twe issue 11
DESCRIPTION
2015 Total World EnergyTRANSCRIPT
TenneT 41 million end-users
Lake Turkana Project African Renewables Deal of the Year, 2014
Sakson Group Exceptional drilling performances
Euskal Forging The new Raw 1000/1000 machine
Energy for LifeCovering 65% of the country’s total refining capacity with a total volume of 16 million tons per year from its three refineries, we speak with Gerasimos Stanitsas of Hellenic Petroleum as it submits a bid for two onshore lease block areas in Western Greece…
MARCH 2015
more than business www.totalworldenergy.com
Stenhuggervej 136710 Esbjerg V. DenmarkTlf.: +45 7514 0400
www.mjc-metal.dk
All processes in MJC Metal are onshore based and often take place in our own workshop. MJC Metal has, by virtue of highly qualifi ed employees and a unique machine park, the skills to perform complex machinery.
We have a very high level of service, which among other things means that we are solving tasks based on customer specifi cations. We often see very complex issues with high tolerance require-ments, says Production Manager Tommy Georgsen.
Our expertise has been developed in order to remain a long-term and reliable supplier in the oil indus-try - but is also used in parallel to a number of other customers. Overall, we cover a wide range, from one-off production to the production of large series.
complete package offeringWith plans for further growth, we are always on the look-out for new clients, says CEO Jørgen Nordstjerne Schmidt. Therefore we strive to always be best in class, and offer a complete package to our clients. Together with our local partners we have the possibility to offer a complete package, from rough-machining to coating, including inconel or other cladding, heat treatment, fi nal machining, 3D measuring and a full “as-build” documentation package. High competences and accountability are key elements of MJC Metal.
Renovation or new buildMJC Metal is a key player when critical components from the North Sea are to be renovated. There are many vital and expensive parts, which can have their lifetime extended signifi cantly through a reno-vation process. This is one of the company’s core competencies. In addition to critical renovation, MJC Metal also produces new components based on customer specifi cations, which are often very complex issues with high tolerance requirements in special high-alloy steels.
mjc-metal A/S – your local subcontractor, with international relations.MJC Metal has its headquarters in Esbjerg, Denmark, from there a large number of international companies are serviced. A substantial part of the activities are targeting the oil industry’s activities in the North Sea.
“We are proud to make a difference for our clients, both in cost and lead time. MJC Metal has in recent years invested in state of the art equipment, which has improved our lead times signifi cantly” - Jørgen Nordstjerne, CEO
• Advanced machinery
• The most skilled industrial technicians
• From single pieces to serial production
EDITOR Harriet PattisonSUB-EDITOR Ajuanne PayneWRITERSRosie DeWinterColin ChineryTim HandsSTUDIO DIRECTOR Martyn OakleyDESIGNER Harvey Tarlton
MAGAZINE MANAGER Rick LiddimentPROJECT MANAGERS Kieran ShukriJodie RettieAaron WickSALES DIRECTOR Andy WilliamsSALES MANAGER Daniel MarshallSALES EXECUTIVE Mark Leonard
ACCOUNTSMike Molloy Jane ReederMANAGING DIRECTOR David HodgsonOPERATIONS DIRECTOR Chris BolderstoneFINANCE DIRECTOR Scott Warman
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In this month’s issue we focus on current and projected renewable projects and how these will help to impact on and encourage a more sustainable form of energy generation, reducing the need for imported fuels. The National Electric Power Company of Jordan (NEPCO), currently importing 97% of its energy needs, looks set to reduce its reliance on fossil fuels in a bid to install 600MW of solar PV capacity and 1,200MW of wind energy by 2020 - we also track the progress of Jordan’s latest 52.5MW Shams Ma’an Wind Project.
It seems that change is in the air for Kenya too with the Lake Turkana Project – the country’s single largest investment in history – it is expected to save Kenya an estimated $178 million in fuel imports every year and remains on target to generate 300MW by 2016 with the construction of 365 wind turbines.
Replacing the necessity for imported fuel is a positive step for so many reasons, not to mention the encouraging impact it can have on a country’s own energy generation but switching to renewables can help bridge that all important gap towards a more sustainable future. Gerasimos Stanitsas of Hellenic Petroleum, which currently stands as one of the leading energy groups in South East Europe, explains: “There are apparent benefits if our exploration operations become successful for the company and for the country. Up until now Greece has had a limited production of indigenous oil, so there are many bright prospects regarding new areas.”
And if, like many, you enjoy nothing more than hopping on a plane and enjoying some much needed respite, we have selected a few of the best island getaways to spark the wanderlust in you.
If you or your company has any stories of innovation, or if you are working on a ground-breaking project, please get in touch with us @TWEmagazine
PAGE 3
Harriet [email protected]
PAGE 4 MAR 14
EDITOR’S PAGEA strong gust of wind energy
3
NEWS All that’s happening in the energy industry
6
ENTREPRENEUR Folorunso Alakija: A fortune of US$2.6 billion
14
INNOvATION Going green with SolarLeaf
16
HEllENIc PETROlEUm SAThe Greek refining specialists
20
GENKAT Technical company – technical works
22
NEDERlANDSE AARDOlIE mAATScHAPPIjDutch Courage – Global Effect
30
SAKSON GROUP Sakson Drilling Skill
36
cEylON ElEcTRIcITy bOARD Helping consumers conserve energy
42
URUK ENGINEERING & cONTRAcTING SERvIcESA determination to succeed
46
SvENSKA KRAfTNAT Electrification for a Nordic nation
52
lAKE TURKANA PROjEcTWind of Change for Kenya
58
TEN clUSTER PROjEcT TEN out of TEN for Tullow Oil
64
EUSKAl fORGING The seamless rolled ring specialists
70
KT - KINETIcS TEcHNOlOGyThe highly technical turn-key solutions provider
76
TENNET Securing electricity to Northwest Europe
82
NATIONAl ElEcTRIc POWER cOmPANy A Green Energy Kingdom
88
SUbSEA UK AWARDS, 2015This year’s winners
94
DESTINATION DIREcTORLuxury island getaways
96
Contents
CONTENTS
PAGE 5
2026
82
88 42 96
Global-leading energy services firm
Proserv has won a much coveted
industry award in recognition of its
outstanding achievements after being
named Company of the Year at the 2015
Subsea UK Business Awards last night (11
February).
Over the past year, Proserv has
marked a number of key milestones
including winning a series of high-profile
contract awards globally, expanding its
manufacturing facilities and capabilities
and launching several new game-
changing subsea technologies. Proserv
also secured a major acquisition deal to
help ensure its future sustainable growth
and success.
Proserv engineer John Stoddard, who
joined the company as a graduate just
three years ago, also came under the
spotlight at the Subsea UK Business
Awards as a finalist in the Young Emerging
Talent category.
David Lamont, Proserv’s chief executive
officer, said: “It is a real privilege to win this
award particularly during what has been
a very challenging time for the industry.
Against this backdrop, we have continued
to evolve through a robust business
strategy focused upon building on our
market-leading position, track record
and delivery of world-class products and
services.
“It is also with great pride to see
someone from our dedicated engineering
team hailed as talent of the future. John’s
recognition is very well deserved and
highlights the importance we place on
developing our people and encouraging
the next generation into the energy
industry.
“At Proserv we work as a team and I
see these awards as recognition of the
hard work of everyone throughout the
company in building our business to where
we are today.”
The Subsea UK accolade is one in a
series of awards that Proserv has won
in recent months. Promising young
employees, Marnie Toal, of Sauchen,
Aberdeenshire, won the Oil & Gas UK
Award for Apprentice of the Year while
John Stoddard, of Peterculter, Aberdeen,
also made the Graduate of the Year final
shortlist at the awards.
Proserv also scooped Business
of the Year and Great Engineering &
Manufacturing Company of the Year at
Great Yarmouth’s Spirit of Enterprise
Awards 2014. The company’s
subsea controls centre of excellence
is based in Great Yarmouth, UK.
Last year, the team completed and
released game-changing technology
for subsea control and monitoring
communications (Artemis 2G),
reinforcing Proserv’s rapidly-expanding
subsea capabilities and world-class
engineering expertise.
PAGE 6
Proserv wins ‘Company of the Year’ at Subsea UK awards
#twenews
© Subsea UK™
NEWS
PAGE 7
Swiber Holdings Limited, a leading
global provider of integrated offshore
construction and support services
to the oil and gas industry, has
secured its second largest contract
win in the Group’s corporate history
– an Engineering, Procurement,
Construction, Installation and
Commissioning (“EPCIC”) contract
worth approximately US$ 310 million
from a national oil company in South
Asia.
The project involves a full suite of
EPCIC services for 8 new platforms and
associated pipelines required for the
development of a new offshore gas field
located in South Asia. The engineering
work will commence immediately with
overall project completion targeted in
March 2017. For this project, Swiber will
be utilising its in-house state-of-the art
construction and support vessels and
its highly skilled and experienced Project
Management Team.
With this new contract, Swiber’s
order book will rise to approximately
US$ 1.6 billion – a new record high
for the Group. Said Mr. Francis Wong,
Group Chief Executive Officer and
President of Swiber, “This new contract
is awarded by the national oil company
for which we had previously completed
a float-over platform installation project.
Over the years, Swiber has performed
offshore projects with a total value of
approximately US$1.66 billion including
consortium for this customer.
This is a testament to the customer’s
trust in Swiber’s capabilities. The
new project will provide us with an
opportunity to deepen our relationship.
With our experience and expertise in
EPCIC services, we are confident of
executing another successful project for
the customer.”
Despite the prevailing headwinds
caused by the decline in oil prices,
Swiber has continued to successfully
secure new projects. In December
2014, the Group was awarded its
largest contract win – a US$710 million
EPCIC project in West Africa.
“Swiber is building a strong
momentum in our project wins as
this new contract follows on the
heels of the West Africa award. As an
established provider of EPCIC services
for shallow water oil and gas field
development, we believe that Swiber
occupies a space in the offshore
service value chain that will be less
susceptible to spending cuts by the oil
& gas companies. We continue to see
opportunities in our field of expertise
and are working on new project
tenders in our target markets,” said Mr.
Wong.
The new contract is expected to
begin contributing to the Group’s
earnings per share in the current
financial year ending 31 December
2015.
Swiber wins US$310 million EPCIC contract in South Asia
RWE Innogy and Statkraft have
signed an agreement to jointly
develop the Triton Knoll Offshore
Wind Farm, off the east coast of
England.
The deal will see Statkraft
take a 50% stake in the UK wind
farm, which has an expected
capacity of up to 900MW. The
development and construction
phases will be delivered by a
joint RWE/Statkraft project team,
managed by Statkraft and, drawing
upon the competencies of both
companies. Under the terms of the
agreement, no financial details will
be disclosed.
RWE Innogy and Statkraft
are global leaders in renewable
energy, long term investors in
the UK renewables sector and
together have interest in more than
6,500MW (pro rata) of offshore
wind assets1. The combined
experience and expertise of both
companies will create a formidable
team within the offshore wind
industry, and in the development of
Triton Knoll.
Welcoming the new partnership,
the Secretary of State for Energy
and Climate Change, Ed Davey
said: “This is another vote of
confidence in the world’s number
one offshore wind market which
is continuing to attract investors
from all over the world, creating
thousands of green jobs in the
process. We have created the
right conditions in the UK for the
offshore wind industry to flourish
and have attracted around £7
billion worth of offshore wind
investment since 2010.”
Jon Brandsar, Executive Vice
President, Statkraft, commented:
“This is an important step for
Statkraft in delivering on our
strategy for offshore wind. Strong
partnerships between experienced
offshore wind players are crucial
for a successful industry. This
transaction establishes RWE and
Statkraft as strong, long-term
and complementary partners in
delivering offshore wind in the UK.”
Hans Bunting, CEO of RWE
Innogy GmbH said: “Securing
partners for projects such as Triton
Knoll has been a key objective
in our renewables strategy, and
this latest successful partnership
with Statkraft highlights the
attractiveness of our developments
and RWE’s continued commitment
to offshore wind. Statkraft is a very
experienced and reliable partner
and we are delighted to be working
with them to successfully realise
the Triton Knoll offshore wind farm
together.”
Olav Hetland, Statkraft’s Head of
Offshore Wind, commented: “The
project itself is blessed with ideal
characteristics for an offshore wind
farm, including shallow waters,
strong wind resource, and excellent
ground conditions. In addition,
it is in an area of seabed which
Statkraft knows very well from its
Sheringham Shoal and Dudgeon
offshore wind projects.”
RWE Innogy’s Head of Offshore
Wind Projects, Richard Sandford,
added: “This partnership is
excellent news for the future of
Triton Knoll. It underlines our
commitment to this project and our
intention to deliver the investment
and job opportunities which
should flow from the construction
and operation of the wind farm.
This partnership will not alter our
existing commitments or previous
arrangements around development
of the site and we look forward
to continuing our close working
relationships with all local partners
and stakeholders.”
Triton Knoll received a Development
Consent Order (DCO) for the offshore
array from the Secretary of State for
Energy and Climate Change in July
2013 and an application for a DCO
for the Electrical System is currently
being prepared for submission to
the Planning Inspectorate later in the
spring this year.
Once the project is constructed,
it could provide enough electricity
to meet the energy needs of up to
800,000 average UK households
annually2.
Economic benefits have already
begun to flow from the project with
over £20million already invested
in the UK during the development
process. The economic benefits
from the construction and operation
of the project will be significantly
more, creating around 1,900 UK
jobs during construction from a total
potential investment of around £3 –
£4bn.
Financial close for the project is
anticipated to take place in 2017,
with onshore construction also
expected to commence in the same
year.
PAGE 8
#twenewsStatkraft and RWE Innogy agree partnership deal for Triton Knoll
PAGE 9
NEWS
PAGE 9
Saipem wins Kashagan Field contract worth US$1.8 billion
Saipem, through its subsidiary ERSAI
Caspian Contractor LLC, has been
awarded a major new Engineering &
Construction contract for the Kashagan
field project, located in the Kazakh
waters of the Caspian Sea, valued at
approximately $1.8 billion.
The North Caspian Operating Company
(NCOC) has awarded Saipem a contract
for the construction of two 95 kilometer
pipelines, which will connect D island
in the Caspian Sea to the Karabatan
onshore plant in Kazakhstan. The scope
of work includes the engineering, the
welding materials, the conversion and
the preparation of vessels, the dredging,
the installation, the burial and the pre-
commissioning of the two pipelines.
Some of the scope will be executed with
specialized subcontractors.
The two pipelines, with a diameter
of 28 inches, are made of carbon steel,
internally cladded with a corrosion
resistant alloy layer, and will each have
an offshore length of about 65 out of the
total 95 km.
The construction will be completed by
end of 2016.
Umberto Vergine, Saipem CEO,
commented: “This is a very important
contract working for some of the most
important oil companies in the world
in a key region for Saipem. It also
represents another relevant contribution
to our backlog in this low price market
environment”.
Gamesa wins two new contracts for the supply of 260 MWGamesa, a global technology leader in
wind energy, continues to grow in India,
a strategic market in which it has firmly
established itself as one of the leading
turbine makers, having recently signed
two new agreements1 for the supply of an
aggregate 260 MW.
The first order, from Indian developer
and independent power producer (IPP)
Greenko, encompasses the supply,
installation and commissioning of 80 of
the company’s G97-2.0 MW turbines
(160 MW). More specifically, Gamesa will
install 30 turbines at Jaisalmer region, in
the state of Rajasthan, and another 50 at
Basavanabagewadi, in Karnataka. The
turbines are slated for delivery during the
first quarter of this year and the wind farms
are expected to be commissioned by June
2015. The company will also operate and
maintain all 80 turbines in the long term.
This contract is included in a new
framework agreement to commission 300
MW wind power projects in India, signed by
Gamesa and Greenko. The second phase
of 140 MW is expected to be secured
during the second quarter of the year, in
different wind farms located in the states of
Karnataka and Andhra Pradesh.
The second order, meanwhile, placed
by Indian developer CLP India, covers the
turnkey construction of a 100-MW wind
farm at Chandgargh, in the state of Madhya
Pradesh. The company, which will handle
all of the infrastructure needed to install and
operate the complex, will install 50 G97-2.0
MW turbines and also service them in the
long term. The turbines are due for delivery
during the first half of this year and the wind
farm will be commissioned in December
2015.
Both the 80 turbines which Gamesa
will install for Greenko and the 50 it will
install for CLP will be its G97-2.0 MW
Class S make, with a tower height of
104 metres, a new model specifically
designed for low wind speed sites in the
Indian market.
These two new contracts put
Gamesa’s 2014 Indian order intake at
850 MW. From January to September,
India accounted for 27% of the MW sold
by the company.
“These new order wins reinforce our
leadership position in India, a rapidly-
growing market, and evidence the
stock placed by customers in Gamesa’s
technology and experience”, according to
Ramesh Kymal, Gamesa’s Chairman and
Managing Director in India.
Almost a quarter (24%) of UK
consumers have switched gas or
electricity supplier in the last year,
according to the results of an EY
survey published today.
The survey also reveals that the
trend is likely to continue in 2015
with 22% of consumers stating
that they are likely to switch
supplier. Of those consumers that
changed supplier in 2014, more
than eight in ten (81%) would
consider switching again in the
near future.
New entrants emerge as
the winners from the appetite
amongst consumers to secure
a better deal for their energy
supply. 37% of those consumers
thinking about switching said they
would move to a new entrant.
In contrast, less than a quarter
(24%) of consumers would be
likely to switch to one of the ‘Big
6’ energy suppliers (British Gas,
SSE, Npower, EDF Energy, E. ON
UK, Scottish Power).
EY surveyed 2,000 consumers
to assess attitudes towards
switching gas and electricity
suppliers and to identify which
suppliers they would consider
choosing, and to determine what
would drive this change.
Tony Ward, Head of Power &
Utilities at EY said: “While levels
of awareness are admittedly
still relatively low among energy
consumers, the situation is
certainly improving. The increased
focus on living costs, as well
as industry and government led
campaigns have helped make
shopping around to get a better
deal an increasing priority.”
Asked what customer service
elements would most likely
cause them to decide to switch
their energy supplier, 39% of
consumers responded that
inaccurate bills would lead them
to take that decision. Unfriendly
service when calling the helpline
(16%) and long complaint
processes (12%) were also among
the top reasons that would trigger
a decision to switch.
Ward continues: “The challenge
for the industry is to invest in
ways to retain the confidence
and loyalty of its consumer base
through innovative services,
an enhanced and trouble-
free customer experience and
empowering customers to feel in
control of their energy bill.”
The survey found consistently
high numbers of consumers that
have either switched supplier or
are considering doing so across
the whole of the UK.
Consumers in the East Midlands
lead the pack with almost a third
(32%) having switched supplier
in the last year. The North East
and East Anglia (28%) as well
as London (24%) also saw high
volumes of consumers switching
to a different energy supplier. In
contrast, Wales scored the lowest
when it comes to switching with
only 17% of consumers changing
supplier last year.
Looking ahead over 35% of
Londoners are considering moving
to a different supplier for their gas
and electricity in 2015. Energy
consumers in the North West,
West Midlands (24%) and the
South West (23%) are the next
most likely to change.
Overall, new entrants are the
preferred choice for 37% of
consumers that intend to switch
compared to 24% who would
move within the ‘Big Six’.
Taking a closer look at those
who responded that they are
thinking of switching in 2015,
18-24 year olds would be most
likely to switch to a new entrant,
with over half (57%) choosing this
option. The over 55s were the
least likely to switch to one of the
‘Big 6’, with just 11% choosing
this option.
The survey also found that
when it comes to choosing a new
supplier price was the single most
important factor for consumers to
consider, with 78% highlighting
price as key. Customer service
was only considered the most
important factor by 9% of
respondents and brand was
chosen by even fewer (6%).
Ward concludes: “The industry
is now operating in a landscape
of growing customer expectations
and mainly price driven decisions.
Concerns about energy costs can
increasingly prompt consumers
to think seriously about switching
suppliers. Forward looking
providers need to take positive
action to empower customers and
consider what services they can
develop to address the needs of
the budget conscious consumer.”
PAGE 10
#twenewsAlmost a quarter of consumers switched gas or electricity supplier in 2014, EY survey reveals
PAGE 11
NEWS
PAGE 11
Oseberg Delta 2 comes on streamOn 21st February Statoil and its
partners started up production from
Oseberg Delta 2 in the North Sea.
The field’s recoverable reserves are
estimated at 77 million barrels oil
equivalent.
The field, which is tied back
to the Oseberg Field Centre, has
been developed using two subsea
templates with capacity for a total of
eight wells.
The initial phase of the plan initially
involves three oil producers and two
gas injectors.
“Delta 2 is an important element in
extending the lifetime of Oseberg. It
provides a good example of how we
can make lesser discoveries profitable
by using existing infrastructure while it
is still available,” says Arild Dybvig, vice
president for fast-track development
projects in Development & Production
Norway.
The start-up of the first well is in line
with the development plan and takes
place 38 months after the discovery
became part of the fast-track portfolio.
The total investment is slightly less
than NOK 7 billion, well below the
estimated investment cost when the
project was sanctioned.
“We’ve delivered yet another
high quality, fast-track development
according to plan and well within
budget,” says Torger Rød, senior
vice president for subsea projects
in Technology, Projects & Drilling.
Oseberg Delta 2 marks a further
development on the Delta terrace
where oil from two wells on an existing
template has been produced since
2008.
“The new development includes gas
injection that will give us a substantially
greater recovery rate.”
“There are also some good
opportunities for the further
development of the area and an
exploration well has already been
planned in the southern part of the
Delta terrace,” says Terje Gunnar
Hauge, vice president for operations
on Oseberg East.
The plan for development and
operation was submitted to the
Ministry of Petroleum and Energy on
30th May 2013.
Facts about Oseberg Delta 2• Decisiontocommenceprojectdevelopment:December2011
• PDOapprovedon10October2013
• Location:InNorthSea,14kilometressouthofOsebergFieldCentre
• Volumes:77millionbarrelsofoilequivalent(32mboeoiland45mboegas) • Depth:Approx.100metres,3,100metresunderseabed
• Estimatedlifetime:20years
• Partners:Statoil (operator) (49.3%), ConocoPhillips (2.4%), Petoro (33.6%) and Total (14.7%)
The Department of the Interior (DOI),
acting through the U.S. Bureau of
Safety and Environmental Enforcement
(BSEE) and the Bureau of Ocean
Energy Management (BOEM), on Friday
issued proposed regulations for future
exploratory drilling activities on the U.S.
Arctic Outer Continental Shelf (OCS).
The proposed Arctic-specific
regulations focus solely on offshore
exploration drilling operations within the
Beaufort Sea and Chukchi Sea Planning
Areas. The Department of Interior says
that the proposed regulations codify and
further develop current Arctic-specific
operational standards that seek to
ensure that operators take the necessary
steps to plan through all phases of
offshore exploration in the Arctic,
including mobilization, drilling, maritime
transport and emergency response, and
conduct safe drilling operations.
“The Arctic has substantial oil and
gas potential, and the U.S. has a
longstanding interest in the orderly
development of these resources, which
includes establishing high standards for
the protection of this critical ecosystem,
the surrounding communities, and the
subsistence needs and cultural traditions
of Alaska Natives,” said Secretary of the
Interior Sally Jewell. “These proposed
regulations issued today extend the
Administration’s thoughtful approach
to balanced oil and gas exploration in
the Arctic, and are designed to ensure
that offshore exploratory activities will
continue to be subject to the highest
safety standards.”
The proposed regulations codify
requirements that all Arctic offshore
operators and their contractors are
appropriately prepared for Arctic
conditions and that operators have
developed an integrated operations plan
that details all phases of the exploration
program for purposes of advance
planning and risk assessment.
A goal of the proposed rule is to
identify possible vulnerabilities early in
the planning process so that corrections
could be made in order to decrease
the possibility of an incident occurring.
The requirements in the proposed rule
are also designed to ensure that those
plans would be executed in a safe and
environmentally protective manner
despite the challenges presented by the
Arctic.
The proposed rule also would
require operators to submit region-
specific oil spill response plans, have
prompt access to source control and
containment equipment, and have
available a separate relief rig to timely
drill a relief well in the event of a loss
of well control. The proposed rule
continues to allow for technological
innovation, as long as the operator can
demonstrate that the level of its safety
and environmental performance satisfies
the standards set forth in the proposed
rule, DOI has said in the statement.
“This proposed rule is designed
to ensure safe energy exploration in
unforgiving Arctic conditions,” said
Bureau of Safety and Environmental
Enforcement Director Brian Salerno. “It
builds upon our existing Arctic-specific
standards and experience with previous
operations offshore Alaska, encourages
further development of technology, and
includes rigorous safeguards to protect
the fragile environment.”
PAGE 12
#twenewsDOI proposes new rules for offshore drilling on U.S. Arctic shelf
PAGE 13
NEWS
PAGE 13
Siemens awarded order in Malta worth EUR 175 millionSiemens has been awarded an
order by Electrogas Malta for
the turnkey construction of a
200 megawatt (MW) natural-
gas-fired combined cycle power
plant (CCPP). The order value for
Siemens is about EUR 175 million.
The CCPP is part of a program of
the government of Malta to phase
out the use of heavy fuel oil and
switch to the use of natural gas for
power production. Besides the new
power plant, Electrogas Malta will
provide a floating storage unit for
LNG and a regasification plant to
provide the natural gas fuel required
both for the new CCPP and for an
existing reciprocating engine power
plant located at the same site,
which will be converted to natural
gas.
The new CCPP will be located at
the existing Delimara power station
near the city of Marsaxlokk, in
southeastern Malta. It will generate
enough power to meet around
50 percent of Malta’s electricity
demand, and will operate at high
efficiency with low emissions,
also at part loads. When this
new plant takes up operation,
the level of air pollutants as well
as fuel consumption for overall
power production in Malta will
be considerably reduced. Initial
operation is scheduled for the
summer of 2016.
“The project is highly driven
by the need for reliable, low cost
generation and cleaner air. Siemens’
high performance equipment, which
operates with high efficiency and
low emissions, even in part load
operation, has proven to be the
solution that best fits our needs.
When the new plant is in operation,
the levels of air pollutants and rate
of fuel consumption for overall
power production in Malta will be
materially reduced considerably,”
said Michael Kunz, Project
Coordinator, at Electrogas Malta.
The new power plant is of
Siemens type SCC-800 3x1C
which is based on three SGT-
800 gas turbines, three HRSGs
and one SST-900 steam turbine.
The Siemens SGT-800 industrial
gas turbine combines a robust,
long service-life design with high
efficiency and low emissions.
Hence, the turbine is qualified
for gas turbine and combined
cycle applications in simple cycle
and cogeneration plants in the
industry, in refineries and in the oil
and gas industry. More than 250
turbines of this series have been
sold worldwide and this fleet has
accumulated more than three million
equivalent operating hours (EOH).
For optimization of performance
at high ambient air temperatures,
the gas turbines will be equipped
with an inlet air cooling system
which will draw its chilling power
from the regasification process of
the LNG
Today, Forbes estimates that
Folorunso Alakija is worth more
than US$2.6 billion, placing this
highly motivated entrepreneur as
the second richest lady in Africa
and the wealthiest black woman
in the world. And not surprisingly,
given her interesting background,
Alakija has even overtaken Oprah
Winfrey in the wealth stakes.
Sent over to England to study,
Alakija remained in the capital,
studying at American College in
London and the Central School
of Fashion, before moving back
to Nigeria to work as a secretary
for First National Bank of Chicago
amongst others.
Living by her motto – ‘Whatever
is worth doing at all is worth doing
well’ - It seems the talents of Alakija
for fashion and design persevered
and on returning to Nigeria in
1985, she started her own fashion
house, Supreme Stitches, which
was renamed The Rose Of Sharon
House of Fashion in 1996. Catering
for Nigeria’s elite, including
the former First Lady, Maryam
Babangida, Supreme Stitches soon
became a recognised name and
Alakija won Best Designer in 1986,
just a year after the company was
established.
From fashion to fuel, this
month’s entrepreneur has had a
rather successful run within the
energy industry too, acquiring an
Oil Prospecting License in 1993
for Famfa Oil. The Agbami Field,
located 70 miles offshore Nigeria, it
is one of the first major discoveries
in the deep water Gulf of Guinea.
Situated in water depths between
1,280 and 1,650 meters, the OPL
216 – later converted to OML 127
– is one of the most lucrative and
prolific blocks in Nigeria.
Executive Vice Chairman of
Famfa Oil Limited, Alakija went
into a joint venture agreement
in 1996 with Star Deep Water
Petroleum Ltd – a wholly owned
subsidiary of Texaco – giving away
40% stake and appointing the
company as technical advisors
for the exploration of the license.
8% of this stake was later sold to
Petrobras, with Alakija still retaining
60% of the company today.
The OML 127 oil field had its first
appraisal well confirmed in 2000
to have recoverable reserves in
excess of one billion barrels of oil
equivalent.
Living in Lagos, Nigeria, with
her husband of 35 years, Alakija
also has an extensive real estate
portfolio which is estimated at
US$100 million. It was reported last
year that she purchased a property
at One Hyde Park for US$102
million - one of, if not the most
sought after location in London.
Owner of several luxury
apartments and a private plane,
Alakija is also the Executive Vice
Chairman of Dayspring Property
PAGE 14
Oil tycoon, fashion designer and philanthropist
“Whatever is worth doing at all is worth doing well” – these are the words of this month’s deserving entrepreneur, Folorunso Alakija. Acquiring an oil license for one of the most lucrative oil blocks in Nigeria, starting her own high-end fashion house and founding The Rose of Sharon Foundation, to name but a few achievements, Alakija has unreservedly earned her position as the wealthiest black woman in the world today.
Editorial: Harriet Pattison
Development Company Limited,
a real estate company with
investments in different countries
around the world.
Not stopping at real estate or
fashion, Alakija is also the first
woman in the print industry with
the launch of Digital Reality Print
Limited in 2006.
With an infallible desire to help
the less-fortunate, Alakija set up
The Rose of Sharon Foundation
(ROSF) on May 23rd 2008, which
helps to provide moral and financial
support to widows and orphans.
A voluntary, non-profit, faith based
and non-governmental Organisation
based in Lagos state, Nigeria the
ROSF hopes to ease the everyday
burdens that widows and orphans
experience and draws on the
strong community network.
In July last year, Alakija
donated US$4.5 million to the
Victim’s Support Fund, helping to
provide relief to those affected by
insurgencies in Nigeria over the last
few years, in an initiative set up by
Nigerian President, Goodluck Ebele
Jonathan.
Through her company, Alakija
has given scholarships to almost
9,000 medical and engineering
students globally and has donated
21 chest clinics for the treatment
of tuberculosis (TB) in 21 different
states in Nigeria and 21 science
laboratories - including nine in
the Niger Delta region and Lagos
State).
Despite not having a university
degree, Alakija has become a
hugely successful businesswoman
and entrepreneur and is now keen
to press the importance of sheer
hard work and determination to
the younger generations. Visiting
university students in Lagos
last year during a ceremony to
mark the 2014 UN International
Youth’s Day, Alakija challenged
the students and made it clear
that today, a university degree
is an added advantage towards
success.
“So I am 63 and I am not yet
done. So what is your excuse?
I never went to a University and
I am proud to say so because I
don’t think I have done too badly.
“You do not have to have a
university education to be able
to make it so count yourselves
privileged to have that education
as part of the feather in your cap.
It’s essential to draw up a ‘things
to do’ list on a daily basis and
set priorities in executing them,
making sure that any unfinished
task gets posted to the next day’s
list.”
With what seems an
endless list of successes and
accomplishments, Alakija, at 63,
is not resting on her laurels just
yet, becoming a well-deserved
role model for young students all
over the world
© Airbus S.A.S. 2011
PAGE 15
ENTREPRENEUR
PAGE 16
Editorial: Ajuanne Payne
A technically brilliant collaboration
Here at Total World Energy, we have
covered exciting innovations across
varied areas of the energy industry.
In our January issue we looked at
the Solaroad, a pilot project aimed at
testing the technology and potential
for power-producing roadways.
On the other end of the spectrum,
December saw us cover the
technological advances being made
at Schlumberger with their StingBlade
– a faster, more efficient and more
cost effective drill bit for the oil and
gas sector.
Increased attention globally is being
drawn to the need for technological
advances in the energy industry that
are not only economically viable, but
efficient and environmentally friendly
also. Just this month, a group of
high profile CEO’s including Richard
Branson of Virgin and Paul Polman
of Unilever called for companies and
governments to aim for complete
carbon neutrality by 2050. With
targets such as these to reach
worldwide, it is innovations like the
SolarLeaf that are bringing the energy
industry one step closer to bringing
about the changes that are needed.
The SolarLeaf façade pilot project
was completed in 2013 and unveiled
at the International Building Exhibition
(IBA) in Hamburg. It is the world’s first
bio-reactor to be incorporated in to a
building structure, using microalgae
as a means to produce renewable
energy in the form of biomass and
heat.
The process of photosynthesis
in the microalgae has the desirable
effect of absorbing CO2 – a coup
SolarLeaf - the world’s first bio-reactive façade and a pioneering design for a ‘Passivhaus’ that produces both heat and biomass, while also eliminating CO2. Designed by Splitterwerk Architects, the project is the result of collaboration between Arup, Strategic Science Consult of Germany (SSC) and Colt International who are responsible for the design and development of the façade itself. The project throws up exciting possibilities for further innovations and takes steps towards a future of sustainable infrastructure.
INNOvATION
© Airbus S.A.S. 2011
PAGE 17
©Colt International, Arup, SSC GmbH
INNOvATION
for the pilot project and an exciting
precedent for future development.
Because of this, the BIQ house
is virtually carbon-neutral, as CO2
emissions are reduced by six tons
per annum, in addition to the bio-
chemical reactions in the panels
actually eliminating 2.5 tons of CO2
per annum also.
HOW DID IT START?Solarleaf is the result of a collaborative
effort between architects, Spittelwerk,
consulting engineers Arup, Strategic
Science Consult (SSC) Germany and
Colt. The idea has its conception
at Spittelwerk architects back in
2009, but required specific technical
expertise to realise.
Jan Wurm of Arup talks about how
the project began: “We were asked
by architects Spittelwerk to join their
design team. We came up with the
idea of getting photo bio-reactors
integrated into the exterior skin of
the building. There was discussion
as to whether that was feasible and
at that moment we could identify
SSC Hamburg. Mr. Kerner, he said –
forget it, don’t put it on the building
because we’d produce so much heat
and we’d need to cool it down, it’s
much too costly. But then if you think
about having that on the building you
actually need the heat. So you have
the demand of heat and that’s where
the synergy comes in and that’s the
exciting bit.”
Dr Kerner goes in to more detail
in the same interview, saying: “He
called me three days later and said
– you have to have in mind that if
you have the façade you do not only
cultivate biomass but you have the
functionalities of heat production,
you have the functionalities of noise
reduction, you have insulation and
so on and then I was convinced I
said okay I will contribute with my
technology.”
It was after this that Wurm
approached Lukas Verlage, Managing
Director of Colt International GmbH,
in hopes that he would be able to
contribute to the system for the house.
“I picked up the phone and he
told me that he plans a bio-reactor in
Hamburg and I was afraid.” Verlage
laughs as he recounts his first
conversation with Jan Wurm. “What’s
a bioreactor? And I saw ‘war’ and
said; oh no, we are not involved in
that! But, he told me it’s something
to do with energy and they need a
partner for the façade. After that I was
convinced that we will achieve this
goal and today we are here and we
have achieved something and I think
this is a very big step for the future.”
THE SCIENCE BEHIND THE FAÇADEVertical glass louvres, measuring 2.5m
by 0.7m make up the double –skin
façade and each of the 129 bio-reactor
panels has a capacity of 24 litres and
covers an area of 200m² on two sides
of the BIQ house.
The cavities in the louvres are filled
with water which has been infused
with nutrients that convert CO2 and
sunlight to organic matter through
photosynthesis. The microscopically
small algae – or microalgae, are the
PAGE 18
result of this reaction and also the
reason for the bright green colour
inside the panels. It is this bio-chemical
reaction that causes the water to heat
up – pretty much your typical solar-
thermal effects.
“The SolarLeaf is a photo bio-
reactor and that includes an element
to cultivate micro-algae,” explains
Jan Wurm. “It’s also a solar-thermal
collector, so it generates heat and
on top of that the solar transmission
is changing in relation to the algae
content. In that way it’s also a shading
device.
“So, in principle we are cultivating
plants – in this case, microorganisms,
algae - in a controlled environment
at the façade of the building. We’re
harvesting the daylight and we
are collecting carbon – carbon
emissions. With that we can boost the
photosynthesis on the façade and we
generate biomass on the one side, and
solar-thermal heat on the other.
“The heat, we use directly at the
building. So, we feed that renewable
energy source into the building and we
harvest the biomass and use either as a
fuel or for selling it to the farming or the
food industry,” explains Wurm.
WAS THE PROJECT A SUCCESS?From 2020 onwards, zero energy
houses will be obligatory in Germany
and some other European countries
– every new building will need to
produce the same amount of energy
as it consumes. The Solarleaf pilot is
an example of the kind of innovative
thinking that will make that target
achievable.
The SolarLeaf project has gained
recognition for its pioneering design
and has recently won a Zumtobel
award for ‘Applied Innovation of the
Year’. The award “recognises the
exceptional sense of collaboration,
crossing the fields of design, building
engineering” and is an affirmation
of the hard work put in by the
collaborators.
Similarly to the Solaroad pilot
project we covered in our January
issue, it seems collaboration is
definitely key. Bringing together
different disciplines in order to come
up with new solutions allows the
brains of the energy industry to do
things differently and think outside of
the box.
Time will tell how we can apply the
technology developed for SolarLeaf in
the future. With intermediate results
looking very promising and the system
producing a net energy gain, the
next step is to see how this could be
applied on a much larger scale and to
see just how lucrative the biomass by-
product will be as an added financial
benefit for the system.
Jan Wurm goes further, saying
the collaborators “really pushed
the borders of what is possible.
We got out of our box, developed
a new system. And in that way I
think we do shape a better world,
we do develop a technology
which is relevant for tomorrow
and we’re excited to see what will
happen, how it will be adopted
by architects and engineers in the
near future.”
INNOvATION
© Airbus S.A.S. 2011
PAGE 19
©Colt International, Arup, SSC GmbH
PAGE 20
Energy for lifeEditorial: Harriet Pattison
The leading Greek Refining & Marketing Company, Hellenic Petroleum SA, which spans a history of six decades, today operates three of the four refineries in Greece. With the upgrade of the Elefsina refinery and its recent bid for two onshore lease block areas in Western Greece, Total World Energy speaks to Gerasimos Stanitsas, Director of Corporate Communications, to find out what the future holds for this leading energy group in South East Europe…
With a contract for Greece’s very
first oil refinery signed in 1955,
construction of the Aspropyrgos
refinery started in 1956. Just
two years later, the new refinery
was inaugurated and Hellenic
Petroleum Group (HELPE) was
formed four decades later in
1998. Throughout its 60 year
history, the company has seen
many changes and developments
and experienced impressive
growth.
Today, the distribution of
the share capital of the Group
sees Pan European Oil and
Industrial Holdings SA with
42.6% share, Hellenic Republic
Asset Development Fund (35.5%),
Institutional Greek Investors
(7.9%), Institutional Foreign
Investors (6%) and Private Funds
(8%).
Total World Energy speaks
to Gerasimos Stanitsas, Group
Communications Manager at
Hellenic Petroleum who explains
the Group is now present in
seven countries with activities
extending across numerous
energy sectors: “We are an
integrated energy group,
spanning from exploration &
production, refining, supply and
trading, domestic marketing,
international marketing,
petrochemicals, gas and power,
renewables and engineering.
“We have refineries in
Aspropyrgos, Elefsina and
Thessaloniki, covering the whole
territory of Greece from South to
North. Our total refining capacity
is 345 kbpd (thousand barrels
per day). The three refineries
operate as a hub and they run
complementary to each other,
exchanging products so we can
maximise profits and optimise
our operations,” Mr Stanitsas
explains.
A LEADING ENERGY GROUPLooking at the figures from 2013
– with the 2014 annual results
not yet available – the numerous
sectors Hellenic Petroleum is
involved in shows an increasing
and positive market share.
“In Exploration and Production,
we currently have assets in
Egypt, Montenegro and Greece.
We have recently participated in
the 2nd round of Greece areas,
which was concluded only last
week, we have bid for two out
of the three areas that were
available so we hope we get
them. Last year we were awarded
one area in Western Patraikos
Gulf, along with our partners
Edison & Petroceltic, and we
are proceeding according to our
plan.
“In Refining, Supply and
Trading, we have the three
refineries – Aspropyrgos, Elefsina
and Thessaloniki - with a total
capacity of 16 million tons per
year. The Nelson Complexity
Index (NCI) – a measure of the
secondary conversion capacity
of a petroleum refinery relative to
the primary distillation capacity -
of the three refineries is 9.6, so
it’s quite advanced and we have
a refining market share of 65%.
We also own tanks with a total
capacity of seven million cubic
meters.
HEllENIC PETROlEUM SA
PAGE 21
“In Refining, Supply and Trading, we have the three refineries – Aspropyrgos, Elefsina and Thessaloniki - with a total capacity of 16 million tons per year”
Continues on page 25...
PAGE 20
ACTIVITIES
•Surface protection - cleaning and steel preparation•Blasting / Water-jet / Ultra high pressure Water blasting •Coatings •Scaffolding - industry / energy / construction•Insulation - thermal / cold / acoustic / underground insulation •Passive fi re protection - Cementitius fi re proofi ng / intumescent fi re proofi ng•Repairs of metal elements - Construction / erection / repairs
TECHNICAL COMPANY - TECHNICAL WORKS
OUR COMPANY
GENKAT S.A. was established with the focus on the anticorrosive protection of metal surfaces, heat insulation, refining and petroleum products and scaffolding according to the Greek and national models (SSPC, BS, SIS, STST, AP, ELOT e.t.c.). It applies all the existing methods and is staffed from personnel with many years of experience in insulation works, paintworks and sandblasting.
PAGE 21
Contact us 324 Thivon Avenue, GR 12241
Aigaleo, Athens, GREECEPhone: + 30 210 9585190
Fax: + 30 210 9585160Email: [email protected]
Website: www.genkat.gr
OUR PRIME CLIENTS:
•Hellenic Petroleum S.A (Hel.pe S.A)•Motor Oil Hellas•EKO Refinery•DEI / PPC•Service Of Civil Aviation•Greek Broadcasting Corporation Television ( ERT )•Martial Navy•Technipetrol Spa•Aktor SA•J&P Hellas•Elliniki Technodomiki
•Gek S.A.•Ekme S.A.•Biotek S.A.•Neokat S.A.•Metka S.A.•Terna S.A.•Technical Union – Athina S.A.•Tanko S.A.•Impregilo Hellas•Cimolai Spa
GENKAT S.A. was established with the objective to provide professional services, anticorrosive protection of metal surfaces, insulation, passive fire protection & scaffoldings according to the Greek and National models (SSPC, BS, SIS, STST , AP, ELOT e.t.c.). It applies all the existing methods, being staffed by personnel with years of experience and continuous training in surface protection, blasting, painting scaffolding & insulation works.
Our main Activities are the following:
Surface protection - cleaning and steel preparationSteel preparation / blasting / water jet / ultra-high pressure water jetCoatings protecting against rust, oxidation and corrosion Storage tanks / tank coatings / steel structures / pipelines / equipment / non-slip films / scaffolding Industry / energy / constructionInsulation Thermal/ cold /acoustic / underground Insulation Passive fire protectionCementitius fire proofing / intumescent fire proofingRepairs of metal elements / construction / erection / repairs Steel structure - Tubes - Tanks and other equipmentCleanings - chemical cleanings / gas free / deposition / pumping
The policy of our company, GENKAT S.A. is the execution of the projects that it has taken on in a way so that it can satisfy the demands of the clients as they are being defined at the technical specifications, according to the contract that has been compiled and always in the defined time.The immediate and continuous contact with the client, the timely effective reaction if there are by chance any complaints from our client is a fixed policy of our company.For the realization of this policy the company uses the most modern equipment and is determined to invest continuously for the continuous modernization and enrichment of the company.Believing that all the above are dependent in a big way on the quality of the human power that work there, the company gives special empha-sis to the continuous education of the personnel, investing for this purpose using all the necessary finances.Genkat S.A. is on a steady upward course in the construction sector that possesses experience and know-how in the following fields:
• Refineries• Shut down / Turn around • Electricity Power Plants• Tank farms• Industrial – building installations• Refineries• Natural gas projects• Chemical and petrochemical industries
Genkat sa is one of the leading companies in Greece in industrial surface preparation, insulation and Scaffolding providing services to various refinery, industries, energy plants, chemical and petrochemical industries etc.We believe in establishing long term business relationships with our clients by providing them with nothing short of the best. This approach of ours has helped us in meeting their requirements, offering complete solutions in terms of quality goods with complete adherence to timely delivery.
We are constantly focused on innovating. We believe in the simple not the complex. We believe that we need to own and control the primary technologies behind the products, and participate only in markets where we can make a significant contribution.
Our Prime Clients:
HELLENIC PETROLEUM S.A (HEL.PE S.A )MOTOR OIL HELLASEKO REFINERYDEI / PPCSERVICE OF CIVIL AVIATIONGREEK BROADCASTING CORPORATION TELEVISION ( ERT )MARTIAL NAVYTECHNIPETROL SPAAKTOR SAJ&P HELLASELLINIKI TECHNODOMIKI
GEK S.A.EKME S.A.BIOTEK S.A.NEOKAT S.A.METKA S.A.TERNA S.A.TECHNICAL UNION – ATHINA S.A.TANKO S.A.IMPREGILO HELLASCIMOLAI SPA
“Looking at our Domestic
Marketing activities, we currently operate
1,800 petrol stations in Greece with a
30% market share. Our sales volume
currently totals up to three million tons
per annum.
“If we extend into international
marketing, we are present in
Cyprus, Montenegro, Serbia,
Bulgaria and the Former Yugoslav
Republic of Macedonia, with 280
petrol stations and a sales volume
of one million tons per annum.”
The only petrochemicals
producer in Greece, Mr Stanitsas
explains that one of its key
products is Polypropylene which
uses Basel technology. Propylene,
the raw material for polypropylene
production is produced in the
Aspropyrgos refinery and then
transported to the Thessaloniki
plant.
“We have a factory up North
that produces BOPP (Biaxially
Oriented Polypropylene),” explains
Mr Stanitsas. “DIAXON PLASTIC
PACKAGING MATERIALS SA, a
subsidiary of HELPE, is the only
producer in Greece of BOPP
film, used in the food packaging
industry. More than 50% of our
production is then exported
to Iberian, Italian and Turkish
markets.
“In the Power and Gas market
we have a joint venture with
the Italian company Edison,
Elpedison, which operates two
CCGT plants, fed by natural gas,
with a total production capacity
of 810MW. We hold a 35% stake
in DEPA Group, (Public Gas
Corporation of Greece), the main
natural gas supply company in
Greece with sales volumes of 3.8
billion cubic meters per annum.
“Then lastly, in Renewables, we
have various projects in different
stages of development, which
amount to more than 100MW and
“There are many retail companies operating in Greece, but I think we are amongst the most well received and well placed so we have a competitive advantage there as well”
HEllENIC PETROlEUM SA
PAGE 25
...Continued from page 21
PAGE 26
in the Engineering sector, we have
a company called ASPROFOS
SA which deals with technical
studies, engineering, consulting
and project management
services,” explains Mr Stanitsas.
A COMPETITIVE ADVANTAGEWith four refineries operating in
such a small country, competition
is bound to be present, not to
mention the continuing and
seemingly long-lasting effects being
felt by the economic crisis. With
all four refineries concentrating
more on exports, Mr Stanitsas
explains that Hellenic Petroleum
concentrates on remaining
competitive, not only in Greece but
in a broader area too.
And with an increasing number
of refineries across Europe closing
down, he explains: “We are doing
our best so that we will not be
among those refineries; so far
we have made it and we have a
good chance of maintaining this.
Therefore, we are now focusing on
being competitive through a series
of actions: reducing our operating
costs, optimising our production
and methods, operating the
three refineries as a hub, adding
synergies and advantages to each
one separately and all together.
“There are many retail companies
operating in Greece, but I think we
are amongst the most well received
and well placed, so we have a
competitive advantage there as
well,” he explains.
Before the economic crisis,
a total of 8,000 petrol stations
were in operation across Greece,
this number, although reduced
significantly, is still a high ratio for
the country at 5,500.
“We are continuously developing
new products and lately we have
been focusing on operating our
own petrol stations so that we
have a greater control, can invest
more in them and use them to offer
more advanced products to our
clientele,” Mr Stanitsas adds.
THE ELEFSINA UPGRADESuccessfully completing a five
year investment plan totalling
EUR€3 billion, Mr Stanitsas
explains that the Group’s most
important project to date was the
upgrade of the Elefsina refinery in
2012. With the changing trends
in fuel consumption in Europe
and diesel shortages in the
European market, an investment
of EUR€1.42 billion for the
refinery, originally built in 1973,
transformed it into a “state-of-the-
art, very modern and very efficient
refinery.” Said to be the most
competitive refinery operating
within the Mediterranean region
today, Elefsina stands as the
biggest industrial project in
Greece in the last few years.
The main purpose of the
upgrade was to maximise
diesel production, eliminate
fuel oil production and improve
the environmental records.
Maintaining its existing production
capacity of 100,000 bpd, the
refinery includes storage areas for
3.35t of crude oil and products, a
HEllENIC PETROlEUM SA
PAGE 27KX_ABC Factors_Corporate_88x125.indd 1 3/3/15 2:22 PM
private
port with
a capacity to berth 5 ships for
both the loading and unloading
petroleum products and is
connected by pipeline to other
key facilities of the Group.
ARTA-PREVEZA AND NW PELOPONNESE BLOCKSEarlier this month, Hellenic
Petroleum submitted an offer for two
out of the three onshore lease block
areas in Western Greece, Arta-
Preveza and NW Peloponnese.
“There are apparent benefits if
our exploration operations become
successful for the company and for
the country,” explains Mr Stanitsas.
“Up until now Greece has had a
limited production of indigenous oil.
There are many bright prospects
regarding new areas and we have
already been awarded the W.
Patraikos lease where we have
commenced exploration operations.
“We hope we will be successful
in those bids and of course, we are
looking
forward
to the new
round to be
initiated soon
by the government
regarding the 20 offshore
areas in the Ionian Sea and
Southern Crete and from what we
have seen by analysing the existing
data, there could be prospects there
as well,” Mr Stanitsas adds.
Hellenic Petroleum is in a good
position with a long and fruitful
history within the exploration and
production sector and a long line of
experienced personnel – “We have
been involved in this area since the
very beginning, from the late 70’s,
early 80’s.
“We have inherited all the
personnel and the know-how of
the former state company which
was dealing with the exploration
and production in Greece, so
we think we are an incumbent
player well placed for a successful
development of any oil field, if there
is oil to find,” explains Mr Stanitsas.
KEEPING THE BALANCEThe Group’s responsibility towards
the environment and maintaining
sustainability is dealt with the
upmost respect where possible, Mr
Stanitsas explains: “We implement
a very concise and well organised
corporate social responsibility
program, we are very sensitive to
the needs of the local community
where we operate.
“Regarding the developments
towards a greener energy
environment, there is a very sensitive
balance and of course, we always
opt for a greener environment but
we have to be realistic because
modern societies need energy.
The regulatory environment should
be organized in such a way that it
will not deregulate the industry or
stop it from operating, so we have
to find the right balance between
preserving the environment and
developing the industry and society.
“We participate in all the
corresponding European and
International bodies - like the
European Petroleum Refiners
Association and FuelsEurope –
so we make an effort to try and
establish that sustainable balance,”
adds Mr Stanitsas.
With the effects of the
economic crisis sti l l l ingering, Mr
Stanitsas explains the future is
one of rebuilding and promise.
“There is turmoil in the area
regarding the sources of crude
oil and economies of consumer
countries,” he explains. “So the
future is survival and the next
couple of years is transformation
and to be an even more efficient
and competitive group.
“In the end we have to reach
our target for sustainable
development, so we can develop
and profit but not on the back of
society and the environment – so
we are looking for the optimum
balance and harmonious
coexistence between those
participators,” Mr Stanitsas
concludes
PAGE 28
HEllENIC PETROlEUM SA
PAGE 29
PAGE 30
Shoring Up the Energy SupplyEditorial: Tim Hands
Nederlandse Aardolie Maatschappij (NAM) began its exploration and production of oil and gas, both offshore and onshore in the Netherlands, in 1947. Since this time, it has honed its main objectives of sustaining production from existing fields, exploring for and developing new fields, and obtaining more gas from existing fields through a continuous policy of using innovative techniques.
Headquartered in Assen, in the
Netherlands, NAM goes about
its core business of exploring
for and producing oil and gas,
both on land and offshore, in a
safe, sustainable and eff icient
way. A company with authentic
and proven Dutch roots, NAM
is today the leading natural gas
producer in the Netherlands,
with annual production in the
region of 59.6 bil l ion m³, a f igure
accounting for around 75%
of the total Dutch demand for
natural gas.
Continuous innovation
ensures that both the cost and
footprint of its operations can
constantly be reduced and
allows a better understanding
of the subsurface, leading to
effective use of its existing
infrastructure when producing
new fields or optimising existing
production. Of al l of these,
NAM’s Groningen field accounts
for roughly 70% of its gas
production, with the remaining
30% coming from these various
smaller f ields elsewhere on the
Dutch mainland and in the North
Sea. NAM is also a signif icant
producer of oi l, and accounts
for one fifth of that which is
produced in the Netherlands.
The foundations of the
company were laid on
September 19, 1947, fol lowing
the discovery in 1943 by
Exploratie Nederland, a Shell
company, of an oil f ield near
Schoonebeek, the development
of which required Shell and Esso
to form a joint venture: what
we know today as Nederlandse
Aardolie Maatschappij.
Its f irst natural gas discovery
came in Coevorden in 1948,
representing the first of its kind
in the Netherlands to date.
Then came the discovery, just
over a decade on in 1959, of
the revered Groningen gas
field near Slochteren - one of
the largest in the world, and
with original producible gas
reserves of around 2,800 bil l ion
m³. It was this discovery which
also gave rise to offshore gas
exploration and production, and
in 1961 NAM became the first
company in Western Europe
to dri l l for gas in the North
Sea. It has become clear that
the Netherlands accounts for
some 56% of al l natural gas
reserves in the European Union
and thus plays a key role in the
production and transport of
natural gas.
THE GRONINGEN FIELDOne of the world’s largest gas
fields, the Groningen field has a
surface area of 900 kilometres
squared, and a total production
volume of 2,800 bil l ion m³.
Historically the field has been
the site of 300 wells, dri l led
across 20 sites, and with the
volume of gas produced to date
standing at 2,020 bil l ion m³,
production is estimated to last
for another 50 years.
Its discovery in the porous
Rotliegend sandstone formation
came in July 1959, after two
previous unsuccessful wells had
been commissioned to search
for oil and gas. The field started
production in 1963 and initially
had the capabil it ies to produce
around 100 bil l ion cubic meters
per year in the first decade
of production, a figure which
gradually fell to around 35 bil l ion
cubic meters annually in order
to conserve the gas reserves.
The gas field plays a crucial
role in ensuring that revenues
in the country remain healthy,
but a growing consensus exists
among all parties – and this
NEdERlANdSE AARdOlIE MAATSCHAPPIj
PAGE 31
“We have long-term contracts with other countries, and that’s also an important point for us”
includes
gas companies
themselves – that the process
of gas extraction increases the
risk of an earthquake, giving
rise to some significant and
polarising around its continued
employment. Among the
thousands of inhabitants who
have to cope with the effects of
l iving in the vicinity of the largest
gas field in Europe – around
60,000 in number – at least 60%
have been affected, resulting
in mounting pressure on the
government to reduce the extent
of the extractions taking place at
this site.
There is a real and increasingly
polarising conflict here, however,
due mainly to the sheer
importance of the gas which
this site provides, as Economics
Minister Henk Kamp explains:
“Almost all the people heat their
houses with Groningen gas and
they
cook
their
meals with
Groningen
gas. It’s also
important because of
the budget of our government.”
These are two of the key
considerations which have led
the scientif ic recommendations
to scale-back the extent of the
explorations to be rejected,
while as Kamp adds: “We have
long-term contracts with other
countries, and that’s also an
important point for us.”
NAM head Bart van de
Leemput, summed up the issue
neatly to newspaper NRC: “If
you realise the Groningen gas
fields wil l sti l l supply us for
50 more years, then there wil l
be more and possibly more
severe quakes caused by our
gas extraction, but in 20 years’
time we expect there wil l be
fewer.” For the moment, these
earthquakes are an extremely
undesired but apparently
unavoidable side-effect of what
is at present, an invaluable
process of extraction.
Clearly, there is considerable
tension here between the need
to maintain such a historically
strong energy supply, and the
overriding responsibil ity to
protect the interests and well-
being of the country’s populace:
reduced gas extraction cuts
the risk of tremors, certainly,
but in turn reduces its huge
financial significance. The State
Supervision of Mines has stated
that the production level at
Groningen should be cut back
to 30 bcm to avoid the risk of
more severe quakes, and, while
it would be technically possible
to do so and sti l l meet domestic
demand, the ministry opted for
a policy whereby production in
2014 and 2015 would be at 42.5
bcm, and 40 bcm in 2016.
INNOVATION AND UNDERSTANDINGStil l, it is imperative that NAM
uti l ises its policy of innovation
to seek new ways to ensure a
continued supply, and central to
this is actively exploring for new
fields and applying innovative
techniques to recover more
gas from its existing fields in
the Netherlands. The Dutch
government’s ‘small f ields
policy’ has already helped
to spare the reserves at the
Groningen gas field since 1974,
whereby dozens of gas fields
have been added to the Dutch
gas reserves to capital ise on
its own natural gas reserves to
the maximum extent possible
and to preserve the Groningen
gas field as a strategic reserve.
NAM has an extremely good
understanding of the Dutch
subsurface, enabling it to
continuously f ind and produce
new fields to secure the Dutch
PAGE 32
URUK ENGINEERING & CONTRACTING SERvICES
PAGE 33
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Stork’s services are tailored to help optimise performance by maintaining, repairing, modifying
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energy supply, with its highly
modern production facil it ies
designed to have the minimal
impact on the environment.
The redevelopment of the
Schoonebeke oil f ield, the
largest in North-Western Europe,
began in January 2009 and
comprised 18 new oil extraction
locations combined with 73 new
wells. NAM has been able to
showcase its rel iance on new
technologies to great effect
in this project, producing oil
again through a combination
of horizontal wells and low-
pressure steam injection. As
horizontal wells have a much
greater contact with the oil-
bearing rock stratum, more oil
can be pumped up from each
well.
Th is part icu lar o i l is th ick
and v iscous and conta ins
a large quant i ty of paraff in,
which sol id i f ies at lower
temperatures and must be
l iquef ied before the o i l can
be pumped up, necessi tat ing
steam. Product ion began at
the o i l f ie ld, which straddles
the Dutch-German border, in
January 2011, and wi l l grow
to around 20,000 barre ls per
day, hav ing produced around
250 mi l l ion barre ls of o i l before
being shut down through i ts
inabi l i ty to cover operat ing
costs. Exact ly the r ight
combinat ion of technologies
were required to make the
remain ing o i l worth pursuing,
which NAM and i ts partner
Energie Beheer Neder land
bel ieved they had put together
late in 2007. NAM made
best use of new and ex ist ing
inf rastructure to manage the
impact of i ts operat ions - a
d isused 17-k i lometre gas
p ipel ine has been converted
to carry waste water f rom the
process to depleted gas f ie lds
for permanent storage, whi le
NAM wi l l use another ex ist ing
p ipel ine to help del iver the
o i l to a ref inery across the
German border nearby.
State-of- the-art underground
gas storage fac i l i t ies in
depleted gas f ie lds at
Langelo and Gr i jpskerk wi l l
too p lay s igni f icant ro les in
safeguarding energy supply
in the Nether lands long into
the future, even in the most
inc lement weather where
demand is at i ts h ighest.
When temperatures fa l l and
consumpt ion r ises, these
stocks can be drawn upon,
and then replenished at t imes
PAGE 34
of low demand in the summer.
At both locat ions, natura l
gas is stored in the porous
sandstone bed of an a lmost
fu l ly dra ined gas f ie ld, and
these fac i l i t ies have repeatedly
proved v i ta l for ensur ing
energy suppl ies, as they can
del iver extra natura l gas at
short not ice and ensure the
supply of suff ic ient vo lumes of
natura l gas to the Nether lands
under any c i rcumstances. A lso
key to NAM’s commitment to
recover ing as much gas as
possib le, and thus ensure the
most susta inable and secure
energy supply imaginable, is
i ts Den Helder gas processing
p lant, one of the largest in
Europe.
The faci l i ty processes 19.5
bi l l ion m³ of natural gas each
year, with i ts treatment plants
receiv ing gas from NAM’s
offshore product ion platforms
and carry ing out the complex
processes which ensure that
the gas meets the del ivery
requirements of Gasunie,
a Dutch company that is
responsible for transportat ion
via the gas pipel ine network in
The Nether lands and Germany.
Through the Yokogawa revamp
of the control systems at the
Plant, a move tr iggered by
the di ff iculty of maintaining
the legacy control system
due to the scarcity of spare
parts, NAM ant ic ipated
improvements in product ion
per formance, system
re l iab i l i t y, and mainta inab i l i t y,
e f fect ive ly ensur ing a s tab le
gas supply in the Nether lands
for years to come v ia th is
huge ly impor tant fac i l i t y
NEdERlANdSE AARdOlIE MAATSCHAPPIj
PAGE 35
“NAM’s Groningen field accounts for roughly 70% of its gas production”
PAGE 36
Trailblazing where the going is tough
Editorial: colin chinery
Outstanding quality management systems and diligent HSE adherence are guiding principals behind the Sakson Group’s exceptional drilling performances. And there is another characteristic - a willingness to take on and succeed with projects in challenging locations.
To say that Sakson Dri l l ing & Oil
Services sends its rigs where
others fear to tread might be an
exaggeration, but in the seven
years since its formation, the
Dubai-based business has won
a reputation as an accomplished
oil f ield First Mover.
Serving the oil and gas
industry with quality equipment,
rel iable services, and highly
skil led personnel, Sakson’s core
activity is in the dri l l ing sector in
which it provides the rig and the
operational team.
“We are – current ly – focused
on explorat ion dr i l l ing in
logist ical ly chal lenging basins.
And this is our strength,”
says Er ik Houl leberghs, Vice
President Corporate Affairs and
New Business Development.
Establ ished in 2006 as an
independent dr i l l ing contractor
special is ing in the management
of dr i l l ing r igs and tubular
running services provis ion,
Sakson then expanded i ts
geographical operat ional reach
f i rst into Iraqi-Kurdistan.
I t was a pioneer ing feat
in a region then considered
unchartered and chal lenging:
“We were one of the f i rst
companies brave enough to
move there and were pretty
successful .”
In 2011 Sakson went
into East Afr ica, - Tanzania
and Kenya – and moved i ts
headquarters from Cairo in
2013 - where i t st i l l has a
presence - to Dubai, f rom
where i t manages i ts expanding
operat ions in the Middle East,
Northern & Eastern Afr ica and
Central Asia.
UNIQUE CONCEPTThe Sakson Holding consists of
three subsidiaries; Sakson Egypt
Petroleum, Sakson Drilling and
Oil Services and Saknafta Egypt
Petroleum Services, a diversity
creating value with and for its
customers through a unique
customised service concept.
Today the Sakson Drilling and Oil
Services operates and manages a
fleet of eleven rigs, eight of which
it owns. Altogether these range
from 1,000 HP truck-mounted
units to 3,000 HP land rigs, with
the capability to reach a depth of
7,000 meters.
“In Kurdistan we represent
about 15 - 20% of the market.
In Turkmenistan we are the only
foreign entity drilling there. In
East Africa we are good for about
10% of the market, whilst in
Algeria we representing a small
percentage, but growing.” said Mr
Houlleberghs.
Outstanding quality management
systems and diligent HSE
adherence are guiding principals
behind the firm’s exceptional
drilling performances. And with
its excellent relationships with rig
manufacturers, Sakson has built
a solid reputation for delivering
on what it promises: on time, first
time, and every time.
To ensure that newly built rigs
are up to the highest of standards,
Sakson Drilling & Oil Services
has developed its own protocols
for quality assurance upon
acceptance of a unit. Its engineers
are present at the manufacturers’
sites during every stage to
audit and the entire process is
overseen. And before shipping,
the unit is fully assembled to
reassure a client that the rig will be
operational on delivery.
FORMIDABLE ABILITIES Sakson’s ability to perform in the
most demanding and challenging
circumstances is formidable.
From the operational issues in
an environmentally sensitive
area off Tanzania, to the non-
SAKSON GROUP
PAGE 37
infrastructure
challenges in Kenya and the
serial logistical complexities in
Turkmenistan, its adaptability and
ingenuity delivers premium results
in impressive time scales.
A nice example of Sakson
Drilling & Oil Services’
determination to create value for
its client is a project it is carrying
out in the Turkmenistan sector
of the Caspian, working in water
depths of up to 30 metres.
“Normally you would deploy a
rig used to working offshore, but
to get such a structure into the
Caspian is not easy. First you have
to bring the rig into the Black Sea
via the Bosporus and from there
to cross Russia into the Volga-Don
channel and into the Volga River to
reach the Caspian Sea.”
Meantime the large off-shore
drilling structures are throwing
up problems: “The first difficulties
are the bridges on the Bosporus,
which are fairly low. So to get
beneath
you have
to partly
dismantle your
jack-up rig. Once
that’s sorted out, the
narrowness of the Don Volga
channel means that to reach the
Volga river you have to further
dismantle the installation to get it
onto the boats.
“Then, once on location
in the Turkmen sector of the
Caspian Sea, you have to start
assembling everything. Building
a jack-up rig in the Caspian Sea,
is – currently – not an option,
because there are no yards
available capable of fabricating a
jack up rig.”
“So together with our client, we
went for a creative solution. They
designed and built an off-shore
installation capable of housing a
rig (and all its support equipment
including living quarters for the
crew). We designed a ‘land’
rig to fit the off-shore structure
and ensured it was ‘sea-water /
salt’ resistant. Combining the
engineering strength of our own
people with that of our client,
we came up with a cost effective
solution that meets the industry
ISO-specifications.
COST-EFFECTIVE SOLUTIONS“This is something we are
very proud of. Together with
our cl ient we looked at the
situation and came up with
a cost effective solution by
thinking a l itt le out of the box.
Putting expertise and knowledge
on the table to f ind a cost
effective solution is, I would say,
something we are very good at.”
To reach an East African
project Sakson moved a rig
some 600km into parts of
Kenya were the local transport
infrastructure was very l imited
and supporting industry was
very much in its infancy.
Accessibil ity was also an issue
in Tanzania, with Sakson winning
complimentary feedback from
its cl ient on the co-operation
between Sakson and its team.
“In respect of a cl ient, we
certainly don’t see an ‘Us and
PAGE 38
“Our dedication to delivering top quality service while maintaining HSE standards has been the driving force behind our success”
SAKSON GROUP
PAGE 39
Them,’ much more a joint
approach in which by putting all
the available expertise on the
table we come up with the most
cost-effective solution,” says
Mr Houlleberghs. “And in this
current price environment, cost
eff iciency is, more than ever,
extremely important.”
“The best way of giving our
cl ients cost eff iciency is by
ensuring our dri l l ing teams
perform to the very best of their
capabil it ies and ‘deliver’ a well
compliant to the specif ications
of the client ahead of its dri l l-
t ime schedule. Each day a well
is completed ahead of t ime
our customer saves between,
let’s say, well over 50,000 US
dollars depending on location
and type of rig. If we can
terminate a week earl ier by
performing our work to the
nth degree of professionalism,
then the customer saves a very
signif icant amount of money.”
Sakson’s commitment says Mr
Houlleberghs, is to constantly
develop and advance its
performance-driven culture,
reinforced by a relentless
dil igence in the planning and
execution of its operations.
“We are pushing hard to make
sure that dri l l ing proceeds as
smoothly as possible, ensuring
that spare parts are delivered
on time and repairs completed
immediately.”
The Sakson Dri l l ing & Oil
Services’ organisational
structure making this possible is
characterised by a continuous
push towards greater individual
productivity levels through
intensive recruit ing, training and
retention.
Offi ces: Dubai – Baghdad – Erbil – Basra – Amman
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“In Kurdistan at the
moment we have
five rigs making up
perhaps 20% of
the market, three in
Algeria, representing
a small percentage,
in East Africa one rig
accounting for 10% of
the market”
SAKSON PEOPLE KEY“The quality of our people is a
further reason for our success,
with our training ensuring they
stay on top of their skil l sets.
Another major key is that being a
young company our equipment is
also young and state of art.
“And with our teams working
in quite remote areas, we use
new and highly maintained
accommodation camps close to
the vicinity of the rig. We need
good people, and to keep them,
we offer a l iving environment that
is up to standard.”
Sakson Dri l l ing & Oil Services
is home to a mult i-cultural
workforce, with employees
from various Middle Eastern
countries, as well as from
European, Afr ican and
Asian countries. This mult i-
ethnicity helps the company
is complying with requests
from local Governments to hire
local nationals as dri l l crew
members, train them and share
experiences with them.
“In Algeria, we operate r igs
with a ful l Algerian crew. In
Tanzania and Turkmenistan,
the ratio local versus expat
employees outscores the levels
set by the Government.”
Sakson’s strategy, says Mr
Houlleberghs, is one of portfol io
diversif ication, with a growing
emphasis on bui lding suff icient
name recognit ion to expand
into development & production
dri l l ing.
“We have a sol id reputation
as ‘exploration dri l lers’. We
are now start ing to target the
big players in the industry
l ike Saudi-Aramco, Shell, and
ExxonMobil. It is our intention
to acquire over the next
couple of years suff icient name
renegotiation within the industry
PAGE 40
SAKSON GROUP
PAGE 41
to work for the big boys as well,
including various Middle Eastern
national oi l companies.”
“We have a very sol id
anchorage within the Middle
East and the Arab world. With
many business opportunit ies in
the Middle East – for instance in
Kuwait, Dubai, Abu Dhabi and
Oman – this is an asset we want
to explore further.”
PROBLEM SOLVERWith the o i l and gas industry
evolv ing at a rapid pace and
with i t the increasing chal lenge
of ant ic ipat ing and solv ing
the problems of the future,
Sakson is dedicated to stay ing
ahead of the curve to meet
the growing demands of the
market.
“Our dedicat ion to del iver ing
a top qual i ty serv ice whi le
mainta in ing HSE standards
has been the dr iv ing force
behind our success. And th is
commitment to constant ly
develop and advance our
per formance-dr iven cul ture
is re inforced by a ceaseless
d i l igence in the p lanning and
execut ion of our operat ions.
“At the moment we own e ight
r igs and manage another three,
and our e ight to ten year target
(ambit ion) is to reach up to 30
r igs.
“Our business strategy is
to provide our cl ients with
world-class quality services,
equipment and products,
operational cost eff iciency and
f it-for-purpose applications of
advanced technology. And it is
one that I bel ieve defines the
Sakson Dri l l ing and Oil Services
and its operations.”
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“In respect of a
licence owner, we
certainly don’t see an
‘Us and Them,’ much
more a joint approach
in which by putting
all the available
expertise on the table
we come up with the
most cost-effective
solution”
PAGE 42
Enriching life through power
Editorial: Rosie DeWinter
Standing as the largest electricity utility in Sri Lanka, Ceylon Electricity Board controls all major functions of electricity generation, transmission, distribution and retailing throughout the country. With further power projects in the pipeline, Total World Energy speaks to General Manager, Chandrasiri Wickramasekara who explains how the Board is channelling renewable energy and encouraging customers to conserve more energy…
Established as a Board in 1969,
Ceylon Electricity Board (CEB)
init ial ly started developing its
grid with hydro-electric power
during the 1950’s. Alongside the
development of its f irst hydro
power plant, CEB began to
establ ish small thermal power
plants.
By the mid-1980’s, CEB
began to develop and operate
heavy fuel thermal power plants
whilst running heavy fuel power
plants, its gas turbines were
running on diesel unti l the early
2000’s but very sparingly now.
Speaking to newly appointed
General Manager, Chandrasir i
Wickramasekara, he explains
CEB soon started investing
in the independent power
producers of Sri Lanka.
“Unti l mid-1990, al l the
generation was owned by CEB
but from then onwards, we
started contracting and buying
power from independent power
producers. They were using
oi l power plants and also,
there were many small power
producers who were using mini
hydro plants. Today, we have
over 200 small hydro power
plants connected to our grid.
“Right now, we have close
to 1000MW developed by
independent power producers
and in 2010, the f irst coal
power plant was added to our
system (300MW). Last year, we
added another 600MW so right
now we have 900MW of coal.
“So with al l that capacity,
we have close to 4,000MW
store capacity – our
transmission voltage is 132-
220Kv and general ly covers
the whole island,” explains
Wickramasekara.
With generation owned
and operated by CEB,
Wickramasekara explains
many of its independent power
producers cover both thermal
and mini hydro plants. Much of
the distr ibution is also owned
and operated by CEB – “We
also have a subsidiary company
cal led Lanka Electricity
Company which is doing the
distr ibution business in certain
urban areas near Colombo
in the Western and Southern
coastal areas,” Wickramasekara
adds.
Joining Ceylon Electricity
Board as a Junior
Electrical Engineer in 1979,
Wickramasekara explains that
throughout his 36 years, his
background has mostly been
within power generation –
“Prior to General Manager, I
was Head of the Generation
Division and more or less, I have
always been associated with
generation.”
ENERGY PROJECTSIn September 2010, CEB
began a joint venture with
India’s National Thermal Power
Corporation (NTPC) for a
500MW coal power plant – the
Trincomalee Coal Power Project.
Operated by JV Company, the
coal plant is located at Sampoor
and involves the construction
of a 220kV double circuit
transmission l ine from Samput
to Veyangoda via Habarana with
new sub stations at Habarana
and Veyangoda to transmit
power to load centres. Sections
of the l ine between Sampur and
Habarana wil l be constructed as
a 400kV l ine but operate init ial ly
on 220kV. The project wil l also
include the construction of a
coal unloading jetty at Sampoor.
Adding 600MW of coal
last year, Wickramasekara
explains that most of the future
generation that has been
planned is in coal plants: “So
this 500MW coal power plant
which wil l implemented via a
joint venture company, 50/50
jointly owned by CEB and
India’s National Thermal Power
Corporation (NTPC) and wil l be
the next major project in the
pipel ine.”
Wickramasekara adds that
CEB recently applied for the
Environment Impact Assessment
approval for this project which it
expects to be obtained by Apri l ,
with a view to complete the
plant by 2019.
CEylON ElECTRICITy BOARd
PAGE 43
“We have planned several
transmission network
developments which include
l ines and substations with a new
220kV l ine to strengthen the
Southern part of the island and
132kV l ine to Mannar (which
wil l be upgraded to 220kV),”
explains Wickramasekara.
“CEB has identif ied good wind
potential in Mannar, in the North
West of the country. The wind
potential is 375MW so we have
already ordered the contract for
the l ine and we are now trying
to implement f irst phase of
wind in that region, so the need
for the expansion to cater for
that also.”
Speaking of the country’s
hydro-power projects and
Wickramasekara explains that
much of the hydro potential
has now been explored and
developed – “So what’s left are
those small ones which we cal l
mini and micro hydro power
plants of capacity less than
1.5MW.”
“There are two projects now
under construction, but they are
relatively small. We don’t have
much hydro power potential
left for development. We have
been investigating hydro pump
storage – which we plan to
come in around 2023-2024 but
that is the latest status as far as
hydro power is concerned.”
HELPING TO CONSERVE ENERGYFor an energy company, it is
not always an easy task to help
and encourage customers to
be more sustainable in their
consumption of energy. Ceylon
Electricity Board implore –
‘Switch off one l ight, save it for
our chi ldren. We are committed
to help our valued customers
to use energy eff iciently, save
more money and improve our
environment for a better future.’
Wickramasekara explains that
CEB has an energy program
in place to help and inform
customers on the best methods
to conserve energy and educate
them on the f inancial benefits of
doing so.
“We educate customers
in many ways: mass media,
seminars and educating school
chi ldren. From time to t ime
we also do competit ions – for
example, we had a scheme for
customers that i f they reduced
their bi l l by 20%, they stood
PAGE 44
CEylON ElECTRICITy BOARd
PAGE 45
the chance to el iminate their
electr icity bi l l for that month,
so this helps to encourage our
customers to conserve energy.
“We have also introduced energy
efficient equipment such as CFL
lighting and we do energy ratings
for these, especially the bulbs.
“There’s a dedicated
inst i tut ion under the Power
and Energy Min ist ry ca l led
The Susta inable Energy
Author i ty. The Susta inable
Energy Author i ty is speci f ica l ly
establ ished to boost
renewables, especia l ly the
non-convent ional renewables.
So we have a lot of
encouragement and r ight now,
we have a good tar i f f so i t is a
good incent ive for the pr ivate
developers.
“We have a posi t ive
approach to green energy,
l ike wind, hydro, so lar and
biomass. So there is a lot
of encouragement f rom the
government to go for greener
and c leaner energy,” expla ins
W ickramasekara.
CEB has a lso implemented
Net Meter ing, a b i l l ing
mechanism that credi ts solar
energy system customers for
the e lectr ic i ty they add to
the gr id, receiv ing credi t for
excess energy which can be
used over the coming months.
With so many cleaner and
greener incent ives now in place
for i ts customers and numerous
renewable projects underway
and near ing complet ion, Ceylon
Electr ic i ty Board looks set to
cont inue i ts long legacy of
supply ing energy to the people
of Sr i Lanka for many years
to come
“We have a positive approach to green energy, like wind and hydro, thermal and biogas. So there is a lot of encouragement from the government to go for greener and cleaner energy”
PAGE 46
Rebuilding a nationEditorial: Ajuanne Payne
Working in some of the most difficult conditions on projects essential for the development of Iraqi infrastructure, Uruk Engineering & Contracting Services is an Iraqi-owned Engineering, Procurement and Construction (EPC) contractor with expertise in the energy and power generation industries. Total World Energy speaks to Business Development Manager, Mr Ammar Al-Kital to find out more…
Uruk is an Iraqi EPC contractor
specialising in all things
relating to power generation.
More importantly for them,
their business of building and
refurbishing power facilities
contributes significantly to
the rebuilding of Iraq’s energy
infrastructure – a mission to
which the company is completely
dedicated.
Made up of the foremost in local
Iraqi talent, employees of Uruk
have led the nation’s energy sector
for many years, bringing their
decades of experience in creating
a nationwide industrial network
and establishing power grids to
Uruk. Speaking with Mr. Al-Kital,
he explains further the beginnings
of the company and what drives
them.
“Our CEO decided to establish
the company headquarters in the
UAE in 2003 as a development
company, Uruk Engineering
& Contracting. He continued,
however, to be deeply involved in
reconstruction initiatives; and he
remains a frame of reference for
the industry to this day.”
Based in the UAE and with
offices in Baghdad and Dubai,
Uruk’s management is made
up of prominent Iraqi engineers
and scientists with collective
experience in the oil and gas,
nuclear, electricity, water and
waste management sectors. Mr
Al-Kital explains that “most of our
corporate people are here; and
100% of our management are
Iraqis who have worked in Iraq for
much of their professional careers
- they know the area well and they
know the country’s needs.”
A GOOD STARTFollowing the founding of the
company and the creation of
a base in the UAE, Uruk was
awarded its first major project
which was the rehabilitation of a
unit in a thermal power facility in
Baiji, which it completed in 2004.
Mr Al-Kital states that “by 2006
Uruk Engineering & Contracting
was well established; and Uruk was
awarded more complex projects by
the Ministry of Electricity.
“In 2007 it was awarded the Al
Qudus Expansion project, about 20
km north of Baghdad. This project
was for 250 MW where two GE
frame 9E turbines were added;
and it took about two years to be
completed.”
The project was completed
in May 2009 for the Ministry
of Electricity, costing a total
of US$170 million. Uruk was
tasked with the turnkey design,
engineering, procurement,
construction, installation and
commissioning of all equipment.
“Then there’s a full EPC
greenfield project which is Taji,”
continues Mr Al-Kital, “that was
168MW where Uruk installed 4 GE
Turbines, which are called frame
6B.”
The Ministry of Electricity in Iraq
had launched a Fast Track initiative
for its power generation projects in
2010; and the Taji Gas Power Plant
Project was the first of these to
have been completed. In fact, the
Iraqi Ministry of Electricity recently
awarded Uruk a Final Acceptance
Certificate (FAC) in July 2014 for
Taji, the first any firm has received
for a power plant project in twenty
five years. Completed in 2012, this
project is valued at US$85 million,
the four gas turbines were free
issued by the Ministry.
Uruk’s commitment to quality
ensured it fulfilled its requirements,
completing all work in less than
two years after being awarded the
contract. It is also the first Iraqi-
owned company to complete this
type of project since the initiative
was put in place – a success that
can be firmly attributed to the
expertise of its employees.
DIFFICULT CONDITIONSConsidering the unrest and the
difficult times the country has faced
over the past decade, the skills
of the employees of Uruk have
ensured that the public of Iraq
have world class facilities capable
of delivering electricity once gas
supply and fuel supply issues
are resolved. This is despite the
decades of sanctions, logistical
challenges, legislative hurdles and
security risks.
As of 2014, Iraq’s electricity
production capacity was estimated
at 12,000MW, with demand
being estimated at a much higher
16,000MW. Iraq’s Ministry of
Electricity has a General Plan that
has identified 24GW of generation,
transmission and distribution
projects over the next decade to
URUK ENGINEERING & CONTRACTING SERvICES
PAGE 47
bridge the
supply and
demand deficit.
Uruk’s next turnkey project
was for 724MW at the
Mansuriya Power Plant in the
Diyala Provence, Iraq. Mr Al-
Kital divulges that this “was a
joint-venture with Alstom, who
provided the turbines. We were
doing the auxiliaries of the whole
plant - we were the contractor
and they were the technology
holder of the turbines and
were also responsible for the
commissioning.
“It is a nice project in
Mansuriya, which is about 120
km Northwest of Baghdad; but
this area is very unstable due
to security reasons now. It is a
difficult area. We had to evacuate
the power station last July 2014;
and we are still waiting for the
clearance from the Ministry of
Electricity so we can move back
there.
“This project was completed in
December
2013; but
the gas was
not supplied so
we couldn’t do the final
commissioning. There is the cold
and the hot commissioning. During
hot commissioning, you run the
whole plant for 72 hours; and then
if everything goes correctly you can
hand it over to the client.
“We couldn’t do this because the
gas fuel was not supplied by the
Ministry. It is completed but we just
have to run it.
“Since then, the Ministry has
explored with us how we might
develop this power station into a
combined cycle plant. We gave
them our technical analysis, cost
estimation and feasibility studies.
These were received positively; but
due to the security situation, the
implementation has been delayed.”
One of the pressing concerns still
restricting electricity supply in Iraq
is the lack of reliable fuel supply to
power plant facilities. The issue of
fuel supply is a logistical one – due
to the political situation and issues
with the nation’s infrastructure. The
country has its own substantial
supplies of oil and gas, particularly
in the South; but it needs to rebuild
the systems essential for a reliable
supply.
The Ministry of Electricity is
addressing this problem, identifying
a number of fuel-related projects
that need executing, such as the
construction of treatment, methane
gas gathering and delivery facilities,
to give the power sector a boost
over coming years.
Just to name a few of the
country’s investments into
rebuilding and improving its power
network, two major contracts
were awarded in 2009 to GE and
Siemens for a total of 10,840MW in
generation equipment – worth an
estimated US$5billion. Uruk is one
of the companies entrusted with the
installation of this new equipment
and since inception has worked
with major global players such as
GE, Siemens, Bechtel International
and ABB.
TRIUMPH THROUGH ADVERSITYDespite these difficulties, Uruk has
succeeded in completing essential
work to world class standards
of excellence. Mr Al-Kital goes
further, explaining that if you “take
in to consideration the situation in
Iraq, there were not many major
EPC contractors who are or were
PAGE 48
“We know how it works; we know how to build these, so it’s just about increasing the size of these projects”
URUK ENGINEERING & CONTRACTING SERvICES
PAGE 49
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willing to go to Iraq - only the
experienced Iraqis with the good
knowledge who could work in such
circumstances.
“Accordingly our achievements
are impressive. Those first two
projects we didn’t have any major
issues, everything went according
to schedule. In fact, during our last
three projects, we accumulated
over 6 million man hours without
major incident. Besides our
management, and in particular our
founder and CEO Dr. Jafar, has a
long history in the energy sector.
He took over the administration
of Iraqi electricity after 1991, so he
knows every single power station in
Iraq – where are the opportunities,
the defects, he knows it all really
well.”
Dr. Jafar D. Jafar, CEO and
co-founder of Uruk chaired Iraq’s
National Committee for Technology
Transfer previously and much of the
success and exponential growth
of the company can be attributed
to the vision and expertise of his
leadership.
BEATING THE COMPETITIONLooking forward to 2015, Uruk
has a few exciting prospects in
the pipeline; and it is continuing
its mission to successfully win and
complete projects vital for Iraq’s
energy infrastructure. Mr Al-Kital
goes in to detail about one “new
project which is in Baghdad – the
Daura power station.”
“This project is about to be
awarded; and we are confident
that we have submitted a strong
bid. We have competed with some
Italian companies; but we definitely
have the advantage on security. A
European company that will come
to work in Iraq will plan out a big
margin for security, for the risk. We
can reduce those factors due to
our circumstances, because our
managers are Iraqi and so on. We
are more cost effective than the
others.
“I’m expecting that we will
expand as well into thermal power
plants, because almost 60-70%
of our power plants in Iraq are
thermal and all of them are in need
of rehabilitation - new boilers,
rehabilitation of the turbines, etc.
So, I hope that after the award of
this project and the completion we
will again have a new place where
we can implement our work as
well.”
WHAT DOES THE FUTURE HOLDLooking forward to the next few
years, Mr Al-Kital describes how
the company is aiming to expand
PAGE 50
on its capabilities; for example
in the area of gas compression
stations.
“We are delving further into the
gas and oil industry,” explains
Mr Al-Kital. “If you take a gas
compression station - normally
you have it in a power station,
at a smaller capacity; but for the
gas and oil industry you need
it on a bigger scale. We know
how it works; we know how to
build these, so it’s just about
increasing the size of these
projects.
“We participated in two tenders
recently with the Ministry of Oil
and we’re still competing actually
on those two projects. The gas
compression stations compress
the gas and transport it to another
point - so it is the way we transport
the gas from one point to another.
“With the depth of expertise we
have, we are well placed to work
on gas, gas compression and gas
treatment plants as well as power
generation plants.”
Since inception, Uruk Engineering
and Contracting have shown their
ability to not only deliver quality
work on time, but to do it to a high
standard while under very difficult
conditions. You cannot put a value
on local knowledge; and in the
case of Uruk this has been a major
contributing factor to their ability to
get the job done.
In no small measure, Uruk’s
success can also be attributed
to the passion its leadership
and employees have for
their work. The culture of
the business is one of real
dedication to the rebuilding
of essential infrastructure in
their home country – and a real
determination to succeed.
“We really want to finish what
we started in Iraq, before we
think about moving outside. The
rehabilitation or the rebuilding of
Iraq will take some time and we
are trying to concentrate on this
as much as possible,” Mr
Al-Kital concludes
URUK ENGINEERING & CONTRACTING SERvICES
PAGE 51
“100% of our management are Iraqis who have worked in Iraq for much of their professional careers - they know the area well and they know the country’s needs.”
PAGE 52
connecting the people of Sweden Editorial: Ajuanne Payne
Tasked with the operational management of Sweden’s 15,000 km of transmission lines and ensuring electricity supply to the population, Svenska kraftnät are the state-owned public utility looking after the country’s electricity needs. With current yearly investments in maintenance and electricity interconnection projects at over EUR 430 million per year, the utility are expecting investments to total EUR 6.5 billion by the mid 2020’s. President and CEO, Mr Mikael Odenberg, tells us more about what the future holds for the Swedish national grid…
Svenska kraftnät (Swedish
National Grid) is the state-
owned public utility responsible
for the security of electricity
supply in Sweden. The
government authority looks after
the monitoring of Sweden’s
national grid and ensures the
balance between production
and consumption across the
country. Svenska kraftnät are also
responsible for coordinating dam
safety nationwide.
With a national grid to look
after, inclusive of roughly
15,000 km of 400 and 220 kV
transmission lines, substations
and interconnectors, Svenska
kraftnät’s main focus is on
maintaining a reliable and safe
electricity infrastructure for
the country’s people. In order
to achieve this, the utility’s
operations centre on essential
expansion planning, operational
supervision and maintenance.
Established in 1992, today
Svenska kraftnät has 550
employees with the majority
based at the company’s
Stockholm head office and
operations centre.
HISTORYPresident and CEO, Mikael
Odenberg, explains the history
behind the founding of Svenska
kraftnät: “in 1908 a governmental
agency was formed in Sweden in
order to exploit the hydro resources
in the northern parts of Sweden
and to electrify the country. In 1992
this Agency was unbundled.
“The electricity production
facilities – mainly hydro and nuclear
– and sales of electricity were put
into a new state owned enterprise,
Vattenfall AB. Management of
the high voltage transmission
system and the responsibility for
the system operations (balancing
the system) were transferred to a
new governmental agency, named
Svenska kraftnät (Swedish National
Grid). “
Mr Odenberg’s background
is mainly a political one, with
experience as a Swedish MP and
cabinet minister. In the mid-90s
he was a party spokesman for
energy affairs and heavily involved
in the legislation concerning
the deregulation of the Swedish
electricity market that took place
in 1996. He explains that “After
resigning as Minister for Defence in
2007, the government appointed
me as CEO of Svenska kraftnät in
the spring of 2008.”
The Swedish electricity market
was reformed at the turn of the
year between 1995 and 1996. The
main objective of the reform was to
separate the sale and production
of electricity from the transmission
of electricity. This meant that
electricity trading and production
was exposed to competition in the
market place, while the network
operations were retained as a
natural monopoly and so easily
regulated.
The ability of the Swedish
government to regulate and
supervise the network operations
has been central to the Swedish
electricity market’s ability to work
well and prevent private network
companies from abusing their
monopoly positions.
AN INTEGRATED ENERGY INFRASTRUCTURE“Sweden has a generation that
is basically completely emission-
free.” Explains Mr Odenberg; “of
the annual production of about
150 TWh, 40 percent each is
from nuclear and hydro power
and about 8 percent from wind
power. The main producers are
Vattenfall, E.ON and Fortum.
The Swedish National Grid
Transmission System Operator
has no electricity production;
however a few gas turbines are
included in the agency’s so-
called Disturbance Reserve.
With the electrical
infrastructure consisting of
555,000 kilometers, or around 14
times around the world, of lines
at all voltage levels – Svenska
kraftnät’s responsibility is for
the high-voltage transmission
network and interconnectors. The
national grid is well integrated
with other nearby European
countries, with regular import
and exports of power, facilitated
by physical links between the
different grids.
“Today there are six HVDC links
to Denmark, Germany, Poland
and Finland and eight alternating
current connections to Norway,
Finland and Denmark.
“In 2012, Sweden’s total net
exports comprised 20 TWh
of electricity,” explains Mr
SvENSKA KRAfTNAT
PAGE 53
Odenberg, “in 2013 10 TWh and
15 TWh in 2014. Between the
hottest and coldest hours during
the year consumption can differ
markedly in the Swedish system.
The peak load during the year’s
coldest hour could be upwards
of 26,000 MWh, which makes the
momentary demand of electricity
imports from neighboring
countries large - despite the
good energy balance with much
net exports of electricity on an
annual basis.
“Sweden is well integrated with
the rest of Europe. The 14 foreign
connections have a combined
capacity equivalent to 40 percent
of domestic production capacity,
allowing for great flexibility in
times of shortage of electricity.
Security of supply for the
Swedish end customers is 99.98
percent.”
The state-owned utility has
seen extensive development over
the past decade, significantly
contributing to its ability to
ensure that the people of Sweden
have such a reliable security of
supply.
STRATEGIC INVESTMENTS The utility also has an SEK 35 million
(EUR3.8 million) yearly budget
for research and development,
a dedication to continued
improvement in increasing efficiency
and reducing environmental impact,
on top of important investments it is
making in other areas.
Mr Odenberg goes further,
explaining that “Swedish kraftnät’s
driving forces for transmission
network investments are mainly
three: the connection of renewable
electricity generation, increased
integration with the surrounding
world and reinvestments in the
aging network. Svenska kraftnät
has also invested in new lines to
allow for increased power input
after upgraded nuclear power
plants.”
In order to deal with the ever-
increasing demands for safe
electricity distribution and high
consumption, Svenska kraftnät are
in the process of strengthening
and refurbishing their electricity
supply system. With nuclear power
expected to be phased out by
2045, beginning in 2025, there is
a need for increasing the efficiency
at these facilities and a long term
goal of replacing them with new,
planable, power sources.
“Svenska kraftnät has the
government’s task of enabling
the expansion of renewable
electricity production in the
country,” Explains Mr Odenberg;
“increased integration with the
outside world presents both an
opportunity for increased export of
surplus electricity on a windy and
warm summer’s day, but also the
possibility to import electricity in
a deficit situation - such as a cold
winters day when the wind is not
blowing.”
PAGE 54
“The third driving force is about
reinvestments in the existing
network and the existing stations.
Many facilities in the Swedish
national grid were built in the
1950s, which means that they need
to be replaced.
Mr Odenberg states that
“compared to ten years ago,
Svenska kraftnät’s investments
are more than tenfold – from 350
million SEK per year to more
than 4 billion SEK per year. Until
the mid-2020s Svenska kraftnät
expects grid investments in the
order of around 60 billion SEK.
The extensive investments have
also meant that the number of
employees has doubled in six
years. However, we expect that this
necessary expansion increase will
level off within a year.”
“The two largest ongoing
investment projects consist of a
new connection, The SouthWest
Link,” explains Mr Odenberg, “from
middle to southern Sweden, and
the new connection NordBalt to
Lithuania. Upwards of 8 billion SEK
is invested in the SouthWest Link
to minimize the internal bottlenecks
that sometimes occur between
mid and south Sweden, thereby
increasing transmission capacity
to southern Sweden. NordBalt is
an HVDC link to Lithuania. The aim
is to integrate an emerging Baltic
electricity market with the Nordic
and European. At the same time
the Baltic States’ security of supply
strengthens.”
THE SOUTHWEST LINK PROJECTThe objective of the SouthWest
Link project is to reinforce the
alternating current (AC) network,
increase reliability and solve
“The national grid is well integrated with other nearby European countries, with regular import and exports of power, facilitated by physical links between the different grids”
SvENSKA KRAfTNAT
PAGE 55
Headquarter Sirti S.p.A.
Via Stamira D’Ancona, 920127 Milan – ItalyTel. +39 02 9588.1Fax +39 02 9588 3333www.sirti.com
THE COMPANY - Founded in 1921, Sirti is the Italian leading company in engineering and realization of turnkey telecommunications networks and systems. Through its operational structure of 4,000 employees Sirti is configured as a Global System Integrator.
The wide experience achieved, together with an in-depth technical expertise, allow Sirti to provide customers with well rounded technological advisory services as well as top tier technological solutions in different segments:Telecommunications, Energy Infrastructures, ICT, Railways Networks, Mobility, Security, Environment Monitoring and Safety.
Thanks to the recognized competence in complex engineering problems, Sirti has developed "turnkey" solutions directed to Central and Local Public Administration, public or private providers of services and utilities, Local Agencies and large corporations.
While historically brought it’s technological footprint through the most remote regions of the world, today Sirti is active in Saudi Arabia, UAE, Libya, Qatar, Spain and Finland, Norwey and Sweden.
SUCCESS RECORDS IN SCANDINAVIA Sirti entered the energy market in northern Europe in 2012 by winning, within the DTS Consortium, a Contract from Fingrid Oyj (the national power grid operator) for the construction of a 400/110 kV AC, 40 km long OHTL between Leväsjoki and Ulvila in Finland. In July 2012 Sirti also won a tender competition called by Svenska Kraftnät for the construction of a 64km long, 300 kV DC OHTL between the towns of Nässjö and Värnamo in Sweden. In March 2013 Sirti won anotherContract from Svenska Kraftnät for the construction of a 40 km long, 400 kV AC OHTL between the towns of Skänninge and Tranås in Sweden.
PAGE 56
the restrictions in transmission
capacity to southern Sweden.
This will have the added bonus of
limiting differences in electricity
prices between regions.
The connection will also prepare
for the planned investments
and expansion of wind power,
which is part of Swedish and
European climate policy - a
further demonstration of Svenska
kraftnät’s dedication to investing
in the growth and improvement of
Sweden’s electricity infrastructure.
The SouthWest Link focuses
primarily around the construction
of a new AC link between Barkeryd
and Hallsberg, with a second direct
current (DC) link planned between
Barkeryd and Skåne. Commissioning
of the north branch takes place
later this spring, with Eltel Networks
TE AB winning the EUR 19 million
contract. Full commissioning of the
south branch is expected to take
place in the beginning of 2016.
THE NORDBALT PROJECTFor the NordBalt project, Svenska
kraftnät are collaborating with
LITGRID AB, electricity transmission
systems operator for Lithuania. The
project involves the construction
of an electricity interconnection
between Klaipėda in Lithuania
and Nybro in Sweden. Aimed
at promoting trade in electricity
between the Baltic and Nordic
electricity markets and increasing
security of supply in the region, the
link is expected to be completed by
the end of this year.
With financial backing from the
European Union worth EUR 175
million, the projects itself is valued
at a total of EUR 552 million, with
funds being split between the
construction activities and the
reinforcement of Latvian electricity
transmission systems.
The link will be a submarine DC
connection with a voltage level of
300 kV and total power of roughly
700 MW.
RISING TO THE CHALLENGETasked with significantly reducing
emissions and increasing
efficiency and production
capabilities where possible,
Svenska kraftnät are facing busy
times ahead. “To meet these
challenges, Svenska kraftnät
must work more efficiently and
smarter.”
“Extensive internal work has
been ongoing to develop planning,
work processes, procurement,
performance monitoring, skills, et
cetera. Recruiting and retaining
skilled staff is also a key success
strived for. Internal development and
career opportunities within Svenska
kraftnät is an important part of it,
while the reconciliation of work and
private life maintains prioritized.”
The utility will need the
expertise and drive of its
employees to build upon the
successes they have already
achieved. With the constant
drive towards lower emissions
and demand for electricity
increasing exponentially, Svenska
kraftnät have identified the
need for strategic investments
and better connections for the
people of Sweden. Investing in
existing and new infrastructure
in Sweden, investing in its staff,
while also taking steps towards
further electricity interconnection,
the utility is making the moves
necessary to underpin the future
of Sweden’s security of supply
and reduce costs to end users
SvENSKA KRAfTNAT
PAGE 57
PAGE 58
lTWP: making HistoryEditorial: Harriet Pattison
The Lake Turkana Project, located in North Eastern Kenya, under construction and first power expected in 2017, stands as the largest single investment in Kenya’s history. Awarded African Renewables Deal of the Year 2014, this wind power project is one of Kenya’s Vision 2030 flagship projects, aiming to provide 300MW of reliable and cost-efficient wind power for the country...
Set to be the largest single wind
farm in Sub-Saharan Africa, the
Lake Turkana Wind Power Project
(LTWP) – at an investment price of
€600 million – is the largest single
private investment throughout
Kenya’s history.
Covering 40,000 acres, the
project will consist of 365 wind
turbines, each with a capacity
of 850MW. It aims to provide
300MW of reliable, efficient and
low cost wind power energy to the
National Grid of Kenya. This is the
equivalent to 20% of the current
installed electricity generating
capacity.
Located in the Loyangalani
District in Marsabit, in the West
Country of Kenya, the project site
was chosen specifically through
extensive surveys that followed
and focused on the environmental,
social and sustainable effects a
project of this size would have,
with both the technological and
commercial considerations also
taken into account.
Of course, the strength,
consistency and stability of the
wind power is imperative for the
Lake Turkana Project, as is, with
any project of this scale, the
security, availability of fresh water
and road accessibility. From a data
analysis survey undertaken since
2007, the site has shown to have
some of the most efficient wind
resources in Africa, with average
wind speeds of 11 miles per
second in the same direction, all
year round.
With its fairly remote location,
the project will also involve
upgrading the existing stretch of
road, a distance of 240km, from
Laisamis to the project site and
the access road that surrounds
the construction site for ease
of transport, operations and
continued maintenance.
The Kenya Electricity
Transmission Company Ltd
(Ketraco), with part funding from
the Spanish Government, is also
constructing a double circuit
428km transmission line – with a
capacity of 400KV – that will assist
in delivering the electricity from the
LTWP site.
Providing low cost power, the
wind power generated from LTWP
will be the lowest power generation
cost available in the country. With
the majority of Kenya’s electric
power capacity retrieved from
hydropower, with the remaining
requirements filled by thermal and
geothermal power supply, the wind
power tariff is even lower than other
wind projects in the country set at
US$11 cents per kWh.
AFRICAN RENEWABLES DEAL OF THE YEAR 2014In February this year, the Lake
Turkana Wind Power project
received the African Renewables
Deal of the Year 2014 at the
IJGlobal Awards 2014 Europe &
Africa in London, which celebrates
the best in class within both the
energy and infrastructure sector
over the last year. IJGlobal is an
Infrastructure Journal and Project
Finance Magazine which tracks
global market activity to deliver
and reveal up to date insights.
In addition to this award, the
LTWP was also named the African
Renewables Deal of the Year 2014
by Project Finance International.
IJGlobal Editor, Sarah Tame and
Deputy Editor, Jon Whiteaker
and broadcaster and comedian,
Marcus Brigstocke hosted
the ceremony, which aims
to recognise achievement,
excellence and innovation in
energy and infrastructure finance.
Whilst announcing LTWP as
the winner, Sarah Tame said:
“This project is a very significant
project for Kenya, with its
huge associated transmission
infrastructure likely to be used
to connect future projects to the
grid.”
While newly appointed
Chairman of the Board at LTWP,
Mugo Kibati, said: “We are truly
delighted to receive this award.
It is not only a great honour for
LTWP but for Kenya as a whole.”
NEW APPOINTMENTSIn November last year - following
the resignation of Mr. Carlo van
Wageningen who led the project
over its landmark development
program - Mr. Mugo Kibati was
appointed as Chairman of the Board
of Directors of LTWP Ltd., with
effect from 21st October 2014.
Former Chairman, Carlo van
Wageningen, stated: “As I step
down, after nine long challenging
but exciting years, as the Chairman
of LTWP, I am extremely pleased to
handover the reigns of the Company
to Mugo, a highly respected and
qualified Kenyan that I have learnt
lAKE TURKANA PROjECT
PAGE 59
PAGE 60
lAKE TURKANA PROjECT
PAGE 61
to know and appreciate over the
years. His foresight, experience
and competent leadership qualities
will guide the Board at this very
exciting time when construction of
the project starts. I look forward to
supporting him as a Member of the
Board. I wish him all the best in this
endeavour.”
While the new LTWP Chairman,
Mugo Kibati added: “I am
honoured and excited to join
LTWP as Chairman. I look forward
to working with this exceptional
team to deliver the largest
wind power project in Africa
and making our contribution
to Kenya’s, indeed Africa’s
progress at this critical time in
its history. I wish to thank Carlo
for his distinguished service and
leadership in getting us to this
point, and look forward to his
and the other board members
continued guidance.”
A RENEWABLE SOLUTIONWith the cities of Africa growing
at a particularly fast rate - it is
estimated that over the past
50 years, the urban population
of the continent has more than
doubled from 19% to 39% - with
expectations that this wil l double
again by the year 2030.
As a result, an increase in
electricity generation, and in
particular renewable energy
generation, is critically needed.
Kenya currently spends an
estimated €120 mill ion on
importing fuel every year, so
it is hoped that projects l ike
LTWP, wil l not only help to save
on foreign exchange imports,
but also help to strengthen the
Kenyan currency.
With the majority of Kenya’s
electrical power capacity based
on hydropower – often an
unreliable and costly method,
G4S Kenya partners with Kenya’s Ministry of Energy as offi cial security provider for The Lake Turkana Wind Power Project.
G4S brings on board an invaluable combination of experience and professionalism to the single most largest private investment in Kenya’s history. And will be of signifi cant benefi t not only to the country, but also to the unemployed Kenyans from Turkana community.
111 locals from the community have found a new source of income; full-time employment with G4S Kenya to protect the critical national infrastructure site as it is developed.
Wind of change in Africa
G4S Kenya LTDWitu Road, off Lusaka Road Off Nyayo Stadium Roundabout.+254 711 042 000 / 999www.g4s.co.ke
“This project is a very significant project for Kenya, with its huge associated transmission infrastructure likely to be used to connect future projects to the grid”
especially during the dry seasons
– wind power seems to be a
reliable and strategic solution.
With a tariff which is 60%
cheaper than the thermal plants
currently in operation across
the continent, the Lake Turkana
Project, generating 300MW
of wind power on completion,
wil l also aid in reducing the
cost of electricity, help to
reduce the deficit the country is
experiencing and stabil ise the
current power situation in Kenya.
With the construction phase
lasting an estimated 32 months,
with 2,500 jobs to be created
and 200 full t ime positions
throughout the project’s
operations, LTWP represents an
important project for not only
Africa but Kenya and its power
generation capacity.
Aldwych, an experienced
power company focused in
Africa, is the largest single
investor in the LTWP project,
overseeing the construction
phase and operations on behalf
of LTWP on the plant site.
With financial close reached
on the project in December last
year, Helen Tarnoy, Managing
Director of Aldwych, said:
“We are tremendously proud
of this landmark day in the
development of the LTWP project
and congratulate all parties on
their commitment to achieving
this goal. We at Aldwych are
delighted to expand our already
excellent relationship with the
Government of Kenya and
Kenya Power and look forward
to becoming a trusted and
valued part of the community in
Northern Kenya.”
Vestas wil l provide
maintenance of the plant in a
contract with LTWP whilst power
from the plant wil l be purchased
at a fixed price by Kenya
Power over a 20-year period
in accordance with the Power
Purchase Agreement (PPA).
VISION 2030 PROGRAMFollowing the financial close of
Lake Turkana Wind Power Project
(LTWP) on 11 December 2014,
LTWP has received the first
disbursement of funds pursuant
to financing agreements signed in
PAGE 62
March 2014.
In a statement, Mugo Kibati
said: “Reaching this important
milestone today caps a year
of major achievements by
LTWP. This includes signing the
financing agreements in March,
issuing notice to proceed by
KETRACO to the transmission
line construction contractor
in August, financial close of
the LTWP equity partners in
September, as well as notices to
proceed to LTWP’s contractors in
October.”
The support, interaction and
uplifting of local communities is a
high priority for LTWP. As such,
LTWP adopted a Corporate Social
Responsibility (CSR) Program
which will be implemented by the
Winds of Change Foundation - a
wholly owned subsidiary of LTWP.
This foundation aims to uplift local
communities through programs
such as the CHAT HIV awareness
campaign, water, sanitation,
electrification, sustainable
development of agriculture as well
as the education of boys and girls.
After eight years of
development with the full
support of the Government of
Kenya, Kenya Power, the Energy
Regulation Committee (ERC) and
Kenya Electricity Transmission
Company (KETRACO), utilization
of the funds signifies the
completion of the project’s
financing stage, which will allow
the project to move towards
implementation and to commence
producing electricity in 2017.
A flagship project within the
Vision 2030 program, the LTWP
is now on track to help deliver
the Government’s commitment
to increasing the electricity
generation to 5,000MW.
In addition to his role as LTWP
Chairman, Mugo Kibati, also
Director General of Vision 2030
Delivery Secretariat, said in a
statement: “Kenya is set to further
develop as the hub of trade
and logistics in Sub-Saharan
Africa in line with the Vision
2030 outcomes for Kenya. The
inclusion of a wind farm in Kenya
increases the industrialization
efforts for Kenya, which are
necessary to helping Kenya
realize a middle-income status
by 2030 by ensuring that there
is access to reliable and cost-
effective electricity. In addition,
the project wil l bring numerous
social and economic benefits
to Kenya, which we as the
Vision 2030 Delivery Secretariat
are totally committed to
implementing.”
lAKE TURKANA PROjECT
PAGE 63
PAGE 64
Harnessing oil potential in offshore GhanaEditorial: Tim Hands
Located 20 kilometres west of Tullow Oil’s Jubilee field in the Deepwater Tano licence, the Tweneboa-Enyenra-Ntomme (TEN) fields comprise the Tweneboa, Enyenra, and Ntomme discoveries in offshore Ghana, in water depths ranging from 1,000 to 2,000 metres.
The TEN Cluster Development is
a trio of discoveries made in the
Deepwater Tano Block, known
separately as Tweneboa, Enyenra,
and Ntomme. Many partners
make up its ownership, including
Kosmos Energy and Andarko
who each have an 18% working
interest, Sabre Oil & Gas Holdings
Ltd with a 4.05% working interest
and, primarily, Tullow Oil plc, which
has a 49.95% working interest
in the project and also acts as
its operator. The Ghana National
Petroleum Corporation completes
the list of involved parties with its
10% carried interest. Founded
in 1985, Tullow Oil is among
the largest independent oil and
gas exploration and production
companies in Europe and boasts
a focused portfolio of world-class
assets. A leading independent
oil and gas, exploration and
production group, its primary
focus is on finding oil in Africa
and the Atlantic Margins, with the
company signing its first licence in
Senegal in 1986 and doubling in
size in 2004 with the acquisition of
Energy Africa. In Uganda, Tullow
has discovered over 1bn barrels of
oil to date in the Lake Albert Basin
and has seen success with its
recent basin opening discoveries
in Ghana, Uganda and, in 2012, its
first onshore discovery in Kenya.
THE TEN CLUSTERMarch 2009 brought the first
discovery of what would later
come to be known as the TEN
Cluster, and was made by the
Eirik Raude semi-sub drill rig.
Through its drilling in Turonian
turbidite sands, in water depths
of more than 1,100 metres, the
team discovered a gas condensate
reservoir named Tweneboa-1.
Drilled to a total depth of 3,593
metres, the discovery well
encountered 21 metres net
pay of a highly pressured light
hydrocarbon accumulation,
bolstered later in the same month
when the well was deepened
to 3,938 metres, and another
four metres of highly pressured
oil-bearing sands were found. An
over-pressured zone also formed
part of this second discovery,
which limited further progress,
although this was overcome in
January 2010, when, in more
than 1,300 metres of water, the
Atwood Hunter rig discovered
an oil reservoir and two separate
gas condensate reservoirs. In
December of the same year, two
more condensate pools were
discovered by the Deepwater
Millennium.
The first find at the Enyenra field
was made by the Sedco 702 in
July 2010, in water depths of more
than 1,400 metres. Exploratory
drilling had begun in June that
year, before the Owo-1 well,
drilling to a total depth of 3,890m,
encountered a gross vertical
reservoir interval of 154 metres,
containing 53 metres of net oil pay.
This discovery, made in two zones
of stacked Turonian aged sands,
uncovered good quality light oil,
between 33 and 36 degrees API
Gravity, the industry standard
used to determine and classify
the density of oil. Then, in the final
months of 2010, located in depths
of 1730 metres and some six
kilometres southeast of Tweneboa
2, the Deepwater Millennium
discovered the Ntomme gas-
condensate field. Drilled into an
area of weaker seismic response,
the well successfully encountered
39 metres of net oil pay. 2011 and
2012 brought significant progress
in the programme of appraisal
drilling and flow testing of the
TEN fields, which subsequently
led to the submission of the Plan
of Development to the Minister of
Energy in early November 2012.
Approval for this was granted
in May 2013, with Tullow’s CEO
Aidan Heavey expressing his
own optimism surrounding the
project in a press statement: “I
am delighted that the TEN Project
Development Plan has been
approved by the government of
Ghana. This is an important project
that will give Ghana its second
major offshore development. The
government of Ghana [has] shown
faith in Tullow and its partners
again and has set us a number
of important targets around local
content and supply chain. I have
every confidence that we will meet
these targets and look forward to
TEN ClUSTER dEvElOPMENT
PAGE 65
© Tullow Oil Plc
working
with the
Government of Ghana
and with our partners to deliver the
TEN Project.”
THE FPSO VESSELThe project is predicted to cost
US$4.9 billion and this approval
was vital in paving the way for
Tullow and its partners to proceed
with the development of its
discoveries, and to define the final
schedule and capital programme.
Delivery of the first oil from the
cluster is scheduled for mid-2016,
and will
be followed
by a steady increase up
to an eventual facility capacity
production rate of 80,000 bpd.
Development of the TEN Project
has really been allowed to take
shape since this 2013 milestone,
and a vital component of this
is the drilling and completion
of up to 24 development wells
which will be connected through
subsea infrastructure to a
Floating, Production, Storage and
Offloading vessel (FPSO), moored
in approximately 1,500 metres of
water.
This
core
aspect of
the project is
to be undertaken
by Semcorp Marine,
who proudly announced
that its subsidiaries Sembmarine
SLP and Jurong Shipyard Pte Ltd
had secured the offshore energy
related contracts, valued at a
combined US$174.3 million. The
FPSO is to be provided by Japan’s
MODEC Offshore Production
Systems (Singapore) Pte Ltd,
which has in turn contracted
Jurong Shipyard to complete the
repair and conversion of a Very
Large Crude Carrier (VLCC) into
an FPSO vessel, representing the
twenty-second conversion project
of this nature on which the two
parties have collaborated. When
completed in late 2015, the TEN
PAGE 66
TEN PROjECT
PAGE 67
Anzeige_176x250mm.indd 1 03.03.2015 14:53:09
Development FPSO will have a
production and treatment capacity
of 80,000 bpd of crude oil, 65,000
bpd of produced water, and 180
MMscfd of gas, with an on-board
storage capacity of 1.7 million
barrels.
This will be Ghana’s second
FPSO and will be fashioned from
the Centennial Jewel trading
tanker, whose arrival in the Jurong
Shipyard in Singapore at the end
of 2013 represented a significant
landmark in the TEN Cluster’s
development. Here, work was
able to begin on its eventual
conversion into the FPSO to be
used for the Tweneboa, Enyenra
and Ntomme Project, and saw
the vessel navigated into the port
with the help of a number of tug
boats. The conversion has an
estimated completion time-scale
of two years, and will join Ghana’s
FPSO ranks alongside its first
undertaking, Kwame Nkrumah -
currently producing crude oil from
the Jubilee Field, which straddles
both the West Cape Three Points
and Deepwater Tano blocks.
This particular TEN Development
FPSO will be moored via external
turret and operated by MODEC,
and will host multiple subsea
tiebacks from the project’s
three principal reservoirs. It is a
significant milestone for MODEC
to assist Tullow and its partners to
develop a world class oil field. And
serves to strengthen MODEC’s
involvement in the development
of oil exploration and production
infrastructure in West Africa,
with president and CEO Toshiro
Miyazaki adding, “MODEC is very
proud to have been selected by
the TEN field partners and GNPC
to provide and operate the FPSO
PAGE 68
I have every confidence that we will meet these targets and look forward to working with the Government of Ghana and with our partners to deliver the TEN Project”
© Tullow Oil Plc
for TEN, a world class facility in a
world class field. We are equally
pleased to be a part of the team
that will provide a needed energy
resource for the benefit of the
people of the Republic of Ghana.”
Progress was reported to be at
around 30% in mid-2014, and
continues apace to remain on
schedule today.
Mid-2014 was a particularly
fruitful t ime for the project,
which currently stands at
around the halfway mark of its
completion, and very much on
track to produce its f irst oi l in
the summer of 2016. France’s
Val lourec, the world leader
in premium tubular solutions
primari ly serving the energy
market, was selected in May to
supply its premium l ine pipes
and welding services, and wil l
provide Subsea 7 with seamless
offshore l ine-pipe. Dominique
Richardot, Managing Director
of Val lourec’s Pipe and SURF
activit ies, declared: “Val lourec’s
involvement in several parts of
the TEN project demonstrates
our abi l i ty to generate added
value for our cl ients through
f lexibi l i ty, synergies and close
cooperation.” Only a couple of
months prior, Aibel Thai land
had cut the f irst steel for
topside modules for the TEN
project at its subcontractor
Deeline Construction Co. Ltd.’s
fabrication shop in Rayong,
Thai land. This contract was
signed in February last year, and
wil l see Aibel Thai land del ivering
seven modules with a weight of
9,400 tons to the FPSO vessel.
With Ghana’s national oi l f irm
expecting to pump 190,000
barrels of crude per day by
the end of 2016, between
them the Jubilee Field and
TEN cluster wil l shoulder an
enormous responsibi l i ty in
achieving this. Head of Ghana
National Petroleum Corporation
(GNPC) Alex Mould told Reuters
exactly how this target would
be hit: “By the end of 2016, we
should be producing something
close to 60,000 bpd from TEN,
and we should be looking at
130,000 barrels per day from
Jubilee. We won’t hit the
130,000 bpd early next year,
most l ikely towards the end of
the year.”
Oil is crucial to Ghana, and
the TEN cluster looks set to play
a huge role in restoring f iscal
stabi l i ty, with oi l revenue central
to budget projections and total
crude output set to be above
200,000 bpd by late 2016
TEN ClUSTER dEvElOPMENT
PAGE 69
PAGE 70
Introducing ring rolling machine RAW 1000/1000Editorial: Rosie DeWinter
Total World Energy speaks to seamless rolled ring specialist, Euskal Forging, who has established an impressive position as world leader manufacturer for wind turbine foundations. With its fifth ring rolling machine ordered from SMS Meer on its way and set to be the second most powerful one in the world the company has built to date, the new ring rolling machine will allow Euskal Forging to produce rings with a 10.2 meter diameter.
First founded in the early 1970’s
by current owner Mikel Redín, the
company started the ring rolling
processes by the 1980’s.
“Mr. Redín started the business
rolling rings up to 1.5 meters
and 400 kilos each. Now we are
reaching five ring rolling machines
and our capacity goes from 0.5
meter diameter to 10.2 meters,
from 30 kilos to 80 tons, so
we can say that is the widest
manufacturing range in the world,”
explains Mr. Jose Luis Azurmendi,
Commercial Director at Euskal
Forging.
As of this year, Euskal Forging
now manufactures seamless rolled
rings and flanges with a maximum
outer diameter of Ø10.2m and
with a maximum weight of
approximately 80 tons.
With three manufacturing
locations - 47,000 m² covered area
- in Northern Spain, Euskal Forging
ensures the quality of its products
by ensuring it employs the finest
raw materials, including the highest
quality vacuum degassed steels
in carbon, alloy, stainless, duplex
steels and super alloys.
With a wide and extensive variety
of raw materials and with the
company’s strong commitment to
its customers, the heating process
is then carried out in ten gas
furnaces that can be programmed
to automatically execute heating
curves.
The manufacturing continues
with an automatic punching
process which is considered to be
the most innovative design within
the sector today.
Lastly, the heat treatment,
perhaps the most critical process,
is carried out at Euskal Forging’s
facilities with the use of further
advanced technology to provide
different treatments, including
normalising, annealing, quenching
and tempering.
EXPLORING NEW MARKETS“Our approach varies based on
the different industries that we are
looking at. Today, we can say that
Euskal Forging has been able to
put the company into new growing
markets,” Mr. Azurmendi explains.
“I’m not speaking geographically,
I am speaking about the nature of
the markets. In the offshore wind
industry, we are currently world
leaders when it comes to flanges
for the foundations. Last year we
bid for six projects and we won five
of those highlighting the market
share that we have today.
“So our approach is more on
intelligence and supplying know-
how to the supply chain in order
to make the market possible. We
are improving our technology and
the mechanical properties of the
products that are used today in
these industries, specifically in the
offshore sector as this is becoming
increasingly demanding,” explains
Mr. Azurmendi.
Deputy Commercial Director, Mr.
Josu Ortego explains that the Oil
and Gas industry uses a similar
strategy to that of the offshore wind
industry in terms of technology but
implements a different approach in
offering a one-stop shop solution.
“For these markets the company
has a similar service approach
to the customers. Traditionally
we were involved only with the
production of the rings, but in the
last six or seven years, we have
started integrating more added
value to the products, such as
machining, gear-cutting, welding,
induction hardening, basically
anything that the customer might
need to have a product ready to be
GRUPO EUSKAl fORGING
PAGE 71
assembled.
“Also the
new investments will allow us to
produce rings up to 10.2 meters,
which are quite in demand for
certain applications in the Oil and
Gas downstream industry like
Coke Drums. We hope the market
will continue along this path and
substitute existing products with
our technology thanks to this new
machine,” Mr. Ortego adds.
SMS MEER CONTRACTThis powerful machine was ordered
in September 2013 - Euskal
Forging’s fifth ring rolling machine
from SMS Meer - which is set to
be the second most powerful ring
rolling machine that SMS Meer has
built to date.
The new radial-axial ring rolling
machine will allow Euskal Forging
to extend its production spectrum
to produce rings up to 80 tons in
weight, a maximum ring diameter of
10.2 meters and maximum height
of 1.7 meters.
The
Raw
1000/1000
machine
will be fitted
with modern ancillary
equipment so products such
as the tower flanges built for
wind turbines for example, can
be produced on a cost-efficiency
and cost-effective basis. This will
help to ensure Euskal Forging
continues to meet the ever
increasing demands of the industry
for larger rings as wind turbines
become taller and larger generators
are needed up to at least 8MW,
especially for the offshore sector.
The new innovative ring rolling
machine will be installed at Euskal
Forging’s plant in Sestao with
commissioning starting this year.
“For the new machine we have
focused in three different areas:
Firstly, getting this diameter to
support rotating machines whose
diameter is always getting bigger,
up to eight or nine meters, so we
have to be ready for that. Secondly,
the power of the machine is also
very important for us so we can
roll very big sections of about 1.5
meters; with section we mean the
difference between the outer and
inner. There are some markets
which traditionally have a lot
of problems to get this type of
product with big sections because
the power needed to roll them is
very high and they have to use
alternative processes like free
forging.
“Finally, the height, currently we
are getting 1.7 meters with this
machine, so for certain nuclear and
oil and gas applications, we can
replace the more traditional method
seen today. With this new machine,
we believe these three areas will
be the factors for our success,” Mr.
Azurmendi explains.
Historically, the big rings and
gears would be made from
castings, but with this new machine
and progress in technology, the
traditional production method
can be replaced with a more
cost-effective alternative and a
cheaper solution for Euskal Forging
customers.
“Let’s say that our approach
in some areas is to go into new
industries and try to be ready for
the new technology, especially
for the offshore. Secondly, to see
in which markets we can replace
historical production methods
with our products to reduce the
PAGE 72
“In the offshore wind industry, we are currently world leaders when it comes to flanges for the foundations”
cost significantly,” explains Mr.
Azurmendi.
A COMPETITIVE EDGE Mr. Azurmendi explains that Euskal
Forging has developed a strategic
approach that is very customer
centric: “We have defined
ourselves as part of their supply
chain so we are very much focused
on ensuring we reduce the costs
for our customers allowing them to
win orders and to make the product
more competitive. Our service,
customer support, relationship
with customers and understanding
of their needs is important. We
give them support in terms of our
knowledge and integrating added
processes that otherwise would
have to be sub-contracted.”
In addition to valuable customer
service, Mr. Azurmendi includes
innovative machinery and its plant
location amongst its competitive
attributes: “We are prepared
with state of the art machinery,
especially with the latest new
investments we have done at a
strategic location,” he explains.
“My career, with 30 years in this
business, shows me that in the
demanding markets we work, the
price is not always the key factor.
There are factors like quality, time-
management and no mistakes –
which, at the end of the day, help
to make a product that is cheaper
than the one from our competitors.
“One contributor to our ‘just in
time’ factor is our location which
in some cases makes the project
possible. Last year we did a full
study of the rivers in Europe that
can be used for transport and
we have found that we are able
RING ROLLING MACHINESGAINING MEASURABLE ADVANTAGES WITH A STRONG PARTNER
Ring rolling machines and plants from SMS Meer, characterised by cost effi ciency, precision and long service life, produce high-precision state-of-the-art rings with profi les coming very close to the desired fi nal contour. The portfolio extends from individual machines such as ring blank presses, rolling machines and ring expanders through to complete and fully automated plants. Thanks to the modern automation system with its own control desk, the process parameters can be adjusted quickly – for seamless process integration. The result: Integrated plant solutions in which all compo-nents are effi ciently matched to one another.
Quality unites – a fact that our customers and we discover time and again with every new project. Together we develop solutions that give our partners the com-petitive edge in their business. Thanks to this good cooperation, SMS Meer is a leading international company in heavy machinery and plant engineering.
www.sms-meer.com
AZ Schmieden_151x112_GB_RZ.indd 1 11.02.15 17:37
“Now we are reaching five ring rolling machines and our capacity goes from 0.5 meter diameter to 10.2 meters, from 30 kilos to 80 tons, so we can say that is the widest manufacturing range in the world”
GRUPO EUSKAl fORGING
PAGE 73
to reach by barge, 90% of the
customers that use very large rings.
Firstly, we load the rings directly from
our quay into the boat and at the
closest main port to the customer,
straight onto a barge that delivers the
ring into the customer’s site. This is
very important, we recently won an
order for a customer, to deliver several
rings of more than nine meters and
more than 40 tons each and the only
way to make this possible was to
deliver them by boat.”
“The location by the harbour is
therefore a key competitive advantage
for us, when it comes to the transport
of especially large rings which can
reach more than seven meters. This
is very special and unique and there’s
nobody else in Europe that has that
availability, and only a few in the
world,” explains Mr. Ortego.
CURRENT INVESTMENTSTalking of current investments for
Euskal Forging, Mr. Ortego explains
that at its Irura plant, the company
is focusing on new areas, namely
super alloys: “This arm of materials
goes mainly into the aerospace and
the Oil and Gas sector. For that, we
have carried out the investments
defined by the engineering team
and increased our engineering head
count. Investments in machinery
include the press and ring rolling
machine, to control and be able
to work in a more precise way like
these materials require. In heat
treatment, the furnaces need to
have a very tight control of the
temperature and we have done the
investments to adapt those furnaces
to be able to work in the aerospace
sector.
“Additionally we are investing
to get the approvals from the end
customers and OEM’s (Original
Equipment Manufacturer). We are
running different trials with them to
get the qualifications,” Mr. Ortego
adds.
“In Sestao, in line with the new
ring rolling machine up to 10.2
meters, we are also buying and
installing heat treatment furnaces
up to 10.2 meters,” explains Mr.
Azurmendi. “This means that we
can now supply our rings in black
condition or machined up to 10.2
meters.”
A FOCUS ON SUSTAINABILITYWith an impressive position
as world leader manufacturers
and playing an important role
PAGE 74
within the offshore wind industry,
sustainability is certainly a subject
that Euskal Forging take very
seriously.
“We are working in offshore wind
but we have also moved into more
renewable sectors like hydro power
and we are currently in talks with
leading hydro power companies.
Presently, we are working on
projects in Austria and in the South
of Germany so there’s a lot of focus
over there to generate electricity
through these type of turbines.
“Obviously our interests are
focused on renewable energy
because the machines and turbines
are much bigger than in previous
years. When we decided to start
thinking four years ago about the
new ring rolling machine up to
10.2m - we had to analyse the
growing power of the machines
and the size of the components. So
this has been the driving factor for
buying this machine,” explains Mr.
Azurmendi.
Additionally, Euskal Forging also
follows environmental standards,
namely the ISO: 1401. “There
have been recent investments to
have regenerative furnaces which
will help to reduce pollution and
consumption of energy by around
30% or 40%,” Mr. Ortego explains.
This regeneration of the heat is
a very positive and important move
for Euskal Forging, particularly from
an expense point of view.
A POSITIVE FUTUREFor Euskal Forging, over four
decades on, Mr. Azurmendi
explains that the future now lies in
two directions: “In our Irura Plant
– where we are making rings up
to four meters - the focus is on
more demanding materials, this is
very clear. We see our customers
are developing smarter products
using less material so this
indicates that the grades used
have to achieve higher mechanical
properties and therefore we are
dedicating a lot of time to our
research department.
“In our Sestao plant, we are
focusing on very big equipment
in various locations and sectors
like offshore wind. Today some
OEMs have a 6MW wind turbine
approved and there are certain
developments in bigger machines
for the offshore wind energy
up to 10MW, so we are ready
for that. There have also been
developments for big equipment
within the Oil and Gas industry,
rotary equipment within the mining
and cement industry and the
bearing industry,” concludes Mr.
Azurmendi
GRUPO EUSKAl fORGING
PAGE 75
PAGE 76
Excellence in the refining industry
Editorial: Ajuanne Payne
A process engineering contractor with over 40 years’ experience, KT - Kinetics Technology, an Italian based company is a leader in providing solutions and services for the refinery industries. Since inception, KT has successfully completed more than 500 projects across five continents and has made the organic move into full EPC contracting. Andrea Vena, Commercial Director, talks to us here at Total World Energy about KT’s recent projects and significant investments in proprietary technologies…
KT is an international process
engineering contractor, subsidiary
of Maire Tecnimont Group,
with specialist expertise in the
hydrocarbon processing industry.
In recent years the company has
evolved in to a full EPC contractor
and has subsequently been
awarded 20 EPC contracts over the
past five years alone.
Based in Rome, the company
also operates as a provider
and developer of proprietary
technologies, with strong expertise
in sulphur recovery facilities, gas
processing, refinery process units,
hydrogen and syngas production
and process fired heaters.
Their two main areas of specialty
focus on Sulphur Recovery Units
(SRU) and hydrogen production
from steam reforming of
hydrocarbons. KT is an industry
leader in supplying SRU’s and
Hydrogen production units and in
the past decade has completed
more than 100 projects in this field
worldwide.
Andrea Vena states that: “We
define ourselves as a mid-sized
process engineering contractor.
What is the meaning of ‘process
engineering contractor’ - the
meaning is that it is our business
do lump sum turnkey projects,
based on technology.
“We have two main technologies
in our business. One is for a
hydrogen production unit, the other
one is a sulphur recovery unit. We
leverage on this technology - we
don’t just sell the basic design, but
we try to sell an EPC project based
on our know-how and capabilities.”
Established in 1971, KT has
a long and successful history
in the field of high temperature
technologies. The company has
been through a number of name
changes over the years that have
brought it to where it is today.
“In 2010 we were acquired by
Maire Tecnimont Group and we
changed the name to Tecnimont
KT,” explains Vena, “and in 2013
we changed our name again to
KT. The reason was just to recall
the brand, because the problem
that we saw on the market was
that everywhere they knew us as
KTI. Since we’d changed the name
several times it was quite hard to
recognise that we were the same
company. So now our name is KT,
which is quite similar to the original
one.”
KEY PROJECTSJust focusing on KT’s traditional
product line, the company is one
of the frontrunners in the industry.
They are well positioned and well
recognised and have built up a
robust reputation for quality work
and technological know-how. More
recently in the past three years
KT have re-positioned themselves
to specifically target the refining
industry, as well as their original
areas of hydrogen and SRU’s.
KT has demonstrated that, when
targeting refinery projects valued
at around EUR400 million, they
are extremely competitive. One of
the reasons behind this is that the
company’s competitors are huge
company’s targeting projects in
the worth billions of euros, but in
the more mid-sized projects KT
has the kind of flexibility that these
companies don’t have and are able
to tailor their offering much more
easily.
This has proven to be the case
across both their traditional and
new areas of business and the
company has worked on some key
projects in recent years that are a
further testament to their reputation
and expertise.
“Recently in the last two years
we have been awarded with
very important projects in areas
which are close to the areas of
our know-how and capabilities,”
explains Vena. “We have been
awarded a hydro-cracker complex
in Cameroon for Sonara. By Total,
we have been awarded a very
important project - the so-called
Refinery Off-Gas (ROG) project in
the Antwerp refinery.
“We’re now going to sign a
contract for a Delay Coker Unit.
These three projects are in some
way connected to hydrogen needs.
We are trying to expand in areas
which are close to what we are
normally used to doing.”
The Antwerp Refinery project for
Total was awarded in 2014
and is an EPC contract
worth around
EUR200 million.
The aim
of the
project
is to
recover valuable gas, while
keeping disruption to the refinery’s
operations to a minimum.
Vena goes in to detail, explaining
that “the target for this project is
to recover valuable gas from the
gas which is normally flared inside
the refinery. When I say ‘valuable
gas’ I have in mind Ethane,
because ethane is the feed for
the downstream petrochemical
complex. So, the target for Total
was, to try and recover some of
this valuable gas in order to feed
the downstream producing plant.
“There was very severe bidding
for this project, which was involving
us and some other contractors
which are very reputable. For
us, it was very challenging to
demonstrate to the client that our
level of competencies is the same
as the other EPC contractors or
even better. After one year of bids,
we succeeded in being awarded
this project, and the reason was
KT - KINETICS TECHNOlOGy
PAGE 77
that our project execution strategy
was the best.”
The technical constraints of
this project lay in the construction
activity. Due to the fact that the
Antwerp refinery is a very crowded
refinery, for safety reasons
Total needed to minimise the
construction at site and minimize
any need to stop production.
KT’s idea was to arrive at
site with the modules - with the
equipment and instrumentation
ready to install and therefore
minimise the activities at site.
Coupled with the fact that their
proposal was also the most
competitive, KT was successful
against their much larger
competitors.
“Now this project is ongoing,
for more than eight months,”
explains Vena. “We have a full staff
of Total people in our offices, who
are supervising our activities. The
project is very challenging, both in
terms of execution and in terms of
schedule, because for Total time is
of the essence.”
In Cameroun, KT was awarded
an EPC contract worth around
EUR450 million for the Societè
Nationale de Raffinage (SONARA).
The project is scheduled for
completion in 2017 and centres on
the installation of a Hydrocracker
unit for the refinery there.
Vena goes in to further detail
about the project: “In Cameroun
the client is SONARA, which is the
state-owned company for oil and
gas. SONARA refinery is located
in Limbe, Cameroun, which is
not a place where you have a lot
of infrastructure. Cameroon is
completely dependent on Nigeria
for crude oil supply and they have
also their own crude oil - but, this
crude oil is very heavy and has a lot
of sulphur.
“So, in order to process this
crude oil, you need to fit the refinery
with special units which should
be in the position to upgrade this
heavy oil,” explains Vena. “The idea
was to supply a Hydrocracker unit
which processes the heavy oil and
produces distillate. So, we have
this Hydrocracker complex which
also includes a hydrogen plant and
a sulphur recovery unit plant.
“We participated in this bid
against very reputable EPC
contractors and we succeeded.
Once again, the winning card
was the competencies and the
execution strategy, because we
spent a lot of time in Cameroon
trying to maximise the local
content. In Cameroon it’s very
difficult to manage, for example, the
construction.
“We were clever and went
there to better understand what
companies can support us during
PAGE 78
this activity. We spent more than
two months in Cameroon trying
to understand the local content,
which was the key factor for being
successful.
“This is also a key value of our
company – we are very flexible,
we are not rigid. Whenever we
go to some new geography or
new country, we can immediately
mobilise our people to better
understand what the conditions
are there. On one side, we can say
that we have demonstrated we
are competitive, we understand
the complexities of the project and
on the other side we have also
demonstrated we understand the
local conditions and geography.
These were the two success
points.”
SRU PROJECTSSulphur Removal Units, or SRU’s,
can be found in the majority
of all oil and gas processing
facilities throughout the world.
Although not a profit-making unit
for the operator, it is an essential
processing step to regulate the
discharge of sulphur compounds in
to the atmosphere.
The desulfurizing process, or
‘Claus Process’, recovers sulphur
from the gaseous hydrogen
sulphide you find in natural gas
and from the by-product gases
produced when refining crude oil
and in other industrial processes.
One significant SRU project
for KT was for client Lukoil in the
Burgas refinery, Bulgaria. Valued
at an estimated EUR50 million and
completed in 2015, the EPC project
centres around the installation of
two identical SRU trains.
“This sulphur recovery unit is
part of a big investment which has
been made by Lukoil in this refinery
in Burgas, which is the greatest
refinery in Eastern Europe,”
explains Vena. “The overall project
was an H-Oil plant and in this plant
there was a sulphur recovery unit.
“There were plenty of
competitors, more than ten and
once again we were successful a
couple of years ago because we
understood the local construction.”
Vena goes further, explaining
what the key is for this type of
bid: “Whenever you bid for an
EPC contract, one of the most
important things is to properly
estimate the risk of construction
in the country. Bulgaria is not a
very well-developed country - the
local manpower needs to be well
instructed and to be integrated with
ex-patriate people, so our success
was in properly identifying the right
mixture of ex-patriate and local
people for the construction. This
project was awarded two years ago
and just one month ago the plant
was successfully started up.”
HYDROGEN PLANT PROJECT WORKHydrogen is a very important part
of KT’s portfolio and in recent years
they have been awarded several
hydrogen plant projects. There has
KT - KINETICS TECHNOlOGy
PAGE 79
been an ever-increasing demand
to reduce more and more
emissions and by-products from
the refinery processes – which
involves hydrogen. Whenever
there is a need to upgrade crude
oil, there is a need for hydrogen.
Vena goes in to detail about
a recent project award in this
area: “One project which was
delivered successfully a couple of
months ago was again for Lukoil,
in Perm. Perm is an industrial
Russian city which is located on
the Ural Mountains.
“Again, this was completely
new geography for us. If you
went there you would see that
the minimum temperature is
minus 47 degrees, which causes
difficulties in design because
you have to cope with these low
temperatures. There are also
severe constraints in designing
due to the application of Russian
rules, which force you to think in
a different way.”
The Perm Project is worth
an estimated EUR45 million, was
completed in 2015 and is designed
to produce a maximum 40,000
Nm3/h.
KT has displayed repeatedly
that their flexible approach and
attention to detail have ensured
their success in continually winning
projects of a high calibre. Another
key factor that contributes to
the company’s continued growth
and success is its focus on
fostering strong partnerships with
companies.
Vena states that “this is a part
of our DNA. Our company is a
mid-sized company. We try to
have a lot of alliances so the key
words for us are ‘competencies
and alliances’ and we have in
place several alliances with big
contractors like Saipem, like
Technip. We are now trying to
approach Tecnicas Reunidas
because we understand that the
key factor for growth, especially
PAGE 80
“Whenever you have a technology this is something which is living - and you need to feed it every day”
for a company like us which in
refineries is a newcomer, is to find
cooperation with others.”
CONTINUED FOCUS ON RESEARCH AND DEVELOPMENTAs a core value of KT, they
continuously focus on the
development of proprietary
technologies and investment in
research and development. Vena
explains that “when you have
your own technology you have
to maintain it, to benchmark
it against the competitors’
technology. Whenever you have
a technology this is something
which is living - and you need to
feed it every day.
“Just to give you an idea, 5% of
our working man hours are devoted
to research and development. We
are trying to do a lot of things in
that area, especially in sulphur
recovery units. We are developing
a new process to recover sulphur
from H2S, producing hydrogen. We
are developing a new technology
which is named H2S Cracking
which is on one side recovering
sulphur, and on the other side
producing hydrogen.
“We are trying to go for
zero emissions, capping SO2
emissions and producing
hydrogen. This is something
which is ongoing. On paper
this technology works, now
we are building a pilot plant to
demonstrate it and we hope
that in the future we will be in
the position to scale up from the
pilot plant to an industrial plant.
This is something also which
characterises our company -
trying to always pursue continued
innovation in our technology.
With a concerted focus
on innovation, research and
development, KT has ensured
that they stay at the forefront of
the market over the past four
decades. The company has
built up a formidable amount
of expertise in their areas of
specialty and continue to win
important and technically difficult
projects with major clients.
Vena explains that “the key
to KT’s success is the passion
of the people, is the motivation
and is the fact that really we are
completely devoted to the client.
This is something that you cannot
see in bigger companies. We are
always open, we are always keen
to understand the client’s needs,
to always try to follow what they
want and try to be flexible.
“If you could ask to one of our
clients what they think of KT,
maybe this is the answer that
they would give you – that we are
always close to them. Our key
words would be - ‘put a desk in
the clients office’, because if you
are close to the client, you may
understand him, his mentality,
his needs and his problems,”
concludes Vena
KINETICS TECHNOlOGy
PAGE 81
PAGE 82
41 million end users and countingEditorial: Harriet Pattison
A leading European electricity transmission system operator (TSO) in the Netherlands and across Germany, TenneT now ranks among the Top 5 TSOs in Europe today. Total World Energy speaks to Managing Director of TenneT Offshore, Wilfried Breuer, who explains the status of the latest grid connections and TenneT’s continued commitment to sustainable energy…
Q: Tell us about the history of TenneT? When did the organisation start up? TenneT can look back on more than 100 years of
experience in the power transmission business. By
the end of the 19th century various local energy
companies were responsible for transmitting
electricity in the Netherlands. Some of these
companies merged in to regional electricity providers
during the years. In 1949 these regional electricity
companies finally merged to Sep N.V. the predecessor
company of TenneT. In 1998 the Dutch state founded
TenneT Transmission System Operator (TSO) B.V.
with the mandate to operate the national transmission
grid for electricity. Since then, TenneT has been
responsible for the power transmission system in the
Netherlands.
In May 2009 E.ON AG founded transpower
stromübertragungs GmbH with the mandate to
operate the German part of the transmission grid
for electricity which was owned by E.ON AG. As
of 31st December 2009, TenneT Holding acquired
all E.ON AG shares of transpower and founded the
first international transmission system operator in
Europe. In October 2010 transpower changed its
name to TenneT TSO GmbH. TenneT holding and its
subsidiaries TenneT TSO B.V., TenneT TSO GmbH
and TenneT Offshore GmbH are responsible for
planning, expanding and operating the transmission
grid on and offshore in the Netherlands and large
parts of Germany. TenneT Holding is located in
Arnhem (The Netherlands). The German headquarter
is located in Bayreuth.
Q: What is the organisation’s core business and main activities?TenneT is the first international TSO in Europe.
TenneT owns more the 21,000 km of high and
extra high voltage (ehv) power lines and ranks
among the top five TSOs in Europe. The core
business of the Dutch state owned company is
operating, maintaining and further developing the
transmission grid in the Netherlands and large parts
of Germany. TenneT operates overhead power lines
and underground cables on land and offshore. In
Germany TenneT TSO GmbH is one of four TSOs
and operates all 220kV and 380kV power lines in
its control area. TenneT’s control area is the largest
of all German TSOs and covers 40% of the German
territory. It forms a corridor of 140.000 km2 reaching
from the Danish border in the North to the Alps in
the South. More than 20 million German citizens can
rely on the secure power supply provided by TenneT
TSO GmbH. Since the coastal area of Germany and
the Netherlands forms part of TenneT’s control area,
TenneT is responsible for connecting all wind farms
in the Dutch and German North Sea waters to the
power grid onshore.
TenneT TSO GmbH and TenneT Offshore GmbH
will invest about 11 bn. EUR within the next ten
years to fulfil their tasks in Germany. The necessary
grid expansion is mainly driven by the decision of
the German Government to intensively promote
renewable energy sources and shut down all nuclear
power plants by 2022 - core elements of the so
called Energiewende. TenneT with its investments
is the single largest investor into the German
Energiewende.
Q: What is TenneT’s current footprint? Is the organisation planning for further expansion? Is there scope for movement into other industry sectors? What is the target for the organisation over the next 2-3 years? Consolidation? New services?TenneT mainly focuses on the transmission of electricity
in Northwest Europe. There are no plans to venture
into further industry sectors. However, we are carefully
observing the TSO market. As a successful company
we want to further grow steadily and expand our
activities within our core business and supply area.
TenneT wants to further focus on business consolidation
under one company active as two TSOs in two different
countries. New services are already required for the
asset management and service of the offshore HVDC
transmission systems installed in the German beight of
the North Sea.
TENNET
PAGE 83
Q: What is the current progress of the three grid connections - Sylwin1, HelWin1 and HelWin2 – are these still on schedule to take up commercial operation this year?In February 2015 TenneT completed HelWin1 the
second offshore grid connection this year. Just a few
days before, TenneT finished the first large-category
offshore connection with BorWin2 (800 MW). The
HelWin1 connection is capable of transmitting around
600 MW of offshore wind power from the German North
Sea. With the completion of HelWin1, TenneT now
provides around 2,000 MW of transmission capacity in
the German North Sea. With HelWin1 TenneT achieved
a further milestone in terms of the offshore expansion
targets of the German Federal Government.
HelWin1 is now the second offshore grid connection
system in this performance category which offers
the possibility of connecting more than one offshore
wind farm. HelWin1 is already the fifth connection that
TenneT has commissioned at sea. Another seven grid
connection systems are under construction. Overall,
TenneT expects at least 7,100 MW of connection
capacity to be constructed in the North Sea by 2019.
TenneT is therefore ahead of schedule of expansion
targets of the German Federal Government of 6,500 MW
offshore wind by 2020.
SylWin1 is already installed and in trial operation.
TenneT expects to take over SylWin1 from the general
contractor in the second quarter of 2015. SylWin1 has
a transmission capacity of 864 MW and will be the most
remote grid connection so far. The fourth and fifth grid
connection that is expected to be taken over in 2015 will
be HelWin2 and DolWin1. HelWin2 will transmit 690 MW
of electricity and is going to start trial operation in the
first quarter of 2015. Dolwin2 is expected to start trial
operation in second quarter 2015. TenneT expects to
take the projects over from the general contractors after
successful trial operation before summer 2015.
Q: How would you position yourself in the market compared with the competition? Is there significant competition? TenneT TSO GmbH is one of four TSOs in Germany. Since
every TSO is responsible for its own control area there
the business is rather characterized by cooperation than
competition. This also applies to our business relation to
European partners. The other three German TSOs are
Amprion, 50Hertz und TransnetBW.
The integration of a north western European market
zone is one of TenneT’s main focus beyond Germany.
Therefore, TenneT invests constantly in cross-border
connections and realizes them together with neighbouring
TSOs. Among these interconnectors is the subsea cable,
NorNed, which is connecting the electricity markets
of the Netherlands and Norway since 2008. Another
international cooperation is the subsea cable BritNed
between the Netherlands and Great Britain. TenneT
plans further interconnecting subsea cables between
Germany and Norway (Nord.Link) as well as between
the Netherlands and Denmark (COBRA). Integrating the
north western European electricity market is not only
PAGE 84
TENNET
PAGE 85
important to guarantee the energy supply of the future,
but also counteracts high electricity prices. Based on
commissioned projects and further plans, TenneT is a core
facilitator of high-voltage transmission interconnections
around the North Sea states and markets.
Q: What are some of the key projects TenneT has been involved with over the past few years? Tell us about the BorWin2 grid connection – what was the timeline for this project and what role will it play?Offshore wind energy largely contributes to the
success of the German Energiewende and plays
a major role in the energy mix of the future. Since
December 2006 TenneT TSO GmbH is responsible
by German Energy Law to provide offshore
windfarms in the North Sea with the necessary grid
connections and to operate these connections.
TenneT already invested more than EUR €9 billion
in offshore infrastructure. This makes TenneT the
biggest investor in the German Energiewende. With
all our offshore grid connections already in operation
or awarded, more than 7000 MW of offshore wind
energy can be transmitted to the grid onshore.
According to German law, TenneT is obliged to
operate grid connections with an overall capacity of
12000 MW until 2024. TenneT is well on its way to
accomplishing these targets in time.
The first alternating current grid connection,
which is in operation since 2009, connects the
offshore windfarm alpha ventus with the German
onshore grid. Our first large scale direct current
grid connection is BorWin1 which is transmitting
electricity since 2010. This has been the first
project using HVDC technology to collect offshore
generated electricity. The second direct current grid
connection (BorWin2) is operational since January
2015. BorWin2 provides a crucial contribution to
the German Energiewende. BorWin2 was the first
of offshore grid connection systems in this capacity
class, which will be completed in 2015. In addition,
this is the first system enabling the connection of
more than one offshore wind farm.
A test operation of several weeks preceded the
completion of BorWin2. Wind power from the Global
Tech I wind farm could already be fed into the grid during
this phase. Furthermore, 50% of the grid connection
capacity is reserved for the Veja Mate wind farm.
BorWin2 also marks the completion of a direct current
grid connection with a length of 200 km for offshore wind
farms. A consortium consisting of Siemens and Prysmian
as contractors of TenneT had already finished the
construction of offshore and onshore converter stations
in summer 2014. BorWin2 is a joint investment project of
TenneT and Mitsubishi Corporation.
Q: Tell us about TenneT’s role with HVDC technology – how has it been implemented in past and present projects?HVDC technology is mainly applied, until recently,
for operation of longer submarine cable transmission
projects. TenneT had invested in this technology
already over ten years ago with BritNed and NorNed
interconnectors. With the additional application
of HVDC technology to connect remote offshore
windfarms, TenneT is now by far the most advanced
user of this innovative transmission technology among
the European TSOs. Building on this portfolio and
experience and due to the increasing demand of
transmission capacity onshore, led to the planning of
the first HVDC power link in the control area of TenneT.
In order to make use of the increasing amount of wind
energy in northern Germany and to compensate the
decreasing power supply of nuclear power plants in the
south, especially power lines that connect northern and
southern Germany are necessary. According to the grid
development plan of 2014, the German TSO will have
to build 3,500 km of extra high voltage lines to meet the
demands of a secure electricity supply. 2,000km will be
realized as HVDC power lines. The project Sued.Link
will be realized in an 800 km long corridor together with
the German TSO TransnetBW. From 2022 on Sued.Link
will be in operation and transmit 4 GW of electricity
Q: What is required from the staff of TenneT? Do they need experience in a similar role? Can full training be given for all positions? What has been the key to the organisation’s success over the years?
With the increasing demand of the German
Energiewende, TenneT became more of a project
driven company within the last few years. TenneT
has been increasing its organization and workforce
in recent years. A majority of our staff have not
spent many years with the company, which creates
a motivated and open minded approach, but also
challenging environment to pass on experience and
know-how. Our success is based on highly motivated
and extremely well trained staff in all units within
TenneT. As one of Germany’s top employers, we most
certainly provide our employees with the training
necessary to fulfil their tasks. According to the
German magazine FOCUS, TenneT is the number one
employer among all German medium sized companies
in the energy business. This award is based on
surveys that also touched topics such as career
opportunities.
Q: Is the constant dr ive towards ‘greener’ business hav ing an impact (posi t ive ly or negat ive ly ) on the organisat ion?The German Energiewende and the recent
offshore program of the Dutch Government
definitely inf luence our business. Just last year
TenneT was mandated to connect the Dutch
offshore windfarms in the North Sea to the Dutch
PAGE 86
TENNET
PAGE 87
onshore grid. TenneT gained a lot of experience
with these kinds of projects in Germany. The
Dutch Government shared our view that no
company in the world has more expertise in this
business than TenneT and mandated us to bui ld
f ive grid connections.
The future al location of electr icity production
wil l drastical ly change within the upcoming
years. Already today the centres of electr icity
production tend to be more remote than they
used to be. As a consequence we have to bridge
the growing distances between production and
consumption with new power l ines. According
to the German Government 80% of al l electr icity
wil l be provided by renewable sources. Most of
these generation capacit ies are located in the
north, while in the south of Germany industries
and big cit ies need a constant and rel iable power
supply as well. In 2023, with al l nuclear power
plants being out of service, the south of Germany
wil l have to import 33% of its electr icity demand.
This is only possible when the TSOs provide the
necessary grid infrastructure. Therefore, TenneT
is strengthening the mashed grid onshore and
wil l add north-south HVDC connections to the
existing ehv AC power grid.
Apart from that the feed in of electr icity
became more volati le with increasing capacit ies
of wind and solar energy. In order to cover the
t imes when the demand for electr icity is high
but the weather condit ions don’t al low a high
electricity production through wind and solar
energy, it is our task to cover this demand with
a sophisticated management of power reserves.
This management became more and more
demanding over the past years. Today our experts
in the control centres have to intervene around
three t imes per day to secure the power supply.
Just f ive years ago they had to intervene three
t imes per year!
Furthermore, we are conscious of the regional
and local impact of our activit ies on people and
the environment, for example when planning and
constructing new high voltage l ines. Therefore,
corporate social responsibi l i ty plays a signif icant
role in our dai ly business. Moreover, we buy green
certi f icates for grid losses in our control area and
started a programme to reduce SF6 emissions
A bridge across the sea.Proven Siemens HVDC grid access solutions enables the harvesting of wind power generated far away from shore.
Siemens gr id access so lut ions create the necessary access ib i l i ty to of fshore wind farms that are long d is tances f rom the main land’s e lect r ica l gr ids, by the usage of h igh-vol tage d i rect-current (HVDC) t ransmiss ions. Implemented in to a Siemens substat ion p la t form, th is t ransmiss ion technology a l lows the per fect ly re l iab le and ef f ic ient
t ransmiss ion of large amounts of energy, supply ing thousands of households wi th renewable wind energy. A l ready operat iona l p la t forms l ike the BorWin beta or HelWin a lpha, a l ready handed over to the customers, are per fect examples of S iemens’ exper t ise and re l iab i l i ty and are on ly the beginn ing of S iemens’ dedicat ion to of fshore gr id accesses.
siemens.com/energy/grid-access-solutions
PAGE 88
A more sustainable
future?Editorial: Rosie DeWinter
Currently importing 97% of all its energy needs, Jordan has set an impressive target to achieve a 1.8 GW of renewable energy capacity by 2020 and with the Jordanian Government awarding 200 MW of solar and wind energy capacity to project developers earlier this year, this target now seems more attainable than ever before…
Established in 1967, Jordan’s
publicly owned power
transmission company,
NEPCO, was set up to take
over the power generation,
supply and meet the needs
of the customers, establish
transportation networks and
export energy.
Looking to increase its energy
independence – Jordan currently
imports 97% of its energy needs
– it plans to reduce this to 60%
and increase its renewables
contribution to the country’s
energy generation mix by 10%
by the year 2020.
Approximately 92% of the
sector is dependent on fossil
fuel sources (oil and natural
gas), while electricity demand is
expected to grow by 5.5% per
annum until 2020.
There’s no doubt as to the
potential that Jordan holds,
with an estimated 330 days
of sunshine a year and wind
speeds reaching heights of 11.5
meters per second in the hil ly
areas, solar and wind energy is
starting to make its mark in the
country.
Earlier this year, the Jordanian
government awarded 200 MW of
solar and wind energy capacity,
which has set the stage for
many more renewable projects
in the pipeline to meet the target
set up of achieving 1.8 GW
renewable energy capacity for
2020.
There is currently less than
2 MW of wind energy installed
and operating in Jordan, though
the Government has set goals
for 7% of all generation being
sourced from renewables by this
year and increasing that to 10%
in just five years’ time.
CURRENT RENEWABLE PROJECTSThe largest photovoltaic (PV)
facil ity in the Middle East – the
52.5 MW Shams Ma’an Project -
in a Power Purchase Agreement
(PPA) signed between NEPCO
and the project developers,
plans to sell electricity at a
tariff below other solar projects
in the country normally sell ing
at US$0.169 per kWh, for
US$0.148 per kWh when it is
completed in 2016.
The project, due to start
construction this year, wil l be
jointly developed by Qatar’s
Nebras Power, Diamond
Generating Europe (a subsidiary
of Mitsubishi Corporation), both
with 35% stake and Jordan’s
Kawar Group with 30%. In a
financial agreement that has
been signed for 20 years, it wil l
be jointly overseen by a number
of companies including; Japan
for International Corporation
(JBIC), Nippon Export and
Investment Insurance (NEXI),
Mizuho Bank and Standard
Charter Bank.
US based company, First
Solar, were awarded the EPC
contract for the Shams Ma’an
project to provide the advanced
thin fi lm photovoltaic modules
and finalized a long-term
operations and maintenance
contract for the project.
In a statement, Ahmed S.
Nada, Vice President for the
Middle East at First Solar
explained the benefits of this
power plant: “Shams Ma’an
NATIONAl ElECTRIC POWER COMPANy
PAGE 89
has already established a new
benchmark for the independent
production of renewable energy
in the region, demonstrating
how the selection of the
right technology and service
providers creates considerable
value, which, in turn, helps
attract experienced institutional
investors.
“We are proud to have
been given this opportunity to
leverage our industry-leading
expertise in project development
to create a truly remarkable
renewable energy asset. We
now look forward to delivering
a world-class power plant that
wil l directly contribute to efforts
to address the country’s urgent
energy needs.”
Labelled as Stage 1 of the
Jordanian Government’s plans
for several new renewable
projects, the Jordanian Ministry
of Energy and Mineral Resources
have now approved 12 PV
projects of varying sizes with
a total installed capacity of
200 MW and two wind power
PAGE 90
“Renewable energy projects are very important in Jordan as they rely on readily-available local sources”
NATIONAl ElECTRIC POWER COMPANy
PAGE 91
projects. More tenders are
expected to be awarded in the
future by Jordan in a bid to meet
its target to install 600 MW solar
PV capacity and 1,200 MW of
wind energy capacity by the
year 2020 in an effort to reduce
the country’s dependence and
reliance on fossil fuels.
With a proposed generation of
117 MW, the Tafi la Wind Farm, is
to built, owned and operated by
Jordan Wind Project Company
(JWPC). Among the country’s
first uti l ity scale wind farms, the
power generated wil l be supplied
directly to NEPCO.
Last month, H.E. Mohammad
Hamed, Minister of Energy and
Mineral Resources, checked
the status of the construction
work at the power plant in
Tafi leh, 180km southwest of
Amman, which is expected to be
commercially operational at the
end of this year.
The Tafi la wind project is
sponsored by EP Global Energy
(EPGE), Inframed Infrastructure,
and Masdar Power with financing
arranged by the International
Finance Corporation (IFC) and
with participation from the
European Investment Bank (EIB),
the Export Credit Agency of
Denmark (EKF), the OPEC Fund
for International Development
(OFID), the Dutch Development
Bank (FMO) and Capital Bank of
Jordan.
SOLARTECH JORDAN 2015 CONFERENCETaking place at the beginning
of February in Amman, the
conference was held to explore
further opportunities into
renewable energy projects
and presented the country’s
plans and incentives within the
renewable energy field. With
its strong strategic location
and political stability, Jordan is
certainly an attractive investment
within the renewable energy field.
With the current projects
– the wind project in al-Tafi la
and the Shams Ma’an project
– the conference aimed to form
partnerships and joint ventures
within the renewables field.
Kamal Hendi, one of the
conference’s organisers
explained: “We are here today
to introduce the investment
climate in Jordan in this field.
Investors from most European
countries, as well as officials
from all sectors to whom we can
present investment opportunities
in Jordan, are here at the
conference.”
As one of the first Arab
countries to make this leap
into renewable energy and
introduce incentives, customs
exemptions and tax breaks
for revenue from renewable
energy projects, Hendi added:
“Renewable energy projects are
very important in Jordan as they
rely on readily-available local
sources.”
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SHALE SUCCESSIn addition to the renewable
energy plans already in the
pipeline – Jordan has invested
in shale gas, signing a US$2.2
bil l ion build-operate-transfer-
deal, in a bid led by Estonia’s
Enefit.
Jordan’s Natural Resource
Authority estimates a total of
70 bil l ion tons of commercially
viable shale oil available, making
it the fourth largest shale oil
f ield power plant in the world,
following Narva in Estonia.
This project wil l stand as the
country’s
very first oil
shale power plant, with plans to
have it built and up and running
by as early as 2018. A 470MW
plant, with construction starting
this year, it is hoped to add 20%
to Jordan’s total energy needs,
cutting the energy bil l by an
estimated $500 mill ion a year.
An evidently financially viable
investment – the electricity
produced will be purchased at
half the current market price –
the shale power plant is set to
create 3000 jobs with a further
700 in place for the ongoing
commitments
and operations.
The Jordanian
Government is set
to receive royalties of
$2.11 per to – amounting
to an exponential $21 mill ion
on a yearly basis – the plant is
expected to consume 10 mill ion
tons of shale oil every year.
JORDAN’S RENEWABLE FUTURE?Iad Jibril, Director of Renewable
Energy at the Ministry of Energy
and Mineral Resources said at
the conference: “The year 2015
will see the implementation
of several renewable energy
projects with a capacity of 500
megawatts, this wil l create many
job opportunities for young
Jordanians.”
Director of the Jordanian
PAGE 92
NATIONAl ElECTRIC POWER COMPANy
PAGE 93
Environment Society, Ahmed
al-Kofahi, emphasised the
importance and necessity of the
government’s increased interest
to implement further renewable
energy projects in the coming
years: “Renewable energy,
whether from wind or solar
power, is abundant in Jordan,
which has more than 300 days
of sunshine a year and there are
many areas in Jordan suited to
producing energy from wind.”
“We are al l for energy that
is green, renewable and eco-
fr iendly. There is high demand
not only from large companies
but also from homes, schools,
hospitals and small companies
which have started instal l ing
these systems for their
electr icity supply,” al-Kofahi
added.
With two renewable energy
projects underway and the
Jordanian Government issuing
plans for more in the fol lowing
years, the future for NEPCO and
the power generation of Jordan
looks set f ir i tto reach its target
to achieve 1.8 GW renewable
energy capacity by 2020
“Renewable energy,
whether from wind or
solar power, is abundant
in Jordan, which has
more than 300 days of
sunshine a year and there
are many areas in Jordan
suited to producing
energy from wind”
Subsea UK is the industry body
dedicated to the British subsea
industry, whose aim is to “increase
business opportunities at home
and abroad for the sector.” With
over 290 member companies,
Subsea UK is very much focused
on promoting the expertise and
track record that sets the UK
subsea sector apart.
The Subsea UK Expo is the
yearly focal point for the industry
in Britain and the awards are
the celebration of British subsea
success locally and abroad that
kicks off the event. The awards are
an opportunity for industry figures
to recognise the achievements of
their peers and the UK’s leading
position on the global stage.
The oil and gas sector is
certainly not short of exhibitions
and events, but Subsea UK
recognised the need for a
dedicated celebration of the talent
and world-class practices in the
subsea sector and held their first
awards in 2007. They have kept
up the tradition ever since and
are a respected organisation for
their role in advocating for the UK
subsea sector.
This year’s glamourous event
was held at the Aberdeen
Exhibition and Conference Centre
(AECC) and attended by over 850
guests.
Sponsored by 3Sun Group,
2015’s Company of the Year
PAGE 94
A time for recognition
Editorial: Ajuanne Payne
The Subsea UK awards are a prestigious annual event aimed at celebrating the successes of UK companies and individuals in the Subsea sector. This year’s awards dinner was held the 11th February on the first day of the Subsea UK Expo – here we take a look at the winners of the night…
award was won by energy services
company, Proserv, for excellence
and overall performance in the
subsea sector. The company
has been running for over half a
century and has risen to become
a global leader in the provision of
technology services to the subsea
sector.
Proserv were especially
recognised for their revolutionary
solutions for subsea companies
that help provide more efficient
and cost effective ways for them
to operate. The company has
almost tripled in size over the past
three years, with over 2,200 staff
and revenues of £264 miliion and
operating in 11 countries.
Dave Lamont, CEO of Proserv,
said in his acceptance speech that
“there is only one better thing than
winning - and that’s winning as
a team. We have 2,200 fantastic
people that make the difference
every day so it’s a great honour,
but it’s an even greater pleasure
because it’s done by the team.”
Sponsored by Subsea UK
themselves, the award for
Outstanding Contribution to
the Subsea Industry went to
commercial diving veteran, Alf
Leadbitter, of the Underwater
Centre in Fort William. An award
in recognition of the influence an
individual can have on the industry
over the course of their career.
Leadbitter has always worked
in commercial diving, ever since
starting his career in 1975 and has
made a significant contribution
to setting global standards for
commercial diver training. He
also had a major influence in the
area of closed bell commercial
diver training in Australia and has
worked at the Underwater Centre
for the past decade.
This year’s Innovation and
Technology award, sponsored
by Simmons & Co, was won by
Tracerco in recognition of the
success of its subsea pipeline
inspection technology ‘Discovery’.
Touted as a major breakthrough in
the industry, oil companies using
the technology can inspect subsea
flowlines non-intrusively for both
integrity flaws and flow assurance
problems from the exterior of the
pipe, without removing any of the
coatings.
Lee Robins, Tracerco’s head of
subsea services, explained that
the company’s “ethos is to strive
for technical excellence in order
to add value to our customers,
and Discovery is an excellent
example of how our research
and development team is able
to work with our customers to
create a technology solution that
overcomes their most significant
challenges.”
Express Engineering Oil and Gas
scooped the Global Exports award,
sponsored by Aberdeenshire
Council, for successful exportation
to the global subsea market. The
precision engineering and machine
component manufacturing firm has
seen an exponential 58% increase
in imports over the past two years,
trebling sales to £19 million.
The New Enterprise award,
sponsored by Apache, celebrates
the success of a new start up
enterprise in the subsea sector
and was awarded to Tooltec. The
firm was formed in 2013 and has
only four employees, but boasts
seven major subsea clients. Over
the past year Tooltec has doubled
the size of its facilities.
Finally, Alan Muirhead of Ingen
Ideas took the award for Emerging
Young Talent, in appreciation of his
development and contribution at
the company. Since joining Ingen
as a graduate, Alan has dedicated
himself to the mentoring of the
next generation of engineers.
Considering some of the
challenges facing the industry
currently, it is valuable to have
events such as the Subsea UK
awards to highlight the exciting
and positive developments in the
industry and remind us of the
advancements being made by
companies and individuals every
day. We look forward to seeing
who the winners will be in 2016...
PAGE 95
SUBSEA UK AWARdS, 2015
Dave Lamont, CEO of ProservSubsea UK Award winners
The impact that taking a holiday
has on a person’s motivation and
creativity is significant. The phrase
‘recharge the batteries’ is often used
to describe how people feel when
they get a much needed holiday from
work and this feeling is backed up by
clinical evidence.
Employers find that their
employees are happier and more
productive following a break
from work and equally as much,
executives and directors are able
to come back from leave relaxed
and with a fresh perspective. Here
at Total World Energy we have
selected our top picks for isolated
luxury – truly outstanding island
destinations to visit across the
globe.
NOSY BE, MADAGASCARVoted the number one island
destination in Africa by TripAdvisor,
Nosy Be means ‘Big Island’ in
Malagasy and is located off the
northwest coast of Madagascar. With
breath-taking scenery, white sand
beaches and turquoise waters, the
island is a real tropical paradise.
This destination is a popular one
and ideal if you want to go on a luxury
island getaway, but maybe take the
family with you. You could take the
whole family scuba diving to view the
coral reefs that surround the island,
or experience the famous local wildlife
and visit the native lemurs in the Nosy
Komba Lemur Park.
PAGE 96
for when you need a break from businessEditorial: Ajuanne Payne
With the stress and busy schedule that comes with working in the corporate world, everyone needs a holiday to get away from it all once in a while and recharge the batteries. What better way to truly relax than to visit an island destination? Across the globe there are some truly incredible ones, and here at Total World Energy we have selected our top five…
Espiritu Santo, Vanuato
For more grown-up pastimes the
island is home to volcanic lakes and
rum distilleries. There are smaller
islands nearby to visit and if you are
looking for both seclusion and luxury
at the same time you can holiday
on a private yacht charter that can
also take you to the different sights
nearby.
LEWIS AND HARRIS, THE OUTER HEBRIDESAnother TripAdvisor number one -
Lewis and Harris is perfect if you
love a more windswept northern
beauty and the chance to see
the Northern Lights from your
bedroom. The island is one of
more than 100 islands off the West
coast of Scotland that make up the
Outer Hebrides.
If you are looking for
isolated luxury, there is some
excellent high-end self-catering
accommodation available to rent
on Lewis and Harris, with the
North Atlantic ocean steps from
your door. A holiday here would
be ideal for someone who loves
outdoor pursuits – lovely walks
across the island and home to
the legendary Callanish Standing
Stones and medieval ruins.
ESPIRITU SANTO, VANUATOEspiritu Santo in the nation of
Vanuato is located in the Pacific
region of Melanesia and is an
island paradise famous for the
pink sands of its Champagne
beach and its truly relaxing
atmosphere. There is a range of
luxury accommodation to choose
from, including the extravagant
five-star Ratua Private Island
Resort – a 30 minute motorboat
ride from Espiritu Santo itself.
The island is dotted with a
number of freshwater blue holes
ideal for swimming and the sea
surrounding it is scattered with
wrecks and home to reefs and
tropical f ish – another island
location perfect for diving.
A must-see destination local ly
is the Mil lenium Cave – cross
a bamboo bridge to get there
and experience bathing under
the waterfal l and see the bats
and swallows that make it their
home.
ST. LUCIAIt is hard to pick just one
Caribbean island to add to the
list of luxury getaways, but St.
Lucia is definitely in the top ten
for indulgence, natural beauty and
PAGE 97
dESTINATION dIRECTOR
Lewis And Harris, The Outer Hebrides
Espiritu Santo, Vanuato
lively entertainment. Synonymous
with Caribbean romance, St.Lucia
is wonderful for a romantic break
from work and is not short of five-
star accommodation options.
The interior of the island features
lush rain forest, covered by banana
plantations and crowned by the
twin peaks of the Pitons on the
Southwest coast.
For visitors who are looking for
less quiet, the spring to summer
months offer a variety of events for
holidaymakers and locals alike – to
name a few, in April there’s the St.
Lucia Golf Open, and May sees
the big event of the season on the
island, St. Lucia Jazz.
TIOMAN ISLAND, MALAYSIATioman Island in Malaysia is
our final pick and the largest
in a volcanic group of islands
off the east coast of Malaysia.
This last destination is an area
of outstanding natural beauty,
covered in tropical jungle,
waterfalls, mountain streams and
home to a variety of rare animals
and birds.
If visitors are looking for
adventure, there is great rock-
climbing to be had on the Gunung
Nenek Semukut cliff face or
Dragons Horns. Or, if a more
laid-back holiday is needed, the
island is surrounded by wonderful
golden sand beaches.
Luxury accommodation can
be found at the Berjaya Tioman
Beach, Golf and Spa Resort or the
boutique resort of JapaMala, for
when it is time to relax in a spa or
sample the gourmet food on offer.
Any one of these wonderful
islands would make beautiful
locations for a relaxing break from
work and after all - when working
so hard it is important to take the
time to reap the rewards
PAGE 98
Tioman Island, Malaysia
Nosy Be, Madagascar
Espiritu Santo, Vanuato
dESTINATION dIRECTOR
© Airbus S.A.S. 2011
PAGE 99
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