News digest

China: Inner Mongolia Mengdian Huaneng Thermal Power Corp. said a new power joint venture to be set up by its parent, Inner Mongolia Electricity (Group) Co. and three other firms, has completed registration procedures at the local administration of industry and commerce.

China: Zhejiang southeast Electric Power will build an ¥11.02bn ($104m) coal fired power plant as part of efforts to relieve the power shortages in Zhejiang province. The plant will feature four 600 MW units.

China: A section of the west-east pipeline has officially begun supplying natural gas to Shanghai, which has suffered from energy shortages throughout the last year.

China: China’s power generation rose 15.3 per cent year-on-year in 2003, the fastest annual growth since the country launched its market orientated economic reform in the late 1970s.

China: A new hydropower plant will be constructed on the lower reaches of the Yalong River, a major tributary on the upper Yangtze River. The 3.6 GW hydropower plant will start construction in China’s Sichuan province in 2005 and will be finished by 2013 at a cost of $2.77bn.

India: Bharat Heavy Electricals Ltd has bagged a Rs1.97bn ($43.7m) order for a lignite-based power project from Gujarat Electricity Board. The 75 MW power plant will be equipped with fluidized bed combustion technology.

India: The US-promoted Overseas Private Investment Corp. (OPIC) has signed an option agreement with Enron Corp. to buy out its 65.15 per cent equity in the now-fallen Dabhol Power company for Rs1.34bn ($422m).

Myanmar: The installed generating capacity of Myanmar has risen nearly twofold to 1219.81 MW from 706.82 MW in 1988. Over the period the government has built 28 hydropower plants and six natural gas plants to generate electricity.

New Zealand: New Zealand gas and metering company NGC Holdings concluded a deal to buy gas from the onshore Kahili field in Taranaki and said it could be brought to market by mid-2004.

Philippines: A Finnish company has emerged as a challenger to Singapore Power for the privatization of the national power grid system of the National Transmission Corp. The name of the Finnish firm was not disclosed.

Sri Lanka: Sri Lanka is preparing for a drought that could trigger a power crisis and is looking at options to boost short-term energy supplies. Reservoirs are only 32 per cent full because of low rainfall during the monsoon season.

Vista project will reinforce Philippines’ grid

The Philippines government has underlined its intention to reinforce the country’s electricity transmission grid by committing to a four year programme to uprate the Cebu, Negros and Panay islands triple interconnection project. Progress has also been reported on two other interconnection projects: Cebu-Mactan and Leyte-Cebu.

The move is part of an initiative to deter the looming power shortages and will be funded by the National Transmission Corp. (Transco). The P4.4bn ($79.1m), Visayas Transmission Augmentation Programme (Vista), will double power transfer capacity from 100 MW to 200 MW between the islands of Cebu Negros and Panay.

Transco has also signed two contracts for the Cebu-Mactan interconnection project amounting to $40m. The contracts for the $68m Leyte-Cebu uprating and the $40m Cebu-Mactan interconnection projects have also been signed.

The Leyte-Cebu power link will double its capacity, feeding 400 MW to the region while the Cebu-Mactan will increase its 48 MW undersea power transmission link to 200 MW.

India orders CCGT plant

Alstom has won a Rs5000m ($110m) contract from GVK Industries, a construction company, to build a 228 MW combined cycle power plant in eastern India.

The plant, to be situated in Jegurupadu in Andhra Pradesh, is the follow-on project to the Jegurupadu Phase I plant, which was also built by Alstom and which was the first independent power project (IPP) in India to go on-line. This 235 MW combined cycle plant was based on GT8C2 technology.

The new project, Jegurupadu Phase II, will see Alstom supply a single gas turbine with a heat recovery steam generator and steam turbine generator.

Power from the new plant will feed the Andhra Pradesh transmission grid. Construction commenced in January 2004 and the plant is scheduled to enter commercial operation in November 2005.

Alstom will supply a GT13E2 gas turbine in addition to water-steam cycle equipment and electro-mechanical auxiliaries. Alstom will also supply the civil works, erection, commissioning and testing of the power plant.

CPI plans IPO

China Power International Holding (CPI) is poised to launch an initial public offering (IPO) on the Hong Kong stock exchange this summer.

The proceeds expected to be raised from public listing are estimated to be between $500m and $1bn. Banks interested in arranging the launch in an advisory position are Citigroup, Credit Suisse First Boston, Deutsche Bank, Merrill Lynch and UBS.

CPI has net assets of HK$4.8bn ($615m) and a power generation capacity of 5075 MW. Last August, the company acquired six per cent of shares of Macao Electricity Company, which holds the monopoly on power supply in Macao, marking its first investment outside mainland China. Analysts say the parent company, CPI Group, is likely to inject more generating assets to CPI to support its listing.

GE signs deal for Lanzhou Meiya cogen project

GE Energy has signed a contract to provide power generating equipment for the Lanzhou Meiya cogeneration project in Lanzhou, China. The deal is one of six projects that form part of a previously announced $900m agreement under which GE Energy will supply gas turbine combined cycle systems for China’s Gas Turbine Power Plants Construction Project.

In March last year, GE Energy won an international bidding process to supply 13 Frame 9FA combined cycle systems for the six projects. Two of the Frame 9FA systems will supply the Lanzhou Meiya cogeneration project.

GE Energy and its consortium partner, Harbin Power Equipment Ltd. of China, will manufacture the equipment for all six of the projects. One Frame 9FA gas turbine is capable of generating 256 MW of electricity, while a 9FA combined cycle system produces 380 MW.

China orders supercritical boilers

Mitsubishi Heavy Industries (MHI) will supply components for four 1000 MW ultra-supercritical boilers to Harbin Boiler Co., a major Chinese boiler manufacturer.

The complete boilers will be used by Huaneng Power International’s Yuhuan power station in Zhejiang province. The plant will be the first ultra-supercritical plant in the country. China is set to install more supercritical boilers in coming years as it attempts to modernize its power generation industry.

Meanwhile, Alstom has received an order to supply China Electric Power International (CPI) with four supercritical 600 MW steam turbine generators. These will be installed at Pingwei Power Plant in Hubei and two at Huangang power station in Anhui province. CPI is planning to install seven 600 MW steam generators in various projects across China’s eastern and northern regions.