The second installment of this new column provides a snapshot of the new projects and key project developments taking place in the global gas power sector in Q2 (April–June) 2012.
The Energy Industries Council’s (EIC’s) project database, EICDataStream, which tracks more than 9,400 of the most significant projects across the global energy industry, currently records a total of 440 gas power projects under construction and a further 247 projects proposed for future development with a combined total potential investment value of $515 billion. It should always be noted that a portion of proposed projects will not gain planning approval and the requisite finance.
Q2 2012 saw plenty of activity and continued the momentum of Q1 with 30 projects added to the database with a potential investment value of $17 billion. In comparison, Q1 saw 32 projects worth $22 billion. Hot spots of activity this quarter were found in China, the U.S., and the Philippines, with projects in these countries representing approximately a third of the potential investment value.
Major projects in Q2 2012 included the Luzon gas-fired power plant in the Philippines, a proposed $1.6 billion, 1,500-MWe project to be built in the southern part of Luzon island. The power complex will comprise four generation units of 375 MWe each. Two units are scheduled to be completed in late 2016 and the rest at least two years later. The developer, Manila Electric Co., is expected to partner with a Japanese company to build the plant.
Another major project is the proposed $1.3 billion Leipheim combined cycle gas turbine power plant in Germany. This 1,200-MWe plant is progressing through the planning process for the site, with the planning institution for the rural district of Guenzbuerg agreeing to draw up a local statutory land use part-plan for the project. Commissioning of the plant is targeted for 2017/2018.
In Australia, the proposed Tarrone gas-fired power station also made progress through the planning process, with the state government approving an amendment to the proposed site. Developer AGL Energy Ltd. can now continue its community consultation process and seek additional approvals and licences required to advance the development of the $1 billion, 920-MWe gas turbine peaking power station. The plant is proposed to be constructed in two stages. The site in Tarrone, Victoria, is well located to leverage existing infrastructure, with an electricity transmission connection point on the site, gas that will be supplied via a new gas lateral (pipeline) approximately 8 kilometers in length that will be connected to the existing SEA Gas pipeline. It is also the same parcel of land where the Tarrone terminal station is currently being constructed to connect AGL’s Macarthur Wind Farm into the 500 kV electricity transmission network.
In Lagos State, Nigeria, a technical partnership deal between Scanpower, the operator, and Siemens has been signed for construction of the $2 billion, 1,600-MWe Lekki gas-fired power plant. This agreement forms part of a wider strategic partnership with the Nigerian Federal Ministry of Power to support the financing of power plant projects on a case-by-case basis. Nigeria represents a growth market for Siemens Energy in terms of gas turbine sales.
Since the start of the year, 70 gas power projects have been added to the database, potentially worth $47 billion, illustrating that the market continues to show healthy growth in new project developments. The next quarterly report will be published in October.