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Cheniere Energy Partners, L.P. and Bechtel announced that on May 27, 2016 they achieved Substantial Completion of Train 1 of the Sabine Pass liquefaction project in Cameron Parish, Louisiana .

 

Commissioning has been completed and Bechtel is turning over care, custody, and control of Train 1 to Cheniere Partners.

 

"Together with our EPC contractor Bechtel, we announce that Train 1 of the SPL Project has achieved Substantial Completion, and we are taking care, custody, and control of Train 1 months ahead of the guaranteed completion date and on budget," said Jack Fusco, CEO of Cheniere Partners. "I would like to thank Cheniere's professionals who have worked tirelessly since 2012 to complete this significant milestone. I would also like to congratulate our EPC partner Bechtel for this achievement and look to achieve many more."

 

"I congratulate the entire team – our customer Cheniere Partners, our global suppliers, and the Bechtel team – on the extraordinary achievement of bringing Train 1 of the SPL Project to life by putting their expertise and experience into finding innovative solutions to the challenges of megaproject engineering and construction," said Jack Futcher, president of Bechtel's Oil, Gas and Chemicals business unit. "Cheniere Partners is at the forefront of North America's LNG industry, and we are looking forward to our continued collaboration in delivering energy to global markets."

 

Under a sale and purchase agreement ("SPA") with BG Gulf Coast LNG, LLC ("BG"), the date of first commercial delivery ("DFCD") for Train 1 is expected to occur in November 2016, upon which the SPA's 20-year term commences. Prior to DFCD, BG has certain rights to early cargoes produced from Train 1 as described in the SPA.

 

Now that Train 1 has achieved substantial completion, financial results from its LNG sales going forward will be reflected in the statement of operations.

 

Cheniere Partners, through its subsidiary, Sabine Pass Liquefaction, LLC ("SPL"), is developing and constructing natural gas liquefaction facilities at the Sabine Pass LNG terminal adjacent to the existing regasification facilities. Cheniere Partners, through SPL, plans to construct over time up to six liquefaction trains, which are in various stages of development and construction. Train 1 is complete and has achieved substantial completion, Train 2 is undergoing commissioning and is expected to begin producing LNG in due course, Trains 3 through 5 are under construction and Train 6 is fully permitted. Each liquefaction train is expected to have a nominal production capacity of approximately 4.5 million tonnes per annum ("mtpa") of LNG. SPL has entered into six third-party LNG sale and purchase agreements ("SPAs") that in the aggregate equate to approximately 19.75 mtpa of LNG and commence with the date of first commercial delivery of Trains 1 through 5 as specified in the respective SPAs. For additional information, please refer to the Cheniere Partners website at www.cheniere.com and Form 10-Q for the period ending March 31, 2016, filed with the Securities and Exchange Commission.

 

ABOUT BECHTEL
Bechtel is one of the most respected global engineering, construction, and project management companies. Together with our customers, we deliver landmark projects that foster long-term progress and economic growth. Since 1898, we’ve completed more than 25,000 extraordinary projects across 160 countries on all seven continents. We operate through four global businesses: Infrastructure; Nuclear, Security & Environmental; Oil, Gas & Chemicals; and Mining & Metals. Our company and our culture are built on more than a century of leadership and a relentless adherence to our values, the core of which are safety, quality, ethics, and integrity.
These values are what we believe, what we expect, what we deliver, and what we live. www.bechtel.com

 

Decommissioning has finished at Maine Yankee nuclear power station. The process took eight years (ending 2005) and cost over $500m. Grass has been planted over the site, although the final use has not yet been decided.


The Maine Yankee power plant developed 920MW, and began commercial service in 1972. It was located in Wiscasset, Maine, US, and was a pressurised water system.


The plant's largest shareholder was the Maine Power Company, which owned 38%. North East Utilities and New England Electric System both owned 20% each. Bangor Hydro-electric owned 7%, and Maine Public Service Company owned 5%.
The remaining 10% was shared between six different New England utilities.


MAINE YANKEE DECOMMISSIONING CONTRACT

 

The plant was taken out of commercial production in 1997. This followed a series of concerns about unplanned stoppages and safety concerns. The decommissioning was handled by a consortium led by Stone & Webster. The contract awarded to the consortium was the first turnkey, fixed-price contract where the contractor took the financial risk for executing the project in a safe and timely manner. Subcontractors to Stone & Webster included:

  1. Babcock & Wilcox for waste management services
  2. Radiological Services, Inc. for radiological controls and health physics
  3. FW Hake Associates for metal and radwaste processing

Included in the contract was an option to repower the site, and a gas-fired plant of equivalent power output has been suggested. If this option is taken then Stone & Webster would pay additional funds to Maine Yankee Power to reduce decommissioning costs. Stone & Webster's contract value was $250m out of the total of $508m.


DECOMMISSIONING AND DECONTAMINATION PROCESS


The $508m total cost consisted of $380m for decommissioning and $128m for waste fuel storage. It was overseen by Hackman Capital Partners, GE Capital Manufacturing Equipment Services and Dove Brothers. To cut costs, these companies invited bids for parts of the plant's equipment. The main disincentives to using parts of the plant were age (reflected in a lower cost) and previous contamination.


Decommissioning involved two steps: the removal and disposal of all radioactive components and materials, and the clean-up of any radioactivity that remained in the buildings or on-site. In decontamination, workers remove radioactive surface material that had accumulated inside pipes and heat exchangers or on floors and walls. Workers used chemical, physical, electrical and ultrasonic processes to decontaminate equipment and surfaces.


The removed radioactive material was concentrated and collected for disposal and shipped to a low-level radioactive waste disposal site. Concentration cut the volume of low-level radioactive waste, thus reducing the expense of disposal.


STORAGE OF SPENT FUEL

 

Low-level waste had to be shipped off-site for permanent disposal. Maine Yankee's low-level waste was shipped to a facility in South Carolina, which was used for the decommissioning.


High level waste is stored in a spent fuel pool made up of specially designed 40in³ pool of water. This was used throughout decommissioning, but a more permanent solution needs to be found. If the US government does not prepare a permanent disposal facility to accept high-level waste, alternatives such as such as dry cask storage will be considered. Dry casks are large, rugged containers made of steel or steel-reinforced concrete, 18 or more inches thick. The casks use materials like steel, concrete and lead – instead of water – as a radiation shield.


PROJECT FINANCE


"The decommissioning has encountered considerable controversy."


The owners won a new concession from the public authorities earlier in 1999. Previously the public purse had contributed $14.9m. Under the new agreement, the contribution went up to $33.6m each year. The Maine Power company also pursued a case against the federal government, in an attempt to get the Department of Energy to pay for the fuel storage costs.


The decommissioning has encountered considerable controversy. Aside from the question of who should bear the cost, some critics alleged that the plant was being closed prematurely. It was due to be closed in 2008, but the rising running costs have persuaded the owners to end its life. The cost of upgrading and then decommissioning the plant had an effect on the owners' bottom line and, by extension, share price.

The 1,224MWe Angra-3 PWR nuclear reactor project is on again. The Brazilian Government has announced plans to complete the reactor, which will work alongside the other two at Angra, which is between Rio de Janeiro and Sao Paulo. The project is estimated to cost $5.6bn and is scheduled for completion in 2015. An total of $327m was already spent during the early phase of development of Angra 3.


Angra-3 was designed to be a twin of the four-loop Angra-2, but was halted in the mid 1980s after shortages of finance. Construction officially restarted in June 2010 after the approval of a return-to-construction by Brazil's National Energy Policy Council in June 2007. Presidential approval for the same was received a month later, in July.


Eletrobras (70% owned by the Brazilian Government and the main shareholder in the Brazilian nuclear utility Eletronuclear) has been looking for the necessary $1.8bn from a private partner to complete the project, but there has also been some interest from the Russian Government. In December 2010, the project received a financial boost when the Brazilian national development bank BNDES approved a $3.6bn loan, covering approximately 59% of the total cost. The loan is for 20 years with a grace period of five years.


Angra-1 and Angra-2 are now producing 630 and 1,270MWe (net). Angra-1 had to be shut down early in its life after problems with its steam supply system.


The World Nuclear Association reports it had a load factor of only 25% over the first 15 years of operation, but has greatly improved since then. The Brazilian Government has announced plans to build another four 1,000MWe reactors from 2015, with a total of up to 8GWe by 2030.


Government announces go-ahead for Angra-3

 

Brazil's electricity consumption has been growing strongly over the last 15 years. Hydroelectric provides over 80% of the total (although droughts have caused power shortages) with nuclear at less than 5%. Around 40% of the total is produced by Eletrobras.


"Angra 3 has cost $750m already and is estimated to cost another $1,835m to complete."


The turnkey Angra-1 was built by Westinghouse, starting in 1971 and coming on stream in 1982. In 1976 the Brazilian Government signed an agreement with West Germany for eight 1,300MWe nuclear units, to be built by 1990. Siemens-KWU built the first two plants, with a technology transfer agreement aiming to build the rest with 90% Brazilian content.
The projects were however suspended. Eletrobras took over responsibility for building Angra-2 and Angra-3, and in 1995 started construction at Angra-2 again. Eletrobra and German banks provided $1.3bn of new investment, and Angra-2 was completed in 2000.


Angra-3 is a PWR, so a second-generation reactor using high-pressure superheated water as coolant and neutron moderator. PWRs are the world's most-used type of reactor. The chain reaction in the nuclear fuel heats water in the primary to over 300ºC, with the hot water pumped into a steam generator (heat exchanger) to boil water in the secondary coolant loop. This drives a steam turbine. The primary and secondary coolant loops keep radioactive water in the first loop separate from that used to drive the steam generator.


"The Brazilian Government has announced plans to build another four 1,000MWe reactors from 2015."


Serviced by Framatome

 

Framatome ANP performed service work at Angra 2 in March 2002, during the first of the annual refueling outages. Work was done on the reactor floor, fuel assemblies, valves, pumps and pump motors. Framatome also inspected the emergency diesel generating units, electrical and I&C systems, HVAC systems, and reactor coolant pumps.


The inspection work by over 1,000 engineers was done in less than 30 days with Eletrobràs Termonuclear (Eletronuclear) and German and Brazilian subcontractors.


Over 5% of world’s total uranium deposits

 

Brazil has over 5% of the total world uranium deposits, with about 230,000t although only one mine is now working, INB's Lagoa Real Unit. The uranium is converted and enriched abroad and then used in Brazil but some of Angra's fuel is now produced by Brazilian centrifuges.


In 2006, Brazil opened a new centrifuge facility at the Resende nuclear plant, claimed to be 25 times more efficient than French and US facilities. The government said it hoped to meet all its nuclear energy needs within a decade. The centrifuges were subject of some discussions with the International Atomic Energy Agency, with safeguards to ensure there will be no links to weapons production.

Competitive Power Ventures (CPV), ArcLight and Toyota Tsusho are currently developing the 700MW Woodbridge Energy Center (WEC) in Woodbridge Township, New Jersey, US. The natural gas-fired power plant, estimated to cost $845m, will be operated by an affiliate of ArcLight, while CPV will manage the construction.

 

A ceremony for the power plant was held in October 2013 and commercial operations are expected to begin in the first quarter of 2016. The plant is expected to supply power to the north-eastern US for more than 30 years.

 

Approximately 700,000 New Jersey homes will be powered by the project, which will also create 500 construction and 25 full-time operational jobs.

 

Development details of the Woodbridge Energy Center

The Woodbridge Energy Center is being developed on a former EPEC Polymers site, an abandoned chemical plant at Riverside Drive, Woodbridge. The project was initiated as part of the restoration and redevelopment of the Keasbey redevelopment zone and Brownfields development area (BDA).

 

"Approximately 700,000 New Jersey homes will be powered by the project, which will also create 500 construction and 25 full-time operational jobs."

The project site extends over approximately 30 acres and will consist of 130ft-tall structures, along with approximately 250ft-tall emission structures. The facility will use natural gas as the primary fuel source and ultra-low sulphur diesel as a back-up. Natural gas will be provided via a new pipeline to be constructed by the Transcontinental Gas Pipe Line Company (TRANSCO).

 

It will feature two fast-start 216MW General Electric (GE) 7F-class gas turbine generators, a D-series steam turbine generator, H26 generator, an advanced heat-recovery steam generator (HRSG) equipped with duct burners, and other auxiliary equipment. All the components will be controlled by GE's Mark Vle integrated control system (ICS).

 

The supporting auxiliary equipment includes a natural gas-fired auxiliary boiler, one gas-fired fuel heater, ultra-low sulphur distillate (ULSD) fuel-fired emergency generator, and a ULSD-fired emergency fire-water pump.

 

A DLN combustion system with SCR will be installed on each of the two combustion turbines to control NOx emissions.

 

Grey water for cooling will be sourced from Middlesex County Utilities Authority's (MCUA) wastewater reuse pump station. The plant will receive seven million gallons of cooling water from MCUA, of which two million gallons will be sent back to MCUA for processing through the wastewater treatment facility.

 

Turbine technology

The 7F-5 gas turbine generator will have an efficiency of more than 59% in combined cycle operations and above 38.7% in simple cycle operation. It is equipped with a three-stage hot gas path with advanced cooling and sealing for improved efficiency. Advanced 3D aerodynamic 14-stage compressors with super-finish airfoils have been installed in the turbine to improve fuel efficiency.

"The electric output of the facility will be sold through a 15-year standard offer capacity agreement (SOCA) with New Jersey utilities."

The Dry Low NOx (DLN) 2.6 combustion system installed in the turbine will enable the system turndown to reach 36% of a gas turbine base load, while accommodating fuel composition variance and maintaining emission guarantees.

 

Financing of CPV's natural gas-fired power plant

GE Energy Financial Services and nine other banks provided a $561m senior-secured credit facility for the power project. GE Energy Financial Services, through its subsidiary GE Capital Markets, acted as the primary lead arranger and book-runner.

 

Transmission and sale of power

The power generated at WEC is expected to be transmitted to the national grid either through the Public Service Enterprise Group Metuchen substation, or through Jersey Central Power and Light's Raritan River substation.

 

The electric output of the facility will be sold through a 15-year standard offer capacity agreement (SOCA) with New Jersey utilities, and the energy through a hedge.

 

Contractors and agencies involved with the WEC development

GE's Power & Water was awarded a contract worth $260m for a FlexEfficiency 60 combined-cycle engineered equipment package, along with engineering services. Under the contract, GE will supply two 7F 5-series gas turbine generators, one D-11A steam turbine generator and two duct-fired, triple-pressure heat recovery steam generators. The agreement also includes a 16-year contractual services agreement.

Panda Power Funds is developing an 829MW combined-cycle power plant called Liberty Power Project, located in Bradford County, Pennsylvania, US. Upon completion, the natural gas-fired plant is set to be the first power plant located within the Marcellus Shale gas formation region.

 

The US Department of Environmental Protection approved the project in October 2012. Ground-breaking was held in May and the plant is expected to commence operations in early 2016.

 

The project is expected create over 500 jobs, as well as produce enough clean energy to power one million Pennsylvanian homes, while offsetting 330 million tonnes of CO2 from the atmosphere.

 

Liberty power project details

Moxie Liberty, a fully-owned subsidiary of Moxie Energy, proposed the development concept of the natural gas power plant in Pennsylvania. Panda Funds acquired and closed financing for the project in August 2013. The project is expected to bring $5.97bn investments into the area's economy during construction and the first ten years of operation.

 

The site is located in Asylum Township of Bradford County, approximately 45 miles north-west of Scranton, and measures roughly 33 acres (13.3ha).



Florida Power and Light Company is developing the new 1,250MW energy centre to replace the existing Port Everglades power plant.


The plant will comprise of two identical "single-shaft" power blocks, each including a combustion gas turbine and a steam turbine, which drives the electric generator. Waste heat from the combustion turbine exhaust will be directed through a heat recovery steam generator for producing steam required for running the steam turbine.

Exhaust emissions from the turbines will be lowered to permit levels using selective catalytic reduction (for NOx control) and oxidation catalyst (for CO reduction) processes built inside the heat recovery steam generators.

The steam in the turbine will be exhausted to an air-cooled condenser. Large cooling fans will condense the steam into water, which will be reused in the heat recovery steam generator.

 

Siemens turbine technology at Liberty power plant

The Liberty project will comprise Siemens SGT6-8000H gas turbine package, consisting of a turbine and a generator. It will be the first project in the US to install Siemens SGT6-8000H class gas turbines.

"The project is expected to produce enough clean energy to power one million Pennsylvanian homes."

The turbine will have a gross power output of 274MW and an operational efficiency of more than 60% in combined cycle operations. It will have a faster cycling capability with the help of its fast-acting variable guide vanes.

The active turbine clearance control system will comprise of a hydraulic clearance optimisation system, which will help to reduce engine performance losses.

 

Financing for Panda's Liberty power plant

Equity financing for the Liberty project was provided by Panda Power Funds and institutional co-investors. Goldman Sachs, Credit Suisse and Ares Capital provided debt financing for the power plant while Union Bank acted as the documentation agent.

 

Siemens Financial Services provided $50m term-loan financing for the plant construction.

 

Contractors involved

 

The engineering, procurement and construction contract for the CCGT power plant was awarded to the joint venture of Gemma Power Systems and The Lane Construction. The contractual scope also includes the engineering and procurement for the balance of the plant.

 

Siemens Energy was awarded a contract worth $400m for the supply of power plant blocks for the Liberty project. The equipment will comprise one SGT6-8000H gas turbine, one SST6-5000 steam turbine, one hydrogen cooled SGen6-2000H generator and one heat recovery steam generator, along with the overall electrical system and the SPPA-T3000 I&C system. The contractual scope also includes long-term maintenance and service for the power plant units.

 

The contract for conducting engineering and detailed design services for the Liberty project was awarded to Burns and Roe, a company based in New Jersey.

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