03–2013 www.gas-for-energy.com ISSN 2192-158X gasforenergy Magazine for Mag Maga Ma agaz a ga gazi ga azin zine zine zin ne ffo o Smart rrtt Gas Technologies Te hnolo Techno Tech Technol ologies, Infrastructure and Utilisation DIV Deutscher Industrieverlag GmbH Gas quality in gas systems reliability matters The natural gas business is demanding. Service organizations need a proven solution to measure gas flow and correct for volume in custody transfer and secondary metering applications. With decades of natural gas measurement and control experience, RMG by Honeywell has developed the ERZ 2000-NG, the approved and best-in-class gas flow measurement solution for all areas of gas volume conversion. Competitively priced and offering a low total cost-of-ownership, it meets a wide range of application requirements throughout the natural gas industry. For further information please go to www.rmg.com/erz2000-ng-en To learn more about products and solutions from RMG by Honeywell, visit www.rmg.com or www.honeywellprocess.com or contact your account manager. © 2013 Honeywell International Inc. All rights reserved gas for energy is published by DIV Deutscher Industrieverlag GmbH, Arnulfstr. 124, 80636 München A CLOSE-UP VIEW OF THE INTERNATIONAL GAS BUSINESS This magazine for smart gas technologies, infrastructure and utilisation features technical reports on the European natural gas industry as well as results of research programmes and innovative technologies. Find out more about markets, enterprises, associations and products of device manufacturers. Each edition is completed by interviews with major company leaders and interesting portraits of key players in the European business. READ MORE ABOUT Gas applications Grid infrastructure Measurement Gas quality issues Pipeline construction Regulation Biogas injection Corrosion protection Smart metering Save 25% on the annual subscription KNOWLEDGE FOR THE FUTURE Deutscher Industrieverlag Arnulfstr. 124 | 80636 München Order now by fax: +49 931 / 4170-494 or sendGmbH in by |mail Yes, I want to read gas for energy on a regular basis. During the first year I will benefit from a 25% discount on the annual subscription fees. I subscribe to the technical trade journal for at least one year (4 issues) as a printed magazine at the annual price of € 144.00 plus shipping (€ 12.00 within Germany / € 14.00 outside of Germany) as an e-paper magazine (single user) at the annual price of € 144.00. as a printed plus an e-paper magazine (single user) at the annual price of € 199.20 (within Germany) / € 201.20 (outside of Germany) incl. shipping. 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In order to accomplish your request and for communication purposes your personal data are being recorded and stored. In order to accomplish your request and for communication purposes your personal data are being recorded and stored. It is approved that this data may also be used in commercial ways by mail, by phone, by fax, by email, none. This approval may be withdrawn at any time. Date, signature PAGFE2014 EDITORIAL EU internal energy market – Challenge or illusion? Implementation of the internal energy market by 2014 – the EU likes to set itself targets. On the one hand, these are a good incentive to make progress. On the other hand, they bear the risk of hasty or incomplete action or of still being pursued even though practice and experience point to revision. Some Member States are lagging behind in the implementation of the Third Package on the internal electricity and gas markets, but large progress has nevertheless been made both in the transposition and the application of the laws. ACER, ENTSOG, the European Commission and the market participants have worked hard on the development of rules and network codes for cross-border gas transport. Not all but many of them will be adopted by 2014. Then they will be put to the test provided that Member States have duly implemented them. Hub trading has greatly increased. The Commission reported on the first quarter of 2013 that in the UK, the Netherlands, Belgium, Germany, France, Austria and Italy 80% of the gas consumed in these countries was delivered via hubs. On the second quarter, the Commission reported an increase in hubtraded volumes in Poland and the beginning of hub activities in Hungary. The retail market has seen a considerable rise in the number of suppliers, thus increasing the choice also for households. In some countries, the choice has become so wide that despite the availability of comparison tools (which are not always reliable) it is difficult to make a decision. So, what’s the problem? Firstly, the implementation of the Third Package in all Member States remains a challenge. The Commission helps and pushes with infringement procedures being the last resort. Additional rules and network codes need to prove practicable and efficient. They may require adaptation. Secondly, there are a number of counterproductive developments that hamper the market. For example, price regulation limits the fluctuation of prices and the natural mechanism of supply and demand. The wish for price stability often ignores the fact that a variable price can finally be a lower price. Subsidies are another counter-mechanism that can distort competition and prevent the market from developing the most cost-efficient solutions. ce regulation and subsidies, in particular for renewable Both price ources, have contributed to gas-fired power stations energy sources, ecome uneconomic having become in many countries. During iods or when peak periods the wind is not blowing or the he sun not shining, they can be switched tched on Beate Raabe Secretary General of Eurogas EDITORIAL flexibly. That is their selling point, but the dilemma in the face of distorted wholesale prices is clear. This is why in some countries the creation of capacity remuneration mechanisms are considered, i.e. the creation of incentives to keep otherwise uneconomic power generation capacity available for times of need. If market distortions cannot be removed or not quickly enough, capacity remuneration mechanisms can be an effective solution, but they should not themselves distort the market. The Commission has expressed strong concern and has recommended giving preference to demand-side response measures (electricity customers agree that certain appliances are switched off at certain times) and better interconnection of the Member States before resorting to capacity remuneration mechanisms. However, the question is whether the first two solutions are always the most cost-efficient solutions and whether all three options should not be considered at the same time. As regards climate protection, there have also been some counter-productive developments in recent years. The emissions trading system should have ensured that low-carbon energy has a cost advantage over high-carbon energy. However, due to the economic crisis and a lack of optimisation between different climate policies there is a surplus of allowances the price of which is currently around EUR 5 per tonne. This price is not a great incentive to invest in energy efficiency or low-carbon technologies. Moreover, large quantities of coal have become available in the United States who has been switching its power generation from coal to home-produced shale gas. These large amounts of coal are sold cheaply on the European market, which has led to the paradoxical situation that both the market share of renewable energy sources and coal have been rising in the EU and that of gas has gone down. Whilst carbon dioxide emissions dropped sharply in the U.S., they are rising again in some EU Member States, for example in Germany. All this highlights the efforts required to ensure that a wellfunctioning, low-carbon EU energy market is not an illusion, and to avoid that part of what has already been achieved is even lost. It is important that Member States recognise the need to adapt current policies and replace national regulation and subsidies with more competition and more Europe. This should be done as soon as possible because investors urgently need a clear and common political signal where EU policy is heading. Beate Raabe Secretary General of Eurogas The Gas Engineer’s Dictionary DIV Deutscher Industrieverlag GmbH, Arnulfstr. 124, 80636 München Supply Infrastructure from A to Z The Gas Engineer’s Dictionary will be a standard work for all aspects of construction, operation and maintenance of gas grids. This dictionary is an entirely new designed reference book for both engineers with professional experience and students of supply engineering. The opus contains the world of supply infrastructure in a series of detailed professional articles dealing with main points like the following: • biogas • corrosion protection • grid layout • metering • storages • compressor stations • dispatching • LNG • pressure regulation • conditioning • gas properties • odorization • safety devices Editors: K. Homann, R. Reimert, B. Klocke 1st edition 2013, 452 pages with additional information and complete ebook, hardcover, ISBN: 978-3-8356-3214-1 Price € 160,– www.di-verlag.de Order now! KNOWLEDGE FORTHE FUTURE Deutscher Industrieverlag Arnulfstr. 124 | 80636 München Order now by fax: +49 201 / 820 02-34 or sendGmbH in a |letter Yes, I place a firm order for the technical book. Please send — copies of the The Gas Engineer’s Dictionary – Supply Infrastructure from A to Z. 1st edition 2013, plus ebook (ISBN: 978-3-8356-3214-1) at the price of € 160,- (plus postage and packing extra) Company/Institution First name, surname of recipient (department or person) Street/P.O. Box, No. Country, Postalcode, Town reply / Antwort Vulkan-Verlag GmbH Versandbuchhandlung Postfach 10 39 62 45039 Essen GERMANY Please note: According to German law this request may be withdrawn within 14 days after order date in writing to Vulkan Verlag GmbH, Versandbuchhandlung, Postfach 10 39 62, 45039 essen, Germany. In order to accomplish your request and for communication purposes your personal data are being recorded and stored. It is approved that this data may also be used in commercial ways by mail, by phone, by fax, by email, none. this approval may be withdrawn at any time. Phone Fax E-Mail Line of business Date, signature PATGED2013 TABLE OF CONTENTS 6 3 – 2013 10 HOT SHOT TRADE & INDUSTRY Inspection of the Nord Stream Pipelines Interior view of a fuel cell 20 TRADE & INDUSTRY Shah Deniz Consortium announces 25-year sales agreements with European gas purchasers Reports GAS QUALITY 26 Natural gas interchangeability in China: some experimental research by Y. Zhan and Ch. Qin GAS QUALITY 36 Admissible hydrogen concentrations in natural gas systems by K. Altfeld and D. Pinchbeck GAS STORAGE 48 Modern technical measurement concepts for the underground storage of natural gas by A. Zajc and M. Friedchen Columns 1 6 70 4 gas for energy Editorial Hot Shot Diary Issue 3/2013 3 – 2013 26 REPORT 48 Natural Gas interchangeability in China REPORT TABLE OF CONTENTS 68 PRODUCTS Technical measurement concepts for the underground storage of natural gas Software package offers versatile product monitoring MICRO CHP 54 Seven things you need to know about Micro-CHP in Europe by S. Dwyer BIOGAS 58 Ensuring operational safety of the natural gas grid by removal of oxygen from biogas via catalytic oxidation of methane by F. Ortloff, F. Graf and Th. Kolb News 8 22 24 Trade & Industry Events Personal visit us at our website: www.gas-for-energy.com 66 68 Associations Products & Services Issue 3/2013 gas for energy 5 HOT SHOT Interior view of a fuel cell Interior view of a fuel cell In a chemical reaction liquid or gaseous energy can be converted into electrical power. Source: DLR TRADE & INDUSTRY Finngulf LNG included in the list of projects that may qualify for EU funding T Bestobell secures major marine contract U K-based Bestobell Valves, part of the President Engineering Group (PEGL), has won a major new contract to supply cryogenic valves to TGE (Marine Gas Engineering) in Germany for two fuel-efficient dual-fuel cruise liners. The valves are destined for Mitsubishi Heavy Industries in Japan where the 984ft long vessels are being built, on behalf of Aida cruise lines of Germany. Aida’s new cruise ships will be able to run on LNG (liquefied natural gas), which offers greater fuel efficiency, as well as marine diesel oil or heavy fuel oil. Bestobell Valves will supply around 40 globe valves, non-return valves and check valves for the contract, which are currently being made at its factory in Sheffield ready to be shipped out to TGE in August this year for incorporation in their fuel system. 8 gas for energy Issue 3/2013 he list of Projects of Common Interest (PCI) adopted by the European Commission does not yet provide a final decision on whether Finland or Estonia will receive investment funding for a Gulf of Finland LNG import terminal. The final decision will be made with the EU-wide application process taking place in 2014, in which all the PCI-candidates are eligible to apply. Finland and Estonia are both seeking EU investment funding for a liquefied natural gas (LNG) import terminal. Both projects are included in the list of eligible projects published by the EU, but funding can only be granted to one of the projects. A condition set for EU financial support is that the terminal must serve multiple EU countries. The Balticconnector gas pipeline planned by Gasum will enable the interconnection of the Finnish and Baltic gas networks, which means the Baltic States would also benefit from the Finnish terminal. The Finngulf LNG terminal project and the Balticconnector gas pipeline comprise one of the largest infrastructure undertakings in Finland. The import terminal would increase diversity and flexibility in natural gas sourcing and enable new uses for natural gas outside the natural gas network. Granted PCI status, the Finnish and Estonian terminal projects can next apply for financial investment support in the Connecting Europe Facility (CEF) process covering all of Europe’s gas and electricity infrastructure projects and beginning in early 2014. Representatives of Gasum and the state of Finland will also continue negotiations to reach a compromise with Estonia. In this the countries could make a mutual decision on which one will proceed to the CEF application already by the end of this year. Gasum is making preparations for its own investment decision following the decision on EU financial support in late 2014. From there terminal construction would progress in phases, and LNG imports could begin in late 2016, which is when the Balticconnector would also be operational. The terminal would operate on full capacity at the end of 2018. TRADE & INDUSTRY WELTEC BIOPOWER develops 1.6 MW of green energy in France T ogether with the partner Domaix Energie in Alsace, the company from Germany has started rolling out four agricultural biogas plant projects in France. Apart from agricultural substrates, the biogas plants, whose construction has already started, will use sludge and food leftovers. This documents the trend that French biogas plants are increasingly fermenting industrial leftovers. Since the introduction of the separation and utilisation of kitchen waste from large catering establishments in France at the end of 2011, organic waste from schools and company cafeterias must be used for the production of energy. Accordingly, WELTEC will integrate hygienisation units in order to utilise the substances of category 3 according to the EU directive. Another common feature 11. - 13 . 2 . 2 0 14 Essen /Germany concerns the use of the heat: In all four biogas plants, the residual heat will be used in a digestate dryer in order to reduce the amount of liquid manure and market the dried digestate. Thanks to the heat utilisation concept, the four biogas plants have an efficiency of at least 70 percent, enabling the operators to benefit from the heat and power bonus, which is up to € 0.04/kWh in France. DEVELOPMENTS AND TR ENDS IN THE ENERGY INDUSTRY – DO YOU KNOW WHERE THE MARKET G OES? European Electricity Ma rket European Electricity Gr id International Gas Marke t Small Scale LNG Power Trading in Europe PROGRAMME AND REGI STRATION UNDER www.e-world-essen.co m/congress Issue 3/2013 gas for energy 9 TRADE & INDUSTRY Record-setting "PIG" run for the integrity inspection of the Nord Stream Pipelines N ord Stream has concluded a comprehensive inspection of the internal condition of both pipelines, as part of its long-term safety and pipeline integrity management strategy. A measurement tool about 7 m long and weighing more than 7 t was sent through the pipeline from Russia to Lubmin, Germany, travelling at 1.5 m a second propelled by the gas pressure. The pipeline inspection gauge (PIG) collected high-resolution data on material integrity along the 1,224 km route. The journey for Russia to Germany took ten days. This was the first time that a pipeline of this length and a wall-thickness of up to 41 mm has been analysed in this way. For the inspection run, a device with one of the strongest magnetic fields was developed by ROSEN Group in Lingen, Germany. The “intelligent PIG” has an array of electronic sensors, which screen the material integrity and the geometry of the pipeline. The PIG has collected over one Terabyte of data on its journey from Russia, and the 10 gas for energy Issue 3/2013 data was recorded at a rate equivalent to 12 Megabits per second, 30 times faster than cellular data networks. The high-resolution measurement technology can detect smallest changes in the condition of the pipelines. The exact geographical position of the pipelines is also being documented. The first evaluation of the results confirms that the pipelines have moved only minimally while being operated under full pressure and that there has been no corrosion or deformation. In 2012 and early summer of 2013, Nord Stream had already examined the external condition of both pipelines. This external visual and instrumental inspection of the pipeline was conducted via remotely operated vehicles (ROVs) followed by support vessels. The results of the internal and external inspections form the baseline data for regular inspection cycles in the coming years. This will allow any potential changes in the position of the pipes, minimal corrosion and even the smallest mechanical defects to be detected at an early stage. gas 19. EUROFORUM-Annual Conference 4 to 6 December 2013, Kempinski Hotel Bristol Berlin – Germany Meet the decision makers of the European gas industry! A selection of the experts panel … The European Gas Market – Facing the current challenges in Europe! 6 December 2013 Ali Arif Aktürk, NaturGaz Rashid Al-Marri, South Hook Gas Klaus-Dieter Barbknecht, VNG – Verbundnetz Gas Peter Drasdo, Fluxys TENP r r r r r r r r r r The structure of the European gas market – characteristics and specificities Roadmap to a Single Gas Market in 2014: further steps New sources – new routes – new partners for Europe The importance of continuing investments in E&P Development of trading markets and the supply & demand situation The particular importance of LNG for the European Gas Market The Future of L-Gas Network: is a new Policy necessary for Gas Trading? One grid from Italy to Belgium – is this the transition to an independent super TSO? The impact of the new market models Emerging Gas Markets: how competition improves Presentations planned from the following countries: Hans-Peter Floren, OMV Bart Jan Hoevers, Gasunie Transport Don´t miss the Pre Conference on The German Gas Market Angela Merkel‘s re-election: Implications for Germany‘s energy reform and the German gas market Ireneusz Łazor, Polish Power Exchange Jayesh Parmar, Baringa Partners (Conference Language: German) www.erdgas-forum.com/programme Infoline: +49 (0) 2 11/96 86–34 36 [Olivia Eberwein] Beate Raabe, Eurogas TRADE & INDUSTRY ista signs cooperation agreement with Spanish energy utility, Gas Natural Fenosa T he energy service provider, ista, and the leading Spanish gas utility, Gas Natural Fenosa, have signed a cooperation agreement for the Spanish market. According to this agreement, ista will install 60,000 heat allocation meters in Gas Natural Fenosa properties and perform the meter-reading, billing and device management. The EU Energy Efficiency Directive (EED), which came into force at the end of 2012, is to be already transposed into national law by June 2014. The directive sets binding targets for the efficient use of energy, especially in the building sector, and prescribes, among other things, that consumers throughout Europe have to be informed individually and regularly about their energy consumption. Roughly 15 % of energy can be saved through the individual metering and billing of consumption data alone. Roughly 200 households in Germany currently receive monthly consumption data, which can be retrieved at any time online or using a smartphone, in Europe’s largest model project conducted in conjunction with Deutsche Energie-Agentur GmbH (dena – German Energy Agency), the German Tenant Organisation (DMB) as well as the Federal Ministry of Transport, Building and Urban Affairs. Initial results in early 2014 should once again prove that providing consumption information during the year can make a vital contribution to greater energy, CO2 and cost efficiency, in particular with regard to the cost/benefit ratio. GDF SUEZ strengthens strategic partnership with Mitsui in Australia G DF SUEZ and Mitsui & Co., Ltd. (“Mitsui”) have agreed to strengthen their existing partnership in Australia. As part of the agreement, Mitsui will acquire a 28 % equity interest in five assets from GDF SUEZ Australian Energy, a wholly owned subsidiary of GDF SUEZ. GDF SUEZ Australian Energy owns and operates 3,540 MW of renewable, gas fired and brown coalfired generating units in Victoria, South Australia and Western Australia. Both companies already have a strong, long-term partnership following a successful track record of joint investment and cooperation for projects in Canada, Europe, the Middle East, Africa, Asia as well as an existing partnership agreement in Australia, where Mitsui has owned 30 % of the Loy Yang B power station and 21 % of Kwinana power station since 2004. This transaction will extend the existing partnership with Mitsui to the entire Australian portfolio. The transaction, which comprises four, principally merchant, assets with a total capacity of 2,463 MW and the Simply Energy retail business, will create a common ownership platform across the Australian generation asset portfolio. This new partnership, which is in line with the Group’s transformation strategy, will contribute to the Group’s 2013-14 portfolio optimisation program and will lead to a reduction in the Group’s net debt upon completion of the transaction, which is expected this month. Prysmian Group signs major contracts with Brazilian Petrobras P rysmian Group has been awarded new major contract worth a total of up to approximately $ 260 Million related to a frame agreement for Umbilical products for offshore oil and gas extraction, by Brazilian oil company Petrobras. The award refers to a frame agreement for 360 km of Umbilicals, most of it to be used in pre-salt fields, in 16 different cross sections and related ancillaries, offshore services and qualifications, worth approximately $ 260 Million with 50 % minimum purchasing commitment and call-off orders to be placed within a two-year period. 12 gas for energy Issue 3/2013 The Group has also been awarded by Petrobras the extension to 2016 of the existing frame agreement for flexible pipes, worth a total of $ 95 Million of which $ 20 Million have already been called off for the Macabu, Jubarte and Marlim Leste fields. Both the Umbilicals and the Flexible Pipes for the new contracts will be manufactured in the Group’s state-ofthe art- plants in Vila Velha, Brazil, an industrial plant with high production capacity and a strategic location (on the Vitoria channel - Espirito Santo State) fully dedicated to Subsea Umbilicals, Risers and Flowlines (SURF). TRADE & INDUSTRY Bilfinger automates power-to-gas pilot plant for E.ON B ilfinger is responsible for automation technology at the Falkenhagen power-to-gas pilot plant, which E.ON will use to feed hydrogen into the natural gas grid for the first time. The automation solution installed by subsidiary Bilfinger GreyLogix ensures that the plant is operational around the clock and monitors the volume of hydrogen being fed into the grid. The pilot converts up to two megawatts of electrical output to hydrogen per hour and subsequently feed it into the natural gas grid. With this project, E.ON hopes to gain further expertise in the storage of regenerative gas in the natural gas infrastructure. With such expertise, it is possible to store over-capacity from fluctuating renewable energy sources and to access it when needed. In order to tap into new technologies and markets, research and development efforts have been intensified. As lead investor, Bilfinger supports the young start-up company Sunfire from Dresden. Sunfire develops concepts for using renewable energy to convert carbon dioxide and water into fuel (power-toliquids) or gas (power-to-gas). 14 – 16 JANUARY 2014 NUREMBERG, GERMANY · World’s largest BIOGAS trade fair · 3 days with plenary sessions, workshops, best-practice · Excursions 17 January 2014 23 rd CONVENTIONwww.biogastagung.org AND TRADE FAIR www.biogastagung.org Main Topics: · Biogas as a part of the energy turn around · Trends in the construction of biogas plants · New challenges in environmental and safety issues · International: The future of export business Main speaker Prof. Dr. Claudia Kemfert, (DIW Berlin) News: www.biogastagung.org/en Issue 3/2013 nn´s Biogasaknad o it gas for energyg a13 BioFit füsr cdie Zukunft