twe september14
DESCRIPTION
Septembers edition of Total World EnergyTRANSCRIPT
Enagás Spanish underground storage
Bestra Offshore engineering from Norway
Baku Shipyard Targeting the Caspian region
Atlantica Tender Drilling From West Africa to Brazil
Deepwater Production is
on the up It has been reported that deepwater production is to double by 2020 and a central part of that production for all companies is
going to be the FPSO unit. There are currently over 200 FPSOs operating around the world so Total World Energy talks to Alastair
McGregor of Omni Offshore Terminals and finds out more about the FPSO market and how the company is helping it grow.
september 2014
more than business www.totalworldenergy.com
Provider of drilling, sidetracking and workover services, on land in Russia and offshore in the
Caspian Sea
www.eurasiadrilling.com
Provider of drilling, sidetracking and workover services, on land in Russia
and offshore in the Caspian Sea
Provider of drilling, sidetracking and workover services, on land in Russia and offshore in the
Caspian Sea
www.eurasiadrilling.com
Provider of drilling, sidetracking and workover services, on land in Russia
and offshore in the Caspian Sea
EDITOR Joe ForshawSUB-EDITOR Harriet PattisonWRITERSRosie DeWinterColin ChineryTim HandsRoland Douglas Christian Jordan Helen Lake
STUDIO DIRECTOR Martyn OakleyDESIGNER Eleanor Horner
RESEARCH DIRECTORChris BolderstonePROJECT MANAGERS Rick LiddimentBen RichellKieran ShukriJodie RettieSALES DIRECTOR Andy WilliamsSALES MANAGER Daniel MarshallSALES EXECUTIVE Daniel Gillespie
ACCOUNTSMike Molloy Jane ReederMANAGING DIRECTOR David HodgsonOPERATIONS DIRECTOR Chris BolderstoneFINANCE DIRECTOR Scott Warman
2a Ardney rise, Norwich, Norfolk, Nr3 3QH, United Kingdom
If you would like more information about ways in which total World energy can promote your business please call +44 1603 411568 or email | [email protected]
East Coast Promotions Ltd does not accept responsibility for omissions or errors. The points of view expressed in articles by attributing writers and/or in advertisements included in this magazine do not necessarily represent those of the publisher. Any resemblance to real persons, living or dead is purely coincidental. Whilst every effort is made to ensure the accuracy of the information contained within this magazine, no legal responsibility will be accepted by the publishers for loss arising from use of information published. All rights reserved. No part of this publication may be reproduced or stored in a retrievable system or transmitted in any form or by any means without the prior written consent of the publisher.
© East Coast Promotions Ltd 2014
Last month, one of my colleagues told me that he was going to have solar panels installed on the roof of his house. At first I thought this was a good idea and sounded pretty normal – everyone’s doing it aren’t they?
Then I heard more about the cost and process involved and I thought again, is this really worth it? I know every company is different but energy is such a precious thing and to utilise it in the wrong areas, even with the right intentions, is a waste.
This all comes from my number one question surrounding renewables – if more solar, wind, hydro and other renewables keep cropping up, why does energy constantly get more expensive?
My colleague told me that he would eventually get more money back through sales of his excess generation back to the grid and this money would repay the initial (substantial) outlay. But for me it all seems rather difficult and unnecessary. It did make one thing evidently clear to me – traditional energy sources; oil, gas, coal, nuclear are still needed in a big way and this won’t change anytime soon.
With this is mind, this month we talk to a number of key players in the ‘traditional’ energy industries. Baku Shipyard in Azerbaijan, a relatively new yard that is set to take the offshore industry in the Caspian Sea by storm and the state gas transmission company Croatia who are looking to build on already excellent coverage statistics. Then there is Omni Offshore Terminals whose innovative nature again proves that although renewables are popular and important for the future, traditional sources cannot be overlooked and still have a huge part to play. We always want to hear your thoughts about renewables and traditional energy sources so get in touch online @TWEmagazine
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EDITOR’S PAGETraditional versus new energy
3
NEWS All that’s happening in the energy industry
6
ENTREPRENEUR China’s energy giant
14
INNOvATION Using gravity as energy
16
OmNI OffShORE TERmINAlS Offshore’s Omni presence
18
BAkU ShIPyARD Shipyard of choice for Caspian region
26
flUxyS Growing the European gas network
32
ATlANTIcA TENDER DRIllING West Africa to Brazil and everything in-between
38
ENAGAS Rosa María Nieto tells us about underground storage
42
BESTRA Norwegian engineering at its finest
48
PlINAcRO Marin Zovko talks Croatian gas
54
REINSTEIN Efficiency is the key
60
GATE TERmINAl The key is at the gate
72
fUTURE POWER Solar floating on water?
80
GADGET BOx Futuristic exoskeletons for the shipyard
82
Contents
CONteNts
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#twenewsShell announces Marjoram-1 gas discovery in deep-water Malaysia Shell last month announced further
exploration success in Malaysia
with another gas discovery at
the Shell-operated deep-water
Marjoram-1 well.
“Our strategy to expand
our heartland areas through
technologically advanced
exploration is delivering tangible
success in deep-water in
Malaysia,” said Andrew Brown,
Shell Upstream International
Director.
“We have a long history in the
region, and the addition of new
natural gas resources this year
ensures we are able to continue
to provide cost-effective, reliable,
cleaner energy options for the
future.”
The Marjoram-1 well is located
180 kilometres off the Malaysia
coast in Block SK318, in 800
metres of water. Earlier this year,
Shell announced the Rosmari-1
gas discovery, also in this block.
Block SK318 is operated by
Shell with an 85% interest, with the
remaining 15% held by PETRONAS
Carigali Sdn Bhd.
Robert Davies - Shutterstock
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NeWs
Circle Oil finds oil off Tunisia
Circle Oil Plc, the Middle East and
Africa focused oil and gas exploration,
development and production company,
has announced the preliminary results of
drilling of the well EMD-1 in the Mahdia
Permit, offshore Tunisia.
The El Mediouni-1 well (EMD-1) is
located within the north central area of
the Mahdia Permit in a water depth of
240 metres, 120 km east of the port of
Sousse. EMD-1 was spudded on 8 June
2014 and drilled to a TD of 1,200 metres
MD in the Upper Ketatna carbonates. The
stratigraphy encountered in the well was
exactly as prognosed and very good light
oil shows were encountered both in the
Lower Birsa carbonate primary target and
the Upper Ketatna carbonates secondary
target over a combined interval of 133
metres.
Circle Oil has said that the strong
hydrocarbon indications encountered in
the Birsa and Ketatna carbonates confirm
the existence of a working petroleum
system in the Mahdia Permit for this and
other prospects. The robustness of the El
Mediouni trap has also been proven. The
losses incurred within the target formations
give further confirmation of high quality
permeability, the company says.
The gross oil zone interval in the Lower
Birsa is 77 metres and the Upper Ketatna
has a minimum interval of 48 metres,
subject to confirmation by logs. Using
known reservoir and fluid parameters
from equivalent formations in the Gulf of
Hammamet, the internally estimated most
likely recoverable prospective resources
discovered by the EMD-1 well are
approximately 100 MMBO.
During the drilling of the target
carbonates, severe mud losses occurred
and multiple remedial operations to restore
circulation were performed. This included
the pumping of numerous CaCO3 pills,
conventional lost circulation material and
large volumes of sea water. The hole
conditions in the well deteriorated rapidly
and multiple attempts at open hole logging
by wireline and tough logging conditions
equipment failed. Ultimately the decision
was taken to terminate further efforts and
suspend the well.
Circle Oil has been granted a six month
extension to the Mahdia permit to January
2015. It then has the right to elect for two
additional renewals of the permit for 3
years each with a commitment of one well
per period.
Commenting on the results of the EMD-
1 well Prof. Chris Green, CEO, said:
“We are extremely pleased to add this
potential large discovery to our portfolio
in Tunisia. It is unfortunate that the hole
conditions became untenable so quickly
and we were unable to conduct a full log
evaluation of the hydrocarbon column in
the well. Nevertheless we intend to take
our appraisal effort forward on the Mahdia
Permit as quickly as possible following
this proof of the El Mediouni petroleum
accumulation and will provide further
updates of our plans in due course. We
look forward to working with ETAP on the
next stage of this project.”
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Aquaterra Energy unveils new ‘revolutionary’ Riser Monitoring SystemAquaterra Energy has launched a
unique Riser Monitoring System
(RMS) which the company believes
will revolutionise the integrity
management process and deliver
superior reliability and accuracy of
data acquisition for the offshore oil
and gas industry.
The RMS design utilises a
combination of direct riser strain
measurement, subsea data logging
and riser analysis processing
algorithms to generate accurate,
real time operational guidance on
optimising drilling and workover
operations in water depths of up to
100m.
Eric Doyle, Regional Director –
Europe at Aquaterra Energy, said:
“Heightened sensitivity around
health and safety and project
critical risks associated with riser
fatigue have resulted in an urgent
need for innovation in riser integrity
management, driving our innovation
in this field. This new RMS will assist
our clients with precision planning
of maintenance activities and deliver
real potential for safe asset life
extension.
“It combines rapid data
processing and high fidelity output
with proven analysis expertise, to
offer our clients a leading edge
solution to integrity management.
The solution is delivered through the
use of a bespoke, standard length,
riser joint, which replaces a standard
riser joint in the stack up, with pre-
installed data acquisition and logging
hardware, resulting in virtually zero
impact on operations.
“The integration, complexity and
practicality of the data handling in
the RMS is unique to Aquaterra
Energy and the accumulated strain
data can either be stored locally or
transmitted back to surface for live
evaluation.”
A full scale prototype of the RMS
unit was developed by Aquaterra
Energy in the structures laboratory
of the University Engineering
Department at the University of
Cambridge and, in partnership
with the University, all elements
of the system have been tested
and verified to ensure maximum
reliability.
Dr Chris Burgoyne, Head of
Structures at the University of
Cambridge, said: “This is an
interesting use of sensing technology
for the offshore oil and gas industry
and the structures group is happy to
be working with Aquaterra Energy
on such an innovative application.”
Aquaterra Energy’s RMS uses
pre-processed computationally
intensive data which ensures that
analysis, including the usually
time intensive component fatigue
utilisation determination, is rapid
and that a full range of potential
input conditions, tabulated in
a multi-dimensional matrix, is
provided. Measurement, evaluation
and specification of key variables,
specific to each strain cycle
contained within the measured data,
allow an accurate representation
of the critical boundary conditions
to be produced. This subsequently
enables comparison with the
pre-processed data, as well as
directional fatigue assessment for
each constituent component along
the full riser length.
The system’s four strain gauge
devices facilitate superior reliability
and accuracy to alternative data
acquisition methods. The gauges are
protected from accidental damage
by a casing which also contains the
logging hardware, in combination
with modular battery pack expansion
slots, which facilitate up to five years
logging time.
Doyle concluded: “Unlike
conventional methods, abutment to
the riser is by a specially developed
subsea epoxy resin, achieving one
of the products key objectives
– measuring the riser and not a
clamp. This improves riser stain
measurement accuracy whilst
eliminating the need for welding
which causes damaging fatigue hot
spots.”
The development of this RMS is
illustrative of Aquaterra Energy’s
approach to delivering innovative
outcomes to offshore challenges.
The expertise and attention to even
the smallest detail that our team
employs in delivering such solutions,
is intrinsic in all our riser engineering
work, and highly valued by our
clients.”
The RMS is fully compliant with
DNV-RP-F206 and ISO 13628-7
specifications and certified to ATEX
Ex ib IIB T4.
#twenews
NeWs
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Siemens: Order Placed for 67 Dudgeon Offshore Wind TurbinesSiemens Energy has received an
order from the Norwegian energy
utilities Statoil and Statkraft for the
Dudgeon Offshore Wind Farm in the
UK. Siemens will manufacture, deliver,
install and commission 67 Siemens
direct-drive wind turbines rated at 6
megawatts (MW) each and equipped
with a 154-meter rotor.
Installation will start in early 2017.
The combined value including a five-
year-service contract is approximately
GBP 500 million – nearly 650 million
Euros.
The Dudgeon offshore wind project
is located 32 kilometers north of
the city of Cromer in North Norfolk.
Dudgeon offshore wind project
is owned by Statoil (70 percent)
and Statkraft (30 percent). Statoil
holds the responsibility as operator
beginning from the construction
phase. With an overall capacity of
402 MW Dudgeon will provide clean
power to more than 410,000 UK
households.
“We are proud to convince more
and more customers about the
advantages of our 6-megawatts-
offshore machine,” said Dr. Markus
Tacke, CEO of the Wind Power
Division of Siemens Energy. “With
Dudgeon we extend our project
pipeline for this new turbine. This
gives us the opportunity to further
ramp up production capacity, which
is a precondition to bring down the
costs for offshore wind.”
Wind power and energy service
are part of Siemens’ Environmental
Portfolio. Around 43 percent of its
total revenue stems from green
products and solutions. That makes
Siemens one of the world’s leading
providers of eco-friendly technology.
© Robert Fruehauf - Shutterstock
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#twenews
Ensco wins jack-up rig contract in Malaysia Ensco, a UK-based offshore drilling
contractor, has secured a three-year
contract for its ENSCO 52 jack-up rig.
The ENSCO 52 jack-up, of
the F&G L-780 Mod IIC design
was contracted with Murphy Oil
company in Malaysia.
In its fleet status report issued
Monday, Ensco revealed that the
day rate for the contract was set in
high $90.000s up from the previous
day rate of mid $80.000s with the
same client.
Furthermore, the rig owner used
the opportunity to report on the rig’s
safety record ENSCO 52 saying
that the rig recently surpassed three
years without a Recordable Incident.
Malaysia is Murphy Oil’s main
asset base producing more than
40% of the company’s total 2013
net production.
Murphy holds majority interests in
seven separate production sharing
contracts (PSCs): Block K, Block
H, Block P, SK 309, SK 311 and
SK 314A, and three gas holding
agreements in PM 311.
In 2013, Murphy’s Malaysia net
production was about 86,000 boepd,
and the company booked total proved
reserves 125 MMBO and 406 BCF.
The U.S. based oil company is
reportedly looking to divest around
30 per cent of its Malaysian assets.
Industry players such as Japan’s
Mitsubishi and Mitsui , India’s
ONGC and Oil India, Vietnam’s
Petrovietnam and Kuwait Petroleum
Corporation have all reportedly
shown interest in making a swoop
for Murphy’s equity in Malaysia.
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NeWs
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In August 2014 the oil product tankers
SCF Yenisei and SCF Pechora,
operated by OAO Sovcomflot, have
begun transporting the first oil from
the Novoportovskoye Oilfield, located
in the Gulf of Ob, in the Far North,
Russia.
Gulf of Ob is the largest bay of the
Kara Sea. It is located at the mouth of
the Ob River and bordered in the west
by the Yamal Peninsula. The harsh
Arctic climate means that the Gulf of
Ob is packed with ice until July, with
the bay beginning to freeze over once
again in October.
SCF Yenisei is currently loading oil
while SCF Pechora is being prepared
to start cargo operations shortly. Both
vessels are under charter to Gazprom
Neft.
SCF Yenisei and SCF Pechora, with
a deadweight of approximately 47,000
tonnes each, are the largest vessels
currently operating in this area of the
Far North. Both these Russian-flagged
oil tankers have a high ice class (1A).
Their voyages will include transits
along the Northern Sea Route. During
their operation, experts from SCF
Group will continue to study this high
latitude route. They will also work on
arrangements for long-term operations
supporting large-scale projects,
involving the export of hydrocarbons
from the Yamal Peninsula, for Gazprom
Neft LLC.
Evgeniy Ambrosov, First Deputy
General Director of OAO Sovcomflot,
noted:
“The start of oil exports from
the Novoportovskoye Oilfield,
using Sovcomflot’s ships, forms
part of the company’s strategy to
steadily increase the provision of
transportation and logistics services
supporting the largest oil deposits
located in the far north of Russia. SCF
Group also continues to develop the
use of high-latitude Arctic routes from
the Atlantic to the Pacific Oceans.
“This year, the company plans
to make a number of commercial
voyages along the Northern Sea
Route, continuing to accumulate
experience in the transportation of
large cargo consignments via Arctic
routes, using our high-tech fleet and
experienced crews to address the
unique challenges faced by domestic
oil and gas companies.”
Oil exports begin from Gazprom’s Gulf of Ob field
© Merkushev Vasiliy - Shutterstock
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#twenewsKeppel delivers ‘Dukhan’ jack-up to GDI, QatarBumi Armada has announced the
signing of a contract with eni Angola
S.p.A. for the chartering, operations
and maintenance of a Floating
Production, Storage and Offloading
vessel (FPSO) for deployment at the
Block 15/06, East Hub field located
in deep water offshore Angola.
The contract is for a firm charter
of 12 years with options of 8
yearly extensions. The estimated
aggregate value of the contract
for the firm charter period is
approximately USD3.0 billion
(equivalent to approximately RM9.6
billion), with a further aggregate
contract value of USD0.9 billion
(equivalent to approximately RM3.0
billion) if eni Angola exercises all the
extension options.
The FPSO is expected to start
operations in the Block 15/06 field
in the fourth quarter of 2016.
Commenting on the signing of the
Contract, Hassan Basma, Executive
Director and Chief Executive
Officer of Bumi Armada said, “The
Contract for the Block 15/06 field
marks Bumi Armada’s largest FPSO
contract to date, in both contract
value as well as the VLCC vessel
which we will be using for the
conversion, and clearly marks our
entrance into the top tier of global
FPSO players. Work on the FPSO
for the 15/06 field has already
commenced in April with the award
of the LOI. We are confident of
delivering the FPSO on time and on
budget in Q4 2016.”
Bumi Armada will be using a
VLCC class tanker for this FPSO
conversion. The FPSO will utilise
an external turret with 18 risers and
umbilicals connected to the turret.
The FPSO will also have a storage
capacity of 1,800,000 barrels while
having a crude oil production rate
of 80,000 bopd oil production,
120,000 bwpd water injection
and 120,000 MMscf gas handling
capacities. The 4th Generation
FPSO will have a topside weight of
15,000 tonnes and will be moored
at a water depth of 450 meters.
The FPSO for the 15/06 Field will
take Bumi Armada’s total FPSO fleet
to 9 vessels (including an LOI for
the Madura BD field) and increases
the order backlog to RM33.3 billion
(comprising RM21.7 billion of firm
contracts and RM11.6 billion of
optional extensions).
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NeWs
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Samsung Heavy Industries (SHI) has
officially announced that it will merge
with Samsung Engineering Co.,
Ltd, the first and largest engineering
company in Korea.
The merger between Samsung
Heavy Industries and Samsung
Engineering was decided during
their board of directors meeting on
September 1 to create a “world-class
total solution provider for shipbuilding
and onshore and offshore services.”
The merger ratio will be fixed at
1:2.36. Therefore, Samsung Heavy
Industries will issue new stocks so
that the shareholders of Samsung
Engineering can exchange their
shares for the Samsung Heavy
Industries’ shares and receive 2.36
Samsung Heavy Industries shares for
every Samsung Engineering share
they own.
The two companies plan to hold
a special shareholders meeting on
October 27, 2014 and complete the
merger process on December 1,
2014.
Through the merger, Samsung
Heavy Industries will gain
engineering, procurement, and
project management capabilities,
which are the strengths of Samsung
Engineering, and establish a stable
foundation for the growth of its
offshore plant business.
Meanwhile, Samsung Engineering,
which has focused its business in
onshore hydrocarbon plants, will
be able to diversify into high value-
added projects such as onshore
LNG and offshore plants by securing
Samsung Heavy Industries’ offshore
plant fabrication capabilities, which is
recognized as one of the best in the
world.
The merger will give the two
companies a chance to become a
global top-tier EPC (Engineering,
Procurement and Construction)
company. Their goal is to grow into
a world-class total solution provider,
increasing their combined revenues
of 25 trillion in 2013 to 40 trillion won
in 2020.
“The two companies will be reborn
as the world’s most competitive plant
company based on our world-class
manufacturing facilities, fabrication
experience, and outstanding technical
manpower in the onshore and
offshore businesses,” said Dae-Young
Park, President and CEO of Samsung
Heavy Industries.
Choong Heum Park, President and
CEO of Samsung Engineering said:
“We will emerge as a total solution
provider that caters to the diverse
needs of our clients by combining
the expertise and technologies we
have each accumulated as individual
companies in the plant, shipbuilding,
and offshore industries.”
Samsung Merges Its Heavy Industries and Engineering
© Samsung Village
Being an entrepreneur usually coincides
with the fundamental goal of business -
profit. People get into business to make
money. One way or another, if you are
an entrepreneur you are likely to be in
the money making game.
Of course, money can be made in
almost every industry around the world.
Even in the smallest of sectors, there’s
always a canny individual or group who
manage to make a niche commercially
valuable.
And the energy industry is no
different. We have seen in the past that
entrepreneurs are the drivers of business
and in all of the different sectors of the
industry, entrepreneurs help create
wealth, create employment and create
opportunity.
This month’s example is no different.
Li Hejun of Hanergy Holding Group. He’s
a self-made success and the 47 year old
was recently added to the prestigious
Forbes list of global billionaires.
A renewable energy specialist, Li has
seen exponential growth of Hanergy in
the last few years.
Headquartered in Beijing, the
company was formed in 1994 and
focuses on solar energy but Li himself
has interests in solar, wind and hydro
power.
A big contributor to his personal gain
has been the Chinese government’s
investment in renewable energy over the
past decade. Last year the government
announced that it would pay higher than
expected prices for solar power.
Further positivity was realised,
especially in the share price, after the
company announced it would buy
thin-film solar technology and shares
in German company Solibro GmbH for
$45 million. Eventually, Li and Hanergy
bought Solibro from Q-Cells for an
undisclosed amount, at the end of
2013.
His estimated net worth stands at
$7.3 billion and along with his successful
solar business, he owns the largest
privately held hydro power plant in the
world in Western China.
At last year’s Forbes Global CEO
Conference in Bali, Li said that he
expects half of the world’s energy to
come from renewable sources by the
middle of the century, quite a prediction
from the man who is originally from
Guangdong Province, one of China’s
most important economic regions.
In the Guangdong Province, a hilly
area made up mostly of Hakka people,
residents are famous for their frugality
and hardworking nature. This was
evident in Li’s early career where he sold
electronics, mainly calculators. Upon
starting up his first business, where
he was lent 50,000 yuan by a former
university lecturer (Guo Kai – Jiaotung
University), his hardworking side was
again demonstrated and, although he
eventually failed in logistics, he paid
back the loan in full.
“He wasn’t somebody who talked a
lot; he went out and did things,” Guo Kai
told Forbes magazine.
Li graduated from university with a
mechanical engineering degree and his
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cleaning up chinese energy
Li Hejun of Hanergy Holding Group is an entrepreneur with serious ambition. His expertise in mechanical engineering have helped him to grow one of China’s foremost clean energy companies, and amass an impressive personal fortune along the way.
Editorial: christian Jordan
cleaning up chinese energy
first break in hydro power came when
he helped with the construction of a
dam across the Dongjiang River and
this led to the building of the Jin’anqiao
dam which was connected in 2011
and brings at least 2.4 million kilowatts
to the grid. Today, his company has
10 hydropower dams, 18 solar power
plants, two wind power sites and
over 10,000 employees in 14 different
countries.
Like any true entrepreneur, Li is
not happy to sit still. He is always on
the lookout for growth and this was
demonstrated in January last year
when He purchased US companies
MiaSole and Global Solar Energy.
These purchases, along with the Solibro
acquisition, have positioned Li and
Hanergy as a global leader in copper
indium callium deselenide, or CIGS,
thin-film technology, a sector where
Li hopes to take on the leaders who
include First Solar.
And all of this is not just of personal
benefit to Li. Think back to the Beijing
Olympics of 2008. Remember the
smog that dominated headlines before
the event kicked off? China is still in a
situation where its pollution levels are
almost out of control parking fresh
health concerns for global onlookers.
Measurements of air pollution in China,
including ozone and PM2.5 (measured
by the density of particulate matter
smaller than 2.5 micrometres in size),
were measured at the start of 2013
and the results came back as ‘off the
chart’, higher than the maximum 755
μg the US Embassy’s equipment can
measure. It has even been reported that
smog from China has reached as far
as California. This pollution is a result
of China’s fast industrialisation and its
power sources of imported oil and coal
fired power stations. As far back as
seven years ago, the World Bank said
that 16 of the world’s most polluted
cities are in China.
And all of this makes Li’s ambitions
even more important and even more
noble. It has been reported that a
strategy for the company going forward
will include the installation of thin-film
technology onto single buildings,
creating mini power stations that don’t
draw from the grid. Li is a vice chairman
of the All-China Federation of Industry
and Commerce, and this will only help
him to achieve his goals of a cleaner
China.
But perhaps the most important
thing about Li, and what makes him
the perfect example of an energy
entrepreneur, is his ambition to succeed
even after achieving so much. Li himself
has even admitted, he no longer needs
to work. “I could stop working… I like
golf,” he told Fobes in an interview.
The Jin’anqiao Hydroelectric Project
generates $500 million a year of free
cash flow for a Hanergy arm but
nevertheless, Li wants to continue
working, continue improving China’s
energy mix and continue creating
opportunities for people all over
his country – signs of a truly great
entrepreneur
eNtrepreNeUr
© Airbus S.A.S. 2011
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As renewable sources of energy become
more and more popular throughout the
world, there is still a fundamental problem
that exists – renewables such as wind
farms, solar parks or biomass facilities
feed straight into a national grid; but what
happens if you don’t have access to
the grid? What about in less developed
nations where the grid does not cover the
entire population? And what about more
developed nations where the grid fails to
keep up with demand from a growing
population?
Clearly a solution is needed that
provides safe, fast, cheap renewable
energy to a single person or home and
that solution is looking like it could be
closer than ever before in the form of
GravityLight.
GravityLight is an innovative product
developed by British inventors Martin
Riddiford and Jim Reeves of industrial
design outfit, Therefore.
The pair were responding to a
challenge set out by international charity
SolarAid, which tasked inventors with
creating a LED lantern for under $6.
Inspired, the pair created Deciwatt, a
venture to put their ideas into practice.
The main aim of the challenge was to
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The simplest of energy now powering safe light where it’s needed most Editorial: Joe forshaw
Around the world there are approximately 1.5 billion people without reliable access to proper electricity. As the global population grows, this figure will grow with it. This of course means that people have to turn to other energy sources to light their homes - sources such as kerosene - which is dangerous, expensive and bad for the environment. However, GravityLight could be the innovation to provide a real alternative to kerosene.
come up with an alternative to kerosene
lamps which are dangerous, polluting,
expensive and unsustainable.
At its core, GravityLight is a very simple
device. It produces only a deciwatt or
two of power but is clean, infinite and
importantly, free.
Imagine a wind up torch but more
sophisticated and less effort-intensive,
the GravityLight uses gravity power
to produce light. A weight of between
eight and 12 kilograms is attached to a
hook on the end of a cord. The weight
then uses gravity’s energy and is pulled
downwards turning a set of small gears
and a small generator which powers an
LED bulb. When the weight reaches the
floor it will have created enough energy to
power the light for 30 minutes (on a low
setting – 15 minutes on high setting). At
this point, someone will need to hoist the
weight back to the top of the cord, taking
all of three seconds.
Initially, the inventors found that the
problems included small parts breaking
all too easily and the weight cord often
being over or under loaded. This was
quickly resolved and now a red light will
flash if the device is loaded incorrectly.
Also, the gears have helped make the
GravityLight more safe replacing the
original bearings which were weak and
would become faulty under pressure.
In a TED speech, Jim Reeves said:
“Nearly a third of the world’s population
live off-grid without access electricity. I
found this statistic incredible, I had no
idea this was the case. Many of these
people are not rural or remote, they are
urban, they have electricity available if
they could get connected but they can’t
afford it.
“When you’re off-grid, what do you
do for lighting? There are so many things
that we take for granted, it’s hard to
imagine what life would be like off-grid.
The likelihood is you’ll use kerosene and
SolarAid are trying to eradicate kerosene
lighting from Africa. They’re not giving
away lanterns, they’re building a network
of entrepreneurs to sell and distribute
their products to people who rely on
kerosene.
“But SolarAid had a problem – their
products were too expensive. They
were out of the reach of the people they
wanted to reach most. They needed to
find a way to make a product for $6 so
that they could change the game.”
Reeves said they started by looking
at what was available and what it
cost to make and the instant problem
was batteries. Batteries were just too
expensive for the $6 budget and they are
also unsustainable. “We almost had to
say to SolarAid, ‘this can’t be done’ and
we don’t like saying that,” he said.
After the prototype was developed,
extensive field trials were needed. Reeves
said that estimates suggested they
would need around $55,000 for the trail
– money which they didn’t have. So, they
turned to crowdfunding. This was a great
decision seeing the target reached within
four days. “It snowballed; people got it,”
said Reeves.
At the end of the crowdfunding
campaign, GravityLight has raised
$400,000 and a large network of
connections with people willing to
help. “We employed the extra funding
to accelerate the development from
prototype to working product.”
The device was improved and
could now also power other products
– periphery lights, radios etc. It seems
like the problem had been solved.
GravityLight could provide instantly
available power and light, anytime.
Time Magazine called it one of the best
25 inventions of 2013, CNN called it one
of the top ten revolutionary innovations
of 2013 and it won the Aid Innovation
Challenge AidEx in 2013. But most
importantly, among all the accolades
and awards the device has garnered, it
is helping people who really need it and
proving that there is an alternative to
kerosene
INNOvAtION
© Airbus S.A.S. 2011
pAGe 17
pAGe 18
Offshore’s Omni presence
Editorial: colin chinery
In its 26 year history, sector global leader Omni Offshore Terminals, part of Eyal Ofer’s Zodiac Group, has delivered 23 conversion projects with two FPSOs and 21 FSOs of varying complexity. Headquartered in Singapore, its operational up time is phenomenal - 99.99 per cent. “It’s about focusing on our core competence and delivering sustainable, economically viable projects,” says CEO Alastair McGregor.
Versatility and time to first oil have
made floating production, storage
and offloading (FPSO) vessels a
favoured operational component for
offshore oil and gas operators.
The number in service or available
for deployment has increased 96%
over the past 10 years, and the
International Maritime Associates
estimates a further 140 to 150 will
be needed if all 132 currently visible
projects proceed to development.
And with converted FPSO vessels
a perfect match for marginal fields
or small reserves where capacity
required is low, Alastair McGregor,
CEO of Omni Offshore Terminals,
leading provider of FPSO solutions
and asset management, is
unsurprisingly bullish.
“The future of the business looks
very, very good.”
Part of Eyal Ofer’s Zodiac Group,
Omni designs, builds, owns and
operates offshore units globally. And
in the 26 years since it was founded,
the Singapore-headquartered
company has delivered 23 conversion
projects with two FPSOs and
21 FSOs of varying complexity
across mooring systems, operating
environments, sub-sea installation,
power generation and other
specialised equipment.
Usually based on a converted oil
tanker hull, a FPSO is equipped with
hydrocarbon processing equipment
for separation and treatment of crude
oil, water and gases arriving on board
from sub-sea oil wells via flexible
pipelines.
It is a concept that allows
companies to produce oil in more
remote areas and in deeper water
than is economically possible with
other technology such as fixed piled
structures.
Storage capacity for the treated
crude oil produced is equipped with
an offloading system to transfer the
crude oil to traditional or shuttle
tankers for shipment to refineries,
rather than pipeline transportation to
shore.
CONVERSIONS DOMINATE “While we are more than happy
to build new, the reason why
conversions are dominant in the
industry is time to first oil. If you
go for a new build, you will not
generally meet the oil company’s time
schedule,” says McGregor.
“Occasionally you will see a new
build, but these typically are done by
the oil companies directly, answering
a need where there is an exceptionally
long schedule and the field
development programme is worked
around the delivery of the FPSO.
“We very much pride ourselves
on completion on time - which is
of exceptional importance to the oil
companies – and, along with this, our
up time operational performance,”
says McGregor.
“And here we have a phenomenal
record - a 99.99 per cent operational
up time since 1988. It’s one of our
core strengths and a very powerful
marketing tool that we use when
talking to prospective clients.”
Established with the aim of
extending the useful life of tankers
from the wider sailing fleet, Omni
launched two floating storage and
offloading vessel (FSOs) projects in
1990 - one of which is still operational
with an oil major.
“It’s quite unusual to find such
an asset operational for such an
extended period of time, and this
underlines the strength, quality and
nature of the service and conversions
that we operate.
MARKET LEADERS“In the mid-2000s we were
recognised as the market leader in
FSOs and looked to expand into
other areas while working primarily on
our core competence.
“So we investigated moving into
the FPSO business using all the
competences we had in the FSO
sector but adding the production
element on board. Our first contract
began in 2006 and went into service
in 2008 - in a harsh environment off
the coast of New Zealand.
“Not only have we moved into
FPSOs, we have also expanded the
capability of what equipment we put
on vessels, tailoring for the specific
needs of our clients whilst maintaining
OmNI OffsHOre termINAls
pAGe 19
a very close working relationship with
them.”
FPSOs have many advantages
over other production floaters,
including field storage capability and
deployment in locations economically
inaccessible to pipeline infrastructure.
Water depth is not a constraint
– FPSOs operate on shallow to ultra-
deepwater fields and in environments
ranging from the benign to the harsh.
They are also less weight sensitive
than other floating production
systems, while the extensive deck
area of a large tanker provides
flexibility in process plant layout.
“We are the largest providers of
FSOs in the world, but that doesn’t
necessarily make us the largest
providers overall of FSOs and FPSOs
because we don’t try to be everything
to everybody.
“We are not an engineering house;
we stick with our core competence
and look at the mid-sized FPSOs -
60,000 to 70,000 barrels.
“An ultra-deep 250,000 barrels
production is not an FPSO that we
would typically look at since the risk/
reward ratio is not commensurate to
the Omni business model. Those who
play in those very high-end projects
have often had difficulties in recent
years. And that’s not where we want
to be.”
BOILER-SUITED CEOAlastair McGregor terms his career
background “unusual. Originally I was
an engineer, studying first at Imperial
College in London. Later I went to the
Management School at Cranfield, and
as a result moved into the financial
world and became a banker with
Salomon Smith Barney.
“It was while I was there that I
became, for five or six years, an
adviser to the Omni Group before
actually joining it in 2003 as Chairman
and CEO of Tank Pacific and Tank
Pacific Offshore Terminals. So I have
always been in charge of Omni. From
my perspective, one day you will find
me in a boiler suit in a shipyard and
the next day wearing a business suit
in a boardroom talking to financiers.”
A defining Omni characteristic is
the skill sets of its management team.
“We don’t try to be everything to
everybody; we know our strengths
and we work on those strengths
with our customers. We try to create
tailored solutions rather than ‘this is
pAGe 20
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“The outlook for the industry as a whole is very, very positive - and particularly for Omni given our track record and success rate”
OmNI OffsHOre termINAls
pAGe 21
what we have done before; let’s just
copy it.’ That’s not our approach.”
Headquartered in Singapore
– location of the bulk of tanker
conversions – and with offices in
Bangkok and Kuala Lumpur, Omni’s
operational reach extends from
Brazil to the South Pacific, with a
concentration in South East Asia.
“We have been in Australia, the
Middle East, Angola, and Cameroon
for example, so there’s a real
diversification. In some cases we
operate the platforms on behalf of a
client as well.”
LOCALISATION AND OMNI TRAININGLocalisation is a strategy shaped by
corporate preference and in some
cases national legislation. “We will
open a local office, move people there
from our central office and recruit
local people. In some geographies,
we have a nationalisation programme
where we have to take a certain
percentage of local nationals -
typically 80 per cent - good examples
being Thailand and Malaysia.
“In these scenarios we recruit
ahead of the vessel going operational,
bringing people into our existing fleet
of assets and then moving them
around the world so they understand
our operational philosophy.
“We have this 99.99 per cent
record, and it’s of the utmost
importance. If one part of the oil chain
goes down, the whole oil field stops.
And to achieve that high number we
have to train the personnel on board.
“We then slowly integrate them
into the business so we are satisfied
there’s no deviation from our
standards, and typically it takes two
or three years to get to that 80 per
cent local national level.”
End of project redundancies are
minimised. “If someone is trained in
our systems, policies and procedures
then obviously we don’t want to
lose that knowledge. So we offer
employment in other locations, trying
always where possible to use our own
people - who are fundamental to the
success of the business.
“It’s all very well me being head of
the company, but it’s the individual
in the oil field and working asset that
can have as big an impact on the
reputation of the company as me.
“We also have a very integrated
approach between our project
and our operations teams. There’s
no sudden hand over. Part of the
operations team is involved with the
projects team from day one, and this
creates a seamless transition as the
vessel becomes operational.”
While the deep water trend is
becoming the predominant factor
in West Africa and Brazil, McGregor
points to its drawbacks and the
continuing viability of shallower water
locations such as in South East Asia
and parts of Africa.
“We are happy to look at deep water,
but to make the economics work in a
deep water field the sheer volume of oil
needs to be a lot bigger. As such, the
production facilities generally need to be
larger and thus you need economies of
scale to repay all the capital costs.
“If you look at a Brazilian FPSO
project, you are looking at a $1 billion
asset. You can equally find smaller FPSO
projects that are equally of interest that
are $400m assets. So it’s not a matter of
picking one over the other.”
Gall Thomson is the market leader in the design, manufacture and application of marine Breakaway couplings (mBcs). It is the only range of mBcs on the market that is backed-up by a proven field record spanning the last 35 years and more than 250 recorded successful activations. The Gall Thomson Marine Breakaway Coupling has now become the “Industry Standard” worldwide. It has
been designed to prevent pollution and protect the hose transfer system from damage in the event of a tanker
breakout or an excessive and damaging pressure surge generated by the accidental closure of the export
tanker manifold valve; or the failure and slamming shut of the hose end butterfly valve.
Mr Jack Gall Thomson was the original inventor of the Marine Breakaway Coupling in 1978 and Gall
Thomson has been supplying MBCs since 1980. Since then, Gall Thomson has supplied more than 1700
units throughout the world, including all major (and the vast majority of minor) companies operating offshore
terminals.
Gall Thomson MBCs are employed in all types of offshore hose transfer systems such as SPM CALM buoys,
SALM terminals, FSOs, FPSOs, CBM/MBMs and Articulated Loading Platforms; where they regularly prevent
catastrophic oil spills, costly hose damage and terminal downtime.
Gall Thomson has been working with Omni Offshore for many years and its MBCs are in use on the vast
majority of Omni’s vessels. The company is very proud to be associated with Omni’s latest projects such as
Manora and Nong Yao and is very much looking forward to a continued, mutually satisfying relationship be-
tween both companies for many years to come.
The company is currently following up on many projects throughout the world which will include Gall Thom-
son Marine Breakaway Couplings. Following the recent acquisition of Gall Thomson by Signum Technology,
it has now moved to a new state-of-the-art design and production facility in Great Yarmouth, UK. This huge
investment, including new CNC machines, will help consolidate Gall Thomson’s technical and commercial
market leading position.
CHINA: NO THREATOil companies are turning
increasingly to China for services
and equipment, attracted by lower
costs and newly acquired expertise.
And the first four months of 2014
saw South Korean shipbuilders
overtaken by Chinese yards for
new orders. But McGregor sees the
China factor as an opportunity and
not a threat.
“In the early period China was the
provider of the steel work, blasting,
coating and pipe work, but not
necessarily the fabrication of the
on-board processing modules which
would be shipped in. However, over
the recent period, China has started
to take more of that work and
adding fabrication.
“But we have good experiences
in China – where we have done
three conversions - and equally very
good experiences in Singapore.
Availability is an issue since a yard
can only take on so much work
because conversion is very, very
labour intensive, with perhaps
several hundred people working on
board at any one time.
“But China is not a threat, and we
will continue to look there as well
as Singapore. For us, competition
among the yards is good because
it maintains prices at a competitive
level. And if the price is too high,
it could mean a field development
doesn’t happen.”
Offshore oil production and
environmental concern are
inseparables, and in July the
announcement that the US
Government was taking the
first step toward oil and natural
gas exploration off the Atlantic
coast was condemned by
environmentalists. For Omni,
environmentalism is an underlying
pAGe 22
“At Omni we never compromise on the quality of service we provide. So it’s not about being biggest and best for everybody. It’s about focusing on our core competence, and delivering sustainable, economically viable projects that work for our clients and continue to grow the Omni business model”
OmNI OffsHOre termINAls
pAGe 23
Equatoriale Services Pte Ltd, [ESPL], Singapore, part of Swiber Group is proud to have worked with Omni Offshore Terminals Pte Ltd in the Manora Project. The work scope involved design, ABS Certifi cation, construction, Installation of the SPM Calm Buoy, Subsea Tie-in, Risers Installation & Hook Up of FSO in Gulf of Thailand, about 45m MSL. Complete in-house detail design, fabrication at partner yard, use of own fl eet and diving / subsea spread and most importantly, involvement of personnel with thorough experience in all aspects of SPM systems has led to the completion of a well-managed project, classed under ABS.
“We are excited to have been awarded another similar EPCI of SPM Calm Buoy in Nong Yao fi eld, Gulf of Thailand, about 75m MSL, engineering & fabrication for which are underway.
We have successfully completed numerous projects in SE Asia & ME for other reputable clients like Samsung, Petronas, etc.
With facilities like
•Own fabrication yard in Tuas, Singapore•Ready&ProvenSPMCalmBuoyDesign•Ownfleetof10construction,DP,Crane,Dive Support vessels•Ex-stockforlongleaditemslikeMainBearings•OwnSATsystem&aux.equipmentlike500t Chain Tensioners•Experienceddesignteam&crew,strongQA/QC & HSE policies
We are able to deliver cost effective solutions, customised to meet project requirements on time, worldwide,” says Jean Pers, CEO of ESPL.
ABS Classed SPM Calm Buoy – Designed, Built, Installed & Hooked Up by ESPL for OMNI Offshore Pte Ltd in Gulf of Thailand, July 2014
Contact:[email protected] International Business Park #02-03, Swiber@IBP, 609920, Singapore
Calm Buoy for Murphy Oil, Malaysia, 2008
Calm Buoy(s) for Petronas, Malaysia, 2012
Spread Mooring for OMNI, Indonesia, 2006
pAGe 24
principle, says McGregor.
“I think there’s an overriding
drive within the industry to
improve health, safety, and the
environment, and Omni is an
important part of this.
ENVIRONMENTAL SENSITIVITIES“For example, we have operated
in one of the most sensit ive
areas in the world - off the coast
of New Zealand - and where
there are only two producing oi l
f ields. On board the FPSO and
platforms you could watch seals
and whales.
“If we weren’t environmental ly
sensit ive, there’s no way we
would have been al lowed to work
in New Zealand. We worked
very closely with the local
authorit ies, our cl ients and the
local communit ies to ensure that
everyone was comfortable with
what we were going to do out in
the oi l f ield.
“They after al l wi l l be the
people who wil l see the impact
i f anything goes horribly wrong.
You have to ensure they too have
confidence in what is happening.
“On every project you attempt
to learn and improve standards
across your entire business
model. The whole health, safety
and environmental regime is
continuously under review and
under improvement, and in our
company we are constantly
monitoring and str iving for
continuous and demonstrable
improvement.”
Meantime, the future of the
Omni Group is “looking very, very
good,” says McGregor. “With
a lot of activity in the dri l l ing
sector over the last few years
we are seeing a very strong
pipel ine of prospective projects
coming through to us. It almost
repl icates what we saw between
2006 and 2009.
“We have already del ivered
one project this year, have
another in the yard and are
having discussions on a further
two, either of which would
mean conversion works would
commence in 2014.
“Typical ly we try to do two
projects a year - we have done
as many as three - but we are
very selective; we want to look
for those where the r isk/reward
ratio is r ight. We don’t want to
be everything to everybody.
“Knowing our core
competence, we identify
Alastair McGregor
specif ic projects which f it our
capabil i t ies, in many cases with
cl ients with whom we have a
very long standing relationship.
“The outlook for the industry
as a whole is very, very posit ive
- and particularly for Omni
given our track record and
success rate. In fact, I wouldn’t
be surprised in a year’s t ime if
we are approaching the point
where we would have to say we
couldn’t take on any more work.
“At Omni we never compromise
on the quality of service we
provide. So it’s not about being
biggest and best for everybody.
It’s about focusing on our core
competence, and delivering
sustainable, economically viable
projects that work for our clients
and continue to grow the Omni
business model.”
OmNI OffsHOre termINAls
pAGe 25
The opening of the Baku Shipyard in
Azerbaijan last September 2013 was
a moment when timing and location
went in lockstep.
Baku, largest city in the Caucasus
region, and at 28 metres below sea
level the lowest lying national capital
in the world, projects out into the
Caspian Sea, one of the oldest of all
oil producing areas, and according
to the US Government’s Energy
Information Administration, location
of the world’s seventh biggest oil and
natural gas reserves.
Today the Caspian has become one
of the world’s leading hydrocarbon
provinces, the development of its oil
and gas fields and onshore pipelines
making Azerbaijan a focal point of the
global energy market.
Baku Shipyard’s General Manager,
KC Lam, shares on the rationale of
developing a new shipyard in Baku,
“With all these oil and gas activities in
the Caspian region, which continue
to grow, it was clear that the industry
needed a modern yard equipped with
both marine and offshore facilities
to provide shipbuilding, repair and
related services.
Strategically located along the
East-West energy corridor of the
Caspian Sea region, the new 71.4
hectare yard is a joint partnership
between State Oil Company of the
Republic of Azerbaijan (SOCAR –
65% shareholding), the Azerbaijan
pAGe 26
flying start in caspian home waters Editorial: colin chinery
© Shell
Within months of its opening, the Baku Shipyard in Azerbaijan this year scooped a $378 million contract from BP Exploration to design and build a Subsea Construction Vessel. A case of the right place at the right time for this rising new “local star” in the remote but oil and gas-rich Caspian region.
Investment Company (AIC – 25%
shareholding), and Singapore-based
Keppel Offshore & Marine (10%
shareholding). Keppel Offshore
& Marine is responsible for the
management and operation of the
yard.
LANDMARK CONTRACTIt took two and a half years to build,
opening in the same week that BP
announced a $45 billion landmark
international project – the Southern
Gas Corridor - to export natural
gas from the giant Shah Deniz field
passing through seven countries to
Europe.
Seven months later, in April,
the BP link re-surfaced
when Baku Shipyard
won a $378
million contract
from BP
Exploration - operator of the Shah
Deniz gas field development -
to design and build a Subsea
Construction Vessel (SCV).
Scheduled for completion in April
2017, the Caspian flagship vessel will
install the field’s subsea structures
over 11 years up to 2027, providing
essential support for Stage Two of the
biggest subsea production system in
the region.
With a 1,200-meter waterfront,
the yard’s $470-million phase one
development could perform up to
100 repairs
and
conversions a year, with average
annual steel output of 25,000 tonnes.
A second phase plan, yet to be
finalised, envisages the construction
of a graving dock and further facilities
for larger marine and offshore
projects.
TRACK RECORDKeppel Singmarine (KSM), which
is a subsidiary of Keppel Offshore
& Marine, has a track record in
building complicated diving vessels
similar to SCV and also a host of
other specialized vessels such
as Anchor Handling
Tugs (AHTS),
bAKU sHIpyArd
pAGe 27
pAGe 28
© Shell
Tenglee Marine & Engineering Pte Ltd (TL) was established in 1993; together with Yong Cheong Marine & Engineering Pte Ltd, Yong Ming Marine & Engineering Pte Ltd and Hong Yat Steelwork & Engineering Pte Ltd, it combines its resources to cater for shipbuilding, marine repairs and specialised engineering works for the marine & offshore industry in Singapore. TL is recognised as one of the most reliable and competent steel hull fabricators in Singapore and has been granted resident contractor status by the Keppel Group of Shipyards (Keppel Singmarine, Keppel O &M and Keppel FELS) and PRM Offshore Heavy Industries.
Since its establishment 20 years ago, TL has taken an active role in the oil & gas industry, constructing more than 18 supply vessels, taking part in 7 jackup-rigs and even Southeast Asia’s fi rst construction of an icebreaker for Lukoil between 2006-2008. With its team of highly trained personnel, TL has maintained its reputation of delivering top quality vessels as well as always on time.
In 2012, TL also set up operations in Baku, Azerbaijan in support of the oil exploration activities of SOCAR (the national oil Company of Azerbaijan). It is now currently building several marine offshore vessels in Baku, including a semi-submersible and an upcoming subsea vessel for pipe-laying. Apart from Azerbaijan, TL has broken into the Brunei market with its local partner ZHMD Engineering Services SDN BHD in 2013. Together, we have been granted the rights to tender for all Brunei Shell Petroleum contracts and our foremost goal is to set up a shipyard locally. TL also intends to expand into Mexico and Brazil, notwithstanding our invitation to partake in the China market in Nan Tong.
Contact: Director – Ray Teng994 502 789 [email protected] Teng Soon Kiat
Founder
bAKU sHIpyArd
pAGe 29
Platform Support Vessels (PSVs), and
ice-class vessels etc.
In the case of SCV, the two (2) hull
strips are being built in KSM whilst
the Bow Block and Superstructure
are built in Baku Shipyard LLC (BSY)
almost concurrently in order to meet
the critical delivery date of April 2017.
KSM struck steel on 9 June 2014
whilst BSY struck steel on 15 Aug
2014.
“One of the reasons BSY sub-
contracted to KSM in Singapore for
part of the work was because of its
expertise and background in building
similar kinds of vessels,” says Mr
Lam, who with a 20 year background
in the marine and offshore industry,
and a Keppel executive since 1989,
joined Baku Shipyard in April 2014.
“In this way, we are able to utilize the
required experience, expertise and
track record in many ways to support
this project.
“So while it is challenging to build
a vessel for the first time with subsea
construction and support facilities
and complexities such as automation
and dynamic positioning, these are
taken care of by our shareholder
(KOM) and its Singapore subsidiary
(KSM).”
The Shah Deniz SCV is designed
by Marine Technology Development,
the ship design arm of Keppel O&M,
and includes dynamic positioning,
a 750 metric tonne-main crane for
600 metres-deep subsea operation,
an 18-man two-bell diving system,
two work-class remotely operated
vehicles, a strengthened moon pool,
two engine rooms, and a deadweight
of 5,000 metric tonnes at 6.5 metres
draft.
In its first seven months Baku
Shipyard has already completed
a variety of projects including the
construction of two pontoons,
an anchor handling tug, and the
yard’s own floating dock, some in
partnership with Baku-based sister
organisation Caspian Shipyard
Company (CSC) - a 16 year old
partnership between SOCAR and
Keppel, and the first international rig
construction, repair and conversion
yard in the region. Other prominent
on-going project is the construction
of 3 units of 80-men Crewboat for
Caspar.
Currently BSY employs close to
980 people, comprising of a mix of
local and foreign nationalities to tap
on various skillsets.
“And with stiff skills competition
from other yards and employers,
we have started a series of training
“At the management level we have evaluation processes in place to ensure our staff are groomed and hopefully retained within the company and where they will have a career”
Tenglee Marine & Engineering Pte Ltd (TL) was established in 1993; together with Yong Cheong Marine & Engineering Pte Ltd, Yong Ming Marine & Engineering Pte Ltd and Hong Yat Steelwork & Engineering Pte Ltd, it combines its resources to cater for shipbuilding, marine repairs and specialised engineering works for the marine & offshore industry in Singapore. TL is recognised as one of the most reliable and competent steel hull fabricators in Singapore and has been granted resident contractor status by the Keppel Group of Shipyards (Keppel Singmarine, Keppel O &M and Keppel FELS) and PRM Offshore Heavy Industries.
Since its establishment 20 years ago, TL has taken an active role in the oil & gas industry, constructing more than 18 supply vessels, taking part in 7 jackup-rigs and even Southeast Asia’s fi rst construction of an icebreaker for Lukoil between 2006-2008. With its team of highly trained personnel, TL has maintained its reputation of delivering top quality vessels as well as always on time.
In 2012, TL also set up operations in Baku, Azerbaijan in support of the oil exploration activities of SOCAR (the national oil Company of Azerbaijan). It is now currently building several marine offshore vessels in Baku, including a semi-submersible and an upcoming subsea vessel for pipe-laying. Apart from Azerbaijan, TL has broken into the Brunei market with its local partner ZHMD Engineering Services SDN BHD in 2013. Together, we have been granted the rights to tender for all Brunei Shell Petroleum contracts and our foremost goal is to set up a shipyard locally. TL also intends to expand into Mexico and Brazil, notwithstanding our invitation to partake in the China market in Nan Tong.
Contact: Director – Ray Teng994 502 789 [email protected] Teng Soon Kiat
Founder
Our core business comprises wide range of comprehensive services such as ship repairing, steel work, piping, electrical, mechanical, hydaulic and pneumatic tubing jobs in FPSO offshore, marine and Mobile Drilling Units, repairs, control system design, farbication and installation onboard the vessel. We are specialist for all kinds of offshore marine solutions.
SBM GROUP OF COMPANIESSINGAPORE ADDRESS: 5 SOON LEE STREET, #04-41 PIONEER POINT, SINGAPORE 627607.Tel: +65 6710 4933Fax: +65 6710 4934 BAkU, AZERBAIJAN ADDRESS: City mansion, 153, Azadlig Avenue, Baku AZ 1106, Azerbaijan.Tel: (+994 51) 9488811Fax: (+994 12) 4998582
[email protected] | [email protected]
www.sbmgroupsg.com
pAGe 30
© Shell
bAKU sHIpyArd
pAGe 31
programmes, one of which is in-
house for people like welders and
fitters”.
“Another approach is to send
Baku Shipyard supervisors to our
subsidiary in Singapore for on the
job training, immersing them in
the right environment where the
work is on-going and they pick up
supervisory and related skills. And
we compliment this training and
local expertise with foreign sub-
contractors - also from Singapore
- bringing in a pool of experienced
personnel.”
“At the management level we
have evaluation processes in place
to ensure our staff are groomed
and hopefully retained within the
company and where they will have a
long term career.”
ICON MISSIONProximity and topography means
that the yard’s business focus will
be almost exclusively from clients
within the Caspian Region. “BSY’s
business strategy is to focus on
the Caspian region market. There
is no competitive advantage for
BSY to compete in the international
markets, as companies may not
have reasons to build in the Caspian
and bring any vessel out of Caspian
through the restrictive Volga-Don
Channel.,” says Lam.
Part of the Unified Deep Water
System of European Russia, along
with the lower Volga and the lower
Don, the Canal is the most direct
navigable connection between the
Caspian Sea and the Sea of Azov
and out to the world’s oceans.
And as the thrusting new entrant
in these prized and secluded
waters, Baku Shipyard is part of
Azerbaijan Government’s plan to
develop its oil & gas industry to
the fullest. This augurs well with
Keppel O&M’s ‘Near Market, Near
Customer’ strategy, enabling it
to unlock synergy in its Caspian
operations, given that it already has
another yard, Caspian Shipyard
Company, in the region.
And independent projections are
highly promising. According to the
Singapore Stock Market News, this
‘captive market’ means “Keppel
will be ahead of its competitors
in bids for any contracts in the
Caspian region requiring local
content elements. Other Asian yards
may miss the opportunities due
to the lack of presence and yard
proximity.”
Baku Shipyard is unique, says
Mr Lam “in the sense that it is a
modern, brand new yard. We aspire
to become the iconic shipyard in
the Caspian region. And this is our
mission.”
TTS Shiplift andTransfer System
Tel. +47 64 90 79 [email protected]
pAGe 32
At the heart of European gas transmission
Editorial: Roland Douglas
Fluxys has become one of Europe’s most important gas companies and its work to develop its existing network is proof that gas has a vital role to play in the European economic zone. After winning prestigious awards, partnering with other big-name players and expanding its LNG facilities, Fluxys is looking strong as gas continues to become more and more important.
In the energy industry today, when
you mention the words “clean energy”
people automatically think of wind
turbines and solar panels. It is often
forgotten that natural gas is in fact
a very clean source of energy – the
cleanest of all the fossil fuels and a
vital contributor to economies around
the world. Supplies are abundant,
extraction is easier compared to
deep oil or fracking, and the gas
transportation and infrastructure
industry is established and safe.
The European Commission has
stated “at a time when European
reserves are being depleted and
consumers’ appetite continues to
increase, natural gas is becoming
critically important to the EU.”
The supply of gas, especially in
Europe, is constantly a topic up
for debate by politicians and with
uncertainty in Ukraine and Russia,
the Commission has put affordable
and reliable supplies amongst its
most important objectives saying:
“Member States and the European
Commission (EC) consider that
the creation of an efficient and well
functioning internal market for gas
may be the most potent response
to the challenges and uncertainties
of tomorrow. A reliable, transparent
and interconnected market could
address a variety of complex issues
including security of supply and global
warming.”
But what actually is natural gas?
Simply put, natural gas is a fossil fuel
formed when layers of buried plants,
gases, and animals are exposed
to intense heat and pressure over
thousands of years. The energy
that the plants originally obtained
from the sun is stored in the form of
chemical bonds in natural gas. It is a
hydrocarbon gas mixture consisting of
mainly methane, but it also commonly
includes differing amounts of other
higher alkanes and even a smaller
amount of carbon dioxide, nitrogen,
and hydrogen sulphide. Natural
gas is found in deep underground
rock formations or close to other
hydrocarbon reservoirs in coal beds
and as methane clathrates. Petroleum
is another resource and fossil fuel
found in close proximity to natural
gas. Before natural gas can be used
as a fuel, it must be processed to
remove impurities, including water, to
meet the specifications of marketable
natural gas. Estimates suggest that
the world uses around 3.4 trillion
cubic meters of gas every year and at
that rate we’ll use it all up in the next
250 years.
According to 2011 estimates, the
USA is by far the world’s biggest
consumer of natural gas, followed by
Russia and the EU and China. And
in the EU the transmission of natural
gas to customers is big business,
as we have discovered in previous
issues, with companies like GRTgaz,
Enagás and Fluxys providing much
employment and contributions to
GDP.
This movement of gas is vitally
important and TSO’s like these need
to work together to maintain secure,
stable, reliable and cost effective gas
supplies around the continent. Fluxys,
headquartered in Belgium, aims to
bridge the markets so that suppliers
can move natural gas flexibly from
any border to their customers and
between gas trading places.
The company’s strategy is
focussed around three core activities;
transmission, storage and LNG
terminalling.
And this strategy involves growing
flUxys
pAGe 33
infrastructure, developing people and
remaining competitive on price as the
company explains: “Fluxys’ focus is
on security of supply, well-functioning
markets and tariffs that are as
competitive as possible.
“Fluxys wants to play an active
role through profitable long-term
investments, not least in the
consolidation process under way in
the European market.”
“To implement its strategy, Fluxys
values the development of its
employees’ know-how and builds
strong alliances with solid partners.”
The company is one of Europe’s
most advanced TSO’s and is always
planning upgrades and improvements
to its system and pipeline and,
importantly, its LNG capabilities.
LNG
Walter Peeraer, Fluxys Managing
Director said during an interview
with the Energy Delta Institute (EDI)
that Fluxys would continue to invest
in LNG with the hope that the
industry as a whole will develop.
“Fluxys is a gas infrastructure
company and as such we operate
not only pipeline and storage
but also the LNG terminal of
Zeebrugge,” he said. “Zeebrugge
terminal is well known in the LNG
world. We own and operate the
terminal based mainly on a long
term contract which assures the
coming flow of revenue for the
terminal. It’s a fully regulated
terminal but its flexible regulation
based on a price capped and cost
plus system.”
Fluxys announced recently
that it would expand and extend
the Zeebrugge terminal, adding
a second jetty for loading and
unloading of LNG carriers, enabling
the facility to increase capacity
and further develop into a hub for
supplying LNG as fuel for ships
and long-haul trucks. Once the
construction works are over in
mid-2015, the terminal will have an
additional LNG loading/unloading
capacity of 14,000 m3/hour.
Expansion of the terminal will be
handled by TS LNG, a joint venture
between SENER and Techint E&C.
TS LNG will carry out all project
related activities, being also in
charge for project management,
procurement and construction,
as well as for construction and
commissioning management. The
company brings a strong portfolio
of completed projects including the
GATE terminal in the Netherlands
and the Dunkirk terminal in France.
“We are a partner in the
greenfield Dunkirk LNG project
where we have a 25% share but
also we participate in the operating
pAGe 34
Antea Group advises you in all project stages
Engineering of linear transport by pipeline and cablesFrom feasibility to as-built
www.anteagroup.be
advertentie_drukker.pdf 1 2/09/2014 10:00:33
flUxys
pAGe 35
company on a fifty-fifty basis
with EDF which is the majority
shareholder of the Dunkirk LNG
terminal,” Peeraer told the EDI.
Importantly, a project to connect
the Dunkirk LNG facility; being
labelled the ‘new gas entry point
for Europe’; to the GRTgaz grid
in France and the Fluxys grid in
Belgium is already being planned.
The new pipeline will allow for
the transportation of eight billion
additional m³ of natural gas to
Belgium and elsewhere in Europe
from the Dunkirk LNG terminal,
strengthening security of supply
and diversification of sources while
offering a wider basis for natural
gas trading in the region.
GROWING LNG
Just two years ago, in 2012, LNG
accounted for around 25% of the
gas imported in the EU. And since
then, this figure has been growing
and Fluxys has been a part of this
growth.
“There are many small-scale
LNG players promising opportunity
for growing LNG in the European
markets,” Peeraer told the EDI. “It
can really contribute to reducing
the environmental impact on the
maritime side but, like any business
activity, it’s a chicken and egg
issue; we need infrastructure and
different partners ready to invest
in small scale LNG, in the vessels.
As Fluxys we are ready to do
everything and invest. We can
facilitate the business by investing
in infrastructure.
“This is what we are doing and
this is clear as we are well into our
plan of building a second jetty at
the LNG terminal in Zeebrugge in
order to accommodate all types of
vessel. Secondly, we are looking
actively to different projects in order
to promote small-scale LNG in
cooperation with Gasunie.
“We are ready to invest in this,
we are ready to facilitate this and
bring all the partnerships; builder of
small-scale vessels, LNG user, and
shipper and supplier; to make this
business grow.”
And it’s not just investments into
infrastructure where Fluxys are
helping to grow the LNG industry.
It’s also with the signing of new
contracts which will bring LNG into
Belgium through the Zeebrugge
terminal. The company recently
signed an agreement with Yamal
LNG where the two organisations
detailed parameters of cooperation
on the transhipment of LNG from
a plant in Russia to the Zeebrugge
terminal.
Yamal LNG is building a
natural gas liquefaction plant
with its first train scheduled to
be commissioned in 2017. The
transshipment platform in Europe
will be an integral part of the
logistical chain enabling LNG
supply from Yamal to reach the
Asian-Pacific countries when
winter navigation is closed at
the Arctic Ocean’s Northern Sea
Route, thus ensuring year-round
LNG supplies to this region.
“If we succeed in attracting
transshipment operations to
the Zeebrugge LNG terminal,
this would be an important
project for Fluxys and the port
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of Zeebrugge. It would bring
along a considerable investment
at the terminal, link the facility
to an additional source of
LNG and entail a significant
volume of ship movements as
well,” Peeraer said. In another
advancement of LNG technology,
Fluxys announced in February
that it would partner with Eric
Mattheeuws, a large European
transportation company, to invest
in a brand new LNG fill ing station
for fuelling haulage trucks.
Both companies see LNG as a
sustainable alternative fuel for
trucks in Belgium.
“Transporters are holding off on
switching to LNG for lack of filling
stations and no filling stations are
being built because there are no
customers. By joining forces with
transporter Eric Mattheeuws, we
are breaking this vicious circle and
lowering the threshold for other
transporters to make the switch to
LNG as a sustainable alternative
to diesel,” said Peeraer. Eric
Mattheeuws, who have made
their intentions on sustainability
clear, recently won the Green
Truck Award at the Transport and
Logistics Awards 2014.
The company said: “The
switchover to LNG means a drastic
reduction in emissions from the
trucks and has considerable
financial advantages as well. With
Fluxys’s investment in the LNG
filling station, the logistics supply
chain is now complete. We have
developed a unique partnership
with Fluxys, Eni, Volvo Trucks and
Romac Fuels to promote LNG as a
valid alternative to bio-petroleum.
The initial tests are very promising.
If, six months after opening the
filling station, you read about
additional investments being made,
then you can be sure that LNG has
begun its conquest!”
And it wasn’t just Fluxys’ new
partners who have been winning
awards recently. Fluxys itself was
named, in January, as the TSO
of the year at the European Gas
Conference in Vienna.
WINNING IN EUROPE
Peeraer said of the award: “This
award is a tremendous thumbs
up for all the men and women
of Fluxys in Belgium, Germany,
Switzerland, the UK and France
and their commitment to develop
our company as a genuine
European TSO. It is also an
encouragement to continue on our
trail of building strong partnerships
in the industry and to keep focused
on connecting markets, gas trading
places and gas sources.”
The award is quite the coup
for a company like Fluxys and
celebrates dedication, triumphs
pAGe 36
© Shell
Cryonorm BV - Koperweg 3, 2401LH Alphen aan den Rijn, The NetherlandsTel: +31 172 41 80 80 - Web: www.cryonorm.com
CHOOSE EXPERTS, FIND PARTNERS
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flUxys
pAGe 37
and excellence of TSOs
pioneering innovation, inspiring
others and achieving growth in
the European gas market. And
just two months after picking up
this award, Fluxys announced
another big deal for its European
development; the signing of a
Memorandum of Understanding
with Sna S.p.A that further
develops the Strategic Alliance
of 2012 aimed at pursuing
opportunities in Europe through
projects enhancing the flexibility
and security of supply in the
European gas infrastructure. The
two companies have agreed to
assess and evaluate the set-up of
a jointly controlled company for
the integrated management of the
companies’ international assets
across Europe.
“By joining forces Snam and
Fluxys would become a reference
player in Europe, interconnecting
markets as envisaged in the
blueprint set forth in the Third
Energy Package. Combining our
European activities would create
value for both the market and our
shareholders,” Peeraer said.
All of these developments fit
in line with Fluxys vision of being
able to ‘build bridges between
markets so that suppliers can
transmit natural gas flexibly
between gas trading points
and from any border to their
customers’. So what about the
future? Peeraer is firm in his belief
that gas will be the energy of the
future but hopes for support for
gas producers from governments
in the short term.
“This is a difficult time for the
generation of electricity from
natural gas due to the volatility
of the electricity price and, as
a first step, some regulatory
intervention could be needed to
help to facilitate the life of power
producers producing electricity
from gas but in the long-term I
still think natural gas is the energy
of the future.
“As an infrastructure company,
we follow the market closely.
Electricity prices are volatile and
gas for power plants is squeezed
between volatile and subsidised
renewable power and very cheap
coal. This is an issue today and
I think that in the short-term the
government should look at a
scheme to help power producers
on the gas side to be part of the
game because I still believe that
natural gas is the real partner
to renewables if we want to
achieve the CO2 directorate of the
European Commission,” he told
the EDI.
pAGe 38
Into the golden triangleEditorial: colin chinery
Directed from its Texas base Atlantica Tender Drilling designs, fabricates and operates safe and efficient tender drilling units. And with its main market outlined by the South Atlantic’s Golden Triangle, the fast expanding global specialist has now made a significant and potentially key footprint in Brazil.
Atlantica is the ancient continent
that millions of years ago
connected parts of West Africa
and Eastern South America. At
its shortest point, 1600 miles of
ocean now separates these land
masses, and for Atlantica Tender
Drilling the deep seabed of this
Golden Triangle topped by the Gulf
of Mexico, is its primary marketing
area.
Houston-based Atlantica
(formerly Bassdrill) designs,
fabricates and operates safe
and efficient tender drilling units,
currently managing and part-
owning one tender drilling barge
operating off the coast of West
Africa, and another off Brazil - the
semi tender ‘Beta’, under contract
to Petrobras, bound for its P-61
tension leg wellhead platform
(TLWP) in the Campos Basin.
The Petrobras deal says Atlantica
Contracts Manager Chris Young,
amounts to “a new relationship for
Atlantica.
“Petrobras has never used a
tender assisted rig before, and
it allows them to use a smaller
tension leg platform (TLP) than
would be the case if they had a
platform rig on it.
BRAZILIAN OPPORTUNITIES“And for Atlantica it’s new in that
it’s in deeper water with a semi-
submersible tender rather than a
barge. The traditional market for
tender assisted drilling was in South
East Asia, and it’s been growing in
West Africa where we are getting
a lot of inquiries from various
operators for tender assisted rigs.
“Total is our main client in West
Africa and has been there a long
time. But Brazil is new, and so it’s
very much an opportunity for us
there, and Petrobras have told us
that if it works then they will be
doing several more.”
Atlantica offers cost-effective
solutions to the offshore drilling
market with tender assist designs,
used to drill on platforms where
space and safety issues restrict the
use of traditional platform rigs; its
target market, oil companies with
weight-bearing wellhead platforms
serving multiple wells that can only
be accessed by either a platform rig
or a tender assist.
“The whole justification for tender
assisted rigs is that you have just
the mast sitting on the platform,
which means the platform can be
smaller and less expensive,” says
Young.
In developing these designs
Atlantica has the advantage of
a core management team vastly
experienced in the fabrication and
operation of modular offshore rigs -
an expertise resulting in the creation
of well-designed vessels, effective
equipment packages; rigs that are
safe, efficient and economical.
With tender barge Alpha
operating, and tender semi Beta
about to be deployed, and two
additional vessels already ordered –
the Gamma, scheduled for delivery
next spring, and the Delta, another
semi-submersible tender, also due
for delivery in 2015 - the company
is quickly becoming a strong
competitor for state-of-the-art
tender vessels.
And with Norwegian private
equity investor HitecVision among
its backers, the company also has
the financial strength to handle
projects of any size; resourced and
positioned for further expansion in
this specialised niche market.
A ‘Customer First’ ethos is one
key factor driving Atlantica’s growth.
Another is its highly competent and
motivated teams and their ready
access to cutting edge management
systems.
These in turn are supported by
a management leadership team
and the core operational values of
safety, dependability, accountability,
honesty, ethics, integrity, dignity,
respect and personal development.
Is the relationship between
supplier and client closer in tender
assist drilling - Atlantica and Total
for example - than in conventional
drilling? Director of Marketing
Franck Soule is in no doubt.
“Without question. If you want
to succeed in this type of project
you have to be very close to your
client, and for a simple reason;
AtlANtICA teNder drIllING
pAGe 39
you have two vessels working very
close to one another and a system
to harmonise their motion. So
there has to be a lot of interface to
manage between our equipment and
the client’s platform.”
A strong commitment to
personnel safety always takes
precedence should business
priorities come into conflict, with
Atlantica a firm believer in the Zero
Incidents Philosophy (ZIP).
”Everyone associated with our
operations is explicitly empowered
with ‘stop work authority’ to
suspend operations if they are
uncomfortable or feel that too great
a hazard exists.
“In this they will be supported by
management for their efforts,” says
Young, who, with over 40 years of
experience in the drilling industry
– largely in the deep water sector
- and most recently as Senior
Director of Marketing-Worldwide
Contracts with Pride International,
joined Atlantica late last year.
CREW CHANGEYoung’s pedigree characterises
what has been called the ‘Great
Crew Change’, the older generation
of geoscientists and petroleum
engineers now approaching
retirement age, and companies
scrambling to cope with a pool of
potential talent too small.
A recent survey by recruitment
consultant, Hays, found that skills
shortages are by far the main
concern for oil and gas employers
worldwide. “The demographics are
terrifying,” says Hays director of
engineering, Greg Lettington.
Young agrees – with variations.
“Deep water is the growth market
in offshore drilling, with companies
like Transocean and Pacific
building these $700m drill ships
and semi submersibles. This is
where the frontier is and they are
making big finds.
“And of course it’s sucking up a
lot of people, and since they hire
only skilled personnel there’s a big
training effort on in the industry.
These new rigs take people with
different skill sets than is the case
with some older rigs, and finding
people is becoming tougher for
everybody.
“Our rigs are not really deep
water rigs in the sense that they
are not dynamically positioned with
subsea Blowout Preventers and
so forth. And that’s where there is
really a shortage of people. Tender
assisted rigs are on platforms with
the well head at the surface. Since
we aren’t involved with sub surface
BOPs we are not looking for that
skills set, and finding good people
is simpler for us.”
Global oil companies are
increasingly turning to China
for services and equipment,
attracted by lower costs and a
newly acquired expertise that
is challenging more established
rivals. Atlantica is no exception.
“We are building our rigs in
China because it’s a lot less
expensive. Currently the Koreans
lead the world in ship building;
they build quality, are highly
organised and know what they are
doing.
“China is new to the business
pAGe 40
“The traditional market for tender assisted drilling was in South East Asia, and it’s been growing in West Africa where we are getting a lot of inquiries from various operators for tender assisted rigs”
AtlANtICA teNder drIllING
pAGe 41
and doesn’t yet have the quality of
the Koreans, but its progressing.
It’s taken more effort on our
part to get the quality right, but
they’ll eventually catch up to the
Koreans.
“The level of detail and outfitting
required for drilling rigs is pretty
great and the Koreans have set up
almost an assembly line. However
the Chinese are now building
some, and as the Koreans did, will
get better as time goes on.”
DEEP WATERSWith offshore oil and gas drilling
moving further and deeper as
energy companies seek to find
sources of production in low-risk
areas, Soule sees this as a long
term trend with advantages for the
tender assist rig segment.
“The ratio between shallow water
and deep water operations is still
substantially weighted in favour
of the former. But deep water will
become increasingly popular in the
tender assist market because it
is a way to minimise the capex in
deep water compared with what is
involved with subsea architecture.”
Atlantica Tender Drilling emerged
last year from its former name
of Bassdrill as part of a larger
rebranding reflecting its growing
strength, and the position of the
Texas- headquartered business as
an increasingly global provider of
tender assist drilling vessels.
“The only thing that changed is
the name,” says Young, “and the
same people are here. Atlantica
represents where we see the
market - the margins on both sides
of the Atlantic Ocean - and maybe
in certain applications in the North
Sea. That isn’t to say we wouldn’t
take a job in South East Asia, but
right now the Golden Triangle is our
focus
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OS_Tug&OSV-2014_ad-half_pg.pdf 1 5/15/14 4:14 PM
Oil States Skagit SMATCO is a trusted provider of offshore equipment and services in some of the world’s most demanding environments. Our deck equipment solutions include industry-leading mooring systems, anchor-handling equipment and marine cranes backed by certified and warranted repair & refurbishment. Regardless of the complexity of the job, you can rely on Oil States Skagit SMATCO to provide the highest quality solution based on our extensive experience and world-class engineering solutions.
pAGe 42
Over land or sea, Enagás can store gas
© Shell
In recent years, Spain has invested heavily in its gas capabilities, both in its ability to import liquefied natural gas and in its national gas transmission system. As the country imports nearly all of the gas that it consumes this system is vital to day-to-day operations of many businesses and individuals. But once gas reaches Spain, the next consideration is storing it. Rosa María Nieto, Director of Underground Storages of Enagás tells Total World Energy that investments into underground storage are helping the company become a benchmark of knowledge and innovation in Spain’s sector.
Rosa María Nieto, Director of Underground Storages
Q: Do you feel that Enagas is close to achieving its vision of “becoming a national and international standard bearer in the development and management of gas infrastructures, promoting their use by offering innovative services that contribute to sustainable development”?
Ye s , a f t e r m o r e t h a n 4 0
y e a r s o f e x p e r i e n c e , E n a g á s
h a s b e c o m e a b e n c h m a r k o f
k n o w l e d g e a n d i n n o v a t i o n
i n t h e s e c t o r. T h e c o m p a n y
h a s m a i n t a i n e d i t s c o m p a n y
f u n d a m e n t a l p u r p o s e
( s u p p l y s e c u r i t y i n S p a i n ,
g a s i n f r a s t r u c t u r e n e t w o r k
m a i n t e n a n c e , n e c e s s a r y
i n v e s t m e n t s , e t c . ) , w h i l e
i t h a s b e c o m e a c o m p a n y
w i t h a n i n t e r n a t i o n a l
p e r s p e c t i v e a n d i m p o r t a n t
f u t u r e c h a l l e n g e s i n s i d e
a n d o u t s i d e o u r c o u n t r y.
A t t h e s a m e t i m e ,
E n a g á s c o n t r i b u t e t o
s u s t a i n a b l e d e v e l o p m e n t
b y i n c r e a s i n g e n e r g y
e f f i c i e n c y a n d b y
l a u n c h i n g n e w
s u s t a i n a b l e a n d
i n n o v a t i v e s e r v i c e s
t o i t s c l i e n t s l i k e , f o r
i n s t a n c e , r e l o a d i n g s h i p s
b u n k e r i n g . R e c e n t l y,
E n a g á s h a s w o n t h e
P r i z e “ G o o d P r a c t i c e
C o m p e t i t i o n ” , a w a r d e d b y
t h e E u r o p e a n F o u n d a t i o n
f o r Q u a l i t y M a n a g e m e n t
( E F Q M ) a n d f o c u s e d o n
i n n o v a t i v e s o l u t i o n s f o r
c u s t o m e r s . T h i s p r i z e
r e c o g n i z e s E n a g á s ’ g o o d
p r a c t i c e s i n n e w v e s s e l
r e l o a d i n g o p e r a t i o n s ,
a l l o w i n g t h e c o m p a n y t o
g o b e y o n d t h e t r a d i t i o n a l
m o d e l o f u n l o a d i n g s h i p s a t
r e g a s i f i c a t i o n p l a n t s .
Q: What is the next step for the Yela Underground natural gas storage facility? Can it be expanded? Is the company working on similar projects in the region?
T h e Ye l a u n d e r g r o u n d
s t o r a g e f a c i l i t y w a s
p u t i n t o o p e r a t i o n
i n 2 0 1 2 . I t i s
l o c a t e d i n t h e
m u n i c i p a l
a r e a o f
B r i h u e g a , i n t h e p r o v i n c e o f
G u a d a l a j a r a . I t s s t r a t e g i c
l o c a t i o n i n t h e c e n t r e
o f S p a i n m a k e s i t a k e y
i n f r a s t r u c t u r e p r o j e c t f o r
g u a r a n t e e i n g s u p p l y. I t i s
i n t h e p r o c e s s o f i n j e c t i n g
c u s h i o n g a s , t h e r e f o r e i t s
w o r k i n g c a p a c i t y i s s t i l l
i n p r o g r e s s u n t i l i t w i l l
e v e n t u a l l y a c h i e v e 1 b c m .
E n a g a s i s n o t c u r r e n t l y
w o r k i n g o n o t h e r p r o j e c t s
i n t h e r e g i o n .
eNAGAs
pAGe 43
© Shell
pAGe 44
© Shell
Q: What are the main differences between operating a natural storage faci l i ty over land and in the ocean?
Each storage faci l i ty has its
own particularit ies, which differ
not just by being in the land or
offshore, but by the features that
each faci l i ty may have.
Yela underground storage is a
sal ine fossi l aquifer 2,300 meters
below the surface of the Earth.
Gav iota s torage fac i l i t y i s
located in the Bay o f B iscay,
e ight km off Cape Matx i txako,
nor th east o f Bermeo (B iscay ) .
I t i s in a dep leted gas f ie ld ,
located at a depth o f 2 ,150 m
in f ractured l imestone.
Ser rab lo Gas Storage,
located wi th in the Huesca
Reg ion, is the f i rs t dep leted
gas f ie ld t ransformed in to
an underground gas s torage
in Spa in , once the f ie ld
product ion ceased in February
1989.
A lso, the log is t ics are qu i te
d i f fe rent ; the o ffshore requ i res
sh ips, he l icopter, s ta f f l i v ing
onboard at least dur ing
weekdays, e tc .
Q: What progress has been made wi th the G av iota expans ion pro ject?
T h e p r o j e c t i s i n s t a n d -
b y, h o w e v e r E n a g a s i s
a c c o m p l i s h i n g a f i r s t
s t e p i n o r d e r t o r e n e w
s o m e e q u i p m e n t a n d t o
m a k e s o m e t e c h n o l o g i c a l
i m p r o v e m e n t s .
Q: What have been the main challenges faced by the Gaviota platform since it was acquired by Enagas in 2010?
T h e o p e r a t i o n s h a v e
c o n t i n u e d i n t h e s a m e
w a y a s w i t h t h e p r e v i o u s
o p e r a t o r , s o t h e r e i s n ´ t
a n y r e l e v a n t c h a l l e n g e
i n t h a t s e n s e . T h e m o s t
s i g n i f i c a n t d i f f e r e n c e
i s t h e l a u n c h i n g o f t h e
m e n t i o n e d p r o j e c t t o
r e n e w s o m e i n s t a l l a t i o n s .
Q: Will the company look at opening similar facilities, over water, in the future?
C u r r e n t l y t h e r e a r e n ’ t
p l a n s t o o p e n s i m i l a r
f a c i l i t i e s b y E n a g á s .
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eNAGAs
pAGe 45
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Innovative Reliable EffectiveOur main activities include:
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E-mail: [email protected]: +55 27 3260 1979www.itpbrasil.com
Q: Are underground storage facilities going to be the future for natural gas storage in Spain?
S p a i n i m p o r t s
p r a c t i c a l l y a l l t h e g a s
i t c o n s u m e s , a n d i t s
s t o r a g e c a p a c i t y i s
l i m i t e d ; a p p r o x i m a t e l y
1 0 % o f t h a t o f
n e i g h b o u r i n g E u r o p e a n
s t a t e s . A l s o , g a s
c a p a c i t y i n S p a i n i s
o n l y e n o u g h f o r 2 0 d a y s
o f s u p p l y , f a r f r o m t h e
r a t e s o f o t h e r E u r o p e a n
c o u n t r i e s .
N e v e r t h e l e s s , S p a i n
h a s a l a r g e n u m b e r o f
r e g a s i f i c a t i o n p l a n t s ,
w h i c h a l l o w s m a n a g i n g
s u p p l y r i s k a n d s e a s o n a l
v a r i a t i o n s i n d e m a n d .
Q: Is the Serrablo underground storage facility still vitally important to the Huesca region?
S e r r a b l o u n d e r g r o u n d
s t o r a g e f a c i l i t y i s k e y
n o t o n l y f o r H u e s c a
r e g i o n b u t f o r t h e w h o l e
S p a n i s h G a s S y s t e m . I t i s
n e c e s s a r y t o s t o r e l a r g e
q u a n t i t i e s o f g a s i n o r d e r
t o a d j u s t o f f e r t o d e m a n d
a n d f a c e c o n s u m p t i o n
p e a k s b r o u g h t o n b y
s e a s o n a l v a r i a t i o n s ,
i n t e r r u p t i o n s i n s u p p l y ,
e t c .
Q: What does the future hold for Serrablo? Is there a plan for expansion at this storage facility?
E n a g á s i s n o t p l a n n i n g
t o d e v e l o p n e w s t o r a g e
e x p a n s i o n p r o j e c t s f o r
S e r r a b l o u n d e r g r o u n d
s t o r a g e f a c i l i t y .
Q: What would you say to people who claim that underground storage facilities are unsafe?
E n a g á s u n d e r g r o u n d
s t o r a g e f a c i l i t i e s h a s
b e e n d e s i g n e d a n d
d e v e l o p e d t o t h e h i g h e s t
s t a n d a r d s o f s a f e t y .
T h e r e a r e 6 2 7 s t o r a g e s
w o r l d w i d e , i n c l u d i n g o n e
b e l o w t h e t o w n o f B e r l i n .
Q: Is it possible for Enagas to claim ‘green’ production? Can a company with such a vast infrastructure ever be environmentally friendly?
pAGe 46
© Shell
The Yela underground storage facility, already put into
operation, is located in the municipal area of Brihuega in
the province of Guadalajara. Its strategic location in the
centre of Spain makes it a key piece of infrastructure for
guaranteeing supply.
eNAGAs
pAGe 47
O u r c o m m i t m e n t i n
t h i s a r e a i s s t r o n g . F o r
t h e t y p e o f b u s i n e s s w e
d e v e l o p , w e m a i n l y w o r k
o n p r e v e n t i n g t h e i m p a c t
o n t h e e n v i r o n m e n t .
E n a g á s t a k e s i n t o
c o n s i d e r a t i o n b i o d i v e r s i t y
p r o t e c t i o n o f t h e a r e a s
w h e r e i t o p e r a t e s .
W e e n s u r e w e
a p p r o p r i a t e l y p l a n
a n d l o c a t e f a c i l i t i e s ,
r e s t o r a t i o n a n d r e p l a n t i n g
o f a r e a s a f f e c t e d d u r i n g
p i p e l i n e c o n s t r u c t i o n
a n d w e e n s u r e w e
r e d u c e g r e e n h o u s e
g a s e m i s s i o n s , f r o m
t h e d e s i g n s t a g e , t h a t
c a u s e c h a n g e s i n t h e
p h y s i c a l c o n d i t i o n s o f t h e
e c o s y s t e m s w h e r e p l a n t
a n d a n i m a l s p e c i e s g r o w .
A s a n e v i d e n c e o f
t h i s e f f o r t , E n a g á s ’s
c a r b o n f o o t p r i n t h a s
r e c e n t l y b e e n c e r t i f i e d i n
a c c o r d a n c e w i t h t h e U N E -
E N I S O 1 4 0 6 4 s t a n d a r d ,
w h i c h i s a n o t h e r s t e p
f o r w a r d i n t h e c o m p a n y ’s
d r i v e t o c u t g r e e n h o u s e
g a s e m i s s i o n s a n d
e n s u r e t r a n s p a r e n c y
i n i t s d e a l i n g s w i t h
s t a k e h o l d e r s . E n a g á s
i s l i s t e d o n t h e m o s t
p r e s t i g i o u s i n d i c e s ,
s u c h a s t h e D o w J o n e s
S u s t a i n a b i l i t y I n d i c e s
( D J S I ) o r F T S E 4 G o o d
HEYMO INGENIERÍA, S.A.
ENGINEERING AND CONSULTING SERVICES
INTERNATIONAL EXPERIENCE - PROFESSIONAL INDEPENDENCE
www.heymo.com
E n a g a s i s t h e Te c h n i c a l
M a n a g e r o f t h e S p a n i s h
G a s S y s t e m a n d t h e
m a i n c a r r i e r o f n a t u r a l
g a s i n S p a i n . I t i s a l s o
c e r t i f i e d a s i n d e p e n d e n t
T S O E u r o p e a n U n i o n ,
w h i c h h o m o l o g a t e s
t h e c o m p a n y t o g a s
t r a n s m i s s i o n n e t w o r k
o p e r a t o r s o f o t h e r
E u r o p e a n c o u n t r i e s .
T h e c o m p a n y ’s m a i n
m i s s i o n i s t o e n s u r e
c o m p e t i t i o n a n d
s e c u r i t y o f t h e G a s
S y s t e m i n S p a i n .
pAGe 48
high quality, flexible solutions
Editorial Tim hands
With its head office, sales department and project management in Norway, Bestra is a flexible supplier of products and machinery to marine, offshore and industry, and specialises in turning complex concepts into high quality, complete solutions, with the quickest of delivery times.
With its name an amalgamation
of those of its founders, Bestra
came about in 2004 as a result of a
collaboration between Nils Stray and
Jim Berentsen, with the view to creating
a sufficiently efficient supply chain,
one which would be able to meet
the demands of a burgeoning global
market.
Billed as a company with a ‘winning
spirit’, it has since never stopped
seeking ways in which to improve its
operations, aiming to make possible
even the most apparently impossible
challenge.
“It is not a fancy story at all,” jokes
CEO Nils Stray, on the subject of
Bestra’s formation. “Both myself and
my partner had experienced a fairly
hard life in Norwegian industry, and
we both recognised that Norway was
not a competitive industry any longer.
We saw this, though, as a lucrative
business opportunity: to establish from
scratch in a low-cost place, and build
up our know-how from there. That was
the main reason for the start up.”
Its choice of location was also a
carefully considered aspect of the
plan, as Stray explains; “We located
our fabrication in Estonia and our head
office in Norway, and logistically this
works very well, in part due to the
two countries’ proximity. This was all
actually done completely from scratch;
we bought the piece of land in Estonia,
built the building and employed
personnel numbers one, two and three,
and since then we’ve had ten years of
organic growth.”
As the holder of the largest quantities
of both oil and natural gas reserves
bestrA
pAGe 49
in Europe, it subsequently falls on
Norway to provide the majority of those
resources which are consumed on the
continent, third in the world’s natural
gas exporters only to Russia and Qatar,
and the 12th largest net exporter of
oil in 2013. According to the Oil &
Gas Journal (OGJ), Norway’s proven
crude oil reserves stood at 5.83 billion
barrels as of January 1, 2014, which
represents the largest oil reserves in
Western Europe. These are all located
offshore on the Norwegian Continental
Shelf (NCS), which is then divided into
three sections: the North Sea, the
Norwegian Sea, and the Barents Sea.
The bulk of Norway’s oil production
occurs in the North Sea section of
these, while smaller amounts also take
place in the Norwegian Sea, with new
exploration and production activity
currently occurring in the Barents Sea.
“I would say that we have developed
the company in quite a different way
to many others,” explains Stray,
“and particularly with regards to this
combination of management in Norway
and production in Estonia, which has
proved extremely successful for us.”
A TURNKEY SOLUTIONWith the world, both of industry and
in general, inevitably becoming ever
more complex and demanding, Bestra
aims to address what it has identified
as a too frequent lack of quality
suppliers who are not only flexible and
easy to work with, but who also are
able to maintain a constant dialogue
throughout the project. Stepping in to
rectify this, and with the expertise to
offer such a diverse range of solutions
pAGe 50
bestrA
pAGe 51
to the customer, Bestra’s team takes
care of the project from start to finish,
and its many customers are thus
relieved of the typical stress associated
with anything of such importance,
left instead with more of the crucial,
increasingly rare, time to devote to
other tasks.
Stray expounds on the reach the
ten years of growth and development
has so far afforded the company: “Our
customers are global, and it’s easy to
reach them from our base in Norway
– while many of our customers are
Norway-based, 80% of our products
have a worldwide destination, Brazil or
Asia for example, where we export our
products from here in Europe.”
Flexibility and openness to changes
is a large part of the company’s
culture, giving it the ability to offer quick
responses and manage complicated
projects in a short period of time. Bestra
offers the highest level of expertise in
its diverse fields of manufacturing, this
much is undeniable, but perhaps most
refreshing about its unique approach is
an insistence that this can be achieved
without being, in a word, boring. As
such, team spirit plays a significant role
throughout, with Bestra’s challenge-
loving and solution-oriented personnel
proud to undertake the company’s
work, while maintaining a sense of fun
in everything it does.
GROWTHIt is an approach which has clearly
worked, and has one which has
enabled Bestra to recently establish
Bestra Technology Oy, together
with MEC Insenerilahendused OÜ
in Tallinn, Estonia. The ownership
split sees Bestra and MEC holding
a 51% and 49% stake respectively,
offering structural design, analysis
and engineering services, with the
company already established and
working on new projects.
“For many of our customers, we
just do the fabrication,” explains
Stray, “but, like anyone, we are
always looking to create new links in
the industry. The MMO market has
undeniably become more and more
interesting for us in recent times. It is
a growing market, and one which is
stable, and this is another key driver
behind Bestra Technology.”
Keen to expand on the potential
that this collaboration holds, Stray
details how this goes some way
towards not only strengthening
Bestra’s current position, but also in
achieving its aim of always seeking
improvement. “The cooperation with
MEC to establish Bestra Technology
will contribute to make Bestra a more
complete supplier in the markets in
which we operate today, as well as
give new opportunities to all of us. We
are very pleased to welcome the new
and highly skilled employees to the
Bestra team.” Working in partnership
with another company in this way
certainly represents a new challenge
for Bestra, “but so far we are entirely
satisfied with the cooperation – it has,
so far, definitely been a win-win for
both parties,” states Stray.
Also seeing expansion this year
was Bestra’s own production facility,
with 600 square metres added in
March to the company’s previous
capability. This was primarily driven
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by Bestra’s need to expand in line
with demand, as Stray explains: “If
you look at the development of the
company, we are undeniably quite
customer-driven, and the market
demands more than our capacity
enables us to deliver at the moment.
Secondly, though, we have also
developed a good engineering
department now, which gives us the
potential to deliver other products
to more sectors of the market than
those on which we focus today.”
Characteristically, as soon as this
extension had been finished and
put into operation, plans began
for further growth, which will see
the company’s office facilities in
Viljandi expanded in line with the
increase in demand for Bestra’s
services. Stray also outlines
another of important developments
which Bestra has orchestrated
in its country of manufacture: “In
Estonia, we have been very much
focussed on building an industrial
park, something which has been
held in high regard by the Estonian
government. We have created
this industrial cluster in the middle
of nowhere, which has massive
signification in terms of development
potential for a relatively small
country such as this.”
In terms still of future expansion,
the growing focus on renewable
technologies is something which
has certainly not escaped Bestra,
and is certain to become of central
priority for the company. “We think
we will have to provide products
to this market in the future – we
can definitely see the trend which
is emerging, and although it might
be quite a slow process, we are
undoubtedly moving in this direction.
If we can use existing knowledge
and technology and apply it to a
new field like this one, well, that
would be a dream for us.”
pAGe 52
© Shell
“The cooperation with MEC to establish Bestra Technology will help to make Bestra a more complete supplier in the markets we target today”
ApplIed fIber
pAGe 53
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
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Ensuring security, reliability and scope
of natural gas supply croatiaEditorial: Joe forshaw
Plinacro Ltd is the state owned gas transmission system operator in Croatia. As
the gas transmission system operator, Plinacro Ltd is in charge of transmission
and transit of natural gas; management (supervision and control), maintenance,
development and construction of the gas transmission system; non-discriminatory
access to the transmission system when it is financially, technically and
technologically reasonable and justified; balancing the quantity of gas in the
transmission system and connecting with other gas systems.
As the only operating TSO in Croatia, the company has many responsibilities and
to date it has managed to operate with much success, even during the tough
economic climate. Total World Energy speaks to Plinacro Board Chairman, Marin
Zovko to find out more about recent developments that are further bolstering the
strong reputation of this important European energy organisation.
Q: What has the feedback been like since the commissioning of the Kutina-Dobrovac gas pipeline in May?
By the construction of the gas
pipeline Kutina-Dobrovac a bigger part
of the previous gas pipeline system on
this area has been replaced, including
the gas pipeline Janja Lipa-Zagreb,
the first gas pipeline constructed in the
Republic of Croatia. Due to their worn-
out state, operating pressure of the
mentioned gas pipelines was reduced
as well as their efficiency. Construction
of the gas pipeline Kutina-Dobrovac
increased the transmission capacity
as well as security, reliability and a
scope of natural gas supply
in this part of Croatia.
Q: Considering the company has invested 600 million euro ($820.7 million) in all major gas mains in the country over the last 10 years, building over 1,000 kilometres of new transmission infrastructure, is there much more that can be done in order to bring about 100% gas coverage in Croatia?
By completing this large development-
investment cycle, Plinacro
has
prepared the Croatian gas transmission
system for the integration of Croatia
into the European gas flows and gas
market through taking part in the new
projects which will provide gas supply
from the new routes and sources, transit
of gas to the neighbouring countries as
well as additional connection to the gas
transmission systems of the neighbouring
countries. Implementation of these
projects, first of all the Ionian-Adriatic
Pipeline, is to provide complete gas
coverage across Croatian territory.
plINACrO
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Q: What has the reaction been to the commissioning of the Kutina-Dobrovac pipeline in the Sisak-Moslavina and Pozega-Slavonia counties? Were these areas previously under-serviced?
As I have mentioned before,
construction of the gas pipeline
Kutina-Dobrovac provided increase
of transmission capacities as well as
security, reliability and a scope of natural
gas supply to Sisak-Moslavina and
Pozega-Slavonia County. Even earlier,
supply of gas to the mentioned area
was provided but the completion of the
mentioned gas pipeline took security
and reliability of supply to a much higher
level. This gas pipeline is 32 kilometres
long with pipe diameters of 200mm and
maximum operating pressure 50 bar and
its construction took just over one year.
Q: It has been reported that the country’s infrastructure capacity has
the ability to “meet the long-term needs of the local natural gas market.” Do you agree with this and how much has Plinacro contributed to this?
Plinacro has contributed significantly to
the construction of energy infrastructure
in the Republic of Croatia and in the
longer run it created conditions enabling
the Croatian market demand for gas to
be met in full.
Q: Explain more about other recently completed projects. Apart from the Kutina-Dobrovac pipeline, what other projects have been successfully completed recently?
Construction of the IV section of the
gas transmission system of Lika and
Dalmatia (Benkovac-Dugopolje) can
be considered final activity within our
ten-year development plan which was
strongly oriented to the construction
of the gas transmission system in the
Republic of Croatia. In addition, in
order to make performance of activities
of supervision, management and
maintenance of the main gas pipeline
network easier and create even better
preconditions for reliable and secure
gas transmission, Plinacro will construct
six new business-technical facilities
throughout Croatia. Two of them have
already been completed, in Vodnjan and
Čakovec, and the facility in Dugopolje
is in the final stage of completion. The
remaining facilities will be completed in
the coming period.
Q: What plans are being made for the future? Where is the company’s focus going to be in the next 12 months? What projects are underway right now? E.g. Ionian-Adriatic Pipeline project, interconnection with Slovenia on the route Lučko-Zabok-Rogatec, LNG terminal on the island of Krk?
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Marin Zovko
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At the moment, Plinacro is focused
on the preparatory activities for a
large number of projects. In our focus
are the projects related to the new
interconnections with Slovenia on the
route Lučko-Zabok-Rogatec and
a system of compressor stations
which are of great importance
for the reliable gas supply of
Croatia and the wider region.
Their completion is anticipated
for 2018 and the planned
investments equal around
EUR115 million. In addition,
we have been working on
the preparation of a number
of projects, the scope and
implementation dynamics of
which depend on implementation
of the strategic supply projects
such as TAP/IAP, LNG and the
South Stream.
Q: Tell us more about the recent award collected by yourself for Manager of the Year? Are you proud and is the company proud?
The above mentioned award was
established by the Croatian Energy
Federation, an umbrella national
non-government organisation for
issues concerning energy, renewable
energy sources, promotion of
energy efficiency and environmental
protection and was awarded for the first
time this year. It is great pleasure for
me that my work has been recognised
but even greater because I consider
this award to be also award for the
company Plinacro, that is, confirmation
of our successful business activities.
Q: Tell us more about the workforce employed by Plinacro? How many people currently work for the company? Will this number grow as demand for energy changes? What sort of people are
recruited? Is it mainly engineers with experience in the industry?
Plinacro has been trying to recruit
and keep quality employees and
provide further development of their
competence since we are aware of
the fact that their work, innovativeness
and expertise are one of the most
valuable resources of the company and
the basis of its long-term growth and
development. At the moment there
are 280 employees and almost half
of them are university-trained. Among
them there are engineers from different
branches; petroleum engineers, mining
engineers, geologists, civil engineers,
mechanical engineers; with wide-
ranging experience in the energy
sector as well as numerous experts
of other profiles such as economists,
lawyers and other professions. As for
employing new staff it will depend on
further business activities, that is, future
needs within the business activities.
Q: Can you give us an update on the Okoli Underground gas storage project? What has been done with the site since acquisition in 2009? What plans are in place to improve this facility?
For the time being Croatia has only one
underground gas storage with capacity of
553 million cubic meters of gas, located in
Okoli, a place 50km south-east of Zagreb
and operated by Plinacro´s daughter
company Podzemno skladište plina d.o.o.
(PSP).
When we talk about the most important
activities of PSP in the previous period
we need to point out reconstruction
and modernisation of the storage
facility, carried out immediately after
Plinacro acquired PSP Okoli, and which
provided pre-conditions for the increase
of exit capacities by up to 20%. At the
moment PSP has been investing in the
modernisation of the underground storage
in Okoli, so the international tendering
for carrying out works on the project of
constructing two new wells and laying
down connecting gas pipeline, which is
to connect these new wells to the existing
system, has been just concluded.
Planned completion of works has
been anticipated in 2015. Project of
replacement, that is, modernisation of the
existing moto-compressor station is in
progress and the aim of it is to increase
existing injection capacity and provide
reserve injection capacity, enhance security
of supply for consumers, reduce emission
of harmful gases and operative costs
as well as to increase competitiveness
of the storage facility and provide better
flexibility in providing services. At the same
time, investment activities of PSP have
been focused also on the forthcoming
commencement of the mining-workover
activities and the additional measurements
at the hydrocarbons field Grubišno Polje.
The above mentioned needs to be done
in order to confirm the existing and gain
possible new information about this gas
reservoir, which is a precondition for
commencing construction of a peak gas
storage facility on that location.
Q: Considering the on-going global focus on switching to renewable energy where possible, does Plinacro feel under pressure to perform efficiently in the future? Does the company consider gas as an important resource in the country’s future energy mix?
I would not say we feel any pressure,
however, we have been following thesis of
the strategies for energy development of
the Republic of Croatia and the European
Union. Currently, the percentage of gas in
the total consumption of primary energy
equals no less than around 30% and I
believe that due to its complementarity
to other renewable energy sources it
will continue to be of great importance,
especially because of strategic
geopolitical position of the Republic of
Croatia, having in mind the new supply
routes such as TAP/IAP, LNG and the
South Stream.
Q: Considering the positive business results achieved in 2013, does the company expect similar positive results in the future?
As a well-structured and organised
company, from its foundation till today,
Plinacro has been placed in the group of
the most stable Croatian state-owned
companies. This was confirmed also in
the last year by our financial results as well
as timely and successful realisation of all
business plans. Namely, in 2013 our gross
profit was 80% higher than in the year
before.
Measures of business operation
rationalisation have been carried out strictly
and continuously and a special attention
has been given to the cost management.
I honestly believe that also in the future,
in the first place thanks to expertise,
experience and work of its employees,
Plinacro will successfully achieve all set
goals, and remain a driving force of the
Croatian energy system development
by opening significant development
possibilities for the entire Croatian
economy.
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© Shell
plINACrO
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Construction of the IV section of the gas transmission system of Lika and Dalmatia
Although the energy input for the production of one ton of paper has been reduced by more than half in the past 50 years, and
meanwhile only 3 066 kWh/t are consumed in the form of steam and electric power¹, paper manufacturers still face great challenges with
regard to energy efficiency. According to industry figures, the mean share of energy costs in total production costs is approximately 12%.
Energy is a decisive production factor, and the constantly increasing expenditure on this resource presents a permanent threat to the
economic efficiency and existence of enterprises. (Fig. 1).
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Efficiency Improvement of an industrial power plant in the pulp and paper industry
Optimisation of the Industrial Power Plant of a Pulp & Paper MillIn paper manufacture, energy is the decisive production factor. Where a considerable amount of energy in the form of steam and power is consumed, this must be provided as efficiently and cost-effectively as possible. A reason why many enterprises in the pulp and paper industry already opt for their own power plants operating in combined heat and power mode (CHP). However, the power plants often do not work at the efficiency level they could achieve with optimised parameters. The following article presents a feasibility study conducted to identify potential areas of energy efficiency improvement in the pulp and paper mill’s in-house power plant, and its implementation. The project was carried out for the pulp & paper mill Kartonfabrik Buchmann GmbH by the specialised power engineering specialists of Reinstein GmbH.
technicalFEATURE
Energieeinsatz pro Tonne Papier energy demand per ton of paper
Quelle:
VOP Verband Deutscher Papierfabriken e.V.
Source:
VOP Verband Deutscher Papierfabriken e.V. [German Pulp and Paper Association]
Fig. 1: Energy demand in paper production
The pulp & paper industry is one of the most resource intensive basic industries. To counteract increasing costs for electric power
and fuel such as oil and gas, manufacturers have already taken a range of energy efficiency enhancement measures:
• optimisations of the production process itself have been implemented, e.g. more efficient components and procedures,
renewal of systems or components
• 72% of the companies utilise the combined heat and power principle in their own power and process steam generation²
• the kind of fuels used has often been converted to regenerative and environmentally-friendly alternatives; for example, the
waste materials created in the production process are being used for energy generation.
However, investigations show that there is certainly still considerable room for further improvement. More efficiency enhancement potentials exist throughout the entire process chain.
1. The initial situationThe pulp & paper mill Kartonfabrik Buchmann GmbH situated in Annweiler, Germany, ranges among the leading manufacturers of
cartonboard fabricated from recovered paper and fresh fibres. The board machines produce about 240 000 tonnes of cartonboard
per year.
Buchmann employs 325 people and focuses on environmental protection and sustainability. Processes and systems are
consequently advanced and optimised in order to protect resources and minimise emission.
For this purpose, Buchmann maintains a consistent energy management system. The company uses the combined heat and
power generation method, and the possibilities of heat recovery. Operating around the clock, two natural gas fired power plant units
generate the process steam required for the cardboard production (Fig. 2).
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HKW CHP Unit
Strom & Wärme power & heat
Prozessdampfschienen process steam headers
kalte Reserve cold standby
Kartonfabrik pulp & paper mill
Strom power
öffentliches Netz public network
Fig. 2: Plant layout of Buchmann Pulp & Paper Mill
Simultaneously, gas turbines and steam turbines generate a major part of the required electrical energy of up to 15MW. Therefore,
only a minor portion has to be obtained from the public network. A standby unit is available for primary steam generation in case of
emergency.
A detailed review of the facility - which covered exclusively the power plant sector and not the cardboard production itself - was to be
conducted to identify potential areas of energy efficiency improvements, which were to achieve the following main goals:
• increasing the mill’s own power generation capacity (reduction or elimination of external energy demand)
• further reduction of thermal loss
• fuel savings through improved fuel utilisation
• changing from water cooling to environmentally-friendly air cooling
• reliability enhancement and improved incidence control
• improved recording of operation parameters and further automation of plant control.
2. Challenge and general procedure
Energy consumption in pulp & paper mills is highly complex, and measuring as well as control devices, which are required to identify
the consumption of steam and electric energy, are partly missing at the individual consumers. If optimisation potentials are to be
recognised and evaluated, all plant components and the production process are to be systematically analysed. This challenge was
also faced in the present case.
The efficiency enhancement measures were implemented in three consecutive process phases (Fig.3).
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1 Potential Analysis
Analysis Workshop
2 Execution of a Tailored Feasibility Study
on Efficiency Improvement
3 Implementation of the Efficiency Improvement
Measures desired by the Client
Fig. 3: Project implementation based on Reinstein’s three-phase-approach
Sections 2 to 4 of this article cover the first two phases, whereas phase 3 is described in Section 5 below.
In Phase 1, first the technical and economic project goals were determined in a client workshop. Reinstein’s project team
consisted of five engineers of the process engineering, steam turbine, gas turbine, boiler, and electrical, control & instrumentation
sectors.
Afterwards, a detailed inventory was prepared, which required interviews with the client’s experts and executives involved. Their
long-term experience in the plant operation allowed weak points to be quickly identified.
In addition to analysing the documentation available, Reinstein collected its own measuring data in order to determine the process
steam and electric power demand. Finally, the machinery and components, including steam turbine, boiler, generators, electrical
equipment, control & instrumentation systems and water supply system were given close scrutiny.
In Phase 2, the enhancement proposals resulting from the analyses and inspections were firmed up.
Over a prolonged period of time, a multitude of production conditions and plant operation modes including specific incidences
could be reviewed. In the process, basic data for the design of components were determined. For example, material balances and
energy balances were assessed by means of heat flow diagrams.
Finally, the technical specifications for the proposed improvements could be developed, and budget quotations for the individual
work packages obtained.
When the budget quotations were available, they were reviewed and evaluated technically and economically. Ultimately, this
profitability analysis formed the basis for the client’s investment decision.
Four efficiency enhancement scenarios were investigated, and two of them, involving comparatively low investment cost,
crystallised as the most economical alternatives.
3. Results of the study
The industrial power plant at the Buchmann Pulp & Paper Mill has been designed to operate exclusively in combined heat and
power mode, which means that a high fuel utilisation rate, and simultaneously a maximum power-to-heat ratio are to be achieved. In
addition, the industrial power plant should be capable of controlling incidences resulting from the cardboard production process (such
as a sudden break in the paper web).
The weak points identified included:
• inadequate development of the combined heat and power generation systems - part of the steam energy is still destroyed in
reducing valves instead of being turned to energy in a steam turbine
• avoidable heat loss at the boilers
• weak points at the steam generators and excessive steam temperatures that cause inefficiency
• suboptimal unit configuration and inadequate interaction of components
• outdated control & instrumentation systems which, moreover, are not of redundant design.
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Combined heat and power generation (CHP)
The decisive factor for the profitability of a power plant is the facility’s degree of efficiency.
With the heat produced by the combustion of one energy medium, conventional thermal power plants generate exclusively
electrical energy and achieve efficiencies of approximately 60%.
Power plants utilising the combined heat and power principle (CHP) also use the waste heat for energy generation. This technology
allows efficiencies of up to 90% to be achieved, since it utilises electric power and heat energy simultaneously (Fig. 4).
The heat generated may, for example, be used as district heating for households, or as process heat for production. Because
of the high process steam demand in its production process, the pulp & paper industry is an ideal application for the CHP
technology.
Luft Air
Gas Gas
Gasturbine Gas Turbine
Generator Generator
Gas-Luft-Gemisch Wird In Turbine Verbrannt Gas-Air Mixture Is Combusted In The Turbine
Kessel Boiler
Rauchgas Flue Gas
Wasser Water
Wasserdampf Steam
Dampfturbine Steam Turbine
Strom Electric Power
Prozessdampf Process Steam
Fig. 4: Combined heat and power generation principle
Reinstein recommended to its client a package of different measures, part of which could also be implemented independently of
each other. These included the use of a new steam turbine, the enhancement of the most important boiler, and the improvement of
its efficiency through a considerable temperature reduction of its exhaust gases at the stack. An upgrading of the larger gas turbine
by a conversion to low-NOx combustion was planned, which would reduce environmental burdens caused by nitrogen oxides.
Minor improvements were made to the water-steam cycle and to the control & instrumentation systems.
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The study proved that an optimal configuration of the industrial power plant would be able to increase the mill’s own power generation
by up to 2.5MW. The thermal loss, which was already at that stage at a low level, could be further reduced from the current 20%
to 10-15% of the fuel input. Moreover, an expansion of the existing control and instrumentation systems would simplify the control,
render it more transparent, and facilitate incidence control.
In addition, the study showed that reduced fuel costs and a smoother operation of the facility would allow the necessary investment
to be already amortised within approximately three to five years. Moreover, financial advantages under the CHP subsidisation
programme could be expected.
4. Conclusion regarding Sections 1 to 3 above
In in-house power plants of pulp & paper mills - like in other sectors -, a multitude of optimisation measures can already be
implemented with experienced and well-trained employees. However, the detailed specialised knowledge and expertise of external
consulting engineers allow additional aspects and details to be considered that may be overlooked by internal staff. For the project
result, it is of prime importance that, using a dedicated methodology, the know-how of the client’s operating team is first surveyed and
recognised, and then the internal and external points of view, and existing and newly recorded data integrated in an overall analysis.
With every common step taken within the scope of the feasibility study, increased knowledge was gained by both parties, whereas
decision uncertainty was reduced. As a result of the study, the profitability of the investments could be estimated fairly accurately -
investments which are worthwhile even in facilities that are already operating very economically, as they allow pushing the efficiency
limits even higher.
Energy is the decisive factor in paper production; the in-house power generation in Buchmann’s own power plant could be
significantly increased.
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“Reinstein’s engineers supported us from the initial feasibility study and fully served our interests as expert consultants. All services were completed on schedule, and even below budget.” Armin Lehmann, Technical Manager at Buchmann GmbH, Annweiler, Germany
5. Summary of technical data established during the analysis and feasibility study stages, and implementation of the efficiency improvement measures desired by the client
As stated above, the pulp and paper industry is one of the most resource intensive basic industries. Therefore, a lot of factories
have their own industrial power plants (so-called IPPs) that utilise the combined heat and power principle (CHP) and achieve high
efficiencies. Efficiency is defined as the ratio of economically utilised energy to the overall energy input. The CHP technology allows
efficiencies of up to 90% to be achieved, since it generates electric power by also utilising the waste heat energy for the generation of
the process steam required for paper production.
5.1 Summary of GoalsIn 2010, Reinstein’s engineers were tasked by Buchmann with the implementation of the feasibility study. This was focussed
exclusively on the power plant section of the facility and not on the cardboard production itself. The entire energy generation situation
was to be thoroughly reviewed with a view to enhancing the efficiency of the in-house energy production. During the study, first the
goals of the scheme were defined:
5.1.1 Meeting the process steam demandThe structure of the facility is the result of historical development, and it is no longer optimally configured at this stage. The
improvement measures were to increase the steam generation reliability. The main task of the improved facility would be the provision
of the steam actually required for the two cardboard machines, which may always be subject to considerable fluctuation.
5.1.2 Meeting the power demandThe total power requirement of the facility is 15MW. For technical reasons, only 6MW can be obtained from the public network. At the
end of the project, the total power required was to be generated locally.
5.1.3 Control of incidencesThe outdated control and instrumentation systems of the original facility did not always allow optimum management of paper
fabrication incidences, for example in case of a sudden break in the paper web. A lot of control functions had to be carried out
manually. Buchmann hoped that as a result of the measures taken, interruptions in production caused by disturbances in the
electrical power supply would be eliminated. This included an increased automation level, which would also allow an improved
recording of operating parameters.
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5.1.4 Environmental protection / sustainabilityThe overall fuel demand - natural gas in this case - was to be reduced and the degree of utilisation to be increased. Another
requirement to be fulfilled was the protection of resources through the change from water cooling to environmentally-friendly air
cooling.
5.2 Layout of the original facilityAs stated above, with its two cardboard machines, Buchmann GmbH produces more than 240 000 tons of cardboard per year. The
generation of energy in the form of process steam and electric power is provided by a complex industrial power plant, which has
been equipped over its more than 100 years of corporate history with five units. Together, these units form the so-called “Annweiler
IPP”. The power plant, designed to operate exclusively in combined heat and power mode, partly did no longer meet the latest state
of power plant technology (Fig. 5).
Fig. 5: Basic diagram of the original IPP before implementation of the measures
HKW CHP Unit
Luft Air
Kessel Boiler
Dampfturbine Steam Turbine
Kartonproduktion Cardboard Production
Druckreduzierstationen Pressure Reducing Stations
Stromversorgung Gesamtanlage Power Supply, Entire Facility
Kartonmaschine Cardboard Machine
Nebenanlagen (Entgaser, Wasseraufbereitung etc.) hier nicht dargestellt
Balance Of Plant Items (Such As Degasifier, Water Treatment System, Etc.) Are Not Shown Here.
The individual CHP units consist of the following components (for reasons of presentation, balance of plant and ancillary items such
as degasifier, demineralisation system, feedwater tank, etc. are disregarded here ):
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• CHP Unit 5 was set up in 1975 and modernised later on. It is the basic unit for the supply of the factory with electric power
and steam. The unit, which was initially fired with heavy oil, consists of a power boiler and a steam backpressure turbine,
which can achieve a power of up to 6MW with the current process steam demand. In 1997, a 4.5MW gas turbine (topping
turbine) was provided upstream of the boiler, which is now fuelled by natural gas. The system generates steam at a pressure
of 110bar and a temperature of 530°C. Only this unit is equipped with a well-developed water-steam-cycle; therefore, the
overall facility is almost exclusively controlled via this unit (technical control room).
• CHP Unit 3 consists of a 3.6MW gas turbine and downstream heat recovery steam generator, which generate steam at
45bar and 450°C. The live steam generated there at a rate of 8.5t/h is immediately fed via pressure reducing stations to the
process steam headers. The unit was modernised in 2007 to the present configuration.
• CHP Unit 4, built in 1967, serves for “cold standby” steam generation in case of emergency. This unit can still be fired with
heavy oil; the existing turbine is no longer operational.
• CHP Units 1 and 2 have been shut down and decommissioned.
5.3 Optimisation approachesInitially, the weak points of the overall facility were identified and documented in the study. The following areas turned out to offer the
highest potential for efficiency improvements:
• In CHP Unit 5, the arrangement of the superheaters (where the steam is heated further) remained unchanged in the boiler
itself when the unit was converted from heavy oil firing to natural gas firing (topping turbine). This gave rise to a very high flue
gas temperature at the stack, which caused efficiency loss.
• The CHP system was still inadequately developed; part of the steam energy was still destroyed in reducing valves instead of
being turned to electric power in a steam turbine.
• The steam backpressure turbine of CHP Unit 5 operated far below its design values and thus with a low efficiency.
• Since the modernisation of CHP Unit 3 in the year 2007, the downstream generation of condensation energy had not been
implemented in this unit. Therefore, the in-house power generation in CHP Units 3 and 5 was not sufficient for operating the
factory independently of the public network.
• To achieve a comprehensive integration of all functions required for the operation and monitoring of the power plant, some
improvements were found to be necessary. The operation and monitoring of the overall power plant process was found to
be rather complicated and only to be managed by experienced staff familiar with the particularities of the systems. Control
and instrumentation systems were not designed redundantly as is common practice today. Thus, individual faults causing
considerable operational malfunctions were unavoidable.
• Therefore, the unit configuration and the interaction of components were to be optimised.
5.4 Measures implementedIn the report on the results of the feasibility study, a package of different measures was recommended to the client, part of which
could also be implemented independently of each other.
After completion of the profitability review, Reinstein GmbH was tasked with the implementation. The following measures were
implemented (Fig. 6):
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Fig. 6: Basic diagram of the IPP after implementation of the measures
• In CHP Unit 5, the existing gas turbine was replaced by a module of higher capacity, which now increases the power
output by approximately 0.5MW to a maximum of 5.4MW. The new system uses the state-of-the-art low NOx combustion
technology, which reduces burdens on the environment caused by nitrogen emission (1).
• Various measures were taken to increase the efficiency of the boiler in CHP Unit 5; mainly by significantly reducing the
exhaust gas temperature at the stack. The arrangement of the superheaters was modified and they were partly replaced (2).
• The steam turbine of CHP Unit 5 was redesigned to meet the actual steam demand and replaced by a new one (“DT7”,
with gearbox, generator, and auxiliary systems). The steam generated in CHP Unit 3 is now also routed to the new steam
turbine in CHP Unit 5. The new system supplies process steam to the mill’s 8.5bar header as well as to the 3.4bar header.
A “destruction” of steam energy in the reducing valves is now eliminated. These combined measures have increased the
power to 11.5MW (3).
• In order to enhance the reliability of the process steam supply, the boiler of CHP Unit 4 was connected to the components of
CHP Unit 3 (45bar system) (4), serving as a standby unit.
• Hardware and software of a state-of-the-art, computer-aided PLC process control system were installed, which will allow the
complete facility to be monitored and controlled in a simple and safe manner.
• Additional improvements have been made to the water-steam-cycle; approximately 75% of the existing piping systems were
renewed, which also contributed to the goal of enhancing the power plant efficiency.
5.5 ConclusionEven for facilities already operating with a high degree of efficiency, investments are worthwhile which further increase the energy
efficiency and adjust the technology to the latest state of the art. They provide economic and ecological benefit, especially in
resource-intensive sectors such as the pulp and paper industry. For extensive optimisation programs, it is advisable to draw on the
knowledge and experience of specialised consulting engineers, who work in close cooperation with the plant owner and elaborate
tailored solutions.
The combination of the individual measures allowed the pulp and paper mill’s in-house power generation capacity to be increased.
Now even excess electricity is produced, which may be sold in the market if this is economically reasonable.
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The thermal loss, which was already low before the measures were implemented, was reduced from approximately 20% to 10 to
15% of the fuel input.
The upgrading of the existing control and instrumentation systems enhances the transparency and convenience of the plant control,
and allows quicker management of incidences.
From an economic perspective, Buchmann’s investments will be amortised by fuel savings and a smoother operation within
approximately three to five years. The completion of the project is scheduled for the second half of the year 2014.
¹ VDP Verband Deutscher Papierfabriken e.V. [German Pulp and Paper Association]
² VDP e.V.
www.reinstein-energy.de
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About Reinstein Reinstein GmbH are consulting engineers specialised in conventional power plants and renewable energies. Reinstein’s services cover the entire lifecycle - from planning, construction, commissioning and operation up to decommissioning. Reinstein’s team provides consultancy in optimisation, reorganisation and change management and assists you in taking strategic decisions, and throughout their implementation.Since 2012, Managing Director Dr.-Ing. Marc Reinstein is a lecturer in Project Management at the University of Saarbrücken, Germany.
Dr.-Ing. Marc Reinstein
© Airbus S.A.S. 2011
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STANDARDKESSEL BAUMGARTE - Power plants, plant operation, and services for generating electricity, steam, and heat from residues, primary fuels, waste heat, and biomass.
Within the Reinstein optimisation project, Standardkessel Baumgarte Service improved the boiler effi ciency and adapted the emission values to the new 13. BImschV (IED 2010/75/EU). Furthermore the steam temperature control was modernised by spray attemperators. Former damages due to fl ue gas imbalances will be avoided in future by a new superheater design. Our engineers are ready to modernise your boiler too.
More information and references available at
www.ideas-full-of-energy.com or
Phone: +49 203 452 460
THE ENERGY OF THE FUTURE.INTELLIGENT SOLUTIONS FOR EVERY FACET OF YOUR ENERGY SUPPLY.
There are many ways to generate heat, steam and electricity from the most varied energy carriers. We, Standardkessel Baumgarte, know them – and also find new ones. In this case, experience is our best investment. Thanks to the experience of more than 160 years, we have a unique and wide range of process know-how. No matter whether the supply of high-quality components or the construction of sophisticated complete plants is involved – or whether tailor-made solutions for after-sales services and contracting are in demand - we are the right partner.Therefore it is no wonder that power supply companies, municipalities, municipal utilities and industrial companies rely on our competence.
As a strong group of companies, we are driven by one thing in particular:
Ideas full of energy.
Fifty years on from the world’s first
commercial shipment of LNG, the
threat of Russian restrictions on
gas flow through the Ukraine has
pushed energy security to the top
of the European agenda.
Europe imports 40 per cent
of its gas from Russia - 60 per
cent through Ukrainian pipelines
– and the EU executive is looking
at new and alternative sources
such as the Caspian Sea and
Mediterranean.
A front leg in this stand-apart
strategy is to step up imports of
liquefied natural gas - gas that
is cooled into liquid form at 160
degrees Centigrade, reducing it to
one-six-hundredth of its original
size. Transported by tanker to
specialised handling locations it
is converted back into a gaseous
form for delivery to users.
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The future is at the GATE TERmINAlEditorial: colin chinery
GATE TERMINAL on the Maasvlakte in Rotterdam, was the first import terminal for liquefied natural gas (LNG) in the Netherlands. Now, with its operational capabilities expanded, further developments in sight, and LNG taking an increasing role on energy’s centre stage, GATE TERMINAL is positioned to develop as a major hub for north western Europe.
As a partial deliverance from
major source dependency, the EU
move would be a long-term tactic.
But along with other developments
in the LNG market, the potential
for GATE TERMINAL, the first –
and currently underused - LNG
import terminal is encouraging.
Opened in late 2011, GATE
TERMINAL– ‘Gas Access To
Europe’ – adjoining the Port of
Rotterdam, combines the receiving
and unloading of LNG carriers at
its two jetties with gas storage in
three large containment tanks.
In place is a supporting network
of circulation pipelines and a
process area where the LNG is
regasified (cooled) and broken
down into smaller quantities for
further distribution.
Location and function means
that GATE TERMINAL is able to re-
enforce the security of LNG supply
in north western Europe while
providing a continuous supply
of natural gas through the Dutch
transport network.
KEY EUROPEAN HUBBuilt by the state-owned gas
infrastructure company Gasunie
and Netherlands-based liquid bulk
tank storage company Vopak,
the GATE TERMINAL was seen
by the Dutch government as part
of its strategy to hold on to the
Netherlands position as a key
European gas hub.
While Europe has abundant
capacity for LNG imports,
particularly in Spain, pipeline
bottlenecks in the Pyrenees could
make it difficult to move gas from
Spanish ports to central Europe.
The Rotterdam facility would
not face that problem. GATE
TERMINAL can regasify and pump
out 12 billion cubic metres a year
and Gasunie says its network
is capable of moving all of the
GAte termINAl
pAGe 73
© Shell
pAGe 74
terminal’s production into Germany
(much of GATE TERMINAL’s gas
already flows south and east as far
as Austria and Hungary).
“In principle the GATE
TERMINAL was developed as
an additional access point for
entry into the European gas grid,
a regasification terminal only.
Security of supply was a very
important issue then as now,”
says GATE TERMINAL Managing
Director Dick Meurs.
“Another factor was the
diversification of gas sources into
the system, a key element for
customers since it enables them to
have more options available.”
Timing is a capricious enterprise
partner however. Six month
before GATE TERMINAL came on
stream, a tsunami triggered by an
earthquake off the coast of Japan
took the lives of tens of thousands
and causing a catastrophic failure
at the Fukushima 2 nuclear power
plant.
Three of its six reactors melted
down in the biggest nuclear
disaster since Chernobyl in 1986,
leaving the world’s third largest
economy reliant on LNG to fill its
energy gap.
Since then plans to phase out
nuclear power in the next few
decades have made the role and
importance of LNG increasingly
important in Japan’s energy
strategy.
”Fukushima changed the
global energy market a lot,” says
Mr Meurs. “With Japan buying
into LNG, LNG prices went up
significantly, and for Europe in
general this brought a change in
the market dynamics.”
For GATE TERMINAL and
other European terminals it has
meant a high level of unutilised
capacity. But now the dynamics
are changing again. Gas prices
on the world’s largest market,
the USA, collapsed following the
development of indigenous shale
gas.
And last month global prices for
LNG dropped to their lowest level
since the post Fukushima nuclear
crisis – 40 percent down on 12
months - as low summer demand
in the northern hemisphere was
met by rising Asian output.
SECURE AND GREENWith European facilities operating
at one third capacity, governments
are looking at increasing LNG
imports to buttress supply security
as changing conditions are making
LNG competitive as well as
environmentally more attractive.
GATE TERMINAL developed
originally as a shipping-focussed
import terminal. But since last year
it has also been an export terminal,
with new facilities for small vessel
berthing and reloading LNG in
support of small scale market and
global trading developments.
Now with the commissioning
of a truck loading station, GATE
TERMINAL can not only send
gas through the Dutch pipeline
network, but also transport LNG
as clean alternative to traditional
fuel for both shipping and road
transport.
“The growing market for LNG as
a fuel for maritime uses and heavy
duty road transport is one that has
developed since GATE TERMINAL
opened and becoming more and
more significant,” says Mr Meurs.
“Last year we adapted the
terminal to enable our customers
to load ships and also accept
small coastal tankers that
distribute LNG to the Baltic and
Scandinavian area.
“And since the beginning of this
year we have been operating our
truck loading station enabling our
customers to distribute LNG into
north western Europe by road.
“This puts the GATE TERMINAL
more into the position of a genuine
LNG hub, not only delivering gas
into the grid but also distributing
smaller parcels of LNG to other
parts of Europe and larger ones to
other parts of the world.
“Now we must see to what extent
the market will grow - and how
fast - to support further investment.
We still have our core group of five
major European energy suppliers
- Dong Energy, EconGas, RWE
Supply and Trading, Eneco and
E.On Ruhrgas – and we are now
developing additional customers,
especially on the trucking side.”
© Shell
“In principle the GATE TERMINAL was developed as an additional access point for entry into the European gas grid, a regasification terminal only. Security of supply was a very important issue then as now”
GAte termINAl
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Port of Ngqura
YOUR REPUTATION IS MINE.
CAN YOUR REPUTATION BECOME OUR RESPONSIBILITY?
At Vinçotte we want to help guarantee the reputation of our industrial and regular clients when it comes to quality, safety and the environment. As independent and impartial service provider we offer inspections, testing, certification and training in these fields. With more than 140 years of expertise we offer more than 130 services (electricity, hoisting apparatus, pressure equipment, civil engineering, safety in the work place, environmental protection and radiant protection) in a variety of sectors.
The Vinçotte group has an annual turnover of 201 million euros and 17 offices worldwide. Our headquarters are situated in Vilvoorde, Belgium.
Take a look at our services on www.vincotte.com
pAGe 76
FUEL FOR THE FUTUREIn January Primagaz Benelux
loaded the first trailer of LNG at
GATE TERMINAL. Logistics partner
Primagaz provides propane to
more than 30,000 private clients
and businesses across the
Benelux region – and the deal is
seen as another milestone in the
development of small scale LNG,
confirming its appeal as the fuel
for the future.
Vopak is the world’s largest
independent tank storage service
provider, operates 79 terminals
with a combined storage capacity
of more than 31million cubic
meters in 29 countries - in Britain,
the deep sea ports of London,
Teesside, Windmill, Barry in South
Wales, and Thames Oilport.
The majority of Vopak
customers are companies
operating in the chemical and
oil industries. Japan and South
Korea are the world’s top two LNG
buyers, together with India and
other Asian gas importers, taking
some 70 percent of global exports
of the super-cooled fuel.
With an annual gas throughput
of 127 billion cubic meters,
Gasunie’s network ranks among
the largest high pressure gas
pipeline grids in Europe, with more
than 15,000 kilometres of pipeline
in the Netherlands and northern
Germany, dozens of installations
and 1,300 gas receiving stations.
“GATE TERMINAL is an
independent entity with a
shareholding structure, but we
share best practices and have
some interchanges with
personnel and training,” says Mr
© Shell
Meurs, a former director of Vopak
Venezuela, with an extensive
global experience in managing
companies in shipping, logistics
and terminal operations.
Before joining Vopak in 2008
he was director Maersk Logistics
South America, and has held
senior management positions
at P&O Nedlloyd in South
America, Asia and Europe. “My
background is in civil engineering,
but my interest has always been
in maritime activities such as
logistics, transport and terminals.
“Vopak very much specialises
in the storage of liquid products
– aside from GATE TERMINAL
it also co-owns and operates a
LNG terminal in Mexico - while
Gasunie has a broad expertise
in infrastructure and logistic.
Each partner shares the other’s
experience in technical fields.”
THE MOBILE SOLUTIONFifty years after the first
shipment left the Arzew plant,
Algeria for Canvey Island in the
Thames Estuary, Dick Meurs
is confident about LNG’s and
GATE TERMINAL’s unfolding
development.
“The beauty of LNG lies in its
mobility. Normally with gas you have
to go through a pipeline, and this
imposes restrictions on distance. But
LNG is a very flexible commodity. It
can change owners several times
and it can move anywhere.”
There is enough gas for the next
200 to 250 years. Increasing
the share of renewable sources
for producing energy, such as wind
turbines or solar power, will take
time, with more technology required
to make them cheaper.
Natural gas - also in its liquid form
as LNG - has an important role to
play to enable this transition process
and to keep the energy supply of
Europe stable, reliable and affordable
while renewables are increasing
their share in the energy mix. In the
coming decades natural gas - and
in time also green gas and bio-
LNG - can contribute significantly
to reaching EU’s CO2 emission
reduction targets
GAte termINAl
pAGe 77
“Last year we adapted the terminal to enable our customers to load ships and also accept small coastal tankers that distribute LNG to the Baltic and Scandinavian area”
KWS Infra: The connecting factor
KWS Infra bvDistrict ZwijndrechtOhmstraat 2-4 3335 LT ZwijndrechtT +31 (0)78 625 08 00 F +31 (0)78 625 08 [email protected]
KWS Infra is one of the 120 operating companies of Volker Wessels. A full service contractor for all imaginable disciplines. We can help you with a integrated advise, design, construct and maintenance of your conceptual design. At Gate Terminal we integrated design and construct of Ground work, Civil work, Road work, Mechanical piping, Construction work and Maritime activities.
pAGe 78
© Shell
International testing, inspection and certification (TIC) company, Vinçotte, provides more than 130 specialised services and has more than 140 years of experience (Since 1872). Ensuring your projects are safe, of high quality and legally compliant with both regional and international laws, the Belgian company is the perfect partner for all of your TIC needs.
Vinçotte was a major player during the development of the GATE terminal and Head of Business Development - Industrial Services, Ben Verhagen says that the company’s work in Rotterdam is on-going.
“We were involved in the complete project from beginning to end and even today, now that the terminal is operational, we are still involved making sure that everything is running safely.
“We were involved in the complete scope concerning quality, inspection and testing,” he says.
“We were involved in advising the Dutch government on which rules and regulations are in place in Europe and internationally, we were also involved in all of the pipes and plates as a third party inspector, confirming standards.”
One of the elements that set Vinçotte apart in the TIC industry besides its reputation as trusty service provider is its portfolio of service offerings. The company is capable of offering a full range of TIC
services, creating a single point of contact for the client and ensuring round the clock safety and reliability.
“Another one of our strengths is that we have all services in-house so we can help people from start to finish. Other companies specialise in one area, for example certification or inspection, but they will maybe not offer NDT (Non Destructive Testing). So clients can choose other companies for very specific tasks or they can come to us who is offering the full package and a single point of contact, saving a lot of time and trouble,” says Verhagen.
As for NDT, Vinçotte remains an industry leader offering a range of ‘standard’ and ‘advanced’ testing techniques.
“At GATE, our team undertook all of the conventional NDT but one of our strengths, why we work on LNG terminals internationally, is our advanced ultrasonic testing.
“For example Automatic ultrasonic inspections can replace radiography on the inspection of 9% nickel storage tanks and with our system we can prove to everybody that we can detect all indications in the welds, from the smallest inclusions to cracks, and what’s more, there is no radioactivity used so all workers including welders, constructors and scaffolders can continue working during
inspection, saving a lot of time for the end user,” explains Verhagen.
Evidence of the quality standards kept by Vinçotte is the GATE terminal itself where “everything has gone very smoothly but the reason we do these tests is because no one is perfect. There will always be a chance of a welding error or something which has to be adapted.
“GATE wanted to have a safe, quality operating plant which can be used for many years to come so they see us as a partner and someone who can help them improve their quality and to prove that they deliver top quality.
“In the end, when the project is finished, they received a certificate from us to confirm that everything is controlled and 100% conform the requirements of the code and specifications. They are proud to show this to new clients so our output is considered as an asset,” says Verhagen.
In the future, the energy industry and the LNG sector in particular is offering many opportunities for Vinçotte and its Industrial Services division. “We have around 2500 people internationally of which 400-500 people are active with NDT,” says Verhagen. “The LNG market is very important for us, we are also very active in other markets such as the nuclear, pipeline, construction and other markets. Today Vinçotte is also working on the ITER project in France which is a nuclear fusion project and one of the most important in the world.
“We have been internationally active in the LNG market for many decades (e.g. Belgium, Canada, France) and since GATE, we’ve worked on LNG projects in Algeria and Poland and we are looking at a major project in Australia,” and with Vinçotte’s superior NDT capabilities, all of these projects can be sure that their reputations will be upheld and include safety and reliability at the core of all operations.
“making your reputation our responsibility”Vinçotte is one of the world’s leading TIC companies and its work at the GATE terminal off the coast of Rotterdam is a demonstration of exactly how the business can look after your reputation while also providing an unrivalled portfolio of TIC services.
“We were involved in the complete project from beginning to end and even today, now that the terminal is operational, we are still involved making sure that everything is running safely”
Ben Verhagen Head of Business Development Industrial Services
Port of Ngqura
Safety is of paramount importance when setting about a project like that which saw the GATE terminal emerge on Maasvlakte in Rotterdam.
With pressurised storage and transport of materials making up the lifeblood of the facility, it is vitally important that the infrastructure was, and continues to be, in line with both regional and international legal requirements. This is where the NDT and the Pressure Equipment divisions of Vinçotte come into their own.
“At the time, according to European and national legislation, the Pressure Equipment Directive (PED) was applicable so we had to act as a Notified Body of the PED on all the pressure equipment of the terminal; all of the piping, some pressure vessels and vaporizers,” explains Fop van der Bie, Manager Division - Pressure Equipment for the Netherlands.
“Then, of course, you have the LNG storage tanks which have different regulations but a requirement to have third party inspections.
“This is one of the bigger projects that we as Vinçotte Netherlands have worked on. It was the first real LNG terminal in the Netherlands; it was very interesting and very professional. We started there in 2009 and the project ended on schedule in 2011,” he says.
However, where needed, Vinçotte provides ongoing support on all of its projects and the law requires that a facility like GATE terminal is inspected on a periodical basis.
“All of the items which require a Putting Into Service inspection by Dutch law, also require periodic inspections during the in service period. From day one, we have continued our involvement as planned,” explains van der Bie. “The people there have changed of course, some that were there during construction remained for some time but one by one they have all
disappeared to other projects around the world and now it’s the experts who will run the daily operations of the plant.”
The laws that govern the energy industry are strict and navigating them to ensure absolute compliance is something with which Vinçotte is more than happy to help. Van der Bie says that one of his division’s core strengths is being able to educate clients on best practice.
“Many of our clients are big companies, they want the best, and they require the best. Otherwise they won’t be big for so long. Our strategy is to know exactly what is required from national and international law; we are involved when the laws are made for tomorrow or for the coming years and we can advise on the best course of action. Sometimes our clients are right on the edge of what is possible and that requires an understanding of the law in order to make sensible choices,” he says.
Another strength lies in the company’s flexible approach to work. Weekends, late nights, remote locations; nothing stops the workforce getting important TIC jobs done.
“We are very flexible in our approach. Our people are very flexible and we can react quickly. When plans change and inspections change, you have to be equipped to deal with it. We think with client, educate the client and plan for the future,” says van der Bie.
He adds: “We operate internationally. If our clients in the Netherlands, existing or new, have a project abroad we will follow them and this results in high quality.”
Much like the NDT division, van der Bie’s Pressure Equipment division is very active across the entire energy industry and further afield. The Netherlands alone presents many opportunities for Vinçotte to excel, as van der Bie explains.
“We work across the whole scene, not just gas. We work on refineries, chemical plants, power plants, food plants, and all of the plants which require by law inspection of pressure equipment.
“There are around 10,000 storage tanks in the Netherlands which require some sort of legal inspection and there is a lot of distribution and transporting going on from the harbours so there are many facilities that present hazards and hence, legislation. This is going to increase in the coming years and we are changing legislation right now.
“Transport lines are excluded from the PED, but there is a lot of legislation surrounding them; high pressure gas lines, oil lines - any lines with fluids require some sort of inspection and certification.”
With 16 locations around the world and experience operating across a range of industries, Vinçotte is definitely a leader in the TIC industry and set to make your reputation its responsibility.
YOUR REPUTATION IS MINE.
“Sometimes our clients are right on the edge of what is possible and that requires an understanding of the law in order to make sensible choices”
Fob Van Der Bie Manager Division - Pressure Equipment for the
Netherlands
Solar power has so much potential. We
have featured a number of companies
who have demonstrated the great things
that can be done with the sun’s rays. As
time goes by, it is becoming more and
more obvious that solar has so much to
offer but the challenge is making the most
of this valuable resource.
Industrial solar farms have popped
up all over the world and residential
and commercial solar installations
are now more popular than ever with
various governments offering subsidies
to installers and hosts of productive
solar panels but there still remains three
big problems when it comes to solar
generation on a large scale. These three
problems are space, availability of sunlight
and availability of photovoltaic panels.
However, there is a new trend
that seems to have an answer these
problems. That answer is floating solar
farms or mass expanses of solar panels
spread across a large floating area.
Systems like this can be utilised on lakes,
rivers, and potentially, seas.
The more you think about, the more
pAGe 80
Solving the three problems with solar power Editorial: Roland Douglas
The idea of floating solar installations is a relatively new one. There is only a handful of projects like this around the world but experts are saying that housing solar panels over water could solve three of the most common problems with conventional solar farms. Singapore and India are already looking into ideas that could help with this whole concept in the future…
it seems to make sense. Just like wind
turbines need lots of wind, solar panels
need uninterrupted access to sunlight
and in a city there are buildings, cranes,
bridges and all number of blockades
and then of course there is the space
requirements. For a commercial or
industrial solar park you need a vast
amount of space – the Ivanpah Solar
Electric Generating System in California
covers 3500 acres – and obviously this
amount of land is not readily available
and is expensive. Even if you could get
hold of this amount of land in a more rural
area, there still might be mountains or
forestry that could interrupt sunlight and
that’s before thinking about the planning
regulations and environmental concerns
that have to be considered before
installing such a large facility.
So surely solar parks in the middle of
the desert is the answer? But this throws
up the barrier of maintenance. How do
you effective manage a vast site that is
in the middle of a sweltering desert? The
logistics are often too difficult. So that
leaves water – no blockades, no space
restrictions and more than enough room
for large photovoltaic panels.
Examples of how well floating farms
can work have been witnessed in Japan,
at the 70MW Kagoshima Nanatsujima
Mega Solar Power Plant, developed
by Kyocera and its partners. The park
officially went on line on November 1st
2013 and was inaugurated on November
4th. Local utilities purchase the power
and local people are welcomed to the
site to view the 290,000 solar panels
that supply important clean energy to a
country that is looking for it more than
ever following the Fukushima disaster.
It has been reported recently that both
Singapore and India are both currently
planning the building of the world’s largest
floating solar farm, and of course this
makes a lot of sense considering their
power requirements and the difficulties
of laying down a huge farm where land is
scarce. Singapore as a whole is smaller
than New York and the whole country is
developed
so the majority
of solar installations
are on rooftops. The next,
and possibly only, other option is
on the inland water reservoirs. This has two
benefits already. The solar panels will shade
the water and prevent evaporation and
the water will cool the structure helping the
panels work more efficiently.
Experts have said the main challenges
in Singapore include the cost of solar
technology – it has to be low enough to
make the whole operation viable.
India is also planning a huge project
– said to be around 1.27 million square
meters of floating platform – in the
Kerala district. Local energy company
NHPC (National Hydroelectric Power
Corporation) is heading up the
development and SP Gon Choudhury,
chairman of the Renewable Energy
College commented: “There are large
stretches of water bodies in Kerala which
NHPC wants to harness for solar power.
This floating solar power technology
was developed by the Renewable Energy
College and has been implemented in the
city. The first plant — a pilot project
— is scheduled to be commissioned
in October this year. NHPC had
contacted us for offering technical
know-how and installation assistance
for their proposed 50-mw plant.
“Each station would require
around 3000 square feet of space
to generate 20 kilo watt of power.
There are many water bodies that
could be used for this.”
Floating solar farms, in principal,
seem like a good idea and the more
they catch on around the world, the
more they are sure to be improved
and updated until a tried and
tested model emerges for multiple
installations on a mass scale.
So this looks like a viable answer
to the three problems mentioned
above – that is until they get around
the installing these space-based
solar farms that have been talked
about as the next best thing!
fUtUre pOWer
© Airbus S.A.S. 2011
pAGe 81
In the oil and gas industry, and the
energy industry more widely, some of the
structures and pieces of equipment are
vast. It goes without saying that just small
parts of an oil rig weigh huge amounts and
cost huge amounts. Some of the vessels
used in support of the industry take
years to put together and are extremely
advanced; like mini floating cities, and they
are used for everything – transport of LNG,
shipping of oil, movement of people and
many other activities.
As we discussed back in June, Shell
is currently putting together its Prelude
FLNG facility; a project that could have
great impact on the energy industry. But
consider the scale of a project like this.
Standing on its end, the Prelude FLNG
facility will be taller than the Petronas
Towers in Kuala Lumpur. So, to put
together something just half the size of
this, you will need some extreme tools.
In South Korea, at its Okpo-dong
yard, Daewoo Shipbuilding and Marine
Engineering is testing and trialling a new
piece of equipment that has the potential
to change the way that engineers work on
these mega projects.
This new piece of equipment has got
sci-fi fans excited and some are even
calling it ‘the iron man suit’ for shipbuilders.
Essentially, it’s an exoskeleton that can
provide extra strength to an engineer and
this innovation is something which has
been developed over a number of years.
At Daewoo’s yards in South Korea,
robots undertake much of the day-to-day
heavy engineering but that could change
if pilots of the exoskeleton continue to run
successfully. Currently, the exoskeleton
‘suit’ can fit anyone between 160 and
185 cm tall and it is surprisingly lightweight
pAGe 82
Super strength from sci-fi exoskeleton apparatus Editorial: Roland Douglas
It seems that the future of the shipbuilding industry will be more automated than we originally thought. Daewoo Shipbuilding and Marine Engineering is currently testing and piloting prototypes of its latest exoskeleton lifting aid – surely a landmark breakthrough for the industry?
considering its capabilities – it only weighs
28kg and is made from carbon, aluminium
alloy and steel. In this, the early stages of
development, the suit has managed to
aid in lifting loads of up to 30kg and the
prototype has a three hour battery life.
In order to actually fit the suit, engineers
will first step into ‘foot pads’ and then
strap their thighs, waist and chest into
harnesses. This allows a good range of
movement of the body while taking the
strain of the weight. Electric motors and
hydraulic joints power the suit from the
back and so far, designers have said that it
has had a positive effect on people’s ability.
Importantly, and proving that this is not
just an expensive gimmick, the suit can
take advantage of special attachments
which make lifting even easier. For example,
frames that reach up from the back and
arch over the head, almost like a small
crane, can be added for specialist tasks.
Lead engineer on the Daewoo
exoskeleton project, Gilwhoan Chu
recently told New Scientist magazine that
designers had received positive feedback
from recent trials and had taken on board
the criticisms which included; the suit not
being able to move fast enough, not being
able to lift enough weight, not being safe
on slippery or sloped surfaces and twisting
movements being limited. “Our current
research target of the lifting capacity is
about 100kg,” he said.
Shipbuilding and marine engineering
is huge business. Not only in the energy
industry, but marine, defence, research
and transport industries all require
specialist services when it comes to their
vessels and their offshore capabilities.
Human error is no longer tolerated and
this is why automation has become the
norm in the world’s largest shipyards.
The world’s top three shipbuilding firms,
Daewoo, Hyundai Heavy Industries and
Samsung Heavy Industries are all located
in South Korea so this breakthrough with
exoskeleton technology could spread
easily when a more marketable product is
eventually developed.
And as the industry grows, so will the
need for more automation and Chu is
confident telling New Scientist: “We’ve
been developing and applying robots and
automation in shipbuilding for more than
a decade.”
If everything goes to plan, and its
currently looking like it will, then we
could see these exoskeleton suits in
action sooner than you might think and
the processes and timescales involved
in shipbuilding could be dramatically
improved. This will mean great things for
the energy industry with suppliers able to
be much more flexible and much more
instant in their response to requests and
contract arrangements.
However, Daewoo is not the only
company experimenting with exoskeleton
style robotics. There are many
organisations around the world that can
see the benefits and the Massachusetts
Institute of Technology (MIT) have created
robotic arms that lift heavy objects, grab
things out of the wearer’s reach and can
be used to hold objects steady. In this
case, the arms can operate independently
of the wearer, completely changing the
scope of what is possible from one
employee.
Whatever the future holds, it looks
certain that some form of exoskeleton
suit will be included in order to improve
efficiency and strength – both vital in the
energy industry and further afield
GAdGet bOx
© Airbus S.A.S. 2011
pAGe 83
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