THE BUSINESS MAGAZINE FOR ENERGY LEADERS
EMEA
ENERGYFOCUS December 2018
www.emea-energy.net
TRELLEBORG
Improving Performance in Critical Situations ALSO IN THIS ISSUE:
DeRegt Cables / Fluxys / Qatar Gas / Equinor
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EDITOR’S LETTER EDITOR Joe Forshaw joe@emea-energy.net SENIOR PROJECT MANAGER Sam Hendricks sam@emea-energy.net SENIOR PROJECT MANAGER Tommy Atkinson tommy@emea-energy.net PROJECT MANAGER Shannon James shannon@emea-energy.net PROJECT MANAGER James Davey jamesd@emea-energy.net PROJECT MANAGER Sam Applegate sama@emea-energy.net FINANCE MANAGER Emily Taylor finance@emea-energy.net SENIOR DESIGNER Liam Woodbine liam@emea-energy.net CONTRIBUTOR Manelesi Dumasi CONTRIBUTOR Karl Pietersen CONTRIBUTOR David Napier CONTRIBUTOR Timothy Reeder CONTRIBUTOR Colin Chinery
Published by Chris Bolderstone – General Manager E. chris@cmb-media.co.uk Rouen House, Rouen Road, Norwich NR1 1RB
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As we move into 2019, the industry finds itself at a turning point. Surging demand for renewable energy and a growing negative perception of major fossil fuels is seeing even the biggest companies reorganise, reconsider and sometimes completely reverse their strategies. Dutch-based DeRegt Cables is now a leader in the connection of offshore windfarms and solar plants, based on years of expertise in the oil and gas business. The International Energy Agency’s 2018 World Energy Outlook suggests that solar and natural gas will be the biggest players in the market by 2040, with estimates on demand for natural gas revised upwards by 100 billion cubic metres. China imports a large amount of natural gas and its consumption looks set to drive demand for the commodity. China sees natural gas as part of a solution to curb its air pollution problems, but its huge demand will have a growing effect on pricing. We look at the business of one of the biggest layers in the natural gas industry, Qatargas, to understand more about how this supplier is growing in importance. Oil for use in transportation looks set to at the end of the 2020s and then drop away thanks to the increasing number of electric vehicles on our roads. At peak, demand for oil for transportation is expected to hit 23 million barrels per day. We look at BP’s major oil project in the UK, Clair Ridge, where production will eventually hit 120,000 barrels per day. Carbon capacity is at 93% so adding more fossil fuels to the global energy mix is not an option. This is forcing organisations to rethink their exploration activity and putting pressure on technology developers to come up with novel methods of turning these fuels into non-carbon emitting products. We turn to Belgium, and Fluxys, to understand more about how this business is making the most of all opportunities to connect power across Europe. As we see from a leading coal mining organisation in South Africa, demand for coal may have peaked. It hit its high in 2014, and as such, the company is looking at alternative business, such as renewables and water projects, to ensure a sustainable future. China and India are weening themselves off coal, but the fuel certainly remains important for powering the planet. 2019 will be a landmark year for the energy industry as we find out how committed organisations really are to becoming more environmentally friendly and less reliant on traditional fossil fuels. Give us your opinion, we’re always online @EmeaEnergy
Administration & Finance +44 (0)20 7193 0419 Advertising & Feature Sales +44 (0)20 8123 7859 Editorial & Design +44 (0)20 7193 2735 E. info@cmb-media.co.uk www.cmb-media.co.uk CMB Media Group 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. 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 Media Group Ltd 2018
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 News Snapshot A round up of some of the latest news stories in the industry.
42/EXHIBITION CALENDAR: Key Upcoming Events Across the Country Our regular update to help you keep track of important events and exhibitions taking place across the industry.
8/TRELLEBORG Improving Performance in Critical Situations Trelleborg has over a century of experience to draw on to help it remain a world-leader in engineered polymer solutions that seal, damp and protect critical applications in demanding environments.
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CONTENTS
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TRELLEBORG Improving Performance in Critical Situations DEREGT CABLES From the Deepest Seas to the Highest Skies QATARGAS Leading the World in LNG Production BP - CLAIR RIDGE Technology and Ingenuity Reap First Oil at Clair Ridge EQUINOR – JOHAN CASTBERG Major Breakthrough in Unlocking Huge Reserves FLUXYS Bringing Order to a World in Constant Flux
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(c) Yamal LNG
YAMAL LNG STARTS UP TRAIN 3 LNG EXPORTS Total has announced the start of LNG exports from the Yamal LNG project in Russia. This was confirmed during the inauguration of Train 3, in the presence of the Prime Minister of Russia Dmitry Medvedev. Total was pleased to announce that the milestone had been reached a year ahead of the initial schedule and within the original budget. First LNG shipments came from Yamal in December 2017 and now the project has reached its full potential - 16.5 million tons per year.
“We are proud of the successful launch of all three LNG trains of the Yamal LNG project less than a year after the start-up of the plant. This constitutes an unprecedented achievement for the industry,” said Patrick Pouyanné, Chairman and CEO of Total. “The positive experience of Yamal LNG paves the way for further LNG developments alongside our strategic partner Novatek, including Arctic LNG 2, the next major development based on giant low costs resources in Russia’s far north.”
Yamal LNG is one of the biggest LNG projects in the world, developing the 4.6 billion barrels of oil equivalent of reserves (boe) from the giant onshore South Tambey gas and condensate field, located on the Yamal Peninsula. The project includes an integrated gas treatment and liquefaction facility with three initial trains of 5.5 million tons per year capacity each, storage tanks, and port and airport infrastructure. An additional small-scale 0.9 Mtpa train is under construction with a start-up planned early 2020.
TOTAL LAUNCHES A PIONEERING LINE OF FLUIDS FOR ELECTRIC AND HYBRID VEHICLES French energy giant, Total, is consolidating its position as key player in electric mobility by launching today an innovative line of fluids for electric and hybrid vehicles. The company is already strong in the fuels and chemicals industries and is excited to develop its knowledge and presence in the fluids business. Products have been specially developed to meet the cooling and lubrication needs of the various components of these new types of engines and to ensure that they remain in peak condition throughout their lifetime. Two new product lines are now available to automakers: Total Quartz EV Fluid, for light vehicles, and Total Rubia EV Fluid, for industrial & utility vehicles and electric buses.
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Marketed by Total Lubricants, these products join the other electric mobility solutions Total offers through a variety of concrete applications for charging, storage, and fleet management. “Through extensive research efforts, we are proud to have developed products that align with the new needs of electric mobility,” explains Philippe Charleux, Senior Vice President Lubricants and Specialities at Total. “Integrated before the vehicles leave the factories, these high-performance fluids will accompany them throughout their service lives, benefitting all our customers: parts manufacturers, automakers and end users. This project illustrates our technical excellence and our ability to anticipate and innovate, which we leverage for a sustainable and performing mobility.”
NEWS SNAPSHOT HYUNDAI COMMITS TO FUEL-CELL PRODUCTION Hyundai Motor Group (HMG), umbrella business of automotive brands Hyundai Motor Company and Kia Motors Corporation, announced in December its ‘FCEV Vision 2030’ plan, as the organisation commits to accelerating the development of a hydrogen society. This will be achieved by leveraging the group’s worldwide leadership in fuel-cell technologies. Aligned with the plan, HMG will radically boost its annual fuel-cell systems production capacity to 700,000 units by 2030 and explore
new business opportunities to supply its world-class fuel-cell systems to other transportation manufacturers of automobiles, drones, vessels, rolling stocks and forklifts. “HMG, the global pioneer of the commercial production of FCEV, is taking a bold step forward to expedite the realization of a hydrogen society,” said Euisun Chung, Executive Vice Chairman of Hyundai Motor Group. “We will expand our role beyond the automotive transportation
sector and play a pivotal role in global society’s transition to clean energy by helping make hydrogen an economically viable energy source. We are confident that hydrogen power will transcend the transportation sector and become a leading global economic success.” The ‘FCEV Vision 2030’ roadmap will help HMG and its suppliers invest approximately KRW 7.6 trillion in R&D and facility expansion, which is in turn expected to create approximately 51,000 jobs by 2030.
SIEMENS WINS ORDER FOR ITS LARGEST OFFSHORE GRID CONNECTION IN THE UK TO DATE A project that will see involvement from organisations located all over Europe, the Moray East offshore wind farm is set to change lives in Scotland. Moray East is being developed by a joint venture company owned by EDP Renewables, a subsidiary of the Portuguese utility Energias de Portugal, ENGIE, a global energy and services group based in Paris, and Diamond Generation Europe Ltd., a subsidiary of Mitsubishi Corporation. Some of the major works being carried out connecting the site to the grid are being conducted by Siemens. Siemens scope of supply covers all necessary components, such as the offshore transformer modules (OTM®) which transform the output of the wind turbines from 66 kilovolts (kV) to the transmission voltage of 220 kV, as well as the onshore station which transforms the electricity into 275 kV for feeding it into the national transmission grid. This project will be the 11th offshore wind farm to be connected to the mainland by Siemens in the UK. Moray East marks the largest offshore grid connection in terms of transmission capacity and order entry Siemens has delivered or been awarded in the UK to date. The windfarm is 22 km off the Aberdeenshire coast and will have an installed generation capacity of 950 MW after its completion. For the grid connection, Moray East will
incorporate Siemens OTM®. As a world’s first, three OTM® are linked together to cover the rated capacity of 950 MW of the Moray East wind farm. As an OTM® is significantly smaller in size and weight compared to conventional alternating current platforms, there’s no need for special vessels for transport and installation. Thus, this innovation will save time and money and highlights Siemens’ commitment to helping power developers improve efficiencies and the delivery program. Siemens will be responsible for the complete onshore substation including three SVC Plus as well as the three offshore substation platform topsides. In addition, it will also install a 30 km underground export cable to the onshore substation at New Deer in Aberdeenshire for the power generated. Work began on site in September 2018 to prepare the location which will house the onshore substation. It is anticipated Moray East will be operational by April 2021. Oscar Diaz, Project Director for Moray East, said: “This is a landmark moment for a landmark project, making renewable generation highly competitive. We are grateful to local stakeholders who continue to engage with us on a range of initiatives to enable the economic opportunities created by the project to be realized as we move to construction.”
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TRELLEBORG
Improving Performance
in Critical Situations PRODUCTION: William Denstone
Trelleborg has over a century of experience to draw on to help it remain a world-leader in engineered polymer solutions that seal, damp and protect critical applications in demanding environments. www.emea-energy.net / 9
INDUSTRY FOCUS: MANUFACTURING
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The Trelleborg group is a major global presence; around the world it has more than 23,000 employees conducting operations in 50 countries, and combining to achieve annual sales of SEK32 billion. Strong core capabilities mean cutting-edge solutions are developed to enhance business performance, and for more than a century Trelleborg has pioneered the progress of applied polymer engineering and materials technology for use in a wide variety of industries. The group’s operations are split into five business areas, and comprise Trelleborg Coated Systems, Trelleborg Industrial Solutions, Trelleborg Offshore & Construction, Trelleborg
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Sealing Solutions and Trelleborg Wheel Systems. Additionally, the 2016 acquisition of CGS Holding brought with it the operations of Rubena and Savatech and bolstered Trelleborg’s own standing through their leading positions in agricultural, industrial and specialty tires as well as engineered polymer solutions. VARIED APPLICATIONS Trelleborg’s application of this technology in the healthcare and medical industry is among its standouts, where the demand is for coated fabrics to provide more durable and cleanable materials to be both infection- and fireresistant, while being sustainable and
chemically resistant. Trelleborg helps to ensure that medical facilities have the latest in the available technologies to keep patients safe and secure, through mattress covers that remain impermeable to fluids and germs and prevent cross-contamination from the illnesses patients bring to hospital environments. Trelleborg also applies these capabilities to a variety of fabrics for the aerospace industry, as well as for consumer and recreational products. One recent example saw Trelleborg create coatings for the survival gear worn by workers being transported by helicopter to remotely located oil rigs, suits whose job it is to protect in
TRELLEBORG
// OUR NEW PRODUCTION FACILITY WILL BE DEDICATED TO HIGHLY AUTOMATED AND LEAN PRODUCTION LINES FOR THE AUTOMOTIVE, AEROSPACE AND RENEWABLE ENERGY INDUSTRIES // case of an accident that could see a worker plunged into icy Arctic waters and maintain the vital warm, dry and safe conditions until a sea rescue can be carried out. Trelleborg has been in the engineered coated fabric business for more than 40 years, and is the expert in meeting the strenuous material requirements through new standards in production. It can be challenging to find the exact weight and strengths needed, or, sometimes, it is all about the feel of the fabric; it might need to feel softer for a customer’s application or they might require a soft fabric that also has a lot of adhesion. Occasionally these needs might appear completely contradictory, and customer needs are also liable to change in the midst of the development of their product, at any stage. The ability to accommodate all of this and more has earned Trelleborg an enviable reputation for meeting customers’ demands with ease.
reliably in place to arrest bleeding, while another customer is seeking a barium-infused fabric for use under X-ray that will shine during laparoscopic surgeries, and the innovation will identify the exact location of the device while surgery is underway. Whether at the physician or production level, the biggest challenges in the medical industry are three: enhancing functionality, making existing products better and improving performance without compromising capability with the product itself. Trelleborg is constantly seeking ways to make these crucial medical processes even fractions of a percentage more effective, and through its Trelleborg Sealing Solutions business area has acquired
Sil-Pro, LLC, a U.S-based privatelyowned contract manufacturer of high-tolerance silicone and thermoplastic components that also offers assembly for medical devices. The company specialises in applications primarily for original equipment manufacturers (OEMs) of medical technology, and the acquisition perfectly complements and broadens Trelleborg’s current offering in the healthcare and medical industry. Sil-Pro has its head office and production facility in Delano, Minnesota, in the U.S, and the bolton acquisition is part of Trelleborg’s strategy to strengthen its positions in attractive market segments. “This acquisition complements our existing offering and expands our product range in such areas as drug delivery and surgical tools,” says
Your supplier for vending solutions
MEDICAL SPECIALISTS The medical arm of business is crucial for Trelleborg; currently, it is working with customers to ensure that tourniquets used in surgeries and emergency situations remain
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INDUSTRY FOCUS: MANUFACTURING
Peter Hahn, President of Trelleborg Sealing Solutions. “The company is well-reputed with first-rate quality systems and cleanroom standards. Its expertise and capacity within toolmaking is a welcome addition to our current operation.” Trelleborg Sealing Solutions has also expanded in a more visible sense, investing in a new state of the art production facility in Denmark. This entails a shift of its current manufacturing facility in the country, in a move intended to transform and further expand the current capabilities of the existing facility and drive profitable sales growth. “The Danish operation is one of our most important ones globally,” says Claus Barsøe, EVP - Trelleborg
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Sealing Solutions, “with committed employees and a product and material portfolio that offers highend solutions to the most demanding of sealing applications. “The new production facility will be dedicated to highly automated and lean production lines for the automotive, aerospace and renewable energy industries.” SEALING ENTIRE CITIES The combination of ever-rising sea levels and an increasing number of megacities has necessitated some of Trelleborg’s most inspiring solutions to date, as it turns its expertise to the complex issue of water infrastructure. Sea levels are projected to rise by as much as 122 centimetres (48 inches) by
2100, and twinned with growing urban populations, especially in coastal areas, this means that millions of people are under threat from flooding. Some local governments have reacted with the necessary urgency and are taking measures to prevent flooding, for example by building dikes, storm surge barriers, flood barrages, sluices and dams. Trelleborg has a wealth of experience with different types of water management projects and its solutions can be found in storm surge barriers and other infrastructure around the world. Known worldwide as the city of canals, Venice has made significant investments and has joined forces with neighbouring cities to implement an ambitious storm surge solution,
TRELLEBORG
// MOST OPERATIONS ARE GROWING AT A GOOD PACE, WITH HIGHER PROFITABILITY AND STRONGER ORDER INTAKE THAN A YEAR AGO // called the MOSE project. This is an initiative in which Trelleborg has been involved from the beginning, working with the project design team in its earliest stages and providing custommade sealing solutions and multiple fender systems.
Whether the most intricate of parts or on a city-wide scale, Trelleborg’s ability to spot opportunity in the midst of challenge is one of many factors allowing the Group to keep reporting strong performance year-on-year. The third quarter of this year was no different, seeing sales rise by 14%, and an organic sales increase of 4%. Excluding project business, which mainly comprises offshore oil & gas-related deliveries, organic sales increased 6%, aided by improved demand in most market segments and geographic regions. Meanwhile, earnings before interest and taxes (EBIT) increased by 23% to the highest level to date for a third quarter. “The Group continues to perform
favourably,” stated Peter Nilsson, President and CEO. “Most operations are growing at a good pace, with higher profitability and stronger order intake than a year ago. Synergy gains from previous acquisitions contribute according to plan. We continue to acquire complementary operations and during the quarter, we announced three acquisitions, of which two were finalised. “Strategic investments remain at a high level, and will contribute to better structure and sustainably higher profitability.”
WWW.TRELLEBORG.COM
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DEREGT CABLES
From the Deepest Seas to
the Highest Skies PRODUCTION: William Denstone
Whether 5,000 metres below the Arctic Ocean, or soaring thousands of metres into the air, DeRegt’s custom-engineered cable solutions deliver the best possible solution for any given situation and are built to last. www.emea-energy.net / 15
INDUSTRY FOCUS: TECHNOLOGY
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With products ranging from umbilical subsea cables to tethers for balloons, DeRegt provides dynamic and static cable solutions that are built to last, ensuring maximum performance over many years. Its cable systems are employed in mining, seismic exploration, energy and scientific applications, for subsea and surface applications, and come from a team highly experienced in working on conceptual design studies and translating these to industryleading products. DeRegt’s appeal can be condensed down to the following essential elements: leading-edge technology employing knowledgebased programs developed inhouse, to enable the design and engineering of new concepts. An
unrivalled product understanding, coupled with engineering insight and a solution driven mentality has made DeRegt the partner of choice in the design, development and delivery of reliable and fully qualified cable solutions. While the finished articles can find themselves in use in locations ranging from the immersive depths of the Arctic seas to the blue skies of the far east, all of DeRegt’s cable are developed, engineered and manufactured at a single central location in Krimpen aan de Lek, in the Netherlands. This comes courtesy of a purpose-built facility covering some 10,000m2, containing the production lines, design and engineering department and test facility, as well as modern offices to cater for sales, marketing and support.
WIDE-RANGING EXPERTISE Continuing to build on a reputation which dates way back to 1912, since 2013 DeRegt has been a member of the Sercel group, a worldwide leader in the seismic acquisition industry and manufacturer of seismic equipment for over 50 years. Like DeRegt, whatever the field conditions - whether at sea, in open country, in the mountains, in the jungle or in the desert - Sercel has the engineers and technicians with the skills to constantly push back the limits of seismic acquisition, largely through a shared commitment on the part of the two companies to research and development. DeRegt is positioned to deliver products for multitude market areas, programs or systems, key among which is seismic exploration, including seismic survey vessels, hydrographic
Lubrizol Engineered Polymers: Elevating performance in cables with Estane® TPU Lubrizol Engineered Polymers has developed one of the broadest, most specialized portfolios available in the last 55 years while simultaneously improving durability, aesthetics and sustainability outcomes in the face of today’s emerging trends. Lubrizol’s thermoplastic polyurethanes (TPUs) are recyclable* and resistant to higher heat exposure or flex fatigue with very good mechanical properties, thus, being well positioned to meet demanding requirements in new cable end-uses like connectors or automation and robotics. Our chemistry is versatile and can provide polymers with very good hydrolysis-, abrasion- and microbial resistance. Lubrizol has developed novel solutions for cable applications and expanded the halogen-free flame retardant Estane TPU portfolio. This includes solutions with improved chemical resistance, flame-retardancy for VDE and UL1581 requirements like FT-1, FT-2, VW-1, etc., and with a low coefficient of friction (COF) which is a key benefit for cables dragged behind vessels –the lower the COF, the less energy (fuel) to be used by the vessel–. Lubrizol’s leading role in wire and cable has resulted in R&D’s work pushing the boundaries to achieve high-performing grades for applications that demand (non-halogenated) lower flame spread, lower smoke generation and higher LOI, in combination with high chemical and weather resistance and a low temperature flexibility. Additionally, Estane portfolio has expanded its TPU specialties for connectors including high heat grades (in compliance with UL 2237 & 2238): A new generation of high heat resistance polymers like Estane TS92AP7 NAT 055 featuring 95ºC RTI rating. Extreme conditions call for extreme polymers and Lubrizol Engineered Polymers continues to develop solutions that are highperforming and more durable. *Recyclability is based on access to a readily available standard recycling program that supports such materials. Products may not be available in all areas.
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DEREGT CABLES
// WE ARE CAPABLE OF PROVIDING TURNKEY CABLE SOLUTIONS // survey vessels, and ocean bottom cable systems. Oil and energy and renewable energy systems, primarily wave and tidal, also feature highly, but leading the way at present are a formidable duo. Defence technology, such as anti-submarine warfare, torpedo defence and dipping sonar systems, is one, joined by a focus on remotely operated vehicles (ROV); here DeRegt’s prowess encompasses tethers and mainlift umbilicals, blowout preventer multiplex umbilicals and heat trace cables. Investments in naval defence
are increasing at a greater rate than ever before, due to a combination of the changing geopolitical landscape, speed and innovation. Across the world, warships and systems constantly need to be modernised, improved and maintained, and if the industry is to catch up with current developments, manufacturers and suppliers in the naval defence sector will have to dedicate considerable time and resources to meeting demand. There is a tricky balance to strike: on the one hand, parts have to be delivered quickly, but also need to meet high-quality, stringent specifications. On the other hand, navies understandably want the latest, state-of-the-art innovations at their disposal, which will guarantee the sovereignty of NATO member countries at sea. As a cable supplier for various
navies, DeRegt Cables has gained the knowledge and technical know-how to develop innovative cable solutions quickly and efficiently. NAVAL KINGS DeRegt has been active as a supplier and developer of various cable systems for over 100 years, and for the first time this year was present at Euronaval, one of the biggest events in the field of Naval Defence welcoming more than 129 official delegations, 400 exhibitors and 23,000 visitors. Jeroen Romijn, Naval Defense Systems Sales Manager at DeRegt, spoke of its role as a producer and developer of high-quality navy cable solutions. “Primarily,” he began, “DeRegt provides a complete solution for cable systems, capable of assisting customers in cable design, cable production,
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INDUSTRY FOCUS: TECHNOLOGY
qualification tests, terminations and, optionally, fairings. We are capable of providing turnkey cable solutions.” The shift toward increased investment in ROVs, which can be deployed for various reconnaissance operations at sea, under water and in the air, is perfectly suited to DeRegt’s strengths. “We are very enthusiastic about this market development,” Romijn added, “and our expertise in various fields lets us help our customers achieve their goals. Many systems require special cables that we have considerable expertise in. “When it comes to underwater operations, many of the challenges faced by the defence industry also apply to the offshore industry, which employs a lot of work-class ROVs. The operational challenges might be very different in nature, but because the environments in which the vehicles operate are similar, the same rules - such as water pressure
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or environmental conditions and circumstances - apply. Because we work in both markets, we frequently find that we can use the insights obtained in one market for the other.” DIVING DEEPER At this moment in time, 1,100 work-class ROVs worldwide are being put to work underwater in various tasks, from repairs and maintenance, trench digging, drilling and building constructions such as subsea trees near drilling wells. Because these activities are taking place at increasingly great depths, ROV manufacturers are seeking to make submersible ROVs that can dive deeper, which requires stronger, lighter cables, while operators want to save money when replacing tether and umbilical cables, for which DeRegt has made a name as a maker for ROV manufacturers like Saab and the Fugro ROV division.
// GIVEN OUR DESIGN CAPABILITIES, WE HAVE ALWAYS FOCUSED ON HIGHEND SOLUTIONS // “Especially in the deep-water ROV business,” clarifies DeRegt Managing Director Jacob Olie, “we’re seeing a trend of trying to go deeper with existing systems. This means that the weight of the cable is becoming an issue and other solutions need to be found for armouring packages. To address this matter, DeRegt has developed hybrid armouring packages that significantly reduce the weight of the cable and can therefore extend ROV operating depth.” The new generation of ROV cables is not only going to be lighter, but it’s also going to be much stronger
DEREGT CABLES
REINFORCEMENT SOLUTIONS WITH HIGH PERFORMANCE FIBERS Fiber-Line is a global leader in processing high performance fibers to meet our customers’ needs for high strength, light weighting, low creep, high stiffness, chemical resistance, and other properties. We offer a broad portfolio using fibers and processing including:
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FIBERS
• Para-Aramid • Meta- Aramid • High Molecular Weight Polyethylene • PBO
• Steel Wire • Fiberglass • Polyester • LCP
WE SUPPLY OUR VALUE ADDED HIGH PERFORMANCE FIBERS FOR
• Reinforced Thermoplastic Pipe (RTP) • Thermoplastic umbilicals • High pressure hoses • Fiber Optic Cables • Seismic cables • Risers • Ropes
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MOVING HIGH PERFORMANCE FIBERS FORWARD
// OUR GOAL IS TO BE RECOGNISED AS A QUALITY PROVIDER OF CABLE SOLUTIONS IN FIVE DIFFERENT MARKETS // and last a considerably longer time. Better performance and cutting the cost of deploying work-class ROVs have long been two key priorities for manufacturers and operators of the vehicles, and DeRegt is actively addressing both with its new cable solutions. Peter Brussee, ROV Sales Manager, explained the part which DeRegt will play in the advancements coming in this field.
“Given our design capabilities, we have always focused on high-end solutions,” Brussee outlined. “These range from cables for ROVs operating at very great depths to those for vehicles like trenchers, which require a lot of power and therefore need a connection which can relay that. “We learn from the operators, in particular, that it is important for them to be able to reach deeper water, while still using their existing systems. The benefits of a cable capable of this lie in its own weight. So an improved cable design with a working depth of four kilometres may be no heavier than its predecessor with three kilometres of unrolled weight. In other words, you can go a kilometre deeper with, ultimately, the same weight up top.” These innovations form a key part of DeRegt’s ambitions moving
forward, but expect a lot more besides from this cable leader. “Our goal is to be recognised as a quality provider of cable solutions in five different markets,” Jacob Olie summed up. “This, of course, includes the defence and seismic industry, but we are also aiming for the renewable energy market - medium-voltage cables for generating energy with floating wind parks, tidal and wave energy systems. “Furthermore, we are striving to become a supplier of all major operators in the ROV market, as well as collaborating with research institutes on special projects.”
WWW.DEREGTCABLES.COM
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QATARGAS
Leading the World in LNG Production PRODUCTION: Timothy Reeder
Qatargas operates 14 Liquefied Natural Gas (LNG) trains with a total annual production capacity of 77 million tonnes, making it the largest producer on the planet of this vital energy source. www.emea-energy.net / 21
INDUSTRY FOCUS: LNG
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LNG is being increasingly touted as the natural successor to coal in power generation. It is half as polluting as coal and ideally suited as a complement to renewable energies, as well as being a solution which is easily transported by ship. Because LNG is the fastest growing way to trade gas, it is becoming increasingly vital. The global LNG market is expanding by 4-6% per year, compared to around 1-2% for overall gas consumption, and LNG accounts for a rising 12% of all gas demand. Furthermore, gas is the only fossil fuel that continues to ramp up in use even under the most stringent environmental policies, as the world’s nations fervently implement policies to keep the global temperature increase below 2° C by 2050.
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OPEC DEPARTURE As efforts increase in a bid to reduce greenhouse gas emissions, more and more gas will have to be consumed in order to keep up with increasing energy demands. Gas is the obvious choice of replacement as it emits far less CO2 than both coal and petroleum - 50% and 30% of the amount respectively. It follows that global LNG demand now stands at around 265 million tonnes per annum (Mtpa), or 35 billion cubic feet per day (Bcf/d); LNG is evolving natural gas into a global commodity like petroleum. Qatar is, today, among the world’s largest exporters of LNG, only challenged by Australia, and currently exports about two billion
cubic feet (57 million cubic metres) of natural gas per day to the UAE and Oman through the Dolphin pipeline. Its decision to withdraw from the Organisation of the Petroleum Exporting Countries (Opec) after nearly 60 years of membership underlines its desire to expand LNG production and enhance its role internationally. Qatar is one of the cartel’s smallest oil producers and now wants to focus more closely on propelling LNG production from 77 million to 110 million tonnes per year. “This announcement,” comments Qatargas, “will significantly strengthen this position and further enhance the State of Qatar’s long-term economic growth.”
QATARGAS
Opec is an intergovernmental organisation of 15 nations, founded in 1960 in Baghdad by the first five members, and headquartered since 1965 in Vienna. As of September 2018, the 15 countries accounted for an estimated 44% of global oil production and 81.5% of the world’s ‘proven’ oil reserves. Saad al-Kaabi, the country’s energy minister, confirmed that the decision to withdraw had not been easy after 57 years of Opec membership, but affirmed that Doha would abide by its global commitments like any other nonOpec oil producer. It was a “strategy decision,” he stated. “We will make a big splash in the oil and gas business soon.”
HIGHER STANDARDS OF EXCELLENCE Established in 1984, over the last three decades Qatargas has marked itself out as a unique global energy operator in terms of size, service and reliability and develops, produces and markets hydrocarbons from the world’s largest non-associated natural gas field. “In addition, we operate two of the world’s largest condensate refineries, the world’s second largest helium production facility and own the world’s largest chartered fleet of
LNG vessels,” the company states. “We also have two pipeline sales gas trains for the domestic market and a dedicated fleet of 70 chartered ships carrying reliable and clean LNG to customers throughout the world.” Today, Qatargas continues to set the benchmark in the industry as it safely and reliably supplies energy to customers all over the world. In recognition of its commitment to safety management and environmental management excellence, Qatargas’ Commercial
// THE PRESTIGIOUS AWARDS ARE TESTAMENT TO THE WORLD-CLASS STANDARDS WE MAINTAIN AT QATARGAS //
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INDUSTRY FOCUS: LNG
and Shipping Group was awarded the prestigious Sword of Honour and Globe of Honour by the British Safety Council for the fifth year running. This makes it one of only ten organisations worldwide to be awarded both prizes. Khalid bin Khalifa Al Thani, Qatargas CEO, described his delight at the continued recognition. “Qatargas is very proud to receive the Sword of Honour and the Globe of Honour awards for the fifth consecutive year. These prestigious awards are testament to the world-class standards we maintain at Qatargas, and most importantly, they recognise our commitment to operating safely, efficiently and reliably. “On behalf of Qatargas, I would like to acknowledge the British Safety Council for promoting excellence
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// WE ARE VERY PLEASED TO BE OF SUPPORT TO THE PEOPLE’S REPUBLIC OF CHINA IN ITS QUEST TO SECURE LNG SUPPLIES TO MEET THE COUNTRY’S GROWING ENERGY REQUIREMENTS // in workplace health, safety and environmental management, and for bestowing this honour on Qatargas.” Mike Robinson, Chief Executive of the British Safety Council added:
“The Sword of Honour and Globe of Honour awards recognise and reward the organisations that have reached the pinnacle of health and safety, or environmental management. This is such a significant achievement because it also requires an organisation to demonstrate how they intend to continually improve in specific aspects of health, safety and environmental management.” LANDMARK PARTNERSHIPS Qatargas has garnered significant plaudits having announced a long-term Sale and Purchase Agreement (SPA) with PetroChina International Company Limited, a unit of PetroChina Company Limited (PetroChina), to see it supply China with around 3.4 million tonnes of LNG per annum.
QATARGAS
// WE ARE VERY PLEASED THAT LNG FROM QATARGAS CONTINUES TO CONTRIBUTE TOWARDS MEETING THE HUGE DEMAND FOR ENERGY IN THE WORLD’S SECOND LARGEST ECONOMY // Under the 22-year SPA, Qatargas will supply LNG from the Qatargas 2 project, which is a joint venture between Qatar Petroleum, ExxonMobil and Total, to different receiving terminals across China. The first cargo is set to be delivered to the People’s Republic of China later this month.
The SPA allows flexibility in delivering LNG to various receiving terminals across China, including the Dalian, Jiangsu, Tangshan and Shenzhen LNG receiving terminals, utilising Qatargas’ fleet of 70 conventional, Q-Flex and Q-Max LNG vessels. “I would like to thank the Government of the People’s Republic of China and PetroChina for this important SPA,” began Saad Sherida Al-Kaabi, President and CEO of Qatar Petroleum and Chairman of the Qatargas Board of Directors. “This agreement underscores Qatar’s trusted capability in ensuring energy security to countries around the world, particularly in Asia, as well as its unique position as the world’s largest LNG producer, supplying safely and reliably across the globe. “We are very pleased to be of support to the People’s Republic of China in its quest to secure LNG supplies to meet the country’s
growing energy requirements. As we announce this long-term SPA, we look forward to continuing to supply reliable and clean energy to China and to countries all over the world that seek to use the cleanest fossil fuel available to meet their energy needs.” “This is an important milestone for Qatargas,” stressed Khalid Bin Khalifa Al-Thani. “We are very pleased that LNG from Qatargas continues to contribute towards meeting the huge demand for energy in the world’s second largest economy. With China expected to become one of the world’s largest gas markets, this SPA will further strengthen the existing relationship between Qatargas and PetroChina over the long-term.”
WWW.QATARGAS.COM
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BP - CLAIR RIDGE
Technology and Ingenuity
Reap First Oil at Clair Ridge PRODUCTION: Benjamin Southwold
The start-up of production at major UK North Sea development Clair Ridge marks the sixth new upstream project to come on stream for BP in 2018, targeting 640 million barrels of oil reserves and a peak production of 120,000 barrels of oil a day until 2050. “The start-up of Clair Ridge is the culmination of decades of persistence,” says Bernard Looney, BP Chief Executive Upstream. 26 / www.emea-energy.net
INDUSTRY FOCUS: OIL & GAS
//
The Clair field resides 75 km west of the Shetland Islands in 150 m of water, and extends over an area of 220 km². It is the second phase of its development, and an estimated eight billion barrels of oil waiting to be recovered make it the largest undeveloped hydrocarbon resource on the UK Continental Shelf. Discovered in 1977, challenging reservoir characteristics and the more limited technology of the epoch meant that BP and partners could not approve a development plan for a first phase of development until 2001. This was accompanied by investment to the tune of £650m, put up by BP and its four partners in the project: ConocoPhilips,
Clair Ridge Platform
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ChevronTexaco, Enterprise Oil, and Amerada Hess. Phase One was brought on stream in 2005, targeting approximately 300 million barrels of recoverable reserves, and to its north is Clair Ridge, where BP is targeting 640 million barrels of oil. Largely thanks to the first ever fixed offshore facility in the west of Shetland area, horizontal drilling and high-quality seismic imaging have allowed BP to tap the reservoir’s complex geology, and by October 2014, Clair Phase 1 had produced more than 100 million barrels. As decommissioning ramps up in the North Sea, the north east Atlantic is seen as the new frontier in oil exploration and production.
PERSISTENCE PAYS OFF Enter Clair Ridge. The enormous development is predicted to produce oil until 2050, and in November, BP, on behalf of co-venturers Shell, Chevron and ConocoPhillips, was able to finally announce first oil production from the colossal project in the West of Shetland region of offshore UK. “The start-up of Clair Ridge is the culmination of decades of persistence,” remarked Bernard Looney, BP Chief Executive Upstream, of a hugely significant moment for the UK’s oil and gas sector. New platforms and pipelines along this vast journey have required investment of more than £4.5 billion to date.
BP - CLAIR RIDGE
// CLAIR RIDGE IS A MAJOR MILESTONE FOR OUR UPSTREAM BUSINESS AND HIGHLIGHTS BP’S CONTINUED COMMITMENT TO THE NORTH SEA REGION // “Clair was the first discovery we made in the West of Shetland area in 1977. But trying to access and produce its seven billion barrels proved very difficult. We had to leverage our technology and ingenuity to successfully bring on the first phase of this development in 2005. Now, more than 40 years after the original discovery, we have first oil from Clair Ridge, one of the largest recent investments in the UK. “This is a major milestone for our Upstream business and highlights
BP’s continued commitment to the North Sea region,” Looney concluded. Clair Ridge also constitutes, notably, the first offshore deployment of BP’s enhanced oil recovery technology, LoSal®. Using reduced salinity water in injection gives the potential to increase oil recovery from reservoirs, and is expected to result in up to 40 million additional barrels being cost-effectively recovered over the development’s lifetime. Until now, emerging enhanced oil recovery (EOR) techniques have typically
been applied to older fields, and especially as the oil production rate falls and recovery of oil and gas becomes harder, and, inevitably, uneconomic. The breakthrough has already been generously recognised, with BP presented with the Distinguished Achievement Award at the Offshore Technology Conference (OTC) in Houston, Texas, in May, 2014. It was the second time in four years that BP has won the award at this major annual gathering for oil and gas professionals.
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INDUSTRY FOCUS: OIL & GAS
The installation of the Clair Ridge topside
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
// THIS IS ANOTHER FIRM STEP TOWARDS MAXIMISING ECONOMIC RECOVERY FROM THE BASIN // 30 / www.emea-energy.net
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.”
MAJOR UK MILESTONE Ocean conditions to the north of the UK are among the harshest on the planet: ultra-deep waters, powerful winds and vast waves make innovative engineering incredibly hard to carry out. The region has inspired engineers from Great Britain and beyond to battle the extreme offshore environment in order to plumb the near-incalculable resources beneath the seabed. A combination of technological breakthroughs and sheer determination have culminated in BP and its partners bringing
BP - CLAIR RIDGE
onstream a complex section of the biggest field on the United Kingdom Continental Shelf (UKCS). Ariel Flores, Regional President for BP’s North Sea business, spoke of the extent of this achievement. “Safely delivering first oil from Clair Ridge, in some of the harshest conditions in the UKCS, is the result of years of planning and hard work by BP, our partners and supply chain colleagues. “We are proud to have played our part in this pioneering project and are excited for the Clair region’s continued potential.” Clair Ridge carries a significant weight of expectation, and as a result it has been built to last. Capital investment in excess of £4.5 billion have afforded the creation of two new bridge-linked platforms, while new export pipelines are expected, at peak, to supply 10% of the UK’s oil production. It will also be central to job creation for many years to come, while showcasing the very best of what offshore UK engineering has to offer to the rest of the world. “It is greatly encouraging to see one of the basin’s original explorers using new, ambitious approaches and pioneering technology to help lead a revival in production,” was the take of Oil and Gas UK chief executive Deirdre Michie. “This is another firm step towards maximising economic recovery from the basin.” In addition to the two bridgelinked platforms, the Clair Ridge project will also include a new oil and gas pipeline tying it to the Clair export pipeline, which delivers oil to the onshore Sullom Voe terminal.
// THE START-UP OF CLAIR RIDGE IS THE CULMINATION OF DECADES OF PERSISTENCE //
GREAT PRODUCTION POTENTIAL “The North Sea is crucial for the UK’s energy security and helping businesses maximise economic recovery there is an aim for this government,” added Energy Minister Claire Perry. “Aided by the innovative use of technology developed in the UK and a strong UKbased supply chain worth £1.5bn, this will allow the North Sea to continue to be a hub for the high-skilled, wellpaid jobs at the centre of our modern industrial strategy.” The start of production of Clair Ridge follows five other Upstream major projects in 2018: Atoll Phase One, offshore Egypt, Shah Deniz 2 gas development in Azerbaijan, TAAS expansion project in Russia, Western Flank B offshore Western Australia and Thunderhorse Northwest Expansion in the Gulf of Mexico. Meanwhile, BP has announced two more new North Sea oil and gas discoveries. The finds - in the Capercaillie and Achmelvich fields were made in the central North Sea and west of Shetland after wells were drilled last year. “These are exciting times for BP in the North Sea as we lay the foundations of a refreshed and revitalised business,” said BP North Sea regional president Mark Thomas. “We are hopeful that Capercaillie and Achmelvich may lead to further additions to our North Sea business.”
Dr Andy Samuel, Chief Executive at the Oil and Gas Authority, outlined the significance of Clair Ridge’s start-up to the country as a whole. “First oil from the newly built Clair Ridge platform is a major milestone for the United Kingdom Continental Shelf. The OGA continues to view the West of Shetland as strategically important with substantial remaining potential. “The Clair Field has in excess of 7 billion barrels in place and is expected to sustain production for many decades to come, with significant scope for further phases of development. We welcome BP’s ongoing commitment to the Maximising Economic Recovery (MER) Strategy UK.” “First oil at Clair Ridge represents a major milestone in BP’s developments West of Shetland, the frontier region which is likely to have the greatest potential to expand current UK production,” affirmed Deirdre Michie. “It is greatly encouraging to see one of the basin’s original explorers using new, ambitious approaches and pioneering technology to help lead a revival in production. This is another firm step towards maximising economic recovery from the basin.”
WWW.BP.COM
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EQUINOR – JOHAN CASTBERG
Major Breakthrough in Unlocking Huge Reserves PRODUCTION: Benjamin Southwold
The Johan Castberg field lies 100km north of the Snøhvit-field natural gas field in the Barents Sea, and consists of the three discoveries Skrugard, Havis and Drivis. Proven between 2011 and 2013, they are believed to hold volumes estimated between 400 and 650 million barrels of oil. The development is attracting much attention as it sparks a flurry of construction activity, while new discoveries may yet unlock even more potential.
//
Formerly known as Skrugard, the Johan Castberg reservoirs contain oil with gas caps in three separate sandstone deposits in the Tubåen, Nordmela and Stø Formations, at depths between 1350 and 1900 metres. The discoveries will be developed together, and the eventual concept is a production, storage and offloading vessel (FPSO) with additional subsea solutions including 18 horizontal production wells and 12 injection wells.
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Innovative solutions have already seen costs reduced from approximately NOK 100 billion to 50 billion. Coming earlier this month, formal approval by the Norwegian parliament of Equinor’s plan to develop the Johan Castberg field in the Barents Sea signals the beginning of an ambitious project that is set to generate some NOK 264 billion ($33 billion) in profits, according to calculations by energy research and business intelligence company Rystad Energy.
“This marks the end of a sevenyear struggle by Equinor and its partners to make this discovery commercial, and it marks the launch of a lucrative new development phase for Norway’s northernmost oil province,” said Espen Erlingsen, head of upstream at Rystad Energy to World Oil. Castberg is a large subsea field, and could prove to be the key to the possible further development in the Barents Sea and its required infrastructure. Its proven volumes
Credit-Equinor ASAEquinor The Johan Sverdrup field-2026316
INDUSTRY FOCUS: OIL & GAS
// THROUGH THE JOHAN CASTBERG FIELD DEVELOPMENT WE OPEN A NEW OIL PROVINCE IN THE BARENTS SEA // of between 400 MM and 650 MMbo make it the largest and most important oil and gas project in the Barents Sea to date: “Its impact on the Norwegian continental shelf will
The Johan Sverdrup riser platform jacket being installed by Thialf (c) Equinor
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be eclipsed only by that of the giant Johan Sverdrup project currently progressing in the North Sea,” Erlingsen adds. Equally, it is a development which will have significant onward ripple effects, among them an impact on technology and expertise building in the supplier industry, and particularly in the north. CONSTRUCTION COMMENCES Significant steps were taken in November in this phenomenal development, as Norwegian minister of petroleum and energy, Kjell-Børge Freiberg, commenced the cutting of the
first sheet for the topside of the Johan Castberg vessel at Kværner’s yard at Stord. This was seen as the first piece of construction in what is predicted to be a wave of positive construction permeating throughout Norway. In total, more than two million working hours will be included in the construction of the topside, and it is expected to generate jobs for 4800 people. “Johan Castberg is the next major development on the Norwegian continental shelf and will open a new area in the Barents Sea for Equinor. Johan Castberg’s development will have ripple effects equivalent to
EQUINOR – JOHAN CASTBERG
47,000 man-years in Norway during the development phase,” explained Anders Opedal, Equinor’s executive vice president for Technology, Projects and Drilling. “Simultaneously, work will begin at a number of yards along the entire Norwegian coast,” added project director for Johan Castberg, Knut Gjertsen. “Already, many small and large Norwegian suppliers are in the process of delivering to Johan Castberg. This shows the competitiveness and competencies of the Norwegian supplier industry in hard global competition.” There will be a hive of activity at the yards in Verdal, Egersund and Sandnessjøen in addition to Stord over the coming years, as construction of the many composite parts that will form the complex topside is carried out. The whole will be installed on the 200 metre long FPSO vessel that will be producing on the Johan Castberg field for a projected operational lifetime of 30 years from the planned production start in 2022. Already the construction of the other two big puzzle pieces of the FPSO is well under way: the hull, in Singapore, and the turret in Dubai. These will eventually arrive at Stord in 2020 for assembly and completion before the vessel is moved to its permanent home in the Barents Sea.
// JOHAN CASTBERG’S IMPACT ON THE NORWEGIAN CONTINENTAL SHELF WILL BE ECLIPSED ONLY BY THAT OF THE GIANT JOHAN SVERDRUP PROJECT //
// JOHAN CASTBERG’S DEVELOPMENT WILL HAVE RIPPLE EFFECTS EQUIVALENT TO 47,000 MAN-YEARS IN NORWAY DURING THE DEVELOPMENT PHASE // BOUNDLESS DISCOVERIES More of the Castberg potential was unearthed as Equinor, and partners ENI and Petoro, completed the Skruis exploration well in the Johan Castberg licence. This confirms a significant volume of some 12 to 25 million recoverable barrels of oil. “This is an important discovery,” outlined Nick Ashton, Equinor’s senior vice president, Exploration, Norway and UK. “It helps to determine the size of the Johan Castberg resource base which is currently being developed. Securing resources near existing infrastructure is an important part of Equinor’s ambition and strategy on the Norwegian continental shelf.” Skruis is the first operated exploration well drilled by Equinor this year in the Barents Sea, and the discovery further confirms the potential in this particular area. “Over the past couple of years, we have learned that exploration in the Barents Sea is challenging and takes patience,” said Ashton of the travails
which have led to this point. “We still have three Equinoroperated wells and one partneroperated well left to drill in the Barents Sea. We also have a good portfolio for the next couple of years. Together with the wells we drilled in 2017, this will help clarify the potential in the remaining part of the Barents Sea.” Knut Gjertsen added: “Through the Johan Castberg field development we open a new oil province in the Barents Sea, enabling us to tie in this type of small discoveries that will be highly attractive when the infrastructure is in place.” The scope for what Johan Castberg will be able to provide as the parts continue to come together appears almost limitless.
WWW.EQUINOR.COM
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FLUXYS
Bringing Order to a World in Constant Flux PRODUCTION: Timothy Reeder
The world of natural gas is one which never stands still; it is constantly in motion and in transition and throws up new challenges, and new requirements, all the time. This results in a wealth of opportunities for companies like Fluxys, the reference in global gas infrastructure. “We offer our customers a competitive edge, flexibility and reliability,” is Fluxys’s comprehensive summary. 36 / www.emea-energy.net
INDUSTRY FOCUS: GAS
//
Fluxys is an infrastructure company operating on the North-Western European natural gas market, with 1,200 employees across wide-ranging territories: Belgium, Germany, Switzerland, France, Luxembourg and the United Kingdom. Fluxys’s operations encompass Natural gas transmission and storage, LNG terminalling and gas trading locations.
// FLUXYS HAS BEEN DEPLOYING MANY INITIATIVES TO HELP BUILD A STRONG AND INTEGRATED GAS MARKET IN EUROPE //
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“Fluxys has been deploying many initiatives to help build a strong and integrated gas market in Europe,” the company says, “making significant investments and forging strong partnerships to anticipate market developments and new customer needs. As part of this we are actively connecting into new supply routes to accommodate declining production in Europe, and welcoming the constant evolutions off this most dynamic of markets.” INTERNATIONAL NETWORKS The result of this unwavering commitment to building an effective, but most importantly comprehensive, gas infrastructure has led Fluxys to racking up some impressive statistics. Belgium leads the way on the gas transmission side, where 4,000 km
of pipelines afford 113 billion cubic metres (bcm) per year entry and 82 bcm/year exit capacities. Fluxys has also amassed enormous gas storage capabilities, with Loenhout and Skallen boasting a working volume of 700 million m³ and 10 million m³ storage capacity respectively. It is the nine bcm/year LNG terminal in Zeebrugge that Fluxys itself singles out for particular comment, however. “The Zeebrugge terminal serves as an LNG gateway into Europe,” Fluxys says. “With its second jetty, it now accommodates both the smallest and the largest LNG carriers offering our customers new destination possibilities. “The facility is tied into our highly interconnected pipeline network both in Belgium and abroad. “Through our investments in new
FLUXYS
and existing infrastructure, as well as our strong partnerships, we bridge the markets across various European countries,” Fluxys continues of its bid to tie together many disparate territories, and highlights its presence in Sweden as clear evidence of this desire to create a united gas network in Europe: “It illustrates perfectly our willingness to foster the development of small-scale LNG markets. “We want to push further, though; namely strengthening security of supply and source diversification while promoting liquidity in the markets, and listening permanently to our customers’ needs and offering optimum flexibility of flows, both from East to West and West to East, and from North to South and the reverse.” Fluxys has introduced what it labels, “the novelty of northbound
flows in Switzerland and Germany,” which combined with the Trans Adriatic pipeline and the southern gas corridor, represents something of a breakthrough for Europe. “This development will allow shippers to move natural gas from the Caspian region and other sources to Southeast Europe and through Italy, as well as to northwest Europe,” the company explains.
terminal in Dunkirk. This joint acquisition was closed alongside its consortium partners AXA Investment Managers – Real Assets, and Crédit Agricole Assurances, and as a result of the agreement the Dunkirk LNG terminal now forms an integral part of the Fluxys group. Commissioned in January 2017, the Dunkirk LNG terminal is one of Continental Europe’s largest, and has an annual regasification capacity of 13 billion m³ of natural gas; this means that the terminal can meet a phenomenal 20% of France and Belgium’s gas demand. Through the direct pipeline connection between the terminal and the Belgian network, the terminal additionally provides its clients with easy and flexible access to the UK, Dutch and German markets. Of the move, Pascal De Buck,
Pipelines STRENGTH OF ASSETS While Fluxys continues to grow and develop an ever-expanding and more complex system spanning more and more of Europe, it is also securing physical assets which will secure its foothold at the top of the pile in this crowded market. In October this year, Fluxys acquired from EDF and Total a 35.76% stake in Dunkerque LNG, owner of the liquefied natural gas
Pipelines
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INDUSTRY FOCUS: GAS
Managing Director and CEO of Fluxys, expressed the potential the site holds moving forward. “Fluxys is particularly pleased to have become core shareholder in the Dunkirk LNG terminal and we look forward to build fully on the strengths of the facility together with the other shareholders. “Fluxys will join its LNG experience with the expertise of the Dunkirk terminal teams to move business forward, achieve top-notch operational, safety and environmental standards, and chart new commercial territory both in large-scale and smallscale LNG.” EYE ON CLIMATE CONCERNS The climate targets set today are more rigorous than we have ever seen, and none more so than lowering Belgian CO2 emissions by 35% before 2030. To achieve it, Antwerp Port Authority and Fluxys believe fervently that carbon
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capture, storage and reuse by industry are all important weapons in the fight against climate change. The two therefore joining forces to take further practical steps that will help give shape to the imminent energy transition. In the first phase, Antwerp Port Authority and Fluxys are, firstly, studying the feasibility of solutions for capturing CO2 from industry in the port, transporting it by pipeline or ship and, finally, reusing or storing it. If the results of this forthcoming feasibility study are encouraging, the aim will become to jointly promote practical projects. Jacques Vandermeiren, CEO of Antwerp Port Authority, explained: “Industry in the port of Antwerp is a central engine of the Belgian economy and in the past few years it has put great efforts into becoming more sustainable. When it comes to CO2 emissions, however, a port-wide
approach is needed. We are particularly pleased at being able to team up with a partner such as Fluxys to make our port platform and its many industrial players ready for a low-carbon future.” Pascal De Buck added: “To counter the effects of global warming we need
// FLUXYS IS FOLLOWING A MULTITRACK APPROACH THAT INCLUDES CO2 CAPTURE, RE-USE AND STORAGE AND THE INTRODUCTION OF INNOVATIVE, LOW-ENERGY GAS TECHNOLOGY //
FLUXYS
// GAS AND GAS INFRASTRUCTURE ARE KEY TO DEVELOP A SUSTAINABLE, RELIABLE AND AFFORDABLE ENERGY SYSTEM // to have a mix of solutions. We have to deal not only with CO2 emissions from energy consumption but also from a large number of industrial processes that also release CO2. Fluxys is therefore following a multi-track approach that includes CO2 capture, re-use and storage, the switch from carbon-intensive fuels to natural gas, inflow of green gas and the introduction of innovative, low-energy gas technology.
“Our collaboration with Antwerp Port Authority is an excellent opportunity to develop concrete solutions for a low-carbon economy based on our combined expertise.” This sustainable mindset is heavily informing a major new innovation for Fluxys and partner Novatek, whose joint venture Rostock LNG GmbH has signed a Land Lease Agreement with the Port of Rostock with a view to building and operating a mid-scale LNG storage terminal in the port. The proposed facility is geared toward unlocking LNG as a low emission alternative to the currently-used heavy fuel oil, diesel and liquified petroleum gas (LPG) in North and Central Europe and the Baltic Sea area. The mid-scale LNG storage terminal in the port of Rostock looks set to receive LNG carriers from the liquefaction facility which Novatek is currently building in the port of
Vysotsk near Saint-Petersburg. De Buck concluded with the significance the project holds to a cleaner, more sustainable future gas outlook. “Fluxys as gas infrastructure partner is pleased to team up with Novatek in this venture to facilitate the market for liquefied natural gas as low emission fuel in North and Central Europe and in the Baltic Sea area,” he expressed. “Gas and gas infrastructure are key to developing a sustainable, reliable and affordable energy system and the Rostock project will allow industry, ship owners and haulage companies to significantly cut emissions impacting health and air quality as well as reducing their carbon footprint.”
WWW.FLUXYS.COM
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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 energy industry. SAUDI ARABIA SMART GRID CONFERENCE (SASG) DEC 11 - 13 | JEDDAH The SASG 2018 offers a unique platform to share visions and missions in the field of emerging technologies in: Sustainable Energy, Demand Side Management, Grid Integration of Renewable Energy Sources, Automation Technologies, Power System Planning, Operation and Maintenance, Grid and Communications Solutions.
WORLD CONGRESS ON OIL, GAS AND PETROLEUM REFINERY DEC 17 - 18 | ABU DHABI Petroleum Refinery 2018 gives a platform for analyst scholars, researchers and academic people to share and globalize their research work while the participants from industry/ business sectors can promote their products thus felicitating dissemination of knowledge. We anticipate more than 300 members around the globe for thought provoking keynote lectures,
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oral and also poster presentations. The attending delegates include Editorial Board Members of related journals. The scope of Petroleum Refinery 2018 is to bring the advancements in the field of oil gas, petroleum, natural gas and its allied areas. INTERNATIONAL CONFERENCE ON FUELS OF THE FUTURE JAN 21-22 | BERLIN The International Conference on Fuels of the Future, organized by the German Bioenergy Association (BBE) will take place from 21st January to 22nd January 2019 at the CityCube Berlin in Germany. In this conference, the topic covered about the recent developments and the threats that the industry is facing and with the help of various research works and data solutions are drawn which will help to maintain the steady growth of the fuels and gas industry and also will serve the customers better. There will be panel sessions and interactive classes also to make the conference a dynamic program.
GLOBAL CONFERENCE ON ENERGY AND SUSTAINABLE DEVELOPMENT JOHN MCINTYRE CONFERENCE CENTRE, EDINBURGH, UK DEC 18 - 20 SAUDI ARABIA SMART GRID CONFERENCE (SASG) THE RITZ-CARLTON, JEDDAH, SAUDI ARABIA DEC 11 - 13 INTERNATIONAL CONFERENCE ON FUELS OF THE FUTURE CITYCUBE, BERLIN, GERMANY JAN 21 - 22 FRANKFURT GAS FORUM SCHLOSSHOTEL KRONBERG, GERMANY DEC 12 -13 INTERNATIONAL CONFERENCE ON SMART GRID SYSTEMS NOVOTEL BARCELONA SANT JOAN DESPI, BARCELONA, SPAIN DEC 17 - 18 WORLD CONGRESS ON OIL, GAS AND PETROLEUM REFINERY ABU DHABI, UAE DEC 17 - 18 FINANCE & ACCOUNTING FOR THE OIL & GAS INDUSTRY BMC TRAINING AND DEVELOPMENT, DUBAI, UAE JAN 06 - 09
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