THE BUSINESS MAGAZINE FOR ENERGY LEADERS
EMEA
ENERGYFOCUS
www.emea-energy.net
February 2017
LAKE TURKANA WIND POWER PROJECT:
A Huge Renewable
Power Boost
ALSO IN THIS ISSUE:
DONG / Borouge / BP / Total
EDITOR’S LETTER EMEA
ENERGYFOCUS Joe Forshaw EDITOR joe@emea-energy.net Hal Hutchison SALES MANAGER hal@emea-energy.net Sam Hendricks SENIOR PROJECT MANAGER sam@emea-energy.net Shaun Cousins PROJECT MANAGER shaun@emea-energy.net Shannon James PROJECT MANAGER shannon@emea-energy.net Peter Littleboy PROJECT MANAGER peter@emea-energy.net Emma Smith SALES ADMINISTRATOR emma@emea-energy.net Harvey Tarlton SENIOR DESIGNER harvey@emea-energy.net
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So far, it seems like 2017 has started well for all in the energy business. Against a backdrop of volatile oil prices, global economic uncertainty, and a transitioning market place - with the dominant fuel being called into question – the big players have managed to post positive results. BP announced investments into a number of new projects, Total announced increases in net revenue against 2015, the renewable sector is gaining unstoppable momentum thanks to plummeting production costs, and nuclear has seen big projects announced or nearing completion in Southern Africa and the Middle East. Following last month’s solar focus, this month we look to oil for inspiration and learn more about two impressive projects in the UK and Norwegian North Sea. Clair Ridge from BP and partners, and Martin Linge from Total and partners are both established fields that have expanded thanks to technical excellence and perseverance. Even after many experts said that these areas were too deep or had small or no deposits, the expertise and precision of the people working on the fields has resulted in all partners welcoming extended life and turnover thanks to new deposits being found. We also look at how renewable energy is making its mark in Africa, specifically wind energy and specifically in Kenya where the Lake Turkana Wind Power project begins to come to life as one of the continents larges wind projects. This exciting and innovative project is an example of how expertise from across the world can combine to bring about extremely positive results. With such a positive start to the year, we’re expecting big things from 2017 so please get in touch and tell us about the success that you’re having. We’re online @EmeaEnergy
Published by CMB Multimedia Chris Bolderstone – General Manager E. chris@cmb-multimedia.com Sackville Place, 44-48 Magdalen Street, Norwich, NR3 1JU T. +44 (0) 20 8123 7859 E. info@cmb-multimedia.com www.cmb-multimedia.com CMB Multimedia 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. © CMB Multimedia Ltd 2017
Joe Forshaw EDITOR
GET IN TOUCH +44 (0) 20 8123 7859 joe@emea-energy.net www.emea-energy.net
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06/NEWS: The Month that was... A round up of some of the latest news stories in the industry.
46/EXHIBITION CALENDAR: Key Upcoming Events Across the Industry Our regular update to help you keep track of important events and exhibitions taking place across the industry.
10/LAKE TURKANA WIND POWER PROJECT: On Course for A Huge Renewable Power Boost Representing the single largest private investment in Kenya’s history, the Lake Turkana Wind Power Project (LTWP) is a wind farm covering some 40,000 acres (162 km²) located in Loiyangalani District, Marsabit County. It is set to provide 310MW of reliable, low cost wind power to Kenya’s national grid.
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CONTENTS
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22/
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16/BOROUGE: Top Gold Award for Borouge Operating in one of the most exciting manufacturing industries in the Middle East, Borouge is continually improving and looking for opportunities to grow. Recently awarded a gold grade SKEA award, the company has started 2017 with excitement and ambition.
22/MARTIN LINGE: Hidden Treasures in Norway’s Oil and Gas Reserves The discovery of the Martin Linge oil and gas field in the North Sea, 42 kilometres west of Oseberg, dates back to 1975. In 2010, however, a new well successfully targeted both its oil and gas reservoirs, leading to the development of the field by Total and its licensed partners, Petoro and Statoil.
28/CLAIR RIDGE: Huge Reserves in Field Phase 2 The Clair field resides 75 km west of the Shetland Islands in 150m of water, and extends over an area of 220 km². Clair Ridge is the second phase of its development, with its estimated eight billion barrels of oil in place making it the largest undeveloped hydrocarbon resource on the UK Continental Shelf.
34/BURBO BANK EXTENSION: Huge Leap for UK Clean Power Goals The Burbo Bank Extension offshore wind farm development consists of an area of 40 km² and a capacity of up to 258 MW, generating enough energy to meet the average needs of up to 230,000 homes.
40/TANESCO: Lighting Up Lives In A New Era Tanzania Electric Supply Company Limited (TANESCO) owns the vast majority of the electricity generating, transmitting and distributing facilities across the Tanzania Mainland. It was one of two private enterprises to be established at Dar es Salaam in 1931, and today seeks to be an efficient and commercially focused utility supporting the development of Tanzania.
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STRONG 2016 PERFORMANCE FOR BP “2016 was the year we made significant strides in creating a stronger platform for growth” said BP chief executive, Bob Dudley. Commenting on the company’s 2016 end of year results and 4th quarter financials, the chief exec was particularly pleased with the number of project start-ups that came online and the number of contracts that have been inked for the future. “We launched six major project start-ups – from Algeria to the Gulf of Mexico – and made final investment decisions on a further five major projects. And we see exciting opportunities ahead,” he said. “We have delivered solid results in tough conditions – and are well prepared for any volatility in oil pricing. We have adapted by cutting our controllable cash costs by $7 billion from 2014 – a full year earlier than planned. Continued tight discipline on costs remains essential. Everything we have done during the year has made us a more resilient and competitive company.” The headline reported result for the full year was a profit of $115 million, compared with the headline loss of $6.5 billion reported for 2015. The 2016 headline result included a total of $4 billion non-operating charges taken through the year associated with resolution of the remaining legacy of the 2010 oil spill. The headline profit excluding these legacy charges was $4.1 billion for 2016, compared with $2.0 billion for 2015. “We start this year with considerable momentum – and a sense of disciplined ambition. We have laid the foundations for BP to be back to growth,” Dudley commented.
BOD DUDLEY © BP PLC
SUCCESS FOR EXXONMOBIL IN GUYANA ExxonMobil recently announced positive results from its Payara-1 well offshore Guyana. Payara is ExxonMobil’s second oil discovery on the Stabroek Block and was drilled in a new reservoir. The Payara-1 well targeted similar aged reservoirs that were proven successful at the company’s Liza discovery. “This important discovery further establishes the area as a significant exploration province,” said Steve Greenlee, president of ExxonMobil Exploration Company. “We look forward to working with the government and our co-venturers to continue evaluating broader exploration potential on the block and the greater Liza area.”
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In addition to the Payara discovery, appraisal drilling at Liza-3 has identified an additional high quality, deeper reservoir directly below the Liza field, which is estimated to contain between 100-150 million oil equivalent barrels. This additional resource is currently being evaluated for development in conjunction with the world-class Liza discovery. “These latest exploration successes are examples of ExxonMobil’s technological capabilities in ultra-deepwater environments, which will enable effective development of the resource for the benefit of the people of Guyana and our shareholders,” Greenlee said.
NEWS ROUNDUP GM AND HONDA TO ESTABLISH INDUSTRY-FIRST JOINT FUEL CELL SYSTEM MANUFACTURING OPERATION IN USA
© PHOTO BY JOHN F. MARTIN FOR GENERAL MOTORS AND HONDA General Motors Co. and Honda recently announced the establishment of the auto industry’s first manufacturing joint venture to mass produce an advanced hydrogen fuel cell system that will be used in future products from each company. Fuel Cell System Manufacturing, LLC will operate within GM’s existing battery pack manufacturing facility site in Brownstown, Michigan, south of Detroit. Mass production of fuel cell systems is expected to begin around 2020 and create nearly 100 new jobs. The companies are making equal investments totalling $85 million in the joint venture. Honda and GM have been working together through a master collaboration agreement announced in July 2013. It established the co-development arrangement for a next-generation fuel cell system and hydrogen storage technologies. The companies integrated their development teams and shared hydrogen fuel cell intellectual property to create a more affordable commercial solution for fuel cell and hydrogen storage systems. “Over the past three years, engineers from Honda and GM have been working as one team with each company providing know-how from its unique expertise to create a compact and low-cost next-generation fuel cell system,” said Toshiaki Mikoshiba, chief operating officer of the North American Region for Honda Motor Co., Ltd. and president & CEO of American Honda Co., Inc. and Honda North America, Inc. “This foundation of outstanding teamwork will now take us to the stage of joint mass production of a fuel cell system that will help each company create new value for our customers in fuel cell vehicles of the future.” Mark Reuss, GM executive vice president, Global Product Development, Purchasing and Supply Chain said: “The combination of two leaders in fuel cell innovation is an exciting development in bringing fuel cells closer to the mainstream of propulsion applications. The eventual deployment of this technology in passenger vehicles will create more differentiated and environmentally friendly transportation options for consumers.” Fuel cell technology addresses many of the major challenges facing automobiles today: petroleum dependency, emissions, efficiency, range and refueling times. Fuel cell vehicles can operate on hydrogen made from renewable sources such as wind and biomass. Water vapor is the only emission from fuel cell vehicles. GM is currently demonstrating the capability of fuel cells across a range of land, sea and air applications. The company has accumulated millions of miles of real-world driving in fuel cell vehicles. Honda began delivery of its all-new Clarity Fuel Cell vehicle to U.S. customers in December 2016 following a spring 2016 launch in Japan. The Clarity Fuel Cell received the best driving range rating from the EPA of any electric vehicle without a combustion engine with a range rating of 366 miles and fuel economy rating of 68 miles per gallon of gasoline-equivalent combined.
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SIEMENS 8-MEGAWATT WIND TURBINE INSTALLATION COMPLETE © SIEMENS
Siemens Wind Power has installed the latest version of its offshore direct drive wind turbine at the national test center in Østerild, Denmark – according to plan. The SWT-8.0-154 is rated at 8 megawatts (MW ) and equipped with the proven 154-meter rotor. The prototype was certified by DNV GL in January, confirming all relevant safety features for test operation. The new offshore turbine was installed on a steel tower at a hub height of 120 meters. The prototype will be used for both mechanical and electrical testing. The final type certificate is expected for 2018. “The installation of the SWT-8.0-154 prototype in Østerild is an important milestone in the success story of our offshore direct drive wind turbines,” said Michael Hannibal, CEO Offshore at Siemens Wind Power. “The evolution based on our platform strategy demonstrates that innovation to lower the cost of wind energy can work without compromising the proven reliability of a technically mature product.” Currently, approximately 150 Siemens offshore direct drive wind turbines have been handed over to customers. More than 600 units of Siemens’ offshore direct drive wind turbines have been sold since the launch of the large gearless turbine in 2011. The innovative product platform incorporates the unique technical experience from more than 2,300.
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NEWS ROUNDUP UK TO HARNESS WIND ENERGY THROUGH LAMP POSTS UK IT company, NVT, has joined forces with a green technology firm, Own Energy Solutions, to develop wind turbines which attach to lamp-posts. The partnership is set to create 25 jobs over the next 12 months which it hopes will rise to about 300 within three years. Using small turbines and inverters, clean energy could be fed directly into the National Grid. According to NVT, each suitable lamp-post conversion would save half a ton of carbon being released into the atmosphere. Stephen Park Brown, managing director of NVT Group, said: “We have a great record of working with winning teams and this new venture has every prospect of eclipsing our recent commissions. We believe that Own Energy can become a significant player in the renewables market both in the UK and beyond.” David Gordon, chief executive of Own Energy, said: “There are around 10 million lamp-posts in the UK and upwards of 20% of these are suitable for conversion which makes this a very scalable business opportunity with huge export potential. We have already had positive preliminary discussions with UK public and private bodies and have had indications of interest from the USA, Canada, Mexico, Ireland and South Africa. We believe this business has the potential to achieve an annual UK turnover of over £400m within five years.”
© NVT GROUP
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LAKE TURKANA WIND POWER PROJECT
On Course for A Huge Renewable
Power Boost
PRODUCTION: Timothy Reeder
Representing the single largest private investment in Kenya’s history, the Lake Turkana Wind Power Project (LTWP) is a wind farm covering some 40,000 acres (162 km²) located in Loiyangalani District, Marsabit County. It is set to provide 310MW of reliable, low cost wind power to Kenya’s national grid.
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ENERGY FOCUS: WIND
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When completed, the Lake Turkana wind farm will comprise 365 wind turbines each with a capacity of 850 kW. It will also be kitted out with the associated overhead electric grid collection system as well as a high voltage substation, with the latter necessary to provide its connection to the national grid. Altogether, the LTWP will aim to provide 310 MW of wind power to Kenya’s national grid, equivalent to approximately 18% of the country’s current installed electricity generating capacity and sufficient to power more than two million households. Kenya Electricity Generating Co produces the country’s only wind power at present, but its capacity is just 25.5 MW, whereas the Lake Turkana
project will provide 310 MW in total, adding to Kenya’s total current power generation capacity of about 2,341 MW. The project will play a significant role in Kenya’s overall aim of generating 2,036 MW of wind power, or 9% of the country’s total capacity, by 2030, with the power produced to be bought at a fixed price by Kenya Power (KPLC) over a 20-year period. Kenya is increasing electricity generation and investing in expanding and reinforcing its grid to keep up with the growing demand for power it is experiencing, and to reduce frequent blackouts. The east African nation relies heavily at the moment on renewables such as geothermal and hydro power to fulfil its electricity supply.
The wind farm, which will be the biggest in sub-Saharan Africa, broke ground on the east side of Kenya’s glistening Lake Turkana in mid-2015, and is on course for completion later this year. The joint-venture project is the product of nearly $1 billion of private-and public-sector investment, and embodies exactly the type of megainfrastructure stated by multiple international organisations as essential for Africa, if the continent wishes to be able to fully realise its vast economic potential. SubSaharan Africa’s economies have recorded annual growth averaging 5% in the past decade, according to the World Bank, and a ramping up of energy production would only serve to boost growth even further. Since its commissioning, the
//SAFER, SMARTER, GREENER DNV GL has partnered with Kenya Electricity Transmission Company Limited (KETRACO) on the 400 kV overhead transmission line and two associated substations for grid connection of the Lake Turkana Wind Power Project in Kenya. DNV GL, the world’s largest resource of independent energy experts, delivers testing and advisory services to the energy value chain including renewables and energy efficiency. The company operates in more than 100 countries worldwide. Selected as lead advisor on the transmission line, DNV GL designed the extension of the national grid from Suswa (80km Northwest of Nairobi) to the wind farm site (Southeast of Lake Turkana). As one of Africa’s largest wind farms, the Lake Turkana Wind Power (LTWP) project is important for the economic development of the country and brings a reliable 310MW source of power from the north down to the country’s capital. With 365 high-spec 850 kW turbines, the project produces power for the Kenya Power & Lighting Company (KPLC). At Ksh70 billion, this project forms a key part of the governments Kenya Vision 2030, a detailed development programme that sets out plans for economic, social and political improvement. “We have provided KETRACO with in-depth technical expertise and critical insights,” says Frederik Groeman, Project Leader Power Systems Planning at DNV GL. “In addition, we developed the specifications for the project, and we have been supervising engineering and construction work. We will continue to support the project throughout the construction phase up to completion.” DNV GL also provided advice on the construction of a large power transmission substation at Suswa and a terminal substation at Loiyangalani. At Suswa, connections will also be made to the Olkaria geothermal generation power stations, substations in Ngong and Isinya and to Ethiopia. The latter developments are currently in their early stages. DNV GL has completed successful projects all over Africa and is active in markets including Lesotho, Mozambique, Namibia, Zambia, South Africa, Ethiopia, Sudan, Tanzania, Egypt, Morocco, Tunisia, Algeria, Ghana, Gambia, Nigeria and Cape Verde. www.dnvgl.com
@DNVGL_Renewable
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LAKE TURKANA WIND POWER PROJECT
project has achieved a number of significant milestones in its journey toward full delivery of electricity. March last year brought with it the first delivery of Vestas turbines for the 310 MW project, arriving in the Port of Mombasa. These were the first of 365 structures which will be transported by road over approximately 1200 km to the wind farm site, located in Sarima village in Loiyangalani Division in Marsabit County. Phylip Leferink, Lake Turkana Wind Power General Manager, said at the time of delivery: “The foundations for the first 30 turbines are ready, as soon as the turbines arrive in Sarima; the task at hand will be to hoist the turbines. For once we will be working against the winds that we intend to harness, but as soon as the turbines
are up we are another step closer to producing power. “The completion of the 207 KM all weather road from Laisamis to Sarima village will highly reduce the risk of any delays in transit and we are optimistic that by the end of March, all the offloaded turbines while be on site ready for hoisting,” he went on. The Marsabit based wind firm, which has a 20-year contract to sell electricity at Ksh8.6 per kilowatt/hour (kWh), sits on 40,000 acres of land in an area which benefits from steady winds throughout the year. Since its very first steps, Lake Turkana Wind Power has been a community centred project, keen to ensure that those surrounding it benefit from the development. The establishment of the Winds of Change Foundation (WoC) is
emblematic of this commitment and sees LTWP willing to invest a significant portion of its operating revenues to improve the livelihoods of the communities in the project area. It is forecast that, once operational, through WoC the wind farm will contribute in the region of 10 million euros over its predicted 20 year operational lifetime. Winds of Change implements projects primarily in the Laisamis constituency in Marsabit County, with certain key focus areas such as enhancing employability through both primary and secondary education support and vocational training. Also in its sights is enhancing access to health services by supporting health education and facilities, while it will look too to improve the provision of water,
KNOWING RENEWABLES &
HOW TO INTEGRATE INTO THE GRID Increasing and integrating renewable energy within the grid means moving beyond historic limitations and assumptions. To maintain high grid reliability you need an optimized integration solution. A proactive approach requires detailed modeling and analysis of the grid and renewable technologies. As the world’s largest resource of energy experts, we are uniquely qualified to be your partner in a successful transition to a renewable energy future.
Learn more at dnvgl.com/energy
SAFER, SMARTER, GREENER
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ENERGY FOCUS: WIND
to provide a sustainable impact and improve livelihoods. In the longer term, the focus will shift to incorporate more livelihoods activities. In this vain of social responsibility, thanks to renovations carried out by Winds of Change Foundation, together with Vestas Wind Systems, residents of Korr Location in Laisamis Constituency will no longer be forced to travel long distances to access medical facilities. In April last year, the Buriaramia Dispensary was officially handed over to the its community following a full scale refurbishment, which included installation of a solar power system, a refrigerator for vaccines, renovation of medicine stores, provision of equipment for the wards and the installation of an
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additional water storage system. Speaking during the handover ceremony, Leferink commented: “The refurbished health centre is the result of a long relationship established between the project and the communities. The government has done a lot in ensuring that there is sufficient supply of medicine and personnel in the clinic, however it was hectic for the resident nurse who has to make a daily trip to a clinic 5KM away in order to access the refrigerated medication. Basically, what we did as LTWP was to collaborate with the local leaders and other players to enhance the health service delivery for this particular community.” More recently in the milestones for Lake Turkana Wind Power, in October it was reported that 155
of the scheduled 365 turbines had been installed in the preceding six months. According to the company, the Vestas turbines were already being tested for power generation, with completion of the installation process of the full wind farm expected by June 2017. This will be met through strictly sticking to its current rate of installing one turbine each day. “By managing to hoist these turbines within the stipulated time, the team has not only achieved a technological feat, but also navigated through a logistical challenge of getting all the turbines here in Loiyangalani, which is 1200 KM from the port of Mombasa. This is a clear demonstration that we are on course to launching the largest wind farm in Africa on time,” commented Leferink.
LAKE TURKANA WIND POWER PROJECT
Assembly of the turbines began back in March 2016, after the civil works on the foundations of the first batch of turbines had been completed. The various parts, including the blades, were transported by road to the site from the port of Mombasa. “We are impressed with the progress that we have made so far; we are working with our project partners to ensure that we complete this wind farm within the stipulated time. This will ensure that we will soon be able to play a key role in Kenya’s energy supply and make a significant contribution towards the country’s economic growth,” Leferink stated. The turbine technology is of Danish origin but the production of the turbines, blades and towers was performed in the Vestas’s China manufacturing facilities. Such dedicated and unwavering efforts see the Lake Turkana Wind Power project on course to be fully connected to the national electricity grid and producing power by the end of June. Carlo Van Wageningen, founder of the project, commented that most of its 365 wind turbines had now been erected and the last batch of 30 was due to arrive into Mombasa early next month. “As of last Friday, we had 299 turbines standing and ready,” was his impressive update. “Of those, we have 120 turbines fully connected to the substation and therefore ready to deliver 110 MW of power,” Van Wageningen told Reuters. “We expect all the turbines to be erected by mid-March, and by mid-May latest, all of them will be fully connected to the substation, in readiness for power delivery.”
LAKE TURKANA WIND POWER PROJECT +254 (0)20 221 3493 info@ltwp.co.ke www.ltwp.co.ke
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BOROUGE
Top Gold Award for
Borouge
PRODUCTION: David Napier
Operating in one of the most exciting manufacturing industries in the Middle East, Borouge is continually improving and looking for opportunities to grow. Recently awarded a gold grade SKEA award, the company has started 2017 with excitement and ambition.
ENERGY FOCUS: MANUFACTURING
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One of the world’s leading oil and gas companies has been celebrating a partnership that has brought significant success to its portfolio in recent years. In 1998, Abu Dhabi National Oil Company (ADNOC) teamed with Borealis, an Austrian chemical and plastics innovator, and created the company Borouge. Borouge’s focus in on plastics and, headquartered in the United Arab Emirates with its marketing and sales head office in Singapore, it prides itself on providing ‘innovative, sustainable and value creating plastics solutions for infrastructure (pipe systems, and power and communication cables), automotive and advanced packaging applications that address
global challenges such as climate change, food protection, access to fresh water, energy conservation, healthcare and waste management’. After establishing itself in the Middle East, Borouge began production based on Borealis’ unique Borstar® bimodal technology at a state-of-the-art polyethylene facility in 2001. The first products were shipped in 2002 and the company also gained ISO 9001 certification. In 2005, capacity reached 600,000 tonnes. Over the years, Borouge has been aggressive with its growth strategy and has attacked the market through different channels to achieve expansion. After many impressive developments, the company increased the annual capacity
of its Abu Dhabi plant to two million tonnes in 2010, also adding Borstar® enhanced polypropylene to its product portfolio. In 2011, a new 50,000 tonnes per year compounding plant was started in Shanghai and then, in 2014, Borouge started-up its Borouge 3 expansion plant in Ruwais, increasing the total production capacity to 4.5 million tonnes of polyolefins, making Borouge the biggest integrated polyolefins complex in the world. 2015 saw the company start its LDPE (Lowdensity polyethylene) unit at the Borouge plant in Ruwais in the north-western corner of the UAE. Today, Borouge is a leading provider of innovative, value creating plastics solutions and
//NESTE JACOBS’ NAPCON SOLUTIONS SAVE ENERGY AND COSTS At Neste Jacobs we have been experts in oil refining and chemical industry energy efficiency since the early-1980’s. We were among the first who used pinch-technology in the design of new process units as well as in optimisation of old ones. Ever since, we have added considerable value for our customers in the form of improved energy efficiency. In 1995 we performed a total site analysis taking traditional pinch analysis even further and in 1999 we perfected the analysis method to become comprehensive in energy optimisation. Our combined approach of high-level process know-how and modelling skills, pinch-technology, equipment expertise and automation solutions, guarantee the most feasible solution with short pay-back, or even without investment. We are now Europe’s leading energy efficiency provider within the hydrocarbon industry and offer the entire path to improved energy efficiency from prestudy to improvement implementation and energy savings verification. We are very proud of our continuous cooperation with the esteemed ADNOC group of companies i.e. Borouge, TAKREER, Gasco and ADMA-OPCO, for whom we have delivered several projects with NAPCON solutions for improved energy and cost efficiency and operational optimisation. We provide our customers with a comprehensive service and product offering including consulting services, NAPCON dynamic real-time optimisation from process unit optimisation to plant wide dynamic optimisation, real-time information solutions such as energy and emission monitoring as well as product tracking and training solutions with high fidelity operator training simulators. In the Gulf region we offer also EP and EPCM-services to our customers to cater a wide range of projects in the process industry. Find more information on Neste Jacobs and NAPCON solutions at: www.nestejacobs.com and www.napconsuite.com
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ENERGY FOCUS: MANUFACTURING
is expanding its commercial and logistics network in the Middle East and Asia and investing in its Innovation Centre in Abu Dhabi and Application Centre in Shanghai. “Focused on our company mission, Value Creation through Innovation, we ensure that our customers throughout the value chain, around the world, can rely on differentiated products and reliability of supply,” the company states. WINNING GOLD Finishing 2016 on a high, Borouge was honoured in December when it was recognised for excellence, receiving the highly-acclaimed Gold category during the 15th cycle of the Sheikh Khalifa Excellence Award (SKEA) ceremony held under the patronage of Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces. At the awards ceremony, held at the Emirates Palace in Abu Dhabi, ADNOC and Borouge executives joined their industry peers to learn more about the companies awarded for excellence. The Sheikh Khalifa Excellence Award was launched by the Abu Dhabi Chamber of Commerce & Industry (ADCCI) in 1999 as a tool to drive continuous improvement in organisations, aiming to enhance the competitiveness of the business sector in Abu Dhabi and the UAE. The award was handed over by Lt. General Sheikh Saif bin Zayed Al Nahyan, Deputy Prime Minister and Minister of the Interior and follows a period through which an expert team of volunteer SKEA assessors have scrutinised Borouge’s credentials for the award. In recent months and years, Borouge has started several initiatives aimed at accelerating performance and quality standards including rewards and recognition for innovation, an employee suggestion scheme, a continuous improvement approach deployed for effective
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project management and problem solving, and many more. Receiving the award, Ahmed Omar Abdulla CEO Borouge said: “We are proud to receive this prestigious award which reflects our commitment to excellence in everything we do. The award demonstrates Borouge’s focus on realising our mission of ‘value creation though people and innovation’ and underlines our position as a leading, regional petrochemicals producer with global reach. “I would like to thank our owners, ADNOC and Borealis, for their continuous support, and extend my gratitude and appreciation to my colleagues at Borouge who have invested their time and efforts to ensure we win,” he added Obaid Al Dhaheri, SVP Corporate Affairs at Borouge commented: “We are impressed with the comprehensive, cross disciplinary approach of the Sheikh Khalifa Excellence Award. We value the feedback that we will receive from the assessors and we will use it to further enhance our processes and ensure that our business continues to positively contribute to the industry, to the UAE economy and to greater society.” QUALITY ENERGY MANAGEMENT SYSTEM Receiving recognition earlier in 2016, Borouge’s 1 & 2 plants in Ruwais were certified by RINA Services, resulting in ISO 50001:2011 certification. According to Borouge, the certification specifies requirements for an Energy Management System and enables the organisation to have a systematic approach to continuous improvement of its energy performance, greater energy efficiency and sustainability. Certification Manager for Middle East, RINA Services, Santosh Rodrigues said: “The Certification
audit at Borouge was unique considering the fact that close to 50 significant energy users were identified. This represents Borouge’s energy efficiency focus to more than half of its energy consumption.” Abdulaziz Alhajri, former CEO of Borouge and now ADNOC’s refining and petrochemical Director said in February: “Implementing Energy Management System was challenging, but highly inspiring. To embrace the energy efficient culture in its right spirit, we decided to develop the system internally utilising our own resources and capitalising on the knowledge we acquired in the past while implementing other management systems in the company. “Identifying key opportunities to reduce energy consumption per tonne of production and thereby increasing our energy efficiency has been a major win for Borouge. Adopting a phased approach, we decided that we should implement an Energy Management System in our petrochemical complex first and further roll it out to other operating companies. As we move ahead, we will continue to explore avenues to improve our energy performance.” Borouge has been working with RINA Services for a number of years to audit and certify the company’s quality, environment and energy management systems to ISO 9001, ISO/TS 16949, ISO 14001 and ISO 50001 standards. RINA Services certifies Borouge’s head offices in Abu Dhabi and Singapore, the company’s petrochemicals manufacturing facility in Ruwais, the Compounding Manufacturing Plant in Shanghai and a network of offices across the Asia Pacific region. REAPING REWARDS Recent successes, including the ramping up of capacity at facilities in Ruwais, have left the Borouge shareholders feeling content. Mark
BOROUGE
Garrett, CEO of Borealis said that despite China’s industrial slowdown, demand for polymers to manufacture wires and cables – directed to the transportation and construction industries – remains healthy in the country and as a result, Borouge facilities are now operation at full capacity. In an interview with ICIS, he said: “At Borouge, all plants are operating well, running at full capacity and feedstock is available.” He also stated that the company will continue to look for international market expansion. One market where this is currently being realised is Pakistan. Having previously been a minor player in Pakistan (which imports 100% of its polymers), Borouge has now picked up significant market share thanks to a quality product, competitive price and fast delivery and turnaround times. for example, it can take 45 days for product to arrive from Saudi Arabia, but less than half that from the UAE. As one of Pakistan’s top five imports and with demand expected to continue growing by around 15%, this is a market that brings significant
opportunities for Borouge. “We have the right people, facilities, knowhow and innovation capabilities to contribute significantly to the growing demand for quality plastics across the Middle East, Africa and Asia, and increase our contribution to the UAE economy, now and in the future,” Borouge’s Regional Senior Vice President of Exports, Hazeem Al Suwaidi told The National. One thing for Borouge, and its industry peers, to consider going forward – the three major players in the Middle East market have all completed or are working on production and output upgrades which could lead to an oversupply in the market if Chinese demand doesn’t improve. Borouge, Sadara Chemical Company and Oman Oil Refineries and Petroleum Industries Company will all be looking for additional markets to bolster demand should China reduce its reliance on the Middle East. At a recent industry trade show, talk of opening up Africa was high on the agenda. “You can’t ignore the strength of markets in Africa,” said Martin Wiesweg, the Senior Director of Chemicals at IHS Markit. “It may not be
attractive today, but it will be attractive tomorrow.” This is a hugely important sector for the Middle East and the growth of companies like Borouge is only a positive thing, bringing employment and economic prosperity. According to the Gulf Petrochemicals and Chemicals Association, the industry produces around $108 billion worth of products a year and is the second biggest manufacturing sector in the region. Currently the company employs some 3000 people, of 40 nationalities, across 50 different countries – as long as it continues to adapt to markets and realise success in the way that it has to date, it should continue to achieve growth that the country can be proud of.
BOROUGE +971 2 7080000 info@borouge.com www.borouge.com
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© STATOIL
MARTIN LINGE OIL FIELD
Hidden Treasures in Norway’s
Oil and Gas Reserves PRODUCTION: Timothy Reeder
The discovery of the Martin Linge oil and gas field in the North Sea, 42 kilometres west of Oseberg, dates back to 1975. In 2010, however, a new well successfully targeted both its oil and gas reservoirs, leading to the development of the field by Total and its licensed partners, Petoro and Statoil.
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ENERGY FOCUS: OIL & GAS
//
Following the discovery of the reservoir close to the UK maritime border, at a water depth of 115 metres, Martin Linge was originally dubbed Hild. The Martin Linge gas field was later named after the Norwegian actor who famously joined the Resistance during World War II, before being killed in December 1941 during a British Armysupported raid against German soldiers in Måløy, as a tribute to his heroism. Work on the original site took off in earnest in 1978, when deeper and more complex gas and condensate reservoirs continued to be discovered below the oil reservoir; these
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endeavours were in turn backed up by extensive 3D seismic surveys. New wells drilled in the following years confirmed that this was a complex, high-pressure area, consisting of an oil reservoir at 2000 metres depth and a sizeable gas reservoir at 4000 metres. The most notable point of these years of forays came in 2010, when a newly drilled well turned up good connectivity in the high-pressure gas formations. This knowledge, combined with innovation and the use of advanced technology, made it possible to develop Martin Linge, a field with estimated recoverable reserves at around 190 million
barrels of oil equivalent. The natural gas discovery was made in a part of the North Sea that had previously been adjudged to have slim chances of containing reserves, in a marked contrast to the projected 80,000 barrels per day production capacity of the Martin Linge field. “The Martin Linge field was discovered as early as 1978,” explained Minister of Petroleum and Energy, Ola Borten Moe at the announcement of the field’s development plan in 2012. “It is gratifying that the field has now matured to enable profitable development. The industry must be able to mature resources like this if we are to keep production levels
MARTIN LINGE OIL FIELD
up in coming years.” Gas from the field will be exported via the UK pipeline system, while the oil will be processed and stored on a storage ship. “The plans for the Martin Linge field show that power from land can be appropriate for new, independent developments. With this development, CO2 emissions from the Norwegian shelf will also be lower than they otherwise would have been,” Borten Moe concluded. In 2014, the first phase of the development process began with the installation of the jacket, comprising eight legs sited in a water depth of 115 metres and totaling 15,000 tons of steel and 5,000 tons of piles. The next step
//THE ONSHORE POWER SUPPLY WILL IMPROVE THE WORKING ENVIRONMENT FOR OUR OFFSHORE EMPLOYEES// involved getting the jack up in its rightful place, in order to begin drilling. Initially, 11 wells were slated to be drilled, with their combination of both vertical and horizontal ensuring that the oil and gas resources would be effectively extracted. 21 drilling slots are available in total, however, meaning that there remains scope for this number to be added to as time and knowledge of the
site and its resources progresses. The completion of the drilling process then paved the way for the installation of the 24 inch gas export pipeline, which ties into the FUKA UK pipeline network made up of the Frigg UK Pipeline and the Frigg UK Terminal processing facilities at the St Fergus Gas Terminal. With all subsea equipment covered by protective structures, in 2015 it came time to install among
© NORSK PETROLEUM
www.emea-energy.net / 25
ENERGY FOCUS: OIL & GAS
other features the world’s longest subsea high voltage AC cable, laid from Kollsnes near Bergen, at a maximum depth of 358 metres. The power and optical cables from shore joined this, as well as back up optical fibre cable installed from Huldra. Keeping all of these in place are some 135,000 cubic metres of rocks, equating to 400,000 tons. The oil, water and condensates will be processed and stored on a dedicated storage vessel, where water is also separated for reinjection and oil will be exported via shuttle tankers. In order to reduce the carbon footprint of the Norwegian shelf, Total has decided to power Martin Linge offshore facilities from shore from Kollsnes, a key initiative from Total in its efforts to minimize the environmental footprint of Martin Linde as part of its ongoing concern for sustainable development. The Martin Linge offshore power needs will therefore be served from the Norwegian mainland electrical grid via the new 170 kilometres subsea cable, the world’s longest alternating current power line from shore to an offshore platform. This technical solution is also line with the Norwegian authorities’ longstanding objective to reduce CO2 emissions from offshore activities. At Kollsnes in western Norway a new onshore facility is ready to supply the Martin Linge field with power from the onshore grid, primarily hydro power which will be transformed from 300 kV to 100 kV and transmitted to the platform. “We make this possible through the world’s longest subsea high voltage AC cable,” explains Kollsnes Package Manager Tore Andre Orvik. “The 163 kilometre long cable is a technological breakthrough. Such power transmission requires security in the cable design and
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//THE 163 KILOMETRE LONG CABLE IS A TECHNOLOGICAL BREAKTHROUGH// an onshore sub-station that can provide a stable power supply to the platform, and at the same time ensure no negative impact towards the overlaying onshore grid.” The power regularity on the platform is expected to be above 98%, with other advantages including reduced maintenance on rotating equipment, less noise and less vibration on the platform. “The onshore power supply will improve the working environment for our offshore employees. On the personal level, it is also very motivating and meaningful to be part of a development that will reduce local CO2 emissions to a great extent compared to the use of gas turbines,” says Orvik. Martin Linge will be the first Total operated offshore oil and gas field fully electrified from shore, as Orvik concludes: “Norwegian authorities expect all operators to evaluate the possibility to develop new oil and gas fields on the Norwegian Continental Shelf with power from shore. For us it turned out to be the best solution, and it is great to be part of a development which is in line with expectations and have so many extra benefits.” The optic fibre links also incorporated into the subsea cable will allow the offshore facilities to be remotely monitored and controlled from Total’s operation centre in Stavanger, by relaying all of the platform’s data. Martin Linge is also equipped with two control rooms, one offshore and one onshore, which keeps its employees safer as a vastly smaller team can perform all the necessary offshore operations; only 19 team members are needed to carry out maintenance and upkeep on the
facilities at any given time. It is the use of such innovative techniques that continues to set this project apart from others of its kind. Total has been leading oil and gas production in the Martin Linge field since 2012, leading the way on a new method to design safer and more environmentally friendly platforms. By eliminating the need to use offshore generators, for example, the cable serves to reduce the site’s CO2 emissions by two million metric tons. It was this kind of pioneering technique that again proved invaluable at the turn of 2016, when it came to the piling of the site’s 12 FSL anchors and the installation of its mooring chains and STL buoy. The notoriously inclement weather conditions of the area meant that advanced technological solutions and thorough planning were imperative to ensure its success. As development continues, the installation of the fully integrated topsides marks a huge milestone in the project’s timeline. This comprises four modules in total; living quarters, process and utility facilities and a drilling area. Four lifts are required to complete the largest offshore platform installed by Total, with a topside dry weight exceeding 22,000 tons and an operating weight of 28,000 tons.
MARTIN LINGE OIL FIELD +33 1 47 44 46 99 presse@total.com www.total.com
MARTIN LINGE OIL FIELD
MARTIN LINGE OIL FIELD
CLAIR RIDGE OILFIELD PROJECT
Huge Reserves
in Field Phase 2 PRODUCTION: Timothy Reeder
The Clair field resides 75 km west of the Shetland Islands in 150m of water, and extends over an area of 220 km². Clair Ridge is the second phase of its development, with its estimated eight billion barrels of oil in place making it the largest undeveloped hydrocarbon resource on the UK Continental Shelf.
//
The discovery of the Clair field came in 1977, when an exploration well penetrated a 568m oil column in a thick sequence of Devonian to Carboniferous continental sandstone. In the 1980s, ten appraisal wells were drilled. This activity demonstrated that the structure extended to an area of some 400 km2 with static oil-inplace, although it failed to confirm the presence of economically recoverable reserves. Challenging reservoir characteristics combined with the technological limitations of the time meant that it was the mid-1990s before any extensive drilling took place at the field, and 2001 before BP and partners approved a development plan. This took the form of the drilling of two further wells in 1991, followed by another two in 1992 and one final well in 1995. Two of these wells demonstrated the potential for commercial flow rates, but these were not produced for long enough to give sufficient proof of long term
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reservoir deliverability. In 1996, however, came a major breakthrough in the drilling and extended well testing (EWT ) of the well dubbed #206/8-10z. The 1996 test results set the scope for the drilling programme of the following year, and served to trigger interest in a first phase of development. The Clair partners agreed in May 1997 to jointly develop the field, with BP appointed the operator and programme coordinator. A development plan was approved in 2001, entailing investment of £650m by BP and its four partners in the project: ConocoPhilips, ChevronTexaco, Enterprise, and Amerada Hess. Targeting the 300 million barrels of recoverable reserves estimated to be held in the Phase 1 area, BP and partners brought the field onstream in 2005 via the first fixed offshore facility to be installed in the west of Shetland area. Horizontal drilling and highquality seismic imaging have both been central to BP’s ability to tap the reservoir’s complex geology.
By October 2014, Clair Phase 1 had produced more than 100 million barrels. To the north of the Phase 1 development, meanwhile, lies Clair Ridge, the second phase where BP is hoping to tap into the 640 million barrels of recoverable resources. The £4.5bn investment comprises two new bridge-linked platforms, the jackets of which were installed in the summer of 2013. BP reached a significant milestone in the development in mid-2015, with the company announcing that it had installed the quarters and utilities (QU) topside modules at the new platform. Dutch firm Heerema lowered the modules on top of the previously installed jackets, employing the Thialf heavy lift vessel. The QU platform comprises three modules in total: the quarters and utilities integrated deck (QUID) which has a lift weight of 9,400te, alongside the power generation module and the living quarters (LQ) module, which have lift weights of 4,550te and 2,210te
© BP PLC
ENERGY FOCUS: OIL & GAS
respectively. Trevor Garlick, former Regional President for BP’s North Sea business said at its completion: “The safe installation of these three topside modules is a fantastic achievement by the project team. In a challenging time for the industry, this project shows the potential of our basin and why it is so important that we work to ensure a competitive future business.” Approximately half of the Clair Ridge investment is occurring in the UK, with over 80 British companies providing engineering design and support service, hook-up and installation services, manpower twinned with a wide range of engineered equipment. The final Clair Ridge modules left the Hyundai Heavy Industries (HHI) yard in April of last year, marking the end of the project’s fabrication efforts in South Korea. The Drilling Platform (DP) drilling modules, transported on the Dockwise Mighty Servant 1, travelled to the North Sea via Singapore and the Cape of Good Hope, and followed the departure of the initial DP modules in March. The modules arrived in the Clair field in May, and were installed onto the platform’s jacket by the transport and installation team using the Heerema Thialf heavy lift crane vessel. The Clair Ridge development will have the capability to produce an estimated 640 million barrels of oil over a 40-year period, with peak production expected to be up to 120,000 barrels of oil per day. The North Sea is an important region for BP, and one in which it expects to sustain a significant business for the long term. Clair Ridge is designed to continue producing until 2050, and will see the world’s first deployment of BP’s enhanced oil recovery technology (EOR) LoSal®, a water injection method that is
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//THE POTENTIAL FOR ENHANCED RECOVERY FROM KNOWN HYDROCARBON RESOURCES EXCEEDS THE POTENTIAL FROM NEW DISCOVERIES// expected to deliver, cost-effectively, an additional 40 million barrels of oil during its lifetime. Until now, emerging EOR techniques have typically been applied to older fields as the oil production rate falls and recovery of oil and gas becomes harder, and, inevitably, uneconomic. In recognition of this breakthrough, BP was presented with the Distinguished Achievement Award at the Offshore Technology Conference (OTC) in Houston, Texas, in May, 2014. This is the second time in four years that BP has won the award at this major annual gathering for oil and gas professionals. Raymond Choo, deployment manager for BP’s EOR Technology Flagship programme, spoke of how the development signals the potential of EOR for the future. “There is a huge prize in getting more from what the industry already operates,” he explained. “Increasing the average recovery factor by just 1% across our own portfolio could yield several billion barrels of incremental oil.” In a revealing comparison between the potential of EOR and the finding and developing of new fields, David Eyton, BP’s Group Head of Technology, concluded: “We have probably reached a point globally when the potential for enhanced recovery from known hydrocarbon resources exceeds the potential from new discoveries.” BP will soon turn its attention to the natural next step now, developing a third phase of the giant Clair field. At present, it seeks to gain greater certainty on overall reservoir
volumes, including their distribution and fluid characteristics, and to evaluate technologies to improve recovery from Greater Clair. It will also look to test the possibility of new standalone developments and linkages to Clair Ridge. Trevor Garlick commented in a company statement: “This is a major milestone and a further big commitment to the west of Shetland by BP and its co-venturers. If successful, the appraisal programme could pave the way for a third phase of development at Clair – this is now a real possibility.” Former UK Energy Secretary Ed Davey added to the sentiment of the clear potential this work demonstrated. “This announcement by BP of a two year appraisal programme for the Greater Clair area West of Shetland is excellent news. It shows the industry’s commitment to maximise the potential in this area, which could hold up to 17% of our oil and gas reserves. Greater Clair proves there is still a long future for oil and gas production in the North Sea and will give confidence to new recruits that the industry offers a career for life.”
CLAIR RIDGE OILFIELD PROJECT +44 (0)1908 853000 www.bp.com
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34 / Issue No.14 / www.emeaenergy.net © DONG ENERGY
BURBO BANK EXTENSION OFFSHORE WIND FARM
Huge Leap for
UK Clean Power Goals PRODUCTION: Timothy Reeder
The Burbo Bank Extension offshore wind farm development consists of an area of 40 km² and a capacity of up to 258 MW, generating enough energy to meet the average needs of up to 230,000 homes.
ENERGY FOCUS: WIND
//
DONG Energy has been a pioneering presence in the offshore wind farm industry for more than 20 years. It is the market leader in offshore wind, involved in more than half of the currently operating offshore wind farms worldwide. To date, it has committed to investing £4 billion into renewable energy in the UK alone. The UK government aims to generate 15% of its energy from renewable sources by 2020. Offshore wind energy is an integral part to this long-term aim achieving an 80% reduction in CO2 emissions by 2050, targets driven by a need to secure energy supply and address climate change. It is DONG Energy’s vision to lead the energy transformation towards a lower carbon energy mix, while reducing the cost of energy. The Burbo Bank Extension offshore wind farm is sited west of the existing Burbo Bank wind farm in Liverpool Bay, around 7km north of the North Wirral coast near the village of Meols, 8.5 km from Crosby beach, and 12.2 km from the Point of Ayr on the Welsh coast. The development covers an area of 40 km2 and while the offshore turbines of the extension are housed in English waters, the onshore infrastructure is located in Wales and thus an offshore export cable is required to cross the two jurisdictions. An underground cable connects the offshore wind farm array to the national grid substation in Bodelwyddan, in Denbighshire. Approximately 45 full time employees will work on both the Burbo wind farms out of a newly built operation and maintenance facility in Liverpool for the expected 25-year lifetime of the wind farm. DONG Energy granted the assignment for the Burbo Bank Extension project installation work to Van Oord, a leading international contractor specialising in dredging, marine engineering and offshore projects. At 8km off the coast of Liverpool Bay, heavy lift installation vessel Svanen installed 32 monopiles and transition pieces, with each monopoly wishing
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between 400 and 600 tonnes. Van Oord completed the project just weeks after the commencement of the work in July 2016. Burbo Bank Extension Offshore Wind Farm is a joint venture between DONG Energy (50%) and its partners PKA (25%) and KIRKBI A/S (25%). The first of 32 wind turbines was successfully installed at Burbo Bank Extension offshore wind farm in September of the same year. At 195m, taller than the 180m edifice the Gherkin in London, the MHI Vestas 8MW turbines are the largest in the world and it is the first time they have ever been used in an offshore wind farm. Claus Bøjle Møller, Project Director, said: “The installation of this world-first technology shows DONG Energy is really leading the way in offshore wind energy. By using bigger turbines we are able to bring down the cost of providing clean, renewable energy to homes around the UK. “This positive milestone is a significant achievement for the project and we look forward to producing more green energy here in Liverpool Bay.” As well as using the biggest turbines in the world, the 80m blades for the new 8MW turbines will also be the first locally built blades to be installed at a UK offshore wind farm, having been designed, tested, and manufactured on the Isle of Wight and assembled at MHI Vestas’ pre-assembly facility in Belfast. Claus continued: “The UK is a market leader in offshore wind energy and the Burbo Bank Extension will on completion become DONG Energy’s ninth operational wind farm here. By working with our suppliers to build a strong UK supply chain, we are delighted to be using the first ever offshore wind turbine blades built in the UK for this project.” The installation of the final turbine for the project was announced in December of last year, with A2SEA’s second-generation wind turbine installation vessel SEA INSTALLER completing the installation process in a period of just three months. COO of MHI Vestas, Flemming Ougaard, recognised the importance of the first
© DONG ENERGY
BURBO BANK EXTENSION OFFSHORE WIND FARM
ENERGY FOCUS: WIND MANUFACTURING
© DONG ENERGY
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BURBO BANK EXTENSION OFFSHORE WIND FARM
complete installation of a V164 project. “The installation of the first V164 -8.0 MW offshore project represents a major milestone in the history of MHI Vestas, as well as our business partners,” he commented. “I am proud of the commitment and excellent work of the entire installation team at MHI Vestas and the team from A2Sea and DONG Energy who worked with us on this project. Now our focus turns to the commissioning of the turbines and bringing them into full operation, prior to handing the project over to DONG Energy.” Following the colossal preparatory work at the site, the world’s largest wind turbines currently installed, Vestas’ 8MW behemoths, began generating power at the 258 MW Burbo Bank Extension offshore wind farm in November last year, before all 32 turbines were even
in place. This is the first time the next generation MHI Vestas 8MW turbines have been used commercially offshore and the successful energisation is a huge milestone step in the project. Claus Bøjle Møller summed up its importance in the grand scheme of the project. “First power is a key milestone for us because it proves that every part of the transmission and generation equipment is successfully working. We’re progressing well with the construction of the wind farm thanks to a huge effort from our construction team and our contractors. “This milestone is also significant for the offshore wind industry at a broader scale. Using these bigger turbines is a major step in reducing the cost of energy from offshore wind and we are proud to once again introduce a step-change in technology.”
The first turbines continued to generate and pump more and more environmentally friendly electricity into the UK Grid. With all 32 turbines now in place, the wind farm will be capable of generating its full capacity of up to 258 MW of electricity and meet the annual electricity demands of some 230,000 UK homes.
BURBO BANK EXTENSION OFFSHORE WIND FARM +971 2 7080000 burbobankextension@dongenergy.co.uk www.burbobankextension.co.uk
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24.03.16 11:08
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TANESCO
Lighting Up Lives
In A New Era PRODUCTION: Timothy Reeder
Tanzania Electric Supply Company Limited (TANESCO) owns the vast majority of the electricity generating, transmitting and distributing facilities across the Tanzania Mainland. It was one of two private enterprises to be established at Dar es Salaam in 1931, and today seeks to be an efficient and commercially focused utility supporting the development of Tanzania.
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ENERGY FOCUS: ELECTRICITY TRANSMISSION
//
At the turn of the century the first public electricity supply in Tanzania, at the time known as Tanganyika, was established by German colonialists at Dar es Salaam. In 1931, the Government handed over the undertaking at Dar es Salaam as well those elsewhere in the country to private enterprises, with one of the newly established companies the Tanganyika Electric Supply Company Ltd (TANESCO). Founded on 26th November 1931, it was joined by the Dar es Salaam and District Electric Supply Company Ltd (DARESCO). TANESCO’s commercial operations commenced in 1933 in its operation of a diesel power station at Kange, on the outskirts of Tanga, which was designed to supply the town, and by 1936 it had constructed a 90-metre dam across the Pangani River and
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commissioned two generators totalling 5MW. At the same time, over 400km of supply lines were erected, and in 1947, 1952 and 1959 three more sets were installed, which combined to bring the total capacity up to its present total of 17.5MW. Following Tanganyika’s gaining independence in 1961, the government registered its interest in purchasing shares from the private company, such as it was at the time, acquiring the company in its entirety by 1975 and becoming its sole shareholder. Today, TANESCO is a parastatal organisation under the Ministry of Energy and Minerals. The company generates, transmits, distributes and sells electricity to the Tanzania Mainland, and sells bulk power to the Zanzibar Electricity Corporation (ZECO) which is in turn sold it to the public in the islands of
Unguja and Pemba. TANESCO now boasts a workforce of nearly 5,000 individuals, of which around 800 are employed at the head office, 450 at hydro plants and the remainder across its 23 regional offices, a team composed of extremely qualified personnel trained both locally and abroad. Ever since the country’s achievement of Independence, TANESCO has striven to continually implement new power projects in order to meet the increasing industrial, power supply demands across the spheres of commerce and rural townships. Exemplifying this were its studies to develop the country’s hydroelectric resource in order to reduce the cost of generation using imported diesel oil. Another major landmark came in 1962 when the construction of the 21MW Hale hydropower station on the Pangani River, upstream
TREATED TIMBER PRODUCTS (TTP) SPECIALIZES IN THE PRODUCTION OF TRANSMISSION, TELEPHONE, FENCING AND BUILDING POLES. TTP was established in 1939 and is now the largest producer of Utility Poles in the Southern Hemisphere. With our six treating plants strategically positioned near Durban and Maputo harbours, we are able to serve the local and export market with comparative ease. Our transmission poles are pressure treated with either Creosote or Copper Chrome Arsenic (CCA) to meet the South African National Standard SANS 754:2013, Tanesco S11 and Kenya KS516 or any other recognized national VY PU[LYUH[PVUHS ZWLJPÄJH[PVU TTP carries a large stock of treated and untreated poles, giving us the ability to meet large orders at short notice.
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ENERGY FOCUS: ELECTRICITY TRANSMISSION
from Pangani Falls commenced, with an associated transmission line from hale to Dar es Salaam. This power station was commissioned and formally opened by President Nyerere in 1964 while, at the same time, supplies were extended to virtually all of the sisal estates in the Pangani area by the addition of branches at Kilosa, Kimamba and Lushoto. TANESCO has also made the electrification of rural areas and small townships a major priority in its operational lifetime, since the declaration in 1965 by the Tanzanian Government of a policy in support of this aim. It was agreed that if TANESCO was required to provide power supply to more economically precarious townships, this would be subsidised by either the Government, the local authority or prospective large consumers in the areas. Following this decision, feasibility studies were conducted
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on several townships and, as a result, the Government electricity installations at Nachingwea and Mpwapwa were taken over by TANESCO. New branches at Singida and Shinyanga were established and, in 1966, power at both Musoma and Tukuyu was newly commissioned, followed but the establishment of supplies to Mafia Island, Himo and Marangu in 1969. A rise in tariffs recently claimed casualties among TANESCO’s senior staff. Back in October, the state-owned power company had pushed for an 18.19% increase on its prices, a request which it explained was necessary in order to clear the company’s debt and to meet government expectations. January of this year eventually saw Tanzania’s energy regulator agree to up energy tariffs by 8.53% as a response to the request, resulting in the dismissal of TANESCO’s Managing Director by Tanzanian
president John Magufuli, who stated that the price hike would hinder his government’s efforts to industrialise the country. “Our industrial drive will not succeed if we keep on increasing electricity tariffs,” Magufuli declared. About 40% of Tanzania’s population of around 50 million has access to electricity and the government is aiming to push that rate up to 75% by 2025. Despite reserves of over 57 trillion cubic feet (tcf ) of natural gas, Tanzania has been facing chronic power shortages over the past decade due its reliance on drought-prone hydro-power dams. The proposed price increase was withdrawn by the Tanzanian president as he sought to further enforce his anticorruption policies, while simultaneously he removed Felchesmi Mramba from his position as Director of TANESCO. In his place was appointed former Senior lecturer at Dar es Salaam’s
TANESCO
state university Tito Mwinuka, a decision declared by the directorate of Presidential Communication. “It’s unacceptable that while we are making plans to build manufacturing industries and ensure more citizens have access to electricity, someone else uses his position to increase power tariffs,” clarified President Magufuli in a recent statement. Dr Mwinuka was under no illusion as to the challenges which he is set to face in his unexpected new role. “By its very nature, TANESCO is not an easy company to run,” he stated, “but I cannot afford to let the president and Tanzanians down.” Dr Mwinuka explained that his priorities lay in expanding the country’s power production capacity, with a view to having surplus power available to sell to neighbouring countries. “Without efficiency in all that we do, it will all be a waste of time and I was not
appointed to come and waste time here,” he asserted. In collaboration with KENYA Transmission Company (KETRACO), TANESCO recently put pen to paper on a contract to secure the construction of a 414km, 400kV transmission line stretching from Singida, via Arusha, to the Namanga border. Signed through the Power Interconnection Project (KTPIP), it includes all associated substation equipment on the Tanzanian side and around a further 96km of 400kV transmission line from Isinya in Nairobi to the Namanga border, to connect with the Tanzania portion. The transmission line is equipped with a power transfer capacity of up to 2000 MW in either direction. The objective of this initiative is to improve the supply, reliability and affordability of electricity in the Eastern African region through cross boarder exchanges of cheaper, cleaner surplus
power from bordering countries. Through promotion of power trade at regional level, it will additionally help to contribute to the development of Eastern Africa at a socio–economic level, whilst improving the power supply to Tanzania from short to medium terms with imports from Ethiopia. The trio of the African Development Bank, the Japanese International Development Agency (JICA) and the Government of Tanzania are the chief investors in the $309M project, divided between $258.82M to be spent on the Tanzanian side and $50.45M on the Kenyan aspect of the development.
TANESCO +255 022 2451130 info@tanesco.co.tz info@tanesco.co.tz
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EXHIBITION CALENDAR //TABLE OF ALL EVENTS:
KEY UPCOMING EVENTS ACROSS THE INDUSTRY Our regular update to help you keep track of important events and exhibitions taking place across the energy sector.
THE CWC IRAN LNG & GAS PARTNERSHIPS ANNUAL SUMMIT Kempinski Hotel Frankfurt, Gravenbruch, Germany FEB 14 - 16 ICOGPE 2017 Laguna Palace, Venice, Italy FEB 16 - 17 ICPPE 2017 Holiday Inn, Wembley, London FEB 16 – 17 NIGERIA OIL & GAS CONFERENCE & EXHIBITION ICC, Abuja, Nigeria FEB 27 - MAR 02 ENERGY EFFICIENCY WORLD AFRICA Sandton Convention Centre, Johannesburg, SA MAR 28 - 29
ICPPE 2017 FEB 16 | LONDON The ICPPE 2017: 19th International Conference on Petroleum and Petrochemical Engineering aims to bring together leading academic scientists, researchers and research scholars to exchange and share their experiences and research results on all aspects of Petroleum and Petrochemical Engineering. It also provides a premier interdisciplinary platform for researchers, practitioners and educators to present and discuss the most recent innovations, trends, and concerns as well as practical challenges encountered and solutions adopted in the fields of Petroleum and Petrochemical Engineering. ENERGY STORAGE SUMMIT FEB 28 | LONDON The Energy Storage Summit, organized by the Solar Media Ltd will take place from 28th February to
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1st March 2017 at the Twickenham Stadium in London, United Kingdom. The conference will cover areas like covering what is the addressable downstream market and how to sell to it as well as how to unlock the much greater potential of energy storage. OFFSHORE PIPELINE TECHNOLOGY CONFERENCE FEB 28 | AMSTERDAM The Offshore Pipeline Technology Conference, organized by the Informa plc will take place from 28th February to the 2nd March at the Okura Hotel in Amsterdam, The Netherlands. The conference will cover areas like discuss on pipeline integrity management and life extension strategies for better operational outcomes. Keynote presentations as well as workshops and plenary talks will serve massive educational purpose in the respective domain.
GHANA OIL & GAS SUMMIT Accra International Conference Center, Ghana MAR 29 – 30 ENERGY STORAGE SUMMIT Victoria Park Plaza, London FEB 28 – MAR 01 OFFSHORE PIPELINE TECHNOLOGY CONFERENCE Hotel Okura Amsterdam, Netherlands FEB 28 – MAR 02
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