based on region, the market for FGRS is highly concentrated in North America and Europe, especially in the U.S. and Western Europe. Some of the companies operating in the market include Zeeco, Gardner Denver Nash, and John Zink Hamworthy Combustion.
Kobe Steel marine order
Kobe Steel has received an order for two screw compressors for use with marine dual-fuel engines. This is the first time that screw compressors will be used to supply fuel to marine dual fuel engines. The compressors will be installed in an LNG carrier to be owned by a 50/50 joint venture between Mitsui O.S.K. Lines (MOL) and Itochu Corporation for Uniper Global Commodities, who will charter the carrier for 20 years. Plans call for Kobe Steel to deliver the compressors in August 2017 to South Korea’s Daewoo Shipbuilding & Marine Engineering Co., which is constructing the vessel. The market size of nonstandard compressors for marine dual fuel engines is forecast to total over 20 billion yen ($1.77 billion) for the coming five years, according to Kobe Steel.