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Kohler Natural Gas Gen-Set Specs

500 REZK

500 kW/525 kVA
750 kW/937 kVA
1000 kW/1250 kVA

Prime Power
435 kW/543 kVA
630 kW/787 kVA
880 kW/1100 kVA

415 kW/518 kVA
620 kW/775 kVA
830 kW/1037 kVA
1000 kW/1250 kVA
1300 kW/1625 kVA

1800 rpm
1800 rpm
1800 rpm
1800 rpm
1800 rpm
1800 rpm
1800 rpm
1800 rpm

EPA Certified
EPA Certified
EPA Certified
EPA Certified
EPA Certified
EPA Certified
EPA Certified
EPA Compliant
Source: Kohler Power Systems

logging and trending can be used to

simplify troubleshooting and a USB flash
drive can be used for data storage and
event history exports. Additional digital
inputs and outputs are available, Kohler
said, and the software allows for paralleling of as many as 32 gen-sets.
With our new large gas line, were offering an ideal combination of customization, durability, ease of use and more,
Landes said. Our applications team and
service and support network also help

ensure seamless integration and reliable, long-term performance.

Other standard features include a floattype battery charger, closed-crankcase
ventilation system, local emergency
stop switch, engine block heater, stainless-steel flexible exhaust connector,
secondary gas solenoid valve, air cleaner
restriction indicator and common fault
and run relays. Options include critical
grade exhaust silencer, gas fuel filter, remote cooling system, low coolant level

Diesel & Gas Turbine Worldwide

XX March 2016

shutdown, alternator strip heaters, battery racks and cables, battery heaters
and line circuit breakers.
The company said it could design and
customize gen-set systems to meet specific application needs meeting CSA, UL
2200 and NFPA 110 Level 1 standards.
Large sheet metal fabrications for the
new gen-sets are done at its Saukville, Wisconsin, USA, facility, with final assembly
taking place at its generator set manufacturing plant in Mosel, Wisconsin, USA. A

GE Keppels Key Role Continues

Singapore facility underpins GEs Asian links

by Ian

Located in Singapores
Jurong industrial area, GE
Keppel provides precision
machining and a wide
range of repair and overhaul
services for gas and steam
turbines, industrial motors
and generators.

ne of the longest established repair and overhaul centers in Asia is the

GE Keppel Energy Services facility in Singapore. Established in the early
1970s, the company is a 50/50 joint venture between GE and Singaporebased Keppel Corp., which has core businesses in offshore and marine,
infrastructure and property.
Located in the Jurong industrial area, GE Keppel provides precision machining and a
wide range of repair and overhaul services for gas and steam turbines, industrial motors and generators.
The shop was built in 1974, employs approximately 240 people, carries out overhauls of
gearboxes, pumps, compressors and governors, and offers balancing and field services.
Although much of the 14 864 m2 facilitys workload is based around original GEmanufactured equipment, it also can work on non-GE components. When it was first
established, GE Keppels main source of work was centered on repairing marine components, which served clients throughout Asia. Today, only a very small percentage of
GE Keppels workload is marine-related.
A large proportion of GE Keppels work is repairing gas turbine buckets and rotors.
For the former, the company offers repairs for various classes of gas turbine buckets.
Fuel nozzle repairs are also carried out at Jurong for both E- and F-class gas turbines.
The companys other services include generator inspections and repairs, bearing repair services, motor repairs and high-speed balancing.
GE Keppels general manager, Lek Ngak Yong, believes that in many ways the company is
unique in Asia since it may be the only shop in the region carrying out rotor repairs.
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14 March 2016

In a way, the site is probably unusual

because there are very few facilities that
do rotor repair, he said. In Asia we are
probably the only shop to do so.
Our repair methods are very automated. Our welding is done by lasers
with machining carried out using CNC
machines, and coating and polishing are
very robotic-based.

GE Keppels general manager,

Lek Ngak Yong, believes that
in many ways the company is
unique in Asia since it may be
the only shop in the region
carrying out rotor repairs.



GE itself can trace its connections with Singapore to 1969,

and today the company has more than 3400 employees
in various locations, including four factories and five engineering and application research development teams.
Approximately 1500 of GEs staff in Singapore work for GE
Aviation Service Operation (GEASO) and GE Airfoil Technologies International (GE-ATI), supplying aircraft engine
components, manufacturing and repair services.
GE said all eight of its major businesses have bases in
Singapore, including oil and gas, power and water, and
However, like so many companies, the reduction in oil prices has slightly impacted GE Keppel. Yong remains bullish.
In GE, the model that we operate on is based on global
volumes, he said. We have a global team that looks at loading for all of the GE facilities to load all of the shops evenly
with work, and we have a lot of work at the moment, but
also some spare capacity here.
We have seen a slight dip in the industrial work due to
todays low oil prices, but our work levels are healthy and
we are always looking for opportunities to bring in more. A

Safeguarding your diesel
engines and gas turbines
GEA Separation Technology protects the performance,
safety and economy of your power generator systems
Our separators shield your diesel engines and gas
turbines from all aggressive by-products in fuel oils,
reducing service downtimes and failures.
Diesel engines are safe from destructive cat fines
in low-sulphur residual oils. Gas turbines are
protected from corrosion caused by sodium
and potassium in untreated oils.

GEA Westfalia Separator Group GmbH

Diesel & Gas Turbine Worldwide

15 March 2016

engineering for a better world


Werner-Habig-Strae 1, 59302 Oelde, Germany

Phone: +49 2522 77-0,

The auxiliary components of the

single-lift package have been
placed on the common base
frame along the gas turbine,
gearbox and generator. No
changes were required on the
core engine when designing the
single-lift package.

A Lift From Siemens

by Bo

SGT-800 gas turbine now offered with single-lift package

iemens Industrial Turbomachinery AB introduced a singlelift package arrangement for its

SGT-800 industrial gas turbine
to facilitate installation in various applications, such as in remote areas
or harsh environments.
The single-lift package is skid-mounted with single-lift capability of the complete train the gas turbine, gearbox,
alternator, mechanical auxiliary systems
and enclosure.
According to the company, the introduction of the SGT-800 single-lift
package was driven by customer requirements for a smaller footprint and
reduced time for installation and commissioning. The single-lift package also
offers improved factory build options,
such as string test possibilities of the
entire generating package. The SGT-800
is still available in the classic package,
which was introduced in 1997. The classic package has the electric generator
placed on a separate foundation.
With the relocation of the auxiliary
systems to the single-lift skid, Siemens
has reduced the installation requirement of a large plot space to a minimum, said Tobias Kiuru, FEED manager,
Siemens Industrial Turbomachinery AB,
Finspong, Sweden. The new single-lift
package only needs 115 m2 plot space

for the installation compared to 210 m2

for the classic package. This represents
a reduction of the footprint of almost
50%, which provides the customers with
the benefit of utilizing brown and green
fields more efficiently.
The single-lift package is 19.6 m long
and 4.7 m wide and weighs just above
300 tonnes. Turbine controls, generator control panel, motor control center
for package motors and variable speed
drives for starter motors are normally
supplied in an external control module
or as separate items.
The enclosure of the single-lift package is designed to be independently
assembled and dressed, then lifted
onto the skid in the factory workshop.
With this concept any and all site enclosure work is relocated to the workshop,
thus minimizing the activities at site
without extending the delivery time
compared to the classic package, the
company said.
To help ensure easy access to the different on-skid systems, the enclosure
is equipped with six doors. This also
provides service access to the auxiliary
systems, such as the lube oil supply unit
and lube oil cabinet. Folded doors are
available for engine rollout, which can
be done without the use of tools. The
customer can have the doors on either
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16 March 2016

right or left side of the sound enclosure

to facilitate flexible maintenance independently of package orientation, the
company said.
With the single-lift systems assembled, installed, connected and fully
tested in a package test in the workshop, a high degree of completion in
a controlled workshop environment
is guaranteed before the shipment is
made, Kiuru said. The installation and
commissioning times at site are kept to
a minimum, as low as 60 working days
between delivery of package to site until handover to customer. This is a reduction of the time by about 40% from the
classic package alternative.
That gives the customer the opportunity to have the gas turbine generation
package installed within a narrow time
window, such as when seasonal weather
changes may be a factor, the company
said. The shorter installation and commissioning time can also reduce site
costs for manpower, crane use and other equipment. Because the mechanical
and electrical interfaces are located outside of the package and with a package
already tested in a workshop test, the
string test installation is also simplified,
the company said.
The single-lift package diffuser length
has been shortened 39% and the weight


The skid of the SGT-800 single-lift package incorporates two

parallel HEA900 I-beams with two lifting bollards located on the
each long side of the package. Aside from facilitating support
for the gas turbine, the skid also has an integral wet skid for the
lube oil system.

decreased 49% compared to earlier diffusers, without affecting efficiency, the

company said. To shorten the installation time on site, the diffuser has been
divided into two parts a diffuser section and an exhaust duct section. This
enables assembly and alignment of the
diffusor in workshop before delivery,
while only the exhaust duct must be
attached at site. The shortened diffuser
also has lower thermal losses and less
noise emissions than previous diffusor
designs, the company said.
SGT-800 is a single-shaft gas turbine
designed for power generation. The
three-stage turbine is bolted to the
15-stage compressor. The compressor
has a pressure ratio of 21.4:1. Electron
beam welding is used to manufacture
the compressor rotor, forming a solid
rotor body. The compressor can be optimized for either normal or hot climate.
The combustion system consists of an
annular type combustor system with 30 DLE burners.
The SGT-800 is available
in three ratings: 47.5,
50.5 and 53 MW. The
53 MW version was introduced in 2015 and
offers a 39% simplecycle efficiency, the
company said. The revised combined-cycle ef


ficiency is now more than 56% in a configuration with two gas turbines and one
steam turbine, the company said.
The classic packages delivered achieved
an average fleet availability 97.4% with
a reliability of 99.6%. The mean time between forced outage has been over 5300
hours, Kiuru said. To date, 276 SGT-800
units have been sold and have accumulated more than 3.5 million equivalent operating hours (EOH).
A key improvement for the single-lift
package compared to the classic pack-

age is the introduction of a quick core

engine exchange. Now it is possible to
exchange the core engine in 48 hours for
either scheduled or corrective maintenance, resulting in less downtime for the
customer, the company said. This increases the serviceability of the core engine
and the availability of the package while
it still maintains the flexibility to perform
service on-site or off-site, Siemens said.
With the single-lift package, Siemens
has accomplished a package that has
small footprint is fuel flexible and have
a highly degree of completion prior
shipment, Kiuru said. This gives the
customer the opportunity to reduce
their cost for equipment transportation,
excavation at site, and the site logistics
needed. The package also gives the opportunity to the customer to save cost
spent for local labor. A

Siemens said a key improvement for the SGT-800

single-lift package, compared to the classic package, is the introduction of a
quick core engine exchange.
Folded doors are available for
engine rollout, which can be
done without use of tools.

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17 March 2016



Oesses HRX fan units for marine and oil and gas applications
resist very heavy mechanical stresses; these units can reach
3 MW of heat rejection with 450 L/min of water flow.

Cool Down
Customized coolers serve the needs of the
marine and oil and gas industries

esse Srl is an Italian manufacturer of customized cooling devices, which accumulated extensive experience
with big cooling units for
auxiliary diesel engines onboard cruiser
vessels or offshore platforms both in the
North Sea and the Mediterranean.
The companys HR range of customized radiators was produced in 2010 for

application in diesel engines, with the

special Oesses plates and bars design.
The first requests came from manufacturers of compressors, but soon these
products became popular also in industrial applications and mobile working machines. Now, many well-known
diesel engine manufacturers, such as
Cummins, Cat, Perkins and MTU, among
others, use Oesses coolers.

Prompted by the request of an Oesse

customer involved with oil and gas applications, the company recently upgraded
some models in the HR series to work at
215C under 65 bar of pressure. We are
proud to have reached this result with
the help of our R&D department, said
Pierpaolo Morandin, chief engineer of
Oesse Srl. This was achieved in standard
production without changing our manufacturing processes, but modifying the
shape of the component.
Beside the HR range, Oesse also offers the
HRX radiator series, named for the oversizing of the cooling units. These units are
manufactured in a modular concept, to
simplify handling and assembling by the
final user, said Mattia Sanson, engineer at
Oesse Srl. All logistic aspects have to be
analyzed from the thermic dimensioning
until the final design.
Mainly driven by electrical motors,
the HRX fan units must resist the heaviest mechanical stresses, while all parts
strictly respect the tightest norms for
marine applications in terms of corrosion, such as the Norsok standards.
Sanson added that the HRX coolers are
able to reach 3 MW of heat rejection with
450 L/min of water flow. Cooling modules
are connected to be bypassed in most
piping flow combination schema, to prevent and reduce all kinds of risk. HRX coolers are sized to work around the clock,
and the quality of the materials used
guarantees 10 years of functioning. A


Effective Jan. 1, the Aerospace and Land & Sea divisions of
Rolls-Royce will operate as five market-facing businesses,
with the presidents of Civil Aerospace, Defense Aerospace,
Marine, Nuclear and Power Systems reporting directly to CEO
Warren East.
Chris Cholerton continues as president of Defense. Mikael
Makinen continues as president of Marine. Harry Holt, currently group operations strategy director, has been appointed
as president of Nuclear. Dr. Ulrich Dohle continues as CEO of
Rolls-Royce Power Systems. A new chief operating officer will
be appointed next year.
Colin Smith moved from his role as group director of Engi-

neering and Technology, with Chris Barkey succeeding. Smith

has been appointed group president, reporting to East, and will
continue to be a board member.
The companys Civil Aerospace business will be comprised
of the merged CLE and the Civil Small and Medium Engines
(CSME) businesses. Eric Schulz, currently president of CLE, will
become president of Civil Aerospace.
Tony Wood, president of Aerospace, decided to leave the
company, and Lawrie Haynes, president of Land & Sea,
has decided to retire. Both were to remain with the business into 2016 in order to assist with the transition to the
new structure.

Diesel & Gas Turbine Worldwide

18 March 2016

The gas metering unit for the

Heinzmann Kronos 30 gas mixer
system for lean gas engines.



Lean Mixture
Mixture ratio control for
lean gas engines to 3 MW

nlike natural gas and classic biogases from plants or

manure, lean gases present major fluctuations in their
composition and are difficult to burn in a stable process due to their low calorific value. Obtaining a combustion that optimizes efficiency and minimizes emissions presents further complications.
Despite the constant variation in gas quality, the lambda value
(the air/gas ratio) must constantly be kept within a narrow range.
Common configurations featuring a zero pressure controller and
a gas mixer that is tuned to a defined gas quality cannot be used
in this context.
Heinzmann said its Kronos 30 full authority system, which is designed for use in lean gas engine operation, can provide precise
formation of almost any mixture ratio composed of burnable gas
and air.
In order to meet the growing need to use lean gases even in
smaller engines, the Elektra 30 gas metering unit has been added to the existing Kronos 30 system, which is now capable of
covering lean gas engines from 30 kW to 3 MW.
Two versions of the Kronos 30 are available: the Flow Control
(FC) and the Lambda Control (LC). The Flow Control version
enables precise controlling of the gas flow rate in accordance
with a set point signal. In the Lambda Control (LC) version, the
device independently takes over the mixture control in a
process that can optionally be performed in a closed control
loop and the air mass flow rate is recorded using pressure
sensors on the calibrated gas mixer.
The gas mixer is not assigned any metering function in this
process and is used only to ensure that the mixture of air and
burnable gas is as homogeneous as possible, the company said.
An option enables the system to be expanded to include a methane sensor. This improves the starting of the engine and ensures
greater precision when calculating the current lambda value, the
company said.
The Kronos 30 can be equipped with the gas metering units in
the Elektra series, which perform recording and/or metering of the

gas quantity using a calibrated throttle valve as well as gas pressure sensors and temperature sensors in the measuring flanges.
The control electronics, which are based on a standard controller, are integrated into the device. CANbus and additional
I/O interfaces allow the system to be flexibly incorporated into
a superordinate system control. A

Diesel & Gas Turbine Worldwide

19 March 2016


Photo Credit Text


The German Association of Energy and

Water Industries (BDEW) has certified
MTU Series 2000 and 4000 diesel
gen-sets for the German grid code.
Now, power plant operators utilizing
these gen-sets are authorized to feed
the power they generate into the
German public power grid.

Feeding The Grid

MTU diesel gen-sets certified for the German grid code

olls-Royce Power Systems

announced that the German Association of Energy
and Water Industries (BDEW)
has certified its MTU Onsite
Energy Series 2000 and 4000 diesel generator sets for the German grid code.
This means that power plant operators
utilizing these gen-sets are authorized
to feed the power they generate into
the public power grid. According to the
company, Rolls-Royce Power Systems is
the only manufacturer of diesel gen-sets
in Germany to recieve this accreditation.
The certificate applies to MTU Onsite
Energy diesel gen-sets in the 600 to
3200 kWe power range, which meet all
of the associations requirements.
Rolls-Royce Power Systems said the
certified products are based on standard MTU gen-sets using Series 2000
and 4000 engines, the electrical and
electronic components of which have
been configured and fine-tuned according to the special requirements of the
German grid code. Moeller Operating
Engineering GmbH, which specializes
in renewable energies and grid integration, provided verification.
Armed with this certificate, we see ourselves in a very strong market position

with our diesel gen-sets, said Matthias

Vogel, head of the Power Generation
business at Rolls-Royce Power Systems.
Vogel said large power station closures
have resulted in significant growth in
distributed power generation based on
wind, water and solar energy. This transition requires new ways of thinking and
new technologies. The now accredited
capabilities of the gen-sets for contributing to frequency and voltage stability
and for helping to restore the power
supply in the event of a power outage
generally enhance power grid reliability, he said.
Our emergency gen-sets not only
protect people and material assets, he
said. They also have the task of providing extra power, which is of great
value, both to the plant in which they
operate and the national economy as
a whole.
For us to be accredited, wide-ranging
adjustments had to be made to our
gen-set configuration, our protection
and control systems and to our measurements and simulations, said Jrgen
Winterholler, head of systems development in Power Generation at RollsRoyce Power Systems.
The certified gen-sets must be able to
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20 March 2016

perform two essential tasks, the company said. During normal power grid operation, they must support the grid operator
in maintaining quality criteria, such as
power grid voltage and a grid frequency
of 50 Hz. In the event of a power grid
disruption, they must also be capable of
continuously generating power in order
to prevent a power outage.
Our Series 400 and 4000 gas gensets have already been certified, which
means that virtually the entire product
portfolio of MTU Onsite Energy now
stands available, with accreditation, to
our customers, Winterholler said.
One of the first BDEW-certified diesel
gen-sets from MTU Onsite Energy has
been installed and commissioned in an
industrial bakery in Germany. It is based
on an 18-cylinder Series 2000 diesel engine and delivers 1000 kW. Since midSeptember, the gen-set has been used
as a backup in the event of a power outage for safeguarding the production of
frozen bakery products. It also switches
to grid-parallel operation when power
demand peaks. This occurs at midday,
for example, when production is high
and an uninterrupted flow of power is
needed for lighting, conveyors, refrigerators, the frost plant and for regulation
and control of the baking lines.
To deploy the gen-set for peak power
generation and possibly for operating
reserve at a later date, it had to comply
with the new grid code requirements
set by the BDEW. A

Last year, Rolls-Royce extended its service capability in South Korea by partnering with Busan-based
ship repairer Sunjin Entech. Under the agreement, Rolls-Royce said it could provide a bespoke one-stop
service solution at the Gupyung and Yougdu yards, Sunjins two main repair hubs.

Promising Signs Ahead

by Ian

Growth expected in South Korea despite setbacks

he New Year started with a lessthan-rosy message to workers

from the chief of South Korean
shipbuilding giant Hyundai
Heavy Industries (HHI).
We need to upend the way we think
and the way we act, said Mr. Kwon Ohgap, president and chief executive officer.
We need to start all over from scratch.
He was speaking in the aftermath of
third quarter financial figures that revealed that the company posted a net
loss of approximately US$383 million.
The loss came from a mixture of setbacks, including a contract cancellation for a semi-submersible rig, adverse
conditions in the offshore business due
to the decline in oil prices and the companys liquidation of unprofitable overseas subsidiaries.
Other shipbuilders also blamed depressed oil prices for project delays. South
Koreas economy was also hit by two

major setbacks in 2015, according to a

report by the Organisation for Economic
Co-operation and Development (OECD),
which has 34 member countries. An outbreak of the Middle East Respiratory Syndrome (MERS) coupled with a dramatic
slowdown in demand from China and
other Asian countries reduced output
growth in South Korea to around 2.75%.
After a lackluster 2015, the OECD believes a pickup in private consumption
is projected to increase output growth
to 3% in 2016 and 3.5% in 2017, while
inflation rises to around 2%.
The OECD added that Korea continues
to promote green growth by launching
a second five-year plan and an emissions trading system in 2015 and boosting public investment in green technology. But the organization pointed out
that greenhouse gas emissions and energy intensity rose during the 2009-13
green growth plan.
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22 March 2016

A well-functioning emissions trading system should promote investment

in green technology, thereby boosting
growth while helping achieve Koreas target of a 37% reduction in emissions from
a business-as-usual baseline, it said.
Around 97% of South Koreas total primary energy needs are met by imports
one of the highest import figures in
the world because the country lacks
domestic energy reserves, according to
the U.S. Energy Information Administration (EIA). The company therefore brings
in large quantities of liquefied natural
gas (LNG), crude oil, refined products
and coal.
The EIA said that although petroleum
and other liquids including biofuels
represented around 39% of the countrys primary energy consumption in
2014, its share has been declining since
the mid-1990s when it reached a peak
of 66% of the energy mix. This was a

south korea

result of more natural gas, coal and nuclear energy consumption that the EIA
said has cut the use of oil in the power
and industrial sectors.
South Korea is estimated to be the second-biggest LNG importer in the world,
after Japan. Natural gas imports have
almost doubled over the past 10 years
with domestic gas production less than
1% of total consumption. The EIA reported that for the past 10 years, more of the
countrys natural gas supply has been
used for power generation and said,
The fuel remains a significant source of
cleaner energy for the country.
Fossil fuel sources account for nearly
two-thirds of South Koreas electricity
generation with nuclear power accounting for about 30%, according to the EIA.
Since 2000, South Koreas power generation has increased by an average of 4%
annually, although more recently this
has fallen to below 2% mainly due to
reduced economic demand and warmer
weather, the EIA said. South Korea is also
expected to increase its nuclear generation capacity.

Japans Niigata Power Systems has

also predicted a strong market for the
supply of gas turbines for emergency
power backup in South Korea. The
company recently shipped an order
for four NGT3B-T gas turbines for the
Korean National Computing and Information Agencys Internet Data Center
(IDC), which was recently constructed
in Uiwang City in Gyeonggi Province.
Niigata said that although diesel
engine-based emergency power generation equipment is currently used in
most IDCs in South Korea, it could foresee more demand for gas turbines, since
Niigata believes they offer weight- and
space-saving advantages.
Other foreign gas turbine companies
are also winning substantial orders in
South Korea. South Koreas GS Power
company selected GEs 7HA.02 gas turbine, and associated clutched steam
turbine, for a new combined cycle plant
in Anyang, a suburb outside the capital
Seoul. The turbine will be used for a district heating project.
Mitsubishi Hitachi Power Systems

A Rolls-Royce MT30 gas turbine that was slated to power

the Republic of Korea Navys FFX Batch II frigate.

Diesel & Gas Turbine Worldwide

23 March 2016

also recently received an order for a

gas-fired H-25 turbine and generator from Korea Petrochemical Ind. Co.
Ltd. (KPIC) for an in-house power generation plant at KPICs Onsan facility, which produces ethylene in Ulsan
Metropolitan City. KPIC is expanding
power generation capacity in order
to increase ethylene production and
the new power system is due to go
on stream in June 2017. Introduced in
1988, the H-25 has simple cycle outputs ranging from 28 to 42 MW.
Within the marine sector, Rolls-Royce
last year extended its service capability in South Korea by partnering
with Busan-based ship repairer Sunjin
Entech. Under the agreement RollsRoyce said it could now provide a bespoke one-stop service solution at the
Gupyung and Yougdu yards, Sunjins
two main repair hubs. The MT30 gas turbine from Rolls-Royce was also chosen
to power the Republic of Korea Navys
FFX Batch II frigate.
Some smaller overseas companies are
also growing in South Korea. U.K.-based
Advanced Insulation a manufacturer
of technical coatings, specialized passive fire protection systems and thermal
insulation materials for the upstream oil
and gas industry has moved its South
Korea-based manufacturing operation
to a larger facility in Sinpyeong-dong.
General Manager Andrew Court said
that following significant growth and
expected demand from both Korean
Shipyards and local EPC contracts for
its ContraFlex range of flexible passive
fire insulation jackets, it was obvious
that the existing facility in Hwajeondong was no longer suitable for the
increased manufacturing requirements
in the country.
Advanced Insulations ContraFlex range
is designed to provide high-performance,
thermal insulation and passive fire protection from jet or hydrocarbon fire to equipment that requires frequent maintenance
access such as valves, actuators, welding
nodes, manways, junction boxes, process
vessels, hot equipment exhausts and localized protection. A



Now available in five types, ABB said the excitation system range
of its Unitrol 6000 is able to cover all motor and generator types
and sizes in any power plant application.

Excitation System

ABB extends Unitrol 6000 range to any

motor and generator type

BB said the launch of a new

range of Unitrol 6000 excitation
systems Light, Power and
Nuclear means an excitation system can now be used
for all types of motors and generators.
ABB said the addition of the Unitrol
6000 Light, Power and Nuclear options
enables an excitation system to be used
on all size generators in steam, gas, nuclear and hydro power plants, providing
a single or redundant controller for all
regulation, monitoring, protection and
control functions.
It can also be used on diesel generators used for emergency cool down of a
nuclear power plant reactor, the company said. The Unitrol series was originally
launched in 1908.
An excitation system regulates the terminal voltage and the reactive power
flow of a synchronous machine by direct
or indirect control of the field current

using thyristor converters. The excitation system provides the ultimate control performance, keeping the generator
within safe limits.
The Unitrol 6000 Light is an entry-solution system rated up to 2000 Amps dc
and is suitable for motors and generators between 25 and 300 MW. ABB said
this type uses well-proven prefabricated
functional modules and, with single- or
double-channel configuration and a
wide selection of thyristor bridge module options, the system can be configured to meet all field data and availability requirements.
At system level, combined input/output (CIO) devices are used to interface
with internal and external analogue and
digital input/output signals. These devices are fully redundant, if required.
The Unitrol 6000 Power is a fully customizable solution for the mid-power
range rated between 2000 and 4000
Diesel & Gas Turbine Worldwide

24 March 2016

Amps dc, focusing on the market segment between 300 and 600 MW.
With similar construction characteristics as the Unitrol 6000 Light, the Unitrol
6000 Power can be built with up to two
control channels. Each channel is able
to control all modules of the redundant
power converter. The modules are connected via their own converter control
interface (CCI), which also provides diagnostic and maintenance functions including a transient recorder. Converter
signal interface (CSI) and gate driver interface (GDI) provide potential barriers
inside the power converter.
The Unitrol 6000 Nuclear is a dedicated
reliable solution for nuclear power plants
that meets all international and local certification standards, the company said.
The entire Unitrol 6000 range, which
also includes Medium and X-power, is
designed to offer low cost of ownership and are compliant with global grid
codes, the company said.
A comprehensive and user-friendly
human-machine interface monitors the
entire system with front-mounted instruments showing a motors field current and voltage. A worldwide support
team by ABB is available via a hotline 24
hours a day, all year long. A

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Siemens in South Korea recently completed

the 420 MW Daegu Green Power CHP plant.
Daegu is the fourth-largest city in the country after Seoul, Busan and Incheon, and the
third-largest metropolitan area with over 2.5
million residents.

South Koreas Power Market

by Roberta

Market for large combined-cycle power plants

slowing down, but Siemens sees potential

ver the past few years,

South Korea has been a key
market for power generation, thanks to a number
of large combined-cycle
power plant (CCPP) projects underway
in effort to close the countrys capacity shortage and improve grid stability.
Siemens has been active in South Ko-

rea and Thomas Hagedorn, the companys head of sales for Asia Pacific, gave
his outlook on the market. Siemens has
a decades-long history in South Korea
and has a 2100-person central office in
Seoul that oversees all of the companys
operations in the country.
Two-and-a-half years ago, we also set
up an organization dedicated to large
Diesel & Gas Turbine Worldwide

26 March 2016

combined-cycle power plants engineering, procurement and construction

(EPC) in particular, Hagedorn said. This
local EPC hub counts on 280 engineers
and the number is increasing dedicated to large EPC projects in the Asia
Pacific and Middle East regions.
Since 2011, South Korea has been a
very interesting market for our compa-

south korea

ny. The huge demand for power that started in the country five years ago
was due to a very low power reserve margin. This meant that grid stability
was very difficult to maintain, thus the government set up a large plan to
quickly add additional power capacity.
Siemens has installed 12 GW of power in South Korea for gas-fuelled power
plants, which represents an over 40% share in the domestic market for CCPPs
powered by E, F and H class gas turbines, according to data from Siemens.
Combined-cycle projects commissioned include the last three CCPP units of
Posco Energy in Incheon, which account for 1260 MW.
The past five years have also marked the switch from F to H class gas
turbines in South Korea, Hagedorn said. Here Siemens has been a trendsetter, as the Dangjin 3 CCPP has been the first plant in South Korea using
an H class gas turbine and the first combined-cycle plant in
Asia to break the 60% net efficiency mark. In total,
Siemens has sold 15 H class gas turbines into
South Korea.
Hagedorn said South Korea imports the
vast majority of its fuel, so the government and EPCs were very concerned
with the efficiency of the power
plants. The switch from F to H class
technology was driven mostly
because the H class offers higher
net efficiency, Hagedorn said.
South Korea power producers
are very focused on efficiency,
to be competitive on the market,
Hagedorn said.
The local power market is structured with a cost margin system,
where the cheapest producer has
an advantage, Hagedorn said. It is of
an extremely competitive market.
Thomas Hagedorn,
said Siemens is constructing
Siemens head of sales
plants in Korea, for a total of
for Asia Pacific, has exseven H class gas turbines that will be operational
tensive experience with
between 2016 and 2017. All three projects are bethe South Korean power
ing fully executed by the companys new EPC hub in
generation market.
Seoul, he said.
The power plants under construction are: Units 1 to 4 of
the Jangmoon CCPP by SK E&S, with a total installed power of
1800 MW; the Dangjin 4 CCPP of the power utility GS Electric Power and Services Co. Ltd., with 900 MW power installed; and the Wirye combined heat
and power plant with 450 MW power output, again by SK E&S.
Although the domestic power generation market has been geared
mostly to the construction of large CCPPs, there is some interest in combined heat and power plants (CHP). Hagedorn also noted activity in the
construction of waste-to-energy projects, where Siemens has delivered
steam turbines.
Because of the huge investment the past few years on gas-fuelled power
Diesel & Gas Turbine Worldwide

27 March 2016

plants, Hagedorn said the power reserve

margin in South Korea has improved
The two peak seasons for power generation in South Korea a hot and humid summer requiring a lot of air conditioning, and a very cold winter with
much heating needed have been
met with the current power generation
capacity, Hagedorn said. The reserve
margin now looks adequate.
Because of that, demand for large
power plants in South Korea has slowed
considerably, and the market looks flatter, Hagedorn said.
South Korea is still a very important
market for our company, as local EPCs
are very active with contracts to build
plants outside of the domestic market
and worldwide. Hagedorn said. Although our new hub in South Korea is
capable of supplying turnkey projects
to the whole Asia and the Middle East,
we are also very keen on working as an
OEM technology partner with South Korean EPCs in their international projects.
After efficiency, a sound technical solution is the next key criteria for local EPCs,
Hagedorn said.
Reliability is a very important matter with our customers, he said. These
companies are very experienced and
know what they want; therefore it is
mandatory to deliver a quality solution,
in time and within budget.
Service is of course of the utmost importance too and, with the huge fleet of
gas turbines Siemens has in South Korea
58 units so far we have invested
in extended services capabilities, that
include full turnkey outages services for
both gas and steam turbines.
The Siemens service team in South Korea
includes 35 technicians and supervisors.
What is also extremely important for
dealing with the South Korean companies is reputation, Hagedorn said. In this
country, there is a very good business environment with a reliable relation among
partners, and you live up to your word. A

Cummins is supplying 16 C2250D6A

generator sets, each rated 2.24 MW, to LG
CNS Busan Cloud Datacenter. Designed
for startup within 10 seconds after power
failure, the gen-sets can power all data
center functions within 40 seconds.

Power For The Cloud

Growing IT data center industry in Korea provides expanded backup

power opportunities for Cummins Power Generation

long with marine, manufacturing and entertainment industries, information technology (IT) has seen significant
growth in South Korea over
the last few years. As such, the need for
reliable standby power has become critical as the region becomes a significant
data center for much of Asia.
Even in the face of current market
uncertainty, this has made the area an
important focus for global power generation system suppliers such as such as
Cummins Power Generation.
While the markets are challenging
today, we see much long-term potential for the Korean power generation
market, said Bong Kim, Cummins Power
Generation sales leader for Cummins

Sales and Service, Korea, the local Cummins Power Generation distributor. For
example, Korea is marked by a high
rate of mobile Internet penetration and
boasts one of the fastest networks in the
world. It also has a stable electric grid
and few natural disasters. As a result, it is
becoming a hub for data centers.
A good example is Busan City, in
which several large data centers have
been created. Among the most recent
is the LG CNS Cloud Datacenter established within the Mieum Industrial
District. Opened in the spring of last
year, the Busan Cloud Datacenter is
one of the largest in Korea at 32 321 m2.
With five floors housing approximately 72 000 servers, the site provides
collocation and turnkey data center
Diesel & Gas Turbine Worldwide

28 March 2016

and consulting services for customers

in Korea and the region.
In datacenter operation, a key consideration is the reliability of the power
supply. The LG CNS Cloud Datacenter
chose 2.25 MW Cummins generator sets
to provide backup power for the site.
The relationship between Cummins
and LG CNS dates back to the time of a
generator replacement project for the
Sangnam IT Center in 2006. At the time,
Sangam IT Center used products from
another company, said Jeong Heonsu, senior manager of Cummins Koreas
generator team. We made an approach
by emphasizing our product and service
quality superior to that of the products
installed in the center. That was the beginning of our relationship.

south korea


continued on page 30

Ultimately, that led to the installation of four 2.25 MW Cummins gen-sets, three 2.0 MW units and one 1.25 MW unit at
Sangam, which led to nine 2.0 MW and three 2.25 MW gen-sets
installed at Gasan Center and Incheon Center, respectively.
We believe that LG CNS confidence in our products and satisfaction with our service has been a principal factor leading to
our strong relationship so far, Jeong Heon-su said.
Cummins generators were verified of their performance a
long time ago, said Kim Yeong-nam, manager of LG CNS Busan
Cloud Datacenters operating team. We use them with confidence. Not to mention the continuous technical support, we
are satisfied with the service and maintenance quality.
Initially, 12 Cummins C2250D6A gen-sets, each rated 2.24 MW,
were installed in Busan Cloud Datacenter, with 16 units eventually planned. Designed for startup within 10 seconds after
power failure, the gen-sets can power all data center functions
within 40 seconds.
We test-operated three generators for 10 hours, said Lee Wucheol, head of the data centers management office. Of course,
the speed was as fast as we had expected. Energy efficiency in
relation to fuel consumption was also high.
The C2250D6A gen-sets are based on the QSK60 diesel engine, a 60V, 16-cylinder turbocharged and low temperature
aftercooled engine with a bore and stroke of 158.8 x 190 mm
and an overall displacement of 60.2 L.
The engine drives a Cummins four-pole, revolving field brushless PMG alternator through a flexible coupling.
Engine and generator functions are operated though the Cummins PowerCommand 3201 control, a microprocessor-based
gen-set monitoring and control system. The PowerCommand

The LG CNS Cloud Datacenter is one of the largest in Korea

at 32 321 m2. With five floors housing 72 000 servers, the
site provides collocation and turnkey data center and consulting services for customers in Korea and the region.
Diesel & Gas Turbine Worldwide

29 March 2016

ZoryaMashproekt_Jun13_WW.indd 1

4/3/13 1:00 PM

south korea

system is designed to provide an operator interface to the gen-set, digital voltage regulation, digital governing and
gen-set protective functions.
The data center conducts no-load pilot
testing regularly, as well as no-load operation to verify complete power supply capability in emergency situations.
Generators are operated in emergency
situations only, said Kim Chang-yang,
part of the management team at Busan.
So management at ordinary times is
more important than anything.
We check noise, battery and coolant, which are difficult to check visually,

We think (data centers) offer an excellent opportunity for Cummins new

QSK95 generator set because it offers
extremely reliable power, high power
density and excellent performance,
including fuel efficiency, Bong Kim
said. We believe Cummins is well positioned to capture this data center
growth, especially given the traction
the QSK95 is already gaining in data
center applications. We also offer the
necessary related products like controls and switchgear, as well as the
consulting and service components to
provide a total solution. A

through load operation and establish a

database with the inspection results. If
stable operation is ensured with continuous technical support from Cummins
as has been so far, we anticipate that the
tenants satisfaction will increase.
Along with that, Cummins is angling for
increasing its datacenter business in the
region further through its QSK95 gen-set.
Based on the 95 L QSK95 diesel, the most
advanced large diesel engine in the companys lineup, the gen-sets are available
in ratings up to 3.5 MW, which Cummins
Bong Kim said makes it well positioned
for data center applications.

MW Industries, a provider of engineered springs, specialty fasteners, machined parts and other components,
has acquired Servometer and BellowsTech, manufacturers of engineered bellows and electroformed components.
Located in Cedar Grove, New Jersey,
USA, Servometer designs and manufactures miniature bellows, flexible shaft
couplings, contact springs and bellows assemblies. BellowsTech, Ormond
Beach, Florida, USA, markets edge
welded bellows and assemblies, encompassing a wide array of alloys and
dimensional configurations. Both companies product technologies complement each other in terms of size, compatibility, pressure and temperature
capability, the company said.

Chromalloy said its new, 3345 m2 gas
turbine engine machining facility is
The facility can machine up to 68
000 gas turbine engine components
a year. By the end of 2016, Chromalloy plans to triple its previous Guaymas, Mexico, workforce to 250.
The new plant will replace Chromalloys adjacent 1579 m 2 facility at

Diesel & Gas Turbine Worldwide

the Roca Fuerte Industrial Park.

Chromalloys Guaymas facility supplies
precision machining on new production,
high- and low-pressure gas turbine engine components, including blades and
segments. Customers include manufacturers of heavy industrial gas turbines.
Services include multiple-axis machining, grinding, milling, electro discharge
machining (EDM) and inspection.
Chromalloy also operates a gas turbine engine component repair center
in Mexicali, Mexico.

Power Generation

Industry News


The SKF Marine Condition Monitoring kit is designed to prevent

failures in critical machinery and
provide early warnings of possible
problems in auxiliary machinery.

Tsakos Columbia Shipmanagement

(TCM) has ordered a maintenance
product from SKF which will be used
in all of the companys fleets.
The product, known as SKF marine
condition monitoring kits, is a handheld
instrument equipped with predefined
machinery models and instructions.
With the kit, vessel engineers can collect vibration data from critical auxiliary
machinery, including cargo pumps, engine room fans and blowers, compressors, purifiers and electric motors. The
data is then downloaded and transmitted through the ships communication
system to TCMs headquarters, where a
report is created for each vessel on the
current condition of its machinery.

Industry News




30 March 2016


Mitsubishi Hitachi Power Systems
Americas Inc. (MHPSA) will provide
two M501J gas turbines and one
steam turbine for the CFE Noreste
combined cycle power plant, located
in Escobedo, Nuevo Len, Mexico.
Comisin Federal de Electricidad (CFE)
gave Iberdrola a contract for an 850 MW
combined cycle power plant to supply
electricity to meet the growing demand
in northeastern Mexico. This project will
be completed in July 2018.
The two M501J gas turbines for Noreste will be manufactured at MHPSAs
Savannah Machinery Works in Savannah, Georgia, USA.


EthosEnergy has been awarded a
multimillion dollar contract by Alliant
Energy to provide fuel conversion,
equipment upgrade and associated
construction work on its combustion
turbine units at its Sutherland Generating Station in Marshalltown, Iowa,
USA. The range of services provided
will include engineering design, gas
turbine overhauls and upgrades, controls retrofit, generator inspection
and installation of new balance of
plant equipment for the Sutherland
facility. The generating station produces electricity to meet peak power
demand in the region. The conversion
to natural gas fuel provides a cleaner,
less expensive fuel source for the utility. The full scope of work is for the conversion of six Pratt & Whitney FT4C3F

of 23 000 m2 and required a total investment of 45 million. The move of

manufacturing operations to the new
plant opened space in the Spay location for the extended repair facilities.
Schottel opened its Service Center
North in January in Wismar, Germany,
for larger drives and the range of controllable pitch propellers.

Collicutt Energy Inc., a provider of

power generation systems in the
western U.S., has expanded its service offerings by providing emissions
permitting services. The company
says it will now assist customers with
registering equipment with any of
the 35 different air districts within
California, USA.
Collicutt Energy emissions permitting services include completing and
preparing application paperwork,
providing emissions data, delivering
completed applications along with
necessary accompanying paperwork
to air quality districts, executing public notice processes, monitoring the
permitting process and communicating with the assigned engineer.
Collicutt is a distributor of MTU Onsite Energy power generation.



Power Generation

Industry News

Swiss speed sensor specialist Jaquet

has announced start of construction of
the new companys headquarters in the
industrial area of Pratteln, just outside
the city center of Basel, Switzerland.
Jaquet said the planned move into
the new location is part of the companys ongoing growth and expansion
strategy. The new headquarters will
primarily handle corporate functions,
sales, engineering, R&D and have a
state-of-the-art manufacturing facility. The new location is expected to be
completed in 2017.
Having achieved a leading role in
the speed measurement market and
produced over 10 million sensors, our
new work space will reflect the technology-driven, innovative company
that Jaquet is, and provide a positive
environment for our employees and
customers, said Markus Eigenmann,
CEO of Jaquet Technology Group.

turbines from liquid fuel to natural gas

fuel, overhaul of the combustion turbines, generator inspections, turbine
and plant control upgrades, turnkey
engineering, procurement and construction and associated start-up and
commissioning work.

Power Generation

Industry News


Schottel announced the opening of
extended repair facilities at its German headquarters in Spay.
The space was previously used for
manufacturing new drives, the facility
now offers 2200 m2 for the repair of
Schottel propulsion systems in a new
and modern mechanical workshop. A
service warehouse was already fully
integrated into the Spay location.
In June 2015, Schottel completed a
new manufacturing plant in Drth,
not far from the Spay headquarters.
The new facility has a production area

Diesel & Gas Turbine Worldwide

31 March 2016


The factory acceptance test of the first
ME-GI engine in Japan took place at the
Tamano Works of Mitsui Engineering &
Shipbuilding Co. Ltd. (MES). Overseen
by the DNV GL classification society, the
engine is the first of two 8S70ME-C8.2GI units for delivery to VT Halter Marine
of Mississippi, USA, for installation
aboard two 2400-teu ConRo ships for
Crowley Maritime Corp. USA.
Crowley, the marine solutions, transportation and logistics company, ordered the ME-GI engines, along with
3 MAN 9L28/32DF auxiliary engines
for each vessel, in early 2014.
The ConRo ships with container
Lift-On/Lift-Off (LO/LO) and roll-on/
roll-off (RO/RO) will be named El
Coqu and Tano and are scheduled
for delivery in the second and fourth
quarters of 2017, respectively.
The vessels will be two of the worlds
first LNG-powered ConRo ships, designed to travel at speeds up to 22
knots, and carry various sized containers, along with hundreds of vehicles in
enclosed, weather-tight car decking.
Crowley said that the vessels will offer customers fast ocean-transit times
and, being powered by LNG, will set a
new standard for environmentally responsible shipping.
According to Crowle, the newbuildings will reduce the amount of CO2
emissions attributable to each container by approximately 38%. Additionally, the ships will meet or exceed
all regulatory requirements and have
the CLEAN notation, which requires
limitation of operational emissions
and discharges, as well as the Green
Passport, both issued by DNV GL.

Three-stage filtration concept

by Freudenberg Filtration
Technologies: composed of
pocket filter and MaxiPleat
modular filter, it represents a
two-in-one solution ideal for
restricted spaces.

Three-Stage Filtration

by Roberta

Freudenberg Filtration offers high-end air filtration

products for turbomachinery applications

ir filtration doesnt have the

prominence of other essential
products, but that doesnt
make it less important. In fact,
there are several aspects that
contribute to efficient filtration, a necessity when considering the disruptive and
costly effects of poor filtration.
Petrobras was aware of that when it received 19 complete air systems for five
offshore platforms in Brazil. The provider
was Freudenberg Filtration Technologies
in Weinheim, Germany, a filtration specialist thats part of the Freudenberg Group.
Freudenbergs division for turbomachinery products delivers high-end air
filtration products such as the Viledon
range for gas turbine, compressor and

diesel and gas engine applications,

including power generation, and onand offshore oil and gas installations.
Thomas Schroth, global market segment manager, turbomachinery, said his
group is able to tailor products that account for climatic conditions, machine
specifications and available space.
It is quite typical for our company to
provide products for retrofits or upgrades, Schroth said. We can supply
the whole project, starting with Viledon
Engineering for advice and guidance, up
to the full construction.
For example, if a customer has a coastal installation in the Middle East, the
first concern is the effects of sand particles during the construction process,
Diesel & Gas Turbine Worldwide

32 March 2016

Schroth said. In winter, however, fog becomes a problem, hitting the filters with
humidity, which results in high-pressure
drops and filter blocking.
This is a typical area of activity for us,
where we intervene to study the best
solution with the customer to solve the
problem at hand, he said, adding that
the filter systems in the Petrobras order
had to cope with mist, salt and water
droplets in a subtropical region.
The platforms on the Petrobras order were equipped with Rolls-Royce
RB211/19 gas turbines, each with a 25
MW power output. The scope of supply
included engineering, manufacturing,
construction and assembly for multistage filter systems with weather hoods.


systems & components

The filter houses were made of stainless
steel and painted to avoid corrosion.
The intake airflow rate per unit was
278 000 m3/hr for combustion air and
50 000 m3/hr for ventilation air. One of
the key requirements for the offshore
platform installation was long filter service life due to the expensive change-out
and disposal costs, the company said.
For the combustion intake air, Freudenberg Filtration supplied four-stage filter
systems composed of a first stage with
weather hoods and droplet separator
vanes to remove water droplets that can
carry slag particles. The second stage
consisted of 56 Viledon G 35 SL pocket
filters with filter class G 3 to EN779, while
the third stage was composed of 56 Viledon T 90 pocket filters with filter class F
7 to EN779. A mist eliminator was the
fourth stage.
The package intake air system was fitted with three-stage ventilation systems
composed of weather hoods in the first
stage, droplet separators in the second
stage, and 12 Viledon G 35 SL pocket filters, filter class G 3, for the third stage.
Due to its work with Petrobras, Freudenberg Filtration gained a second project involving Brazilian offshore platforms, Schroth said, adding that the
platforms will be equipped with GE Oil
& Gas turbines.
Freudenberg Filtration has more
than filter systems. The companys
range includes cassette filters, pocket
filters and cartridge filters, which can
be combined to obtain different multistage particulate filtration systems,
and completed by inertial separators,
such as droplet catchers. The company
also offers its engineering services to
develop and deliver complete filter
housing projects.
For applications with turbomachinery
installations, the most typical arrangement is two-stage filtration with particulate filters. That package can include
weather hoods, vanes and droplet separators, and use a static filtration concept
with a cassette filter in the final stage that
is protected by an upstream pocket filter.
With static filtration, particles are collected in the filter element that gets

progressively dirty. Once the maximum

pressure drop is achieved, the filter
needs to be changed.
There is a clear increasing trend,
though, for three-stage particulate filtration solutions, where a further downstream cassette filter is added, Schroth
said. The end users, especially in power
generation applications and in the oil
and gas industry, get cleaner air and encounter fewer problems of degradation
in the turbine, which lead to reduced
power output and turbine efficiency.
A third option involves using pulse-jet
or cleanable filter systems, which are
used at locations with high dust loads,
Schroth said. The systems have a cylindrical or conical form.
Cleanable filters are unlike static filters.
In static filters, the air flows in one direction across the filter, but the cleanable
variety receive the unfiltered air from
the outside to the inside of the filter elements, according to the company.
On the surface of the filter medium, a
dust cake is collected and, after a certain
level of pressure drop is reached, a pulse
jet of compressed air is activated with
a reverse flow from inside to the out-

side, to pulse away the collected dust,

Schroth said.
In order to achieve better safety with
pulse-jet systems, Freudenberg Filtration recommends one cassette filter as a
second stage after the cleanable filters,
which stops those particles that pass
by due to leakages at the gaskets or improperly fitting pulse-jet filters.
In terms of filter media, Freudenberg
Filtration suggests using high-strength
synthetic media for pulse-jet filters in filter class F 9 to EN779:2012, respectively,
MERV14 to ASHRAE 52.2.
Synthetic media is much more resistant and does not react to humidity
while conventional pulse-jet filters are
made of an 80/20 blend of cellulose and
synthetic fibers with too low initial separation efficiency and high sensitivity to
moisture, Schroth said.
For customers wanting to upgrade their
filter system from two to three stages,
but have space constrains, Freudenberg
Filtration offers its two-in-one MaxiPleat
modular filter system. A special coupling
system with pins makes it possible to
connect one filter to the other without
modifications. A

This filtration concept from

Freudenberg Filtration
Technologies is composed of
cylindrical and conical pulse-jet
cartridges and is particularly
suitable for power generation
plants in desert areas.
Diesel & Gas Turbine Worldwide

33 March 2016

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WORLD Viewpoint

by Ian Cameron
Ashbourne, England

Oils Slippery Slope

alling oil prices continue to spell

disaster for many producers
not least those involved in the
exploration of shale oil.
As this issue of Diesel and Gas
Turbine Worldwide goes to press, the
price of a barrel of Brent crude oil is hovering around the US$30 mark.
If that wasnt catastrophic enough for
companies involved in oil exploration
and production and the thousands
of companies who service the industry
imagine if the price slumped even
further to, say US$20.
The US$20 figure is a possibility whos to say it wont
or cant happen?
The dire price of oil is leaving
a trail of destruction behind.
U.S.-based corporate law
company Haynes and Boone
has just compiled the miserable-sounding
Oilfield Services Bankruptcy
Tracker. It shows there were
39 North American middlemarket oilfield services bankruptcy filings in 2015 with
seven in September alone.
Of the 39 companies, 19 were in Texas
followed by six in Canada and four in
Delaware with the rest spread across
various states including two each in
Colorado, Louisiana and Pennsylvania.
According to the law firm, the total
amount of aggregate debt is more than
US$5 billion; the average debt in these
cases is close to US$135 million, the median ranges are from US$10 to US$17

million and the largest reported bankruptcy has a total debt of more than
US$2.5 billion.
You can see from our charts that the
tempo is increasing both in oilfield services bankruptcies and restructurings,
said Houston, Texas, USA, partner Chris
Wolfe, head of the firms Oilfield Services
Practice Group.
Service companies are taking it on
the chin and there is more to come. The
industry is in crisis, so it is important to
track this activity carefully.
He was quick to stress though, that in

The shale oil explorers

and producers are in a
particularly difficult place
as the price of a barrel
continues to tumble.

his view, there will be a resolution and it

is important to avoid panic.
The shale oil explorers and producers
are in a particularly difficult place as the
price of a barrel continues to tumble.
Some shale wells dont last long and
can be quickly drained of their reserves, which means shale oil production companies have to constantly be
on the lookout for new places to drill
Diesel & Gas Turbine Worldwide

36 March 2016

which can be a very difficult and

tortuous procedure.
One commodities research group estimates that the average break-even cost
for U.S. hydraulic shale is US$65 per barrel more than double todays price.
However, more standard wells, which
stay in the same place, produce oil for
many years and can usually survive
because they can still make a buck or
two on a barrel of oil even as the prices
head south.
So what is the short- to medium-term
prospect for oil prices? Some analysts
believe that prices will start to
climb again possibly from
the second half of 2016 onward.
But the problem remains that
there is still oversupply. For
2016, the International Energy
Agencys Oil Market Report
forecasts worldwide average
demand of nearly 96 million
barrels of oil and liquid fuels per
day that works out to more
than 35 billion barrels a year.
The problem is that production
breached 97 million barrels per
day in late 2015, meaning a lot
of oil is being stored.
So given the current price of oil, is
more worldwide shale development
sensible? The saving grace for shale oil is
that most of the companies investing in
its production and exploration will base
their plans on what the price is likely to
be in five years time and not today. The
big challenge, though, is to still be in the
business in the year 2021. A



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