Wartsila wins Egyptian power plant contract

Wartsila wins Egyptian power plant contract
Stock image of power plant. Shutterstock
Short Url
Updated 05 May 2022

Wartsila wins Egyptian power plant contract

Wartsila wins Egyptian power plant contract

 

Finnish company Wartsila has won a contract to deliver power generation equipment to upgrade an existing power plant in Egypt, according to a Meed report. 

According to the report, the National Electricity Technology Company in Egypt, also known as Kahraba, is planning to upgrade the  Borg el-Arab power plant by 20W with this new contract. 

The plant is currently working with four Wartsila 34SG engines running on natural gas.  

Wartsila will also upgrade the existing 40MW power plant with the latest generation control system, the report added. 

“Industrial growth is vital to the region’s economic development, and a reliable power supply is essential for driving this growth,” said Magdi el-Badry, Kahraba chairman and managing director. 

 


Oil rises as IEA hikes 2022 demand growth forecast

Oil rises as IEA hikes 2022 demand growth forecast
Updated 15 sec ago

Oil rises as IEA hikes 2022 demand growth forecast

Oil rises as IEA hikes 2022 demand growth forecast

LONDON: Oil prices rose by over 1 percent on Thursday after the International Energy Agency raised its oil demand growth forecast for this year as soaring natural gas prices lead some consumers to switch to oil.

Brent crude futures gained $1.29, or 1.3 percent, to $98.69 a barrel by 1348 GMT, while US West Texas Intermediate crude futures rose $1.45, or 1.6 percent, to $93.38.

“Natural gas and electricity prices have soared to new records, incentivizing gas-to-oil switching in some countries,” the Paris-based agency said in its monthly oil report, in which it raised its outlook for 2022 demand by 380,000 barrels per day.

By contrast, the Organization of the Petroleum Exporting Countries on Thursday cut its 2022 forecast for growth in world oil demand, citing the economic impact of Russia’s invasion of Ukraine, high inflation and efforts to contain the pandemic.

OPEC expects 2022 oil demand to rise by 3.1 million bpd, down 260,000 bpd from the previous forecast. However, it still sees a higher overall global oil demand figure than the IEA for 2022.

A rise in US oil inventories last week and the resumption of crude flows on a pipeline supplying central Europe capped further price gains.

US crude oil stocks rose by 5.5 million barrels in the most recent week, the US Energy Information Administration said, more than the expected increase of 73,000 barrels.

Gasoline product supplied rose in the most recent week to 9.1 million barrels per day, though that figure shows demand down 6 percent over the last four weeks compared with the year-ago period.

The premium for front-month WTI futures over barrels loading in six months’ time was pegged at $4.38 a barrel on Thursday, the lowest in four months, indicating easing tightness in prompt supplies.

The resumption of flows on the southern leg of the Russia-to-Europe Druzhba pipeline further calmed market worries over global supply.


Egypt to ration electricity to boost gas exports

Egypt to ration electricity to boost gas exports
Updated 9 min 46 sec ago

Egypt to ration electricity to boost gas exports

Egypt to ration electricity to boost gas exports

CAIRO: Egypt’s Cabinet has approved a plan to ration electricity to save natural gas that it will instead divert to the export market to generate foreign currency, it said on Thursday.

Egypt has suffered from an acute foreign currency shortage since Russia's February invasion of Ukraine, which pushed up global commodity prices, led to the collapse of tourism from the two countries and drove up the cost of borrowing.

Under the draft plan, shops and malls will have to limit their use of strong lights and keep their air conditioning at no cooler than 25 degrees Celsius.

Ministries and government facilities will have to turn off lighting at the end of working hours, the statement added. Street lighting will also be reduced.

The government last month postponed a planned increase in electricity prices by six months. The higher prices would have been intensely unpopular among a population that over the last few years has endured a series of harsh austerity measures.

On Tuesday, Prime Minister Mostafa Madbouly said the government hoped to reduce the amount of gas used to generate electricity by 15 percent. He said domestic power plants bought their natural gas at one-tenth the price that it could fetch on international markets.

Europe has been seeking alternative sources of gas to cut its reliance on Russian gas as the war in Ukraine escalates.

Rapid growth in Egypt’s natural gas supplies, boosted by the discovery of the Mediterranean’s largest field, turned it from a net importer to an exporter in late 2018.

Egypt exported 9.45 million cubic meters of liquid natural gas in the first seven months of 2022, up 44 percent from a year earlier, according to Refinitiv data. 


Ethiopia starts power generation from second turbine at mega-dam

Ethiopia starts power generation from second turbine at mega-dam
Updated 40 min 30 sec ago

Ethiopia starts power generation from second turbine at mega-dam

Ethiopia starts power generation from second turbine at mega-dam

RIYADH: Ethiopian Prime Minister Abiy Ahmed kickstarted electricity production from the second turbine at its controversial mega-dam on the Blue Nile on Thursday, despite continuing objections by Egypt and Sudan over the project, according to AFP.

Abiy also confirmed that a third filling of the multi-billion dollar Grand Ethiopian Renaissance Dam was under way, a development that led Egypt last month to protest to the UN Security Council.

Thursday’s move came even though there is still no agreement between Ethiopia and its downstream neighbors Egypt and Sudan about the GERD’s operations.

Abiy insisted that the third filling of the $4.2 billion dam — set to be the largest hydroelectric scheme in Africa — was not causing any water shortages for the two countries.

“We have repeatedly told downstream countries, especially Egypt and Sudan, that by generating power we’re developing our economy, as well as (our desire) to see our citizens who live in the dark see light,” he said.

There was “no aim to sideline and harm” those countries, he added.

Ethiopia first began generating electricity at the dam in February. Currently, the two turbines, out of a total of 13 at the dam, are generating 750 megawatts of electricity.

We are ready to face all scenarios after Ethiopia completes the third filling phase of the Renaissance Dam, and we expect an unprecedented rise in the Nile waters after the gates of the dam are opened, the Sudanese Minister of Irrigation Yasser Abbas told Asharq.  

 


Macro Snapshot — Romania inflation exceeds expectations; Singapore downgrades GDP in Q2

Macro Snapshot — Romania inflation exceeds expectations; Singapore downgrades GDP in Q2
Updated 53 min 57 sec ago

Macro Snapshot — Romania inflation exceeds expectations; Singapore downgrades GDP in Q2

Macro Snapshot — Romania inflation exceeds expectations; Singapore downgrades GDP in Q2

CAIRO: Romania's headline inflation exceeded expectations in July yet smaller rate hikes are still expected, while China’s July vehicle sales surged by 30 percent from a year earlier. Singapore downgraded its gross domestic product in the second quarter of this year as risks grew further, whereas the Federal Reserve officials stated the need for additional rate hikes despite the slowing inflation rates. 

Romania inflation overshoots expectations in July

Romania’s headline inflation rate rose above expectations in July but is showing signs of flattening out and analysts expect the central bank to continue to slow the pace of monetary tightening.

The year-on-year inflation rate in Romania hit 14.96 percent in July, just off a 19-year high and above a forecast of 14.4 percent in a Reuters poll.

It came down from 15.05 percent in June but analysts say there is still a chance it could creep slightly higher in the next two months.

Singapore downgrades gross domestic product in Q2

Singapore’s economy expanded less than initially estimated in the second quarter and the government revised its growth projections for 2022 lower, flagging risks to the global outlook from the Ukraine war and inflation.

The gross domestic product grew 4.4 percent year-on-year in the second quarter, the Ministry of Trade and Industry said, slower than the 4.8 percent growth seen in the government’s advance estimate.

“Downside risks in the global economy remain significant...further escalations in the Russia-Ukraine conflict could worsen global supply disruptions and exacerbate inflationary pressures through higher food and energy prices,” said Gabriel Lim, permanent secretary of MTI at a media briefing.

Fed officials say more rate hikes needed, despite slowing inflation

Slowing US inflation may have opened the door for the Federal Reserve to temper the pace of coming interest rate hikes, but policymakers left no doubt they will continue to tighten monetary policy until price pressures are fully broken.

A US Labor Department report Wednesday showing consumer prices didn’t rise at all in July compared with June was just one step in what policymakers said would be a long process, with a red-hot job market and suddenly buoyant equity prices suggesting the economy needs more of the cooling that would come from higher borrowing costs.

The Fed is “far, far away from declaring victory” on inflation, Minneapolis Federal Reserve Bank President Neel Kashkari said at the Aspen Ideas Conference, despite the “welcome” news in the CPI report.


NRG Matters — ACWA Power mulls Kazakhstan wind farm; Germany’s RWE to spend over $5.2bn on green tech

NRG Matters — ACWA Power mulls Kazakhstan wind farm; Germany’s RWE to spend over $5.2bn on green tech
Updated 56 min 3 sec ago

NRG Matters — ACWA Power mulls Kazakhstan wind farm; Germany’s RWE to spend over $5.2bn on green tech

NRG Matters — ACWA Power mulls Kazakhstan wind farm; Germany’s RWE to spend over $5.2bn on green tech

RIYADH: Saudi Arabia’s ACWA Power is planning to build a wind farm in Kazakhstan, according to the firm’s chief investment officer.

Clive Turton highlighted the country’s vast green power opportunities, during the meeting with the Kazakh Invest top management, Astana Times reported.

Renewables 

Indian power producer JSW will buy Mytrah Energy’s renewable portfolio in a 105.3 billion rupees ($1.3 billion) deal, according to Bloomberg. 

The Mumbai-based firm will acquire around 1.8 gigawatts of renewable power assets, including 1.3 gigawatts of wind and 422 megawatts of solar. 

Also, Germany’s power producer RWE plans to spend over €5 billion ($5.2 billion) on green technologies including wind, solar and batteries this fiscal year, 30 percent more than it originally planned, as well as ramping up hydrogen.

This comes in an effort to make Europe more energy independent as a worsening crisis threatens the bloc’s economy, Bloomberg reported. 

Vehicles 

Ford Motor Co. said every vehicle it manufactures in Michigan would be assembled using solar and other renewable energy sources by 2025, as the automaker aims to lower its emissions, Reuters reported.